Good Morning, Ladies & Gentlemen,

I have great pleasure in welcoming you to the 25^th Annual General Meeting of your Company. The Annual Report, including the Directors’ Report and the Audited Accounts for the year ended March 31, 2011, as well as the Notice convening the meeting have been with you for some time. May I have your permission to take them as read?

During the year under review, the global economic sentiment remained subdued under the influence of the rising US deficit, the substantial increase in commodity prices (particularly the price of crude oil), the sovereign debt crisis in Europe, the noticeable unrest in the pan-Arab world and the tsunami-generated crisis in Japan. The performance of the Indian Economy was quite creditable against this backdrop

Nevertheless, the rising tide of inflation and the return to the high interest regime discouraged fresh investment. A near-paralysis in governance and the very real threat of devolvement of FCCBs are keeping the market sentiments subdued. It is not surprising, therefore, that the standalone results show stagnation. On the other hand, the acquisition of Saffron Asset Advisors has given us a significant new avenue for growth and resulted in the overall growth of 11% this year. With this acquisition, your Company is now the largest Indian private equity fund house in the country, with over US$ 3.2 billion under its management

Your Company has returned to the fund-raising market in the latter part of FY2011 and three new funds are expected to achieve closure during the current year. The encouraging market response is undoubtedly influenced by your Company’s ability to profitably exit from 15 investments, thus returning US$ 221 million to the investors

It is extremely encouraging to note that the Company has been able to retain the skillsets which have been assiduously built up over the last ten years. Being part of the multifaceted IL&FS conglomerate would undoubtedly enable your Company to get an early start in identifying new investment opportunities and in harnessing new funds. Therefore, we look forward to FY2012 with confidence and optimism


Thank you,

S M Datta
Chairman