To the Members
 
 The Directors are pleased to present the 14th Annual Report on the
 working of the Company, together with the Audited Accounts for the year
 ended 30th June 2011.
 
 HIGHLIGHTS: -
 
 FINANCIALS
 
                                                          Rs./Lacs
 
                                For the Year Ended   For the Year Ended
 Particulars                        30th June 2011       30th June 2010
 
 Sales                                  7710.28            5619.69
 
 Profit Before Tax                       403.28             218.45
 
 Less: Provision for current Tax          81.10              39.57
 
 Provision for deferred Tax                 -                31.85
 
 Profit / (Loss) After Tax               322.17             147.03
 
 Balance brought forward from Previous 
 Year                                    168.80             146.76
 
 Profit available for appropriation      490.97             293.80
 
 Less: Transfer to General Reserve       150.00             125.00
 
 Balance carried over to the next year   340.97             168.80
 
 BUSINESS OVERVIEW
 
 During the year under review, the Company achieved a total turnover of
 Rs. 1 T\ 0.28 Lacs as compared to Rs. 5619.69 Lacs in 2009-10.The
 Company has earned a profit before tax of Rs. 403.28 Lacs as compared
 to Rs. 218.45 in the previous accounting year 2009-10 and a net profit
 of Rs. 322.17 Lacs as compared to a profit of Rs. 147.03 Lacs during
 the previous year 2009-10.
 
 The automobile industry reported 26.17% growth in vehicle sales during
 2010-2011. Factors like GDP growth, higher spending on infrastructure
 development, strong consumer confidence, government''s focus on rural
 areas, moderate price hike by the auto makers despite steep rise in
 commodity rates and introduction of new models helped the industry to
 register robust growth during financial year 2010-2011.
 
 The healthy growth of Automotive industry has driven the automotive
 textile industry to perform effectively and achieve remarkable growth.
 AUNDE India has also achieved a significant growth of 37% in sale
 turnover in the year 2010-11 as compared to previous year. The
 profitability of the Company has immensely grown showing 119% of
 increase in net profits.
 
 FUTURE OUTLOOK
 
 The Indian automotive industry has achieved the position of the top
 growing passenger car market in the world during the January-June
 period in 2011. According to The Society of Indian Automobile
 Manufacturers (SIAM), in passenger vehicles, India was the fastest
 growing market at 18.20 per cent during the six month and India''s
 automobile industry is expected to grow by 11 to 13 per cent in the
 fiscal year ending March 2012.  The four-wheel passenger vehicle market
 has grown impressively at the hands of the new middle class, and there
 is huge opportunity, as market penetration remains low.
 
 AUNDE India is participating in the design development process of
 textiles and covers for sportswear, airplane, buses, coaches etc with
 AUNDE Global Group. Further, the Company is trying to tie up with AUNDE
 Global Group members for market knowledge and fabric development
 programmes, which will facilitate the Company to expand its market
 share in auto textile segment in India as well as globally.
 
 Further, the Company has successfully bagged export orders for supply
 of fabric to General Motors under Global Programme. The shipments will
 commence from 2012.
 
 The Company is looking forward to grab opportunities by offering
 products with varied designs and consumer preferences. With its
 technologically advanced equipments AUNDE is confident to reap the
 benefits in coming years.
 
 DIVIDEND
 
 In order to conserve resources for strengthening the on-going
 project(s), your Directors do not recommend any dividend for the year
 under review.
 
 FIXED DEPOSITS
 
 Your Company has not accepted any deposits from public in terms of the
 Companies (Acceptance of Deposits) Rules, 1975, and no amount of
 principal or interest was outstanding on the date of the Balance Sheet.
 
 DIRECTORS
 
 Mr. R. J. Avadhani, Director of the Company retires by rotation at the
 ensuing Annual General Meeting pursuant to the provisions of section
 255 the Companies Act, 1956 and Articles of Association of the Company
 and is eligible for re-appointment.
 
 AUDITORS
 
 M/s. Majibail & Company, Chartered Accountants, who are the Statutory
 Auditors of the Company hold office until the ensuing Annual General
 Meeting. It is proposed to re-appoint them to examine and audit the
 accounts of the Company for the Accounting Year 2011-12. M/s. Majibail
 & Company have, under Section 224(1 B) of the Companies Act, 1956
 furnished the certificate of their eligibility for re-appointment.
 
 PARTICULARS OF EMPLOYEE
 
 There are no employees drawing salary as required to be mentioned under
 Section 217 (2A) of the Companies Act, 1956 read with Companies
 (Particulars of Employees) Rules, 1975.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 Details of energy conservation and research and development activities
 undertaken by the Company alongwith the 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, are given asanAnnexuretothe Directors'' Report.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
 Directors confirm that:
 
 (i) in the preparation of the Annual Accounts, the applicable
 Accounting Standards have been followed alongwith proper explanation
 relating to material departures;
 
 (ii) the Company has selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent 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 Company has taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provision of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities; ;,
 
 (iv) these Accounts have been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE
 
 A separate section on Corporate Governance is included in the Annual
 Report and the Certificate from the Company''s auditors confirming the
 compliance of conditions on Corporate Governance as stipulated in
 Clause 49 of the Listing Agreement with the Stock Exchanges, form part
 of this Annual Report.
 
 ACKNOWLEDGEMENT
 
 The Directors place on record their appreciation of the continued
 support extended by the Company''s clients, business associates,
 supplier partners, bankers and investors during the year. The Directors
 also place on record their appreciation of the dedication and
 contributions made by the employees at all levels, who through their
 competence, hard work and support have enabled the Company to achieve
 growth and improved performance. The Directors look forward to their
 continued support in the future as well.
 
                                  By order of the Board of Directors 
                                             For AUNDE India Limited 
 
 Place: Mumbai 
 
 Date : 29th August, 2011                               (Ajay Anand)
                                                  Managing Director