We are delighted ro present the report on or business and operations
 for the year ended March 31,2010
 
 FINANCIAL RESULTS
 
 The highlights of the Finanial Results are given below:
 
                                                         (Rs. in Lacs)
 
 
 FINANCIAL RESULTS                            Year ended    Year ended 
 
                                              31.3.2010      31.3.2009
 
 Sales & Operatin Income                         37851          32512
 
 Opearating Portfit                               6224           4328
 
 Add: Other Income                                 101             52
 
 Less: Net Interest & Finance Cost                1485           1097
 
 Exceptional Items (Gain)/ Loss                   (502)           809
 
 Lees: Depreciation                               2321           2205
 
 Profit before tax                                3021            269
 
 Provision for Tax & Deferred tax                  724             37
 
 Profit after Tax                                 2297            232
 
 Appropriations/ Adjustments
 
 PROFIT FOR THE YEAR                              2297            232
 
 Balance of profit/ (loss) brought forward        8525          8,593
 
 Preference Dividend                               512              0
 
 Equity Dividend                                   234              0
 
 Corporate Dividend Tax (inclu. edu. ccss 
 and surcharge)                                    127              0
 
 Capital Redemption Reserce                        299            300
 
 General Reserves                                    0              0
 
 Profit carried to Blances Sheet                  9651          8,252
 
 
 
 PEROFORMANCE DURING THE YEAR:
 
 Turnover of the company for the year is Rs. 37851 lacs compared to
 Rs.32512 lacs showing increase by 16.42%. The Operating Profit for the
 current year is Rs. 6224 lacs (Rs.4328 lacs) which is 43.81% higher
 than the preceding year. Profit after tax is Rs.2297 lacs (232 lacs).
 Provision for tax Rs. 543 lacs & Provision for Deferred Tax is Rs. 181
 lacs is made for the current year which was last year at RS. 37 Lacs
 and Rs. Nil respectively.
 
 DIVIDEND
 
 The Comapny has already declared and paid interim diviend @ 5% on the
 fully paidup equity share capital of the Comapny as recommended by the
 Board of Directors of the Coampny in its meetings held on 16th October,
 2009 for the year 2009-10.
 
 In addition to the Interim Dividend declared and paid during for the
 year 2009-10, the Directors in their meeting deated 28th May 2010
 recommended final dividend @5% (i.e. Rs. 0.50) on 2,34.59,800 equiry
 shares of Rs.10/- each aggregating the total dividend 2 10% i.e. Rs.
 1/-) for the year 2009-10, subject to approval by the Members at the
 ensuring Annual General Meeting.
 
 The Comapny has declared and paid full outstanding dividend to 18991340
 13% Cumulative Redeemable non convertivle preference shares for the
 financial years 2007-08 and 2008-09 and also declared and paid 6.5%
 dividend for the financial year 2009-10 as recommended by the Board of
 Directors of the company in its meeting held on 5th September, 2009.
 Later the Comapny has declared and paid 3.25% dividend to 7495670 13%
 Cummlative Redeemable non convertible preference shares for the
 financial year 2009-10 as recommended by the Board of Directors of the
 company in its meeting held on 22nd December, 2009.
 
 REDEMPTION OF 14991340 13% CUMULATIVE REDEEMABLE NON CONVERTIBLE
 PREFERENCE SHARES
 
 During the year the Comapy has redeemed all 14991340 13% cumulative
 redeemable non convertible preference shares which were issued to DEG
 Germany along with the two years sccrued dividend and pro rata dividend
 for the current year These preforence shares were due for redemption in
 June. 2010
 
 REDEMPTION OF FOREIGN CURRENCY CONVERTIBLE BONDS:
 
 During the year the Comapny has bought back zero coupon foreign
 currency converible bonds (FCCBs) with the face value of USD 7.50
 million, out of tatal FCCB of USD 20 million, at discount to their face
 value, as per RBI approval.
 
 BUSINESS OVERVIEW:
 
 Year 2009 witnessed the textile industry recovering from the slowdown
 with strong domestic consumption and renewed export demand. Whereas the
 textile industry, is a major contributor to export carnings, had
 encountered global economic slowdown shocks. Export registered month on
 month negative growth for most part of 2009. However, strong domestic
 markets and timely government intervention helped the Indian textile
 industry to overcome the slowdown effect. Despite of major economic
 showdown, fluctuatuin in currency value and high price of cotton in
 year ended March, 2010. Reevival in demand from domestic as well as
 from major export markets, including the US and Europe, and control
 over the input cost. including power & fuel and interest costs, helped
 your company to report good growth.
 
