The Directors hereby submit the Seventh Annual Report of the Company
 together with Audited Statement of Accounts for the year ended on 31st
 March, 2000.
 
 OPERATING RESULTS                                      (Rs. in Lacs)
 
                                              1999-2000     1998-1999
 
 Turnover & Other Income                         397.74        281.88
 
 Net Profit  before Dep.                           2.59      (430.44)
 
 Depreciation                                      2.82          2.82
 
 Net profit before taxation                     (00.23)      (433.47)
 
 Net profit after taxation                      (00.23)      (433.47)
 
 Profit for the previous year
 brought forward                               (149.09)        284.38
 
 Profit carried to Balance Sheet               (149.32)      (149.09)
 
 DIVIDEND
 
 In the absence of profit, the Directors regret their inability to
 propose any dividend.
 
 CURRENT YEAR PERFORMANCES AND PROSPECTS
 
 During the year under review the company could export goods worth
 Rs.397.74 Lacs as against Rs.281.88 Lacs in the previous year.  It has
 incurred net loss of Rs.0.23 Lacs as against net loss 433.47 Lacs in
 the previous year.  The loss incurred by the Company was primarily due
 to heavy administrative loss and cost of production.
 
 As intimated to you, in our last years directors report the company's
 rehabilitation program before its banker could not get through, it has
 resulted in heavy losses and rather, it can be said that the company is
 on the verge of closure.
 
 PARTICULARS OF EMPLOYEES
 
 Information required as per section 217(2A) of the Companies Act, 1956
 read with companies (Particulars of Employees) Rule 1975 forming part
 of this report for the year ended 31st March, 2000 is NIL.
 
 PUBLIC DEPOSITS
 
 The Company has not accepted any public deposits during the year or in
 earlier year.
 
 DIRECTORS
 
 In accordance with the requirements of the Companies Act, 1956 and the
 Article of Association of your company, Shri Prakash Gupta & Shri
 Swadesh Mishra will retire by rotation & being eligible, offer
 themselves for re-appointment.
 
 AUDITORS
 
 Kiran Ravi & Associates, Chartered Accountants, Bikaner, the company's
 auditors retire at the conclusion of the ensuing Annual General
 Meeting.  They have further confirmed their eligibility under section
 224(1B) of the Companies Act, 1956.
 
 AUDITOR'S REPORT
 
 The notes on accounts appearing in schedule 18 and refer to in the
 Auditor's Report are self explanatory.  As regard the qualification as
 contained in the report, the Directors wish to state as follows :-
 
 1. Regarding Book Debts - Note No.3
 
 The company has been advised that no provision for bad debts can be
 made in the books of Accounts of the company unless until it has
 necessary permission from Reserve Bank of India.
 
 3. Regarding secured loans from the banks and financial institutions -
 Note No.4
 
 It is also expected that once rehabilitation package of the company is
 accepted by the bank, the company will get substantial relief in the
 interest/penal interest charged by the institution.
 
 3. Audited Statement of Accounts of trading office - Note No.5
 
 The directors are seriously pursuing the matter and it is expected that
 the statement of Accounts will be ready within this financial year.
 
 4. Regarding Bank Account - Note No. 7
 
 The company has sent various reminders to these banks for bank
 statements.  However, according to our information the balance appear
 in the balance sheets are more or less correct and these are not going
 to affect the trading result of the Company materially.
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION :
 
 The Company is not using any Plant & Machinery for manufacturing of
 Carpets.  With the result, no comment is required on conservation of
 energy and Technology Absorption.
 
 FOREIGN EXCHANGE EARNINGS & OUTGO
 
 Details of foreign exchange earnings and outgo are provided in the
 Annexure to this report.