డైరెక్టర్ల నివేదిక Alacrity Housing Ltd.

Mar 31, 2014

Dear Members,

We take pleasure in presenting this, our Twenty Second Annual Report of our Company together with the Audited Accounts for the year ended 31st March, 2014.

FINANCIAL RESULTS

2013-2014 2012-2013 (Lacs) (Lacs)

Profit/(Loss) before Depreciation and Tax (16.72) (40.16)

Less: Depreciation 0.18 0.23

Loss before Tax (16.90) (40.39)

Less: Provision for Tax including Deferred Tax Nil Nil

Loss after Tax (16.90) (40.39)

Add: Balance brought forward from previous year (8630.89) (8590.50)

Balance carried forward to Balance Sheet (8647.79) (8630.89)

The Directors in their report are required to state the material developments that have taken place in the business of the Company up to the date of the said Report. Accordingly, the material developments up to date of this Report are covered as appropriate in the following paragraphs.

The Present Situation:

The Directors are pursuing their sincere efforts to resume the operations of the Company with the help of like- minded investors.

Corporate Governance:

The Company is presently handicapped due to the absence of a Company Secretary (the previous Company Secretary had resigned from the services of the Company in 2001-2002) and there being no staff in the Secretarial Department, it has not been possible to prepare the Corporate Governance and Management Analysis Reports required to be annexed to the Annual Report which shall be circulated to the members as soon as they are compiled.

PUBLIC DEPOSITS

Your Company has neither invited nor accepted any deposits from the Public.

LISTING

Your Company''s shares are currently listed at Mumbai, Coimbatore, Hyderabad and Ahmedabad Stock Exchanges. The Company is in arrears of the listing fees to the Stock Exchanges as detailed below. Trading of the Company''s shares has been suspended on account of non-payment of listing fees as well as non-compliance of corporate governance as stipulated in Clause 49 of the Listing Agreement with the stock exchanges.

Name of Stock Exchange Arrears in listing fees

Bombay Stock Exchange 2010-11

Madras Stock Exchange 2010-11

Hyderabad Stock Exchange 2004-05

Coimbatore Stock Exchange 2003-04

Ahmedabad Stock Exchange 2003-04

Your Company proposes to save procedure and expenses by voluntarily delisting the Company''s shares from The Madras Stock Exchange, The Coimbatore Stock Exchange, The Ahmedabad Stock Exchange and The Hyderabad Stock Exchange while continuing listing in the Bombay Stock Exchange. Such delisting will not adversely affect the interests of any investors since nationwide online terminals are provided by the Bombay Stock Exchange.

DIRECTORS .

Mr. Dilip Dharmasthal, Director, retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for reappointment. .

SECRETARY

The Company Secretary''s post in your Company is vacant.

AUDITOR''S REPORT

The observations made in the Auditor''s Report and Notes on accounts are self-explanatory and do not require any further explanations except for the reference to the following in the Annexure to the Auditor''s Report where the Directors wish to state as follows:

i. Point (iv) & (viO: The internal control & systems which had slackened in the earlier years of organizational agitation and demotivation are in the process of gradual restoration although the operations now are on a much reduced scale. However, the Company is presently taking steps to improve the position in all areas.

ii. Point (ix) a.: The Company is making every effort to clear the undisputed statutory dues in due course.

iii. Point lix) b.: ESIC dues are subject of appeals filed by the Company before courts/ appropriate authorities.

iv. Point (xi): The Company is in constant negotiations with all the Banks and is requesting them to waive interest in full in all cases and also portion of principal dues in certain cases. The Company is confident to clear the agreed sums in due course.

AUDITORS

Mr. R. Vathsangam, Chartered Accountant, Chennai, Auditor of the Company, retires at the ensuing Annual General

Meeting and it is proposed that Mr. R. Vathsangam, Chartered Accountant, Chennai be appointed as Statutory , Auditor of the Company at the ensuing Annual General Meeting.

