The Members,
 
 Astec LifeSciences Ltd.
 
 The Directors'' have pleasure in presenting the 17* Annual Report and
 the audited accounts for the year ended March 31,2011.
 
 1.  Financial Highlights
 
                                           Rs. in lacs
                                      2010-11      2009-10
 
 Sales and other operating 
 Income                                11506.68    11638.50
 
 Other Income                          120.24      102.36
 
 Total Income                          11626.92    11740.86
 
 Profitbefore I nterest& 
 Depreciation                          1694.90      2638.42
 
 Less: Interests Depreciation          980.86       921.56
 
 Profitbefore Tax                      714.04       1716.86
 
 Less: Provision for 
 Income Tax                            135.20       305.00
 
 Less: Provision for Deferred Tax      72.59        28.17
 
 Profit after Tax                      506.25       1383.68
 
 Less: Prior Period Adjustment        (2.18)        62.78
 
 Amountavailable for 
 appropriation 
 Appropiation                          508.43        1320.91
 Proposed Dividend                     84.65          169.29
 
 Tax on Proposed Dividend              13.73           28.77
 
 Transfer to General Reserve          100.00          300.00
 
 Balance of Profit Carried Forward    310.05          822.84
 
 2010-11 was a challenging year for Astec and we were affected by
 continued de-stocking of inventory by our customers. The Turnover of
 the company has decreased from Rs. 116.38 crores in FY 2010 to Rs.
 115.07 crores in the year under review, thereby resulting in a decrease
 of 1.13%. It is mainly due to reduced pricing of our products by
 customers. Despite a challenging business environment, the company has
 achieved a net profit of Rs. 5.06 crores in FY 2011 as compared to Rs.
 13.84 crores in FY 2010. Our sales was decreased primarily due to
 inventory correction of major multinational crop protection companies
 and the profit was down mainly due to price correction of our finished
 products and company''s inability to pass on the increase in raw
 material prices to our customers.
 
 2.  Operations
 
 The company was successful in stabilizing production of the products
 introduced in the previous year and in increasing production
 efficiencies.
 
 Our efforts have resulted in receipt of many new registrations in
 various parts of the world. Many more registrations are in the
 pipeline. We are in dialogue with some multinational companies for
 manufacturing products on contractual basis. On finalization of the
 agreements, the company will witness a substantial increase in sales
 and corresponding increase in profitability. The business will
 
 be predictable and will provide a platform of stability of the company.
 During the year the company established a relationship with a major
 multinational for supply of one of our products into the global supply
 chain.
 
 We were successful intapping markets in South EastAsia and South
 America.
 
 In Mahad we made investments to increase the capacity of our
 manufacturing facility and to improve the quality of our products. We
 also made the investments in line with our commitment to responsible
 care to improve ou r EHS standards.
 
 We invested in R & D and were successful in developing products and
 intermediates that are unique and will give the company substantial
 growth in the coming years.
 
 3.  Ongoing expansion at newly acquired site:
 
 Work was started on construction of our new 40,000 sq m site at Mahad
 in April 2011. We expect to commission the first phase by January 2012
 and the second phase in March 2012.
 
 The output from the new site will contribute substantially to the
 growth of the company''s sales and profits.
 
 4.  Appropriations:
 
 Amount of Rs. 100 lacs is credited to General Reserve. Out of the
 amount available for appropriation, Your Director''s have recommended a
 dividend of 5% on Equity Shares (50 Paise per share of Rs. 10/- each).
 The dividend tax on the proposed dividend is Rs.13.73 lacs.
 
 5.  JointVenture:
 
 Your company has invested in a joint venture in Europe which will be
 engaged in product registration activities.
 
 6.  Subsidiary Companies:
 
 a) Your Company has formed a 100% subsidiary company namely M/s. Astec
 CropCare Pvt. Ltd.  with the main object to start the business of
 trading in Agrochemicals & Pesticides formulation to sell in local as
 well as in export market with its own brand name. Initially, this
 company proposes to launch its products in the state of Gujarat,
 Karnataka & Maharashtra, company has also appointed a dedicated team to
 take the new venture ahead.
 
 b) Bertram Chemicals Pvt. Ltd. is a 65.63% subsidiary of Astec. Behram
 has a manufacturing faci I ity at Mahad, which has been given on lease
 to Astec.
 
 7.  Rresearch And Development:
 
 Your company continues to focus on R&D. We believe that a productive
 R&D is a key ingredient for success. During the year a number of new
 products were developed and many cost reduction schemes were initiated.
 
