The Members
 
 The Directors have pleasure in presenting the 32nd Annual Report
 together with the Audited Accounts for the year ended 31st March 2011.
 
 FINANCIAL RESULTS
 
 The Financial Results for the year ended 31st March, 2011 are
 summarised below:
 
                                                        (Rs in Lakhs)
 
 Particulars                                    2010-11      2009-10
 
 Income (Sale and                              10308.69     12628.75
 
 other Income)
 
 Profit before Depreciation,                    1163.28      2339.45
 
 Interest & Taxes
 
 Depreciation                                    742.61       803.60
 
 Interest                                         34.42        57.09
 
 Provision for Taxation                          131.00       516.82
 
 Provision for Deferred                         (135.90)     (157.16)
 
 Taxation
 
 Profit after Taxation                           391.15      1119.10
 
 Profit brought forward                         8655.41      7931.06
 from Previous year
 
 APPROPRIATIONS
 
 Transfer to                                      40.00       150.00
 General Reserve
 
 Proposed Dividend                               209.89       209.89
 
 Corporate Tax                                    34.05        34.86
 on Dividend
 
 Balance carried over to                        8762.62      8655.41
 
 Balance Sheet
 
 Segment-wise performance has been furnished under Notes on Accounts.
 
 DIVIDEND
 
 Your Directors are pleased to recommend for your consideration a
 Dividend of Rs 2.70 per equity share for the year ended 31.03.2011, as
 against Rs 2.70 per equity share in the previous year aggregating an
 amount of Rs 243.94 lakhs including Dividend Distribution Tax.
 
 PERFORMANCE OF THE YEAR UNDER REVIEW
 
 Cement Division:
 
 During the year under review, the Cement Division has produced 2,52,992
 MT of cement as against 2,58,863 MT of cement for the previous year.
 The profit for the Division was Rs 830.46 lakhs as against Rs 980.65
 lakhs for the previous year.
 
 Sugar Division:
 
 The Sugar Division crushed 1,24,458 MT of sugarcane for the current
 season as against 48,575 MT for the previous season. The recovery rate
 was 9.53% compared to 9.19% for the previous season. The loss for the
 Division was Rs 747.86 lakhs as against Rs 154.26 lakhs profit for the
 previous year.
 
 Power Division:
 
 During the year under review, the Power Division has generated
 6,11,34,753 KWH against 4,69,03,336 KWH of power for the previous year.
 The Profit for the Division was Rs 303.65 lakhs as against Rs 343.85
 lakhs for the previous year.
 
 CURRENT YEAR OUTLOOK:
 
 Cement Division:
 
 In the first three months of the current year i.e.  April - June 2011,
 the production of cement was 62,020 MT as against 64,122 MT of the
 first three months of the previous year. Your Directors expect that
 current price realisations will sustain during the remaining part of
 the current year.
 
 Sugar Division:
 
 Sugarcane crop in the factory zone is likely to improve and estimated
 to crush around 2,00,000 MT during the crushing season 2011-12.
 
 Power Division:
 
 The matters relating to down ward revision of tariff by the APERC on
 the Power sales to APTRANSCO, and PLF ceiling, contested in the Courts
 by the Company are pending.
 
 FIXED DEPOSITS:
 
 The aggregate amount of deposits accepted by the Company as on
 31.03.2011 stood at Rs 20.06 lakhs. There were no fixed deposits, which
 were matured but not paid, other than unclaimed deposits, as on that
 date.
 
 INSURANCE:
 
 All the properties of the Company including its buildings, Plant and
 Machinery and Stocks wherever required have been adequately insured.
 
 PARTICULARS OF EMPLOYEES:
 
 The information required under Section 217 (2A) of the Companies Act,
 1956 read with Companies (Particulars of Employees) Rules 1975, as
 amended, forms part of this Report. However, the report and accounts
 are being sent to all the shareholders of the company excluding the
 above information. Those shareholders, who desire to obtain these
 particulars, would be provided the same upon receiving such request.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 The Board of Directors of the Company hereby declares and states that -
 
 1.  In the preparation of annual accounts, the applicable accounting
 standards have been followed and there were no material departures
 therefrom.
 
 2.  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 status of the
 Company as on 31st March, 2011 and Profit & Loss Account of the Company
 for the year ended as on 31st March, 2011.
 
 3.  The Directors have 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 preventing and detecting fraud and other
 irregularities.
 
 4.  The accounts were prepared on a going concern basis.
 
 ENVIRONMENTAL PROTECTION:
 
 The Company consciously makes efforts to preserve the environment and
 control the pollution from time to time.
 
 Planting of saplings and seedlings in and around the factories and
 colonies is being done on a continuous basis, so as to develop green
 belt around the plant to improve the environment.
 
 AUDITORS:
 
 M/s. M. ANANDAM & CO., Chartered Accountants, Secunderabad, the
 Auditors of the Company retire at the conclusion of this Annual General
 Meeting and they are eligible for re-appointment.
 
 COST AUDIT:
 
 For the year ended 31st March 2011, with the approval of Central
 Government, M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad
 have been appointed to conduct the Cost Audit. In respect of financial
 year 2009-2010 Cost Audit Report was filed on 27.09.2010. In respect of
 2010-2011 it will be filed before the due date i.e.  30th September
 2011.
 
 
 ACKNOWLEDGEMENTS:
 
 Your Directors thank the State Bank of India, Industrial Finance
 Branch, Somajiguda, Hyderabad and Andhra Bank, Specialised Corporate
 Finance Branch, Somajiguda, Hyderabad for extending the support towards
 working capital to meet the requirements of its operations.
 
 Your Directors appreciate the support and the cooperation received from
 the State Government, NEDCAP, APTRANSCO and the Central Government for
 the Company''s growth and development.
 
 Your Directors would like to convey the deep appreciation to all the
 employees and workers of the Company for their sustained effort and
 wholehearted co-operation throughout the year.
 
 Your Directors thank the Distributors, Dealers and Suppliers for their
 continuous support and active involvement.
 
 Finally your Directors record their deep sense of gratitude to all the
 Shareholders for the abundant confidence reposed in the Board of
 Directors.
 
                                        For and on behalf of the Board
 
                                                      P. VENKATESWARLU
 Place : Hyderabad                                          Chairman &
 
 Date  : 24.08.2011                                  Managing Director