Dear Members,
 
 The Directors present the 14th Annual Report together with Audited
 Accounts for the year ended 31st March, 2011.
 
 FINANCIAL RESULTS
 
                                            (Rs. ‘000)      (Rs. ‘000)
                                            Year ended      Year ended
                                                    On              On
                                            31/03/2011      31/03/2010
 
 Gross sales including other income           1,12,542        1,58,264
 
 Gross Loss                                     87,520        1,27,494
 
 Depreciation                                   34,124          34,353
 
 Net Loss                                     1,21,644        1,61,847
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 The year 2010-11 was an exceptional year for the whole world as it was
 faced with huge surge in world commodity prices with the Commodity
 Index surging more than 42% during the year. This gave rise to supply
 side inflation and thereby raising interest rates in India. As a
 result, the earning growth is expected to be hit in the current fiscal.
 This phenomenon is evident now and the cotton & polyester price
 currently have fallen by almost 40% from their peak in 2010-11.
 
 Your Company could not optimize the utilization of production
 facilities due to finance constraints. The Company increased job-work
 activity to improve the capacity utilization. Simultaneously, it took
 all- round steps for cost cutting. All this led to improving the
 margins as compared to 2009-10 and your company has been able to almost
 reach to EBIDTA Break-even at operating level.
 
 The Company has approached the bankers of the company for restructuring
 of loans under CDR mechanism. The Company has also identified an
 investor who is willing to infuse funds for augmenting the working of
 the Company and also for completing the unfinished ring spinning
 project. We are hopeful that once the CDR package is approved and fresh
 money is infused, your Company should be back on recovery path. The
 prices of raw material viz. cotton and polyester have come down to
 reasonable levels leaving comfortable margins for the mills.
 
 MANAGEMENT PERCEPTION OF RISK AND CONCERN
 
 One of the key challenge to the textile industry is related to raw
 material prices mainly cotton prices which has seen very steep hike in
 2010-11and the same is still volatile creating uncertainties for
 textile manufacturers.
 
 The second important challenge is rising energy prices which could
 adversely impact the profitability of textile mills. The third main
 issue for the textile industry is the non- availability of skilled
 manpower coupled with high labour cost prevailing in the country.
 
 Uncertainty in the government export policy is other major challenge
 for the textile industry under which the government banned cotton yarn
 exports last year which lead to high inventory cost and losses to the
 Indian textiles manufacturers and there is a fear of duty draw back
 benefits etc. to the exporters.
 
 We are making all efforts to cope up with the challenges through
 continuous cost reduction, process improvements, imparting training to
 the workforce on the continued basis, process improvements and improved
 customer services to mitigate the growing cost pressure.
 
 INTERNAL CONTROL SYSTEM
 
 The Company has well defined internal control system commensurate to
 the size and nature of its business.  The Company takes abundant care
 to design, review and monitor the working of internal control system
 for optimal utilization and protection of resources. All significant
 issues are brought to the attention of the Audit Committee of the
 Board.
 
 HUMAN RESOURCES/INDUSTRIAL RELATIONS
 
 Your Company lays emphasis on building and sustaining an excellent
 organization climate based on human performance. Performance management
 is the key word for the Company. The Company has developed an
 environment of harmonious and cordial relations with its employees.
 
 As the Company is in Textile business only, segment reporting is not
 required.
 
 DIVIDEND
 
 No dividend is being recommended for the year under review in view of
 the losses.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act, the Directors
 hereby confirm that:
 
 i) in the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 ii) the Directors have 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 the financial year and of the Loss of the
 Company for that period ;
 
 iii) the Directors have taken proper and sufficient care to the best of
 their knowledge and ability for the maintenance of adequate accounting
 records in accordance with provisions of this Act for safeguarding the
 assets of the Company and for preventing and detecting fraud and other
 irregularities; 
 
 iv) the Directors have prepared the annual accounts on a going concern
 basis.
 
 DIRECTORS
 
 Mr. Anil Goyal, who has been associated with the Company for last 5
 years and Mr. Narendra Prabhakar Mahajani who has been associated with
 the company for last 3 years resigned from the Board due to their pre-
 occupation of work. The Directors record their appreciation for the
 service and guidance provided by them during their tenure.
 
 Mrs. Shakuntala Vyas who has been associated with the company since
 beginning resigned from the Board due to her other engagements. The
 Directors record their appreciation for the service and guidance
 provided by her during her tenure.
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company Mr. Akash Bharatbhai Shah,
 Director of the Company retire by rotation and being eligible, offers
 himself for re-appointment.
 
 OTHER INFORMATION
 
 Information as per section 217 (2A) of the Companies Act, 1956 read
 with the Companies (Particulars of Employees) Rules, 1975:
 
 None of the employee was in receipt of remuneration in excess of limit
 prescribed under Section 217 (2A) of the Companies Act, 1956.
 
 Energy Conservation, Technology Absorption & Foreign Exchange
 
 The information required under Section 217(1) (e) of the Companies Act,
 1956 read with the Companies (Disclosure of Particulars in the report
 of Board of Directors) Rules, 1988 with respect to Conservation of
 energy, technology absorption and foreign exchange earnings/outgo is
 appended hereto and form part of this report.
 
 AUDITORS
 
 M/s G. Dutta & Co., Chartered Accountants, Auditors of the Company
 retire and being eligible offer themselves for re-appointment.
 
 The observations made by the Auditors in their Report are adequately
 explained in the notes to the Accounts and significant Accounting
 Policies and need no further elaboration.
 
 CORPORATE GOVERNANCE
 
 As per Clause 49 of the listing agreement with the Stock Exchange, a
 separate section on Corporate Governance forms part of the Annual
 Report.
 
 A Certificate from the Auditors of the Company confirming compliance
 with conditions of Corporate Governance as stipulated under the Clause
 49 of the listing agreement is annexed to this Report.
 
 ACKNOWLEDGMENT
 
 The Board acknowledges the valuable assistance and cooperation received
 from Government Authorities, Bankers and Business Constituents and
 looks forward to their continued support.
 
 Your Directors express their deep appreciation for the commitment and
 hard work put in by all employees.
 
                                        For and on behalf of the Board 
 
                                                                  Sd/- 
                                                            (S.G.VYAS) 
                                                     MANAGING DIRECTOR
 
 Place : Jaipur 
 Dated : 27.08.2011