The Directors have pleasure in presenting the Eighteenth Annual Report
 and the audited Accounts of your Company for the financial year ended
 31st March 2006.
 
 FINANCIAL RESULTS                          2005-2006    2004-2005
                                               Rs.          Rs.
 
 Sale                                       1,700.00      95,642.84
 Other Income                                  -             - 
 Interest & Finance Charges                       00      14,791.00
 Depreciation                            2,71,150.00    2,58,388.00
 Net Profit Before Tax                 (30,40,429.55) (29,23,689.36)
 Less: Provision for Taxation                   0.00           0.00
 Less: Deferred Tax Liability                   0.00           0.00
 Net Profit after Tax                  (30,40,429.55) (29,23,689.36)
 Add : Surplus brought forward 
 from previous year                    (83,94,587.38) (53,98,575.02)
 Add/(Less) Adjustments 
 relating to earlier years                      0.00      72,323.00
 Profit available for Appropriation  (1,14,35,016.93) (83,94,587.38)
 Appropriations:
 General Reserve                            0.000.00           0.00
 Surplus (deficit) carried to 
 Balance Sheet                       (1,14,35,016,93) (83,94,587.38)
 
 
 REVIEW OF OPERATIONS
 
 The Company has achieved sales turn over of Rs. 1,770.00 in the
 financial year 2005- 06 as against 95,642.84 in financial year
 2004-05.The net loss has been increased to Rs. 30.40 Lacs
 
 in the current financial year against net loss of Rs. 29.247 Lacs in
 the previous financial year.
 
 DIVIDEND
 
 Your Director does not recommend any dividend for the year under
 review.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956, and the
 Companys Articles of Association, Mr. Salim Peerjade, retires by
 rotation at the ensuing Anual General Meeting and is eligible for
 re-appointment.
 
 Mr.Jagdish Agarwal, Chairman and Managing Director of the Company has
 reigned as a Director w.e.f.7th February, 2006 due to some
 pre-occupation and other urgency. The Board place on record for the
 sincere contribution made by Mr. Jagdish Agarwal during his tenure as
 director.
 
 At a meeting of the Board of Directors of the Company held on 7th
 February, 2006 the Board had appointed Ms. Vinod Agarwal as an
 additional director and is eligible to hold the office up to the date
 of ensuing Annual General Meeting. The Company has received a valid
 notice in writing from a member(s)of the company proposing his
 candidature as a Director of the Company, is recommended for
 appointment. The Board of Director at their meeting held on 7th
 February, 2006 appointed Mr. Vinod Agarwal as Managing Director w.e.f.
 7th February, 2006 subject to the appointed of members. The Board
 recommend for his appointment at the ensuing Annual General Meeting.
 
 AUDIT COMMITTEE
 
 The composition of the Audit Committee is as given in the Report on
 Corporate Governance.  
 
 REMUNERATION COMMITTEE
 
 The information regarding Remuneration Committee is as given in the
 Report of Corporate Governance.
 
 CORPORATE GOVERNANCE.
 
 As required under the Listing Agreement with Stock Exchange(s), Report
 on Corporate Governance is attached herewith, forming part of the
 Directors Report.
 
 A Certificate from the Auditors of the Company reading compliance of
 the conditions of the Corporate Governance as stipulated under clause
 49 of the Listing Agreement is annexed to the Report on the Corporate
 Governance.
 
 SUBSIDIARY COMPANY
 
 The Company dose not have any subsidiary, therefore provisions of
 section 212 of the Companies Act, 1956 is not applicable.
 
 EMPLOYEES
 
 During the year under review the Company had no employee whose
 particulars are required to be mentioned pursuant to the provisions of
 Section 217(2A) of the Companies Act, 1956 read with the rules
 thereunder.
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
 
 The Director have nothing to report on the matters relaying to
 conservation of energy and technology adoption, as the Company is not
 engaged in any manufacturing activity and has no foreign collabration.
 
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 During the year under review, nothing has been earned or spends on
 account of Foreign Exchange.
 
 FIXED DEPOSITS
 
 The Company has not invited/received any Fixed Deposits from the Public
 during the year under report.
 
 INSURANCE
 
 The proper ties / assets of your Company are adequately insured.
 AUDITORS
 
 M/s. Gupat Shyam & Co., Chartered Accountants, the Auditor of the
 Company, holds office till the conclusion of the ensuing Annual General
 Meeting and are eligible for reappointment. The Company has received
 letter from M/s. Gupta Shyam & co. to the effect that their
 reappointment as Auditor, if made, would be within the limits under
 Section 224(1 -B) of the Companies Act 1956
 
 AUDITORS REPORT
 
 The Auditors observations and the relevant Notes are self-explanatory
 and, therefor, do not call for any comments.
 
 RESPONSIBILITY STATEMENT
 
 Pursuant to section 217 (2AA) of the companies Act, 1956, The Directors
 Confirm:
 
 1. that in preparation of the Annual Accounts, the applicable accouning
 standard have been followed and that no material departures have been
 made from the same.
 
 2. that they have selected such accounting policies and applied them, 
 consistently and made judgements and estimates that are reasonable
 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 income and
 expenditure of the company of that period.
 
 3. that they have taken proper and suffient 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.
 
 4. that they have prepared the annual accounts on a going concern basis.
 
 ACKNOWLEDGMENT
 
 The Directors have pleasure in recording their appreciation of the
 assistance, co-operation and support expended to your company by
 the shareholders, all Government Authories, Financial Institutions,
 Banks, Consultants, Solicitors, Customers, etc.
 
                            For and on behalf Of the Board of Directors;
 
 Place: Mumbai                           Vinod Agarwal
 Date : 25th  August, 2006                 Chairman