Dear Members,
 
 The Directors have pleasure in presenting the 24th Annual Report of
 the Company together with the Audited Accounts for the financial Year
 ended 31st March 2011.
 
 FINANCIAL RESULTS                              (Rs. in Lakhs)
 
                                             2010-11       2009-10
 
 Cross Turnover                             23468.84      16402.68
 
 Profit before Depreciation, interest 
 and Taxes.                                  5486.67       3715.85
 
 Depreciation/Amortization                   1019.31        414,52
 
 Interest                                     434.94        182,29
 
 Profit before Tax                           4032.42       3119,04
 
 Provision for Tax/Deferred Tax               215.09        212.51
 
 Net Profit                                  4247.51       2906.53
 
 Balance brought forward from Previous Year  5366.68       3779.70
 
 Balance available for appropriation         9614.19       6686.24 
 
 Appropriations:
 
 Proposed Dividend including Tax              398,13        319,55
 
 Transfer to General Reserve                 1000.00       1000,00
 
 Balance carried to Balance Sheet            8216.07       5366.68
 
 FINANCIAL HIGHLIGHTS
 
 During the year, your Company''s business has significantly improved in
 all aspects - revenues, operating income, profit before tax, profit
 after tax and earnings per share. The gross turnover growth of over 43%
 at Rs 23468.84 lakhs was a reflection of success of our strategic
 initiatives for quantum jump in seed sales. Net Profit after Tax at
 Rs.4247.51 lakhs was higher by 46,13% over Rs.2906,53 lakhs than in the
 previous year. It isa new high for your Company Earning
 PerShare(EPS)@Rs, 31.00 compared to Rs.21.21of last year,
 
 Your Company is striving hard for accelerated growth in revenues as
 well as earnings. Sustainable medium and long- term goals are being
 envisioned and pursued. Our customer focus will always be in tandem
 with our t stakeholder''s interest. Investors in Kaveri can look forward
 for robust growth,
 
 Your Company will always endeavor to leverage it''s technological and
 product strength to enhance augmentation of the company. This
 sustainable growth model is being further augmented with innovation and
 initiatives that will further growth of the company.
 
 REVIEW OF OPERATIONS
 
 Your Company is makingall out efforts toensure that the products
 developed are in tune with the needsof the farmers and initiated
 several steps to mark its presence in the premium markets. Reducing the
 marketing lag and improve the reach of Company''s products are some of
 the current initiatives that are expected to help the Company to be a
 cost effective producer that enable your Company to meet the challenges
 of competitive markets in the future.
 
 Your Company continues to rein enviably in its product portfolio - both
 in number and performance. The Company''s premier BT cotton hybrids -
 Jadoo and Jackpot, and bajra hybrid- Super Boss launched earlier are
 doing good in the seed market and in the farmer''s fields. Sampada (red
 gram) Sampoorna (paddy) have also created niche markets, Based on
 National Evaluation process, the ICAR has identified Company''s maize
 hybrid KMH 3712 for Punjab, Delhi, Haryana, Western U.P., Rajasthan,
 Gujarat, Madhya Pradesh, Bihar, and W. Bengal & Eastern LLP. Four of
 our paddy hybrids KPH216,KPH 371, KPH272&KPH 199 excelled in National
 trialsand advanced to next stage of evaluation. Ina similar vein, X 563
 (Bajra) and KSH 950 (Jowar) are the hybrids of promise and likely to
 hit the market soon. Some success has been achieved in vegetable
 breeding; Tomato hybrids- KTH 104, KTH 204, Okra hybrids - Kaveri Nadia
 Kaveri Leena hold promise and hope for the Company''s business.
 Significant progress has been made in breeding yellow vein mosaic virus
 resistant Okra hybrids.
 
 Germplasm or the genetic wealth is the most vital asset of the Company.
 The vast collection of germplasm that accrued over the years has been
 streamlined for conserving in Gene Bank built in as part of the newly
 commissioned cold storage unit and Seed Bank at Pamulaparty. Realizing
 the importance of multi environment evaluation of Company''s hybrids,
 the Company strengthened the system of out reach evaluation tlvrough
 organizing multi location trials. In order to establish legal ownership
 of the Company''s hybrids and their parental lines, efforts are underway
 to registering the lines with PPV&FR authority. Till date, ~I4Q
 applications were Hied with PPV&FRA of which twenty cleared through DUS
 testing.
 
 OUTLOOK
 
 To augment finite natural resources -land and water, the Company has
 embarked on plans to bring more area for seed production of Foundation
 seed with judicious use of rain water. Towards this goal, more farm
 area has been brought under plough for commercial production of seed
 and intensified efforts on rain water harvest for use in new cropped
 area.
 
