Dear Shareholders,
 
 It is my pleasure to share with you a review of our operations in the
 past year and my thoughts on the future. I thank you most sincerely for
 your confidence and trust in our Company and management.
 
 Sugar Business
 
 The fiscal year 2010-11 was another difficult year for the Indian Sugar
 Industry. Sugar production grew by 30% over the previous season to
 reach 24.4 million tonnes.
 
 A significant increase in the cost of the key input sugarcane, and
 range bound sugar prices during the year had a serious impact on
 profitability. The availability of bagasse remained low, due to the
 lower sugarcane crushed during the year, resulting in lower income from
 co-generation operations. The lower cane crush also limited molasses
 production. However, with a proper mix of Extra Neutral Alcohol (ENA),
 Ethanol and Rectified Spirit, the distillery recorded better
 Profitability compared to the last year.
 
 Regulation of the sugar industry, both at the
 State and Central Government level, is the main cause for the downward
 spiral in the fortunes of this industry. We are hopeful that the recent
 pronouncement of the Food Minister, will result in the required
 deregulation of at least the levy sugar (PDS) system and open market
 releases. For our sugar industry to be able to stand to the global
 competition, we need to also deregulate or link cane prices with sugar
 prices, and do away with cane area reservation. This will be of
 tremendous benefit to the farmer, and allow the industry to make a
 reasonable return. At the moment, neither Government nor Industry
 resources are being used to increase the productivity of cane, and this
 now become crucial for the long term survival of a healthy,
 self-sufficient domestic sugar industry.
 
 Despite the increased cane price announcement for the season 2011-12,
 operating performance of the sugar business group is expected to be
 better than the year under review. Healthy and stable sugar prices with
 better capacity utilisation of our co- generation and distillery
 facilities, will improve the sugar division''s results.
 
 While raw material and sugar prices are beyond our control, we are
 staying focused on enhancing operational efficiencies, and
 strengthening our collaborative engagement with the farmers through a
 sustained cane development programme.  Our cane development efforts are
 focused on educating the farmers, and we act as facilitators in helping
 them implement various yield enhancing techniques. We also supply them
 with improved cane seed varieties.
 
 Engineering Business
 
 Unlike our pure-play sugar peers, we enjoy the advantage of being a
 sugar plus company, courtesy of our gear and water treatment
 businesses. Both businesses witnessed a growth in profitability and
 turnover during the year. The steam turbine business was demerged into
 Triveni Turbine Ltd. (TTL) pursuant to the Scheme of Arrangement from
 the appointed date on 1st October 2010 and thus, no steam turbine
 operations have been included in the results for the year under review.
 The figures of the current year are therefore not comparable with those
 of the previous year.
 
 The Water & Wastewater Treatment Business (WBG) recorded a growth in
 sales during the year which was higher than the average of the
 industry. It is currently undertaking its largest project for the
 Municipality of Agra.  WBG secured water management jobs in industrial
 segments in new geographical regions during the year and received an
 award from Frost & Sullivan, a leading global research group, for
 achieving the highest growth in the Indian Water & Wastewater Treatment
 Industry.
 
 The Gear Business Group (GBG) performed well and in line with our
 estimates. Our strategy was to aggressively focus on the aftermarket
 business and this helped in maintaining high profitability margins.
 Through strategic tie-up, it has wider access to technology, product
 range and geographical reach. GBG has invested in expansion of
 capacity, and upgraded its quality infrastructure to meet global
 benchmarks and is aggressively pursuing export sales.
 
 Concerns about economic growth
 
 The country is witnessing a challenging investment climate, and there
 is some slowdown in the economy. Various industrial enterprises have
 put on hold their capex plans and this has resulted in some delays in
 order finalisation for our engineering businesses. An enhanced product
 and geographic portfolio, along with an increasing focus on exports,
 spares, servicing & retrofitting in our Gear Business, should enable us
 to mitigate this downside to a great extent, and maintain margins. With
 respect to the Water business, the outlook is positive, given that
 quite a few large projects are under finalisation, and we hope to
 secure some of them. The overall outlook for the engineering businesses
 still remains encouraging for our range of offerings.
 
 Strengthening Partnership
 
 Leveraging meaningful partnerships for mutual growth has always been a
 key to our success.  During the fiscal year 2010-11, our licence
 agreement with Lufkin Inc. for high speed gears was renewed for a
 period of 12 years and covered additional products and geographies.
 
 We also signed a new technology licence agreement with Lufkin Inc. for
 the niche low speed segment of gearboxes in the Rubber and Plastics
 industry, Steel, Metals and Marine industries and for the Coal
 Pulverisers.
 
 Societal Development
 
 One of the greatest challenges facing India''s human development is the
 conservation and equitable distribution of our limited fresh water
 resources. There are serious concerns on the availability of fresh
 water in India as it has 16% of the world''s population and 4% of the
 world''s fresh water resources.
 
 In this regard, a need has therefore arisen to provide a single point
 reference to address water related issues. The Cll-Triveni Water
 Institute is the first not-for-profit organisation of its kind in the
 world where Government, industry and civil society come together to
 address all water related issues in a holistic manner.
 
 We at Triveni have come to realise the serious problems in the water
 economy in India through our efforts in agriculture and capital goods.
 The problems of lack of infrastructure are compounded by structural
 inefficiencies and policy lethargy. It is with the aim of contributing
 to harmonious and equitable societal development in India, that Triveni
 has taken this initiative with Cll to form the Cll-Triveni Water
 Institute as a National Centre of Excellence.
 
 The Institute will look at Water and Wastewater Management in India,
 for all stakeholders of the water economy - from the panchayat level to
 industrial users. While dealing with the issues of efficiency,
 conservation and delivery, the Institute will aim to deliver services
 to further its objectives which include policy review and
 recommendations, awareness and consensus building, education
 certification and training, advisory services and events and capacity
 building. We hope to create substantial employment opportunities with
 these programmes and specialised skill development.
 
 At Triveni, we remain committed to sustained value creation for all our
 stakeholders and we thank all of them forgiving us this opportunity.
 
                                                      With best regards,
 
                                                       Dhruv M. Sawhney
                                         Chairman and Managing Director