The Directors have pleasure in presenting the Twenty Second Annual
 Report of your Company and the Audited Statements of Accounts for the
 year ended 31st March, 2012.
 
 I.  FINANCIAL RESULT:- 
 
 DESCRIPTION                                 2011-12          2010-11
                                       (Rs. in Lakhs)   (Rs. in Lakhs)
 
 SALES Domestic                                35851            32923
 
 Exports                                        8240             6371
 
 Total                                         44091            39294
 
 Operating Profit                               4075             5124
 
 Less:- Financial charges                       2663             2666
 
 Profit Before Depreciation,                    1412             2458
 Preliminary/FCCB & GDR expenses
 W/o
 
 Depreciation, Preliminary/FCCB                 1124             1161
 & GDR Expenses W/o                            
 
 
 Profit Before Exceptional items                 288             1297
 Revenue/(Loss)                               
 
 Exceptional Items                               848              (25)
 
 Net Profit/(Loss) Before Tax                   1136             1272
 
 Less: Provision for Taxation                    199              206
 
 Less: Provision for Deferred Tax                 76              299
  
 Profit After Tax                                861              767
 
 Add : Balance brought forward                  5437             4953
 
 Profit available for appropriation             6298             5720
 
 Add :Transfer from subsidy reserve                -               17
 
 Appropriation:
 
 Proposed Dividend                               113                -
 
 Corporate Dividend Tax                           18                -
 
 Transfer to Reserve                             300              300
 
 Balance Profit carried to Balance              5867             5437
 sheet  
 
 Earnings per share: (Face Value 
 Rs. 10/-)
 
 Basic (Rs.)                                    7.65             7.63
 
 Diluted (Rs.)                                  6.87             4.79
 
 II.  PERFORMANCE:-
 
 - The Turnover during the year under review was Rs. 440.91 crores as
 against Rs. 392.94 crores for the previous year, a growth of 12.21%
 over the previous year. Increase in revenue was due to rise in volumes
 and prices as well. During the year under review, exports were higher
 by 29.34 % at Rs. 82.40 crores.
 
 - Profit before tax was Rs. 11.36 crore as against Rs. 12.72 crores for
 the previous year, a decrease of 10.69%.
 
 - The Company had raised funds through GDR issue during March 2011 in
 order to part finance the expansion plans and the size of the issue was
 2.5 Million GDR @4.50 USD per GDR which was fully subscribed. The fresh
 infusion of funds by way of equity would lower the Debt-Equity ratio
 and interest cost.
 
 - FCC Bonds which are maturing on 27th April 2011 have been extended by
 another 5 years to 26th April 2016. Besides, Bonds carrying 7% YTM got
 reduced to 5%YTM. The Company is confident of generating sufficient
 cash flows at maturity if the bond holders opt for redemption on due
 date.
 
 - The Company has already started constructing its 10 MW captive power
 plant project at Pollachi, Tamilnadu, India on EPC basis through M/s
 Cethar Vessels Limited, Trichy, Tamilnadu, India. The power plant
 project is under construction and progressing well as per the plan. The
 project is expected to complete by September 2012. The Company''s power
 and fuel cost will get reduced substantially once the project becomes
 operational.
 
 - The Company installed 1.65 MW windmill of Vestas make at Thungavi
 Village, Madathukulam Taluk, Tirupur District, Tamilnadu, India during
 the month of October 2010. With this addition, the Company is having
 3.30 MW Windmills capacity and its generation is being adjusted in its
 FIBC & PP Division.
 
 - Capital Expenditure during the year 2011-12 was Rs. 62.37 crores
 primarily on account of installation of 10MW power plant and 60 TPD
 ESKP facility at Pollachi for the assets transfered from Pondicherry.
 
 A more detailed discussion is provided in the Management Discussion and
 Analysis Report.
 
 III.  DIVIDEND:-
 
 The Board of Directors recommends 10% Dividend absorbing a quantum of
 112.50 lakhs on the Equity Shares for the financial year ended 31st
 March, 2012. As per the provisions of the Income Tax Act, 1961, no tax
 will be deducted at source on dividends distributed. However, the
 Company will bear the tax on the dividend distributed, amounting to Rs.
 18.25 lakhs.
 
 IV.  DIRECTORS:-
 
 Smt. P. Annammal, Director and Shri K. Palaniappan, Director retire by
 rotation at the ensuing Annual General Meeting and being eligible offer
 themselves for re-appointment.
 
 V.  BANKERS:-
 
 The Board of Directors thanks the Consortium of Bankers consisting of
 State Bank of India (Lead Bank), The Karnataka Bank Limited, The Karur
 Vysya Bank Limited, Central Bank of India, Andhra Bank, Union Bank of
 India, ICICI Bank Limited and The Shamrao Vithal Co-Operative Bank
 Limited, who have supported the Company for the Term Loan & Working
 Capital requirements.
 
