The Group has delivered an excellent performance for the year with
 Group turnover up 19% at Rs 5,821 crores (2008/09 Rs 4,874 crores) and
 Profit before tax and exceptional items also up 19% at Rs 625 crores
 (2008/09 - Rs 526 crores),
 
 Exceptional items at Rs 16 crores were well down on last years Rs 730
 crores, with last year benefitting by Rs 819 crores of foreign exchange
 gains on surplus cash held in US dollars. Such currency fluctuations
 have now been capped by conversion/forward sale of US dollar assets
 into sterling.
 
 Consolidated EPS before exceptional items was higher at Rs 51.07 versus
 Rs 47.39 in the previous year - up 8%. This year has been impacted by a
 higher effective rate of taxation compared to the previous year.This
 was due to a higher mix of profits from USA, where there is a higher
 rate of tax, and certain adjustments relating to tax rates for deferred
 taxation.
 
 The Group maintains a very strong balance sheet with net cash of Rs 706
 crores (2008/09 Rs 653 crores). As a result of this and our strong
 trading performance the directors are pleased to recommend an increased
 dividend of Rs 20.0 per share (2008/09 - Rs 1 7.5 per share).
 
 In September 2009, in conjunction with the European Bank of
 Reconstruction and Development, we acguired a 51% stake in the
 consolidated group of Suntyco Holding Limited (a Russian beverage
 company owning the Grand brand). This gives us access to a strong
 coffee and tea business in a key market and the results of this company
 have been consolidated for the seven months it has been a subsidiary,
 generating Rs 255 crores of turnover and Rs 35 crores of operating
 profit.
 
 The results also include a full years trading of Premium Foods, a
 leading distribution business in Polands growing tea market, acguired
 at the end of the previous financial year.
 
 These results-reflect the Groups strategy to support and invest behind
 
 its brands. It is the strength of these brands that has allowed the
 Group to record an excellent performance in a year when there have been
 such difficult economic conditions across the globe.
 
 Strategic update
 
 Over the last decade we have consistently made strategic moves to
 transform from what was predominantly a domestic Indian tea plantation
 business to what is now a global branded beverages business. Over 65%
 of the consolidated revenues now come from markets outside India,
 mainly in developed retail markets; and over 90% of the turnover is
 from branded products with the balance coming from business to business
 plantation and extraction activities.Tea constitutes 71% of the
 consolidated revenues with the balance from Coffee and other products;
 five years ago tea represented nearly the entire Group turnover.
 
 The tea and coffee markets continue to grow globally, with higher
 growth in developing geographies. We continue to access opportunities
 beyond ambient tea and coffee with water and othergood for you
 drinks spear heading these initiatives.
 
 Our mission is to make the world a better place through life-enhancing
 sustainable hydration, providing products that deliver physical and
 functional benefits as well as satisfying emotional and wellbeing
 needs. And our vision is to be the leading good for you beverage
 company in the world.
 
 We will continue to grow in our current stronghold markets through the
 exploitation of great new tea and coffee products. We will move into
 new channels, capturing greater share in those parts of the market
 where there is growth, addressing new need states and new consumer
 segments.
 
 While we will pursue disruptive innovation in our areas of strength, we
 will seek to partner with others in other beverage segments that are
 aligned with our mission.These partnerships will either help us build
 scale or enable us to acquire interests in new, emerging, fast-growing
 categories.
 
 The journey has already begun and I am pleased to report that, since
 the year-end, we have announced a non- binding memorandum of
 understanding with Pepsico to form a joint venture in the area of
 non-carbonated ready-to- drink beverages, focused on health and
 enhanced wellness.
 
 In order to reflect the current nature of the Group and its vision for
 the future, we have decided that the company should be renamed Tata
 
 Global Beverages Limited. Our new name signals both our intent to be
 truly global and our brave and successful transition from being a tea
 and coffee commodity business to one focused on delighting consumers
 across the world with great-tasting brandedgood for youbeverages.
 
 It also demonstrates our pride in our Tata parentage and signals our
 intention to build a new and strong corporate brand within the Tata
 Group.  A name with such heritage brings with it the continuing
 responsibility of living up to the Tata philosophy of Leadership with
 Trust but we also have the opportunity of filling the name with our
 own meaning, creating a powerful image for our company which reaches
 out to consumers, customers, employees, suppliers and partners alike.
 
 Board of directors and staff colleagues
 
 Mr. Y H Malegam and Mr. D B Engineer retired from the Board on
 
 28 January 2010. Both Mr. Malegam and Mr. Engineer had been associated
 with the Company for a very long time and had made significant
 contributions to the growth of the Group. We wish to record our
 appreciation of the distinguished services rendered and
 the rich and valuable contributions made by both of them.
 
 Ms. Ranjana Kumar was appointed to the Board with effect from
 29 January 2010 and Mr. Ajay Shankar was appointed with effect from
 30 April 2010. We welcome them both and their individual skill sets
 will be a significant asset to the Board.
 
 The major agenda during the year for our staff colleagues was to
 integrate and re-organise the Group
 into an organisational structure more appropriate for a large global
 beverage entity.
 
 For the first time we now have consistent reward practices in place
 with an appraisal process that is robust and interactive. We have a
 process to identify our talent and use that to focus and prioritise our
 development investment.
 
 The organisation of our people is now fully aligned with our strategic
 agenda across geographies, functions and categories. We are developing
 a new culture to support our stretching aspirations to grow our core
 businesses and drive disruptive innovations.
 
 The Groups continuing progress is the achievement of everyone in the
 business. I and my fellow directors would like to convey our
 appreciation to all employees for their energy, enthusiasm and
 dedication during 2009/10 without which such performance would 
 not have been possible.
 
 The future
 
 Closer integration and alignment globally is already giving us the
 ability to compete far more effectively, tackling challenges and
 realising opportunities in a way that would not have been possible
 before.
 
 It is clear that the current environment is challenging but we are
 confident that our strong brands, capable management team and focused
 investment program will allow us to continue to deliver good returns to
 shareholders and become the global leader in branded good for
 youbeverages.
 
                                           R.K. Krishna Kumar
 
                                                Vice-chairman