The Directors have pleasure in presenting the 35th Annual Report
 together with the Audited Accounts of your Company for the year ended
 March 31, 2011.
 
 The Financial Results and the Consolidated Financial Results of the
 Company for the year ended March 31, 2011 are as under:
 
 FINANCIAL RESULTS
 
                                                        Rs. in Crores
 
 Particulars                             2010 - 2011      2009 - 2010 
                                        current year    previous year
 
 Net Sales / Income from Operations          3087.11          1987.91
 
 Other Income                                  13.17            21.77 
 
 Total Expenditure
 
 a.  (Increase) / decrease in Stock           (10.62)           13.45
 
 b.  Consumption of Raw Materials             564.92           406.72
 
 c.  Staff Cost                               143.22            77.34
 
 d.  Purchases-Traded Products               1199.02           533.66
 
 e.  PowerandFuel                             388.14           311.91
 
 f.  Marketing, Operating, Administrative     380.18           285.43 
     and other Expenses
 
 Total                                       2664.86          1628.51
 
 Interest                                     142.39           141.57
 
 Depreciation                                  94.98           128.18
 
 Profit before tax                            198.05           111.42
 
 Provision for tax                             88.71            45.11
 
 Deferred Tax                                 (8.01)           (0 06)
 
 Profit after Tax                             117.35            66.37
 
 Dividend - Preference Shares *             * 0.0019           0.0037
 
 Equity Shares *                             * 42.82            21.41
 
 Balance C/d to Balance Sheet                 233.50           184.52
 
 Paid Up Equity Share Capital (Face           428.18           428.18 
 Value of Rs.10/- per share)
 
 Reserves excluding revaluation               591.99           524.40
 reserve
 
 Earning per share (annualised) - in Rs.        2.74             1.55
 
 - Basic & Diluted
 
 *Proposed
 
 CONSOLIDATED FINANCIAL RESULTS
 
                                                        Rs. in Crores
 
 Particulars                               2010-2011        2009-2010
                                        Current year    previous year
 
 Net Sales / Income from Operations          3087.11          1987.91
 
 Other Income                                  14.01            21.77 
 
 Total Expenditure
 
 a.  (Increase) / decrease in Stock           (10.62)           13.45
 
 b.  Consumption of Raw Materials             564.92           406.72
 
 c.  Staff Cost                               143.25            77.34
 
 d.  Purchases-Traded Products               1199.02           533.66
 
 e.  Power and Fuel                           388.14           311.91
 
 f.  Marketing, Operating, Administrative     380.23           285.48 
     and other Expenses
 
 Total                                       2664.94          1628.56
 
 Interest                                     142.40           141.57
 
 Depreciation                                  94.98           126.18
 
 Profit before tax                            198.80           111.37
 
 Provision for tax                             88.73            45.11
 
 Deferred Tax                                 (8.01)           (0.07)
 
 Profit/(loss) after Tax                      118.08            66.33
 
 Dividend - Preference Shares *             * 0.0019           0.0037
 
 Equity Shares *                             * 42.82            21.41
 
 Balance C/d to Balance Sheet                 229.70           180.00
 
 Paid Up Equity Share Capital (Face           428.18           428.18 
 Value of Rs.10/-per share)
 
 Reserves excluding revaluation reserve       589.47           519.92 
 Earning per share (annualised) - in Rs.
 
 - Basic & Diluted                              2.76             1.55
 
 * Proposed
 
 Consolidated financial statements are also attached along with the
 financial statements of the Company.
 
 DIVIDEND
 
 Your Directors recommend 0.01% dividend on the outstanding preference
 shares to the preference shareholders of the Company for the year ended
 March 31, 2011 amounting to Rs. 18,602/-.  Your Directors after careful
 consideration of the accounts of the Company recommend a dividend of
 Re.1/- (previous year- Rs.0.50 ps.) per equity share to the equity
 shareholders of the Company for the year ended March 31, 2011.
 
 PARTIAL REDEMPTION OF ZERO COUPON DEBENTURES / PREPAYMENT OF FUNDED
 INTEREST TERM LOAN
 
 The Board of Directors of the Company had in the year 2004 allotted
 334,936,238 Zero Coupon Debentures (ZCDs) of the face value of Re. 1/-
 each aggregating Rs.334,936,238/- to banks and financial institutions
 in lieu of the sacrifice of interest made by them pursuant to the debt
 restructuring then carried out.
 
