The directors have pleasure in presenting their Fourteenth annual
 report and the audited statement of accounts for the year ended on 31st
 March, 2007 together with the auditors report thereon.
 
 FINANCIAL RESULTS
 
 The summarized financial results for year end 31st March 2006 are as
 under
 
 						    Amount in Rupees
 
 Particulars                                     2006-07      2005-06
 
 Sales and other income                          1101230      5687959
 Total expenditure                              10043396      5650316
 Profit (+) / loss (-) after interest 
 but before depreciation & taxation               968905        37643
 Depreciation                                     897298      1006537
 Taxation                                            000          000
 Net profit (+)/loss (-)                           71607     (968894)
 
 DIVIDEND
 
 In view of inadequate profits directors do not recommend any dividend
 for the year ended 31 st March 2007..
 
 COMPANY PERFORMANCE
 
 The company continued concentration on the activity of sale of fabrics
 The turn over during the year increased form Rs.50.67 Lacs to Rs.
 107.30 Lacs. The company came out of losses and made marginal profit of
 Rs.71,607.00.
 
 MANAGEMENT DISCUSSION AND ANALYSIS.
 
 (a) Industry Structure and Developments :- Company is a Textile Company
 
 (b) Opportunities and Threats :- The textile industry provides ample
 opportunities in domestic and as well as export market However the
 uncertainty of raw material prices and government policies are
 detrimental to growth and profitability .
 
 (c) Segmentwise or productwise Proformance ;- Company operates in
 single segments i.e. Textile.
 
 (d) Outlook :- The Company has viped off major secured loan and
 proposes to install fresh manufacturing facilities.
 
 (e) Risks & Concerns :- .Company do not foresee any such risk in near
 future, which will hamper the activities.
 
 (f) Internal control systems and their adequacy :- Company is in the
 process of implementing various softwares for better control.
 
 (g) Human Resources Mamagement Initiatives:- The management is keenly
 interested this field. All the efforts are made to rationalize its
 manpower and make effective use of the same.
 
 BOARD OF DIRECTORS:
 
 During the year Mr.Chetan Parekh was as directors in meeting of Board
 of Directors held on 11.01.2007.lt is proposed to appoint Mr. Chetan
 Parekh as director at Annual General Meeting.
 
 AUDITORS :
 
 M/s. Adil Aibada and Associates, Chartered Accountants, retire at this
 Annual General Meeting and being eligible offer themselves for
 reappointment. Your Company has received a letter from them to the
 effect that their reappointment, if made, will be in accordance with
 the provisions of Section 224(1B) of the Companies Act, 1956. The Board
 of directors commend their reappointment.
 
 FIXED DEPOSITS:
 
 Your Company has not accepted any deposits from public.
 
 CORPORATE GOVERNANCE:
 
 Certificate of the company secretary regarding compliance of the
 conditions of Corporate Governance as stipulated in clause 49 of the
 Listing Agreement with stock exchange, is enclosed..  
 
 STATUTORY INFORMATION :
 
 (i) Information under section 217 (1) (e) of the Companies Act, 1956
 read with the companies (Disclosure of particulars in the Report of the
 Board of Directors) Rules, 1988:-
 
 A. CONSERVATION OF ENERGY
 
 a) Energy conversation measures taken: None at present
 
 b) Additional investment and proposals, if any, being implemented for
 reduction of consumption of energy: There are no proposals.
 
 c) Impact of measures at (a) & (b) above for reduction of energy
 consumption and consequent impact on the cost of production of goods:
 Does not arise.
 
 d) Total energy consumption and energy consumption per unit of
 production as per FormA to annexure in respect of industries
 specified in the schedule thereto: Not Applicable.
 
 B.  TECHNOLOGY ABSORPTION
 
 Form B
 
 Research & Development (R & D)
 
 1.  Specific area in which R&D carried by the company: None at Present
 
 2.  Benefits derived as a result of the above R&D: Does not arise.
 
 3.  Future plan of action: At present it is not under consideration
 
 4.  Expenditure on R & D: Nil
 
 Technology absorption, adaptation and innovation:
 
 1.  Efforts being made towards technology absorption, adaptation and
 innovation: None
 
 2.  Benefits derived as a result of the above efforts e.g. Product
 improvement cost, reduction, product development, import substitution
 etc. : None
 
 3.  Imported technology : Not applicable as technology has not been
 imported.
 
 C. FOREIGN EXCHANGE EARNING AND OUTGO:
 
 Earning: Rs.Nil Outgo : Rs. NIL
 
 INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH
 THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO
 DATE :
 
 The company do not have any employee drawing salary in excess of limits
 prescribed under section 217 (2a) of the companies act, 1956 read with
 the companies (particulars of employees) rules 1975 the particulars
 should be treated as nil
 
 DIRECTORS RESPONSIBILITY STATEMENT.
 
 Your Directors confirm that:
 
 (i) In the preparation of Annual Accounts, the applicable accounting
 standards had been followed along with proper explanation relating to
 material departures.
 
 (ii) The Directors had 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 end of financial year and of the loss of the
 company for the year.
 
 (iii) The Directors has 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, and
 
 (iv) The Directors had prepared the accounts on going concern basis.
 
 INDUSTRIAL RELATIONS:
 
 The industrial relations continued to be cordial during the year under
 review.
 
 ACKNOWLEDGMENT:
 
 The Directors express their sincere thanks to the employees, customers,
 suppliers, companys bankers and members of the company for their
 continued support.
 
 Place : Silvassa                  By Order of the Board of Directors
 
 						    SHAILESH J. PAREKH
 Date :-26.06.2007,                CHETAN S. PAREKH
 						    Directors