To the Shareholders
 
 The Directors have pleasure in presenting the Twenty First Annual
 Report together with the Audited Accounts for the year ended 30th June
 2012.
 
 Financial Performance
 
 Particulars                                2011-2012     2010-2011
 
 Sates (net of excise duty) 
 and other Income                            11001.01       8557.52
 
 Profit before Finance Costs, 
 Tax, Depreciation                            1286.86       1163.04
 & Amortisation Expenses
 
 Less: Finance Costs                            87.69        100.22
 
 Depreciation & Amortisation Expense           115.50        227 72
 
 Profit Before Tax                            1083.67        835.10
 
 Less: Tax Expenses                            265.16        181.19
 
 Profit after Tax                              818.51        653.61
 
 Add: Surplus at the beginning of the year     834.60        509.77
 
 Profit available for Appropriation           1653.11       1163.38
 
 Less: Transfer to General Reserves             85.00         65.36
 
 Final Dividend proposed                       302.20        226.65
 
 Dividend Tax - Current Year                    49.02         36.77
 
 Balance carried to Balance Sheet             1216.89        834.60
 
 Return on Net worth - Earnings Per Share
 
 Basic / Diluted                                 5.42          4.33
 
 OPERATIONS & OUTLOOK
 
 We are glad to inform the Members that the Company has crossed the
 milestone of 100 CRORE Revenue Mark in the year under review. This has
 been achieved mainly on account of our deep inroads in Southern and
 Central  America, Company''s growing market presence, innovative
 marketing strategies and introduction of new product. It is hoped that
 with the continued efforts in exploring new markets/products in the
 established markets, the growth will be sustained during the coming
 years.
 
 In addition, the Company has added substantial machinery/equipment at
 the unit of the Company at Pondicherry.  Considering the status of the
 plant and the productivity, subsequent to the close of the year our
 facility at Gummidipoondi is being revamped and during the interregnum
 period due to investment in balancing machinery at Pondicherry there
 shall not be any effect on the overall production target during the
 current year.
 
 completion and expected to commence trial run during the Third/fourth
 quarter of the current year. Senior technical personnel have already
 been recruited and plans are under way for preparation for approval of
 the plant and registration of product lines with the regulatory
 authorities.
 
 DIVIDEND
 
 The Board of Directors is pleased to recommend a dividend of Rs.2/- per
 Equity Share of Rs.10 each [20%] for the year ended June 30, 2012
 subject to approval of the shareholders in the ensuing Annual General
 Meeting.  The dividend if approved, at the Annual General Meeting will
 be tax free in the hands of the shareholders. The payment of dividend
 would entail a cash outflow of Rs. 351.22 Lacs including dividend
 distribution tax of Rs. 49.02 Lacs.
 
 TRANSFER TO RESERVES
 
 In terms of Companies (Transfer of Profits to Reserves) Rules, 1975, a
 sum of Rs.85.00 lacs was transferred to General Reserves during the
 financial year.
 
 DIRECTORS
 
 Re-Appointment
 
 In accordance with the requirements of the Companies Act, 1956 and
 Articles of Association of the Company, Mr.C.C.Paarthipan, Director of
 the Company will retire by rotation at the ensuing Annual Genera!
 Meeting and being eligible have offer himself for re-appointment. The
 Board recommends his re-appointment.
 
 Aprication
 
 As per the resolution passed by the Board of Directors on 30th April
 2012, Mr. D.P.  Mishra was re-designated and appointed as Whole Time
 Director of the Company effective from Is'' May 2012 for a period of two
 years subject to approval of the shareholders at the ensuing Annual
 General Meeting.
 
 Subsequent to the close of the year, Mr. N.R. Achan resigned as a
 Director with effect from 4n October 2012 and Mr. R. Vijay Venkatraman
 was appointed as a Director of the Company in his place with effect
 from 4'' October 2012.  The Board of Directors wish to place on record
 its deep appreciation for the valuable services rendered by
 Mr.N.R.Achan.
 
