The Directors are pleased to submit their Report together with the
 Audited statement of accounts for the year ended 31st March, 2011.
 
                                           2010/11              2009/10
                                      Rs. in Lakhs         Rs. in Lakhs
 
 Profit from Operations 
 before Other Income and 
 Interest                                  4280.33              1963.11
 
 Add: Other Income                         2038.80              3791.79
 
 Operating profit before 
 Interest                                  6319.13              5754.90
 
 Less: Interest                             522.55               754.98
 
                                           5796.58
 
 Add: Exceptional Income                   1065.60                    -
 
 Profit Before Tax                         6862.18              4999.92
 
 Provision for Tax: Current 
 Year                            1477.00               1292.71
 
 Deferred Tax                   (123.28)                508.23
 
                                           1353.72              1800.94
 
 Profit After Tax                          5508.46              3198.98
 
 Add: Surplus b/f from PY                  1420.09               842.15
 
 Amount available for 
 appropriation                             6928.55              4041.13
 
 General Reserve No. I            550.84                319.90
 
 General Reserve No. II           311.17                284.42
  
 Debenture Redemption Reserve 
 A/c                             (692.80)   169.21      383.29   987.61
 
 Dividends
 
 Interim Dividend                 933.85
 
 Final (Proposed)                 933.85               1400.78
 
 Tax on Dividend                  306.60   2174.30      232.65  1633.43
 
 Balance carried forward                   4585.04              1420.09
 
 
 TURNOVER
 
 Your Companys turnover during the year under review was Rs.422.09
 crores as compared to Rs.373.42 crores in the previous year,
 registering an increase of 13% over last year.
 
 PROFITS
 
 Profit from Operations before other income and interest for the year
 ended 31st March, 2011, stood at Rs.42.80 crores as against Rs.19.63
 crores in the previous year, reflecting an increase of 118%. Other
 income includes dividends from subsidiaries of Rs 19.82 crores
 (previous year Rs 37.27 crores). Profit before tax at Rs. 68.62 crores
 vis-à-vis Rs 50.00 crores in the previous year reflected an increase of
 37%. Profit after tax in 2010-11 stood at Rs.55.08 crores as against Rs
 31.99 crores in the previous year.
 
 DIVIDEND
 
 Your Directors have recommended a final dividend of Rs 5.00 per share
 which together with the interim dividend of Rs. 5.00 per share declared
 on the 28th December, 2010 works out to a total dividend of Rs.10.00
 per share aggregating to Rs.2174.30 Lakhs for the year 2010-11
 including Dividend Tax of Rs.306.60 Lakhs.
 
 COFFEE SCENARIO:
 
 The last year began on a very steady note for both Arabica and Robusta.
 Going by the prospects of the biggest ever ‘on year crop in Brazil
 that would ultimately result in only a marginal surplus in supply, no
 changes were witnessed in the prevailing price levels.
 
 However, market started a steady but significant upward journey from
 end June onwards and the Arabica market appreciated by about 100% by
 the end of the year. Robusta was not left untouched by the explosive
 increase in Arabica but the extent of increase was far less at about
 50%, as it showed a greater supply surplus than Arabica. Initially,
 most analysts attributed the rise to pure fund play based on the huge
 increase in positions held by the funds. A correction was predicted in
 the short- term. However, by October it was obvious that the increase
 was not going to be short term and traders and roasters who had reduced
 coverage expecting a correction were forced to scramble and cover as
 the market continued to rise.
 
 Some of the price increase has been passed on to the consumer with no
 impact on the growth in consumption so far. However, the view is that
 any further price increase will impact demand growth from here onwards.
 
 TEA SCENARIO
 
 Black Tea production of major producing countries during
 January/December 2010 stood at 1877 m.kgs as against 1773 m.kgs in
 2010, showing an increase of 104 m.kgs.
 
 The Kenyan Crop and Srilankan crop showed an increase of 85 m.kgs and
 38 m.kgs respectively in 2010 as compared to the previous year. However
 all India production during January/December 2010 was 966.4 m.kgs as
 against 979 m.kgs for 2009 -- the North India production was 723.00 m.
 kgs as against 734.9 in the previous year and the South India
 production stood at 243.3 m.kgs as against 244.1 m.kgs in previous year
 2009.
 
