Your Directors present their SIXTEENTH ANNUAL REPORT together with the
 Audited Statements of Accounts of the Company for the year ended 31st
 March, 2001.
 
 FINANCIAL RESULTS:
 
                                                   Year ended
                                              31/03/2001     31/03/2000
                                              Rs. in lacs Rs. in lacs
 
 Deficit                                       4.06                3.54
 
 Add: Depreciation                             2.95                3.19
 
 Deficit for the year                          7.01                6.73
 
 Add: Previous Years deficit
               brought forward               388.33              381.60
 
 Total deficit carried forward               395.34              388.33
 
 OPERATIONS:
 
 During the year under review, the operation of the Company remained
 suspended as explained in your Directors earlier years reports.
 
 In spite of that, the Directors finance to the Company as of date as
 interest free unsecured loan stands at Rs.172.72 Lacs.  This clearly
 indicates the commitment of the management.
 
 The loss during the year was Rs.7.01 Lacs.
 
 DIRECTORATE:
 
 Shri Rashesh B. Shah retires by rotation at the ensuing Annual General
 Meeting. Me being eligible offers himself for re-appointment.
 
 REQUIREMENT UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956 :
 
 The Company had no employees covered under Section
 217(2A) of the Companies Act, 1956.
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 As required under Section 217{2AA) of the Companies Act, 1956 your
 Directors confirm:
 
 (i) that in the preparation of the annual accounts, the applicable
 accounting standards have been followed;
 
 (ii) that the Directors have selected such accounting policies and
 applied them consistently and made judgements and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year ended 31st
 March, 2001 and of the loss of the Company for that year;
 
 (iii) that the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956, for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) that the Directors have prepared the annual accounts on a going
 concern basis
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Information pursuant to Section 217(1)(e) of the Companies Act, 1956,
 read with Companies (Disclosure of particulars in the Report of the
 Board of Directors) Rules, 1988, forming a part of this report is
 annexed.
 
 AUDITORS:
 
 The appointment of the present Auditors M/s C.C. Chokshi & Co., ceases
 on the day of the ensuing Annual General Meeting and they are eligible
 for re-appointment.
 
 INSURANCE:
 
 The properties of the Company have been adequately insured.
 
 APPRECIATION:
 
 Your Directors wish to place on record their appreciation to the
 contribution made by the employees.
 
 ANNEXURE TO DIRECTORS REPORT
 
 Statement containing particulars pursuant to the Companies (Disclosure
 of particulars in the Report of the Board o Directors) Rules, 1988.
 
 A. CONSERVATION OF ENERGY:
 
 (a) Energy Conservation measures taken               : NONE
 
 (b) Additional improvements and proposals, if any, : NONE
 being implemented for reduction of consumption
 of energy.
 
 (c) Impact to the measures at (a) and (b) above for: NOT APPLICABLE
 reduction of energy consumption and consequent
 impact on the cost of production of goods.
 
 (d) Total energy consumption and energy              : REFER FORMA
 consumption per unit of production as per
 Form-A of the Annexure in respect of specified
 industries.
 
                                    Current Year        Previous Year
 
 (A) Power and Fuel Consumption
 
 1.  Electricity
 
 (a) Purchased units (kwh)               -                       -
 
 Total Amount (Rs.)                33,460                 33,497
 
 Rate per Unit (Rs.)                 -                       -
 
 (b) Own Generation
 
 (1) Through Diesel Generator units (Ltr.) -                      -
 
 Units per litre of Diesel                -                       -
 
 Cost per unit (Rs.)                      -                       -
 
 (2) Through Steam Turbine/
 
 Generator Units                                   NOT APPLICABLE
 
 Units per litre of Fuel Oil/Gas
 
 Cost per unit                             -                      - 
 
 2.  Coal (Specify Quantity and where used)
 
 Quantity (Tonnes)
 
 Total Cost                                         NOT APPLICABLE
 
 Average Rate                            -                        -
 
 3.  Furnace Oil 
 
 Quantity (Litres)                        -                       -
 
 Total Amount (Rs.)                       -                       -
 
 Average Rate (Rs.)                       -                       -
 
 4.  Others/internal Generations
 
 Quantity                                                  
 
 Total Cost                                           NOT APPLICABLE
 
 Rate per Unit 
 
 (B) Consumption per unit of production
 
                                         Electricity
 Product                           Current           Previous
                                      Year               Year
 
 Alumina Bricks                       Nil                 Nil
 
           Furnace Oil                         Coal
      Current      Previous           Current      Previous
      Year            Year              Year            Year
 
      Nil             Nil                 Not Applicable
 
 FORM `B
 
 B.  Disclosure of particulars with respect to Absorption, Research and
 Development.
 
 1.  Specific areas in which R & D carried out by the Company.
 
 2.  Benefit derived as a result of the above R & D
 
 3.  Future plan of action
 
 4.  Expenditure on R & D
 
 (a) Capital
 
 (b) Recurring
 
 (c) Total
 
 (d) Total R & D expenditure as a percentage of total turnover         
 
 GUJARAT REFRACTORIES LIMITED
 
 Technology Absorption, Adaptation and Innovation:
 
 1.  Efforts in brief made towards technology       NOT APPLICABLE 
 absorption, adaptation and innovation
 
 2.  Benefit derived as a result of the above
 efforts e.g. product improvement, cost            NOT APPLICABLE
 reduction, product development,
 import substitution etc.
 
 3.  In case of imported technology {imported during the last 5 years
 reckoned from the beginning of the financial year) following
 information may be furnished
 
 (a) Technology imported                            NIL
 
 (b) Year of import                                 NOT APPLICABLE
 
 (c) Has Technology been fully absorbed             NOT APPLICABLE
 
 (d) If not fully absorbed, areas where             NOT APPLICABLE
 this has not taken place, reasons
 
 thereof and future plans of action
 
 (C) FOREIGN EXCHANGE EARNINGS AND OUTGO            NIL
 
                                       For and on behalf of the Board
 
 Place: Mumbai                                   KIRTILAL K. DOSHI
 Date: 13th August, 2001.                                 Chairman