To The Members,
 
 The Directors present their Ninety First Annual Report and the Audited
 Statements of Accounts for the year ended March 31st, 2011.
 
 FINANCIAL RESULTS
 
 PARTICULARS                             2010-11         2009-10
                                     (Rs in lacs)       (Rs in lacs)
 
 Sales & Other Income                  3,062.92          2,363.71
 
                                       3,062.92          2,363.71
 
 Profit before Interest, Depreciation 
 & Taxation                              508.29            528.26
 
 1.  Interest                              -                (1.32)
 
 2.  Depreciation                        (15.99)           (16.74)
 
 3.  Taxation                           (182.00)           (86.70) 
 
 Profit / (Loss) after Interest,
 Depreciation & Taxation                 310.30            423.50 
 
 Balance brought forward from the
 previous year                         1,538.94          1,254.25 
 
 Amount available for Appropriation    1,849.24          1,677.75 
 
 APPROPRIATIONS:
 
 Transfer to General Reserve              45.00             45.00 
 
 Dividend :
 
 Interim Dividend                         80.45              --
 
 Final Dividend                            -                80.45
 
 Dividend Distribution Tax                13.36             13.36
 
                                         138.81            138.81
 
 Balance carried to Balance Sheet      1,710.43          1,538.94
 
 OPERATIONAL PERFORMANCE
 
 Sales and other income for the year at Rs 3,062.92 lacs reflected an
 increase of 30% as against Rs 2,363.71 lacs in the previous year.
 
 Income from Construction Equipment Division increased by 10% to Rs 1020
 lacs from Rs. 926 lacs in the previous year. Income from the Real Estate
 Division increased by 40% to Rs. 1,833 lacs from Rs. 1,308 lacs in the
 previous year.
 
 However, the Net Profit of the Company wasRs. 310 lacs compared to Rs. 424
 lacs in the previous year a decrease of 27%due to overall rise in raw
 material input cost due to inflationary pressure.
 
 As a result the Earning per Share (E.PS.) of the Company was Rs. 0.77 as
 compared to Rs. 1.05 of the previous year.
 
 DIVIDEND
 
 The Board of Directors have approved the payment of Interim Dividend of
 Rs. 0.20 (20%) per share, at their meeting held on April 27th, 2011. The
 total dividend distributed for the year of Rs. 80.45 lacs was equal to
 that of the previous year.
 
 The Directors propose that the interim dividend paid so far be
 considered as the Final Dividend for the year under review.
 
 FIXED DEPOSITS
 
 The Company has not accepted any public deposits during the year under
 review. There were no outstanding public deposits as at March 31st,
 2011.
 
 INVESTMENTS
 
 The Company''s total investment in listed equity shares, mutual funds &
 fixed deposits in Banks amounted to Rs. 1,087 lacs as at March 31st,
 2011.
 
 During the year under review the Company acquired about 50,000 sq. mtrs
 industrial land at Wada, Maharashtra for Rs. 276 lacs for the Company''s
 concrete products project. The Company also purchased Transfer of
 Development Rights (T.D.R) for 1,000 sq. mtrs for Rs. 293 lacs for future
 real estate development at our Ghatkopar property and has further
 invested Rs. 495 lacs in the commercial property being developed by M/s
 Symphony.
 
 PROJECTS
 
 The Company has certain ongoing projects, including diversification in
 to manufacture of pre-caste concrete products, details of which are
 given in the Management Discussion and Analysis Report.
 
 DIRECTORS
 
 Mr. Ashok j. Patel, Mr. Anand j. Vashi and Mr. Vinod N. joshi retire by
 rotation at the ensuing Annual General Meeting and being eligible,
 offers themselves for re-appointment.
 
 A brief Resume of the Directors being re- appointed, as stipulated
 under clause 49 of the Listing Agreement with the Bombay Stock
 Exchange, are given in the statement of Corporate Governance forming a
 part of this Report.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to provision of section 217(2AA) of the Companies Act, 1956,
 the Directors confirm:-
 
 a) That in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures.
 
 b) That they have selected such accounting polices and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true & fair view of the state of affairs of the
 Company at the end of the Financial Year and of the Profit and Loss
 Account of the Company for the period April 1st, 2010 to March 31st,
 2011.
 
 c) That they 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.
 
 d) That the annual accounts for the year ended March31st, 2011 are
 prepared on a ''going concern basis''.
 
 AUDITORS
 
 M/s. Shah & Co., Chartered Accountants, retiring as the Statutory
 Auditors of the Company at the conclusion of ensuing Annual General
 Meeting, offer themselves for re-appointment. The requisite certificate
 has been received from them to the effect that their re-appointment as
 Statutory Auditors, if made, would be within the limits prescribed
 under Section 224(1 B) of the Companies Act, 1956.
 
 MANAGEMENT DISCUSSION & ANALYSIS REPORT
 
 In accordance with the Clause 49 of the Listing Agreement with The
 Bombay Stock Exchange Limited1, Management''s Discussion & Analysis
 Report is attached and forms part of this Directors'' Report.
 
 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 Statutory Auditors of the Company confirming the compliance as
 set out in the annexure forming part of the Annual Report.
 
 REPORT ON ENERGY CONSERVATION AND RESEARCH AND DEVELOPMENT ACTIVITIES
 
 Information relating to energy conservation, foreign exchange earnings
 and outgo and research and development activities undertaken by the
 Company in accordance with the provisions of Section 217 (1) (e) of the
 Companies Act, 1956, read with Companies (Disclosure of Particulars in
 the Report of the Board of Directors) Rules, 1988, is given in the
 Annexure to the Directors'' Report.
 
 DISCLOSURES OF PARTICULARS OF EMPLOYEES
 
 There are no employees getting remuneration exceeding the prescribed
 limits, under section 217 (2A) of the Companies Act, 1956 as amended,
 read with the Companies (Particulars of Employees) Rules, 1975.
 
 ACKNOWLEDGMENTS
 
 The Board wishes to place on record their appreciation of the devoted
 services and contribution of their employees. The Directors place on
 record their appreciation for the continued support of the shareholders
 of the Company.
 
 On behalf of the Board of Directors
 
 FOR SKYLINE MILLARS LIMITED
 
 sd/-
 
 Anand J. Vashi
 
 Chairman
 
 Mumbai, July 28th, 2011.