The financial year 2010-11 marked another year of strong and consistent
 performance for our company.  Over the last five years, under
 challenging economic conditions, our company has been consistently
 performing well with CAGR of 14% for Gross Sales and 21% for PAT.
 
 During the year, our company has achieved Gross Sales of Rs 385.05
 Crore, which is an increase of 38.94% over the previous year (Rs 277.14
 Crore).  Profit After Tax (PAT) this year has been Rs 26.61 Crore,
 representing a 28.92% increase over the previous year (Rs 20.64 Crore).
 Exports during the year were Rs 75.43 Crore, compared to Rs 67.17 Crore
 in the previous year.
 
 During the year, one of the companys products – N-Methyl Pyrrolidone
 (NMP) – received ‘REACH certification, which enables the company to
 export the product to Europe. Further, a new plant for manufacture of
 GBL / NMP / 2P with an installed capacity of 50 MT/day was commissioned
 during February 2 011. This capacity expansion is expected to add both
 to the topline and exports in the coming financial years.
 
 During the year, 1.5 MW Windmill project at Satara, Maharashtra,
 started generating power from the month of September 2010.
 
 During the year, the Povidone manufacturing facility has achieved WHO
 GMP certification, which enables the company to export Povidone to
 regulated markets. The said plant has also been successfully audited by
 multiple multinational auditing agencies as well as customers.
 
 Our company is Indias only manufacturer of specialty chemicals like
 NMP, GBL, Morpholine, Povidone, NEP etc., The plants for these products
 
 have been developed indigenously by companys in-house R & D. The
 quality of these products is on par with international standards and is
 commanding 100% import substitute in India. Some of the other products
 of the company are commanding 100% market share in India and are being
 exported to major customers worldwide.
 
 Our company has become one of the leaders in Specialty Chemicals in the
 international Specialty Chemical industry and plans to be among top 10
 companies in the years to come.
 
 Some of the expansion / diversification activities taken up during the
 current year are:
 
 A new plant for manufacture of Methylamines is under implementation
 with an installed capacity of 30000 MT per annum at MIDC, Chincholi,
 which will be commissioned in this financial year
 
 Construction is in full swing for development of a 100-room hotel
 property at Solapur, to be operational by mid-2012. A formal agreement
 with the Sarovar Group of Hotels has been entered into for operating /
 managing the hotel property in the name of ‘Balaji Sarovar Portico.
 
 With all the above additions, I am confident that our company will
 continue its growth path in the coming years. I take this opportunity
 to thank all our shareholders, customers, Government of India,
 Government of Maharashtra, suppliers, partners and employees for their
 continued support and look forward to receiving the same in the future.
 
 With best wishes,
 
 A. Prathap Reddy
 Managing Director