I am presenting this fourth annual report of the company since 2007, at
 the end of a very challenging year for the company.
 
 Adverse weather conditions in Thailand and a drastic reduction in the
 sunflower acreage across the world were the major factors which
 contributed to the low financial results of this year. Fortunately both
 these factors have corrected themselves in 2011 and hence were
 temporary setbacks.
 
 We acquired the business of a well-known sorghum seed company called
 Crosbyton Seed Company in Texas, USA at the beginning of this year. We
 are very happy with this acquisition which has strengthened our
 position considerably in the sorghum markets of US and Mexico.
 
 As Australia recovered from the unprecedented drought of 2009, our
 sorghum business got a big boost during this year. We have registered
 36% growth in sorghum business during this year. We introduced our
 sorghum hybrids for the first time in Africa with excellent results.
 Argentina recorded a good growth in sorghum this year. We have
 undertaken a new initiative to promote high quality forages in India
 and we are getting very encouraging results.
 
 In spite of the very poor business we had in Thailand during this year
 we could record a 13% increase in our global corn business due to an
 excellent off take of our products in the International markets. We
 continue to do well in the tropical corn markets as our breeding
 program in
 
 Thailand is bringing out winning products. The latest product PAC 339
 is catching the attention of the market in Thailand.
 
 Another crop which did very well in 2010 is Canola. We recorded a
 whopping 69% growth in this crop due to an excellent performance in
 Australia. The counterpart of Canola, the Indian Mustard also showed an
 excellent growth of 70% in India. Between the two of them they have
 given us a tremendous boost in the Brassica markets.
 
 Our Argentinian business ran on course in spite of adverse weather
 conditions and reduction in sunflower business. They created some new
 opportunities and enhanced their business. We integrated the front end
 of our operations in Argentina with UPL and this has given us some
 benefit in terms of market penetration.
 
 The sorghum markets in US were flat and our business did have an
 adverse impact because of this. This situation is not likely to improve
 in 2011.
 
 The loss of revenue in sunflower, compared to 2009, was almost Rs.
 100cr which had a major impact on our financial for this year.
 
 The commodity prices of sunflower came down and the acreage in the
 markets we operate reduced by almost 50%. Thankfully the sunflower
 prices have gone up now and we are already getting a good demand for
 our products in 2011. So the situation will change in this year.
 
 Thailand had a severe drought followed by floods in many parts of the
 country in this year. The net result was a loss of almost Rs. 30cr in
 revenue compared to 2009. Here also the situation has changed
 completely and 2011 business has looked up.
 
 Nutrisun oil continues to be accepted by more and more customers. We
 have considerably diversified production and customer base from
 Argentina to US and Europe. We are expecting to take some major strides
 in this business in the next two years.
 
 The Longreach wheat program has brought out two high performing wheat
 varieties into the market which have been very well accepted. These
 varieties will help us to gain a good penetration of the Australian
 wheat market.
 
 Our vegetable seed business is bringing out some very interesting
 products particularly in tomato. These products will help us to gain
 market share. Our sweet corn business has grown by more than 31% and it
 has made deep inroads into some of the South East Asian markets.
 
 During the year we carried out a restructuring of our operations in
 Australia which resulted in a head count reduction of 27 and a major
 reduction in employee costs. Similarly in India we have cut down on
 manpower and pruned our fixed costs down significantly. Both these
 actions will help us in the future with reduced fixed costs.
 
 We continue to invest in research and create intellectual property
 which will give us benefit in the long run. We are no doubt sacrificing
 current profits for this purpose but this is a necessary investment for
 us to stay competitive in the market.
 
 Overall it has been a very challenging year. We are very sure that the
 setbacks are temporary and the investments we made in creating longer
 term value for our business will stand us in good stead.
 
 We thank you for your understanding and for your support. We are
 hopeful of bringing more positive results in future with your continued
 support.
 
 Yours Sincerely
 
 V.R. Kaundinya
 Managing Director & CEO