The members of PIX Transmissions Ltd.,
 
 The directors are pleased to present the TWENTY NINTH ANNUAL REPORT and
 the Audited Statement of Accounts for the year ended 31st March 2011,
 together with notice of Annual General Meeting.
 
 Financial Results
 
 Given below is the financial performance of the Audited Accounts for
 the year ended 31st March 2011: 
 
                                                      [Rs. in lacs] 
 
 Particulars                                     As on          As on
 
                                            31.03.2011     31.03.2010
 
 Sales                                        23803.29       17898.72
 
 Other income                                     8.03          20.00
 
                                              23811.32       17918.72
 
 Profit before Depreciation                    2613.24        1824.41
 
 Depreciation                                  1995.86        1466.69
 
 Profit before tax after
 depreciation                                   617.38         357.72
 
 Less: Provision for taxation
 
 a) Current year                                140.00          61.00
 
 b) Deferred Tax Liability                      113.04         227.09
 
                                                364.34          69.63
 
 Less:
 
 Wealth Tax paid                                     -           0.36
 
 ¦ Capital Redemption Reserve       647.50
 
 Proposed Dividend                   96.94
 
 Tax on Dividend                     16.46      760.90
 
 Total                                         (396.56)         69.27
 
 Balance of Profit Brought down                1172.69        1103.42
 
 Amount available for Appropriation             776.13        1172.69
 & carried to Balance Sheet 
 
 The Company''s Sales & Income during the Financial Year
 2010-11 computed of the following: 
 
                                                      [Rs. in lacs] 
 
 S 
 No.  Particulars                     Current          Previous
                                       Year              Year
 
 1.  Belts                           16115.15        13,114.10
 
 2.  Hoses                            6367.61         3,413.82
 
 3.  End Fittings                      112.90            93.71
 
 4.  Other items                      1207.63         1,277.09
 
                                     23803.29         17898.72
 
 Dividend
 
 The Directors are pleased to announce a dividend @ 7.5% for the year
 ended 31st March, 2011. However in order to conserve the resources, the
 directors have not proposed dividend on all promoter''s holding of
 preference shares, which will be proposed in coming years.
 
 Increase in Share Capital
 
 The Directors and Promoters were allotted equity shares on conversion
 of convertible warrants during the year under review. Consequent to the
 above, the issued, subscribed and paid up share capital of the company
 is 1,29,25,200 Equity Shares of Rs.10/- (Previous Year 1,16,85,200)
 each aggregating to Rs. 12,92,52,000/- (Previous Year Rs.
 11,68,52,000/-) as on 31.03.2011.
 
 Proceeds of Preferential Issue of warrants
 
 The company issued shares and warrants on preferential basis to
 Promoters and Promoters group. The company has mobilized total funds to
 the extent of Rs.372 Lacs (Previous year Rs.343.50 Lacs), were deployed
 towards expansion of manufacturing facilities and for working capital.
 
 Issue of 647500 6% Cumulative Convertible Preference Shares of Rs.
 100/-
 
 During the year under review company has converted 647,500 6%
 Redeemable Cumulative Preference Shares out of 11, 17,100 6% Redeemable
 Cumulative Preference Shares of Rs. 100/- each issued to the promoters
 of the company into 6% Cumulative Convertible Preference Shares of
 Rs.100/- each which was approved by the members at their duly convened
 and constituted extra-ordinary general meeting held on 22nd September,
 2010.
 
 Joint Ventures
 
 1. PIX Europe Limited, U.K. -Joint Venture
 
 PIX Europe Limited promoted to carry on business of PIX Products and
 other products in the market of European Countries, Germany and China.
 
 2. PIX QCS Limited, Ireland-Joint Venture
 
 PIX QCS Limited promoted to carry on business of PIX Products and other
 products in the market of Ireland.
 
 Subsidiaries
 
 The subsidiaries of the company during the year under review are given
 below:
 
 1.  PIX South America Importacao E Exportacao De Correias E Mangueiras
 Ltda, Brazil: PIX South America Importacao E Exportacao De Correias E
 Mangueiras Ltda promoted to carry on business of PIX Products in the
 market of Argentina, Chili, Brazil & Peru etc.The joint venture
 agreement with the subsidiary company has been revoked with effect from
 15th April, 2011.
 
 2.  PIX Middle East FZC, UAE: PIX Middle East FZC promoted to carry on
 business of PIX Products in the market of Middle East Countries.
 
