Dear Shareholders,
 
 During 2011-12, our Consolidated sales and profits were at record
 levels of Rs1204 crores and Rs42 crores respectively. Our Return on
 Capital Employed was at a healthy 30.68%. We are pleased to report an
 increase in the company''s dividend per share to Rs3.50 from Rs2 in the
 previous year. The increase in dividend reflects our confidence in our
 ability to generate continued strong cash flows.
 
 The year under review was a difficult one for the global economy,
 marked by uncertainties. The Indian economy witnessed a slow down and
 interest rates hardened. Sales of commercial vehicles, at 809,000
 units, grew 18% during 2011-12, as against 29% in the previous year.
 Sales of light commercial vehicles, at approx. 460,000 units, continue
 to outpace that of medium and heavy vehicles. We continue to strengthen
 our relationships with existing customers
 
 even as we develop newer relationships winning exciting new business
 from global commercial vehicle giants entering the Indian markets. We
 are honored to be chosen as the sole supplier for Daimler''s Bharat Benz
 range of trucks.
 
 Given the weak macro factors, growth in commercial vehicles is likely
 to be tepid in the current year. With the slowdown in industrial
 activity, medium and heavy commercial vehicles will see a poor growth
 in the near-term even though light commercial vehicles will maintain
 healthy sales momentum, aided by higher hinterland goods transport.
 
 For Jamna Auto, changes in the market environment symbolize opportunity
 and we are actively seizing the same. During 2011- 12, we ramped up
 sales in the After-Markets - India/Export by 37%. Historically, our
 efforts in the After-Markets - India/Export have been restricted by
 availability of capacity. This situation has changed now. With the new
 production lines at Yamuna Nagar already having come up in stream in
 January 2012 and Malanpur coming on stream in September 2012, our
 production capacity for leaf springs and parabolic springs will be 50%
 higher than the peak production of 144,000 tonnes reached in 2011-12.
 With this expansion, we will be the second largest player in the world.
 Our undisputed market leadership with the OEMs (Original Equipment
 Manufacturers) together with our multi-location plants and distinct
 technological advantage gives us a solid foundation upon which to build
 and grow in the After-Markets - India/Export. We have set in motion an
 aggressive plan to increase our presence in the After-Markets -
 India/Export, which will substantially improve future revenues and
 earnings.
 
 We continue to work closely with our customers partnering with them to
 provide total suspension solutions and remain focused on doing what is
 right by the customer. Sales of value-added parabolic springs during
 2011-12, were 31% higher than in the previous year.
 
 We have made significant progress in implementing our strategy to
 expand our product range and move up the value-chain. We have signed an
 agreement with Ashok Leyland for supplies of Lift Axles for its
 commercial vehicles, which has commenced from June 2012. We expect a
 healthy growth in this segment in the coming years. We are undertaking
 trial runs of Air-Suspension springs fitted in buses and critical
 feedback is being gathered and processed to further our entry into this
 space.
 
 On the export front, we have intensified efforts at strengthening our
 international activities and see significant growth opportunities
 available to us. Also, our strong local relationships with global OEMs
 offer exciting opportunities to serve them internationally in the
 future.
 
 Our capital expenditure program relate primarily to our continued
 investments to expand our capacities and to further improve our cost
 structure and our technical/product development capabilities.
 
 Looking ahead, we expect our top customer to account for less than 33%
 by 2015. By then, we aim to expand the Non-OE contribution to sales
 to 33% and also to bring down the share of tapered leaf-springs to 65%
 of sales. We will benefit immensely from our broader business platform,
 our expanded presence in higher margin activities and our sustained
 efforts at lowering costs and improving our operating structure. Unlike
 in the past, when we were hit hard during periods of slowdown in the
 domestic commercial vehicle market, we are now confident of comfortably
 riding through challenging times. We are best positioned to take
 advantage of the longer term growth in demand, which will inevitably
 happen.
 
 As we grow our business and position the company for future growth and
 profitability, we will be mindful of our financial objectives to ensure
 that our net block is funded out of net-worth, to consistently generate
 strong cash flows, to earn a ROCE of 33% and to distribute 33% of
 profits as dividends to shareholders.
 
 We are excited about our long-term future. We have a clear leadership
 position in our core business and have a committed, talented and
 motivated team to take us to the next level of performance. Before I
 end, I would like to thank our employees who have made a significant
 contribution to our success. I would also like to thank our customers,
 collaborators, bankers, suppliers, business partners and shareholders
 for their continued support and confidence in our Company.
 
 Yours Sincerely
 
 Bhupinder Singh Jauhar 
 
 Chairman