Dear Shareholder''s
 
 The financial year 2011-12 was marked by challenges in both, the
 domestic as well as the global economy. The challenges of high fiscal
 deficit, sticky inflation and high fuel prices appear to have impacted
 domestic growth. On the global front,Euro Zone sovereign debt default
 concern and uncertainty overgrowth in USA loom large and resultantly
 the macroeconomic scenario remains uncertain.
 
 Notwithstanding the challenges, the Indian economy is expected to grow
 by 6.9 per cent in financial year 2012-13 as per the World Bank. For
 the longer term, however they have pegged growth at 7.2 per cent and
 7.4 per cent in fiscal years 2013-14 and 2014-15, respectively in the
 report titled ''Global Economic Prospects''.
 
 The Automobile sector in India in 2012-13 is estimated to grow by 10-12
 per cent as per industry body Society of Indian Automotive
 Manufacturers (SIAM). The growth is likely to be fuelled by Passenger
 Cars and the fast growing Multi Utility Vehicle (MUVs) segment on the
 basis of supportive business environment, rising disposable incomes and
 favorable demographics.
 
 The Indian Auto Components Industry a sunrise industry, currently
 valued at USD 30 billion is estimated to grow at USD 100 billion by
 2020 and derives its growth impetus from the growing Automobile
 Industry. This translates into a CAGR growth of over 15 per cent as per
 Ikon Marketing Consultants. Further, Indian share in world auto
 components is estimated to grow over 3 per cent by 2015-16 against a
 meagre 0.4 per cent in 2003-04.
 
 The Performance
 
 During the year, your Company continued to focus on innovation which we
 believe will pave the way for long term growth despite near term pains.
 Your Company, completed the amalgamation of business activities with
 its subsidiaries Nirmiti Autocomponents Pvt. Ltd. and Western Pressings
 Ltd. and are extremely confident of scaling your Company''s operational
 performance. Visible signs of this have already been reflected in your
 Company''s overall financial performance during the year.
 
 On a consolidated basis your Company recorded Net Sales of Rs.7,483.5
 million, a growth of 14 per cent while bottom-line increased by 45 per
 cent toRs.397 million. The improved contribution to the topline came in
 from new products added and also addition of new clients and increased
 order booking from existing clients.
 
 Our industry positioning of being the most preferred component maker
 for International and Domestic OEMs has aided our efforts. Your Company
 has been able to expand its client base and improve its order bookings
 from existing clients in 2012 fiscal.
 
 During the year, due to change in accounting policies the inventories
 increased. However, the increase in finance costs have been in line
 with increased business activities and an overall high interest rate
 scenario in the economy.
 
 Further, the Industrial Promotion Subsidy of Rs.204 million received
 during the year as part of the Mega Project Status awarded to the
 Chakan Plant by the Government of Maharashtra has improved your
 Company''s bottomline performance. The Mega Project status was awarded
 for providing minimum employment to 1,000 people and also undertaking
 investments of approximately Rs.2,000 million towards regional
 development.
 
 I am glad to inform you that the Board of Directors has recommended a
 dividend of 40 per cent for FY 2012 as compared to 30 per cent in FY
 2011.
 
 Moving Ahead aided by Innovation
 
 Your Company''s in-house designing team has introduced a number of new
 products during the year. The Adjustable & Collapsible Pedal Assembly,
 High Deck Load Body, Park Brake Assembly and Jack Assembly are a result
 of our focus on driving growth through innovation,thus exemplifying the
 value engineering expertise of our company.
 
 While, most of these products have been tested and approved by leading
 international and domestic OEMs - Volkswagen, Daimler India, Ashok
 Leyland - Nissan, Asia Motor Works, Mahindra Navistar and Tata Motors,
 your Company is now set to tap the incremental growth opportunities
 arising from them.
 
 Further, during the year,your Company earned recognition for its
 in-house Designing & Engineering team from Volkswagen and General
 Motors, global automakers to provide cost efficient pedal assemblies
 and brake assemblies.
 
 During the previous year your Company had proposed setting up a
 manufacturing plant at Dharwad in Southern India, to cater to the
 growing needs of Domestic and International OEMs and particularly for
 the IRIS and ZIP models manufactured by Tata Motors. I am pleased to
 inform you that not only is work at the said plant site well underway,
 but also that your Company has started supplying components from a
 rented shed in Uttarakhand plant given the rising demand from our
 customers.
 
 Tapping Opportunities through Innovation
 
 While opportunities are abound in the long run, your Company would
 continue to focus on product and service innovation and improvement.
 The testimony to this is the overwhelming response received from OEMs
 for the beta version of  Meshwork Morpher Pro V  Software developed
 by your Company''s Associate company. This application helps to reduce
 overall cost and time taken for product development and testing. Your
 Company is therefore hopeful and optimistic of offering added value
 products to its existing and prospective clients by offering this
 product and thereby enhancing its revenue streams during FY 2013.
 
 The recognition of your Company''s value engineering expertise by
 International OEMs like General Motors, Volkswagen, Daimler, Ashok
 Leyland - Nissan, Asia Motor Works, Tata Motors and Mahindra Navistar
 continues to propel your Company''s growth, by enabling the development
 of newer, high performance, value added and low cost products in your
 Company''s portfolio. This will help us not only improve your Company''s
 business performance but also strengthen your Company''s relationships
 with the existing as well as prospective clients.
 
 Your Company plans to continue investing in green field and brown field
 expansion projects to service the growing demand of OEMs. Your Company
 is therefore committed to a long-term and a balanced strategy of
 profitable growth and strong returns. Further, with roll out of Tata
 NANO from Sanand, Gujarat your Company is planning to set up its
 manufacturing base in close proximity to OEMs and at an opportune time
 may expand its operations.
 
 Though I am optimistic of your Company''s performance over the longer
 term, a cautious approach still needs to be maintained. Keeping in view
 the ongoing global and domestic environment, possibility of facing an
 unexpected challenge in the near future cannot be ruled out.
 
 However, your Company''s untiring efforts of adhering to global quality
 standards, enhancing production efficiency, upgrading to fast changing
 requirements of OEMs, customization of products & solutions, and a
 strong focus on product innovation and improvisation have yielded an
 overall improvement in performance.
 
 Vote of Thanks
 
 I extend my deepest thanks to all those who have helped us achieve
 continued success and who will remain the vital forces in shaping our
 history—our employees, our customers, our suppliers, our business
 partners, our bankers and our stockholders. I look forward to the
 opportunities ahead of us as your Company continues to earn your trust,
 your confidence and your pride. I am also grateful to our Management
 Team for its relentless efforts to redefine our growth strategy and to
 the Board of Directors for their continuing guidance. We look forward
 to continued success and profitable growth.
 
 P.B. Nimbalkar
 
 Chairman