The Directors have pleasure in presenting their Twenty Second Annual
 Report on the business and operations of your Company together with
 Audited Financial Statements for the year ended 31st March 2011.
 
 1) FINANCIAL RESULTS
 
 The summarised position of these results is given below:
 
                                                     IRs. in Lacs]
 
                                             2010-2011    2009-2010
 
 Net Sales/Income from Operations            31688.87     23210.00
 
 Other Income                                  965.91       844.92
 
 Net sales up by Total Income                32654.78     24054.92
 
 36% Profit before Interest, Depreciation &
 Taxes                                        7281.33      6010.51
 
 Interest                                      385.75       335.61
 
 Profit before Depreciation & Taxes           6895.58      5674.90
 
 Depreciation & Non-cash Charges               644.93       495.65
 
 Profit before Taxation                       6250.65      5179.25
 
 Provision for Taxation 
 
 -Current                                     1242.26       889.00 
 
 EBITDA up by
 21% -Deferred                                 301.96       285.67
 
 - Fringe Benefit Tax                             -           - 
 
 - MAT credit entitlement                     (490.67)        -
 
 Provision for earlier year
 W/back/Provided                                 0.18         0.44
 
 Net Profit                                   5196.92      4004.14
 
 Balance brought forward                      8128.91      5106.07
 
 Balance available for appropriations        13325.83      9110.21
 
 Appropriations 
 
 PAT up by 
            Interim Dividend                     --         148.12 
  30%
 
           Final Proposed Dividend             641.84       345.61
 
           Tax on above                        104.12        82.57
 
           Transfer to General Reserve         520.00       405.00
 
           Surplus carried to Balance sheet  12059.87      8128.91
 
 2) REVIEW OF OPERATIONS
 
 The Companys operations have shown impressive growth during the year
 under review. The net sales during the year have gone up to
 Rs.31,669.73 Lacs from Rs.23,210.00 Lacs, registering a growth of 36%
 over the previous year.
 
 The robust growth in sales can be attributed to the phenomenal growth
 in ATBS sales which grew by more than 65% as compared to previous year.
 During FY11 we have crossed sales of 11,000 MT of ATBS.
 
 The Companys Profit Before Tax has also gone up from Rs.5,179.25 Lacs
 in previous year to Rs.6,250.65 Lacs in current year registering a
 robust growth of 21%.
 
 3) DIVIDEND
 
 Your Directors are pleased to recommend a dividend of 65% i.e. Rs.1.30
 per equity share.
 
 The total outgo on dividend account will be Rs.745.96 Lacs (inclusive
 of corporate tax on dividend).
 
 The dividend is tax free in the hands of the shareholders.
 
 4] PROSPECTS
 
 As we go into the next year, we expect to keep growing furthermore in
 ATBS and accordingly have decided to augment the ATBS capacity with a
 further expansion to 18,000 MT and this expansion is expected to be
 commissioned by March 2012.
 
 Di-Acetone Acrylamide 11000 MT) is expected to be commissioned by
 December 2011. This acrytonitrile based product, synergic with ATBS, is
 used in manufacture of coatings, adhesives, laminates and sealers.
 
 Expansion of TBA (700 MT to 1,000 MT) and ATFE Bottom Polymers (1,500
 MT to 4,500 MT) is expected to be completed by March 2012. This will
 reduce the effluent load and contribute to the revenue of the Company.
 
 The Company is optimistic about the future demand and foresees a strong
 and robust growth in the coming year across all markets driven by
 existing and new products.
 
 5) TURNOVER AND PROFIT {OPERATING RESULTS!
 
 The Company achieved gross turnover of Rs.32,931.06 Lacs as compared to
 Rs. 23,844.43 Lacs in the previous year. The net profit aftertax
 increased to Rs.5,196.92 Lacs as compared to Rs.4,004.14 Lacs in the
 previous year.
 
 6) INSURANCE
 
 The properties and insurable interest of your company like Building,
 Plant and Machinery, Inventories etc. are properly insured.
 
 7) DIRECTORS
 
 Mr. R K Saraswat has been appointed as an Additional Director on the
 Board with effect from January 24, 2011. He is a Chartered Accountant
 with over 40 years of extensive domestic & international experience in
 Accounting, Auditing, Project Financing and Financial
 
 Management. He is presently serving on the Board of Datamatics Global
 Services Ltd., Datamatics Software Services Ltd., and Priya Ltd. He
 last served Datamatics Group of companies as their Finance Director and
 earlier served as President of S. M. Dyechem Limited and Sr. Vice
 President of Grasim, where he was interalia engaged in setting up the
 Mangalore Refinery plant. In accordance with the provisions of the
 Companies Act, 1956, resolution seeking approval of the members for his
 appointment has been incorporated in the Notice of the ensuing Annual
 General Meeting and the Explanatory Statement thereto.
 
 Mr. Anandkumar Tibrewala ceased to be a Director with effect from
 January 24, 2011. The Board wishes to place on record its appreciation
 for his valuable contribution during his association with the Company.
 
