For the Financial Year Ended 31st March, 2011
 
 The Directors submit their Report for the financial year ended 31st
 March, 2011.
 
 SOCIO-ECONOMIC ENVIRONMENT
 
 World output staged a smart recovery in 2010 growing by 5% during the
 year after a decline of 0.6% in 2009.  While growth in the first half
 of the year stood at 5.25%, there was a marked deceleration in the
 second half which recorded a growth of 3.75%. Receding fears of a
 global depression in 2009 initially led to a lower rate of destocking
 by business and subsequently to a phase of rebuilding depleted
 inventories. This fostered a sharp rebound in industrial production and
 trade which lasted through the first half of 2010. Simultaneously,
 accommodative policies adopted by most governments, improvement in
 business confidence and financial conditions encouraged investments and
 helped arrest rising unemployment levels and boost consumption.
 Consequently, recovery has become more self-sustaining and the risk of
 a double-dip recession in advanced economies has abated. The recovery,
 however, is broadly moving at two speeds. While economic growth in the
 advanced economies remained modest at around 3% in 2010 after a decline
 of 3.4% in 2009, emerging and developing economies recorded robust
 growth in excess of 7% during the year – led primarily by China and
 India.  According to the International Monetary Fund (IMF), world real
 GDP growth for 2011 is forecast at 4.4%, representing a modest slowdown
 from 2010 levels. Real GDP in the advanced economies is expected to
 grow by 2.5% while that in the emerging and developing economies is
 forecast to grow by 6.5%. However, downside risks to these estimates
 continue to outweigh the upsides. In the case of advanced economies,
 the key concerns revolve around weak sovereign balance sheets, the
 possibility of financial troubles in peripheral Euro area spreading to
 core Europe, high levels of unemployment, the continued weakness of the
 US real estate market and the lack of progress in formulating
 
 medium-term fiscal consolidation plans. In the emerging economies, key
 risks relate to overheating, asset price bubbles, rapid rise in
 inflationary pressures, spurt in commodity prices and the potential for
 boom-bust cycles could eventually result in a hard landing in these
 economies. With emerging markets accounting for 40% of global
 consumption and two-thirds of global growth, a slowdown in these
 economies could dent global recovery significantly.
 
 Closer home, after growing at 8.0% in 2009/10, the Indian economy
 picked up further steam in 2010/11 recording a real GDP growth of 8.6%
 during the year.  While the Agricultural sector posted an above-trend
 growth of 5.4% aided in part by a low base effect, Industry and
 Services grew by 8.1% and 9.6% respectively. After clocking an
 impressive growth of 8.9% in the first half of the year, the economy
 showed signs of moderation in the second half especially in capital
 goods production and investment spending. A good performance on the
 external front with exports growing by 37.5% even as imports grew by
 21.6% during the year helped reduce the Current Account Deficit to
 approximately 2.5% of GDP from 2.8% in the previous year. The Centres
 Fiscal Deficit for the year stood at 5.1% of GDP – a significant
 improvement from 6.4% recorded in 2009/10 – driven by buoyant tax
 collections and proceeds of the 3G spectrum auction. However, amongst
 these positives, the persistently high level of inflation in the
 economy despite good monsoons was a key cause for concern.  The
 year-on-year headline WPI inflation started trending up from December
 2009 through to April 2010 when it touched 11%. After remaining in
 double digits from April 2010 to July 2010, headline inflation
 moderated progressively to 7.5% in November 2010 before reversing the
 trend from December 2010 mainly due to supply bottlenecks in food
 items. Inflation levels remained elevated in the December 2010 to March
 2011 period mainly on account of fuel, power and non-food manufacturing
 products. Thus, the inflationary pressures,which emanated from food items 
 clearly spilled over and became generalised, as the year progressed. The 
 recent slowdown in Industrial growth, as reflected by the Index of 
 Industrial Production (IIP) and data pertaining to the six core 
 industries, is also a cause for concern.
 
