The Directors have pleasure in presenting the 39th Annual Report along
 with the audited accounts for the year ended 31st March 2011.
 
 Financial Results
 
 The financial performance of the Company, for the year ended 31st March
 2011 is summarised below:
 
                                                          (Rs in Lakhs)
 
                                 12 months ended 
 
                                 31st March 2011
                                                       12 months ended 
 
                                                       31st March 2010
 
 Turnover/Income (Gross)             1,23,217.70          1,27,091.43
 
 profit before Finance charges, 
 Depreciation and Taxation             37,395.39            58,480.22
 
 Less: Finance charges (excluding 
 
 amount capitalised)                    2,181.30             3,059.13
 
 profit before Depreciation 
 
 and Taxation                          35,214.09            55,421.09
 
 Depreciation                           4,584.89             4,437.79
 
 profit for the year after 
 
 Depreciation                          30,629.20            50,983.30
 
 Provision for taxation 
 
 - Current tax                          5,675.00             7,325.00
 
 - Deferred tax                            39.56              (89.90)
 
 - MAT credit entitlement             (5,655.00)           (6,120.00) 
 
 profit after Tax                       30,569.64            49,868.20 
 
 Balance brought forward from 
 
 last year                             77,175.40            46,802.60 
 
 Income tax of earlier years            (191.01)                --
 
 profit available for Appropriation    107,554.03            96,670.80 
 
 Appropriations
 
 Dividend on Equity Share Capital       5,128.47             6,425.20
 
 Corporate Dividend Tax                   831.97             1,067.15
 
 Capital Redemption Reserve                  --                  3.05
 
 Contingency Reserve                         --              2,000.00
 
 General Reserve                       10,000.00            10,000.00
 
 Surplus carried to Balance Sheet      91,593.59            77,175.40
 
                                      107,554.03            96,670.80
 
 Review Operations
 
 The Companys business focus in 2010-11 continued to be led by the
 Power followed by Ferro Alloys and Sugar in that order. During the year
 under review, endeavor was made to optimize the power generation while
 the dynamic switch between consumption for production of Ferro Alloys
 and merchant sale was dictated by relative margins and contributions.
 The Company registered a gross turnover of Rs 1,232.18 crore and
 profit-before-tax of Rs 306.29 crore, which corresponded much lower than
 those in the previous year owing to extraneous factors beyond the
 control of the Company. The Company utilised MAT-Credit entitlement and
 accordingly the profit-after-tax on stand-alone basis was Rs 305.70
 crore.
 
 The consolidated financials have been made taking into account the profit
 on part divestment of equity stake in the Odisha power project by Nava
 Bharat Projects Limited (NBPL), development expenditure on aborted
 projects in Indonesia and pre-development loss in the Zambian coal mine
 while the operations in other subsidiaries have had minimal effect on
 the consolidated financials.
 
 Power Division
 
 The operational performance of the power plants both in AP and Odisha
 during the year under review was better with average PLF registering at
 over 90% in all the plants.  The Company generated 1837.87 MU and after
 auxiliary consumption and transmission loss of 192.39 MU, sold 1346.95
 MU of power to traders/grid on merchant sale basis while 298.53 MU
 power was consumed for production of Ferro alloys.
 
 The year under review was marked by steady drop in merchant power
 realizations on a quarter on quarter basis relative to those obtained
 in the previous year. Protracted monsoon affecting demand in general
 and weak financial health of utilities, prompting curtailment of
 merchant power purchase and relatively higher availability of power,
 contributed to this deceleration in the merchant power realizations.
 The situation improved marginally in the fourth quarter albeit on a
 lower level corresponding to the previous year. The general consensus
 amongst power industry participants is that a subdued merchant power
 scenario is likely to continue in the near future pending
 rationalization of tariffs which would improve the financial health of
 State utilities. A section of industry also perceives that the
 incremental power generation with high cost fuel, both domestic and
 imported, could push the merchant power rates higher, given the demand
 dynamics in the country.
 
