The Directors have pleasure to present the 30th Annual Report together
 with Audited Accounts of the Company for the year ended 31st March,
 2012.
 
                                                         (Rs. in lacs)
 
 FINANCIAL HIGHLIGHTS
 
                                                 Current      Previous
                                              Year ended    Year ended 
                                              31.03.2012    31.03.2011
 
 Turnover and other Income                      27599.38      24299.99
 
 Profit before Depreciation and Tax               554.02       1004.95
 
 Depreciation                                     631.46        640.02
 
 Profit before Tax                                (77.44)       364.93
 
 Income Tax for earlier years                       8.58             -
 
                                                  (68.86)       364.93
 
 Tax Expenses (Current & Deferred)                (34.53)       127.13
 
 Net Profit After Tax                             (34.33)       237.80
 
 Add : Surplus Brought Forward                   3797.93       3560.13
 
 Surplus Carried to Balance Sheet                3763.60       3797.93 
 
 OPERATIONAL REVIEW AND FUTURE OUTLOOK
 
 The sales have increased to Rs. 25487.58 lacs against Rs. 22503.46 lacs
 in the previous year, an increase of 13.26%. The Company has incurred
 loss before tax of Rs. 77.44 lacs as against profit of Rs. 364.93 lacs
 in the previous year. The Net Loss after Tax (including deferred tax)
 is Rs. 34.33 lacs as against profit of Rs. 237.80 lacs in the previous
 year.
 
 WEAVING DIVISION
 
 Due to slowdown of European economy, the sales & profitability was
 under stress. However due to recovery in USA, we were able to maintain
 sales and reduce our financial losses compared to last year. High
 fluctuation in the price of raw silk in the international market and
 other commodity during the year under review has seriously affected the
 bottom lines of the division.
 
 SPINNING DIVISION
 
 High volatility in the price of raw cotton, ban on export of cotton
 yarn by the Govt., high power, labour & infrastuctural cost has
 adversely affected the bottom line of the division. We are exploring
 the new markets, which would give us a better turnover and profit
 margin.
 
 EXPANSION PROJECT
 
 WEAVING DIVISION
 
 No major expansion project was initiated by the Company at its Weaving
 division at Nanjangud, Mysore during the year under review. However
 arrangements are being made to import good quality looms to cope up the
 additional requirement of velvet fabrics.
 
 SPINNING DIVISION
 
 The Company has installed further 1872 nos. of spindles and some other
 ancillary machines during the year under review to meet the additional
 demand of yarn from USA and other continent.
 
 DIVIDEND
 
 Due to adverse results for the year under review, the Board of
 Directors do not recommend any dividend for this year.
 
 FINANCE
 
 The Company has not taken any term loan during the year. However,
 installments against the existing term loans are being paid regularly.
 
 PARTICULARS OF EMPLOYEES
 
 There was no employee drawing salary in excess of the limits as
 presecribed under Section 217(2A) of the Companies Act, 1956. Hence,
 information required to be given under the said section read with
 Companies (Particulars of Employees) Rules, 1975, as amended has not
 been provided in this report.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS & OUTGO
 
 The particulars in respect of conservation of energy and technology
 absorption are given in annexure ''A'' forming part of this report
 pursuant to section 217(1)(e) of the Companies Act, 1956 read with
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988.
 
 CORPORATE GOVERNANCE
 
 Your Company complies with all the mandatory requirements pertaining to
 Corporate Governance, in terms of revised Clause 49 of the Listing
 Agreement with the Stock Exchanges. A detailed report on Corporate
 Governance along with a copy of certificate from the Statutory Auditors
 regarding compliance of conditions on Corporate Governance is annexed
 thereto.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of Companies Act, 1956, your
 directors hereby confirm that :
 
 I] in the preparation of the annual accounts, the applicable accounting
 standards had been followed alongwith proper explanation relating to
 material departures;
 
 II] the Directors had 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 31st March, 2012 and profit and loss for the year
 ended on that day;
 
 III] the Directors had 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 had prepared the annual accounts on a going concern
 basis.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 Management Discussion and Analysis as required under Clause 49(IV)(F)
 is disclosed separately in this report.  DEPOSITS
 
 In terms of the provision of Section 58A of the Companies Act, 1956
 read with the Companies (Acceptance of Deposits rules) 1975, the
 Company has not accepted any fixed deposits during the year under
 review.
 
 DIRECTORS
 
 Mr. B. R. Loyalka resigned from the Board of Directors of the Company
 w.e.f. 25.06.2012 on ground of advance age.
 
 Mr. Devendra Kumar Sarawgee was appointed as an Additional Director on
 the Board of Directors of the Company w.e.f. 10.12.2011. He ceases to
 be a Director on the date of 30th Annual General Meeting.  Notice u/s.
 257 of the Companies Act, 1956 has been received in respect of his
 appointment as a Director on the Board.
 
 The following Directors retire by rotation and being eligible, offer
 themselves for reappointment :
 
 a) Mr. R. K. Loyalka
 
 b) Mr. M. M. Bhagat
 
 AUDITORS
 
 The observations made in the Auditors'' Report are self-explanatory
 and therefore, do not call for any further comments under Section
 217(3) of the Companies Act, 1956.
 
 Your Directors request you to appoint the existing auditors as
 statutory auditors for the current year also.  
 
 CAUTIONARY STATEMENT
 
 Certain Statements in the Management Discussion and Analysis describing
 the Company''s view about the industry, expectations/predictions,
 objectives etc. may be forward looking within the meaning of applicable
 laws and regulations. Actual results may differ from those implied
 therein. Important factors that could make a difference include raw
 materials availability and prices, demand and pricing in the
 Company''s principal markets, changes in Government regulations, tax
 regimes, industrial relations and economic developments within India
 and countries with which the Company conducts business and other
 incidental factors.
 
 APPRECIATION
 
 Your Directors place on record their deep appreciation of the continued
 support and guidance provided by Central and State Government and all
 Regulatory bodies.
 
 Your Directors offer their heartiest thanks to the esteemed
 shareholders, customers, business associates, Financial Institutions
 and Commercial Banks for the faith reposed by them in the Company and
 its management.
 
 Your Directors place on record their deep appreciation of the
 dedication and commitment of Company''s officers and employees at all
 levels and look forward to their continued support in future as well.
 
                          For and on behalf of the Board of Directors
 
                                         S.  K. LOYALKA 
 
                                    Chairman-cum-Managing Director
 
 Place : Kolkata
 
 Dated : August 13th, 2012