To, The Members of Safal Securities Ltd.
 
 The Directors have pleasure in presenting the Annual Report together
 with the Audited Statement of Accounts for the year ended 31st March,
 2012.
 
 FINANCIAL RESULTS:
 
 The summarized financial results for the year ended 31st March, 2012
 are as under:
 
                                               (Rs. in Lacs) 
 
 Particulars                      2011-2012        2010-2011
 
 1.  Profit before Interest, 
     Depreciation and Tax             5.10           3.08
 
 2.  Interest 
 
 3.  Depreciation
 
 4.  Profit (Loss) Before Tax         5.10           3.08
 
 5.  Provision for taxation           1.60           0.63
 
 6.  Profit (loss) after Tax          3.50           2.45
 
 DIRECTORS :
 
 Mr. Mukesh B. Desai director of the Company retires by rotation at this
 annual general meeting and being eligible, offers himself for
 reappointment. The board of directors recommends the appointment of the
 directors.
 
 DIVIDEND :
 
 Your director do not recommend dividend for the year.
 
 FIXED DEPOSITS:
 
 The company has not accepted the fixed deposits during the year under
 report.
 
 AUDITORS :
 
 D. A. Rupawala & Associates, Auditors of the Company retires at the
 conclusion of this Annual General Meeting and being eligible, are
 recommended for reappointment.
 
 AUDITORS REPORT:
 
 The Auditors report is self-explanatory and so far, there is no
 negative remark by the Auditors.
 
 DIRECTORS RESPONSIBILITY STATEMENT :
 
 Pursuant to the requirement under section 217 (2AA) of the Companies
 Amendment Act, 2000 with respect to Director Responsibility Statement
 it is hereby confirmed:
 
 1.  That in the preparation of the annual accounts for the financial
 year ended 31st March, 2012 the applicable accounting standards had
 been followed along with proper explanation relating to''material
 departures.
 
 2.  That the directors had selected such accounting policies and
 applied them consistently and made judgments and estimates lhat 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 and of the
 profit of loss of the Company for the year under review.
 
 3.  That the directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provision 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 had prepared the accounts for the financial year
 ended 31st March, 2012 on a going concern basis.
 
 CORPORATE GOVERNANCE :
 
 As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
 separate section, on Corporate Governance together with a certificate
 from the Company''s Auditors confirming compliance there to is set out
 in the Annexure forming part of this report.
 
 LISTING:
 
 The shares of the Company are listed on Ahmedabad and Bombay Stock
 Exchange Limited.
 
 PARTICULARS OF THE EMPLOYEES :
 
 The Company has no employee to whom the provision of Section 217(2A) of
 the Companies Act, 1956 read with the Companies (Particulars of
 Employees) Rules, 1975 apply and so it is not-applicable to the
 company.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUT GO :
 
 The additional information required under Section 217(1)(e) of the
 Companies Act, 1956 relating to Conservation of energy, technology
 absorption and foreign exchange earnings or outgoes is not applicable.
 
 ACKNOWLEDGMENT :
 
 The Directors wish to thank and deeply acknowledge the cooperation and
 assistance received from the Bankers, Suppliers and shareholders. The
 Director also wishes to place on record their appreciation of the
 devoted services of employees of the Company:
 
 DATE : 17.04.2012           FOR AND ON BEHALF OF THE
 
 PLACE: AHMEDABAD            BOARD OF DIRECTORS
  
                                 Sd/- 
                               CHAIRMAN