The Directors have pleasure in presenting the 20th Annual Report
 together with audited accounts of the Company for the year ended 31st
 March, 2010.
 
 FINANCIAL RESULTS                                (Rs in Lakhs)
 
 
                                           2009-2010        2008-2009
 
 Profit before Depreciation                 4,799.92         3,139.28
 
 Less: Depreciation                         2,565.30         2,180.84
 
 Less: Taxes                                  729.02           153.60
 
 Profit after Tax                           1,505.60           804.83
 
 Surplus brought forward from last year       784.25           238.73
 
 Amount available for appropriation         2,289.85         1,043.56
 
 Appropriations:
 
 Provision for Equity Dividend                236.31           157.54
 
 Provision for Tax on Dividend                 40.16            26.77
 
 Transfer to General Reserve                1,500.00            75.00
 
 Surplus carried over to Balance Sheet        513.37           784.25
 
 Total                                      2,289.85         1,043.56
 
 
 DIVIDEND
 
 Your Directors are glad to recommend payment of dividend of Rs. 1.50/-
 per equity share of Rs, 10/- each to the equity shareholders (15% on
 the Equity Capital). The dividend is free from income tax in the hands
 of shareholders.
 
 REVIEW OF OPERATIONS
 
 The performance of the company during the year under review was
 encouraging. The improvement in demand for textile products in both
 Domestic and Export Markets and consequent better offtake for the
 products of the Company, in the second half of the financial year has
 resulted in improved performance when compared to the last year, Having
 put to use all the production facilities last year itself, the company
 could achieve Optimum Capacity Utilization during the year under
 review.
 
 The performance of Spinning & Weaving Divisions is satisfactory,
 despite the high cotton price for major part of the year and intense
 power cut and intermittent power shutdowns prevailing in Tamilnadu. The
 Directors are optimistic of better performance in the current financial
 year.
 
 Spinning Division
 
 During the year under review, the Spinning Mills produced 19318,86
 tonnes - inclusive of purchased quantity (58.39 tonnes) of Yarn and
 sold 19294,03 tonnes (18572,42 tonnes) of Yarn. The sales include
 5413.49 tonnes (5163.25 tonnes) by way of Export. The total sales of
 this division amounted to Rs. 26798.24 Lakhs (Rs.24600.73 Lakhs) of
 which export sales amounted to Rs.7507.00 Lakhs (6249.93 Lakhs)
 constituting 28.01% (25.41%) of the total revenue. The demand and
 realizations of finished products in Spinning Division were
 encouraging.
 
 Weaving Division
 
 The Weaving Division specializes in manufacturing wide-width cotton
 fabric. During the year under review, 60.84 Lakh Metres (42.98 Lakh
 Metres) of Fabric were produced and 64.78 Lakh metres (38.29 Lakh
 metres) of Fabric were sold.
 
 Wind Mill Division
 
 The company has 4 windmills of 1250 KVA each totalling 5 MW in
 Radhapuram Taluk, Tirunelveli District, Tamilnadu and 23 Nos Windmills,
 each of 800 KW capacity totaling 18.40 MW capacity in Dharapuram Taluk,
 Tiruppur District and Palani Taluk, Dindigul District, Tamilnadu. The
 total installed capacity of Windmills is 23.40 MW. The whole of the
 power generated is captively consumed by the Spinning Units.
 
 The windmills produced 522.27 Lakh units of wind energy as against
 298.75 lakh units produced in the last year.
 
 Processing and Technical Textiles Division
 
 During the year under review, 17.42 Lakh Metres (11.52) of Coated
 Fabric were produced and 17.12 Lakh metres (10.66) of Coated Fabric
 were sold. The end products/applications of these fabrics include Home
 Textiles, upholstery, apparel fabric, performance and industrial
 fabric.
 
 During the year under review, 1.10 Lakh Metres (5.83 Lakh Metres) of
 Breathable water proof Fabric were produced and 1.05 Lakh metres (5.14
 Lakh metres) were sold under the Brand name Quick dry.
 
