The Directors present their 48th Annual Report with the statements of
 the audited accounts for the year ended 31st March, 2008.
 
 1.  Financial Results                        2007-08    2006-07
                                                 (Rs, Lacs)
 
 Revenue                                      1356.60     278.80
 
 Operating Loss before Interest/Depreciation   165.50     109.83
 
 Interest                                        0.82          0
 
 Depreciation 10.31 9.92 Tax adjustment in 
 respect of earlier years
 
 Net Loss for the year                         176.63     119.75
 
 Net Loss brought forward                      402.85     283.10
 
 Net Loss carried to Balance Sheet             579.48     402.85
 
 2.  Dividend
 
 Directors are unable to declare dividend in view of the losses.
 
 3.  Performance ISO Certifiaction
 
 The Bureau Veritas has issued the Company the ISO 9001 -2000
 certification. This certification would enable the Company to supply
 value added products to customers in such industries as auto
 components, automobiles, white goods and Defence.
 
 Implementation of BIFR order
 
 The company has complied with the BIFR Order as contained in the
 approved Rehabilitation Scheme and is implementing the same.
 
 Markets
 
 The first year after the BIFR Order has been rather eventfal. For the
 first six months the raw material prices were stable and we had managed
 to reach the production of 500 MT per month. Thereafter the prices for
 our raw material viz. Hot Rolled Coils (HRC) kept on increasing every
 month. This has created tremendous pressure on the company in terms of
 working capital and also achieving higher and higher sales prices.
 Despite these and other problems the contribution has increased though
 the production has come down.
 
 The production has come down due to the non availability of raw
 material.
 
 Fund Raising
 
 The company is exploring various avenues of fund raising. As the price
 of HRC is stabilizing at higher level, the Company is exploring
 strategic tie ups for the supply of raw materials and is further
 looking to restructure its business.
 
 Outlook
 
 Though the outlook looks uncertain due to the increase in prices of
 steel, power and transportation, we are confident that due to the long
 standing relations with customers and quality of products of the
 company we would be in a position to ride through the uncertain times.
 
 4.  DirectorsResponsibility Statement
 
 In terms of Section 217(2A A) of the Companies Act, 1956, the Directors
 state that;
 
 (a) in the preparation of annual accounts, the applicable accounting
 standards have been followed and that there has been no material
 departure:
 
 (b) the Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of the
 affairs of the Company as at 31st March, 2008 and the losses for the
 year ended on that date;
 
 (c) Directors have taken proper and sufficient care for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 as amended from time to time; (d) Directors have
 taken proper and sufficient care, in consonance with the financial
 situation of the Company, for safeguarding the assets of the Company
 and for preventing and detecting fraud and other irregularities; and
 (e) Directors have prepared the accounts on a going concern basis.
 
 6.  Directors
 
 Mr. Dhanesh J. Mehta and Mr. Rajnesh I. Jain retire by rotation at the
 forth coming Annual General Meeting and being eligible, offer
 themselves for reappointment.
 
 With a view to further strengthen the management Mr. M. G. Mohan Kumar
 was invited to join the Board as an Additional Director on 30th January
 2008. Mr. M. G. Mohan Kumar is a Financial Advisor and his experience
 would be of immense help in progress of the Company. The Company has
 received the necessary notice from a shareholder proposing his
 reappointment.
 
 7.  Auditors Report
 
 The Companys position on the Auditors qualifications has been stated
 in the notes attached to the accounts. Accounts have been prepared on a
 going concern basis in view of the scheme of rehabilitation submitted
 before BIFR.
 
 8.  Listing on the Stock Exchange, Mumbai
 
 The company is now in the process of regularizing all listing
 compliances so as to enable Bombay Stock Exchange Limited permit
 trading in your Companys shares.
 
 9.  Secretarial Compliance Certificate
 
 The Company has obtained the Compliance Certificate from the Practicing
 Company Secretary pursuant to Section 383A of the Companies Act, 1956.
 A copy of the said certificate is annexed.
 
 10.  Particulars of Employees
 
 There was no employee in respect of whom information is required to be
 disclosed as per the provisions of Section 217(2A) of the Companies Act
 1956, as amended.
 
 11.  Auditors
 
 M/s. Borkar & Mazumdar, Chartered Accountants, retires at the forth
 coming Annual General Meeting.  Members are requested to appoint the
 Auditors and fix their remuneration.
 
 12.  Appreciation
 
 The Board also wishes to place their deep appreciation for the patience
 shown and efforts put in by employees despite the poor financial
 situation of the Company.
 
 22nd August, 2008                             By Order of the Board
 
                                                     Shilpin J.Patel
 A-6 MIDC Industrial Area, Chikalthana       Chairman of the meeting
 Aurangabad 431 210