The Directors presents to you their Thirty Eighth Annual Report
 together with Audited statements of accounts for the year ended 31st
 March, 1999.
 
 FINANCIAL RESULTS
 
                                           Current Year   Previous Year
 
                                                 Rs.            Rs.
 
 Profit/((Loss) for the year before charge of
 Interest and depreciation                    7,47,60,933     48,28,672
 
 Less :
 
 Interest & Depreciation :
 
 Interest                                             NIL           NIL
 
 Depreciation                                    1,17,271      1,38,061
 
 Profit for the year after interest
 and Depreciation                             7,46,43,662     46,90,611
 
 
 The sales for the current year amounted to Rs. 4.35 Lacs as compared to
 previous year Rs. 8.13 lacs.  The company is under lock effective from
 1st March, 1997.
 
 The profit earned by the company during the year is Rs. 746.44 lacs as
 compared to previous year profit of Rs. 46.91 lacs.  The company profit
 is due to waiver of the liabilities towards bank and other liabilities.
 
 The members are aware that the company is Sick Industrial Company as
 admitted by the Board of Industrial and Financial Reconstruction
 (BIFR).  The company has made full payment of the One Time Settlement
 (OTS) offer amount to Bank of India and Canara Bank during the year
 amounting to Rs. 2 Crore each.
 
 Foreign Exchange earned during the year 31st March, 1999 was NIL and
 spent during the year 31st March, 1999 was NIL as compared to previous
 year 31st March, 1998 also it was NIL.  The company does not have any R
 & D department nor any technological absorption and energy conservation
 measures.  Hence separate details is not given as required under the
 Companies Amendment Act, 1988.
 
 DIRECTORS :
 
 Brig. Atma Singh and Mr. S. M. Shetty retire by rotation and being
 eligible offers themselves for re-appointment.
 
 AUDITORS :
 
 M/s. Gondalia & Mandviwalla, Chartered Accountants, retire at the close
 of the Annual General Meeting and being eligible offer themselves for
 re-appointment.  You are requested to appoint Auditors for the current
 year and fix their remuneration.