The Directors are pleased to present the Seventh Annual Report and
 Audited Accounts of the Company for the year ended 31st March, 1999.
 
 FINANCIAL PERFORMANCE
 
 The performance of the Company during 1998-99 is summarized below :-
 
                                                           (Rs. in Lacs)
 Particulars                                                      Amount
 
 Sales and other income                                            21.24
 
 Profit/Loss before
 interest and Depreciation                                       (29.50)
 
 Less : Interest                                                   92.79
 
 Profit/Loss after
 Interest but before Depreciation                               (122.29)
 
 Less : Depreciation                                              167.21
 
 Less Tax                                                            --
 
 Profit/Loss after
 Interest, Depreciation & Tax                                   (289.50)
 
 OPERATIONS
 
 During the year the Company could not execute any export orders due to
 sluggishness in Egg Powder Trade in International Market.  Had the International Market even remained
stagnant, the export turnover of the
 Company would have crossed Rs. 1000 Iacs.  Health Foods introduced by
 the Company are receiving response from Indigenous Market.
 
 Further the Company has accumulated losses of Rs. 478.29 lacs against
 its net worth of Rs. 470.75 lacs.  As per the provisions of the Sick
 Industrial Companies (Special Provisions) Act 1985, the Company has
 become Sick Industrial Company.
 
 ISSUE OF SECURED DEBENTURES,
 
 During the year the Company has not issued any secured debentures.
 
 FIXED DEPOSITS & UNSECURED DEBENTURES
 
 The Company has accepted fixed deposits through statement in lieu of
 advertisement to the tune of Rs. 3.70 Lacs as per provisions of Section
 58-A of the Companies Act, 1956 during the previous year.
 
 After returning the Secured Debentures application money, the balance
 amount of Rs. 0.65 lacs pertaining to 8 investors had been converted
 into Unsecured Debentures payable on expiry of 18 months period from
 the date of receipt with the consent of the investors.  Thus Rs. 4.35
 Lacs are outstanding during the year under report.
 
 DIRECTORS
 
 Mr. R. Ramshekhar, I.A.S. who was nominated on the Board of the Company
 by the Haryana Agro Industries Corporation Ltd., remained Director on
 the Board until 21/4/ 99 when his nomination was withdrawn by the
 Corporation.
 
 The Directors place on record their sincere appreciation to the support
 and invaluable services rendered by Mr. M. Ramshekhar during his tenure
 with the Company.
 
 Mrs. Jyoti Arora I.A.S. was nominated by Haryana Agro Industries
 Corporation Ltd.  w.e.f. 21/4/99.  The Directors welcome the nomination
 of Mrs. Jyoti Arora and look forward to her valuable association with
 the Company.
 
 Mr. J.L. Guglani, Asstt. General Manager/ HSIDC was nominated by the
 Haryana Industrial Development Corporation Ltd. w.e.f 17.9.98.  The
 Directors welcome the nomination of Mr. J.L. Guglani and look forward
 to his valuable association with the Company.
 
 Mr. R.K. Gupta, who was nominated on the Board of the Company by HSIDC,
 remained Director on the Board of the Company until 17/9/98 when his
 nomination was withdrawn by the Corporation.
 
 The Directors place on record their sincere appreciation to the support
 and invaluable services rendered by Mr. R.K. Gupta during his tenure
 with Company.
 
 Mr. Surjit Singh Director of the Company retires by rotation as per
 provision of the Articles of Association of the Company and being
 eligible offers himself for re-appointment.
 
 AUDITORS'
 
 M/s S. Mehtani and Co. Chartered Accountants, Statutory Auditors of the
 Company retire at the conclusion of the ensuing Annual General Meeting
 and being eligible offer themselves for re-appointment.  Observations
 made in the Auditors' report are self-explanatory and therefore, do not
 call for any further comments.
 
 INSURANCE
 
 All the assets of the Company were adequately insured upto 26/2/99.
 
 PERSONNEL
 
 There is no employee of the Company covered under Section 217 (2A) of
 the Companies Act, 1956 read with Companies (Particulars of employees)
 Rules 1975.
 
 INDUSTRIAL RELATIONS
 
 Industrial relations continued to be cordial during the year under
 report.
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNING AND OUTGO CONSERVATION OF ENERGY
 
 The Company has always been conscious of the need to conserve energy
 and has always attempted various measures for the same wherever
 possible to achieve reduction in the cost of production.  The Company
 has taken various measures on the suggestions of experts in the areas
 where energy reduction and fuel & oil conservation is possible.
 
 TECHNOLOGY ABSORPTION
 
 The plant has been set up in technical collaboration with M/s Sanovo
 Engineering A/S, Denmark, a world leader in Egg Processing Technology.
 The technology received from Sanovo Engineering has been fully
 absorbed.
 
 FOREIGN EXCHANGE EARNING AND OUTGO
 
 During the year under report the company neither earned nor spent any
 foreign exchange.