The Directors are presenting the Twenty First Annual Report for the
 year ended 31st March 2006.
 
 (Rs in Lacs)
 
 FINANCIAL RESULTS                              2005-2006  2004-2005
 
 Sales & other turnover                            876.70    4972.99
 Gross  Profit Before
 Depreciation & Financial charges                   91.29     462.60
 Less: Financial Charges                         (162.32)   (790.85)
 Depreciation                                     (42.41)   (210.60)
 Profit/Loss Before Taxation                     (296.07)   (538.85)
 Add : Brought forward loss                     (4405.10)  (3866.25)
 Less : Profit of Sale of Assets                  1082.66          -
 Loss carried to Balance Sheet                  (3618.46)  (4405.10)
 
 OPERATIONS :
 
 There is no business operations for the year under review.
 
 DIVIDEND :
 
 In view of the losses incurred during the year under review, your
 Directors regret their inability to declare any dividend for the year.
 
 DIRECTORS :
 
 Mr. Bishambharlal Kasermvala Director retires at this Meeting and being
 eligible offers himself for re-appointment
 
 DIRECTORS' RESPONSIBILITY STATEMENT:
 
 Pursuant to the requirements Under Section 217(2A) of the Companies
 Act, 1956 with respect to Director's Responsibility statement, it is
 hereby confirmed
 
 a. That in the preparation of the Annual Accounts for the Financial
 year ended 31st March 2006, the accounting standards had been followed
 alongwith proper explanation relating to material departures
 
 b. That the Directors had selected such accounting policies and applied
 them consistently and made judgements and estimates that were
 reasonable and 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 31st March
 2006 and of the Profit or Loss of the company for the year under
 review.
 
 c. That the Directors had taken proper and sufficient 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.
 
 d. That the Directors had prepared the accounts for the financial year
 ended 31st March 2006 on a going concern basis, however owing to the
 present scenario Directors reserves their assumption of going concern
 basis for the coming years
 
 PARTICULARS OF EMPLOYEES:
 
 The details as required under Section 217 of the Companies Act, 1956
 are not applicable as no employees is drawing salary of RS. 24,00,000/-
 per annum or RS 2,00,000/- per month if employed for the part of the
 year.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING & OUTGO :
 
 The Company stopped all its manufacturing activities, hence no report
 is to be given
 
 LISTING COMPLIANCE :
 
 The company's shares are listed at Mumbai & Ahmedabad Stock Exchanges
 As per the letter dated 30th March 2004 the Equity shares of the
 company are to be traded in de-mat form. The company had not signed
 agreements with Central Depository Services (India) Limited arid
 National Securities Depository Limited for de-mat of the Equity shares
 The Company had not paid listing fees of Mumbai and Ahmedabad Stock
 Exchange for the current year and previous years. The Company shall
 make the payment of fees as the Cash Flow position improves. The
 trading of the Inquiry share.s of the company are under suspension at
 both the stock exchanges.
 
 CORPORATE GOVERNANCE :
 
 As required a report of Corporate governance under clause 49 of listing
 agreement to be enclosed with the Director's report.
 
 AUDITORS:
 
 The retiring Auditor M/s. Neeta & Company, Chartered Accountants
 expressed their willingness for re-appointment. The Board recommends
 their appointment as the Auditors of the Company.
 
 AUDITORS REPORT:
 
 The qualifications, observations and suggestions made by the Auditors
 in their report are self-explanatory in view of the extra ordinary
 circumstances developed with taking over possession of the Silvassa
 Unit forcibly by ARCIL, since 6th June 2005, and further to floods in
 July 2005, Board of Directors of the company is not in position to take
 appropriate measures for complying with the statutory requirements
 accordingly In view of the absence of the official communication by
 ARCIL, since 6th June 2005 the Board of Directors are not in position
 to give an effective reply to all the observations and qualifications
 made by the Auditors in their reports, Annexure to the Auditors reports
 and Notes on accounts.
 
 FIXED DEPOSITS:
 
 During the year, the company has not accepted deposits to meet the
 pressing payment obligations. There is no unclaimed/unpaid deposits.
 None of the deposits have matured for payment.
 
 ACKNOWLEDGEMENTS:
 
 The Directors acknowledge with gratitude the co-operation extended by
 Government/semi Government authorities. Your Directors also place on
 record their appreciation for sincere services rendered by Employees.
 
 FOR AND ON BEHALF OF THE BOARD
 
 Place : Mumbai                           GHANSHYAMDAS DEORA
 Date  : 2nd September, 2006              CHAIRMAN