The Members of choice international Limited
 
 The Directors have the pleasure in presenting the Eighteenth Annual
 Report on the business and operations of the Company together with the
 audited statement of accounts for the year ended March 31, 2011.
 
 In line with the requirement of the Listing Agreement with the Bombay
 Stock Exchange Limited, your company has been reporting consolidated
 results taking into account the results of its subsidiaries. The
 discussion therefore covers the financial results and other
 developments during April 1, 2010 to March 31, 2011 in respect of
 Choice Consolidated comprising- Choice International Limited and its
 subsidiaries. The consolidated entity has been referred to as ''Choice''
 or ''Group'' or ''Your Group'' in this discussion.
 
 Financial Highlights:
 
 1) The consolidated financial Performance of choice international
 Limited and its subsidiaries:
 
                                           (Rs. in Lakhs)
 
                                  2010-11        2009-10
 
 Total Income                     4733.19        3473.43
 
 Total Expenditure                4271.10        3102.32
 
 Profit Before Tax                 462.09         371.11
 
 Provision for Tax (Including
 Deferred Tax)                     162.02         131.45
 
 Profit After Tax before 
 Minority Interest                 300.07         239.66
 
 Less: Share of Minority 
 Interest                          (2.67)         (0.02)
 
 Profit after Tax after 
 Minority Interest                 302.74         239.68
 
 Add: Surplus brought forward 
 from previous year                148.49           0.84 
 
 Less: Short provision of tax 
 in earlier years/pre-
 acquisition profit & loss 
 of subsidiaries                      NIL         (0.02)
 
 Profit available for Appro
 -priations                        451.23         240.54 
 
 Appropriations:
 
 Transfer to Statutory Reserve      67.00          54.00
 
 Proposed Dividend                  75.04          32.52
 
 Dividend Distribution Tax 
 on Proposed Dividend               12.17           5.53
 
 Surplus carried forward           297.01         148.49
 
 
 Segment wise information is as under:
 
                            (Rs. in Lakhs) 
 
                                  2010-11 
 
 NBFC Operations                  3147.87
 
 Broking Services                   10.57
 
 Investment Banking 
 Services                         1556.08
 
 Unallocated                         7.90
 
                                  4722.42 
 
 Less: Inter Segment 
 Revenue                             0.11
 
 Net income from 
 Operations                       4722.31
 
 Add. Other Income                  10.88
 
 Total income                     4733.19
 
 
 2) A snapshot of the standalone financial performance of choice
 international Limited is as under:
 
                                           (Rs. in Lakhs)
 
                                  2010-11        2009-10
 
 Total Income                     4705.17        3469.84
 
 Total Expenditure                4213.94        3070.38
 
 Profit Before Tax                 491.23         399.46
 
 Provision for Tax (including 
 Deferred Tax)                     159.73         131.34
 
 Profit After Tax                  331.50         268.12
 
 Add: Surplus brought 
 forward from previous year        176.83           0.88
 
 Less: Short provision of tax 
 in earlier years                     NIL           0.12
 
 Profit available for 
 Appropriations                    508.33         268.89 
 
 Appropriations:
 
 Transfer to Statutory 
 Reserve                            67.00          54.00
 
 Proposed Dividend                  75.04          32.52
 
 Dividend Distribution Tax 
 on Proposed Dividend               12.17           5.53
 
 Surplus carried forward           354.11         176.84
 
 
 Results of Operations:
 
 On Consolidated basis, the Company''s income increased by 36.27% to Rs
 4733.19 Lakhs and the EBITDA increased by 58.37% to Rs 645.15 lakhs.
 The growth is primarily driven by our core investment activities and
 the investment banking business. The broking business had commenced in
 the mid of the fiscal 2010-11, hence the income from broking business
 is minuscule.  The profit after tax has increased by 26.31% to Rs.
 302.74. Further the marketing and distribution expense increased from
 Rs. 64.59 lakhs to Rs.125.77 lakhs with a strategy to increase the
 awareness about the services provided by the company.  The consolidated
 financial statements prepared in accordance with the ''Accounting
 Standard 21 - Consolidated Financial Statements'' prescribed by the
 Companies (Accounting Standards) Rules,2006, forms part of this Annual
 Report and are refected in the consolidated accounts of the company.
 