 Ferro Alloys Division
 
 During the year under review, the Company adopted a cautious approach
 in the production of Ferro chrome where margins were not forthcoming
 and resorted to merchant sale of surplus power. The situation of
 manganese alloys was distinctly better prompting the Company to
 increase production and sales of manganese alloys in the year under
 review. The Company produced and sold manganese alloys of 62,230 MT and
 61,951 MT respectively, while the production and sales of chromium
 alloys corresponded to 8,063 MT and 11,628 MT respectively. The
 improved margins in manganese alloys over those of previous year helped
 the division post segmental profit of Rs 5.20 crore after absorbing the
 fixed cost incidence in the Odisha Works where production was stopped
 from July 2010.
 
 Sugar Division
 
 The sugar operations were accentuated by less than anticipated crushing
 owing to unseasonal rains, static free sale price and inter se free
 consumption of bagasse in the 20MW power plant in Dharmavaram. The unit
 performed admirably bagging the award for being the Most Energy
 Effcient Unit from CII for the fourth year in a row. The average sugar
 recovery during the year under review was 9.82% compared to that of
 9.60% in the previous year.
 
 New projects- Domestic
 
 The 64 MW power plant in Odisha is awaiting certain statutory
 clearances. These clearances are expected to be in place by September
 2011.
 
 The 150 MW power unit being implemented by the step down subsidiary
 Nava Bharat Energy India Limited (NBEIL) at Paloncha in Khammam
 district is in construction stage, having received all requisite
 clearances. The subsidiary had to shelve the other 150MW power unit,
 contemplated at Dharmavaram in East Godavari district, owing to lack of
 environmental clearance.
 
 Fuel arrangements for both 64 MW and 150 MW units will be through a
 combination of imported coal, washery rejects and coal through
 e-auction.
 
 New projects - overseas
 
 The Company’s decision to take up overseas ventures is driven and
 infuenced by infrastructure availability, demand forecast of the
 respective regions and benefits of vertical integration. From these
 perspectives, your Company feels that its investments in Africa and in
 Laos are steps in the right direction.  Your Company expects that these
 investments, upon fruition, over the next 3 years, would bring about a
 sustainable improvement in the consolidated operations of the Company
 and impart signifcant resilience to the Group on account of diversity
 and assured returns on investment.
 
 The Zambian coal mine has, since the takeover by the Companys
 Singapore subsidiary in April 2010, undergone a rehabilitation
 programme aimed at an early resumption of high grade coal mining
 operations and mitigation of fixed and recurring cost through a
 substantial reduction in wage bill.  The coal mining operations are set
 to commence in October 2011 and should, given the buoyancy in the coal
 prices and demand, spur cash infows into this Zambian Company in the
 current year itself. The land locked situation of Zambia has affected
 the geographical access for sale of this coal to some extent and the
 Company hopes that with gradual improvement in logistics and
 infrastructure, externalization of coal operations will become feasible
 in the near future.
 
 The Zambian Company has also taken effective steps to launch a 300 MW
 mine-mouth power plant and is set to induce a dependable generation mix
 in Zambia which has been dependent on hydel power so far. This Company
 has received several new enquiries from within and outside Zambia for
 power, encouraging it to plan ahead for enhancing the power generating
 capacity to about 900MW in stages.  Africa is fast emerging as a
 forefront investment destination for many a corporate and your Company
 has a head start with this investment in Zambia, which can be leveraged
 for other lucrative investment opportunities in Africa.
 
 It is heartening to report that the ZCCM-IH, the JV partner in the
 Zambian Coal Company, against which bulk of the liabilities are
 outstanding, has conveyed its intentions to convert these liabilities
 into equity backed with a similar move from Nava Bharat proportionate
 to the respective stakes in the coal Company. The financial position of
 this coal Company will thus receive a signifcant boost in the current
 year.
 
 The proposed investment in the hydel power generation project in Laos
 is signifcant in that on one hand, the Group’s entry into hydel power
 generation is facilitated based on a proven hydrology with potential
 plant load factor exceeding 60% and secondly reinforces the Group’s
 commitment for green initiative without losing sight on return on
 investment.  The hydel power project has received the approval of the
 
 Government of Laos for project development and detaile feasibility
 study is under way. The project concession wil be obtained soon after
 the feasibility study and execution o power purchase agreement followed
 by financial closure which will enable the launch of the project by
 March 2012.
 
