The Directors present their 25th Annual Report for the year ended 31st
 March, 1999.
 
 
 FINANCIAL RESULTS                        Current Year    Previous Year
                                         (Rs. in Lacs)    (Rs. in Lacs)
 
 Sales & other income                             2.54             7.33
 
 Loss Before Depreciation & Taxation          (277.56)         (149.55)
 
 Depreciation                                    13.78            14.14
 
 Loss for the year                            (291.34)         (163.69)
 
 Short Provision                                (1.09)             0.47
 
 Balance brought forward                     (1071.11)         (903.95)
 
 Loss                                        (1361.36)        (1071.11)
 
 Deduct General Reserve as per Contra           137.75           137.75
 
 Balance Carried to Balance Sheet            (1223.61)         (933.36)
 
 
 Report of auditors to the members and notes to accounts are self
 explanatory.
 
 DIVIDEND
 
 In view of the loss, the Directors do not recommend any Dividend.
 
 OPERATIONS
 
 There is no improvement in the situation at Mysore.
 
 FIXED DEPOSITS
 
 The Company has not accepted nor renewed any fixed deposits.  All
 deposits matured during the year were repaid, except a sum of Rs.
 59.000/- relating to 10 deposits unclaimed as on 31st March, 1999.
 
 REFERENCE TO BIFR
 
 As reported last year, the Company has been registered with BIFR.  The
 Operating Agency ICICI, on the directions of BIFR, appointed an
 approved Chartered Engineer to evaluate the assets.  The Chartered
 Engineer has since submitted their valuation Report to ICICI.  Based on
 this, ICICI is required to fix the reserve price for the assets of the
 Company.
 
 BIFR Bench, in their order dated January 29, 1999 formed an opinion
 under Section 20(1) of SICA, that the Company should be wound up.
 Based on this order, all the papers have been sent to the High Court of
 Bombay for further action under the law.
 
 ICICI Limited, the Operating Agency, filed a Civil Suit in the High
 Court of Bombay in April, 1999 for appointment of the Receiver to take
 physical possession of the Assets in order to safeguard their
 interests.  High Court of Bombay vide their order dated July 8, 1999
 appointed a Receiver to take physical possession of the Assets.
 Receiver's office is in the process of taking physical possession of
 the Assets of the Company.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
 EXCHANGE EARNINGS AND OUTGO.
 
 As there were no operations during the year, information in accordance
 with Section 217(1)(c) of The Companies Act, 1956 read with Companies
 (Disclosure of Particular in The Report of Board of Directors) Rules,
 1988 is not included.
 
 DIRECTOR
 
 Mr. M. C. Katakia, Director, has resigned from the Board of Directors
 on 30th September, 1999.  The Board places on record Lits Appreciation
 for the valuable services rendered by Mr. M.  C. Katakia as Director.
 
 EMPLOYEES
 
 There are no employees of the Company whose particulars are required to
 be reported under Section 217(2A) of The Companies Act, 1956 and Rules
 thereunder.
 
 AUDITORS
 
 You are requested to appoint Auditors for the period commencing from
 the conclusion of the ensuing Annual General Meeting till the
 conclusion of the next Annual General Meeting.
 
 The Notes referred to in the Auditor's Report are self explanatory.