To
 
 The Members 
 Karuturi Global Limited 
 Bangalore
 
 The Directors have pleasure in presenting the Sixteenth Annual Report
 along with the audited accounts of the Company for the financial year
 ended 31st March, 2011.
 
 FINANCIAL RESULTS:
 
 On a consolidation basis, the financial results for the year of your
 Company stood as follows:
 
                                        (Rs. in lacs)
 
  Particulars            2010-11             2009-10
 
  Total Income           63,872.65           53,381.82
 
  Profit before 
  depreciation 
  & tax                  21,821.78           19,837.44
 
  Less: 
  Depreciation            6,186.55            5,562.30
 
  Less: 
  Provision for 
  tax                       104.49                8.64
 
  Add: 
  Deferred Tax               33.30             (71.97)
 
  Net Profit 
 after Tax               15,497.44           14,338.47
 
 COMPANY PERFORMANCE:
 
 Income:
 
 Sales – The sales in fiscal 2011 were Rs. 63,872.65 lakhs as against Rs
 5,3381.62 lakhs in fiscal 2010
 
 Expenditure :
 
 Material Expenses – In fiscal 2011 the raw material expenses /
 purchases amounted to Rs. 21,292.82 lakhs constituting 33.34 % of net
 sales while raw material expenses in 2010 were Rs. 16,689.84 lakhs,
 constituting 31.26% % of net sales.
 
 Selling Administrative Expenses – The administrative expenses increased
 to Rs.14,506.48 lakhs in fiscal 2011 as compared to Rs. 13,633.31 lakhs
 in fiscal 2010. As a percentage of net sales it increased to 22.71 % in
 fiscal 2011 from 25.54 % in fiscal 2010.
 
 Employee Expenses - The employee expenses increased from Rs. 3,860.73
 lakhs in fiscal 2010 to Rs. 4,240.53 lakhs in fiscal 2011 . As a
 percentage of net sales it has decreased from being 7.23% of net sales
 in fiscal 2010 to 6.64% of net sales in fiscal 2011.
 
 Financial Charges - Financial charges amounted to Rs.2,660.45 lakhs in
 fiscal 2011 as compared Rs. 649.48 lakhs in fiscal 2010. As a
 percentage of net sales, the financial charges expenses increased from
 1.22% in 2010 to 4.17% in 2011.
 
 Depreciation - Depreciation amounted to Rs. 6,186.55 lakhs in fiscal
 2011 as compared to Rs.5,562.29 in fiscal 2010, representing an
 increase of 11.22% The increase is on account of additional capital
 expenditure in Ethiopia.
 
 Earnings before Interest, Depreciation, Tax and Amortization (EBIDTA) –
 We recorded EBIDTA of Rs.  24,482.23 lakhs in fiscal 2011 as against an
 EBIDTA of Rs. 20,486.92 lakhs in fiscal 2010, with EBIDTA margin
 increased from 37.50% in fiscal 2010 to 37.90 % in fiscal 2011 .
 
 Net Profit after tax and prior period adjustment – Our Net Profit for
 the fiscal 2011 stood at Rs.15,497.44 lakhs as against Rs. 14,338.47
 lakhs for fiscal 2010 .
 
 DIVIDEND:
 
 Continuing with the policy of sharing the profits with the shareholders
 and keeping in mind the ongoing aggressive expansions programs, your
 Board is pleased to recommend Dividend of Re 0.10 per Equity Share of
 Re.1/- each (10%).
 
 MANAGEMENT DISCUSSION AND BUSINESS ANALYSIS :
 
 BUSINESS REVIEW :
 
 During 2010-11, your Company continued to consolidate its leadership
 position in floriculture globally, increased presence in our retail and
 processed foods business and were on track on our ambitious project of
 developing 1,10,000 Ha (1st Phase) of agricultural land in Ethiopia
 across two sites in Gambela and Bako.
 
 AGRICULTURE :
 
 During the year 2010-11 your Company made substantial progress in the
 Agriculture project implementation at the sites at Bako and Gambela in
 Ethiopia.
 
