Directors Report of Mahasagar Travels Ltd.

Mar 31, 2014

Dear Members,

The Director have great pleasure in presenting the 21st Annual Report together with their Audited Statement of Accounts of the Company for the year ended 31st March, 2014.

Financial Highlights: (Rs.)

As at 31.03.2014 As at 31.03.13

Total income 435929743.97 401876476.42

Profit or (Loss) before tax 6707773.96 8640856.65

Profit/(Loss) after Tax 5207773.96 8640856.65

DIVIDEND:

The Board of Directors of the Company has shown their inability to recommend payment of Dividend due to inadequate profits.

BUSINESS PERFORMANCE AND OPERATION:

Since the Company is engaged in providing service to the tourist of the state and thereby in the engagement of the service sector industry since the core business of the Company is to provide service, the quality, facilities and safety are the prime concern of the management. During the last financial year your Company has made sufficient effort to provide better quality services through increase in the fleet capacity of the luxurious class. Majority of the fleet have air conditioning facility apart from comfortable internal environment. Keeping in mind the Pollution Free Quality Concept, the Company has been gradually replacing in a phased manner the environment friendly Luxurious Buses in place of old buses, which would help in protecting the pollution free environment, thereby putting major stress by management on the concept of taking pollution free environmental steps as per the Pollution Free Environment Policy of the Government and the new fleets of buses will also increase the tourist business and further facilitate the tourist the latest available facilities which will increase the overall business and profitability of the Company in the coming years. However the management has taken care of the fluctuation in petroleum products by creating retail outlet.

During the current year the company has earned revenue from Travels Division of Rs. 2391.06 lacs, last year it was Rs. 2365.49 lacs and Revenue earned during the current year from petroleum''s division is of Rs. 1965.40 lacs , last year it was Rs. 1637.39 lacs

INSURANCE:

All the assets of the Company have been adequately insured.

FIXED DEPOSITS:

The Company has not accepted/ renewed any fixed deposits during the year under review.

DIRECTORS:

Pursuant to Section 152 of the Companies Act, 2013 Shri Ravi S. Karia, Amit G.Pande Directors of the Company are due to retire at the ensuing Annual General Meeting of the Company and is eligible for re-appointment. Your directors recommend for their appointment. To comply with the requirement of independent directors as per the Companies Act, 2013 appointment of directors were made as independent directors for five years. Board recommend to approve and confirm the remuneration to Managing Director and Jt. Managing Director.

LISTING

At present your Company''s securities are listed on the Bombay Stock Exchange Limited., Company had passed necessary resolution for Voluntary Delisting of its Equity shares from Ahmedabad Stock Exchange Ltd., and Saurashtra Kutch Stock Exchange Limited (SKSE).

STATUTORY AUDITORS:

You are requested to appoint Auditors M/s. B. H. Advani & Associates for the current year (2014-15) to hold office from the conclusion of the Annual General Meeting until the conclusion of the next Annual General Meeting and to fix their Remuneration. The notes forming part of accounts referred to in Auditors'' Report are self explanatory and give complete information.

DIRECTORS'' RESPONSIBILITY STATEMENT:

Pursuant to the requirement of the section 217 (2AA) of the Companies Act 1956, with respect to the Directors'' responsibility statement it is hereby confirmed:

1. That in the preparation of the Annual accounts the applicable accounting standards had been followed along with proper explanation relating to the material departure.

2. That the Directors had selected such accounting policies and applied them consistently and made judgment 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, 2014 being the end of the financial year 2013-2014 and of the profit of the Company for the year.

3. That the Directors had taken proper and sufficient care for maintenance of adequate accounting records in accordance with the provision of Companies Act 1956, for safeguarding assets of the Company and for preventing and detecting frauds and other irregularities.

4. That the directors had prepared the Annual Accounts on a Going Concern Basis.

PARTICULARS OF EMPLOYEES:

There was no employee during the year drawing remuneration in excess of the ceiling prescribed under the provision of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule, 1975 as amended.

CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNING AND OUT GO:

As such the Company has not received any income and incurred any expenses in foreign currency , hence details in respect of foreign exchange earnings and outgo will be nil during the period under review. The Company has always laid the utmost emphasis on conservation of energy and strict monitoring and control of all energy consuming equipment are carried out continuously.

In view of the nature of the operations, we have nothing to report on the other matters, 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.