 As per Section 212 of the Companies Act, 1956, it is required to attach
 the Directors'' Report, balance sheet and Profit and Loss account of
 subsidiaries. The Ministry of Corporate Affairs, Government of India
 vide its circular No. 2/2011 dated February 8, 2011 has provided an
 exemption to companies from complying with section 212 provided such
 companies publish the audited consolidated financial statements in the
 annual report. Accordingly the Annual Report 2010-11 does not contain
 the financial statements of subsidiaries. The audited annual accounts
 and related information of our subsidiaries, where applicable will be
 made available upon request.  These documents will also be available
 for inspection during business hours at our Registered Office at
 Nagpur. A statement in pursuance of Section 212 is attached to this
 Report.
 
 Corporate Governance:
 
 Pursuant to clause 49 of the Listing Agreement with the Stock Exchange,
 Management Discussion and Analysis Report, Corporate Governance Report
 and Certificate on Corporate Governance are annexed to this report.
 
 Directors'' Responsibility Statement
 
 Pursuant to section 217(2AA) of the Companies Act, 1956, The Board of
 Directors report that:
 
 I) In the preparation of the annual accounts, the applicable Accounting
 Standards have been followed along with proper explanations relating to
 material departures, and there are no any material departures.
 
 ii) Accounting Policies have been selected and applied consistently and
 the judgments and estimates made are reasonable and prudent so as to
 give a true and fair view of the statement 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) Proper and sufficient care has been taken 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 regulation.
 
 iv) The Annual Accounts have been prepared on a going concern basis.
 
 Public Deposits
 
 The Company has not invited and accepted deposits from the public
 during the financial year ended 31 st March 2011.
 
 Insurance
 
 The assets of the Company are adequately insured against the risk of
 fire and other risks.
 
 Particular of Employees
 
 Under the provision of Section 217(2A)of the Companies Act, 1956 read
 with Companies (Particulars of Employees) Rules, 1975 as amended, the
 names and other particulars of employees are set out in the Annexure to
 the Directors'' Report.  However having regard to the provisions of
 Section 219(1) (b) (IV) of the Companies Act, 1956, the annual report
 excluding the aforesaid information is being sent to all the members of
 the company and others entitled thereto. Any member interested in
 obtaining such particulars may write to the company secretary at the
 registered office of the company.
 
 Directors
 
 To appoint Directors in place of Mr. Sukhpal Singh Sethi, Mr. Sonepal
 Sethi, Mr. Joe Paul, Mr. Haresh Eidnani and Mr. Darshan Singh Chadha
 directors of the company who retire by rotation and being eligible
 offer themselves for re-appointment.
 
 To appoint Mr. Rishipal Sethi who is a director of the company as a
 Joint Managing Director of the Company With effect from 01.08.2011.
 
 Auditor
 
 M/s S. C. Bandi & Co. Chartered Accountants, Auditors of the Company,
 retire at the conclusion of the ensuing Annual General Meeting and
 being eligible offer themselves for re-appointment. Members are
 requested to re-appoint statutory auditor and fixed their remuneration.
 
 Auditors'' Report
 
 The notes forming part of the accounts are self-explanatory and do not
 call for any further clarifications under Section 217(3) of the
 Companies Act, 1956.
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
 
 A. Conservation of Energy
 
 Company is always looking towards every step in the direction of
 conservation of energy, mainly from following major energy sources:
 
 1) Water
 
 2) Steam
 
 3) Electricity
 
 1) Conservation of Water
 
 1.1. By setting up a new sewage treatment plant & upgrading the
 effluent treatment plant, treated water is used for gardening, floor
 washing, toilets etc which resulted in reduction of fresh water
 consumption.
 
 1.2.  Installation of cooling towers for re-circulation of water used
 for machines cooling, conserve the ample quantity of fresh water.
 
 1.3.  Use of reverse osmosis plant & water softening plant for treating
 of raw water, helps to reduce feed water consumption in boiler,
 increases the life of process machineries and provide good quality of
 drinking water.
 
 1.4.  Collection of maximum amount of steam condensate, reduce the feed
 water consumption in Boilers.
 
 1.5.  Company is introducing rain water harvesting systems which will
 help to retain the rainwater in our area and conserve the water.
 
 2) Conservation of Steam
 
 2.1 Reuse of condensate has reduced the consumption of furnace oil.
 
 2.2 Heating of water by using flash steam in process area has reduced
 the steam consumption.
 
 2.3 Reduction in furnace oil consumption by use of good quality water
 for boiler feed & regular cleaning & maintenance of boilers.
 
 2.4 Optimum utilization of steam, control on wastage & leakages of
 steam and maintaining proper insulation has contributed to saving of
 steam consumption.
 
