The Board of Directors is delighted to present 23rd Annual Report on
 Companys Business and Operations for the year ended 31st March, 2011.
 
 Financial Highlights
 
                                                          (Rs. in Lacs)
 
 Particulars                                       2010-11      2009-10
 
 Net sales & other income                            20266        12108
 
 Total Expenditure                                   18264        10687
 
 Gross profit before exceptional items, 
 interest & depreciation                              2006         1420
 
 Interest                                              171          316
  
 Depreciation                                          425          387
 
 Impairment Loss                                         -            2
 
 Profit Before Taxation                               1406          715
 
 Tax Expenses                                          464          261
 
 Profit After Tax                                      942          454
 
 Balance brought forward from previous years          2141         1858
 
 Proposed Dividend (inclusive of dividend tax)         272          137
 
 Transfer to General Reserve                            94           34
 
 Balance carried in Profit & Loss Account             2718         2141
 
 Earning Per Share(Rs.)                              16.11         7.76
 
 Profits
 
 Your Company has shown a substantial growth in Net income by 67.38% to
 Rs. 20266 Lacs in the year under review as compared to Rs. 12108 Lacs
 in Financial year 2009-10. Profit after tax was Rs. 942 Lacs as against
 Rs. 454 Lacs in the previous year clocking an increase of 107.49%.
 
 Dividend
 
 The Board of Directors are pleased to recommend dividend of 40% (Rs.
 4.00 per share) on the paid up share capital of the company, for the
 financial year ended 31st March, 2011(Last year Rs. 2.00 per share).
 This is the highest ever payout in history of company. The total
 dividend payment amounts to Rs. 2,72,03,131/- (including Dividend
 Distribution Tax of Rs. 37,97,051/-).
 
 Operations
 
 Your company recorded total sales of 19398 vehicles as compared to
 12329 vehicles in the previous year registering a growth of 57.33%.
 
 On domestic sales front, your company sold 19141 vehicles registering a
 growth of 55.97% over previous years volume of 12272 vehicles. In the
 overseas market, your company sold 257 vehicles as compared to 57
 vehicles in the previous year registering a growth of 350.88%.
 
 New Projects
 
 Your company has also launched improvised version for its front engine
 three wheeler under brand name of ATUL SMART.
 
 Credit Rating
 
 The company has been awarded improved credit rating from ICRA from
 LBBB-(Pronounced as L triple B minus) to LBBB (pronounced as L triple
 B) for long term bank facilities and from A3 (pronounced as A three) to
 A2 (pronounced as A two) for short term bank borrowings
 
 Management Discussion & Analysis Report
 
 A detailed analysis of the Companys performance is discussed in the
 Management Discussion and Analysis Report, which forms part of this
 Annual Report.
 
 Corporate Governance
 
 Your Company has adopted good Corporate Governance Practices since its
 inception. The Com- pany is being managed with utmost professionalism,
 transparency and adherence to the legal framework. The Company believes
 that the Corporate Governance is all about effective manage- ment of
 relationship among constituents of the system, i.e. shareholders,
 management, employ- ees, customers, vendors, regulators and the
 society. The Company has strong belief that this relationship can only
 be built and strengthen through corporate fairness, transparency, and
 ac- countability.
 
 A detailed report on Corporate Governance is attached to this Report. A
 separate Report of Board of Directors on Corporate Governance giving
 details of compliance of various provisions of Clause 49 (Corporate
 Governance) of the Listing Agreement is attached to this Report. A
 Certificate from M/s Maharishi & Co., Chartered Accountants, the
 Statutory Auditors, is also attached to the Report.
 
 Right Issue
 
 The directors are pleased to inform the Members that company has filed
 draft letter of offer with SEBI, on 07th January, 2011 for issue of
 total 14,62,880 (Fourteen lacs Sixty two Thousands Eight hundred and
 Eighty only) Equity shares of face value of Rs. 10/- each at a premium
 of Rs. 20/- per equity share amounting to Rs. 4,38,86,400/-(Rupees Four
 Crores Thirty Eight lacs Eighty Six Thou- sands and Four Hundred
 only)]. The proceeds of the right issues are proposed to be used
 towards business expansion in few more states of the country & for
 repayment of term loan.
 
