Dear Members,
 
 The Directors have pleasure in presenting the 17th Board Report along
 with the Audited Financial Results for the year ended 31st March 2011.
 
 Summarised Financial Results:
 
                                                       (Rs. in Lacs)
 
 Particulars                                2010-11           2009-10
 
 Sales                                      372,388           369,323
 
 Other Income                                   386               970
 
 Total                                      372,774           370,293
 
 Profit Before Interest and
 
 Depreciation                                77,291            61,147
 
 Less: Interest                              32,757            34,825
 
 Less: Depreciation                           2,212             2,139
 
 Profit Before Taxation                      42,322            24,183
 
 Provision for Current Taxation              13,975             8,402
 
 Provision for Fringe Benefit Tax
 
 Prior Period Tax Payments                      102                65
 
 Profit after Taxation                       28,245            15,717
 
 Add- Balance Brought Forward                   454               309
 
 Amount Available for
 
 Appropriation                               28,699            16,026
 
 Less - Interim Dividend on
 
 Equity Share                                   958               319
 
 Less - Dividend Tax on
 
 Interim Dividend                               159                54
 
 Less - Proposed Dividend                     2,076               799
 
 Less - Dividend Tax on above                   337               136
 
 Less - Short Provision for
 
 Dividend & Dividend Tax                       1486                35
 
 Less - Transfer to Debenture
 
 Redemption Reserve                           1,300               230
 
 Less - Transfer to General Reserve          14,000            14,000
 
 Balance Carried to Balance Sheet             8,383               453
 
 FINANCIAL PERFORMANCE
 
 During the year under review your Company has achieved a turnover of
 Rs.3724 Crore as against Rs.3693 Crores in the previous year. During
 the financial year ended on 31 st March 2011, we have achieved a net
 profit of Rs.282.45 crores as compared to a profit of Rs.157.17 crores
 in the previous year, an increase of about 80% over the previous year.
 We have managed to increase our bottom line not only in absolute terms
 but also in terms of net profit margin
 
 which has moved to 7.58% up from 4.26% in the previous year.The
 increase in the margins is a result of the growing strength of your
 company in the basmati rice industry. The highlights of the performance
 of each of the segments of your company are highlighted later in this
 report.
 
 DIVIDEND
 
 During the year under review, the company has declared and distributed
 interim dividend of 10 % on the equity share, i.e. Rs.0.10 on each
 share of the face value of Rs.1 each aggregating to Rs.957.98 lacs. In
 addition to the interim dividend the Board has proposed and recommended
 a final dividend of 20% i.e., Rs.0.20 on face value of bleach,
 aggregating to Rs.1915.96 lacs. Hence, the total dividend for the
 financial year ended 31st March, 2011 stands Rs.0.30 per equity share
 aggregating to Rs.2873.94 lacs. In addition, Board of Directors has
 also proposed and recommended a dividend @ 4%, i.e. Rs.4/- each on the
 preference share having face value of Rs.100/- each to the preference
 shareholders aggregating to Rs.160 lacs for the financial year 2010-11.
 
 UNCLAIMED/UNPAID DIVIDEND
 
 Pursuant to Section 205A read with Section 205C of the Companies Act,
 1956, unclaimed dividend which remains unpaid for a period of seven
 years from the date of its transfer to unpaid Dividend account of the
 Company shall be transferred to Investor Education & Protection Fund
 (IEPF). Accordingly, the Company has transferred all unclaimed dividend
 for the year upto 2002-2003 to the said fund. Unclaimed dividend for
 the year 2003-04 (Rs.2,32,472) shall be transferred to the said fund
 before the due date.
 
 It may be noted that upon the transfer of dividend to Investor
 Education & Protection Fund, members lose their right to claim such
 dividend. Members are requested to claim the amount of unclaimed
 dividend for the year 2004-2005 onwards on or before the due date
 failing which the said amount shall be transferred to the above
 mentioned fund.
 
 BASMATI RICE SEGMENT
 
 During the financial year 2010-2011, the sales of basmati rice
 increased to Rs.3702 Crore from Rs.3668 Crore in the immediately
 preceding previous year.
 
 The Company is currently undergoing an expansion and modernization
 plan. At the beginning of the financial year the Company had a total
 installed capacity of 103 TPH including the leased capacity of 42 TPH,
 which was phased out during the year.  The company is modernizing and
 expanding its existing installed capacity of 37TPH.
 
 Further the company has already installed new capacity of 22 TPH which
 has started commercial production w.e.f. 01.10.2010. The balance
 capacity is expected to start commercial production during the current
 financial year i.e., 2011-12. With the successful implementation of
 these projects, we expect to substantially improve the operational
 efficiency.
 
 WIND POWER SEGMENT
 
 Your Company has wind farms in the States of Rajasthan, Maharashtra,
 Tamilnadu and Gujarat and its installed aggregate capacity is 46.1 MW.
 During the Financial year 2010-2011, revenue from the segment was
 Rs.22.60 Crorc.
 
 PAYMENT OF COMMISSION ON THE NET PROFITS TO SHRI SANJAYJHUNJHUNWALA,
 CHAIRMAN OF THE COMPANY.
 
