I am happy to share with you your companys spectacular performance in
 2010-11 which saw it cross several new milestones. We surpassed
 previous years all time high consolidated net profit after tax (PAT)
 of Rs.  324 crore by 49 per cent thereby setting a new record at Rs.
 484 crore during the year.  Though the profitability in large measure
 was propelled by a dramatic improvement in the demand for packaging
 films, the other businesses also made significant contributions.
 
 At SRF, we continued to demonstrate our business leadership by building
 and augmenting new product and process capabilities. We made
 significant headway in our effort to complete approvals of our newly
 developed Polyester Tyre Cord Fabrics from some of the leading tyre
 majors. We diversified our product portfolio especially for the auto
 and the electrical segments by developing and commercialising poly
 carbonate based engineering plastics. And, we further stepped up our
 R&D efforts to discover and develop molecules for some of the worlds
 leading pharma and agro- chemicals manufacturers. The capability of the
 R&D team in the Chemicals Business is increasing all the time and we
 believe that they will be the growth-driver for the future of the
 Chemicals Business.
 
 Simultaneously we continued to work towards strengthening our long-term
 fundamentals and global competitiveness through continuous investments
 in adding, replacing and upgrading capacity and technology. Recognising
 the distinctive potential of growth in all our businesses, we embarked
 upon several projects worth around Rs. 1500 crore during the year.  We
 also took several strategic initiatives to expand our global
 operations. We entered into a joint venture to set up a Biaxially
 Oriented Poly Ethylene Terephthalate (BOPET) films plant in Bangladesh
 and obtained board approval for setting up a Biaxially Oriented
 Polypropylene (BOPP) films plant in South Africa.
 
 These developments clearly point to a brighter future. And, the credit
 must go to those who deserve this the most - our people who made
 concerted efforts to achieve a remarkable breakthrough in our companys
 performance. We continued to draw on our talent pool and our
 management way of TQM to build and improve upon our organisational
 capabilities in tune with changing business imperatives. Using IT as a
 platform we set off on a path of knowledge management making a
 paradigm shift in the way we contribute and collaborate across the
 company. Among other people development initiatives we worked on
 integration of our overseas units with the parent company through
 relevant policies and systems.
 
 More importantly, we launched a company- wide campaign to reiterate our
 commitment to living the organisational values. We also created and
 communicated a brand charter which defined what we stood for as an
 organisation. Sure, all these efforts are aimed at enabling our
 colleagues to align with our companys business proposition, which
 revolves around ethical values. There is no gainsaying the fact that
 adherence to these values is a bedrock of all our actions.
 
 Another vehicle that drives our businesses is the creation of societal
 value through sustainable means. Pursuing a purpose of changing the
 lives of the underprivileged in our community we continued to work on
 the identified areas of Education, Health Care- HIV AIDS, Natural
 Resource Management (NRM), and Affirmative Action in support of SC/ST,
 the historically disadvantaged people in India.
 
 In particular, we expanded our ambit of work in education through our
 social wing, SRF Foundation. We intensified our efforts to improve
 infrastructure and teachers training in all the 40 schools we have
 adopted in the Mewat region of Haryana. Many other companies,
 government agencies, NGOs, employee volunteers, educational institutes
 
 and the community at large joined us in our efforts to transform the
 lives of the children in these schools.
 
 Its truly satisfying to be able to contribute towards community
 development in a meaningful manner. Recognitions for our socially and
 environmentally responsible work further inspire us all to reaffirm our
 commitment to the cause. Its a matter of great pride for all of us
 that our Chemicals Business was conferred with the prestigious CII-ITC
 Sustainability Award-2010 for the third year in a row for its endeavor
 towards sustainable economic, environmental and social development. You
 will be happy to know that a consortium of Netherlands based Civil
 Society Organisations, selected our NRM project, the only one in Asia,
 as a unique example of NGO- Business Partnership to be presented at a
 learning event at Erasmus University, Rotterdam during the year. In
 line with our proactive approach towards managing climate change, we
 undertook an ISO 14064-compliant study to measure the carbon footprint
 of its Chemicals Business based at Bhiwadi during the year.
 
 The journey continues. We will continue to engage with our customers.
 We will continue to create value for our society. And, we will continue
 to spur innovation. Let me assure you that we will remain committed to
 bringing continuous improvements in all that we do – the work ethos
 that refect in the new tagline of your company, We always find a better
 way.
 
 I look forward with confidence to achieve total excellence.
 
 With kind regards,
 
 ARUN BHARAT RAM 
 Chairman