 Certain Banks and Financial Institutions had converted the ZCDs into
 Funded Interest Term Loan (FITL). The above ZCDs / FITL were to be
 redeemed / repaid after the entire debt liabilities are fully repaid in
 March 2016.
 
 During the year under review, pursuant to the directions of the CDR
 Empowered Group, of the CDR Cell of IDBI, Mumbai. your Company had
 redeemed 13,40,89.881 ZCDs and prepaid Rs.8,12,43,293/- FITL As of
 March 31. 2011. 2,64,78,014 ZCDs are outstanding amounting to
 Rs.2,64,78,014/-.
 
 SHARE CAPITAL
 
 The Board of Directors of the Company had in the year 2004 allotted
 37,20,372 0.01% Ordinary Redeemable Preference Shares (ORPS) of
 Rs.100/- each to banks and financial institutions in lieu of the
 sacrifice of interest made by them pursuant to the debt restructuring
 then carried out.  The said Preference Shares were to be redeemed /
 repaid after the entire debt liabilities are fully repaid in March
 2016.
 
 During the year under review, as per the directions of the CDR
 Monitoring Committee, the Company redeemed 18,60,185 ORPS of Rs.100/-
 each aggregating Rs.18.60 crores.
 
 As of March 31, 2011, 18,60,187 ORPS are outstanding aggregating to
 Rs.18,60,18,700/-.
 
 RESTRUCTURING
 
 Your Board of Directors in order to continue to maintain market
 leadership position, expand the fertilizer business as well as oil
 business and give focused attention to the respective businesses,
 consider it advantageous to implement a Composite Scheme of Arrangement
 and Amalgamation (Scheme) for the company subject to the Company
 obtaining requisite approvals of the shareholders, banks and financial
 institutions and jurisdictional High Courts.
 
 The Scheme envisages the merger of fertilizer business and demerger of
 unlike business resulting in synergies in businesses, inorganic growth
 and capturing the untapped market share by enhancing the product
 portfolio, service offerings, customer base, market positioning apart
 from attracting fresh investment in the respective sectors, The
 implementation of the Scheme would ensure enhancement in the market
 perception and enable your Company to emerge as a stronger market
 player both in the Fertilizer and Micro Irrigation sector and enable
 the shareholders to enjoy the benefits of both the Fertilizer and Oil
 sector by being shareholders in two listed companies namely Kakinada
 Fertilizers Limited (KFL) and Nagarjuna Oil Refinery Limited (NORL).
 
 In consideration of the transfer and vesting of the Oil Business
 Undertaking of NFCL into NORL, NORL shall issue
 
 a) 1 (one) equity share of Re.1/- each fully paid up of NORL for every
 1 (one) equity share of Rs.10/- each fully paid up. held by the equity
 shareholders in NFCL and
 
 b) 1 (One) preference share of Rs.10/- each fully paid up of NORL tor
 every 1 (One) preference shares of Rs.100/- each fully paid up, held by
 the preference shareholders in NFCL.
 
 Pursuant to the merger of residual NFCL and Ikisan into KFL,: KFL shall
 issue
 
 a) 11 (eleven) equity shares of Re.1/- each fully paid up of KFL for
 every 10 (ten) equity shares of Rs.10/- each fully paid up, held by the
 equity shareholders in NFCL and
 
 b) 43 (forty three) equity shares of Re.1/- each fully paid up of KFL
 for every 10 (ten) equity shares of Rs. 10/- each fully paid up, held
 by the equity shareholders in iKisan and
 
 c) 1 (one) preference share of Rs.90/- each fully paid up of KFL for
 every 1 (one) preference shares of Rs.100/- each fully paid up, held by
 the preference shareholders in NFCL
 
 Your directors have to inform that pursuant to the application of the
 company made before the High Court of Andhra Pradesh, Hyderabad, a
 meeting of the Members of the Company had been convened on April 15,
 2011 which approved the Composite Scheme of Arrangement and
 Amalgamation by a majority of 99.83% and 89.45% in value, which
 involves merger of your Company with Kakinada Fertilizers Limited along
 with Ikisan Limited and demerger of the Oil Business of the company
 into an independent company named as Nagarjuna Oil Refinery Limited.
 Your Company has pursuant to the approval of its Members filed the
 requisite petition in the High Court of Andhra Pradesh.  
 
