The Directors are pleased to present their twelfth Annual Report on the
 business and operations of the Company and the statement of accounts
 for the year ended March 31, 2012.
 
 FINANCIAL RESULTS
 
                                                           (Rs. Crores) 
                                               2011-12         2010-11
 
 Dividend and Other Income                       40.28           59.89
 
 Profit Before Interest, Depreciation 
 & Tax (EBIDT)                                   39.82           59.39
 
 Less: Interest & Finance Charges                 1.49            4.25
 
 Profit before Depreciation and Tax (PBDT)       38.33           55.14
 
 Less: Depreciation                                -               -
 
 Profit before Tax (PBT)                         38.33           55.14
 
 Less: Provision For Taxes                       (0.12)           0.01 
 (including provision for deferred
 tax)
 
 Net Profit after Tax (PAT)                      38.45           55 13
 
 Add: Profit brought forward from 
 previous year                                   90.91           36.98
 
 Profit available for appropriation             129.36           92.11 
 Appropriations
 
 Dividend on Preference Shares                    1.03            1.03
 
 Dividend on Equity shares                         -               -
 
 Corporate tax on dividend                        0.17            0.17
 
 Amount transferred to General Reserve             -               -
 
 Profit carried to Balance Sheet                128.16           90.91
 
 Total Appropriation                            129.36           92.11
 
 DIVIDEND
 
 Your Directors recommended payment of dividend on 8% Non- cumulative
 Redeemable Preference Shares. No dividend is recommended on Equity
 Shares.
 
 No amount has been proposed to be transferred to General Reserve.
 
 OPERATIONS REVIEW
 
 Profit Before Interest, Depreciation & Tax (EBIDT) decreased by 32.95%
 to Rs 39.82 crores from Rs 59.39 crores mainly due to decrease in
 dividend income. Profit before tax decreased by 30.49% to Rs 38.33
 crores from Rs 55.14 crores. Profit after Tax decreased by 30.26% to Rs
 38.45 crores from Rs 55.13 crores.
 
 SUBSIDIARY COMPANIES KAMA Realty (Delhi) Limited
 
 KAMA Realty (Delhi) Limited made a net profit of Rs. 3.34 Crores mainly
 due to rental and interest income.
 
 Shri Educare Limited
 
 During the year your Company has invested a sum of Rs. 3.20 crores in
 the equity capital of Shri Educare Ltd. This company is engaged in the
 field of education. It had made a loss of Rs. 3.95 crores mainly on
 account of personnel and administrative expenses.
 
 Shri Educare Maldives Private Limited
 
 Shri Educare Maldives Private Limited made a loss of MRF 0.25 crores
 (Rs. 0.85 crores appx.) mainly on account of personnel and
 administrative expenses.
 
 During the year, Shri Educare Limited had made an investment (including
 application money) of MRF 0.59 crores (Rs. 2 crores appx.) in the
 equity shares of Shri Educare Maldives Private Limited.
 
 Annual accounts of the subsidiary companies and the related information
 can be obtained on request by the shareholders of the Company and of
 the subsidiary companies. These are also available for inspection at
 the Corporate Office of the Company and at the respective registered
 offices of the subsidiaries between 11 A M. to 1 P.M. on all working
 days.
 
 DIRECTORS
 
 Mr. Kartikeya Bharat Ram and Mr. Mukul Khandelwal, Directors retire by
 rotation and being eligible, offer themselves for re-appointment.
 
 Directors'' Responsibility Statement
 
 Pursuant to the requirements of Section 217(2AA) of the Companies Act,
 1956, it is hereby confirmed:
 
 (i) that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 (ii) that 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
 profit or loss of the Company for the period under review;
 
 (iii) that the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 
 (iv) that the Directors have prepared the annual accounts for the year
 ended 31.03.12 on a going concern basis.
 
 The Company is controlled by Arun Bharat Ram Group (Promoter
 Group) being a group as defined under the erstwile Monopolies and
 Restrictive Trade Practices Act, 1969. The Promoter Group consists of
 various individuals and corporate bodies who are in a position to and
 who jointly exercise control over the Company.
 
 a) Mr.Arun Bharat Ram; b) Mr. Ashish Bharat Ram; c) Mr. Kartikeya
 Bharat Ram; d) Mrs Shiela Bharat Ram; e) Mrs. Manju Bharat Ram; f)Mrs.
 Vasvi Bharat Ram; g)Mrs. Radhika Bharat Ram; h) SRF Ltd; i)SRF
 Transnational Holdings Ltd; j) Skylark Investments & Trading Pvt. Ltd.;
 k) Karm Farms Pvt. Ltd.; I) Srishti Westend Greens Farms Pvt. Ltd.; and
 m) Karmav Holdings Private Limited.
 
 LISTING OF SHARES
 
 Your Company''s equity shares are listed at the Bombay Stock Exchange
 Ltd.
 
 CORPORATE GOVERNANCE
 
 Certificate of the auditors of your Company regarding compliance with
 the conditions of corporate governance as stipulated in Clause 49 of
 the Listing Agreement with the stock exchange is attached to the report
 as annexure 1.
 
 In compliance with the requirements of Clause 49(V), a certificate from
 Whole-time Director & Company Secretary was placed before the Board.
 
 All Board members had affirmed compliance with the Code of Conduct for
 Board and Senior Management Personnel. A declaration to this effect
 duly signed by the Whole-time Director & Company Secretary is enclosed
 as a part of the Corporate Governance Report.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 In accordance with the Accounting Standard AS-21 & AS-23 on
 Consolidated Financial Statements, your Directors have pleasure in
 attaching the Consolidated Financial Statements, which form part of the
 Annual Report and Accounts.
 
 ACCOUNTS AND AUDIT
 
 The Auditors, M/s Thakur, Vaidyanath, Aiyar & Company, retire at the
 conclusion of the 12th Annual General Meeting and being eligible, offer
 themselves for re-appointment. The observations of the Auditors are
 explained wherever necessary in appropriate notes to the Accounts.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 Management discussion and analysis on matters relating to the business
 performance, as stipulated in clause 49 of the listing agreement with
 the stock exchange, is given as a separate statement in the Annual
 report.
 
 FIXED DEPOSITS
 
 Your company had discontinued to accept/renew fixed deposits w.e.f.
 April 1, 2009. As on March 31, 2012 all fixed deposits had matured and
 are being repaid as and when claimed by the depositors.
 
 Deposits (including interest) amounting to Rs. 0.10 crores due for
 repayment on or before March 31, 2012 remained unclaimed by depositors.
 There has been no default in repayment of fixed deposits during the
 year.
 
 PARTICULARS OF EMPLOYEES
 
 No employee was drawing remuneration equal to or exceeding the limits
 under Section 217(2A) of the Companies Act,1956 read with Companies
 (Particulars of Employees), Rules, 1975.
 
 ACKNOWLEDGEMENTS
 
 Your Directors acknowledge with gratitude the co-operation and
 assistance received from various agencies of the Central Government and
 the Lenders Your Directors thank the shareholders for their support.
 
                             For and on behalf of the Board of Directors
 
 Place: Gurgaon                                     Kartikeya Bharat Ram
 
 Date: May 30, 2012                                             Chairman