Alchemist Realty Ltd

To The Members

Your Directors have pleasure in presenting the Annual Report of the Company together with the Audited Statement of Accounts for the Year ended March 31,2009.

OPERATIONS

During the year under review, Your Company has achieved a turnover of Rs. 10156.09 Lacs (previous year Rs.7854.27 Lacs) from the real estate business and earned a net profit of Rs. 103.20 Lacs (Previous year Rs.316.88 Lacs)

The prospective vision of the Company with the evaluation of the business and operations of the Company are provided in the Report on Management Discussion and Analysis forming part of the Annual Report.

DIVIDEND

Your Directors recommend a dividend of Re.0.10 per equity share of Rs.2/- each (5%) for the year 2008-2009 on the equity share capital, subject to approval of the shareholders at the Annual General Meeting.

FIXED DEPOSITS

Your Company has not accepted Deposits from the public during the year under report as per the provisions of the Companies Act 1956 read with Companies (Acceptance of Deposits) Rules, 1975.

DIRECTORS

Mr. Ian F Thomas, Director has resigned from the Board with effect from 13th February 2009. Your Directors place their appreciation for the valuable services rendered by Mr. Ian F Thomas during his tenure of Directership.

Dr. Virendra D Singh, Director of the Company, retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for reappointment.

DIRECTORS RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 217(2AA) OF THE COMPANIES ACT, 1956

Pursuant to the provisions of section 217 (2 AA) of the Companies Act 1956, your Directors confirm: -

1. That in the preparation of Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

2. That the Directors had 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 as at 31st March, 2009 and of the profit or loss of the Company for the period ended 31st March, 2009.

3. That the Directors had 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.

4. That the Directors had prepared the Annual Accounts on a going concern basis.

AUDITORS AND AUDITORS REPORT

M/s K. Singh & Associates, Chartered Accountants, the Statutory Auditors of the Company hold the office till the conclusion of ensuing Annual General Meeting and being eligible offer themselves for reappointment. Your Directors recommend their reappointment.

The Statutory Auditors of the Company have submitted Auditors Report on the accounts of the Company for the financial year ended 31^st March, 2009, which is self explanatory and needs no comments.

MANAGEMENT DISCUSSION AND ANALYSIS:

Industry Structure and Development

The year under review has been a year with full of challenges for the real estate sector. A global slowdown in the sector was evident but the deterioration was far more rapid and widespread than what was expected. So the Company has recalibrated its strategy and execution plans to align them with the needs of the transformed business environment.

Alchemist Realty Limited believes that its low cost land bank, strong design and development capabilities with competent management team will provide it with a competitive advantage. With this philosophy intact the Company has continued to develop its land bank. In 2008-2009, the Company has made a significant addition in its land parcels.

Alchemist Realty Limited has extensive land reserves, which are geographically well spread. The Company's Land reserves consist of legally and valid land over which the Company has sole development rights.

Alchemist Realty Limited keeps primary focus on its real assets "its employees". The Company believes that it has good working relationship with its employees. The Company's management team has extensive knowledge and understanding of the property market in India. This enables the Company to understand market trends and the preferences of its target clientele.

Opportunities and Threats

With the continuous trend of urbanization and increase in the size of Population in the Country, the demand of both residential and commercial properties is still having an upward trend.

The company is looking forward in the real estate business and launching the prestigious projects in different geographically areas of the Country. The Company intends to concentrate its future constructions and development activities.

In the present scenario the Company is exposed to different types of risks comprising credit risk, market risk and other RBI policies including liquidity risk, interest rate risk and foreign exchange risk. In addition to these risks operational risks and legal risk also are integral part of this sector. The Company aims to understand, measure and monitor the various risks to which it is exposed and to ensure that it adheres, as far as reasonable and practically possible, to the policies and procedures established by it to mitigate these risks.

Segment wise performance

The Company operates in only one segment of real estate, hence segment reporting for the year under review was not given.

Outlook

The overall outlook of the Real Estate Industry is going through a challenging phase. A global slowdown in this sector has adversely effected it more rapidly than expected. But increasing demand for housing sector and demand for integrated township projects are the positive signs for this sector.

Internal Control system and their adequacy

Alchemist Realty Limited has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and to ensure that all transactions are duly authorized, recorded and reported correctly and adequately.

The Company's internal controls are supplemented by an extensive programme of internal audits, review by management and documents policies, guidelines and procedures. The Board has constituted a Committee of Directors named as Audit Committee which provides necessary guidance for internal control and checking mechanism. The Committee reviews the quarterly and annual accounts of the company before the same are submitted to the Board of Directors for their approval. Being a continuous process, it is reviewed periodically.

Financial and Operational performance

During the year under review, Your company has achieved a turnover of Rs. 10156.09 lacs (previous year Rs.7854.27 lacs from the real estate business and earned net profit of Rs. 103.20 lacs (Previous year Rs.316.88 lacs).

CORPORATE GOVERNANCE

As required by Clause 49 of the Listing Agreement, a detailed report on Corporate Governance along with a certificate from the Auditors regarding its compliance is annexed and forms part of the Annual Report.

PARTICULARS OF EMPLOYEES

A statement giving necessary information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is given as an Annexure to this Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO

Your Company is in the real estate business and it does not own any manufacturing facility, the requirements pertaining to disclosure of particulars relating to conservation of energy, research & development and technology absorption, as prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are not given. The Company is making all possible efforts to conserve the energy by adopting best practices.

The company has not imported any technology during the year.

There is no foreign exchange earning and expenditure in foreign exchange is Rs.72.54 lacs during the year under report. ACKNOWLEDGEMENT

The Directors acknowledge with gratitude the co-operation and assistance provided to the Company by its Banks, Government as well as non-Government agencies. Their grateful thanks are due to the shareholders of the Company for continued patronage by them. The Board wishes to place on record its appreciation to the valuable contribution made by the employees at all the levels during the year under report.

ANNEXURE TO THE DIRECTORS' REPORT

Information as per Section 217(2A) of the Companies Act, 1956 and the Companies (Particulars of Employees) Rules, 1975, forming part of the Director's Report for the year ended 31st March, 2009.

* employed for part of the year 2008-09

** employed for whole of the year 2008-09