The Directors present the 19th Annual Report on the business and
 operations of your Company together with the Audited Statement of
 Accounts and the Auditors Report for the financial year ended 31st
 March, 2011.
 
 FINANCIAL RESULTS                                (Rupees in Lakhs)
 
                                            Year ended       Year ended
                                         March 31,2011    March 31,2010
 
 INCOME
 
 Cross Sales & Other Income                 12,396.45         11,019.94
 
 Cross Profit/ (Loss) before
 
 depreciation & tax                        (2,012.35)          (766.65)
 
 Depreciation                                  379.98            386.53
 
 Profit/(Loss) before tax                  (2,392.33)        (1,153.18)
 
 Provision for taxes                         (102.92)          (314.49)
 
 Prior period / Extra ordinary
 items                                         (0.18)
 
 Balance ol profit of earlier years          6,978.19          7,816.88
 
 Balance available for appropriation        4,688.60           6,978.19
 
 APPROPRIATIONS
 
 General Reserve
 
 Dividend
 
 Tax on Dividend
 
 Balance carried to Balance Sheet            4,688.60          6,978.19
 
 OPERATIONS AND PERFORMANCE
 
 In the year under review, your Company faced stiff challenges in
 getting orders due to competition. Additionally, excess capacity
 created in the last few years resulted in significant pricing
 pressures. However, your Company was successful in getting noteworthy
 orders from private power producers including an order for a 400kV
 transformer, first in the history of your Company in addition to
 receiving large orders for dry type transformers. As a result, the
 current order backlog stands at Rs.132 crores.
 
 Your Companys performance for the year was impacted significantly due
 to low production levels primarily due to customers project delays and
 site readiness. In addition, delays in funding of customer projects
 resulted in postponement of deliveries. Your Company is gearing up for
 growth and consequently is incurring higher fixed costs, resulting in
 loss tor the year under review.
 
 Your company has taken several steps to improve product quality and
 reduce material content ensuring compliant designs resulting in better
 performance of the transformer. Your Directors expect that the change
 in the brand of the product to PROLEC-GE will enable better product
 recognition and acceptance which will result in additional orders.
 
 DIRECTORS
 
 At the 19th Annual General Meeting, Mr Arun Srivastava and Mr M S
 Srinivasan retire by rotation and being eligible offers themselves for
 re-appointment.
 
 The above re-appointments form part of Notice of the forthcoming 19th
 Annual General Meeting and the respective resolutions are recommended
 for your approval.
 
 Profiles of these Directors as required by Clause 49 of the Listing
 Agreement are attached in the Notice of the 19th Annual General
 Meeting.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
 1956, your Directors confirm that:
 
 1) in the preparation of the annual accounts for the financial year
 ended 31st March, 2011 the applicable accounting standards have been
 followed along with proper explanation relating to material departures;
 
 2) the Directors had 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 at the end of the financial year 2010-11 and of the Profit
 & Loss Account of the Company for the year under review;
 
 3) the Directors had 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 preventing and detecting fraud and other
 irregularities;
 
 4) the Directors had prepared the accounts for the financial year ended
 31st March 2011 on a going concern basis.
 
 CORPORATE GOVERNANCE
 
 Your Company is committed to good corporate governance aligned with the
 best corporate practices.
 
 A separate Report on Corporate Governance along with Auditors
 Certificate on Compliance with the conditions of Corporate Governance
 as stipulated in Clause 49 of the Listing Agreement with the Stock
 Exchanges is provided as part of this Annual Report, besides the
 Management Discussion and Analysis.
 
 AUDITORS
 
 M/s B S R and Co, Chartered Accountants, the retiring Auditors, have
 expressed their willingness to be reappointed.
 
 FIXED DEPOSITS
 
 Your Company has not accepted any deposits and, as such, no amount of
 principal or interest was outstanding on the date of the Balance Sheet.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The information as prescribed under Section 21 7 (1)(e) of the
 Companies Act, 1956, read with the Companies (Disclosure of Particulars
 in the Report of the Board of Directors) Rules, 1988, is given in a
 separate annexure [Annexure I], which forms part of this Report.
 
 PARTICULARS OF EMPLOYEES
 
 Information in accordance with the provisions of sec. 21 7(2A) of the
 Companies Act 1956 read with Companies (Particulars of Employees) Rules
 1975, as amended forms part of this Report. However, as per the
 provisions of sec. 219(1)(b)(iv) of
 
 the Companies Act 1956, this Report and Accounts are being sent to all
 the members of the company excluding the Statement of Particulars of
 Employees under sec. 21 7(2A) of the Companies Act 1956. Any member
 interested in obtaining copy of the said statement may write to the
 Company Secretary at the Registered Office of the Company.
 
 ACKNOWLEDGEMENTS
 
 Your Directors express their appreciation of the continued cooperation
 of Governments and Government agencies, bankers, customers, suppliers
 and also the valuable assistance and guidance received from Xignux,
 General Electric Company and Prolec-GE and all the shareholders. Your
 Directors also wish to thank all employees for their contribution,
 support and continued cooperation during the year.
 
                             For and on behalf of the Board of Directors
                                          INDO TECH TRANSFORMERS LIMITED
 
                               Jorge Lozano             Jorge Sepulveda
                               Chairman                 Director
 
 Place: Chennai 
 Date : May 13, 2011