The Board of Directors have pleasure in presenting the 28th Annual
 Report on the business operations of your Company together with Audited
 Financial Accounts for the year ended March 31, 2012.
 
 FINANCIAL RESULTS :                                       (Rs. in Lacs)
 
 Particulars                                   Year ending   Year ending
                                                  31.03.12      31.03.11
 
 Revenue from operations (net)                     8308.98      8192.28
 
 Operating Profit (PBIDT)                           483.26       704.82
 
 Finance Cost                                       122.88        80.28
 
 Depreciation                                       217.95       225.68
 
 Profit before Tax                                  142.43       398.86
 
 Taxes                                               25.67       130.56
 
 Profit after Tax                                   116.76       268.30
 
 Balance of Profit brought forward                  843.13       678.87
 
 Amount available for appropriations                959.89       947.17 
 
 Appropriations:
 
 Transfer to General Reserve                         15.00        15.00
 
 Dividend on Equity Shares                            0.00        76.61
 
 Dividend Tax on Equity Shares                        0.00        12.43
 
 Balance carried forward to Balance Sheet           944.89       843.13
 
 Total                                              959.89       947.17
 
 EPS (Basic & Diluted)                                1.52         3.50
 
 (Previous Year''s figure have been recast, reclassified and regrouped
 wherever necessary to make them comparable with the figures of the
 Current Year.)
 
 BUSINESS OPERATIONS:
 
 During the year the Company has achieved marginal improvement in
 turnover. However it witnessed decline in operating Profit. The
 Turnover increased to Rs. 8308.98 Lacs from Rs. 8192.28 lacs - a growth
 of 1.42% and the Net Profit after tax declined to Rs. 116.76 lacs from
 Rs. 268.30 lacs in the previous year - a decline of 56.48% mainly due
 to fluctuations in Raw-materials prices (crude base), increase in Power
 & fuel, Manpower cost and uncertainty in global markets.
 
 The export (FOB value) have however increased to Rs. 144.10 Lacs from
 Rs. 82.84 Lacs in the previous year.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
 
 Management''s Discussion and Analysis Report for the year under
 review, as stipulated under Clause 49 of the Listing Agreement with the
 Mumbai Stock Exchange, is presented in a separate section forming part
 of the Annual Report.
 
 THRUST ON HIGHER VALUE ADDITION CONTINUES: -
 
 Your Company shall always continue its endeavor in Value Addition and
 Innovation drive. As a result our R&D Department remains actively
 engaged in fulfilling this objective by constantly developing new
 shades and proving our strength in terms of versatility in dyeing and
 colour innovation.
 
 SEGMENT-WISE PERFORMANCE:
 
 Since the Company operates only in one segment as the Manufacturer of
 Polyester Dyed Yarn and Processors of Cotton and other fancy Dyed Yarn,
 no further analysis is required and the operational results are
 mentioned elsewhere in this report.
 
 INSURANCE:
 
 Your Company has insured its assets and all its operations against all
 insurable risk including fire, earthquake, flood etc. as part of its
 overall risk management strategy.
 
 ISO CERTIFICATION:
 
 Indicating our commitments to meeting the global quality and
 international standards your Company has successfully completed its
 surveillance audit for the ISO 9001-2008 Certification from AGSI
 Certification Pvt.  Ltd.
 
 EXPANSION:
 
 During the year the company has implemented substantial expansion by
 setting up a new unit at Silli Village, Union Territory, D. & N. H. The
 Company has incurred the CAPEX of Rs. 804.69 Lacs (approx) against the
 envisaged project cost of Rs. 1504 lacs.
 
 FIXED DEPOSITS:
 
 The Company has accepted deposit from the Promoters, their relatives,
 friends and associates for the expansion of Silli Unit.
 
 EXPORT:
 
 Your Company is exploring new avenues to increase the export base and
 has chalked out strategic growth plan for the potential market in
 Middle East, U K, Egypt, Mexico and other European markets.
 
 APPROPRIATIONS: DIVIDEND:
 
 The Board of Directors have decided to skip the Dividend for the
 Financial Year 2011-12 in order to augment the resources for ongoing
 expansion.
 
 Last year the company had paid equity dividend @ 10% i.e. Re. 1 per
 Equity Share of Rs. 76.61 Lacs and Rs.12.43 Lacs as dividend tax there
 on for the Financial Year 2010-11.
 
 TRANSFER TO RESERVES:
 
 The Company has transferred Rs. 15 lacs to General Reserve.
 
 TAXATION:
 
 Provision for Current Taxation has been made in accordance with
 prevailing income-tax laws for the relevant Assessment year.
 
 Provision is made for Deferred Tax to account for the timing
 differences.
 
 TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
 The information as prescribed under Section 217(1 )(e) of the Companies
 Act, 1956 read with Rule 2 of the Companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules, 1988 is given in Annexure I
 and forms part of this Report.
 
 PERSONNEL:
 
 There are no employees of your Company who comes within the purview of
 Section 217 (2A) of the Companies Act, 1956 read with the Companies
 (Particulars of Employees) Rules, 1975 during the year under review.
 
 DIRECTORS:
 
 Shri Surendra Kumar Suri, Non Executive Independent Director retires by
 rotation and being eligible, offers himself for re-appointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956 with respect to Directors'' Responsibility Statement, it is
 hereby confirmed that:
 
 (i) in the preparation of the annual accounts for the financial year
 ended March 31, 2012, all the applicable accounting standards have been
 followed along with proper explanation relating to material departures.
 
 (ii) the Directors have 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 as at March 31, 2012 and of the profit of the Company
 for the said period;
 
 (iii) 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; and
 
 (iv) the Directors have prepared the accounts for the financial year
 ended March 31, 2012 on a ''going concern'' basis.
 
 CORPORATE GOVERNANCE:
 
 The Company has taken adequate steps to ensure that the conditions of
 Corporate Governance as stipulated in clause 49 of the Listing
 Agreement of the Stock Exchange are complied with. A separate section
 on Corporate Governance forms part of the Annual Report. A certificate
 from the Practicing Company Secretary regarding compliance of
 conditions of Corporate Governance as stipulated under clause 49 of the
 Listing Agreement is given in Annexure.
 
 AUDITOR''S REPORT:
 
 The remarks in the Auditors'' Report have been properly dealt with in
 the Notes on Account, which are self explanatory.
 
 AUDITORS:
 
 M/s. Mehta Chokshi & Shah, Chartered Accountants, will retire as
 Auditors of the Company at the conclusion of the Annual General Meeting
 and are eligible for re-appointment. The company has received letter
 from them to the effect that their appointment, if made would be with
 in the prescribed limit under section 224 (1B) of the Company''s Act
 1956.
 
 INDUSTRIAL RELATIONS:
 
 The relationship with employees, suppliers and customers across the
 Company are cordial.  
 
 ACKNOWLEDGEMENT:
 
 Your Directors thank our customers, bankers and suppliers for their
 continued support during the year. Your Company places on record a deep
 sense of appreciation of the contribution made by the staff and workers
 at all levels. Our consistent growth was made possible by their hard
 work, solidarity, co-operation and support.
 
                                      For and On behalf of the Board 
 
                                                   Suresh N. Mutreja
 
 Place: Mumbai                          Chairman & Managing Director
 
 Date: 13 August,2012