Whilst we have not fully completed the restructuring of the company
 with final solutions to all our outstanding issues and liabilities, I
 am pleased to report that we can now commence looking at new options
 and opportunities in terms of the future of our Company.
 
 Our main asset is the Country Club food factory and during the current
 year we will start developing this project. At the current time we are
 looking at enhancing the product line, doing some test marketing and
 considering the options for the future.  We are also open to finding
 partners and working with major retailers to develop the business
 further.
 
 For the most part, the previous year was spent in completing the
 restructuring activities, sale of certain surplus assets and handling
 the administrative and pending legal matters. The BIFR has discharged
 us on the ground that we have a positive net worth. This is one way of
 looking at it - but our contention has been that after merging the loss
 making subsidiary, the consolidated balance sheet would show a negative
 net worth. We will proceed with merging the subsidiary company with
 Phil Corporation so that we have a cleaner structure on which to build
 upon.
 
 We are fortunate that India is a growing market for snack foods and
 particularly with the rapid development of the modern retail
 environment, we have a product line and facility that could be the
 basis of a new business. We imagine that it would take a couple of
 years to see some results as we will still need to spend some resources
 on completing our restructuring and then carefully invest for the new
 business.
 
 I would like to thank our shareholders for their understanding through
 the difficult restructuring phase which resulted in the closure of our
 traditional photographic business. We can now look ahead to a phase of
 developing new business.
 
 A.Y. Fazalbhoy 
 Chairman