Dear Members,
 
 The Directors present herewith the 18th Annual Report on the business
 and operations of the Company and the audited accounts for the year
 ended 31st March 2012.
 
 1 . FINANCIAL RESULTS AND OPERATIONS
 
 The summarized financial results for the year ended 31st March 2012 as
 compared with the previous year are as under:
 
                                                        Rs. In Lakhs.  
 
 S.
 No  Particulars                             Year ended   Year ended
                                             31.03.2012   31.03.2011
 
 1.  Sales                                       129.55       139.68
 
 2.  Other Income                                  3.34         9.24
 
 3.  TOTAL INCOME (1 2)                           132.89      148.92
 
 4.  Total Expenses other than interest          (108.65)    (115.32)
 
 5.  Interest                                       0.20        1.29
 
 6.  Total Expenses other than Depreciation       108.85      114.02
 
 7.  Depreciation                                  75.77       75.53
 
 8.  Miscellaneous Expenditure Written off          0.00        0.00
 
 9.  Profit/(Loss) for the before tax             (51.33)     (40.63)
 
 10. Provision for tax:
 
     MAT                                            0.00        0.00
 
     Deferred Tax (Liability)/Asset                17.39       16.66 
 
 11. Profit/(Loss) for the year after tax         (33.94)     (23.97)
 
 The operational performance of the Company is discussed in detail under
 the Management Analysis and Discussion Report.
 
 2.  RESERVES:
 
 The company has not transferred any amount to reserves during the
 financial year under review.
 
 3.  DEPOSITS
 
 The Company has not accepted any fixed deposits from the public within
 the meaning of section 58A of the Companies Act, 1956.
 
 4.  INFORMATION PURSUANT TO THE COMPANIES DISCLOSURE OF (PARTICULARS IN
 THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988.  CONSERVATION OF
 ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO
 (pursuant to sec 21 7(1 )(e)).
 
 A.  Conservation of energy:
 
 Adequate measures have been taken for conservation of energy. There is
 no additional investment and proposal for reduction of energy
 conservation. As there is no additional investment, there is no impact
 on the business of the company
 
 B.  Technology Absorption
 
 i) Research & Development (R&D)
 
 a) Specific areas in which R&D carried out by the company
 
 For having the modern design, patterns and styles and improving the
 quality of the products and to have unique, royal and classic designs,
 the company is constantly carrying out research. The Company has
 developed new Yarn Structure which increases the quality in terms of
 life of Carpet.
 
 b) Benefits derived as a result of R&D
 
 The most impressive designs with highest standard in quality meeting
 the present market demand have emerged out of research carried out by
 the Company. The new Yarn has been greatlyt accepted in the market.
 
 c) Future plan of action
 
 The quality designs of carpets have to to be improved with a view to
 have unique features, pattern and design.
 
 Expenditure on R & D: The Company has not made any expenditure on R& D.
 
 ii) Technology absorption, adoption and innovation.
 
 During the year the company has neither absorbed any new Technology nor
 adopted or innovated, as the existing technology is sufficient to meet
 the present market requirements.
 
 5.  FOREIGN EXCHANGE EARNINGS AND OUT GO:
 
 Foreign Exchange Earnings : 3.51 Lakhs
 
 Foreign Exchange out go : 17.84 Lakhs
 
 6.  PARTICULARS OF EMPLOYEES
 
 No employee of the Company was in receipt of remuneration, which
 requires disclosure under section 21 7(2A) of the Companies Act, 1 956.
 
 7.  DIRECTORS
 
 In accordance with the requirements of the Companies Act 1956, read
 with the Articles of Association of the company Smt. Meena Kerur shall
 retire by rotation at this Annual General Meeting, and being eligible
 offer herself for reappointment. A brief resume of the retiring
 director as required under clause 49 of the Listing Agreement is
 provided in this Annual Report.
 
 Shri. S. Naik, Managing Director, of the company was appointed for
 further period of 3 years and the same requires ratification of members
 in this Annual General Meeting.
 
 8.  AUDITORS AND AUDIT REPORT
 
 The Statutory Auditors of the company M/s Ramasamy Koteshwararao & Co,
 Chartered Accountants, Hyderabad Firm Regd. No. 010396S, retire at the
 ensuing Annual General Meeting and are eligible for re -appointment.
 
 Your company has received intimation to the effect that, proposed
 re-appointment, if made would be with in the prescribed limit under
 Section 224(1 B) of the Companies Act 1956 and also in compliance with
 the requirements of the Listing Agreement regarding Peer Review. They
 have also confirmed their willingness to accept office, if
 re-appointed. The Board and Audit Committee recommend the re-
 appointment of M/s Ramasamy Koteshwararao & Co, Chartered Accountants,
 Hyderabad, as Statutory Auditors to hold office till conclusion of Next
 Annual General Meeting.
 
 The Auditors Report and notes to the accounts are self explanatory and
 do not call for any further comments.
 
 9.  DIRECTOR''S RESPONSIBILITY STATEMENT
 
 In accordance with sub-section (2AA) of section 21 7 of the Companies
 Act, 1956, the Directors of the Company state:
 
 a.  That in the preparation of the accounts for the financial year
 ended 3151 March 2012; the applicable accounting standards have been
 followed along with proper explanation relating to material departures.
 
 b.  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.
 
 c.  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 safe guarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities.
 
 d.  That the Directors have prepared the accounts for the financial
 year ended 31st March 2012 on a ''going concern basis''.
 
 10.  MANAGEMENT DISCUSSION & ANALYSIS REPORT
 
 A separate report on Management Discussion & Analysis Report is
 attached to this report.
 
 11.  CORPORATE GOVERNANCE REPORT
 
 A separate report on corporate governance along with Auditor''s
 certificate on its compliance is attached to this report.
 
 12.  CASH FLOW STATEMENT
 
 In conformity with the provisions of Clause 32 of the Listing Agreement
 with the Stock Exchanges, the cash flow statement for the year ended
 March 31, 2012 is annexes hereto.
 
 13.  AUDIT COMMITTEE
 
 In accordance with Clause 49 of the Listing Agreement, the company has
 constituted the Audit Committee, which consists of Majority of
 Independent Directors and Non Executive Directors of the company Viz.
 Mr.K.Suresh, Smt. Meena Kerur and Mr.Maqsood Ahmed. The Audit committee
 functions in terms of the role and powers delegated by the Board of
 Directors keeping in view of the Provisions of Clause 49 of Listing
 Agreement and Section 292Aof the Companies Act 1 956.
 
 14.  HUMAN RESOURCE
 
 The Board of Directors would like to place on record its deep
 appreciation to all the employees for their dedicated services to the
 company. Our organizational culture and work environment is central to
 our ability to work effectively.
 
 Company has taken initiative to appoint Qualified Company Secretary to
 comply with the provision of Section 383A of the companies Act, Listing
 Agreement. The Efforts of the company was not fruitful, however company
 is availing the services from Practicing Company Secretary.
 
 15.  ACKNOWLEDGEMENT
 
 Your Directors take this opportunity to express their appreciation for
 the cooperation and continued support received from various departments
 of Central and State Governments, financial institutions, Banks, the
 Suppliers, Customers and Shareholders of the Company.
 
                              By order of the Board of Directors 
 
                                               Sd/-
 
 Place: Hyderabad                     SRI KRISHNA NAIK
 
 Date: 06-08-2012            Chairman & Managing Director