The Directors have pleasure in presenting the Eighth Annual Report and Audited Accounts of the Company for the
year ended 31st March, 1998.
 
 FINANCIAL RESULTS
 
 The financial Results of the Company for the year ended 31st March, 1998 are as under :
                                                         (Rupees in Lacs)
                                          Year ended on     Year ended on
                                             31.03.1998        31.03.1997
 
 SALES & OTHER INCOME                           1058.37           1372.98
 
 Loss before interest and Depreciation         (206.20)          (245.70)
 
 Add : Interest                                  144.86            108.12
       Depreciation                              187.61            214.40
       Loss before Taxation                    (538.67)          (568.22)
       Less : Provision for taxation                  -                 -
       Loss after tax                          (538.67)          (568.22)
       Less/Add : Depreciation relating
       to earlier years written back/off           0.50            160.50
 
 Add/Less : Balance brought forward
 from previous year                            (593.57)            135.15
 
 Loss carried to Balance Sheet                (1131.74)          (593.57)
 
 COMPARISION WITH PROJECTIONS MADE IN THE LETTER OF OFFER
 
 (In terms of clause 43 of the Listing Agreement)
 
 The company has given following profitability projections in the Letter of Offer dated 07.01.1995, issued to
the Shareholders of the Company. 
 
 Projections and Actual for the year 1997-98
 
                                          (Rs. in Lacs)
 Particulars                     Projected       Actual
 
 A. Sales                          9720.00      1044.78
 B. Profit/(Loss) after tax         939.00     (538.67)
 
                                 (1131.74)     (593.57)
 
 YEAR IN RETROSPECT
 
 During this year the company has made a Sales and Other Income of Rs. 1058.37 lacs as against the amount of
1372.98 lacs during the previous year.  The Company could not achieve the targeted results and had incurred a
cash loss of Rs. 351.06 lacs due to slow down in construction activities, adverse market condition, increase
in input costs and shortage of working capital.
 
 EROSION OF NETWORTH
 
 As explained earlier, the performance of the Company for the year ended 31.3.98 has not been satisfactory. 
The company has incurred a net loss of Rs. 538.67 lacs for the year 1997-98, together with the brought
forward net loss of Rs. 593.57 from the year 1996-97 resulted in total cumulative loss of Rs. 1131.74 lacs,
thereby leading to erosion of entire net worth of the company.  The company became a Sick Industrial Company
within the meaning of Section 3(i)(o) of the Sick Industrial Company (Special Provisions) Act, 1985 based on
the audited accounts of the company for the year ended on 31.3.98.  The Board of Directors have decided to
make a reference with the Honourable Board for Industrial and Financial Reconstruction (BIFR) in terms of
Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.
 
 FIXED DEPOSITS
 
 The Company has not accepted any fixed deposits from the Public, and hence Provision of section 58(A) of the
Companies Act, 1956 are not applicable.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 Information Pursuant to section 217(e) of the Companies Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given in Annexure 1 of this Report.
 
 PARTICULARS OF EMPLOYEES
 
 No employee is required to be covered in the statement of particulars of the employees in terms of Section
217(2A) of the Companies Act, 1956.
 
 DIRECTOR
 
 Mrs. Lalita Jalan, Director retires by rotation and is eligible for reappointment.
 
 AUDITORS
 
 Messers K.K. Naria & Company, Chartered Accountants, Auditors of the Company retire and are eligible for
reappointment.
 
 AUDITOR'S REPORT
 
 The notes referred to by the Auditors in their Report are self explanatory and do not require further
explanation.
 
 ANNEXURE TO THE DIRECTORS' REPORT FOR THE YEAR ENDED 31.03.1998.
 
 Statement of Particulars under the Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988 to the extent applicable :
 
 A. CONSERVATION OF ENERGY
 
 Measures for energy conservation is taken up as part of ongoing programme.  Details of energy consumption as
per prescribed format is enclosed.
 
 B. TECHNOLOGY ABSORPTION
 
 Company have not yet measured by standards for technology absorption and adoption and motivation.
 
 C. FOREIGN EXCHANGE EARNINGS AND OUTGO
 
                                             1997-98       1996-97
                                               (Rs.)         (Rs.)
 a. Foreign Exchange used
 
 i. Import of Capital Goods                      Nil      DM 26250
 
 b. Foreign exchange earned                      Nil           Nil