The Directors have a pleasure in presenting the 19th Annual Report
 together with the Audited State- ment of Accounts for the Financial
 year ended 31 st March, 2010.
 
 FINANCIAL RESULTS:                                 (Rs. In Lakhs)
 
 Particulars                              Year ended 
                                          31.03.2010       Year ended 
                                                           31.03.2009
 
 Turnover                                    1843.27         1592.24
 
 Profit before Tax (+) / Loss (-)              25.88           43.06
 
 Provision for Tax                              4.05            4.79
 
 Profit After Tax (+)/Loss (-)                 21.85           38.26
 
 Balance Brought Forward                      166.01          174.33
 
 
 
 OPERATIONS:
 
 Your Company achieved a turnover of Rs, 1843.27 Lacs as compared to Rs.
 1592.24 Lacs in 2008-09 and the net profit after tax stood at Rs. 21.85
 Lacs compared to Rs 38.26 Lacs in the previous year.  Even though the
 Company registered a growth of 15.75% in the turnover for the current
 financial year under review, there is decline in the net profit after
 tax of the Company. This is due to increase in purchases amounting to
 Rs. 18,39,69,902. Such an increase is of 38.98% as compared to the
 previous accounting year.
 
 The Company is committed to continue its efforts for the developmental
 activities and has several plans to sustain and improve the turnover
 and profitability in the future.
 
 OUTLOOK:
 
 The year 2009 presented a lot of uncertainties and grave challenges for
 the Indian economy because of the financial and economic crisis that
 struck the world. But to the delight of the countrymen, India emerged
 from this crisis after having weathered against all odds only to usher
 in an era of sound economic situation aiming for a consistent 9%
 growth. The aim of the government outlined in the budget 2010-11 is to
 achieve inclusive growth by bringing the rural masses within the ambit
 of the development agenda.
 
 The health infrastructure across Indian states is projected to grow by
 an average of 5.8 percent per annum between 2009-2013, taking the total
 expenditure in 2013 to USD 14.2 billion as suggested by the Indian
 Healthcare edition of KPMGs trend monitor. The report states that the
 Indian healthcare industry is estimated to double in value by 2012 and
 more than quadruple by 2017. The main factors propelling this growth
 are rising income levels, changing demographics and illness profiles,
 with a shift from chronic to lifestyle diseases. This is likely to
 result in considerable infrastructure challenges and opportunities.
 
 Financial Budget for 2010-11 is encouraging in terms of increase in
 planned allocation for the Ministry of Health and Family Welfare from
 Rs. 19,534 crore in 2009-10 to Rs.22,300 crore in 2010-11 and reduction
 in customs duty on all medical, surgical, dental and veterinary
 equipment (including parts and accessories) from 7.5% to 5%. These
 goods are also being exempted from special CVD. The basic custom duty
 is exempted on specified inputs used for the manufacture of orthopedic
 implants.
 
 Strengthening food security, improving education opportunities and
 providing health facilities at the level of households, both in rural
 and urban areas are sine-qua-none for inclusive growth to which the
 government and policy makers have attached utmost significance and
 priority. The financial year 2010- 11 marks the beginning of reverting
 to a high growth rate and moving towards greater fiscal consolida- tion
 and economic vibrance. This is going to be a new beginning for all the
 sectors of the economy and thus there is new hope and optimism for each
 of them. Last few years have seen consistent growth in the Indian
 healthcare sector, which has a promising future. And it is expected
 that the reform propos- als enshrined in the budget would help in
 accelerating and sustaining the growth path in the industry.
 Undoubtedly healthcare sector would help India become a global giant
 over the next decade.
 
 DIVIDEND
 
 Keeping in view the Companys need for Capital for its various growth
 plans and the with the intent to finance such plans through internal
 accruals to the maximum your Directors are of the opinion that it is
 prudent that no dividend be declared for the year under review
 
 ALLOTMENT OF SHARES PURSUANT TO CONVERSION OF WARRANTS:
 
 The Company had issued Share Warrants to a tune of 175000 Share
 warrants to the promoters and 200000 Share warrants to non promoters,
 at a price of Rs. 100/- per warrant that are convertible into Equity
 Shares, as determined in accordance with the relevant SEBI (DIP)
 Guidelines, 2000. Such War- rants are convertible at the option of the
 Warrant holders within an aggregate time frame of 18 months from date
 of its allotment to the Warrant holders into 375000 Equity Shares at a
 price of Rs. 100/- per share as determined in accordance with the
 relevant SEBI (DIP) Guidelines, 2000.
 
 Upon receipt of the balance consideration for the same, the Board has
 allotted 2,00,000 Equity Share, in its meeting held on 15th June 2009
 upon conversion of the Warrants in to Equity shares. The Com- pany has
 made the necessary application for listing of these shares with the
 Bombay Stock Exchange Limited.
 
 - Conservation of Energy: The Company is monitoring the consumption of
 energy and is identifying measures for conservation of energy.
 
 - Technology Absorption, adaptation and innovation: No technology
 either indigenous or Foreign is involved.
 
 - Research and Development (R & D): The Company is taking steps to get
 Research and Development work carried out.
 
