The Directors have pleasure in presenting the 22nd Annual Report
 together with audited accounts of the Company for the year ended 31st
 March, 2012.
 
 FINANCIAL RESULTS                                      (Rs in Lakhs) 
 
                                                   2011-2012   2010-2011
 
 Profit before Depreciation                           326.47   12,108.40
 
 Less: Depreciation                                 3,722.63    3,720.03
 
 Less : Taxes                                      -1,758.55    2,838.91
 
 Less : Extra Ordinary Item (Net of Tax Expenses)          -    1,669.06
 
 Profit after Tax                                  -1,637.61    3,880.40
 
 Surplus brought forward from last year             1,026.36      513.37
 
 Amount available for appropriation                  -611.25    4,393.77 
 
 Appropriations:
 
 Provision for Equity Dividend                             -      315.08
 
 Provision for Tax on Dividend                             -       52.33
 
 Transfer to General Reserve                               -    3,000.00
 
 Surplus carried over to Balance Sheet                     -    1,026.36
 
 Total                                                     -    4,393.77 
 
 DIVIDEND
 
 Your Directors have not recommended any dividend for the financial year
 2011-2012 considering the Losses suffered by the Company.
 
 REVIEW OF OPERATIONS
 
 Spinning Division
 
 During the year under review, the Spinning Mills produced 14696.59
 tonnes (22477.00 tonnes) inclusive of purchased quantity 56.68 tonnes
 (242.23 tonnes) of Yarn and sold 16136.67 tonnes (21015.25 tonnes) of
 Yarn. The sales include 8603.05 tonnes (7646.09 tonnes) by way of
 Export. The total sales of this division amounted to Rs 34489.74 Lakhs
 ( Rs 44329.66 Lakhs) of which export sales amounted to Rs 18382.30
 
 Lakhs ( Rs 17989.34 Lakhs) constituting 53.30% (40.58%) of the total
 revenue.
 
 Volatility in the price of raw material, acute power shortage, glut in
 the domestic and international markets, closure of dyeing units in
 textile clusters - particularly Tirupur in Tamilnadu due to
 environmental issues, have had adverse impact on the performance of the
 company.
 
 Weaving Division
 
 The Weaving Division specializes in manufacturing wide-width cotton
 fabric. During the year under review, 66.93 Lakh metres (86.33 Lakh
 Metres) of Fabric were produced and 70.21 Lakh Metres (76.13 Lakh
 metres) of Fabric were sold.
 
 Wind Mill Division
 
 The company has 4 windmills of 1250 KW each totaling 5MW in Radhapuram
 Taluk, Tirunelveli District, Tamilnadu, 25 Nos windmills, each of 800
 KW capacity totaling 20 MW capacity in Dharapuram Taluk, Tirupur
 District and Palani Taluk, Dindigul District, Tamilnadu and 3 Windmills
 of 1650 KW each in Kongalnagaram, Udumalpet Taluk, Tirupur District,
 Tamilnadu. The total installed capacity of Windmills is 29.95 MW and
 the whole of the power generated is captively consumed by the Spinning
 Units.
 
 The windmills produced 528.55 Lakh units of wind energy as against
 563.67 lakh units produced in the last year.
 
 Processing and Technical Textiles Division
 
 During the year under review,16.03 Lakh Metres (18.84 Lakh Metres) of
 Coated Fabric were produced and 16.52 Lakh metres (18.82 Lakh Metres)
 of Coated Fabric were sold. During the year under review 2.53 Lakh
 metres of Canvas were produced and 2.50 Lakh metres of Canvas were
 sold. The end products/applications of these fabrics include Home
 Textiles, upholstery, apparel fabric, performance and industrial
 fabric.
 
 During the year under review, 3.35 Lakh Metres (2.12 Lakh Metres) of
 Breathable water proof Fabric were produced and 3.46 Lakh metres (1.75
 Lakh metres) were sold under the Brand name Quick dry.
 
 Prospects for the Current Year
 
 The full year operation of garment division is expected to add
 favourable revenue. Power availability as well as market conditions are
 expected to improve. Steps have been taken to increase export sales.
 The working results are expected to be satisfactory.
 
 PUBLIC DEPOSITS
 
 During the year under review, the Company has not accepted any deposits
 from the Public.
 
 DIRECTORS
 
 Sri K N V Ramani and Sri K Sadhasivam, Directors will retire by
 rotation at the ensuing annual general meeting and they are eligible
 for reappointment.
 
 AUDIT COMMITTEE
 
 The Audit Committee comprises of
 
 1.  Sri C S K Prabhu - Chairman (Non- Executive Independent Director)
 
 2.  Sri K N V Ramani - Member (Non- Executive Independent Director) and
 
 3.  Sri S Palaniswami - Member (Non- Executive Independent Director)
 
 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 Director''s report is not furnished as none of the
 employees were drawing remuneration in excess of limits specified
 therein.
 
 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 - I.
 
 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 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 2011-2012 and of the
 loss of the company for the year under review.
 
 (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.
 
 COST AUDITOR
 
 Sri M Nagarajan, Cost Accountant, Coimbatore has been appointed as Cost
 Auditor to conduct Cost Audit of the Company for the financial year
 2012 onwards, subject to approval of Central Government.
 
 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
                
 Coimbatore                                                S V ARUMUGAM
 
 30th May, 2012                            Chairman & Managing Director