AASTHAVINAYAK ESTATE COMPANY PRIVATE LIMITED

ANNUAL REPORT 2009-2010

DIRECTORS REPORT Dear Members, Your Directors have pleasure in presenting the Annual Report on the business and operations of the Company together with the audited Statements of Accounts along with the Report of the auditors for the financial year ended 31st March, 2010.

FINANCIAL PERFORMANCE:

Particulars

01.04.2009 to 31.03.2010 (Rs.)

01.04.2008 to 31.03.2009 (Rs.) 420,008 (420,008) (425,711) (845,719)

Sales & Other Income Less : Total Expenses Profit/(Loss) Balance carried forward from last year Balance carried forward to next year

2,100,000 2,521,643 (421,643) (845,719) (1,267,362)

DIVIDEND:

With a view to conserve the resources, your Directors do not recommend any dividend for the period under review

OPERATIONS:

The Companys loss for the financial year ended 31st March, 2010 stood at Rs.421,643/- as compared to loss of Rs.420,008/- for the last financial year.

PUBLIC DEPOSITS:

The Company has not accepted any public deposits during the financial year under review.

AUDITORS:

M/s. Shanker and Kapani, Chartered Accountants, retire as Statutory Auditors at the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. The Board recommend the re-appointment of M/s Shanker and Kapani, as Auditors for the year 2010-2011. The Company has received a letter from the retiring Auditors to the effect that their appointment as Statutory Auditors, if made, would be within the limits prescribed under Section 224 (1B) of the Companies Act, 1956.

Members are requested to consider and re-appoint M/s. Shanker and Kapani, Chartered Accountants, as the Statutory Auditors of the Company for the year 20102011.

DIRECTORS:

In terms of the provisions of the Companies Act, 1956, Shri Deepak Lodha retires by rotation and, being eligible, offers himself for re-appointment.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the provisions of Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that, to the best of their knowledge and belief: 1. in the preparation of the annual accounts, the applicable accounting standards have been followed: 2. appropriate accounting policies have been selected and applied consistently, and such judgements and estimates have been made 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, 2010 and of the loss of the Company for the fifteen months ended on 31st March, 2010.

3. proper and sufficient care has been taken 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 4. the annual accounts have been prepared on a going concern basis

CONSERVATION

OF

ENERGY,

TECHNOLOGY

ABSORPTION

AND

FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information required 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 with respect to these matters forms part of this Report and is annexed hereto.

PARTICULARS OF EMPLOYEES There are no employees in the Company whose particulars are required to be given under section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended from time to time.

ACKNOWLEDGEMENTS:

The Board of Directors place on record its sincere appreciation for the dedicated services rendered by employees at all levels. Your Directors would like to express their grateful appreciation for the assistance and support extended by all government authorities, banks, shareholders, suppliers and other business associates. For and on behalf of the Board of Directors

Place: Mumbai Date: 12.06.2010

Sd/Sandeep Saxena Chairman

Annexure A. Energy Conservation 1. Energy Conservation: The Company is committed to optimize usage of energy. The Company has initiated several measures to conserve energy during the year, such as switching off lights and electrical equipments when not in use, maximum usage of natural lights, installation of power saving devices, etc. The senior management drives programs for energy saving and educating employees to maximize conservation of energy and electricity. 2. Additional investments and proposals, if any, being implemented for reduction of consumption of energy: Management is considering various cost effective options to reduce consumption of energy. 3. Impact of measures at (1) and (2) above for reduction of energy consumption and consequent impact on the cost of production of goods: Optimizing expenditure on electricity consumption to achieve reduced cost of electricity 4. Total energy consumption and energy consumption per unit of production as per Form A of the Annexure in respect of industries specified in the Schedule thereto: Not applicable

B. Technology Absorption The management is striving to develop and absorb newer construction technologies, in order to reduce construction time, achieve world class construction quality with lower costs and to reduce wastages. Research and development (R & D) 1. 2. 3. 4. Specific areas in which R & D carried out by the company Benefits derived as a result of the above R &D Future plan of action : Material procurement, Engineering and Construction Divisions : To constantly provide world class construction quality

Expenditure on R & D (a) Capital } (b) Recurring } (c) Total } - NIL (d) Total R & D expenditure as a } percentage of total turnover. }

Technology absorption, adaption and innovation 1. Efforts, in brief, made towards : Planning and Engineering Division is technology absorption, adaptation and being equipped to absorb technological innovation. changes taking place in construction industry. 2. Benefits derived as a result of the above : The Company will be able to provide efforts, e.g., product improvement, cost projects with varied features with reduction, product development, import reduced construction time period substitution, etc. 3. In case of imported technology (imported : Not Applicable during the last 5 years reckoned from the beginning of the financial year), following information may be furnished (a) Technology imported } (b) Year of import } (c) Has technology been fully } Not Applicable absorbed? (d) If not fully absorbed, areas where } this has not taken place, reasons therefore and future plans of action. Foreign Exchange Earnings and Outgo

There were no earnings or outgo of foreign exchange during the year.