 VI.  CORPORATE GOVERNANCE:-
 
 Necessary measures have been taken to comply with the requirements of
 the Listing Agreements with the Stock Exchanges where the Company''s
 Shares are listed. The report on Corporate Governance is included as a
 part of the Directors'' Report.
 
 A Certificate from the Auditors of the Company regarding Compliance
 with the conditions of Corporate Governance as stipulated under Clause
 49 of the Listing Agreement is attached to this report.
 
 VII.  DIRECTORS'' RESPONSIBILITY STATEMENT: -
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors
 to the best of their knowledge and belief confirm that;
 
 - In the preparation of the annual accounts for the FY. 2011-12, the
 applicable accounting standards had been followed and there are no
 material departures;
 
 - Appropriate accounting policies have been selected and applied
 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 as at the 31st March, 2012 and of the Profit of the Company
 for the financial year ended 31st March, 2012;
 
 - 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;
 
 - The financial statements have been prepared on a going concern basis.
 
 VIII.  PUBLIC DEPOSITS:-
 
 The Company had not accepted/invited or held any deposits and does not
 hold any deposits from the public.
 
 IX.  AUDITORS:-
 
 M/s. MSS SRIRAM & Co., Chartered Accountants, Karur, the Company''s
 Auditors, retire at the conclusion of the forthcoming Annual General
 Meeting and are eligible for re-appointment. They are recommended for
 reappointment. You are requested to appoint the Auditors and fix their
 remuneration.
 
 X.  COST AUDITOR:-
 
 The Company has appointed Sri. B. Venkateswar, Practicing Cost
 Accountant, as the Cost Auditor in terms of Section 233B(2) of the
 Companies Act, 1956 to audit the cost records and submit his compliance
 report for the year under review to the Central Government.
 
 XI.  LISTING WITH STOCK EXCHANGES:-
 
 The Shares of the Company are listed with the following Stock
 Exchanges:
 
 a) Bombay Stock Exchange Limited
 
 Phiroze Jeejeebhoy Towers, 25th Floor, Dalal Street, Mumbai - 400 001.
 
 b) Madras Stock Exchange Limited
 
 Exchange Building, P. B. No. 183, 11, 2nd Line Beach, Chennai - 600
 001.
 
 c) Cochin Stock Exchange Limited
 
 MES Dr. P. K.Abdul Gafoor Memorial Cultural Complex, 36/1565, 4th
 Floor, Judges Avenue, Kaloor, Cochin-682 017.
 
 d) Coimbatore Stock Exchange Limited
 
 Stock Exchange Building, 683 - 686, Trichy Road, Singanallur,
 Coimbatore - 640 005.
 
 The Company has paid the annual Listing fees for the period 2012-2013
 to Bombay Stock Exchange Limited, Madras Stock Exchange Limited, Cochin
 Stock Exchange Limited while in respect of Coimbatore Stock Exchange,
 fees has not been paid, since the demand notice has not been received
 yet.
 
 The Foreign Currency Convertible Bonds and Global Depository Receipts
 of the Company are listed with Luxembourg
 
 Stock Exchange, R.C.B, 6222, B.P 165 L-2011, Luxembourg.
 
 XII.  PARTICULARS OF EMPLOYEES:-
 
 Statement Under Section 217 (2A) of the Companies Act, 1956 read with
 the Companies (Particulars of Employees) Rules, 1975 and forming part
 of the Directors'' Report for the year ended 31st March, 2012.
 
 Name                         Age     Designation     Remuneration
                              (in     Nature of          Including
                            years)    Dues                Gratuity
                                                        (In Rupees)
 (1)                           (2)    (3)                       (4) 
 
 Shri K.C. Pallanishamy        77     Chairman &         85,96,154 
                                      Managing 
                                      Director
 
 Shri K.C.P Shivraman          38     Joint Managing     85,96,154
                                      Director
 
 
 Name                      Experience          Date of    Particulars 
                            (In years)    commencement        of last
                                         of Employment     Employment
 (1)                               (5)             (6)            (7)
 
 Shri K.C.Pallanishamy             51       18-01-1991              -
 
 Shri K.C.P Shivraman              20       18-01-1991              -
 
  
 XIII. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
 EXCHANGE EARNINGS AND OUTGO:-
 
 Information under Section 217 (1) (e) of the Companies Act, 1956 read
 with the Companies (Disclosure of particulars in the Report of Board of
 Directors), Rules, 1988 and forming part of the Directors'' Report.
 
 XIV. ACKNOWLEDGEMENT:-
 
 The Directors thank the Customers, Bankers, Suppliers and the
 Shareholders for their continued support and also recognize the
 contribution made by the employees to the Company''s progress during the
 year under review.
 
                                              On Behalf of the Board
 
                                                 K. C. PALLANI SHAMY 
                                                            Chairman
 
 Place : Karur
 Date : 21st August, 2012