To the Members,
 
 The Directors have pleasure in presenting the Annual Report and Audited
 Accounts for the financial year for six months ended 31st March, 2011.
 
                                                      (Rs. in thousands)
 
 FINANCIAL RESULTS                            2010-2011      2009-2010
 
 Sales and Services                              885526        3205469
 
 Other Income                                   2410423         816593
 
 Profit/(Loss) before depreciation, 
 finance charges and taxation                    768782       (3925892)
 
 Less: Depreciation & Amortisation              112246         390328
 
 Finance charges                                253539         814823
 
 Profit/(Loss) before taxes                      402997      (5131043)
 
 Provision for taxation                            212           455
 
 Income tax for earlier years                      -            1143
 
 Prior period adjustments                         634         (6688)
 
 Profit/(Loss) for the year                     402151      (5125953)
 
 Balance brought forward from 
 previous years                                   -       (14899023)
 
 Accumulated losses transferred 
 to the Business Reconstruction Account           -        20024976
 
 Balance carried to Balance Sheet              402151         -
 
 DIVIDEND
 
 The Board of Directors do not recommend any divided on equity and
 preference shares for the financial year ended 31st March, 2011 as the
 Company has not earned Profit from the operational activities.
 
 
 FIXED DEPOSITS
 
 The Company has not accepted any deposits during the year.
 
 DIRECTORS
 
 Shri M P Shukla, Director retire by rotation at this Annual General
 Meeting and being eligible, offers himself for re-appointment.
 
 DIRECTORS’ RESPONSIBILITY STATEMENT
 
 Pursuant to the requirements under Section 217(2AA) of the Companies
 Act, 1956 with respect to Directors’ Responsibility Statement, it is
 hereby confirmed:
 
 1.  That in the preparation of the accounts for the financial year ended
 31st March, 2011, the applicable accounting standards have been
 followed along with proper explanations relating to material
 departures;
 
 2.  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 of the Company for the year under REVIEW;
 
 3.  That the Directors have 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;
 
 4.  That the Directors have prepared the accounts for the financial year
 ended 31st March, 2011 on a ‘going concern’ basis.
 
 AUDITORS
 
 M/s Khandelwal Jain & Company, Chartered Accountants, Auditors of the
 Company retire at the conclusion of the ensuing Annual General Meeting
 and being eligible, offer themselves for re-appointment.
 
 AUDITORS’ REPORT
 
 The information and explanation on qualifications/observations in the
 Auditors’ Report are given in Annexure – I
 
 PERSONNEL
 
 In accordance with the provisions of Section 217 (2A) of the Companies
 Act, 1956 read with the Companies (Particulars of Employees) Rules,
 1975 as amended up to the date of this Report is set out in the
 Annexure-II and forms part of this report.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS/ OUTGO
 
 The information required 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 with respect to these matters is
 set out in Annexure-III and forms part of this Report.
 
 DEPOSITORY SYSTEMS
 
 The Company’s script has come under compulsory dematerialization w.e.f.
 29th November, 1999 for Institutional Investors and w.e.f. 17th
 January, 2000 for all Investors. So far 99.90% of the equity shares
 have been dematerialized.  The ISIN no. allotted to the equity shares
 of the Company is INE548A01028.
 
 CORPORATE GOVERNANCE
 
 A separate statement on Corporate GOVERNANCE along with the Auditors’
 Certificate on its Compliance is given as a part of the Annual Report.
 
 ACKNOWLEDGEMENTS
 
 The Directors thank the Central Government, Govt. of Himachal Pradesh,
 Govt. of Goa, Industrial DEVELOPMENT Bank of India, Unit Trust of
 India, State Bank of India, Oriental Bank of Commercial, Punjab
 National Bank, Bank of Baroda, Union Bank of India and other Banks and
 Institutions for all corporation, facilities and encouragement they
 have extended to the Company. Your Director acknowledge the continued
 trust and confidence you have reposed in this Company. The Directors
 also place on record their appreciation for the services rendered by
 the officers, staffs & workers of the Company at all levels and for
 their dedication and loyalty.
 
                                     For and on behalf of the Board
 
 Place : New Delhi                                       M P Shukla
 
 Date : 12th August, 2011                                  Chairman