 8.  Risk Management:
 
 Our company continuously monitors business and operational risk. All
 key functions and divisions are independently responsible to monitor
 risk associated within their respective areas of operations such as
 production, insurance, legal and other issues like health safety and
 environment.
 
 9.  Listing Fees:-
 
 The company has paid requisite annual listing fees to Bombay Stock
 Exchange and National Stock Exchange where its securities are listed.
 
 10.  Publ ic Deposits:
 
 The company has not accepted any deposits and as such there are no
 overdue deposits outstanding as on 31 st March'' 2011.
 
 11.  Particulars of Employees:
 
 The Particulars of Employees, as required under Section 217 (2A) of the
 Companies Act 1956 read with the Companies (Particulars of Employees)
 Rules 1975 are as stated here under.
 
 12.  Directors:
 
 Mr. Sitendu Sharma retires by rotation and, being eligible, offers
 himself for reappointment.
 
 Mr. Mohammed Zakir retires by rotation and, being eligible, offers
 himself for reappointment.
 
 Appropriate resolutions for the reappointment of the aforesaid Director
 are being moved at the ensuing Annual General Meeting, which the Board
 commands for yourapproval.
 
 None of the board members are interested in the resolution except Mr.
 Mohammed Zakir & Mr.  Sitendu Sharma.
 
 13.  Conservation Of Energy, Technology Absorption And Foreign Exchange
 Earnings And Outgo:
 
 In accordance with the requirements of section 217(1 )(e) of the
 Company''s Act, 1956 read with the Companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules 1980, the following
 information is provided:
 
 a) Conservation of Energy, etc: Steps have been taken to reduce the
 power consumption of agitators and pumps. A new coal fired boiler was
 commissioned which has resulted in considerable savings in fuel cost.
 
 b) Technology Absorption: A majority of the technologies utilized by
 your company are developed by in-house R&D department. Some processes
 have been provided by potential customers and those have been suitably
 absorbed.
 
 c) Foreign Exchange Earnings and outgo:
 
 1.  Activities relating to Export, initiativesto increase exports,
 Development of new export markets for products and services and Export
 promotion plans:
 
 The company is constantly trying to increase its exports, Strategic
 alliances are made with various parties to increase exports. The
 company is obtaining registration in various parts of the world. During
 the year, the company had exports (FOB value) of Rs. 2510 Lacs.
 
 2.  Total Foreign Exchange earned and used:
 
                                            Rs. in lacs 
                                      2010-11        2009-10
 
 1.  Earnings/Inflow
 
 i.   Exports at FOB                   2510.00        3460.73
 
 2.   Expenditure /Outflow
 
 i.  Traveling                          6.91           9.74
 
 ii. R&D Expenses                       Nil            1.55
 
 iii. Commission                       35.00          27.63
 
 iv. Import of Raw Material (CIF)     1555.78        2970.67
 
 14.  Director''s Responsibility Statement:
 
 Pursuant to the requirement u/s 217(2AA) of the companies Act, with
 respect to Director''s responsibility statement, it is hereby confirmed:
 
 i) That in the preparation of the accounts for the financial year ended
 31st March, 2011 the applicable accounting standards have been followed
 along with explanations relating to material departures.
 
 ii) That the Directors have selected such accounting policies and
 applied them entirely and made judgments and estimates that were
 reasonable and prudent so as to give true and fair view of the state of
 affairs ofthe company at the end of the financial year.
 
 iii) That the Directors have taken proper and sufficient 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) That the Directors have prepared the annual accounts for the
 financial year ended 31st March, 2011 on going concern basis.
 
 15.  Auditors:
 
 M/s P. M. Kathariya & Co., Chartered Accountants, Mumbai retire as the
 Auditors of the company at the ensuring Annual General Meeting and
 being eligible offer themselves for reappointment.
 
 Members are requested to appoint the Auditors to hold office from the
 conclusion of this Annual General Meeting ti 11 the cone I usion of
 next Annual General Meeti ng and to fix thei r remu neration..
 
 16.  Corporate Governance:
 
 A report on the corporate governance code alongwith a certificate from
 the auditors ofthe company regarding the compliance ofthe code of
 corporate governance and also the management discussion and analysis
 report as stipulated under clause 49 ofthe listing agreement are
 annexed to this report.
 
 17.  Appreciation:
 
 Your Directors wish to record their appreciation for the support and
 co-operation received from the customers, suppliers and the banks.
 
 Your Directors express their warm appreciation to all the Employees
 ofthe company for their diligenceand contributions.
 
                            For and on behalf of the Board of Directors
 
 Place: Mumbai                                       Ashok V. Hiremath
 
 Date : 27th May,2011                                Managing Director