TO The Members of RISHAB SPECIAL YARNS LIMITED JAIPUR
 
 The Board of Directors here with presents the Twenty Fourth Annual
 Report together with Audited Statement of Accounts of the Company for
 the year ended on 31st March, 2012.
 
 FINANCIAL RESULTS                             Amount in rupees
 
                                                     2012         2011
 
 Net Sales/ Income From Operations
 
 Other Income                                      886000       866000
 
 Profit/(Loss) before depreciation, 
 finance cost,                                      66989       329072
 
 Exceptional items & taxes.
 
 Less: Finance Cost                                  3695            - 
 
 Profit(Loss) before depreciation,                  63294       329072
 
 Exceptional items & taxes.
 
 Less: Depreciation                                417278       417278
 
 ProfitV(Loss) before exceptional items & taxes  (353984)      (88206)
 
 Exceptional items: Profit on sale of 
 land & building                                        -      3430259
 
 ProW(Loss) before tax                           (353984)      3342053
 
 Provision for Taxation
 
 Profit/(Loss) after tax                         (353984)      3342053
 
 Balance Brought forward from 
 the last year                                (110154053)  (113496106)
 
 Balance Carried to Balance Sheet             (110508037)  (110154053)
 
 
 
 
 PERFORMANCE
 
 Due to financial constraints, manufacturing activities stood
 discontinued. During the year under review company has booked a loss of
 Rs. 3.54 lakhs, the company has now been able to pay off all its
 secured lenders and can now look forward to a new beginning. The
 management is examining various options to gainfully utilize factory
 assets at Abu Road.
 
 FUTURE PROSPECTS
 
 Among others the Company is examining the possibility of putting up the
 Granite cutting and polishing unit, PET Bottle and Polypropylene
 Recycling and manufacturing of other plastics products. The proposed
 new activities shall be finalized and implemented based on final view
 of board and availability of funds. The Company intends to use
 available land & building for these activities, if finalized. Also,
 reviving of the activity of textunsing of polyester yarn (part of
 existing business) is under consideration but deferred till change in
 indirect tax structure or GST regime, is made applicable, at a new
 location identified by the management. As soon as the management is
 able to finalize any business plans, it shall keep the valued
 shareholders informed through available mode of communications.
 
 CORPORATE GOVERNANCE
 
 The company has complied with all the mandatory requirements of the
 Corporate Governance specified under clause 49 of the listing
 agreement. As required by the said clause a separate report on
 corporate governance forms part of the Annual Report as Annexure - I. A
 report from the Statutory Auditors of the Company regarding compliance
 of conditions of corporate governance is part of this report as
 Annexure - II.
 
 MANAGEMENT DISCUSSION & ANALYSIS
 
 This has been included as a separate Annexure - III to this Report.
 
 DIVIDEND
 
 In view of the current year loss and carried forward losses, your
 directors are unable to declare any dividend.
 
 FIXED DEPOSITS
 
 The company has not accepted any fixed deposit from the public within
 the meaning of Section 58-A of Companies Act, 1956 and the Companies
 (Acceptance of Deposit) Rules. 1975 during the year.
 
 DEPOSITORY SYSTEM
 
 The company''s shares are not tradable in electronic form. Although the
 company has appointed Share Transfer Agent but the formalities of
 dematerlisation are yet to be completed. As soon as this is done,
 trading of company''s shares shall commence in demat form.
 
 DIRECTORS
 
 Shri Pradeep Kumar Loiwal and Shri Kamal Kishore Kalani, Directors of
 the Company retire by rotation pursuant to Section 256 of the Companies
 Act, 1956 and being eligible offer themselves for reappointment.
 
 AUDITORS
 
 The firm of auditors M/s N. C. Dhadda & Co. Jaipur was dissolved and
 they seize to be Auditors of the Company. To fill the casual vacancy
 your Board of Directors in their meeting held on 01.09.2012 appointed
 M/s Jain Shrimal & Co., Chartered Accountants, Jaipur as auditors of
 the Company to hold office of auditors till the conclusion of next
 Annual General Meeting. M/s Jain Shrimal & Co., Chartered Accountants,
 Jaipur retire on the conclusion of the Annual General Meeting of the
 Company and being eligible have given their consent for re-appointment.
 Your Directors recommend their appointment.
 
 ENVIRONMENT
 
 M/s. Rishab Special Yarns Ltd. is committed to minimize the
 environmental impact of its operations on its products by adopting
 sustainable practices
 
 and continuous improvements in environmental performance.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 In compliance of section 217 (2AA) of the Companies Act, 1956, your
 directors confirm that:
 
 1.  In the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures.
 
 2.  The directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent as to give a true and fair view of the state of the affairs
 of the company at the end of financial year and of the loss of the
 company for that period.
 
 3.  The directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of Companies Act, 1956 for safeguarding the assets of the
 company and for preventing and detecting fraud and other irregularities
 
 4.  The directors had prepared the annual accounts based on their
 decision to stop operation at its Abu Road plant.  CONSERVATION OF
 ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO :
 
 Information in accordance with Section 217 (1) (e) of the Companies
 Act, 1956 read with the Companies (Disclosure of particulars in Report
 of Board of
 
 Dirctors) Rules, 1988 are set out in Annexure-IV forming part of the
 Report.
 
 EMPLOYEES
 
 None of the employees of the company is in receipt of remuneration of
 Rs. 60,00,000/- or more per annum, if employed for whole of the year or
 of Rs 5,00,000/- or more per month, if employed for part of the year.
 
 ACKNOWLEDGEMENT
 
 The Board gratefully acknowledges the co-operation and support given by
 the Shareholders, Banks, Financial Institutions and others.
 
 Jaipur                        For & on behalf of the Board of Directors
 
 Date : 01/09/2012
 
                                               Managing Director