The Directors present their Thirty-sixth Annual Report together with
 the audited Accounts of the Company for the year ended 31st March,
 2002.
 
 FINANCIAL RESULTS:
 
                                                 2001-2002     2000-2001
                                                           (Rs. in Lacs)
 
 Profit/(Loss) before depreciation and
 exceptional expenses                             (135.85)      (342.38)
 
 Depreciation for the year                         (22.23)       (22.02)
 
 Voluntary Retirement Scheme Compensation                -      (306.47)
 
 Gratuity                                                -       (59.44)
 
 Bad/Doubtful Debts                                      -      (123.23)
 
 Profit/(Loss) for the year                       (158.08)      (853.54)
 
 Depreciation for prior years                            -        (6.43)
 
 Expenses for prior years                           (9.47)             -
 
 Balance of profit/(Loss) brought forward       (1,379.19)      (519.22)
 
 Balance carried forward (Loss)                 (1,546.74)    (1,379.19)
 
 In view of the loss for the year under review your Directors regret
 their inability to recommend any Dividend.
 
 OPERATIONS AND SALES:
 
 The sale of beer manufactured by the Company amounted to Rs. 256.45
 lacs as against Rs. 1059.65 lacs for the previous year. The operations
 of the Company have resulted in a loss of Rs. 158.08 lacs for the year
 after providing for depreciation of Rs. 22.23 lacs as compared to loss
 of Rs. 853.54 lacs for the previous year. The loss during the year is
 due to stiff competition in the market resulting in lower sales,
 lower realisation and under utilisation of capacity.
 
 CURRENT YEAR:
 
 The Company has made arrangement for contract bottling of beer brands
 for a leading beer company during the current year. With this there
 would be improvement in utilization of capacity of the Brewery.
 Considering the present market conditions it will take some more period
 to improve the operations of the Company.
 
 REVIVAL PACKAGE:
 
 In the last Annual Report it was reported that BIFR has directed the
 Operating Agency viz., Bank of Baroda (BOB) to examine the viability
 and to formulate a Draft Rehabilitation Scheme (DRS) considering the
 proposal submitted by the Company. BOB has formulated the DRS and
 submitted the same to BIFR. The same is still pending with BIFR. The
 Company has requested BIFR to expedite and pass necessary order to
 overcome the difficulties faced by the Company.
 
 CASH FLOW:
 
 The members are requested to refer to the Annexure - 1 to the report
 wherein cash flow statement for the year ended 31st March, 2002 duly
 certified by the Auditors, is furnished in terms of the provisions of
 the Listing Agreement with the Stock Exchange.
 
 DIRECTORS' RESPONSIBILITY STATEMENT:
 
 The Directors state that:
 
 (i) In the preparation of the Annual Accounts, the applicable
 accounting standards have been followed alongwith proper explanation
 relating to material departures;
 
 (ii) The Directors have selected such accounting policies and applied
 them consistently and made judgements 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 period;
 
 (iii) 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 as amended, for safeguarding the
 assets of the Company and for preventing and detecting fraud and
 other irregularities;
 
 (iv)) The Directors have prepared the annual accounts on a going
 concern basis.
 
 CORPORATE GOVERNANCE:
 
 The Company is in the process of implementing Corporate Governance as
 laid down in clause 49 of the listing agreement.
 
 The Audit Committee has been constituted by the Board of Directors
 consisting of following Directors:
 
 1) Shri P. P. Mahatme;
 
 2) Shri V. V. Chowgule; and
 
 3) Dr. H. G. V. Reddy.
 
 THE PARTICULARS AS REQUIRED BY THE COMPANIES (DISCLOSURE OF PARTICU-
 LARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988:
 
 Information pursuant to Section 217(1) of the Companies Act, 1956, read
 with the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 is given in the Annexure - II and forms part of
 this Report.
 
 THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975:
 
 None of the employees of the Company were in receipt of remuneration
 for the financial year ended 31 st March, 2002 which in the aggregate
 was not less than Rs. 24,00,000/- per annum or at a rate which was not
 less than Rs. 2,00,000/- per month.
 
 DIRECTORS:
 
 As reported last year Mr. S. R. Tamba by notice in writing addressed to
 the Company had expressed his unwillingness to be reappointed as
 Director of the Company. Accordingly, he ceased to be Director of the
 Company from 18th July, 2001. The Board has placed on record its
 appreciation of the valuable services rendered by Mr. S. R. Tamba
 during the tenure as Director of the Company.
 
