The Directors are pleased to present the 49th Annual Report and
 Audited Statement of Accounts for the year ended 31 st March 2011.
 
 FINANCIAL RESULTS:
 
                                                   (Rs. in Crores)
 
                                  Current Year ended   PreviousYear ended
                                      31.03.2011          31.03.2010
 
 Gross Turnover and Other Income        2032.11            1424.36
 
 Less: Excise Duty Recovered on Sales     18.82              10.96
 
 Net Turnover and Other Income          2013.29            1413.40
 
 Gross Profit                            349.44             377.55
 
 Less: Depreciation and Amortisation      74.44              66.22
 
 Profit before Tax                       275.00             311.33
 
 Less: Provision for Taxation
 
 Current Tax                              87.20             102.38
 
 Deferred Tax (Net)                        2.18               2.42
 
                                          89.38             104.80
 
 Profit after Tax                        185.62             206.53
 
 (Less)/Add Adjustments relating to 
 earlier years
 Short Provision for (Expenses) (Net)     (0.06)            (0.16)
 
 Excess Provision of Taxation              0.10              2.36
 
 Profit after adjestment relating to 
 Earlier Years                           185.66            208.73
 
 Balance brought forward from last year  237.93             65.85
 
 PROFIT AVAILABLE FOR APPROPRIATIONS:    423.59            274.58
 
 APPROPRIATIONS:
 
 Transfer to General Reserve              18.56             20.87
 
 Interim Dividend                         NIL               13.53
 
 Proposed Final Dividend                  13.53             NIL
 
 Tax on Dividend                           2.19              2.25
 
                                          34.28             36.65
 
 Balance Carried Forward to Balance Sheet389.31            237.93
 
 OPERATIONS:
 
 Your Company mainly operates in one segment i.e. “tyres” with a focus
 on manufacture of wide range of “Off-Highway Specialty Tyres”. These
 specialty tyres are meant for Agricultural, Industrial, Material
 Handling, Construction, Earthmoving (OTR), Forestry, Lawn & Garden
 Equipments and All Terrain Vehicles (ATV). Around 90% of our revenue is
 generated through exports.
 
 After a year of severe slowdown in F.Y.09 - 10, the company witnessed a
 good surge in F.Y 10 - 11 that resulted in top line growth of above
 42%. The Net Turnover and other Income of the company increased from
 Rs.1,413 Crores to Rs.2,013 Crores in the year under consideration.
 
 Due to unprecedented increase in raw material and other input costs,
 the operating margin (EBIDTA) of the company for the year under review
 declined to Rs.371 Crores from Rs.396 Crores in the previous year.
 Correspondingly, the profit after tax also declined to Rs.186 Crores
 during the year under consideration as compared to Rs.207 Crores in the
 previous year.
 
 Your Company continues to enjoy the status of “STAR TRADING HOUSE”.
 
 DIVIDEND:
 
 Your Directors are pleased to recommend a Dividend of Rs. 1.40 per
 share (70%) for the year, with a total payout of Rs. 15.72 Crores,
 including Tax on Dividend.
 
 CAPITAL EXPENDITURE
 
 During the year, the company has incurred capital expenditure of Rs.131
 Crs. on account of following major activities:
 
 a) Setting up of raw material warehouse at Chopanki and finished goods
 warehouse at Bhiwandi;
 
 b) Setting up of new mould plant at Dombivli;
 
 c) Increase in small production capacity at all the three plants
 through de-bottlenecking.
 
 d) Regular maintenance capex at all the three plants.
 
 The company also incurred capital expenditure of Rs.94 Crs approx.  in
 connection with its upcoming green field tyre project at Bhuj in the
 State of Gujarat which is progressing as per schedule.
 
 
 SUBSIDIARY COMPANIES:
 
 The company has following 100% subsidiary companies:
 
 Balkrishna Paper Mills Limited, Balkrishna Synthetics Limited, BKT
 Tyres Limited , BKT Exim Limited and Indirect subsidiary Companies i.e
 subsidiary companies of BKT Exim Limited; i.e. BKT (EUROPE) Ltd., BKT
 EUROPE S.R.L. and BKT (USA) INC.
 
 As required under the Listing Agreement with the Stock Exchanges, a
 Consolidated Financial Statement of the Company and all its
 subsidiaries is attached. The Consolidated Financial Statement has been
 prepared in accordance with Accounting Standard AS-21 issued by the
 Institute of Chartered Accountants of India, and form part of the
 Annual Report and Accounts.
 
