Directors Report of Suncity Synthetics Ltd.

Mar 31, 2015

Dear Members,

The directors have pleasure in presenting their Twenty seventh annual report and the audited statement of accounts for the year ended on 31st March, 2015 together with the auditors report thereon.

FINANCIAL RESULTS

The summarized financial results for year end 31st March 2015 are as under

Amount in Rs.

Particulars 2014-15 2013-14

Total Revenue (Including other income) 445786527 379411937

Gross Profit before Interest and depreciation 33706899 30322448

Less : Interest 17791372 13397298

Less : depreciation 20345142 11783267

Profit/loss before tax -4429615 5141883

Less: provision for tax including deferred tax (4201889) 2821488

Add: Surplus -227726 2348310

DIVIDEND

Since the company does not have profits for year hence

The directors do not recommend any dividend for the year ended 31st March 2015.

COMPANY PERFORMANCE

The company continues to operate in Plastics business mainly production of Polyester staple fiber and nylon granules. The sales for year has increased from Rs. 37,94,11,397/- to Rs.44,57,86,527/-. But net loss of Rs. 222726/- due to change in depreciation rates as per guideline of institute of chartered accountant of India.

BOARD OF DIRECTORS:

Mr. Suresh Kawar Jain Managing Director retires by rotation and is eligible for being reappointment as directors. The independent directors are proposed to be appointed for five years in terms of provisions of the Companies Act 2013. The particular of directors whose appointment is to be considered is given as annexure to notice.

AUDITORS:

M/s. N. Kumbhat & Co., Chartered Accountants, retire at this Annual General Meeting and being eligible offer themselves for reappointment. Your Company has received a letter from them to the effect that their reappointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of directors commends their reappointment.

FIXED DEPOSITS:

Your Company has not accepted any deposits from public.

CORPORATE GOVERNANCE:

Certificate of the statutory auditors regarding compliance of the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange, is enclosed.

STATUTORY INFORMATION:

(i) Information under section 217 (1) (e) of the Companies Act, 1956 read with the companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988:-

A. CONSERVATION OF ENERGY

a) Energy conversation measures taken: None at present

b) Additional investment and proposals, if any, being implemented for reduction of consumption of energy: There are no proposals.

c) Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: Does not arise.

d) Total energy consumption and energy consumption per unit of production as per Form"A" to annexure in respect of industries specified in the schedule thereto

A. Power and fuel consumption 2014-15 2013-14

(a) Electricity Purchased 3688432 3047412

Units(KWH)

Total amount Rs.in lacs 2369.70 1953.11

Rate/Unit (Rs.) 6.42 6.41

Own Generation

Units (KWH) 16650 27168

Units per liter of diesel oil 3.8 3.6

Rate/unit (Rs.) 17.55 21.75

B. TECHNOLOGY ABSORPTION

Form B

Research & Development (R & D)

1. Specific area in which R & D carried by the company: None at Present

2. Benefits derived as a result of the above R & D: Does not arise.

3. Future plan of action: At present it is not under consideration

4. Expenditure on R & D: Nil

Technology absorption, adaptation and innovation:

1. Efforts being made towards technology absorption, adaptation and innovation: None

2. Benefits derived as a result of the above efforts e.g. Product improvement cost, reduction, product development, import substitution etc. : None

3. Imported technology: Not applicable as technology has not been imported.

C. FOREIGN EXCHANGE EARNING AND OUTGO:

Earning: Rs.Nil Outgo : Rs.129.49 lacs

INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO DATE :

The company do not have any employee drawing salary in excess of limits prescribed under section 217 (2a) of the companies act, 1956 read with the companies (particulars of employees) rules 1975 the particulars should be treated as nil

DIRECTORS' RESPONSIBILITY STATEMENT.

Your Directors confirm that:

(i) In the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

(ii) The Directors had 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 financial year and of the loss of the company for the year.

