Anjani Fabrics

The Directors have great pleasure in presenting the 20th Annual Report
 together with the Audited statements of Accounts of your Company for
 the financial year ended on 31 st March 2008.
 
 FINANCIAL RESULTS:
 
                                                        (Amount in Lacs)
 
 Particulars                              Financial Year  Financial Year
                                                2007-08          2006-07
 
 Sales                                          8704.47       11360.16
 Depreciation                                    376.02         328.61
 Profit/(Loss) before Taxation                   337.11         221.61
 Provision for taxation current year             120.00          84.50
 Profit/(Loss) after Tax                         218.72         130.92
 Add. Balance Brought forward from Previous year 599.28         502.77
 Amount available for Appropriation              818.00         633.70
 Less: Proposed Dividend on Equity Shares             -          29.42
 Less: Dividend Tax                                   -           5.00
 Balance transferred to Balance Sheet            818.00         599.28
 
 OPERATIONS:
 
 During the year under review, the Companys total Income was Rs.
 8704.47 lacs and has earned net profit of Rs.218.72 lacs after
 providing depreciation of Rs. 376.02 lacs and provision for taxation
 (current year) of Rs. 120.00 lacs for the financial year ended on 31 st
 March, 2008.
 
 DIVIDEND:
 
 The Directors regret their inability to recommend any dividend for the
 year in order to conserve the resources of the company.
 
 FIXED DEPOSIT:
 
 The Company has not accepted any deposit from the public pursuant to
 the provisions of Section 58A of the Companies Act, 1956.
 
 DIRECTORS:
 
 Mr. Mahadev Kharwal, Director of the Company who retires by rotation at
 the ensuing Annual General Meeting, being eligible and offers him-self
 for re-appointment.
 
 Mr. Mukesh H. Agarwal was appointed as Additional Director of the
 Company with effect from 01.10.2007, is eligible for re- appointment as
 director of the Company at the forthcoming Annual General Meeting.
 
 AUDITORS:
 
 Auditors of the Company, M/S. NAHTA JAIN & ASSOCIATES, CHARTERED
 ACCOUNTANTS, AHMEDABAD retires at the ensuing Annual General Meeting of
 the Company and are eligible for re-appointment. The Shareholders are
 requested to appoint the auditors and fix their remuneration.
 
 AUDITORS REPORT:
 
 The observations made by the Auditors in their Auditors report and
 the notes appearing in the accounts with regard to it are
 self-explanatory and do not requires further clarification by the
 Board.
 
 ADDITIONAL DISCLOSURES:
 
 In line with the requirements of the Listing Agreement with the Stock
 Exchanges and Accounting.Standard of the Institute of Chartered
 Accountants of India, your Company has made additional disclosures in
 the notes on accounts for the year under review in respect of Related
 Party Transactions, Deferred Tax Liability, etc.
 
 CORPORATE GOVERNANCE REPORT:
 
 Your Company perceives Corporate Governance as an endeavor for
 transparency and a wholehearted approach towards continuous enhancement
 of shareholders value. Your Company has been complying with the
 conditions of Corporate Governance as stipulated in Clause 49 of the
 Listing Agreement. Further, the Board of Directors of your Company
 constituted a Committee known as Corporate Governance Committee, which
 recommends the best practices in the Corporate Governance.
 
 A separate report on Corporate Governance along with Auditors
 Certificate on compliance with the Corporate Governance norms and
 stipulated in Clause 49 of the Listing Agreement, forming part of this
 report is annexed herewith.
 
 PARTICULARS OF EMPLOYEES:
 
 The statement showing particulars of employees under section 217(2A) of
 the Companies Act, 1956, read with the companies (Particulars of
 Employees) Rules, 1975, as amended, is not required to be given as
 there were no employees coming within the purview of this section.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING AND OUTGO:
 
 Information pursuant to 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 relating to the foregoing matters is
 given hereunder.
 
 a) Conservation of energy :Rs. 100441710.00
 
 b) Technology absorption, research & development : Rs. 115170.00
 
 c) FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
 Foreign Exchange Earnings during the year        : Rs. Nil
 Foreign Exchange Outgo during the year           : Rs. 38650187.00
 
 DIRECTORSRESPONSIBILITY STATEMENT:
 
 Pursuant to the provisions of Section 217(2AA) of the Companies Act,
 1956, the Directors of your Company 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) the Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that were reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year and of the profit or
 loss of the Company for that period;
 
 iii) 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;
 
 iv) the Directors have prepared the accounts on a going concern
 basis.
 
 ACKNOWLEDGEMENT:
 
 Your Directors acknowledge their valuable contribution and appreciate
 the co-operation received from the bankers, customers and financial
 institutions for their continued assistance and support extended to the
 Company.  Your Directors also express their appreciation to all the
 employees of the Company for their sustained contribution throughout
 the period.
 
 Yours Directors wish to thank the shareholders for their continued
 support, encouragement and the confidence reposed in the Management.
 
                             FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
 
 PLACE  : AHMEDABAD                                  [RAMBHAGAT AGARWAL]
 DATE   : 12.07.2008                        Chairman & Managing Director