Dear Members,
 
 The Directors have pleasure in presenting the Twenty Second Annual
 Report together with the Audited Statement of Accounts of the Company
 for the Year ended March 31, 2011.
 
 Business of the Company
 
 Geographical Expansion
 
 Your company during the current year has opened new branch offices at
 Tenkasi and Vijayawada, increasing the number of branch offices to 24.
 In additions to branches your company has 33 CTCL terminals in various
 places. With this your company has presence in 57 locations across the
 country as part of its efforts to increase its reach and distribution
 network.
 
 Operations
 
 During the year your company has earned a gross income of Rs.658.02
 lakhs from operations as against Rs.2357.43 lakhs in the previous year.
 Under Stock broking your company has a mix of Institutional and
 individual clients and has achieved a turnover of Rs.4209.15 crore
 during the year. Your company also provides Depository services to
 Institutions and retail customers and has 24530 accounts under DP
 operations and 15524 under broking operations.
 
 Your company has reported a net loss before tax of Rs.859.77 lakhs
 during the year 2010-11 as against a net profit before tax of Rs.230.25
 lakhs in the previous year.
 
 Financial Results
 
                                              Year Ended     Previous 
                                                           Year Ended
 
                                              31.03.2011   31.03.2010
 
 Income from Operations                           658.01      1914.11
 
 Reversal of Provisions (Net)                       0.00       443.32
 
 Total Income                                     658.01      2357.43
 
 Administrative/Operating Expenses                818.43       767.57
 
 Depreciation                                      91.79       109.61
 
 Finance Charges                                  250.00      1250.00
 
 Provisions made/reversals (Net)                  357.56         0.00
 
 Total Expenses                                  1517.78      2127.18
 
 Profit/(Loss) Before Tax                        (859.77)      230.25
 
 Provision for Tax - Deferred (Net)               132.88       395.53
 
 Profit/(Loss) AfterTax                          (992.65)     (165.28)
 
 Balance brought forward from 
 previous year                                    110.03       275.31
 
 Less: Transferred from General 
 Reserve                                          500.00         0.00
 
 Balance carried forward to Balance 
 Sheet                                           (382.61)      110.03
 
 Earnings per share (in Rs)                        (2.24)       (0.37)
 
 
 Dividend
 
 In view of the loss recorded during the year after tax, your Directors
 do not recommend any dividend for the year.
 
 Board of Directors
 
 Shri Anup Sankar Bhattacharya, Director, nominee of Indian Bank
 resigned from the Board with effect from 09.10.2010 consequent to his
 appointment as Chairman & Managing Director of Bank of Maharashtra.
 
 Shri V Rama Gopal, Executive Director, Indian Bank was Co-opted as a
 Director (nominee of Indian Bank) on the Board with effect from
 09.10.2010 and he holds office upto the date of the Annual General
 Meeting. Notice has been received from a member of the company for the
 appointment of Shri V Rama Gopal as Director U/s 257 of the Companies
 Act, 1956, who being eligible has offered himself for appointment.
 
 Shri Sri Ramanan, Director, nominee of Indian Bank resigned from the
 Board with effect from 28.01.2011 consequent to his retirement from the
 services of Indian Bank.
 
 Shri R Ravi, General Manager, Indian Bank was Co-opted as a Director
 (nominee of Indian Bank) on the Board with effect from 28.1.2011 and he
 holds office upto the date of the Annual General Meeting. Notice has
 been received from a member of the company for the appointment of Shri
 R Ravi as Director U/s 257 of the Companies Act, 1956, who being
 eligible has offered himself for appointment.
 
 At the Annual General Meeting, Shri T M Nagarajan, and Shri P V
 Rajaraman, Directors retire by rotation and being eligible offers
 themselves for reappointment.
 
 At the Annual General Meeting,
 
 
 Directors Responsibility Statement
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956 with respect to Directors Responsibility Statement, it is
 hereby confirmed that:
 
 a) In the preparation of the annual accounts for the financial year
 ended 31st March 2011, the applicable accounting standards had been
 followed along with proper explanation relating to departures.
 
 b) 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 and of the profit or loss
 of the Company for the year under review.
 
 c) 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.
 
 d) The Directors had prepared the accounts for the financial year ended
 31 st March 2011 on a going concern basis.
 
 Auditors
 
 The provisions of Section 619 (2) of the Companies Act, 1956 being
 applicable to the Company, the Comptroller and Auditor General of India
 has appointed M/s Raman Associate, Chartered Accountants, Chennai as
 the auditors of the Company for the year 2010-11.
 
 Auditors'' observations in the Audit report
 
 With reference to the observations of the Auditors in the Audit report
 in respect of note no: 10 of notes on accounts regarding non
 consideration of liability towards interest claim of Rs.897.48 lakhs
 under right of recompense on settled borrowings availed earlier from
 Indian Bank, holding company, note is self explanatory.
 
 Particulars of Employees
 
 Details required under Section 217 (2A) of The Companies Act, 1956 read
 with Companies (Particulars of Employees) Rules 1975 regarding
 particulars of employees drawing remuneration of more than
 Rs.2,00,000/- per month: Nil.
 
 Report on Corporate governance
 
 A report on Corporate Governance as stipulated under Clause 49 of the
 Listing Agreement is attached to this report
 
 Outlook
 
 Indian Bank has accorded approval for merger of Indian Bank DP with
 your company''s DP in accordance with the NSDL Regulations. NSDL has
 accorded their approval for the same subject to following the
 procedures laid down under their regulations. Accordingly, in
 coordination with Indian Bank, DP Controlling office, your company has
 taken steps to complete all the procedures and expect the DP accounts
 of Indian Bank to be merged with your company''s DP by end of the first
 quarter of 2011 -12. This would enable your company to increase
 business further and render value added service to all the DP account
 holders of Indian Bank.
 
 Your company will continue to focus its efforts to increase its
 activities under fee-based business in addition to concentrating on
 recovery of overdues and reduction of Non Performing Assets,
 disinvestment of quoted and unquoted investments.  Your company''s
 network, satisfied clientele, quality manpower and stringent cost
 control measures will enable your company to continue to report better
 performance in the coming years.
 
 General
 
 Your Directors wish to place on record their gratitude to the Ministry
 of Finance, Government of India, SEBI, Comptroller and Auditor General
 of India and the Reserve Bank of India for their valuable guidance.
 
 Your Directors also wish to place on record their thanks to the Bankers
 of the Company and their appreciation for the assistance, support and
 guidance received from Indian Bank and its Employees.
 
 Your Directors express their appreciation for the contribution made by
 the Company''s Employees.
 
 In conclusion, your Directors thank you, the shareholders of the
 company for your support and seek your continued support and patronage
 for achieving better results.
 
                          For and on behalf of the Board of Directors
 
                                                         V Rama Gopal
                                                             Chairman
 
 Place : Chennai 
 Date  : 18.04.2011