The Directors are pleased to present their Tenth Annual Report 
 together with the Audited Accounts of the Company for the year ended 
 31st March, 1996.
 
 1) FINANCIAL RESULTS :
 
 The Financial Results of the Company for the year ended 31st March, 
 1996 are summarised as below:
 
                                                        (Rs.in lacs)
 
                                        Year Ended        Year Ended
                                        31/03/1996        31/03/1995
 
 Income                                   1,486.13          1,478.77
 
 Profit before depreciation               1,210.19          1,298.54
 
 Depreciation for the year                  703.98            682.83
 
 Profit after depreciation                  506.21            615.71
 
 Provision for tax                            5.50              8.73
 
 Profit after tax                           500.71            606.98
 
 Balance brought forward                    232.90             85.92
 
 Profit available for appropriation         733.61            692.90
 
 Transferred to general reserve             100.00            100.00
 
 Proposed Dividend                           87.82             60.00
 
 Balance carried to balance sheet           545.79            532.90
 
 
 2) OPERATIONS :
 
 The financial services industry has passed through a very critical and 
 bad phase because of supressed and subdued capital market conditions, 
 but despite these adverse conditions your company could perform 
 reasonably well and have earned a profit of Rs.500.71 lacs during the 
 year. The total income earned by the company for the year was 
 Rs.1486.13 lacs as against Rs.1478.77 lacs in the previous year, which 
 include income from Leasing, Hire Purchase, Investment Banking, 
 Corporate Finance and Syndication of various corporate services. At 
 the fag end of the year, the company also received registration as 
 Category-I Merchant Bankers from SEBI. Your Company will be able to 
 expand this activity fully in the coming years. The Company has also 
 launched Public Deposit Scheme and is hopeful of getting good 
 response.
 
 3) DIVIDEND:
 
 Your Directors recommend Dividend of Rs.2/- per equity share of 
 Rs.10/- (previous year Rs. 2/- per share) and Rs.15.00 per Preference 
 Share of Rs.100/- on pro-rata basis, subject to deduction of tax at 
 source and approval by the Shareholders. This will result in a payout 
 of Rs.87.82 lacs.
 
 4) FUTURE PROSPECTS:
 
 The Company proposes to concentrate mainly on fund based activities 
 like Leasing & Hire Purchase, discounting of Bills etc and non-fund 
 based activities like Merchant Banking, Stock Broking, Syndication of 
 various credit facilities, money changing etc.
 
 a) Leasing & Hire Purchase:
 
 As money market situation is very tight and most of the Banks have got 
 resources constraint, Non-Banking Finance Companies can play a vital 
 role in bridging the gap of fund scarcity and can earn high rate of 
 return by extending the credits to corporates by way of leasing, hire 
 purchase etc. Still the Company has kept a very modest target of 
 leasing and hire purchase to the extent of Rs.25 Crores. The Company 
 also proposes to do syndication for leasing business for cash surplus 
 corporates, who are doing leasing for tax shelter purposes.
 
 b) Corporate Finance:
 
 The Company proposes to deal in Bill Discounting, Inter Corporate 
 Deposits and Credit against shares. This activity has got good scope 
 and the Company is expected to earn substantial income in this 
 segment.
 
 c) Investment Banking :
 
 The Company has got strong portfolio of around Rs.1300 lacs in the 
 shares of various companies. Because of its prudent and timely 
 decisions, the company is able to earn Rs.260 lacs even in such an 
 adverse capital market conditions. The Company expects improvement in 
 the Capital Market conditions and would like to enter into the areas 
 of Portfolio Management Services.
 
 d) Merchant Banking:
 
 The Company has received its registration as a Category-I Merchant 
 Bankers from SEBI in February this year. The Company wants to 
 concentrate fully in the activities of Merchant Banking like issue 
 management, amalgamation and take over, underwriting, placement of 
 shares and debentures, syndication of loan and other corporate 
 advisory services. As the Company expects that the conditions of 
 capital market would improve, it would further help the business 
 prospects of the company.
 
 e) Stock Broking:
 
 As per the rules and regulations of SEBI, fund based activities cannot 
 be carried out along with broking business. Hence, the company has 
 formed a subsidiary company named CHEMOX STOCK BROKING LIMITED to do 
 primary and secondary market operations including marketing of initial 
 public offerings and underwriting of the issues. The Company is 
 offering full fledged broking services. The Company has already 
 purchased BSE Membership Card and applied for its transfer. The 
 Company's application for membership of NSE is also pending. During 
 the year the company will be able to start broking operations in full 
 swing.
 
 5) DIRECTORS:
 
 Mr.S.N.Agarwal, Mr.Nana Chudasama and Mr.Pramod Jain retire by 
 rotation at the forthcoming Annual General Meeting and being eligible 
 offer themselves for reappointment.
 
 6) DEPOSITS:
 
 The Company had, during the year, invited and accepted Public Deposit 
 to the tune of Rs.5.33 lacs as on 31st March, 1996. There were no 
 overdue deposits.
 
 7) AUDITORS' REPORT:
 
 The Notes referred to by the Auditors in their Report are 
 self-explanatory and do not require any further explanation.
 
 8) AUDITORS:
 
 M/s. M.G.Bhandari & Company, Chartered Accountants, the Auditors of 
 the Company, retire at the end of the forthcoming Annual General 
 Meeting and being eligible offer themselves for reappointment.
 
 9) CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION:
 
 The particulars under the Companies (disclosure of particulars in the 
 Report of Board of Directors) Rules, 1988, on conservation of energy 
 and technology absorption are not applicable to the Company.
 
 10) FOREIGN EXCHANGE :
 
 During the year under review there has been no foreign exchange income 
 or outflow.
 
 11) PARTICULARS OF EMPLOYEES:
 
 The particulars of employees as per the requirements under Section 
 217(2A) of the Companies Act, 1956, read with the Companies 
 (particulars of employees) Rules 1975 are given in Annexure I, which 
 will be sent to members at their request.
 
 12) ACKNOWLEDGEMENTS:
 
 The Company gratefully acknowledge the co-operation and support 
 extended by bankers, shareholders and customers of the Company and 
 place on record its appreciation for the active support and assistance 
 of the employees for the performance.