The Directors submit their report for the financial year ended 31st
 March, 2012:
 
                                                       (Rs.in Lakhs)
 
 Particulars                             2011-12           2010-11
 
 Revenue from operations                  48936             35281
 
 Profit for the year after 
 meeting all expenses
 (before Interest, Depreciation 
 & Tax)                                    8175              6775
 
 Less:
 
 Interest                                  1156              1242
 
 Depreciation and other write offs         1585              1505
 
 Provision for Taxation                    1781              1276
 
 Net Profit                                3653              2752
 
 Balance brought forward                    942               552
 
 Balance available for appropriation       4595              3304
 
 Short provision for Income Tax earlier       -                53
 
 Provision for dividend                     665               266
 
 Provision for dividend tax                 108                43
 
 Transfer to General Reserve               1000              2000
 
 Balance carried forward to 
 Balance sheet                             2822               942
 
 Company Performance
 
 Your Company posted good financial results during the year under
 review. The production and sales of Instant Coffee were 12,392 M.Ts.
 and 12,589 M.Ts. as against 11,607 M.Ts. and 11,277 M.Ts. respectively
 in the preceding year. Turnover of the Company has increased from Rs.
 35,550 Lakhs to Rs. 49,291 Lakhs, registering growth of 39%. The net
 profit of the Company for the current year is Rs. 3,653 Lakhs as against
 Rs. 2,752 Lakhs in the preceding year, registering growth of 33%.
 
 Dividend
 
 Your Directors are pleased to recommend a dividend of Rs. 5/- per equity
 share of Rs. 10/- for the year 2011-12 subject to the approval of
 shareholders.
 
 Wholly Owned Subsidiary
 
 Your Company''s 100% stepdown subsidiary M/s. Grandsaugreen,
 Switzerland, catering to the requirements of the clients in the Europe,
 has performed well during the year.
 
 Your Company has since completed implementation of the instant coffee
 project through its 100% stepdown subsidiary, M/s. Ngon Coffee Company
 Limited, Vietnam. Presently, the Company is carrying out trial runs and
 the commercial production is expected to commence during the third
 quater of the current financial year.
 
 Service to the Community
 
 In furtherance of its commitment to the society, during the year under
 review, your Company has donated Rs.18.51 Lakhs to many welfare and
 philanthropic activities in the areas of education, sports, culture,
 etc.
 
 Statutory Auditors
 
 The present Statutory Auditors of the Company, M/s. M. Anandam & Co.,
 Chartered Accountants, Secunderabad, retire at the forthcoming Annual
 General Meeting, and being eligible, offer themselves for
 re-appointment.
 
 Internal Auditors
 
 The Board of Directors has appointed M/s. Ramesh & Co., Chartered
 Accountants, Hyderabad, as the Internal Auditors of your company. The
 Internal Auditors are submitting their reports on quarterly basis.
 
 Directors
 
 As per the Company''s Articles of Association, Mr. I. J. Rao and Mr.
 Vipin K. Singal, Directors of your company, retire by rotation and,
 being eligible, offer themselves for re-appointment.
 
 Fixed Deposits
 
 Your Company has not accepted any fixed deposits and as such no
 principal or interest was outstanding as on the date of the Balance
 Sheet.
 
 Directors'' Responsibility Statement
 
 In terms of Section 217 (2AA) of the Companies Act, 1956, your
 Directors confirm the following with regard to the Annual Accounts,
 Accounting Policies, Maintenance of accounting records, etc. -
 
 i.  That in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures, if any;
 
 ii.  That the Directors have selected such accounting policies and
 applied them consistently and made judgments 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 2011-12 and
 of the profit or loss of the company for that period;
 
 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; and
 
 iv.  The annual accounts have been prepared on a going concern basis.
 
 Management Discussion & Analysis
 
 Pursuant to the provisions of Clause 49 of the Listing Agreement, a
 report on Management Discussion & Analysis is set out in Annexure - I
 attached to this report.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earnings and Outgo
 
 A statement of the particulars of the conservation of energy,
 technology absorption and foreign exchange earnings and outgoings as
 required under the Companies (Disclosure of particulars in the Report
 of Board of Directors) Rules, 1988 is furnished in Annexure - II
 attached to this report.
 
 Your Company recycles solid waste generated during the production of
 coffee as biomass fuel for energy input to the boilers, thus conserving
 scarce fossil fuel, and in turn reducing pollution to the environment.
 
 Particulars of Employees
 
 Information as per Section 217(2A) of the Companies Act, 1956 read with
 the Companies (Particulars of Employees) Rules, 1975, forms part of
 this Report and is given as Annexure - III.
 
 Corporate Governance
 
 The Company has been making every endeavor to bring more transparency
 in the conduct of its business.  As per the requirements of the Listing
 Agreement with the Stock Exchanges, a compliance report on Corporate
 Governance for the year 2011-12 and a Certificate from the Auditors of
 the Company are furnished, which form part of this Annual Report.
 
 Human Resources
 
 Your Company considers its Human Resources as the key to achieve its
 objectives. Keeping this in view, your Company takes utmost care to
 attract and retain quality employees. The employees are sufficiently
 empowered and such workenvironment propels them to achieve higher
 levels of performance.  The unflinching commitment of the employees is
 the driving force behind the Company''s vision. Your Company appreciates
 the spirit of its dedicated employees.
 
 Acknowledgments
 
 Your Directors take this opportunity to express their sincere
 appreciation to the shareholders, customers, bankers, suppliers and
 other business associates for the excellent support and co-operation
 extended by them.
 
 Your Directors gratefully acknowledge the ongoing co-operation and
 support provided by the Central and State Governments, Stock Exchanges,
 SEBI, RBI and other Regulatory Bodies.
 
                                        On behalf of the Board
 
                                               Sd/-
 
 Place : Hyderabad                     Challa Rajendra Prasad
 
 Date : 11th August, 2012           Chairman and Managing Director