Prime Solvent Ex Director Report

Your Directors have great pleasure in presenting Annual Report together

with the Audited accounts for the year ended March 31, 2005.



FINANCIAL RESULTS: Year ended Year ended

31.03.2005 31.03.2004

Rs. In Lacs Rs. in Lacs



Sales & Other Income 2446.87 6836.53



Net Profit after depreciation & taxation [-] 140.54 [-] 168.13



Balance Brought Forward [-] 2699.94 [-] 2531 81



Balance Carried Forward [-] 2840.47 [-] 2699.94



OPERATIONS:



The Company has suffered loses in the current year mainly due to

depreciation.



The Company has leased out its Kareli and Chhindwara Plants and the

same are being are operated by the lessee. The Company is making

payments to the bank/institutions out of the lease rent income.



The company has submitted a proposal for One-Time-Settlement of the

dues with State Bank of India.



DIVIDEND:



Due to carry forward losses, your Board do not propose any Dividend for

the year ended March 31, 2005.



FIXED DEPOSITS:



Your Company has not accepted any deposit within the meaning of section

58A of the Companies Act, 1956 from Public and the rules made

thereunder.



BOARD OF DIRECTORS:



As per the Provisions of the Companies Act, 1956 and in terms of the

Articles of Association of the Company, Mr. Rajesh Jain, Director of

the Company retire by rotation and being eligible, offer himself for

re-appointment.



AUDITORS OBSERVATIONS:



The observations of the auditors contained in their Report are Self

explanatory and further have been adequately dealt with in the Notes to

the Accounts given in Schedule "M" which are self explanatory and

further the Board hereby explains:



PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND

FOREIGN EXCHANGE EARNING AND OUTGO:



The information pursuant to section 217 (I) (e) of the Companies Act,

1956 read with the Companies ( Disclosure of particulars in the Report

of Board of Directors ) Rules 1988 are not applicable to Company as the

Company has not done any manufacturing activities during the year.



PARTICULARS OF EMPLOYEES:



None of the employees of the Company came within the purview of the

information required u/s 217 (2A) of the Companies Act, 1956 read with

the Companies (particulars of Employees) Rules, 1975 as amended.



SAFETY, ENVIRONMENTAL CONTROL AND PROTECTION:



The Company has taken all the necessary steps for safety and

environmental control and protection at the plant.



ACKNOWLEDGMENT:



The Directors wish to convey their appreciation to the Companys

shareholders, customers, suppliers, bankers and distributors for the

support they have given to the Company and the confidence, which they

have reposed in its management and the employees for the commitment and

dedication shown by them.



Registered Office: For & on behalf of the Board

C/o. Capco Exports, For PRIME SOLVENT EXTRACTIONS LIMITED

Jeevan Sahakar Building,

5, Homji Street, Fort,

Mumbai 400001.

August 31, 2005. DIRECTOR