KEW Industries

The Directors have an immense pleasure in presenting the 12th Annual
 Report of the Company along with the Audited Accounts for the year
 ended 31st March 2008.
 
 FINANCIAL RESULTS
 
 Sr.No. Particulars                          31.03.2008   31.03.2007
                                            (Rs. in Lac) (Rs. in Lac)
 
 1.     Sales/Other Income                     6893.70       5508.25
 2.     Profit before Depreciation
        & Interest                              885.64        805.36
 3.     Depreciation                            253.17        182.42
 4.     Interest                                254.45        203.68
 5.     Profit before Tax                       378.02        419.26
 6.     Profit after Tax                        294.06        370.56
 7.     Net Worth                              5315.86       4711.18
 
 You directors are pleased to report that sales realizations have been
 increased by about 25%.  However, the profits have declined due to
 increase in manufacturing, administrative and financial expenses.
 
 - The depreciation has also risen due to addition in Fixed Assets
 during the year. The details of expenses have been given in schedules
 to annual accounts.  Your Directors are hopeful that profits in the
 coming years will increase leading to rise in Net Worth of the company.
 
 DIVIDEND
 
 Keeping in view the need to conserve resources, your Directors do not
 recommend any dividend on Equity Shares for the year.
 
 FIXED DEPOSITS
 
 During the year, the company has not accepted any deposit form the
 public under section 58 A of the Companies Act, 1956 and the rules made
 there under.
 
 DIRECTORS
 
 Sh. Ashok Kumar Director retires by rotation and being eligible offers
 himself for reappointment.
 
 Sh. Amit Khanna was inducted as Additional Director on the Board of the
 Company w.e.f. 27th October 2007.  The term of Sh. Amit Khanna shall be
 up to the conclusion of next Annual General Meeting. The Company has
 received a notice under Section 257 of the Companies Act, 1956 from a
 member proposing candidature of Sh.  Amit. Khanna as Director of the
 company.
 
 Sh. Iqbal Singh Gumber was inducted as Additional Director on the Board
 of the Company w.e.f. 28th April 2008. The term of Sh. Iqbal Singh
 Gumber shall be up to the conclusion of next Annual General Meeting.
 The Company has received a notice under Section 257 of the Companies
 Act, 1956 from a member proposing candidature of Sh. Iqbal Singh Gumber
 as Director of the company.
 
 In terms of clause 49 of the Listing Agreement with Stock Exchanges,
 the details of Directors to be appointed/re-appointed are contained in
 the accompanying Notice of the forthcoming Annual General Meeting.
 
 Your Directors take on record the valued contribution of Sh. Parveen
 Khanna during his association as director with the company.
 
 AUDITORS
 
 The Auditors M/s Brij Aggarwal & Associates, Chartered Accountants.
 Jalandhar will hold office until the conclusion of ensuing Annual
 General Meeting.  Being eligible they offers themselves for
 reappointment. So, they are recommended for re- appointment. The
 company has received a certificate from them to the effect that their
 re-appointment if made will be within the limits specified in Section
 224 of the Companies Act, 1956.
 
 ALLOTMENT OF CONVERTIBLE WARRANTS AND SHARES
 
 During the year, the company has allotted 75,00,000 convertible
 warrants with an option to convert in to equal number of equity shares
 of Rs. 10/- each at a premium of Rs. 30/- per share with in a period of
 eighteen months from the date of allotment. Your company also issued
 6,50,000 equity shares at a price of Rs. 40/- per share (including
 premium of Rs.  30/- per share). These allotments have been made in
 accordance with Securities and Exchange Board of India guidelines.
 
 LISTING OF SHARES
 
 The companys shares continues to be listed at Bombay Stock Exchange
 Ltd. The annual listing fee has been paid to the stock exchange.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING AND OUTGO
 
 Particulars in respect of conservation of energy and technology
 absorption and foreign exchange earnings and out go as required under
 section 217(1) (e) of the Companies Act, 1956 are provided as under:
 
 A) Conservation of Energy.
 
 Power and fuel consumption:
 
 Electricity                               Current Year   Previsour Year
 
 a) Purchase
 
 Unit (Lacs/KWH)                                 9.34             9.23
 Total Amount (Rs. in Lac)                      48.64            48.21
 Rate (Rs./KWH)                                  5.20             5.22
 
 b) Own generation through
 Diesel Generators
 
 Litres (Lacs)                                   3.50             3.03
 Total Amount (Rs. in lacs)                     19.25            14.63
 Cost per unit (In Rs.)                          5.50             4.83
 
 B) Technology absorption, Adaptation & Innovation.
 
 The company is committed to the process involving industry knowledge,
 training and adoption.
 
 C) Foreign exchange earning & outgo (Rs. in Lac):
 
 During the period under review, the company has used/earned the
 following foreign exchange.
 
 Particulars                             Current Year   Previsour Year
                                              (Rs.  in lacs)
 
 Used                                           -             -
 Earnings
 FOB value of Export of goods                 17.08         38.50
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 The Board of Director of your Company state: -
 
 a) That in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 b) That the directors had 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 that period;
 
 c) That the directors had 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;
 
 d) That the directors had prepared the annual accounts on a going
 concern basis.
 
 PARTICULARS OF EMPLOYEES U/S 217 (2A) OF THE COMPANIES ACT, 1956
 
 The information in respect of particulars of employees u/s 217(2A) of
 the Companies Act, 1956 read with Companies (Particulars of Employees)
 Rules 1975 may be treated as NIL.
 
 ACKNOWLEDGMENT
 
 The Board of Directors of the company wish to place on record their
 thanks and appreciation to all staff members for their contribution in
 the operations of the company. The Directors are thankful to the
 Bankers and Institutions for their continued support to the company.
 Above all the directors express their happiness over the confidence
 retained in them by the shareholders.
 
 Place : Jalandhar                         For and on behalf of the
 Dated : 31/07 /2008                       Board of Directors
 
                                               (Mukesh Juneja)
                                       (Chairman-Cum-Managing Director)