 Indian exports in 2010 were estimated at 193.3 m.kgs as against 197.9
 m.kgs in the previous year. Indian consumption continues to rise by 3
 to 3.5% p.a which amounts to approximately 25m to 26 m.kgs. The carry
 forward stock in 2010 was higher as compared to the previous year.
 However, this year there is no carry over stock due to lower production
 in the last quarter of 2010.
 
 The current year unlike 2010, has started with a significant drop in
 South Indian production. During January/February 2011, the South Indian
 production was 30.25 m.kgs as against 34.83 m.kgs in January/February
 2010 and the North Indian production stood at 7.42 m.kgs as against
 10.23 m.kgs.
 
 At the global level also, there has been a drop in tea production with
 Sri Lanka producing 42.63 m.kgs in January/February 2011 as compared to
 51.97 m.kgs in the corresponding period in the previous year, while
 Kenyas production was 62.71 m.kgs as compared to 72.55 m.kgs.
 
 The supply situation, as of now is low in India but is likely to
 improve in May/June. Once again quality teas are expected to witness
 good demand from the domestic market and continue to sell well at
 premium while Medium/Plainer varieties for both Orthodox/CTCs should
 sell in line with quality.
 
 OPERATIONS
 
 Plantations:
 
 The Company has harvested an Arabica crop of 1670 MT as against 2171 MT
 in previous year. The Arabica production has been poor across all the 3
 planting Districts of Karnataka viz. Coorg, Hassan and Chikmagalur. The
 Coffee Board has attributed the reasons for poor crop to failure of
 rainfall during crucial months and also unusual & continuous rains
 during October and November 2010.
 
 In Robusta, after the record crop in the previous year, the estates
 harvested the estimated crop of 6620 MT. The Hassan estates did
 extremely well to harvest a record crop in the current year. With the
 good winter showers received during October and November 2010, the
 bushes are looking healthy and the prospects for the coming year appear
 to be good and the crop estimates indicate a good crop in both the
 growing areas of Coorg and Hassan.
 
 The Company has achieved a total Tea production of 7.334 m.kgs at
 Anamallais and the two estates in Karnataka as against the record crop
 of 7.994 M.kgs during previous year. Major part of the shortfall was in
 the January to March period with very little rainfall.
 
 On account of delayed ripening, only 535 MT of pepper has been
 harvested upto 31st March, 2011. With the balance crop being harvested
 in April/May, the total crop will be 1026 MT as against 1183 MT. The
 drop is on account of the lower yield in the South Coorg estates caused
 by uneven rainfall.
 
 Curing Works:
 
 The Companys Curing Works at Kushalnagar cured a total of 12959 MT
 during the year under review as against 10427 MT in the previous year.
 In addition, 356 MT of Monsooned Coffee was processed as against 331 MT
 in the previous year.
 
 The unit handled higher volumes during the year due to the very good
 Robusta crop picked during 2009-10 season. The unit continued to
 achieve good financial performance during the year due to sustained
 cost reduction initiatives in the factory and better husk sale
 realization.
 
 The ISO 22000 certified Pepper Unit inside the Kushalnagar Curing Works
 premises handled the grading and steaming operations of the Companys
 entire pepper produce.
 
 Timber Value Addition:
 
 The Company continues to utilise its Timber extracted by rotation and
 wind fallen to manufacture Marine Plywood and related products. The
 Companys high-end products such as Fire Retardant Composite panels,
 Sound Absorption plywood and shuttering plywood have performed well
 during 2010/11. In order to get better realization for the low end
 quality timber, the Company has decided to value add this timber by
 sawing into sizes of different thickness and width, to cater to the
 requirements of export packing and construction industry.
 
 Exports:
 
 During the year 2010-11, your Company exported 4819 MT of coffee as
 against 3633 MT in the previous year.
 
 Your companys thrust to grow the market for differentiated coffee
 continued to show results with the volume growing to 1847 MT.
 