 As required under Clause 49 of the Listing Agreement relating to
 Corporate Governance, a brief resume, expertise and details of other
 directorships of Messrs.CC.Paarthipan and D.P.Mishra are provided in
 the Notice of the ensuing Annual General Meeting.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Your Directors, in accordance with the provisions of Section 217(2AA)
 of the Companies Act, 1956, confirm that:
 
 1) Applicable accounting standards have been followed in the
 preparation of the Annual Accounts;
 
 2) The Directors have adopted such accounting policies and have applied
 them consistently and have made judgments and estimates in a reasonable
 and prudent manner so as to give a true and fair view of the state of
 affairs of the Company as at the end of the financial year, and of the
 profit of the Company for the year ended 30.06.2012.
 
 3) Proper and sufficient care has been taken 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
 prevention and detection of fraud and other irregularities. To ensure
 this, the company has established internal control systems, consistent
 with its size and nature of operations, subject to the inherent
 limitations that should be recognized in weighing the assurance
 provided by any such system of internal controls. These systems are
 reviewed and updated on an ongoing basis. Periodic internal audits are
 conducted to provide reasonable assurance of compliance with these
 systems. The audit committee meets at regular intervals to review the
 internal audit function.
 
 4) The annual accounts have been prepared on a going concern basis.
 
 FIXED DEPOSITS
 
 The Company has not accepted any fixed deposits from the public.
 
 AUDITORS
 
 The Auditors, Messrs. M. Raghunath and Company, Chartered Accountants,
 Chennai, retire at the conclusion of the ensuing Annual General Meeting
 and being eligible offer themselves for re-appointment.
 
 The Board on recommendation of the Audit Committee, proposes that
 Messrs.M.Raghunath and Company, Chartered Accountants, Chennai, be
 appointed as Statutory Auditors of the Company to hold office till the
 conclusion of the next Annual General Meeting of the Company. Messrs.
 M. Raghunath and Company, Chartered Accountants, Chennai have forwarded
 their certificate to the company stating that their appointment, if
 made, will be within the limit specified in that behalf in sub-section
 (IB) of Section 224 of the Companies Act, 1956.
 
 COST AUDITORS
 
 Mr. G.Thangaraj, Cost Accountant, has been appointed as the Cost
 Auditor for audit of the cost accounting records of the Company for the
 financial year ended 30.06.2012. The Cost Audit Reports relating to the
 financial year 2011-2012 will be filed within the stipulated time
 period.
 
 CORPORATE GOVERNANCE
 
 Your Company is committed to maintain high standards of Corporate
 Governance. A separate section on Corporate Governance is included in
 the Annual Report and the Certificate from M/s. R Sridharan &
 Associates, Company Secretaries confirming the compliance of conditions
 on Corporate Governance as stipulated under Clause 49 of the Listing
 Agreement of the Stock Exchange is annexed thereto.
 
 INDUSTRIAL RELATIONS
 
 Generally the Industrial relations with the employees of the Company
 continued to be stable, cordial and satisfactory during the financial
 year.
 
 PARTICULARS UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956
 
 The information required in terms o f Section 217(2A) of the Companies
 Act, 1956 read >vitr-the Compares (Particulars of Employees) Rules,
 1975 is not applicable to this Company, since none of the employees
 werreceipt of remuneration higher than the limits fixed in the said
 section.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The information required under section 217(l)(e) of the Companies Act,
 1956 read with Companies.  (Disclosure of Particulars in the
 Report of Board of Directors) Rules, 1988 is given in the /anrexure
 forrrr.g na-t of this report.
 
 ACKNOWLEDGEMENT
 
 The Directors wish to thank the Company''s Customers, Manufacturers,
 Dealers, Banks, Shareholders and Government for their continued support
 to your Company''s performance and growth. The Directors also wish to
 place on record their appreciation of the contribution made by all the
 employees of the Commny resulting in gcod performance during the year
 under review.
 
                              On behalf of the Board of Directors
 
 Place: Chennai C                      C Paarthipan
 
 Date; November 9, 2012                    Chairman