Our Directors have pleasure in presenting the 17th Annual Report of
 the Company together with Audited Accounts for the year ended
 31-03-2005.
 
 FINANCIAL RESULTS
                                                   (Rs. in lakhs)
                                            YEAR ENDED        YEAR ENDED
                                            31-03-2005        31-03-2004
 
 Collections                                      6.29             24.14
 
 Profit (Loss) before Tax                     (221.60)          (366.55)
 
 Balance brought forward                      (792.11)          (478.11)
 
 Balance carried forward                     (1029.32)          (792.12)
 
 The companys turnover during the year has received a jolt. The Company
 is however taking steps for enhancing the operations and to achieve a
 better bottom line.
 
 ADDITIONAL INFORMATION AS REQUIRED U/S 217(1)(e) OF THE COMPANIES ACT,
 1956
 
 (a) Conservation of Energy : The company is monitoring the consumption
 of energy and is identifying measures for conservation of energy
 
 (b) (i) Research and Development (R & D): No research and Development
 has been carried out.
 
 (ii) Technology Absorption, adaptation and innovation:- No technology
 either indigenous or Foreign is involved.
 
 (c) Foreign exchange earnings and outgo : Nil
 
 PARTICULARS OF EMPLOYEES
 
 In pursuance of the provisions of section 217(2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules 1975, the
 Directors are to report that no employee was In receipt of remuneration
 of Rs.24,00,000/- or more per annum or Rs.2,00,000/- or more per month
 where employed for a part of the year.
 
 DIRECTORS
 
 Sri V Ravishankar retires by rotation at the ensuing Annual General
 Meeting and being eligible offers himself for re-appointment.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 i) that in the preparation of the Annual Accounts, for the year ended
 31st March, 2005, the applicable accounting standards have been
 followed and there are no material departures;
 
 ii) we have selected appropriate 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 as on 31st March, 2005 and of the Loss of the company for
 the financial year ended 31st March, 2005;
 
 iii) we 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) we have prepared the annual accounts for the financial year ended
 31st March, 2005 on a going concern basis
 
 AUDITORS:
 
 M/s. P. MURALI & Co., Chartered Accountants, retiring auditors of the
 Company being eligible offer themselves for reappointment as auditors
 of the Company. M/s. P.MURALI &Co,, Chartered Accountants have
 furnished a certificate Of their eligibility u/s 224 (1B) of the
 Companies Act, 1956. The members are requested to reappoint the
 auditors and authorize the Board of Directors of the Company to fix
 their remuneration
 
 MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT:
 
 Pursuant to Clause 49 of the Listing Agreement, a Management Analysis
 Report is given below:
 
 A. INDUSTRY BACKGROUND
 
 The medical equipments are mostly imported from various countries
 During the last one decade many companies have setup their
 manufacturing bases in India, either with indigenous technology or by
 Technology transfer.
 
 B. INDUSTRY OUTLOOK
 
 The growth of medicare services both in private and Government setups
 is increasing tremendously. The utilization of services shall also
 increase gradually with the privatization of insurance and higher
 awareness and availability of medical services. This increases purchase
 of medical equipment in the country.
 
 C. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
 
 The Company has adequate internal control systems that define roles and
 responsibilities of people across various levels of the organization.
 These systems facilitate effective checks and controls as well as tight
 monitoring on a continuous basis.
 
 D. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS:
 
 The Company is able to retain the experienced staff The Company feels
 confident of keeping its manpower costs to below industry norms, with
 the emphasis on becoming customer-centric, the staff are regularly
 exposed to training & Orientation programmes not only in their
 respective fields but also in public relations.
 
 STATEMENT PURSUANT TO LISTING AGREEMENT
 
 Presently the companys Equity shares are listed at The Hyderabad Stock
 Exchange Limited (HSE) and The Stock Exchange, Mumbai (BSE) and company
 has paid the Annual Listing Fees upto 2004-2005.
 
 CORPORATE GOVERNANCE
 
 A detailed report on Corporate Governance forming part of the
 Directors Report is enclosed
 
 PERSONNEL
 
 The relations between the management and the staff were very cordial
 throughout the year under review. Your Directors take this opportunity
 to record their appreciation for the co-operation and loyal services
 rendered by the employees.
 
 DEPOSITS
 
 The company has not accepted any deposits during the year.
 
 ACKNOWLEDGEMENTS
 
 Your Directors wish to place on record their appreciation for the
 support extended by Government Authorities, Company Bankers, Customers
 and Shareholders of the Company
 
 Your directors also wish to place on record their appreciation for the
 sincere services rendered by the employees of your Company during the
 year. Their dedication, teamwork and efficiency have been commendable.
 
                                      BY ORDER OF THE BOARD OF DIRECTORS
                                      for CDR MEDICAL INDUSTRIES LIMITED
                                   P.PRASADA RAO        N. SRIDHAR REDDY
                                        DIRECTOR                DIRECTOR
 PLACE : HYDERABAD
 DATE : 05-09-2005