ANNUAL REPORT 2005-2006
 
 DIRECTOR'S REPORT
 
 Dear Members,
 
 Your  Directors have pleasure in presenting the 16th Annual Report  together 
 with  Audited  Accounts of the Company for the financial  year  ended  31st 
 March, 2006.
 
 1. FINANCIAL RESULT:
 
 The  financial results of your Company for the year ended 31st March,  2006 
 is summarized below:
 
                                                               (Rs. in Lacs)
 
 	                                          2005-06	  2004-2005
 Profit before Financial 
 Expenses And Depreciation	                   278.03	     121.06
 
 Less: Financial Expenses	                   299.24	     394.54
 
 Profit/Loss after Financial Expenses	        (-) 21.21	 (-) 273.47
 
 Less: Depreciation	                           280.57	     254.73
 
 Profit / Loss after Depreciation	       (-) 301.77	 (-) 528.21
 
 Provision for Tax
 
 Prior period adjustments	                     2.90	      11.75
 
 Provision of Fringe Benefit Tax	                     3.40                 -
 
 Deferred tax adjustments	                        -                 -
 
 Profit/Loss after Tax	                       (-) 308.07	 (-) 539.98
 
 2. FINANCIAL REVIEW AND OPERATION:
 
 Production and Sales review
 
 During  the year, Your Company has made production of 3948097  Kgs.  Cotton 
 hosiery  yarn of various counts and recorded a gross turnover of  Rs  40.38 
 crores as compared to Rs 38.42 crores in the previous year.
 
 Export
 
 During  the  year under review, the Company has made a Export  Turnover  of 
 Rs 11.37 Crores as compared to Rs. 16.93 Crores in the previous year.