 3) Conservation of Electricity
 
 3.1 Optimum utilization of compressed air & chilled water, has
 contributed to saving of electricity.
 
 3.2 Conversion of electric heating to steam heating has reduced the
 electricity consumption.
 
 3.3 A conventional lighting system in plant and offices replaced by
 energy efficient electronic lighting system has reduced significant
 electricity consumption.
 
 3.4 Maintaining the power factor to near unity level by continuous
 monitoring & proper maintenance resulting in conservation of
 electricity.
 
 3.5 Seasonal switching off of cooling tower fans, water chillers & air
 conditioners, controlling the wastages and misuse helps to conservation
 of electricity.
 
 4.0 Supply of better quality water and reduction of consumption of
 water steam / furnace oil and electricity have improved consumption
 ratio with respect to per ton of finished product, thereby conserving
 energy.
 
 I.The Major sources of energy in the company are:
 
 1.  Furnace Oil
 
 2.  Electricity
 
 1. Conservation of Furnace Oil:
 
 a.  Waste heat recovery systems have been introduced in pot and press
 section. The waste heat is utilized for pre- heating of boilerfeed
 water.
 
 b.  Dual heating system for furnace oil has been incorporated in boiler
 firing system. Above improvements incorporated in steam generation and
 distribution have resulted in improvement in steam to fuel ratio.
 
 2. Conservation of Electricity:
 
 a.  Monitoring and maintaining system power factor to near unity level
 has contributed to saving in electricity consumption.
 
 b.  Improvement in water circulation systems and seasonal switching off
 of cooling tower fans and water chiller has significantly contributed
 to savings in electrical energy.
 
 c.  Impact of measures on reduction of energy consumption has
 consequent impact on the cost of production of goods.
 
 d.  The consumption of furnace oil and electricity per ton of
 production has reduced considerably.
 
 The Form A for disclosure of particulars with respect to conservation
 of energy is attached to the Director Report.
 
 B. Technology absorption
 
 Efforts made in technological absorption were carried out by the
 company. After total introduction of new products the same will be
 absorbed and maintained for higher productivity and better quality.
 
 C. Foreign Exchange Earnings & Outgo
 
 Particulars regarding foreign exchange earnings and outgo are presented
 in Schedule 16 of the Audited Account. The Company has retained its
 status as a net forex earner.
 
 Corporate Social Responsibilities:
 
 Initiatives:
 
 The company adopted a physically disabled school for children at
 village Jiatala. The mid day meal and the school operation budget are
 sponsored by PIX Transmissions Ltd.
 
 The Company created a fund for treating terminal sickness for the
 families of the nearby village which houses most of our workmen.
 
 The Company provides ambulance to two adjacent villages for
 transferring sick patient to the hospital. Both villages do possess
 Primary Health Centers but are about 40 kms from the city centre where
 a fully equipped hospital exists.
 
 The Company organizes Blood Donation Camp twice a year.
 
 Environmental Policy
 
 PIX is committed to follow systematic approach to achieve continual
 improvement in environmental performance by strengthening the greening
 of supply chain, occupational health & safety while complying to all
 applicable legal, safety legislation and other requirements.
 
 Design & Development/Testing Laboratory
 
 The strength of PIX lies in the introduction of new products through
 robust Design, Development, Testing and introduction. The Design and
 Development activity at PIX is carried out using the best resources and
 facilities.
 
 PIX has at its disposal a rich talent pool of technical manpower from
 Rubber Technology, Mechanical Engineering, Computer engineering and
 Material Procurement who design and develop the product and process.
 
 PIX has State of the Art facilities capable for validating and
 verifying the entire product range of Hoses, Belts and Assemblies that
 the organization has in its range and proposes to innovate.
 
 PIX has foot prints in the global market place by setting the pace for
 reduced innovation cycle time for turning around a product. All Design
 and Development outputs are reviewed at regular intervals by the Top
 Management Some of the Govt. Agencies are sending their products for
 testing to our Laboratory. PIX is moving towards accreditation of our
 Testing Centre from the Department of Science and Technology which will
 then function as a Profit Centre.
 
 Acknowledgement
 
 The Directors wish to place on record their appreciation towards all
 associates including Customers, Collaborators, Government Agencies,
 Financial Institutions, Bankers, Suppliers, Shareholders, Employees and
 others who have reposed their confidence in the Company.
 
                            For and on behalf of the Board of Directors
 
                                                          Amarpal Sethi
 
                                           Chairman & Managing Director
 
 Place: Mumbai
 
 Date : 30.05.2011