We have pleasure in presenting the Annual General Meeting of the
 Company along with the audited statements of Accounts for the year
 ended 31st March, 2007.
 
 Financial Performance                          (Rs. in Lacs)
 
 Financial Results                          2006-07     2005-06
 
 Income from operations                       5.86      5057.69
 Financial Expenses                           1691        39.70
 Depreciation                               112.83      4330.18
 Net Loss After Tax                         983.71      6488.62
 
 Operations
 
 Owing to the acquisition of the assets by ARCIL under the
 Securitisation and Reconstruction of Financial Assets and Enforcement
 of Security Interest Act 2002 and handing over the assets to other
 entities there was no business operation in respect of Company.
 
 Honble High Court of Gujarat vide its order dated 1st March 2007 has
 sanctioned the scheme of de-merger under which the assets of Sachana
 Undertaking has been transferred to Ninna Limited and as mentioned
 earlier the assets of Pharma Division of Company located at Rajpur arc
 in possession of ARCIL and it has appointed a healthcare company as
 custodian cum agent to take care of these assets.
 
 Dividend
 
 In view of the losses your Board is unable to recommend any dividend on
 equity shares.
 
 Deposits
 
 The company has not accepted any Deposits from the public within the
 meaning of Section 58 A of the Companies Act, 1956 and the Companies
 (Acceptance of Deposits) Rules, 1975 during the year. In respect of
 deposits of earlier years company is in the process of settling the
 same.
 
 Directors
 
 At the ensuing Annual General Meeting Mr. Biren R Shah retires by
 rotation and being eligible for offers himself for reappointment.
 During the year under review Mr. Vivek J Rawal was appointed as
 Additional Directors of the company and hold office till the conclusion
 of the annual general meeting.
 
 Directors Responsibility Statement
 
 Pursuant to the requirement under section 217 (2AA) of the Companies
 Act, 1956 , which requires company to give a Directors Responsibility
 Statement, your directors hereby confirm -
 
 Thai in preparation of annual accounts, the applicable accounting
 standards had been followed along with proper explanation relating to
 material departure.
 
 That Company has selected Mercantile accounting policies and applied
 them consistently and made judgements and estimates that arc 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 or
 loss of the company for that period.
 
 That the directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for the safeguarding the assets of the company
 and for preventing and detecting fraud and other irrcgulations.
 
 That the directors had prepared the Annual accounts on a going concern
 basis for the year ending on 31st March, 2007.
 
 Auditors
 
 The Auditors M/s. Padam Chand Jain & Associates, Chartered Accountants
 retire at the ensuing Annual General Meeting and offer themselves for
 reappointment. The Auditors have confirmed that if appointed their
 appointment would be within the limit stated in Section 224 of the
 Companies Act, 1956.
 
 Comment on Auditors Report
 
 The Auditors Report have mentioned that Company has not made provision
 of interest and that for sales tax liability. It has also pointed out
 regarding non compliance of Accounting standard 28 regarding impairment
 of Assets and provisions for Contingent liabilities among others.
 
 As the Shareholders arc aware that company had been going through
 difficult time which resulted into certain lapses on compliance front.
 Now with High Court having sanctioned the scheme and the same being
 implemented most of the compliance have been effected to and Company do
 not expect any adverse remark hereof from now.
 
 Particulars of Employees and Others
 
 The Company does not have any employee receiving remuneration of Rs.
 2,00,000/- per month or Rs. 24,00,000/- per annum and therefore no
 particulars are required to be furnished under Section 217 (2A) of the
 Companies Act, 1956
 
 Information on Energy Conservation, Technology Absorption and Foreign
 Exchange Earnings
 
 Particulars regarding conservation of energy, Technology up gradation,
 and Foreign Exchange Earnings and Outgo, pursuant to Companies
 (Disclosure of Particulars in the Report of the Board of Directors)
 Rules 1988 are not applicable to the Company during the period under
 review as no operations were carried out during the year.
 
 Appreciation
 
 The company places on record its deep appreciation tor all those who
 arc associated with the company and have continued their support
 towards the growth and stability of the company.
 
 Place: Ahmcdabad                           for and on behalf of the
 Date : 31st August. 2007                     Hoard of Directors
  
                                                        Sd/-
                                                     HIRKN SHAH
                                                      CHAIRMAN