Your Directors present the Nineteenth Annual Report and the Audited
 Statement of Accounts of the Company for the financial year ended 31st
 March, 2005.
 
 Financial Results
 
                                                          (Rs. in lacs)
                                   For the                     For the
                                year ended                  year ended
                          31st March, 2005            31st March, 2004
 
 Gross Sales                     42,505.35                   35,300.78
 Less: Excise Duty                8,441.79                    7,713.58
 Net Sales                       34,063.56                   27,587.20
 Gross Profit before
 Interest,depreciation
 and write off                    1,831.64                    3.548.58
 Less: Interest
 Depreciation                     1,707.10                    2,868.92
 Miscellaneous
 Expenditure
 written off                             -                       13.58
 Net Profit for the year            124.54                      666.08
 
 Dividend
 
 Your Directors regret their inability to propose any dividend in view
 of the accumulated losses of the Company.
 
 Directors
 
 Shri V.N. Nadkarni, Director, retires by rotation at the ensuing Annual
 General Meeting and being eligible offers himself for reappointment.
 The Company has received the requisite Form DD-A from Shri Nadkarni,
 in terms of Companies (Disqualification of Directors under 274(1)(g) of
 the Companies Act, 1956) Rules, 2003, confirming his eligibility for
 such re-appointment. The Board recommends the re- appointment of Shri
 V.N. Nadkarni at the ensuing Annual General Meeting.
 
 Directors Responsibility Statement
 
 Pursuant to the requirement under Section 217(2AA) of the Companies
 Act, 1956 with respect to Directors Responsibility Statement, it is
 hereby confirmed that: (i) in the preparation of the annual accounts
 for the financial year ended 31st March, 2005, the applicable
 accounting standards have been followed;
 
 (ii) the Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that were 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 profit of
 the Company for the year under review;
 
 (ii) the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act 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.
 
 Fixed Deposits
 
 The Company has not accepted any deposit within the meaning of Section
 58A of the Companies Act, 1956 and the rules made thereunder.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earnings & Outgo
 
 Information in accordance with the provisions of Section 217(1)(e) 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 forming part of this report.
 
 Personnel
 
 None of the employees of the Company are in receipt of remuneration
 prescribed under Section 217 2(A) of the Companies Act, 1956, read with
 the Companies (Particulars of Employees) Rules, 1975.
 
 Auditors & Auditors Report
 
 The Statutory Auditors Messrs. Shah Baheti Chandak & Company, retire at
 the conclusion of the ensuing Annual General Meeting. The Company has
 received a consent letter from them to the effect that their
 appointment, if made, would be within the prescribed limit under
 Section 224 (1B) of the Companies Act. 1956 and also that they are not
 otherwise disqualified within the meaning of sub-section (3) and (4) of
 Section 226 of the Companies Act, 1956, for such appointment. The Notes
 to Accounts referred to in the Auditors Report are self-explanatory
 and, therefore, do not call for any further comments.
 
 Corporate Governance
 
 The Company has taken adequate steps to ensure that the conditions of
 Corporate Governance as stipulated under Clause 49 of the Listing
 Agreements of the Stock Exchanges are complied with. A separate section
 on Corporate Governance and a Certificate of the Auditors of the
 Company regarding compliance of conditions of Corporate Governance as
 stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges, form part of the Annual Report.
 
 Acknowledgements
 
 Your Directors place on record their appreciation of the assistance and
 support extended by all financial institutions, banks, government
 authorities, suppliers, service providers, customers and shareholders.
 Your Directors express their appreciation for the dedicated and sincere
 services rendered by all the employees of the Company.
 
 
 
 FORM - B
 
 Form for disclosure of particulars with respect to Technology
 Absorption
 
 1.  Research and Development:
 
 a.  The specific areas in which Research & Development was carried out
 by the Company are:-
 
 i.  Installation of Inter mingling jets
 
 ii.  Disposal of waste finish oil.
 
 iii.  Extension of existing product range of POY
 
 iv. Optimization of the process parameters for increasing productivity
 and better performance in spinning and texturing process.
 
 v. Changes to operating condition of the spin finish oil and designing
 of cooling coil system
 
 vi. Changes to the packing system for damage free transportation
 
 vii. Changes on spin packs to improve spinning performance.
 
 b.  Benefits derived from successfully completed Research & Development
 projects:
 
 i. Improvement in POY quality and run-ability at high speeds in
 downstream process.
 
 ii.  New products Range with value addition
 
 iii. Improvement in process stability and product performance
 
 iv.  Reduction in Packing Cost.
 
 v.  Reduction in breaks and improvement in Quality
 
 c.  Future Plan of Action:
 
 i.  Capacity enhancement in Value added products
 
 ii. Further de-bottlenecking of CP plant for enhancing the capacity to
 170 TPD from current level of 133 TPD
 
 iii.  Production of specialty flat yarns on draw winder.
 
 d.  Expenditure on Research and Development:
 
 R&D activities are carried out for development of cost effective
 additives / product development / Process development by concerned
 departments in collaboration with Reliance Technology Center. No
 separate accounts are kept since it is difficult to identify costs
 solely attributable to R&D activities.
 
 2.  Technology Absorption, Adaptation and Innovations:
 
 The Company has continuous interaction with the collaborators as well
 as equipment manufacturers on new developments.
 
 C) FOREIGN EXCHANGE EARNINGS & OUTGO
 
 (a) Activities relating to exports, initiatives to increase exports,
 development of new export markets fOor products and services and export
 plans : Not applicable.
 
 (b) Total Foreign Exchange used and earned.  i) Total foreign exchange
 earned                            :     Nil
 
 ii)    Total foreign exchange
 used                              :     Rs.677.86 lacs
 
 
                                         For and on behalf of the Board
 
                                                            I. F. Sheth
                                                               Chairman
 
 Mumbai,
 Date : 16th May, 2005