STATUTORY DISCLOSURES

Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988:

'' a) Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:

Particulars with respect to Conservation of Energy and Technology absorption are not applicable to the Company. During the year under review the foreign exchange earnings and outgo were: NIL

b) Particulars of Employees under Section 217 (2A)

As there are no employees who are in receipt of remuneration exceeding the limits prescribed, the statement required under section 217 (2A) of the Companies Act,1956, read with Companies (Particulars of Employees) Rules, 1975 is not provided.

c) Directors''Responsibility Statement

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company confirm:

- that in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that there are no material departures;

- that they have 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 LOSS of the Company for the year under review;

- that they 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 fraud and other irregularities; and

- that they have prepared the annual accounts on a "going-concern basis".

DEMATERIALISATION OF SHARES

The company has entered into an agreement with National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) for dematerialization of the Company''s shares. Members are requested to hold their shares in demat form since it will help in easy trading in shares even though they are informed that holding of shares in demat form is not compulsory but only optional.

ACKNOWLEDGEMENT

Your Directors take this opportunity to offer their sincere thanks to the Customers, Shareholders and investors for their unstinted support and assistance and look forward to their continuing support and encouragement.

For and on behalf of the Board For Alacrity Housing Limited

Place: Chennai Ashok Karnad Date: 1st September 2014 MANAGING DIRECTOR

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Mar 31, 2010

We take pleasure in presenting this, our Eighteenth Annual Report of your Company together with the Audited Accounts for the year ended 31st March, 2010.

FINANCIAL RESULTS

2009-2010 2008-2009

(Rs.Lacs) (Rs.Lacs)

Profit/ (Loss) before Depreciation and Tax (15.98) (8.37)

Less: Depreciation 0.51 0.56

Loss before Tax (16.49) (8.93)

Less: Provision for Tax including Deferred Tax Nil Nil

Loss after Tax (16.49) (8.93)

Add: Balance brought forward from previous year (7320.70) (7311.77)

Balance carried forward to Balance Sheet (7337.19) (7320.70)

The Directors in their report are required to state the material developments that have taken place in the business of the Company up to the date of the said Report. Accordingly, the material developments up to date of this Report are covered as appropriate in the following paragraphs.

The Present Situation:

With the limited organization it has, the Company has taken up a couple of small housing projects in association with another small developer, a new entrant in the field. The loss for the year is on account of the modest surplus from these projects not fully covering overheads, the costs of fulfilling pending compliances with statutory authorities and other legal costs and expenses which have had to be covered through unsecured loans.

The Company retains its belief that, sooner than later, with the support of like-minded investors who see the market value of the Alacrity brand, it can not only revive but also, in due course, scale up its operations towards regaining its earlier preeminent market standing.

Summary of the Loss position as at 31.3.2010:

The losses reflected in the audited accounts over 7 financial years, including cost overruns, provisions for customer refunds committed and claims against the Company on account of legal cases, accumulate to Rs.8137.29 lacs which, based on events and activities of a particular year, is distributed across the 7 financial years respectively as follows:

Financial Year Loss for the year (in lacs of Rs.)

2003-04 2439.55

2004-05 770.53

2005-06 4796.92

2006-07 36.33

2007-08 68.54

2008-09 8.93

2009-10 16.49

Total 8137.29



Corporate Governance:

The Company is presently handicapped due to the absence of a Company Secretary (the previous Company Secretary had resigned from the services of the Company in 2001-2002) and there being no staff in the Secretarial Department, it has not been possible to prepare the Corporate Governance and Management Analysis Reports required to be annexed to the Annual Report which shall be circulated to the members as soon as they are compiled.

PUBLIC DEPOSITS

Your Company has neither invited nor accepted any deposits from the Public.

LISTING

Your Companys shares are currently listed at Chennai, Mumbai, Coimbatore, Hyderabad and Ahmedabad Stock Exchanges. The Company is in arrears of the listing fees to the Stock Exchanges as detailed below. Trading of the Companys shares has been suspended on account of non-payment of listing fees as well as non-compliance of corporate governance as stipulated in Clause 49 of the Listing Agreement with the stock exchanges.

