Dear Members,
 
 The Directors of your Company are pleased to present the Forty Second
 Annual Report together with the Audited Accounts of the Company for the
 year ended 30th September 2011.
 
 FINANCIAL HIGHLIGHTS
 
                                                      Rs. (In millions)
 
                                            2010/11            2009/10
 
 Sales (Net of Excise Duty)                  544.29            513.37
 
 Profit before taxation                      165.88            128.10
 
 Provisions for taxation                      50.55             42.39
 
 Profit after taxation                       115.39             85.71
 
 Balance brought forward from 
 the previous year                           404.71            342.94
 
 Amount available for Appropriation          520.04            428.65
 
 Appropriations:
 
 - Dividend                                   13.18             13.18
 
 - Corporate Dividend Tax                      2.14              2.19
 
 - Transferred to General Reserve             11.53              8.57
 
 - Surplus carried to Balance Sheet          493.19            404.71
 
 Total                                       520.04            428.65
 
 
 As is evident from the above graphs, your company continues to grow and
 it has achieved Net Sales of Rs. 544.29 millions during the year under
 review, registering an increase of about 6% over the previous year. The
 profit before tax at Rs. 165.88 millions exhibits a growth of about
 29.50% over the previous year. For a more detailed review of operating
 performance, members are requested to refer to the ''Management
 Discussion and Analysis Report'' section of this report.
 
 The Directors of your Company expect consistent growth in turnover and
 profitability in future also, barring unforeseen events and
 occurrences.
 
 DIVIDEND
 
 The Directors are recommending for your approval, a dividend of Rs.3/-
 per equity share of Rs.10/- each for the year ended on 30th September
 2011. This will absorb Rs.13.18 millions. In addition, Rs.2.14 millions
 shall be payable as corporate dividend tax (including surcharge,
 education cess and secondary & higher education cess) thereon.
 
 DIRECTORS
 
 Directors, Mr. Chandra Sekhar Panigrahi and Mr. Martin Sieringhaus,
 shall be retiring by rotation at the 42nd Annual General Meeting and
 being eligible, offer themselves for reappointment.
 
 The necessary details about the directors seeking reappointment are
 mentioned below for the consideration of shareholders:
 
 Name of the 
 Director        Mr. Chandra Sekhar Panigrahi    Mr. Martin Sieringhaus
 
 Age (years)     65                              38
 
 Date of 
 Appointment     26th March 2009                 26th October 2009
 
 Expertise in
 Special 
 Functional 
 Areas           Engineering & General 
                 Management                      Finance
 
 Qualification   Graduate Engineer (Mechanical)  Industrial Engineer and
                                                 Accounting.
 
 Directorships 
 held in
 outside         Voith Paper Technology
                (India) Pvt. Ltd.                None
 
 Companies,
 as on 
 30/09/2011      Flow Link Systems 
                 Private Limited
 
 Membership of
 Committees of 
 other           None                            None
 Companies, in 
 which he is a 
 Director,
 as on 30/09/2011
 
 No. of Shares 
 held in the 
 Company         Nil                             Nil
 
 (Including 
 those held by 
 Relatives)
 
 None of the Directors have any inter-se relationship.
 
 AUDITORS REPORT
 
 The observations of the auditors are self-explanatory and, therefore,
 do not call for any further comments.
 
 AUDITORS
 
 M/s S.R. Batliboi & Associates, Chartered Accountants, Gurgaon, who are
 to retire at the conclusion of ensuing Annual General Meeting have
 expressed their unwillingness for re-appointment as the statutory
 auditors of the company. The directors wish to place on record their
 appreciation of the professional services rendered by them during their
 association with the company.
 
 Further, company has received a letter from M/s S. R. Batliboi & Co.,
 Chartered Accountants, (Registration No. 301003E) having their office
 at: Golf View Corporate Tower - B, Sector - 42, Sector Road, Gurgaon -
 122002, Haryana; indicating their willingness to be appointed as the
 statutory auditors of the company from the conclusion of forthcoming
 42nd Annual General Meeting until the conclusion of next Annual General
 Meeting of the company and confirming that their appointment, if made,
 will be in compliance with the requirements of Section 224 (1B) of the
 Companies Act, 1956.
 
 Accordingly, the Audit Committee and the Board of Directors recommend
 for appointing the aforesaid M/s S. R. Batliboi & Co., as the statutory
 auditors by the shareholders of the company.
 
 CORPORATE GOVERNANCE
 
 The Company endeavors to maintain high standards of Corporate
 Governance in letter as well as spirit. As required by Clause 49 of the
 Listing Agreement with the Bombay Stock Exchange Limited (BSE), the
 reports on Management Discussion and Analysis, Corporate Governance as
 well as the Certificate regarding compliance of conditions of corporate
 governance, are annexed and form an integral part of this report.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 Information required to be disclosed under section 217(1)(e) of the
 Companies Act, 1956 read with the Companies (Disclosures of Particulars
 in the Report of Board of Directors) Rules, 1988 is given in Annexure -
 I, forming part of this report.
 
 FIXED DEPOSITS
 
 The Company has neither invited nor accepted any deposits from the
 public during the period under review. Accordingly, there are no
 unclaimed or unpaid deposits lying with the Company for the period
 under review.
 
 PARTICULARS OF EMPLOYEES
 
 During the year under review, there was no employee in the company
 whose particulars are required to be disclosed under the provisions of
 Section 217(2A) for the Companies Act, 1956, read with the Companies
 (Particulars of Employees) Rules, 1975, as amended.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required by the Section 217 (2AA) of the Companies Act, 1956, the
 Directors hereby confirm that:
 
 1) In the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 2) 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 & fair view of the state of affairs of
 the Company at the end of the Financial Year and of the profits of the
 Company for the period;
 
 3) The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the company and
 preventing and detecting fraud and other irregularities; and
 
 4) The Directors have prepared the annual accounts on a ''going concern''
 basis.
 
 APPRECIATION
 
 Your Directors wish to place on record their appreciation to all the
 stakeholders, including all the employees, attached with the company
 for their dedicated support, which has enabled the company to continue
 to grow during the year under review.
 
                           For and on behalf of the Board of Directors
 
                                                              Biren De
 
                                              Chandra Sekhar Panigrahi
 
 Place : New Delhi                               Surinder Kumar Nagpal
 
 Date  : 3rd November, 2011                                 (Directors)