(iii) The Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities, and

(iv) The Directors had prepared the accounts on going concern basis.

INDUSTRIAL RELATIONS:

The industrial relations continued to be cordial during the year under review.

ACKNOWLEDGMENT:

The Directors express their sincere thanks to the employees, customers, suppliers, company's bankers and members of the company for their continued support.

For & On Behalf of the Board of Directors Place : Surat Date : 05/08/2015 Chairman

---

Mar 31, 2014

The Members

The directors have pleasure in presenting their Twenty Sixth annual report and the audited statement of accounts for the year ended on 31st March, 2014 together with the auditors report thereon.

FINANCIAL RESULTS

The summarized financial results for year end 31st March 2014 are as under

Amount in Rupees

Particulars 2013-14 2012-13

Total Revenue (Including other income) 379411937 81913976

Gross Profitbefore Interest and depreciation 30322448 13085115

Less: Interest 13397298 3684566

Less: depreciation 11783267 6124546

Profit/loss before tax 5141883 3276003

Less: provision fortax including deferred tax 2821488 1667502

Add: Surplus 2348310 1608501

DIVIDEND

With a view of plough back profits for working of company the directors do not recommend any dividend for the year ended31st March 2014.

COMPANY PERFORMANCE

The company continues to operate in Plastics business mainly production of nylon and polyester chips. The sales for year has increased form Rs. Rs.8,19,13,976/-to Rs.37,94,11,397/- due to efforts of management and the profits have also increased for Rs.16,08,501/- to Rs.23,48,410/-.

MANAGEMENT DISCUSSION AND ANALYSIS.

(a) Industry Structure and Developments Company is engaged in business of nylon/polyester chips/ Fibre manufacture

(b) Opportunities and Threats The industry provides ample opportunities in domestic and as well as export market However the uncertainty of raw material prices and government policies are detrimental to growth and profitability.

(c) Segmentwise or productwise Proformance Company operates in single segment and segment wise reporting is not applicable.

(d) Outlook The Company shall continue to explore its policy of expansion based on availability of resources and opportunity.

(e) Risks & ConcernsCompany do not foresee any such risk in near future, which will hamper the activities.

(f) Internal control systems and their adequacy:- Company is in the process of implementing various softwares for better control.

(g) Human Resources Management Initiatives:- The management is keenly interested this field. All the efforts are made to rationalize its manpower and make effective use of the same.

BOARD OF DIRECTORS:

Mr. Suresh Kawar Jain Managing Director retires by rotation and is eligible for being reappointment as directors. The independent directors are proposed to be appointed for five years in terms of provisions of the Companies Act 2013. The particulars of directors whose appointment is to be considered is given as annexure to notice.

AUDITORS:

M/s. N. Kumbhat&Co., Chartered Accountants, retire at this Annual General Meeting and being eligible offer themselves for reappointment. Your Company has received a letter from them to the effect that their reappointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of directors commend their reappointment.

FIXED DEPOSITS:

Your Company has not accepted any deposits from public.

CORPORATE GOVERNANCE:

Certificate of the statutory auditors regarding compliance of the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange, is enclosed..

STATUTORY INFORMATION:

(i) Information under section 217 (1) (e) of the Companies Act, 1956 read with the companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988:-

A. CONSERVATION OF ENERGY

a) Energy conversation measures taken: None at present

b) Additional investment and proposals, if any, being implemented for reduction of consumption of energy: There are no proposals.

c) Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: Does not arise.

d) Total energy consumption and energy consumption per unit of production as per Form''A" to annexure in respect of industries specified in the schedule thereto

A. Powerand fuel consumption 2013-14 2012-13

(a) Electricity Purchased 3047412 507722 Units(KWH)

Total amount Rs.in lacs 1953.11 40.06

Rate/Unit(Rs.) 6.41 7.88

Own Generation

Units (KWH) 27168 19665

Units per liter of diesel oil 3.6 4.10

Rate/unit(Rs.) 21.75 12.5

B. TECHNOLOGY ABSORPTION Form B

Research & Development (R & D)

Specific area in which R & D carried by the company: None at Present Benefits derived as a result of the above R & D: Does not arise.

