Dear Shareholders
 
 The Indian consumer electronics industry has been growing at a
 double-digit growth rate since past few years. Higher disposable
 income, increased product awareness, affordable pricing, and shift in
 lifestyles have together been instrumental in changing the amount and
 pattern of consumer spending; thereby, resulting in strong growth in
 the consumer electronics industry. But still, the consumer electronics
 goods, like refrigerators, televisions and air conditioners have low
 penetration in the country, leaving vast room for future growth.
 
 According to research report by Booming Consumer Electronics Market in
 India, the Indian consumer electronics industry will grow at a CAGR of
 around 18% during 2011-2014. During this time period, we expect that
 LCD TV will capture majority of the television market share as it will
 replace Color televisions market to a large extent.
 
 Moreover, we observed that the air-conditioner(AC) segment is one of
 the most important product segments driving the overall growth of the
 Indian home appliances market introduction of innovative features and
 technology coupled with the expansion of distribution network is
 helping the market to grow at a faster rate. Besides this, washing
 machine and microwave overt is becoming a high growth segment in the
 consumer electronics market in India. Your Company as a future strategy
 is looking to expand in Southern part of India. Your Company has paid
 an advance for land which is close to Chennai auto & electronic, hub as
 a part of the future growth strategy.
 
 Further, many International brands are increasing their presence En
 India''s lucrative consumer electronics industry by establishing their
 manufacturing base in India which offers an additional opportunity for
 your company to expand its operations hence we have invested in our new
 manufacturing plants to boost the production capacity to meet the
 Industry requirements as an OEM supplier. The year 2011 proved to be a
 bad year for all global markets and effects of global economic
 recession were also felt in India. The impact of economic stress has
 unfortunately carried over into the year 2012. The Indian currency took
 a severe beating and has devaluated quite substantially. I am confident
 that instability will end soon and the Indian economy will bounce back.
 During the year the company lost a major share of sales revenue on
 account of no new government tender business which had contributed
 around 50% of sales revenue of the company during the previous two
 years. Also the sales revenues planned as part of its expansion
 programme could not be fully generated due to problems in ramp up of
 new lines which has now stabilised and slowdown in sales of our major
 customers. The additional finance cost and depreciation on account of
 huge capital investments coupled with foreign exchange fluctuation on
 account of currency fluctuation during the second half of the year
 resulted into losses.
 
 The Company is under process of investigation by SEBI and SEBI has
 passed an ad interim ex-parte Order WTM/PS/IVD-ID5/42/2011/DEC dated
 28.12.2011 prohibiting the company to raise further capital from
 market, debarring the company and its director from dealing
 insecurities market and asking the Company to call back the ICD and
 deposit the same together with the balance amount lying in the IPO
 account in an Escrow account. The company has replied to the above
 referred ad interim ex-parte order vide its letter dated 10th April
 2012.
 
 Keeping in mind our past experiences your company has already started
 diversifying into other fields like Automobile, Lighting and FMCG
 industry. These industries also hold immense potential for increasing
 our plastic moulding and electronics business and these industries are
 also growing at a very healthy rate. We have already started some
 business for these industries and our endeavour is to aggressively grow
 this business into a major revenue stream for your company.
 
 As consumer electronics industry will also grow at a sustainable rate,
 we are making an endeavour to be the leading OEM supplier to the
 world''s best known brands in India by adding new customers and new
 products and add to the wealth for all the stakeholders.
 
 Let me put on record my appreciation for all my colleagues, staff,
 customers, clients, vendors, suppliers, business partners,
 shareholders, stakeholders, civic and government agencies who have been
 with us since inception of the business and have supported us all these
 years
 
                                                              Sd/-
 
                                                          Chairman
 
 14th August 2012