The Directors present the Twenty Fifth Annual Report together with the
 Audited Statement of Accounts of company for the eighteen months period
 1st April, 2010 to 30th September, 2011.
 
 OPERATIONS
 
 The sales and other income of the company for the period eighteen
 months ended 30th September, 2011 were Rs.17840.99 lacs
 (Consolidated) as compared to Rs.8235.42 lacs for the previous year
 (Twelve months ended). The net profit for the period eighteen months
 ended Rs.212.93 lacs (Consolidated) as compared to Rs.(103.83) lacs
 for the previous year (Twelve months ended).
 
 The Company posted Cash Profit Rs.1167.55 lacs and Net Profit of Rs.
 212.93 lacs was arrived at after deducting Depreciation.
 
 DIVIDEND
 
 Your Directors do not wish to recommend any dividend for the year
 2010-11.
 
 ISSUE OF FURTHER CAPITAL BY ISSUE OF ADR/GDR/ FCCB/QIP
 
 The Company allotted 337,795,000 Equity Shares of Re. 1 each (Offering
 at Rs.1.35 each) in the name of Bank of New York, Mellon, the
 Depository representing 6,755,900 Global Depository Receipts (GDRs) and
 amount raised thereby not yet repatriated.
 
 CONSOLIDATION OF SHARE CAPITAL
 
 The Company consolidated the Share capital of the Company into shares
 of larger denomination than existing shares during the year by
 consolidating the share capital of the Company from 649831000 equity
 shares of Re1/- per share to 64983100 equity shares of Rs.10/- per
 share w.e.f. 23rd September, 2010 by passing appropriate resolution
 through Postal Ballot.
 
 EXTENSION OF FINANCIAL YEAR OF THE COMPANY:
 
 The Financial Year of the company has been extended from fifteen months
 to eighteen months ended 30th September, 2011, by virtue of the
 approval of jurisdictional Register of Companies, Mumbai, Maharashtra,
 Hon''ble Ministry of Corporate Affairs dated 12th August, 2011 in
 pursuance of the application made by the company with the Registrar of
 Companies under Section 210 (4) of the Companies Act, 1956 in this
 regard. Accordingly the annual accounts of the company have been
 prepared for the Financial Year ended 30th September, 2011 covering a
 period of eighteen month from 1st April, 2010 to 30th September, 2011.
 
 FUTURE OUTLOOK
 
 The Company raised capital from International Market through vide
 Global Depository Receipt to the tune of
 
 Rs. 337,795,000/- in order to finance Capital expenditure,
 modernization, diversification and inter-alia to set up subsidiary
 companies outside India to explore overseas market. In line with the
 same the company has set up a subsidiary company in Hamariya Free Zone
 Authority, in U.A.E. The company is also influenced by the Global
 slowdown in recent time. The recent trouble being faced by the company
 are transitory and cyclical.  The management feels that in coming
 period the ongoing problems will be overcome.
 
 DEPOSITS
 
 The company has not invited or accepted any Public Deposits during the
 year.
 
 SUBSIDIARY COMPANY
 
 Your company has already setup 100% Subsidiary abroad under the name
 and style Ashco Niulab FZE at Hamariya Free Zone Authority UAE in order
 to cater to the need of international market.  The Subsidiary company
 has started its commercial operations.
 
 As per approval granted by the Ministry of Corporate Affairs vide
 circular No. 02/2011 dated February 8, 2011, copies of the Balance
 Sheet, Profit and Loss Account, Report of the Board of Directors and
 Auditors of the Subsidiary companies are not being attached to the
 Balance sheet of the Company. The Annual Accounts of the Subsidiary
 company and related detailed information relating to that will be made
 available to shareholders at the registered office the company at any
 point of time.
 
 STATUTORY INFORMATION
 
 Information in accordance with 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, requiring
 disclosure of particulars regarding Conservation of Energy, Technology
 Absorption and Foreign Exchange Earnings and Outgo given in the
 prescribed format is annexed hereto (Annexure-I) and forms part of this
 report.
 
 PARTICULARS OF EMPLOYEES
 
 In accordance with the provisions of section 217(2A) of the Companies
 Act, 1956 and the Rules framed there under, (Including any amendment,
 reenactment and modification thereof) and read with circular issued by
 Hon''ble Ministry of Corporate Affairs in this regard, there is no
 employee in the company who if employed throughout the financial year
 was in receipt of remuneration for that year which, in aggregate was
 not less the sum prescribed for.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 & also
 Company''s Articles of Association of the company Mr. Rajesh Sriniwas
 Nawathe, Director retires by rotation and being eligible of
 re-appointment offers himself for re-appointment.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217(2AA) of the Companies Act, 2000, the Directors
 confirm that:
 
 1.  in the preparation of the annual accounts, the applicable
 Accounting Standards have been followed with proper explanation
 relating to material departures;
 
 2.  appropriate accounting policies have been selected and applied
 consistently, and have made judgments and estimates that are
 reasonable and prudent so as to give a true & fair view of the state of
 affairs of the company as at 30th September, 2011 and of the loss of
 the company for the financial year ended on that date;
 
 3.  proper and sufficient care has been taken 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 & detecting fraud & other irregularities;
 
 4.  the annual accounts have been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE REPORT
 
 A detailed compliance report on Corporate Governance is provided
 elsewhere in the Annual Report. Practicing Company Secretary''s
 Certificate on Compliance with the conditions of Corporate Governance
 under clause 49 of the Listing Agreement is also provided in the Annual
 Report.
 
 AUDITORS'' REMARKS
 
 The observations made by the Auditors with reference to Notes to the
 Accounts for the year under report are self-explanatory and need no
 further comments from the Directors.
 
 AUDITORS
 
 M/s. GMJ & Co., Chartered Accountants, the Auditors of the company
 retire at the conclusion of this Annual General Meeting and are
 eligible for re-appointment.
 
 ACKNOWLEDGMENTS
 
 Your Directors place on record their appreciation of the valuable
 co-operation and support of Customers, Shareholders, Company''s Bankers,
 and Government Authorities. The Board also wishes to express its
 appreciation to all the employees of the company for their contribution
 to the operations of the company during the year.
 
 
 
                                             For and on behalf of Board
 
                                                        ASHOAK KOTWAANI
 
                                           CHAIRMAN & MANAGING DIRECTOR
 
 Registered Office:
 
 Lab House, Plot No. F-13,
 
 Opp. SEEPZ, M. I. D. C., Andheri (East),
 
 Mumbai – 400 093
 
 Date : 05th December, 2011