Future plan of action: At present it is not under consideration Expenditure on R & D: Nil

Technology absorption, adaptation and innovation:

Efforts being made towards technology absorption, adaptation and innovation: None

Benefits derived as a result of the above efforts e.g. Product improvement cost, reduction, product development, import substitution etc.: None

Imported technology: Not applicable as technology has not been imported.

C. FOREIGN EXCHANGE EARNING AND OUTGO: Earning: Rs.Nil Outgo: Rs.24.66 lacs

INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UPTO DATE :

The company do not have any employee drawing salary in excess of limits prescribed under section 217 (2a) of the companies act, 1956 read with the companies (particulars of employees) rules 1975 the particulars should be treated as nil

DIRECTORS'' RESPONSIBILITY STATEMENT.

Your Directors confirm that:

(i) in the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

(ii) the Directors had 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 offinancial yearand of the loss of the company forthe year.

(iii) the Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities, and

(iv) the Directors had prepared the accounts on going concern basis.

INDUSTRIAL RELATIONS:

The industrial relations continued to be cordial during the year under review.

ACKNOWLEDGMENT:

The Directors express their sincere thanks to the employees, customers, suppliers, company''s bankers and members of the company for their continued support.

Place : Surat Date : 02/09/2014 For & On Behalfofthe Board of Directors

---

Mar 31, 2013

To , The Members

The directors have pleasure in presenting their Twenty Fifth annual report and the audited statement of accounts for the year ended on 31st March, 2013 together with the auditor''s report thereon.

FINANCIAL RESULTS

The summarized financial results for yearend 31st March 2013 are as under

Amount in Rs.

Particulars 2012-13 2011-12

Revenue from operations 84337335 100463528

Other Income 536641 1649991

Financial Costs 3684566 302265

Depreciation 6124546 4792794

Profit before tax 3276003 6974809

Less: provision for tax including deferred tax 1667502 696576

Add: Surplus 1608501 6278233

REVIEW OF OPERATIONS:

During the year there is a marginal increase in operating profits however higher interest and depreciation costs have brought down the profits for Rs.69,74,809/- in year 31.03.2012 to Rs. 16,67,502/- in current financial year. . The company has made addition of Rs.11, 78, 39,901/- in fixed assets during the year including investment of Rs.8,82,38,720/- in plant and machinery. The benefits of investments shall accrue in coming years.

DIVIDEND

With a view of plough back profits for working of company the directors do not recommend any dividend for the year ended31st March 2011.

COMPANY PERFORMANCE

The company continues to operate in Plastics RECYCLING business mainly production of nylon chips and polyester fibre. However the availability of nylon wastes the principal raw materials is main constraint for increased volumes. The company is proposing diversifying in other products to ensure sustainability.

MANAGEMENT DISCUSSION AND ANALYSIS.

(a) Industry Structure and Developments :- Company is engaged in business of Recycling of nylon/polyester waste .

(b) Opportunities and Threats :- The industry provides ample opportunities in domestic and as well as export market However the uncertainty of raw material prices and government policies are detrimental to growth and profitability .

(c) Segmentwise or productwise Proformance :- Company operates in single segment and segment wise reporting is not applicable.

(d) Outlook :- The Company shall continue to explore its policy of expansion based on availability of resources and opportunity .

(e) Risks & Concerns :- Company do not foresee any such risk in near future, which will hamper the activities.

(f) Internal control systems and their adequacy :- Company is in the process of implementing various softwares for better control.

(g) Human Resources Mamagement Initiatives:- The management is keenly interested this field. All the efforts are made to rationalize its manpower and make effective use of the same.

