Dear Members,
 
 The Directors'' submit their report for the financial year ended 31st
 March, 2011:
 
                                                        (Rs. in Lakhs)
 
 Particulars                                       2010-11     2009-10
 
 Gross Income                                       35,550      28,201
 
 Gross Profit (before Interest, 
 Depreciation & Tax)                                 6,775       6,306
 
 Less:
 
 Interest                                            1,242       1,394
 
 Depreciation and other write offs                   1,505       1,419
 
 Provision for Taxation                              1,276         792
 
 Net Profit                                          2,752       2,700
 
 Profit Brought Forward                                552       1,085
 
 Balance available for appropriation                 3,304       3,785
 
 Short provision for Income Tax                         53           0
 
 Provision for dividend                                266         200
 
 Provision for dividend tax                             43          33
 
 Transfer to General Reserve                         2,000       3,000
 
 Net Profit c/f to Balance sheet                       942         552
 
 Company Performance
 
 Your Company has performed well inspite of the adverse global economic
 conditions. During the year under review, the production and sales of
 instant coffee were 11,607 M.Ts and 11,277 M.Ts. as against 8,510 M.Ts.
 and 8,767 M.Ts. respectively in the previous year. Turnover of the
 Company has grown to Rs. 35,550 Lakhs from Rs. 28,201 Lakhs and the net
 profit of the Company is increased to Rs. 2,752 Lakhs as against Rs.
 2,700 Lakhs.
 
 Dividend
 
 Your Directors are pleased to recommend a dividend of Rs. 2 per equity
 share of Rs. 10/- face value for the year 2010-11 subject to the
 approval of shareholders.
 
 Wholly Owned Subsidiary
 
 Your Company''s wholly owned subsidiary, M/s Jayanti Pte. Ltd.
 implemented an agglomeration plant through M/s Grandsaugreen S.A., in
 Switzerland is in the process of implementing through its step down
 subsidiary M/s Ngon Coffeee Limited, an instant coffee project in
 Vietnam.
 
 Service to the Community
 
 To propagate its philosophy of responding to social welfare causes and
 philanthropic activities in the areas of education, sports, cultural,
 natural calamities, and other donations, your company has donated Rs.
 8.93 Lakhs for the above said causes during the year under review.
 
 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
 
 Your Board of Directors have appointed M/s. Ramesh & Co., Chartered
 Accountants, Hyderabad as Internal Auditors of the Company. The
 Internal Auditors are submitting their reports on quarterly basis.
 
 Directors:
 
 During the year Mr. Ian Breminer and Mr. Viplav Sharma resigned from
 the Board of Directors. The Board of Directors placed on record their
 appreciation for the valuable services rendered by them during their
 tenure as Directors.
 
 In accordance with the provisions of the Company''s Articles of
 Association Mr. Zafar Saifullah and Mr. Jonathan T. Feuer, Directors of
 your company, retire by rotation at the ensuing Annual General Meeting
 and being eligible, offer themselves for re-appointment.
 
 Fixed Deposits
 
 Your company has not accepted any fixed deposits and as such no amount
 of principal or interest was outstanding as on the date of Balance
 sheet.
 
 Directors'' Responsibility Statement
 
 In terms of Section 217 (2AA) of the Companies Act, 1956, your
 Directors confirm:
 
 i. That in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 ii. That the Directors had 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 2010-11 and
 of the profit or loss of the company for that period;
 
 iii. That the Directors had 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 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 as an Annexure -1
 to this report.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earnings and Outgo
 
 A statement of particulars of the conservation of energy, technology
 absorption and foreign exchange earnings and outgo is given as required
 under the Companies (Disclosure of Particulars in the Report of Board
 of Directors) Rules, 1988 and is enclosed as Annexure - II to this
 report.
 
 Your Company recycles the solid waste generated during the production
 of instant coffee to be used as biomass fuel for energy input to the
 boilers, thus conserving the 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
 
 Your Company has been making every endeavor to bring more transparency
 in the conduct of business.  As per the requirements of Listing
 Agreement with the Stock Exchanges a compliance report on Corporate
 Governance for the year 2010-11 and Auditors'' Certificate are furnished
 as a part of this Annual Report.
 
 Human Resources
 
 Your Company considers its Human Resources as instrumental in achieving
 its objects which cannot be done without their endeavors at every
 level. Keeping this in view, the Company gives utmost care to attract
 and retain quality manpower. The enabling and empowering work-
 environment propels them to higher performance. Their unflinching
 commitment is the driving force behind the Company''s vision and
 success. Your Company appreciates the spirit of its dedicated team of
 employees.
 
 Acknowledgments:
 
 Your Directors take this opportunity to express their sincere
 appreciation for the excellent support and co-operation extended by the
 shareholders, customers, bankers, suppliers and other business
 associates.
 
 Your Directors gratefully acknowledge the continuous 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/- 
                                            Challa Rajendra Prasad
                                        Chairman and Managing Director
 
 Place : Hyderabad 
 Date  : 27th May, 2011