Dear Members,
 
 The Directors have pleasure in presenting the Twenty Third Annual
 Report together with the audited accounts of your Company for the year
 ended 31st March 2011
 
 FINANCIAL RESULTS
 
                                  2010-2011                 2009-2010
                                            (Rupees in lacs) 
 
 Sales                         -   12399.36             -     9858.23
 
 Gross Profit                  -    3838.25             -     2552.49
 
 Less: Depreciation      1193.91          -       1093.33           -
 
       Interest          1097.07          -        883.30           -
 
 Provision for taxation
 (Including Deferred  
 tax for current year)    566.95    2857.93       -372.76     1603.87
 
 Profit for the year           -     980.32             -      948.62
 
 Add: Balance in Profit 
 & Loss A/c                    -    2192.69             -     1481.08
 
 Surplus available for 
 appropriation                 -    3173.01             -     2429.70
 
 APPROPRIATION:
 
 Proposed dividend 
 (Including Dividend 
 Tax)                          -     156.90             -      142.15
 
 Income-tax relating 
 to earlier years              -      -0.47             -           0
 
 Transfer to General 
 Reserve                       -      98.04             -       94.86
 
 Balance carried to 
 Balance Sheet                 -    2918.54             -     2192.69
 
 Total                         -    3173.01             -     2429.70
 
 
 DIVIDEND
 
 Your Directors are glad to recommend payment of dividend of 20% on the
 Equity Capital as against 18% declared for the year 2009-2010. The
 dividend will be free of tax in the hands of shareholders since the
 company will be paying the Dividend Distribution Tax at the prescribed
 rate.
 
 OPERATIONS
 
 The company''s sales increased by 25% to Rs.12399.36 Lacs during the
 year under review as against Rs.9858.23 Lacs in the previous year.
 
 YARN DIVISION
 
 Your Directors are happy to inform you that in spite of the increase in
 raw material prices and the power-cut imposed by the Tamil Nadu
 Electricity Board, the profitability of the yarn Division has
 increased.
 
 PROCESSING UNIT
 
 The performance of the Processing unit has improved and problems
 arising from the effluent Treatment plants are being sorted out.
 
 WIND MILLS
 
 During the year five more wind mills of 4.25 MW became operational.
 With this the Total Capacity of Wind Mills as on date has gone up to
 17.60 MW.
 
 The Company has sold 40872 CER units (Certified Emission Reductions)
 for a sum of Rs. 3,15,21,925/- during the year.
 
 FINANCE
 
 During the year under review the Company has:
 
 a) Availed Fresh Long term loans aggregating to Rs.370 lacs for funding
 the purchase of Machineries and Construction of Building and Fresh
 Short Term Loans aggregating to Rs.5900 lacs for Raw Material
 procurement.
 
 b) Discharged Long Term loans in full aggregating to Rs.2851.71 lacs
 and short term loans in full aggregating to Rs.3375 lacs and
 
 c) Received and settled in full Adhoc working Capital Loans aggregating
 to Rs.1000 Lacs.
 
 The Particulars of such availment and discharges were duly filed with
 the Statutory Authorities.
 
 DEPOSITS
 
 Your Company has not accepted any deposits from the Public.
 
 DIRECTORS
 
 Sri. R. Premchander and Sri.R.Jaichander have been re-appointed as
 Managing Director & Joint Managing Director respectively of the company
 for a further period of 5 Years and the approval of Member for the
 re-appointment and remuneration is being sought at the ensuing Annual
 General Meeting.
 
 Sri K.Sriram and Sri.V.T Subramanian retire by rotation at this Annual
 General Meeting and are eligible for reappointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Sec.217 (2AA) of the Companies Act, 1956,
 your Directors wish to state that:
 
 i) In the preparation of the Annual Accounts for the year, all
 applicable accounting standards have been followed.
 
 ii) Your Directors 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 of the profit of the Company
 for the year ended on that date.
 
 iii) The Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 iv) The Directors had prepared the Annual Accounts on a “Going Concern”
 basis.
 
 AUDITORS
 
 Sri V.Narayanaswami, M.A., F.C.A., Chartered Accountant, the Auditor of
 your company, retires at the conclusion of this Annual General Meeting
 and is eligible for reappointment.
 
 PERSONNEL
 
 The details regarding employees of the Company who come under the
 purview of Sec. 217 (2A) of the Companies Act, 1956 are given in
 Annexure-I to the Director’s report.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The particulars required to be furnished in terms of Section 217 (1)(e)
 of the Companies Act, 1956 with regard to conservation of energy,
 technology absorption, foreign exchange earnings and outgo are given in
 Annexure-II.
 
 INDUSTRIAL RELATIONS
 
 The industrial relations have been extremely cordial and the Management
 thanks all the employees for their continued contribution towards the
 growth of the organisation.
 
 CORPORATE GOVERNANCE
 
 Report on Corporate Governance is furnished in the section on Corporate
 Governance in the Annual Report.
 
 A certificate from the Auditor of the company regarding compliance with
 the conditions of corporate governance as stipulated under clause 49 of
 the Listing Agreement is furnished in the section on Corporate
 Governance.
 
 MANAGEMENT’S ANALYTICAL REPORT
 
 Management’s Analytical Report as required by the listing agreement is
 furnished in the section on Corporate Governance.
 
 ACKNOWLEDGEMENT
 
 Your Directors would like to express their grateful appreciation for
 assistance and co- operation received from the bankers M/s. Bank of
 Baroda, Karur Vysya Bank Ltd, Punjab National Bank, State Bank of
 India, State Bank of Travancore, Bank of India and Axis Bank Ltd during
 the year under review.
 
 Your Directors wish to place on record their deep sense of appreciation
 for the devoted services of the staff and workers of the Company for
 its continuous development.
 
 The Company extends its thanks to the Central and State Government
 authorities for their continued co-operation and assistance.
 
 MAY LORD VENKATESWARA SHOWER HIS BLESSINGS FOR THE CONTINUED PROSPERITY
 OF THE COMPANY.
 
                          For and on behalf of the Board of Directors
 
 
                                                           (N. RAJAN)
                                                             Chairman
 Place : Tirupur 
 Date : 18.08.2011