The Directors have pleasure in presenting the 26th Annual Report of
 your Company, together with the Audited Statement of Accounts for the
 year ended 31st March, 2011.
 
 FINANCIAL RESULTS
 
 Your Company’s performance during the year as compared with that during
 the previous year is summarized below:
 
                                                   (Figures in Rs. lakh)
 
                                           Year ended         Year ended
                                           31.03.2011         31.03.2010
 
 Sales and other income                       4406.06            2894.98
 
 Profit before Depreciation and Tax            362.39             255.42
 
 Depreciation                                   40.40              35.92
 
 Interest and Finance Charges                  171.09             106.07
 
 Profit before Tax                             150.90             113.43
 
 Income Tax                                     34.11              20.91
 
 Prior Year Exp                                  2.08               3.18
 
 MAT Credit Entitlement                         29.36              21.06
 
 Net Profit / (Loss)                           144.07             110.40
 
 Add: Profit / (Loss) for previous year 
 brought forward                               219.71             109.32
 
 Surplus / (Deficit)                           363.78             198.69
 
 Appropriations:                                28.31                  -
 
 Balance carried forward to the Balance Sheet  335.47             219.71
 
 PERFORMANCE DURING THE YEAR
 
 Sales and other Income of the Company for the year is Rs. 4406.06 lakh
 as compared to Rs. 2894.98 lakh in the previous year, showing an
 increase of 52%. Profit before Interest and Depreciation for the
 current year is Rs. 362.39 lakh which is 42% higher than the preceding
 year which was Rs. 255.42 lakh. Profit after tax is Rs. 144.07 lakh
 which is 30% higher than the preceding year which stood at Rs. 110.40
 lakh.
 
 DIVIDEND
 
 The Board of Directors are pleased to recommend payment of dividend on
 equity shares at Rs. 0.50/- per equity share (i.e.  at the rate of 5
 %), subject to approval by the Shareholders at the Annual General
 Meeting.
 
 DIRECTORS
 
 During the year under review, Mr. B. D. Topiwala resigned from the
 directorship of the Company. The Board appreciated the valuable
 contribution done by the Director. Ms. Aartii Topiwaala was appointed
 as Additional Director on 31st March 2011 to hold office till the
 ensuing Annual General Meeting.
 
 FIXED DEPOSITS
 
 The Company has not accepted any Fixed Deposits from the Public, during
 the current year under review.
 
 PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
 FOREIGN EXCHANGE EARN- INGS AND OUTGO.
 
 Information pursuant to Section 217(1)(e) of the Companies Act, 1956
 read with Companies (Disclosure of Particulars in the Report of Board
 of Directors) Rules, 1988 is annexed herewith as Annexure – A and forms
 part of this report.
 
 AUDITORS
 
 The Statutory Auditors of the Company, M/s R.U. Jain & Co., Chartered
 Accountants, retire at the ensuing Annual General Meeting of the
 Company and being eligible, offer themselves for reappointment and
 confirm that their re-appointment, if made, would be within limits
 under Section 224(1B) of the Companies Act, 1956.
 
 AUDITORS’ REPORT
 
 Auditor’s Report is self-explanatory and therefore, it does not call
 for any further comments and explanations.  Explanation on Auditors’
 Remarks in the Audit Report
 
 1.  In respect of non provision for doubtful debts, the Company is in
 process to recover the amount of Rs. 3,69,092 and hence the same has
 not been provided in the books.
 
 2.  In respect of deferred assets of Rs. 9,93,090, the same has not
 been accounted considering the prudence and also it is not certain that
 sufficient future taxable income will be available against which such
 deferred assets can be realised.
 
 3.  In respect of gratuity, the Company pays the gratuity as per
 Gratuity Act, to only those employees, who have completed five years
 of service in the Company.
 
 PARTICULARS OF EMPLOYEES AND DISCLOSURE OF INFORMATION
 
 There was no employee in the Company employed throughout the financial
 year 2010-11 or part thereof, who was in receipt of remuneration in the
 year which, in the aggregate, or as the case may be was at a rate which
 in aggregate, was more than the revised limits prescribed under Section
 217 (2A) of the Companies Act, 1956 and hence disclosure of the
 particulars of employees as required under Section 217(2A) of the
 Companies Act, 1956, read with Companies (Particulars of Employees)
 Rules, 1975 is not required.
 
 CORPORATE GOVERNANCE
 
 The Company is committed to uphold the highest standards of corporate
 governance and adhere to the requirements set out by the Securities and
 Exchange Board of India.
 
 A detailed report on Corporate Governance pursuant to the requirements
 of Clause 49 of the Listing Agreement forms part of the Annual Report.
 A certificate from the Statutory Auditors of the Company, M/s. R.U.
 Jain & Co., Chartered Accountants, confirming compliance of conditions
 of corporate governance as stipulated under the aforesaid Clause 49 is
 provided in this report.
 
 DIRECTORS’ RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
 1956, your Directors state and confirm that:
 
 i) In the preparation of the annual accounts, the applicable accounting
 standards had been followed along with proper explanation relating to
 material departures;
 
 ii) 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 as on March 31, 2011 and of the profit of the Company
 for the year ended March 31, 2011;
 
 iii) 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) The Directors have prepared the annual accounts of the Company on a
 going concern’ basis.
 
 ACKNOWLEDGEMENTS
 
 Your Directors wish to take this opportunity to express their
 appreciation and gratitude for the continued support from its Financial
 Institutions, Bankers, Suppliers and various Government Agencies.
 
 Your Directors also express sincere appreciation for the commitment and
 dedicated services rendered by each employee of the Company at all
 levels.
 
                          For and on behalf of the Board of Directors
                            of Paramount Cosmetics (India) Limited
 
 Dated: 31 August 2011                     HitteshBT
 
 Place: Bangalore                      Managing Director