Dear Shareholders,
 
 My work takes me to different parts of the globe and wherever I go, the
 general comment is that India will be a country to watch out for when
 investments catch up with its infrastructural deficit.
 
 They wonder that if the economy can continue to grow at the
 second-fastest rate in the world (8.5% in 2010-11) in an environment of
 policy paralysis, then the projected Twelfth Plan infrastructure outlay
 of USD 1 trillion will make the sector an excellent proxy for global
 growth.
 
 Infrastructure - a proxy of India''s economic prowess India''s
 infrastructure (social and economic) is critical to its competitive
 edge. The country''s GDP growth rate declined from 9.4% in 2005-06 to
 8.5% in 2010-11, partly on account of an inability to respond to
 growing needs. The result is in the numbers:
 
 - Despite India emerging as a trillion dollar economy way back in 2007,
 the country still suffers from a peak power deficit of more than 10%,
 prompting production slowdowns.
 
 - Despite India having the second- largest road network in the world,
 only 0.5% of this network is four-laned, affecting fuel efficiency and
 just-in-time delivery.
 
 - Despite three of the ten biggest cities in the world being located in
 India, they also happen to be among the most polluted.
 
 - Despite rural India accounting for 60% of the national population, it
 accounts for only 18% of the national GDP due to a large
 infrastructural skew.
 
 - Despite India being the world''s second-fastest growing economy,
 exports account for a mere 1.5% of global trade compared with China''s
 7.7%.
 
 China is leagues ahead: The country possesses among the world''s largest
 pipelines, the largest mono-rail network, the largest sea bridge and
 one of the largest power plants. India''s need to catch up underscores
 optimism for its construction sector and frontline companies like
 Unity.
 
 Catalysing infrastructural growth through restructuring
 
 India''s infrastructure requires assets that will cater to the
 requirements of the day and scalable to service the growing needs of
 tomorrow. This scalability needs to be woven around optimal capex so
 that the asset remain affordable for users. For this to happen a
 mindset shift is required: Construction companies need to extend beyond
 the role of mere contractors and engage in the complete asset lifecycle
 (design, finance, construction, operation and ownership). This
 integration will ensure long-term asset usability and margins-
 accretion on account of complex higher ticket engagement.
 
 At Unity, we responded with business restructuring comprising the
 following features:
 
 - One, provide focused resources for each business vertical comprising
 building and industrial construction, transportation as well as
 irrigation and water supply
 
 - Two, treat each business as a separate corporate entity with targets
 and budgets
 
 - Three, foster a spirit of healthy internal competition to strengthen
 overall efficiency
 
 - Four, enhance management bandwidth to capture value in synergic
 vertical opportunities
 
 - Five, unleash the value embedded in each vertical
 
 With this restructuring in place, we are already in the L1 stage for
 orders of nearly Rs. 1,800 cr in the first quarter of 2011-12, and are
 confident of achieving our targeted fresh order accretion of Rs.
 4,000-5,000 cr in 2011-12.
 
 Leveraging our three-decade sectoral experience, we strengthened our
 execution capabilities through state-of- the-art construction assets
 and strong people competencies. This will result in faster site-level
 turnarounds and order book liquidation, resulting in a projected Unity
 topline of USD 1 bn in three years.
 
 Sincerely,
 
 Kishore K. Avarsekar
 Chairman and Managing Director