The Company has been through one of its toughest times following global
 meltdown and a lull in the renewable energy investments. Contrary to
 our expectations, the period of slowdown extended well beyond the
 normal. However, we do see signs of revival with interest from new
 regions growing. We are also seeing an increased enquiry pipeline which
 is one of the earliest signs of growing interest.  During the trying
 period, your Company has retained its brand equity as the supplier of
 choice by customers and associates. This is true not only for the
 existing business lines, but also for the new ones wherein clients
 perceive a high level of qualification in Prajs offerings.
 
 While in the immediate future, growth would come from existing business
 lines including the new initiatives, it is necessary to examine the
 potential to increase the scope of our offering. With two orders from
 Africa with increased scope, we see a beginning. We plan to increase
 this by adopting varying business models in different geographies. We
 will keep in mind that we ensure a healthy return on shareholder funds
 while doing so.
 
 As you know, we are pushing our R & D efforts for commercialization of
 lignocellulosic ethanol which is considered biofuels of the future.
 We saw interest revival in USA with many renewable IPOs being
 subscribed enthusiastically. We also saw continued support towards R &
 D in this fi eld. This gives us the courage to push through with
 further developments. Our Joint Development Program with Qteros, a
 biotech Company based in USA, for scaling up of the lignocellulosic
 ethanol developmental activity demonstrates our progress. We are also
 examining developments in the renewable chemicals space where we have
 seen a lot of action lately.
 
 While technology led solutions have been our mainstay, we also believe
 in putting an effective organization behind the same. Our transition in
 the top leadership is a move towards institutionalizing organizational
 processes. You were informed on the change in the position of CEO & MD.
 With the induction of Gajanan Nabar, we have brought in a professional
 from outside to manage the operations.  A strong senior management team
 provides the continuity and support in this effort. I continue to lead
 the Company, providing strategic directions. We have also brought in
 other professionals at Board level. Their experience has extended a
 strong support during the turbulent times and we hope to draw upon the
 Boards versatile domain knowledge in our effort to retain growth.
 
 As we recharge for growth, we will be on the look out for opportunities
 which will sweat the assets and give maximum value to shareholders.
 
 Pramod Chaudhari
 
 Executive Chairman
 
 Pune, May 2011