The Directors present the 19th Annual General Report on the affairs of
 the Company together with Audited accounts for the year-ended
 31.03.2004.
 
 COMPANY CEASED TO BE A GOING CONCERN:
 
 It was reported to you earlier that several Shareholders have not paid
 the balance of allotment money and the calls in arrears stood at
 Rs.92.40 lakhs and that therefore the company could not take delivery
 of the equipment by paying the balance amount to the machinery
 suppliers. Added to this the delay in execution of the project has
 resulted in escalation of the project cost to a total of Rs.831.02
 lakhs. It was also reported to you that because of non-payment of dues
 to the financial institutions the APSFC & APIDC have also seized the
 unit during September, 1997. It was also reported to you that your
 Directors efforts to raise additional funds did not fructify because of
 the seizure of the unit. Added to this APSFC auctioned all the assests
 seized for Rs.48.50 lakhs. The action resulted in a loss of
 Rs.2,94,70,548/-.lt has also become necessary to write off the
 pre-production expenses as unfructuous which would have been otherwise
 capitalized. Thus the sub-strata of the Company has gone and it ceased
 to be a going concern.  Consequential action to be taken under the
 provisions of the companies Act 1956 will be taken up during 2004-05.
 
 DEPOSITS:
 
 During the year under review the company has not accepted any deposits
 within the meaning of Sec.58 of the companys Act, 1956 read with
 companys (Acceptance of deposits Rules) 1975.
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 The Directors of your Company hereby report: 
 
 i) that in the preparation of Annual Accounts for the year ended 31s
 March, 2004, the applicable accounting standards have been followed
 along with the proper explanation relating to material departure:
 
 ii) that 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 affairs of the company at the end of the financial year ended 31
 March, 2004.
 
 iii) that the directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of Companies Act for safeguarding the assets of the company
 and for preventing and detecting fraud and other irregularities:
 
 DIRECTORS :
 
 We regret to report the sad demise of Mrs.D.Jyothirmayi, one of the
 promoter directors, Your directors place on record their appreciation
 of the services rendered by Mrs. D.Jyothirmayi during her tenure as
 director.
 
 Sri. A.K. Rao, Director, retires at this meeting by rotation. Being
 eligible he offers himself for re-appointment.
 
 Sri D.D.Jatkar, Director, retires at this meeting by rotation. Being
 eligible he offers himself for reappointment.
 
 PARTICULARS OF EMPLOYEES :
 
 There are no employees coming under the purview of sEc.271 (2A) of the
 Companys Act, 1956 read with companies (Particulars of employees)
 Rules whose particulars are required to be furnished.
 
 AUDITORS :
 
 You are required to appoint M/s J.S. Kameswara Rao & Co., as auditors
 for the year 2004-2005.
 
                                    By order of the Board of Directors.
 
                                             (D.A. CHOWDHARY)
                                             Managing Director
 Place : Hyderabad
 Date  : 12.08.2004