 According to the monetary policy statement released on May 3, 2011,
 RBIs baseline growth projection for the Indian economy is expected to
 slow down to 8% with year-end WPI inflation estimated at 6% with an
 upward bias. As the policy challenge shifts to taming inflation, the
 economy will have to contend with high interest rates which in turn
 could impact growth. Risks to global recovery as stated earlier, high
 commodity prices especially of oil - with Brent crude crossing USD 120
 per barrel in April 2011 triggered by events in the MENA (Middle East
 and North Africa) region, elevated levels of inflation including in
 food prices, high subsidy burden arising out of high oil prices and
 commitments arising out of the proposed implementation of the National
 Food Security Bill pose the key downside risks to economic growth in
 the near term. In the medium to long term, Indias economic growth
 engine is expected to be powered by multiple drivers such as the
 increasing momentum in the savings and investment rates (which should
 further improve with Indias demographic dividend playing out in the
 ensuing years), a vibrant services sector, a large domestic demand base
 and the emergence of internationally competitive firms. The challenge
 of raising the growth bar to the desired double-digit levels, however,
 remains daunting and would require, inter-alia, significant improvement
 in agricultural productivity, step up in investments especially in
 physical and social infrastructure, skill development, achieving energy
 security, job creation and addressing the governance deficit. As
 captured in the Union Finance Ministers 2011 Budget speech, ...in the
 medium term perspective, our three priorities of sustaining a high
 growth trajectory; making development more inclusive; and improving our
 institutions, public delivery and governance practices, remain
 relevant.
 
 Indias rapid economic growth in recent years and the prospects of
 building further on this momentum in the medium to long-term has led it
 to command a new respect in the world order. According to recent
 studies
 
 India is expected to be the third largest economy by 2050. Indias
 demographic trends indicate that the nation will add over 200 million
 people to the working age population over the next 20 years, more than
 any other country in the world. Several studies indicate a near
 tripling of household disposable incomes and a burgeoning middle-class
 which will comprise over 40% of Indias population and grow ten-fold to
 touch 583 million people by 2025. These trends augur well for the
 nation and could provide enormous opportunities for private enterprise
 and sustaining the growth trajectory.  Yet, with 17% of the worlds
 population, 2.4% of global land mass, 4% of the worlds freshwater
 resources and 1% of the worlds forest resources, the pressure of
 economic growth on the countrys natural capital will be enormous.
 Equally, the need to make economic growth more equitable and inclusive
 is compelling.
 
 A comprehensive growth strategy for rural India, including the
 agricultural sector which continues to underperform, is necessary to
 address the serious issues relating to sustainability and inclusive
 growth. The governments focus on social sector programmes such as
 Bharat Nirman, National Rural Employment Guarantee Scheme (NREGS),
 Sarva Shiksha Abhiyan, food security legislation and strategies to
 improve benefit delivery mechanisms have the potential to transform the
 Indian rural landscape. It is here that unique business models like the
 ones forged by your Company can supplement the efforts of the
 government in creating societal value and enhancing societal capital.
 It is an essential pre-requisite of rural development that markets are
 co-created with local communities and in a constructive
 public-private-people partnership.
 
 Your Companys e-Choupal network is a close replica of this model. It
 provides the farming community with value-added services such as crop
 advisories, advance weather forecasts, output price discovery, direct
 communication tools and distribution of unadulterated agri inputs. The
 footprint of this network is well established to source most
 requirements of your Companys Branded Packaged Foods business and is
 poised to grow in line with entry into newer categories. Similarly,
 your Companys unique and path-breaking ‘Choupal Pradarshan Khet (CPK)
 initiative, a collaborative and paid extension service aimed towards
 enhancing farm productivity with emphasis
 
 on adoption of sustainable agricultural best practices, continues to
 attract the interest of both farmers and partnering companies. The
 demonstration plots under CPK have recorded significant productivity
 gains as compared to control plots. An estimated 40,000 farmers
 participated in this programme during the year.
 
 In line with the national agenda of pursuing sustainable and inclusive
 growth, your Company is proactively engaged in enlarging its
 contribution across the three dimensions of the ‘Triple Bottom Line -
 economic, environmental and social - through investments and operations
 that foster the competitiveness of entire value chain that it is
 engaged in. In line with this philosophy, it is your Companys
 endeavour to embed larger societal goals in its various business
 models. Major initiatives in this direction include the e-Choupal
 network which is contributing to increasing rural incomes by providing
 a wide range of support services to the farming community, the Social
 and Farm Forestry programmes which create sustainable livelihoods among
 marginal farmers and poor tribals, adoption of environment friendly
 technologies including the increasing use of renewable sources of
 energy, recycling processes and creation of rainwater harvesting
 structures. Such initiatives have combined to make ITC the only Company
 in the world, of comparable size, to be ‘carbon positive, ‘water
 positive and ‘waste recycling positive.
 
 The following sections outline your Companys progress in pursuit of
 the ‘Triple Bottom Line objectives.
 
