We are delighted to presentthe report on ourbusiness and
 operations for the year ended March 31.2011.
 
 FINANCIAL PERFORMANCE                                  (Rs in lacs)
 
 Particulars                                        2010-11    2009-10
 
 Sales                                                16133      10678
 
 Profit before depreciation                            3679       2221
 
 Depreciation                                          1242       1119
 
 Profit before tax                                     2437       1102
 
 Provision for taxation                                 578        286
 
 Profit aftertax                                       1859        816
 
 EPS(inRs.)                                            2.27       1.32
 
 Paid up Equity Share capital                          1636       1083
 
 Reserves                                             12839      11723
 
 Dividend (in percentage)                                25         25
 
 For detailed analysis of the performance, please refer to managements
 discussion and analysis section of the annual report.
 
 DIVIDEND
 
 Your Directors are pleased to recommend a dividend of Rs.0.50/- per
 equity share of Rs.2/- for the financial year 2010-11. The dividend, if
 approved at the ensuing Annual General Meeting, will be paid to those
 shareholders whose name appear on the register of members of the
 Company as on 28th July, 2011.
 
 TRANSFERTO RESERVES
 
 Your Directors have proposed to transfer Rs.200 leas to the General
 Reserve retaining Rs.1185 lacs in the Profit and Loss account.
 
 DEPOSITS
 
 Your Company has not accepted any deposits and, as such, no amount of
 principal or interest was outstanding on the date of the Balance Sheet.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956, Dr.Shiban
 K Koul, and Mr.B.Malla Reddy, Directors retire
 by rotation and being eligible offer themselves for re-
 appointment.
 
 The brief resume/details relating to directors who are to be
 re-appointed are furnished in the Corporate Governance section.
 
 DIRECTORS RESPONSIBIUTYSTATEMENT
 
 As required under section217(2AA)of the Companies Act,1956, the Directors
 confirm that:
 
 - In the preparation of Annual Accounts, the applicable accounting
 standards had been followed along with proper explanation relatingto
 materialdepartures;
 
 - 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 financialyear and of the profit or loss
 of the Company forthat period;
 
 - 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 detectingfraud and other irregularities;
 
 - The Directors had prepared the annualaccounts on a goingconcern
 basis.
 
 PARTICULARS REGARDING SUBSIDIARY COMPANY
 
 As per Section 212 of the Companies Act, 1956, we are required to
 attach the Directors report, Balance sheet and Profit and Loss account
 of our subsidiary i.e., Komoline Electronics Private Limited. The
 Ministry of Corporate Affairs, Government of India vide its circular
 no.2/2011 dated February 8,2011 has provided an exemption to companies
 from complying with Section 212, provided such companies publish the
 audited consolidated financial statements in the Annual Report.
 Accordingly, the Annual Report 2010-11 does not contain the financial
 statements of our subsidiary. The auditedannualaccountsand related
 information of oursubsidiary,whereapplicable,willbemadeavailable upon
 request.  These documents will also be available for inspection during
 business hours at our registered office in Hyderabad.
 
 The Company is in the process of selling its investment sheold in the 
 subsidiary company.
 
 INCREASE IN SHARE CAPITAL
 
 The Board of Directors allotted during the year 2,72,75,075 Equity
 shares of Rs.2/- each as Bonus Shares in the proportion of one bonus
 share for every two shares held. The allotment of the Bonus shares was
 done on 31st December, 2010. As a result of this, the outstanding
 issued, subscribed and paid up equity shares increased from 5,45,50,150
 to 8,18,25,225 shares as at March 31,2011.
 
 AUDITORS
 
 The Statutory Auditors M/s Amar & Raju, Chartered Accountants,
 Hyderabad, retire at this Annual General Meeting. The Company is in
 receipt of confirmation from the Statutory Auditors that in the event
 of their reappointment as Statutory Auditors of the Company at ensuing
 Annual General Meeting, such reappointment will be in accordance with
 the limits specified in sub-section (IB) of Section 224of the Companies
 Act, 1956.
 
 As regard Auditors observations, relevant notes on accounts are self
 explanatory and therefore, do not call for any furthercomments.
 
 DISCLOSURES
 
 Disclosures in terms of Companies (Disclosure of Particulars in report
 of the Board of Directors) Rules, 1988 in respect of Conservation of
 Energy, Technology Absorption, Foreign Exchange Earnings & Outgo are
 attached (Annexure I) and forms part of this report.
 
 CORPORATEGOVERNANCE
 
 The Company has complied with the provisions of Clause 49 of the
 Listing Agreement relating to Corporate Governance. A report on
 corporate governance along with the statutory auditors certificate and
 a management discussion and analysis report forms part of this annual
 report.
 
 PARTICULARS OF EMPLOYEES
 
 Pursuant to the provisions of Section 217(2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules, 1975 as
 amended the names and other particulars of employees are set out in
 Annexure II to the DirectorsReport.
 
 EMPLOYEE RELATIONS
 
 Employee relations were cordial during the year and the Board would
 like to place on record its appreciation to all the employees of the
 Company fortheirdedicated services and performance in qualitative and
 quantitative parameters.
 
 ACKNOWLEDGMENTS:
 
 Your Directors express their gratitude to all investors, customers,
 vendors, banks and regulatory and governmental
 authoritiesfortheircontinued support.
 
                            For and on behalf of the Board of Directors
 
                          Mr. B. Malla Reddy        Mr. P. A. Chitrakar
 
                          Managing Director         COO
 
 Hyderabad
 27th April, 2011