The Members
 
 The Directors have pleasure in presenting the Twenty Fourth Annual
 Report of the Company together with the Audited Accounts for the year
 ended 31st March 2011.
 
 Operating Results
 
 Your Company''s performance during the year as compared with that during
 the previous year is summarised below:
 
                                   (Rs in Lakhs)
 Particulars                 2010-11     2009-10
 
 Sales / Income from           57008       65287
 Operations
 
 Other Income                    527         866
 
 Total Income                  57535       66153
 
 Profit Before Taxation          645        9127
 
 Less Provision for              337        3151
 Taxation
 
 Profit After Taxation           308        5976
 
 Add: Surplus brought          14360        9856
 forward
 
 Amount available for          14668       15832
 appropriation
 
 Appropriations
 
 Your Directors recommend 
 appropriations as under
 
 Transfer to General              35         600
 Reserve
 
 Dividend
 
 - Interim Paid                  223         298
 
 - Interim Corporate              38          51 
 Dividend Tax
 
 - Final (Proposed)                -         447
 
 - Provision for Corporate         -          76
 Dividend Tax
 
 Surplus Carried Forward       14372       14360
 
 Total Appropriations          14668       15832
 
 
 Performance
 
 During the year under review, Sales were Rs.  570.08 Crores as compared
 to Rs. 652.87 Crores during the previous year. The Profit after Tax for
 the year under review was 3.08 Crores as compared to Rs. 59.76 Crores
 during the previous year.  The cash profits for the year under review
 were Rs.28.20 Crores as compared to Rs. 80.18 Crores during the
 previous year. The main reason for the reduced profits is the reduction
 in export orders coupled with severe curtailment in production at
 Srikakulam due to contract labour disputes .Interest cost have been
 higher due to capex in Srikakulam and Working Capital. Certain one time
 write off have also been made in the current year.
 
 Domestic & Export Markets
 
 Agriculture in India witnessed buoyancy in acreage of cotton and soya
 at the expense of some cereals and a static level of activity in paddy
 and wheat.  Climatically, while inadequacy of water delayed crops in
 some states in the North during Kharif, the coastal areas of the
 southern India were affected by unseasonal rains in Rabi. In terms of
 product categories herbicides continued to grow due to depressed
 manpower availability, fungicides too registered a growth and usage of
 insecticides showed a nominal increase.
 
 The growth of domestic sales by your company was in line with the
 overall increase in the Indian market for crop protection chemicals
 during the year at around 10%. Continued high inventory levels of
 company''s key product across the major export markets, coupled with
 depressed demand due to lower fungal attacks in major user countries
 during most of the calendar year of 2010, resulted in a deep fall in
 export volumes. The last quarter of the year saw the market off-takes
 return to the original levels and consequently the export business
 witnessed a strong upswing. However, the conversion of these orders to
 business was not complete in the last quarter due to the constraints
 posed by the labour situation in the plant manufacturing technicals.
 
 Your company has commenced firming up enhanced export volumes for a few
 key molecules with its customers and also has initiated necessary steps
 to broaden its portfolio to protect it from the effects of seasonal
 vagaries in the world markets. Addition of a few pesticides and fine
 chemicals to the product range for the next year is in process. The out
 look for the company in the export segment looks optimistic during 2011.
 
 
 Dividend
 
 The Board of Directors of the Company at their meetings held on 29th
 October, 2010 had declared interim dividends aggregating to Rs.1.50 for
 each equity share Rs. 10/-. The dividends were paid to the shareholders
 on due dates. No further dividend is being proposed in view of the
 performance of the Company.
 
 Change in the Registered Office
 
 Your directors informed that during the year the Registered Office of
 your Company has been shifted from Plot No.61 ,Nagarjuna Hills,
 Panjagutta, Hyderabad to Plot No.l2-A, C Block, Lakshmi Towers,
 No.8-2-248/1/7/78, Nagarjuna Hills, Panjagutta, Hyderabad-500 082 which
 is within State of Local limits of Andhra Pradesh.
 
 Plant Operations
 
 Your company received certifications ISO 9001:2008, ISO 14001:2004 and
 OHSAS 18001:2007 in the areas of Quality, Environment and Safety and
 Occupational Health Management Systems respectively .
 
 A comprehensive evaluation of debottlenecking areas in all the plants
 was carried out during the year. Implementation of the recommendations
 in 2011 is expected to result in enhanced productivity in operations
 and place your company in a stronger position to exploit the
 opportunities presented by the market in the coming years.
 
