Cantabil Retail India Ltd.

Dear Shareholders

I am delighted to write to you once again to update you on the performance of CantabilRetail India Limited. I would like to say that another eventful year has passed by and weare glad to share thoughts with you on our performance and prospects through this annualreport.

INDUSTRY OVERVIEW:

The Indian retail industry has presently emerged as one of the most dynamic and fastpaced industries as several players have started to enter the market and growth in ApparelIndustry in India is increasing manifold with the change in lifestyle earnings andurbanization of the customers. The worldwide consumers are accepting the apparel fashionproducts produced in India. The emergence of branded apparel outlets shopping malls arealso increasing rapidly all over India.

The apparel retailing in India consists of 95% of total sales in department stores; 70%in hypermarkets etc. The apparel fashion retail brands have been elevating the businessand economy in India rapidly. The men’s wear segment portrays the highest scope ofgrowth. Presently the growth rate is more for women’s wear; growing at 12% and isexpected to gain majority share in future. Other apparel segments such as kids wear arealso increasing very rapidly

COMPANY’S PERFORMANCE:

According to Principal Business Activities of the Company (All the business activitiescontributing 10% or more of the total turnover of the Company) :

As of 1^st April 2014 the company had 143 stores. 12 new stores were openedand 9 non-performing stores were closed with a net increase of 3 stores during the year.The strategy of investing in the growth of the company’s own retail businesscontinues to be pursued with conservative aggressiveness.

As a result we start 2015 with confidence that the business will continue to deliverhigh-quality growth and generate long-term value to all stakeholders.

Our network of Retail Partners in particular continues to strengthen and become moresophisticated day by day. It is together that we invest in the updation of shops in theservices we provide in the value of our brands and in the style and quality of ourcollections. All this is driven by a philosophy of being in direct contact with the marketand as close as possible to the final consumer.

ACKNOWLEDgEMENTS

I am delighted to thank the entire Board for their continuing commitment andengagement. During the year Mr. Brij Mohan Aggarwal resigned from the Board. However wewere delighted to welcome Mrs. Renu Jagdish.

And finally I would like to record my appreciation to all our shareholders and alsoour customers suppliers vendors and lenders for their unstinted support to the Companyand for the confidenceand trust consistently reposed in our organization throughout.

We will continue to strive towards attaining the company’s goals.

Thank You