TAXES:

Company is regularly paying Income tax, Sales Tax, RTO Tax and other statutory dues like Provident Fund, ESIC, as applicable. As regard to Service Tax appropriate provision and treatments have been made as per law.

DEMATIRIALIZATION AND TRANSFER OF THE SECURITIES:

ISIN: INE 007G01014

As on date of this report company is having NSDL connectivity of dematerialization of shares and efforts are being made to have CDSL connectivity.

REGISTRAR AND SHARE TRANSFER AGENT

Link Intime (India) Pvt. Ltd. Unit No 303,3rd floor Shoppers Plaza V, Opp Municipal Market, Behind Shoppers Plaza II, Off C G Road, Ahmedabad 380009

REGULATORY STATEMENT:

(1) The Equity shares of your Company are listed on Bombay Stock Exchange, and the listing fees for the financial year 2013-14 have been paid to the exchange,

(2) In conformity with the provision of Clause 32 of the listing agreement, the cash flow statement for the year ended 31-3-2014 is annexed to the accounts.

CORPORATE GOVERNANCE:

The Company has complied with the requirement regarding corporate governance as required under Clause 49 of the Listing Agreement entered in to with the Stock Exchanges where the Company''s shares are listed. A report on the Corporate Governance in this regard is made a part of this Annual Report and a Certificate from the Auditor of the Company regarding Compliance of the Conditions of the Corporate Governance is attached to this report and forming part this report.

ACKNOWLEDGMENT:

The Directors sincerely express their appreciation to the employees at all levels, Bankers, customers, investors, Government of Gujarat and Ministry of Government for their sustained support and cooperation and hope that the same will continue in future.

Date : 21-07-2014 For and On behalf of the Board Place : Junagadh

Bhagchand Sukhwani / Prakash Kakkad Registered Offfce : Managing Director / Jt. Managing Director Mahasgar House. (DIN:00579112) / (DIN: 02355435) Kalwa Chowk, Junagadh .

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Mar 31, 2012

To The Members of Mahasagar Travels Limited

The Director have great pleasure in presenting the 19th Annual Report together with their Audited Statement of Accounts of the Company for the year ended 31st March, 2012. Financial Highlights :

( Rs. in Lacs)

As at 31.03.12 As at 31.03.11

Total income 4060.35 3399.04

Profit or ( Loss) before tax 111.81 72.59

Less Provision of MAT 0.00 14.57

Profit /(Loss) after Tax 111.81 58.02

DIVIDEND :

The Board of Directors of the Company has shown their inability to recommend payment of Dividend due to inadequate profits and requirements of fund .

BUSINESS PERFORMANCE AND OPERATION :

Since the Company is engaged in providing service to the tourist of the state and thereby in the engagement of the service sector industry Since the core business of the Company is to provide service, the quality, facilities and safety are the prime concern of the management. During the last financial year your Company has made sufficient effort to provide better quality services through increase in the fleet capacity of the luxurious class. Majority of the fleet have air conditioning facility apart from comfortable internal environment. Keeping in mind the Pollution Free Quality Concept, the Company has been gradually replacing in a phased manner the environment friendly Luxurious Buses in place of old buses, which would help in protecting the pollution free environment, thereby putting major stress by management on the concept of taking pollution free environmental steps as per the Pollution Free Environment Policy of the Government and the new fleets of buses will also increase the tourist business and further facilitate the tourist the latest available facilities which will increase the overall business and profitability of the Company in the coming years. However the management has taken care of the fluctuation in petroleum products by creating retail outlet.

During the current year the company has earned revenue of Rs 2297.57 lacs, last year it was 2100.83 lacs from travel division and Rs. 1762.62 lacs from petroleum division last year it was Rs, 1298.21.

INSURANCE :

All the assets of the Company have been adequately insured.

FIXED DEPOSITS:

The Company has not accepted/ renewed any fixed deposits during the year under review.

DIRECTORS :

Pursuant to the Articles of Association of the Company read with Section 256 of the Companies Act 1956. Mr. Sanjay Mehmedavadi and Mr. Kartik Upadhyay Directors of the

Company are due to retire at the ensuing Annual General Meeting of the Company and is eligible for re-appointment. Your directors recommend for their appointment.

LISTING

At present the your Company''s securities are listed on the Bombay Stock Exchange Limited., Company had passed necessary resolution for Voluntary Delisting of its Equity shares from Ahmedabad Stock Exchange Ltd., and Saurashtra Kutch Stock Exchange Limited (SKSE).