 Your Company has cleared and developed over 50000 Ha of Land in total
 out of which over 20000 Ha of land is ready for sowing and additional
 10000 ha is being made ready. The cultivation of paddy and maize has
 already commenced on more than 12000 Ha.
 
 Your Company has procured Wide range of Machinery and Equipment for
 Land Development, Sowing, Harvesting, Spraying and other processes like
 Mulch Rippers, Trailers, Disc plough, cultivators, maize planters,
 Paddy Planters, puddling wheels etc.. These equipments have been
 procured from all over the world USA, China, India, Israel, Korea,
 Japan from Companies like John Deere, Case, Great Plains, Doosan,
 Volvo, CRI, JCB, Ashok Leyland etc. The company has made a substantial
 progress in setting up irrigation systems. Over 50km of drainage has
 been established, 40km of dykes and over 50 KM of Canals for Irrigation
 have been built. Pumping system for water from Baro River with 22000
 LPS capacity has been setup. Company is developing Infrastructure like
 Roads, Storage, Housing etc.
 
 Sowing maize has started since June 2011 on over 10000Ha. Sugarcane
 nursery has been set up on 100Ha which shall be doubled to 200ha.
 
 In Bako, over 2300Ha of Land is under the process of sowing, spraying
 and weeding. Maize has been planted in Bako.
 
 In Gambella, a nursery was established for Palm, which currently has
 500,000 Palm plants ready for transplanting on 3 - 4,000 Ha of land
 with each hectare having a potential of yielding 5,000 Kgs of crude
 oil.
 
 Your Company has engaged experts from various fields to assist the
 project implementation with their technical knowhow and insights. Bruce
 Crabb from Scotland is working on the Oil palms, Water watch & WAPCO
 team is handling Irrigation and Drainage, Dr. Kaironthe, Former head of
 Cotton research Institute, Nagpur is associated with the cotton
 project, while Mr. Daves from Swaziland is advising on the Equipment
 selection, I-maritime Marine consultancy group has designed the
 logistics for transporting grains from Gambella to Southern Sudan,
 Northern Sudan, Uganda and Kenya. Dr. Biksham from Switzerland is
 guiding the company on SRI and SSI techniques in rice and sugarcane.
 Work has been initiated to take care of the social and environmental
 obligations as per our detailed environmental Impact study that was
 carried out earlier.
 
 Sensing the need for value creation along the agro supply chain, your
 Company is in the process of establishing joint ventures for setting up
 agro processing plants near the farming area. Rice processing unit of 8
 tons per hour, Sugar mill with 5000 tons crushing capacity per day and
 Oil extraction units for oil palm have been planned for the initial
 phases of our harvest.
 
 To tap the local and international markets for supply of produce, your
 Company has been actively building a strong customer network through
 Trade shows and marketing across Ethiopia, South Sudan, Sudan,
 Djibouti, Kenya Tanzania, UGANDA, Middle East. Associations have been
 established for supply of produce to Ethiopian Commodity Exchange,
 USAID''s World Food Program and several other regional and other
 international food processing companies.
 
 The Company agricultural initiatives will not only have a major long
 term impact on the country but also the entire Africa continent. Its
 ability to produce over a little over half a million tons of cereals
 and 100,000 tons of palm oil will significantly alter the demand
 situation in favor of the African consumer.
 
 FLORICULTURE :
 
 Your Company currently enjoys a 9% market share in the European cut
 rose industry and with plans to add another 25 Ha at Wolliso in
 Ethiopia under green houses by 2012. Company has been focusing on
 bringing higher efficiency and developing new markets in the
 Floriculture business. The Company has gained access to new markets in
 the East European Block and Scandinavian countries. These markets have
 given a good response to its Hybrid Tee varieties from Ethiopia. It has
 also seen growth in its Middle East markets. It has long term contracts
 with the global retailing chains for retailing its produce across
 Europe.
 
 In its Kenyan operation the Company has focused on green initiatives
 which include:
 
 Back to Earth program, Recycling of farm green cuttings into organic
 mulch and compost, leading to savings in fertilizers and energy
 requirements.
 