Name of Stock Exchange Arrears in listing fees from financial year

Bombay Stock Exchange 2008-09 Madras Stock Exchange 2007-08

Hyderabad Stock Exchange 2004-05

Coimbatore Stock Exchange 2003-04

Ahmedabad Stock Exchange 2003-04

Your Company proposes to save procedure and expenses by voluntarily delisting the Companys shares from The Madras Stock Exchange, The Coimbatore Stock Exchange, The Ahmedabad Stock Exchange and The Hyderabad Stock Exchange while continuing listing in the Bombay Stock Exchange. Such delisting will not adversely affect the interests of any investors since nationwide online terminals are provided by the Bombay Stock Exchange.

DIRECTORS

Mr. Ashok Karnad, Director, retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for reappointment.

SECRETARY

The Company Secretarys post in your Company is vacant.

AUDITORS REPORT

The observations made in the Auditors Report and Notes on accounts are self-explanatory and do not require any further explanations except for the reference to the following in the Annexure to the Auditors Report where the Directors wish to state as follows:

i. Point (iv) & (vii): The internal control & systems which had slackened in the earlier years of organizational agitation and demotivation are in the process of gradual restoration although the operations now are on a much reduced scale. However, the Company is presently taking steps to improve the position in all areas.

ii. Point (ix) a.: The Company is making every effort to clear the undisputed statutory dues in due course.

iii. Point (ix) b.: Income tax and ESIC dues are subject of appeals filed by the Company before courts/ appropriate authorities.

iv. Point (xi): The Company is in constant negotiations with all the Banks and is requesting them to waive interest in full in all cases and also portion of principal dues in certain cases. The Company is confident to clear the agreed sums in due course.

v. Point (xv): The Company had given guarantee to Canara Bank, Teynampet branch for Rs.400 lacs facilities by them extended to Alacrity Electronics Ltd (AEL) in March 2001 and had kept the members informed in the Annual General Meeting held for the year ended March 2001. AELs present outstanding to Canara Bank is only Rs.26 lacs.

vi. Point xxi i).: In the years 2002-2003 and 2003-2004 a total of 85 cheques were issued by State Bank of India (SBI) for Rs.300 lacs which included some cheques for fresh employee home loans and others for take-over of the then existing employee home loans from Citibank. However, due to clerical errors, 4 cheques amounting to Rs.13.63 lacs were inadvertently credited to the Companys account which was repaid by the Company immediately after noticing the error. The Company and its Directors are disputing the matter in courts and taking all necessary steps in this regard.

vii. Point xxi ii): Due to the Companys dire financial position from 2002-2003, salaries of employees were in arrears and the corresponding deductions towards provident fund were also not made. There was no misappropriation of amounts deducted for PF. The Company and its Directors are disputing the matter in courts and taking all necessary steps in this regard.

AUDITORS

M/s. Chaturvedi & Partners, Chartered Accountants, Chennai, Auditors of the Company, retire at the ensuing Annual General Meeting and have not offered themselves for reappointment.

It is proposed that Mr. R. Vathsangam, Chartered Accountant, Chennai be appointed as Statutory Auditor of the Company at the ensuing Annual General Meeting.

STATUTORY DISCLOSURES

Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988:

a) Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:

Particulars with respect to Conservation of Energy and Technology absorption are not applicable to the Company.

During the year under review the foreign exchange earnings and outgo were: NIL

b) Particulars of Employees under Section 217 (2A)

As there are no employees who are in receipt of remuneration exceeding the limits prescribed, the statement required under section 217 (2A) of the Companies Act,1956, read with Companies (Particulars of Employees) Rules, 1975 is not provided.

c) Directors Responsibility Statement

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company confirm:

- that in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that there are no material departures;

- that they have 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 LOSS of the Company for the year under review;

- that they 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 fraud and other irregularities; and

- that they have prepared the annual accounts on a "going-concern basis".

DEMATERIALISATION OF SHARES

The company has entered into an agreement with National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) for dematerialization of the Companys shares. Members are requested to hold their shares in demat form since it will help in easy trading in shares even though they are informed that holding of shares in demat form is not compulsory but only optional.

