The Members,
 
 Midfield Industries Limited
 
 The Directors have pleasure in presenting the Twenty First Annual
 Report of your Company together with the Audited Accounts for the
 financial year ended 31.03.2011 and the report of the Auditors thereon.
 
 Financial Highlights
 
                                                              (in Rs.) 
 
 Particulars                                FY 2010-11      FY 2009-10
 
 Total Income                            1,325,686,415     907,051,874
 
 Expenditure                             1,059,569,143     716,308,307
 
 Profit before Tax, Interest and 
 Depreciation                              266,117,272     190,743,567
 
 Less: Depreciation                         16,557,611      15,116,617
 
 Less: Interest                             61,651,300      49,866,604
 
 Profit before tax                         187,908,361     127,760,346
 
 Provision for Income Tax                   55,600,000      44,000,000
 
 Provision for Deferred Tax Liability        6,740,481        (620,064)
 
 Net Profit after Tax                      125,567,880      82,380,410
 
 Profit Brought forward                    229,769,286     147,388,876
 
 Balance available for appropriation       355,337,166     229,769,286
 
 Transferred to General Reserve             36,000,000               -
 
 Provision for Dividend (Rs. 2/- per 
 Equity Share)                              25,642,502               -
 
 Provision for Tax on Dividend               4,259,220               -
 
 Profit carried to Balance Sheet           289,435,444     229,769,286
 
 Operations
 
 Your Directors are pleased to inform you that the Company has made a
 turnover of Rs. 132 crores compared to the turnover of the previous
 year which stood at Rs. 90 crores and achieved a growth of 46%
 
 The Company has achieved Net Profit after Tax of Rs. 12.55 crores
 compared to the Net Profit after tax of Rs. 8.24 crores achieved during
 the previous year and recorded a growth of 52%.
 
 During the year under review the Company has come out with an Initial
 Public Offer (IPO) and the IPO was a great success and the Equity
 Shares of the Company got listed on the Bombay Stock Exchange Limited
 on 4.08.2010.
 
 Your Directors are happy to inform you that the manufacturing facility
 at Sr. No. 5, Hissa No. 1, Vasurikhurd, Tal. Wada.  District - Thane,
 Maharastra has become operational during the year.
 
 New Manufacturing Facilities
 
 Your Company is in the process of setting up:
 
 a.  Manufacturing facility near Rourkela, Odisha to cater to the
 requirements of the customers located in the Eastern region
 
 b.  Manufacturing facility for PET strapping and the same would be
 operational during the second quarter of financial year 2011 -2012.
 
 c.  Plant at Dubai to cater Middle East and African countries.
 
 Corporate Governance
 
 The Corporate Governance Report regarding compliance of the conditions
 of corporate governance by your Company as stipulated in clause 49 of
 the Listing Agreement entered into with The Bombay Stock Exchange
 Limited is annexed to this Report.
 
 Material Changes
 
 There are no material changes affecting the business of the Company
 after the date of the Balance Sheet.
 
 Deposits
 
 During the year under review the Company has not accepted any deposits
 from public as defined under the provisions of Section 58 A of the
 Companies Act, 1956.
 
 Dividend
 
 Your Directors are pleased to recommend a dividend of Rs. 2/- per
 Equity Share of Rs. 10/- for the FY 2010 - 11. The dividend, if
 approved at the ensuing Annual General Meeting will be paid to those
 shareholders whose names appear on the Register of Members of the
 Company as on 23.09. 2011
 
 The total outflow on account payment of dividend for the FY 2010-11
 will beRs. 299.02 lacs.
 
 Transfer to Reserves
 
 Your Directors have proposed to transfer Rs. 360 lacs to the General
 Reserve retaining Rs. 2894 lacs in the Profit and Loss Account.
 
 Directors
 
 Sri K. Ashok Kumar and Sri Kamlesh Kumar Bhargava.  Directors retire by
 rotation and being eligible offer themselves for re appointment. The
 Board recommends their re- appointment.
 
 Company Secretary
 
 Mr. A. Devi Prasad has resigned as the Company Secretary of the Company
 due to his pre occupations with effect from 31.12.2010 and the Board
 has identified and appointed Mr.  Vivek Surana, a qualified member of
 the Institute of Company Secretaries of India as the Company Secretary
 with effect from 01.02.2011
 
 Auditors
 
 M/s Sampath & Ramesh, Chartered Accountants, the Statutory Auditors of
 the Company retire at the conclusion of the ensuing Annual General
 Meeting and are eligible for re-appointment. The Board recommends their
 re-appointment
 
 Personnel
 
 During the year under review, there were no employees drawing
 remuneration in excess of the limits laid down in Section 217(2A) of
 the Companies Act, 1956 read with the Companies (Particulars of
 Employee''s) Rules, 1975.
 
 DIRECTORS'' RESPONSIBILITY STATE- MENT
 
 Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956
 we, the Board of Directors of the Company hereby state:
 
 (i) that in the preparation of the annual accounts for the year ended
 31.03.2011, the applicable accounting standards had been followed along
 with proper explanation relating to material departures
 
 (ii) that we 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 of the profit of the
 Company for that period;
 
 (iii) that we had 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 the Company and for preventing
 and detecting fraud and other irregularities;
 
 (iv) that we had prepared the annual accounts for the year ended
 31.03.2011 on a going concern basis
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 The disclosures required under Section 217(1) (e) of the Companies Act,
 1956 read with Companies (Disclosure of particulars in the Report of
 the Board of Directors) Rules 1988, for the year ended March 31, 2011
 are as follows:
 
 A.  Conservation of Energy
 
 1.  Adequate measures have been taken to conserve energy wherever
 possible.
 
 2.  Additional investments and proposals, if any, being implemented for
 reduction of consumption of energy: NIL
 
 3.  Impact of measures for reduction of energy consumption / energy
 conservation: NIL
 
 B.  Research And Development
 
 1.  Specific areas in which research & development is carried out: NIL
 
 2.  Benefits derived: NIL
 
 3.  Future plan of Action: NIL
 
 4.  Expenditure on R & D: NIL
 
 C.  Technology Absorption
 
 a.  Efforts in brief made towards Technology absorption adoption and
 innovation: NIL
 
 b.  Benefits derived as result of the above efforts e.g.  product
 improvement, cost reduction, production development, import
 substitution etc.: NIL
 
 D.  In case of imported technology, imported during the last 5 years
 reckoned from the beginning of the financial year, following
 information may be furnished
 
 a.  Technology Imported: N. A.
 
 b.  Year of Import: N. A.
 
 c.  Has technology fully absorbed areas where this has not been taken
 place, reasons thereof and plan of action: N. A.
 
 ACKNOWLEDGEMENTS
 
 The Board places a record of appreciation to the Bankers, Government
 and Non Government authorities, Members and Employees of the Company
 for their continued support and confidence in the Company
 
                                      For and on behalf of the Board
 
                                     For Midfield Industries Limited
 
 Place: Hyderabad                               M. Madhu Mohan Reddy
 
 Date: 06.08.2011                       Chairman & Managing Director