BOARD OF DIRECTORS:

M.s Poonam Jain and Madan ji Kothari retire by rotation at ensuing Annual general meeting. They are eligible for reappointment. However Mr. Madanraj Jain has not offered himself for reappointment and hence directos have recommended appointment of Mr .Deepak Sharma s/o Poonam chand Sharma as an Independent director and Board of directors also recommends the reappointment of Mrs. Poonam Jain.

AUDITORS :

M/s. N. Kumbhat & Co., Chartered Accountants, retire at this Annual General Meeting and being eligible offer themselves for reappointment. Your Company has received a letter from them to the effect that their reappointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of directors commends their reappointment.

FIXED DEPOSITS:

Your Company has not accepted any deposits from public.

CORPORATE GOVERNANCE:

Certificate of the statutory auditors regarding compliance of the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange, is enclosed..

STATUTORY INFORMATION:

(i) Information under section 217 (1) (e) of the Companies Act, 1956 read with the companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988:-

A. CONSERVATION OF ENERGY

Energy conversation measures taken: None at present

Additional investment and proposals, if any, being implemented for reduction of consumption of energy: There are no proposals.

Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: Does not arise.

Total energy consumption and energy consumption per unit of production as per Form”A” to annexure in respect of industries specified in the schedule thereto

B. TECHNOLOGY ABSORPTION

Form B

Research & Development (R & D)

Specific area in which R & D carried by the company: None at Present Benefits derived as a result of the above R & D: Does not arise. Future plan of action: At present it is not under consideration Expenditure on R & D: Nil

Technology absorption, adaptation and innovation:

Efforts being made towards technology absorption, adaptation and innovation: None

Benefits derived as a result of the above efforts e.g. Product improvement cost, reduction, product development, import substitution etc. : None Imported technology: Not applicable as technology has not been imported.

C. FOREIGN EXCHANGE EARNING AND OUTGO:

Earning: Rs.Nil Outgo : Rs 37711047/-

INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO DATE :

The company do not have any employee drawing salary in excess of limits prescribed under section 217 (2a) of the companies act, 1956 read with the companies (particulars of employees) rules 1975 the particulars should be treated as nil

DIRECTORS'' RESPONSIBILITY STATEMENT.

Your Directors confirm that:

(i) in the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

(ii) the Directors had 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 financial year and of the loss of the company for the year.

(iii) the Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities, and

(iv) the Directors had prepared the accounts on going concern basis.

INDUSTRIAL RELATIONS:

The industrial relations continued to be cordial during the year under review.

ACKNOWLEDGMENT:

The Directors express their sincere thanks to the employees, customers, suppliers, company''s bankers and members of the company for their continued support.

Place : Surat

Date : 27.05.2013 For & On Behalf of the Board of Directors

Chairman

---

Mar 31, 2012

To, The Members

The directors have pleasure in presenting their Twenty Fourth annual report and the audited statement of accounts for the year ended on 31st March, 2012 together with the auditors report thereon.

FINANCIAL RESULTS

The summarised financial results for year end 31st March 2012 are as under

Rupees in lacs

Particulars 2011-12 2010-11

Total revenue 1004,63 1086.24

Gross Profit before Interest and depreciation 121.84 140.13

Less: Interest 3.02 0.36

Less: depreciation 47.93 45.27

Less: Loss on sale of Fixed Assets 1.15 0.00

Profit/loss before tax 69.74 94.50

Less: provision for tax including deferred tax 6.96 53.60

Add: Surplus 62.78 40.89

DIVIDEND

With a view of plough back profits for working of company the directors do not recommend any dividend for the year ended 31st March 2012.

COMPANY PERFORMANCE

The company continues to operate in Plastics business mainly production of nylon and polyester chips. The sales for the year were Rs. 1004.63 Lacs as compared to Rs. 1086.24 Lacs in previous year which shows nominal decline. The profits however has increased form Rs.40.89 lacs in previous year to Rs.62.78 lacs in current year.