 Prospects for the current year and Expansions
 
 The performance of the Company is expected to be better, considering
 the market and Economic Scenario prevailing in the Country. The company
 is striving to achieve maximum capacity utilization using captive power
 generation and purchase of power from third parties.
 
 To meet the increased power requirements of Spinning Divisions of the
 Company 2 nos of Enercon make windmills with a capacity of 800 KW each,
 aggregating 1.60 MW near Chinnapudur, Dharapuram Taluk and 3 nos. of
 Vestas make windmills with capacity of 1650 KW aggregating 4.95 MW in
 Kongalnagaram, Udumalpet Taluk, Tiruppur District, Tamilnadu are being
 installed.
 
 PUBLIC DEPOSITS
 
 During the year under review, the Company has not accepted any deposits
 from the Public.
 
 DIRECTORS
 
 Sri K N V Ramani, Sri S Palaniswami and Dr K R Thillainathan Directors
 will retire by rotation at the ensuing Annual General Meeting and they
 are eligible for reappointment.
 
 The term of office of Sri S V Arumugam as Managing Director and Sri S K
 Sundararaman as Executive Director expires on 26.06.2010. The Board of
 Directors have appointed them for a further period of 5 years. Such
 appointment and payment of remuneration are subject to approval of the
 shareholders in the ensuing Annual General Meeting.
 
 AUDIT COMMITTEE
 
 The Audit Committee comprises of
 
 1.  Sri C S K Prabhu   - Chairman (Non-Executive Independent Director)
  
 2.  Sri A Senthil      - Member (Non-Executive Director)
 
 3.  Sri K N V Ramani   - Member (Non-Executive Independent Director) 
                          and
 
 4.  Sri S Palaniswami - Member (Non-Executive Independent Director)*
 
 -Appointed as Audit Committee member w.e.f 10.05.2010
 
 PARTICULARS OF EMPLOYEES
 
 The information required under section 217(2A) of the Companies Act,
 1956, read with Companies (Particulars of Employees) Rules, 1975 and
 forming part of the Directors report is furnished in Annexure-I.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The particulars required to be included in terms of Section 217(1) (e)
 of the Companies Act, 1956 with regard to conservation of energy,
 technology absorption, foreign exchange earnings and outgo are given in
 Annexure -II.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 As stipulated in Section 217 (2AA) of the Companies Act, 1956 your
 Directors confirm that:
 
 (i) Your Directors have followed the applicable accounting standards in
 the preparation of annual accounts;
 
 (ii) Your Directors have selected such accounting policies and applied
 them consistently and made judgements 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 2009-2010 and of the
 profit of the company for that period;
 
 (iii) Your 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; and
 
 (iv) Your Directors have prepared the annual accounts on a going
 concern basis.
 
 CORPORATE GOVERNANCE
 
 A separate section on Corporate Governance, Management Discussion and
 Analysis and a certificate from the Auditors of the Company regarding
 compliance of conditions of Corporate Governance as stipulated under
 clause 49 of the Listing Agreement form part of this Annual Report.
 
 AUDITORS
 
 The present Auditors of the Company M/s P.N. Raghavendra Rao & Co,
 Chartered Accountants, Coimbatore are retiring at the ensuing Annual
 General Meeting and are eligible for re-appointment.
 
 INDUSTRIAL RELATIONS
 
 The relationship with employees continued to remain cordial throughout
 the year under review.
 
 ACKNOWLEDGEMENT
 
 Your Directors acknowledge with gratitude the timely assistance and
 help extended by the Bankers for having provided the required bank
 facilities. Your Directors wish to place on record their appreciation
 of the contributions made by the employees at all levels for the
 excellent performance of your Company.
 
 
 
                                              BY ORDER OF THE BOARD
 
                                                S V BALASUBRAMANIAM
 
                                                           Chairman
 
 Coimbatore
 27th May, 2010