FINANCIAL RESULTS

The operating results of the Company for the year are as under:

                                                      (Rs. in Lacs)
                                              2006-2007      2005-2006

Profit / (Loss) after Depreciation                2.53          2.90
Less :
Provision For Taxation                           13.65         21.97
Provision For Fringe Benefit Tax                  0.92          1.21
                                                (12.04)       (20.28)
Add:
Provision for Deferred Tax written back          23.26         38.06
                                                 11.22         17.78
Brought forward from the previous year         (130.96)      (148.74)
Surplus / (Deficit) carried forward            (119.74)      (130.96)

Directors of your company like to recall that members of the company have accorded their consent, at the Extra- Ordinary General Body Meeting held on 29-March-2006, to the Board of Directors of your Company under section 293 (1) (a) of the Companies Act, 1956 to sell or dispose off or hive off Textile Mill with 7920 Spindles, Land and Buildings, Plant and Machinery, Furniture and Fixtures, Office Equipments both movable and immovable assets situated at Karur- Gujiliamparai Road, Sellamanthadi, Dindigul - 624 005 for net consideration of Rs. 1,75,00,000/ - (Rupees One Crore Seventy Five Lakhs Only) to M/s Rama Spinners or its associates having their Office at 131, Cotton Street, Kolkata - 700 007. Accordingly, the sale has been concluded and all assets of the textile unit were transferred by way of execution of Sale Deed and it was registered on 01-June-2006.

TRADING ACTIVITY-SHARES & SECURITIES

During the year, your company had continued the shares Trading Activities and achieved a turnover of Rs.20.31 Crores and incurred an operating loss of Rs.21.77 lacs.

TRADING ACTIVITY - OTHERS

Your Directors pleased to inform that your Company has achieved a turnover of Rs.7.17 Crores in Trading activities and ended with profit of Rs.2.08 Crores. whereas in the corresponding previous year the divisions turnover was Rs. 13.52 Crores and earned operating profit of Rs.4.03 Crores.

POWER

During the year under review our 2MW Wind Mill power generation unit at Kayathar in Tirunelveli district has generated 22.06 Lac Units and achieved a turnover of Rs.66.70 Lacs and earned operating profit of Rs.64.30 lacs. Whereas in the previous year the unit has generated 24.25 lac units and touched the turnover of Rs. 72.05 Lacs and operating profit of Rs.70.39 Lacs.

LOGISTICS DIVISION

Your Company has achieved the turnover of Rs. 19 Crores as hire charges on account of operation of vehicles on hire basis and ended with loss of Rs.2.18 Crores. In the previous years turnover was Rs.14.83 Crores and operating Loss of Rs.2.28 Crores

DIVIDEND

In view of losses, Directors did not recommend any dividend for the year 2006-2007.

DIRECTORS

Shri.D.Ramesh Babu, Director retire by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.

DIRECTORS RESPONSIBILITY STATEMENT - Section 217 (2AA) of the Companies Act, 1956

In Compliance with Section 217 (2AA) of the Companies Act, 1956 the Directors confirm:

a) that in the preparation of the annual accounts, the applicable accounting standards have been followed and there is no material departure;

b) 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 and profit of the Company for that period;

c) 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;

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

AUDITORS

Sri. D. Ravichander, Chartered Accountant, retire as Auditors of the Company at the conclusion of the Annual General Meeting and being eligible to offer himself for re-appointment. The Certificate as required under sub- section IB of Section 224 and sub-section 3(e) of Section 226 of the Companies Act,1956 has been obtained.

PARTICULARS OF EMPLOYEES

None of the employees of the Company is receiving remuneration in excess of Rs.24.00 lacs per annum or Rs.2.00 lacs per month and hence no statement as required u/s 217 (2A) of the Companies Act read with Companies (Particulars of Employees) Rules, 1975 is furnished.

DISCLOSURE OF PARTICULARS

Particulars required under Section 217 (1) (e) of the Companies Act, 1956 read with Rule (2) of the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 and forming part of the Directors Report are given in the Annexure to this report.

ACKNOWLEDGEMENT

Your Directors would like to acknowledge with gratitude for the support and co-operation extended by the share- holders, commercial banks and employees of the company.

                                               By Order of the Board

Place : Chennai                                  Arvind Nandagopal
Date  : 31.08.2007                                    Director