 Your Company also considers that agro based investment and industries
 in Africa have good potential with large tract of agricultural land
 with water sources being availabl for optimal utilization in this
 space. As a frst step, a ste down subsidiary, Nava Bharat Africa
 Resources Pvt. Limite (NBAR) has been set up in Mauritius to focus on
 this agr based investments by leveraging upon the Company’ experience
 in sugar and bio-fuels for the last three decades
 
 The Singapore subsidiary of the Company is spearheadin the overseas
 investments and substantial value accretion wil happen in due course in
 line with progressive achievement o set milestones.
 
 Outlook and Future Plans
 
 The outlook and future plans of the Company have been mentioned in
 detail under the Management Discussion and Analysis section that
 forms part of this report.
 
 Dividend on equity share capital
 
 Considering the satisfactory performance of your Company and keeping in
 view the ongoing capital works and growth trajectory, your Directors
 are pleased to recommend dividend at Rs 6/- per Equity Share of Rs 2/-
 each, subject to necessary approvals.
 
 The aggregate dividend payout for the year 2010-11 amounts to Rs 59.60
 crore, including corporate dividend tax.
 
 FCCB
 
 Out of the FCCB of JPY 6000 Million raised, FCCB of JPY 2480 Million
 have since been converted into Equity Shares which were listed on
 National Stock Exchange of India Limited and Bombay Stock Exchange
 Limited.
 
 The balance FCCBs of JPY 3520 Million is outstanding in the Company’s
 books at Rs 139.95 crore corresponding to an exchange rate of Rs 0.3976
 JPY which rate is relevant for conversion. However, currency
 appreciation effect of Rs 49.50 crore (negative) as on 31st March 2011
 which is relevant for redemption only, is ignored in the books of
 account as these bonds are optionally convertible and are deep in money
 at the prevailing market price of the Company’s share.
 
 The Company issued an Issuers’ Conversion Notice on 17th January 2011
 fixing the date of conversion as 28th February 2011. The Issuers’
 Conversion Right per each Bondholder will be limited to the conversion
 into Equity Shares with a cap of 14.5% of the enhanced capital.
 
 The Bondholders have to comply with the procedures to enable the
 Company to complete the conversion process.
 
 Employees stock option scheme
 
 The Company has granted 6,00,000 Options to the specifed employees,
 which were vested. The ESOS Remuneration (Compensation) Committee
 allotted during the Financial Year 2010-11, 1,09,210 equity shares of Rs
 2/-each. 66,610 Options got cancelled on cessation of employment.
 Therefore, there are no outstanding Options as on 31st March 2011.
 
 The Company received a certifcate from the Auditors of the Company that
 the Scheme was implemented in accordance with the SEBI Guidelines and
 the resolution passed at the Annual General Meeting held on 27th July
 2006. The Certifcate would be placed at the Annual General Meeting for
 inspection by members.
 
 The prescribed details relating to ESOS as per the SEBI Guidelines are
 set out in the Annexure - II.
 
 Listing of shares
 
 The Securities of the Company are listed at National Stock Exchange of
 India Limited and Bombay Stock Exchange Limited. The listing fee for
 these Stock Exchanges are paid.
 
 Fixed Deposits
 
 The amount of deposits outstanding as on 31st March 2011 was Rs nil.
 
 There were no overdue deposits, as on date.
 
 Insurance
 
 All the properties of the Company including buildings, plant and
 machinery and stocks have been adequately insured.
 