 PLANT OPERATIONS 
 
 Urea
 
 Your Company during the year manufactured 16.55 LMT of Urea as against
 14.82 LMT in the previous year.
 
 Your Company during the year undertook various initiatives for
 improving energy efficiency, safety, health environment, reliability
 and cost reduction.
 
 Micro Irrigation
 
 Your Company achieved a production of 1135 Lakh Mtrs against of 801
 Lakh Mtrs during the previous year.
 
 MARKETING
 
 Urea
 
 Your Company achieved a sale of manufactured urea of 16.48 LMT compared
 to 15.05 LMT in the previous year.
 
 The total urea sales both manufactured and imported was 22.03 LMT
 compared to 21.19 LMT of previous year.
 
 Specialty Fertilizers
 
 Your Company sold 9226 MTS during the year, in comparison with sales of
 8263 MTS during the previous year.
 
 Micro irrigation
 
 Your Company during the year achieved 21.92% growth in sales
 aggregating Rs.110.94 crores as compared with that of the previous year
 (Rs.90.99 crores).
 
 Operations in Africa
 
 Your Company after a detailed analysis and market research consider it
 necessary to explore the opportunities available in Africa. Your
 Company to begin with has set-up a branch office in Nairobi, Kenya, to
 start its International Sales and Marketing operations in Africa. In
 the initial stage, it is proposed to market plant nutrients and
 thereafter foray into Micro Irrigation systems at a later stage.
 
 Your Company also in view of the rapidly growing demand for
 fertilizers, micro nutrients and Micro Irrigation systems in Kenya,
 Burundi, Rwanda, Tanzania, Uganda and other African countries, proposes
 to explore these countries also in a phased manner.
 
 Government Policy
 
 During the year under review the fertilizer industry has seen the
 implementation of the nutrient based subsidy (NBS) scheme for
 phosphatic and potasic fertilizers with the Government fixing the
 subsidy upfront and allowing the producers to fix the farm gate prices.
 The NBS policy is aimed at lowering the subsidy outflow and promote
 balanced use of fertilizers. Despite price hikes as a result of NBS,
 there has been an encouraging demand for these fertilizers.
 
 On the Urea front the country has seen a hike of 10% in MRP and subsidy
 is still computed as per the New Pricing scheme.. In the recent budget
 proposals the government is considering extension of NBS scheme to
 cover Urea. Direct cash transfer of subsidies is being envisaged and a
 Task force has been set up to work out the modalities of the system.
 
 The implementation of the NBS for the Urea sector may be a welcome step
 for the industry in the long run as a market driven system will improve
 efficiencies. The Government needs to address key issues like gas
 availability and pricing and urgently draw up a comprehensive long term
 policy to attract investments in this vital sector.
 
 ENVIRONMENT, SAFETY AND AWARDS
 
 Environment
 
 Your Company continues its mission of protecting the environment and
 has inculcated the concept right down the organization.
 
 Your Company in its quest to continue to protect the environment
 undertook rain harvesting projects at various locations in the Plant.
 
 The statutory compliance of the Company on environmental matters are
 being complied from time to time.
 
 Safety
 
 Your Company on March 11, 2011 completed 11 million accident free man
 hours for the first time since inception.
 
 Your Company also completed the Process Safety Management System and
 undertook actions for obtaining accredition RC 14001 towards
 responsible care management.
 
 Awards
 
 Your Company during the year bagged various prestigious awards, such
 as:
 
 Best Management Award from the Government of Andhra Pradesh, FE - EVI
 Green Business Leadership Best Performer Award for 2009 -10 from M/s.
 Financial Express & Emergent Ventures India Limited, ICC Award - 2010
 from Best Water Resource Management for the year 2009, Award for
 Excellence in Safety for the year 2009 and Platinum Award by the Jury
 of Economic Times and India Manufacturing Excellence Award for the year
 2010.
 
 RESEARCH AND DEVELOPMENT
 
 Your Company has undertaken technology development in Research &
 Development in areas of Plant Nutrition Solutions Technology Platforms
 and Fuels and Feedstocks.
 
 In the area of Plant Nutrition Solutions Technology Platforms, your
 company has initiated programmes in the areas of plant nutrition use
 efficiency with reference to macro, micro and supplements. After a
 thorough technology gap analysis on a need base; some of the programme
 identified are for in-house development, some through sponsored
 research and some licensing technology at early stage to do the pilot
 plant and scale up.
 
