The Directors present their 18th Annual Report together with the
 accounts for the financial year ended 31st March 1999.
 
 FINANCIAL HIGHLIGHTS
 
 The highlights of the operating results for the year are summarised
 below :
 
                                              31st March      31st March
                                                    1999            1998
                                            (Rs. in 000)    (Rs. in 000)
 
 Turnover & other income                          107048           31156
 
 Surplus (Deficit) before
 Depreciation                                     (6015)             515
 
 Provising of Sales tax/Entry
 tax for earlier yrs.                              10173              -
 
 Depreciation                                       1740             438
 
 Profit/(Loss) for the year                      (17928)              77
 
 PERFORMANCE AT A GLANCE
 
 During the year under review the production was possible only in the
 last 5 months and could do processing of 12044 MT of Soyabean &
 refining of 1871 MT oil.  Due to adverse conditions of export market
 and massive imports of oil, the margins were under strain.  In the
 first six months production could not be carried out due to the dispute
 between the company and the sales tax department.  Due to this the
 company could not beg any contact for Job work and due to limited
 resource the full production capacity also could not beg utilised
 during the balance period.
 
 PRESENT STATUS
 
 Company has made a reference to the BIFR under Sick Industrial
 Companies (Special Provision).  Act 1985 on 24.8.98 and the Company has
 been declared a sick company by Hon.  BIFR on 5.3.99 and Industrial
 Development Bank of India has been appointed operating Agency under sec
 17 (3) of the SICA. to examine the viability and prepare a viability
 study report.
 
 M/s IDBI has already submitted the Draft rehabilitation scheme to the
 BIFR.
 
 FUTURE OUT LOOK :
 
 During the first seven months of the year the capacity utilisation was
 12% only due to shortage of working funds.  The company has operated
 its plant during Nov.99 & Dec.99 (till date) at about 80% capacity by
 making alternate arrangement of working capital and inspite of
 depressed condition of the market due to massive imports of oil, has
 been able to achieve break even point due to various technical
 modifications and if the Govt action of increase in import duty on
 edible oils materialises, the future is definitely better.
 
 Conservation of Energy, Technology Absorption & Foreign Exchange
 Earnings and out go :- The relevant data is given in the Annexture
 forming part of this report.
 
 DIRECTORS
 
 Shri V.C. Chaturvedi has joined the Board of the Company in April 99 as
 nominee of BIFR and the company has been able to obtain valuable
 Guidance from him.
 
 Shri Bhagwan Das Kabra and Shri Venkatesh Kumar Kabra retires by
 rotation and being eligible offer themself for-reappointment.
 
 AUDITORS
 
 R.C. Baheti & Co., Auditors of the Company retire and being eligible
 offer themselves for re-appointment.
 
 PARTICULARS OF EMPLOYEES
 
 Since no employee of the Company has been drawing more than Rs.
 50,000/- pm or Rs. 6,00,000/- per annum during the period, section 217
 (2-A) of the Companies Act is not applicable.
 
 (A) CONSERVATION OF ENERGY
 
 (i) Energy Conservation measures taken Company is monitoring the energy
 consumption.  Transmission losses of power and heat losses are
 minimised by operating at high power factors and providing adequate
 insulation respectively.
 
 (ii) Additional investment and proposal, if any being implemented for
 reduction of consumption of energy :-
 
 No additional investment has been made.  The conversion of boilers to
 fluidised system has been deferred due to shortage of long-term finance
 sources available with the company presently.
 
 (iii) Impact of measure (i) & (ii) above for reduction of energy
 consumption and subsequent impact on the cost of production of goods :-
 
 The results of measures are under constant review and it is expected
 that benefits will accrue to the company under normal course
 
 (iv) Total energy, energy consumption and energy consumption per unit
 of production.
 
 RESEARCH & DEVELOPMENT (R & D)
 
 Specific Areas in which R & D carried out by the Company :- improving
 Product quality.
 
 Benefits derived as a result of the above R & D :- Better consumer
 acceptance.
 
 Future plan of action :-
 
 Reduction in the cost of Chemicals.
 
 Expenditure on R & D :
 
 a) Capital                              It has not been
 
 b) Recurring                            accounted for
 
 c) Total                                separately.
 
 d) Total                                R & D
 
 Expenditure as % of turnover.
 
 TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION :
 
 i) No significant progress has been made for adoption of any
 technology.  Efforts were made for improving product quality.
 
 ii) There was an improvement in the quality of the product manufactured
 by the Company.
 
 iii) No technology has been imported by the Company.
 
 FOREIGN EXCHANGE EARNINGS & OUTGO :
 
 Foreign Exchange Used                                  Nil
 
 Foreign Exchange
 earned directly                                        Nil