To The Members,
 
 The Directors are delighted to present the 30th Annual Report on the
 business and operations together with Audited Balance Sheet and Profit
 & Loss Account of your Company for the year ended March 31, 2011.
 
 FINANCIAL RESULTS
 
 Your Company''s performance during the year as compared with the
 previous year is summarized below:
 
                                                        Rupees in Lacs
 
 Particulars                                      2010-11      2009-10
 
 Sales (Excluding Excise Duty)                  34,080.47    22,702.74
 
 Gross Profit (GP)                               3,002.16     1,283.51
 
 (-) Finance Expenses                               51.95       136.10
 
 (-) Depreciation                                  274.40       270.68
 
 Profit Before Taxation (PBT)                    2,675.81       876.73
 
 (-) Provision for Taxation & Deferred Tax         885.97       199.25
 
 Profit After Tax (PAT)                          1,789.84       677.48
 
 ( ) Balance in the P&L A/c b/f                    185.07        69.32
 
 Profit for Appropriation                        1,974.91       746.80 
 
 Appropriation :
 
 Proposed Equity Dividend :
 (For 2009 - 10,Include Interim 
 Dividend of Rs.116.32 Lacs)                       817.90       465.26
 
 Tax on Dividend                                   132.68        28.72
 
 Transfer to General Reserve                       179.43        67.75
 
 Balance retained in P & L Account                 844.91       185.07
 
                                                  1974.91       746.80
 
 DIVIDEND
 
 Keeping in view of the remarkable Financial Performance during the year
 under review, as also the philosophy of your Company to reward its
 shareholders, the Board of Directors are pleased to recommend a
 Dividend of 60% (Rs.6/- per Equity Share) for the Financial Year
 2010-2011 as against 40% (including 10% Interim Dividend) for the
 corresponding last year. The total amount of Dividend proposed to be
 distributed and tax thereon aggregates to Rs. 950.58 Lacs (including
 Dividend Tax) as against Rs.493.98 Lacs. The Dividend payout ratio
 comes to 53%.
 
 A sum of Rs. 179.43 Lacs has been transferred to the General Reserve of
 the Company. This reaffirms the inherent financial strength of your
 Company.
 
 BUSINESS PERFORMANCE
 
 India’s economic scenario has passed through a systematic transition
 from being a closed to an open economy since the beginning of economic
 reforms in 1991. These reforms have had a far-reaching impact and have
 unleashed its enormous growth potential. Today, the Indian economy has
 grown to become a trillion dollar economy with a largely
 self-sufficient agricultural sector, a diversified industrial base and
 a stable financial and services sector.1
 
 After the gloom of global economic crisis, Indian economy has well
 recovered at a steady pace during the last Financial Year (FY) 2010-11
 2 and has so far vastly exceeded expectations. Apparently, the Gross
 Domestic Product (GDP) is estimated to have grown at 8.60% during the
 FY 2010-11 (in real terms) and further is likely to touch the figure of
 9.00% during the next FY 2011-12.3
 
 Consequently, due to strong linkages with the economy, introduction of
 the liberalization policy, various tax reliefs by the Government of
 India and rapid growth in industrialization process in recent years,
 the Indian Automobile Industry has made a remarkable growth. It has
 recorded a noteworthy Production Growth of 27%, as compared to the last
 year. India is expected to become the world''s 7th largest automobile
 market by 2016 and third largest by 2030. Further, the total sales are
 expected to reach US$ 120 -160 Billion by 2016 and the investment
 requirement is estimated to be US$ 35-40 Billion.4
 
 1.  Book on Doing Business in India by Ernst & Young, India (E&Y)
 
 2.  Economic Survey 2010-2011
 
 3.  Dun & Bradstreet Sectoral Outlook Report 2011-12
 
 4.  Book on Doing Business in India by Ernst & Young, India (E&Y)
 
 Surge in the automobile Industry since the nineties has also led to
 robust growth of the auto component sector in the country. In tandem
 with the Industry trends, the Indian auto component Sector has shown
 great advances in recent years in terms of growth, spread, absorption
 of new technologies and flexibility. Indian auto component industry has
 seen major growth with the arrival of world vehicle manufacturers from
 Japan, Korea, U.S.A and Europe. Today, India is emerging as one of the
 key auto components center in Asia and is expected to play a
 significant role in the global automotive supply chain in the near
 future. As per ACMA Vision 2020 for India the Indian Auto Component
 Industry is expected to grow beyond US $ 110 billion by 2020 from the
 current level of around US $ 26 Billion in 2010-11.
 