ACKNOWLEDGEMENT

Your Directors take this opportunity to offer their sincere thanks to the Customers, Shareholders and investors for their unstinted support and assistance and look forward to their continuing support and encouragement.

For and on behalf of the Board of Directors

For Alacrity Housing Limited

Place: Chennai Amol Karnad

Date: 30th September 2010 Chairman

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Mar 31, 2009

We take pleasure in presenting this, our Seventeenth Annual Report of your Company together with the Audited Accounts for the year ended 31st March, 2009.

FINANCIAL RESULTS

2008-2009 2007-2008 (Rs.Lacs) (Rs.Lacs) Profit/(Loss) before Depreciation and Tax (8.37) (67.94) Less: Depreciation 0.56 0.61 Loss before Tax (8.93) (68.54) Less: Provision for Tax including Deferred Tax Nil Nil Loss after Tax (8.93) (68.54) Add: Balance brought forward from previous year (7311.77) (7243.23) Balance carried forward to Balance Sheet (7320.70) (7311.77)

The Directors in their report are required to state the material developments that have taken place in the business of the Company up to the date of the said Report. Accordingly, the material developments up to date of this Report are covered as appropriate in the following paragraphs.

PERFORMANCE:

The problems:

As shareholders are aware, since inception, your Company has been a pioneer in the real estate business and has had an enviable position in Chennai City and suburbs. Your Company, during the period 1992-93 to 2001-02 built and delivered about 40 lakh sq. ft. and over 4000 apartments, enjoying an excellent reputation and goodwill which continued to attract potential buyers.

However, from the year 1997, due to general recessionary conditions in the economy, the real estate business saw difficult times and your Companys fortunes were greatly affected due to the following factors:

i) The Companys policy of underwriting fixed prices and committed delivery dates could not be adhered to as liquidity progressively dried up and operations could not be continued.

ii) The delays in all projects, coupled with large establishment costs and high interest rates and escalating costs, resulted in large losses being incurred.

iii) As the Company could not pay salary/wages in time to its employees, employee-trade unions came into being and striking employees forced frequent interruptions in work. Consequently, there was massive attrition and skilled, experienced manpower left the Company. Senior Managers also joined this exodus adding to problems.

iv) The external environment turned unfavorable with dissatisfied customers, nervous bankers, impatient landowners/joint venture partners and other constituents withdrawing cooperation/ support. Several of them have filed legal cases against the Company and its Directors thereby adding to the serious problems already faced by the Company.

v) All through this period, there was unavoidable and progressive disruption of business operations and office systems, including accounting work, which delayed statutory compliances for several years. The Statutory Auditor of the Company since inception , Mr. Rajan V. Chacko suddenly passed away in August 2008, and the audit process had to be redone with newly appointed Statutory Auditors M/s. Chaturvedi & Partners. The Company has had to greatly struggle to put together the accounts and get the audit for the pending six years (from 2003-04 to 2008-09) completed for presentation to shareholders now.

vi) The effort is now to bring to up to date all the pending compliances with all statutory authorities.

The present situation:

i) It is to be noted that the Company has had to take very difficult decisions in a very unfavorable business environment in order to meet its commitments to existing customers in unfinished projects. It is a measure of the commitment and faijh of the customers and shareholders that the Company was able to, and is today, sorting out these difficult issues slowly but steadily.

- In respect of 38 projects pending completion for total built up area of 10.92 lakh sq feet, the Company managed to complete and deliver these projects to customers over a period of time. However customers, who were required to make additional payments over the agreed fixed prices contracted had to be given an assurance that the Company will in the future refund the extra amounts. The Company has provided for this assurance an amount of Rs 412.67 lacs in the accounts for the years 2004-05 and 2005-06.

- In respect of 8 projects pending completion for total built up area of 1.56 lakh sq. feet, other developers took over, completed and handed over the apartments to customers. However, in respect of these projects also, customers who had to pay escalation in prices to these developers, were assured that the Company will in the future refund the additional amounts paid by them. An amount of Rs 176.98 lacs is provided in the accounts for the years 2004-05 and 2005-06, based on dates of customer agreements, and forms part of the losses reported for those years.

