The Directors have pleasure in presenting the Tenth Annual Report on
 the affairs of the company and Audited Accounts of the Company for the
 year ended 30th June, 2000.
 
 FINANCIAL RESULTS :
 
                                                 For the year ended
 
                                                30.06.2000   30.06.1999
 
 Sales                                                 Nil          Nil
 
 Other Income                                          Nil          Nil
 
 Total Expenditure                               12,67,232    13,79,017
 
 Operating Loss                                  12,67,232    13,79,017
 
 Interest                                      3,39,15,232  2,73,57,212
 
 Depreciation                                    37,68,088    37,68,088
 
 Net Loss for the Year                         3,89,50,552  3,25,04,317
 
 OPERATIONS AND FUTURE OUTLOOK :
 
 During whole of the financial year 1999-2000, the plant of the Company
 remained dosed. The Company has been referred to BIFR as a Sick Company
 and its case had been registered at srl. No. 16/99 dated 10.06.1999.
 The BIFR had appointed IDBI as the Operating Agency to make an inquiry
 and suggest the measures for the revial of the Company upto March,
 2001. The Company is continuously in touch with the Operating Agency
 and the BIFR. Your Directors believe that a suitable revial package for
 the Company will be approved by BIFR and the Company will be able to
 re-start its operations.
 
 DIRECTORS:
 
 In accordance with the requirements of the Company Act, 1956, and
 pursuant to the provisions of the Articles of the Association of the
 Company, two of your Directors Mr. Praveen Rohtagi and Mr. Rakesh
 Chawla retire by rotation at the ensuing Tenth Annual General Meeting
 and being eligible, offer themselves for reappointment.
 
 
 AUDITORS :
 
 M/s. S. C. Thakral & Co., Chartered Accountants, the present Auditors
 of the company, retire at the forthcoming Tenth Annual General Meeting
 and being eligible, offer themselves for re-appointment. The Company
 has received a notice from them to the effect that their appointment if
 made would be within the limits prescribed under Section 224 (1) B) of
 the Companies Act, 1956.
 
 PUBLIC DEPOSITS :
 
 The Company has not invited or accepted any deposits from the public
 during the year.
 
 PERSONNEL:
 
 None of the employee of the Company is in receipt of a remuneration in
 excess of the limits specified under sub-section (2A) of Section 217 of
 the Companies Act, 1956 read with Companies (Particulars of Employees)
 Rules, 1975.
 
 DISCLOSURES :
 
 (a) As the unit remained closed during whole of the financial year
 1999-2000, the provisions of Section 217 (1) (e) of the Companies Act,
 1956 read with the Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988 pertaining to the information
 relating to conservation of energy and technology absorption are not
 applicable to the Company.
 
 (b) Foreign Exchange Earnings And Outgo :
 
 - Foreign Exchange Earnings/Receipt   : Nil
 
 - Foreign Exchange Outgo              : Nil  
 
 
 AUDITORS' REPORT
 
 The remarks made by the Auditors in their Report have been suitably
 dealt with in the Schedules and Notes and therefore do not call for any
 further clarification.