2009 was a year when many remarkable global changes have taken place.
 Post Lehman brothers, banking reforms were seen and economy of many
 countries saw a phase which they had not seen since few decades. This
 did impact global economy and recovery is now visible. However, Indian
 economy was one shining star globally, This obviously saw us moving as
 closer to the world recognising how India will be a catalyst in
 economic recovery of many countries. Every country now will have India
 strategy and it is clear that India has capability to play important
 role in helping global economy to recover. These are long term
 sentiments and not short term euphoria.
 
 Indian economy faced similar situation as global economy was facing but
 regulated central bank proved how to manage stimulus package andbring
 back growth on track, India could recover its path by second half of
 2009-2010, Even then, it did leave scar on slow growth in first half
 when manufacturing industry like ours suffered and pace of growth for
 year was overall slow. Your Companys performance under the
 circumstances was definitely impacted.
 
 While our strategy is to remain focussed in the T & D segment of power
 sector, challenges on competition and execution front including margin
 pressure are evident, The Industry is facing acute shortage of skilled
 manpower in EPC business specially in Transmission line stringing area
 which has impacted overall Industrys performance and your Companys
 too. However, your Company is taking continuous steps to overcome these
 challenges by improving efficiency, productivity, execution capability
 and enhancing skills of human resources by a continuous process of
 learning & development but at the same time also see its impact in
 short term.
 
 We are optimistic about the future prospects for the power industry and
 those for your Company. Indias very need of the hour is power and
 other infrastructure as repeatedly pointed out by all big economists
 and industrialists. Infact, India is expected to add a generation
 capacity of 62,000 MW on certainty basis in the 11th five year plan,
 out of the planned target of 78,577 MW. If one goes by the actual
 implementation of the plan so far, the country will have to go for
 capacity addition of around 37,000 MW in the remaining two years of the
 11th plan. This offers remarkable opportunities to Companies like EMCO.
 Your Company has emerged as a formidable force in providing turnkey
 transmission solutions (400kV- 765 kV extra high voltage segment) in
 the dynamic power sector in India.
 
 To stay ahead of time and match the pace of change, your Company always
 endeavours towards inculcating a culture that encourages innovations
 and work on fresh technology perspective. Your Company has well
 equipped corporate R&D Centre, staffed by a team of specialists and
 professionals working passionately on innovative development projects
 synergic to the Companys business interest.
 
 In order to protect intellectual property rights and to create further
 wealth for our shareholders, your Company has also filed few patents.
 
 During the year, your Company has achieved various milestones and some
 of them are:
 
 - First transformer manufacturer in the world to have successfully
 tested a 315MVA, 230 kV Generator Transformer for Dynamic Short Circuit
 Test at the world-renowned KEMA High Power Test Lab, Netherlands,
 
 - Only Indian Company selected to present a technical paper at CIGRE in
 Paris, France,
 
 - Appreciation Certificate from Honble Union Minister for State for
 Power for the Product- Eco- friendly Dielectric Fluid for Transformer
 for the Best Product Contest at ELECRAMA-2010.
 
 Your Company sold one of its subsidiaries EMCO Energy Limited, which
 was setting up a thermal power project, in order to unlock the value to
 pursue larger opportunities in the power generation business. The
 Company, in order to fuel its power generation plans, had perceived
 this strategy after taking into consideration the changing scenario in
 the power sector in which the emphasis is essentially on large size
 projects to become competitive, cost efficient and environmental
 friendly. The decision has earned good return on investment and
 increased your Companys networth and risk taking capability against
 future unforeseen events. However, the Company has only sold a Project
 and not the business and therefore, entire core team and knowledge
 remains with the Company.
 
 While pursuing growth in business, the Company does not neglect its
 social responsibilities, Every year, it contributes minimum 1 per cent
 of its net profit to health, education and environment protection
 activities, which are handled by EMCO Foundation.
 
 Finally, let me express my personal gratitude for the confidence that
 you have always bestowed on us, I sincerely hope that you will continue
 to be our strength, so that, together, we can reap the benefits of the
 phenomenal opportunities unfolding in front of us and become stronger
 and successful in the coming years,
 
 Yours sincerely,
 
 
 
 Rajesh S.Jain 
 
 Chairman