AUDITORS :

You are requested to appoint Auditors M/s. B. H. Advani & Associates for the current year (2012-13) to hold office from the conclusion of the Annual General Meeting until the conclusion of the next Annual General Meeting and to fix their Remuneration. The notes forming part of accounts referred to in Auditors'' Report are self explanatory and give complete information.

DIRECTORS'' RESPONSIBILITY STATEMENT :

Pursuant to the requirement of the section 217 (2AA) of the Companies Act 1956, with respect to the Directors'' responsibility statement it is hereby confirmed :

1. That in the preparation of the Annual accounts the applicable accounting standards had been followed along with proper explanation relating to the material departure.

2. That the Directors had selected such accounting policies and applied them consistently and made judgment 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 being the end of the financial year 2011-2012 and of the Profit of the Company for the year.

3. That the Directors had taken proper and sufficient care for maintenance of adequate accounting records in accordance with the provision of Companies Act 1956, for safeguarding assets of the Company and for preventing and detecting frauds and other irregularities.

4. That the directors had prepared the Annual Accounts on a Going Concern Basis.

PARTICULARS OF EMPLOYEES:

There was no employee during the year drawing remuneration in excess of the ceiling prescribed under the provision of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule, 1975 as amended.

CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNING AND OUT GO:

As such the Company has not received any income and incurred any expenses in foreign currency , hence details in respect of foreign exchange earning and outgo will be Nil during the period under review. The Company has always laid the utmost emphasis on conservation of energy and strict monitoring and control of all energy consuming equipment are carried out continuously.

In view of the nature of the operations, we have nothing to report on the other matters, 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.

TAXES:

Company is regularly paying Income tax, Sales Tax, RTO Tax and other statutory dues like Provident Fund, ESIC, as applicable. As regard to Service Tax appropriate provision and treatments have been made as per law.

DEMATIRIALIZATION AND TRANSFER OF THE SECURITIES :

ISIN : INE 007G01014

As on date of this report company is having NSDL connectivity of dematerialization of shares and efforts are being made to have CDSL connectivity.

REGISTRAR AND SHARE TRANSFER AGENT Link Intime (India) Pvt. Ltd.

303,Shopper''s Plaza – V,

Opp. Municipal Market, Off C. G. Road,

Navarangpura, Ahmedabad -380009

Phone : 079 – 26465179,

Email : [email protected]

REGULATORY STATEMENT :

(1) The Equity shares of your Company are listed on Mumbai Stock Exchange, and the listing fees for the financial year 2012-13 have been paid to the exchange,

(2) In conformity with the provision of Clause 32 of the listing agreement, the cash flow statement for the year ended 31-3-2012 is annexed to the accounts.

CORPORATE GOVERNANCE:

The Company has complied with the requirement regarding corporate governance as required under Clause 49 of the Listing Agreement entered in to with the Stock Exchanges where the Company''s shares are listed. A report on the Corporate Governance in this regard is made a part of this Annual Report and a Certificate from the Auditor of the Company regarding Compliance of the Conditions of the Corporate Governance is attached to this report and forming part this report.

ACKNOWLEDGMENT:

The Directors sincerely express their appreciation to the employees at all levels, Bankers, customers, investors, Government of Gujarat and Ministry of Government for their sustained support and cooperation and hope that the same will continue in future.

Date : 01-08-2012 For and On behalf of the Board

Place : Junagadh Sd/-

Registered Offfce : Managing Director

Mahasgar House. Sd/-

Kalwa Chowk, Junagadh

Jt. Managing Director

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Mar 31, 2011

To The Members of Mahasagar Travels Limited

The Director have great pleasure in presenting the 18th Annual Report together with their Audited Statement of Accounts of the Company for the year ended 31st March, 2011.

Financial Highlights: (Rs. in Lacs)

As at 31.03.11 As at 31.03.10

Total income 3483.26 2921.64

Profit or (Loss) 72.60 70.63

Less Provision of MAT 14.00 11.00

Profit/(Loss) after Tax 58.02 59.63

DIVIDEND :

The Board of Directors of the Company has shown their inability to recommend payment of Dividend due to inadequate profits .

