TO THE SHAREHOLDERS
 
 The Directors are pleased to present the 57th Annual Report together
 with the Audited Accounts for the year ended 31st March 2011.
 
 Financial Results                                     Rs. in Lakhs
 
 Particulars                                31.03.2011     31.03.2010
 
 Profit before tax                             4154.09        3647.65
 
 Less: Provision for taxation (including 
 deferred tax)                                 1302.58        1168.05
 
 Profit after Tax                              2851.51        2479.60
 
 Add : Balance in P&L Account brought
 
 forward from previous year                     825.34         799.84
 
 Profit available for appropriation            3676.85        3279.44
 
 Appropriations
 
 Dividend
 
 - Interim                                      707.17         582.37
 
 - Final                                             -          62.40
 
 Dividend Tax (including surcharge)             114.72         109.33
 
 General Reserve                               1900.00        1700.00
 
 Surplus Balance in Profit & Loss Account       954.96         825.34
 
 Dividend
 
 The Board of Directors in May 2011 declared and paid an Interim
 Dividend of Rs.17/- (170%) per equity share for the year ended 31st
 March 2011 on the paid up share capital of Rs.415.98 lakhs. The
 dividend, together with dividend tax of Rs.114.72 lakhs absorbs a sum
 of Rs.821.89 lakhs. The Board of Directors propose to treat the said
 interim dividend as the total dividend for the year.
 
 Management Discussion and Analysis Report
 
 Your company did well during the year under review in line with the
 Indian economy, which had registered a strong GDP growth of 8.50%.
 Growth in Agriculture sector was at 5.40% whereas growth in the
 Industry & Services sector were at 8.20% and 9.40% respectively. In the
 Automotive sector, medium and heavy commercial vehicles registered a
 strong growth of 32% while LCV''s grew at 23% and MUVs (Multi Utility
 Vehicles) by 29%.
 
 For the year under review, your Company''s sales increased by Rs.70.00
 crores - from Rs.358.00 crores to Rs.428.00 crores. This enabled
 profits (before tax) to grow by 13.87% from Rs.36.48 crores to Rs.41.54
 crores. Correspondingly, profit after tax increased by 14.95% from
 Rs.24.80 crores to Rs.28.51 crores. In view of all round inflation,
 operational costs including wages, freight, rent and travel went up.
 Some of these costs are expected to increase in the fiscal year 2011-12
 as well.
 
 Business Outlook
 
 Your company opened new branches in Patiala, Barbil and Allahabad to
 have a better reach. With commodity price inflation persisting we would
 expect motor vehicle parts prices to go up. With moderation in vehicle
 production due to macro economic factors, component manufacturers are
 expected to service the aftermarket with better supplies. With
 effective cost control, the management expects to maintain performance.
 
 Internal Audit
 
 The Internal Audit Team visits all our branches as per audit schedule
 to ensure compliance with systems and procedures. Audit findings and
 Internal Audit Reports are reviewed by the Senior Management and Audit
 Committee regularly. The Audit Committee of the Board met 5 times
 during the year under review with the Senior Executives of the Internal
 Audit and the Finance & Accounts Department and the Statutory Auditors.
 
 Corporate Governance
 
 A detailed report on corporate governance, together with a certificate
 from the Statutory Auditors in compliance with Clause 49 of the Listing
 Agreement is attached, forming part of this report.
 
 Directors
 
 Sri S Ravindran and Sri Rasesh R Doshi, Directors retire by rotation at
 the ensuing Annual General Meeting and being eligible, offer themselves
 for re-appointment.
 
 Auditors
 
 The Auditors, M/s Sundaram & Srinivasan, Chartered Accountants,
 Chennai, retire at the ensuing Annual General Meeting and have
 confirmed their eligibility and willingness to accept office, if
 reappointed. A certificate under Section 224(1B) of the Companies Act,
 1956 has been received from them.
 
 Information as per Section 217(1) (e) of the Companies Act, 1956
 
 Your Company has no activity relating to conservation of energy or
 technology absorption. During 2010- 2011, the Company did not have any
 foreign exchange earnings or outgo other than travel.
 
 Personnel
 
 There is no employee, particulars of whom are to be furnished under
 Section 217(2A) of the Companies Act, 1956.
 
 Directors'' responsibility statement
 
 As required under Section 217(2AA) of the Companies Act, 1956, your
 Directors state that:
 
 i) in the preparation of the annual accounts, the applicable accounting
 standards have been followed.
 
 ii) the Directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company as at the end of the financial year ended 31st March,
 2011, and the profit of the Company for that year.
 
 iii) the Directors have taken proper and sufficient care 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 Directors have prepared the annual accounts on a going concern
 basis.
 
 Acknowledgement
 
 Your Directors thank all the suppliers and dealers for their continued
 support and co-operation during the year under review. They also wish
 to thank State Bank of India for its support and assistance.
 
 Your Directors wish to place on record their appreciation for the
 commitment, initiative and excellent contribution of all the staff and
 executives of the Company, which enabled your company to register a
 good performance during the year under review.
 
                                  On behalf of the Board of Directors
 
 Chennai                                                  S Narayanan
 
 11 th August 2011                                           Chairman