RAGHUNATH PRASAD PHOOLCHAND LIMITED ANNUAL REPORT 2006-2007 DIRECTOR'S REPORT The Directors have pleasure in submitting their 40th Annual Report together with the audited accounts of the Company for the period ended 31st March, 2007. FINANCIAL REPORT: Working Results of the Company for the year are shown hereunder: Loss as per Profit & Loss Account Rs. 1,44,912.57 Provision for Fringe Benefit Tax Rs. 942.00 Add: Loss Brought Forward from the last year Rs. 79,13,596.52 Loss Carried Forward Rs. 80,59,451.09 DIRECTORS: Sri Vinod Kumar Jhunjhunwala Director, retires by rotation and being eligible, offers himself for re-appointment. DIRECTORS' RESPONSIBILITY STATEMENT: In accordance with the provisions of Section 217(2AA) of the Companies Act 1956 with respect to Directors' Responsibility Statement, it is hereby confirmed: 1. That in preparation of the annual accounts for the financial year ended 31st March, 2007 the applicable Accounting Standards have been followed alongwith proper explanations relating to material departures. 2. That the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as al 31st March, 2007 and of Profit & Loss Account for the year ended 31st March, 2007. 3. That the Directors have taken proper and sufficient care of the maintenance on adequate accounting records in accordance with the provisions of the Companies Act, 1956 for sale guarding the assets of the Company and for preventing and detecting fraud and other irregularities. 4. That the Directors have prepared the annual accounts for the financial year ended 31st March, 2007 on a going concern basis. WORKING: There was no working during the year. DIVIDEND: Your Directors do not recommend payment of any dividend. AUDITORS: M/s. G.P. Agrawal & Co., Chartered Accountants, the auditors of the Company retires at the ensuing Annual General Meeting and offer themselves for re- appointment. Your Directors recommend your appointment. PERSONAL: There being no employee receiving remuneration as stipulated u/s. 217(2A) of the Companies Act 1956, no statement is being attached. By order of the Board of (VINOD KUMAR JHUNJHANWALA) (ASHOK KUMAR JHUNJHANWALA) REGISTERED OFFICE 135, Canning Street, Calcutta - 700 001 DATED: 25th August, 2007.