 In accordance with the general circular issued by the Ministry of
 Corporate Affairs, Government of India, the Balance Sheet, Profit and
 Loss Account and other documents of the subsidiary companies are not
 being attached with the Balance Sheet of the Company. The Company will
 make available the Annual Accounts of the subsidiary Companies and the
 related information to any member of the Company who may be interested
 in obtaining the same. These documents will also be available for
 inspection by any members at the Corporate Office of the Company and
 that of respective subsidiary companies.
 
 The financial data of the Subsidiaries Companies have been furnished
 under Details of Subsidiaries forming part of the Annual Report.
 
 DIRECTORS:
 
 Mr. Laxmidas Merchant, Mr. Anurag Poodar, Mr. Rajiv Poddar and Mr.
 Subhash Chand Mantri retire by rotation and being eligible, offer
 themselves for re-appointment
 
 Necessary resolutions for their re-appointment are placed before the
 Shareholders. Your Directors commend the resolutions.
 
 CORPORATE GOVERNANCE:
 
 Pursuant to Clause 49 of the Listing Agreement with the Stock
 Exchanges, Management Discussion and Analysis, Corporate Governance
 Report and Auditors Certificate regarding Compliance of the same are
 made a part of this Annual Report.
 
 FIXED DEPOSITS:
 
 There are no deposits as on 31 st March 2011.
 
 INDUSTRIAL RELATIONS:
 
 The industrial relations with staff and workers during the year under
 review continue to be cordial.
 
 PARTICULARS OF EMPLOYEES:
 
 In terms of the provision of Section 217 (2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules, 1975 as
 amended, the names and other particulars of the employees are set out
 in the annexure to the Directors Report.
 
 However, having regard to the provisions of Section 219(1)(b)(iv) of
 the said Act, the Annual Report excluding the aforesaid information is
 being sent to all the members of the Company. Any members interested in
 obtaining such particulars may write to the Company Secretary at the
 Corporate Office of the Company.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING AND OUTGO:
 
 Information pursuant to Section 217 (1) (e) of the Companies Act, 1956,
 read with the Companies (Disclosure of particulars in the Report of
 Board of Directors) Rules, 1988, is given in the Annexure-I to the
 report.
 
 Group
 
 As required under Regulation 3(1)(e)(i) of the Securities and Exchange
 Board of India (Substantial Acquisition of Shares and Takeovers)
 Regulations, 1997, persons constituting “Group” (within the meaning as
 defined in the Monopolies and Restrictive Trade Practices Act, 1969)
 for the purposes of availing exemption from the applicability of the
 provisions of Regulations 10 to 12 of the aforesaid SEBI Regulations
 are given in Annexure II attached herewith and the said Annexure II
 forms part of this Annual Report.
 
 RESPONSIBILITY STATEMENT:
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956, with respect to Directors Responsibility Statement, it is
 hereby confirmed that:
 
 (i) In the preparation of the accounts for the financial year ended 31
 st March, 2011, 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 judgments and estimates that were 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 and of the Profit of
 the Company for the year under review;
 
 (iii) The Directors have taken proper and sufficient care for
 maintenance of adequate accounting records in accordance with
 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 accounts for the financial year
 ended 31st March, 2011 on a “going concern” basis.
 
 AUDITORS:
 
 The members are requested to appoint Auditors and fix their
 remuneration. Messers Jayantilal Thakkar & Co., Chartered Accountants,
 the retiring Auditors and who have furnished certificates of their
 eligibility for re-appointment as required under Companies Act, 1956.
 
 APPRECIATION:
 
 Your Company is grateful to its valued customers for their continuous
 co-operation and patronizing its products. A word of appreciation is
 also extended to its Financial Institutions and Banks for their
 continuous co-operation and assistance in meeting the financial
 requirements of the Company. Your company would also like to thank its
 shareholders, employees, vendors and other service providers for their
 valuable services to the company.
 
 Last but not least, your Directors wish to place on record their warm
 appreciation to you for your continuous support and encouragement.
 
                         For and on behalf of the Board of Directors
 
 Mumbai,                                          DHARAPRASAD PODDAR
 
 Dated : 20th May, 2011                                     Chairman