 Under the Provisions of section 309 of the Companies Acts, 1956 and
 clause 86 of the Articles of Association of the Company, the Company is
 willing to pay the commission to the chairman of the Company on the net
 profits of the Company to be computed in the manner laid down under
 section 349 of the Companies Act, 1956 as remuneration to him for his
 valuable services to the Company.
 
 Accordingly, Board of Director of the Company in their meeting held on
 21st May, 2011 has accorded their approval for payment of commission ot
 an amount not exceeding .1% of the net profits of the Company to the
 chairman subject to approval of the shareholders of the Company; a
 requisite resolution has been put in the notice of the ensuing Annual
 General Meeting for approval of the Members of the Company seeking
 approval of the shareholders of the Company.
 
 CREDIT RATING
 
 Credit and Analysis Research Ltd. (CARE) has issued rating of CARE
 A(Single A) to long term facilities and short term banking
 facilities. Further CARE has assigned a rating of PRl to short term
 debt (including CP, Mibor Linked Bonds) for an amount of Rs.1400 crores
 in addition to rating of CARE A to the Non Convertible Debentures.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
 
 A report on the management discussion and analysis is annexed hereto
 and forms part of this report.
 
 CORPORATE GOVERNANCE
 
 Your Company is committed to maintain the highest standards of.
 Corporate Governance. A report on Corporate Governance as stipulated
 under clause 49 of the Listing Agreement entered with the Stock
 Exchanges forms part of the Annual Report. A certificate to that effect
 has been obtained from Statutory Auditors of the Company and is annexed
 to this Report.
 
 ENVIRONMENTAL ASPECT AND SOCIAL RESPONSIBILITY
 
 The Company continues to show its commitment for improvement in all
 aspects of the environment and pays special emphasis for plantation and
 preservation of trees, development of gardens in the vicinity of the
 factory and office premises. We pay full attention to promote, improve
 and maintain our responsibility to the society. The Company is also
 setting up a rice husk based power plant to avail carbon credits
 
 DIRECTORS
 
 Dr. ING N.K. Gupta and Shri K.D. Ghosh, Directors of the Company, will
 retire by rotation and being eligible offer themselves for
 re-appointment at the ensuing Annual General Meeting. A brief resume of
 the Directors seeking re-appointment, their expertises etc. are given
 in the notice to the ensuing Annual General Meeting.
 
 AUDITORS
 
 M/s P.K. Lilha & Co., Chartered Accountants, Statutory Auditors of the
 Company, holds office until the conclusion of the ensuing Annual
 General Meeting and are eligible for reappointment.They have indicated
 their willingness to accept re-appointment. In terms of Section 224A of
 the Companies Act, 1956, their re- appointment needs to be approved by
 the members and their remuneration has to be fixed.
 
 AUDITORS'' REPORT
 
 The Notes on Accounts referred to the Auditors'' Report are self
 explanatory and do not call for any further comments.
 
 DIRECTORS''RESPONSIBILITYSTATEMENT
 
 Pursuant to requirement under Section 217 (2AA) of the Companies Act,
 1956, with respect to Directors'' Responsibility Statement, it is hereby
 confirmed that:
 
 I.  In preparation of the annual accounts, the applicable accounting
 standards have been followed along with the proper explanations
 relating to material departures, if any.
 
 II.  The Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year and of the profit or
 loss of the Company for that period.
 
 III.  The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provision of the Companies Act for safeguarding the assets of the
 Company and for preventing and detecting the fraud and other
 irregularities.
 
 IV.  The Directors have prepared the annual accounts on a going concern
 basis.
 
 PUBLIC DEPOSITS
 
 The Company has neither invited nor accepted any public deposits during
 the year under review.
 
 PARTICULARS OF EMPLOYEES
 
 In terms of the provisions of Section 217(2A) of the Companies Act,
 1956, read with the Companies (Particulars of Employees) Rules, 1975 as
 amended, the names and the other informations are set out in annexure
 to the Directors'' report. However having regards to the provisions of
 Section 219(l)(b)(iv) of the said Act, the Annual Report excluding the
 aforesaid information is being sent to all the members of the Company
 and others entitled thereto. Any member interested in obtaining such
 particulars may write to the Company Secretary of the Company.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 Your company strives hard to take all measures to conserve energy and
 use the latest technology. The particulars relating to energy
 conservation, technology absorption, foreign exchange as required to be
 disclosed under section 217(l)(e) of the Companies Act,1956 read with
 the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules,1988 are annexed as Annexure A and forms part of this
 Report.
 
 ACKNOWLEDGMENT
 
 Your Directors would like to thank all the stakeholders and also place
 on record their appreciation for the assistance and co- operation
 received from our bankers, government authorities, employees, vendors
 and members during the year under review.  Your Directors are quite
 optimistic for support to be extended by all in the years to come.
 
 For and on behalf of Board of Directors
 
 (Sandip Jhunjhunwala)                              (A. Chatterjee)
 
 Vice Chairman &Managing Director                         Director
 
 Place: New Delhi
 
 Date: 21 May, 2011