 In the above backdrop, during the year under review your Company has
 registered a remarkable growth of 50% in top line which is much above
 the industry growth, by achieving a Sales Turnover (Net of Excise) of
 Rs. 34,080.47 Lacs (on Standalone Basis) as against Rs. 22,702.74 Lacs
 (on Standalone Basis) in the corresponding previous year, much above
 the industry growth.
 
 The Profit Before Tax (PBT) reported for the current year increased to
 Rs. 2,675.81 Lacs (on Standalone Basis) from Rs. 876.73 Lacs (on
 Standalone Basis) as compared to previous year, resulting 205% rise, as
 compared to the previous year.
 
 On Consolidated Basis, your Company registered a growth of 49% during
 the year under review by achieving a Sales Turnover (net of excise) of
 Rs. 62,669.15 Lacs as against Rs. 42,076.54 Lacs in the corresponding
 previous year.
 
 On consolidated basis your Company has recorded a Profit Before Tax
 (PBT) of Rs. 5,482.56 Lacs for the year under review as against Rs.
 2,907.33 Lacs as compared to the corresponding previous year,
 registering a growth of 89%.
 
 SUBSIDIARY COMPANY
 
 100% SUBSIDIARY- LUMAX DK AUTO INDUSTRIES LIMITED (LDK)
 
 During the year under review LDK has reported an impressive growth of
 49% by recording net sales of Rs 28,385.78 Lacs as against Rs.19,112.66
 Lacs as compared to the previous year. The Profit after Tax has also
 grown by 43% to Rs. 2,731.40 Lacs from Rs. 1,903.54 Lacs over the
 previous year.
 
 The Gear Shifter Division has received prestigious Gold Award for
 Design & Development for the year 2010-11 from the customer Maruti
 Suzuki and best localization supplier award from Toyota Kirloskar for
 its small car ETIOS.
 
 JOINT VENTURE COMPANY
 
 LUMAX CORNAGLIA AUTO TECHNOLOGIES PRIVATE LIMITED (LCAT)
 
 During the year under review LCAT has reported an impressive growth of
 24% by recording net sales of Rs 889.50 Lacs as against Rs.714.89 Lacs
 for the previous year. The Profit after Tax has also grown by 23% to
 Rs. 60.31 Lacs from Rs. 49.15 Lacs over the previous year.
 
 Presently, LCAT is supplying Air Intake System (AIS) to two leading
 automobile manufactures in India viz. TATA & FIAT and during the year
 it has also started supplying AIS to two new world renowned Automobile
 manufactures viz. VOLKSWAGEN & SKODA, thereby making itself a single
 source for all the new programs. LCAT has also received orders from
 General Motors India for the development of AIS and CAC Ducts for a new
 Commercial Vehicle program, from FIAL for development of Oil Vapor
 separator and from Piaaggio, India, RFQ for Air Intake System for Vespa
 Scooter.
 
 Further, it has initiated discussion with Tata Motors for development
 of complete Exhaust Systems for the Nano Europa & Nano Diesel programs.
 A formal LOI is expected very soon.
 
 LCAT has a VISION - 2015, to become a full service provider for
 Automotive Exhaust & Air Intake Systems with the application of
 innovative and cost effective solutions that will add value to the
 customers as well as to the organization.
 
 During the year the Joint venture partners have proposed to make an
 investment of Rs. 40 Mn in the 3D Blow Moulding Project for Intake &
 CAC Ducts in phased manner by way of equity, out of which Rs. 20 Mn has
 already been invested by the Joint Venture Partners in January, 2011.
 LCAT has already secured orders for the Intake Ducts from TATA, FIAT,
 VW & GM.
 
 DIRECTORS
 
 In accordance with the provisions of Companies Act, 1956 and Articles
 of Association of the Company Mr. Sandeep Dinodia and Mr. D.D.Gupta,
 Directors are retiring by rotation at the ensuing Annual General
 Meeting and being eligible, offer themselves for re-appointment.
 
 Your Directors recommend the re-appointment of the above said Directors
 at the ensuing Annual General Meeting.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act 1956, the
 Directors state:
 
 (i) That in the preparation of the Annual Accounts for the Financial
 Year ended March 31, 2011, the applicable Accounting Standards have
 been followed along with proper explanation relating to material
 departures;
 
 (ii) That 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 at the end of the financial year and of the
 profit or loss of the company for that period;
 
 (iii) That 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) That the Directors have prepared the Annual Accounts on a going
 concern basis.
 
