The Members;
 
 We take pleasure in presenting Sixteenth Annual Report of the Company
 together with the Annual Accounts (Standalone & Consolidated) for the
 year ended 31st March, 2011.
 
 Performance Highlights (Standalone):
 
                                                   (Rs. in Lacs) 
 
 Particulars                                2011              2010
 
 Turnover                               56767.45          50185.51
 
 Profit Before Interest, 
 Depreciation And Taxation               9340.80           6752.12
 
 Less : Depreciation                      663.55            632.00
 
 Profit Before Interest And Taxation     8677.25           6120.12
 
 Less : Interest                         1106.46           1201.04
 
 Profit Before Tax                       7570.79           4919.08
 
 Less : Provision For Taxation           2541.44           1792.55
 
 Net Profit After Tax                    5029.35           3126.53
 
 Balance Brought Forward                 3513.50           2805.73
 
 Balance Available For Appropriation     8542.85           5932.26
 
 Appropriation:
 
 Interim Dividend                         692.95            606.33
 
 Proposed Dividend                        692.95            606.33
 
 Tax On Dividend                          118.57            206.09
 
 General Reserve                         1500.00           1000.00
 
 Balance Profit Carried To 
 Balance Sheet                           5538.38           3513.50
 
 Earning Per Share (EPS)                   29.03             18.05
 
 Turnover                               72285.81          59019.32
 
 Profit Before Interest, 
 Depreciation And Taxation              14847.28          11199.78
 
 Less : Depreciation                      766.21            784.96
 
 Profit Before Interest And Taxation    14081.07          10414.82
 
 Less : Interest                         1275.86           1335.98
 
 Profit Before Tax                      12805.22           9078.84
 
 Less : Provision For Taxation           4509.68           3219.47
 
 Net Profit After Tax                    8295.54           5859.37
 
 Share of Profit Transfer To Minority     735.88              0.00
 
 Balance Brought Forward                 8457.74           6017.12
 
 Balance Available For Appropriation    16017.39          11876.49
 
 Appropriation:
 
 Interim Dividend                         692.95            606.33
   
 Proposed Dividend                        692.95            606.33
 
 Tax On Dividend                          230.18            206.09
 
 General Reserve                         3000.00           2000.00
 
 Balance Profit Carried To 
 Balance Sheet                          11401.31           8457.74
 
 Earning Per Share(EPS)                    43.64             33.82
 
 Results of Operations:
 
 Summary of Results for Fiscal Years 2011, 2010, and 2009
 
                                                Percentage   Percentage
                                               change 2010  change 2010 
                     2011    2010    2009       versus 201 Oversus 2009
 
 Revenue          72285.81  59019.32 53037.94      22.48%     11.28%
 
 Operating 
 Income            8295.54   5859.37  4413.63      41.58%     32.76%
 
 Earning per 
 share               43.64     33.82    25.48      29.04%     32.73%
 
 Total gross turnover of your Company rose by 22.48 % from Rs. 59,019.32
 Lacs in FY 2009-10 to 72,285.81 Lacs in FY 2010-11.  The profit before
 interest, depreciation and tax (PBIDT), has increased by 32.57% from
 Rs. 11,199.78 Lacs in FY 2009-10 to Rs.  14,847.28 Lacs in FY 2010-11.
 
 The Profit Before Tax (PBT) has increased by 41.04% from 9078.84 Lacs
 in FY 2009-10 to 12,805.22 Lacs in FY 2010-11 and the Profit After Tax
 (PAT) has increased by 29.02% from 5,859.37 Lacs in FY 2009-2010 to Rs.
 7,559.66 Lacs in FY 2010-11.
 
