Summary of Financial Results -
                                                          (Rs. in Lacs)
 
                             Previous Year Ended     Current Year Ended
                                      31.03.1999             31.03.2000
 
 Total Income                            3569.22                1543.20   
 
 Total Expenditure                       2253.79                1564.05  
 
 Interest                                 253.48                3109.40
 
 Gross Profit after Interest
 
 But before Depreciation                 1061.95              (3130.25)    
 
 Depreciation                            1466.17                1264.45
 
 Provision For Taxation                      Nil                    Nil   
 
 Net Profit/(Loss)                      (404.22)              (4394.70)
 
 
 
 The Company was awarded a major contract from Maharashtra State
 Electricity Board for manufacture, installation and commissioning of
 L.T. Load Management System on 27th March, 1997. The same was partly
 executed by the company upto December 1998.
 
 The contract is now in dispute and company has invoked Arbitration
 Clause. The company has been advised that, it has a STRONG CASE on
 Merits and in Law.
 
 Due to the above circumstances, company's Cash Flow planning collapsed
 and has affected payments of interest and principle to Financial
 Institutions, Banks and other Financers and also loss of substantial
 business opportunities.
 
 The Directors of the company have abstained from claiming any Salary or
 Bonus or Dividend due to this reason during the financial year as a
 token of their commitment.
 
 DIVIDEND
 
 No Dividend is recommended in view of losses suffered by the Company
 during the financial year.
 
 INCOME-TAX PROVISION
 
 In view of losses during the financial year, Company has not made any
 provision for Income Tax.
 
 HUMAN RELATIONS IN THE COMPANY
 
 The Company sincerely acknowledges the outstanding contribution from
 all its members. Various schemes of mutual benefit have been initiated
 and implemented during the year.
 
 DIRECTORS -
 
 (A) Mr. Kamlesh Morarji and Mr. M.G. Varade retire by rotation and
 being eligible offer themselves for re-appointment.
 
 (B) Mr. S. Ramlingam is appointed as Nominee Director of Industrial
 Investment Bank of India in place of Mr. D.P. Chakraborty w.e.f. 24th
 November 2000 by the said Financial Institution.
 
 QUALIFICATIONS IN AUDITORS REPORT
 
 1. Now the LTLMS Project is no more under implementation the amount of
 Rs. 24.98 Crores, on account of interest paid, has been debited to
 Profit and Loss Account and unpaid lease rent and hire purchase rent of
 Rs.21.66 Crores has been Capitalised,
 
 2. Since the matter is subjudice, the accumulated Capitalised balance
 of Rs.123.71 Crores has not been considered while preparing current
 year's Profit and Loss Account
 
 REPORT UNDER SECTION 217 (2A)
 
 Particulars of employees as required under section 217 (2A) of the
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules, 1975 are annexed.
 
 REPORT UNDER SECTION 217 (1) (e)
 
 Information pursuant to 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 to the
 report.
 
 AUDITORS
 
 The Auditors, M/s. S.J. Mene & Co. Retire at the conclusion of this
 Annual General Meeting and being eligible, offer themselves for
 re-appointment.
 
 APPRECIATION
 
 The Directors wish to place on record their appreciation for the
 valuable co-operation received by the Company from its Bankers and
 Financial Institutions.
 
 Additional information as required under the Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rule, 1988.
 
 A. Conservation of Energy :
 
 The Company is not an energy intensive unit and therefore the costs of
 energy do not form a substantial part of the manufacturing costs. Every
 care is taken to avoid the wastage of electricity.
 
 B. Technology Absorption :
 
 1) Research and Development
 
 (a) Development of Amorphous Magnetic Materials.
 
 (b) Optimization of Plastic Parameters.
 
 2) Benefits derived as a result of this R & D -
 
 (a) Cost Savings
 
 (b) Lesser toxic waste
 
 (c) Higher reliability of products
 
 3) Future Plans
 
 The focus for the next year is on utilization of existing technologies
 and expansion of the product range.
 
 4) Expenditure.on R & D
 
 The expenditure on R&D during the financial year 1999-2000 was Rs,
 1,17,530/-
 
 Technology absorption, adaptation and innovation :
 
 In brief, the efforts made towards technology absorption, adaptation
 and innovation have been :
 
 (a) Improvement in product design
 
 (b) Improvement in processes
 
 (c) Introduction of advanced quality monitoring schemes
 
 C. Foreign Exchange Earning & Outgo :
 
 Total Foreign Exchange Earnings       - Rs. 44.77 lacs
 
 Total Foreign Exchange Outgo          - Rs. 85.10 lacs
 
 Raw Material Import                   - Rs. 85.10 lacs
 
 Machinery Import                      - NIL