The Directors present herewith Ninety Second Annual Report together
 with Audited Accounts for the year ended 31st March, 1999.
 
                                                    (Rupees in Lacs)
 
                                                 1998-99     1997-98
 
 ACCOUNTS :
 
 The working for the year showing an
 operating loss of                                 18.55       32.72
 
 Add : Previous years loss of                  17,960.37   17,927.65
 
 There remains a carry forward loss of         17,978.92   17,960.37
 
 WORKING RESULTS AND TRADING CONDITIONS
 
 The Mills have not been operating for the past four years as they are
 closed since June 1995 due to non availability of Working Capital
 Finance.  On 31st December, 1995, BIFR has confirmed its prima-facie
 opinion that it is just and equitable to wind up the Company.  The
 Company had preferred an appeal before the AAIFR, New Delhi against the
 winding up order.  On 15th January 1998, AAIFR has dismissed the said
 appeal.  However, the Workers' Union have filed a petition against the
 order of BIFR/AAIFR in the Bombay High Court.  The matter is pending
 for decision of the High Court, Bombay.
 
 Apart from the above, SBI/IDBI have filed the Civil Suit against the
 Company in 'satisfaction of their claims.  In view of Court's Order dt.
 16th November, 1998, High Court of Bombay directed that Court Receiver
 has been appointed to take the physical possession of the suit
 properties.  The matter is still pending with Court Receiver, High
 Court Bombay.
 
 EXCISE DUTY
 
 The Company has disputed Excise claim of an aggregate amount of Rs.9.63
 Crores.
 
 TAXATION :
 
 The Income Tax Assessment of the Company has been completed upto 31st
 March, 1997 (Assessment Year 1997-98).
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION FOREIGN EXCHANGE & OUTGO
 :
 
 Due to non-operations, the Company has no activities relating to
 conservation of energy and technology absorption.  There were no
 earnings or outgo in foreign exchange.  Thus, information pursuant to
 Section 217(e) of the Companies Act, 1956 has not been given.
 
 PARTICULARS OF EMPLOYEES
 
 The Company does not have any employees to whom provisions of Section
 217(2A) of the Companies Act, 1956 are applicable.
 
 DIRECTORATE :
 
 Shri S.G. Vaidya retire by rotation and being eligible, offer himself
 for reappointment.
 
 Shri S.D. Rajwade has resigned from the Directorship of the Company
 w.e.f. 10th December, 1998.
 
 Shri A.D. Gupte has resigned from the Directorship of the Company
 w.e.f. 30th June, 1999.
 
 The Board of Directors placed on record its warm appreciation of the
 valuable services rendered by them to the Company during their tenure
 as Directors.
 
 AUDITORS :
 
 The Auditors M/s. Chandabhoy & Jassoobhoy, Chartered Accountants hold
 office until the conclusion of the ensuing Annual General Meeting.  The
 Company has received confirmation from the Auditors that they are
 eligible under Section 224(1) of the Companies Act, 1956 to be
 reappointed as Auditors of the Company.
 
 You are requested to appoint Auditors to hold office until the
 conclusion of the next Annual General Meeting and to fix their
 remuneration.