I am extremely pleased to present the details of your Companys annual
 performance for the financial year 2009-10.
 
 The world economic crisis left a deep impact on global economy.
 Fortunately, it did not have much effect on the growth of the FMCG
 industry in India due to strong and steady demand for consumer
 products. The country ranked second in the Nielsen Global Consumer
 Confidence survey released on January 7, 2010 indicating strong
 fundamentals and faster recovery from the economic slowdown. The
 findings of the survey were substantiated by the performance of the
 FMCG sector which registered robust growth.
 
 I take great pride to report that your Company delivered strong
 business results with the sales at Rs.914 crores higher by 18% versus the
 sales of Rs.773 crores in the last financial year. The Profit After Tax
 (PAT) at Rs. 180 crores was in the line with PAT of the last
 corresponding year, recording a strong 20% margin after tax. The Board
 of Directors of your Company has recommended a dividend of Rs.22.50 per
 share for all our shareholders this year (which is subject to approval
 of the shareholders of the Company at its ensuing Annual General
 Meeting).  Your Company increased investments in marketing and supply
 chain such as setting up of new manufacturing lines, promotion and
 launch of new products like Whisper Choice Ultra. The unexpected levy
 of excise duty by the 2010 Union Budget has also impacted profit growth
 in last quarter of 2009/10 Fiscal.
 
 Feminine Hygiene business registered 24% growth with all the variants
 of Whisper sanitary napkins showing healthy growth. Whisper Choice led
 the growth in the category with 40% increase in sales helping the
 Company grow volume and value share. Feminine Hygiene business, this
 year delivered the highest sales and share growth for P&G across the
 globe with Whisper increasing its market share and Whisper Ultra being
 the largest value share brand. Your Company made strategic decision to
 invest in educating the consumers and improve penetration to grow under
 developed category of sanitary napkins.
 
 Your Company launched the Whisper school program to reach a total 2.4
 million menstruating girls which was a 15% increase over the previous
 year. Whisper also took the innovative route to ensure that the top
 tier brand was sampled in the more urban schools and the more
 economical mid-tier Whisper Choice in the upcountry schools. Whisper
 Choice program was extended to 6 other states tapping 1.9 million
 consumers and created trial among 1.4 million consumers.
 
 Healthcare business has also shown robust sales growth of 11% versus
 the previous year. I would like to reassure you all that Vicks will
 continue to innovate to ensure it stays the most trusted cough and cold
 care solution in India. The growth in the category was driven by a
 combination of product initiatives and investment behind proven equity
 building advertising.
 
 P&Gs commitment to purpose-inspired growth in order to touch and
 improve the lives of more people has led to the extension of its
 signature Corporate Social Responsibility (CSR) program Shiksha to
 6th year.  I am happy to share that P&G India as a whole, has this year
 helped educate over 150,000 children across 602 communities with a
 donation of over Rs.5 crores by building Shiksha Schools across the
 country offering quality education to children in need.
 
 In the end, I wish to re-affirm our commitment to innovation which will
 continue to be at the heart of everything we do - be it in our products
 or in our communication with consumers. I would also like to attribute
 the growth over the past year to our employees who have demonstrated
 their ability to stay reality- based, embrace change and proactively
 influence the course of business.
 
 I would like to thank our shareholders for their resolute trust in the
 Company and look forward to their continued support and participation
 in the growth of the Company.
 
 Mumbai                                                 R. A. Shah
 
 August 18, 2010                                          Chairman