Dear Shareholders,
 
 THE GLOBAL ECONOMY SHOWED STRONG INDICATIONS OF A TURNAROUND AT THE
 BEGINNING OF 2010-11 AND EXPECTATIONS WERE GENERALLY OPTIMISTIC. While
 the state of affairs is recovering from the global meltdown two years
 ago, the global economy is still not back to desired health. While
 developed nations are growing slowly, emerging economies are standing
 out as real drivers of the global economic activity, India and China
 the prime movers with India’s GDP growth at 8.6 per cent in 2010-11.
 
 The Indian manufacturing sector grew 8.8% in 2010-11. India is ranked
 second in terms of manufacturing competence and is currently rated as
 one of the most attractive global investment destinations. As per the
 super-cycle report by Standard Chartered''s global research team, China
 is likely to grow at 6.9% rate over the next two decades while India is
 likely to grow on an average of 9.3% over the same period and trail the
 US as the third-largest economy by 2030. The said report also sees the
 world economy reaching USD308 trillion by 2030. Based on the growth and
 inflation forecasts, China will be a USD73 trillion economy and India
 will be a USD30 trillion economy by 2030. Currently, India is slightly
 over a trillion dollar economy.
 
 Dr. Ramchandra N Galla, Chairman