Beckons Industries Ltd

To The Members

You Directors are pleased to present the 17th Annual Report together with the Audited Financial Statements of the Company for the year ended March 31, 2009.

FINANCIAL HIGHLIGHTS

Due to the change in the use from Continuous Computer Stationary to that of cut sheets and as introduction of modes of computer peripherals, the existing business of the Company is being continuously effected since last many years. The management has been trying its best to explore the alternative use of the available plant and machinery but no positive results are up-coming. Since the company has entered into long term contracts and arrangements with Government sectors whereat for billing and other purposes the continuous computer stationary is being used, it has become compulsion to continue with the existing business even though with no margin. These major factors has effected the sale/ turnover of the company even there is a little growth in sales during the current year which amounted to Rs. 503.14 as compared to the last year figure of Rs. 466.56 lac (up by 7.84%). The overall expenditure has also been increased from Rs. 442.51 lac to Rs. 517.23 lac (up by 16.89%). However the company has been able to control the administrative cost There has been an increase in the financial expenses from Rs. 25.55 lac to Rs. 31.82 Lacs due to the variation in the rate of interest charged by the lending banks.

Further, during the year the Company continued with research work for developing the process of commercializing its Algal technology on a limited scale to manufacture Algal Oil being the research in nature is progressing very well. We have largely completed the validation of scientific and engineering principles for our novel design of PBR and algal cultivation. We believe that we have competitive design of inexpensive PBR and cheaper method of microalgal cultivation. We have already developed and successfully operationalize the Prototype of Algae Plant and now planning to put up next, a Demo and Pilot Plant using flue gases emitted from coal burning and eventually a commercial plant alone or jointly with a flue gases emitter (power plant or an industry). However, recession in Indian and Global economy had resulted in slower progress.

As required under the Corporate Governance, the Management Discussion and Analysis, forming part of this report, reflects the current state of affairs of business.

SEGMENT REPORTING

Pursuant to the requirement of Accounting Standard 17 issued by the Institute of Chartered Accountants of India we inform you that besides the manufacturing of Computer paper, the company has been engaged in the technology development of Micro algae for Fuel, Feed & Mitigation of Flue gases. The long term objectives is to reduce the dependence on Crude Oil particularly for transportation segment in India and elsewhere by using Micro algae based technology without directly or indirectly affecting food production and without any dependence on oil subsidies.

SHARE CAPITAL

The Authorised Share Capital of the company consists of Rs. 38,00,00,000/- divided into 3,80,00,000 equity shares of Rs. 10/- each . The Issued and Subscribed Capital is Rs. 27,11,12,950/- and paidup to the extent of Rs. 26,94,62.950/- in the following manners:

Rs. 6,42,13.000/- divided into 64,21,300 Equity Shares of Rs. 107- each and Rs. 20,52,49,950/- divided into 1368333 GDRs (1 GDR = 15 Equity Shares)

CORPORATE GOVERNANCE

Your company is fully committed to the philosophy of transparency and believes in conducting the business with due compliance of all the applicable laws, rules and regulations. The company has duly implemented the system of corporate Governance as per the requirements of the Listing agreement. A separate report on Corporate Governance is included in the Annual Report and the Certificate from the Company's Auditors confirming compliance with the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement is annexed hereto.

DIRECTORS

During the year under review, the Board of Director of the company, remained duly constituted in accordance of the provisions of the Companies Act 1956 and in terms of the listing regulations.

Further in terms of the provisions of Section 256 of Companies Act, 1956, Dr. Chandra Prakash & Sh. I.S. Sukhija, Director retire by rotation. Dr. Chandra Prakash & Sh. I.S. Sukhija being eligible has offered for the reappointment as Director on the Board of the Company.

DIRECTOR'S RESPONSIBILITY STATEMENT

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

i. In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii. 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 that period.

iii. The Directors had 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. The annual accounts have been prepared on a going concern basis.

DIVIDEND

Due to the availability of marginal surplus, the Board of Director's of the Company has not recommended the payment of Dividend for the Financial year ended 31st March, 2009.

PUBLIC DEPOSITS

The company has neither accepted any deposit from the public nor renewed any deposit within the meaning of Section 58A of the Companies Act, 1956 and the rules framed there under, during the year under review.

HOLDING/SUBSIDIARY COMPANY RELATIONSHIP

For the purpose of undertaking the overseas business activities, the company floated a subsidiary in UAE in the name "BECKONS TRADING FZE" after the closure of the financial year.

PARTICULARS OF THE EMPLOYEES

The Company had no employee during the year, whose particulars are required to be disclosed under Section 217(2A) of the Companies Act, 1956. read with the Companies (Particulars of Employees) Rules 1975.

NOTE ON ACCOUNTS

The observations of the auditors and notes on accounts are self explanatory. The Company has complied with the provisions of all accounting standards which are applicable as on date.

AUDITORS

M/s. N. Kumar & Company., Chartered Accountants, the Statutory Auditors of your Company retire at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment The Company has received a certificate from them as required under Section 224 (1B) of the Companies Act, 1956.

The Board recommends the appointment of M/s. N. Kumar & Company, Chartered Accountants as the statutory Auditors of the Company.

i. Staggered Lighting System i.e. separate switches for separate sections are provided so that only required areas are lighted. ii. Conventional Lighting Equipment is being replaced by Energy Saving Devices in a phased manner.

b) Technology Absorption, Adoption and Innovation

The company has been involved in material cost reduction, improving the quality of products. The wastage has been completely controlled by making of the general stationery items and adding rolls from left-over paper.

c) Foreign Exchange Earnings & Outgo.

No information is required under this head

ACKNOWLEDGMENT

Your Directors wish to place on record, their appreciation for the continuous support received from the shareholders, customers, bankers, suppliers and the Company's employees at all levels.