The Directors are pleased to present the 21st Annual Report and the
 Audited Accounts of the Company for the year ended 31st March, 2012.
 
 SUMMARISED FINANCIAL RESULTS
 
 The Summarized Financial Results of the Company for the year ended 31st
 March, 2012 were as follows.
 
                                         2010-2011      2011-2012
 
                                     (Rs. in lacs)   (Rs.in lacs)
 
 Total Revenue                           11412.95       10424.96
 
 Gross Profit before Interest & 
 Depreciation                              934.37        (464.70)
 
 Less: Interest                             68.09          24.04
 
 Less: Depreciation                        453.90         449.49
 
 Net Profit/(Loss) for the Year            412.38        (938.23)
 
 Less: Provision for tax                   223.82        (337.96)
 
 Less: MAT Credit Entitlement             (174.63)          0.00
 
 Profit after Tax                          363.19        (600.27)
 
 Add Balance Brought Forward from
 previous year                             535.76         898.95
 
 Balance available for appropriation       898.95         298.68
 
 Transfer to Reserves                        NIL            NIL
 
 Surplus Carried to Balance Sheet          898.95         298.68
 
 DIVIDEND
 
 In view of the loss incurred during the financial year 2011-12, the
 Board expresses their inability to declare any dividend for the current
 financial year.
 
 OPERATIONS
 
 During the year under review the company successfully manufactured
 nylon yarn along with its existing capacities of polyester yarn. This
 has made the company more diversified.
 
 Your Directors hereby report that during the year under review, the
 gross turnover of the company was marginally lower at Rs. 12096.03 lacs
 for the year ended 31.03.2012 as compared to Rs. 13152.68 lacs for the
 corresponding year ended on 31.03.2011.
 
 Fluctuation in raw material prices coupled with competitive pressures
 continued to hamper the profitability of the Company. Moreover, the
 increase in the cost of major inputs could not be entirely passed on to
 the customers.
 
 Under the present scenario the Company is focusing on increased
 productivity through optimal utilization of production capacity and
 reduction in operating costs.
 
 BOARD OF DIRECTORS
 
 Under section 256 of the Companies Act, 1956 and as per the provisions
 of Articles of Association of the Company, Shri Ashok Jain, Shri
 Kailaschand Jain and Shri Harshad Patel retire by rotation and being
 eligible offer themselves for re-appointment. The board recommends
 reappointment of retiring directors.
 
 A brief resume of the Directors proposed to be re-appointed, nature of
 their expertise in specific functional areas etc.  as stipulated under
 Clause 49 of the Listing Agreement entered into with the various Stock
 Exchanges are provided in the report of Corporate Governance forming
 part of the Annual Report.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 In accordance with the provisions of Section 217(2AA) of the Companies
 Act, 1956, the Board of Directors state that:
 
 (i) In preparation of the annual accounts for the financial year ended
 31 March, 2012, the applicable accounting standards have been followed
 along with proper explanations relating to material departures.
 
 (ii) 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 at 31 March 2012 and of the profit of the Company for
 the year ended on that date.
 
 (iii) Directors have taken proper and sufficient care 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; and
 
 (iv) The Directors have prepared the annual accounts of the Company on
 a ''going concern'' basis.
 
 FIXED DEPOSIT
 
 As reported in the year 2011-2012 your Company continued to
 accept\renew deposits and maintained a high standard of service. As on
 31st March, 2012 there have been no defaults in payment of Deposits and
 also no deposits remained unclaimed after maturity.
 
 PARTICULARS OF EMPLOYEES
 
 Particulars of employees required u/s 217(2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules, 1975, as
 amended, are not given, as none of the employee is qualified for such
 of the disclosure.
 
 INSURANCE
 
 The properties and insurable assets and interests of your Company, like
 building, plant and machinery and stocks, among others, are adequately
 insured.
 
 AUDITORS AND AUDITORS REPORT
 
 M/s R. K. G. & Co., Chartered Accountants, 409, Ajanta Shopping &
 Textile Arcade, Ring Road, Surat - 395 002 will cease to hold the
 office at the conclusion of the ensuing Annual General Meeting and are
 recommended for the reappointment.
 
 The Company has received a certificate from the retiring auditors to
 the effect that the appointment if made, will be in accordance with the
 limits specified in section 224 (1B) of the Companies Act, 1956. The
 Board recommends their re-appointment.
 
 Notes forming part of the accounts, which are specifically referred to
 by the Auditors in their report are self-explanatory and therefore, do
 not call for any further comments.
 
 COST AUDITOR
 
 As per the requirement of the Central Government and pursuant to the
 provisions of Section 233B of the Companies Act, 1956, the audit of the
 cost accounts relating to textiles is being carried out every year. The
 Central Government has approved the appointment of M/s M Goyal & Co,
 Cost Accountants having firm registration No. 00051/07/2008 as Cost
 Auditors for conducting cost audit for the financial year 2011-12. The
 cost audit report in respect of financial year 2011-12 will be filed on
 or before the due date. The cost audit report for the Financial Year
 2010-11 which was due to be filed with the Ministry of Corporate
 Affairs on 30th September, 2011 was filed on 26th September, 2011.
 
 CASH FLOW ANALYSIS
 
 The Cash Flow statement for the year ended on 31st March, 2012, in
 terms of Clause 32 of the Listing Agreement entered by the Company with
 the Stock Exchanges where the shares of the Company are listed forms
 part of the Annual Report.
 
 ENERGY CONSERVATION
 
 Information required u/s 217(1)(e) of the Companies Act, 1956 read with
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 relating to conservation of energy, technology
 absorption are as per the Annexure forming part of this Report.
 
 SAFETY HEALTH & ENVIRONMENT
 
 Your company is committed to being proactive to Safety, Health and
 Environment. Continued safety awareness was maintained through several
 activities such as training, competitions, awards, etc. where there is
 high worker participation.
 
 Your Company has ensured eco-friendly disposal of various hazardous
 waste at the designated disposal site recognized by Pollution Control
 Board. In addition, the Company has complied with the environmental
 norms.
 
 CORPORATE GOVERNANCE
 
 Your Company complies with all the mandatory requirements pertaining to
 Corporate Governance, in terms of clause 49 of the Listing Agreement
 with the Stock Exchanges. A report on Corporate Governance as
 stipulated under Clause 49 of the Listing Agreement with the stock
 exchanges, forms part of the annual report.
 
 A separate section on Corporate Governance containing all the
 information as mandated by the Listing Agreement is attached herewith
 and forms a part of this report.
 
 Certificate from the Practicing Company Secretary of your Company
 regarding compliance with the conditions of Corporate Governance as
 stipulated in Clause 49 of the Listing Agreement with the Stock
 Exchange is attached herewith and forms a part of the Corporate
 Governance report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 Management Discussion and Analysis on matters relating to business
 performance, as stipulated in Clause 49 of the listing agreement with
 the stock exchanges, is given as a separate statement in the Annual
 Report.
 
 ACKNOWLEDGEMENTS
 
 Your Directors place on record their appreciation for the continued
 support and co-operation received from customers, suppliers, dealers,
 banks and government authorities. The Board also, expresses its
 appreciation for the understanding and support extended by the
 shareholders and employees of the Company.
 
                                      For and on behalf of the Board
 
 Place : Palsana                    Ashok R. Jain   Jivabhai A. Patel
 
 Date : 31st August, 2012           Managing 
                                    Director            Director