The Directors present the SIXTH Annual Report together with the
 Audited Statements of Account for the year ended 31st March, 2011.
 
 FINANCIAL RESULTS
 
                                                     (Rs. in lacs)
 
 Particulars                           Year ended       Year ended
                                        31.3.2011        31.3.2010 
 
 INCOME
 
 Net sales / Income from operations         14893            12305
 
 Other Operating Income (Insurance Claim)       1              192
 
 Other income                                   3                5
 
 Variation in Stock                          (48)            (987)
 
 Total                                      14849            11515 
 
 EXPENDITURE
 
 a) Cost of materials                        8564             6411
 
 b) Staff Cost                               1771             1483
 
 c) Power Cost                               1172             1131
 
 d) Other expenditure                        1475             1373
 
 Total                                      12982            10398
 
 OPERATING PROFIT                            1867             1117
 
 Interest                                     747              760
 
 Profit before depreciation and taxation     1120              357
 
 Depreciation                                 649              678
 
 PROFIT BEFORE TAX                            471            (321)
 
 Provision for current tax (MAT)                —                —
 
 Provision for deferred tax                    90            (103)
 
 PROFIT AFTER TAX                             381            (218)
 
 Transfer from General Reserve                  —              218
 
 Surplus Carried to Balance Sheet             381                —
 
 DIVIDEND
 
 Inspite of improved results, with a view to conserve available
 resources, your Directors regret their inability to recommend dividend
 for the financial year ended 31st March, 2011.
 
 PERFORMANCE REVIEW
 
 Your Directors are glad to report that performance of the Company
 during the year has been impressive, led by strong demand from
 international as well as domestic markets. Your Companys business was
 adversely affected during 2008-09 global financial crisis. However, as
 reported in the previous Directors Report, the Company witnessed
 upswing in consumer demand for textile products from second half of
 Fiscal 2009-10. This was possible as many of the global economies
 progressed commendably, sooner than expected, leading to revival of
 textile industry.
 
 Total revenues of your company for the year increased to Rs.148.93
 crores from Rs.123.05 crores. Operating Profit and Cash Profit improved
 to Rs.18.67 crores and Rs.11.20 crores from Rs.11.17 crores and Rs.3.57
 crores respectively in the previous year. At net level, there was a
 remarkable turn around with Profit before Tax at Rs.4.71 crores as
 against a loss of Rs.3.21 crores in the previous year. The year was
 marked with excessive volatility in cotton prices which peaked to
 historical high owing to shortfall in crop in many of the cotton
 growing countries. However, your managements core competency in
 procurement of cotton helped the Company in judicious and timely buying
 of raw material. As a result, while the cotton cost could be averaged
 out, margins could be improved through yarn prices which remained
 higher in line with cotton prices. The performance could have been
 still better but for loss of production during negotiation of long term
 work load and wages agreement which was concluded with workmen during
 January 2011.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement of 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 and that there are no material
 departures;
 
 (b) appropriate accounting policies have been selected and applied them
 consistently and have made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of your Company at the end of the financial year and of the profit of
 the Company for that period;
 
 (c) proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956, for safeguarding the assets of your Company and
 for preventing and detecting fraud and other irregularities.
 
 (d) The annual accounts have been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS
 STATEMENT
 
 Your Directors affirm their commitments to the Corporate Governance
 standards prescribed by the Securities and Exchange Board of India
 (SEBI).
 
 A Report on Corporate Governance with Management Discussion and
 Analysis as required under Clause 49 of the Listing Agreement is
 attached.
 
 FIXED DEPOSITS
 
 The Company had no unclaimed deposits outstanding as at the close of
 the financial year.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956, and the
 Companys Articles of Association, Shri N.K.  Bafna and Shri Prem
 Malik, Directors, retire from Office by rotation and are eligible for
 re-appointment.
 
 AUDITORS
 
 M/s. M S Jagannathan & Visvanathan, Chartered Accountants, Coimbatore,
 Auditors of the Company will retire at the forthcoming Annual General
 Meeting of the Company and being eligible, offer themselves for
 re-appointment.
 
 PERSONNEL & INDUSTRIAL RELATIONS
 
 Industrial Relations were cordial and satisfactory. There were no
 employees whose particulars are to be given in terms of Section 217
 (2A) of the Companies Act, 1956 read with the Companies (Particulars of
 Employees) Amendment Rules, 2011 dated 31st March, 2011.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The information required under Section 217(1)(e) of the Companies Act,
 1956 read with Rule 2 of the Companies (Disclosure of Particulars in
 the Report of Board of Directors) Rules, 1988, are set out in Annexure,
 attached hereto and forms part of this Report.
 
 ACKNOWLEDGEMENT
 
 Your Directors place on record their gratitude to Central Bank of India
 , State Bank of India, State Bank of Travancore, Bank of India, Axis
 Bank Limited and Export-Import Bank of India and the concerned
 Departments of the State and Central Government, valuable Customers,
 Employees and Shareholders for their assistance, support and
 co-operation to the Company.
 
                                      For and on behalf of the Board
 
                                                         B.K PATODIA
                                                            Chairman
 
 Place : Kochi,
 Date  : 10th May, 2011