 Quality Awards:
 
 Your Companys efforts in producing Best Coffees to meet the varying
 needs of the special customers at the international level are
 continuing. A total of 10 awards were won by your Company at the Fine
 Cup Award Cupping competition – 2010 held in California, USA. Out of
 these, 7 are Regional best awards and 3 are best awards for Specialty
 coffee. Samples from the Companys different estates have been also
 sent for the 2011 competition, the results of which are awaited.
 
 Instant Coffee Division
 
 During the year under review, the instant coffee operations stabilized
 and focus was laid on processes and people development in order to
 deliver higher value to customers. Total exports in volume terms stood
 at 5659 MT as compared to 3536 MT in the previous year, an increase of
 60%. The period was also well utilized to improve the Freeze dried
 process by carrying out steady operations and stretching capacity
 utilization, with focus on Quality. This enabled the Company to move
 its FDC new product variants from the Economy segment and position
 them in the Main stream segment. The agglomeration plant operations
 at both the units were also stabilized. The year has shown a
 significant improvement in sale of agglomeration and freeze dried
 coffee products over last year by 63% and 108% respectively.
 
 Focus on Non-Russian markets has enabled the Company to make inroads
 into West Africa, Korea and Japan. Key customer relationship building
 approaches are under progress. This will give your Company a balanced
 market approach covering most of the key geographies. The Company has
 entered into an agreement with Tata Global Beverages Overseas Ltd. for
 availing services with regard to marketing the Companys soluble coffee
 in territories of Russia, Baltic, CIS and Poland and such other
 countries as the parties may mutually agree with effect from 1st
 November, 2010.
 
 The focus continues to be on safety, cost, quality, and sustainability.
 Your Company proposes to use Renewable energy (wind power) for its
 operations which will also help support the Companys green initiative.
 
 The Instant coffee unit at Theni received the ISO 9001:2008
 accreditation during the year from M/s. Bureau Veritas certification.
 This is in addition to the ISO 22000 and SA 8000 accreditations the
 unit already has.
 
 TRADING OPERATIONS
 
 Coffee Value-Added Products
 
 Your Company is currently holding on to its volumes in the Roast and
 Ground coffee segment with a 2.5% market share. Your Company continues
 to be present in the instant coffee segment through supplies to private
 labels of key retail chains in India.
 
 Vending business is in the midst of a strategic shift from the current
 premix based vending to pod based vending, keeping in mind the consumer
 requirements of modern, hygienic, good quality coffee which is also
 economical.
 
 PLANTATION TRAILS
 
 Your Companys Hospitality business has seen an increase in occupancy
 levels as well as turnover. Customer satisfaction levels have seen an
 improvement over the previous year. The aim is to create a world-class
 Plantation experience for the Companys guests at Plantation Trails.
 Your Company aspires to be the number one vacation or corporate getaway
 choice for customers visiting Coorg and Chikmagalur. Plans for
 restoration and up-gradation of the Companys heritage bungalows have
 been consolidated and the work in this regard will commence shortly.
 
 STARBUCKS
 
 The Company has entered into a non binding Memorandum of Understanding
 (MOU) with Starbucks Coffee International, Inc.  (Starbucks) for a
 potential strategic collaboration in areas of Sourcing of coffee beans,
 coffee roasting facilities etc. relating to Starbucks entering retail
 operations in India initially and for other Asian countries over time.
 
 The MOU also envisages discussions and evaluating appropriate
 opportunities across suitable businesses of associate Tata Companies in
 the food and beverage categories.
 
 CAPITAL EXPENDITURE
 
 During 2010-11, Rs.1249.09 Lakhs was incurred primarily on account of
 welfare, modernisation, up-gradation and other programmes undertaken in
 the various units of the Company.
 
 SUBSIDIARY COMPANIES
 
 Eight O Clock Coffee Company
 
 Eight O Clock Coffee Company during the year registered a Turnover of
 Rs. 912.99 Crores as against Rs. 959.08 Crores in the Previous Year.
 The Company faced challenging conditions due to sharp increase in the
 Coffee terminal, especially in Arabica Coffee, which it uses for its
 products. The sharp surge led to the price to the consumer being
 increased. This had an impact on volumes which dropped from 43.9 mm lbs
 in the previous year to 39.5 mm lbs in the year under review. The
 Profit before Tax at Rs. 118.82 Crores (Rs.135.60 Crores in the
 previous year) and Profit after Tax at Rs. 72.58 Crores (Rs.76.87
 Crores in the previous year) registered a decrease of 12.37% and 5.58%
 respectively over the previous year.
 