 In areas of Fuels and Feedstocks, your company with the support of DBT
 in the first phase of Process Development Unit (PDU 1) implementation
 has developed infrastructure such as instruments, equipments, manpower
 to undertake necessary experiments and also draw-up project milestones.
 
 EMPLOYEE WELFARE ACTIVITIES
 
 Your directors in order to ensure high employee morale, commitment,
 good working environment and differentiate the company from others,
 intends to provide best employee welfare measures so as to ensure
 retention of the scarce talented manpower.
 
 Your directors in this direction, have set-up NFCL Employee Welfare
 Trust, which will provide welfare benefits to the employees and their
 families through the returns received from the investments made in
 various securities.
 
 The promoters and their families will not be eligible to receive any
 benefits from the Trust.
 
 POLICY MATTERS
 
 Your companys endeavor has always been to maintain high levels of
 transparency and accountability to its stakeholders. In this direction,
 various policies mentioned in the Corporate Governance Report have been
 put in place to enable the stakeholders to appreciate the various
 interventions the company has taken in areas connected with the
 stakeholders of the company.
 
 The implementation of these policies are reviewed periodically by the
 Board of Directors and updated from time to time.
 
 The Company has set up a Grievance Redressal Mechanism for all its
 associates. The Grievance Redressal Mechanism is aimed to redress the
 grievances of associates expeditiously to ensure good working
 atmosphere and culture in the organization.
 
 CORPORATE GOVERNANCE
 
 Your company driven by a desire to be more competitive and recognized
 globally had inculcated more than a decade ago, the rules that define
 ethical business, much before it was introduced as statutory compliance
 through Clause 49 of the Listing Agreement.
 
 Your company firmly believes that building a culture of compliance is
 more than meeting regulations and standards. Your company is always
 proactive in meeting mandated standards and practicing corporate
 governance in spirit and not just the letter of the law.
 
 A report on Corporate Governance along with the Practicing Company
 Secretarys Certificate on its compliance is annexed hereto. Your
 Company is happy to inform you that there were no adverse remarks /
 qualifications/ reservations raised in the Corporate Governance Report.
 
 DISCLOSURE IN TERMS OF SECURITIES AND EXCHANGE BOARD OF INDIA
 (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS, 1997
 
 The list of persons constituting Group of your company (within the
 meaning as defined in the Monopolies and Restrictive Trade Practices
 Act, 1969) for the purpose of availing exemption from applicability of
 the provisions of Regulation 10 to 12 of Securities and Exchange Board
 of India (Substantial Acquisition of Shares and Takeovers) Regulations,
 1997 (the said Regulations), as provided in Clause 3(1)(e) of the
 said Regulations:
 
 Mr. K S Raju, Mr. K Rahul Raju, Mrs. K Lakshmi Raju, Mrs. K Renuka
 Raju; Nagarjuna Management Services Private Limited, Nagarjuna Holdings
 Private Limited, Fireseed Limited, Nagarjuna Corporation Limited, Baron
 Properties Private Limited, White Stream Properties Private Limited,
 Growth Stream Properties Private Limited and NCL Enterprise LLP.
 
 DIRECTORS
 
 In accordance with the Articles of Association of the company, Shri
 Ashok Chopra, Shri S R Ramakrishnan and Shri Chandra Pal Singh Yadav,
 retire at the forthcoming Annual General Meeting and being eligible,
 offer themselves for re-appointment.
 
 Shri A Dayakar Reddy, Joint Secretary to Government, Industries &
 Commerce Department, Govt, of Andhra Pradesh, was nominated with effect
 from August 26, 2010 by Government of Andhra Pradesh as Nominee
 Director in place of Shri B Sam Bob, IAS. Shri Sunil Sharma, IAS, has
 been nominated by Government of Andhra Pradesh as Nominee Director with
 effect from January 10, 2011 in place of Shri A Dayakar Reddy.
 
 IFCI Limited has nominated Shri S P Arora to the Board of Directors of
 the Company in place of Shri B B Tandon with effect from January
 10,2011.
 
 ICICI Bank Limited has nominated Shri Yogesh Rastogi as their Nominee
 Director on the Board of your company with effect from March 4, 2011.
 