 The twin challenges in current agriculture is to increase the
 production and productivity of field crops through a green growth
 strategy. Concurrently, your company is giving emphasis to high value
 agriculture by way of protective cultivation of premium vegetables.
 Demand for vegetables at home and for export is increasing. In view of
 the demand for higher quality and more variety in vegetables, the
 Company is laying new thrust on vegetable breeding with emphasis on
 tomato, okra and chilly. Your Company has plans to grow high value
 vegetables for export. Despite stiff opposition to GM technology,
 environmental, quality and production efficiency benefits will
 eventually tilt in favour of wide adoption of the transgenic crops in
 the country. Deregulation of Blbrinjal is on the cards. With Btbrinjal
 getting clearance soon for commercial planting, a host of GM crops
 follow suit, ushering an era of biotech crops. Biotechnology is
 destined to steer the breeding process in the near future. Realising
 this, your Company has built state of the art transgenic containment
 hays and put into operation at Pamulaparthy. Building of mega
 greenhouses for Flori and Olericulture are in progress as the Company
 is loo king forward for business in overseas markets. Hybrid rice with
 huge tradeoff is still the major attraction for the Company''s
 investment. Production problems of quality seed production of Hybrid
 paddy seed are being tackled. Your company''s R&D is geared to absorb
 and adopt new technologies in crop breeding. Being India''s leadingSeed
 Company, the focus centers round conventional breeding and breeding by
 design using biotechnology to advance the yield frontier and stabilize
 through incorporation of genetic resistance to biotic and abiotic
 stresses. Your Company is striving for new and sustained levels of
 recognition exemplified by the performance of pipe line hybrids in All
 India Coordinated Trials and commercial launching of premier cotton,
 bajra and maize hybrids. Conjunct use of Breeding and Biotechnology is
 on the anvil for developing biotic resistant rice hybrids,
 
 RESEARCH & DEVELOPMENT
 
 Three years after the food crisis in 2007, the prices of basic food
 items are again rising rapidly, fueling new concerns about the food
 security of developing countries. The international prices of maize and
 wheat have almost doubled in 201 tl -2011 India''s biggest challenge is
 to ensure food and nutritional security to its masses. Investment in
 Agriculture R&D is the effective way of ensuring food security and
 economic growth. There is emphasis for another green revolution through
 sustainable intensification of agriculture. This implies a green growth
 strategy (GSS) that ensures productivity growth through a sustainable
 path consistent with long term environmental safety. Seed is the key
 player in this endeavour. Being the carrier of genetic potential,
 contributes to productivity increase thereby creating revenue pathways
 to farmers. The pressing need is for quality seed of varieties and
 hybrids that are not only high yielding but resilient to less
 inputs-water,fertilizersetc.Thusfood security isinterwoven with the
 seed security.
 
 The Kaveri Seed Company''s R&D targeted its research for developing
 hybrids that excel in the market with quality assurance. Genetically
 enhanced premium quality seed has been the hallmark of Kaveri for more
 than three decades, The Company with vast experience in seed production
 of major agricultural crops backed by a very strong in-house R&D
 programme for crops-maize, cotton, sunflower, bajra, sorghum, rice and
 several vegetable crops nurtured a competitive edge in seed and
 agribusiness. With over 600 acres of farm land owned by the company and
 dedicated team of researchers, the company is conscious of the changing
 needs of farmers and consumers to design and develop productive hybrids
 that fetch rewarding returns. Being India''s leading Seed Company, the
 R&D focus centers round conventional breeding and breeding In design
 using biotechnology to advance the yield frontier and stabilize through
 incorporation of genetic resistance tobiotic and abiotic stresses.
 During the year under report, our R&D strived hard to accelerate to new
 and sustained levels of innovation as exemplified by the performance of
 pipe line hybrids in All India Coordinated Trials and commercial
 launching of premier hybrids.
 
 DIVIDEND
 
 Your Directors are pleased to recommend a dividend of Rs.2.50/- per
 Equity Share of Rs.10/- each (25%) for the financial year 2010-11. The
 dividend, on approved at the ensuing Annual General Meeting, will be
 paid to the shareholders whose names appear in the register of the
 Company as on 24th September 2011. The dividend would be tax-free in
 the hands of the shareholders.
 
 CORPORATE GOV ERNANCE
 
 The certificate of the Statutory Auditor M/s. P.R. Reddy & Co.,
 confirming of compliance of conditions of Corporate Governance as
 stiputa ted under Ctause49 of the Us ting Agreement with
 theStockExchaugesin India is annexed.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 A detailed report on the Management Discussion and Analysis is provided
 in a separate section elsewhere in this Annual Report.
 
 FIXED DEPOSITS
 
 Your Company has not accepted any deposits under Section 58A of the
 Companies Act, 1956 and hence no amount of principal or interest was
 out standing as on date of this Annual Report.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956, read with
 the Articles of Association of the Company, Dr. G. Pawan, Dr. Y.L. Nene
 and Sri M. Srikanth Reddy, Directors retire by rotation at the
 forthcoming Annual General Meeting scheduled on 27th September 2011
 will be eligible for re-appointment. The brief profiles of Dr, C.
 Pawan, Dr. Y.L. Nene and Sri M. Srikanth Reddy are given in the
 Corporate Governance section of the Annual Report for information.
 