 Appropriations:
 
 Dividend:
 
 During the Year under review, your Directors had declared and paid
 interim dividend as per details given below:
 
                                                          (Rs. in Lacs)
 
 Interim Dividend 
 paid during the     Rate of Dividend  Amount of  Distribution 
                                                    tax paid     Total 
                                                                Outflow
 year ended 31st 
 March, 2011                           Dividend 
                                        paid       by the 
                                                   Company
 
 Declared on 29th 
 October, 2010            40%          692.95      115.09       808.04
 and paid on 15th 
 November, 2010
 
 Your Director''s are please to recommend a final Dividend of Rs. 4.00
 per share (40% on a par value of Rs. 10) for the approval of members.
 The Final Dividend if declared as above would involve an outflow of Rs.
 692.95 Lacs towards the Dividend {previous year Rs. 606.33} and Rs.
 115.09 Lacs towards dividend tax {previous year 103.05 Lacs} resulting
 in a total outflow of Rs. 808.04 Lacs as against 709.38 in the previous
 year. The Dividend Payout Ratio of your Company is 21.38 %.
 
 Transfers to Reserves:
 
 We propose to transfer Rs. 3000 Lacs (39.68% of net profit for the
 year- to the general reserve. An amount of Rs. 2943.57 Lacs is proposed
 to be retained in the Profit & Loss account.
 
 Credit Ratings:
 
 CRISIL has re-affirmed its ratings of ''AA-/Stable/P1 '' to the various
 bank facilities of Solar Industries India Limited (SIIL). The ratings
 reflect Solar Industries India Limited''s strong market position, good
 operating efficiencies (backed by prudent raw material procurement
 policies and backward integration), and strong debt protection
 measures. To arrive at its ratings, CRISIL has combined Solar
 Industries India Limited''s financial and business profiles with those
 of its subsidiaries.
 
 In addition to long Term rating, CRISIL has also assigned P1  rating to
 Solar Industries India Limited for Short term Commercial Paper.
 
 Commercial Paper:
 
 During the year under review, your Company has raised Funds through
 issue of Commercial papers of Rs. 25 Crores by earmarking the Working
 Capital Limit from Bank of India and State Bank of India.
 
 Details of these Commercial Papers are summarised below:
 
 Name of Bank              From              To         Rate of Interest
 
 Deutche Mutual Fund  25th May, 2010  24th August, 2010       5.40%
 
 SBI Global           18th August, 
                         2010         15th November, 
                                        2010                  7.40%
 
 Allahabad Bank       15th November, 
                         2010         15th February, 
                                         2011                 8.65%
 
 Directors:
 
 Directors Retiring by Rotation
 
 As per Section 256 of Companies Act, 1956 and provisions containing in
 Articles of Association of the Company provide that at least two-third
 of our Directors shall be subject to retirement by rotation. One third
 of these retiring Directors must retire from office at each Annual
 General Meeting of the shareholders. A retiring Director is eligible
 for re-election. Mr. Manish Nuwal, Mr. Kailashchandra Nuwal, Mr. Kundan
 Singh Talesra, and Mr. Anant Sagar Awasthi, retire by rotation and
 being eligible offer themselves for re-appointment at this Annual
 General Meeting. Boards of Directors have recommended their re-
 appointment for consideration of the Shareholders.
 
 Director''s Appointment
 
 In accordance with Section 262 of the Companies Act, 1956 and Article
 185 of the Articles of Association of the Company, Mr. Anand Kumar was
 appointed as a Non-Executive Independent Director in casual vacancy
 with effect from 29th October, 2010.  Mr. Anand Kumar would hold office
 till the conclusion of the Annual General Meeting of the Company
 scheduled to be held on 10th August, 2011.The requisite notices
 together with necessary deposits have been received from a Director
 pursuant to Section 257 of the Companies Act, 1956, proposing the
 election of Mr. Anand Kumar as a Non-Executive Independent Director of
 the Company.
 
 Director''s Re-appointment
 
 During the year under review, the Board of Directors had re-appointed
 Shri Satyanarayan Nuwal and Shri Roomie Dara Vakil as Executive
 Director for a period of 5 years and 3 years respectively from 1st
 April, 2011.
 
 Director''s Cessation
 
 Dr. Rishi Narain Singh, a Non-Executive Independent Director has
 resigned from the board effective from 29th October, 2010.
 
 The Board placed on record its deep sense of appreciation for
 invaluable contribution made by Dr. Rishi Narain Singh during his
 tenure as a Non-Executive Independent Director of the Company.
 
