Dear Fellow Shareholders,
 
 I am glad to present you the Annual Report for the year 2011 -12. As
 you would see, during the year under review, your Company has achieved
 turnover of Rs.871.74 crores up from turnover of Rs.823.87 crores in
 2010-11, with profit after tax of Rs.9.57 crores as against Rs. 2.11
 crores in 2010-11.
 
 The overall growth was possible on account of concerted efforts at
 reducing non productive costs and continuous monitoring and improvement
 of efficiencies of the operating processes and procedures.
 
 We continue to put in efforts to shore up our efficiencies, by
 improving Inventory Management, reducing procurement prices for raw
 materials, improving turnaround time for order booking, improving
 quality policies and practices and by optimizing generally all other
 costs, so as to be competitive.
 
 Power supply continues to be a basic issue for India today. With large
 deficit continuing, the Country has ambitious plans to produce more and
 more power. This includes Power Generation, Transmission &
 Distribution. All these areas are being progressively liberalized for
 private investment. Power sector will be our major customer for
 Transformers and allied products. We are progressively going for both
 higher capacity and higher kV class ratings in Power Transformers.
 
 Nuclear Power sector is on the rise in India and India now envisages
 increasing the contribution of nuclear power to overall electricity
 generation capacity. As you are aware we are manufacturing special
 Motors for Nuclear Power Corporation of India.
 
 We would also benefit from the huge investment that is going to be made
 in Infrastructural sector.
 
 We have also been increasing supply of propulsion systems for the
 Electric Cars made by Mahindra Reva.
 
 We have initiated several measures across board - cutting costs,
 reducing overheads and taking an overall disciplined approach,
 rationalizing and streamlining operations to enhance efficiency. The
 sales organization has been recast to enhance the Company''s reach and
 our product lines are being aligned for market demand and
 profitability. We are laying more stress on performance today than ever
 before and likewise we are more proactive now than before.
 
 We are trying to reach the customers in every nook and corner of the
 Country and for the purpose expanding our reach and service network.
 
 We are also looking at increasing our presence in foreign markets.
 
 With the implementation of SAP across all our manufacturing units we
 have benefitted from the synergies of a common platform for a smooth
 operation across the organization.
 
 We are more confident today to take the future. We are well poised and
 prepared to shape our future by-coordinated strategy. By our technology
 and well spread coordinated team work we will meet our customer
 aspirations as the markets evolve having challenging demands on us. The
 global business scenario is hazy but having focused on high growth
 areas and extending the portfolio of our customers and by exploiting
 our strengths and by diversifying we will be strengthening our position
 in the market place.
 
 I am sure with the efforts being put in your Company will take its
 rightful place in the Industry.
 
 Your Company continues to be led by strong and motivated human
 resources. The Company believes in training and development of its
 employees for improving their skills, keeping them abreast of the
 evolving international technologies, to meet the emerging challenges in
 the market place and rising customer expectations. We are focused on
 development of managerial skills to ensure availability of top class
 talent to meet the ambitious growth and expansion plans of the Company.
 
 On behalf of the management team, I wish to reiterate that we will do
 all that which is required to meet the expectations of all stakeholders
 and the community we live in.
 
 Vijay R Kirloskar
 
 Chairman