 During the year the foodservice business was merged into the Empirical
 Group. The Brands packaging graphics was upgraded, which scored
 extremely favorably in consumer research. EOC paid out Dividend
 amounting to USD 8 mm in the year 2010-11.
 
 Alliance Coffee Limited
 
 The Marketer Agreement with Alliance Coffee Limited (Alliance) was
 terminated with effect from close of business hours on 31st October,
 2010. Your Company has purchased the entire 49% shareholdings of Beeyu
 Overseas Limited and its Associates in Alliance, following which
 Alliance has become a wholly subsidiary of the Company with effect from
 1st May, 2011.
 
 The gross income of Alliance for the year ended 31st March, 2011 was
 Rs.382.24 Lacs as against Rs. 458.83 Lacs during the previous year.
 Profit before tax was Rs. 273.01 Lacs as against Rs. 327.75 Lacs.
 Profit after tax stood at Rs. 186.83 Lacs as against Rs. 215.27 Lacs in
 the previous year. The gross income includes income from commission up
 to 31st October, 2010 viz. the period up to which the Marketer
 Agreement between Tata Coffee and Alliance was valid.
 
 The Ministry of Corporate Affairs has vide Circular dated February 8,
 2011 exempted holding companies from attaching the accounts of its
 subsidiaries to its balance sheet. In terms of the said Circular and as
 required under the Listing Agreement with the Stock Exchanges, the
 consolidated financial statements of the Company together with its
 subsidiaries are attached. Any shareholder may ask for a copy or
 inspect at the Registered/Head Office a copy of the Annual Accounts of
 Alliance Coffee Limited and the consolidated financial statements of
 Consolidated Coffee Inc., USA which includes the Eight O Clock Coffee
 Company financials.
 
 CORPORATE GOVERNANCE
 
 The Company has been in compliance with all the conditions of corporate
 governance as stipulated in Clause 49 of the Listing Agreement with the
 Stock Exchanges. The detailed Report on Corporate Governance in terms
 of Clause 49 of the Listing Agreement and a certificate of the Auditors
 thereon is attached to the Annual Report.
 
 EMPLOYEES WELFARE
 
 Health and welfare of employees has been and continues to be the focus
 area at Tata Coffee. With the changing economic scenario and the
 growing market challenges globally, appropriate measures have been
 adopted with regard to employee welfare. A Human Development Index
 (HDI) study has been initiated and improved facilities provided to the
 employees in the areas of housing, education, health and hygiene. The
 re-certification during the year of SA-8000 - 2008 standard following a
 detailed audit by M/s.  Det Norske Veritas (DNV) bears testimony to the
 Companys commitment to comply with international requirements under
 Social Accountability, which are beyond statutory norms. The Company
 has also been certified under Rainforest Alliance, which reflects its
 commitment towards protecting and preserving the environment and eco
 system, thus ensuring a safe workplace and living conditions not only
 for the Companys employees but also for the community around. The
 Reward and Recognition practices introduced two years ago have been
 reinforced and deployed across the Company in order to encourage and
 foster employee engagement. The Companys aim is to be a provider of
 workforce facilities at par with world-class standards.
 
 DIRECTORATE
 
 Mr. M. Deepak Kumar was appointed as Additional Director by the Board
 at its meeting held on 25th October, 2010. At the said meeting Mr.
 Kumar was also appointed as Executive Director – Finance for a period
 of 3 years with effect from 25th October, 2010. As Additional Director,
 Mr. Kumar holds office up to the date of the ensuing Annual General
 Meeting of the Company in terms of Article 101 of the Articles of
 Association read with Section 260 of the Companies Act, 1956. The
 Company has received a notice from a Member under Section 257 of the
 Act signifying his intention to propose the appointment of Mr. Kumar as
 Director at the forthcoming Annual General Meeting.
 