- 13 projects pending completion for total built up area of 5.88 lakh sq feet, were joint venture projects in which a certain percentage of built up area was allotted at an agreed rate to the land owners as consideration for their land. The cost overruns/ losses in these projects were reduced as the developers who took over these projects also accepted to meet related liabilities to an extent of Rs 1216.00 lakhs. The effect of this recovery is spread across and reflected in the financial years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09.

- In respect of 2 larger projects pending completion for total built up area of 3.17 lakh sq feet:

- the land owners themselves were power of attorney holders

- installments of payments to landowners had been delayed

- about 25% to 30% of the total consideration remains unpaid

- undivided share of land, with the willing participation of landowners, had been provided as collateral security to the bankers

Taking advantage of the subsequent escalation in land prices, the land owners refused to register the undivided share of land in favor of customers on whose account they had already been paid. This has developed into legal issues such as:

i. In one case, some customers agreed to withdraw from the project on the understanding that their money be refunded with a nominal interest. An agreement was drawn up with the landowner who undertook to take back the land on which some construction work had been completed, by discharging the bank and enabling the refund of monies to the customers. As the landowner failed to complete the payment to the customers, the matter is presently before the Honble High Court of Madras, with the Company as a willing respondent.

ii. The second case is a JV project in which about 3.58 acres out of a total of about 8 acres of undivided land is still to be developed. Its current market value is large enough to cover the pending dues to the landowners with interest as well as pending dues to the various banks. The landowners however, who have not completed the land registration of about 177 flat owners, have staked their claim to the entire said 3.58 acres, offering a minimum settlement amount to the banks which has not so far been accepted. The resultant prolonged stalemate has prompted some customers to approach the courts where the cases have dragged despite the Companys cooperative participation as a respondent. While 206 flats have already been delivered in the 4.42 acres of this project, construction is in slow progress in another 80 flats.

Summary of the Loss position as at 31.3.2009:

The losses reflected in the audited accounts over 6 financial years, including cost overruns, provisions for customer refunds committed and claims against the Company on account of legal cases, accumulate to Rs 8120.80 lacs which, based on events and activities of a particular year, is distributed across the 6 financial years respectively as follows:

Financial Year Loss for the year (in lacs of Rs.) 2003-04 2439.55 2004-05 770.53 2005-06 4796.92 2006-07 36.33 2007-08 68.54 2008-09 8.93 Total 8120.80

Corporate Governance:

The Company is presently handicapped due to the absence of a Company Secretary (the previous Company Secretary had resigned from the services of the Company in 2001-2002) and there being no staff in the Secretarial Department, it has not been possible to prepare the Corporate Governance and Management Analysis Reports required to be annexed to the Annual Report which shall be circulated to the members as soon as they are compiled.

THE WAY FORWARD

It is a matter of satisfaction that in spite of the above serious problems the Company has been able to withstand immense pressure from all sides and persevered with the work of attending effectively to all the pending issues and problems.

It is also a matter of gratification that the Alacrity name still carries a lot of goodwill and support, judging by the response that the Company has got from all its constituents: this gives hope that there is a future to be built after all the present problems are satisfactorily resolved.

Your Directors are exploring all avenues for future growth: specific plans will be intimated to the members as and when they materialize.

PUBLIC DEPOSITS

Your Company has neither invited nor accepted any deposits from the Public.

LISTING

Your Companys shares are listed at Chennai, Mumbai, Coimbatore, Hyderabad and Ahmedabad Stock Exchanges. The Company is in arrears of the listing fees to the Stock Exchanges as detailed below. Trading of the Companys shares has been suspended on account of non-payment of listing fees as well as non-compliance of corporate governance as stipulated in Clause 49 of the Listing Agreement with the stock exchanges.

