The Directors have pleasure in presenting the 23rd Annual Report of
 your Company together with the Audited Statements of Accounts for the
 year ended March 31, 2012.
  
                                               (Rs. in Lacs)
 
 Financial Results                       Year Ended     Year Ended
                                         31.03.2012     31.03.2011
 
 Income                                       6.22          2.22
 
 Profit before Tax & extraordinary item       3.05          0.40
 
 Less : Provision for Taxation                 -            0.07
 
 Profit after Tax                            (1.92)         0.33
 
 Add: Profit/(Loss) brought forward 
 from Previous Year                          (4.67)        (5.00)
 
 Balance carried forward                     (6.59)        (4.67)
 
 DIVIDEND
 
 In view of current year loss as well as due to carried forward losses,
 your Directors do not recommend any Dividend for the year under review.
 
 INDUSTRY STRUCTURE AND DEVELOPMENT
 
 The Indian economy has emerged rapidly from the slowdown caused by the
 global financial crisis of 2007- 09 and remains one of the fastest
 growing economies of the world. After dipping to 6.8% in 2008-09, GDP
 growth had recovered sharply to 8% and is projected to remain above
 this level in 2010-11. Economic and financial events over the year,
 however, have increased concerns about the sustainability of the growth
 momentum.
 
 The global economic and financial situation is recovering slowly. The
 large fiscal deficits and high debt ratios coupled with slow economic
 growth have created unsettling conditions for business and have
 potential for causing great volatility in financial markets. It is hard
 to visualize strong economic growth in the advanced economies in 2010
 and to a large extent in 2011. The implications of this, for India''s
 strategy to return to the 9.0 per cent growth trajectory, are that
 public policy must promote business confidence and facilitate increased
 investment.
 
 Apart from above, high current account deficit, particularly in the
 context of weakening capital inflows, was also a cause of concern,
 which has hitherto managed to compensate the rising trade deficit. The
 current account deficit was a manifestation of strong domestic demand
 and global weakness. This pressure has abated somewhat during the past
 few months, with rise in exports and slowing (non-oil) imports.
 However, a strong rebound in India''s exports over the past couple of
 months has considerably reduced the pressure, but India''s overall
 balance of payments remains weaker than expected, putting pressure on
 the Rupee.
 
 OPPORTUNITIES & THREATS
 
 The Fundamental drives of India''s medium term growth prospects remain
 intact. However, global developments, in conjunction with Indian Policy
 responses to the concerns noted above, are likely to make 2011-12 a
 challenging year.
 
 Global economic and financial conditions can be expected to remain
 adverse for some time, particularly in the aftermath of Japan''s
 natural disaster. Once the current financial year and commodity
 volatility subsides, deeper structural factors are likely to slow down
 economic growth, particularly in developed economics.  Fiscal
 consolidation in Europe and an excess supply overhang in the US will
 probably moderate growth in the second half, together with increasing
 expectations of policy rate rise to quell rising inflation.
 
 In India, inflationary pressure are likely to persist and hence result
 in a further, though moderate, monetary policy tightening the impact of
 which will be increasingly visible, through rising borrowing costs, in
 fiscal 2012. Increasing savings, high interest rates, an expected lower
 rise in currency driven by lower food prices, are likely to help
 deposits to grow stronger in fiscal 2012. However, in light of
 inflationary pressures and rising interest rates, there is a likelihood
 that the credit growth momentum might slow in 2011-12.
 
 OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE
 
 During 2010-11, the Company has actually started its business
 activities and has earned small profit during the year. Having laid
 down its key business objectives and a common vision, it took several
 steps in fulfilling these goals. The Company focused on strengthening
 its retail risk appetite in the SME business and filling product gaps
 in its business.
 
 Your Company is providing Advisory Services to clients and also
 investing its surplus fund in Capital and/or Securities Market. The PBT
 of the Company stood at Rs. 0.40 Lac which is below its expectation.
 The Company is trying hard to get new clients or business in order to
 survive and then to develop its business.
 
