Dear Members,
 
 The Directors are pleased to present the 19th Annual Report together
 with the audited Balance Sheet, Profit and Loss Account and Auditors
 Report for the year ended 31st March 2012.
 
 FINANCIAL RESULTS
 
                                                Rs. In Lakhs
 
                                         2011-2012       2010-11
 
 Other Income                                NIL           NIL 
 
 (Interest on Term Loan Written back)
 
 Total Expenditure                          0.61          0.27
 
 Gross Profit before interest And 
 depreciation                              (0.61)        (0.27)
 
 Depreciation                                NIL           NIL
 
 Net Loss                                  (0.61)        (0.27)
 
 Financial Review
 
 As there was no new business done during the year, there was no income
 from the operations.
 
 Operations Review
 
 As you are kindly aware that the Knitted Socks meet the basic
 necessities of all ages and the income strata is Knitted Socks.
 Socio-economic changes and fashion awareness amongst the masses have
 brought in a sea change in the living styles in India. The use of socks
 by the armed forces fighting in high altitude and in adverse climatic
 conditions has now been finding its ways among executives and school
 children. Wearing of any kind of shoes without socks is termed as
 incomplete. Our unit has been established for the production of Knitted
 Socks with an annual installed capacity of 5.00 lakh Decca pairs per
 annum with a product mix including Comfort, Travel, Support, Running,
 Jogging, walking or simply trotting to meet the needs of people with
 lifestyle-related afflictions.  The Knitted Socks Products are
 manufactured with Korean State-of-Art Technology to meet the worldwide
 requirement. The Machinery employed is imported from renowned
 Manufacturers of Korea. The net-worth was eroded and consequently it
 was declared a sick industrial company by the Honble Board for
 Industrial and Financial Reconstruction (for short BIFR) u/s 3(1)(o)
 of the Sick Industrial Companies (Special Provisions) Act, 1985 on
 20.02.2001 in Reference Case No222/2000. In the said proceedings, SBH
 was originally appointed as the Operating Agency (OA) u/s 17(3) of
 SICA. However, the Honble Board after having satisfied that the OA had
 acted with a biased attitude appointed BOB on 4.3.2003 as the OA u/s.17
 (3) of the Act to review and formulate the revised DRS of the Company.
 The unit is not operational since May 2002 for want of Working Capital
 support.
 
 Revival Efforts
 
 Your Directors succeeded in identifying a potential Investor for
 infusion of funds to revive the unit with buy back arrangement of the
 entire production. The Company is having two Secured creditors being
 Bank of Baroda and State Bank of Hyderabad The Company had also reached
 a compromised OTS with Bank of Baroda on 03.09.2007 towards full &
 final settlement of dues and had arranged down payment of Rs.30 Lakhs
 on 09.06.2008. The Company had also reached a compromised OTS with
 Assignment holders of State Bank of Hyderabad and issues related to the
 Charged Documents are yet to be settled. The investors as they are keen
 to revive the unit and have called on both IARC and ASREC along with
 the MD of the Company and requested to sort out the issues related to
 the Charged Documents. They were also appraised on the present
 political agitated situation on Telangana and the proposal of One Time
 Settlement is under the consideration by them. Meanwhile IARC had
 invoked the SARFACEI Act and the Honble AAIFR had passed orders that
 are arbitrary, illegal and contrary to the provisions of the SICA as
 amended by the SARFAESI Act. Aggrieved by these illegal acts, the
 Company had filed a Writ Petition before the Honble AP High Court to
 set aside the same and restore the reference to the BIFR and the same
 was stayed.
 
 Future Prospects
 
 The demand for the socks has been increasing gradually for the last few
 decades particularly in India and other developing countries. The
 largest consumer of socks is the Europeans and Western countries who
 have been using this item as part of their dresses for a very long
 period. The European and Western countries have been producing socks,
 from where these items used to be imported into India and other
 countries. The socks industry has a very bright future as its demand
 both in India and abroad has increased substantially. In fact, the
 Hosiery Knitwear Sector is zooming with the new EXIM Policy and
 increase in demand from US markets. The Vision Statement has projected
 an increase in the size of the industry from USD 36 billion in 2002 to
 USD 100 billion by 2012 and that exports will reach a level of at least
 USD 50 billion by 2010. The increases in exports and the size of the
 industry are projected to boost employment opportunities in the
 industry and provide 12 million additional jobs. In view of this the
 Company is confident of serving new markets with higher profitability
 on its revival
 
 Public Deposits:
 
 Your Company has not accepted deposits from the public during the year
 under review and there are no outstanding deposits as on 31st March
 2012.
 
 Personnel:
 
 There are no employees drawing remuneration as provided in section 217
 (2A) of the Companies Act, 1956 whose particulars forming part of this
 report is to be annexed.
 
 Directors:
 
 Sri. S. Rahmatullah had resigned in August 2012 due to personal reasons
 and in his place Shri Neelam Sri Ramulu is appointed by resolution of
 the directors at the Board Meeting held on today i.e. 14thAugust.2012.
 Shri Neelam Sri Ramulu is an Electrical Engineer with more than 30
 years experience in the Industrial Engineering and possesses relevant
 expertise and experience;. The said resignation of Sri S Rahmatullah
 and the appointment of Shri Neelam Sri Ramulu are being notified to the
 ROC, Hyderabad. The Board of Directors are acknowledging and expressing
 their appreciation for Sri S Rahmatullahs contributions during his
 tenure on the Company''s Board of Directors while welcoming Shri Neelam
 Sri Ramulu as an Independent Director in his place.
 
 Auditors
 
 M/s C. Ramachandram & Co., Chartered Accountants retire at the
 conclusion of the ensuing Annual General Meeting and are eligible for
 reappointment.
 
 Audit Committee
 
 The Audit committee consists of two independent Directors viz., Sri.
 AMAR SINGH RATHOD, Sri. And S.  Rahmatullah. The Audit committee met
 four times during the year and recommended the accounts for approval by
 the Board.
 
 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:
 
 1) 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 departure;
 
 2) 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
 loss of the company for the year under review.
 
 3) 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.
 
 4) That the Directors have prepared the accounts for the financial year
 ended 31st March 2012 on a going concern basis.
 
 Listing
 
 The shares of the company are listed on Hyderabad, Madras and Bombay
 Stock Exchanges. The Listing fee to Bombay Stock Exchange from 2001-02,
 the Hyderabad Exchange from 2000-01 and Madras Stock Exchange from
 1997-98 is outstanding.
 
 Conservation of Energy, Technology Absorption, Foreign Exchange:
 
 Particulars required to be disclosed under the Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules 1988 are annexed
 hereto.
 
 Corporate Governance:
 
 The report on Corporate Governance is enclosed as an Annexure to this
 report.
 
 Acknowledgements:
 
 Your Directors wish to place on record their appreciation for the
 valuable support and cooperation extended by State Bank of Hyderabad,
 Bank of Baroda and other Central and State Government Agencies. Your
 directors also wish to place on record their sincere appreciation to
 the shareholders for their continued confidence, patronage and support
 to the management of the Company.
 
                                        For and on behalf of the board
 
 Place: Hyderabad                                         S.S.R.KISHEN
 
 Date: 14.08.2012                       Chairman and Managing Director