The Directors present their Tenth Annual Report together with Audited
 Statement of Accounts for the year ended on 30th September, 1998.
 
 FINANCIAL RESULTS :
                            
                                                           (Rs. in Lacs)
 	                                                 AS AT	      AS AT
 	                                              30.09.98    30.06.97
 
 Income from Operations	                           (14.85)	    (54.95)
 Less : Depreciation	                                15.37	    192.85
 Less : Preliminary Expenses written off              4.12	      4.12
 Profit/(Loss) before Tax	                       (34.33)	   (251.92)
 Less : Provision for Taxation	                      NIL	      0.18
 Profit/(Loss) After Tax	                           (34.33)	   (252.10)
 Less : Income Tax for earlier years	                 0.02	      0.21
 Add : Balance Brought Forward	                  (131.20)      121.15
 Surplus (Deficit)	                              (165.55)     (131.16)
 
 CHANGE IN ACCOUNTING YEAR :
 
 The Directors inform you that Accounting Year of the Company has been
 changed from July June to Oct.-Sept.  Hence, the accounts for the current year comprise of 15 months ended
on 30th Sept, 1998.
 
 DIVIDEND :
 
 Due to absence of divisible profit the Directors are unable to recommend any dividend for the year.
 
 OPERATIONS :
 
 The year under consideration has not been good for Non-banking Finance
 Companies in general and the industry has seen big casualities.  Our
 stock markets also have not performed well during the year.  There was
 continuous fall in the value of investments and the investors were in
 deliema whether to hold or to disinvest.  The Company is not an exception to the conditions prevailing in
the market in general. However wherever possible, the Directors have taken all remedial actions to safeguard
the interests of the Company.
 
 REGISTRATION WITH RBI :
 
 The Company has submitted application for registration with Reserve
 Bank of India and the registration certificate is awaited.
 
 DIRECTORS :
 
 During the year, Shri O.P. Agrawal was appointed as additional Director
 and whole time Director of the Company.  In accordance with the provisions of Article 126 of Articles of
Association of the Company,
 Mr. G.L. Sharma will retire by rotation at the forthcoming Annual
 General Meeting and is eligible for reappointment.
 
 AUDITORS :
 
 The Retiring Auditors M/s. S.S. Somani and Co., Chartered Accountants,
 hold office until the conclusion of the ensuing Annual General Meeting
 and are eligible for reappointment.
 
 AUDITORS REPORT :
 
 The observations made in the Auditors Report are self explanatory hence
 do not require further explanation.
 
 PARTICULARS OF EMPLOYEES :
 
 None of the employees of the Company during the year.  was in receipt
 of remuneration in excess of the limits prescribed under the provisions
 of the Section 217(2A) of the Companies Act, 1956, read with Companies
 (Particular of Employees) Rules, 1975.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO :
 
 Our Company, basically a Finance Company, has not consumed energy of
 any significant level and accordingly no measures were taken for energy
 conservations and no additional investment has been made for reduction
 of energy.
 
 No comment is made on Technology absorption considering the nature of
 activities undertaken by the Company.
 
 There has been no Foreign Exchange inflow or outflow during the year
 under review.
 
 FUTURE PROSPECTS :
 
 Due to the depression in NBFC Industry and the Political instability,
 the future prospects of the NBFC Industry seem to be uncertain.  Still
 the Directors look forward for the favorable policies of the Government
 and the better growth of NBFC Industry.