The Directors present herewith the supplemental Fourteenth Annual
 Report together with the Audited Statements of Account for the
 Financial Year 1997-98 ended on 30th September, 1998.
 
 FINANCIAL RESULTS :
 
                                                           (Rs in Lacs)
 
                                           For the year   Previous Year
                                                1997-98         1996-97
                                            (12 Months)     (18 Months)
 
 Operating Profit (Before Int. 
 & Depreciation)                              (-) 15.69          163.25
 
 Less : Interest                                 102.48          112.18
 
 Profit before Depreciation                  (-) 118.17           51.07
 
 Less : Depreciation                              31.89           47.79
 
 Profit before Tax                           (-) 150.06            3.28
 
 Less : Provision for Tax                             -               -
 
 Profit after Tax                            (-) 150.06            3.28
 
 Add/(Less) : Previous year adjustments            7.98           11.13
 
                                             (-) 158.04           14.41
 
 Add : Balance brought forward from              155.62          141.21
 previous year
 
 Surplus available for Appropriation           (-) 2.42          155.62
 
 Appropriations :
 
 (1) Transfer to General Reserve                      -               -   
 
 (2) Proposed Dividend                                -               - 
 
 (3) Balance carried to Balance Sheet          (-) 2.42          155.62
 
                                              (-)  2.42          155.62
 
 
 DIVIDEND
 
 In absence of profits the Board of Directors express their inability to
 pay any dividend for the period under review.
 
 REVIEW OF OPERATIONS
 
 The operations of the Hotel for the period under review have
 drastically reduced due to a very low occupancy and also due to the
 fact that the Hotel was closed since 1st August, 1998 for major
 renovation and upgradation under the aegis of Radisson Hotels
 International Inc. The over all general economic recession has largely
 affected the Hotel Industry in particular, which has resulted into a
 very low occupancy during the year.  The Company hopes that the
 renovated hotel with the brand name of Radisson will achieve higher
 occupancy and better profitability because of Radisson's industry
 leading National and International reservation systems which is
 connected to 125 Countries World Wide to market and support its
 existing and new Asia/Pacific locations.
 
 DIRECTORS
 
 During the period under review IFCI has appointed Smt Sarla Chandwani
 as its nominee director in place of Shri V. K. Jain.  The Board of
 Directors welcomes Smt Sarla Chandwani and places on record its
 gratitude towards Shri V.K. Jain for his valuable services and support
 rendered during his tenure of Directorship with the Company.
 
 Shri Jashbhai U Patel and Shri Shreyans S Shah have resigned from the
 Board.  The Board of Directors wish to place their sincere gratitude
 for the guidance and advice received during the tenure of their
 Directorship with the Company.
 
 Shri M.R. Gami has been withdrawn from the Board of the Company as
 Nominee Director of GIIC.  The Board of Directors wish to place their
 sincere gratitude for the guidance and advice received during the
 tenure of his Directorship.
 
 ADJOURNED ANNUAL GENERAL MEETING
 
 The Board of Directors wish to inform you that the item relating to
 consideration and approval of the Annual Accounts for the year 1997-98
 was not taken up in the 14th Annual General Meeting which was held on
 30th March, 1999.  Hence it was decided to convene an Adjourned Annual
 General Meeting to take up the item relating to consideration and
 approval of accounts.
 
 Y2K COMPLIANCE (Y2K)
 
 The Company does not foresee any risk on account of year 2000
 compliance (Y2K) as the company has upgraded the computer facilities to
 meet with Y2K Compliance.