Dear Shareholders,
 
 The year that went by has been one with tumultuous developments both
 within India as well as globally.  While the Asian economy (barring
 Japan) continued to grow, the rest of the globe continues to be
 sluggish. The financial position of many of the European economies has
 caused quite some concern, as also the political turmoil in the Middle
 East. Rising commodity prices and inflationary trends in many countries
 including India have emerged as challenges in the quest for growth.
 
 It is my belief, that despite the high levels of inflation, India
 continues to be rather well-positioned to achieve continued economic
 success and growth in this very challenging environment. The demand on
 infrastructure, urban development requirements, and measures promised
 by the government towards improving the rural economy as well as
 initiatives being taken by the government in ensuring financial
 inclusion at all levels will generate sufficient investment and propel
 growth.
 
 Your Company is again well-placed to benefit from the opportunities
 that the Indian economy will continue to offer. The product offering
 from your Company is geared to meet the demands that a growing economy
 will create. Your Company places great emphasis on product quality and
 believes in using up-to-date and appropriate technology at all its
 facilities. Another area of focus for the coming period is in the
 expansion of network and reach, specifically in the North and North
 Eastern regions of the country, adding Distributors and Dealers to make
 further inroads in these markets. Your Company believes that people are
 its best assets and ambassadors, and continues to invest in talent
 enhancement.
 
 As we embark on a new financial year, I look forward to your continued
 support and encouragement in taking your Company to greater heights.
 
 With best wishes,
 
 P. P. Chhabria
 
 Chairman