Dear Shareholder,
 
 We are on the threshold of a momentous journey towards a great future
 with Patel Integrated Logistics Ltd (PILL), the new creation with the
 merger of our two group Companies-Patel Roadways Ltd. and Patel
 On-Board Couriers Ltd.
 
 On behalf of the team at PILL, I have only two words to share with
 you-Thank You. Yes, thank you for showing confidence in your Company
 and most importantly in our management team in creating one of the
 largest multi-modal Logistics Companies in India-PILL.
 
 PILL today, is a nearly Rs.300 crore Logistics Company with a market
 cap of nearly 70 crore and is targeting to reach a turnover of Rs.500
 crore in the next 3 years. It has already started introducing a bevy of
 Logistics Support & Services throughout its network of nearly 450
 branches spread across the length & breadth of the country, delivering
 to over 2000 locations.
 
 In the second half of this current financial year, PILL launched its
 Premium Door to Door Express Delivery Service-Patel Retail, to take
 on the competition in the High Yielding Express Door Delivery Small
 Package Business. Patel Retail will be the focus area of the Company
 for next 2-3 years and we intend to capitalize on our existing
 strengths and capabilities to cater to this new retail business, in
 view of the booming retail industry in todays emerging market place.
 Your Company has plans to achieve nearly Rs.50-75 crore sales before
 the end of year 2010 in this product alone. The task is challenging,
 and we are committed to achieve this target in the years to come. Your
 Company plans to invest close to Rs.15-20 crore in Patel Retail alone,
 towards upgrading infrastructure i.e. Fleet, Technology, Warehouses and
 Offices, in almost all locations countrywide to equip its smooth
 functioning in this High Yield Business Segment. The up-gradation will
 not only add to our customers advantage, but will also lend us an edge
 over competition.
 
 I would like to add; that the future belongs to the organization that
 can induct, build and retain talents at all levels, with a high degree
 of flexibility, towards organizational advantage. Consistent
 performance and focus at all levels can only help an organization to
 reach newer milestones. We truly believe that right people can turn a
 work place into a great institution, equally for its customers,
 employees and shareholders.
 
 We would like to reiterate that we have great plans to make our
 organization (PILL), into one of the most diversified and profitable
 Logistics Ventures by the year 2010 in the Indian market place.
 International Airfreight, On-Board Couriers, Air Cargo Consolidation,
 Surface Transportation (LTL-Less Than Truck Loads and FTL-Full
 Truck Loads), Warehousing and the recently launched Patel Retail, our
 Flagship Product. Yes, we are into the entire spectrum of Logistics
 Services today.
 
 We look forward for our Customers, Employees & Shareholders support for
 a collective growth in all our Asset Classes; just as we have seen
 ourselves grow together in the past year i.e. Together.
 
 How big or how great ones vision is, can only be determined by the
 success and results achieved, by an organisation and its people or else
 it remains just a dream or figment of ones imagination. Yes, from a
 mere trucking Company, we have taken a giant leap to the Integrated
 Logistics arena and our vision is to take your Company to greater
 heights as a Complete Logistics Solutions Company.
 
 Thank you once again for your warm-hearted support.
 
                                                       With best wishes,
                                                             Ariff Patel
                                                 Executive Vice-Chairman
 6th November, 2006.
 
 Dear Shareholders
 
 I take this opportunity to update you on the recent happenings which
 are relevant to you as a stakeholder of the Company.
 
 The Board of Directors, at their meeting held on 31st October, 2006,
 have allotted 53,86,612 equity shares (new equity shares) of the
 Company to the persons who were the shareholders of Patel On-Board
 Couriers Ltd. (POBCL) as on the Record Date i.e. 27th October, 2006.
 These new equity shares are allotted in the ratio of 23 new equity
 shares of the Company for every 20 equity shares held in POBCL, as
 mentioned in the Scheme of Amalgamation of POBCL with the Company.
 
 Applications for the listing of the new equity shares are being made to
 the stock exchanges where the shares of the Company are listed. These
 are :
 
 a) Bombay Stock Exchange Limited
 
 b) Ahmedabad Stock Exchange Limited
 
 c) Madras Stock Exchange Limited
 
 d) The Delhi Stock Exchange Association Limited
 
 e) The Calcutta Stock Exchange Association Limited
 
 The Company will be issuing physical share certificates comprising of
 new equity shares to those share holders who held equity shares of
 POBCL in physical form as on the Record Date while new equity shares of
 shareholders who held equity shares of POBCL in demat form will be
 directly credited to their respective demat accounts, under intimation
 to them. The share certificates will be posted and the equity shares
 will be credited to the respective demat accounts of shareholders only
 after listing of shares on the stock exchanges.
 
 The equity share certificates comprising of new equity shares will be
 issued in the new name of the Company i.e. `Patel Integrated Logistics
 Limited. The shareholders of the Company, who hold the equity share
 certificates in the old name of the Company i.e. in the name of `Patel
 Roadways Limited, are being issued stickers with the new name of the
 Company which they have to affix on the share certificates held by
 them.
 
 We expect to finish the process of listing of shares and posting of
 share certificates/credit of shares before we meet at the ensuing
 Annual General Meeting scheduled to be held on 15th December, 2006.
 
 The Company has come back on the dividend paying list from this year.
 Though the beginning is modest, as the Company had to deploy sizable
 funds on its expansion plans, we are committed to strive our best to
 keep the Company on the dividend paying list. The Board of Directors
 have recommended the dividend for the year ended 31st March, 2006 on
 the increased share capital. This means that the shareholders of
 erstwhile POBCL will get the dividend recommended by the Board of
 Directors on the new equity shares of the Company allotted to them,
 when it is declared at the ensuing Annual General Meeting.
 
 I welcome the shareholders of erstwhile POBCL who have now become
 shareholders of Patel Integrated Logistics Limited. Our family of
 stakeholders has almost doubled in size with their advent.
 
 I also take this opportunity to thank the stakeholders for their
 overwhelming support to the ideologies and perceptions of the
 management which was amplified in their total approval of the Scheme of
 Amalgamation of POBCL with the Company.
 
                                                       Thanks & Regards,
                                                         (M. L. UKIDAVE)
                                                 Chief Financial Officer