 Directors
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Dr.M.V.G.Rao and Sri K.Balarama
 Reddi, directors of the Company, retire by rotation at the ensuing
 annual general meeting and being eligible, offer themselves for
 re-appointment. Certain changes in the designation and remuneration of
 Whole-time Directors are being considered for members’ approval at the
 ensuing Annual General Meeting.
 
 subsidiary companies and consolidated Accounts
 
 The Company has Indian and Overseas direct and step down Subsidiaries,
 the details of which are given below:
 
 The Company has opted to avail the exemption, provided under Section
 212 (8) of the Companies Act, 1956 and accordingly disclosed the
 prescribed information in aggregate for each subsidiary including step
 down subsidiaries covering capital, reserves, total assets, total
 liabilities, details of investment, turnover, profit before taxation,
 provision for taxation, profit after taxation etc.
 
 The Annual accounts of the subsidiary companies shall also be kept for
 inspection by any shareholder in the Registered Offce of the holding
 Company and of the subsidiary companies concerned. The same will also
 be published on the website, www.nbventures.com.
 
 The Company shall furnish a hard copy of the detailed accounts of the
 subsidiaries to any shareholder on demand at any point of time.
 
 Nava Bharat Projects limited (NBIL)
 
 NBPL, the Wholly Owned Subsidiary of the Company, is engaged in project
 support and maintenance services for group companies and is the
 intermediate holding Company of NBEIL, which is executing the 150 MW
 power plant at Paloncha.
 
 Members are aware NBPL was holding 50% of equity stake in Navabharat
 Power Private Limited (NPPL) which is implementing a 1050 MW power
 plant in Odisha. During the year under review, NBPL divested a part of
 the investment in NPPL to Essar Power Limited (EPL) and realised
 capital gains. Sale of the balance shareholding in NPPL to EPL was done
 in the current year.
 
 Nava Bharat Energy india Limited (NBEIL)
 
 NBEIL is the step down subsidiary through NBPL and is implementing the
 150 MW coal fred power plant at Paloncha, estimated to cost about Rs 666
 crore.
 
 Brahmani Infratech Private limited (BIPl)
 
 Nava Bharat Ventures Limited (NBVL) currently holds 65.74% of the
 equity share capital of BIPL, which is entrusted with the
 implementation of SEZ project by the Govt. of AP/APIIC.  BIPL has
 entered into a Development Agreement with Mantri Group for this SEZ
 project. The SEZ project couldn’t take off owing to the prevailing real
 estate and weak IT Industry scenario over the few years.
 
 kinnera Power Company Limited (KPCL)
 
 KPCL, the subsidiary of the Company, is at present the investment arm
 of Meenakshi Group for the road project which has been implemented
 through the SPV, Malaxmi Highway Ltd. (MHL). It is the intention of the
 Company to offoad its stake in KPCL and MHL eventually to Meenakshi
 Group and hence consolidation of KPCL and MHL are not done.
 
 Nava Bharat reality (NBRL)
 
 NBRL is the Wholly Owned Subsidiary of the Company and there have been
 no operations in this Company.
 
 Nava Bharat Sugar and Bio Fuels Limited (NBSBL)
 
 NBSBL is the Wholly Owned Subsidiary of the Company and there have been
 no operations in this Company.
 
 Maamba Collieries Limited (MCL)
 
 MCL is a step down subsidiary of the Company through NBS.  MCL is
 presently pursuing an investment plan comprising revival and
 rehabilitation of the coal mine and establishment of 300 MW power plant
 in Phase-I with an indicative investment of about USD 750 million.
 
 Kobe Green Power Co. Limited (KGP)
 
 KGP is a Japanese Company in which NBS has taken a majority stake. KGP
 is the holder of a Hydel Power Concession in Laos and a project Company
 will be formed to pursue the Hydel Power Concession for about 100 MW,
 estimated to cost about USD 200 million. NBS plans to substitute its
 investment in KGP with a majority stake in the project Company after
 the Project Concession is secured from the Government of Laos.  Hence,
 consolidation of accounts of KGP with NBS has not been done.
 
 Nava Bharat Africa resources Pvt.Ltd. (NBAR)
 
 NBAR is a step down subsidiary of the Company through NBS formed at the
 end of 2010-11 and is set to pursue investment opportunities in agri
 space in Africa. This Company will be consolidated from 2011-12
 onwards.
 