 Dividend:
 
 Your Directors are pleased to recommend a dividend of 10% i.e. Rs.
 1/-per Equity Share for the financial year ended March 31, 2011,
 amounting to Rs. 75.04 lakhs. The dividend, as recommended by the
 Board, if sanctioned at the meeting, will be paid after September 30,
 2011 to those members or their mandates whose names are registered on
 the Company''s Register of Members:
 
 a.  As beneficial owner as the end of business on September 26, 2011,
 as per the lists to be furnished by National Securities Depository
 Limited (NSDL) and Central Depository Services Limited (CDSL) in
 respect of the shares held in electronic form, and
 
 b.  As members in the Register of Members of the Company after giving
 effect to valid share transfers in physical form lodged with the
 Company on or before September 26, 2011.
 
 The dividend payout for the year under review has been formulated in
 accordance with the Company''s policy to pay sustainable dividend linked
 to long term growth objectives of the Company to be met by internal
 cash accruals and the shareholders'' aspirations.
 
 Reserves:
 
 The company in the year 2010-11 has appropriated a sum of Rs. 67.00
 Lakhs towards Reserve Fund under Sec 45-IC of Reserve Bank of India
 Act, 1934
 
 Deferred Tax:
 
 In terms of Accounting Standard on ''Accounting for Taxes on Income
 ''(AS-22), a sum of Rs 90.35 lakhs has been debited to the Profit & Loss
 Account being Deferred Tax Liability for the year under review.
 
 Increase in Share capital:
 
 During the year, we issued 10,00,000 warrants convertible into equity
 shares of Rs. 10/- each at a price of Rs. 158/- to promoters and others
 under the SEBI (ICDR) Regulations, 2009 on preferential basis. On March
 25, 2011, the promoters and others had been allotted equity shares on
 conversion of warrants. Due to this, the outstanding issued, subscribed
 and paid up equity share capital increased from Rs. 65048000 to Rs.
 75048000 as at March 31, 2011.
 
 Increase in Presence:
 
 We are pleased to inform that during the period under consideration,
 the company has launched its operations in Ahmedabad with opening its
 branch office. The branch network is expected to serve as an integrated
 channel for retail asset origination and distribution of third party
 products.
 
 New Memberships:
 
 Choice Equity Broking Private Limited, a wholly owned subsidiary of the
 Company, received the membership as Depository Participant with CDSL
 from SEBI during the year under review. Further the company also became
 members of Credit Information Bureau of India.
 
 Subsidiaries:
 
 The company has seven subsidiaries during the year under review. 
 They are
 
 - Choice Capital Advisors Private Limited
 
 - Choice Equity Broking Private Limited
 
 - Choice Merchandise Broking Private Limited
 
 - Choice Wealth Management Private Limited
 
 - Choice Business Services Private Limited
 
 - Choice Insurance Brokers Private Limited
 
 - Choice Realty Private Limited
 
 During the year under review, the company has made further investments
 of Rs. 504 lakhs and Rs. 40 lakhs in Choice Capital Advisors Private
 Limited and Choice Equity Broking Private Limited. The company disposed
 off its equity stake of 52.38% in Choice Realty Private Limited to
 Choice Infra Ventures Limited (i.e.  Formerly known as Zenu Infotec
 Limited) in July 2011.  Consequently, Choice Realty Private Limited
 ceases to be a subsidiary of the company.
 
 As per Section 212 of the Companies Act, 1956, we are required to
 attach the Directors'' Report, Balance Sheet, and Profit & Loss Account
 of our subsidiaries.  The Ministry of Corporate Affairs, Government of
 India vide its circular no. 2/2011 dated February 8,2011 has provided
 an exemption to companies from complying with Section 212, provided
 such companies publish the audited consolidated financial statements in
 the Annual Report. Accordingly, the Annual Report 2010- 11 does not
 contain the financial statements of our subsidiaries.
 
 Further, as required under the circular, the Board of Directors has, at
 its meeting held on August 12, 2011, passed a resolution giving consent
 for not attaching the balance sheet of the subsidiary companies. The
 audited annual accounts and related information of our subsidiaries,
 where applicable upon request. These documents will also be available
 for inspection during business hours at our registered office in
 Mumbai, India.  The same will also be published on our website, www.
 choiceindia.com
 
 Management Discussion and Analysis Management''s Discussion and Analysis
 Report for the year under review, as stipulated under Clause 49 of the
 Listing Agreement with the Stock Exchange in India, is presented in a
 separate section forming part of the Annual report.
 
 Directors:
 
 Following are the changes in the Directorate of the company:- 
 
 - Mr.  Ajay Kejriwal and Mrs. Hemlata Poddar were appointed as a
 Non-Executive Director of the Company at the 17th Annual General
 Meeting held on July 30, 2010.
 
 - Mr. Brij Mohan Agarwal and Mr. Manak Chand Daga were appointed as an
 Independent Director of the Company at the 17th Annual General Meeting
 held on July 30,2011.
 
