The Shareholders,
 
 The Directors take pleasure in presenting the Forty Eighth Annual
 Report and the Audited Accounts of the Company for the year ended 31st
 March, 2011.
 
 FINANCIAL RESULTS:
 
                                     Current       Previous 
                                  Year ended     Year ended 
                                  31/03/2011     31/03/2010
 
 
 Profit before Depreciation
 and Interest                          52093           5129 
 LESS :
 
 Depreciation                          36287          30808
 
 Interest                               6299           7679
 
 Profit before Tax                      9507          12772
 
 LESS:
 
 Provision for Income Tax
 
 -Current                               1950           3080
 
 -Deferred (Assets) / Liabilities         40           (21)
 
 Profit after current and 
 deferred tax                           7517           9663
 
 ADD:
 
 Provision for Taxation no 
 longer required                           0           2000
 
 Prior Period expenses                     0          (880)
 
 Surplus brought from previous 
 year                                  31424          20570
 
 Profit of Amalgamating company            0             71
 
 Total available for appropriation     38941          31424
 
 APPROPRIATIONS
 
 Transfer to General Reserve             850              -
 
 Proposed Dividend                      1910              -
 
 Tax on the Proposed Dividend            317              -
 
 Balance Carried overto Balance        35864          31424
 Sheet
 
 
 DIVIDEND
 
 Your Director* are pleased to recommended a
 Dividend of Rs. 5/- per Equity share (I.e.. 50%
 dividend on the Equity Share Capital of the
 Company) for the Financial year ended 31st March,
 2011
 
 
 PRODUCTION AND SALES FOR THE YEAR
 2010-11
 
                              MT 
 
 Clinker produced   -    3474373
 
 Cement produced    -    4562416
 
 Cement and Clinker -    4573979
 Sales
 
 OPERATIONS
 
 This Is covered under the topic Management Ditcussion and Analysis.
 
 
 PUBLIC DEPOSITS
 
 The company has no unmatured/unpaid Fixed Deposits at the end of
 financial year 2010-11.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 As required under Section 217 (i) (e) of the Companies Act, 1956, the
 details regarding Energy Conservation, Technology Absorption, Foreign
 Exchange earnings and outgo are given in the Annexure hereto.
 
 STATUTORY INFORMATION REGARDING EMPLOYEES
 
 The particulars regarding employees falling within the purview of
 Section 217 (2A) of the Companies Act, 1956 and the Rules made there
 under, are mentioned in annexure hereto.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors
 confirm that:
 
 (i) in the preparation of the Annual Accounts, the applicable
 accounting standards had been followed.
 
 (ii) The Directors had selected such accounting policies and applied
 them consistently and made judgements 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 and of the prof it or
 loss of the Company for that period.
 
 (iii) The Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 (iv) The Directors had prepared the Annual Accounts on a going concern
 basis.
 
 CORPORATE GOVERNANCE
 
 As per the provisions of the Listing Agreement with Madras Stock
 Exchange Ltd. and the National Stock Exchange of India Ltd., where the
 Company''s Equity Shares are listed, a Report on Corporate Governance is
 given in an Annexure hereto.
 
 DIRECTORS
 
 Sri Ramanathan Palaniappan and Sri SP.ST.  Palaniappan, Directors
 retireunderClausei02ofthe Articles of Association of the Company and
 being eligible, offer themselves for re-appointment.
 
 AUDITORS
 
 The Auditors, M/s P.B.Vijayaraghavan & Co., M/s Soundararajan & Co.,
 and M/s Krishaan &r Co., Chartered Accountants retire at the ensuing
 Annual General Meeting and they are eligible for re- appointment.
 
 Due to the increase in volume of work for the Auditors, the Board
 recommended an enhancement in the remuneration of the Auditors from
 •Rs. 2,00,000/- to Rs. 7 2,25,000/- each, besides their out of pocket
 expenses.
 
 The Cost Audit of the company is conducted by M/s Geeyes & Co.,
 Chennal.
 
 The Cost Audit Report for the financial year 2009- 10 was due to be
 filed by 27th September, 2010 and the same has been filed on 22nd
 September, 2010. The Cost Audit Report for the financial year 2010-11
 is due to be filed within 180 days from the closure of the financial
 year and will be filed within the stipulated period.
 
 CAUTIONARY STATEMENT
 
 Statements made in this Report, including those stated under the
 caption Management Discussion and Analysis describing the company''s
 objectives, expectations or projections may constitute forward looking
 statements within the meaning of applicable securities laws and
 regulations.
 
 Important factors that could influence the Company''s operations include
 global and domestic supply and demand conditions affecting the selling
 prices of finished goods, availability of inputs and their prices,
 changes in the government regulations, tax laws, economic developments
 within the country and outside and other factors such as litigations
 and Industrial relations.
 
 The Company assumes no responsibility in respect of the forward looking
 statements which may undergo changes in the future on the basis of
 subsequent developments, information or events.
 
 ACKNOWLEDGEMENT
 
 The Board of Directors wish to thank all the Shareholders, Government
 Authorities and Financial Institutions and Bankers, Suppliers,
 Customers and all the categories of Employees for the continued
 assistance, support and direction to the company during the year under
 review.
 
 ADDENDUM
 
 Auditors''Report:
 
 Regarding the liability, if any, under the provisions of jute Packaging
 Materials (Compulsory use in the Packing Commodities)Aet,1987,the Note
 No,9 of the Notes forming part of the Accounts is self-explanatory and
 the Directors opine that as the amount of liability is not
 ascertainable, necessary provision can be made in the year in wich the
 actual liability would arise.
 
                                       For and on behalf of the Board 
                                                     M.A.M. RAMASWAMY 
                                                             Chairman
 
 Place: Chennai
 Date : 27th May, 2011