To, The members of PIX Transmissions Ltd,
 
 The directors are pleased to present the THIRTIETH ANNUAL REPORT and
 the Audited Statement of Accounts for the year ended 31st March 2012,
 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 2012:
 
                                                (Rs. in lacs)  
 
                                    As on             As on
 
 Particulars                    31.03.2012         31.03.2011
 
 Sales (Net -Excise)              21822.78           22829.35
 
 Other income                          -                 8.03
 
                                  21822.78           22837.38
 
 Profit before Depreciation        2105.65            2613.24
 
 Depreciation                      2025.37            1995.86
 
 Profit before tax after 
 depreciation                        80.28             617.38
 Less: Provision for taxation
 
 a)   Current year                   40.00             140.00
 
 b)   Deferred Tax Liability        (21.74)            113.04
 
                                     62.01             364.34
 
 Less:
 
 Capital Redemption Reserve             -              647.50
 
 Proposed Dividend                      -               96.94
 
 Tax on Dividend                        -               16.46
 
                                        -              760.90
 
 Total                               62.01            (396.56)
 
 Balance of Profit Brought down     776.13            1172.69
 
 Amount available for 
 Appropriation
 & Carried to Balance Sheet         838.14             776.13
 
 The Company''s Sales & Income during the Financial
 Year 2011-12 computed of the following:
 
 (Rs. in lacs)
 
 S.
 No.  Particular      current   previous
                       Year      Year
 
 1.   Belts           16403      16115
 
 2.   Hoses            5818       6367
 
 3.   End Fittings      203        113
 
 4.   Other items       537       1208
 
                      22961      23803
 
 Joint Ventures
 
 1.   PIX Europe Limited, U.K. - Joint Venture
 
 PIX Europe Limited promoted to carrying 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 carrying on business of PIX Products and
 other products in the market of Ireland.
 
 Subsidiaries
 
 The subsidiaries of the company during the year under review a re 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 carrying on business of PIX Products in the market of
 Argentina, Chile, Brazil & Peru etc.
 
 The joint venture agreement with the subsidiary company has been
 revoked with effect from 15th April, 2011 and investments have been
 sold off during the year.
 
 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.
 
 PRODUCT DEVELOPMENTTO JUSTIFY WIP
 
 The company has incurred expenditure on development of production of
 various new belts for local and Export market. The company intends to
 develop manufacture of speciality belts for the hitec applications and
 innovations that are coming in the power transmissions industry and MF
 type belts for the new generation packaging machines and EPDM rubber
 cover belts for automotive industries. These would be able to withstand
 the temps and perform longer.
 
 All the above are new generation products that the company is now
 proceeding to manufacture to take care of the future needs of the power
 transmissions industry.
 
 During the year the company has incurred expenditure on development of
 new products which are yet to be manufactured commercially. The
 expenses incurred up to 31.03.2012 have been carried forward in capital
 work in progress.
 
 Opening balance as 01.04.2011 Rs. 38,050,000.00
 
 Addition during the year     Rs. 170,621,953.00
 
 Total Work in Progress as 
 on 31.03.2012                Rs. 208,671,953.00
 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
 the 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 31st March 2012.
 
 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 Karanpal Sethi,
 
 Mr Jose Jacob, Mr Pradeep Havnur, Mr Aqueel Mulla & Mr Om Prakash Arora
 directors of the company who retire by rotation and being eligible
 offer themselves for re-appointment.
 
 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 fix 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.
 
 Cost Auditor
 
 As per the requirements of Central Government and in pursuance of
 Section 233B of the Companies Act, 1956, your Directors have appointed
 M/s Manisha & associates, Nagpur, Cost Accountants, as cost auditors of
 the Company to carry out the audit of cost accounting records for the
 financial year 2011-12.
 
 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
 
 1.0 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 recirculation 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 ourarea and conserve the water.
 
 2.0 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.
 
 3.0 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 boiler feed
 water.
 
 b.  Dual heating system for furnace oil has been incorporated in
 boilerfiring 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 have significantly contributed
 to savings in electrical energy.
 
 c.  Impact of measures on reduction of energy, consumption and
 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 Sbsorption
 
 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 patients 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 strengthing the greening of
 supply chain, occupational health & safety while complying with 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.
 
 Acknowledgements
 
 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: 06.06.2012