Your Directors present herewith the TWENTY FIRST ANNUAL REPORT of the
 Company together with the audited accounts for the year ended on 31st
 March, 2001.
 
                                                         (Rs. in lacs)
                                             Year ended     Year ended
                                             31-03-2001     31-03-2000
 
 FINANCIAL RESULTS :                          
 
 The working results before charging 
 interest and depreciation shows an 
 operating Loss of                             489.01         392.58
 
 To which have been added :
 
 Interest/Financial Charges                     46.34         441.94
 Leaving a Cash Loss of                        535.35         834.52
 
 To which has been added
 Depreciation                                  167.68         158.42
 Making a total of                             703.03         992.94
 To which has been added :
 Liability for I.T/Interest on IT for 
 Previous Year                                   2.61           7.48
 Net Total                                     705.64        1000.42
 Which has been adjusted by the Directors 
 as under
 Transfer from General Reserve                     -          107.83
 Balance Loss to be carried forward            705.64         892.59
 
 DIVIDEND :
 
 In view of the losses no dividend on equity shares is being proposed.
 
 CURRENT PERFORMANCE :
 
 The year under review has been a very tough year for the Dyes and
 Dye-Intermediate industry which is passing through depressed and
 recessionary conditions. Low international demand coupled with general
 recession as a whole and Gujarat State in particular further aggrivated
 uneconomic trading conditions. Sincere efforts to curtail cost at
 various levels still continue.  Total direct export made by your
 company amounted to Rs. 368.34 lacs. Market conditions continue to be
 the same in the current year as well.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
 AND OUTGO ETC.
 
 The particulars relating to above as required under Companies
 (Disclosure of Particulars in the Report of the Board of Directors)
 Rules, 1988 are annexed and forms part of this report (Annexure-I)
 
 REFERENCE TO BIFR :
 
 The Company has made reference to BIFR Under Section 15 of SICA.
 Accordingly the Company was declared Sick on 19th January, 2001.
 
 DIRECTORS :
 
 Mr. Dinesh Chowdhary retires by rotation and being eligible offers
 himself for re-appointment. During the year Shri Vijaysingh resigned as
 Director of the Company. The services rendered by him during his tenure
 was appreciated by the Board. Shri Jasvantlal Madlani, Nominee Director
 of G.S.F.C was appointed as Director during the year.  Subsequent to
 the date of Balance Sheet :-
 
 Shri G.D. Chomal and Shri S. K. Sharma were appointed as Additional
 Directors of the Company who ceases at the ensuing Annual General
 Meeting and have offered themselves for appointment.
 
 Shri K.K. Kanoria and Shri S.K. Kanoria have resigned as Director of
 the Company. The services rendered by them during their tenure was
 appreciated by the Board.
 
 There was no employee drawing remuneration as prescribed under section
 217(2A) of the Companies Act, 1956.
 
 RESPONSIBILITY STATEMENT :
 
 Pursuant to the requirement under Section 217(2AA) of the Companies
 Act, 1956 with respect to the Director's Responsibility Statement, it
 is hereby confirmed :
 
 a) that in the preparation of the Annual Accounts, the applicable
 accounting standards have been followed mid that no material
 deparatures have been made from the same.
 
 b) that they have selected such accounting policies and applied them
 consistently and made judgements 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 and of me profit or loss
 of the Company for that period.
 
 c) that they have taken proper and sufficient care for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act. 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities;
 
 d) that they have prepared the annual accounts on a going concern
 basis.
 
 FIXED DEPOSIT:
 
 The total Fixed Deposits from Public, which remains outstanding as on
 31st March, 2001 stood at Rs. 84.45 lacs.
 
 AUDITORS :
 
 M/S. Sanghvi & Associate, Chartered Accountants , Ahmedabad will retire
 at the end of ensuing Annual General Meeting. Being eligible, they
 offer themselves for re-appointment.
 
 EMPLOYEES RELATION :
 
 Employees relations with the company during the year were generally
 harmonious and cordial.
 
 LISTING FEES
 
 The Company has paid the Listing Fees for the Financial Year 2001-02 to
 the Ahmedabad Stock Exchange, Vadodara Stock Exchange Ltd and Mumbai
 Stock Exchange.
 
 ACKNOWLEDGEMENT :
 
 The Directors wish to place on record their appreciation for the
 co-operation the company received during the year from IDBI, UCO Bank,
 GSFC, GPCB & other related organisations/agencies.
 
                                                 On behalf of the Board
 
 PLACE : AHMEDABAD 
 DATED : 28-6-2001                                     Chairman
 
 B. TECHNOLOGY ABSORPTION :
 
 No research and development work has been carried out by the Company
 and therefore there is no expenditure on this head nor any benefit
 accrued from it. The Company has not imported any technology.
 
 C FOREIGN EXCHANGES EARNING & OUTGO :
 
 i)  Earning
 
 a) Export Sales (F.O.B.)                    3,68,33,855     6,87,51,398
                                             3,68,33,855     6,87,51,398
 ii) Outgo
 
 a) Raw Material                             2,45,89,721     1,46,85,680
 b) Travelling                                    65,510        2,08,049
 c) Commission                                 24,49,105       23,73,245
 
                                             2,71,04,336     1,72,66,974