The Directors Have pleasure in presenting to you the 20th Annual
 Report together with the Audited Statement of Accounts of the Company
 for the financial year ended 31st March, 2012.
 
 FINANCIAL RESULTS
 
                                                   (Rs. In Lacs)
 
                                               As on         As on
                                             31.03.2012    31.03.2011
 
 Sales & other Income                          826.28         368.66
 
 Profit before Depreciation, Int. & Tax        378.74          69.84
 
 Depreciation                                   32.93          25.39
 
 Interest                                      198.00         147.06
 
 Profit before Tax                             147.81        (164.69)
 
 Provision for Taxation                         16.65          62.08
 
 Profit After Tax                              131.16        (226.77)
 
 Share Capital                                1390.22        1390.22
 
 Reserve & Surplus                            4696.69        4565.53
 
 DIVIDEND
 
 During the year under review the company has earned profit but no
 dividend is recommended by the Board.
 
 OPERATIONAL REVIEW
 
 During the year under review the Company has earned profit of Rs.
 131.16 Lacs as against previous year losses of Rs. 226.77 Lacs, the
 same is due to good sales and better marketing of company projects
 besides there is substantial increased in sales figures compare to
 previous year, your Company able to generate profit. Further the
 construction sector is doing reasonable well, the same is additional
 factor for current year. However, the management is confident in
 achieving better result in coming financial year.
 
 DIRECTORS
 
 Shri Kishan Kumar Kedia and Shri Santosh Ginoria, Directors are retire
 at the ensuing annual general meeting and offers themselves for
 re-appointment. You are requested to reappoint them.
 
 FIXED DEPOSITS
 
 Your Company has not accepted any fixed deposit during the year under
 review which falls under the definition of Section 58 A of the
 Companies Act, 1956.
 
 CORPORATE GOVERNANCE
 
 A separate section on Corporate Governance is included in the Annual
 Report and the certificates from the Company''s Auditors confirming the
 compliances of conditions on Corporate Governance as stipulated in
 Listing Agreement is annexed thereto.
 
 The Management discussion and analysis and the compliance of corporate
 governance are annexed to this report.
 
 AUDITORS
 
 The Auditors M/s Shankarlal Jain & Associates, Chartered Accountants,
 retire at the ensuing Annual General Meeting and are eligible offer
 themselves for reappointment. You are requested to consider their
 reappointment for the next financial year and fix their remuneration.
 
 The Specific notes forming part of the Accounts referred to in the
 Auditors'' Report are self- explanatory and do not require any further
 elucidation.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Your Director make the following statement to Section 217 (2AA) of the
 Companies Act, 1956:
 
 i. that in the preparation of Annual Accounts, the applicable
 accounting standards had been followed along with the proper
 explanation relating to material departures if any, further there is a
 change in accounting policy in relation with recognition of sales as
 well as income.
 
 ii. that the Directors had selected such accounting policies and
 applied them consistently and made judgements 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 at the end of the Financial year and of
 the Profit & Loss of the Company for that period.
 
 iii. that the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act so to prevent and detect fraud and other
 irregularities.
 
 iv. that the Directors had prepared the accounts on a going concern
 basis.
 
 LISTING FEES
 
 The Company confirms that the Annual Listing Fees due to Bombay Stock
 Exchange Ltd., Mumbai Jaipur Stock Exchange, Jaipur for the Financial
 Year 2012-2013 has been paid, further during the year company has
 de-listed its securities form Ahmedabad Stock Exchange, Ahmedabad
 during the year, hence listing fees for current year is not applicable
 to Ahmedabad Stock Exchange.
 
 CUSTODIAN CHARGES
 
 The Company confirms that the Custodian Charges due to the National
 Securities Depository Ltd., and Central Depository Services (India)
 Ltd. have been paid for the financial year 2012-13 as applicable and
 payable as per the SEBI circular in this regard.
 
 STATUTORY DISCLOSURES
 
 A) Particulars of the employees of the Company pursuant to Section 217
 (2A) of the Companies Act, 1956 is not required to be given as none of
 the employees of the Company drawn remuneration in excess of amount
 prescribed in the section.
 
 B) Particulars required to be furnished by the Companies (Disclosure of
 particulars in the Report of Board of Directors) Rules, 1988:
 
 i) Part A and Part B relating to Conversion of Energy and technology
 Absorption are not applicable to the Company as your Company is not a
 manufacturing Company.
 
 ii) Foreign Exchange Earning and Outgo :- The Company has incurred Rs.
 2,36,977- towards the foreign traveling expenses during the year under
 review.
 
 DELISTING OF SECURITIES
 
 During the year under review Company has applied for voluntary
 delisting of its securities from Ahmedabad Stock Exchange and Jaipur
 Stock Exchange, in this regard compay has received the approval from
 Ahmedabad Stock Exchange, however approval from Jaipur Stock Exchange
 is awaiting at any movement.
 
 ACKNOWLEDGEMENT
 
 Your Directors thanks the banks, financial institutions for their
 valuable and timely financial assistance and support provided to the
 Company. Your Directors also thanks to the customers, suppliers,
 Government Institutions and others for the co-operation extended to the
 Company. The Board also places on record its appreciation for the
 assistance and co-operation received from staff and you the
 shareholders.
 
                                 For and on behalf of the Board of 
 
                                 Garnet Construction Limited
 
 Place : Mumbai                        Kishan Kumar Kedia
 
 Dated: 20th August, 2012        Chairman & Managing Director