YEAR                       EVENTS
 1988 - The Company was incorporated on 3rd October, and obtained the
        Certificate for Commencement of Business on 10th February,
 1989. 
        It was promtoed by Smt. T. Sarada, Vijayaraghavan Nambiar and
        Andhra Pradesh Industrial Development Corporation, Ltd.
 (APIDC).
        The main object of the company is Manufacture of Cocoa and
        Chocolate products for domestic and exports markets.
 
      - The company undertook to set up facilities for Cocoa
 processing
        and chocolate manufacturing with a capacity of 3000 TPA of
 Cocoa
        and Chocolate products.  The project is located at Nastipur
        village, in the Medak district of Andhra Pradesh.  Plant and
        Machinery were imported from A.E. Nielsen Maskinfabrik Aps,
        Denmark, Heidenouer Maschinenfabrik GmbH, Germany and from
 Italy,
        UK. etc.
 
      - The Company entered into technical arrangement with M/s.
        Chocolate Confectionery Consultancy, U.K., headed by Ms. Anne
        Cridland specialists in the area of formulation of recipes,
        product development etc.  In return for the services rendered,
 a
        consultancy fee of sterling Pound 100 per man day plus
 expenses
        were to be paid.
 
      - Also, the Company retained the services of Plantek (M) SDN BHD
 of
        Malaysia, for Consultancy Services in terms of conducting
        feasibility studies, measures for plant protection, crop
        management, post-harvest processing etc.  A consultancy fee of
 US
        $ 50,000 was to be paid for the same.  Both the agreements
 are
        valid for a period of three years.
 
 1991 - The Company allotted 80,000 - 14% non-convertible debentures
 of
        Rs. 100 each and 30,000 - 14% non-convertible debentures of
 Rs.
        100 each of SBI Mutual Fund and Canbank Mutual Fund
 respectively
        on private placement basis.
 
      - 18,00,000 shares allotted for cash at par (8,60,000 shares to
        promoters, directors, etc. 4,40,000 shares to APIDC; 2,00,000
        shares to SBI Mutual Fund and 3,00,000 shares to Canbank
 Mutual
        Fund) 22,00,000 No. of equity shares of Rs. 10 each were then
        issued at par of which 2,00,000 shares were reserved and
 allotted
        on a preferential basis to employees, etc.  Balance 20,00,000
        shares were offered to the public in October.  Additional
        6,00,000 shares allotted to retain over subscription
 (2,70,000
        shares to promoters, 3,00,000 shares to public and 30,000
 shares
        to employees.
 
 1992 - 30,70,000 No. of equity shares allotted to holding company. 
        Sunshine Allied Investment Ltd., (SAIL), Singapore.
 
 1994 - 17,17,756 Shares of Rs. 10 each at a premium of Rs. 2 per
 share
        allotted to foriegn collaborators.  M/s. Sunshine allied
        Investments Ltd. (Singapore).
 
 1995 - The improved performance was attributed to launch of six new
        products in consumer range and expansion of distribution
 network
        to State of Kerala, Goa and Maharashtra.  However, reduction
 in
        off-take of industrial chocolates by one of the major buyers
        apart from curtailing of Cocoa operations consequent to
 increase
        in domestic prices of Cocoa beans affected net profits.
 
      - The Company entered into a selling arrangement with cocoa
        specialists SDN Bhd of Malaysia (Cocospecs) a subsidiary of
 Grand
        Central Investment Holding, U.K. for export of its entire
        saleable production of coca derivatives and bulk chocolate at
        prevailing world market prices.  A selling commission of 2%
 of
        FOB was payable to coco specs.
 
      - Also, entered into a sub contract conversion agreement with
        Britannia Industries Ltd. (BIL) for undertaking manufacture
 of
        range of chocolate products for them.  As per this agreement
 all
        raw materials and packing materials required for manufacture
 of
        products were to be provided by BIL who would also indicate
 the
        product-mix, specifications and volumes required for various
        products according to which the company would undertake
        manufacturing programme.
 
      - The Company is a subsidiary of Sunshine Allied Investments
 Ltd.
        (SAIL) Singapore.  The controlling interests of SAIL was
 acquired
        by Pengkalen Holding Berhad (PHB) Malayasia.
 
      - 37,55,108 No. of equity shares issued on Rights basis (Prop.
 2:5;
        Prem. Rs. 10) to foreign collaborators.  (34,53,293 shares
 taken 
        up).
 
 2001 - The Hyderabad-based Lotus Chocolate Company Ltd. a
 wholly-owned subsidiary 
               of Singapore-based Network Foods International Ltd.
 which is part of MUI group of 
               Malaysia, has launched three new products - Maltese,
 Fun and Magic.