Financial Performance                          (Rs. in Lacs)

Financial Results                          2006-07     2005-06

Income from operations                       5.86      5057.69
Financial Expenses                           1691        39.70
Depreciation                               112.83      4330.18
Net Loss After Tax                         983.71      6488.62

Owing to the acquisition of the assets by ARCIL under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and handing over the assets to other entities there was no business operation in respect of Company.

Honble High Court of Gujarat vide its order dated 1st March 2007 has sanctioned the scheme of de-merger under which the assets of Sachana Undertaking has been transferred to Ninna Limited and as mentioned earlier the assets of Pharma Division of Company located at Rajpur arc in possession of ARCIL and it has appointed a healthcare company as custodian cum agent to take care of these assets.

Dividend

In view of the losses your Board is unable to recommend any dividend on equity shares.

Deposits

The company has not accepted any Deposits from the public within the meaning of Section 58 A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 during the year. In respect of deposits of earlier years company is in the process of settling the same.

Directors

At the ensuing Annual General Meeting Mr. Biren R Shah retires by rotation and being eligible for offers himself for reappointment. During the year under review Mr. Vivek J Rawal was appointed as Additional Directors of the company and hold office till the conclusion of the annual general meeting.

Directors Responsibility Statement

Pursuant to the requirement under section 217 (2AA) of the Companies Act, 1956 , which requires company to give a Directors Responsibility Statement, your directors hereby confirm -

Thai in preparation of annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure.

That Company has selected Mercantile accounting policies and applied them consistently and made judgements and estimates that arc 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 that period.

That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for the safeguarding the assets of the company and for preventing and detecting fraud and other irrcgulations.

That the directors had prepared the Annual accounts on a going concern basis for the year ending on 31st March, 2007.

Auditors

The Auditors M/s. Padam Chand Jain & Associates, Chartered Accountants retire at the ensuing Annual General Meeting and offer themselves for reappointment. The Auditors have confirmed that if appointed their appointment would be within the limit stated in Section 224 of the Companies Act, 1956.

Comment on Auditors Report

The Auditors Report have mentioned that Company has not made provision of interest and that for sales tax liability. It has also pointed out regarding non compliance of Accounting standard 28 regarding impairment of Assets and provisions for Contingent liabilities among others.

As the Shareholders arc aware that company had been going through difficult time which resulted into certain lapses on compliance front. Now with High Court having sanctioned the scheme and the same being implemented most of the compliance have been effected to and Company do not expect any adverse remark hereof from now.

Particulars of Employees and Others

The Company does not have any employee receiving remuneration of Rs. 2,00,000/- per month or Rs. 24,00,000/- per annum and therefore no particulars are required to be furnished under Section 217 (2A) of the Companies Act, 1956

Information on Energy Conservation, Technology Absorption and Foreign Exchange Earnings

Particulars regarding conservation of energy, Technology up gradation, and Foreign Exchange Earnings and Outgo, pursuant to Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 are not applicable to the Company during the period under review as no operations were carried out during the year.

Appreciation

The company places on record its deep appreciation tor all those who arc associated with the company and have continued their support towards the growth and stability of the company.

Place: Ahmcdabad                           for and on behalf of the
Date : 31st August. 2007                     Hoard of Directors
 
                                                       Sd/-
                                                    HIRKN SHAH
                                                     CHAIRMAN