Directors Report of Ayepee Lamitubes Ltd.

Mar 31, 1998

The Directors have pleasure in presenting their Fourteenth Annual Report and Audited Accounts of the Company for the year ended 31st March, 1998.

FINANCIAL RESULTS (Rs. in Lacs) For the year ended 31.03.1998 31.03.1997

Gross Income 217 328

Profit before Depreciation 74 90

Depreciation 66 64

Profit /(Loss) before Tax 8 26

Provision for tax 12 16

Profit/ (Loss) after Tax (4) 10

PERFORMANCE OF THE COMPANY

The Company's Gross Income was Rs. 217 Lacs as compared to Rs. 328 Lacs in the previous year. Similarly, the Net loss was Rs. 4 Lacs as compared to the Net Profit of Rs. 10 Lacs in the previous year.

DIVIDEND

In view of the above said performance, the Directors do not recommend any dividend for the year under review.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, Shri Anil Chanana and Shri. G.S. Goenka retire by rotation at the forthcoming Annual General Meeting of the Company and being eligible, offer themselves for re-appointment.

AUDITORS

M/s. V.R. Jain & Co., Chartered Accountants, retire at the forthcoming Annual General Meeting of the Company and being eligible, offer themselves for re-appointment.

PERSONNEL

Industrial relations continued to be cordial throughout the year. The Director place on record their appreciation of the services rendered by all the employees of the Company.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO

A. CONSERVATION OF ENERGY

Adequate measures have been taken to avoid wastage of energy.

B. TECHNOLOGY ABSORPTION

EXPENDITURE ON RESEARCH & DEVELOPMENT (R & D)

a. Capital Nil

b. Recurring Nil

c. Total Nil

d. Total R & D expenditure as a percentage of total turnover Nil

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned and used

a. Foreign Exchange earned Nil

b. Foreign Exchange used Nil

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Mar 31, 1997

Details not available in 1997-98 report.