BUSINESS PERFORMANCE AND OPERATION :

Since the Company is engaged in providing service to the tourist of the state and thereby in the engagement of the service sector industry Since the core business of the Company is to provide service, the quality, facilities and safety are the prime concern of the management. During the last financial year your Company has made sufficient effort to provide better quality services through increase in the fleet capacity of the luxurious class. Majority of the fleet have air conditioning facility apart from comfortable internal environment. Keeping in mind the Pollution Free Quality Concept, the Company has been gradually replacing in a phased manner the environment friendly Luxurious Buses in place of old buses, which would help in protecting the pollution free environment, thereby putting major stress by management on the concept of taking pollution free environmental steps as per the Pollution Free Environment Policy of the Government and the new fleets of buses will also increase the tourist business and further facilitate the tourist the latest available facilities which will increase the overall business and profitability of the Company in the coming years. However the management has taken care of the fluctuation in petroleum products by creating retail outlet.

During the current year the company has earned revenue of Rs.84 lacs last year (09-10 ) it was 9.4 lacs from real estate section.

INSURANCE :

All the assets of the Company have been adequately insured.

FIXED DEPOSITS:

The Company has not accepted/ renewed any fixed deposits during the year under review. DIRECTORS :

Pursuant to the Articles of Association of the Company read with Section 256 of the Companies Act 1956. Mr. Ravi Karia and Mr. Amit Pande Directors of the Company are due to retire at the ensuing Annual General Meeting of the Company and is eligible for re-appointment. Your directors recommend for their appointment.

LISTING

At present the your Company's securities are listed on the Bombay Stock Exchange Limited., Company had passed necessary resolution for Voluntary Delisting of its Equity shares from Ahmedabad Stock Exchange Ltd., and Saurashtra Kutch Stock Exchange Limited (SKSE).

AUDITORS :

You are requested to appoint Auditors M/s. B. H.Advani & Associates for the current year (2011-

12) to hold office from the conclusion of the Annual General Meeting until the conclusion of the next Annual General Meeting and to fix their Remuneration. The notes forming part of accounts referred to in Auditors' Report are self explanatory and give complete information.

DIRECTORS' RESPONSIBILITY STATEMENT :

Pursuant to the requirement of the section 217 (2AA) of the Companies Act 1956, with respect to the Directors' responsibility statement it is hereby confirmed :

1. That in the preparation of the Annual accounts the applicable accounting standards had been followed along with proper explanation relating to the material departure :

2. That the Directors had selected such accounting policies and applied them consistently and made judgment 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, 2011 being the end of the financial year 2010-2011 and of the profit or loss of the Company for that period.

3. That the Directors had taken proper and sufficient care for maintenance of adequate accounting records in accordance will the provision of Companies Act 1956, for safeguarding assets of the Company and for preventing and detecting frauds and other irregularities.

4. That the directors had prepared the Annual Accounts on a Going Concern Basis. PARTICULARS OF EMPLOYEES:

There was no employee during the year drawing remuneration in excess of the ceiling prescribed under the provision of Section 217(2A)of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule, 1975 as amended.

CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNING AND OUTGO :

As such the Company has not received any income and incurred any expenses in foreign currency , hence details in respect of foreign exchange earning and outgo will be nil during the period under review. The Company has always laid the utmost emphasis on conservation of energy and strict monitoring and control of all energy consuming equipment are carried out continuously.

In view of the nature of the operations, we have nothing to report on the other matters, 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.

TAXES:

Company is regularly paying Income tax, Sales Tax, RTO Tax and other statutory dues like Provident Fund, ESIC, as applicable. As regard to Service Tax appropriate provision and treatments have been made as per law.

DEMATIRIALIZATION AND TRANSFER OF THE SECURITIES :

ISIN: INE 007G01014

As on date of this report company is having NSDl connectivity of dematerialization of shares and efforts are being made to have CDSL connectivity.

REGISTRAR AND SHARE TRANSFER AGENT Link In time (India) Pvt. Ltd.

211, Shudarshan Complex,

Mithakhali Six Road, Navarangpura,

Ahmedabad 380 009.

REGULATORY STATEMENT :

(1) The Equity shares of your Company are listed on Mumbai Stock Exchange, and the listing fees for the financial year 2011-12 have been paid to the exchange,

(2) In conformity with the provision of Clause 32 of the listing agreement, the cash flow statement for the year ended 31-3-2011 is annexed to the accounts.

