The Directors are pleased to present the Twenty Eighth Annual Report
 together with the Audited Statements of Accounts for the year ended
 31st March, 2012.
 
 PARTICULARS                   As at 31-03-2012      As at 31-03-2011
                                   (Rs. in Lacs)         (Rs. in Lacs)
 
 Sales & Other Incomes                 36789.79              35973.12
 
 Gross Profit before 
 Interest  & Depreciation                693.03               1933.46
 
 Less : Interest           1752.21                 1978.00
 
 Depreciation               671.17      2423.38     661.67    2639.67
 
 Profit / (Loss) before
 Tax                                   (1730.35)              (706.21)
 
 Less : Provision for 
 Current Tax                  0.00                    0.00
 
 Provision for Deferred 
 Tax                         24.51                   89.32
 
 Provision for Fringe
 Benefit Tax                  0.00       (24.51)      0.00     (89.32)
 
 Profit / (Loss) after 
 Taxation                              (1754.86)              (795.53)
 
 Add : Adjustments of 
 earlier years                             0.00                 (9.20)
 
                                       (1754.86)              (804.73)
 
 Add : Surplus brought 
 forward from previous 
 years                                 (2199.66)             (1394.93)
 
 Balance carried to 
 Balance Sheet                         (3954.52)             (2199.66)
 
 
 PERFORMANCE DURING THE YEAR :
 
 The turnover of the Company during the year increase by 2.27 % at Rs.
 36789.79 Lacs as compared to Rs. 35973.12 Lacs for the corresponding year
 ended 31st March, 2011. The profit before Interest and Depreciation
 worked out to Rs. 693.03 Lacs as against Profit of Rs. 1933.46 Lacs for the
 year ended 31st March, 2011. The net profit/(Loss) derived by the
 Company is Rs. (1754.86) Lacs.
 
 Your Company has undergone continuous losses due to abnormal increase
 in the price of crude oil, Power cost and adverse market conditions,
 beyond the control of the management. As reported earlier, the Techno
 -Economic Viability Study conducted /Completed in the month of November
 2011 and the same has endorsed the long term viability of the Company
 and our management expect the support of all bankers of the Company for
 the implementation of the scheme for the interest of all stake holders
 of the Company.
 
 REFERENCE TO BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR)
 UNDER SICA :
 
 In view of the accumulated losses exceeding the entire net worth of the
 Company as on 31.03.2012 and pursuant to compliance of Section 15 of
 the Sick Industrial (Special Provision) Act. 1985, reference has been
 filed with the Hon''ble Board for Industrial and Financial
 Reconstruction (BIFR) which reference has been registered vide letter
 no 3(G-3)/BC/ 2012 dated 30th April, 2012.
 
 DIVIDEND:
 
 Due to the loss incurred by the Company during the year 2011- 2012 no
 dividend is recommended for the payment on the Equity Share capital.
 
 FIXED DEPOSITS :
 
 The Company has not accepted any deposit falling within the purview of
 the provisions of the Companies (Acceptance of Deposit) Rules, 1975.
 
 DIRECTORS :
 
 In accordance with Article 145 of the Articles of Association of the
 Company, Shri Mohan N Gupta retire by rotation and being eligible,
 offer themselves for re-appointment. The Board recommends their
 re-appointment.
 
 APPOINTMENT OF STATUTORY AUDITORS :
 
 Statutory Auditors of the Company M/s.R.R.Patchigar & Co. Chartered
 Accountant of Surat will retire at the conclusion of the ensuring
 Annual General Meeting from the office of the Statutory Auditors and
 being eligible offer themselves for re-appointment from the end of the
 ensuring Annual General Meeting till the conclusion of the next Annual
 General Meeting of the Company.
 
 INSURANCE:
 
 The Company has made necessary arrangements for adequately insuring its
 insurable interests in various properties.
 
 ASSESSMENT OF FIRE :
 
 The fire broke out in the finished goods godown in the factory premises
 in the mid night of 29th June, 2008 and major loss occurred. The New
 india Assurance co has repudiated our fire claim vide its letter dated
 09th December, 2009 and in that response and to protest the repudation
 of our genuine claim the company has approached and submitted the
 petition with National Consumer Dispute Redressal Commission , New
 Delhi.on 08th December, 2010 and next hearing has been fixed on 01st
 August, 2012.
 
 PARTICULARS OF EMPLOYEES :
 
 Particulars required by the provisions of Section 217(2A) of the
 companies Act, 1956 read with the companies (Particulars of Employees)
 Rules, 1975 as amended have not been provided since no employee is
 drawing remuneration in excess of prescribed limits as per above
 provisions.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EARNINGS & OUTGO
 :
 
 The particulars prescribed by the companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules, 1988 as to conservation of
 energy, Technology absorption, Foreign Exchange Earnings and outgo are
 furnished in the annexure to this Report.
 
 LISTING ON STOCK EXCHANGE :
 
 The Equity Shares of the Company are listed at Bombay Stock Exchange
 Ltd. (BSE), Mumbai.  DIRECTOR''S RESPONSIBILITY STATEMENT :
 
 As required under Section 217(2AA) of the Companies Act, 1956 your
 Directors state :
 
 (i) that in the preparation of the annual accounts, the applicable
 accounting standards have been followed.
 
 (ii) that the accounting policies selected and applied are consistent
 and the judgments and estimates made are reasonable and prudent so as
 to give a true and fair view of the state&t affairs of the Company at
 the end of the financial year and of the profit or loss of the Company
 for the period.
 
 (iii) that 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
 the Company and for preventing and detecting fraud and other
 irregularities
 
 (iv) that the annual accounts have been prepared on a going concern
 basis.
 
 CORPORATE GOVERNANCE REPORT :
 
 your Company has complied with the Corporate Governance guidelines as
 per Clause 49 of the Listing Agreement with the Stock Exchange.
 
 A report on Corporate Governance and a Certificate from the Statutory
 Auditors of the Company regarding compliance with Corporate Governance
 guidelines as stipulated have been attached by way of separate Section
 as part of this Annual Report.
 
 ACKNOWLEDGEMENTS :
 
 Your Directors wish to express their sincere thanks for the support and
 co-operation extended by the Financial Institution, Commercial Banks,
 Government of India, Government of Gujarat, Government of Union
 Territory of Silvassa (Dadra & Nagar Haveli) Buyers, Suppliers and
 Share Holders for their continued support.
 
 Your Directors also wish to express their thanks for the services
 rendered by the Company''s employees at all levels.
 
                                      For and on behalf of the Board
 
 Date   : 05.06.2012                                            Sd/-
 
 Place  : Surat                                             Chairman