Directors Report of KMF Ltd.

Mar 31, 2012

The directors have pleasure in presenting the 26th Annual Report together with the audited statement of accounts for the financial year ended 31st March, 2012.

FINANCIAL RESULTS: (Fig in Rs.)

Particulars 2011-12 2010-2011

Sales 5056901 804861

Depreciation 36419 38609

Profit before taxes 412541 (19262.60)

Taxes 84931 -

Net Profit after tax 1875886 (19262.60)

DIVIDENDS

Your Directors do not recommend any dividend for the Financial Year 2011-12.

DEPOSITS

Your company has not accepted any deposit u/s 58A of the Companies Act, 1956 & rules made there under.

DIRECTORS

Mr. Madan Lal, Director retire by rotation and being eligible offer himself for reappointment.

AUDITORS

M/s Gurjit Anand & Associates, Chartered Accountants, the statutory auditors of the company retire at the conclusion of ensuing Annual General Meeting of the company and being eligible, offer themselves for reappointment.

AUDITORS' REPORT

The observation of the auditors is self-explanatory and/or is suitably explained in the notes to the accounts.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, Reports on Corporate Governance and Management Analysis & Discussion Report have been included in this annual report as separate section (forming part of Directors' Report) along with the Auditors' Certificate.

INFORMATION UNDER THE LISTING AGREEMENT

The statement containing details as required under clause 49 of Listing agreement with stock exchange is appended hereto.

a) De-Listing

No application for de listing the company's securities has been made to any of the Stock exchanges.

b) Suspension in Trading

Trading in the Company's Securities had been suspended for non compliance of listing agreement during the period under review. The company is in the process of revocation of suspension from BSE & NSE.

c) The pending listing fee was paid to BSE in the year 2011 -2012.

DIRECTORS' RESPONSIBILITY STATEMENT

In compliance with Section 217(2AA) of the Companies Act, 1956 as amended by the Companies Amendment Act, 2000, the directors of your company subject to notes appended to accounts and auditor's report, confirm:

- that in preparation of annual accounts for the financial year ended 31st March'2012, the Applicant accounting standards have been followed and that there are no material departures.

- that such accounting policies have been selected and applied consistently and such judgments and estimates made are reasonable and prudent so as to give a true & fair view of the state of affairs of the Company at the end of the financial year as at 31.03.2012 and of the profit of the Company for the year ended 31st March, 2012.

- that proper and sufficient care has been taken 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.

- that the annual accounts have been prepared on a going concern basis.

PARTICULARS OF EMPLOYEES

None of the employee of the Company is falling under section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employee) Rules, 1975 as amended by Companies (Particulars of Employees) Rules,2002 for the FY 2011-12.

ADDITIONAL INFORMATION

Information pursuant to section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is furnished hereunder:

A. CONSERVATION OF ENERGY

Your Company being a real estate company, Form A for Conservation of Energy is not applicable to it.

B. TECHNOLOGY ABSORPTION

No such activity has been took place during the year under review.

C. FOREIGN EXCHANGE EARNING & OUTGO Fig in Rs. Total foreign exchange earnings -NIL-

Total foreign exchange outgo -NIL-

D. ENVIRONMENT

The Company is not involved in any type of activity hazardous to environment and does not discharge any trade effluents (solid, liquid or gaseous) causing pollution.

ACKNOWLEDGEMENTS

Your Directors take this opportunity to gratefully acknowledge the valuable co-operation and assistance extended by all of its Government of India, Government of Karnataka, Government of Uttar Pradesh and the company's bankers for their continued support and guidance. Yours directors also wish to place on record their sincere appreciation of the dedication and efforts shown by all employees of the company and are thankful to the shareholders for their continued patronage, trust and confidence in the company.

By order of the Board of Directors

Sd/- S. K. Chadha MANAGING DIRECTOR

Place: Delhi Dated: 25th June, 2012

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Mar 31, 2011

The Directors are pleased to present the Annual Report together with the Audited results for the year ended 31st March, 2011.

FINANCIAL RESULTS: (in Rs.)

S. No. Particulars 31.03.2011

1 Sales/Income 804861

2 Depreciation 38609

3 Profit Before Taxes (19262.60)

4 Taxes -

5 Net Profit after Tax (19262.60)

DIVIDENDS:

Your Directors regret their inability to recommend any dividend on equity shares for the year.

ACCEPTANCE OF PUBLIC DEPOSITS:

During the year under review the company has neither accepted nor renewed deposits according to the provisions of Sec. 58(A) of the Companies Act, 1956, outstanding fixed deposits at the year end is Nil.

OPERATIONS

Your company was in to liquidation because of which no signification business operation 'has taken place in the company.

DIRECTORS:

Mr. S. K. Chadha, Director, who retires by rotation and being eligible offered himself for re-appointment.

AUDITORS:

M/s Gurjit Anand & Associates, Chartered Accountants, Statutory Auditors of the Company retire at the conclusion of the Annual General Meeting of the Company and being eligible, have offered themselves or re-appointment. The Company has received an eligibility certificate from the auditors under Section 224 (1B) of the Companies Act, 1956. The Board of Directors commends their re-appointment.

COPORATE GOVERNANCE:

Your company has already implemented the code of Corporate Governance as required by the Listing Agreement introduced by Securities & Exchange Board of India.

The report of Directors on the practices prevalent on Corporate Governance in the Company is produced as annexure to this report.

