Dear Shareholders,

I have great pleasure in presenting the Seventeenth  Annual Report and Audited Financial Statements for the financial year  ended 31st March 2010. The year 2009-10 was quite a tough year but there was respite compared to the preceding year. Due to the worldwide financial crisis resulting in a major contraction in global demand, the Indian economy faced quite a few uncertainties. Business sentiment was weak and growth had started decelerating, threatening the capacity of the economy to sustain and improve on the high levels experienced over several years. The only hope arose when the current year rolled out.

The world trade in textile and clothing in the year also witnessed a decline over the previous year. But in the later part of the year, the exports looked up and capacity utilization in the Industry improved considerably. Garment exports from India dropped 2.64 per cent to 10.64 billion dollars in 2009-10 compared to 10.93 billion dollars in the previous financial year as per data of  Apparel Export Promotion Council (AEPC) . Apparel exports totaled Rs 50,479 crore in 2009-10 compared to Rs 50,293 crore in 2008-09. But in dollar terms, all months of 2009-10 except July, August and November showed a painful downslide. The stimulus package of and other steps taken by Govt. of India for textile industry definitely helped this Industry to tide over the difficult year. The depreciation of Indian Rupee also supported the export of Textiles including yarn. Off course towards the end of 2009-10 rupee tended to appreciate against dollar to some extent.

Overall the end part year 2009-10 has shown a considerable improvement in the Indian Textiles because of robust domestic demand and better export orders. Indian economy definitely was more insulated from the effects of world recession partly due to domestic demand and partly the timely policy changes brought in by the Government of India to cope with the situation.  Fortunately, India has achieved a good break through in cotton production. In both the years 2008 and 2009, the production was more than the consumption in the country. Though the prices in the year 2009 tended to increase due to uncontrolled exports causing imbalance in the demand and supply, yet the situation improved as soon as the new crop started picking up towards October-November, 2009. The year 2010-11 started with a great degree of optimism. The demand for yarn which is a raw material for knitted fabric,   turned  strong and there has been commensurate increase in the yarn prices because of good demand.

Despite all swings,  your Company recorded a good performance in terms of increased Turnover, Exports  and profitability. During year 2009-10, your Company was able to achieve  an increased turnover of Rs.  8689.09 Lacs as against Rs 8039.37 Lacs , thus registering an increase of  around 8.08%. The Profits after Tax of the Company for  the year ended  31.03.2010 has been Rs. 111.12 Lacs as against Rs. 93.65 Lacs  in the previous year thus showing a significant  increase of around 18.66 % over the previous year Net Profits after tax. The Exports of the Company for the financial year ended 31.03.2010 were to the tune of  Rs. 3472.17 Lacs as compared to Rs.  2673.88 Lacs (regrouped figures) in the previous year showing an increase of 29.86% over the previous. Whereas the global slow down of the economies hit the garments  exports from India  also, the Company was still able to show a good performance in terms of increased exports.

Alongwith the impressive strides in business, we are eagerly working towards playing a committed role in the area of Corporate Social Responsibility. We proudly state that  your Company is a W.R.A.P,  B.S.C.I and C-TPAT Certified Company .

 Your Company, last years entered  the  Indian Retail Segment by opening  Retail Outlets/ Showrooms in Punjab, Rajasthan and Himachal Pardesh. We are endeavoring to  add  more retail showrooms within India.

Our success and growth greatly depends on the skills and dedication of our employees, co-operation of our Bankers, and other business constituents,  whom I would like to thank sincerely . I am looking forward to another exciting year ahead.

Finally, I take this opportunity to thank all the Company's stakeholders for their confidence  in Bhandari Hosiery and I look forward for their continued support in the years to come.

Warm Regards

     Sd/-
NITIN BHANDARI
CHAIRMAN & MG. DIRECTOR