Dear shareholders,
 
 SUNIL HITECH HAD A CREDITABLE 2010-11.
 
 WE CONCENTRATED ON OPERATIONAL EXCELLENCE TO CAPITALISE ON A FAVOURABLE
 INDUSTRY ENVIRONMENT, LEADING TO RECORD RESULTS FOR 2010-11.
 
 OUR ORDER BOOK TOUCHED Rs. 1,702 CR AS ON 31 MARCH 2011
 
 WE TOUCHED AN ALL-TIME HIGH IN GROSS INCOME AT Rs. 727.30 CR IN 2010-11
 
 OUR EBIDTA AND CASH PROFIT INCREASED BY 23.50% AND 33.50% RESPECTIVELY
 IN 2010-11
 
 OUR NET PROFIT GREW 44.33% TO Rs. 33.85 CR
 
 An exemplary performance by our people was core to our success during
 the year under report. They enabled us to commission assets in record
 time and operate these at or above nameplate capacities, while
 improving our safety performance. The result was that in 2010-11, we
 handed over a record 1,675- MW of power plants.
 
 We remained committed to efficient capital management. It is our belief
 that the long-term creation of shareholder value requires a balanced
 approach to investing in growth and returning excess capital to
 shareholders, while maintaining a strong balance sheet.
 
 Improving economic scenario
 
 The world''s developed economies stabilised in 2010-11, following
 government fiscal and monetary stimulus packages, enabling them to
 focus on renewed gross capital formation. The energy sector continued
 to invest across the value-chain (from mining to power generation to
 transmission and distribution).
 
 The Indian power sector added a significant 15,795 MW in 2010-11, the
 terminal year of the Eleventh Five-Year Plan. To renew India''s energy
 security, nearly 107,500 MW is likely to be added during the Twelfth
 Five-Year Plan.
 
 Sunil Hitech is attractively positioned to capitalise on the unfolding
 opportunities. The company possesses a strong balance sheet (net worth
 of Rs. 231.46 cr and working capital credit limit of Rs. 187.26 cr) and
 invested Rs. 26.95 cr in its gross block to widen services in 2011-12.
 
 Governance and risk
 
 At Sunil Hitech, we believe we are adequately prepared for the
 industry''s opportunities and challenges. We invested to overcome the
 skill shortages of a growing economy. We looked beyond cyclical peaks
 and troughs to expand in a sustainable way. We expect to maintain the
 highest governance standards in the pursuit of sectoral leadership.
 
 Based upon our agreed strategic framework, our Board supports and
 oversees the Group''s management. The Board recognises that risk is an
 integral part of business; risk carries threats but also offers
 opportunities. Our process for effective risk management is embedded
 and essential to sustain our competitive advantage (discussed later in
 this report).
 
 Sustainable development
 
 As India becomes increasingly energy- reliant, we need to find more
 efficient ways of servicing customers and sharing sustainable benefits
 with society. Sunil Hitech''s commitment to sustainable development
 permeates its business, integral to daily operations, legacy and
 future. As a responsible employer, neighbour, partner and citizen, we
 are strengthening our position to continuously access people, capital
 and resources. Besides, our reputation helps us forge robust alliances
 that make sustainable development a reality.
 
 Our people''s commitment
 
 It is inspiring to see the way our people collaborate, leading to
 remarkable results. On behalf of the Board, I would like to thank our
 people for their commitment; we express our gratitude to our
 shareholders for their support.
 
 Outlook
 
 Urbanisation and industrialisation will catalyse energy demand
 (renewable or non-renewable). The long-term outlook is favourable as
 India expects to invest aggressively in its core sector to propel GDP
 growth to 10% during this decade.  In line with this sectoral
 opportunity, we expect to attain a turnover of Rs. 850 cr in 2011-12,
 thereby extending our success to all those who work with us, invest in
 us and depend on us.
 
 Sincerely,
 
 Ratnakar M. Gutte
 
 Chairman and Managing Director