The Directors present the Annual Report with the Audited Statements of
 Accounts alongwith Cash Flow Statement as per SEBI Guidelines for the
 year ended 31st March, 2000 on business and operations of the Company.
 
 FINANCIAL RESULTS :
 
                                          Current year     Previous year
                                                 ended             ended
                                      31st March, 2000  31st March, 1999
                                           Rs. in lacs       Rs. in lacs
 
 INCOME :
 
 1. Net Sales                             Nil             174.94
 
 2. Others income (Net)
    investment/Others                     Nil               0.08
 
                                                  Nil             175.00
 
 Profit/(Loss) before depreciation,
 interest & deferred expenditure w/off         (2.94)            (189.4)
 
 Less : 1) Interest                     81.73              49.31
 
 2) Deferred Expenditure                31.00              31.19
 
 3) Deferred Expenditure
    written off                         12.76               5.10
 
                                             (125.49)               85.6
 
 Profit/(Loss) before Tax                    (128.43)            (275.0)
 
 Income Tax                                       --                 --
 
 Profit /(Loss) after Tax                    (128.43)            (275.0)
 
                                             (128.43)            (275.0)
 
 Add : 1) Balance brought forward of
          previous year                      (814.23)            (539.2)
 
 Balance carried forward to B/Sheet          (942.66)            (814.2)
 
 OPERATIONS :
 
 There were to business operations during the year and the Manufacturing
 activity of the Company remained closed for the whole year.  The
 Company recorded a net loss of Rs. 128.43 lacs, mainly due to Interest
 & Depreciation cost.
 
 APPOINTMENT OF COURT RECEIVER :
 
 As already informed earlier ICICI Ltd., has filed a suit in the High
 Court at Mumbai, against the Company and the Court Receiver has been
 appointed by the high Court.  The Court Receiver has taken over the
 possession of the Company's factory including Plant & Machinery and
 Book debts.  The matter is pending before the Court.
 
 APPLICATION BEFORE THE BIFR :
 
 The Company had made an application to the Board for Industrial &
 Finance Reconstruction (BIFR), under Sick Industrial Companies (Special
 Provisions) Act, 1985, for declaring the Company as sick industry
 undertaking under Section 31(o) of the said act.  The Company's
 application has been registered with BIFR under No. 256/99 and the
 matter is pending before BIFR.
 
 INSURANCE :
 
 All the properties of the Company including Building, Plants and
 Machinery and Stocks have been adequately insured by ICICI (secured
 creditor of the Company).
 
 AUDITORS' REPORT :
 
 The notes to Accounts Nos. 2, 3(a), 3(b), 4, 5, 6 and 8 referred to by
 Auditors are self-explanatory and do not require further explanation or
 elucidation.
 
 APPOINTMENT OF AUDITORS :
 
 M/s. C.D. Pasad & Co., Chartered Accountants, the Statutory Auditors of
 the Company retire at the conclusion of the ensuing Annual General
 Meeting and are eligible for re-appointment. The Company has received
 the necessary Certificate under Section 224(1) of the Companies Act,
 1956 form them.
 
 Members are requested to consider their reappointment and fix their
 remuneration.
 
 PARTICULARS OF EMPLOYEES :
 
 During the year the Company has not employed any employee whose
 particulars are required to be disclosed in the Directors' Report
 pursuant to Section 217(2A) of the Companies Act, 1956.
 
 CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION ETC :
 
 Information in accordance with the provisions of Section 217(1) (e) of
 the Companies Act, 1956 read with the Companies (Disclosure of
 Particulars in the Report of the Board of Directors) Rules, 1988 is
 given in Annexure which forms part of this Report.
 
 Statement 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.
 
 A. CONSERVATION OF ENERGY :
 
 a) Energy conservation is an ongoing activity in the Company and energy
 consumption is closely monitored in each manufacturing unit in relation
 to a specific program for reduction laid down at the beginning of the
 year.
 
 b) Additional investment and proposals, if any being implemented for
 reduction of consumption of energy :
 
 1. The Company has set up an Economiser so that the flew gasses from
 boiler and thermic fluid heater are utilised to heat the effluent
 water.
 
 2. This heated effluent water is evaporated by utilising solar energy.
 
 c) The impact of measures at (a) and (b) above is that the Company has
 managed to reduce the loss of steam in the processing of Nickel
 Catalyst.
 
 d) Total Energy consumption and Energy consumption per unit the
 production is given in Form `A'.
 
 FORM A
 
 Form for disclosure of particulars with respect to conservation of
 energy.
 
 B. TECHNOLOGY ABSORPTION
 
 FORM B
 
 Research & Development : (R & D)
 
 1. Specific areas in which R & D carried out by the Company :
 
 a. Development of better process by controlling of various process
 parameters, changing the ingredients and additives by R & D to make
 better quality of Nickel Catalyst of Fatty Acid hydrogenation and for
 hydrogenation of non-edible oils.
 
 b. Provision of assistance to customers to develop better quality of
 their finished products.
 
 2. Benefit derived as a result of above R & D :
 
 Improved derived as a result of above R & D :
 
 Improved product quality and customer satisfaction & higher sales
 realisation.
 
 3. Future plan of action : Not Applicable.
 
 Technology Absorption & Adoption and Innovations : NIL
 
 C. FOREIGN EXCHANGE :                    Current Year     Previous Year
                                                 ended             ended
                                      31st March, 2000  31st March, 1999
                                           Rs. in lacs       Rs. in lacs
 
 1. Earnings                                       Nil              4.92
 
 2. Outgo :
 
 a. Raw Materials                                  Nil               Nil
 
 b. Foreign Travelling                             Nil               Nil
 
 c. Plant & Machinery                              Nil               Nil
 
 d. Laboratory Expenses                            Nil               Nil
 
 e. Stores & Spares                                Nil               Nil