AUDITORS:

M/s. N. Kumbhat & Co., Chartered Accountants, retire at this Annual General Meeting and being eligible offer themselves for reappointment. Your Company has received a ietterfrom them to the effect that their reappointment, if made, will be in accordance with the provisions of Section 224(1 B) of the Companies Act, 1956. The Board of directors commends their reappointment. FIXED DEPOSITS:

Your Company has not accepted any deposits from public.

CORPORATE GOVERNANCE:

Certificate of the statutory auditors regarding compliance of the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange, is enclosed..

STATUTORY INFORMATION:

(i) Information under section 217 (1) (e) of the Companies Act, 1956 read with the companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988:-

A. CONSERVATION OF ENERGY

Energy conversation measures taken: None at present

Additional investment and proposals, if any, being implemented for reduction of consumption of energy: There are no proposals.

Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods:

Does not arise.

Total energy consumption and energy consumption per unit of production as per Form''A" to annexure in respect of industries specified in the schedule thereto

B. TECHNOLOGY ABSORPTION

Form B

Research & Development (R & D)

1 Specific area in which R&D carried by the company: None at Present

2 Benefits derived as a result of the above R&D: Does not arise.

3 Future plan of action: At present it is not under consideration

4. Expenditure on R & D: Nil

Technology absorption, adaptation and innovation:

1. Efforts being made towards technology absorption, adaptation and innovation: None

2. Benefits derived as a result of the above efforts e.g. Product improvement cost, reduction, product development, import substitution etc. : None

3. Imported technology: Not applicable as technology has not been imported.

C. FOREIGN EXCHANGE EARNING AND OUTGO:

Earning: Rs. Nil

Outgo: Rs. 144.10 Lac

INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO DATE :

The company do not have any employee drawing salary in excess of limits prescribed under section 217 (2a) of the companies act, 1956 read with the companies (particulars of employees) rules 1975 the particulars should be treated as nil

DIRECTORS'' RESPONSIBILITY STATEMENT.

Your Directors confirm that:

(i) in the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

(ii) the Directors had selected such accounting policies and applied them consistently and madejudgments 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 financial year and of the loss of the company for the year.

(iii) the Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the CompaniesAct, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities, and

(iv) the Directors had prepared the accounts on going concern basis.

INDUSTRIAL RELATIONS:

The industrial relations continued to be cordial during the year under review.

ACKNOWLEDGMENT:

The Directors express their sincere thanks to the employees, customers, suppliers, company''s bankers and members of the company for their continued support.

Place : Surat

Date : 28.08.2012 For & On Behalf of the Board of Directors

Chairman

---

Mar 31, 2011

The Members

The directors have pleasure in presenting their Twenty second annual report and the audited statement of accounts for the year ended on 31st March, 2011 together with the auditors report thereon.

FINANCIAL RESULTS

The summarized financial results for year end 31st March 2011 are as under

Rupees in lacs

Particulars 2010-11 2009-10

Sales and services 1086.24 535.62

Gross Profit before Interest and 140.13 67.08 depreciation

Less : Interest 0.36 3.06

Less : depreciation 45.27 44.52

Profit/loss before tax 94.50 19.50

Less: provision for tax including 53.60 -1.40 deferred tax

Add: Surplus 40.89 20.90

DIVIDEND

With a view of plough back profits for working of company the directors do not recommend any dividend for the year ended31st March 2011.

COMPANY PERFORMANCE

The company continues to operate in Plastics business mainly production of nylon and polyester chips. The company's sales have doubled this year as it has increased form Rs.535.62 lacs to Rs.1086.24 lacs and company has earned profit of Rs.53.60 lacs after depreciation and interest but before provision of Tax.

MANAGEMENT DISCUSSION AND ANALYSIS.