 Mr. V. D. Chowgule retires by rotation and being eligible, offers
 himself for re-appointment.
 
 Dr. H. G. V. Reddy retires by rotation. Dr. Reddy has by a notice in
 writing, addressed to the Company expressed his unwillingness to be so
 re-appointed.
 
 Mr. P. P. Mahatme who was appointed in place of Mr. S. N. Talwar holds
 office till the date of the forthcoming Annual General Meeting. Notice
 in writing alongwith deposit of requisite amount under Section 257 of
 the Companies Act, 1956 has been received from the shareholder of the
 Company signifying his intention to propose Mr. P. P. Mahatme as a
 candidate for the office of the Director.
 
 AUDITOR'S COMMENTS:
 
 Auditor's Comments under para 3 of their report relating to the
 preparation of the accounts on Going Concern basis and para 5(iv)
 relating to provision for gratuity and disclosure of information in
 respect of amount due to small scale industrial undertakings, this is
 to clarify that Notes 14, 3 and 12 respectively to Schedule P to the
 Accounts are self explanatory.
 
 Auditor's Comments under para 16 to the annexure regarding delays in
 four instances - the said amount has already been paid; and
 
 Auditor's Comments under para 17 to the annexure regarding Sales Tax
 remained unpaid - the said para 17 read with Note 14 of Schedule P
 are self explanatory.
 
 AUDITORS:
 
 Messrs S. B. Billimoria & Co., Chartered Accountants, Auditors of the
 Company retiring at the forthcoming Annual General Meeting of the
 Company are eligible for appointment as auditors of the Company.
 
 ANNEXURE TO THE DIRECTORS' REPORT FOR 2001-2002
 
 STATEMENT CONTAIN ING THE PARTICULARS AS REQUIRED BY THE COMPANIES
 (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
 RULES, 1988:
 
 A. CONSERVATION OF ENERGY:
 
 a) energy conservation measures taken
 
 b) additional investments and proposals, if any, being implemented for
 reduction of consumption of energy
 
 c) impact of the measures at (a) and (b) above for reduction of energy
 consumption and consequent impact for the cost of production of goods
 
 As per the Report of Petroleum Conservation Research Association one
 of the Boilers consuming more furnace oil and correspondingly producing
 less energy has been replaced with new one
 
 d) Total energy consumption and energy consumption per unit of
 production in respect of industries specified.
 
 Not applicable
 
 B. TECHNOLOGY ABSORPTION:
 
 e) efforts made in technology absorption, Research and Development
 (R&D):
 
 1. Specific areas in which R&D carried out by the Company.
 
 2. Benefits derived as a result of the above R&D.
 
 3. Future Plan of action
 
 4. Expenditure on R&D
 
 a) Capital
 
 b) Recurring
 
 c) Total
 
 d) Total R&D expenditure as a percentage of total turnover
 
 The Company has not obtained any technology either from abroad or
 indigenous during the last five years for manufacture of beer. The
 Company has adopted from time to time various techniques in its brew
 house, fermentation and lagering section to improve productivity.
 
 All these steps enabled the Company to increase the productivity.
 
 Technology absorption, adaptation and Innovation.
 
 1. Efforts, in brief, made towards technology absorption, adaptation
 and innovation.
 
 2. Benefits derived as a result of the above efforts e.g. product
 improvement, cost reduction, product development import substitution
 etc.
 
 3. In case of imported technology (imported during the last 5 years
 reckoned from the beginning of the financial year), following
 information may be furnished:
 
 a) Technology imported.
 
 b) Year of Import.
 
 c) Has technology been fully absorbed.
 
 d) If not fully absorbed areas, where this has not taken place, reasons
 therefor and future plans of action
 
 No expenditure has been incurred on imported technology during the year
 under review.
 
 C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
 f) Activities relating to exports; initiative taken to increase
 exports; development of new export markets for products and services;
 and export plans; and
 
 The Company is not engaged in exports business.
 
 g) Total foreign exchange used and earned:
 
 The Company has not earned any foreign exchange. The total foreign
 exchange used during the year works out to Rs. 13.43 lacs.
 
                                   ON BEHALF OF THE BOARD OF DIRECTORS
 
                                             V. V. CHOWGULE
                                                CHAIRMAN
 
 Date: 22nd April, 2002