The Directors have pleasure in presenting their twentieth Annual
 Report on the business operations and activities of the Company
 together with the audited accounts for the Financial year ended 31st
 March 2012.
 
 Summarised Financial Results:
 
                                                          (Rs.in lacs)
 
 Particulars                                  Year ended   Year ended
                                              31.3.2012    31.3.2011
 
 Income from operations                         4522.22      5103.77
 
 Operating Profit                                573.41       773.64
 
 Less: Interest                                   75.16       108.56
 
 Less: Depreciation                              478.06       466.57
 
 Profit before tax                                20.19       198.51 
 
 Less: Provision for tax                          76.73       123.61
 
                                                 (56.54)       74.90
 
 Profit after tax                                  0.00         0.00
 
 Add: Deferred tax Assests                        72.26        63.48
 
 Add: Income Tax for earlier year                  0.16         4.56
 
 Net Profit for the year                          15.88       142.94
 
 Add: Balance brought forward                   1558.78      1415.84
 
 Balance carried to balance sheet               1574.66      1558.78
 
 Operations:
 
 For the financial year ended 31st March 2012 the Revenue from operation
 of the Company decreased marginally to Rs 4522..22 Lacs as compared to
 Rs.5103.77 Lacs in Previous Year. The Net Profit of the Company for the
 year under review is of Rs. 15.88 Lacs as compared to previous year Net
 Profit of Rs. 142.94 Lacs.
 
 Future Outlook
 
 The Future of Indian Textile Industry is looking really bright. Your
 Directors are planning to boost the Ready Fabric sales of your Company
 with a Brand Name of Dhanlaxmi fabrics in local as well as export
 market. Steps has already been taken to strengthen the Marketing cell.
 The Export of Ready Fabrics worth Rs.63.27 lacs has already been done
 in the year under review.
 
 Dividend
 
 With a view to conserve resources the Board does not recommend any
 dividend for the year 2011-2012.
 
 Directors
 
 In accordance with the provisions of the Companies Act 1956 and the
 Articles Of Association of the Company, Shri Mahesh S. Jhawar and Shri
 Mihir Mehta - Directors of the Company are liable to retire by rotation
 and being eligible offer themselves for re-appointment at Annual
 General Meeting. Your Directors recommend their re-appointment.
 
 Brief profile of the Director''s proposed to be re-appointed is
 annexed to the Notice of the ensuring Annual General Meeting.
 
 Directors Responsibility Statement
 
 Pursuant to the requirement under section 217(2AA) of the Companies
 Act, 1956, with respect to Directors'' Responsibility Statement, it is
 hereby confirmed:
 
 (i) That in the preparation of the accounts for the financial year
 ended 31st March, 2012, the applicable accounting standards have been
 followed along with proper explanation relating to material departures;
 
 (ii) That the Directors have selected such accounting policies and
 applied them consistently and made judgments and estimates that were
 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 the year under review;
 
 (iii) That the 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;
 
 (iv) That the Directors have prepared the accounts for the financial
 year ended 31st March 2012 on a ''going concern'' basis.
 
 Auditors
 
 The retiring Auditors M/s .S. G. Kabra & Co., Chartered Accountants,
 Mumbai, have been appointed to hold office till the conclusion of the
 next Annual General Meeting. They have furnished a certificate to the
 effect that the proposed re-appointment, is in accordance with the
 limits specified U/s. 224(1 B) of the Companies Act, 1956.
 
 Auditors Report
 
 The Auditors have not made any qualification to the financial
 statement, in their reports or relevant notes on accounts, which are
 self explanatory and do not call for any comments under section 217 (3)
 of the Companies Act, 1956.
 
 Fixed Deposit
 
 As on 31.03.2012 the Company held no deposit in any form from anyone.
 There was no deposit held by the Company as on 31.03.2012 which was
 overdue or unclaimed by the depositors. For the present the broad of
 directors have resolved not to accept any deposits from public,
 shareholders and others.
 
 Coprporate Governance
 
 A Report on Corporate Governance together with a Management Discussion
 and Analysis report along with a Certificate from Mr.Ramesh Chandra
 Mishra, Company Secretary in practice, regarding compliance of
 requirements of Corporate Governance pursuant to clause 49 of the
 Listing Agreement with the Stock Exchange are annexed hereto.
 
 Particulars As Per Section 217 (2a) Of Companies Act, 1956:
 
 During the year under review, none of the employees of the Company was
 in receipt of remuneration aggregating Rs.  24,00,000/- or more per
 annum, if employed throughout the year, or Rs. 2,00,000/- or more per
 month, in case employed for part of the year. Hence, there are no
 particulars to be annexed to this report as required under section 217
 (2A) of the Companies Act, 1956 and the rules made there under.
 
 Subsidiaries
 
 The Balance Sheet as at 31st March, 2012 and the Statement of Profit &
 Loss for the year ended on that date along with the Directors'' and
 Auditors'' Report and Statement Pursuant to Section 212 of the
 Companies Act, 1956 relating to Western Chlorides & Chemicals Pvt.
 Ltd., Dhanesh Fabrics Pvt. Ltd.,DLF Fabrics Private Limited
 Subsidiaries of the Company are attached to this report and shall be
 treated as forming part of the report.
 
 Conservation Of Energy, Technology Absorption And Foreign Exchange
 Earnings And Outgo
 
 Particulars as require under Section 217 (1)(e) of the Companies Act
 1956 read with the Companies (Disclosure of particulars in the Report
 of the Board of Directors) Rules 1988 are given in Annexure-1 to this
 report.
 
 Acknowledgements
 
 The Directors place on record their appreciation for co-operation and
 support extended by the Government, Banks, Shareholders, and customers
 for their continued support extended to the company at all times.
 
 The Directors further express their deep appreciation to all employees
 for commendable teamwork, high degree of professionalism and
 enthusiastic effort displayed by them during the year
 
                                   For and on behalf of the Board
 
 Place: Mumbai
 
 Date: 30th May 2012                       Ramautar S. Jhawar
 
                                                 Chairman