The Directors have pleasure in presenting the Twenty Second Annual
 Report of the Company together with the Audited Accounts for the
 financial year ended 31st March, 2012.
 
 FINANCIAL RESULTS: 
 
                                                   (RS. IN LAKHS)
 
 PARTICULARS 
                                     YEAR ENDED 
                                     31.03.2012       YEAR ENDED 
                                                      31.03.2011
 
 Sales                              102,913,133       96,962,959
 
 Other Income                         1,971,075         6,83,755
 
 Interest                             7,921,867        7,932,772
 
 Depreciation                         3,664,179        3,750,466
 
 Profit/(Loss) before tax             6,538,915        6,724,731
 
 Net Profit/(Loss)                    4,286,762        5,742,134
 
 BUSINESS ANALYSIS:
 
 Your Directors are happy to inform you that during the financial year
 under review, your company has been able to generate sufficient cash to
 pay off all the outstanding secured loans together with interests due
 thereon up to the period ending March 31, 2012. With the payment of
 this Final installment of Secured Loan your company has been able to
 release all encumbered assets.
 
 Your company is at a strategic inflection point and we see an
 opportunity for transformational growth in its business and your
 Directors are in the process of putting in place a new growth strategy
 for your company.
 
 The year under review was a difficult year for your company. While the
 Sales grew by 6% during year moving up to Rs. 10.29 Crores, the profits
 have fallen by 25% year on year to Rs. 42.86 Lakhs. The dip in profits
 was essentially due to the one time hit taken in the year for settling
 all outstanding secured creditors, and the interest payments due on the
 loans.
 
 Your Directors were on the path to clear off all creditors to set the
 stage for a new beginning, and we are happy to confirm that your
 company is set to move forward in the right direction.
 
 Business during the fiscal 2012 was good as your company won large
 value orders from the Cotton Corporation of India, Khadi Board and
 export orders from our long standing customers in Saudi Arabia.
 
 In keeping with the stated objectives of supporting the growth through
 large value orders, your Directors have planned investments into new
 plant & machinery to manufacture Wider Width Canvas and put in place
 related In-house Dyeing & Processing facilities for manufacturing &
 processing canvas fabrics of up to 120 inches width. Your Directors are
 delighted to inform you that your company would be the FIRST in India
 to set up processing facilities for such large width fabric. The new
 facility should be commissioned by the end of the second quarter of the
 current fiscal 2013.
 
 Having put in place the right team and investments into the canvas
 fabrics business, your Directors have decided to diversify into new
 areas to support the planned growth. Several products have been
 evaluated for this purpose including setting up a line for
 manufacturing PVC Foam boards, HDPE Tarpaulins, and Flex banner fabric.
 Your Directors have completed a thorough study of market for each of
 these products and have worked with Consultants from these industries
 to get deeper insights into these product
 
 segments.
 
 Your Directors are happy to inform that a decision has been taken to
 diversify into the manufacture of Flex banner fabric, which are in huge
 demand, are an import substitute and can help save precious forex for
 India. Your Directors have submitted a detailed project plan to
 appropriate authorities and evaluating agencies and have proposed
 enabling resolutions for such investments to progress these proposals
 forward.
 
 Your Directors are confident of achieving exponential growth in
 Turnover & profits with this business diversification.
 
 DIVIDEND:
 
 Considering that the planned diversification would require resources
 and due to carry forward losses in the books, your Directors have
 decided not to declare any dividend for the fiscal 2011-12.
 
 DIRECTORS:
 
 In accordance with the provisions of the Companies Act, 1956, Shri.
 Anil Bhandari, Director, retires by rotation and being eligible offers
 himself for reappointment. Your directors recommend that Shri. Anil
 Bhandari be reappointed as Director of the Company.
 
 During the year under review, Shri. Ragunathmall Samarathmall, Shri.
 Bhagchand Ranka and Shri. C.N. Shenbagamoorthy resigned from the Board
 with effect from 29th March 2012. The Board would like to place on
 record their gratitude to Shri Raghunathmall Samrathmall, Shri
 Bhagchand Ranka and Shri C. N. Shenbagamoorthy, for their valuable
 contribution to the companys policy making and business, during their
 tenure as Directors on the Board.
 
