Attachment 1

Report Update On	25^th March, 1999
Report on	ALEMBIC GLASS INDUSTRIES LIMITED
Registered Office	Alembic Road, Baroda – 390 003, Gujarat, INDIA
Tel. No.	91-265-320 194 / 337 449
Fax No.	91-265-340 381
E-Mail	--
Telex	--

Attachment 2

S U M M A R Y

Incorporated	1944	Status	Satisfactory
Registration No.	345	Chief Executive	Mr. Ramanbhai Amin
Capital (Rs.)	25.679 millions	Payments	Correct
Sales (Rs.)	241.844 millions	Litigation	--
Net Worth (Rs.)	274.289 millions	Banking Reputation	Satisfactory
No. of Employees	About 600	Auditors	K. S. Aiyar & Company
Credit Rating	Ba (See attachment 3)

INDUSTRY

************************

FACTORY

K Alembic Road, Vadodara – 390 003, Gujarat, INDIA

K Whitefield, Bangalore – 560 066, Karnataka, INDIA

BRANCH

Nil

HISTORY

The company was incorporated on 19^th December, 1944 at Baroda in Gujarat having Company Registration Number 345.

LEGAL FORM

It is a Public Limited Liability company. The company’s shares are listed on the Stock Exchange.

DIRECTORS

Ramanbhai B. Amin	Chairman
Chirayu R. Amin	Director
Mrs. Malika C. Amin	Director
Ms. Year R. Amin	Director
Dr. Gannath R. Dholakia	Director

MAJOR SHAREHOLDERS

Name of Shareholder	No. of Shares	Percentage
Alembic Chemical Works Company Limited	37,440	14.58%
Nirayu Private Limited	821	0.32%
Sierra Investments Limited	109	0.04%
Shreno Investment & Finance Limited	2,800	1.09%
Other Promoters	48,008	18.70%
Others	167,607	65.27%

BUSINESS

The company is engaged in manufacturing and marketing of glass.

The company’s licensed & installed capacity is 60,740 MT & 125,000 MT respectively whereas its actual production during the year 1997-98 was 14,986 MT.

Generic Names of Principal Products of the company are :

Item Code No. (ITC Code)	70
Product Description	Pressed Ware
Item Code No. (ITC Code)	70
Product Description	Hollow Ware

The company had changed its financial year from 30^th September to 31^st March, hence, this annual accounts are for 6 months period from 1^st October, 1997 to 31^st March, 1998.

The performance of the company for the period under report was satisfactory. The production was 14,986 MT as compared to 38,437 MT of the previous year. One of the furnaces was under renovation/rebuilding and therefore the production was affected. The sales were Rs.232.2 millions as compared to Rs.527.4 millions of the previous year.

The company’s fixed assets of important value includes Freehold Land, Buildings, Employees Quarters, Plant & Machineries, Furniture & Fixtures, Office Machineries, Trade Marks and Motor Vehicles.

SISTER CONCERNS

Nil

BANKERS

K ICICI Banking Corporation Limited

K Pragati Sahakari Bank Limited

K SBI Factors & Commercial Services Limited

AUDITORS

K K. S. Aiyar & Company

Chartered Accountants

49-55 Bombay Samachar Marg, Mumbai – 400 023, INDIA

FINANCIAL INFORMATION

The company's latest financial information for the period ended 31^st March, 1998 is enclosed herewith.

CAPITAL STRUCTURE

Authorised Capital :
800,000	Equity Shares of Rs.100/- each	Rs.80.000 millions
Issued, Subscribed & Paid-up Capital :
256,785	Equity Shares of Rs.100/- each	Rs.25.679 millions

COMMENTS

Subject is a well-established company having satisfactory track records. The company’s profitability is under severe pressure. General financial position of the company is satisfactory. Payments are reported as slow but correct.

The company can be considered normal for business dealings at usual trade terms and conditions.

ABRIDGED BALANCE SHEET AS ON 31^ST March, 1998

[figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.1998 (6 mnths)	31.03.1997 (12 mnth)
SHAREHOLDERS FUNDS
1] Share Capital	25.679	25.679
2] Reserves & Surplus	248.610	23.225
LOAN FUNDS
1] Secured Loans	84.702	61.260
2] Unsecured Loans	0.057	0.066
GRAND TOTAL	359.048	110.230
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	363.397	127.401
Capital work-in-progress	0.797	0.766
INVESTMENTS	30.281	30.281
CURRENT ASSETS, LOANS & ADVANCES
Inventories	210.501	192.223
Sundry Debtors	28.217	41.279
Cash & Bank Balances	5.673	11.412
Loans & Advances	56.808	55.700
Total Current Assets	301.199	300.614
Less :
Current Liabilities & Provisions	342.755	356.189
Net Current Assets	(41.556)	(55.575)
MISCELLANEOUS EXPENSES	6.129	7.357
GRAND TOTAL	359.048	110.230

IMPORTANT FINANCIAL INFORMATION FOR LAST TWO PERIODS

[figures are in Rupees Millions]

PARTICULARS	31.03.1998 (6 mnths)	31.03.1997 (12 mnth)
Sales Turnover	241.844	545.825
[including other income]
Profit/(Loss) Before Tax	6.835	20.630
Provision for Taxation	0.735	2.505
Profit/(Loss) After Tax	6.100	18.125
Dividend	0.000	0.000
Earnings in Foreign Currency :
Export Earnings	0.702	3.178
Other Earnings	0.000	0.000
Total Earnings	0.702	3.178
Imports :
Raw Materials	0.563	1.418
Components & Spares	0.071	0.878
Capital Goods	0.000	2.144
Total Imports	0.634	4.440
Expenditures :
Raw Materials Consumed	55.024	143.009
Stores, Spares & Packing Materials Consumed	29.318	73.669
Power & Fuel	54.800	111.547
Employees’ Cost	4.713	29.496
Interest	10.314	21.328
Reimbursement of Expenses	53.508	88.570
Depreciation	16.761	30.015
Others	42.548	81.576
(Increase)/Decrease in Stock of Finished Goods	(31.976)	(54.016)
Total Expenditures	235.010	525.194

Attachment 3

SCORE SHEET

SCORE	CREDIT RATING	STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments. Maybe drawn to slightly difficult position as unfavourable conditions arise. Minimal assurance for timely payment on interest and principal sums	Moderate
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively limited or considered not known. Capability to pay both interest and principal sums is doubtful	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Attachment 4

INDIA

In 1998, the Hindu-nationalist party, the BJP was elected and formed a new Government. Soon after, however, both India and Pakistan conducted nuclear tests and tension in Kashmir grew. 1999 is not likely to be much calmer with regard to neighbouring Pakistan, but it is believed that the tensions will be more loud than physical in nature. India is growing at a healthy 5% pace and is expected to continue its level for the coming year. Inflation has been high however and was 16.3% for the year, as of the end of September, 1998. 1999 inflation is expected to be reduced to 9.3%, still high. Foreign reserves have grown by $2.1 billion to $26.5 billion as of November, in comparison to one year earlier. The trade deficit and current account balance remain in red.

Ranked among the ten most corrupt nations in the world, the parallel economy is conservatively estimated to be Rs.300,000 millions – roughly equal to the Gross Domestic Product.