The Directors present their Twenty Second Annual Report on the business
 and operation of the company together with the audited Statement of
 Accounts for the year ended 31st March, 2012.
 
 PERFORMANCE OF THE COMPANY
 
 The performance of the Company during the year 2011-2012 as per audited
 accounts are summarized below :
 
                                                       (Rs. in lacs)
 
                                    For the year       For the year
                                 ended 31.3.2012    ended 31.3.2011
 
 Turnover                                3112.19            2204.89
 
 Other Income                              33.57               1.79
 
 Profit/(Loss) before tax                 107.62              55.27
 
 Profit/(Loss) after tax                   87.59              45.02
 
 Transfer to Capital 
 Expenditure pending 
 allocation                               898.68             970.55
 
 Balance brought forward 
 from previous year                      1492.89           1,447.87
 
 Balance carried to 
 Balance Sheet                           1580.48           1,492.89
 
 BUSINESS OPERATIONS
 
 The civil construction as per our plans for saving of energy was
 completed. Coal fired boiler was installed and commissioned to provide
 low cost heat energy. The steam turbine for electrical energy is being
 installed;
 
 Construction of plant building for forward integration downstream
 products is in progress. Some of the equipments for value-added
 downstream products have also arrived. Production on trial basis for
 our additional value added downstream products is also in progress and
 is being carried out on plant scale. In particular, following
 departments of the business of your company have recorded remarkable
 progress and are at a very advance stage:
 
 1.  Rationalization in raw material consumption has been implemented;
 
 2.  Downstream products project work is in progress; and
 
 3.  Your Company is in process of procurement of an additional plot of
 land of 1,60,000 (approximately) sq. metres, in close proximity to the
 existing plant in order to implement backward integration projects.
 
 The products of the company have been well accepted in the domestic
 market. With new and modernized facilities and strict quality control
 procedures in force, the Management of the Company sees a bright future
 with respect to profitability once manufacture of all the products is
 commercially underway. The additional products being introduced will
 contribute not only to substantial savings in the purchase of raw
 materials, transport and other incidental costs, but are in themselves
 independent profit centers.
 
 Your Directors are confident to start commercial operations of the
 value added downstream products in foreseeable future.
 
 DIRECTORS
 
 Shri R. N. Arora retires by rotation in this Annual General Meeting and
 offers himself for reappointment as per the Articles of Association of
 the Company. The Company is also in receipt of necessary deposit for
 the said re-appointment and the said deposit will be refunded on
 re-appointment of Shri R. N. Arora. You are requested to re-appoint
 Shri R. N. Arora in the meeting.
 
 THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975
 
 None of the Company''s employees were covered by the disclosure
 requirement pursuant to the provisions of Section 217(2A) of the
 Companies Act, 1956 and rules framed thereunder.
 
 AUDITORS
 
 M/s. Jagiwala and Associates, Chartered Accountants, Mumbai, Statutory
 Auditors of the Company, will retire at the ensuing Annual General
 Meeting and being eligible offer themselves for reappointment under
 Section 224(1) of the Companies Act, 1956 and your Directors recommend
 their reappointment.
 
 INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
 
 Your Company has appropriate internal control systems for business
 processes, with regard to efficiency of operations, financial reporting
 and controls, compliance with applicable laws and regulations, etc.
 Clearly defined roles and responsibilities for all managerial positions
 have also been institutionalized. All operating parameters are
 monitored and controlled. Regular internal audits and checks ensure
 that responsibilities are executed effectively. The Audit Committee of
 the Board of Directors reviews the adequacy and effectiveness of
 internal control systems and suggests ways of further strengthening
 them, from time to time.
 
 SAFETY, HEALTH AND ENVIRONMENT
 
 Your Company is giving utmost importance to safety, health and
 environmental related issues. The employees are continuously educated
 and trained to improve their awareness and skills.
 
 All safety statutory requirements like licenses, mock drills under
 emergency conditions and testing of manufacturing equipments etc. are
 being complied with. Requirements of environmental acts and regulations
 are complied with. Effluent treatment of waste products and suppression
 of fugitive emissions through sprinklers is also carried out
 effectively. Massive tree plantation has been undertaken to improve the
 greenery all around the plant.
 
 HUMAN RESOURCES
 
 Your Company considers human resource to be an important valuable asset
 for the organization and therefore, constantly strives to attract and
 recruit best talent for the current and future needs. The Company has
 taken necessary steps to upgrade the skills of present employees by
 conducting various in-house training programs and courses. Further
 measures for the safety of the employees are also adopted through
 training programs on safety and mock drills.
 
 CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 The information as required under Companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules, 1988 is annexed.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the requirements under Section 217 (2AA) of the Companies
 Act, 1956, with respect to Directors'' Responsibility Statement, it is
 hereby confirmed:-
 
 i.  That in the preparation of the Accounts for the financial year
 ended 31st March, 2012 the applicable accounting standards have been
 followed;
 
 ii. That the Directors have followed proper accounting policies and
 applied them consistently and wherever mandated, have made judgments
 and estimates that were fair, reasonable and prudent so as to give a
 true and fair view of the state of affairs of the Company as at 31st
 March, 2012 and of the capital expenditure of the Company for the year
 ended 31st March, 2012;
 
 iii. That the Directors have 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 Directors have prepared the accounts for the year ended
 31st March, 2012 on a going concern basis.
 
 REPORT ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSIONS AND ANALYSIS
 
 As required under the Listing Agreement with the Stock Exchanges,
 reports on Corporate Governance and Management Discussions and
 Analysis are attached and forms part of this Report
 
 CASH FLOW STATEMENT:
 
 A Cash Flow statement for the year ended 31st March, 2012 is attached
 with the Annual Audited Accounts of the Company.
 
 AUDITOR''S QUALIFICATIONS:
 
 Auditor''s qualification stated in their Report on the accounts for the
 year under review is self explanatory.
 
 ACKNOWLEDGEMENT
 
 The Board of Directors record their appreciation of continued
 co-operation and support provided by Customers, Suppliers, Banks as
 also of the dedicated services rendered by the Employees. Continued
 confidence of the Shareholders remains an immense source of strength to
 the Company to embark upon its future plans.
 
 PERSONNEL
 
 The Board wishes to place on record its appreciation to all employees
 of the Company for their sustained effort in improving capacity
 utilization and operational efficiencies. Industrial relations during
 the year were by and large harmonious.
 
 
 
                                                By order of the Board
     
                                                       Ashok G Rajani
                                         Chairman & Managing Director
 
 REGISTERED OFFICE
 T-14, MIDC 
 Tarapur, Boisar, 
 Thane 401506
 
 August 11, 2012