Dear Shareowners,
 
 I have a mixed feeling while presenting this report – Firstly; I would
 like to express our solidarity for those affected at recent Bomb blast
 in Mumbai, Tsunami in Japan and elsewhere in the world. The terrible
 event that hit Japan brought to the forefront the inborn quality of the
 Japanese, who in an unspeakable calamity showed rare character,
 discipline and determination; a lesson for all of us to learn from. On
 the other hand, our Men in Blue gave us tremendous joy and satisfaction
 when they brought back home the Cricket World Cup after 28 years!
 
 On the business front, your company concluded FY11 with revenues at Rs.
 548 crore, led by the publication business which grew 8% at Rs. 299 crore
 and stationery segment grew by 2% at Rs. 244 crore. The balance revenue
 of Rs. 5 crore was from other sources. However with the syllabus change
 continuing in the State of Maharashtra in FY12 and Gujarat likely to
 follow suit, the company expects good growth for the publications
 segment over the next few years. And on Stationery front, company''s
 restructuring initiatives for domestic markets have shown encouraging
 results in FY11 resulting in double digit growth in this segment. The
 situation looks more promising in FY12 with steady improvement in
 margins. However the overall performance of the stationery segment was
 lower than what we had anticipated as a result of exports taking a
 beating as fierce competition from other markets and currency
 fluctuations did not allow us to offer finer prices to the customers.
 
 The progress in e-learning activity was almost at par with expectation.
 Now that the company has completed the full range of primary &
 secondary state level curriculum in Maharashtra & Gujarat, substantial
 improvement is expected in FY12 performance. Your company is confident
 that with more and more schools including this module in their
 day-to-day teaching activities, this segment will gain impetus and your
 company with its strong brand and relationship built over many decades
 will create a sustainable long term business model.
 
 The last decade belonged to the Information technology, communication
 and entertainment sector, but this decade will belong to education and
 innovation – i.e. innovation in any field. Education sector is a high
 priority thrust area for the Government of India. Current literacy rate
 in India is close to 60% and the Government wants it to be close to 85%
 in the next 5 years. Simultaneously Education field is growing much
 faster in various services, be it school education, Coaching activities
 including vocational trainings provides huge opportunities not only to
 grow but also to service the society. Navneet is hopeful of
 participating in these activities directly and/or indirectly.
 
 With the opportunities opening up in this sector on account of
 increased government spends, willingness by parents to spend on quality
 education and the improving student-enrolment ratio, the scope for
 players like Navneet to deliver education based products is so large
 that we are confident of reaching our target of Rs. 1000 crore revenue
 mark in next couple of years.
 
                                                  Shivji K. Vikamsey