(A) Industry Structure and Developments :- Company is engaged in business of nylon/polyester chips manufacture

(b) Opportunities and Threats :- The industry provides ample opportunities in domestic and as well as export market However the uncertainty of raw material prices and government policies are detrimental to growth and profitability .

(c) Segment-wise or product-wise Performance :- Company operates in single segment and segment wise reporting is not applicable.

(d) Outlook :- The Company shall continue to explore its policy of expansion/diversification based on availability of resources and opportunity The company is planning to enter into manufacturing business of Polyester staple fibre from Pet bottles.

(e) Risks & Concerns :- Company do not foresee any such risk in near future, which will hamper the activities.

(f) Internal control systems and their adequacy :- Company is in the process of implementing various software for better control.

(g) Human Resources Management Initiatives:- The management is keenly interested this field. All the efforts are made to rationalize its manpower and make effective use of the same.

BOARD OF DIRECTORS:

M.s Poonam Jain was appointed as additional director during the year. It is proposed to appoint her as director in forthcoming Annual General Meeting. Mr. Suresh Jain retires by rotation and is eligible for being reappointment as directors.

AUDITORS :

M/s. N. Kumbhat & Co., Chartered Accountants, retire at this Annual General Meeting and being eligible offer themselves for reappointment. Your Company has received a letter from them to the effect that their reappointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of directors commend their reappointment.

FIXED DEPOSITS :

Your Company has not accepted any deposits from public.

CORPORATE GOVERNANCE :

Certificate of the statutory auditors regarding compliance of the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange, is enclosed..

STATUTORY INFORMATION :

(i) Information under section 217 (1) (e) of the Companies Act, 1956 read with the companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988:-

B. TECHNOLOGY ABSORPTION Form B Research & Development (R & D)

Specific area in which R & D carried by the company: None at Present Benefits derived as a result of the above R & D: Does not arise. Future plan of action: At present it is not under consideration Expenditure on R & D: Nil

Technology absorption, adaptation and innovation:

Efforts being made towards technology absorption, adaptation and innovation: None

Benefits derived as a result of the above efforts e.g. Product improvement cost, reduction, product development,

import substitution etc. : None

Imported technology : Not applicable as technology has not been imported.

INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO DATE :

The company do not have any employee drawing salary in excess of limits prescribed under section 217 (2a) of the companies act, 1956 read with the companies (particulars of employees) rules 1975 the particulars should be treated as nil

DIRECTORS' RESPONSIBILITY STATEMENT.

Your Directors confirm that:

(i) in the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

(ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimatesthat 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 financialyear and of the loss of the company for the year.

(iii) the Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities, and

(iv) the Directors had prepared the accounts on going concern basis.

INDUSTRIAL RELATIONS:

The industrial relations continued to be cordial during the year under review.

ACKNOWLEDGMENT:

The Directors express their sincere thanks to the employees, customers, suppliers, company's bankers and members of the company for their continued support.

For & On Behalf of the Board of Directors Chairman Place : Surat Date : 30.06.2011

---

Mar 31, 2010

The directors have pleasure in presenting their Twenty Second annual report and the audited statement of accounts for the year ended on 31st March, 2010 together with the auditors report thereon.

FINANCIAL RESULTS

The summarized financial results for year end 31st March 2010 are as under

Rupees in lacs

Particulars 2009-10 2008-09

Sates and services 535.62 743.97

Gross Profit before Interest and depreciation 66.84 -93.65

Less: Interest 2.81 10.59

Less: depreciation 44.52 43.45

Profit/loss before tax 19.51 -147.69

Less: provision for tax including deferred tax -1.39 -50.13

Add: Surplus 20.90 -97.56

DIVIDEND

With a view of inadequate profits the directors do not recommend any dividend for the year ended 31st March 2010.

COMPANY PERFORMANCE

The company continues to operate in Plastics business mainly production of nylon and polyester chips. The sales have decreased to Rs.53562041.00 form previous year sales of Rs.74397262.00 due to lack of demand. The company however earned profit of Rs.19.50 lacs against loss during last year. The directors are making before to increase profitability.

