To the Members of NEPC TEXTILES LIMITED
 
 The Directors have pleasure in presenting the Eighteenth Annual Report
 and Audited Accounts of your Company for the year ended 20th September,
 2011. The accounts for the year under review have been prepared for
 twelve months from 1st October, 2010 to 30th September, 2011
 
 FINANCIAL HIGHLIGHTS
 
 The Financial Results of the Company during the year under review are
 as follows:-                                           
                                                        (Rs in lakhs)
 
                                           Year ended     Year ended
 Particulars                               (12 months)    (12 months)
                                           30-09-2011     30-09-2010
 
 Gross Income                                      -              -
 
 Profit/ (Loss) before Depreciation.          (6.32)           6.80
 
 Depreciation                                      -         144.86
 
 Profit / (Loss) after Depreciation           (6.32)       (138.06)
 
 Provision for taxation                            -              -
 
 Profit / (Loss) after taxation               (6.32)       (138.06)
 
 Balance Profit / (Loss) Account B/F        (429.78)       (291,71)
 
 Add: Transfer from Dividend Payable A/c           -              -
 
 Add:- B/F of balance General Reserve              -              -
 
 TOTAL                                      (436.10)       (429,78)
 
 Appropriations:
 
 General Reserve                                   -              -
 
 Capital Work in Progress written off              -              -
 
 Balance Profit / (Loss) carried to 
 Balance Sheet                              (436.10)       (429.78)
 
 OPERATING RESULTS
 
 Due to unfavourable market trends and various other factors, the
 operating performance of the Company was severely affected during the
 year under review and hence the Company could not generate any income
 
 during the year.lt is hoped that the Company will be able to regain
 operating performance in the coming years.
 
 DIVIDEND
 
 The Directors do not recommend dividend for the year ended 30th
 September 2011, in view of the losses incurred by the Company.
 
 DIRECTORATE
 
 Mr. Rajkumar and Mr. Tirupathi Kumar retire by rotation at the
 forthcoming Annual General Meeting and being eligible, offer themselves
 for re-appointment.
 
 AUDITORS
 
 Mr. A. Nageswaran, Chartered Accountant, Coimbatore, retire at the
 conclusion of the forthcoming Annual General Meeting. However, they are
 eligible for re-appointment and are given their consent to act as the
 auditors of your company, if appointed. The Auditor committee and the
 Board recommends the re-appointment of M/s. A. Nageswaran, Chartered
 Accountants, as the Auditor of the Company.
 
 Auditor''s Qualifications:
 
 With regard to para 4 (f) of Auditor''s report and note no. 4 in
 Schedule 19, the Company is in the process of getting confirmations
 from the debtors/creditors as well as review and revalue and also
 reconcile the current assets. Loans & advances, Current liabilities.
 
 DIRECTORS RESPONSIBILITY
 
 In compliance with Section 217 (2AA) of the Companies Act, 1956, the
 Directors confirm that :
 
 - in the preparation of annual accounts the applicable Accounting
 Standards have been followed: along with proper explanation wherever
 necessary.
 
 - the Accounting Policies selected and applied on a consistent basis,
 give a true and fair view of the affairs of the Company and of the loss
 for the financial year under review.
 
 - proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 aforesaid Act for safeguarding the assets of the Company; and for
 prevention and detection of fraud and other irregularities;
 
 - the Annual Accounts have been prepared on a going concern basis.
 
 
 WRITING-OFF OF ACCUMULATED LOSSES OF THE COMPANY AGAINST THE SECURITIES
 PREMIUM ACCOUNT AND SHARE CAPITAL OF THE COMPANY
 
 
 Reduction of Share Capital: As already reported in the 15th Annual
 Report, as per the Order dated 04-08-2008 of the High Court of
 Judicature at Madras, the whole amount of Rs. 17,52,09,000/- being
 the credit balance lying in the Securities Premium Account stands
 reduced fully, and also the Company''s paid-up Share Capital stands
 reduced from Rs.  19,22,82,380/- divided into 1,92,28,238 equity Shares
 of Rs. 10/- each to Rs. 14,93,90,380/ divided into 1,49,39,038 equity
 Shares of Rs.10/-each for which the Company is in the '' process of
 corporate action to give effect to the scheme of capital reduction.
 
 CORPORATE GOVERNANCE
 
 A detailed report on this subject forms part of this Report.
 
 FIXED DEPOSITS:
 
 Our Company has not accepted any fixed deposits under section 58AA of
 the Companies Act, 1956 from the public during the year underreview
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND , FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The statement pursuant to Section 217 (1) (e) of the Companies Act 1956
 read with Companies (Disclosure of Particulars in the Report of the
 Board of Directors) Rules 1988 is given in the annexure forming part of
 this Report.
 
 PARTICULARS OF EMPLOYEES
 
 No employee of the Company was paid remuneration in excess of limits
 prescribed under Section 217 (2A) of the Companies Act, 1956, read with
 the relevant Rules as amended.
 
 PERSONNEL
 
 The Directors express their appreciation for the support and
 contribution by the employees at all levels rendered to the Company
 during the year under review.
 
 INDUSTRIAL RELATIONS
 
 Your Company continues to maintain harmonious and cordial relations
 with its workers.  
 
 ACKNOWLEDGEMENT
 
 Your Directors would like to place on record their deep appreciation
 and gratitude to the Company''s members for their continued support
 and confidence.
 
 Your Directors wish to thank and deeply acknowledge the co-opearation
 and assistance extended by the Bankers, Government authorities, and
 other business associates. The Board would also take this opportunity
 to commend the employees of the Company at all levels for their
 contribution to the Company''s success.
 
                                          (By Order of the Board)
 
                                         For NEPC Textiles Limited
 
                                                   Sd /-
 
                                           Ravi Prakash Khemka 
 
                                                 Chairman
 
 PLACE : Chennai
 
 DATE : 28-10-2011