Sanguine Media

Dear Shareholder''s
 
 We have grown stronger, better equipped and more confident to help
 shape the future of the Media and Entertainment industry nationwide.
 This has happened, because we moved forward with a conviction in
 inspired leadership.
 
 Leadership is often misunderstood as being ahead of others. To me, it
 is first about being ahead of ourselves, fighting the odds, challenging
 conventions and doing things that we did not think were possible.
 Leadership is not a static process, but involves dynamic thinking and
 decisive action.  The transformation, however, needs to surpass the
 speed of change in the external environment. Only then can leadership
 be sustained. This is what we consider our biggest challenge.
 
 In a constantly evolving Media and Entertainment industry we
 continually need to 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. The outlook on the world economy is looking up as most
 economies are on the way to recovery while India continues to be the
 focal point for innovation and investments in the Media & Entertainment
 sector.
 
 PricewaterhouseCoopers (PwC) in a media outlook report released in
 July, 2011 stated that, The next five years will see digital
 technologies increase their influence across the industry and rapid
 change in technologies and consumer behavior will continue across all
 media and entertainment segments. However, the pace of change will
 continue to be slower in India as compared to other territories.
 
 The television industry is expected to grow by 12.9 per cent
 cumulatively over 2009-14, according to PricewaterhouseCoopers (PwC).
 The industry grew by 15.5 per cent in 2010 and is slated to register a
 growth rate of 13 per cent in 2012. TV will remain the highest grosser
 of revenues and is expected to corner 45.7 per cent of the total ad pie
 this year, a further rise from 44.5 per cent in 2010.
 
 The thrust on transparency in corporate governance and empowerment of
 people at all levels will remain a constant endeavor at Sanguine. I
 would like to take this opportunity to thank all members of our
 corporate family for their continuous encouragement and support. We
 will do everything possible to live up to your expectations.
 
                                                             sd/-
 
                                                    Kumar Raichand Madan
 
                                                      Managing Director