The directors have pleasure in presenting Twenty Seventh Annual Report
 on the business and operations of the Company together with the Audited
 Statement of Accounts for the year ended 31st March, 2012.
 
 OPERATIONAL PERFORMANCE
 
 The operational performance of the Company for the period under review
 is as below: -
 
                                         Year ended        Year ended 
                                         31.03.2012        31.03.2011 
                                      (Rs. in lacs)     (Rs. in lacs)
 
 Gross Sales and
 
 other Income                               7279.44           6163.87
 
 Profit before Interest
 
 &    Depreciation                           467.12            325.56
 
 Interest and
 
 Financial Charges                            24.58             22.70
 
 Depreciation                                 87.47             69.21
 
 Net Profit for the year                     355.07            233.65
 
 Provision for Income tax
 
 (Current)                                   115.86             76.20
 
 Balance carried from
 
 previous year                               677.70            611.59
 
 Profit available for
 
 appropriation                               916.91            768.16
 
 Provision for dividend &
 
 Dividend distribution tax                    43.00             40.46
 
 Transfer to
 
 General Reserve                              50.00             50.00
 
 Balance carried to
 
 Balance sheet                               823.91            677.70
 
 The sales performance of the Company has shown improvement over the
 last year. The cost effective measures have also contributed to the
 improved performance in terms of profitability, inspite of significant
 increase in the cost of raw materials.
 
 DIVIDEND
 
 Your directors are pleased to recommend a dividend of 5 % (Re. 0.50 per
 share) absorbing a sum of Rs 37.00 Lacs. The dividend will be paid to
 all shareholders whose names appear in the Register of Members as on
 the book closure date.
 
 EXPORT
 
 Your company has chalked out a plan to grow in the export market. This
 segment of the business is expected to grow at a faster rate, in the
 coming years.
 
 EXPANSION
 
 Company is in the process of expanding its capacity and is also
 entering into allied business. The Company had already taken steps for
 the purpose of expansion and diversification and for this funds have
 been arranged through internal sources.
 
 DIRECTORS
 
 Mr. J.C. Kapur and Mr. Nirmal Lunia, Directors are liable to retire by
 rotation at the ensuing Annual General Meeting and being eligible offer
 themselves for the re- appointment. The Board of Directors recommends
 their re-appointment.
 
 CORPORATE GOVERNANCE
 
 Report on Corporate Governance is enclosed and is forming part of the
 Directors'' Report. A certificate from the Statutory Auditors of the
 Company regarding Compliance of the conditions of the Corporate
 Governance is attached to this report.
 
 FIXED DEPOSITS
 
 Company has not accepted any deposits within the meaning of Section 58A
 and 58AA of the Companies Act, 1956 and the rules made there under.
 
 DIRECTOR''S RESPONSIBILITY STATEMENT
 
 In terms of provisions of Section 217(2AA) of the Companies Act, 1956
 your directors confirm that: - (I) in the preparation of the annual
 accounts, the applicable accounting standards had been followed along
 with proper explanation relating to material departures;
 
 (ii) the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that they are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of your Company at the end of financial year and of the
 profit of your Company for that period;
 
 (iii) 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 your Company and
 for preventing and detecting fraud and other irregularities;
 
 (iv) the Directors had prepared the annual accounts on a going concern
 basis.
 
 CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE
 
 Details of Conservation of Energy and Technology Absorption under
 provisions of 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 are given as Annexure to this report.
 
 Foreign Exchange earning was 68.21 Lacs and the outgo was Rs.127.06
 Lacs during the Year.
 
 AUDITORS
 
 M/s ABN & Co. Chartered Accountants, Indore being Statutory Auditors of
 the Company are liable to retire by rotation at the ensuing Annual
 General Meeting and who being eligible offer themselves for
 re-appointment. The Board recommends their re-appointment.
 
 AUDITOR''S REPORT
 
 Report of the Auditors and their observations on the Accounts of the
 Company for the year under review is attached herewith.
 
 PARTICULARS OF EMPLOYEES
 
 There is no information to be given in terms of section 217 (2A) of the
 Companies Act, 1956 read with the rules framed there under.
 
 ACKNOWLEDGMENT
 
 The Directors thank the customers, vendors, investors, business
 associates and bankers for their support to the Company.
 
 The Directors also thank the Government of India, the Concerned State
 Governments and other Government Departments and Government Agencies
 for their cooperation.
 
                                         FOR AND ON BEHALF OF THE BOARD 
                                                  HARSH VORA 
                                               MANAGING DIRECTOR 
                                               VASUDEO S. BHATE 
                                              TECHNICAL DIRECTOR 
 PLACE: INDORE
 
 DATE : 11th August, 2012