Nilkanth Engineering Ltd Directors Report.

NILKANTH ENGINEERING LIMITED ANNUAL REPORT 2006-2007 DIRECTORS REPORT Dear Shareholders, Yours Directors have pleasure in presenting to you the 25th Annual Report together with the Audited Accounts of the Company for the year ended 31st March, 2007. FINANCIAL RESULTS 2006-07 2005-06 Particulars Rs. Rs. Income 55,68,175 20,93,241 Expenditure 2,20,587 1,33,319 Profit / (Loss) before Tax 53,47,588 19,59,922 Add / (Less ) : Provision for Taxes Current Tax (7,00,000) (2,75,000) Income Tax Adjustments for earlier years 71 ,776 Profit / (Loss) after Tax 47,19,364 16,84,922 Add / (Less) : Excess Provision for Earlier Nil NIL Years Less : Transfer to Special Reserve u/s 45 IC 9,43,873 3,36,984 of Reserve Bank of India Act, 1934 Add : Profit / (Loss) brought forward from 22,27,93,787 2,14,45,849 earlier years Balance of Profit / (Loss) carried to Balance 2,65,69,279 2,27,93,787 Sheet DIVIDEND With a view to conserve the resources of the Company, your Directors do not recommend any dividend for the year under review. DIRECTORS Shri L P Goenka retire by rotation from the Board and being eligible offer himself for reappointment. DIRECTOR RESPONSIBILITY STATEMENT Your Directors confirm that: i. in the preparation of the Annual Accounts, the applicable accounting standards have been followed alongwith proper explanation relating to material departures, if any; ii. the Directors have selected such accounting policies and applied them consistently and made judgements 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 financial year ended on 31st March, 2007 and of the profit of the Company for that year; iii. the Directors have 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 fraud and other irregularities; iv. the Directors have prepared the annual accounts on a going concern basis. PUBLIC DEPOSITS The Company has not accepted any deposits from the public during the year under review. EMPLOYEES The Company had no employees of the category specified in Section 217(2A) of the Companies Act, 1956. AUDITORS M/s M K Sureka & Co., Chartered Accountants, the Statutory Auditors of the Company retire and being eligible offer themselves for re- appointment. AUDITORS REPORT The observations made in the Auditors Report regarding no provision for diminution in the value of investments have been duly explained in Note No. 2 in Schedule 10 to the accounts. Other observations are self explanatory and therefore, do not call for any further comments on the Auditors Report under Section 217 of the Companies Act, 1956. COMPLIANCE CERTIFICATE: Pursuant to the proviso to Section 383A (1) of the Companies Act, 1956 read with the Companies (Compliance Certificates) Rules, 2001 framed thereunder, your Company has obtained a Compliance Certificate from Girish Murarka and Company, Company Secretaries, Mumbai for the financial year ended 31st March, 2007 confirming that the Company has complied with ail the provisions of the Companies Act, 1956. A copy of such certificate is attached with this Report and forms an integral part. The observations made in the Compliance Certificate are self explanatory and therefore do not call for any comments. REPORT ABOUT CONSERVATION OF ENERGY: Since the Company is not having any manufacturing activity, Directors have nothing to report on conservation of energy, research and development and technology absorption. FOREIGN EXCHANGE EARNINGS AND OUTGO: Foreign Exchange earned during the year under review - Rs. Nil Foreign Exchange spent during the year under review - Rs. Nil APPRECIATION: Your Directors place on record their deep appreciation of the assistance and contribution received from their bankers, employees, etc. For and on behalf of Board of Directors Director Director Place: Mumbai Date : 03/09/07.