RAMKY INFRASTRUCTURE LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT Dear Shareholder, The Global economic environment remained challenging during the year. High Interest rates, rising inflation, depreciation of Indian currency, coupled with global macroeconomic uncertainties resulted in FY 2012 estimated GDP growth to 6.5% as compared to 8.4% in the previous year. Investment in Infrastructure has slowed down with a rapid decrease in fresh projects. The Investment growth scenario is expected to continue to be under pressure. Even under these tough times and the pressures in the economy, Ramky Infrastructure Limited (Ramky Infra) demonstrated resilience with consolidated revenue of Rs. 3,934 crores with a growth of 22.40% compared to the last fiscal and Consolidated Net profit of Rs. 244 crores with a growth of 18.43% compared to last fiscal. The company defines itself by being far sighted, customer focused, leaner and agile to convert opportunities into business. Evolved from a consultant to an EPC player and finally infrastructure developer, Ramky continues to build on core competencies thus reducing risk of dependence on any one sector or project and helps in participating in projects across the country. We have strengthened across all parameters and are focussed in managing costs and prudent use of capital. Our Credit ratings are comfortable and place us in a decent position for laying foundation to continual growth. We have been and continue to remain focussed on creating long term share holders value. We will stay focussed and selective to achieve increasing returns. Vigorous efforts are on going to procure high value contracts in complex and niche projects. Our efforts will continue towards ensuring that conversions ratios from bid to order will be maintained. We are stepping up our foray into countries where opportunities are being opened up and where the competitive pressures are as yet low. We will strive for excellence and leadership in every part of our operations with an edge to grow exponentially with collaborations that transcend geographical and cultural boundaries. As part of its blueprint to become multinational, we would gradually increase our geographical presence globally. The company has forayed into West Africa, Gabon through its subsidiary, constructing various facilities for Gabon SEZ and has plans for expansion in Gabon and other parts of West Africa. The order book as of March 31, 2012 stood at Rs. 13,702 crores compared to Rs. 10,998 crores in 2011. Of this, roads, highways & bridge projects occupy the major share at 43.7% followed by 16.3% in building projects, water & wastewater projects at 16.0%, irrigation projects at 11.8%, industrial projects at 7.5% and power transmission & distribution projects at 4.7%. Besides, the company has around Rs. 1,057 crores worth of projects in pipeline (where we are declared as L1) and around Rs. 14,682 crores worth of unopened tenders as on June 30, 2012 At Ramky, prudent and conscious efforts are made to procure high value contracts in complex and niche projects and sustain the bid-to-order conversion ratios. 'We are constructing high quality national infrastructure for transportation and is one of the prime focus areas of Ramky infra operations'. Ramky Infra committed contribution to the Infrastructure Development has been acknowledged by the receipt of various categories of the following awards. CNBC Infrastructure Excellence Award 2012 CIDC Vishwakarama Awards 2012 Construction Week Awards 2011 D & B Axis Bank Infra Awards 2011 9th Construction World Annual Awards 2011 EPC World Awards 2011 12th Annual Greentech Environment Excellence Award 2011 Ramky Infra is ISO 9001:2008, ISO 14001:2007 & OHSAS 18001 certified for quality management systems, environmental management systems and occupational health and safety management systems respectively which the company applies to the design, development, engineering, procurement and construction of projects. Ramky Infra strives to uphold its commitment to do business with excellence. Since 1994, Ramky Infra has maintained a strong tradition of returning wealth to society by contributing to various social causes. The company has established special CSR wing, Ramky Foundation, for addressing the social needs. 'We emphasize on four thrust areas- natural resource management, women empowerment, education and health. In FY 2011-12, we have taken up 159 programs in these four thrust areas covering 23273 beneficiaries,' We reiterate our commitment to enhance value in the hands of our stake holders. We are thankful for your continued confidence and support for the company's growth and look forward to a bright future for your company. Our passion gets recharged to explore new horizons and achieve growth year after year with the trust placed in us by you, the share holders of the company. I thank the Board of Directors for their support and guidance for the growth of our business year after year. With warm regards Alla Ayodhya Rami Reddy Executive Chairman