I am pleased to address you at the closure of a satisfying fiscal year
 2010-11. Global economic recovery continues to gain strength, aided by
 improving financial conditions. IMF has estimated the global economy to
 have grown by 4.5 % in 2010. Indian economy has been thriving on its
 strong fundamentals and has contributed significantly to the global
 recovery. Advanced estimates of Central Statistical Office have
 projected the Indian economy to grow by 8.6% in FY 11.
 
 The overall growth in the economy is getting reflected in marked
 improvements in various socio-economic indicators. Rising per capita
 income, improving literacy rate, the rise of tier II/III cities as
 potential economic centers, awakening of countrys youth on issues of
 public interest, etc. augur well for the future growth and progress of
 India.
 
 Responsible Journalism
 
 Your Company, through its bouquet of national and Regional news
 channels, has been making its rightful contribution by way of engaging,
 informing and empowering the fellow citizens of our country. Media is
 considered the fourth estate in democracy and shall play a responsible
 role in the overall progress of the country and society. I am glad to
 share with you that Zee News Limited has not only been living up to
 this expectation from the fourth estate but also creating industry
 benchmark through its prudent, responsible and sensible journalism.
 
 At a time when news channels are resorting to a mix of non-news content
 like laughter, crime, reality, etc. and trivialising the news platform,
 your company has continued to focus on presenting unbiased,
 non-opinionated, credible and meaningful news content to its audience.
 The media has to make a choice between tactical or strategic, instant
 term or long term, instant visibility or credibility. Zee News Limited
 has made the right choices and the fact that we were amongst the first
 to report profits, sustain growth and enhance shareholders value bears
 testimony to that effect.
 
 Balancing Growth with Investments
 
 The Fiscal Year 2010-11 was a year of greater significance for your
 Company. The year marked first full year of operations of your Company
 as a pure news broadcasting entity, after the regional general
 entertainment channels were demerged from it in the previous fiscal.
 The Company achieved total revenue of Rs2768.5 million and profit
 before tax of Rs319.2 million in the fiscal year 2010-11. It is
 heartening to note that the new channels we launched in the fiscal year
 2009-10 have started gaining traction and are on course to report
 profitability soon on standalone basis. During the year, we have hived
 off Zee Tamil.
 
 Continuous focus on current deliverables despite being in investment
 and expansion mode has been a unique feature of our Company. Going
 forward, we shall continue exploring newer areas of investments while
 our new channels complete their gestation period and become self-
 generating and self-sustaining.
 
 Empowering People
 
 We are in the business of people and our own people are the backbone of
 companys growth. While our philosophy of responsible journalism and
 operational excellence gives us uninterrupted access to the best of
 available talent, we undertake a slew of initiatives to unearth the
 true potential of talent employed in the Company. These initiatives
 include a bi-monthly in-house magazine, structured reward and
 recognition programme, HR helpdesk, talent identification, executive
 health check-up, focus on Learning & Development and a unique alumni
 programme.
 
 Looking Ahead
 
 With renewed focus on news operations Zee News Limited has grown
 stronger, better equipped and more confident to help shape the future
 of TV News Industry. As we move ahead in the next few years we will
 align our business with technology breakthroughs, leverage the emerging
 market niches that are opening up as a result and respond to the
 aspirations of a new family of viewers with speed and efficacy. With
 the increase in purchasing power across tier II & III cities regional
 news business will be the way forward.
 
 Corporate Governance and Corporate Social Responsibility remain to be
 important focus areas for the Company. The company will continue to
 further the culture of transparency with respect to responsibility,
 accountability and reporting.
 
 Before I finish, let me place on record my sincere appreciation to the
 management and employees, investors and lenders, suppliers and
 partners, viewers and advertisers, and governments and society for
 their valuable contributions in the growth and progress of our Company.
 
 It is my pleasure indeed to invite each one of you to accompany us on
 our path of future progress.
 
 With Best Regards,
 
 Subhash Chandra Chairman