CORPORATE GOVERNANCE:

The Company has complied with the requirement regarding corporate governance as required under Clause 49 of the Listing Agreement entered in to with the Stock Exchanges where the Company's shares are listed. A report on the Corporate Governance in this regard is made a part of this Annual Report and a Certificate from the Auditor of the Company regarding Compliance of the Conditions of the Corporate Governance is attached to this report and forming part this report.

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY OUTLOOK:

During the period under review there were tremendous growth shown in the markets, GDP was much higher than earlier years. Further travel and tourism industries are growing on rapidly. Realty sector growing steadily.

Current scenario are very impressive there is lot of potential demand for the next years.

2. OPPORTUNITIES AND THREATS:

Since the Company has started business in real estate sector, petroleum sector and been engaged in to the service sector, the main concern of the management is to provide best quality services to the customer. Safety, discipline as to the timing, comfort is the main parameters. Government policies and regional policies can affect the performance of the company. New players are joining in the competition. Company is planning to develop more area related to tourism, hotel business and infrastructure facilities and in construction & real estate fields.

International market is very volatile now a days with respect to petroleum products and real estate sector in India facing many challenges for the new development.

3. INITIATIVES

As we know that the customers are becoming more quality conscious which calls for continuous up gradation in the available methods and the technology deployed which will yield better realization to the company. The another niche for the Company is to maximum utilization of the Parcel business which can earn maximum revenues to the company at a negligible cost. Growing competition and drastic change of the life style of the people thereby to constantly make better quality service to satisfy the need of people is the concern of the management.

Since July 2006 the company has obtained dealership of fuel pump from IOC with a view to tap additional profits from retail trading activities in petroleum products as well as to meet its own fuel requirement. Setting up of own fuel station for own consumption has drastically reduced the cost of fuel consumption of the company which is very well reflected the operating results.

Company planning to grab infrastructure development opportunities related to real estate, travel and tourism.

4. RISKS AND CONCERNS;

The Company is engaged travel business and major fluctuation in the price of the petroleum product having vital impact on the profitability and performance. International market having great effect on increase in the crude price and increase in dollar value against the rupee is also a matter of concern. Realty sector in India has shown some slow movements, market is becoming more steady and higher inflation rate leads government to curb financial resources to realty sector.

5. INTERNAL CONTROL SYSTEM:

The Company has adequate system of control implemented by the management towards achieving efficiency in the operation, optimum utilization of resources and effective monitoring thereof and compliance with applicable laws.

6. HUMAN RESOURCES:

The Company attaches priority to human resources development, with focus on regular up gradation of the knowledge and skills of our employees and equipping them with the necessary expertise to meet the challenges of change and growth successfully.

ACKNOWLEDGMENT:

The Directors sincerely express their appreciation to the employees at all levels, Bankers, custom- errs, investors, Government of Gujarat and Ministry of Government for their sustained support and cooperation and hope that the same will continue in future.

Date : 20-08-2011 For and On behalf of the Board

Place : Junagadh

Registered office : Sd/-

Mahasgar House. Managing Director

Kalwa Chowk, Junagadh . Sd/-

Jt. Managing Director

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Mar 31, 2010

The Director have great pleasure in presenting the 17th Annual Report together with their Audited Statement of Accounts of the Company for the year ended 31st March, 2010.

Financial Highlights :

Rs. in Lacs

As at 31.03.10 As at 31.03.09

Total income 2921.64 2618.00

Profit or ( Loss) (706.33) (116.22)

Less Provision of FBT 0.00 0.69

Profit /(Loss) after Tax 596.33 (116.91)

DIVIDEND :

The Board of Directors of the Company has shown their inability to recommend payment of Dividend due to inadequate profits .

BUSINESS PERFORMANCE AND OPERATION :

Since the Company is engaged in providing service to the tourist of the state and thereby in the engagement of the service sector industry . Since the core business of the Company is to provide service, the quality, facilities and safety are the prime concern of the management. During the last financial year your Company has made sufficient effort to provide better quality services through increase in the fleet capacity of the luxurious class. Majority of the fleet have air conditioning facility apart from comfortable internal environment. Keeping in mind the Pollution Free Quality Concept, the Company has been gradually replacing in a phased manner the environment friendly Luxurious Buses in place of old buses, which would help in protecting the pollution free environment, thereby putting major stress by management on the concept of taking pollution free environmental steps as per the Pollution Free Environment Policy of the Government and the new fleets of buses will also increase the tourist business and further facilitate the tourist the latest available facilities which will increase the overall business and profitability of the Company in the coming years. However the management has taken care of the fluctuation in petroleum products by creating retail outlet.

