The Directors are pleased to present their 40th Annual Report together
 with the Audited Statement of accounts for the Financial Year ended
 31st March'' 2012.
 
 FINANCIAL RESULTS                       2011-12       2010-11
                                           Rs.            Rs.
 
 Profit before depreciation 
 and interest                          3''673''393      12''365''768
 
 Less: Depreciation                    9''158''733      11''352''684
 
 Interest                              2''077''820       1''763''605
 
 Profit / (Loss) before 
 taxes and deferred                   (7''563''160)       (750''521) 
 tax assets  liabilities
 
 Add: Prior period Income 
 Tax Asst. Year                          272''042             158
 
 Add / (Less): Deferred Tax            3''571''403      (1''247''994)
 
 Less: Provision for Fringe 
 Benefit Tax
 
 Less: Provision for Tax 
 
 Profit / (Loss) after Tax            (3''719''715)     (1''998''357)
 
 Add: Balance brought 
 forward from last year               22''224''360      24''915''417
 
 Distributable Profit                 18''504''645      22''917''060
 
 APPROPRIATIONS
 
 - Proposed Dividend                   400''000         600''000
 
 - Corporate Dividend Tax               61''800          92''700
 
 - Statutory Reserve 
 
 - Balance carried to 
 Balance Sheet                        18''042''845      22''224''360
 
                                      18''504''645      22''917''060
 
 
 
 PERFORMANCE
 
 During the year under report'' the revenue from operations decreased to
 Rs. 674.57 lakhs from Rs. 695.47 lakhs in the previous year. Your
 Directors regret to inform that'' your Company has suffered loss of Rs.
 37.20 lakhs after depreciation and taxes as against loss of Rs. 19.98
 lakhs in the previous year on account of stiff competition from
 multinational and other small scale gas manufacturers.
 
 Your Directors are making various efforts to improve the performance of
 the Company in situation of severe competition and are optimistic about
 posting better results in the ensuing year.
 
 DIVIDEND
 
 Your Directors recommend a dividend of Rs. 1.00 per share.
 
 DIRECTORS’ RESPONSIBILITY STATEMENT
 
 Pursuant to section 217(2AA) of the Companies Act'' 1956'' your Directors
 confirm that:-
 
 a) in the preparation of the annual accounts'' the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 b) the Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the financial year and of the loss of the Company for
 that year;
 
 c) the Directors have 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 the Company and
 for preventing and detecting fraud and other irregularities;
 
 d) the Directors have prepared the annual accounts on a going concern
 basis.
 
 DIRECTORS
 
 Shri Manohar S. Usgaonkar and Shri Nitin Kunkolienkar retire by
 rotation at the forthcoming Annual General Meeting and are eligible for
 re-appointment.
 
 Brief particulars and expertise of these Directors have been given in
 the notes to the Notice of the Annual General Meeting.
 
 All the Directors have filed Form DD-A with the Company as required
 under the Companies (Disqualification of Directors under section 274(1
 (g) of the Companies Act'' 1956) Rules'' 2003.
 
 DELISTING OF SHARES
 
 Your Directors are considering the option to delist the shares of the
 Company from the Stock Exchange. Necessary decision will be taken after
 exploring the impact thereof on the Company and its shareholders.
 
 AUDITORS
 
 M/s S. S. Dalvi & Co.'' Chartered Accountants'' the Auditors of the
 Company retire at the ensuing Annual General Meeting and being eligible
 offer themselves for re-appointment. Since more than 25% of the
 subscribed share capital of the Company is held by Nationalised Banks''
 pursuant to section 224A'' the appointment of Auditors is required to be
 made by a Special Resolution.
 
 COMPLIANCE CERTIFICATE
 
 Secretarial Compliance Certificate pursuant to Section 3 83A (1) of the
 Companies Act'' 1956 is enclosed and marked as Annexure A.
 
 PARTICULARS OF EMPLOYEES
 
 None of the employees of the Company were in receipt of remuneration in
 excess of the limits prescribed under Section 17(2A) of the Companies
 Act'' 1956.
 
 CONSERVATION OF ENERGY'' TECHNOLOGY ABSORPTION'' FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The management continues its focus on energy conservation. Continuous
 monitoring of the fuel consumption'' and the monitoring optimization of
 electrical energy consumption in all activities are being done. The
 Company is making efforts to acquire improved technology at its plant.
 During the year there is no foreign exchange earnings but outgo is on
 account of import of raw material (Ref note no. 34-35).
 
 ACKNOWLEDGEMENT
 
 Your Directors place on record their gratitude to the Government of
 Goa'' Financial Institutions'' Banks'' Statutory Auditors'' and valued
 customers for the continued assistance'' support'' co- operation and
 encouragement they extended to the Company. Your Directors appreciate
 the excellent contribution made by the employees of the Company at all
 levels.
 
                        For and on behalf of the Board of Directors
 
                       (SANJAY A. POY RAITURCAR) 
 
                        CHAIRMAN & MANAGING DIRECTOR
 
 Date: July'' 21'' 2012.
 
 Place: Panaji'' Goa.