 RISK MANAGEMENT & CONCERNS
 
 The objective of risk management is to balance the trade-off between
 risk and returns and ensure optimum risk adjusted return on capital. It
 entails the identification, measurement and management of risks across
 the various businesses of the Company. Risk is managed through a
 framework of policies and principles approved by the Board of Directors
 and supported by an Independent risk function that ensures that the
 Company operates within its risk appetite. The risk management function
 attempts to anticipate vulnerabilities at the transaction level or at
 the portfolio level, as appropriate, through quantitative or
 qualitative examination of the embedded risks. The Company continues to
 focus on refining and improving its risk management systems. In
 addition to ensuring compliance with regulatory requirements, the
 Company had developed internal systems for assessing capital
 requirements keeping in view the business objectives.
 
 The Company has identified following main risks for its business, which
 needs to be addressed at this point of time :-
 
 1.  Credit Risk
 
 2.  Market Risk
 
 3.  Liquidity Risk
 
 4.  Operational Risk
 
 The Company has framed the appropriate business policies to tackle the
 challenges of above risks and is continually reviewing and modifying
 these policies in order to face the challenges and come out with the
 help of Company''s business policies.
 
 INTERNAL CONTROL SYSTEMS AND ADEQUACY
 
 DKFL has developed adequate Internal Control Systems in place to ensure
 a smooth functioning of its business. The Control System provides a
 reasonable assurance of recording the transactions of its operations in
 all material aspects and of providing protection against misuse or loss
 of Company''s assets.
 
 The ICS and their adequacy are frequently reviewed and improved and are
 documented.
 
 MATERIAL DEVELOPMENT IN HUMAN RESOURCES
 
 The Company was having staff strength of 5 people during the year under
 review however the Company is recruiting more experienced employees
 during financial year 2011-12. Once the process of new recruitment will
 be over, the Company will be able to comment on this.
 
 PUBLIC DEPOSITS
 
 During the year under review, your Company has not accepted any
 deposits from the public within the meaning of section 58A of the
 Companies Act 1956 and the rules there under.
 
 CAUTIONARY STATEMENT
 
 Statements in the Management Discussions and Analysis describing the
 Company''s objectives, projections, estimates, expectations may be
 forward looking statements. Actual results may differ materially from
 those expressed or implied. Important factors that could make a
 difference to the Company''s performance include economic conditions
 affecting demand / supply and price conditions in the domestic and
 overseas markets in which the Company operates, changes in the
 Government Regulations, tax laws, statues and other incidental factors.
 
 MANAGEMENT
 
 There is no Change in Management of the Company during the year under
 review.
 
 DIRECTORS
 
 In accordance with the requirements of the Companies Act, 1956 and as
 per the provisions of Articles of Association of the Company, Mr. Manav
 Sharma is liable to retire after conclusion of forthcoming Annual
 General Meeting and is eligible, offers himself for re-appointments in
 the forthcoming Annual General Meeting.
 
 Except Mr. Manav Sharma himself, none other Directors are interested in
 their respective re-appointments.
 
 Further, non of the Directors of the Company are disqualified under
 section 274(1)(g) of the Companies Act 1956.
 
 INFORMATION TECHNOLOGY
 
 The Company aims to maintain a scalable computing infrastructure that
 delivers efficient and seamless services across multiple channels for
 customer convenience. In order to retain competitive edge, technology
 infrastructure has been implemented wherever necessary, in alignment
 with business requirements.
 
 COMPLIANCE
 
 The Compliance function of the Company is responsible for independently
 ensuring that operating and business units comply with regulatory and
 internal guidelines. The Compliance Department of the Company is
 continued to play a pivotal role in ensuring implementation of
 compliance functions in accordance with the directives issued by
 regulators, the Company''s Board of Directors and the Company''s
 Compliance Policy. The Audit Committee of the Board reviews the
 performance of the Compliance Department and the status of compliance
 with regulatory/internal guidelines on a periodic basis.
 
 New Instructions/guidelines issued by the regulatory authorities were
 disseminated across the Company to ensure that the business and
 functional units operate within the boundaries set by regulators and
 that compliance risks are suitably monitored and mitigated in course of
 their activities and processes. New products and process launched
 during the year were subjected to scrutiny from the Compliance
 Standpoint and proposals of financial services were screened from risk
 control prospective.
 
