Dear Shareholder''s
 
 At the outset, I take this opportunity to share with you the pride that
 we all feel at the remarkable haul of medals that our talented
 sportsmen have brought to our nation at the recently concluded London
 Olympics.
 
 India stands at the threshold of knowledge transformation. Education is
 the one sector towards which the outlook is fast changing in our coun-
 try. From being considered an expense, it is now seen as an investment
 for the future. Students now have a wider choice in selecting their fu-
 ture. Across the country literacy is fast improving year after year.
 With the perceptible growth in Indian economy, disposable household in-
 come and resultantly spending has been increasing. Parents/Students now
 prefer quality products in all product categories including those of
 your Company. Various initiatives of the Central Government on in-
 creasing the literacy as well as quality education have also
 contributed to increasing the awareness for quality educational
 products. The Government''s expenditure on social services and rural
 development has gone up consistently over the years.
 
 The last financial year 2011-2012 was a successful year for your Com-
 pany in achieving many milestones, both in the physical as well as in
 the financial fronts.
 
 Your Company has maintained a healthy double digit growth. For the year
 ended 31st March 2012, your Company has crossed the 600 cr.  turnover
 mark led by publication segment. Under the syllabus changing scenario
 publication business grew by 18% and posted a turnover of Rs. 354 cr.
 while stationery segment recorded less than expected growth and stood
 at Rs. 249 cr. – a modest growth of 7% on account of severe competition
 in the domestic market and postponement of export orders.
 
 On one hand, the management of your Company believes that being in the
 non-recessionary business line is the most powerful strength of your
 Company, on the other, global recession has nearly brought the world to
 a halt. Developed economies like USA & most of the countries in Europe
 witnessed virtual turmoil of their financial sector. The slowdown has
 severely impacted the business of your Company''s subsidiary in Spain,
 Grafalco Ediciones S.L. As a result, during the current year the
 Management of your Company had decided to scale down substantially the
 activities of this subsidiary. It has paid off all its liabilities and
 made provision for diminution in the value of its investment in this
 subsidiary.
 
 Your Company''s other subsidiary, eSense Learning Pvt. Ltd., has com-
 pleted digitized content for standards 1 to 10 in Science, Mathematics
 and Social Science. As of March, 2012, our e Learning products have
 been installed in 925 Institutions covering around 4,500 classrooms.
 Company is aggressively marketing its products across new schools and
 is sure of an impressive growth in FY13.
 
 The outlook for the coming years looks very promising as the syllabus
 change scenario in the States of Maharashtra and Gujarat is expected to
 continue for a couple of years. With our long cherished dream to expand
 business beyond Gujarat and Maharashtra to other States, we have made a
 foray in Andhra Pradesh recently. With this, we believe that there will
 be a robust growth in the publication segment during FY13. Even
 stationery segment is expected to perform better in FY13 due to
 confirmed export order book.
 
 India, as an emerging economy, envisions a better tomorrow. Today, each
 strata of society considers education to be the ladder of future
 growth. The awareness towards quality education is increasing with the
 time. The ratio of enrollments in private schools is increasing in
 comparison to public school in rural areas as well. With highest
 student population in the world, business opportunities in education
 are increasing at all levels from pre-school to higher education.
 Government of India''s expenditure on education as a proportion of total
 expenditure has moved up substantially in the recent times and it has
 undertaken several initiatives in recent years to promote primary and
 secondary education.
 
 All these speak for the excellent opportunities that your Company is
 ready to seize and to grow at a rapid pace in the years to come.
 
 
 
                                                 Shivji K. Vikamsey