Hanung Toys and Textiles

The Directors are pleased to present the 18th Annual Report together
 with the Audited Accounts of your Company for the financial year ended
 on 31st March 2008.
 
 FINANCIAL RESULTS :
 
                                               (Rs. in Lakh)
 
 Particulars                               2007-2008      2006-2007
 
 Gross Revenue                                50728           28111
 
 Profit before Interest, Depreciation & Tax    9171            5238
 
 Less: Depreciation                             511             297
 
 Less: Interest                                1103             813
 
 Profit before Tax                             7557            4128
 
 Less: Prior Year Adjustment                      4               7
 
 Less: Provisions For Taxation                 1479            1341
 
 Profit After Taxation (PAT)                   6074            2780
 
 WORKING PERFORMANCE
 
 The gross sales and other income for the financial year under review
 were Rs. 50728 lakhs as against Rs. 28111 lakhs for the previous
 financial year registering an increase of 80%. The Profit before tax
 (after interest and depreciation charges) of Rs. 7557 lakhs and Profit
 after tax of Rs. 6074 lakhs for the financial year under review as
 again Rs.  4128 lakhs and Rs. 2780 lakhs respectively for the previous
 financial year, improved by 83% and 118% respectively.
 
 Better Capacity Utilization, efficiency and aggressive marketing of
 value added products has taken your company to these new heights.
 
 
 During the year, The Company has signed the MOU with a Chinese Company
 to buy latters soft toy business in China. The Company is at advanced
 stage of signing definitive agreement with Chinese Company. The Company
 is about to sign MOU with one of the U.S. Companies for buying majority
 stake in it.
 
 DIVIDEND
 
 The Directors recommend payment of final dividend @ 15% on the equity
 shares for the year under review.
 
 EXPANSION PLAN & NEW PROJECT
 
 During the year, the Company has bagged the long term export order from
 a leading US buyer in Home Furnishings as well as soft toys.
 
 During the year, the Company has started production in its new home
 textiles unit at Roorkee. The Roorkee unit has various tax benefits &
 accordingly higher capacity utilization of this unit will further boost
 the profitability of the Company in the coming years.
 
 SHIFTING OF REGISTERED OFFICE
 
 During the year, the Company decided to change the Registered Office
 from State of Delhi to State of Uttar Pradesh.  For this purpose the
 special resolution was passed by the shareholders through postal
 ballot. However, Board of Directors had decided not to shift the
 Registered Office from State of Delhi to State of Uttar Pradesh.
 
 REPORT ON CORPORATE GOVERNANCE
 
 A detailed report on Corporate Governance is given as per annexure to
 this Report.  
 
 DIRECTORSRESPONSIBILITY STATEMENT
 
 Pursuant to the requirements of section 217(2AA) of the Companies Act,
 1956, It is hereby confirmed:
 
 - That in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures.
 
 - 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 profit or
 loss of the Company for the period under review.
 
 - That 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:
 
 - That the Directors have prepared the annual accounts for the year
 ended 31 March 2008 on a going concern basis.
 
 ACCOUNTS AND AUDIT
 
 The Auditors, M/s Rohtas & Hans hold office untill the conclusion of
 the ensuring Annual General Meeting and are recommended for
 re-appointment. Certificate from the Auditors has been received to the
 effect that their re- appointment, if made would be. within the limits
 prescribed under Section 224 (1B) of the Companies Act, 1956.
 
 The Auditors Report to the Shareholders does not contain any
 disqualification.
 
 FIXED DEPOSITS
 
 The Company has not accepted any fixed deposits from public with in the
 meaning of section 58A of the companies Act, 1958 and the rules made
 there under.
 
 PARTICULARS OF EMPLOYEES
 
 The Board of Directors wishes to express their appreciation to all the
 employees for their outstanding contribution to the operations of the
 Company during the year. Statutory statement of particular of employees
 pursuant to Section 217 (2A) of the Companies Act, 1956 is given as
 Annexure-B forms an integral part of this Report
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
 
 The information requited 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. 1989 is annexed hereto and
 forms part of the Report.
 
 DIRECTORS
 
 In terms of the provisions of the Articles of Association of the
 (Company, Mr. R.K. Pandey and Mr. Ashwani Kumar Singla are due to
 retire by rotation at the forthcoming Annual General Meeting of the
 Company and being eligible, offer themselves for re-appointment. The
 Board recommends their re-appointment.
 
 ACKNOWLEDGEMENTS
 
 Your Directors take this opportunity to place on record their gratitude
 for the financial assistance extended by Banks.  Your Directors wish to
 place on record their deep sense of appreciation for the dedicated
 services of the employees at all levels. Your Directors also convey
 their sincere appreciation to the Shareholders, dealers, customers,
 suppliers and other business associates for their continued support and
 the confidence placed in the management of the Company.
 
                                                By order of the Board
                                 For Hanung Toys and Textiles Limited
 
 Place: Noida                                     (Ashok Kumar Bansal)
 Date : August 04,2008                 Chairman-cum-Maaaging Director