The Directors have pleasure in presenting their first report, together
 with the audited accounts for the period ended March 31, 2008.
 
 FINANCIAL HIGHLIGHTS
 
                                For the period ended
                                   March 31, 2008
                                   (Rs. in lakhs)
 
 Income                                363.67
 
 Profit before Taxation                322.46
 
 Provision for:
 
 Deferred Tax                            2.07
  
 Net Profit                            324.53
 
 Balance carried forward               324.53
 
 DIVIDEND
 
 The Company is in its nascent stage of building its investment
 portfolio base and therefore needs to conserve its resources for
 reinvestment during the coming years. Your Directors are of the view
 that the Company should pursue this relentlessly and build a lasting
 foundation. Hence the Directors do not recommend any dividend for the
 period under review.
 
 PERFORMANCE
 
 The Companys investments portfolio yielded a dividend income of Rs.
 3.55 crores during the period under review.  The Market Value of the
 investment portfolio of the Company had reached a high level at certain
 periods during the year.  However, with the changes in capital market
 valuations towards the end of the period under the review, the Market
 Value of the investment portfolio stood at Rs. 438.66 crores as on
 March 31, 2008.
 
 Due to the volatility in capital markets, surplus funds were invested
 in liquid assets like Mutual Funds.
 
 FINANCIAL RESTRUCTURING
 
 During the current period, the Company has successfully implemented the
 Scheme of Arrangement (Scheme) with CEAT Limited and consequently,
 taken over the investment undertaking of CEAT Limited w.e.f. July 1,
 2007.
 
 Pursuant to the Scheme, the Company has issued equity shares, in the
 ratio of 25 equity shares of face value Rs. 10/- each fully paid up, to
 shareholders of CEAT Limited for every 100 equity shares held by them
 on the Record Date i.e. January 2, 2008.
 
 LISTING
 
 The Directors take pleasure in informing the shareholders that the
 securities of the Company were admitted to trading on the Bombay Stock
 Exchange Limited and the National Stock Exchange of India Limited on
 April 24, 2008.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 Due to the nature of business, this provision is not applicable to the
 Company.
 
 EMPLOYEE STATEMENT
 
 During the period under review, no employee was in receipt of
 remuneration which in aggregate was equal or more than that specified
 under Section 217(2A) of the Companies Act, 1956.
 
 DIRECTORS
 
 In accordance with the Companies Act, 1956 and Articles of Association,
 Mr. T. M. Elavia, Mr. H. N. Singh Rajpoot retire by rotation and have
 offered themselves for re-appointment.
 
 In accordance with the Companies Act, 1956 and Articles of Association,
 Mr. T. M. Elavia and Mr. H. N. Singh Rajpoot retire by rotation and
 have offered themselves for re-appointment.
 
 During the period under review Mr. M. G. Ramkrishna was appointed as an
 Additional Director of the Company and he would continue to hold office
 upto the date of the Annual General Meeting. However, a Notice has been
 received from a member along with requisite deposit proposing the name
 of Mr. M. G. Ramkrishna as Director retiring by rotation. The
 resolution for his appointment as Director liable to retire by rotation
 is being placed before the members for approval.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
 Directors, to the best of their knowledge and belief confirm that:
 
 i) the applicable Accounting Standards have been followed in the
 preparation of the annual accounts.
 
 ii) such accounting policies have been selected and applied
 consistently and such judgements and estimates have been made that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company in the Balance Sheet as at March 31, 2008 and
 of the Profit and Loss Account for the said period viz. May 17, 2007 to
 March 31, 2008.
 
 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.
 
 CORPORATE GOVERNANCE
 
 A report on corporate governance, along with a certificate from the
 auditors of the Company, regarding the compliance of conditions of
 corporate governance, as also the Management Discussion and Analysis
 Report, as stipulated under Clause 49 of the Listing Agreement, are
 annexed to this report.
 
 AUDITORS
 
 Messrs N. M. Raiji & Co., auditors of the Company, retire at the
 ensuing Annual General Meeting and being eligible, offer themselves for
 re-appointment.
 
 ACKNOWLEDGEMENT
 
 The Directors place on record their appreciation for the continued
 support they have received from financial institutions, banks,
 shareholders and employees towards conducting the business of the
 Company during the year under review.
 
 
                                 On behalf of the Board of Directors
 
                                 H.N. SINGH RAJPOOT   T.M. ELAVIA
                                 Director             Director
 
 Mumbai,
 Date: June 30, 2008