 HUMAN RESOURCES
 
 The Company recognizes that its success is deeply embedded in the
 success of its human capital. During 2011-12, the Company continued to
 strengthen its HR processes in line with its objective of creating an
 inspired workforce. The employee engagement initiatives included
 placing greater emphasis on learning and development, launching
 leadership development programme, introducing internal communication,
 providing opportunities to staff to seek inspirational roles through
 internal job postings, streamlining the Performance Management System,
 making the compensation structure more competitive and streamlining the
 performance-link rewards and incentives.
 
 The Company believes that learning is an ongoing process. Towards this
 end, the Company has built a training infrastructure which seeks to
 upgrade skill levels across grades and functions through a combination
 of in-house and external programme.
 
 STATUTORY INFORMATION
 
 The Company being basically in the investment sector, requirement,
 regarding and disclosures of Particulars of conservation of energy and
 technology absorption prescribed by the rule is not applicable to us.
 
 AUDITORS
 
 The Auditors M/s Sanjay Kumar Jindal & Co., Chartered Accountants,
 Jagadhri, Haryana holds the office until the conclusion of ensuing
 Annual General Meeting. Your Company has received certificate from the
 Auditors U/S 224(1B) of the Companies Act, 1956 to the effect that
 their reappointment if made, will be within the limit prescribed.
 
 The shareholders are requested to appoint Auditors and fix their
 remuneration.
 
 COMMENTS ON AUDITOR''S REPORT :
 
 The notes referred to in the Auditor''s Report are self explanatory
 and as such they do not call for any further explanation as required
 under section 217(3) of the Companies Act, 1956.
 
 PARTICULARS OF EMPLOYEES
 
 There were no employees in Company during the year under review.
 
 The information as required by provisions of section 217(2A) of the
 Companies Act, 1956 read with the companies (Particular of employees)
 amendments rules, 1988 is reported to be NIL.
 
 PARTICULARS UNDER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
 
 The Company is having no business other than the business of advisory
 services during the year under review and hence the information
 regarding conservation of energy, Technology Absorption, Adoption and
 innovation, the information required under 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, is reported to be NIL.
 
 The Company has not earned or used foreign exchange earnings/outgoings
 during the year under review.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000
 the Directors confirm that:
 
 1.  In the preparation of the annuals accounts, for the year ended 31st
 March 2012, all the applicable accounting standards prescribed by the
 Institute of Chartered Accountants of India have been followed;
 
 2.  The Directors had adopted 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 and of the profit of the
 Company for that period.
 
 3.  The Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 4.  The Directors had prepared the annual accounts on a going concern
 basis.
 
 REPORT ON CORPORATE GOVERNANCE
 
 The Company is committed to good Corporate Governance. The Company
 respects the rights of its Shareholders to inform on the performance of
 the Company and its endeavor to maximize the long-term value to the
 Shareholders of the Company. As per Clause 49 of the listing Agreement
 of the Stock Exchange, a report on Corporate Governance is set out
 separately, which forms part of this report.
 
 CORPORATE SOCIAL RESPONSIBILITY (CSR)
 
 Corporate Social Responsibility (CSR) is commitment of the Company to
 improve the quality and living standard of the employees and their
 families and also to the community and society at large. The Company
 believes in undertaking business in such a way that it leads to overall
 development of all stake holders and Society.
 
 APPRECIATION
 
 The Board of Directors wishes to convey their appreciation to all the
 Company''s managing body for their performance and continued support.
 The Directors would also like to thank all the Shareholders,
 Consultants, Customers, Vendors, Bankers, Service Providers, and
 Governmental and Statutory Authorities for their continued support.
 
 New Delhi, August 17, 2012                 By order of the Board
 
                                 For DEE KARTAVYA FINANCE LIMITED 
 
 Registered Office :
 
 Kothi No. 1, Pocket No. 52
 
 Chitranjan Park                                     MANAV SHARMA
 
 New Delhi-110 019                                       Chairman