 At Srikakulam, a major step towards efficient effluent management was
 taken during the year by the installation and commissioning of a Zero
 Liquid Discharge (ZLD) facility at a cost of Rs.24.06 Crores.  The ZLD
 project bears witness to your company''s endeavour to be a responsible
 corporate citizen as well as builds in certain amount of flexibility to
 manufacture a larger portfolio of products for which necessary
 clearances were obtained during the year. However, in an atmosphere of
 unrest in the district, your company too suffered severe curtailment of
 operations in the second half of the year bringing a major constraint
 to the execution of orders primarily from export markets and domestic
 bulk buyers. Normalcy in operations was attained towards the very end
 of the year.
 
 The operations of the formulating units at Ethakota and Shadnagar
 continued to be normal. Since they cater to a large domestic customer
 base, a series of initiatives in the areas of production, quality
 control and supply chain have been taken to significantly enhance
 customer service.
 
 The company informed that it has put up 3 no. of wind turbine
 generators (WTG) of 2.1 MW each totally of 6.3 MW in Tirunelveli Dist.,
 Tamilnadu with cost of Rs. 34 crores and the estimated power generation
 is 46 lakhs KWH/PA per WTG.  The Company has entered into power
 purchase agreement with Tamilnadu Electricity Board.
 
 Directors
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company Mr. P.K Mallik , Mr. K.S Raju ,
 Mr.Sudhakar Kudva and Mr. R.S Nanda, Directors of the Company will be
 retiring by rotation at the forthcoming Annual General Meeting and are
 eligible for re- appointment. During the Financial Year Mr. CM.  Ashok
 Muni resigned as Director & COO of the Company.
 
 As required under the provisions of 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 reports and
 accounts are being sent to all the Members without the statement of
 particulars under Section 217(2A).  Any Member interested in obtaining
 a copy of this statement may write to the Company Secretary at the
 Registered Office of the Company.
 
 Strategic Investment
 
 Your Company proposes to start a wholly owned overseas subsidiary in
 Australia for the purpose of applying and holding new product
 registrations for the Company''s products as well as trade in molecules
 for which market exits in the Country .
 
 Environment Protection:
 
 Your Company has been continuously committed to the environment
 protection and responsible care for all its stake holders. It is also
 driven as a corporate culture through its various welfare activities.
 
 Your Company has been recommended ISO 9001:2008 certification
 accreditation for its proven standards covering Quality , Environment,
 Safety and Health.
 
 Energy Conservation, Technology Absorption and Foreign Exchange
 earnings and outgo
 
 Disclosures required under the provisions of Section 217 (1) (e) of the
 Act relating to conservation of energy, technology absorption and
 foreign exchange outgo and earning, in terms of the Companies
 (Disclosure of particulars in the report of the Board of Directors)
 Rules 1988, are set out in a separate statement attached hereto and
 forms part of this report.
 
 Auditors
 
 M/s. M Bhaskara Rao & Company, Chartered Accountants, Hyderabad, the
 Company''s Auditors, retire at the conclusion of the ensuing Annual
 General Meeting. They have signified their willingness to accept
 re-appointment and have further confirmed their eligibility under
 Section 224(1-B) of the Companies Act, 1956.
 
 Directors'' Responsibility Statement
 
 1.  Pursuant to the requirement under Section 217(2AA) of the Companies
 Act, 1956, with respect to Directors Responsibility Statement, it is
 hereby confirmed that:
 
 2.  In the preparation of the annual accounts the applicable accounting
 standards have been followed along with proper explanations relating to
 material departures;
 
 3.  The Directors 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 as at 31st March, 2011 and of the profit of the Company
 for the year ended on that date.
 
 4.  The Directors have 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; and
 
 5. The Directors have prepared the annual accounts of the Company on a
 ''going concern'' basis.
 
 
 Personnel
 
 Industrial relations at the factory and at Head Office continued to be
 cordial.
 
 Corporate Governance
 
 A separate section on Corporate Governance and a Certificate from the
 Auditors of the Company regarding compliance of conditions of Corporate
 Governance as stipulated under Clause 49 of the Listing Agreement with
 the Stock Exchange forms part of the Annual Report.
 
 Management''s Discussion and Analysis Report
 
 Management''s Discussion and Analysis Report for the year under review,
 as stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges in India, is presented in a separate section forming part of
 the Annual Report.
 
 Acknowledgement
 
 Your Directors wish to place on record their appreciation of the
 support, co-operation and assistance received from the Customers,
 Government authorities, State Bank of India, HDFC Bank Limited, ICICI
 Bank Limited,, IDBI Bank Limited and New India Co-Operative Bank Ltd.,
 Mumbai , Shareholders, Suppliers, Employees, Associates and the
 community in the vicinity of the plants.
 
                                               On behalf of the Board
 
                                               Dr. Nitish K Sen Gupta
                                                             Chairman
 
 Place: Hyderabad 
 Date: 11th May, 2011