The financial year 2010-11 for your company has been a mixed one.  We
 have faced and overcome a number of hurdles in our businesses and
 simultaneously achieved certain key milestones to bolster our progress.
 
 Our thrust to upgrade, re-vamp, and stay abreast of changes in the
 business environment have led to some challenging initiatives. The
 Transformer division executed a carefully planned shutdown of one of
 its plants. This shutdown was necessary though unfavourable for us, as
 it had to be carried out in the last quarter of the financial year thus
 affecting our overall profitability.  However, this impediment has
 fructified into a new, upgraded, state of the art facility that will
 also be used to meet strict export norms. The Motor business too has
 faced the challenge of ramping up its range in a short span of time.
 Over the last 3 years we have tripled the maximum rating of the LT
 Motor product offering enabling us to quote for larger projects where
 the extended range is a pre-requisite.
 
 Besides our two largest businesses there have been some encouraging
 developments in our other divisions as well. A significant achievement
 of the Projects business was receiving our first prestigious order from
 Power Grid Corporation. This project is under execution now and we hope
 to make further inroads into this space. The Drives business has
 successfully signed an agreement with KEB (Germany) to assemble a
 certain range of products in India. This will help us to be more cost
 effective and increase penetration in target market segments. Our
 Elevator Systems division has tripled sales and remains market leader
 for gearless machines in the domestic market.
 
 As the manufactured in India tag becomes more visible and credible it
 is important for us to note the opportunities that come with this
 development. Export opportunities are on the rise and we are
 structuring our efforts to tap key markets in a phased manner.
 
 The outlook for the Indian power sector is buoyant but increased
 competition is putting substantial pressure on margins.  The government
 must do more to see the completion rate of the infrastructure projects
 rise at a steady and sustainable pace. If this does not happen, the
 unpredictability that results will lead to harsh cycles of demand
 supply mismatches in the short run. The long run outlook is positive,
 and the potential of this sector is exciting. Though challenging, we
 look forward to embrace the opportunity this provides us.
 
 Shome Danani
 
 Executive Director