Name of Stock Exchange Arrears in listing fees from financial year Bombay Stock Exchange 2007-08 Madras Stock Exchange 2007-08 Hyderabad Stock Exchange 2003-04 Coimbatore Stock Exchange 2003-04 Ahmedabad Stock Exchange 2003-04

DIRECTORS

Mr. Ajit Hattikudur, Director, retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for reappointment.

SECRETARY

The Company Secretarys post in your Company is vacant. AUDITORS REPORT

The observations made in the Auditors Report and Notes on accounts are self-explanatory and do not require any further explanations except for the reference to the following in the Annexure to the Auditors Report where the Directors wish to state as follows:

i. Point (iv) & (vii): The internal control & systems which had slackened in the earlier years of

organizational agitation and demotivation are in the process of gradual restoration although the operations now are on a much reduced scale. However, the Company is presently taking steps to improve the position in all areas.

ii. Point (ix) a.: The Company is making every effort to clear the undisputed statutory dues in due course.

iii. Point ((xi) b.: Income tax and ESIC dues are subject of appeals filed by the Company before courts/ appropriate authorities.

iv. Point (xil: The Company is in constant negotiations with all the Banks and is requesting them to waive interest in full in all cases and also portion of principal dues in certain cases. The Company is confident to clear the agreed sums in due course.

v. Point (xv): The Company had given guarantee to Canara Bank, Teynampet branch for Rs.400 lacs

facilities by them extended to Alacrity Electronics Ltd (AEL) in March 2001 and had kept the members informed in the Annual General Meeting held for the year ended March 2001. AELs present outstanding to Canara Bank is only Rs.26 lacs.

vi. Point xxi i).: In the years 2002-2003 and 2003-2004 a total of 85 cheques were issued by State Bank of India (SBI) for Rs. 300 lacs which included some cheques for fresh employee home loans and others for take-over of the then existing employee home loans from Citibank. However, due to clerical errors, 4 cheques amounting to Rs. 13.63 lacs were inadvertently credited to the Companys account which was repaid by the Company immediately after noticing the error. The Company and its Directors are disputing the matter in courts and taking all necessary steps in this regard.

vii. Point xxi ii): Due to the Companys dire financial position from 2002-2003, salaries of employees were in arrears and the corresponding deductions towards provident fund were also not made. There was no misappropriation of amounts deducted for PF. The Company and its Directors are disputing the matter in courts and taking all necessary steps in this regard.

AUDITORS

M/s, Chaturvedi & Partners, Chartered Accountants, Chennai, were appointed as Auditors of the Company by the Board of Directors in the casual vacancy caused by the death of the Statutory Auditor of the Company Mr. Rajan Verghese Chackb, Chartered Accountant. M/s. Chaturvedi & Partners, Chartered Accountants have audited the accounts of the Company for the year 2008-09.

It is proposed that M/s. Chaturvedi & Partners, Chartered Accountants, Chennai be appointed as Statutory Auditors of the Company at the ensuing Annual General Meeting.

STATUTORY DISCLOSURES

Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988:

a) Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:

Particulars with respect to Conservation of Energy and Technology absorption are not applicable to the

Company.

During the year under review the foreign exchange earnings and outgo were: NIL

b) Particulars of Employees under Section 217 (2A)

As there are no employees who are in receipt of remuneration exceeding the limits prescribed, the statement required under section 217 (2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975 is not provided.

c) Directors Responsibility Statement

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company confirm:

- that in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and that there are no material departures;

- that they have 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-LOSS of the Company for the year under review.;

- that they 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 fraud and other irregularities; and

- that they have prepared the annual accounts on a "going-concern basis".

DEMATER1ALISATION OF SHARES

The company has entered into an agreement with National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) for dematerialization of the Companys shares. Members are requested to hold their shares in dematform since it will help in easy trading in shares even though they are informed that holding of shares in demat form is not compulsory but only optional.

ACKNOWLEDGEMENT

Your Directors take this opportunity to offer their sincere thanks to the Customers, Shareholders and investors for their unstinted support and assistance and look forward to their continuing support and encouragement.

For and on behalf of the Board of Directors For Alacrity Housing Limited Place: Chennai Amol Karnad Date: 30th April 2010 Chairman