Dear Shareholders,
 
 The year gone by proved to be a testing year for economies across the
 globe including India. Despite a number of global challenges and high
 inflation in domestic economy, India did well in recording a GDP growth
 of 6.5% in fiscal year 2011-12 (FY 12). In an adverse year that
 witnessed continued tightening of liquidity, increase in interest rates
 and sharp depreciation of Indian Rupee against US Dollar, this growth,
 though the lowest for our economy in past 9 years, is a clear
 reflection of the sound inherent fundamentals in our economy.
 
 Media & Entertainment Sector
 
 Indian Media and Entertainment (M&E) sector has made rapid strides over
 the recent years. Traditional mediums of television and print have
 continued to strengthen their reach and revenue. All along, new mediums
 like online, mobile and gaming have continued to accelerate their
 expansion in terms of revenues and reach. As a result, Indian M&E
 sector rose to Rs.728 billion in 2011 from Rs.514 billion in 2007. Going
 forward, it is estimated to grow at a CAGR of 14.9% between 2011 and
 2016 according to FICCI Frames, the joint study of FICCI and KPMG. The
 study estimates Indian television industry to have grown to Rs.329
 billion in 2011, registering an increase of 10.77% over Rs.297 billion
 recorded in 2010. Cable & Satellite (C&S) penetration on paid basis is
 estimated to have reached 81% of total TV households of 146 million.
 Going forward, the potential is immense with estimates of TV households
 growing to 188 million and paid C&S penetration reaching 89% by 2016.
 
 Digitization in Television
 
 Indian television industry appears to head towards absolute
 digitization soon. This much awaited step has potential to transform
 the entire television landscape completely. Better viewing experience,
 making choice of channels one subscribes, transmission of more channels
 to households etc., are going to benefit the consumers immensely.
 
 What is of greater significance is the addressability that digitization
 will induce in television ecosystem.  Addressability will bring about
 significant results for the MSO like WWIL. Digitization would
 contribute towards plugging the leakages that occur.
 
 WWIL in FY 12
 
 As a leading Multi System Operator (MSO) in India, Wire and Wireless
 (India) Limited is geared up to lead the digitization campaign from the
 front. It has shown the character of a true leader by being the first
 MSO to offer a minimum of 400 Standard Definition and 30 High
 Definition channels on its digital cable network. The channels offered
 by WWIL, being the highest in the industry, is a step towards creating
 industry benchmark.
 
 Being present in three out of four metros to undergo absolute
 digitization in the first phase, WWIL has fast mobilized necessary
 resources in terms of finances and requisite number of set top boxes.
 It has set an ambitious target to acquire 2.5 million customers on its
 digital platform in the whole of FY 13.
 
 WWIL''s operating revenues reached Rs.3428.2 million in FY 12 recording a
 growth of 12% compared to FY 11. The operating profit (EBITDA) of WWIL
 stood at Rs.192.0 million in FY 12 compared to Rs.163.6 million in the
 previous year recording a 17.3% growth, year-on-year basis. The year
 gone by also witnessed the adoption of latest technologies and
 association with world-class technology partners.
 
 Staying Together
 
 Business ethics and transparency, a culture of collaborative growth and
 meritocracy, a ''People First'' approach at workplace, and a goodwill
 pool that can never be compromised for anything; these form pillars of
 our citadel. I acknowledge the continued trust and patronage of all our
 customers, channel partners, broadcasters, investors and shareholders.
 I thank and congratulate all the management and staff members for their
 valuable contribution.
 
 As the Indian television industry steps into an era of phased
 digitization, I beckon each one of our stakeholders for continuance of
 their trust and patronage. Together we have grown so far, together we
 will grow much bigger!
 
 Sincerely
 
 Subhash Chandra
 
 CHAIRMAN