The Directors have pleasure in presenting the 20th Annual Report of the
 Company and Audited Accounts for the accounting year ended on December
 31,2010.  
 
 Financial Highlights:                                 (Rs. in million)
 
                                                 31/12/2010  31/12/2009
 
 Sales/Income from Operations
 Domestic (Net)-lncluding Other Operating Income   8,002.27   6,857.34
 Exports                                           9,294.68   6,907.47
 PBDIT                                             2,443.37   2,145.82
 Provision for Taxation (Including FBT)              600.00     382.81
 Deferred Tax Credit                                (15.72)     (8.82)
 PAT                                               1,418.40   1,125.49
 Balance Brought Forward                           2,015.17   1,564.27
 Profits Available for Appropriation               3,433.57   2,689.76 
 Appropriations
 Proposed Equity Dividend                            149.23     149.23
 Tax on Proposed Equity Dividend #                    24.21      25.36
 Transfer to General Reserve                         500.00     500.00
 Surplus Carried to Balance Sheet                  2,760.13   2,015.17 
 
 # including Dividend Distribution tax credit of Rs. 0.58 million as
 explained below.
 
 Dividend:
 
 The Board of Directors has recommended dividend of Rs. 6/- per share (@
 60%), (Previous year Rs. 6/- per share (@60%)), on 24871941 Equity
 Shares of Rs. 10/- each fully paid-up, aggregating to Rs. 174.02
 million including Dividend Distribution Tax of Rs. 24.79 million. Due
 to budgetary changes in Surcharge rate in 2010 from 10% to 7.5%, the
 liability of Dividend Distribution Tax, Surcharge, Education cess and
 Secondary & Higher Secondary cess thereon was lower by Rs. 0.58 million
 at the time of payment. The dividend for the accounting year ended
 December 31, 2010 will not be taxable in the hands of the Members.
 
 Performance Review:
 
 Consolidated Net Sales grew by 21%, and stood at Rs. 19,582 million led
 by 17% growth in domestic market, 10% (in dollar terms) growth in US
 market, 20% growth in Rest of the World market (excluding USA,
 hubergroup and India), 39% growth in revenue from huber group worldwide
 and additional business inclusion resulting from acquisition of
 Hostmann-Steinberg New Zealand Limited and Hostmann-Steinberg Australia
 Pty. Ltd., during the year.
 
 Domestic Sales:
 
 The Domestic Net Sales and Other Operating Income grew by 17% at Rs.
 8,002 million. Your Company continues to maintain its leadership
 position in the Indian Printing Inks market due to superior products
 and advantage of hubergroup superior technology.
 
 Exports:
 
 Consolidated International Sales stood at Rs. 11,580 million
 contributing 59% of total Net Sales and Other Operating Income.  The
 sales of US subsidiary stood at US$ 82 million for the year compared to
 sales of US$ 75 million of the previous year. The sales of
 Hostmann-Steinberg New Zealand Limited and Hostmann-Steinberg Australia
 Pty. Ltd. amounting to Rs. 36.67 million & Rs. 107.45 million,
 respectively, has been considered, for the year, for consolidated
 accounts.  Companys sales to Rest of the World stood at Rs. 1,177
 million for the year compared to Rs. 981 million in the previous year.
 
 Profitability:
 
 During the year, the Companys consolidated EBIDTA stood at Rs. 2,576
 million compared to Rs. 2,110 million for the previous year. The EBIDTA
 was higher due to higher volumes backed by improvements in
 manufacturing process and better price realisations. The Net Profits at
 consolidated level was Rs. 1,331 million compared to Net Profit of Rs.
 968 million for the previous year.
 
 Finance:
 
 During the year, the consolidated interest was lower by Rs. 108 Million
 and stood at Rs. 77 million compared to Rs. 185 million for the
 previous year, mainly due to exchange gain of Rs. 50 million on
 revaluation of foreign currency loans in current year.  Overall
 consolidated debt increased by Rs. 855 Million and stood at Rs. 3,092
 Million as on December 31, 2010. Sales to capital employed stood at 1.9
 times as compared to 2.0 times in previous year and Sales to Net
 Working Capital stood at 3.3 times from 4.0 times.
 
 Strategic Investments:
 
 During the year Micro Inks (Hong Kong) Limited, a subsidiary of the
 Companys subsidiary has been dissolved effective May 11, 2010.  During
 the year, the Company has acquired entire Common Stocks/Share Capital
 of Hostmann-Steinberg New Zealand Limited at a total consideration of
 US$ 4.132 Million and Hostmann-Steinberg Australia Pty. Ltd. at a total
 consideration of US$ 14.473 Million and thereby both the companies
 became subsidiary company of the Company with effect from December
 1,2010.  The statement pursuant to Section 212 of the Companies Act,
 1956, is annexed to this Annual Report.
 
 Outlook:
 
 There are visible signs of revival in global economy and Indian economy
 continues its growth momentum. However due to spurt in commodity prices
 and political disturbances in Middle-East and North Africa pressure on
 margin will continue due to increased input cost.
 
