Dear Shareholders,
 
 The Directors have pleasure in presenting the Eleventh Annual Report
 on the business and operations of your company and the Audited
 Financial Results for the year ended on 31st March 2011.
 
 Financial Results
 
 The performance of the Company for the financial year ended 31st March,
 2011 is summarized below:
 
                                                  (Rs. in Lacs)
 
 Particulars                               2010-11       2009-10
 
 Gross Revenue                             7233.15       7903.64
 
 Total Expenditure                         7070.35       7717.57
 
 Profit before financial charges, 
 depreciation and taxation                  162.80        186.07
 
 Depreciation                                 9.13          2.16
 
 Profit/(Loss) before tax(PBT)               153.67        183.91
 
 Less: Provision for Current tax             49.93         60.23
 
 Deferred Tax Liability                       5.28          2.28
 
 Profit/(Loss) after tax                      98.47        121.40
 
 Provision for dividend                      72.58         50.59
 
 Provision for dividend tax                  12.05          8.60
 
 Transfer to general reserves                 4.92          6.07
 
 Balance carried to Balance Sheet            74.68         65.77
 
 Earning per share                            1.75          2.40
 
 OPERATIONS:
 
 The Company has recorded a turnover of Rs.7144.30 lacs in the current
 year and made a net Profit of Rs. 98.47 lacs. The Company has been
 continuously working to improve the performance.
 
 DIVIDEND:
 
 The directors are pleased to recommend, for approval of the Members a
 dividend of Re.  1/- per share on 72,58,110 equity shares of Rs 10/-
 each of the Company for the financial year 2010-11.The dividend on the
 Equity shares, if declared would involve an outflow of Rs.72,58,110
 towards dividend and Rs.12,05,481 towards dividend tax, resulting in a
 total outflow of Rs.84,63,591/-.
 
 TRANSFER TO RESERVES:
 
 The Company proposes to transfer Rs.4.92 lakhs to the Profit and Loss
 Account.
 
 CAPITAL OF THE COMPANY:
 
 During the year Company has allotted 22,00,000 equity shares on
 preferential basis to the promoters and public at an issue price of
 Rs.12/- each. As a result the paid up capital of the stands at
 72,58,110 equity shares at Rs. 10/- each. Authorized share Capital of
 the Company stands at Rs.10,00,00,000 divided into 1,00,00,000 equity
 shares of Rs. 10/- each.
 
 PUBLIC DEPOSITS:
 
 Your Company has not accepted any deposits falling within the meaning
 of Sec.58A of the Companies Act, 1956 read with the Companies
 (Acceptance of Deposits) Rules, during the financial year under review.
 
 LISTING:
 
 The equity shares of your company are listed on The Calcutta Stock
 Exchange Limited and the scrip is traded on Bombay Stock Exchange
 Limited.
 
 DIRECTORS:
 
 In accordance with the Companies Act, 1956 and read with Articles of
 Association of the company the Director, Mr. G.V. Kamath retires by
 rotation and is eligible for reappointment.
 
 Your Board recommends the re-appointment of the Director above.
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 Pursuant to the provisions of Sec.217 (2AA) of the Companies Act, 1956
 the Board of Directors of your Company hereby certifes and confrms
 that:
 
 i. In the preparation of the Annual Accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 ii. The Directors have selected such accounting policies and applied
 them consistently and made judgment and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year;
 
 iii. The Directors have taken proper and suffcient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the Assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 iv.  The Directors have prepared the Annual accounts on a going concern
 basis.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
 EARNINGS AND OUT GO:
 
 The required information as per Sec.217 (1) (e) of the Companies Act
 1956 is provided hereunder:
 
 A. Conservation of Energy
 
 Adequate measures have been taken to reduce energy consumption,
 wherever possible.  Total energy consumption and energy consumption per
 unit of production is not applicable as company is not included in the
 industries specifed in the schedule.
 
 B. Technology Absorption
 
 1. Research and Development (R&D) : Nil
 
 2. Technology absorption, adoption and innovation : Nil
 
 C. Foreign Exchange Earnings and Out Go
 
 Foreign Exchange Earnings : Nil
 
 Foreign Exchange Outgo : Rs. 11,04,382/-
 
 PARTICULARS OF EMPLOYEES:
 
 There is no employee who is falling under section 217 (2A). Therefore,
 the disclosures required to be made under section 217 (2A) of the
 Companies Act, 1956 and the rules made there under are not applicable.
 
 CODE OF CONDUCT:
 
 The Code has been circulated to all the members of the Board and Senior
 Management and the compliance of the same has been affrmed by them.
 
 AUDITORS:
 
 M/s M M Reddy & Co., Chartered Accountants retire at the ensuing Annual
 General Meeting and being eligible have expressed their willingness for
 re-appointment. Your directors propose the appointment of M/s M.M.Reddy
 & Co., Chartered Accountants, as statutory auditors to hold Office until
 the conclusion of the next Annual General Meeting of the company.
 
 PREFERENTIAL ALLOTMENT:
 
 During the year Company has allotted 22,00,000 equity shares of Rs.12/-
 each to the promoters and public on preferential basis.
 
 The Company could raise about Rs.2,64,00,000 from the above issue and
 spent the same towards purposes as mentioned in the respective
 explanatory statement. As a result the paid up capital stands at
 72,58,110 equity shares at Rs. 10/- each aggregating to Rs.7,25,81,100.
 
 CORPORATE GOVERNANCE:
 
 As a listed company, necessary measures have been taken to comply with
 the listing agreements of Stock Exchanges. A report on Corporate
 Governance, along with a certifcate of compliance from the Auditors, is
 attached elsewhere in the Annual Report.
 
 ACKNOWLEDGEMENTS:
 
 Your directors would like to express their grateful appreciation for
 assistance and co-operation received from clients, banks, investors,
 Government, other statutory authorities and all others associated with
 the company. Your directors also wish to place on record their deep
 sense of appreciation for the excellent contribution made by the
 employees at all levels, which enabled the company to achieve sustained
 growth in the operational performance during the year under review.
 
 DECLARATION BY MANAGING DIRECTOR OF AFFIRMATION BY DIRECTORS AND SENIOR
 MANAGEMENT PERSONNEL OF COMPLIANCE WITH THE CODE OF CONDUCT.:
 
 The shareholders,
 
 I, P. Ravinder Rao, Managing Director of the Company do hereby declare
 that the directors and senior management of the Company have exercised
 their authority and powers and discharged their duties and functions in
 accordance with the requirements of the code of conduct as prescribed
 by the company and have adhered to the provisions of the same.
 
                                  For and on behalf of the Board of
                                      Arunjyoti Enterprises Limited
 
                                                         Sd/-
 Place : Secunderabad                                P.Ravinder Rao
 Date  : 13.08.2011                               Managing Director