 Auditors & Their Observations:
 
 M/s Gandhi Rathi & Co. Chartered Accountants, Statutory Auditors of the
 Company will retire at the forthcoming Annual General Meeting, and
 being eligible, offer themselves for re-appointment. The Company has
 received a certificate from the Auditors to the effect that their
 re-appointment, if made, would be in accordance with Section 224(1B) of
 the Companies Act, 1956. The Board recommends their re-appointment.
 
 The notes to the accounts referred to in the Auditor''s Report are
 self-explanatory and therefore do not call for any further comments.
 
 Particulars of Employees:
 
 There are no personnel, who were paid with the salary of a limit more
 than that specified under section 217 (2A) of the Companies Act, 1956.
 
 Subsidiary Operations:
 
 As a purposeful strategy, your Company carries all its business
 operations through several subsidiary and associate companies which are
 formed either directly or as step-down subsidiaries or in certain cases
 by acquisition of a majority stake in existing enterprises.
 
 Amalgamation:
 
 During the year under review, Solar Components Pvt. Ltd.  (Wholly owned
 Subsidiary- amalgamated with Economic Explosives Ltd (Wholly owned
 Subsidiary- under the provisions of Sections 391 to 394 of the
 Companies Act, 1956.
 
 The said company was amalgamated, as per the order of the Hon''ble High
 Court of Judicature at Bombay Nagpur Bench, Nagpur dated 1st September,
 2010.
 
 Incorporation of Step Subsidiaries:
 
 During the year under review, following two step Subsidiary Companies
 were incorporated through our wholly owned subsidiary Solar Overseas
 Netherlands Cooperatie U.A.:
 
 & Solar Explochem Mauritius Ltd. at Mauritius.  & Solar Overseas
 Netherlands B.V. at Netherlands.
 
 Acquisitions:
 
 During the year under review, Solar Industries India Limited Acquired
 54% stake, through its Step Subsidiary Solar Overseas Netherlands B.V
 in following two Companies at Turkey:
 
 ILCI Patlayici Maddeler Sanayi ve Ticaret A.S.
 
 Patlayici Maddeler San. ve Tic. A.S. (Patsan),
 
 During the year under review, Solar Industries India Limited also
 acquired 70% stake, in Nigachem Nigeria Limited through its Subsidiary
 Solar Overseas Netherlands Cooperatie U.A.
 
 Further During the year under review, Solar Industries India Limited
 Acquired 65% stake, in Solar Explochem Zambia Limited through its
 Subsidiary Solar Overseas Netherlands Cooperatie U.A.
 
 In the year under review, Solar Industries India Limited acquired 100%
 stake, in Solar Overseas Singapore PTE Limited through its Subsidiary
 Solar Overseas Mauritius Limited.
 
 In the year under review, Solar Industries India Limited acquired 80%
 stake, in Solar Mining Services Australia PTY Limited through its step
 Subsidiary Solar Overseas Singapore PTE Limited.
 
 Exemption under section 212
 
 We have 12 subsidiaries.
 
 The Annual Report 2010-11 does not contain the financia statements of
 our subsidiaries, accordingly the Company will
 make available the audited annual accounts and related information of
 our subsidiaries, where applicable, upon request. These documents will
 also be available for inspection during business hours at our
 registered office in Nagpur, India. The same will also be published on
 our website, www.solarexplosives.com
 
 As per Section 212 of the Companies Act, 1956, we are required to
 attach the Directors'' Report, Balance Sheet, and Profit and Loss
 account of our subsidiaries to the Balance Sheet of Holding Company.
 The Ministry of Corporate Affairs, Government of India vide its
 circular no. 2/2011 dated February 8, 2011 has provided an exemption to
 companies from complying with Section 212, provided such companies
 publish the audited consolidated financial statements in the Annual
 Report.
 
 Statement pursuant to section 212 (8) of the Companies Act, 1956
 containing details of the Subsidiaries of the Company forms part of
 this Annual Report.
 
