Dear Members,
 
 The Directors are submitting their 16th Annual Report alongwith
 Audited Statement of Accounts for the period ended on 30th September,
 2010.
 
 1.  FINANCIAL HIGHLIGHTS
 
 
                                                                 (Rs.)
 
                                    (Current Year)     (Previous Year)
 
 NET SALES (Net of Returns)             182000.00         16344380.08
 
 PROFIT/(LOSS) FOR THE YEAR            (351586.27)       (13313477.27)
 
 (BEFORE DEPRECIATION & INTEREST)
 
 PRIOR PERIOD ADJUSTMENT               (129240.35)          (96361.40)
 
 INTEREST                                37077.86           439454.39
 
 DEPRECIATION                          4117944.67          8368169.13
 
 Impairment Loss                              NIL          2881304.95
 
 NET PROFIT / (LOSS) FOR THE YEAR     (4635849.15)        25798955.38
 
 (Includes prior period provisions 
 of Liquidated damages & penal
 interest of IDBI)
 
 
 
 
 
 2.  OPERATIONS
 
 Due to continues acute liquidity crisis being faced by the Company in
 the last few Financial years the Company could not deliver the goods at
 its best. The Company has incurred a net Loss of Rs. 46.50 Lacs as
 against the net loss of Rs. 256 lacs in the previous year. It was
 attributed to the number of factors like lack of working capital, the
 fierce competition with the unorganized sector, the slump in demand and
 recessional depressive economic conditions prevailing in the Market
 which have continued to bring the profit margin under pressure. Inspite
 of the continuing recessionary conditions the Company is quite hopeful
 of making a turn around in a time to come.
 
 3.   INSURANCE
 
 All the Properties of the Company including its buildings, Plant &
 Machinery and stocks are adequately insured
 
 4.  BOARD OF DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles Of Association of the Company Mrs.Pramjit Sethi, Director who
 will be retiring by rotation, being eligible offers himself for re-
 appointment.
 
 Brief resume of the Director seeking re-appointment at this Annual
 Genearal Meeting, Nature of his expertise and other details as
 stipulated under Clause 49 of the Listing Agreement entered into with
 the Stock Exchanges are given in the Annexure to the Notice Convening
 the 16th Annual General Meeting.
 
 5.  Audit Comm ittee
 
 The Audit Committee has been Functioning since January 2000 and the
 scope of the committee meets the requirements of the Cause 49 of the
 Listing Agreement with the Stock Exchange and Section 292A of the
 Compnaies Act 1956.
 
 6.  CORPORATE GOVERNANCE REPORT
 
 Your Company has implemented the Corporate Governance Practice set out
 by the Securities Board of India (SEBI) and as set out in Clause 49 of
 the Listing Agreement entered into with the Stock Exchanges alongwith
 the Auditors Certificate (Practising Company Secretary) on its
 Compliance by the Company is included in this Annual Report.
 
 7.  DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF
 THE COMPANIES ACT, 1956.
 
 On the basis of the compliance certificate received from the concerned
 executive of the Company, subject to the disclosures in the Annual
 Accounts and also on the basis of the discussions with the Statutory
 Auditors of the Company from time to time Your directors hereby
 confirm:
 
 i) that in the preparation of annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 ii) that the directors had 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 at the end of the financial year and of the
 profit or loss of the company for that period.
 
 that the directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the company and
 for preventing and detecting fraud and other irregularities;
 
 iii) That the directors had prepared the annual accounts on a going
 concern basis.
 
 9.  FIXED DEPOSITS:
 
 During the year under review the Company has not accepted/renewed, any
 Fixed Deposits with in the meaning of Section 58 A of the Companies
 Act, 1956.
 
 10.  LISTING ON STOCK EXCHANGE
 
 The Companies shares are listied on Mumbai Stock Exchange .
 
 11.  INTERNAL CONTROL SYSTEMS
 
 The Company has an effective system of accounting and administrative
 controls which ensure that all asstes of the company are safe guarded
 and protected against loss from unauthorized use or disposition.  The
 Company has a well defined organizational structure with clear
 functional authority limits for the approval of all the transactions.
 
 The company has a strong reporting system , which evaluates and
 forewarns the management on issues related to compliance . The
 performance is regularly reviewd by the Board of Directors o ensure
 that it is in keeping with the overall corporate policy and in line
 with the Companies objectives.
 
 12.  AUDITORS
 
 M/s V.K. Dhingra & Co., Chartered Accountants, the Auditors of the
 Company hold office until the conclusion of ensuing Annual General
 Meeting and being eligible offer themselves for re-appointment.  The
 necessary certificate as required u/s 224 (2B) of the Companies Act,
 1956 has been received from the above named auditors.
 
 14.  AUDITORS'' REPORT AND NOTES ON ACCOUNTS
 
 Comments on the Auditors'' Observations:
 
 a.  Reply to point no. 3 f (i) of the Auditors Report
 
 The Company obtains the confirmations in ordinary course of business
 from time to time and no major variations are found.
 
 b.  Reply to point no. 3 f (ii) of the Auditors Report
 
 The Company manufacture Shoe Soles and styles and forms of the soles
 depends upon the style of the Shoes and styles of the shoes changes
 from time to time due to the change in fashion. In this respect some
 sloes become out of fashion, which leads to the non use of certain
 moulds. It has also happened in past that some moulds were re used
 again. Now sometimes it becomes very difficult to assess or value the
 impairment loss of the Moulds on regular basis. As the Auditors have
 pointed out the company is making all the efforts to calculate on
 regular basis the impairment loss.
 
 15.  PARTICULARS OF EMPLOYEES U/S 217 (2A) OF THE COMPANIES ACT, 1956.
 
 During the year under review, no employee whether employed for the
 whole year or part of the year, was drawing remuneration exceeding the
 limits as laid down under section 217(2A) of the Companies Act, 1956.
 Therefore, the information as required under Section 217(2A) of the
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules, 1975 is not required to be given.
 
 16.  PERSONNEL
 
 The industrial relations scenario continued to be stable during the
 year under review. The Company has been taking various initiatives for
 the HR development and this continue in this ensuing year as well.
 
 17.  PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION &
 FOREIGN EXCHANGE EARNINGS AND OUT-GO.
 
 The information pertaining to the captioned areas are briefed in the
 ANNEXURE to this report.
 
 18.  CEO/CFO Certificate
 
 As required by the Clause 49 of the Listing Agreement, the CEO/CFO
 certificate on the accounts is attached and forms part of the Annual
 Reoprt.
 
 19.  APPRECIATION
 
 Your Directors wish to place on record their appreciation for the
 valued Co-operation and assistance extended by various Government
 Agencies, Bankers of the Company, IDBI, loyal & dynamic executive staff
 and other workers of the Company. The Board also takes this opportunity
 to express its deep gratitude for the continuous support received from
 the shareholders of the Company.
 
 
 
 
                                     For and on behalf of the Board
 
 
 Place : New Delhi                            (HARPREET SINGH SETHI)
 Date : 2ND December, 2010.          Chairman & Whole Time Director