During the current year the company has earned revenue of Rs. 9.4 lacs last year (08-09) it was 42.94 lacs form real estate sector.

INSURANCE:

All the assets of the Company have been adequately insured.

FIXED DEPOSITS:

The Company has not accepted / renewed any fixed deposits during the year under review.

DIRECTORS :

Pursuant to the Artistes of Association of the Company read with Section 256 of the Companies Act 1956. Mr. Prakash K. Kakkad and Mr. Bhagchand G. Sukhwani Directors of the Company are due to retire at the ensuing Annual General Meeting of the Company and is eligible for re-appointment.

LISTING

At present the your Company''s securities are listed on the Bombay Stock Exchange Limited., Company had passed necessary resolution for Voluntary Delisting of its Equity shares from Ahmadabad Stock Exchange Ltd., and Saurashtra Kutch Stock Exchange Limited (SKSE).

AUDITORS :

You are requested to appoint Auditors M/s. B. H. Advani& Associates for the current year (2010- 11) to hold office from the conclusion of the Annual General Meeting until the conclusion of the next Annual General Meeting and to fix their Remuneration. The notes forming part of accounts referred to in Auditors'' Report are self explanatory and give complete information.

DIRECTORS'' RESPONSIBILITY STATEMENT :

Pursuant to the requirement of the section 217 (2AA) of the Companies Act 1956, with respect to the Directors'' responsibility statement it is hereby confirmed :

1 That in the preparation of the Annual accounts the applicable accounting standards had been followed along with proper explanation relating to the material departure :

2. That the Directors had selected such accounting policies and applied them consistently and made judgment 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, 2010 being the end of the financial year 2009-2010 and of the profit / (loss) of the Company for that period.

3 That the Directors had taken proper and sufficient care for maintenance of adequate accounting records in accordance with the provision of Companies Act 1956, for safeguarding assets of the Company and for preventing and detecting frauds and other irregularities.

4 That the directors had prepared the Annual Accounts on a Going Concern Basis.

PARTICULARS OF EMPLOYEES:

There was no employee during the year drawing remuneration in excess of the ceiling prescribed under the provision of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule, 1975 as amended.

CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNING AND OUTGO :

As such the Company has not received any income and incurred any expenses in foreign currency, hence details in respect of foreign exchange earning and outgo will be nil during the period under review The Company has always laid the utmost emphasis on conservation of energy and strict monitoring and control of all energy consuming equipment are carried out continuously.

In view of the nature of the operations, we have nothing to report on the other matters, 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

TAXES:

Company is regularly paying Income tax, Sales Tax, RTO Tax and other statutory dues like Provided Fund ESIC. as applicable As regard to Service Tax appropriate provision and treatments have been made as per law.

DEMATIRIALIZATION AND TRANSFER OF THE SECURITIES :

SIN INE 007G01014

As on date of this report company is having NSDL connectivity of dematerialization of shares and efforts aie being made to have CDSL connectivity.

REGISTRAR AND SHARE TRANSFER AGENT

Link In time (India) Pvt. Ltd.

211, Shudarshan Complex, Mithakhali Six Road,

Navarangpura,

Ahmedabad 380 009

REGULATORY STATEMENT :

(1) The Equity shares of your Company are listed on Mumbai Stock Exchange, and the listing fees for the financial year 2010-11 have been paid to the exchange.

(2) In conformity with the provision of Clause 32 of the listing agreement, the cash flow statement for the year ended 31-3-2010 is annexed to the accounts.

CORPORATE GOVERNANCE :

The Company has complied with the requirement regarding corporate governance as required under Clause 49 of the Listing Agreement entered in to with the Stock Exchanges where the Company''s shares are listed. A report on the Corporate Governance in this regard is made a part of this Annual Report and a Certificate from the Auditor of the Company regarding Compliance of the Conditions of the Corporate Governance is attached to this report and forming part this report.

ACKNOWLEDGMENT:

The Directors sincerely express their appreciation to the employees at all levels, Bankers, customers, investors, Government of Gujarat and Ministry of Government for their sustained support and cooperation and hope that the same will continue in future.

Date : 10-08-2010 For and On behalf of the Board

Place : Junagadh

Registered office : Sd/-

Mahasgar House. Managing Director

Kalwa Chowk, Junagadh . Sd /-

Jt. Managing Director