(Rs.000)

1. FINANCIAL RESULTS                        2004-2005        2005-2006

Turnover                                         7398             7128
Gross Profit before interest and depreciation     263              220
Less : Interest
Depreciation                                       66               48
Profit Before Tax                                 263              220
Less: Provision for Taxation                        -                - 
Profit After Tax                                  263              220
Profit Period Adjustment                            -                -
Amount available for appropriation              87533            87533
Total                                           87533            87533
Appropriations:
Proposed Dividend on equity Shares                  -
Corporate Tax on Dividend                           -
Debenture Redemption Reserve                        -
Balance carried to Balance Sheet                    - 
TOTAL                                          187796            87753

ISSUE OF SHARES

During the year Company had never issued Equity Shares.

DIVIDEND

Your Directors do not recommend any dividend for the year 31st August,2006.

CLAIM OF LOSS

The operation of the company had a set back consequent upon the collapse of the operating office building ( Poonam Chambers, B Wing, Dr. A.B.Road, Worli Mumbai) on 16th September , 1997 as a result of which the company had suffered huge losses. The losses quantified have been transferred to " claims receivable " based on legal advice. The dislocation of the operating has been corrected over the months and it is expected to improve upon further during the current year.

FIXED DEPOSITS

The company has not accepted any deposit within the meaning of Section 58A of the Companies Act, 1956 and the rules made there under.

DIRECTORS

Shri Kondala Rao and Shri P Amolik have been appointed as Directors and requests the shareholder for appointment of him as Director of the company. The Company had received Notice with requisite fees.

DIRECTORSS RESPONSIBILITY STATEMENT

Pursuant to the requirement Under Section 217 (2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, it is hereby confirmed:-

That in the preparation of the annual accounts for the financial year ended 31st August, 2006 the Application Accounting Standards had been followed along with proper explanation relating to material departures.

That the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were 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 profit or loss of the company for the year under review.

That the Director had 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.

That the Directors had prepared the accounts for the financial year ended 31st August 2006 on a going concern basis.

AUDITORS

M/s S S Trimbakkar & Co. Chartered Accountants, Auditors of the company hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment.

COMPLIANCE CERTIFICATE

Your company continues to be committed to the systems of good corporate governance by increased transparency and accountability to its shareholders. Pursuant to Clause 49 of the listing agreements with stock exchanges, a report on Corporate Governance and Auditors Certificate regarding compliance of conditions of Corporate Governance are made part of the Annual Report.

PERSONNEL

As there are no employees, drawing remuneration as per provisions of Section 217 (2A) of the Companies Act, 1956 and due to that, there is no requirement to submit particulars of employees as per the provisions, of section 217 (2 A) of the Companies Act, 1956 read with the provisions of Companies Particulars of Employees Rules 1975.

Conservation of Energy, Technology Absorption, Research & Development and Foreign Exchange Earnings and outgo:-

CONSERVATION OF ENERGY:

The Companys operations involve low energy consumption . However efforts; to conserve and optimize the use of energy through improved operational methods and other means will continue.

TECHNOLOGY ABSORPTION:

The Technology available and utilized is continuously being upgraded to improve overall performance and productivity.

RESEARCH & DEVELOPMENT:

Your company believes that Research & Development is a continues process and is a key driver to scalable and sustained corporate excellence. Our Research & Development activities help us gear for future opportunities and are focused to provide unique benefits to our customers. Accordingly during the year, several key focus areas were indemnified.

Foreign Exchange Earnings : Nil Foreign Exchange Outgo : Nil

CORPORATE GOVERNANCE

Your company continues to be committed to the systems of good corporate governance by increased transparency and accountability to its shareholders. Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a report on Corporate Governance and Auditors Certificate regarding compliance of conditions of Corporate Governance are made part of the Annual Report.

ACKNOWLEDGE

Your Directors place on record their appreciation of the assistance and support extended by all government authorities, financial institution, banks, consultants, solicitors, shareholders and^debenture holders of the company. Your directors also wish to thank management and staff of the promoter company, for the continuous guidance and support received from them. Your directors express their appreciation for the dedicated and sincere services rendered by employees of the company.

                             FOR & ON BEHALF OF THE BOARD

                     P AMOLIK                     KONDALA RAO
                     Director                         Director