 Bio Gasifiers to convert all uprooted root stalk and plant pruning''s
 into electricity through conversion of trapped gases, with a current
 planned capacity to generate 30000 units of electricity per month and
 100000 units per month in future, use of earthworms to produce 360000
 litres of vermin leacheate per annum. Capacity expansion planned to
 touch 500000 litres per annum so as to bring in additional savings in
 fertilizer usage. Green Planet Program to plant 100,000 drought
 resistant African species of plants on track.
 
 FOOD PROCESSING :
 
 Karuturi Foods Pvt. Ltd. (KFPL) a 100% subsidiary of Karuturi Global
 Lmited is working on doubling its processing capacity. KFPL has added a
 vegetable filling machine which will increase the capacity of bottling
 to double. KFPL has won the bid and has been given the LOA to take over
 on PPP basis 3 farms of the Karnataka Government to develop and grow
 horticultural crop. This will give a big boost to the processing
 business. The factory has been certified by HACCP, FDA and Kosher and
 has also got certified for BRC (Global Standard for Food Safety) which
 will give a big boost to access the USA and Europe markets.
 
 KFPL has participated in leading Food Trade Fairs in Germany, Middle
 East, Russia and Africa and will be participating in the coming year
 too along with USA trade fair as soon as BRC certification is in place.
 The company has achieved a status as multi product, multi pack company
 in the international market. KFPL has developed and exported products
 like Pickled Gherkins, Jalapenos, Cherry Tomatoes, Sliced and Diced
 Gherkins and other vegetables. KFPL has successfully exported products
 in glass jars, cans/tins, pails, drums and even glass jars with shrink
 wrapped form.
 
 KFPL has also entered into domestic markets under its private label as
 well as with other brands for selling into Retail and Food Services.
 
 ISP :
 
 The Internet Service business started looking up after facing a
 downside last year due to the recessionary trends.  Pressure on margins
 continues to haunt all the service providers since there has been
 severe budgetary constraints among the customers especially the IT
 companies who are one of the largest consumers of Internet bandwidth
 and other solutions.
 
 The focus continued in expanding our business within the areas where
 the Company has presence and has created some local POP''s in states
 like Gujarat/Tamil Nadu etc to increase the reach on a franchisee
 model. VOIP business continues to be one of the focus areas to address
 the corporate for both their office and remote needs.
 
 Data center business has been identified as a growth area and efforts
 are on to formalize the same and start offering the services from
 middle of next year. Services could not start from the current year due
 to challenges in terms of availability of requisite power, which can be
 scaled up based on the needs.
 
 Company has strategize to offer retail broadband and a few operators
 with their own cable network have been identified to start the services
 in Bangalore on a pilot.
 
 OUTLOOK :
 
 Our strategic goals this year will be, to increase land productivity in
 agriculture through innovation, continue to build leadership and expand
 our markets in cut flower exports, create new opportunities for our
 food processing and broadband businesses.
 
 INCREASE IN PAID UP CAPITAL:
 
 The total Paid up Capital of the Company as on 31.03.2011 was Rs.
 80,55,07,010/- as compared to Rs. 48,93,05,325/- as on 31.03.2010. This
 increase in Capital is pursuant to conversion of Warrants to the extent
 of Rs. 21.87 crores of Re.1 each, FCCB conversions to the extent of
 Rs.1,25,52,918, conversion of 8,58,666 Employee Stock Options into
 Equity Shares , issue of 3,63,90,101 shares under private equity
 transaction and 4,77,00,000 under laying shares of the GDR issue of USD
 22 Mln.
 
