The Board of Directors of your Company has the pleasure of presenting Annual Report of AVINASH INFORMATION TECHNOLOGIES LIMITED together with the Audited Statements of Accounts for the year ended the March 31,2010

Financial Performance of the Company : Rs. In Lacs

Particulars As on As on
                                     31/03/20010    31/03/2009

Total Income                                  NIL          NIL

Total Expenditure                          148.75       288.17

Profit/Loss for the 
year before interest, 
depreciation & Tax                          (0.15)       (0.15)

Interest                                   125.12       264.54

Depreciation                                23.48        23.48

Profit/Loss Before Taxation               (148.75)     (288.17)

Provision for Taxation                        NIL          NIL

Profit/Loss After Taxation                (148.75)     (288.17)

Financial Performance of the Company :

The total income of your Company for the year 2009-10 stood at Rs. Nil mainly on account of lower profit from sale of shares, partly a deliberate decision to maximize returns which was not possible owing to market indices remaining at lower levels during the year.

Dividend:

Since the Company has incurred loss during the financial year, your Company does not recommend divided for the year 2009-2010

Economics Scenario:

The year under review has witnessed overall slowdown in the word economy and tight liquidity position in the market as a result of Globalization and Liberalization leading to stiff competition in the market. The overall economic scenario has been badly affected due to the calamities like earthquakes, riots and also due to global depression. However, due to the sincere efforts of the management the Company has been able to the even in such adverse situation.

Fixed Assets :

The Company has not accepted any deposits failing within the purview of Companies Acceptance of Deposit Rules, 1975. Particulars of Employees

The Information as required u/s. 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1988 amended by Companies (Particulars of Employees) Rules, 1999 is NIL.

Director:

Mr. Ashish Bhavsar, Directors of the Company are liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.

Directors' Responsibility Statement:

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed:

i) that in the preparation 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 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 the financial year and of the profit or loss of the Company for the year under review;

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 fraud and other irregularities;

iv) that the Directors have prepared the annual accounts for the year ended on March 31, 2010 on a 'going concern basis'.

Auditors:

Ingit Modi Associates, Chartered Accountants, Ahmedabad, the retiring auditors being eligible offer themselves for re- appointment. Members are requested to appoint them as auditors of the company.

Reply to the Qualification Remarks by Statuary Auditors :

With reference to the observations made in the Auditors Report, the Notes on Accounts as contained in the Annual Accounts are self-explanatory and therefore, do not require for any further comments under section 217(3) of the Companies Act, 1956.

Management Discussion and Analysis :

(i) Global Scenario :

The global economy has been in the throes of a crisis after prolonged buoyancy by rising asset prices. The bankruptcy of different Companies triggered a bigger run on key funding markets, which led to large scale bank rescues, deposit and debt guarantee. Thus the Company is trying to cope up with the situations in the present scenario.

(ii) Initiatives of the Company :

The current crisis has revealed the 'procyclicality' created by the tendency of financial intermediaries to become less prudent during cyclical upturns and more prudent during downturns. Your Company has responded swiftly to the challenges in economic environment.

(iii) Opportunities, Threats and Future Outlook :

With an upswing in its performance, mood and commitment of the employees, your Company is well poised to expand its operations and performance .in accordance with its business plan.

Your Company will explore possibilities for new business for short term and medium term.

The overall economic scenario continues to be subdued in the short term perspective and as such, till the overall economy gets an upward momentum, the credit off-take and pressure on yield would remain, various measures announced are expected to provide positive impact on industries like Oil & Gas, Power, Construction, Textiles, Automobiles, Petrochemicals, Household Appliances and the like.

(iv) Risk Management:

Risk is an inherent part of the business. Your Company recognizes this and has taken strides to strengthen the risk management systems and practices.

(v) Public Deposits:

The Company has not accepted any deposit from the public during the year.

Corporate Governance:

A comprehensive report on corporate governance as stipulated under Clause 49 of the Listing Agreement is attached to this Report.

The Company has obtained a certificate from the Statutory Auditors regarding compliance of conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement and the same is annexed at the end of Corporate Governance Report.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo :

As the Company's operations do not involve any manufacturing or processing activities, the particulars as per the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1998, regarding conservation of energy and technology absorption, are not applicable. The particulars regarding expenditure and earnings in foreign exchange are Nil.

                    For, Avinash Information Technologies Limited

                               Pran s Fultariya    Ashish Bhavsar
                                       DIRECTOR          DIRECTOR