The Directors have pleasure in presenting the Twenty Sixth Annual
 Report and the Audited Financial Statements, for the year ended March
 31, 2011.
 
 FINANCIAL HIGHLIGHTS
 
 The highlights of financial results of the Company for the year under
 review are given below:
 
                                                         (Rs. in Mn.)
 
                                        For the year 
                                               ended    For the year 
                                                               ended
 
                                      March 31, 2011  March 31, 2010
 
 Income from operations                      8291.28         6859.70
 
 Less : Excise Duty                           658.82          450.67
 
 Other Income                                  56.40          118.31
 
 Total Income                                7688.86        6,527.34
 
 Profit before interest, 
 depreciation and tax                         580.32          703.08
 
 Interest                                      20.46           15.10
 
 Depreciation                                 160.52          117.77
 
 Tax                                          106.08          108.81
 
 Profit after tax                             293.26          461.40
 
 Amount brought forward from previous year    802.24          427.14
 
 Balance available for appropriation         1095.50          888.54
 
 Amount transferred to General Reserve         29.33           46.14
 
 Proposed Dividend (including Corporate 
 Dividend Tax)                                 40.02           40.16
 
 Surplus carried to Balance Sheet            1026.15          802.24
 
 DIVIDEND
 
 Your Directors recommend a dividend of Rs. 1.50 per Equity Share for
 the year ended March 31, 2011. This is subject to the approval of the
 Members at the ensuing Annual General Meeting.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Your Directors confirm that:
 
 (i) in the preparation of the annual accounts, the applicable
 accounting standards have been followed ;
 
 (ii) such accounting policies have been selected 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 ended March 31, 2011 and
 of the profit of the Company for that year ;
 
 (iii) proper and sufficient care has been taken 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) annual accounts have been prepared on a going concern basis.
 
 REPORT OF CORPORATE GOVERNANCE
 
 Report on Corporate Governance under clause 49 of the Listing Agreement
 is attached to this Report.
 
 PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956
 
 A statement showing particulars of employees under Section 217(2A) of
 the Companies Act, 1956, read with Companies (Particulars of Employees)
 Rules, 1975 is not required to attach with this Report since no
 employee has drawn remuneration above the limit prescribed in Rules.
 
 Information pursuant to Section 217(1)(e) of the Companies Act, 1956
 read with Rule 2 of the Companies (Disclosure of Particulars in the
 Report of the Board of Directors) Rules, 1988, relating to Conservation
 of energy, technology absorption and foreign exchange earning and outgo
 is given as Annexure-I to this report.
 
 ACKNOWLEDGEMENT
 
 Your Directors thank all Customers, Suppliers, Investors, Bankers -
 State Bank of India, ICICI Bank and Standard Chartered Bank and other
 stakeholders of the Company for their co-operation and continued
 support during the year. We look forward to their continued support in
 the future also.
 
 We wish to place on record our sincere appreciation for the excellent
 work put in by the employees of the Company at all levels.
  
                             For and on behalf of the Board of Directors
 
 Place : Ahmedabad          Motoo Morimoto             Anil Shah
 
 Date :May 23, 2011         Managing Director       Executive Director