The Members of
 
 Precision Electronics Ltd.,
 
 The Directors have pleasure in presenting the 32nd Annual Report on
 the business and operations of the Company along with the Audited
 Statements of Accounts for the financial year ended March 31,2011.
 
 1. FINANCIAL RESULTS
 
 Your Company''s performance during the year as compared with that during
 the previous year is summarized below:
 
                                                    (Rs. in Million)
 
 I PARTICULARS                          CURRENT YEAR    PREVIOUS YEAR
 
 Revenue*                                        258              299
 
 Profit before Depreciation, 
 Interest, & Tax                                  28               30
 
 Depreciation                                     17               18
 
 Net Profit before Tax                             2                1
 
 Provision for Tax**                              (1)               1
 
 Net profit after Tax                              3             0.02
 
 Profit brought forward from Balance 
 Sheet                                            99               99
 
 Amount available fro appropriation              102               99
 
 Appropriation: Transfer to
 General Reserve                                   -                - 
 
 Profit Carried forward to Balance Sheet         102               99
 
 
 *Revenue is net of Excise duty, VAT, Sales tax & Service Tax.
 **Provision for tax is in negative due to Deferred Tax.
 
 2. DIVIDEND
 
 In view of conservation of financial resources of the Company, your
 directors do not recommend any dividend for the financial year under
 review.
 
 
 12. REGISTRAR & TRANSFER AGENT
 
 The Registrar and Transfer Agent is: 
 M/s Skyline Financial Services Pvt. Ltd.  
 D-153/AFirst Floor, Okhla Industrial Area 
 NewDelhi-110020
 ContactNo.-Ol 1-30857575
 
 13. ENVIRONMENTAL PROTECTION, HEALTH AND SAFETY
 
 During the year, the Company enhanced its efforts to address to Health,
 Safety and Environment matters and attain sustainable performance at
 all workplaces and beyond. As responsible Corporate Citizen your
 Company act on the belief that environment protection are not just
 preferred responses but our basic responsibility and the right way to
 do business.
 
 The Safety & Health of employees and external stakeholders are embedded
 in the core organizational values of the Company. The HSE policy aims
 to ensure safety of public employees, plant & equipment, ensure
 compliance with all statutory rules and regulations, imparting training
 to its employees, carrying out safety audits of tis facilities, and
 promoting eco - friendly activities.
 
 The Company continues to maintain excellent track record on safety. The
 site had no accidents during the year 2010-11.  PEL also has Workman
 Safety Committee under section 41G of Factories Act 1948. This
 Committee meets at regular intervals to take measures for worker''s
 protection in order to make PEL a safe place to work.
 
 14. PARTICULARS OF CONSERVATION OF ENERGY, ABSORPTION OF TECHNOLOGY AND
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 The information relating to conservation of energy, as required under
 Section 217( 1) (e) of the Companies Act, 1956 read with the Companies
 (Disclosure of particulars in the Report of Board of Director) Rules
 1988 is annexed hereto marked Annexure-1 and form part of this Report.
 
 15. CORPORATE GOVERNANCE
 
 In compliance with the requirements of Clause 49 of the listing
 Agreement with BSE, a separate report on Corporate Governance along
 with theAuditors'' Certificate on its compliance forms a part the Annual
 Report.
 
 16. FIXED DEPOSITS
 
 The Company has not invited or accepted any fixed deposits from the
 public under section 58A of the Companies Act, 1956 during the year
 under review and hence no amount of principal or interest was
 outstanding as of the Balance Sheet date.
 
 17. DIRECTORS
 
 The Board consists of Executive and Non-Executive Directors including
 Independent Directors who have wide and varied experience in different
 disciplines of corporate functioning.
 
 In accordance with the provisions of Section 256 of the Companies Act,
 1956 and Article 133 of the Article of Association of the Company, Sh.
 Rahul Goenka and Sh. S C Choudhary, Directors of the Company retire by
 rotation at me ensuing Annual General Meeting and being eligible, offer
 himself for re-appointment. The resolution for the same has been
 included in the notice of Annual Report scheduled to be held on 10th
 September,2011.
 
 18. DIRECTOR''S RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956 with respect
 to Directors Responsibility Statement, it is hereby confirmed:
 
 1) That in me preparation of the accounts for the financial year ended
 31st March,2011 the applicable accounting standards have been followed
 along with proper explanations relating to material departures;
 
 2) 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 of die Company for me year under review.
 
 3) That the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with me
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 4) That the Directors have prepared the accounts for the financial year
 ended 31 March, 2011 on a ''going concern''basis.
 
 19.AUDITORS
 
 The Statutory Auditors of the Company, M/s Rajendra K. Goel & Co.,
 retire at this year''s Annual General Meeting and have sought their
 re-appointment. M/s Rajendra K. Goel & Co., Chartered Accountants, New
 Delhi has confirmed that their re-appointment, if made, would be within
 the prescribed limits under Section 224( 1 -B) of the Companies Act,
 1956.
 
 Their being no audit observations in Auditors'' Report, no further
 explanations are required.
 
 20. LISTING OF SECURITIES
 
 The Shares of the Company are listed with BSE, Pheroze Jeejeebhoy
 Towers, Dalai Street, Mumbai. (Scrip Code: 517258). It is confirmed
 that the Company has paid Annual Listing Fee upto the current financial
 year to BSE.
 
 21. PARTICULARS OFTHE EMPLOYEES
 
 There was no employee in the Company who if employed throughout the
 year was in receipt of remuneration of Rs. 60,00,000/- per annum and
 above and if employed for the part of year was in receipt of
 remuneration of Rs.5,00,000/- per month and above. Thus, the provisions
 of Section 217(2A) of the Companies Act, 1956 read with the Companies
 (Particulars of Employee) Rules, 1975 are not applicable.
 
 22.ACKNOWLEDGMENTS
 
 Your Directors express their deep appreciation and gratitude for the
 valuable support received from Punjab National Bank, its customers,
 business associates and shareholders and look forward to similar
 support and co-operation in future.  Your Directors appreciate the
 sincere efforts put in by the employees at all levels, which enabled
 the Company to achieve the performance during the year.
 
 
 
                                       FOR AND ON BEHALF OF THE BOARD
 
                            (ASHOK KANODIA)         (PRADEEP KANODIA)
                            Managing Director      Executive Director
 
 Place: New Delhi 
 Date: 18.05.2011