To

The Members,

Your directors have pleasure in presenting the 22nd Annual General Meeting their report together with the Audited Statement of Accounts for the year ended 31st March, 2014.

FINANCIAL PERFORMANCE

Financial Results for the year ended 31-03-2014 are as under

OPERATIONS

Operations of the Company have been satisfactory during the year under review, inspite of intense competition.

PERSONNEL

There are no employees drawing salary in excess of limits prescribed under section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of employees) Amendment Rules, 1999.

AUDITORS

M/s.BNR Associates, Chartered Accountants, retire as auditors at the conclusion of this annual general meeting and being eligible offer themselves for reappointment.

DIRECTORS

Mr. B. Amaranatha Sastry retires by rotation and being eligible offer himself for reappointment. Dr. K.V. Ashok, K. Venkata Narayana & P. Gopala Krishna are being appointed as Independent Directors for a period of Three Years.

Pursuant to the provisions of section 217(2AA) of the Companies Act, 1956, your directors state:

As required under section 217(2AA) which was introduced by Companies (Amendment) Act, 2000 your Director's confirm that:-

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

(ii) The Directors had selected such accounting policies and applied them consistently and made judgements 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 on 31st March, 2014 and of the profit and loss of the company for the year ended 31st March, 2014.

(iii) The Directors have 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.

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

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis, pursuant to Clause 49 of the Listing Agreements, forms part of this report and the same is annexed herein.

CORPORATE GOVERNANCE::

In terms of the Listing Agreement, a report of Corporate Governance along with the Auditors'Report is also annexed herewith, forming part of the Annual Report.

CONSERVATION OF ENERGY

The information pursuant to Section217(i)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Directors) Rules, 1988 has not been given as the same is not applicable.

ACKNOWLEDGEMENTS

Yours directors place on record their appreciation of the support and co-operation received from the Bankers and employees of the Company.