The Directors have pleasure in presenting the 18th Annual Report
 together with the audited Accounts of the Company for the year ended
 31st March, 2011.
 
 FINANCIAL RESULTS
 
                                                          (In Rupees)
 
 Particulars                                31.03,2011    31.03.2010
 
 Turnover                                    208005391     197745732
 
 Profit/(Loss) before Interest &              31843612      32992525
 Depreciation
 
 Interest & Depreciation                      18615529      18633099
 
 Profit before Tax (PBT)                      13228083      14359426
 
 Net profit after tax (PAT)                   11524081      13014201
 
 
 DIVIDEND
 
 In view of need to conserve and plough back Company''s resources to fund
 the future expansion plans, your Directors do not propose any dividend
 this year.
 
 OPERATING RESULTS
 
 During the year under review, your Company put in a concerted effort
 towards increasing efficiency and product development, product quality,
 product branding to increase the market reach. Turnover for the year is
 marginally increased to Rs.2080.05 against Rs.1977.45 Lacs during
 previous year.  However due to increase in value of Dollar, Euro and
 Yen the cost of raw material increased which resulted in increase of
 cost of production and for that reason profit after tax for the
 financial year 2011 is reduced to Rs.115.24. Lacs as against Rs.130.14
 Lacs of previous year. The Company is hopeful in achieving much better
 performance in the current year.
 
 The Consolidated financial results during the year including that of
 100% Subsidiary Company is as follows:
 
 Sales               :        30945.47 Lacs
 
 Profit before Tax   :        780.09 Lacs
 
 Profit after Tax    :        553.37 Lacs
 
 
 FUTURE OUTLOOK
 
 Your Company has developed new quality products at competitive prices
 to face global competition and to tap fast growing market of laser
 toners.
 
 The fluctuation in foreign currency and tough competition in the
 international market will continue to be a challenge but your Company
 foresees batter sales turnover and increased demand of its quality.  
 products.
 
 The Plant and Machinery for the ongoing Expansion program has arrived
 from Germany and will be installed shortly. Your Directors are hopeful
 of getting commercial production from the enhanced capacity from the
 Third Quarter of the Financial Year 2011-2012.
 
 SUBSIDIARY COMPANY
 
 The name of wholly owned Subsidiary Company Rathi Rajasthan Steel Mills
 Limited has changed and the new name is RGTL Industries Limited
 w.e.f.  21.06.2011.
 
 PUBLIC DEPOSITS
 
 The Company has not invited or accepted any deposits during the year
 from the public under Section 58A of the Companies Act, 1956.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Company''s Articles of Association Shri Sandesh Kumar Jain is liable to
 retire by rotation at the ensuing Annual General Meeting and is
 eligible for re-appointment. He is a Practicing Chartered Accountant
 having more than 20 years of experience. He is Financial and Management
 Services expert. He has confirmed that he has not incurred any
 disqualification under Section 274(1) (g) of the Companies Act, 1956
 and they are eligible to be re-appointed as Directors of the Company.
 
 AUDITORS
 
 M/s A. K. Maheshwari & Associates, Chartered Accountants, Statutory
 Auditors of the Company, hold office until the conclusion of the
 ensuing Annual general meeting and are eligible for re-appointment.
 
 The Company has received letters from M/s A. K.  Maheshwari &
 Associates, Chartered Accountants, to the effect that their
 appointment, if made, would be within the prescribed limits under
 section 224(1 B) of the Companies Act,1956, and that they are not
 disqualified for such appointment within the meaning of section 226 of
 the Companies Act, 1956.
 
 NOTES ON ACCOUNTS
 
 The notes to the accounts referred to by the Auditors in their report
 are self-explanatory and may be treated as information/explanation
 submitted by the board as contemplated under Section 217(3)of the
 Companies Act 1956.
 
 PARTICULARS OF EMPLOYEES
 
 During the year under review, Shri Raj Kumar Rathi, Managing Director
 of the Company falls under the terms of Section 217(2A) of the
 Companies Act, 1956 read with the companies (Particulars of Employees)
 Rules, 1975.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 Pursuant to Clause 32 and 50 of the Listing Agreement, Your Company
 has prepared Consolidated Financial Statements as per the Accounting
 Standards applicable to the Consolidated Financial Statements issued by
 the Institute of Chartered Accountants of India. Audited Consolidated
 Financial Statements along with the Auditor''s Report are annexed with
 this Report.
 
 CONSERVATION OF ENERGY
 
 The Company has a continuous monitoring system to minimize the energy
 consumption per unit of toner manufacturing.
 
 TECHNOLOGY ABSORPTION
 
 The Company has fully absorbed the technology for manufacturing toners
 used in three brands of photocopier Machines.
 
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Sub-Section (2AA) of Section 217 of the
 Companies Act, 1956 with respect to Directors'' Responsibility
 Statement, your Directors confirm:
 
 i) That in the preparation of the Annual Accounts, the applicable
 Accounting Standards have been followed.
 
 ii) That your Company had selected such accounting policies and applied
 them consistently and made judgments and estimates that were 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 as on 31st March, 2011
 and of the profit & loss account of the Company for that period.
 
 iii) That your Company had 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.
 
 iv) That the accounts of your Company have been prepared on going
 concern basis.
 
 LISTING OF SHARES
 
 The equity shares of the Company are presently listed at The Bombay
 Stock Exchange Ltd (BSE).  The Company has duly paid the listing fees
 to the exchanges.
 
 CORPORATE GOVERNANCE REPORT
 
 The report on Corporate Governance as stipulated under Clause 49 of the
 Listing Agreement with stock exchanges, form part of the Annual Report.
 
 A certificate from the Auditors of the Company M/S A.  K. Maheshwari &
 Associates, Chartered Accountants, confirming compliance with
 conditions of Corporate Governance as stipulated under the aforesaid
 clause 49, is annexed to this Report.
 
 INDUSTRIAL RELATIONS
 
 During the year, your Company maintained harmonious and cordial
 industrial relations.
 
 ACKNOWLEDGEMENTS
 
 Your Directors would like to express their sincere appreciation of the
 co-operation and assistance received from shareholders, bankers,
 regulatory bodies and other business constituents during the year under
 review.
 
 Your Directors also wish to place on record their deep sense of
 appreciation for the commitment displayed by all executives, officers
 and staff, resulting in the successful performance during the year.
 
 
                                     For and on behalf of the Board
  
                        Raj Kumar Rathi                Sandesh Jain
 
                      Managing Director                    Director
 
 Place: New Delhi
 
 Dated: August 29, 2011