The Directors are pleased to present the 14th Annual Report and the
 Audited Statement of Accounts for the year ended 31 st March, 2010
 
 FINANCIAL RESULTS
 
 Sr.No.   Particulars                    31.03.2010      31.03.2009
                                        (Rs. in Lac)    (Rs. in Lac)
 
 1.  Sales/Other Income                   6484.25         5701.18
 
 2.  Profit before Depreciation
     & Financial Expenses                  832.52          739.81
 
 3.  Depreciation                          296.68          261.68
 
 4.  Financial Expenses                    335.23          293.07
 
 5.  Profit before Tax                     200.61          185.06
 
 6.  Profit after Tax                      170.32          125.56
 
 The year under review witnessed unprecedented fluctuations in raw
 material cost, availability of labour at certain wages and
 uninterrupted power supply.
 
 Your directors hereby report that the sales realizations have increased
 during the year under review. This has been mainly due to heavy orders
 received from the Ministry of Defence by the Company.
 
 There has been increase in depreciation due to addition in Plant &
 Machinery and some of the official infrastructural facilities. The
 amount of interest paid on loans has also increased. However, the
 company has managed to earn profits aftertax of Rs. 170.32 lac as
 compared to Rs.125.56 Lac earned during the last financial year.
 
 Your directors are confident that the companys financial position will
 improve a lot in the time to come.
 
 DIVIDEND
 
 In view of marginal profits earned by the company and keeping in view
 future growth of the Company, your directors regret their inability to
 recommend any dividend for the year ended on 31 st March, 2010.
 
 FIXED DEPOSITS
 
 The company has not accepted any deposits during the year ended 31 st
 March,2010 under Section 58A and 58AA of the Companies Act, 1956 read
 with Companies (Acceptance of Deposit) Rules.
 
 DIRECTORS
 
 Sh. Amit Khanna, Director retires by rotation and being eligible offers
 himself for reappointment. Details of his expertise and
 directorship/committee memberships held by him is given in Notice of
 the Annual General Meeting.
 
 Sh. Sunil Kumar Sharma was appointed as Additional Director on the
 Board of the Company w.e.f. 14th May 2010. The term of Sh. Sunil Kumar
 Sharma 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 signifying his intention to propose Sh. Sunil
 Kumar Sharma as Director of the company.
 
 Sh. Iqbal Singh Gumber, Director, had resigned on 22nd March, 2010 from
 Directorship of the Company due to his personal commitments. Your Board
 recorded its gratitude for the guidance and counsel provided by Sh.
 Iqbal Singh Gumber during his tenure as Director and accepted his
 resignation in its meeting held on 12th August, 2010.
 
 AUDITORS
 
 The Auditor M/s. Brij Aggarwal & Associates, Chartered Accountants
 retire at the conclusion of this Annual General Meeting and being
 eligible offer themselves for reappointment. They have furnished a
 certificate to the effect that the reappointment if made will be in
 accordance with sub section (IB) of Section 224 of the Companies Act,
 1956
 
 LISTING OF SHARES
 
 The Companys shares are presently listed on the Bombay Stock Exchange
 Limited, Mumbai (BSE) and the Annual Listing fees for the year
 2010-2011 has been paid to it.
 
 CORPORATE GOVERNANCE
 
 A separate report on Corporate Governance forms a part of the Annual
 Report along with the Auditors Certificate on Compliance.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING AND OUT GO
 
 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.
 
 The power and fuel expenses during the year have been at Rs. 5858659/-
 as against the last yearofRs.7523955/-.
 
 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):
 
 Foreign Exchange earnings: 12.26 Lacs
 
 Foreign Exchange Out go : NIL.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pu rsuant to Section 217(2AA) of the Companies Act, 1956, the
 Directors confirm that:
 
 i) in the preparation of the annual accounts, the applicable accounting
 standards have been followed and that there are no material departures;
 
 ii) that appropriate accounting policies have been selected and applied
 consistently and judgments and estimates that are reasonable and
 prudent have been made so as to give a true and fair view of the state
 of affairs as at March 31, 2010 and of the net profit earned by the
 Company for financial period ended March 31,2010.
 
 iii) they have taken proper and sufficient care, to the best of their
 knowledge and ability, 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.
 
 iv) They have prepared the annual accounts on a going concern basis.
 
 PARTICULARS OF EMPLOYEES U/S 217 (2A) OF THE COMPANIES ACT, 1956
 
 In terms of provisions of Section 217(2A) of the Companies Act, 1956
 read with Companies (Particulars of Employees) Rules 1975 the
 particulars of employees may be treated as NIL.
 
 COMMENTS ON AUDITORS QUALIFICATIONS
 
 The loan repayment ot PFC has been rescheduled and necessary accounting
 entries has been made in the current Financial Year. The Company has
 sought waiver of interest from L & T Finance Limited and accordingly
 account will be reconciled. The company is maintaining register and
 details under section 301 (3) of the Companies Act, 1956 have been duly
 entered. As there were no transactions falling within the perview of
 Section 297 or Section 299 during the year, no entries were required to
 be made in the register maintained for the purpose.
 
 ACKNOWLEDGMENT
 
 Your Directors wish to place on record their appreciation of the
 support which the Company has received form its promoters , lenders,
 business associates including distributors, vendors and customers of
 the company. They further take this opportunity to place on record
 their warm appreciation for the invaluable contribution made and the
 spirit of dedication shown by the employees at all levels during the
 financial year 2009-2010. The Directors also express their deep
 gratitude for continued support extended by the shareholders during the
 year.
 
                                           For and on behalf of the
                                                 Board of Directors
 
 Dated :2nd September 2010                           (Mukesh Juneja)
 Place: Jalandhar                                (Managing Director)