 FINANCIAL PERFORMANCE
 
 Your Company, in its Centenary Year, posted yet another year of stellar
 performance with an impressive topline growth and high quality earnings
 reflecting the robustness of its corporate strategy of creating
 multiple drivers of growth. This performance is particularly noteworthy
 when viewed against the backdrop of the extremely challenging business
 context in which this was achieved, namely, the steep increase in
 excise duties in the Union Budget 2010 coupled with the amplified
 impact of arbitrary increases in VAT on cigarettes, brand building and
 incubation costs of the new FMCG businesses, the impact of the
 significant investments made in augmenting distribution infrastructure
 and the gestation costs of the large investments in the Hotels
 business.
 
 Gross Turnover for the year grew by 16.5% to Rs. 30604.39 crores. Net
 Turnover at Rs. 21167.58 crores grew by 16.6% primarily driven by a
 23.1% growth in the non-cigarette FMCG businesses, 22.9% growth in Agri
 business and 17.6% growth in the Hotels segment. Pre-tax profits
 increased by 20.8% to Rs. 7268.16 crores while Post-tax profits at Rs.
 4987.61 crores registered a growth of 22.8%.  Earnings Per Share for
 the year stands at Rs. 6.49 (previous year - adjusted for Bonus Issue -
 Rs. 5.34). Cash flows from Operations stood at Rs. 7460 crores compared
 to Rs. 6632 crores in the previous year.
 
 Your Company completed 100 years in August 2010.  It is a matter of
 great pride to reflect on the enormous progress made by your Company
 over the years. Your Company today is the leading FMCG marketer in
 India, the second largest Hotel chain, the clear market leader in the
 Indian Paperboard and Packaging industry and the countrys foremost
 Agri business player. Additionally, your Companys wholly owned
 subsidiary, ITC Infotech India Limited, is one of Indias fast growing
 Information Technology companies in the mid-tier segment.
 
 Over the last fifteen years, your Company has created multiple drivers
 of growth by developing a portfolio of world class businesses. During
 this period, your Companys Gross Turnover and Post-tax profits
 recorded an impressive compounded growth of 12.7% and 21.7% per annum
 respectively. Profitability, as measured by Return on Capital Employed
 improved substantially from 28.4% to 43.4% during this period. Total
 Shareholder Returns, measured in terms of increase in market
 capitalisation and dividends, grew at a compounded rate of 25.6% during
 this period, placing your Company amongst the foremost in the country
 in terms of efficiency of servicing financial capital. It is indeed a
 matter of pride that your Company was ranked, by The Boston Consulting
 Group, an international management consultancy firm, amongst the top 10
 global consumer goods companies in terms of sustained shareholder value
 creation for the period 2005 - 2009. Your Company today is one of
 Indias most admired and valuable corporations with a market
 capitalisation in excess of Rs. 140000 crores and has consistently
 been, over the last fifteen years, amongst the top 10 private sector
 companies in terms of market capitalisation.
 
 Last year, in celebration of your Company completing a 100 years, your
 Directors had recommended and you had approved a Special Centenary
 Dividend of Rs. 5.50 per share (adjusted for bonus issue - Rs. 2.75 per
 share) in addition to a Dividend of Rs. 4.50 per share (adjusted for
 bonus issue - Rs. 2.25 per share). Your Directors had also recommended
 and you had approved a 1:1 Bonus issue in the Centenary year. This
 year, on the occasion of your Company convening its milestone Hundredth
 Annual General Meeting, your Directors are pleased to recommend a
 Special Dividend of Rs. 1.65 per share (previous year – Nil) in
 addition to a Dividend of Rs. 2.80 per share (previous year - adjusted
 for bonus issue - Rs. 2.25) for the year ended 31st March, 2011.
 
 Total cash outflow in this regard will be Rs. 4002.09 crores (previous
 year Rs. 4452.33 crores) including Dividend Distribution Tax of Rs.
 558.62 crores (previous year Rs. 634.15 crores). Your Board further
 recommends a transfer to General Reserve of Rs. 498.76 crores (previous
 year Rs. 406.10 crores). Consequently, your Board recommends leaving an
 unappropriated balance in the Profit and Loss Account of Rs. 548.67
 crores (previous year Rs. 61.31 crores).
 
