AFFLUENCE

DIRECTORS’ REPORT 2011-12 To, Members of Classic Filaments Limited Your directors present their annual report comprising of the audited statements of accounts for the year ended 31st March 2012 and the Reports of the auditors and directors thereon and a compliance certificate from a Practising Company Secretary. Financial Results (Amount in Rupees) Particulars 2011-12 2010-11 Gross Income 2,10,332 Expenditure 1,99,365 1,13,132 Profit /(Loss) Before Income Tax 10,967 (1,13,132) Less: Provision for Income Tax 2,033 NIL Profit/(Loss) After Income Tax 8,934 (1,13,132) Balance B/F from Previous Year (96,75,121) (95,61,989) Carried to Balance Sheet (96,66,187) (96,75,121) Your directors are to report that your company has not done any major business activity during the year and posted net profit Rs. 10,967 as compared to loss of Rs. 1,13,132 in the previous corresponding year under review. In view of the low profit, your directors do not recommend dividend during the year. Directors and their responsibility statement Mr. Radhamohan Mittal would retire by rotation and being eligible offers himself for re-appointment. As required by clause 49 of the Listing Agreement dealing with the Corporate Governance, a note is submitted on the directors seeking appointment or re-appointment. As required by Section 217(2AA) of the Companies Act, 1956, your directors confirm that: 1. in the preparation of the annual accounts, the applicable accounting standards have been followed. 2. your 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 the affairs of the company as on 31st March, 2012 and the Profit and Loss Account for the year ended on that date. 3. 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 the frauds and other irregularities. 4. the directors have prepared the annual accounts on a going concern basis. Classic Filaments Limited 2011-12 Corporate Governance As required by clause 49 of the Listing Agreement, corporate governance is enclosed as Annexure “A” to this report of the directors. Particulars of employees As there are no employees drawing the remuneration more than or equal to the prescribed remuneration under Section 217(2A) of the Companies Act, 1956, the company has no particulars to offer. Particulars of energy conservation etc In the absence of any commercial activities during the year under review, the particulars required under the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 are not applicable. There was no income or outgo in foreign currency. Compliance Certificate The Compliance Certificate obtained from Mr. Vishal Dewang, Practicing Company Secretary is attached hereto as required by amended Section 217 read with Section 383A of the Companies Act, 1956. You are requested to consider this certificate and also consider him for the next term. Auditors The Report of the Auditors is self-explanatory. M/s C. P. Jaria & Co.; Chartered Accountants will retire at the conclusion of this Annual General Meeting and being eligible for reappointment, offer themselves as such. Your directors recommend their re-appointment. Acknowledgement Your directors also wish to place on record the sincere efforts put in by all concerned who helped the company in one way or other. For and on behalf of the Board Place: Surat Date: 03/08/2012 Manendra P. Singh Subhash G. Patle D I R E C T O R S

Your directors present their annual report comprising of the audited statements of accounts for the year ended 31st March 2012 and the Reports of the auditors and directors thereon and a compliance certificate from a Practising Company Secretary. Financial Results (Amount in Rupees) Particulars 2011-12 2010-11 Gross Income 2,10,332 Expenditure 1,99,365 1,13,132 Profit /(Loss) Before Income Tax 10,967 (1,13,132) Less: Provision for Income Tax 2,033 NIL Profit/(Loss) After Income Tax 8,934 (1,13,132) Balance B/F from Previous Year (96,75,121) (95,61,989) Carried to Balance Sheet (96,66,187) (96,75,121) Your directors are to report that your company has not done any major business activity during the year and posted net profit Rs. 10,967 as compared to loss of Rs. 1,13,132 in the previous corresponding year under review. In view of the low profit, your directors do not recommend dividend during the year.

Profit/(Loss) After Income Tax 8,934 (1,13,132) Balance B/F from Previous Year (96,75,121) (95,61,989) Carried to Balance Sheet (96,66,187) (96,75,121)

Your directors are to report that your company has not done any major business activity during the year and posted net profit Rs. 10,967 as compared to loss of Rs. 1,13,132 in the previous corresponding year under review. In view of the low profit, your directors do not recommend dividend during the year.

Particulars of energy conservation etc In the absence of any commercial activities during the year under review, the particulars required under the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 are not applicable. There was no income or outgo in foreign currency.

Particulars of energy conservation etc In the absence of any commercial activities during the year under review, the particulars required under the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 are not applicable. There was no income or outgo in foreign currency.

MANAGEMENT DISCUSSION AND ANALYSIS Disclaimer on forward looking statements This report contains some forward looking statements which can be identified by the context to the words like ‘plans’ expects, believes, anticipates, will, may, intends, projects etc. All such statements depict the future, which may or may not happen or may prove wrong. These statements are based on certain assumptions about the company, product or other factors affecting the business or trade or policies of regulators and expectations may not realize. The company and its management hereby disclaim its responsibility to publicly amend these statements and assume no responsibility for them. Financial Review During the year under review, the company has not done any major business activity. Business Review Your company has stopped all manufacturing activities. Your company has now planned to continue trading activities in Textile Goods in the current year. Tax Contribution In view of no manufacturing activities, the company could not contribute sizably to the government exchequer. On behalf of the Board DATE: 03/08/2012 Subhash Patle Manendra Singh PLACE: SURAT DIRECTOR DIRECTOR

Particulars of employees As there are no employees drawing the remuneration more than or equal to the prescribed remuneration under Section 217(2A) of the Companies Act, 1956, the company has no particulars to offer.

Directors and their responsibility statement Mr. Radhamohan Mittal would retire by rotation and being eligible offers himself for re-appointment. As required by clause 49 of the Listing Agreement dealing with the Corporate Governance, a note is submitted on the directors seeking appointment or re-appointment. As required by Section 217(2AA) of the Companies Act, 1956, your directors confirm that: 1. in the preparation of the annual accounts,  the  applicable accounting standards have been followed. 2. your  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 the affairs of the company as  on 31st March,  2012 and the Profit and Loss Account  for  the year ended on that date. 3. 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 the frauds and other irregularities. 4. the directors have prepared the annual accounts on a  going concern basis.

The Report of the Auditors is self-explanatory. And there is no comments