The Directors are pleased to submit Second Annual Report and Audited 
 Statement of Account for the year ended 31st March, 1996
 
 DIVIDEND
 
 Your Directors donot recommend any dividend for the year.
 
 OPERATION
 
 During the year the Company has earned the income of Rs. 11,58,740/- 
 and after appropriating expenses and depreciation the company has 
 incurred net loss of Rs.48,507/-.
 
 STATUS OF THE PROJECT
 
 The implementation of the Project of Oyster Mashroom is going on full 
 swings. The Status of the Project is as under.
 
      ACTIVITY                      STATUS
 
 1. Land Acquisition                Completed
 
 2. Registration of Sale Deed       Completed in May,95
 
 3. N.A.Permission                  Obtained in Sept.94
 
 4. Factory Building                Construction Completed.
 
 5. Power Connection                50 H.P. availed and balance 50 H.P.
                                    is expected during this year.
 
 6. Order for machinery             Delivery Received at site.
 
 8. Commercial Production           Expected to commence
                                    during this year.
 
 PARTICULARS OF EMPLOYEES
 
 There is no employee drawing remuneration of Rs. 12000/- the 
 information as per section 217(1) (e) of the said Act read with the 
 Companies (disclosure of Particulars in the Report of Board of 
 Directors) Rules, 1988 are not required to be furnished.
 
 CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN 
 EARNINGS/OUTGO.
 
 The Company has no activities relating to conservation of energy and 
 technology absorption, and there was no foreign exchange earning, 
 Expenditure in foreign currency amounted to Rs. 209134-00 during the 
 year for travelling purpose.
 
 FIXED DEPOSITS
 
 The Company has not accepted any fixed Deposits during the year.