MANAGEMENT DISCUSSION AND ANALYSIS.

(a) Industry Structure and Developments :- Company is engaged in business of nylon/polyester chips manufacture

(b) Opportunities and Threats :- The industry provides ample opportunities in domestic and as well as export market However the uncertainty of raw material prices and government policies are detrimental to growth and profitability.

(c) Segment-wise or product-wise Performance :- Company operates in single segment and segment wise reporting is not applicable.

(d) Outlook :- The Company shall continue to explore its policy of expansion based on availability of resources and opportunity.

(e) Risks & Concerns:- Company do not foresee any such risk in near future, which will hamper the activities.

(f) Internal control systems and their adequacy :- Company is in the process of implementing various software for better control.

(g) Human Resources Managements Initiatives:- The management is keenly interested this field. All the efforts are made to rationalize its manpower and make effective use of the same.

BOARD OF DIRECTORS:

There was no change in constitution of Board of Directors during the year.

AUDITORS:

M/s. N. Kumbhat & Co., Chartered Accountants, retire at this Annual General Meeting and being eligible offer themselves for reappointment. Your Company has received a letter from them to the effect that their reappointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of directors commend their reappointment.

FIXED DEPOSITS:

Your Company has not accepted any deposits from public.

CORPORATE GOVERNANCE:

Certificate of the statutory auditors regarding compliance of the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange, is enclosed..

STATUTORY INFORMATION:

(i) Information under section 217 (1) (e) of the Companies Act, 1956 read with the companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988:-

A. CONSERVATION OF ENERGY

Energy conversation measures taken: None at present

Additional investment and proposals, if any, being implemented for reduction of consumption of energy: There are no proposals.

Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: Does notarise.

Total energy consumption and energy consumption per unit of production as per Form "A" to annexure in respect of industries specified in the schedule thereto

Power and fuel consumption 2009-10 2008-09

(a) Electricity Purchased

Units(KWH) 367568 600809

Total amount Rs. in lacs 21.08 28.80

Rate/Unit (Rs.) 5.74 4.80

Own Generation

Units (KWH) 760 5425

Units per liter of diesel oil 3.80 3.62

Rate/unit (Rs.) 9.92 9.68

B. TECHNOLOGY ABSORPTION

Form B

Research & Development (R & D)

1. Specific area in which R & D carried by the company: None at Present

2. Benefits derived as a result of the above R&D: Does not arise.

3. Future plan of action: At present it is not under consideration

4. Expenditure on R&D: Nil

Technology absorption, adaptation and innovation:

1. Efforts being made towards technology absorption, adaptation and innovation: None

2. Benefits derived as a result of the above efforts e.g. Product improvement cost, reduction, product development, import substitution etc.: None

3. Imported technology: Not applicable as technology has not been imported.

C. FOREIGN EXCHANGE EARNING AND OUTGO:

Earning: Rs:0.00l Outgo: Rs 45.88 Lacs

INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO DATE :

The company do not have any employee drawing salary in excess of limits prescribed under section 217 (2a) of the companies act, 1956 read with the companies (particulars of employees) rules 1975 the particulars should be treated as nil.

DIRECTORS RESPONSIBILITY STATEMENT.

Your Directors confirm that:

(i) in the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

(ii) the Directors had 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 financial year and of the loss of the company for the year.

(iii) the Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities, and

(iv) the Directors had prepared the accounts on going concern basis.

INDUSTRIAL RELATIONS:

The industrial relations continued to be cordial during the year under review.

ACKNOWLEDGMENT:

The Directors express their sincere thanks to the employees, customers, suppliers, companys bankers and members of the company for their continued support.

Place: Surat

Date : 31.05.2010 For & On Behalf of the Board of Directors

Chairman