 Shri P P Singh, Director (Technical) of the company ceased to hold
 office as Director with effect from February 24, 2011.  
 
 The Board of Directors had placed on record their appreciation of the
 services rendered by Shri B Sam Bob, Shri A Dayakar Reddy, Shri B B
 Tandon and Shri P P Singh, during their term as Directors of the
 company.
 
 AUDITORS AND AUDIT REPORT
 
 M/s. M Bhaskara Rao & Co., Chartered Accountants, Hyderabad, the
 companys 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 (1B) of the Companies Act, 1956.
 
 The companys Statutory Auditors have also furnished us a certificate
 from the Peer Review Board of the ICAI confirming that they have
 undergone the process of peer review.
 
 The company has a well established system of Internal Audit which
 carries out audit on Risk Management framework which covers the entire
 gamut of financial, marketing, plant operations and other service
 functions.
 
 The companys Internal Audit function has obtained Quality Management
 System (ISO 9001 : 2000) certificate in December 2006 and the same has
 been confirmed.  
 
 COST AUDITOR
 
 Pursuant to Section 233 B of the Companies Act, 1956 the Central
 Government has directed that the cost accounts maintained by the
 company be audited by a cost auditor. Subject to the approval of the
 Central Government, the company has appointed Shri Dantu Mitra, Cost
 Accountant, as the Cost Auditor of the company for the financial year
 2011 -2012.  
 
 SUBSIDIARY COMPANIES
 
 During the year under review, your company incorporated a wholly- owned
 subsidiary in Mauritius on April 20, 2010, under the name and style of
 Nagarjuna Mauritius Private Limited (NMPL) to enable the company
 undertake its various overseas operations.
 
 NMPL incorporated a wholly-owned subsidiary in Kenya under the name and
 style of Nagarjuna East Africa Limited (NEAL) on October 15, 2010 to
 undertake operations in Kenya. NMPL is yet to make any investment in
 the equity of NEAL.
 
 The Ministry of Corporate Affairs, New Delhi, vide Circular
 No.5/12/2007- CL-III dated February 8,2011 granted general exemption
 under Section 212(8) of the Companies Act, 1956 in relation to
 providing information on the subsidiary companies provided certain
 conditions are fulfilled.
 
 Pursuant to the said circular, the Board of Directors of the company
 gave their consent for not attaching the Balance Sheets of the
 subsidiary companies to the Annual Accounts of your company.
 Accordingly, the Balance Sheets and other financial statements relating
 to the following companies are not attached to the Annual Accounts of
 the company.
 
 1.  Jaiprakash Engineering and Steel Company Limited (JESCO)
 
 2.  Nagarjuna Oil Corporation Limited (NOCL)
 
 3.  Kakinada Fertilizers Limited (KFL)
 
 4.  Nagarjuna Mauritius Private Limited (NMPL)
 
 5.  Nagarjuna East Africa Limited (NEAL)
 
 Any member seeking information on any of the subsidiary companies may
 write to the company to enable the same to be forwarded.
 
 Jaiprakash Engineering and Steel Company Limited (JESCO) Your company
 is considering implementing various Infrastructure projects to utilize
 the available land appropriately and gainfully.
 
 Nagarjuna Oil Corporation Limited (NOCL)
 
 Nagarjuna Oil Corporation Limited, your companys subsidiary, is
 setting- up 6 million metric tons per annum refinery project at
 Cuddalore, Tamil Nadu. NOCL has made substantial progress.
 
 During the previous year, the project cost of the Refinery Project was
 revised to Rs.6960 crores. An amount of Rs.4158 crores (provisional)
 has been spent by NOCL on the Refinery Project as of March 31,2011.
 
 The financial institutions have approved the increased project cost and
 the tie-up for the additional equity is in advanced stage with
 prospective investors.
 
 NOCL has made substantial progress on various fronts such as
 engineering activities for all the relocated units, civil work,
 offsites and utilities, infrastructure and marine facilities.
 
 Kakinada Fertilizers Limited (KFL)
 
 KFL was set-up to carry out activities relating to manufacturing /
 trading of urea and other fertilizers. Your company shall be merged
 with KFL during the current year and KFL shall carry on the fertilizer
 business of your company. KFL will be renamed as Nagarjuna Fertilizers
 and Chemicals Limited after the scheme of merger is approved.
 