 FOREIGN EXCHANGE EARNINGS
 
 Your Company continues to view foreign exchange earnings as a priority.
 All businesses in the ITC portfolio are mandated to engage with
 overseas markets with a view to testing and demonstrating international
 competitiveness and seeking profitable opportunities for growth. The
 ITC groups contribution to foreign exchange earnings over the last ten
 years amounted to nearly USD 4.5 billion, of which agri exports
 constituted 57%.  Earnings from agri exports are an indicator of your
 Companys contribution to the rural economy through effectively linking
 small farmers with international markets.
 
 During the financial year 2010/11, your Company and its subsidiaries
 earned Rs. 3123 crores in foreign exchange.  The direct foreign
 exchange earned by your Company amounted to Rs. 2814 crores (Rs. 2354
 crores in 2009-10), powered by exports of major agri-commodities. Your
 Companys expenditure in foreign currency amounted to Rs. 1254 crores,
 comprising purchase of raw materials, spares and other expenses of Rs.
 1028 crores and import of capital goods at Rs. 226 crores. Details of
 foreign exchange earnings and outgo are provided in Schedule 19 to the
 Accounts.
 
 PROFITS, DIVIDENDS AND RETENTION
 
                                                       (Rs. in Crores)
 
                                                    2011         2010
 
 a) Profit before Tax                             7268.16     6015.31
 
 b) Income Tax                                    2280.55     1954.31
 
 c) Profit after Tax                              4987.61     4061.00
 
 d) Add: Profit brought forward
    from previous year                              61.31      858.14
 
 e) Surplus available for
    Appropriation                                 5048.92     4919.14
 
 f) Transfer to General Reserve                    498.76      406.10
 
 g) Proposed Dividend for the financial year 
    - Ordinary Dividend of Rs. 2.80 per
    ordinary share of Rs. 1/- each (previous
    year - adjusted for Bonus Issue -
    Rs. 2.25 per share)                           2166.68     1718.18
 
 - Special Centenary Dividend of Nil per 
   ordinary share of Rs. 1/- each
   (previous year - adjusted for Bonus 
   Issue - Rs. 2.75 per share)                          -     2100.00
 
 - Special Dividend of Rs. 1.65 per ordinary 
   share of Rs. 1/- each
   (previous year - adjusted for Bonus 
   Issue - Nil)                                   1276.79           - 
 
 h) Income Tax on proposed dividends               558.62      634.15
 
 i) Earlier years provision no longer
    required                                       (0.60)      (0.60)
 
 j) Retained Profit carried forward to
    the following year                            548.67        61.31
                   
                                                 5048.92      4919.14
 
 
 TAXATION
 
 As mentioned in the Report of the Directors of earlier years, your
 Company had obtained Stay Orders from the Honble Calcutta High Court
 in respect of the Income Tax notices for re-opening the past
 assessments for the period 1st July, 1983 to 30th June, 1986. This
 status remains unchanged.
 
 As stated in the Report of the Directors of earlier years, in respect
 of similar Income Tax notices for re-opening the past assessments for
 the period 1st April, 1990 to 31st March, 1993, the Honble Calcutta
 High Court had admitted the Writ Petitions and ordered that no final
 assessment orders be passed without the leave of the Court. This status
 also remains unchanged.
 
 PUBLIC DEPOSITS
 
 Your Companys Public Deposit Scheme closed in the year 2000. As at
 31st March, 2011, there were no deposits due for repayment except in
 respect of 2 deposit holders for Rs. 0.20 lakhs which have been
 withheld on the directives received from government agencies.
 
 There was no failure to make repayments of Fixed Deposits on maturity
 and the interest due thereon in terms of the conditions of your
 Companys erstwhile Schemes.
 
 INVESTOR SERVICE CENTRE
 
 During the year, the ISO 9001:2008 Quality Management System
 Certification for investor servicing by Investor Service Centre (ISC)
 was renewed by Messrs. Det Norske Veritas (DNV) for a further period of
 three years.  DNV also accorded Level 5 rating to ISC, the highest
 possible rating level, for the second consecutive year, for its systems
 and processes, which stands testimony to the exemplary standards of
 investor servicing practices by the ISC.
 
 ISC continues to operate with an experienced team of professionals
 backed by state-of-the-art infrastructure and systems focused towards
 meeting the increasing expectations of investors and regulatory
 authorities.
 
