First of all, I would like to express my sincere appreciation for your
 continued support and patronage.
 
 Through ongoing research and development (R&D) in the fields of
 hydrocolloids (guar gum polymers) for food and technical applications,
 your company has continued to offer unique, high-value-added specialty
 products. We are extremely proud of the food ingredients made possible
 our innovative technologies, and of the steady global growth we have
 achieved through successful proposal-oriented marketing aimed at
 uncovering hidden market needs. To reliably supply these specialty
 products to the world market, we have been rapidly building a global
 marketing network linking us with prospective customers located across
 the world. During FY 2009-10, your company has attained an all time
 high turnover of Rs. 458.98 crore which is 25.71% higher than that of
 the previous year.
 
 Global development of original food ingredients through unique
 technology and a willingness to challenge -
 
 It is said that the era of mass production and mass consumption is
 over, and that a new age has begun focused on nature, the environment,
 culture, and the community. We fully appreciate the changes taking
 place, and in addition to our efforts to protect the global
 environment, our aim is to contribute to society by providing natural
 and eco-friendly guar gum products that will change how the world eats
 as we move into this promising new age.
 
 The food ingredients we develop are changing how the world eats -
 
 Centered around our two core business domains of food and technical
 applications, your company is exploring new possibilities for food
 ingredients and opening up a new world of delicious taste sensations.
 Your company has developed aroma free guar polymers production
 technology for food use by undertaking challenges that other producers
 could not attempt.
 
 Our business domains - producing food ingredients found nowhere else -
 
 Ever since your company was established, we have developed our business
 by undertaking challenges that other companies would not attempt. We
 have also continued to expand globally by employing innovative
 technologies to produce unique guar gum products, ranging from cipher
 viscosity to 104 cps depending upon the needs of the process. Our goal
 is to play a vital role in the global market by increasing our market
 share, top line and bottom line as well.
 
 Future outlook - we support food evolution with innovative technologies
 -
 
 The global demand for guar gum polymers (hydrocolloids) is on increase
 at a fast rate due to evolution of newer food uses. In hydrocolloid
 business, your company has focused on developing easy-to-use guar
 products to meet out the needs of foods production professionals. For
 Example, by applying our proprietary emulsification and sterile/aseptic
 filling technologies, we were able to develop guar gum ingredients that
 solved the problems of limited distribution and quality instability.
 These technologies significantly expanded the market for cakes, bakery
 items and donuts made with multigrain flours. Through our expertise in
 dealing with food producers and convenience stores in the global
 market, which demands a constant stream of new products, we have
 accumulated a wealth of product development know-how. Your company is
 expanding the global food market by proposing new product ideas to meet
 continually changing market needs and challenges as well.
 
 Derivative market -
 
 The global market for derivatized guar gum polymers used in the
 manufacture of personnel care items has experienced constant growth
 over the last few years. This is because of the fact that derivatized
 guar gum polymers are natural hydrocolloids that do not have any
 adverse effect on the health of human beings. In the international
 market, natural gums are preferred as compared to that of synthetic
 gums. Therefore, the demand of derivatized guar gum polymers are
 expected to increase gradually in the years ahead. Similarly, demand
 for guar derivatives for use in oil and gas fracturing applications has
 already increased by 30% over and above the last years demand and is
 expected to increase further by the alike percentage in the current
 year also. It is because of the fact that oil servicing companies have
 developed horizontal fracturing technology in which they have started
 making use of 5 to 10 times of guar polymers as compared to that of
 previous use levels.  This evidences significant increase in global
 demand in the oil and gas segment.
 
 Guar Derivatives we developed for oil and gas fracturing -
 
 For the technical applications, your company is enlarging its product
 portfolio mainly for the deeper and hotter gas and geothermal wells for
 fracturing applications ranging from 80o C to 130o C. For this
 application a liquid is injected under high pressure into an oil or
 gas-bearing rock/soil matrix to create fissures. The resulting narrow
 fractures/ fissures extending away from the well bore increase the
 production rate of oil and gas wells. With the changing life style and
 increase in disposable income, oil and gas world demand is incessantly
 increasing that enables your company to grow for many years to come.The
 needs of different market segments are getting more diverse. The
 industry not only needs to continually innovate, but do this across
 more segments. In this way, the sales are enhanced.
 
 Ensuring a reliable supply of raw materials - quality raw materials is
 an important responsibility -
 
 No matter how good a product is, it can not meet the needs of the
 market unless it can be stably supplied at a consistent quality and
 price.  From soon after the company was established, your company
 worked hard to ensure reliable supply routes for the raw materials
 needed to produce guar gum polymers and derivatives. Since then we have
 been building a farmers network linking us with quality raw material
 production areas in Rajasthan and Haryana as well. To reach its
 targeted goal, your company is distributing free of cost, quality guar
 seeds of different varieties for guar farming on irrigated lands which
 have been developed by CCS Haryana Agricultural University, Hisar. This
 has minimized the dependency of your company on monsoonic rains as now
 the guar crop is being raised on irrigated lands on the strength of
 canal water. Now the threat of monsoon failure is not persisting.
 
 Expansion projects - An investment for future -
 
 Despite soaring inputs prices, fluctuating market, and the world
 economy in a state of flux, your company remained focused on its expa
 plans which after completion will add aggregating to 35000 TPA to its
 production capacity progressively at Bikaner and Baroda. The expansion
 plans of your company, while emphasizing capacity expansion, also put
 maximum thrust on value addition and product mix improvement,
 technological up-gradation, including modernization of existing assets
 and environment related projects. These investments will create
 competitive and sustainable businesses in the future enhancing
 long-term stakeholder value
 
 Acknowledgments -
 
 Before I close, I would like to take this opportunity to thank all the
 shareholders of the company for their continued support and Your
 company has received utmost outstanding support from the farmers
 community for growing adequate raw material in exchange of support
 extended by your company distributing the quality guar seeds free of
 cost. This is because the management of your company believe and have
 held a view and a sense of purpose that your company is not in
 existence just to run its business and to make profits but that we are
 responsible citizens over and above our normal operations I would also
 like to thank and acknowledge the immense contribution made by the
 employees of your company by offering their dedicated services.
 
 We look forward to your continued support.
 
                                    
 Date : 30.08.2010                                     (B. D. Agarwal)
 
 Place : Sri Ganganagar                 Chairman cum Managing Director