Action Construction Equipment

Dear Shareholders,
 
 My warm greetings to all of you.
 
 As you are aware we have entered into 16th financial year of the
 Company in an extremely challenging business environment when economy
 is still under recovery phase. The financial year 2008-09 faced
 recessionary trend particularly in the 2nd half when almost all
 countries got hit globally. The share markets also got plunged and
 demand for many products decreased.
 
 The impact of this was felt in India to a lesser magnitude in
 comparison to other countries, your Company also suffered from this
 situation. Inspite of the economic slowdown all over the world, your
 Company has performed reasonably well during the financial year of
 2008-09. The Company held its fort by fighting the situation with
 courage and conviction. We took this opportunity to increase our
 customer base & did product improvements to provide our customers
 quality equipment at comparatively low prices. We made plans to
 leverage opportunities, realizing our growth potential. At ACE, we
 believe that we have key strengths which have ensured, we stay healthy
 even in tough times. While the Company concentrated on cutting cost
 wherever possible, to remain profitable, we focussed on products where
 our market share could be improved i.e. Tractors, Backhoe Loaders,
 Crawler Cranes, Pilling Rigs and others. Due to our innovative sales
 and marketing techniques, the new products of Company have already
 penetrated into the market. This will give your Company increased
 turnover & profit in future.
 
 It gives me immense pleasure to share with you that the sale of
 Tractors has picked up and going in the right direction as was
 anticipated. Initially we have appointed dealers and are marketing only
 in the states of Haryana, U.P & Rajasthan. Further strategies have been
 chalkedout to extend the presence of Tractors in different parts of the
 Country, thus making it popular all over India. At the same time it is
 heartening to announce that your Company remains a leading Mobile Crane
 Manufacturing Company in India.
 
 In the coming years, your Company has formulated plans to deliver
 sustainable and profitable growth, creating value for the shaieholders.
 Our core values will take us towards our vision of becoming the largest
 Construction Equipment Manufacturing Company in India.
 
 With gratitude to our investors, employees, customers and also stock
 holders, we look forward to your continued support.
 
                                               Vijay Agarwal
                              Chairman and Managing Director