 DIRECTORS
 
 Mr. Krishnamoorthy Vaidyanath, Wholetime Director, retired from your
 Company after 35 years of service, with effect from close of business
 on 2nd January, 2011 on completion of his term. Your Directors would
 like to record their appreciation of the services rendered by Mr.
 Vaidyanath. The Board of Directors (the ‘Board) at its meeting held on
 22nd December, 2010, appointed Mr. Vaidyanath as Non-Executive Director
 of your Company with effect from 3rd January, 2011 to draw upon his
 knowledge and vast experience.
 
 Mr. Anup Singh ceased to be Additional Wholetime Director on 23rd July,
 2010, the date of the last Annual General Meeting (AGM) of your
 Company.
 
 Mr. Nakul Anand and Mr. Pradeep Vasant Dhobale were appointed by the
 Board at its meeting held on 22nd December, 2010, as Additional
 Wholetime Directors of your Company with effect from 3rd January, 2011.
 
 By virtue of the provisions of Article 96 of the Articles of
 Association of your Company and Section 260 of the Companies Act, 1956,
 Messrs. Vaidyanath, Anand and Dhobale will vacate office at the ensuing
 AGM of your Company.
 
 Your Board at its meeting held on 20th May, 2011, recommended for the
 approval of the Members the appointment of Messrs. Anand and Dhobale as
 Directors, liable to retire by rotation, and also as Wholetime
 Directors of your Company for a period of three years from 3rd January,
 2011. Your Board at the said meeting also recommended for the approval
 of the Members the appointment of Mr. Vaidyanath as Non-Executive
 Director of your Company, liable to retire by rotation, with effect
 from the date of the ensuing AGM of your Company.
 
 Your Board at its meeting held on 20th May, 2011 recommended for the
 approval of the Members the re-appointment of Mr. Yogesh Chander
 Deveshwar as a Director, not liable to retire by rotation, and also as
 Wholetime Director and Chairman of your Company, for a period of five
 years from 5th February, 2012.
 
 Notices have been received from Members of your Company under Section
 257 of the Companies Act, 1956 for the appointments / re-appointment of
 Messrs.  Anand, Dhobale, Vaidyanath and Deveshwar, who have filed their
 consents to act as Directors of your Company, if appointed.
 
 Appropriate resolutions seeking your approval to their appointments /
 re-appointment are appearing in the Notice convening the 100th AGM of
 your Company.
 
 In accordance with the provisions of Article 91 of the Articles of
 Association of your Company, Mr. Hugo Geoffrey Powell, Dr. Basudeb Sen,
 Mr. Balakrishnan Vijayaraghavan and Mr. Serajul Haq Khan will retire by
 rotation at the ensuing AGM of your Company and, being eligible, offer
 themselves for re-election. The Board has recommended their
 re-election.
 
 CHANGES IN SHARE CAPITAL
 
 During the year, the following changes were effected in the Share
 Capital of your Company:- 
 
 (i) Increase in Authorised Share Capital
 
 The Authorised Share Capital of your Company was increased from Rs. 500
 crores to Rs. 1000 crores divided into 1000,00,00,000 Ordinary Shares
 of Rs. 1/- each, with effect from 23rd July, 2010.
 
 (ii) Issue of Bonus Shares 382,67,01,530 Ordinary Shares of Rs. 1/-
 each, fully paid-up, were issued as Bonus Shares, in the ratio of 1
 (One) Bonus Share for every existing 1 (One) Ordinary Share of Rs. 1/-
 each held on 4th August, 2010, being the Record Date fixed for the
 purpose. The Bonus Shares were allotted on 6th August, 2010.
 
 (iii) Issue of Shares under the ITC Employee Stock Option Schemes
 9,32,65,960 Ordinary Shares of Rs. 1/- each, fully paid-up, were issued
 and allotted during the year upon exercise of 93,26,596 Options under
 your Companys Employee Stock Option Schemes.
 
 Consequently, the Issued and Subscribed Share Capital of your Company,
 as on 31st March, 2011, stands increased to Rs. 773,81,44,280/- divided
 into 773,81,44,280 Ordinary Shares of Rs. 1/- each.
 
 The new Ordinary Shares issued during the year rank pari passu with the
 existing Ordinary Shares of your Company.
 
 AUDITORS
 
 Your Companys Auditors, Messrs. Deloitte Haskins & Sells, retire at
 the ensuing AGM and, being eligible, offer themselves for
 re-appointment. Since not less than 25% of the Subscribed Share Capital
 of your Company is held collectively by Public Financial Institutions,
 the re-appointment of Auditors is being proposed as a Special
 Resolution in accordance with Section 224A of the Companies Act, 1956.
 
