The Directors have pleasure in presenting the Twentieth Annual Report together with Audited Accounts of the Company for the year ended 31st March, 2014.

OPERATIONS

Your Directors report that your Company has reported a NIL income from the operations and a Gross Loss before tax of Rs.3.06 Lakhs as against Gross Loss before tax of Rs.5.34 Lakhs in the previous year respectively.

Financial Results:

Particulars                            2013-2014           2012-2013
                                       in Rupees           in Rupees

Gross Income                                 NIL                 NIL

Profit before Tax( )/Loss(-)          (3,06,420)          (5,34,010)

Provision for Tax                            NIL                 NIL

Profit after Tax( )/Loss(-)           (3,06,420)          (5,34,010)

Deferred Income Tax Assets                                                    
/Liabilities during the year               1,032               2,371

Profit/(Loss) at the beginning of (19,98,65,638) (19,93,33,999) the year

Profit/(Loss) for the period (20,01,71,026) (19,98,65,638)

FINANCIAL PERFORMANCE

There has been no Capital market Operations during the year, hence no income in view of SEBI Order preventing the Company in accessing the Securities Market vide Order No: WTM/KMA/78/ISD/06/2009 dated 04-06-2009. However SEBI Order: WTM/RKA/IVD/ID-4/39/2012 dated 25-09-2012 has invoked the ban on the Company on 03-06-2013 and permitted to do trading in the Capital Market with effect from 04-06-2013.

The Loss reported is only on account of administrative expenses and expenses related to compliances of the regulatory/ statutory authorities.

DIVIDEND

In view of the loss reported for the financial year, your Directors regret their inability to recommend payment of dividend on equity shares to the members and on preference shares to the preference share holders.

MANAGEMENT DISCUSSION & ANALYSIS

Overall Review

The Capital Market Operations during the Year has been nil in view of the order imposed by the Securities and Exchange Board of India with effect from 04-06-2009, besides Income Tax authorities have also attached the Bank accounts of the Company for nonpayment of tax arrears for the Asst. Year 2005-06 pending disposal of appeal filed before the tribunal, Income Tax Department.

Vide letter dated 19-01-2010 of Reserve Bank of India, had imposed restriction on the Company, not to carry out the business of non banking financial institutions due to negative net worth till such time, the company meets minimum statutory net worth requirement of Rs. 25 lakhs.

The Company has surrendered the Registration of Non-Banking Finance Company Certificate to RBI, Hyderabad on 23-02-2011 for cancellation.

SEBI Order

SEBI Order : WTM/RKA/IVD/ID-4/39/2012 dated 25-09-2012 has invoked the ban on 03-06-2013 and permitted the company to do trading in the Capital Market with effect from 04-06-2013.

OPPORTUNITIES, CONCERNS AND THREATS

The Country's economic scenario continues to be on the slow growth path with the growth rate expected to be around 6% to 7% for the current financial year. Global Economy has also contributed for a slow growth due to recession in some segment of the economy.

The Government's thrust on infrastructure and growth in the industrialization with huge investments, the economic activity continuous to grow at a single digit growth.

The volatility in prices of shares due to high fluctuation of the market behaviour which can have a direct bearing on the operations of the Company resulting into low margins and may affect the working of the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems commensurate with the size of its operations and for the purpose of exercising adequate controls on the day-to-day operation systems are regularly reviewed to ensure effectiveness.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

The Human Relations in the organization have been cordial. Your Company believes that man power is its greatest asset and endeavours to improve employee welfare at all times.

DISCLOSURES

Being a non manufacturing company, inclusion of particulars with respect to conservation of energy and technology absorption as required under Section 217(1) (e) of the Companies Act, 1956 read with Companies (Disclosures of particulars in the Report of the Board of Directors) Rules, 1988 regarding conservation of energy and Technology absorption, does not arise. However efforts are made in every aspect of operation wherever possible to conserve energy and also technology absorption, adaptation and innovations.

Foreign exchange earnings and outflows are: NIL

PARTICULARS OF EMPLOYEES

In pursuance of the provisions of section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules 2011, the Directors are to report that no employee was in receipt of remuneration of Rs.60, 00,000/- or more per annum or Rs.5,00,000/- or more per month where employed for a part of the year.

DIRECTORS

Sri K.Satyanarayana, whose period of office determined by rotation is due to retire at the ensuing Annual General Meeting and being eligible offer herself re-appointment. Sri. Sripathi Vamshi Krishna and Mrs. B Kavitha were appointed as Additional Directors w.e.f. 25th August 2014. In terms of Section 161(1) of the Act, 2013 they hold office only upto the date of the forthcoming AGM but is eligible for appointment a a Director. A notice under Section 160(1) of the Act has been received from a Member signifying its intention to propose their appointment as a Director.

Sri. A Rakesh, Sri. Sripathi Vamshi Krishna and Mrs. B Kavith Independent Directors were appointed / re-appointed on the Board of the Company. The provisions of the Companies Act 2013 with respect to appointment and tenure of the Independent Directors have come into effect. As per the said provisions, the Independent Directors shall be appointed for not more than two terms of five years each and shall not b liable to retire by rotation at every AGM.

PUBLIC DEPOSIT

During the year, the Company has not accepted any fixed deposits under Section 58A of the Companies Act, 1956.

AUDITOR'S REPORT

The Auditors' Report to the members read together with the relevant notes thereon are self explanatory and hence do not warrant any comments under Section 139 of the Companies Act, 2013.

AUDITORS

M/s. P. Murali & Co., Chartered Accountants, Statutory Auditors of the Company retire at the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. The said, Auditors have furnished the Certificate of their eligibility for re-appointment. Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Rules framed there under, it is proposed to appoint them as Statutory Auditors of the Company from the conclusion of the, forthcoming AGM till the conclusion of the AGM to be held in the year 2017, subject to ratification of their appointment at the subsequent AGMs.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreements entered into with the Stock Exchanges, Corporate Governance report and Auditors' Certificate regarding Compliance of conditions of Corporate Governance are made a part of the Annual Report as per the Annexure - A.

DIRECTORS' RESPONSIBILITY STATEMENT

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

i) That in preparation of the annual accounts, the applicable accounting standarts have been followed along with proper explanation relating to meterial 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 ended 31st March, 2014 and of the profit and 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 this Act 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 on a going concern basis.

DEMATERIALISATION OF SECURITIES

As Members are aware, your Company's quity shares are compulsorily tradable in electronic form. As on March 31, 2014, 38.42% of your Company's paid up Capital representing 19,21,255 equity shares are in dematerialized form. In view of numerous advantages emanating from the depository system. Members holding equity shares in physical mode are requested to avail the facility of dematerialization of the Company's shares on either of the depositories i.e., CDSL/NSDL.

ACKNOWLEDGEMENTS

Your directors have pleasure in recording their appreciation of co-operation extended to the Company by the Bankers and employees.

                              For and on behalf of the Board

                              B.Srinivas     K.Satyanarayana

Place: Secunderabad
Date: 25-08-2014              Director              Director