 The Board of Directors at their meeting held on 10th August 2011 had
 re-appointed Sri G,V. Bhaskar Rao, Managing Director designated as
 Chairman, Smt. G, Vanaja Devi, Sri R, Venu Manohar Rao, Sri C
 Vamsheedhar and Sri C Mithun Grand, Whole time Directors of the Company
 for a further period of five years with effect from 15th Movember 2011.
 These re-appointments are subjected to shareholder''s approval and (he
 resolutions to this effect have accordingly been included in the notice
 convening 24th Annual General Meeting scheduled for 27th September
 2011, A brief profile of the above said Directors are provided in the
 section on Corporate Governance.
 
 AUDITORS
 
 The term of Statutory Auditors of the Company M/s. P.R. Reddy & Co.
 Chartered Accountants, expires with the ensuing Annual General Meeting.
 However, they expressed willingness to serve as Statutory Auditors for
 another year. The Audit Committee and the Board of Directors recommend
 reappointment of M/s. P.R, Reddy & Co., Statutory Auditors of the
 Company for the financial year 2011-12 for shareholder''s approval.
 
 RECONCILIATION OF SHARE CAPITAL AUDIT
 
 A Reconciliation of Share Capital Audit for the year 2010-11 was
 carried out hy Mr. A.N. Sarma, Practicing Company Secretary. The said
 Reconciliation of Share Capital audit confirms that the Company has
 complied with all the applicable provisions of the Companies Act, 1956,
 Depositories Act, 19%, Listing Agreements with the Stock Exchanges,
 Securities Contracts (Regulation) Act, 1996 and all the regulations of
 SEBI as applicable to the Company, including the Securilies and
 Exchange Board of India (Substantial Acquisition of Shares and
 Takeovers) Regulations, 1997 and the Securities and Exchange Board of
 India (Prohibition of Insider Trading) Regulations, 1992,
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
 1956 as amended, your Directors confirm as under:
 
 i) In preparation of Annual Accounts, the applicable Accounting
 Standards has been followed along with proper explanation relating to
 material departures;
 
 ii) We have 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 2010-11 and of profit of
 the Company for that period;
 
 iii) We have taken proper and sufficient care for the maintenance of
 adequate accounting records in accordance with the provisions of this
 Act for safeguarding the assets of tire Company and for preventing and
 detecting fraud and otherirregularities;
 
 iv) We have prepared the annual accounts on an on-going concern basis
 
 PARTICULARS OF EMPLOYEES
 
 The particulars of employees as required to be disclosed in accordance
 with the provisions of Section 217(2A) of the Companies Act, 1956 and
 the Companies (Particulars of Employees) Rules, 1975 as amended are
 annexed to the Directors'' Report. However, as per the provisions of
 Section 219(1) (b) (iv)of the Companies Act, 1956, the Report and
 Accounts are being sent to all the shareholders of the Company
 excluding the aforesaid information.  Any shareholder interested in
 obtaining such particulars may write to the Company Secretary.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 Information in accordance with the provisions of 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 is given
 in Annexure I which forms part of this Report.
 
 EMPLOYEE STOCK OPTION SCHEME
 
 The Members of the Company through Postal Ballot on 9th January 2009
 have approved formulation of Employee Stock Option Scheme 2009 (KSCL
 ESOP 2009) to the eligible employees of the Company. Further, the
 modification was approved by the members in their Annual General
 Meeting held on 22nd September 2009. Pursuant the Scheme, the Company
 has granted 1,37,000 options on 28th January 2010 to the eligible
 Employees of the Company at a price of Rs.170/- per option, being below
 the market price. Each option entitles the holder thereof to apply for
 and be allotted an ordinary share of the Company of the nominal value
 of Rs.10/- each, upon payment of the exercise price during the exercise
 period. During the year, no employee was exercised the options, hence,
 there is no options were allotted under the Scheme. Details of the
 options granted and lapsed up to 31st March 2011 are set out in the
 Annexure II to this Report, as required under Clause 12 of the
 Securities and Exchange Board of India (Employee Stock Options Scheme
 and Employee Stock Purchase Scheme) Guidelines, 1999.
 
 INDUSTRIAL RELATIONS
 
 The Company enjoyed cordial relations with its employees at all levels.
 Your Directors record their appreciation of the support and
 co-operation of all employees and count on them for the accelerated
 growth of the Company.
 
 ACKNOWLEDGEMENTS
 
 Your Directors place on record their sincere appreciation for the
 dedication and commitment of the employees at all levels and their
 significant contribution to your Company''s growth. Your Company is
 grateful to the Distributors, Dealers, and Customers for their trust,
 support and encouragement, Your Directors thank the Banks, Financial
 Institutions, Government Departments and Shareholders and look forward
 for renewed support in all our future endeavors.
 
                                       For and on behalf of the Board
 
                                     sd/-                      sd/-
 
 Secunderabad,                  G VANAJA DEVI        G.V. BHASKAR RAO
 
 10th August 2011         Whole-time Director       Managing Director