The company has to appointed Ms Ekta Bansal as company secretary as per listing agreement.

INFORMATION UNDER THE LISTING AGREEMENT: "

The statement containing details as required under Clause 49 of the Listing Agreement with Stock Exchange is appended hereto.

a) De-Listing:

No application for de-listing the company's securities has been made to any of the Stock-Exchanges.

Suspension in Trading:

Trading in the Company's Securities had been suspended for non compliance of listing agreement during the period under review.

c) Listing Fees:

The listing fees payable for the year has not been paid.

STATUTORY INFORMATION :

a) Conservation of energy and technology absorption :

Your company has taken due care and importance to the conservation and improvement of the environment

b) Particulars of Employees:

The information required u/s 217(2A) of the Companies Act, 1956, read with companies (Particulars of employees) rules 1975 is not applicable in view that no employee was in receipt of remuneration exceeding the limits prescribed under the said section during the year under review.

c) During the Year the company had not earned nor spent any foreign currency.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirements U/s 217(2AA) of the Companies Act, 1956 with respect to director's responsibility Statement, it is hereby confirmed:

a. That in the preparation of the accounts of the financial year ended 31st March, 2011 the applicable accounting standard have been followed along with proper explanation relating to material departures, if any;

b. Directors have selected the 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 company at the end of the year and the profit and loss account of the company for that period;

c. 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 your Company and for preventing and detecting fraud and other irregularities;

d. Directors have prepared the accounts for the financial year ended 31st March, 2011 on going concern basis. • -

ACKNOWLEDGEMENT :

Your Directors would like to place on record their deep appreciation for co-operation and whole hearted support received from Company's Bankers, Advisors, Consultants, Government Authorities and Members. Your Directors also wish to express their appreciation for the dedicated service rendered by the staff of the Company.

On behalf of the Board For KMF Ltd.

Sd/- Date: 01.08.2011 S. K. Chadha

Place: New Delhi MANAGING DIRECTOR

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Mar 31, 2010

To Dear Shareholders of M/s. KMF LIMITED New Delhi.

The Directors are pleased to present the Annual Report together with the Audited results for the year ended 31st March,2010.



FINANCIAL RESULTS: (in Rs.)

S.NO. Particulars 31.03.2010



1 Sales/Income 755681

2 Depreciation 40961

3 Profit Before Taxes (13873.20)

4 Taxes -

5 Net Profit after Tax (13873.20)

DIVIDENDS:

Your Directors regret their inability to recommend any dividend on equity shares for the year.

ACCEPTANCE OF PUBLIC DEPOSITS:

During the year under review the company has neither accepted nor renewed deposits according to the provisions of sec.58(A) of the companies Act, 1956, outstanding fixed deposits at the year end is Nil.

OPERATIONS:

Your company was in to liquidation because of which no signification business operation has taken place in the company.

DIRECTORS:

Mrs. Krishanawati. Director, who reties by rotation and being eligible offered himself for re-appointment.

AUDITORS:

M/s Gurjit Anand & Associates, Chartered Accountants, Statutory Auditors of the company retire at the conclusion of the Annual General Meeting of the company and being eligible, have offered themselves for re-appointment. The company has received an eligibility certificate from the auditors under section 224 (1B) of the companies Act, 1956. The Board of Director commends their re-appointment.

COPORATE GOVERNANCE:

Your company has already implemented the code of corporate Governance as required by the Listing Agreement introduced by securities & Exchange Board of India.

INFORMATION UNDER THE LISTING AGREEMENT:

The statement containing details as required under Clause 49 of the Listing Agreement with Stock Exchange is appended hereto.

a) De-Listing.

No application for de-listing the company's securities has been made to any of the Stock-Exchanges.

b) Suspension in Trading.

Trading in the Company's Securities had been suspended for non compliance of listing agreement during the period under review.

c) Listing Fees:

The listing fees payable for the year has not been paid.

STATUTORY INFORMATION :

a) Conservation of energy and technology absorption :

Your company has taken due care and importance to the conservation and improvement of the environment.

b) Particulars of Employees:

The information required u/s 217(2A) of the Companies Act, 1956, read with companies (Particulars of employees) rules 1975 is not applicable in view that no employee was in receipt of remuneration exceeding the limits, prescribed under the said section during the year under review.

c) During the Year the company had not earned nor spent aryl foreign currency.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirements U/s 217(2AA) of the Companies Act, 1956 with respect to director's responsibility Statement, it is hereby confirmed:

a. That in the preparation of the accounts of the financial year ended 31st March, 2010 the applicable accounting standard have been followed along with proper explanation relating to material departures if any;

b. Directors have selected the accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to gives a true and fair view of the company at the end of the year and the profit and loss account of the company for that period;

c. 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 your Company and for preventing and detecting fraud and other irregularities;

d. Directors have prepared the accounts for the financial year ended 31st March, 2010 on going concern basis.

ACKNOWLEDGEMENT :

Your Directors would like to place on record their deep appreciation for co-operation and whole hearted support received from Company's Bankers, Advisors. Consultants. Government Authorities and Members Your Directors also wish to express their appreciation for the dedicated service rendered by the staff of the Company.

On behalf of the Board For KMF Ltd.

Sd/-

S. K. Chadha Date: 01.08.201

Place. New Delhi MANAGING DIRECTOR