Dear Fellow Shareholders,
 
 Indian economy is growing at a rapid pace having recorded a GDP growth
 of around 8.5% for the year 2010-11. It augurs well for the Indian
 industry.
 
 Inflation remains a cause of worry. Commodity and crude prices
 increased steeply during the year which had spiraling affect on the raw
 material costs across the industry. Recent Government policy
 initiatives have led to increase in the interest costs. As a result,
 industrial production slowed down to some extent in the second half of
 the year.
 
 The automotive sector has performed well during the year with an
 overall growth of 27%. Production of Truck/Bus increased by 38% and
 that of Passenger Car by 28%. This growth rate has resulted in robust
 demand for tyres.
 
 It is a matter of satisfaction that JK Tyre has recorded 33% growth in
 its Sales Turnover. Profitability was affected due to high raw material
 costs which had to be absorbed by the Company, as the tyre prices 
 have not kept pace which such steep cost increase.
 
 JK Tornel, Mexico, a wholly owned subsidiary of your Company also
 recorded 29% growth in sales and has contributed to the Net Profit of
 the Company.
 
 JK Tyre, the pioneer in radials, continues to maintain its leadership
 in the Truck/Bus radial segment. Truck radialisation in India is
 catching up fast and is expected to accelerate further in the years
 ahead. Your Company is making large investments to further enhance its
 Truck/Car radial capacities.
 
 Research & Technology are the main stay of your Companys leadership.
 The Company has made substantial investment in that regard, to further
 cement its leadership in the Tyre industry.
 
 I would like to thank all our stakeholders i.e. channel partners,
 suppliers, financial institutions, Banks and above all our people for
 their whole hearted support in our endeavours.
 
 With your support, dear Shareholders, JK Tyre will continue to make
 strides and achieve still greater heights in the times ahead.
 
                                                   Best wishes,
 
                                              Hari Shankar Singhania 
                                                   Chairman