Paschim Petro Director Report

The Directors present the 18th Annual Report of your company with

audited accounts for the financial year comprising Nine months ending

31st March, 2001.



FINANCIAL RESULTS



The year ended with a loss of Rs. 521.16 Lakhs (previous year Rs.

187.82 Lakhs).



DIVIDEND



In view of losses, the directors do not recommend any dividend for the

year under review.



SICK COMPANY



The company has become a Sick industrial Company with in the meaning

of clause (o) of sub section (1) of Section 3 of the Sick Industrial

Companies (Special Provisions) Act, 1985, consequent to erosion of the

net worth of the Company. Consequently, the directors will make

reference, after the adoption of audited accounts at the forth-coming

annual general meeting.



OPERATIONS



The operations of the company continue to be severely affected due to

closure of its Plant at Baroda from December 1999. Further consequent

to availability of cheap imports, the demand for the company's products

have decreased, leading to unviable economics.



FUTURE OUTLOOK



The Directors continue to make efforts on a war footing to restart the

operations, which is necessary to ensure that the laid out expansion

plans are implemented.



INCOME TAX



The Search and Seizure operations were conducted by the Income Tax

Authorities during the financial year ending 31st march, 1999. The Block

Assessment proceedings are in the final stages of the completion. The

directors await the requisite orders.



DIRECTORS



During the year under review, the following were the changes in

Directorship :-



Mr. Jasjeet Singh S. Vijan and Mr. Parvinder Singh Vijan have resigned

as director during the year under review. The Board places on record

its sincere appreciation the valuable services rendered by them during

their tenure.



Mr. Chandrakant Vora was appointed as Additional Director during the

year under review.



Notices have been received under section 257 for the appointment of Mr.

Chandrakant Vora as director of company, which is placed for the

consideration of the members at the forth coming Annual General

Meeting.



Mr. Vijay Acharya, retires by rotation at the forthcoming annual

general meeting, but being eligible, offers himself for re-appointment.



AUDITOR'S REPORT



The observations in the Auditor's Report are suitably explained in the

Notes to the Accounts and do not call for any further explanation.



AUDITORS



The auditors, M/s. K. H. Bhatt & Co.. Chartered Accountants, have

confirmed that, if appointed, their appointment within the limits

specified in Section 224(1)(B) of the Companies Act, 1956.



Members are requested to appoint the auditors and fix their

remuneration.



DEPOSITS



The company has not accepted any deposit from the public within the

meaning of Section 58-A of the Companies Act, 1956 and the rules made

there under.



TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO



Particulars required under Section 217(1)(e) of the Companies Act, 1956

read with the Companies (Disclosure of Particulars in the report of

Board of Directors) Rules, 1988 is annexed to this report.



PARTICULARS OF EMPLOYEES



Since, the company has no employee who were paid remuneration in

excess of Rs. 12,00,000/- per annum, if employed throughout the year

and in excess of Rs. 1,00,000/- per month, if employed for part of the

year, particulars required under Section 217(2)(A) of the Companies

Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is

not annexed to this report.



ACKNOWLEDGEMENTS



The directors have pleasure in recording their appreciation of the

continued assistance and co-operation extended to the Company by the

Banks, Financial Institutions, Customers, suppliers and others. The

directors also wish to record their appreciation of the sincere and

dedicated services rendered by the employees of the Company at all

levels during this very difficult year under review..



For and on behalf of the Board

Place: Mumbai Sd/-

Date : 6th June 20001



Chandrakant Vora

(Chairman)



ANNEXURE TO DIRECTOR'S REPORT



Information under section 217 (1)(e) of the Companies Act, 1956 read

with the Companies (Disclosure of particulars in the Board of

Directors) Rules, 1988 and forming part of the Director's Report for

the year ended 31st March 2001.



1. CONSERVATION OF ENERGY.



a) Energy conservation records taken and its impact.



This being the first year of manufacturing operations commercially, the

impact of the energy conservation measures taken during the year can be

assessed in the following years.



RESEARCH & DEVELOPMENT



1. Specified areas in which R & D carried out by the Company.



a) Perfected the manufacture process of Pentane Derivatives.



2. Benefits derived as a result of the above R & D



a) Supply of import substitute Pentane Derivatives.



3. Future plan of action



a) Certain efforts for new product Development & matching purity levels

of PDEB & Pentane Derivative.



4. Expenditure on R & D (Rs. Lakhs)



2000-01 1999-2000



Capital NIL 0.32

Revenue NIL 1.65

Total NIL 1.97



Technology Absorption, adaption & innovation :-



1. Efforts in brief made towards technology absorption, adaption and

innovation



The company perfected the technology of Pentane Derivatives.



2. Benefits derived as a result of the above efforts e.g. product

improvement, cost reduction, product development, import substition

etc.



The company is able to supply import substitute Pentane Derivatives.



3. Information regarding imported technology.



Not applicable,



Foreign Exchange Earning and outgo :



2000-01 1999-2000



1. Earnings Rs. Nil Rs. Nil

2. Outgo Rs. Nil Rs. 27.87 lakhs



For and on behalf of the Board



Sd/-

Place : Baroda CHANDRAKANT VORA

Date : 6th June 2001 (CHAIRMAN)