 Auditors
 
 M/s. Brahmayya & Co., Chartered Accountants, Hyderabad, the Statutory
 Auditors of the Company, hold offce until the conclusion of the ensuing
 Annual General Meeting and are eligible for re-appointment.
 
 The Company has received letter from them to the effect that their
 appointment, if made, would be within the prescribed limits under
 Section 224 (1-B) of the Companies Act, 1956 and that they are not
 disqualifed for re-appointment within the meaning of Section 226 of the
 said Act.
 
 Cost Audit
 
 M/s. Narasimha Murthy & Co, cost auditors, have been appointed by the
 Company to conduct the cost audit in respect of industrial alcohol,
 sugar and electricity for the financial year 2010-11. The approval of
 the Central Government was received for this appointment. The Cost
 Audit reports for 2010-11 were due to be submitted on or before 30th
 September 2011. The Cost Audit reports for 2009-10 were
 
 Nava  Bharat (singapore) Pte.limited (NBS)
 
 NBS, the Wholly Owned Subsidiary of the Company, is engaged in trading
 of Ferro alloys and is the investment hub for the entire overseas step
 down subsidiaries of the Company.
 
 Nava Bharat indonesia (NBI) and Nava Bharat sungai cukA (NBSC)
 
 NBI and NBSC were formed through NBS to pursue the Indonesian mineral
 opportunities. The Indonesian coal venture negotiations with a set of
 buyers are in advanced stage and these should result in a reasonable
 coal off-take arrangement with NBS continuing the equity stake along
 with the buyers.
 
 Flied with Ministry of Corporate Affairs on 1st September 2010 and 3rd
 September 2010.
 
 Group  For inter-se transfer of shares
 
 As required under Clause 3(1)(e) of the Securities and Exchange Board
 of India (Substantial Acquisition of Shares and takeovers) Regulations,
 1997, persons constituting Group (within the meaning as defned in the
 Monopolies and Restrictive Trade Practices Act, 1969) for the purpose
 of availing exemption from applicability of the provisions of
 Regulations 10 to 12 of the aforesaid SEBI Regulations are given in
 Annexure III attached herewith and the said Annexure III forms part of
 this Annual Report.
 
 Management Discussion And Analysis Report
 
 Managements 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 a part
 of the Annual Report.
 
 Directors Responsibility statement
 
 The Directors confirm that in the preparation of Annual Accounts for the
 year ended 31st March 2011
 
 - All applicable accounting standards were followed.
 
 - The accounting policies framed in accordance with the guidelines of
 the Institute of Chartered Accountants of India have been applied.
 
 - Reasonable and prudent judgment and estimates were made so as to give
 a true and fair view of the state of affairs of the Company.
 
 - Proper and suffcient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, as applicable.
 
 - The annual accounts were prepared on a going concern basis.
 
 Coprporate Governance
 
 A separate section on Corporate Governance with a detailed compliance
 report thereto is annexed and forms a part of the Annual Report. The
 Auditors’ Certifcate in respect of compliance with the provisions
 concerning Corporate
 
 Governance, as required by Clause 49 of the Listing Agreement, is also
 annexed.
 
 Conservation of energy, Technology Absorption And Foreign exchange
 
 In accordance with the provisions of Section 217(1)(e) of the Companies
 Act, 1956, the required information relating to conservation of energy,
 technology absorption and foreign exchange earnings and outgo have been
 given in the Annexure - I, which forms a part of this Report.
 
 Industrial Safety  and environment safety& environment
 
 Your Company continues to give utmost importance to safety of personnel
 and equipment in all its plants. The safety measures adopted are
 reviewed thoroughly and several proactive steps taken to avoid
 accidents. In addition, safety drills are conducted at regular
 intervals to train the workmen and staff in facing accidents.
 
 Particulars of Employees
 
 As required by the provisions of Section 217(2A) of the Companies Act,
 1956 read with Companies (Particulars of Employees) Rules, 1975 as
 amended, the names and other particulars of the employees are set out
 in the Annexure - IV to the Directors Report.
 
