We are delighted to present before you the Twenty Sixth Annual Report on business and operations along with the Audited financial statements and the Auditors Report of your company for the financial year ended March 31, 2014.

                                                        (Rs. in Lakhs)

Particulars                            For the Year       For the Year
                                   Ended 31-03-2014   Ended 31-03-2013

Total Revenues                              1739.94            3328.59

Total Expenditure                           1654.78            2497.49

Earnings before Interest,
Depreciation & Tax                            85.16             831.11

Interest                                      75.02             811.21

Depreciation & Amortisation                    8.51               9.98

Profit/(Loss) before tax                       1.62               9.92

Provision for Taxes                            0.31               0.44

Profit after tax                               2.01              10.36

Surplus/(Deficit) brought forward
form Pervious year                            55.08             539.72

Tranfered from forfited Shares                    -                  -

Balance in Profit & Loss Account             552.09             550.08

DIVIDEND:

In view of the working capital requirements for the on going & forthcoming projects, the Board had not recommended any dividend.

FUTURE PROSPECTS:

Your company views the future with optimism, as the demand for Housing is growing day by day and keeping in view the demand the management is anticipating good increase in turnover during the forthcoming years.

DIRECTORS:

Sri T. Sri Rambabu, Sri P.S.P. Bhushan Maruthi and Sri B.V.R. Kumar Maruthi shall retire by rotation at the ensuing Annual General Meeting and being eligible are proposed for re-appointment.

AUDITORS:

The Statutory Auditors M/s SURESH AND BABU, Chartered Accountants, Vijayawada retire at the ensuing Annual General Meeting, and have confirmed their eligibility and willingness to accept office, if re-appointed.

INFORMATION AS PER SEC. 217(2A) OF THE COMPANIES ACT, 1956

There were no employees in receipt of remuneration in excess of the amounts specified in Section 217(2A) of the Companies Act, 1956 read with Rule 2 of Companies (particulars of Employees) Rules of 1975, as amended.,

CONSERVATION of Energy ,Technology absorption, Foreign Exchange and outgo:

The Rules regarding conservation of Energy and technical absorption are not applicable to the company. The company has not earned any foreign exchange and has not incurred any expenses in foreign currency.

CORPORATE GOVERNANCE:

We strive to maintain high standards of corporate governance in all our interactions with our stake holders. The company has confirmed the corporate governance code as stipulated under the listing agreement with the stock exchange. As per clause 49 of the Listing Agreement our company has obtained corporate governance report from the statutory auditors of the company and annexed to this report and a separate section on Management Analysis and Discussion has been forming part of this report.

Directors' Responsibility Statement:

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

i) That in the presentation of Annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 or loss of the company for that period.

iii) That 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 frauds and other irregularities.

iv) That the Directors have prepared the accounts on a going concern basis.

ACKNOWLEDGEMENT:

Your Directors take this opportunity to express their thanks to the various State Government Departments, Development Authorities, Banks & Financial Institutions, Customers and Suppliers for their valuable assistance and support.

Your Directors wish to place on record their appreciation of the efforts put in by the employees of your company at all levels.

                                        For and on behalf of the Board

                                                                  Sd/-
Place : Vijayawada                                 LINGAM RAVINDRA RAO
Date : 05.05.2014                                    Managing Director