Skyline Millars

The Directors present their Eighty Eighth Annual Report and the Audited
 Statements of Accounts for the year ended 31st March, 2008.
 
 FINANCIAL RESULTS
 
 PARTICULARS                                 F.Y. 2007-08   F.Y. 200607
                                            (Rs. in lacs)  (Rs. in lacs)
 
 Sales & Other Income                            2255.49       1851.49
 Total Income                                    2255.49       1851.49
 Profit before Interest, 
 Depreciation & Taxation                          659.63        270.79
 1. Interest                                        1.33          2.43
 2. Depreciation                                   14.40         11.23
 3. Taxation                                       77.00         33.36
 Profit / (Loss) after Interest, 
 Depreciation & Taxation                          566.90        223.78
 Balance brought forward from the previous year   543.35        319.57
 Amount available for Appropriation              1110.25        543.35
 APPROPRIATIONS:
 Transfer to General Reserve                       57.00           -
 Dividend: Interim                                 40.22
 Final                                             40.22
 Dividend Distribution Tax                         13.68           -
                                                  151.12           -
 Balance carried to Balance Sheet                 959.13        543.35
 
 DIVIDEND
 
 Based on the Companys performance, the Directors are pleased to
 recommend, for approval of the Members, a final dividend of 10% per
 share on 40,22,425 Equity Shares of Rs.10/- each of the Company for the
 financial year 2007-08, in addition to interim dividend of 10% per
 share. The Final Dividend on the Equity Shares, if declared as above,
 would involve an outflow of Rs. 40.22 lacs towards dividend and Rs.6.84
 lacs towards dividend distribution tax, resulting in a total outflow of
 Rs.94.12 lacs (including dividend distribution tax) on account of
 dividend (interim and final) for the financial year 2007-08.
 
 OPERATIONS
 
 During the year under review your Company has achieved marked
 improvement in its operations. Sales and other income increased from
 Rs.1,851 lacs in the previous year to Rs.2,255 lacs in the current
 year, an increase of 22% compared to last year.
 
 Construction Equipment Division has a healthy growth of 27% from
 Rs.1,090 lacs to Rs.1,381 lacs in this financial year and income from
 the Real Estate Division was Rs.782 lacs.
 
 The Company has booked Profit After Tax (PAT) Rs. 566.90 lacs compared
 to Rs.223.78 lacs in the previous year an increase of almost 153% in
 PAT. The Earning Per Share (EPS) of the Company has increased from Rs.
 8.37 to Rs.14.09 per share, an increase of almost 68% compared to the
 last year.
 
 FIXED DEPOSITS
 
 The Company has not accepted any public deposits and as such, no amount
 on account of principal or interest on public deposits was outstanding
 on the date of the Balance Sheet.
 
 FINANCE
 
 The Company has investments in various instruments such as listed
 equity shares, mutual funds & fixed deposits in Banks amounting to Rs.
 1,161 lacs.
 
 SIGNIFICANT EVENTS
 
 The Company has signed a Term Sheet with Urban Kshetra Infrastructure
 Private Ltd (a wholly owned subsidiary of Urban Infrastructure Venture
 Capital Fund) proposing to jointly acquire Transferable Development
 Rights (T.D.R) and develop and construct one building (known as
 Building No. 4) having approximate residential saleable area of 10,993
 sq. mtrs at our Ghatkopar Project, situated at Kurla-Kirol Road,
 Ghatkopar, Mumbai and the Development Agreement will be finalized in
 due course.
 
 The Company has also entered into Memorandum of Intent with Khanna
 Rayon Industries Private Limited for developing residential /
 commercial building having a saleable area of 4,180 Sq. mtrs (approx)
 at their Ghatkopar land and the Development Agreement will be executed
 in due course.
 
 PREFERENTIAL ISSUE
 
 As approved by the Members at its Extra-Ordinary General Meeting held
 on January 02nd, 2007, the Company has issued and allotted 3,51,000
 equity shares and 13,50,000 convertible warrants of the Company on
 January 15th, 2007 to Skyline Group on preferential basis an equity
 shares of Rs. 10/- each for cash at a premium of Rs. 70/- per Share and
 13,50,000 Fully Convertible Warrants (FCWs) @ Rs. 80/- each. During the
 year 13,50,000 FCWs were converted into equal number of Equity Shares
 of Rs. 10/- each at a premium of Rs. 70/- per Share. The said Equity
 Shares have been listed on the Bombay & Ahmedabad Stock Exchanges.
 
 The total funds generated by issue of equity shares as aforesaid
 aggregated to Rs. 1,361 Lacs, and is utilized as under; 
 
 (i) Deployed in our Ghatkopar Project : Rs.  789 Lacs
 
 (ii) Deployed in Other Projects : Rs.  113 Lacs
 
 (iii) Balance with Banks : Rs.  459 Lacs
 
 Total: Rs.  1,361 Lacs
 
 DIRECTORS
 
 In accordance with Section 256 of the Companies Act, 1956, Mr. Tarak A.
 Patel and Mr. Narendra H. Bhatt retire by rotation at the ensuing
 Annual General Meeting and being eligible, offers themselves for
 re-appointment.  A brief resume of the directors being appointed/re-
 appointed, as stipulated under clause 49 of the Listing Agreement, is
 given in the statement of Corporate Governance.
 
 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 of the
 Company for the period 1st April, 2007 to 31st March, 2008.
 
 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 they have prepared the annual accounts on a going concern
 basis.
 
 AUDITORS
 
 M/s Shah & Co, Chartered Accountants, Mumbai retire at the ensuing
 Annual General Meeting. The Company has received a certificate pursuant
 to the provisions of Section 224 1(B) of the Companies Act ,1956,
 regarding the eligibility for re-appointment of M/s Shah & Co, your
 Directors recommend their re-appointment.
 
 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 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.
 
 ACKNOWLEDGEMENTS
 
 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
 
                                                 Ashok J. Patel
                                                    Chairman
 July 29th, 2008