Dear Shareholders,

We meet at the end of another challenging year of your company, which has been moving ahead confidently on the road to progress, prosperity, growth, expansion and development. In line with its forward-looking vision, your company has been growing remarkably well, successfully achieving its various targets over the past four decades. The year gone by saw the company’s growth scale new levels as we continued to march towards achievement of new goals and realization of new dreams. During the year, we set certain objectives, goals and targets, and achieved them with relative ease despite several challenges on our way. The year saw the company expand, sectorally and geographically, to add many new projects across diverse verticals.

SUSTAINED REVENUE AND GROWTH

The growth of any company is manifested best and most in its numbers. The year 2010-11 saw the company achieve a major landmark in this regard, crossing the ` 1,650.00 crores revenue mark during the year. It gives me great pleasure to inform you that your company has approx. ` 5,850.00 crores worth of orders in hand, of which around ` 1,200.00 crores will be completed this year.

Your company will be adding another ` 1,500.00 crores worth of orders to its portfolio, making it a whopping ` 6,000.00 crores orders in hand by year end. Notwithstanding the challenging environment in the construction industry, your company continued to sustain its growth levels of the last several years.

MOVING FAST ON BOT TRACK

As we continued to expand our position in the traditional sectors of growth within the construction industry residential, commercial, industrial, hotels, etc. Our focus shifted increasingly to the BOT space. Your company, on the platform of its solid foundations and intrinsic strengths, is well-positioned to grasp the opportunities in the BOT space and is moving fast on the BOT track.

We have already bagged a prestigious BOT (Build Operate Transfer) Project at Kota, Rajasthan, comprising a bus terminal with commercial complex, valued at ` 72.00 crores to be licensed for 40 years. The company is also in various stages of negotiation for other BOT projects, which we feel shall augment our revenues manifold, going ahead.

NEW FORAYS, NEW GOALS

Undoubtedly, the company’s growth over the years has been remarkable, enabling us to set the pace for future progress. However, we do realize that the key to the sustained progress of a company is dependent as much on its ability to de-risk as on its strengths and capabilities. In line with this philosophy, and in an effort to continuously leverage the opportunity matrix across new lines of business, it has been your company’s consistent effort to move into new areas of business and set new goals to take it to the next level. Our plans to foray into construction of power projects – a highly lucrative business opportunity in my opinion, are aimed at making the most of the potential in this field. We are currently in discussion for pre-qualification with a number of players and see Annual Report 2010-11

Annual Report 2010-11 in this business a huge growth opportunity for your company. Another area of future growth, I personally feel, lies in water and sewage treatment projects. At present, Residential and commercial contributes 47% of the company’s order book while the infrastructure segment contributes 11%. A crash in the real estate market in 2008-09 resulted in muted order inflow for the company. With this in view, the company has identified JNNURM funded urban infrastructure projects as the next driver of growth. On the basis of Union Government initiatives and our own research, we believe the sewage treatment sector will provide a boost to our bottom line. We were a part of the Sonia Vihar water treatment project and have a number of other such projects in the pipeline. The company is currently scouting for potential acquisition target with capabilities in implementation of water & sewage treatment projects. We are now also looking at a higher degree of engagement in Inorganic Growth through acquisition or joint venture opportunities in urban infrastructure segment and real estate, which will provide synergy to existing business and enable us to generate higher returns.

READY TO FACE FUTURE CHALLENGES

As we face the future, we do so with the knowledge that we are fully capable of addressing all challenges, on the back of our robust strengths on which we have built the foundation for our sustained progress. So let us be more aggressive in incorporating expansion possibilities in our growth plans. And let us ensure that our strategies and our actions will enable us to always LIVE THE FUTURE! I am confident that we can count on your continued support and commitment to achieve greater heights in the years ahead. On this positive note, let me take this opportunity to express my heart-felt gratitude to all our patrons, shareholders, financers, bankers, stake holders, employees and also to record our sincere appreciation for the co-operation extended by the Central & State Governments, other statutory authorities and others associated with your company.

Warm Regards,

Bikramjit Ahluwalia

Chairman & Managing Director