To The Members of 20 MICRONS LIMITED
 
 The Directors are pleased to present 25th Annual Report together with
 the Audited Statement of Accounts for the year ended 31st March, 2012.
 
 RESULTS OF OPERATIONS:                                  [Rs. in Lacs]
 
  Particulars                                       2011-12   2010-11
 
 Total Revenue                                     26770.19  23741.12
 
 Profit before Depreciation, 
 Interest                                           3525.91   2555.41
 
 and Tax (PBDITA)
 
 Interest for the year                              1408.52   1061.61
 
 Depreciation for the year                           631.80    533.30
 
 Profit before tax and Exceptional                  1485.58    960.50
 
 item
 
 Exceptional items                                    -         39.42
 
 Profit/(loss) for the year                         1485.58    921.08
 
 Tax liability :-
 
 Current Year''s Tax & FBT                            363.25    245.40
 
 Earlier Years Tax Adjustments/MAT                              65.61
 
 Credit                                               44.26     60.28
 
 Deferred Tax Liability/(Asset)
 
 Net Profit/(loss) for the year                     1078.08    550.19
 
 OVERVIEW OF ECONOMY
 
 The world economy has been passing through stress. Financial turmoil in
 Europe has affected other countries. This contagion has pushed up
 borrowing costs and slowed growth in many parts of the world, and
 capital flows to developing countries have fallen. As a result, and
 despite a strengthening of activity in the United States and Japan,
 world trade has slowed down. Under this scenario, the forecast for
 global economic growth has been revised downward to about 2.5% in 2012.
 Indian economy also slowed down in 2011-12 mainly due to weak
 industrial growth. Inflation remained a major concern constraining RBI
 to pursue tight monetary policy.
 
 In this generally depressed scenario, the Company has achieved about
 13% growth in Gross sales value which stood at Rs. 26770.19 Lacs for
 the year. The management has taken measures as part of its continuous
 improvements to strengthen operations and viability. It has widened and
 improved the product range and price points in domestic as well as
 international markets to enlarge the customer base.
 
 PERFORMANCE REVIEW:
 
 During the year under report, your Company has achieved a Total Revenue
 of Rs. 26770.19 Lacs (Up by 12.76% from Rs. 23741.12 Lacs of the
 previous year). The operations have resulted in a net Profit before
 Depreciation, Interest and Tax (PBDITA) of Rs. 3525.90 Lacs (Up by
 37.97% from Rs. 2555.41 Lacs of the previous year).
 
 DIVIDEND:
 
 Your Directors are pleased to recommend the payment of dividend @ 18%
 i.e. Rs. 1.80 per Equity Share of the face value of Rs. 10/- each for
 the year under review. The dividend, subject to approval of
 shareholders, will be paid to the Shareholders whose name appears on
 the Register of Members as on the Book Closure dates.
 
 FUTURE OUTLOOK
 
 The Company has achieved a growth rate of 13% in Gross Sales during the
 year. This growth rate is expected to continue along with higher
 profitability and inspire the Company and its dedicated staff to focus
 more attention on all its applications. The Current year and all-coming
 years would walk on the foot prints of with highest earnings and the
 continued support of effective sales force, improvement in production
 facilities and implementation of innovative ideas.
 
 During the year, the Company vigorously followed steps to improve plant
 efficiency, customers'' satisfaction, cost reduction and exploitation of
 new applications. The Company is still continuing to consolidate,
 relocate and outsource manufacturing by constantly reviewing market
 scenario. Product development is an ongoing process carried out in a
 well equipped R & D Centre. This will enable the Company to review the
 range of products offered to the Customers.
 
 The Company is always looking on enhancing the interest of all the
 stakeholders by better utilization of all its resources.
 
 Your Company expects robust growth in existing Products and
 contribution of new products by adopting the following strategies:
 
 Expansion of Mineral Portfolio by adding new products;
 
 Enhance value chain by launching new synthetic minerals products by
 leveraging R&D strength;
 
 Expand Geographical locations by acquiring Mines and infrastructure
 facilities in Mineral rich countries in Middle East & South East Asia.
 
