The beginning of 1998 saw the installation of a new Govt. in India.
 The Political coalition represented the diversity of India and the
 differing aspirations of various segments of Indian society.  Given the
 inherent political instability in the system, the reforms process and
 the boost to Indian economy could not take place as was anticipated.
 However, despite a slow down, Indian economy continued to witness
 growth of 5% for the 5th year in succession.
 
 The Global economic scenario presented a multi-hued spectrum with the
 East Asian economy struggling to recover and the US power in the world
 economic growth.
 
 Your Company, given the changes taking place in the environment all
 around us, went through a significant process of transformation.  The
 seeds for this were sown by both the JV Partners, ModiCorp & GBC,
 confirming their active involvement in Direction & Management of the
 Company.
 
 To start with, a new Management headed by Sutendra Kumar, an able &
 experienced professional has been put in charge of the Operations and
 to bring around the desired transformation.  Both the partners also
 infused additional funds in equal proportion as advance towards equity
 share capital.
 
 With two key resources of a motivated & professional Management team
 and the financial resources in place, we can now move forward to meet
 our objectives of creating Shareholder Value.  The focus of the
 Management team is to maximise Customer Satisfaction, increase Revenue,
 Increase Market Reach and penetration and maximise Shareholder Value.
 
 For achieving these the Company carried out an extensive review of the
 market needs, and rationalized its products range by incorporating a
 range of new products from GBC which are top of the line products,
 launched only recently around the world.  These products will provide
 high quality solutions for our customers' needs.  In addition, the
 Company is venturing into new range of business such as electronic data
 projectors, copy printers, commercial laminators etc.  The Company has
 had an enthusiastic response from a large number of dealers all over
 the country.  By the end of the year the company had over 70 active
 dealers, covering the entire geographical spread of the country.  The
 company has geared up its sales and distribution system to realize the
 tremendous untapped potential in its line of business.
 
 To ensure rapid growth in the next millennium, your Company has opted to
 settle all pending past disputes with the Income Tax department under
 the Kar Vivad Samadhan Scheme, 1998.  In addition the Company has
 reviewed its debtors and inventory in consultation with the auditors,
 and has written off those items which were considered doubtful.  The
 company has also strengthened its Operating systems and Management
 Processes across all functions including Marketing to increase its
 efficiency and productivity.  Enterprise Resource Planning (ERP) is one
 such system which will help in planning, monitoring, and controlling
 our sales, production, inventory and financial operations.  With the
 objectives of cost saving, increasing productivity and efficiency, the
 Company has consolidated its activities of Head Office and Plant to a
 new facility in Noida.  It is hoped that the Company would come out
 much stronger as a result of those actions.
 
 Underlying it all is our essential commitment to achieve substantial
 improvement in revenue growth and profitability.
 
 In the end, I would like to take this opportunity to extend my
 gratitude to all my colleagues for their whole hearted support; to our
 extended family of vendors, suppliers and our dealers with whom we have
 worked very closely and forged strong bonds; to our collaborators for
 their invaluable support and guidance; to our shareholders for their
 trust in us; to our bankers for their extended support and most of all
 to our growing family of customers for their loyalty and trust in us.