To The Members of SARDA PAPERS LIMITED
 
 The Directors are presenting the 21st Annual Report on the business &
 operation of your Company together with the Audited Accounts for the
 year ended 31st March, 2012
 
 1.  FINANCIAL RESULTS                  YEAR ENDED            YEAR ENDED
                                        31/03/2012            31/03/2011
                                     (Rs. In Lacs)        ( Rs. In Lacs)
 
 
 
 Profit/(Loss) before Depreciation          2.85               (23.86)
 
 Less: Depreciation                        (6.47)               (7.05)
 
 Net Profit / (Loss) before Tax            (3.62)*             (30.91)
 
 Less : Provision for Tax                   0.00                 0.00
 
 Deferred Tax                               0.00                47.86
 
 Net Profit / (Loss) after Tax             (3.62)               16.95
 
 Less: Prior period items                   0.00                32.00
 
 Balance of Profit/(Loss)                  (3.62)              (15.05)
 
 Less/(Add) : Loss Brought Forward       (676.87)             (661.82)
 
 Balance of Loss carried to 
 Balance Sheet                           (680.49)             (676.87)
 
 1.  DIVIDEND
 
 In view of the losses, your Directors are unable to recommend any
 dividend for the year.
 
 2.  PERFORMANCE AND OPERATIONS
 
 As you are aware that your Company had suspended the manufacturing
 operation from June 2009 due to unfavorable market condition and
 continuous losses.
 
 You are aware that the Company has been declared a Sick Industrial
 Company in terms of Section 3(1) of Sick Industrial Companies (Special
 Provision) Act, 1985 on 10.06.2009 and your Directors have submitted
 rehabilitation proposal of the Company In consultation with State Bank
 of India (Operating Agency) as per the direction given by the BIFR and
 have submitted a proposal for reverse merger of a healthy Company,
 which is under consideration with BIFR. Preliminary hearing has taken
 place and on approval of the scheme, your company shall resume the
 manufacturing operations.
 
 3.  PAYMENT OF SECURED LOANS
 
 During last year Company had taken short term loans from a Company and
 discharged its total term loan liability of State Bank of India. Now
 with a view to re-pay the said loan liability, Company is proposing the
 issue Redeemable Preference Shares to the said lender and therefore
 intend to raise its Authorized Share Capital by Rs. 425 Lacs.
 Accordingly Company is seeking permission from the Members to raise the
 Share Capital of the Company and proposing a Ordinary Resolution as
 special business in the accompanying notice of the meeting.
 
 4.  DIRECTORS
 
 Shri Divya M. Shah, Director retire by rotation at the forthcoming
 Annual General Meeting of the company and being eligible offered
 himself for re-appointment.
 
 5.  AUDITORS
 
 M/s. Malpani and Associates, Chartered Accountants statutory auditors
 of the Company retire at the forthcoming Annual General Meting and,
 being eligible, offer themselves for re-appointment. The Company has
 received a certificates from them under Section 224(1-B) of the
 Companies Act, 1956.
 
 6.  AUDITOR''S REMARK
 
 Observation made in the Auditors Report are self explanatory and
 therefore do not call for any comment.
 
 7.  DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement under Section 217(2AA) of the Companies
 Act, 1956, with respect to Director''s Responsibility Statement, it is
 hereby confirmed:
 
 i. That in the preparation of annual accounts the applicable mandatory
 standards except AS 22 and AS 28 have been followed along with proper
 explanations relating to material departures ;
 
 ii. That the Directors had selected such accounting policies and
 applied them consistently in the Financial Statement 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 as at 31s* March 2012
 and of the loss of the company for the year ended on that date.
 
 iii. The Directors had 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.
 
 iv.  The Directors had prepared the accounts for the financial year
 ended 31s* March, 2012, on a going concern basis.
 
 8.  FIXED DEPOSIT
 
 The Company has not accepted any deposits from the public during the
 year.
 
 9.  STATEMENT PURSUANT TO LISTING REQUIREMENTS
 
 The Equity Shares of the Company are listed with the Bombay Stock
 Exchange Limited and Company had paid the Annual Listing Fees for the
 financial year 2012-2013.
 
 10.  CORPORATE GOVERNANCE
 
 A separate report on corporate governance form part of the Annual
 Report of the Company along with compliance certificate from the
 Practising Company Secretary regarding compliance of conditions of
 Corporate Governance as stipulated under clause 49 of the amended
 listing agreements. Further a separate Management Discussion & Analysis
 Report is also enclosed with this report.
 
 11.  SECRETARIAL COMPLIANCE REPORT
 
 Your Directors attach herewith a copy of the Compliance Certificate
 issued by a Practicing Company Secretary for the year ended 31st March,
 2012 pursuant to Section 383A(1) of the Companies Act, 1956.
 
 12.  PARTICULARS OF EMPLOYEES
 
 Particulars of employees within the meaning of Section 217 (2A) of the
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules, 1975 as amended have not been furnished as there''was no employee
 in the aforesaid category.
 
 13.  CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 A statement giving details of conservation of energy, technology
 absorption and foreign exchange earning and outgo in terms of the
 Companies (Disclosure of particulars in the Report of the Board of
 Directors) Rules, 1988, is annexed hereto and form part of this report.
 
 14.  ACKNOWLEDGEMENTS
 
 Your Directors wish to place on record their appreciation of the
 continued support and valuable co-operation received from the Company''s
 Bankers, Institutions, Customers, Suppliers and Shareholders.
 
 Your Directors also wish to place on record their appreciation of the
 devoted services of the company''s employee, which have in great way
 contributed to the Company''s progress.
 
                                              For and on behalf of Board
 
 Place: Mumbai                                    Pradeep Kumar Sarda
 
 Date : 30m May, 2012                                  Chairman