 FINANCE
 
 It is gratifying to note that State Bank of India, in consortium with
 IDBI Bank Limited has enhanced the aggregate credit facilities from
 Rs.6278 Lacs to Rs. 7258 Lacs and IDBI Bank Ltd. (IDBI) has also given
 the working capital finance of Rs. 500 Lacs.
 
 Your Directors convey their grateful thanks to SBI and IDBI for their
 continued support and co-operation.
 
 FIXED DEPOSITS
 
 As on 31.03.2012, Fixed Deposits from Public and Shareholders stood at
 the total of Rs. 1475.05 Lacs. 23 deposits totaling to Rs.10.81 Lacs
 due for repayment on or before 31.03.2012 were not claimed by the
 depositors on that day. Out of these, deposits of Rs. 2.90 Lacs have
 since been repaid or renewed at the option of 8 depositors. No
 instructions have been received so far for the balance of Rs. 7.91 Lacs
 from 15 depositors. These deposits, if not claimed in future, shall be
 deposited in the ''Investors Education and Protection Fund'' in due
 course, as per the provisions of the Companies Act, 1956.
 
 SUBSIDIARIES
 
 a) 20 Microns Nano Minerals Limited
 
 Your Company owns 99.17 percent of 20 Microns Nano Minerals Limited.
 The said Company is having a state of the art In-house Research &
 Development facility which is registered with Department of Science &
 Industrial Research (DSIR), Ministry of Science and Technology,
 Government of India. During the year under review, the said Company
 reported revenue from operations of Rs. 3035.04 Lacs and achieved Net
 Profit of Rs. 30.15 Lacs.
 
 b) 20 Microns Sdn. Bhd.
 
 Your Company owns 99.99 percent of 20 Microns Sdn. Bhd. During the year
 under review, the said Company reported Gross Revenue of RM 13.56 Lacs
 and achieved Net profit of RM 1.90 Lacs.
 
 c) 20 Microns FZE
 
 Your Company owns 100 percent of 20 Microns FZE. During the period
 ending 31/03/2012, the said Company reported Gross Revenue of AED 70.72
 Lacs and achieved Net profit of AED 18.07 Lacs.
 
 As per Section 212(1) of the Companies Act, 1956, the Company is
 required to attach to its Accounts, the Directors'' Report, Balance
 Sheet and Profit & Loss Account of each of its Subsidiaries. As the
 Consolidated Accounts present a complete picture of the financial
 results of the Company and its Subsidiaries and in view of General
 Circular No.  2/2011 dated 08.02.2011 and No. 3/2011 dated 21.02.2011
 issued by Ministry of Corporate Affairs, the Annual Report of the
 Company does not contain the individual financial statements of its
 Subsidiaries. However, the statement of your Company''s interest in the
 Subsidiaries as at 31st March, 2012, prepared in accordance with the
 provisions of Section 212 of the Companies Act, 1956 is attached to the
 Balance Sheet.
 
 The Annual Accounts of the Subsidiary Companies along with the related
 detailed information are available for inspection by the shareholders
 of the Company and of the Subsidiary Companies at the Company''s
 Registered Office and at the registered office of the concerned
 Subsidiary and copies of the same shall be provided to any shareholder
 on demand.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 The Audited Financial Statements, based on the same received from the
 Subsidiary Companies, as approved by its Board of Directors, have been
 prepared in accordance with AS - 21 on Consolidated Financial Statement
 read with AS - 23 on Accounting for Investments in Associates.
 
 CORPORATE GOVERNANCE
 
 Pursuant to the requirements of the Listing Agreements with Stock
 Exchanges, your Directors are pleased to annex the following:
 
 1.  Management Discussion and Analysis Report
 
 2.  A report on Corporate Governance along with Auditors'' Certificate
 relating to compliance of conditions thereof.
 
 3.  CEO Certificate regarding compliance with the Code of Conduct.
 
 These annexure forms part of this report.
 