 Conservation of Energy, research and development, technology
 absorption, foreign ex- change earnings and outgo
 
 The particulars as prescribed under Sub-section (1)(e) of Section 217
 of the Companies Act, 1956, read with the Companies (Disclosure of
 particulars in the report of the Board of Directors) RULES 2988, are
 provided in the Annexure to the directors report.
 
 Particulars of Employees
 
 The Company has no employee drawing remuneration exceeding limits as
 specified in the Compa- nies (Particulars of Employees) Rules, 1975, as
 amended till date, and hence, particulars as mentioned in Section
 217(2A) of the Companies Act, 1956, are not required to be given.
 
 Directors
 
 Shri Sunil K Mittal, Shri Ramnik Kotecha and Shri Vijay Kedia,
 directors of the company retire by rotation at the ensuing Annual
 General Meeting and being eligible offer himself for reappointment.
 The Board of Directors of the company has passed resolution for
 reappointment & fixation of remuneration of Shri Sunilkumar Mittal as
 Wholetime Director, w.e.f. 1st April, 2011, subject to approval of the
 members in the ensuing Annual General Meeting. A brief resume of
 Directors
 
 containing details of nature of their expertise in specific functional
 areas and names of the companies in which they hold directorship,
 membership and chairmanship of the board commit- tees, as stipulated in
 clause 49 of the Listing Agreement with the Stock Exchange in India,
 are provided in the report of Corporate Governance forming part of the
 Annual Report.
 
 Directors Responsibility Statement
 
 As required by sub-section (2AA) of section 217 of the Companies Act,
 1956, Directors state that:
 
 (i) in the preparation of the annual accounts, the applicable
 accounting standards have been followed;
 
 (ii) they have, in the selection of the accounting policies, consulted
 the Statutory Auditors and these have been applied consistently and
 reasonable and prudent judgments and estimates have been made so as to
 give a true and fair view of the state of affairs of the Company as at
 31st March, 2011 and of the profit of the Company for the year ended on
 that date;
 
 (iii) proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities;
 
 (iv) The annual accounts have been prepared on a going concern basis.
 
 Secretarial Audit
 
 As directed by the Securities and Exchange Board of India (SEBI),
 Secretarial Audit is being carried out on quarterly basis, by M/s. MJP
 Associates, Practising Company Secretaries. The findings of the
 Secretarial Audit were satisfactory
 
 Auditors
 
 M/s Maharishi & Co., Chartered Accountants, and Statutory Auditors
 retires as Auditors of the company and have given their consent for
 reappointment. The members are requested to appoint Maharishi & Co., as
 auditors for the period from the conclusion of the ensuing Annual
 General Meeting till the conclusion of the next Annual General Meeting
 and to fix their remuneration.  The company has received letter from
 auditors to effect that their appointment, if made, will be within the
 prescribed limits under section 224(1B) of the Companies Act 1956 and
 that they are not disqualified for such appointment / reappointment
 within the meaning of section 226 of the Companies Act 1956, &
 Rules/Regulations /code of conduct framed by the Institute of Chartered
 Accountants of India (ICAI).
 
 Acknowledgments
 
 We thank our customers, vendors, investors and bankers for their
 continuous support during the year. We place on record our appreciation
 of the contribution made by our employees at all levels.  We also put
 on record our gratitude to IDBI Bank for their support. We thank the
 Government of India, the State governments and other government
 agencies for their support, and look forward to their continuous
 support in the future.
 
                                    For and on behalf of the Board
 
                                                   (J. J. CHANDRA) 
                                      Chairman & Managing Director
 
 RAJKOT
 Date: 30th May, 2011