The Directors present the 15th Annual Report together with the Audited
 Accounts and Cash Flow statement of year ended 31st March, 1998.
 
 OPERATIONAL RESULTS :
 
 FINANCIAL RESULTS :
 
 The financial results of the company for the year ended 31st March, 1998 and for the previous year are
summarised below.
 
                                                            Rs. in Lakhs
 
 Particulars                                       1998-98       1996-97
 
 Gross Sales inclusive of other income                 130           401
 
 Operating Profit before Interest,
 Depreciation and Tax                                 (13)            80
 
 Less Interest                                          53            50
 
 Operating Profit before Depreciation 
 and Tax                                              (66)            30
 
 Less Depreciation                                      14            18
 
 Operating Profit before Tax                          (80)            12
 
 Accumulated Loss                                      149            69
 (Unabsorbed Depreciation)
 
 PRODUCTION & SALES
 
 Particulars                                       1997-98       1996-97
 
 Cement Production (MT)                               5470         20145
 
 Sales (MT)                                           5618         19688
 
 The operational results present a depressing scenario.  The company had
 to curtail production and eventually stop production for a considerable
 period due to extremely depressed market conditions.  The financial
 erosion reflects this situation.
 
 DIVIDENDS
 
 In these circumstances it has not been possible to provide for any
 dividend to the shareholders.
 
 FUTURE OUTLOOK
 
 The future outlook for all infrastructural industries, such as Cement
 Industry is dependent not only on Govt. and large corporate policies
 but also the actual ground level investments.  The heartening feature is
 that Govt. of India has realised the urgency of committing sizeable
 investment in the Country's infrastructural sector such as Power Plants, Irrigation Projects, Roadways and
Bridges & Housing Sector. The policies have already been announced and it is hoped that the 'Investment
Rupees' will soon show progress at the grass roots.
 
 The Cement Industry would show a 'pick-up' by the middle of the 1999-2000, the current year 1998-99 being
again a depressed year.
 
 INDUSTRIAL RELATIONS
 
 In line with the adversities being faced by the Company, the employees
 have also had to suffer a great deal.  In these difficult circumstances, there has been general
understanding of the problems for which the management is very appreciative.
 
 DIRECTORS
 
 Sri. R.K. Rath, IAS (Retd.), Director of the Company retires by rotation at the ensuing Annual General
Meeting and, being eligible, offers himself for reappointment.
 
 AUDITORS
 
 M/s. S.N. Adlakha & Co., Chartered Accountants, the Statutory Auditors
 of the company, retire at the conclusion of this Annual General Meeting
 and have expressed their willingness to be re-appointed as Auditors of
 the company.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 As required under section 217(1)(a) of the Companies Act, 1956 read with Rule of the Companies (Disclosure
of particulars in Report of Board of Directors) Rule, 1988 the particulars relating to the conservation of
energy, technology absorption and foreign exchange earnings are as follows :
 
 I. Conservation of energy :
 
 The company continued to give priority to conservation of energy and
 proposals are being implemented for reduction of energy consumption.
 
 II. Foreign exchange earnings and outgo :
 
 The company has neither earned nor used any foreign exchange during the
 period ended 31st March, 1998.
 
 PARTICULARS OF EMPLOYEES
 
 The particulars required pursuant to the provision of section 217(2A)
 of the Companies Act, 1956 read with the Companies (Particulars of
 Employees) Rule, 1975 as amended by the Companies (Amendment) Act, 1988
 the name & other particulars of employees of the company who were in
 receipt of remuneration of not less than Rs. 3,00,000/- p.a. during the
 period ended 31st March 1998 or not less than 25,000/- per month during
 the period under review was nil.