 As per the statute, two-third of the Directors should be retiring
 Directors. One-third of these retiring Directors are required to retire
 every year and if eligible, these Directors qualify for re-appointment.
 
 Accordingly, Mr. C. B. Gokhale and Mr. Sunil Saraf, Directors retire by
 rotation at the ensuing Annual General Meeting and being eligible offer
 themselves for re- appointment.
 
 8. AUDITORS
 
 Members are requested to appoint Auditors for the current year and to
 authorise the Board of Directors to fix their remuneration. The
 Statutory Auditors M/s. Karnavat & Co., Chartered Accountants retire at
 the ensuing Annual General Meeting and being eligible under section 224
 (1B) of the Companies Act, 1956, offer themselves for re-appointment.
 
 9.  AUDITORS REPORT
 
 The observations of Auditors as referred to in the Auditors Report are
 suitably explained in the Notes to the Accounts.
 
 10. COST AUDITOR
 
 As per the order of Central Government within the meaning of Section
 233 A of the Companies Act, 1956, M/s. N. Ritesh & Associates has been
 appointed as a Cost Auditor subject to the approval of Central
 Government for the year ending on 31.03.2011. The Company has made
 necessary application to the Government for approval of the same.
 
 11) FIXED DEPOSITS
 
 During the year under review the Company did not invite or accept any
 Fixed Deposits within the meaning of Section 58A of the Companies Act,
 1956 and as such, no amount of principal or interest was outstanding as
 on the date of balance sheet from public.
 
 12) AWARDS AND RECOGNITIONS
 
 - Mr. Vinod Saraf was awarded the Business Leader of the Year
 (Innovation) by CHEMTECH CEW Leadership & Excellence Awards 2011
 
 - Forbes Asia listed VOL amongst 200 Best Under A Billion companies for
 2010
 
 - VOL was ranked amongst the Top 10 Fastest Growing Companies in India
 for the Year 2010 by The Economic Time Intelligence Group January
 2011); We were ranked amongst the Top 10 in 2009 as well
 
 - VOL was ranked #7 amongst the Top 100 Fastest Growing Small Companies
 in India by The Economic Times Intelligence Group (September 2010); We
 were ranked #14 in 2009
 
 - VOL awarded with special citation for Development of Indigenous
 Technology by Indian Chemical Council
 
 - Certificate of Merit for achieving Zero Accident Frequency Rate
 (2007-2009) received from National Safety Council - Maharashtra Chapter
 (Lote Plant)
 
 - Lote and Mahad Plant certified with ISO 9001:2008
 
 13) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
 EARNINGS & OUTGO
 
 Information as perSection 217(1 )(e) of the Companies Act, 1956, read
 with Companies (Disclosures of Particulars in the Report of Board of
 Directors) Rules, 1988, relating to the above head are given in
 Annexure A forming part of this report.
 
 H) LISTING
 
 The Companys Equity shares continue to be listed at BSE & NSE. We
 confirm that the Listing fee for the financial year 2010-2011 has been
 paid to them. The stock code of the Company at BSE is 524200 and NSE is
 VINATIORGA.
 
 15) DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement of Section 217 (2AA) of the Companies Act,
 1956 and based on the representations received from the operating
 management, the Directors hereby confirm that:
 
 i) in the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 (ii) they have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company as at 31st March 2011 and the profit or loss of the Company
 for the year ended on 31st March 2011;
 
 (iii) they have taken proper and sufficient care for the maintenance of
 adequate accounting records in accordance with the provisions of
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities;
 
 (iv) they have prepared annual accounts on a going concern basis.
 
 161 CORPORATE GOVERNANCE AND MANAGEMENTS DISCUSSION AND ANALYSIS
 REPORTS
 
 The Corporate Governance and Managements Discussion and Analysis
 Reports, which form an integral part of this report, are set out in a
 separate annexure to this report, along with the certificate from the
 Auditors of the Company certifying compliance of the conditions of the
 Corporate Governance as stipulated in Clause 49 of the Listing
 Agreement with the Stock Exchange. (See Annexure B & C)
 
 17) EMPLOYEES
 
 The Company is not required to make any disclosure under section
 217(2A) of the Companies Act, 1956 as none of its employees is drawing
 remuneration in excess of Rs.60 Lacs per annum or Rs.5 Lacs per month.
 
 18) APPRECIATION & ACKNOWLEDGEMENTS Your Directors take this
 opportunity to place on record their sincere gratitude for assistance
 and cooperation received from Central & State Governments, banks,
 financial institutions, shareholders, business associates and esteemed
 customers for their continued support and assistance during the year.
 
 Your Directors also place on record their appreciation for the
 excellent contribution made by all employees of Vinati Organics Limited
 through theircommitment, competence, co-operation and diligence to duty
 in achieving consistent growth of the Company.
 
                           For and on behalf of the Board of Directors
 
 Mumbai                                                 Girish M. Dave
 
 21st May 2011                                  Non-Executive Chairman