Directors Report of Sri Jayalakshmi Spinning Mills Ltd.

Jun 30, 2009

Dear Members

The Directors have pleasure in presenting the Company''s 15th Directors'' Report together with the Audited Accounts of the Company for the Year ended June 30th, 2009 and the Auditor''s Report thereon.

Financial Results

(Rs. In Lakhs)

Particulars 2008-09 2007-08

Sales - 234.53

Profit (Loss) for the year before interest (3784) (10.24) and depreciation

Less: interest 0.08 0.04

Depreciation 203.06 205.73

Provision for Fringe Benefit Tax - -

Net P-rofit/Loss (240.97) (195.53)





During the year under report the company has completely shut down its business and there is no income. The company had to operate under severe adverse conditions and the comnpany had posted a loss of Rs.240.97 Lakhs.

Dividends

Since the Company has no operations and not earned any profit during the year, no dividend is recommended.

Directors

Sri.G.Kanakaiah, director retires by rotation at the forthcoming Annual General Meeting and being eligible, offers him self for re-appointment.

During the year R.Sambashiva Rao, Chairman and G.Rambabu, director were resigned from the board w.e.f 01.10.2008

Auditors

The Statutory Auditors of the company, Sri, G.V.Suryanarayana Murthi, Chartered Accountants, Hyderabad retire at the conclusion of the ensuring Annual General Meeting and being eligible, offered them-selves for re-appointment.

The Company has received letter from them to the effect that their appointment if made would be within the prescribed limits under Section 224 (1B) of the Companies Act, 1956.

Fixed Deposits

The company has not accepted any Fixed Deposits from the public and the provisions of Section 58A of the Companies Act, 1956 are not applicable to the company.

Directors responsibility statement

The Directers''responsibility statement setting out the compliance with the accounting and financial reporting requirements specified under section 217 (2AA) of the Companies Act, 1956, in respect of the financial statements is as follows:

(i) That in the prepration of the annual accounts for the financial year ended 30th June,2009,the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) That the directors had selected such 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 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;

(iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) The Directors have prepared annual accounts on a Going concern basis

Corporate Governance

The Company is taking necessary steps to comply with the provisions of Clause 49 of the Listing Agreement with the Madras Stock Exchange, Mumbai Stock Exchange Limited and Hyderabad Stock Exchange.

Particulars of Employees

In pursuance of the Section 217(2A) of the Compnies Act, 1956 read with the Companies (Particulars of employees) Rules 1975, there is no employee who recevies the limits mentioned under the Companies Act, 1956.

Conservation of Energy, Technology absorption, Foreign Exchange earnings and outgo.

As the Company has not carrying any business since past year, no details are available on the above. The Company would take appropriate measures for the conservation of energy as and when the operations would commence. There is inflow or out flow of Foreign Exchange during the year.

Acknowledgements

Your Directors wish to place on record their gratitude to the Shareholders, Creditors, and Banks for their continued support and co-operation.



FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Place:Hyderabad RAYAPATI GOPALA KRISHNA DR.RAYAPATI SRINIVAS

Date:03.12.2009 DIRECTOR UK MANAGING DIRECTOR

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Jun 30, 2008

Dear Members

The Directors have pleasure in presenting the Company''s 14th Directors'' Report together with the Audited Accounts of the Company for the Year ended June 30th, 2008 and the Auditor''s Report thereon

Financial Results

(Rs. In Lakhs)

Particulars 2007-08 2006-07

Sales 234.53 2010.02

Profit (Loss) for the year before interest (10.24) (1528.36) and depreciation

Less: Interest 0.04 1.34

Depreciation 205.73 205.96

Provision for Fringe Benefit Tax 3.30

Net Profit/Loss (195.53) (1738.97)

During the year under report the company has achieved a turnover of Rs.234.53 lakhs as against Rs.2010.02 Lakhs during the previous year. The company had to operate under severe adverse conditions and the company had posted a loss of Rs.195.53 Lakhs.

Dividends

Since the Company has no operations and not earned any profit during the year, no dividend is recommended.

Directors

There is no change in the constitution of the Board, Sri. M.Anil Kumar and G.Gnaneshwar, Independent directors retires by rotation at the forthcoming Annual General Meeting and being eligible, offers themselves for re-appointment.

Auditors

The Statutory Auditors of the company, Sri. G.V.Suryanarayana Murthi, Chartered Accountants, Hyderabad retire at the conclusion of the ensuing Annual General Meeting and being eligible, offered them-selves for re-appointment.

The Company has received letter from them to the effect that their appointment if made would be within the prescribed limits under Section 224 (IB) of the Companies Act, 1956.

Fixed Deposits

The company has not accepted any Fixed Deposits from the public and the provisions of Section 58A of the Companies Act, 1956 are not applicable to the Company.

Directors responsibility statement

The Directors'' responsibility statement setting out the compliance with the accounting and financial reporting requirements specified under Section 217 (2AA) of the Companies Act, 1956, in respect of the financial statements is as follows:

(i) That in the preparation of the annual accounts for the financial year ended 30 June, 2008, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) That the directors had selected such 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 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;

(iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) The Directors have prepared annual accounts on a Going concern basis

Corporate Governance

The Company is taking necessary steps to comply with the provisions of Clause 49 of the Listing Agreement with the Madras Stock Exchange, Mumbai Stock Exchange Limited and Hyderabad Stock Exchange.

Particulars of Employees

In pursuance of the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rules 1975, there is no employee who receives the limits mentioned under the Companies Act, 1956.

Conservation of Energy, Technology absorption, Foreign Exchange earnings and outgo

As the Company has not actively carrying business since past year, no details are available on the above. The Company would take appropriate measures for the conservation of energy as and when the operations would commence. There is no inflow or out flow of Foreign Exchange during the year.

Acknowledgements

Your Directors wish to place on record their gratitude to the Shareholders, Creditors, and Banks for their continued support and co-operation.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Place: Hyderabad KRISHNA

Date: 04,12.2008. Director Managing Director