The Directors have pleasure in presenting the 20th Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2014.

FINANCIAL HIGHLIGHTS

                                                         (Rs. in lacs)

                                             YEAR ENDED     YEAR ENDED
PARTICULARS                                  31.03.2014     31.03.2013

Sales (Excl: Duties & Taxes)                    1173.82        1330.77

Other Income                                       7.20           9.85

TOTAL INCOME                                    1181.02        1340.62

TOTAL EXPENDITURE                               1014.66        1151.13

Profit/ (Loss) before depreciation & 
Financial Charges                                166.36         189.49

Depreciation                                      76.11          68.85

Financial Charges                                 67.09          57.29

Profit Before Tax                                 23.16          63.35

Prior period items                              (22.07)        (20.70)

Provision for tax                                  4.52           3.62

NET PROFIT / (LOSS)                                5.61          46.27

Your Board would like to bring to your notice that the Company has witnessed significant fall in production due to reduction in orders from Tupperware and profitability during the financial year under review when compared to the last year. In spite of recessionary conditions of market and increasing competition, during the financial year under review, your Company has achieved total net of sales of Rs.1173.82 lakh when compared to last year sales of Rs.1330.77 lakh and recorded net profit of Rs.5.61 lakh for the financial year 2013-14 when compared to net profit of Rs.46.27 lakh during the previous year.

DIVIDEND:

During the Financial Year 2013-14, Your Company has plans for expansion of the business and hence your Directors do not recommend any dividend for the Financial Year 2013-14.

DEPOSITS:

The Company has neither accepted nor renewed any deposits falling within the provisions of Section 73 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 from the its member and public during the Financial Year.

DIRECTORS:

Sri Sahu Garapati, Director of your Company retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for reappointment.

Pursuant to the provisions of Section 149 and applicable provisions of the Companies Act, 2013 read with rules thereon, all independent directors of the company are seeking fresh appointment for 5 consecutive years commencing from ensuing Annual General Meeting.

Sri Gopala Krishna Vajha is appointed as Additional Director in the Company w.e.f 8th October, 2013: The Company has received notice from the members of the Company, proposing their respective candidature for the office of Director.

Sri Devineni Madhusudhana Rao resigned from the Board w.e.f 30th September 2013 The Board of Directors re-appointed Sri Prasad Garapati as Chairman & Managing Director, Smt K.Saraswathi as Whole Time Director and Sri Sahu Garpati as Whole Time Director of the Company, subject to the approval of members in their General Meeting.

DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217 (2AA) OF THE COMPANIES ACT:

The Directors of your Company hereby report:

i. that in the preparation of Annual Accounts for the year ended 31st March 2014, the applicable accounting standards have been followed along with the proper explanation relating to material departures;

ii. that 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 at the end of the Financial Year ended 31st March 2014 and of the profit and loss of the Company for that period;

iii. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. that the Directors have prepared the annual accounts on a going concern basis.

AUDITORS:

Pursuant to the provisions of Section 139 (2) of the Companies Act, 2013, the Statutory Auditors M/s. Ramasamy Koteswara Rao & Co, Hyderabad, as the Statutory Auditors of the Company to hold office from conclusion of this Annual General Meeting for a period of 2 years in accordance with the Act, subject to the ratification of shareholders at every Annual General Meeting.. The Company is in receipt of confirmation from the Statutory Auditor that in the event of his re-appointment as Statutory Auditor at the ensuing Annual General Meeting, such appointment will be in accordance with the limits specified in Section 141 of the Companies Act, 2013.

The Notes on Financial Statements referred to in the Auditors' Report are self-explanatory and do not call for any further comments. There are no qualifications in the report of the statutory auditors for the year 2013-14.

PARTICULARS OF EMPLOYEES:

During the financial year under review, none of the employees were in receipt of remuneration in excess of Rs. 5,00,000/- per month or Rs. 60,00,000/- per annum the limits prescribed under the Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 2011.

EMPLOYEE RELATIONS:

The relationship with the employees continues to be cordial. The Directors would like to place on record their appreciation of the services rendered by all the employees of the Company.

INFORMATION REQUIRED UNDER SECTION 217(1) (e) OF THE COMPANIES ACT 1956 READ WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.

A Statement of particulars of the conservation of energy, technology absorption and foreign exchange earnings and outgoings is given as required under the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, is enclosed as ANNEXURE-A.

MANAGEMENT DISCUSSION & ANALYSIS

Pursuant to the provision of clause 49 of the Listing Agreement, a report on management Discussion & Analysis is set out as an ANNEXURE- B.

CORPORATE GOVERNANCE:

The Company is regular in complying with the Clause 49 of the Listing Agreement entered with the Stock Exchanges. A brief report on the Corporate Governance with certificate from the Statutory Auditors of the Company for compliance with the Clause 49 of the Listing Agreement with the Stock Exchanges is set out in AnNeXURE-C.

HUMAN RESOURCE VALUATION:

Your Company recognizes that the human resources are the most crucial factor for achieving sustained growth over the years. The management considers it's highly motivated and passion driven work force as its partner in the growth of the Company.

ACKNOWLEDGEMENTS:

Your Directors acknowledge with gratitude and wish to place on record their sincere thanks and appreciation for the co-operation received by the Company from various departments of Central/ State Government, Banks, for their continued co-operation and the support extended during the year. Your Directors also wish to acknowledge the continued support and confidence reposed in the management by the Shareholders

                            For and On behalf of the Board of Directors

Place : Hyderabad.                             Sd/-
Date : 13-08-2014                      Prasad V S S Garapati
                                    Chairman & Managing Director