 Voluntary Guidelines on Corporate Governance And Corporate Social
 Responsibility
 
 The Ministry of Corporate Affairs, Govt. of India, issued Voluntary
 Guidelines for Corporate Governance and for Corporate Social
 Responsibility. The Voluntary Guidelines for Corporate Governance
 provide for various measures and your Company considers the same in due
 course in a phased manner.
 
 Awards
 
 Your Company received the following awards/recognitions during 2010-11:
 
 1.  silver Trophy for outstanding export Performance for the year
 2008-09 from The Federation of Andhra Pradesh Chambers of Commerce &
 Industry, Hyderabad .
 
 2.  silver Trophy for excellence in Rural Development for the year
 2008-09 from The Federation of Andhra Pradesh Chambers of Commerce &
 Industry.
 
 3.  Best management Award for the year 2009-10 from the Labor
 Department of Government of Andhra Pradesh, for outstanding
 contribution to maintenance of Industrial Relations, Labor Welfare and
 Productivity.
 
 4.  Best Technical effciency Award (1st Prize) for the season 2009-10
 in Andhra Pradesh, from The South Indian Sugarcane & Sugar
 Technologists’ Association, bagged by the Sugar Plant, Samalkot.
 
 5.  national Award for excellence in energy management, 2010 as
 excellent energy effcient unit, from Confederation of Indian Industry,
 bagged by the Sugar Division for the 4th consecutive year.
 
 6.  Rank no.1 in 500 of india’s best-performing midsize enterprises,
 awarded by Inc. India magazine in a survey published in its
 September-October 2010 issue.
 
 7.  national Award for water management 2010 as water effcient unit
 from the Confederation of Indian Industry, bagged by the Ferro Alloy
 and Power Plants at Paloncha.
 
 8.  silver shield for star Performer as large enterprise for
 outstanding contribution to Engineering Exports during 2008-09, from
 EEPCINDIA.
 
 9.  cii environmental Best Practices Award 2011 for most innovative
 environmental Project, from Confederation of Indian Industry, bagged by
 Ferro Alloy Plant, Paloncha.
 
 10.  cii environmental Best Practices Award 2011 for most innovative
 environmental Project, from Confederation of Indian Industry, bagged by
 Sugar Division, Samalkot.
 
 Green Initiative in Corporate Governance By Honble Minister of
 Corporate Affairs
 
 The Ministry of Corporate Affairs (MCA) has recently taken a green
 initiative in Corporate Governance by allowing paperless compliances by
 the Companies and permitted the service of Annual Reports and documents
 to the shareholders through electronic mode subject to certain
 conditions. Your Company appreciates the initiative taken by MCA as it
 strongly believes in a green environment. This initiative also helps in
 prompt receipt of communication, apart from avoiding losses / delays in
 postal transit. The Notice of Annual General Meeting, Annual Report and
 all communications hitherto will be sent to the members in electronic
 form at the e-mail address provided by them to the depositories or
 Registrars & Transfer Agents of the Company. The same will be sent by
 post physically to the Members, whose e-mail addresses are not
 available. Members can also have access to the documents through the
 Company’s website. The documents will also be available to the members
 for inspection at the Registered Offce of the Company during the offce
 hours.
 
 Members are also entitled to be furnished with copies of the
 abovementioned documents, free of cost, upon receipt of requisition, at
 any point of time.
 
 Industrial Relations
 
 Industrial relations have been cordial and your Directors appreciate
 the sincere and effcient services rendered by the employees of the
 Company at all levels towards successful working of the Company.
 
 Acknowledgement
 
 Your Directors would like to express their grateful appreciation for
 the assistance and co-operation received from the Financial
 Institutions, the Company’s Bankers, Insurance companies, the
 Governments of Andhra Pradesh, Odisha and the State utilities and
 Shareholders during the year under review.
 
                                      For and on behalf of the Board
 
                                                 P.Trivikrama Prasad
 
                                                   Managing Director
 
                                                             D.Ashok
 
                                                            Chairman
 
 Hyderabad 
 
 28th May 2011