Dear Shareowners,
 
 We are witnessing one of the world''s most remarkable economic miracles
 in India. The country is widely acclaimed as a potential economic
 superpower with an enormous market and a plethora of opportunities for
 businesses across multiple sectors. Leveraging the economic vigour and
 creating opportunities for business expansion remains the overriding
 focus of CEBBCO.
 
 Our business has slowly evolved over the decades. Historically, OEMs
 only produced chassis for commercial vehicles (CV) and sold it to the
 end customer, who would then take it to various unorganised players to
 complete the body building process. The result: body building was
 largely of poor quality, leading to repeated customer complaints,
 hurting OEM brands. In response, OEMs, began to produce Fully Built
 Vehicles (FBV), combining their in-house technological expertise as
 well as that of select body builders like CEBBCO. This has considerably
 benefited the CV industry, since the CV is built to a higher pre-
 determined standard, enhancing OEM profits.
 
 As India''s leading designer and manufacturer of bodies for commercial
 vehicles and now entering aggressively into the railway rolling stock,
 your Company has come a long way since inception in 1979. Today, we
 produce commercial vehicle and Railway rolling stock bodies for varied
 applications to facilitate road transportation and railways. Tata
 Motors (TM), which control 65 % of India''s domestic commercial vehicle
 industry, is our largest customer in the commercial vehicles sector
 apart from other top-notch OEMs like Eicher Volvo, Ashok Leyland, and
 MAN Force, among others. At present, OEMs have a very small share of
 its business volumes from FBVs but it has targets to progressively
 raise it to 100 percent, which will further translate into an
 attractive growth opportunity for CEBBCO.
 
 Overall, our visibility in the commercial vehicle industry is
 significant.  However, it is relevant to mention here that our
 financial performance in fiscal 2010 was impacted by market forces
 largely beyond our control. There are certain models for which CEBBCO
 is the exclusive body builder for our OEM customers. Due to a change in
 emission norms, there were virtually no orders for those models from
 TATA Motors between August to November. This, in turn, led to our
 numbers being drastically reduced and our production figures took a
 hit.
 
 Going forward, we had detailed discussions with our customers and
 arrived at a joint decision to increase our contribution in their
 businesses of FBVs substantially.
 
 Besides, the railway contracts, which were supposed to generate
 substantial revenues, were deferred owing to fiscal disciplinary
 measures of the Indian Railways, leading to a significant dip in
 revenues. To combat this situation we aggressively pursued the Ministry
 of Railways, and are expecting a few large orders shortly. Also to
 secure more business we have bid for the new wagon tender for
 approximately 15,000 wagons and are hopeful of getting a development
 order as per Railway norms.  Going forward, railways will prove to be a
 substantial contributor to our order book and revenues. In addition,
 refurbishment of wagons, along with manufacture of components for
 coaches and locomotives in the railways division, is a margin-accretive
 business.
 
 Most importantly, we saw a jump in steel prices and other various
 sizable inputs. Negotiations for price revisions with customer''s were
 not entirely successful which affected the company''s profitability. We
 have now secured the desired price variation and the effect on the
 profitability can be seen in the first quarter results of the financial
 year 2011 -2012.
 
 With the above measures, the Company has undertaken various activities
 that should contribute to better productivity and a healthier balance
 sheet. We have taken a firm stance in cost cutting and are aggressively
 re-negotiating with all our vendors to bring down costs substantially
 and therefore increasing our operating margins. A good example of this
 has already been stated above.
 
 We are aggressively working on reducing our Net Current Assets in the
 next fiscal and bring it down from the current levels of Rs.  10,708.69
 lakhs. CEBBCO has also started lean manufacture; we are also commencing
 Six Sigma activities, the benefits of which shall reflect in the
 organization''s performance in the coming quarters.
 
 Indian Railway''s Vision 2020 document has communicated the need for
 2,90,000 wagons, which will be required over the next 10 years. In
 connection to this demand we are setting up a new facility (1,200 wagon
 capacity) at Deori near labalpur to manufacture all types of wagons
 with the help of our IPO proceeds. Considering full capacity
 utilisation, this facility will only contribute a miniscule portion of
 the overall demand.  We will progressively focus on more capacity
 enhancement to address this colossal demand. CEBBCO''s revenue
 visibility from this business is expected to be significant.
 
 We would like to share with you some of the brighter aspects of our
 business performance in 2011-1 2. CEBBCO''s first quarter PAT in fiscal
 2011-12 is higher than the PAT of fiscal 2010-11, all four quarters
 combined. We are aiming to drive nearly four-fold revenue growth by
 2014.
 
 In view of the growth objective, we have forayed into the power sector
 this year, building power structurals for boilers and ESPs for L&T. We
 are setting a target to manufacture 2000 tons a month over the next 18
 months. To enhance our customer reach in this segment, we would be
 leveraging our existing strengths in fabrication as well as build
 strong relationships with multiple clients.
 
 In view of the inherent optimism of our business model, New York Life
 Private Equity and Tata Capital Private Equity have retained their
 stakes. In addition, we received investments from GIC (Government of
 Singapore), lardine Fleming, Legg Mason, Kotak and Monsoon capital in
 our IPO.
 
 With the government''s enhanced focus on infrastructure development,
 CEBBCO is well poised to attain greater heights in future. We are
 focusing on better resource management to extend superior value to the
 customer. Our people are trained to embrace challenges and excel in
 areas of specialisation.  CEBBCO''s Board is empowered by Independent
 Directors, who bring their rich insight and industry-specific
 experience to strengthen our brand.
 
 Across its multiple facilities, CEBBCO employs local people and enables
 social uplift. Social responsibility is at the heart of our business
 strategy. It represents an everyday experience both on the job and in
 the local communities where our employees are based. Our social and
 business responsibilities are enabling us to move forward towards a
 more sustainable CEBBCO.
 
 On behalf of the Board of Directors, we thank all our employees,
 shareholders, customers and business associates for their unstinted
 support and guidance. In addition, we are thankful to all our investors
 who have subscribed our IPO for the confidence they have shown in our
 capabilities. If we all take small steps towards business
 sustainability and responsible growth, we can make a big difference.
 
 Warm Regards,
 
 Dr. Kailash Gupta, Chairman and Managing Director
 
 Mr. Ajay Gupta, Whole Time Executive Director