 Current Holding Structure of Solar Industries India Limited
 
 Company''s Philosophy on Corporate Governance:
 
 Corporate Governance philosophy of the Company is based on the
 principles of equity, fairness, transparency, spirit of law and honest
 communication. The Company believes that sound Corporate Governance is
 necessary to retain stakeholder''s trust and ensures efficient working
 and proper conduct of the business of the Company with integrity.
 Development of Corporate Governance guidelines is a continuous process
 which evolves over a period of time and undergoes changes to suit the
 changing times and needs of the business, society and the nation.
 
 Your Company has implemented the conditions of Corporate Governance as
 contained in Clause 49 of the Listing Agreement with the Stock
 Exchanges. A separate report on Corporate Governance and Management
 Discussion and Analysis along with necessary certificates is given
 elsewhere in this report. Also certificate by M/s Gandhi Rathi & Co.
 Chartered Accountants, Nagpur, Statutory Auditors of the Company,
 confirming compliance of the conditions of Corporate Governance as
 stipulated under clause 49 of the Listing Agreement, is annexed to this
 report.
 
 Management Discussion and Analysis Report:
 
 The Management Discussion and Analysis Report forming part of
 Director''s Report for the year under review, as stipulated under Clause
 49 of the Listing Agreement with the Stock Exchange(s) in India, forms
 part of this Annual Report. The report provides strategic direction and
 a more detailed analysis on the performance of individual businesses
 and their outlook.
 
 CEO/CFO Certification:
 
 As required under Clause 49 of the Listing Agreement, the CEO/CFO
 certification is attached with the Annual Report.
 
 Statement of Management''s Responsibility for Consolidated Financial
 Statements:
 
 Management is responsible for the preparation of the Consolidated
 Financial Statements and related information that are presented in this
 report. The Consolidated Financial Statements of the Company and its
 subsidiaries, which include amounts based on management''s estimates and
 judgments, have been prepared in conformity with Accounting Standard 21
 prescribed by The Institute of Chartered Accountants of India, forms
 part of this Annual Report and Accounts.
 
 The Company designs and maintains accounting and internal control
 systems to provide reasonable assurance at reasonable cost that assets
 are safeguarded against loss from unauthorised use or disposition, and
 that the financial records are reliable for preparing Financial
 Statements and maintaining accountability for assets. These systems are
 augmented by written policies, an organizational structure providing
 division of responsibilities, careful selection and training of
 qualified personnel and a program of internal audits.
 
 The Board of Directors, through its Audit Committee meets periodically
 with Management and Internal Auditors to discuss matters concerning
 Internal Controls and Financial Reporting.
 
 Director''s Responsibility Statement:
 
 Pursuant to section 217 (2AA) of the Companies Act, 1956 the Board of
 Directors hereby confirms that:
 
 i. In the preparation of the annual accounts of the Company for the
 year ended 31st March, 2011, the applicable Accounting Standards had
 been followed and there are no departures.
 
 ii. Accounting policies have been selected and applied consistently and
 judgments and estimates made that are reasonable and prudent so as to
 give true and fair view of the state of affairs of the Company at the
 end of the financial year and of the profit of the Company for that
 period.
 
 iii. Proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of this
 act for safeguarding the assets of the Company and detecting fraud and
 other irregularities.
 
 iv. Annual accounts for the year ended 31st March, 2011 have been
 prepared on a going concern basis.
 
 Appreciation & Acknowledgement:
 
 Your Directors wish to place on record their gratitude for the valuable
 guidance and support given by Government of India, various State
 Government departments, Financial Institutions, Banks, and various
 stake holders, such as, shareholders, customers, suppliers etc. The
 Directors also commend the continuing commitment and dedication of the
 employees at all levels which has been critical for the Company''s
 growth. Their dedication and competence has ensured that the Company
 continues to be a significant and leading player in an Explosives
 Industry. The Directors look forward to their continued support in
 future.
 
                                     For and on behalf of the Board
 
 Place : Nagpur                                 (Manish Nuwal)
 Date : 19th May, 2011                               Director