 Consolidation of Accounts:
 
 The audited Consolidated Accounts and Cash Flow Statements, comprising
 of the Company and its all Subsidiary Companies appear in this Annual
 Report together with the Auditors Report on the Consolidated Accounts.
 The Consolidated Accounts have been prepared in accordance with
 Accounting Standard 21 prescribed by the Institute of Chartered
 Accountants of India.  The Government of India, Ministry of Company
 Affairs, New Delhi, vide its letter No.47/110/2011-CL-lll dated
 February 9, 2011, has granted an exemption under Section 212 of the
 Companies Act, 1956, to the Company from annexing to this Report, the
 Annual Reports of all the Subsidiaries of the Company for the year
 ended on December 31, 2010. However, if any Member of the Company so
 desires, the Company will make available copies of full accounts of the
 Subsidiaries of the Company.
 
 Exit Offer of Equity Shares of the Company:
 
 In accordance with the Regulation 21 of the Securities and Exchange
 Board of India (Delisting of Equity Shares) Regulations, 2009, the
 Acquire (MHM Holding GmbH, one of the Promoter of the Company) has
 given an exit opportunity to the public shareholders holding shares in
 the Company at the Exit Price of Rs. 640/- per shares. The Exit offer
 shall be open until April 13, 2011. Members are aware that the Stock
 Exchanges have discontinued trading in equity shares of the Company
 effective April 6, 2010 and equity shares of the Company have been
 delisted from all the Stock Exchanges effective April 13,2010.
 
 Corporate Social Responsibility:
 
 Your Company continued to contribute to society through donations and
 community development initiatives.
 
 Insurance:
 
 The Company has taken adequate insurance to cover risk to its assets,
 profits and standing charges as well as employees. It has also taken
 cover against liability to public under Public Liability Insurance Act,
 1991. The above covers have been taken based on internal risk study.
 
 Directors Responsibility:
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors
 confirm that to the best of their knowledge and belief:
 
 1.  in the preparation of the annual accounts, the applicable
 accounting standards have been followed;
 
 2.  appropriate accounting policies have been selected and applied
 consistently and have 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 December 31, 2010 and for the profit and loss
 account for the year ended on that date;
 
 3.  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 safe guarding the assets of the Company and
 for preventing and detecting fraud and other irregularities and
 
 4.  The annual accounts have been prepared on a going concern basis.
 
 Energy, Technology & Foreign Exchange:
 
 As required under Section 217(1) (e) of the Companies Act, 1956, read
 with the Companies (Disclosure of Particulars in the Report of the
 Board of Directors) Rules, 1988, the information relating to
 conservation of energy, technology absorption and foreign exchange
 earnings and outgo is annexed.
 
 Employees:
 
 The Company acknowledges the commitment and contribution of all its
 employees to the Companys growth. Our industrial relations continued
 to be excellent.  Information as per amended Section 217(2A) of the
 Companies Act, 1956, read with the Companies (Particulars of Employees)
 Rules, 1975, forms part of this Report. However, as per the provisions
 of Section 219(1) (b) (iv) of the Companies Act, 1956, the Report and
 the Accounts are being sent to all the shareholders, excluding the
 statement of particulars under Section 217(2A). Any shareholder,
 interested in obtaining a copy of this statement, may write to the Vice
 President & Company Secretary at the Registered Office of the Company.
 
 Directors:
 
 In accordance with the Companies Act, 1956, and the Articles of
 Association of the Company, Ms. Ursula Borgmann, Mr. Ashwani Bhardwaj
 and Mr. Hasmukh Shah retire by rotation and are eligible for
 re-appointment. These appointments form part of the Notice of the 20*
 Annual General Meeting and the Resolutions are recommended for your
 approval.
 
 During the period, Mr. Heinrich Ringer had resigned as an Alternate
 Director to Ms. Ursula Borgmann with effect from April 30, 2010 and was
 appointed as an Additional Director of the Company effective May 1,
 2010 and was confirmed as a Director in the Annual General Meeting held
 on July 29, 2010.
 
 During the period Mr. K. K. Unni had resigned as an Alternate Director
 to Mr. Anjum Bilakhia with effect from April 30, 2010 and has been
 appointed as an Additional Director of the Company effective May 1,2010
 and was confirmed as a Director in the Annual General Meeting held on
 July 29, 2010.
 
 Auditors:
 
 Messrs Deloitte Haskins & Sells, Chartered Accountants, the Auditors of
 the Company will retire at the conclusion of the 20th Annual General
 Meeting and offer themselves for re-appointment. A letter from them
 confirming that if they are re-appointed as the Auditors of the
 Company, such appointment will be in accordance with the provisions of
 Section 224 (1B) of the Companies Act, 1956 and they are not
 disqualified in terms of Section 226 of the Companies Act, 1956, from
 being appointed as the Statutory Auditors of the Company, has been
 received.
 
 Acknowledgement:
 
 The Board of Directors takes this opportunity to express its sincere
 appreciation for the continued support and confidence received from the
 Companys customers, distributors, suppliers, bankers, shareholders and
 other business associates.
 
 Your Directors places on record their deep appreciation of the
 dedicated efforts and contribution of the employees at all levels and
 look forward to their continued support in the future as well.
 
                                       For and on Behalf of the Board
 Place : Mumbai                                Anjum Bilakhia
 Date  : February 19, 2011                        Chairman