The Directors of your Company have pleasure in presenting the 28th Annual Report of the Company with the Audited Annual Accounts for the financial year ended on 31st March 2013.

FINANCIAL HIGHLIGHTS

The Financial Results of the Company for the year ended 31st March,
2013 are as under:                                    (Rs. in Lacs)

Particulars                          For the Year       For the Year
                                     Ended on           Ended on
                                     31st March, 2013   31stMarch, 2012

Income/Revenue from Operations              7.32               -

Manufacturing & Administrative 
Expenditures                               40.12             4.10

(Loss) before Interest, 
Depreciation & Tax                       (32.80)             4.10

Less: Interest, Depreciation & Tax             -                - 

Exceptional Items                         (32.80)          (4.10)

Exceptional Items                               -            0.44

(Loss) before Taxation                    (32.80)          (4.54)

Net Loss for the year                     (32.80)          (4.54)

OPERATIONS

During the year under review, the Company could not operate its business satisfactorily due to non- availability of any business opportunity. Further, the continued scarcity of good quality raw material, steep rise in the overall cost of inputs, absence of working capital finances have made the operations of the Company economically unviable. The accumulated losses till end of the financial year have amounted to Rs. 2595.79 Lacs. However, the Management explored various feasible alternatives, but was forced to close down its manufacturing unit in previous year.

FUTURE OUTLOOK

The management of the Company expects to commence operations at any other alternate place and therefore any turning around of the Company in the near future is very likely. Now, the Company has recommenced trading activity for old stocks and various other business activities. The Company expects to enhance its business activities in the days to come.

DIVIDEND

In view of the accumulated losses, your Directors regret their inability to recommend dividend for the year.

BOARD OF DIRECTORS

Mr. R. C. Soni, Director of your Company retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.

STATUTORY AUDITOR

M/s. S M N P & Co., Chartered Accountants, Mumbai the Statutory Auditors of the Company retire at the ensuing Annual General Meeting and being eligible, offers themselves for reappointment.

COMPANY SECRETARY

During the year Board of Director appointed Ms. Surabhi Panwar, Company Secretary of the Company dated 16th July, 2012. However, due to some personal reason she expressed unwillingness to continue as a Company Secretary in the company and tendered her resignation to the Board of Director on 30th September, 2012 which was duly accepted by the board.

The Board places on record its deep appreciation for valuable contributions rendered by Ms. Surabhi Panwar, during her tenure as Company Secretary of the Company.

AUDITORS' REPORT

There are no specific observations in the Auditors' Report requiring further comments under Section 217(3) of the Companies Act, 1956.

REPORT ON CORPORATE GOVERNANCE

The Company has fairly complied with the requirement of Corporate Governance in terms of Clause 49 of the listing agreement. A detailed report on Corporate Governance is given in the Annexure I which form part of this report.

DIRECTORS' RESPONSIBILITY STATEMENT

Your Directors confirm that:

(i) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(ii) the accounting policies are consistently applied and reasonable, prudent judgment and estimates are made so as to give a true and fair view of the state of affairs of the Company at the end of the financial year;

(iii) 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) the Directors have prepared the annual accounts on a going concern basis.

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

Information as required under section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosures of particulars in report of the Board of Directors) Rules, 1988, is not applicable on the Company in consequence of closure of manufacturing operations in the company during the year.

PARTICULARS OF EMPLOYEES

The Company had no employees in the category mentioned in Section 217 (2A) of the Companies Act, 1956.

FIXED DEPOSITS

The Company has not accepted any deposits from the public during the year ended on 31st March, 2013.

APPRECIATION

The Directors are pleased to record their appreciation for the support and contributions made by all the concerned agencies.

                        By order of the Board of Directors
                        For GLOBAL STONE INDIA LIMITED

                                    K. N. GARG
                                    CHAIRMAN 

Place: Indore (M.P.) Date: 21st August, 2013