Dear Shareholders,
 
 It gives me pleasure in sharing with you that in March 2011, , your
 company, Alok Industries Limited achieved a land mark of 25 years of
 its incorporation. This 25 years of journey has been very enriching,
 mixed experience and we have learnt and matured in the process.
 
 Looking back today, Alok has evolved into a integrated manufacturer and
 has emerged as world class Textile solution provider in apparel fabrics
 ,home textiles, garments, and polyester yarns, selling directly to some
 of the world''s top brands and retailers, manufacturers, exporters and
 importers.,. Its core textiles business has the unique positioning of
 being integrated across the cotton and polyester fibre production
 chains and has the flexibilities in capacity to optimise opportunities
 in the ever changing market. In addition, during this period, the
 Company has established strong relationships with sales channels and
 customers both in the domestic and export markets.
 
 More particularly, your Company has utilised the last decade to create
 competitive and world class capacities and capabilities, which need to
 be optimally utilised in the coming years. The tree has been planted
 which is ready to bear the fruits.
 
 On 25th anniversary , there are several reasons to celebrate.  We have
 gained a strong footing in the global textiles and apparels market,
 completed projects and commissioned capacities across products
 according to plans, and grown into a Company with a turnover over of
 Rs. 6,388 crore in 2010-11 and emerged as one of the largest integrated
 textile manufacturing company in the global textile market. Today, it
 gives me and the team at Alok even more satisfaction to look forward at
 the potential for quantum growth that lay ahead. The spade work has
 been done and most of the large investments are in place. The next
 decade will be about sweating assets and reaping benefits while
 maintaining the growth momentum.
 
 The strategic investments into Realty and overseas retail too, are
 starting to create value on their own. Alok Industries looks forward to
 monetising these strategic investments as these assets are now ready
 and Should yield significant revenue.
 
 Macro-economic trends suggested that global economic growth was back on
 track. You would recollect that in the calendar year (CY) 2009, global
 output had actually reduced by 0.5% with advanced countries witnessing
 output contraction by (-) 3.4%. Even emerging and developing economies,
 who were earlier growing by over 6.5%, witnessed a reduction in growth
 rate to 2.7%. By the end of 2009 we had already started observing
 encouraging trends in the emerging economies of China and India, and in
 the world''s largest economy – USA. Fortunately, this was no aberration
 and the positive trend continued through CY2010.  Most of the developed
 economies bounced back – USA grew by 2.8% in CY2010 against (-) 2.6% in
 CY2009; the Euro Zone grew by 1.7% in CY2010 against (-) 4.1% in
 CY2009; and Japan grew by 3.9% in CY2010 against (-) 6.3% in CY2009.
 
 The revival has been even more rapid in the emerging and developing
 economies. As a group, these countries witnessed a much higher output
 growth of 7.3% in CY2010. Estimates suggest that China grew by around
 10% in CY2010, while India recorded a GDP growth of 8.5% in 2010-11, on
 the back of 8% growth in 2009-10. And, the global economy has recovered
 to record a growth of 5% in CY2010.
 
 Estimates suggest that driven by strong demand with improvement in
 economic conditions, world textile fibre consumption grew by 5% and hit
 record levels in CY2010.  The demand pull led to a steep price increase
 in the dominant fibre – cotton. Consequently, by the end of 2010-11,
 there was a move towards man-made fibres and polyester demand and
 prices started to rise. There will be short term issues across
 different parts of the textile value chain given changes in trends and
 choices. However, over a longer term the important thing is demand is
 back on a global footing.
 
 With an anticipated CAGR of 5.7% for the five-year period 2009-2014,
 the global textiles market is expected to grow to ,369.8 billion by
 the end of 2014. In this growing global market, India has great
 potential to grow its textiles and apparel output by serving both its
 growing domestic market and exports. In fact, given its competitive
 cost structures, estimates suggest that India''s US$ 70 Billion Textile
 and Apparel industry has the potential to grow at 11% per annum to
 reach US$ 134 Bn in 2015.
 
 Alok has positioned itself as a large integrated player with world
 class standards and production across both the polyester and the cotton
 chain and as such, has ensured that it has market for its wide range of
 products in any global scenario.
 
 Your Company continued to progress in utilising all the opportunities
 during 2010-11. The highlights of the financial performance, on a
 stand-alone basis are:
 
 - Net Sales increased by 48.18% from Rs. 4,311.17 crore in 2009-10 to
 Rs. 6,388.43 crore in 2010-11. Growth was driven by a 51.55% increase
 in domestic sales - Rs.4, 171.00 crore in 2010-11 againstRs.2,752.18
 crore in 2009-10; and exports increased from Rs. 1,558.99 crore in
 2009-10 to Rs. 2,217.43 crore in 2010-11 - growth of 42.24%.
 
