The Directors have great pleasure in presenting the 21ST ANNUAL REPORT together with the Audited Statement of Accounts of your Company for the year ended 31st March, 2014.

FINANCIAL RESUTLS:                                    (Rs. In Lacs)

                                        Current Year     Previous Year
                                         (2013-2014)       (2012-2013)

Sales & Operational Income                  1056.64           980.54

Other Income                                  31.13            30.61

                                            1087.77          1011.15

Profit before Tax & Dep.                      28.13            18.44

Provision for Depreciation                  (19.81)          (12.28)

Provision for Income Tax                     (1.56)           (1.18)

Profit After Tax                               6.76             4.98

OPERATION:

The Turnover of the company has increased by 8%. & Profit after Tax is higher by 36% as compared to previous year. Keeping in view of the prevailing market condition the performance of the company may be considered as satisfactory.

MANAGEMENT DISCUSSION & ANALYSIS

The Spinning Yarn Industry is a lifeline in Textile Business of India. The majority of employment in India is absorbed by Textile Industry. Keeping in view of its importance the Govt. has constituted a separate Department under Textile Ministry. The Govt. has also constituted a Technology upgradation Fund (TUF) by which concessional Loan / subsidy is granted by Govt. through its various nodal agencies for upgradation in technology.

The main Raw Material is cotton, which is based on Agricultural production of Cotton. The Production is dependent on Moonsoon. In Indian climatic condition the moonsoon is always an unpredictable factor. Sometimes there is heavy rainfall & sometime the drought situation is created, which affects the production of Cotton to a great extent creating heavy fluctuation in raw material prices. However, the company have some what managed situation & earned profit during the year.

PARTICULARS OF EMPLOYEES

During the year there was no employee in respect of whom information as per section 217 (2A) of the Companies Act, 1956 is required to be given in the Director's Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

As required by the companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988 the relevant data pertaining to conservation of energy, technology absorption and foreign exchange earning and outgo are given in annexure forming part of this report.

FIXED DEPOSIT:

The Company has not accepted any deposit within the meaning of section 58-A of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975.

LISTING OF SECURITIES:

The Securities of the Company is listed on Stock Exchanges at Mumbai. The Listing Fees have been paid up to 31-03-2014.

INSURANCE:

All the properties and insurable interests of the company including Building, Plant & Machinery and Stock wherever necessary and to the extent required have been properly insured.

DIRECTORS' RESPONSIBILITY STATEMENT:

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed.

(ii) That the directors had selected such accounting policies and applied them consistently and made judgement 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 of the Profit of the company for that year :

(iii) That the directors had 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 had prepared the annual accounts on a going concern basis.

AUDITORS' REPORT:

The points stated in the Auditors Report are self explanatory & needs no comments.

DIRECTORS:

In accordance with the requirement of the Companies Act, 1956 and the Articles of Association of the Company Smt.Arun Kumar Aggarwal retires by rotation and being eligible offer himself for re-appointment.

CORPORATE GOVERNANCE:

The Corporate Governance Report is annexed herewith alongwith Auditor's Certificate.

AUDITORS:

M/s. N.C. Aggarwal & Co., Chartered Accountants (Firm Registration No. 003273N), who retire at the conclusion of ensuing Annual General Meeting, have consented to continue in office, if appointed from the conclusion of ensuing Annual General Meeting till the conclusion of next three consecutive Annual General Meeting subject to ratification of appointment by the Members of the Company at every Annual General Meeting. They have confirmed their eligibility under Section 141 of the Companies Act, 2013 for their appointment as Auditors of the Company.

COST AUDITORS' APPOINTMENT

As per the requirement of the Central Government, and in pursuance of Section 233B of the Companies Act,1956 your company carries out an audit of cost records, Subject to the approval of the Central Government, your Director have appointed M/s Satpaul Saini & Associates, to audit the cost accounts of the company for the financial year 2014.

ACKNOWLEDGEMENT:

Yours Directors express their sincere appreciation for all around assistance, co-operation and guidance from the Banker Oriental Bank of Commerce and State & Central Govt. Authorities.

                                For and on Behalf of the Board

                             (Shalini Agarwal ) (Arun Kumar Agarwal)
                               Director           Executive Director
                               DIN-00248578       DIN 00248510

Dated: - 29.05.2014