 - Foreign exchange earnings: NIL
 
 - Foreign exchange out go : NIL
 
 PARTICULARS OF EMPLOYEES:
 
 In pursuance of the provisions of section 217(2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules 1975, the
 Directors report that no employee who was in receipt of remuneration of
 Rs.24, 00,000/- or more per annum or Rs. 2,00,000/- or more per month,
 where employed for a part of the year.
 
 Thus furnishing of particulars under the Companies (particulars of
 employees) Rules 1975 does not arise.
 
 DIRECTORS:
 
 Mr. Sharad Tejshi Shah & Mr. R. Surendra Naidu, Directors, retire by
 rotation at the ensuing Annual General Meeting of the Company and being
 eligible offers himself for re-appoint- ment.
 
 Mr. Rajaram Arjun Rambade, Additional Director of the Company, is been
 proposed to be ap- pointed as a Director liable to retire by rotation
 upon the notice received in writing from a Member of the Company along
 with a deposit of Rs. 500/- signifying his intention to propose the
 said director as candidate for the Office of Directors.
 
 AUDIT COMMITTEE
 
 The Company has an Audit Committee duly constituted as per the
 provisions of Sec 292A of the Companies Act, 1956 and Clause 49 of the
 Listing Agreement and the said Committee has also com- plied with all
 the Legal and Statutory requirements.
 
 AUDITORS AND AUDITORS REPORT:
 
 M/s. A. Singhai & Co., are appointed as Statutory Auditors of the
 Company in place of M/s. P. Mu- rali & Co Chartered Accountants to hold
 office from the conclusion of the ensuing Annual General Meeting upto
 the conclusion of the next Annual General Meeting.
 
 The Company has received letters from the Auditors to the effect that
 their appointment, if made, would be within the prescribed limits under
 section 224(1B) of the Companies Act, 1956 and that they are not
 disqualified for such re appointment within the meaning of section 226
 of the said act.
 
 The notes on accounts referred to in the Auditors Report are
 self-explanatory and therefore do not call for any further comments.
 
 DIRECTORS RESPONSIBILITY STATEMENT UNDER SECTION 217r2AA):
 
 As required under Section 217(2AA) of the Companies Act, 1956 which was
 introduced by the Companies (Amendment) Act, 2000, your Directors
 confirm that:
 
 - In the preparation of the Annual Accounts, the applicable Accounting
 Standards had been followed along with proper explanation relating to
 material departures;
 
 - The Directors had 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 and Loss
 of the Company for the period;
 
 - The Directors had taken proper and sufficient care for the
 maintenance of adequate ac counting records in accordance with the
 provisions of the Act, for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 
 - The Directors had prepared the annual accounts on a going concern
 basis.
 
 STATEMENT PURSUANT TO CLAUSE 38 OF LISTING AGREEMENT:
 
 Presently the Companys Equity shares are listed on and Bombay Stock
 Exchange Limited (BSE) and the Company have paid the Annual Listing
 Fees for the year 2010-11.
 
 CORPORATE GOVERNANCE:
 
 The Securities and Exchange Board of India (SEBI) has prescribed
 certain corporate governance stan- dards vide clause 49 of the Listing
 Agreement. Your directors reaffirm their commitment to these standards
 and a detailed report on corporate governance together with a Auditors
 certificate on its compliance is annexed hereto and forms part of this
 Report.
 
                                 
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
 
 Managements Discussion and Analysis Report for the year under review,
 as stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges in India, is presented in a separate section form- ing part
 of the Annual Report.
 
 INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
 
 The Company maintains appropriate systems of internal control,
 including monitoring procedures and MIS system that define roles and
 responsibilities of people across various levels of the organization to
 ensure that all assets are safeguarded against loss from unauthorized
 use or disposition. Company poli- cies, guidelines and procedures are
 in place to ensure that all transactions are authorized and recorded
 correctly as well as to provide for adequate checks and balances.
 
 Audits are finalized and conducted based on internal risk assessment.
 Significant deviations are brought to the notice of the Audit Committee
 by the Board periodically and corrective are measures recommended for
 implementation. All these steps facilitate timely detection of any
 irregularities and early remedial measures.
 
 PERSONNEL
 
 Your Company firmly believes that a dedicated workforce constitutes the
 primary source of sustain- able competitive advantage. Accordingly,
 human resource development continues to receive focused attention. Your
 Directors wish to place on record their appreciation of the dedicated
 and commendable services rendered by the staff and workforce of the
 Company.
 
 DEPOSITS
 
 The Company has not accepted any deposits during the year pursuant to
 the provisions of Section 58A of the Companies Act, 1956.
 
 ACKNOWLEDGEMENTS
 
 Your Directors commend the contribution made by the employees to the
 continued satisfactory busi- ness performance during the year and the
 ongoing management support received by the Company.  The Directors
 place on record their appreciation to all stakeholders particularly
 Shareholders, Cus- tomers, Suppliers, various Central and State
 Government Agencies and Local Authorities, the Medi- cal Community and
 business partners, who have contributed to the Companys continued
 support.  The Directors also place on record the continued management
 support received by the Company in the areas of Health, Safety and
 Environment and in terms of product and process know- how.
 
 
                                      For and on behalf of the Board
 
                                         Sd/-              Sd/-
 
 Place: Hyderabad                   (M.Munisekhar)   (Daniel Soloman)
 
 Date: 12th August, 2010             Managing 
                                     Director        Executive Director