 Mr. R. Govindarajan who retires by rotation at the forthcoming Annual
 General Meeting has informed the Company that he does not wish to offer
 himself for re-election as a Director of the Company. As required under
 Section 256(4) of the Companies Act, 1956, a resolution for not filling
 the vacancy caused by Mr. Govindarajans retirement has been included
 in the Agenda of the Annual General Meeting. Your Directors wish to
 place on record their appreciation of the contributions made by Mr.
 Govindarajan during the period of his association with the Company.
 
 Mr. U. M. Rao and Prof. Arun Monappa retire by rotation and are
 eligible for re-appointment.
 
 SERVICE TO THE COMMUNITY
 
 The Coorg Foundation, a Public Charitable Trust established by TATA
 Coffee Ltd continues to provide assistance to many individuals and
 institutions in the field of Health Care, Education, Sports, Culture
 and Environment.
 
 In the field of Health Care, the Foundation provided grants to
 institutions to conduct free eye camps and treat patients belonging to
 the lower income group. To support higher education, the Foundation
 continued to provide educational scholarships to the students studying
 in diploma & professional courses. Merit Awards were given to students
 securing ranks in Kodagu District. In the field of Sports, upcoming
 talented youths continue to be encouraged by providing scholarships to
 undergo training & take part in international events. To promote and
 encourage culture, the foundation conducted the annual Art-in- Action
 programmes which provide opportunity to the rural children in the field
 of Drawing & Painting, Public Speaking and Bharathnatyam. In the field
 of environment, the Foundation provided grants to conduct awareness
 programme on utilization and conservation of natural resources.
 
 SWASTHA, the Project started by The Coorg Foundation, for differently
 abled persons continues to do well at its centres at Suntikoppa and
 Pollibetta. Suntikoppa has 100 students clustered into two streams-
 Education and Rehabilitation and Pollibetta has 20 participants in the
 Rehabilitation programme. During the year, Swastha initiated Community
 Based Rehabilitation Programme (CBR) at Somwarpet Taluk, a concept that
 caters to the needs of the differently abled, taking care of the needs
 of the respective communities, moving away from a central location.
 Under this concept specialist trainers visit the community where
 differently abled people are located and provide the required package
 of inputs. This is a cost effective method of reaching out to a larger
 number of needy persons.
 
 PARTICULARS OF EMPLOYEES
 
 Information required under Section 217(2A) of the Companies Act, 1956
 read with The Companies (Particulars of Employees) Rules, 1975 is given
 in the Annexure forming part of this Report. However, as per the
 provisions of Section 219(1)(b)(iv), the Report and Accounts are being
 sent to all Shareholders of the Company excluding the Statement of
 Particulars of Employees.  Any Shareholder interested in obtaining such
 particulars may inspect the same at the Registered Office of the
 Company or write to the Company for a copy.
 
 PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 The Statement pursuant to Section 217(1)(e) of the Companies Act, 1956
 read with The Companies (Disclosure of Particulars in the Report of the
 Board of Directors) Rules, 1988 is attached.
 
 RESPONSIBILITY STATEMENT OF THE BOARD OF DIRECTORS
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors,
 based on the representation received from the operating management
 confirm:
 
 (i) that in the preparation of the accounts for the financial year
 ended 31st March, 2011, the applicable accounting standards have been
 followed and that there are no material departures;
 
 (ii) that they have selected such accounting policies and applied them
 consistently and made judgements and estimates that were 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 profits of the
 Company for that period;
 
 (iii) that they have taken proper and sufficient care to the best of
 their knowledge and ability for the maintenance of adequate accounting
 records in accordance with the provisions of the Companies Act, 1956
 for safeguarding the assets of the Company and for preventing and
 detecting fraud and other irregularities;
 
 (iv) that they have prepared the accounts for the financial year ended
 31st March, 2011 on a ‘going concern basis.
 
 AUDITORS
 
 M/s. N.M. Raiji & Co., and M/s. SNB Associates, Auditors of the Company
 hold office till the conclusion of the ensuing Annual General Meeting.
 The Auditors have furnished the certificate under Section 224(1) of the
 Companies Act, 1956, of their eligibility for re-appointment.
 
 
 
 
                                                 On behalf of the Board
 
                                                     R.K. KRISHNA KUMAR
                                                               Chairman
 
 
 Place : Mumbai 
 Dated : 13th May, 2011