 Considering future demands, your Coampny has maintained its
 modernization and growth play in this line the company has installed
 four lines for the conversion of POY into PTY, With help of this the
 Comapny will reduce the incremental cost of raw material. This year
 your Comapny has added 12 air jet looms of latest technology and hired
 24 jet looms on lease. With the help of these additonal looms the
 Comapny will increase its weaving capacity. The Coampny has also
 expanded its proccssing capacity
 
 CORPORTATE GOVERNACE
 
 Pursuant to the requirements of Clause 49 of the Listing Agreement with
 the Stock Exchanges, a report on Corporate Governace and a Certificate
 from the Auditors of the Coampny regareding compliacnce with Corporate
 Goverance guidelines as stipulated and Management Discussion & Analysis
 report have been attached by way of separate Section as part of this
 Annual Report.
 
 DIRECTORS
 
 Shri Aevind Sanghvi ad Shri Amol Dalal retire by rotation as per the
 provisions of Articles of Association of the Company. Your Directors
 recommend their reappointment.
 
 AUDITORS
 
 Auditors of the Comapny M/s. N.C. Shah & Associates, Chartered
 Accountants and M/s Deloitte Haskins & Sells, Charetered Accountants.
 will retire at the conclusion of the ensuing 21st Anual General Meeting
 from the office of the Auditors and beings eligible offer themselves
 for re-appointment from the end of the ensuing Annual General Meetin
 till the conlusion of the next Annual General Meeting. The Comapny has
 received a certificate from them certifying that their appointment. if
 made, would be within the limits specified under Section 224(1B) of the
 Coampnies Act,1956.
 
 The notes to the accounts referred to in the Auditors Report are
 Self-explantory and therefore do not call for any further comments. The
 Company has adequate system of internal control procedures commensurate
 with the size of the Comapny and the nature of its business to keep
 check on the activities of the various departments.
 
 COST AUDITOR
 
 The Central Government had vide their Order No. 52/552/CAB-2000 dated
 10th August, 2000 directed an audit of the cost accounts maintained by
 the Comapny in respect of textiles business. For conducting the cost
 audit for this business for the financial year ended March 31, 2010,
 the Central Government has approved the appointment of M/s, N.D. Birla
 & Co auditors.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to sub-section (2AA) of Section 217 of the Coampnies Act,
 1956, the Board of Directors of the Comapny hereby state and confirm
 that: 
 
 (i) in the preparation of the Annual Accounts, the applicable
 accounting standards have been followed;
 
 (ii)the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonble
 and prudent so as to give a true and fair view of the state of affairs
 of the Comapny at the end of the financial year and of the profit of
 the Comapny for that period.
 
 (iii) the Directors had taken proper and sufficient care for the
 maintence of adequate accountng records in accordance with the
 provisions of the Comapnies Act, 1956 for safeguarding the assets of
 the Coampny and or preventing and detecting fraud and other
 irregularities; 
 
 (iv) the Directors had p repared the annual accounts on a going concern
 basis.
 
 DEPOSITS
 
 For the Financial year ending March 31, 2010 the company has accepted
 fixed deposits to the tune of Rs. 1033.70 lacs. The Coampny repaid the
 deposits amounting to Rs. 1279.72 lacs and the outstanding deposits at
 the end of the year were amounting to Rs. 123.70 lacs.
 
 INSURANCE
 
 All properties and insurable interests of the company including
 bulding, plant and machinery and stocks wherever necessary and to the
 extent requred have been adequately insured.
 
 PARTICULARS OF EMPLOYEES
 
 Particulars required by the provisions of Section 217 (2A) of the
 Companies Act,1956 read with the Comapnies (particluars of Employees)
 Rules, 1975 as amended have not been provided since no employee is
 drawing remueration in excess of prescribed limits as per above
 provisions. 
 
 CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY BY
 ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 Details required to be disclosed under section 217 (1) (e) of the
 Comapnies Act, 1956 read with Comapnies (Disclosure of particulars in
 the Report of the Board of Directors) Rules, 1988 are ser out in
 Annexre of theis Report.
 
 ACKNOWLEDGEMENTS
 
 Your Directors place on record their appreciation for the contribution
 made gy employee at all levels. Your Companys growth was made possible
 by employees support, co-operation, commitment, solidarity and hard
 work. 
 
 Your Directors wish to take this opportunity to express their deejp
 sense of gratitude to the Central and State Governments, Bankers,
 Financial Institutions, Shareholders, Retail Partners and Customers for
 their co-operation and look forward to their continued support future.
 
 
                        For and on behald of the Board od Directors 
 
                                                     Vinod P. Arora
 
                                    Chairman and Managing Directors 
 
 Place: Ahmedabad
 
 Date: 28th May 2010