Pretto Leather Industries Ltd

Overall review, industry Structure and Development

The Company has not been active for the past seven years due to a severe financialcrisis, for the past three years the Company was in the process of gradually liquidatingall debts with various Banks and financial institutions. Your Directors are glad to reportthat during the year under review the Company has closed all loans and is a debt freecompany from this year. The entire amounts required for closing the debt was bought in bythe directors and is reflected as unsecured loans in the Balance Sheet. The Directors feelthat having addressed the issue of clearing the debts, it is appropriate time to startplanning for the future. It is sincere intention of the Directors to bring value to theShareholders. But the current economic environment being what it is we will have to chooseour path with care and caution

Opportunities and Threat

The Company has various opportunities in the present market, but due to threat ofGovernment policies and market threats, the Company has not achieved its goal

Segment wise Performance

The Company has not done any business, due to scarcity of funds and personnel

Out Look

The Company has lot of contact in the domestic and international market, which would bebeneficial for the company

Internal Control system

The Company is looking quality of personal and employees to manage the affairs of theCompany

Human Relations

All the directors have very good human relation in the industries

Financial performance with respect to operational performance

RESULTS

Caution

It is necessary to take all effective steps for development of business activities ofthe Company

CEO & CFO CERTIFICATION

The Board of Directors

Pretto Leather Industries Limited

149, Civil Lines Opp ADM Compound,

Barelily, U.P-243001

Re-Financial Statements for the year ended on 31st March 2012-Certification

We, Namita Saxena, Chairman and Director and Mr Ominder Kumar Director, on the basis ofthe review of the financial statements and the cash flow statements for the Financial yearending 31st March 2012 and to the best of our knowledge and belief, thereby certify that:

1 These statements do not contain any materially untrue statements or omit any materialfact of contains statements that might be misleading

2 These statements together present a true and fair view of the Company's affairs andare in compliance with existing accounting standards, applicable laws and regulations

3 There are to the best of our knowledge and belief, no transaction entered into by thecompany during the year ended 31st March 2012 which are fraudulent, illegal or violativeof the Company's code of conduct

4 We accept responsibility for establishing and maintaining internal controls forfinancial reporting, we have evaluated the effectiveness of the internal control systemsof the Company pertaining to financial reporting and we have disclosed to the auditors andthe Audit Committee those deficiencies, of which we are aware, in the design or operationof the internal control systems and that we have taken the required steps to rectify thesedeficiencies

5 We further certify that:

(a) There have been no significant changes in the international control over financialreporting during this year

(b) There have been no significant changes in accounting policies during this year andthat the same have been disclosed in the noted to the financial statements

(c) There have been no instances, of significant fraud of which we have become awareand the involvement therein, of management or an employee having significant role in theCompany's internal control systems over financial reporitng

DECLARATION-COMPLIANCE WITH THE CODE OF CONDUCT

In accordance with clause 49 of the Listing Agreement with the Stock Exchanges, NamitaSaxena chairman & Director of the Company, hereby declare that the Board Members andsenior Management Personnel have affirmed compliance with the said Code of Conduct, asmentioned in this report for the year ended 31st March 2012