 PARTICULARS OF EMPLOYEES
 
 In terms of the provisions of Section 217(2A) of the Companies Act,
 1956 read with The Companies [Particulars of Employees] Rules, 1975, as
 amended, the names and other particulars of the employees are required
 to be set out in the Annexure to the Report of the Board of Directors.
 We have to state that since there are no employees falling within the
 purview of the said requirements, the same has not been annexed
 herewith.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS
 AND OUT GO.
 
 In terms of the provisions of Section 217(1)(e) of the Companies Act,
 1956 read with The Companies [Disclosure of Particulars in the Report
 of Board of Directors] Rules, 1988, as amended, the particulars of
 Energy Conservation, Technology Absorption & Foreign Exchange Earnings
 and Out go are given in the Annexure - A to this Report.
 
 INDUSTRIAL RELATIONS
 
 Industrial relations remain cordial and peaceful at all levels of the
 Company throughout the year.
 
 EMPLOYEES STOCK OPTION SCHEME [ESOS]
 
 Details of the option granted, accepted and lapsed under Employees
 Stock Option Scheme - 2007 of the Company, as also the disclosures in
 compliance with the clause 12 of Securities and Exchange Board of India
 (Employees Stock Option Scheme & Employees Stock Purchase Scheme)
 Guidelines, 1999 are set out in the Annexure - B to this Report. The
 Auditors'' Certificate relating thereto have been set out in the said
 Annexure.
 
 DIRECTORATE
 
 With effect from 29.04.2011, the Nomination of Mr. Munish Mohan had
 been withdrawn by IDBI Bank Limited and in his stead and place, Mr.
 Naresh Makhija was Nominated as the IDBI Nominee Director on the Board
 of the Company.
 
 Moreover, with effect from 22.10.2011, the Nomination of Mr. Mihir
 Joshi had been withdrawn by GVFL Limited and ceased to be a GVFL
 Nominee Director on the Board of the Company. Further, Mr. Vithaldas D.
 talati had resigned and ceased to be a Director on the Board of the
 Company with effect from 22.10.2011.
 
 The Board appreciated and took on records the assistance and guidance
 received by the Company during the tenure of the respective
 Directorships of Mr. Munish Mohan, Mr. Mihir Joshi and Mr. Vithaldas
 Talati.
 
 Mr. Atul H. Patel and Mr. Pravinchandra M. Shah, retire by rotation and
 being eligible, offer themselves for reappointment.
 
 RESPONSIBILITY STATEMENT:
 
 Your Directors make following statements in terms of Section 217(2AA)
 of the Companies Act, 1956:
 
 1.  The applicable accounting standards have been followed in the
 preparation of the Annual Accounts along with proper explanations
 relating to material departures;
 
 2.  Accounting policies are selected and applied consistently and
 judgments and estimates are made which are reasonable and prudent so as
 to give a true and fair view of the state of the affairs as at the end
 of financial year and of the profit of the Company for the year under
 review;
 
 3.  The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 4.  The Directors have prepared the accounts on a going concern
 basis.
 
 AUDITORS
 
 M/s. Manubhai & Co., Statutory Auditors of the Company, hold office
 until the conclusion of the ensuing Annual General Meeting and are
 eligible for reappointment. The Company has received a letter from
 Statutory Auditors to the effect that, in case their appointment is
 made, it would be within the specified limit under Section 224(1B) of
 the Companies Act, 1956.
 
 ACKNOWLEDGEMENT
 
 Your Directors would like to express their grateful appreciation for
 assistance & co-operation received from the Government Authorities;
 GVFL; Banks and Financial Institutions; Customers; Vendors; Investors;
 Depositors and all others.
 
 Your Directors also wish to place on record deep sense of their
 appreciation for the valuable and committed services of the Executives,
 Staff & Workers of the Company.
 
                            For and on behalf of the Board of Directors 
 
 Place: Waghodia, Vadodara           Chandresh S. Parikh 
 
 Date: 28.05.2012            Chairman and Managing Director