 Further during the year Shri. Mahendrakumar Bhandari was co-opted as an
 Additional Director with effect from 27th February 2012, and Shri. S.
 Vinod Kumar and Shri. Rajesh Gurdas Wadhwa were co-opted as Additional
 Directors with effect from 29th March 2012.  We welcome the new members
 of the Board and look forward to their active contribution to the
 companys vision, and direction.
 
 FIXED DEPOSITS:
 
 The Company has not accepted any Deposits from the public within the
 meaning of Section 58 A of the Companies Act, 1956 and the rules framed
 there under.
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956, the Directors confirm that:
 
 1. In the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanations relating to
 material departures; if any;
 
 2. 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 financial year 31st March, 2012 and of
 the profit of the Company for the said year;
 
 3. The Directors had 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;
 
 4. The annual accounts have been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE:
 
 To comply with the requirements of Corporate Governance, pursuant to
 Clause 49 of the Listing Agreements with the Stock Exchanges,
 Management Discussion and Analysis Report, Report on Corporate
 Governance are included in the Annual Report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
 
 The management discussion an analysis of financial condition including
 the result of the operations of the company for the year under review
 as required under clause 49 of the Listing Agreement with the Stock
 Exchange is given as a separate statement in the Annual Report.
 
 LISTING:
 
 The shares of the Company are listed with Bombay stock Exchange, Madras
 Stock Exchange and Ahmadabad Stock Exchange. The securities are
 currently under suspension. Your Directors are in the process of
 getting these suspension revoked at the Bombay Stock Exchange.
 
 AUDITORS:
 
 M/s. Sakaria & Associates., Chartered Accountants, Chennai, Auditors of
 the Company retires at the conclusion of this Annual General Meeting
 and are eligible for re-appointment. The Company has received a
 certificate from the Auditors to the effect that their re- appointment,
 if made, would be in accordance with the limits specified under Section
 224(1B) of the Companies Act, 1956. The Board recommends their
 re-appointment.
 
 PERSONNEL:
 
 There are no employees who are paid remuneration in excess under
 Section 217(2A) of the Companies Act, 1956 read with Companies
 (Particulars of Employees) Rules, 1975 as amended from time to time.
 
 PARTICULARS OF ENERGY CONSUMPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
 AND TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION, RESEARCH AND
 DEVELOPMENT:
 
 A) Energy Conservation:
 
 Conservation of energy continues to receive increased emphasis and
 steps are being taken to reduce the consumption of energy at
 
 all levels. The details of consumption are as follows:_
 
                                                    CONSUMPTION IN THE 
 DIESEL (IN LTRS.)     opening 
                       stock      purchase 
                                  in ltrs.    closing 
                                              stock        year
 
                       1.4.11     1.4.11 to 
                                    31.3.12   31.3.12     1.4.11 to 
                                                          31.3.12
 
 Quantity 
 in liters                300        10,379       250      10,429
 
 Amount in Rupees      12,051      4,56,618    10,993     457,676
 
                      OPENING                  CLOSING 
 FIRE WOOD            STOCK        PURCHASE    STOCK     CONSUMPTION 
                                                         IN THE
 YEAR
                      1.4.11        1.4.11 
                                to 31.3.12     31.3.12     1.4.11 to 
                                                             31.3.12
 
 Quantity in (KGS)    17,118     12,63,265       8,000     1,272,383
 
 Amount in (Rs.)      47,074     3,544,693      20,800     3,570,967
 
 Power Consumption from 1.4.11 to 31.3.12
 
 Value in Rupees   2,464,078                 Units       3,63,240
 
 B)   Foreign Exchange Earnings and Outgo: 
 
                     2012 (in Rs.)              2011 (in Rs.)
 
 EARNINGS             14,976,863                 3,294,076
 
 OUTGO                  4,93,940                  5,33,214
 
 C) Technology absorption, adaptation and innovation, research and
 development:
 
 Research and Development activities are carried out on an ongoing basis
 for improving quality of the products.
 
 ACKNOWLEDGEMENT:
 
 Your Directors would like to express their grateful appreciation for
 the support and co-operation of all stakeholders. At the very heart of
 our success and our ability to deliver quality service and satisfaction
 is the considerable skill and motivation of our employees. On behalf of
 all the companys stakeholders, the Board would like to express its
 sincere appreciation and gratitude.
 
                               For and on behalf of the Board 
 
                                Sd/-           Sd/-
                            Ajeet Kumar 
                            Bhandari        Anil Bhandari
                            Managing 
                            Director      Whole Time Director