The Directors have pleasure in presenting the TWENTY SECOND ANNUAL
 REPORT together with the Audited Accounts of the company for the
 financial year ended 31st March, 2012.
 
 FINANCIAL HIGHLIGHTS:
 
 The performance of the company for the financial year ended 31st March
 2012 is summarized below.
 
                                                  (Rupees In Lakhs)
 
 PARTICULARS                                     2011-12      2011-11
 
 Gross Revenue                                    457.84      148.38
 
 Total Expenditure                                 468.96     176.22
 
 Profit / [Loss] before Financial Charges,          -2.97     -21.09
 Depreciation and Taxation
 
 Less: Financial Charges                             2.09       0.70
 
 Depreciation                                        6.06       6.03
 
 Profit/(Loss) before Tax (PBT)                    -11.12     -27.84
 
 Less/Add: Profit/ loss on sale / discard nation        0       0.00 
 of Fixed Assets
 
 Less: (Income Tax)                                     0       0.00
 
 Add : Provision for Fringe Benefit Tax                 0       0.00
 
 Add:Provision for Deferred Tax Liability/(Asset)   -2.97      -6.10
 
 Profit / (Loss) after Tax                          -8.15     -33.94
 
 Add:Balance brought forward from previous year   -671.99    -638.05
 
 Balance carried to Balance Sheet                 -680.14    -671.99
 
 PERFORMANCE:
 
 Your Company achieved a Turnover of Rs. 457.84 Lacs when compared to Rs
 148.38 lacs during the previous year. The operations of the Company
 resulted in a loss of Rs.l 1.12 lacs when compared to Rs. 27.84 lacs
 before taxes during the previous year.
 
 The Major cause for the huge loss is on account of the high cost of
 goods sold, The Board is striving hard to improve the performance of
 the Company.
 
 FUTURE OUTLOOK:
 
 The management has done well to ensure sustain operations. However, due
 to high cost and expenditure, the operations resulted in Loss. Efforts
 are being made to reduce the costs involved.
 
 The Management is also looking at breaking even in the ensuing
 financial year.
 
 DIVIDEND:
 
 Your Directors do not recommend any dividend for the financial year
 2011-2012, in view of the accumulated losses.
 
 FIXED DEPOSITS:
 
 The company has neither accepted nor renewed any deposits falling
 within the provisions of Section 58A of the Companies Act, 1956 read
 with the Companies (Acceptance of Deposits) Rules, 1975 from the public
 during the financial year.
 
 DIRECTORS:
 
 Sri G Nityanand and Sri Deepak Kukreti, directors are retiring at the
 ensuing Annual General Meeting and being eligible, offer themselves for
 reappointment.
 
 AUDITORS:
 
 M/s. G.L. Kothari & Co. Chartered Accountants, Bangalore, the Statutory
 Auditors of the company retire at the conclusion of ensuing Annual
 General Meeting & being eligible, offer themselves for re-appointment.
 They have furnished a certificate stating that their re-appointment, if
 made, will be within the limits laid down under Section 224(1B) of the
 Companies Act, 1956. The Board recommends their appointment as the
 Statutory Auditor ofthe Company.
 
 INTERNAL AUDIT:
 
 The company does not have an internal audit system commensurate with
 the size and nature of its business. However the company has its own
 internal control system which enables it from time to time to monitor
 employee adherence to internal procedure and external regulatory
 guidelines.
 
 PARTICULARS OF EMPLOYEES:
 
 There are no employees whose particulars are required to be furnished
 under Section 217(2A) of the Companies Act, 1956 read with Companies
 [Particulars of employees) Rules, 1975, and as amended from time to
 time as remuneration, none of the employees is in excess of Rs.2,
 00,000/- per month, if employed for the part of year or Rs .24,00,000/-
 per annum during the financial year 2011-12.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 The Directors of your Company hereby report:
 
 (i) That in the preparation of Annual Accounts for the financial year
 ended 31st March, 2012, the applicable accounting standards have been
 followed along with the proper explanation relating to material
 departures, if any, there from;
 
 (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 and loss of the company for that period;
 
 (iii)That the directors have 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;
 
 (iv) That the directors have prepared the annual accounts on a going
 concern basis.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 The details regarding Energy Conservation, Technology Absorption,
 Foreign Exchange Earnings and Outgo as required by section 217(l)(e) of
 the Companies Act, 1956 read with the Companies (Disclosure of the
 particulars in the report of the Board of Directors) Rules, 1988 are
 given as Annexure A and forms part of this report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
 
 Management Discussion and Analysis Report, pursuant to Clause 49 of the
 Listing Agreement forms part of this Report and is annexed hereto.
 
 CORPORATE GOVERNANCE:
 
 The Company has implemented the procedures and adopted practices in
 conformity with the Code of Corporate Governance enunciated in Clause
 49 of the Listing Agreement with the Stock Exchanges. A separate report
 on Corporate Governance is annexed herewith, as a part of the Annual
 Report along with the Auditor''s Certificate on its compliance.
 
 COMPLIANCE CERTIFICATE:
 
 The Company has obtained Compliance Certificate for the financial year
 2011-12, pursuant to the provisions of Section 383A of the Companies
 Act, 1956 from a qualified Company Secretary in whole time practice. A
 copy of the same is attached to this report.
 
 LISTING:
 
 Your Company''s shares are presently listed on the Stock Exchanges of
 Bombay, Bangalore, Ahmadabad, and Delhi. However there is no trading in
 Bangalore, Ahmedabad and Delhi, since the said stock exchanges are not
 providing any trading platform.
 
 ACKNOWLEDGMENTS:
 
 The Board of Directors would like to place on record its appreciation
 towards all the employees & the managerial personnel of the company for
 their contribution in the operations of the company during the year
 under review. The Directors would also like to record their sincere
 thanks to the Company''s bankers, Central and State Government
 officials, customers, vendors and the shareholders for their continued
 support and co- operation.
 
                           By The Order of The Board 
 
                           For Midwest Gold Limited
 
                           Sd/-                Sd/-
 
                           P. K. Tyagi         B.S.Raju
 
                           Director            Whole Time Director
 
 Place : Bangalore
 
 Date : 13.08.2012