Integrated Thermoplastics Ltd

INTEGRATED THERMOPLASTICS LIMITED

We hereby present the 17^th Annual Report and the Audited Statement ofAccounts for the Financial Year ended 31^st March, 2011.

1. FINANCIAL RESULTS:

(Rs. in Lakhs)

2. REVIEW OF OPERATIONS

The Turnover for the year is Rs 8699.82 Lakhs, as against the previous year amount ofRs 9829.55 Lakhs, with the net profit of Rs.77.59 lakhs and Rs.140.67Lakhs respectively.

Despite the marketing being very competitive, your company is able to sell the productsat a best and competitive price.

3 . FUTURE OUTLOOK

The Board expects that the Company would maintain the same level of operations infuture also.

4. DIRECTORS

In accordance with the requirement of the Companies Act, 1956 Mr. Venkata RaghuShriramasetty and Mr. Kakarla Rami Reddy, who retire by roration and the board, recommendtheir reappointment.

Mr. Sreenivasulu Reddy Angitapalli, Mrs.Sujala Sajjala and S.Parvathi Reddy who wereappointed by the board as an Additional Directors of the company to hold office up to thedate of ensuing Annual General Meeting and they shall be appointed as Directors at theensuing Annual General Meeting in order to continue in the office. The Board recommendstheir appointment.

Mrs. SUJALA SAJJALA was also appointed as Managing Director of the company with effectfrom 13.08.2011, by the Board of Directors in their Meeting held on 13th Aug 2011 with aremuneration not exceeding Rs.1,00,000/- per month and recommended the appointment to theshareholders for approval.

Mr.Y. Srinivasa Reddy resigned from the Board of Directors of the company and the boardaccepted resignation in the board meeting held on10th February 2011

Mr. N. Rama Subbaiah, resigned from the Board of Directors of the company and the boardaccepted the resignation in the board meeting held on 13th August 2011.

5. DIRECTORS’ RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information andexplanations obtained by them your directors make the following statement in terms ofSection 217 (2AA) of the Companies Act, 1956:

(i) In the preparation of the Annual Accounts, the applicable accounting standards havebeen followed along with proper explanation relating to material departures, if any.

(ii) Appropriate accounting policies have been selected and applied consistently andhave made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company as at March 31, 2011 and of the Profit ofthe company for the year ended on that date.

(iii) Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities.

(iv) The annual accounts have been prepared on a going concern basis.

6. COPORATE GOVERNANCE

(a) Management Discussion and Analysis Report is enclosed.

(b) As per Clause 49 of the Listing Agreement with the Stock Exchanges, a separatesection on Corporate Governance Practices followed by the Company together with acertificate from the Company’s Auditor confirming compliance is set out in theAnnexure forming part of this report.

7. FIXED DEPOSITS

The Company has not invited and raised any fixed deposits as on 31^st March,2011 in terms of the provisions of Section 58A of the Companies Act, 1956 read with theCompanies (Acceptance of Deposits) Rules, 1975 as amended from time to time. There are nooutstanding or unclaimed deposits as on 31^st March, 2011.

8. PARTICULARS OF EMPLOYEES:

During the year under review, no employee of the company was in receipt of remunerationfor the whole year which in the aggregate was Rs. 60,00,000/- or more per annum nor wasany employee in receipt of remuneration Rs.5,00,000/- or more per month for any part ofthe year in accordance with the provisions of Section 217(2A) of the Companies Act,1956,read with the Companies (Particulars of Employees) Rules, 1975 as amended.

During the year under review, industrial relations of the company continued to becordial and peaceful.

9. PARTICULARS REGARDING ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGNEXCHANGE EARNINGS AND OUTGO:

Details of Energy Conservation, Research & Development, Technology Absorption,Foreign Exchange Earnings and Outgo as required under section 217(1)(e) of the CompaniesAct, 1956 read with the Companies (Disclosure of Particulars in the Report of Board ofDirectors) Rules, 1988, are given in Annexure "A" to the Directors Report.

10. AUDITORS

M/s. L.B.REDDY & Co., Chartered Accountants, the Company's Auditors, hold officetill the conclusion of this Annual General Meeting. They have signified their willingnessto accept their re-appointment and have further confirmed their eligibility under section224 (1B) of the Companies Act, 1956.

11. LISTING AT STOCK EXCHANGES

The Equity Shares of the company are listed on Bombay Stock Exchange Limited, PhirozeJeejeebhoy Towers, Dalal Street, Mumbai – 400 001. However at present the trading ofequity shares is under suspension.

Listing fees to the Bombay Stock Exchange Limited has been paid up-to-date.

12. ACKNOWLEDGEMENTS:

Your directors wish to place on record their sincere gratitude to the Government ofIndia, Government of Andhra Pradesh, Bankers, Shareholders, Dealers, Suppliers, Customersand employees and workers of the Company for their whole hearted co-operation extended tothe Company during the year.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION

Statement pursuant to Section 217 (1)(e) of the Companies Act, 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988.

1. Energy Conservation measures taken.

The company does not have a major requirement of energy. However it is upgrading someof its electrical systems to bring itself up to date with the new hardware available forits motor driven machines.

TO CONSERVATION OF ENERGY

TECHNOLOGY ABSORPTION