The Directors present their Seventy-fourth Annual Report with the
 Audited Statement of Accounts for the year ended 31st March, 2011.
 
 2.  FINANCIAL RESULTS :                             Previous Year
                                         Rupees       Rupees
                                     (in crores)     (in crores)
 
 Total Income                            247.28        232.62
 
 Profit before tax                       234.47        222.81
 
 Less: Provision for tax                  35.88         28.89
 
 Profit after tax                        198.59        193.92
 
 Balance brought forward from the 
 previous year                           194.22        131.86
 
 Amount available for appropriation      392.81        325.78
 
 The Directors have made the following 
 appropriations 
 
 Interim Dividend on Ordinary Shares      77.18         62.02
 
 Tax on Dividend                          12.82         10.54
 
 Reserve Fund                             40.00         39.00
 
 General Reserve                          20.00         20.00
 
                                         150.00        131.56
 
 leaving a balance to be carried 
 forward of                              242.81        194.22
 
 3.  OPERATIONS :
 
 The total income of the Company during the year was Rs.247.28 crores
 against Rs.232.62 crores in the previous financial year. The increase
 in total income was mainly due to increase in dividends received on
 investments, interest income and other miscellaneous income. The total
 expenditure during the year increased mainly due to increase in staff
 costs and other miscellaneous expenses during the year.
 
 The profit before tax for the year under review was higher at Rs.234.47
 crores against Rs.222.81 crores in the previous year. The profit after
 tax for the year under review was marginally higher at Rs.198.59 crores
 compared to Rs.193.92 crores in the previous year. There was a higher
 provision for taxation of about Rs.35.88 crores as compared to Rs.28.89
 crores in the previous year, commensurate with the increase in the rate
 of Minimum Alternate Tax from 17% to 20% approximately, applicable
 primarily to profit on sale of long term investments.
 
 The basic and diluted earnings per share (EPS) computed in accordance
 with the Accounting Standard 20 issued by the Institute of Chartered
 Accountants of India was Rs.41.17 per share and Rs.39.65 per share
 respectively as against Rs.49.64 and Rs.39.35 per share respectively,
 for the previous year.
 
 4.  DIVIDEND :
 
 An interim dividend of Rs.16.00 per share (previous year: Rs.15.00 per
 share) was paid towards the end of the financial year in February, 2011
 on the Companys paid-up Ordinary Share Capital of Rs.48.24 crores to
 those shareholders whose names stood on the Register of Members on the
 record date i.e. 8th February, 2011. Accordingly, the Directors have
 decided not to recommend any final dividend for the year 2010-2011.
 
 5.  INVESTMENT PORTFOLIO :
 
 A summarised position of the Companys portfolio of investments is
 given below :-
 
                                                   As on 
                                           31.03.2011     31.03.2010
                                           Rupees          Rupees
                                           (in crores)    (in crores)
 
 QUOTED INVESTMENTS (Long Term and Current) -
 
 Net Book value                             931.06          761.63
 
 Market value                              3304.29         2823.46
 
 UNQUOTED INVESTMENTS
 
 (including Mutual Funds and application 
 money)-
 
 Net Book value                             359.82          543.89
 
 Estimated value (please see para below)    754.24          814.61
 
 TOTAL BOOK VALUE
 
 Net Book value of all investments         1290.88         1305.52
 
 TOTAL MARKET VALUE
 
 Total market value of quoted investments 
 and estimated value of unquoted investments 
 (subject to tax as applicable)            4058.53         3638.07
 
 BANK DEPOSITS AND INTERCORPORATE DEPOSITS  330.50          217.00
 
 TOTAL NUMBER OF COMPANIES (excluding 
 mutual funds)                                 205             197
 
 The Net Asset Value (NAV) of the Companys equity share, as computed by
 the management, was Rs.910 before tax (Rs.795 after tax) per share as
 on 31st March, 2011. The NAV is computed on the basis of the market
 value of quoted investments, NAVs of unquoted mutual funds, most of the
 other equity investments in unlisted companies taken on the basis of
 the last available independent valuations based on the balance sheets
 available as at 31st March, 2010, and the relatively small balance of
 unquoted investments taken at respective book values.
 
 A provision for diminution in value of investments of Rs.1.32 crores,
 no longer required, has been written back to the Securities Premium
 Account. Members attention is invited to Note 2 to the Notes to
 Accounts.
 
 The Directors confirm that all the investments held by the Company,
 except those held as ‘Current Investments, are long term investments
 and would normally be held for more than one year from the date of
 acquisition, unless otherwise decided in specific cases. Investment in
 the category of ‘Current Investments which, for accounting and other
 purposes, is so classified at the time of making the investment and is
 indicated separately in the list of investments shown in the relevant
 schedule in the Balance Sheet.
 
 The Company continues to invest in Tata and non-Tata companies, both in
 the listed and unlisted categories, though investments in Tata
 companies generally constitute a larger proportion and are of a longer
 term and strategic nature .  
 
 
 10.  DIRECTORS :
 
 Mr. N.A. Soonawala and Mr. K.N. Suntook retired from the Board of
 Directors on 24th June, 2010, upon their reaching the stipulated
 retirement age adopted by the Board.
 
 Consequent upon the resignation of Mr. N.A. Soonawala as the Chairman
 of the Company, the Board unanimously appointed Mr. Noel N. Tata and
 Mr. F. N. Subedar as Chairman and Vice Chairman of the Company
 respectively with effect from 24th June, 2010.
 
 Pursuant to the provisions of the Companies Act, 1956, and the
 Companys Articles of Association, Mr. F.N. Subedar, Mr. A.B.K. Dubash
 and Mr. H.N. Sinor retire by rotation but are eligible for re-
 appointment.
 
 The Board commends their re-appointment as Directors of the Company.
 
 11.  AUDITORS :
 
 Deloitte Haskins & Sells, Chartered Accountants, who are the statutory
 auditors of the Company, hold office in accordance with the provisions
 of the Act upto the conclusion of the forthcoming Annual General
 Meeting and are eligible for re-appointment.
 
 12.  GENERAL :
 
 Being an investment company, the provisions regarding conservation of
 energy and technology absorption are not applicable to the Company.
 
 There were no foreign exchange earnings and outgo other than those
 mentioned in Notes 4 to 6 to the Accounts.
 
 A statement giving particulars of employees as required under Section
 217(2A) the Companies Act, 1956 read with the Companies (Particulars of
 Employees) Rules, 1975, forms part of this Report.  However, pursuant
 to the provisions of Section 219(1)(b)(iv) of the Act, the Report and
 Accounts are being sent to the Members excluding the aforesaid
 statement. Any Member interested in obtaining a copy of the said
 statement may write to the Company Secretary at the Registered Office
 of the Company.
 
 A report on Corporate Governance, in accordance with Clause 49 of the
 Listing Agreement with the Stock Exchanges is set out separately for
 the information of the shareholders.
 
 On behalf of the Board of Directors,
 
 NOEL N. TATA 
 Chairman.
 
 Mumbai, 10th May, 2011.