 Nagarjuna Mauritius Private Limited
 
 Nagarjuna Mauritius Private Limited (NMPL) is a wholly owned subsidiary
 of NFCL with a paid up capital of Euro 5 Million with an object of
 investing in stocks, funds, shares, securities, foreign currencies or
 other investments. The Company has invested Euro 5 Million which has
 been reinvested in Nagarjuna Spawnt GmbH, Germany, in the form of
 equity (24%) and balance as loan.
 
 Nagarjuna Spawnt GmBH, Germany, is in the process of setting-up a plant
 for manufacture of silane chemicals of 15 tons per annum capacity in
 two stages of 7.5 ton capacity each. The erection of the plant is
 expected to be completed by the second half of the financial year and
 pre-commission activity shall be completed thereafter.
 
 Nagarjuna East Africa Limited
 
 Nagarjuna East Africa Limited, a wholly owned subsidiary of Nagarjuna
 Mauritius Private Limited was incorporated in Kenya on October 15,2010
 to market plant nutrients in the initial stages followed by Micro
 Irrigation systems at later stage in Kenya.  
 
 DISCLOSURES
 
 Disclosure in terms of Companies (Particulars of Employees) Rules, 1975
 and Companies (Disclosure of particulars in the Report of the Board of
 Directors) Rules, 1988 in respect of conservation of energy, technology
 absorption, earnings and outgo of foreign exchange are attached and
 forms part of this Report.  
 
 AUDIT COMMITTEE CONSTITUTION
 
 In compliance with the provisions of the Section 292A of the Companies
 Act, 1956 and the listing agreement entered into with the stock
 exchanges, the Company had constituted an Audit Committee consisting of
 highly qualified and experienced members from various fields. The
 committee consists of four independent Directors and one Whole-time
 Director.The Chairman of the committee Dr. N C B Nath, is an
 Independent Director and the committee meets periodically to review the
 quarterly financial statements and recommends its findings to the Board
 apart from taking action independently whenever required. The Statutory
 Auditors, Secretary and the Internal and Cost Auditors attend and
 participate in the Audit Committee Meetings.  
 
 The Audit Committee comprises of
 
 Dr. N C B Nath                Chairman, Independent Director
 
 Shri B K Batra                Member & Independent Director
 
 Shri S R Ramakrishnan         Member & Independent Director
 
 Shri M P Radhakrishnan        Member & Independent Director
 
 Shri K S Raju                 Member & CMD
 
 CORPORATE SOCIAL RESPONSIBILITY
 
 A Journey of thousand miles starts with a single step.
 
 The Nagarjuna Group always has the desire to play a proactive role in
 the development of society. With an idea of taking a long journey to
 bring positive change in the lives of many, we at the Nagarjuna Group
 under the aegis of Nagarjuna Foundation started two years ago several
 CSR activities.
 
 An initiative started in the year 2009 with the spirit of making a
 difference, has today deepened its roots and given the enthusiasm of
 making a bigger impact and changing many more lives tomorrow.
 
 The dedicated support, strength, initiative and encouragement from the
 associates of the Group to be part of this initiative with their
 contribution gave impetus to the movement.
 
 Your company made significant contributions of around Rs.70 lakhs
 towards education, sports, health care and community welfare under the
 aegis of Nagarjuna Foundation during the year and collaborated with
 various leading organizations in this regard.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956,
 
 Your Directors hereby report:
 
 a.  that in the preparation of Annual Accounts for the year ended March
 31, 2011, the applicable accounting standards have been followed.
 
 b.  that the Directors have selected such accounting policies and
 applied them consistently and 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 March 31. 2011 and of profit and loss
 account for the period ended March 31, 2011.
 
 c.  that 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.
 
 d.  that the Directors have prepared the Annual Accounts on a going
 concern basis.
 
 ACKNOWLEDGEMENT
 
 Your Directors place on record their gratitude to the Government of
 India, Government of Andhra Pradesh and Government of Tamil Nadu and
 the financial institutions and companys bankers for their assistance
 and co-operation.
 
 Further, the company places on record its sincere appreciation for the
 continuing support and unstinting efforts of investors, dealers and
 associates in ensuring an excellent all round operational performance.
 
 
 
                                               On behalf of the Board
 
 
                                                             K S Raju 
                                         Chairman & Managing Director
 
 
 Hyderabad 
 April 28, 2011