 GROUP COMPANIES:
 
 The following persons constitute the group coming within the definition
 of Group as defined in the Monopolies and Restrictive Trade Practices
 Act, 1969, Who exercise or are established to be in a position to
 exercise control, directly or indirectly over the Company [Section
 2(ef)]:
 
 1.  Mr. Karuturi Sai Ramakrishna
 
 2.  Ms. Karuturi Anitha
 
 3.  Mr. Karuturi Surya Rao (Since demised)
 
 4.  Karuturi Telecom Pvt Ltd., India
 
 5.  Karuturi Floritech Pvt Ltd. India
 
 6.  Karuturi Foods Pvt Ltd., India
 
 7.  Karuturi Flower Express Pvt Ltd, India
 
 8.  Karuturi Overseas Ltd , Dubai
 
 9.  Flower XPress FZE, Dubai
 
 10.  Yeshoda Investments Ltd, Kenya
 
 11.  Rhea Holdings Ltd, Kenya
 
 12.  Surya Holdings Ltd, Kenya
 
 13.  Karuturi Sports Ltd, Kenya.
 
 14.  Karuturi Ltd, Kenya
 
 15.  Karuturi Hospital Ltd, Kenya
 
 16.  Gambella Green Valley Plc , Ethiopia
 
 17.  Ethiopian Meadows Plc, Ethiopia
 
 18.  Karuturi Agro Products Plc., Ethiopia
 
 19.  Surya Blossoms Plc. Ethiopia
 
 DIRECTORS:
 
 The Directors, Mr. Raja Varaprasad Bommidala and Mr.Mahendra Kumar
 Sunkara, retire by rotation and being eligible, offer themselves for
 re-appointment.
 
 AUDIT COMMITTEE:
 
 Audit Committee constituted by the Board of Directors with requisite
 composition to fall in line with the prevailing laws, continued to
 discharge its functions during the year under review.
 
 PERSONNEL:
 
 The Directors wish to place on record their sincere appreciation for
 the services rendered by the employees of the Company at all levels
 both placed in India and Overseas.
 
 EMPLOYEE STOCK OPTION PLAN (ESOP):
 
 The Company has commissioned its maiden Employees Stock Option Plan
 during the year 2006. Through this the Company has converted 30,51,500
 Stock options granted to the eligible employees of the Company into
 Equity Shares during the year 2008 - 09 & 2009 - 10 and for the year
 ended 31.03.2011 the company has converted 8,58,666 stock options into
 Equity Shares.
 
 DEPOSITS:
 
 The Company has not accepted any deposits from the public falling under
 the purview of Section 58A of the Companies Act, 1956.
 
 AUDITORS:
 
 Messrs ISHWAR & GOPAL, Chartered Accountants, the existing Auditors,
 have expressed their willingness to get reappointed at the ensuing
 Annual General Meeting.
 
 The Board of Directors recommends their appointment.
 
 FOREIGN EXCHANGE EARNINGS & OUTFLOW:
 
 The Company earned Rs 2,564.49 lakhs in Foreign Exchange for the year
 ended 31.03.2011 as compared to Rs.  2,021.75 lakhs for the year ended
 31.03.2010.
 
 The out flow in foreign exchanges was Rs.7.51 lakhs as compared to
 Rs.5.64 lakhs during the previous year.
 
 CORPORATE GOVERNANCE:
 
 Pursuant to Clause 49 of the Listing Agreements with the Stock
 Exchanges, CEO&CFO certification on the financials of the Company,
 Report on Corporate Governance, and Auditors'' Report on compliance with
 the Corporate Governance requirements have been included as Annexures
 to this Report.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 Directors State:
 
 i) that in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanations
 relating to material departure;
 
 ii) that 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 the
 profit of the Company for the period;
 
 iii) that 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.
 
 iv) that the Directors had prepared the annual accounts on a ''going
 concern'' basis.
 
 INSURANCE COVERAGE:
 
 The Board reports that the Company has adequately insured all the
 assets of the Company.
 
 ACKNOWLEDGEMENTS:
 
 Your Directors acknowledge with gratitude the confidence reposed on the
 Company by the Shareholders, Bankers, Statutory Authorities, Customers,
 Vendors and all others who deal with the Company and also wish to thank
 all the employees both India and Overseas for their sincere and
 unstinted support extended and expects the same for the years to come.
 
                               By the Order of the Board
 
 Place : Bangalore       Sai Ramakrishna Karuturi Anitha Karuturi
 
 Date : August 12, 2011 Managing Director Director