 - Mr. Debkumar Goswami and Dr. Kali Mohan Bhattacharya was appointed as
 an Additional Director of the company at the Board Meeting held on May
 30, 2011 and holds office till the ensuing Annual General Meeting and
 being eligible, offers themselves for appointment at the ensuing Annual
 General Meeting.
 
 Resolutions seeking your approval for the appointment of Mr. Debkumar
 Goswami and Dr. Kali Mohan Bhattacharya have been incorporated in the
 Notice of the forthcoming Annual General Meeting along with brief about
 them.
 
 Listing of equity Shares:
 
 Your Company, at present, is listed at the following
 
 stock exchange:
 
 - The Bombay Stock Exchange Limited P. J. Towers, Dalal Street
 Fort, Mumbai - 400 001.
 
 Fixed Deposits:
 
 Your Company has not accepted any fixed deposits from public and is
 therefore not required to furnish information in respect of outstanding
 deposits under Non Banking Non Financial Companies (Reserve Bank)
 Directions, 1966 and the Companies (Acceptance of Deposits) Rules,
 1975.
 
 Auditors'' Report:
 
 The Auditors Report to the shareholders does not contain any
 qualifications. A company, whose securities are listed on the Stock
 Exchanges, is compulsorily required to follow the accounting standards
 prescribed by the Institute of Chartered Accountants of India. In
 accordance with the Accounting Standards AS 21 on consolidated
 financial statement read with Accounting Standard 23 on Accounting for
 Investments in Associates, the Directors have provided the Audited
 consolidated financial statements in the Annual Report.  In the year
 under review provisions have been made for deferred tax liabilities/
 (assets).
 
 Auditors:
 
 The auditors, Gupta Shyam & Co, Chartered Accountants, retire at the
 ensuing Annual General Meeting and have confirmed their eligibility and
 willingness to accept office, if re-appointed.
 
 Particulars of employees:
 
 There were no employees drawing remuneration more than prescribed under
 Section 217(2A) of the Companies Act, 1956.
 
 Energy conservation, Technology Absorption And foreign exchange
 earnings And Outgo:
 
 In view of the nature of activities which are being carried on by the
 company, Rules 2A and 2B of the companies (Disclosure of Particulars in
 the Report of Board of Directors) Rules, 1988 concerning conservation
 of energy and technology absorption respectively are not applicable to
 the company.
 
 There was no inflow of foreign exchange during the year under review.
 Details of the foreign exchange outflow are given in the Notes to
 Accounts.
 
 corporate governance:
 
 Your Company has complied with the requirements of Clause 49 of the
 Listing Agreement regarding Corporate Governance. A report on the
 corporate governance practices, the Auditors'' Certificate on compliance
 of mandatory requirements thereof, forms part of the Annual Report.
 
 Directors'' Responsibility Statement:
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, with respect
 to the Directors'' Responsibility Statement, it is hereby confirmed
 that:
 
 i. In preparation of the annual accounts for the financial year ended
 March 31,2011, the applicable accounting standards have been followed
 and that there are no material departures from the same;
 
 ii. The Directors have been 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 as at March 31,2011, and of profit of the
 Company for the said period.
 
 iii. The Directors have taken proper and sufficient care to the best of
 their knowledge and ability 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 detecting fraud and
 other irregularities; and
 
 iv. The Directors have prepared the accounts for the financial year
 ended March 31, 2011 on a'' going concern'' basis.
 
 Loans and Advances:
 
 The particulars of loans/advances and investment in its own shares by
 listed companies, their subsidiaries, associates, etc, required to be
 disclosed in the annual accounts of the company pursuant to clause 32
 of the Listing Agreement with the Company, are furnished separately.
 
 Green initiative:
 
 In the current year, we have started a sustainability initiative with
 the aim of being green and minimizing our impact on the environment
 From this year onwards, we are publishing only the statutory
 disclosures in the print version of the Annual Report prepared in
 compliance of the Companies Act, 1956.  Additional details are
 available on our website www.choiceindia.com
 
 Acknowledgement:
 
 Your Directors wish to place on record their appreciation to the
 employees at all levels for their hard work, dedication and commitment.
 The enthusiasm and unstinting efforts of the employees have enabled the
 Company to achieve remarkable growth. The Board also acknowledges the
 unstinted support of the customers, suppliers, investors, bankers,
 Central and State Governments and other statutory authorities and
 others associated with the Company. The company is looking forward for
 continued support in the future.
 
 On behalf of the Board of Directors
 
 
 
 Sd/- 
 Kamal Poddar 
 Managing Director
 
 Mumbai, August 12, 2011