The Members
 
 The Directors submit the Annual Report of the Company along with the
 audited statement of accounts for the financial year ended March 31,
 2011.
 
 1.  Financial Results 
                                                        (Rs. in Lakhs)
 
 Particulars                               2010 - 2011      2009 - 2010
 
 (i) Income from Sales                     1,35,572.22       114,060.31
 
 (ii) Other Income (net)                        157.96           292.98
 
 (iii) Total Income                        1,35,730.18       114,353.29
 
 (iv) Operating Expenditure                1,26,160.63       107,735.54
 
 (v) Profit before Interest, Depreciation 
     and Tax                                  9,569.55         6,617.75
 
 (vi) Interest                                3,547.23         2,783.02
 
 (vii) Depreciation and Amortisation          3,706.02         2,681.17
 
 (viii) Profit before Taxes                   2,316.30         1,153.56
 
 (ix) Provision for Taxes                       441.75           884.63
 
 (xj Net Profit for the Year                  1,874.55           268.93
 
 (xi) Balance Brought Forward from 
 Previous Year                                1,674.13         2,062.60
 
 (xii) Amount Available for Appropriation     3,548.68         2,331.53
 Appropriations
 
 (a) Interim Dividends on Equity Shares         383.15              —
 
 (b) Interim Dividends on Preference Shares        —              14.70
 
 (c) Proposed Final Dividend on Equity Shares      —             101.83
 
 (d) Tax on Dividends                            63.64            19.42
 
 (e) General Reserve                            187.46            13.45
 
 (f) Capital Redemption Reserve                    —             508.00
 
 (g) Balance carried to Balance Sheet          2,914.43        1,674.13
 
 2.  Dividend
 
 During the reporting period 2010-11, the Company paid 2 interim
 dividends for 30% and 25% respectively. The total cash outflow on
 account of dividends excluding dividend tax for the year 2010-11, would
 aggregate to Rs. 3.83 Crores resulting in a payout of 20.30% of the
 profits of the Company.
 
 3.  Transfer to Reserves
 
 The Company proposes to transfer Rs.1.87 Crores to the General Reserve
 out of the amount available for appropriations and an amount of
 Rs.29.14 Crores is proposed to be retained in the Profit and Loss
 Account.
 
 4.  Company''s Performance
 
 Financial Year 2010-11 marked a strong resurgence in volume and demand
 growth post the global financial crisis. During the reporting year
 2010-11, revenues at Rs.1355.72 Crores were higher by 18.86% over the
 previous year''s revenues of Rs. 1140.60 Crores. Net profit for the year
 at Rs. 18.75 Crores was 7 times higher than the previous year''s net
 profit of Rs. 2.69 Crores.
 
 5.  Corporate Governance Report and Management Discussion and Analysis
 Statement
 
 Corporate Governance Report and Management Discussion and Analysis
 Statement are attached to this Report.
 
 6.  Directors'' Responsibility Statement
 
 Pursuant to the requirement of Section 217(2AA) of the Companies Act,
 1956 (Act), and based on the representations received from the
 operating management, the Directors hereby confirm that:
 
 (i) in the preparation of the Annual Accounts for the year 2010-11, the
 applicable Accounting Standards have been followed and there are no
 material departures;
 
 (ii) they have 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 profit of the
 Company for the financial year;
 
 (iii) they 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.
 They confirm that there are adequate systems and controls for
 safeguarding the assets of the Company and for preventing and detecting
 fraud and other irregularities;
 
 (iv) they have prepared the Annual Accounts on a going concern basis.
 
 7.  Fixed Deposits
 
 The total amount of Fixed Deposits from the Public and Shareholders of
 the Company outstanding as at 31st March, 2011, was Rs. 742.58 Lakhs
 out of which a sum of Rs. 504.63 Lakhs represents 975 accounts of
 Fixed/ Non Cumulative Deposits and Rs. 237.95 Lakhs represents 597
 accounts of Cumulative Deposits.
 
 8.  Directors
 
 In accordance with the provisions of the Articles of Association of the
 Company, two of your Directors, Mr. K S Thanarajan and Mr. N
 Chandrasekaran are liable to retire by rotation at the forthcoming
 Annual General Meeting and being eligible, offers themselves for
 re-appointment.
 
 The tenure of Mr C Sathyan, Executive Director ended on 31st May 2011
 on completion of five years period and he was re-appointed as Executive
 Director for a further period of 5 years in the Board Meeting held on
 25th May 2011.  Approval of the shareholders is required for the same.
 
 The profile of Directors seeking appointment/re-appointment is
 furnished in the Notice of the ensuing Annual General Meeting.
 
 9.  Auditors
 
 M/s. S.R.Batliboi & Associates, Chartered Accountants, who are the
 statutory auditors of the Company, hold office in accordance with the
 provisions of the Act upto the conclusion of the forthcoming Annual
 General Meeting and are eligible for re-appointment.
 
 10.  Particulars of employees
 
 None of the employees draw remuneration which in the aggregate exceeds
 Rupees Sixty Lakhs per annum or Rupees Five Lakhs per month during the
 financial year as per the provisions of Section 217(2A) of the
 Companies Act, 1956, read with the Companies (Particulars of Employees)
 Rules, 1975.
 
 None of the employees draw remuneration which, in the aggregate, or as
 the case may be, at a rate which, in the aggregate, is in excess of
 that drawn by the managing director or whole-time director or manager.
 None of the employees holds by himself or along with his spouse and
 dependent children, not less than two per cent, of the equity shares of
 the company
 
 11.  Conservation of energy, technology absorption, foreign exchange
 earnings and outgo
 
 The particulars as prescribed under section 217(1)(e) of the Act, read
 with the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988, are set out in an Annexure to this Report.
 
 12.  Corporate Social Responsibility
 
 Your Company has been extending help to villages where our plants are
 located, as part of our Corporate Social Responsibility. Financial
 assistance was extended for creating and developing basic
 infrastructures like roads, electricity and water tanks. Your Company
 has also contributed towards enhancement of facilities in schools, by
 providing benches, table chairs and other related items. Your Company
 donated materials like computer tables, water tanks, chairs and the
 like, to schools in Timma Samudram Ooratchi and Chetteri Medu.
 
 13.  Acknowledgements
 
 The Directors wish to convey their appreciation to business associates
 for their support and contribution during the year. The Directors would
 also like to thank the employees, shareholders, customers, bankers,
 farmers and channel partners for the continued support given by them to
 the Company and their confidence reposed in the management. The
 Directors appreciate and value the contributions made by every member
 of Hatsun.
 
                             For and On behalf of the Board of Directors
 
                                                                    Sd/-
 Place : Chennai                                        R.G.CHANDRAMOGAN
 Date : 1st August, 2011                    Chairman & Managing Director