During the year the amalgamation of Savitri Pesticides & Agrochem Ltd.[SPAL] & Vayaz Indian Pesticides Pvt. Ltd.[VIP] with your company has been completed. The share certificates of the Shareholders of SPAL & VIP who submitted their shares were exchanged with the shares of your company. The dividend payable to the share holders of SPAL & VIP was paid during the year.

Due to erratic monsoon in most parts of the country, the sales of pesticides formulations were subdued and under tremendous competitive pressure. The margins have declined substantially. Due to the failure of crops in many areas, extended credit was given to the customers, which has resulted in increased interest burden on the company. The sales for the financial year ended 31^st March 1999, were marginaaly higher than last year in value terms. The newly introduced Chlorpyriphos & Cypermethrin combination product Anaconda 505^TM in the domestic market has fared well. Two new formulations namely, Chlorpyriphos 10% Coated granules & Chlorpyriphos 1.5% Dust were introduced & were received well by farmers. During the year ended 31^st March 1999, the production of technical grade pesticides has increased substantially, but this was not reflected by an increase in sales, in value terms, because of the steep erosion in selling price resulting from competitive pressures.

The current year has started with a delayed monsoon. The northern part of the country has received very scanty rain till date and sales of pesticides are subdued. Due to this, during the first quarter ended 30^th June 1999, your company has achieved a lower net sale of Rs 755 lakhs compared to Rs 806 lakhs during the same period last year. However the company expects to makeup the loss of sales in the second quarter ending 30^th September 1999.

In the current year Government of India has banned few old and toxic pesticides with large usage, due to this, demand for Chlorpyriphos is expected to increase considerably with firming up of prices. Recently some of the competitors have discontinued Chlorpyriphos production & shifted to other products due to steep fall in price of Chlorpyriphos. This development is expected to create some shortsupply of the product.

In view of the prevailing situation, as explained above, your Directors have decided to conserve all the available resources and plough back the same in the business to sustain the competitive pressures in the market in the current year. Hence nil dividend is recommended for the financial year ended March 31, 1999.

Export sales during the year have increased marginally to Rs.1647.36 lacs, as compared to Rs.1599.47 lacs during the previous year. Though in quantity terms, the increase in exports has been substantial, as a result of lower sales realisations, this could not be reflected in increased export sales. Your company has been awarded EXPORT HOUSE STATUS on 22/7/99.

With the introduction of a new Herbicide in the product range & ISO - 9002 certification, Exports are expected to increase substantially in the coming years.

During the year 1999-2000, your Company is introducing a new Insecticide and a new Herbicide, the process for which was developed by the Company's Research & Development Centre, which is recognized by the Government of India. Introduction of many new formulated combination products is also planned for the current year. The formulation facility is being strenghtened to enhance production capacities substantially. Major Capital Investments in R&D is also planned for the current year. The Company also proposes to sell its products online through the Company's website for which software development work is in process. This will be the first venture of its kind in the Pesticide Industry.

Mrs. E.P.Shrivastava, Director retires by rotation in accordance with the provisions of the Articles of Association of the Company at the ensuing Annual General Meeting of the Company and being eligible, offers herself for reappointment.

Mr. M.B.Pandya, Director retires by rotation in accordance with the provisions of the Articles of Association of the Company at the ensuing Annual General Meeting of the Company and is eligible for reappointment but has desired not to be reappointment.

During the year under review the Company has accepted Fixed Deposits from Public / Shareholders pursuant to the provisions of Section 58A of the Companies Act, 1956 and the Rules as amended from time to time. Your Company has received permission from Reserve Bank of India to accept Fixed deposits from NRl's/ OCB's on repatriation basis and has also started accepting the same from NRl's/OCB's.

The details and forms are available for download from Internet at www.aimcopesticides.com and from the Head Office of the Company.

M/s R. B. Patel & Co., Chartered Accountants, the auditors of the Company retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment. The auditors have confirmed that, if reappointed the same would be within the limits specified under Section 224 (1B) of the Companies Act, 1956.

The ISO-9002 certification for the Lote-Parshuram site was delayed but will be obtained this year.

It is the Company's policy to give top priority to effluent control and is commited to conserve the environment by using the best technology for effluent treatment and pollution control. During the year, your Company has installed a Suspended Solid Recovery Plant for treatment of liquid effluent. This has resulted in a very low suspended solids content in the effluent after treatment. The company also proposes to obtain ISO-14000 certification, once the ISO-9002 certification is obtained.

A study has been carried out on the company's Hardware & Software, which could be affected due to the Y2K problem, accordingly corrective measures have been taken and completed. The company doesnot anticipate any problems which could adversely affect the company's day to day operation due to Y2K.

Your Company continues to invest in HRD functions and provide motivating and satisfying work environment coupled with significant growth potential to all its employees. The Board wishes to place on record their appreciation for substantial support and contribution received from the employees at all levels towards the growth of the Company.

The information required under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 relating to the conservation of energy, technology absorption and foreign exchange earnings and outgo is annexed hereto and forms part of this Report.

To conserve energy, an energy saving team has been constituted, which routinely checks all energy intensive operations and implements suitable measures whenever necessary.

The Board is also grateful to Financial Institutions, Banks, Shareholders and Fixed Deposit Holders for their co-operation and assistance.

Your Directors take this opportunity to thank IDBI Ltd, ICICI Ltd, SICOM Ltd, State Bank of India and Department of Agriculture, Government of Maharashtra for their continued assistance and co-operation. We would also like to acknowledge with gratitude the co-operation extended by our Suppliers, Customers, Distributors and Investors.