Directors Report of Skylead Chemicals Ltd.

Mar 31, 2010

TO THE MEMBERS,

The Directors have the pleasure in presenting their Annual Report together with the audited Statements of Accounts for the year 31st March, 2010.

FINANCIAL RESULT

During the year the company has incurred a loss of Rs. 1831071 5/- after providing depreciation of Rs. 7001799/- The Loss has been carried forward to the Profit & Loss Account and Balance sheet

DIVIDEND

Since the company has a huge accumulated loss, the company has not recommended dividend for the accounting year 2009-2010 , i e. for the ending year 31st March, 2010.

FIXED DEPOSITS

The company has not accepted any deposit to which the provisions of section 58A of the companies Act, 1956 are applicable.

OPERATIONS

The company, during the year under review, is streamlining the product and is hopeful to review

FUTURE PROSPECTS

Your directors have the pleasure to state that the company has bagged orders from export market.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956, we hereby confirm that:

1. in the preparation of the annual Accounts, the accounting standards to the extern applicable had been followed along with proper explanations relating to material departures.

2. adequate accounting policies had been selected & applied them consistently and made judgments and estimate that are reasonable & prudent so as to give true & fair view of the statement of affairs of the company at the and of financial year and of the profit of the company for that period.

3. proper & sufficient care has been taken for the maintenance of adequate accounting records in accordance with provisions of this act, for safeguarding the assets of the company & for preventing & detecting fraud & other irregularities

4. The annual accounts had been prepared on a going concern basis.

DIRECTORS

MAMTADEVI RAOL retires by rotation as director of the company at the ensuing Anual General Meting and being eligible offer herself for re-appointment.

AUDITORS

The auditors M/s. S.Mandawat & Co. chartered accountants, ahemdabad retires and being eligible offers themself for re-appointment. You are requested to re-appoint the auditors and fix their remuneration,

Auditors comment on gratuity and assets.

PARTICULARS OF THE EMPLOYEES

None of the employees draws remuneration exceeding the limits prescribed under section 217(2A) of the company act, 1956, read with the companies (particulars of the employees) rules 1975.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTIONS AND FOREIGN EXCHANGE EARNINGS AND OUT GO:-

Pursuant to section 217(l)(e) of the companies act, 1956, read with companies (disclosure of particulars in the report of board of directors) rules, 1988, the following information is provide:

a. CONSERVATION OF ENERGY :-

The fuel (diesel) consumed by company is nil.

b. TECHNOLOGY :-

The company has established she machinery of the state of art technology and no new technology has been used

c. FOREIGN EXCHANGE EARNING AND OUT GO :-

The company has used the foreign exchange in the following manner:-

FOREIGN EXCHANGE EARNINGS :- Rs. 3167716/-

FOREIGN EXCHANGE OUT GO :- Rs. NIL

ACKNOWLEDGMENTS

Your directors wish 10 place on record their appreciation for the continued support, co- operation and assistance provided to the company by bankers, auditors and employees of the company and other government departments and look forward to the same cordial relationship in the coming years.

Your directors also wish to place on record their gratitude to the valued shareholders of the company whose support has been continuous source of strength for the company.

FOR AND BEHALF OF THE BOARD

CHAIRMAN

Place : Bhavnagar Date : 02/09/2010

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Sep 30, 2002

The Directors herewith submit the 15th Annual Report of your Company for the financial year ended 30th September, 2002.

1. SUMMARY OF FINANCIAL RESULTS :

The economic recession, specially, in chemicals industries, hit the profit of the company adversely and therefore the profitability could not be maintained.

2001-2002 2000-2001 (Rs. in Lac)

a. Total Turnover : 820.14 996.63 b. Export Turnover : 390.65 485.70

c. Operating Profit / (Loss) before other income : 35.53 (69.76)

d. Interest Expenses : 205.66 224.53

e. Depariciation and Preliminary Expenses : 74.64 73.99

f. Cash Profit : 119.46 62.00

g. Net Profit : 45.06 (11.99)

h. Earning Per Share : Rs.0.66 N.A.

2. DIVIDEND:

No dividend is declared by the Company for the financial year 2001 -2002.

3. OPERATIONS :

The Company, during the year under review, has done substantial improvement in operational level and is in continual improvement. The company has achieved ISO 9001:2000 certification by DNV, Netherlands as recommendation of its quality management.

4. FUTURE PROSPECTS :

Your Directors have the pleasure to state the company has introduced a new product, Lithiumsipa, which has a good market in U. S. A. The unit has also developed the market in JAPAN for the product, DMS salt. The Company is confidant of getting orders from the above buyers during the current year.

5. DIRECTORS :-

Smt. Mamtadevi Raol retires by rotation and being eligible offers hereself for re-appointment You are requested to re-appoint her.

Shri Balmukund Sharma, Dr. Mrinal K. Ghosh and Shri Vallabhbhai J. Savani were appointed on the Bord of Directors on 02/09/2002. They hold office till ensuing Annual General Meeting. You are requested to reappoint them.

6. FIXED DEPOSITS :

The Company, has not accepted Fixed Deposits from public as envisaged under Section 58 A and 58 B of the Companies Act, 1956, read with the Companies (Acceptance of Deposits Rules, 1975.)

7. AUDITORS :

The present Auditors M/s. S. Mandawat & Co., Chartered Accountants, Ahmedabad, are retir- ing at the conclusion of Fifteenth Annual General Meeting. You are requested to appoint them as they are eligible for appointment.

8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUT GO :

Particulars regarding the conservation of energy, technological absorption and foreign exchange earning and out go as envisaged by Sec. 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the report of the Board of Directors Rules 1988) are Annexed as Annexure-I.

9. PARTICULARS OF EMPLOYEES :

The particulars as envisaged by Section 217 (2-A) read with the Companies (Particulars of Employees), Rule 1975 need not be given as no employees is covered there under.

Your Directors would like to place on record their appreciation of the contribution made by the employees at all levels. Employees continue to remain our major asset, in our continuing endeavors in the pursuit for excellence.

10. DIRECTORS RESPONSIBILITY :

In terms of Section 217 (2AA) of the Companies Act, 1956, the Directors would like to state :

- That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

- That the directors had selected such accounting policies and applied them consistently and made judgment 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;

- That the directors had taken proper and sufficient care for the maintenance of adequate accounting recored in accoredance with the provision of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

- That the directors had prepared the annual accounts on a going concern basis.

11. CORPORATE GOVERNANCE :

The Company is in the process of broad-basing the existing Board of Directors of the Company by appointing professional Directors on its Board of Directors and subsequently following committees are appointed:

- Audit Committee

- Remuneration Committee

- Investors Grievance Committee

12. ACKNOWLEDGEMENT:

The Board of Directors are pleased to place on record their sense of gratitude for the continued financial support by banks and other associates.

By Order of the Board SKYLEAD CHEMICALS LIMITED Chairman

Date : 31/10/2002 Place: Bhavnagar