 - Earnings Before Interest, Depreciation, Tax and Amortisation (EBIDTA)
 increased by 38.03% to Rs.  1,756.35 crore in 2010-11 against Rs.
 1,272.48 crore in 2009-10. Given the high material costs, EBIDTA
 margins reduced from 29.52% in 2009-10 to 27.49% in 2010-11
 
 - Profit Before Tax (PBT) increased by 55.60% from Rs.  374.79 crore in
 2009-10 to Rs. 583.19 crore in 2010-11.  Profit After Tax (PAT) was
 404.36 crore; a growth of 63.48% over Rs. 247.34 crore PAT generated in
 2009-10
 
 - Return on Net worth (RONW) improved from 7.92% in 2009-10 to 11.22%
 in 2010-11. This was driven by the growth in sales and profits
 
 These results primarily describe the performance of the textile
 operations, which is the core business of the Company.  Importantly,
 all the divisions within this business across the textile value chain
 have contributed positively to this growth.
 
 The company faced challenges in terms of cost of raw materials,
 especially cotton. While the company continued to focus and reduced
 people costs, interest costs and other overhead costs as a ratio to
 sales, it could not offset the rise in material costs completely and
 profit margins were affected to same extent. We continue to make all
 efforts at improving value additions, reducing operation costs and
 improving efficiencies to overcome higher input costs, which is a
 reality that the industry has to face in the near future. Going
 forward, we believe that higher economies of scale with the added
 capacities coming on stream will help in improving ROCE.
 
 As I have said, the focus for the next round of growth is to get
 greater returns from investments, generate more free cash in the system
 and financially deleverage the business. On two of these fronts, ROCE
 and cash generation, already there were positives in 2010-11.
 
 - Return on Capital Employed (ROCE) was 11.53% in 2010-11, up from
 9.52% generated in 2009-10
 
 - Net cash flow from operating activities increased by 526% fromRs.
 184.56 crore in 2009-10 toRs. 1,155.87 crore in 2010-11
 
 If this trend is maintained and hopefully further improved in the
 coming years, I am sure we will succeed in the third endeavour of
 reducing financial debt. In this respect, it is also heartening to note
 that our primary investments are also starting to move in the right
 direction.
 
 The retail operations, both at home and in UK are starting to gain
 traction and moving towards profitability. The Rs.H&A chain of stores
 continued to spread its stores across India with a total of 291 outlets
 (including shop-in-shop) by the end of 2010-11. The target is to have
 about 500 stores operational over next two years. Alok H&A Limited
 recorded sales of Rs.  41.75 crore in 2010-11 and generated cash
 profits. Store Twenty One'', the UK retail chain of value-format
 stores did reasonably well during the year. The company for the first
 time has shown a positive EBITDA of £ 0.01 mn in 2010-11.  For the 12
 month period ended March 2011, the stores have registered sales of £
 129.73 mln as compare to £ 117.06 mln in FY 2010 - a growth of 10.83%.
 
 Even the international operations of the Czech subsidiary - Mileta -
 have turned around. Net Sales grew by 13.21% from € 18.06 million in
 2009-10 to € 20.45 million in 2010-11. This revenue growth has
 contributed to PBT turning around from a deficit of - € 1.98 million in
 2009-10 to profits of € 4.28 million in 2010-11.
 
 The commercial real estate projects are also completed and we look
 forward to monetising these assets in the near future and use the
 proceeds to repay consolidated debt.
 
 I urge you to read the details of our operations in 2010-11 that has
 been detailed out in the chapter on Management Discussion and Analysis.
 
 Your Company also appreciates that this performance level cannot be
 reached and sustained without the right quality of people. With this
 belief, your Company has laid significant emphasis on its HR practices.
 There are concerted efforts to ensure that the most appropriate people
 are recruited into the organisation. A culture of training, people
 development and meritocracy to ensure that maximum human capital
 efficiency is continuously promoted across the Company and its
 subsidiaries and associates. At the same time, employees have the
 satisfaction of working in an organisation that encourages skill
 development and learning and monitors career growth.
 
 I would like to take this opportunity to thank each and everyone
 associated with the Alok Group in its journey over the past 25 years
 and going forward. Let me also extend a special word of gratitude to
 all our vendors, customers, bankers and government authorities.
 Finally, to you, our shareholders, thank you for reposing faith in our
 business.
 
                                                   Yours Sincerely,
 
                                                  Ashok B Jiwrajka
 
                                                Executive Chairman