The Directors present the 10th Annual report of the Company alongwith
 the Audited Annual Accounts for the year ended 31st March, 2000.  The
 highlights of the financial results are as follows :-
 
 FINANCIAL RESULTS
 
                                                       (Amount in Lacs)
                                             Year ended       Year ended
                                             31/03/2000       31/03/1999
 
 Net Sales                                 68,25,207.53   1,20,63,545.43
 
 Other Income                                  4,500.00      1,04,022.72
 
 Total Income                              68,29,707.53   1,21,67,568.15
 
 Total Expenditure                         74,35,911.39   2,48,12,379.15
 
 Gross Profit/(Loss) before interest,
 depreciation and taxation                (6,06,203.86) (1,26,44,811.00)
 
 Interest                               1,20,63,339.00    1,21,25,888.00
 
 Depreciation                             43,11,901.00      43,42,434.25
 
 Provision for Taxation                           NIL               NIL
 
 Net Profit/(Loss)                    (1,69,81,443.86)   29,11,31,123.25
 
 Paid up Equity Capital                3,87,55,000.00     3,87,55,000.00
 
 
 YEAR IN RETROSPECT
 
 During the year under review, the Company suffered heavy losses.  The
 Directors are concerned about the state of affairs and are putting
 their best efforts to improve the performance of the Company.
 
 DIVIDEND
 
 In view of the loss suffered by the Company, the Directors regret their
 inability to recommend any dividend for the year.
 
 CORPORATE GOVERNANCE
 
 Consequent upon the adoption of the recommendations of Kumar Manglam
 Birla Committee on Corporate Governance by SEBI, provisions relating to
 the corporate governance have been incorporated in the listing
 agreement by the stock exchanges.  As per the Schedule of
 implementation prescribed the Company is required to implement the
 Corporate Governance Code within financial year 2002-2003 but not later
 than March 31, 2003.  The Company will take suitable action in this
 regard.
 
 FIXED DEPOSITS
 
 During the year under report, the Company did not accept any deposits
 from the public in terms of Section 58A of the Companies Act, 1956.
 
 PARTICULARS OF EMPLOYEES
 
 During the financial year under review, none of the Company's employees
 was in receipt of remuneration as prescribed under Section 217(2A) of
 the Companies Act, 1956 read with the Companies (Particulars of
 Employees) Rules, 1975 as amended and hence no particular are required
 to be disclosed in this report.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 (a) Conservation of Energy : Abundant care and attention has been taken
 to maximize the conservation of energy.
 
 (b) Technology Absorption : The Company is taking care of latest
 developments and advancements in technology and all steps are being
 taken to adopt the same.
 
 (c) Foreign Exchange Earnings and Outgo : There was no foreign exchange
 earning or outgo in the year under review.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Mr. C. K.  Gupta, Managing
 Director of the Company retire by rotation and being eligible, offers
 himself for re-appointment.  It is recommended that members may appoint
 him at the General Meeting.  Mr. M. L. Kumaria, Director resigned from
 the Board of the Company due to his pre-occupation.
 
 The nomination of Mr. A. C. Joshi was withdrawn by MPAVN And Mr Mukesh
 Kumar Jain was nominated by IDBI on the Board.  The Board expresses its
 sincere gratitude towards the valuable services rendered by Mr. A. C.
 Joshi and Mr. M. L.  Kumaria during their tenure as director of the
 Company.
 
 AUDITORS
 
 M/s. Gupta Deepak & Associates, Chartered Accountants, Statutory
 Auditors of the Company hold office until the conclusion of the ensuing
 Annual General Meeting and being eligible offer themselves of
 re-appointment.  A certificate under Section 224 (1) of the Companies
 Act, 1956 regarding their eligibility for the proposed re-appointment
 has been obtained from then.  The Directors recommend their
 re-appointment.
 
 YEAR Y2K ISSUE
 
 There was smooth transition to year 2000 and no Y2K problems were
 encountered.
 
 STOCK EXCHANGE LISTING
 
 The Company's shares are listed on Delhi, Mumbai and Madhya Pradesh
 Stock Exchanges.  The Company has duly paid the annual listing fees to
 these Stock Exchanges.