 FIXED DEPOSITS
 
 During the year under review the Company has not accepted any Deposit
 under Sections 58A and 58AA of the Companies Act, 1956 read with the
 Companies (Acceptance of Deposits) Rules, 1975.
 
 AUDITORS
 
 M/s D. R. Barve & Co, Chartered Accountants, having its Firm
 Registration Number FRN 101034W, are proposed for re-appointment as
 Statutory Auditors of the Company, from the conclusion of the ensuing
 Annual General Meeting till the conclusion of the next Annual General
 Meeting. They have given their consent to act as Auditors of the
 Company and have further confirmed that their appointment would be in
 conformity of the provision of Section 224(1B) of the Companies Act,
 1956. The Board recommends their re-appointment for the approval of the
 Members in the ensuing Annual General Meeting.
 
 During the year, all the recommendations of the Audit Committee were
 accepted by the Board. Hence there is no need for disclosure of the
 same in this Report.
 
 CONSOLIDATED FINANCIAL STATEMENT
 
 The Consolidated Financial Statements of the Company are prepared in
 accordance with the Accounting Standard, Companies Act and all other
 laws for the time being in force (if applicable) and the same forms
 part of this Annual Report.
 
 Further, in accordance with the Circular issued by Ministry of
 Corporate Affairs (MCA), granting the general exemption from the
 provisions of Section 212 of the Companies Act, 1956, your Company is
 not attaching the Annual Accounts for the year ended 31st March 2011
 and other related documents of its subsidiary Company Lumax DK Auto
 Industries Ltd (LDK) with this Annual Report. Any shareholder
 interested in obtaining a copy of the Annual Accounts of LDK may write
 to the Company Secretary at the registered office of the Company and
 the company undertakes to supply the same along with all related
 detailed information. In addition, the Company shall also keep the same
 Annual Accounts for inspection by any Shareholders in the registered
 office of the Company and LDK.
 
 MANAGEMENT DISCUSSION & ANALYSIS REPORT
 
 Pursuant to the provisions of Clause 49 of the Listing Agreement,
 Management Discussion & Analysis Report is annexed as part of this
 report separately as Annexure - A.
 
 OTHER INFORMATION
 
 Disclosure of information regarding Conservation of Energy, Research &
 Development, Technology Absorption and Foreign Exchange Earnings and
 Outgo etc. under Section 217(1)(e) of the Companies Act, 1956, is
 annexed separately as Annexure - B.
 
 Information of Particulars of Employees as required under Section
 217(2A) of the Companies Act, 1956 read with the Companies (Particulars
 of Employees) Rules, 1975 forms an integral part of this report. As per
 the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the
 Report and Accounts are being sent to the shareholders of the Company
 excluding the Statement of Particulars of Employees under Section
 217(2A) of the Companies Act, 1956. Any shareholder interested in
 obtaining a copy of such statement may write to the Company Secretary
 at the registered office of the Company and the same is also available
 for inspection in accordance with the provision of Section
 219(1)(b)(iv) of the Companies Act, 1956.
 
 GROUP
 
 Pursuant to the intimation from the Promoters, the names of the
 Promoters and entities comprising ''Group'' are disclosed in the Annual
 Report as Annexure C, for the purpose of the SEBI (Substantial
 Acquisition of Shares and Takeovers) Regulations, 1997.
 
 CORPORATE GOVERNANCE
 
 The report on Corporate Governance together with the Auditor''s
 Certificate regarding the Compliance of conditions of Corporate
 Governance as stipulated in Clause 49 of the Listing Agreement is
 annexed and forms part of this Annual Report as Annexure D.
 
 ACKNOWLEDGEMENT
 
 The Directors wish to place on record their sincere thanks to all its
 highly valued customers, its Technical Collaborators, Joint Venture
 Partners, all other business partners, all the Shareholders, Financial
 Institutions, Banks, Vendors and various Government agencies for their
 continued support and patronage.
 
 The Board would also like to acknowledge the co-operation & commitment
 rendered by all the associates & employees of the Company for their
 unstinted support shown during these challenging times.
 
                           For and on behalf of the Board of Directors
 
                                                           D. K. JAIN 
                                                             CHAIRMAN
 
 Place : Gurgaon 
 Dated : 27th May, 2011