 EMPLOYEE STOCK OPTION SCHEME
 
 Details of the Options granted up to 31st March, 2011, and other
 disclosures as required under Clause 12 of the Securities and Exchange
 Board of India (Employee Stock Option Scheme and Employee Stock
 Purchase Scheme) Guidelines, 1999 (the ‘SEBI Guidelines) are set out
 in the Annexure to this Report.
 
 Your Companys Auditors, Messrs. Deloitte Haskins & Sells, have
 certified that your Companys Employee Stock Option Schemes have been
 implemented in accordance with the SEBI Guidelines and the resolutions
 passed by the Members in this regard.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 As required under Section 217 (2AA) of the Companies Act, 1956, your
 Directors confirm having:
 
 a) followed in the preparation of the Annual Accounts, the applicable
 accounting standards with proper explanation relating to material
 departures if any;
 
 b) 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 your Company at
 the end of the financial year and of the profit of your Company for
 that period;
 
 c) 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 your Company and for preventing and
 detecting fraud and other irregularities; and
 
 (d) prepared the Annual Accounts on a going concern basis.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 In accordance with Accounting Standard 21 - Consolidated Financial
 Statements, ITC Group Accounts form part of this Report & Accounts.
 These Group Accounts also incorporate the Accounting Standard 23 -
 Accounting for Investments in Associates in Consolidated Financial
 Statements and Accounting Standard 27 - Financial Reporting of
 Interests in Joint Ventures as notified under the Companies (Accounting
 Standards) Rules, 2006. These Group Accounts have been prepared on the
 basis of audited financial statements received from Subsidiary,
 Associate and Joint Venture Companies, as approved by their respective
 Boards.
 
 OTHER INFORMATION
 
 The total number of employees as on 31st March, 2011 stood at 24,027.
 
 The certificate of the Auditors, Messrs. Deloitte Haskins & Sells
 confirming compliance of conditions of Corporate Governance as
 stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges in India, is annexed.
 
 There were no changes to your Companys significant Accounting
 Policies.
 
 Particulars as required under Section 217(1)(e) of the Companies Act,
 1956 relating to Conservation of Energy and Technology Absorption are
 also provided in the Annexure to this Report.
 
 There were 31 employees, who were employed throughout the year and were
 in receipt of remuneration aggregating Rs. 60 lakhs or more or were
 employed for part of the year and were in receipt of remuneration
 aggregating Rs. 5 lakhs per month or more during the financial year
 ended 31st March, 2011. The information required under Section 217(2A)
 of the Companies Act, 1956 and the Rules thereunder, in respect of the
 aforesaid employees, is provided in the Annexure forming part of this
 Report.
 
 FORWARD-LOOKING STATEMENTS
 
 This Report contains forward-looking statements that involve risks and
 uncertainties. When used in this Report, the words anticipate,
 believe, estimate, expect, intend, will and other similar
 expressions as they relate to the Company and/or its businesses are
 intended to identify such forward-looking statements. The Company
 undertakes no obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information,
 future events, or otherwise.  Actual results, performances or
 achievements could differ materially from those expressed or implied in
 such forward-looking statements. Readers are cautioned not to place
 undue reliance on these forward-looking statements that speak only as
 of their dates. This Report should be read in conjunction with the
 financial statements included herein and the notes thereto.
 
 CONCLUSION
 
 Your Companys Board and employees are inspired by the Vision of
 sustaining your Companys position as one of Indias most admired and
 valuable companies through world class performance, creating enduring
 value for all stakeholders, including the shareholders and the Indian
 society. Each business within the portfolio is continuously engaged in
 upgrading strategic capability to effectively address the challenge of
 growth in an increasingly competitive market scenario. Effective
 management of diversity enhances your Companys adaptive capability and
 provides the intrinsic ability to effectively manage business risk. The
 vision of enlarging your Companys contribution to the Indian economy
 is manifest in the creation of unique business models that foster
 international competitiveness of not only its businesses but also of
 the entire value chain of which it is a part.
 
 Inspired by this Vision, driven by Values and powered by internal
 Vitality, your Directors and employees look forward to the future with
 confidence and stand committed to creating an even brighter future for
 all stakeholders.
 
                                            On behalf of the Board
 
                                 Y. C. DEVESHWAR          Chairman 
 
                                 P. V. DHOBALE            Director
 
 20th May, 2011 
 Virginia House 
 37 J L Nehru Road 
 Kolkata 700071 
 India