Dear Shareholders 
  
 The Directors have pleasure in presenting the 14th Annual Report and
 the audited statement of accounts of the company for the financial year
 ended 30th June, 2004.
  
 FINANCIAL RESULTS:-                                      Rs.'000 
 
                                                   2003-2004   2002-2003 
  
 Turnover                                              5,308       5,361
 
 Gross profit before interest and depreciation
 Less: Interest                                          NIL         NIL
 Depreciation                                            NIL         NIL
 
 Profit before tax                                        98          57
 
 Less: Provision for taxation                            NIL         NIL
 
 Profit after tax                                         98          57
 
 Prior Period Adjustments                                410         NIL
 
 Balance B/F from previous year                      935,964     936,021 
  
 TOTAL                                               935,456    1935,964 
  
 Appropriations: 
  
 Proposed dividend on equity shares                      NIL         NIL
 
 Corporate tax on dividend                               NIL         NIL
 
 Debenture redemption reserve                            NIL         NIL
 
 Balance carried to Balance Sheet                    935,456     935,964 
 
 DIVIDEND 
  
 The Directors do not recommend any dividend for the year 30th
 June,2004.
  
 CLAIM OF LOSS  
  
 The operation of the company had a set back consequent upon the
 collapse of the operating office building (Poonam Chambers, B Wing, Dr.
 A. B. Road, Worli, Mumbai on 11th September, 1997, as a result of which
 the company had suffered huge losses. The losses quantified have been
 transferred to claims receivable based on legal advice. The
 dislocation of the operation has been corrected over the months and it
 is expected to improve upon further during the current year.
  
 FIXED DEPOSITS 
  
 The company has not accepted any deposit within the meaning of Section
 58A of the Companies Act, 1956 and the rules made there under.
  
 DIRECTORS 
  
 Dr. A. Sundarajan retire by rotation at the ensuing Annual General
 Meeting and being eligible offer, himself for re-appointment.
  
 DIRECTORS' RESPONSIBILITY STATEMENT 
  
 Pursuant to the requirement Under Section 217(2AA) of the Companies
 Act, 1956 with respect to Directors' Responsibility Statement, it is
 hereby confirmed:-
  
 * That in the preparation of the annual accounts for the financial year
 ended 30th June, 2004 the Application Accounting Standards had been
 followed along with proper explanation relating to material departures.
  
 * That the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that were 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 the profit or
 loss of the company for the year under review.
  
 * That the Director had 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.
  
 * That the Directors had prepared the accounts for the financial year
 ended 30th June, 2004 on a going concern basis.
  
 AUDITORS 
  
 M/s Y.K.Tolia & Associates, Chartered Accountants, Statutory Auditors
 of the company hold office till the conclusion of the ensuing Annual
 General Meeting and are eligible for re-appointment.
  
 COMPLIANCE CERTIFICATE 
  
 A certificate from the Auditor of the Company regarding compliance of
 conditions of corporate governance as stipulated under clause 49of the
 listing agreement is attached to this report.
  
 PERSONNEL 
  
 As there are no employees, drawing remuneration as per provisions of
 Section 217(2A) of the Companies Act, 1956, and due to that, there is
 no requirement to submit particulars of employees as per the provisions
 of section 217 (2A) of the Companies Act,1956, read with the provisions
 of Companies (Particulars of Employees ) Rules, 1975.
  
 Conservation of Energy, Technology Absorption, Research & Development
 and Foreign Exchange Earnings and Outgo:-
  
 Conservation of Energy: 
  
 The Company's operations involve low energy consumption. However
 efforts to conserve and optimize the use of energy through improved
 operational methods and other means will continue.
  
 Technology Absorption: 
  
 The Technology available and utilized is continuously being upgraded to
 improve overall performance and productivity.
  
 Research & Development: 
  
 The company believes that Research & Development is a continues process
 and is a key driver to scalable and sustained corporate excellence. Our
 Research & Development activities help us gear for future opportunities
 and are focused to provide unique benefits to our customers.
 accordingly during the year, several key focus areas were identified.
  
 Foreign Exchange Earnings : Nil 
 Foreign Exchange Outgo: Nil 
  
 CORPORATE GOVERNANCE 
  
 The Company continues to be committed to the systems of good corporate
 governance by increased transparency and accountability to its
 shareholders. Pursuant to clause 49 of the Listing Agreement with Stock
 Exchanges, a report On Corporate Governance and Auditors certificate
 regarding compliance of conditions of Corporate Governance are made
 part of the Annual Report.
  
 ACKNOWLEDGMENT 
  
 The Directors place on record their appreciation of the assistance and
 support extended by all government authorities, financial institutions,
 banks, consultants, solicitors, shareholders and debenture holders of
 the company. Yours directors also wish to thank management and staff
 of, the promoter company, for the continuous guidance and support
 received from them. Your directors express their appreciation for the
 dedicated and sincere services rendered by employees of the company.
  
                                      For and on behalf of the Board 
  
                                      R.KACHALIA    Dr. A.SUNDARAJAN 
                                  Whole Time Director     Director 
  
 Dated : 16th October,2004
 Place : Hyderabad