FINANCIAL RESULTS

                                                1998-99         1997-98
                                          (Rs. in Lacs)   (Rs. in Lacs)

Sales and other income (net)                      1.21             1.21

GROSS PROFIT /(LOSS)                           (60.22)           (6.16)

Less : Depreciation                               -                -

Interest                                          -                -

PROFIT/(LOSS) BEFORE TAX                       (60.22)           (6.16)
     
Add : Surplus from previous year              (215.40)         (221.69)
     
Profit & Loss Adjustment                         10.26            12.45
     
BALANCE CARRIED TO BALANCE SHEET              (266.00)         (215.40)

In view of the carry forward losses by the Company during the year under review, the Directors do not recommend any dividend on the equity shares for the year ended March 31, 1999.

OPERATIONS

During the year under review, the Company did not undertake any commercial production of its crops and continued crop holidays. The Company has capitalised the entire operating cost in view of no commercial activity having been undertaken..

OUTLOOK

Farms under production still continue to get effected by the viral infection. The Company has entered into an arrangement with M/s. Shakti Aquaculture Farms Limited to cultivate the farm wherein Shakti Aquaculture Farms Ltd will bring the requisite working capital required to operate the farm and share the risk/profit of the business operations.

FIXED DEPOSIT

The Company has not accepted any Fixed Deposit from the Public during the year.

INSURANCE

The Company has made adequate arrangements for insuring its properties and assets against fire and other probable risks. However, the Insurance Companies have stopped insuring the crops-in-process in view of the continuous failure of insured crops throughout the country during the previous year.

DIRECTORS

Pursuant to Article 110 of the Articles of Association of the Company, Shri Sharad Ruia retire by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. Shri S.D. Mahale and Shri M.U. Pandey have submitted their resignation as Nominee Director and Director of the Company. The Directors place on record their sincere appreciation and thanks for the guidance given by these two Directors during their tenure. Further, Shri Pradeep Ruia has been appointed as an Additional Director of the Company. In view of the losses by the Company during the year under review, the Managing Director has not accepted any remuneration from the Company.

AUDITORS' REPORT

As regard to the qualifications of the auditors in their report regarding Non-provision of Interest on Term Loan and Working Capital Loan, Non-recognition of interest on Bank Deposit capitalisation of expenses, non provision of depreciation, Not writing off deferred revenue expenditure, Non-Writing off preliminery expenditure and share issue expenses, the directors have to say that Notes no 5, 6, 7, 10 & 11 of the Notes to the Accounts which deals respectively with the said qualifications are self-explanatory and hence does not require any further explanation.

AUDITORS

During the year, M/s. Sunderlal Desai and Kanodia, Chartered Accountants have submitted their resignation on 10.8.99 and expressed their inability to audit the accounts of the company for the year 1998-99.

The casual vacancy in the office of Auditors caused by resignation of M/s. Sunderlal Desai and Kanodia, Chartered Accountants is filled at the Extra Ordinary General Meeting held on 4th September 1999, appointing M.s Kailash Chand Jain & Co., Chartered Accountants. M/s. Kailash Chand Jain & Co., will retire at the ensuing Annual General Meeting.

ENERGY CONSERVATION & TECHNOLOGY ABSORPTION

The activities of the Company do not involve much use of energy and hence cost of energy does not form a major part of the Company's total cost of production. However, efforts for optimum utilisation and conservation of energy is being carried out by the Company.

FOREIGN EXCHANGE EARNINGS AND OUTGO

During the year under review, the Company has not spent any amount on account of foreign exchange outgo. Further, no foreign exchange was earned.

PARTICULARS OF EMPLOYEES

There are no employees whose particulars are required to be given pursuant to the provisions of Sub-section 217 of the Companies act, 1956 read with the Companies (particulars of employees) Rules, 1975.

PROMISE V/S PERFORMANCE (IN TERMS OF CLAUSE 43 OF THE LISTING AGREEMENT)

As required under clause 43 of the Listing Agreement with Stock Exchanges, comparison of promise as given in the Company's Prospectus dated 28th March, 1994 and actual performance by the Company is given herein below :

                                                               1998-99

                                            Projected            Actual
                                         (Rs. in lacs)    (Rs. in lacs)

Sales and other income                        1020.00             1.21

Profit/(Loss) after tax                        294.95          (60.22)