Your directors have pleasure in presenting the 9th Annual Report with
 the Audited Statement of Accounts for the period ended 31st March,
 2002.
 
 FINANCIAL RESULT
                                                           (Rs. In Lacs)
                                     As on 31.03.2002    As on 31.3.2001
 
 Loss before tax                               230.33             678.03
 
 Provision for tax Loss after tax              230.33             678.03
 
 Prior Period Adjustments                        0.36               2.71
 
 Net Loss for the Year                         230.69             680.73
 
 Loss B/F from Previous Year                  2947.99            2267.26
 
 Net Loss Carried forward to Balance Sheet    3178.68            2947.99
 
 DIVIDEND
 
 Your Directors have not recommended dividend for the period ended as on
 31st March 2002, due to heavy losses of the Company.
 
 WORKING RESULTS
 
 During the year under review due to uncertainty of the market and the
 pending decision of the BIFR and DRT the activity of the unit has been
 closed down for 9 months and able to restart from January onwards on
 Job work basis after declared Sick. During the year Company achieve a
 turnover of Rs. 3.31 lacs and Job work of Rs. 12.88 lacs as compare to
 turnover to Rs. 627.36 in the previous year. As the company has
 declared sick industrial company by the Honble BIFR and it proposes to
 file the proposal for rehabilitation the unit, therefore during the
 year interest on the dues of the IDBI and CBI total Rs. 513.66 lacs are
 not provided in the books, by this effect the losses for the year has
 declined by that amount in comparison to previous year. The main reason
 of losses is the Depreciation and interest burden on the Company. The
 Company is 100% Export Oriented Unit (E. O. U.) status and hope to
 better in future after revive from BIFR.
 
 DIRECTORS
 
 During the year Mr. Laxman J. Rajpurohit, director of the company has
 resigned from directorship. Shri V. M. Dawra and Shri S. R. Bamb,
 Directors, retire by rotation at the ensuring Annual General Meeting,
 and are eligible for re-appointment.
 
 AUDITORS
 
 The retiring Auditors M/s S. Bhandari & Co. Chartered Accountants, P-7,
 Tilak Marg, C-Scheme, Jaipur are willing to their re-appointment and
 the Board of Directors proposes to re-appoint them as Statutory
 Auditors, from the conclusion of this Annual General Meeting until the
 conclusion of the next Annual General Meeting. Observations made by
 Auditors are self-explanatory and do not require any further comments
 except the following: The CST reimbursement Claims which are lodged by
 the company within a period of 6th month from the end of the concerning
 quarter and the amount of such claims were also not ascertainable due
 to the certain factors which may be fluctuate the amount of claim.
 Hence the Company has not in the position to account for on accrual
 basis. Liabilities on account of Gratuity has not been ascertained and
 provided for as none of the employees have completed the qualifying
 period of service. The Central Bank of India has not update the Company
 time to time about the changes in the Interest Rates and Penal Interest
 hence the rate charged in the Books of Accounts are as per contractual
 rate and the variation will be accounted for as and when settled.
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 As required under section 217(2AA) of the Companies Act, 1956 your
 Directors confirm:
 
 * That in the preparation of the Annual Accounts, the applicable
 accounting standards have been followed and no material departures have
 been made from the same.
 
 * That they have, in selection of the accounting policies, consulted
 the statutory auditors and have applied them consistently and made
 judgements and estimates that are 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 and of the loss of the company for that
 period.
 
 * That to the best of their knowledge and information, they have 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; and.
 
 * That they have prepared the annual account, on a going concern basis.
 
 FIXED DEPOSIT:
 
 The Company has not invited any deposit from the public in terms of
 Section 58 A of the Companies Act, 1956.
 
 PARTICULARS OF EMPLOYEES:
 
 During the year under review, no employee of the Company was in receipt
 of remuneration in excess of the limits prescribed under section 217
 (2A) of the Companies Act, 1956 read with the Companies (Particulars of
 Employees) Rules, 1975.
 
 OTHER INFORMATION:
 
 Disclosure of Information regarding Conversation of Energy, Technology
 Absorption and Foreign Exchange and Outgo U/S 217 (1) (e) of the
 Companies Act, 1956 are annexed as Annexure-A to this report
 
 SICK COMPANY:
 
 The company has filed an application under section 15 (1) of Sick
 Industrial Companies (Special Provisions Act, 1985 to BIFR on
 12.07.2000 and BIFR has registered as case no. 238/2000 vide their
 letter No. 3(T-22)BC 2000. BIFR vide its order dated 27-12-2001 had
 declared the company as a Sick Industrial company in terms of section
 3(1)(o) of the SICA ACT 1985 and appointed IDBI as operating Agency,
 with direction for conducting a Techno-Economic-Viability study (TEVS)
 of the company and preparation of Viability study report and financial
 scheme for its rehabilitation. The IDBI has appointed Ahemdabad
 Textiles Industrial Research Association (ATIRA) for conducting the
 TEVS study and the Company has appointed a consultant for preparation
 the Scheme as per the directions given by Honble BIFR. The IDBI and
 Central Bank of India has filed suit in the Debt Recovery Tribunal, at
 Jaipur for recovery of their outstanding dues. The matter is still
 pending.
 
 CORPORATE GOVERNANCE:
 
 The Board of Director supported the board principle of Corporate
 Governance. In addition to basic governance issue, the board lays
 strong emphasis on transparency, accountability and its integrity.
 
 a. Composition of Board of Director
 
 The existing Board has a mix of wholetime and Non wholetime
 professional Director who being a wide range of skills and experience
 to the Board.
 
 b. Responsibility
 
 The Board has a formed schedule of matter reserved for its
 consideration and decision which includes renewing corporate
 performance ensuring adequate availability of financial resources and
 reporting to the shareholder during the year under review, the Board
 met seven times. Board member insure that this responsibility as a
 director of the company. The seven board meeting dated 26.05.2001,
 31.07.2001, 31.10.2001, 28.12.2001, 31.01.2002, 13.03.2002 and
 30.03.2002.
 
 c. Board Committee.
 
 To enable belter and more focussed attention on affair of the company.
 The Board delegates particulars matter to committed of board set up
 for the purpose. The subcommittee has vested with requisite power and
 authority for day to day administration to Specifically look after into
 the matter of share transfer, Transmission, Splitting and duplicate
 issue of share and readdress of share holder and investor grievances
 for the accounting year the company would report on compliance interim
 of clause 49 of the listing agreement. Board of Directors are fully
 committed to implement all requirements of clause 49 of the listing
 agreements and the Disclosure from. the Company Secretary is enclosed
 as Annexure - B.
 
 APPRECIATION:
 
 Your Board would like to place on record their appreciation for the
 support received from Government of India, Rajasthan State Government,
 Industrial Development Bank of India, Central Bank of India.
 shareholders and others.
 
 The Directors also wish to place on record their deep and sincere
 appreciation of dedicated services rendered by colleagues, workmen and
 staff of the Company.
 
 TECHNOLOGY ABSORPTION
 
 The Company is having Research & Development cell which is continuously
 working for improving of the quality of material and reducing the
 wastage and loss.
 
 FOREIGN EXCHANGE EARNING & OUTGO:
 
 EARNING:-
 
 Export at FOB value                                       NIL    16.64
 
 OUTGO:-
 
 Spares Parts                                              NIL     5.87
 
                                                  ON BEHALF OF THE BOARD
 
                                         -Sd-                       -Sd-
 Place: Jaipur                     S. B. Bamb                V. M. DAWRA
 date: 2nd Sept., 2002             (Director)        (Managing Director)