1. The Directors are pleased to present their Sixth Annual Report on
 the business and operations of your Company for the year ended 31st
 March, 2011.
 
 Financial results
 
                                                         (Rs. in lakhs)
 Particulars                                 Year ended       Year ended
                                         March 31, 2011   March 31, 2010
 
 Gross sales                                  158546.19        114816.21
 
 Gross Profit                                  21566.64         10123.05
 
 Less: Depreciation                             6786.20          6690.94
 Taxation:
 
 – Current                                      2951.10           580.00
 
 – MAT Credit entitlement                      (2625.65)             –
 
 – Earlier years (net)                            (2.33)            2.07
 
 – Deferred (net)                                3023.11          218.62
 
 Net Profit                                     11434.21         2631.42
 
 Add: Balance brought forward from the 
 previous year                                   4421.45         2408.43
 
 Profit available for appropriation             15855.66         5039.85
 
 Appropriations:
 
 Proposed dividend                                819.14          273.05
 
 Corporate dividend tax                           132.89           45.35
 
 Transfer to the general reserve                 1200.00          300.00
 
 Balance in profit and loss a/c carried 
 to balance sheet                               13703.63         4421.45
 
 Total                                          15855.66         5039.85
 
 Dividend
 
 2. Your Directors are pleased to recommend dividend of Rs. 5 per share
 and a one time special dividend of Rs. 2.50 per share for the year
 ended 31st March, 2011, subject to shareholders approval at the
 forthcoming Annual General Meeting. The total amount of dividend to be
 paid to the shareholders will be Rs. 952.03 lakhs (inclusive of
 dividend tax).
 
 Capital Projects
 
 3. The Company invested Rs. 37 Crore during the year for capital
 projects and intends to further invest Rs. 38 Crore in FY 2011-12 and
 Rs. 50 Crore in FY 2012-13 for modernization, upgradation and balancing
 capital equipments.
 
 To reinforce its existing competitive edge, your Company is exploring
 various opportunities for expansion and growth.
 
 If undertaken, the expansion will be financed through internal accruals
 as well as loans from Banks under TUF Scheme of the Ministry of
 Textiles, Government of India, under which an interest subsidy of 4% is
 provided by the government.
 
 Fixed Deposits
 
 4.  At the end of the financial year under review, fixed deposits from
 the public, shareholders and employees amounted to Rs. 1377.30 lakhs;
 deposits amounting to Rs. 0.15 lakh remained unclaimed as on 31st
 March, 2011.
 
 Particulars of Employees
 
 5.  Information in accordance with Section 217(2A) of the Companies
 Act, 1956, read with Companies (Particulars of Employees) Rules, 1975,
 is given in Annexure-I, which forms part of this report.
 
 Energy Conservation, Technology Absorption and Foreign Exchange
 Earnings and Outgo
 
 6.  The requisite information with regard to conservation of
 energy , technology absorption and foreign exchange earnings and outgo,
 in terms of the Section 217(1)(e) of the Companies Act, 1956, read with
 Companies (Disclosures of Particulars in the Report of Board of
 Directors) Rules, 1988 is given in Annexure-II, annexed hereto, and
 forms part of this report.
 
 Management Discussion and Analysis Report
 
 7.  The detailed review of the operations, performance and outlook of
 the Company is given separately in the Management Discussion and
 Analysis Report as required under Clause 49 of the Listing Agreement,
 by way of Annexure–III to this report.
 
 Corporate Governance
 
 8. Your Company is committed to maintain the highest standards of
 ethics and governance, resulting in enhanced transparency for the
 benefit of all stakeholders. As per the revised Clause 49 of the
 Listing Agreement with stock exchanges, and the requirements set out by
 the Securities and Exchange Board of India‘s Corporate Governance
 Practices, the Company has implemented all the stipulations prescribed.
 The Company has adopted a code of conduct applicable to the Board and
 senior management. The Company fully complies with the governance
 practices as enunciated in the Listing Agreement. The Report on
 Corporate Governance as stipulated under Clause 49 of the Listing
 Agreements forms part of this report.
 
 9.  The requisite Certificate from the Statutory Auditors of the
 Company, M/s Singhi & Co., Chartered Accountants, confirming compliance
 with the conditions of Corporate Governance as stipulated under the
 aforesaid Clause 49, is annexed to this Report by way of Annexure IV.
 
 Compliance of Accounting Standards
 
 10. As per requirement of the Listing Agreement with Stock Exchanges
 and Accounting Standards of the Institute of Chartered Accountants of
 India your Company has made disclosure in respect of Related Party 
 Transactions and Deferred Taxation. The Company has duly adopted 
 all the Accounting Standards in pursuance to the provision of 
 Section 211 (3A) of the Companies Act,1956.
 
 Directors Responsibility Statement
 
 11. As required under Section 217 (2AA) of the Companies Act, 1956,
 your Directors hereby confirm:
 
 (i) That in the preparation of the annual accounts, the applicable
 accounting standards relating to material departures, if any, were
 followed along with proper explanations and the Notes in the Auditors
 Report in this regard are self-explanatory;
 
 (ii) That such accounting policies were selected and applied
 consistently and judgements and estimates were made that were
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of your Company at the end of the financial year and of the
 profit of your Company for the year ended 31st March, 2011
 
 (iii) That proper and sufficient care were taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956, for safeguarding the assets of your Company and
 for preventing and detecting fraud and other irregularities; and
 
 (iv) That the annual accounts were prepared on a going concern basis.
 
 Directors
 
 12. Pursuant to section 256 of the Companies Act, 1956, read with
 Article 139 of the Articles of Association of the Company, Mr. Rajan A.
 Dalal, Mr. Ashok Mittal and Mr. Rajiv K. Podar, Directors of the
 Company, retire by rotation at the ensuing Annual General Meeting and
 being eligible, have offered themselves for re-appointment.
 
 Auditors Report
 
 13. The Notes on accounts and the observations of the Auditors in their
 Report on the Accounts of the Company are self- explanatory and in the
 opinion of the Directors, do not call for any further clarifications.
 
 Auditors
 
 14. M/s. Singhi & Co., Auditors and M/s. S.R. Batliboi & Co., Branch
 Auditors retire at the conclusion of Annual General Meeting and are
 eligible for re-appointment. Certificate from the Auditors have been
 received to the effect that their re-appointment, if made, would be
 within the limits prescribed under Section 224 (1B) of the Companies
 Act, 1956. Further they also hold a valid certificate issued by the
 Peer Review Board of the ICAI as required under revised clause 41 of
 listing agreement.
 
 Acknowledgements
 
 15.  Your Directors would like to express their sincere appreciation
 for assistance and co-operation received from the various stake holders
 including financial institutions and banks, Governmental authorities
 and other business associates who have extended their valuable support
 and encouragement during the year under review. Your Directors take the
 opportunity to place on record their deep appreciation of the committed
 services rendered by the employees at all levels of the Company, who
 have contributed significantly towards Companys performance and for
 enhancing its inherent strength.
 
                                       For and on behalf of the Board
 
 Place: New Delhi                                 C. S. Nopany
 
 Dated: May 13, 2011                                 Chairman