Dear Shareholder,
 
 I have great pleasure in sharing with you the improved performance in
 the year 2007-08. We achieved new record for turnover and earned net
 profit.
 
 The economy, Indian as well as global, got adversely effected due to
 eruption of sub-prime crises in the US and Western Europe. Global
 Factors - the food and fuel inflation are also responsible for both the
 economic slow down and the raging inflation. All countries including
 India have practically shown their readiness to sacrifice growth for
 containing inflation. Inspite of recent fall in the prices of petroleum
 and other commodities, inflationary trend is running high in India.
 Indian economy grew at 8% during the year 2007-08 and expected to grow
 at 7.5% - 8% during the current financial year.
 
 With the investment rate expected to remain steady, the physical and
 social infrastructure sector is poised to grow consistently.
 Exploration, development and distribution during the current financial
 year, of natural gas resources found by public and private sector
 companies in India, helps achieve cost effective production by our
 company.
 
 Boom in the housing sector supported by favorable government policies
 and fairly reasonable growth estimates of the Indian economy have
 significantly influenced the consolidation and growth of the Indian
 Ceramic Tile Industry, creating additional demand for higher end
 products.
 
 Project for expansion of production facilities to 10,000 sq.mtrs/day is
 delayed by nine months due to few technical reasons and expected to be
 completed by October 2008.
 
 I am confident that, on achieving both organic and in-organic growth
 options being pursued, our Company will firmly establish itself as one
 of the Indias successful and admired vitrified tile company in the
 years to come.
 
 I am sure that, our company will continue to display renewed vigor,
 sense of spirit to face challenges and excel in the years ahead.
 
 I would like to express my gratitude to our Board of Directors for
 their unstinting support and guidance.  I am also grateful to all our
 stakeholders - our customers, suppliers, bankers, employees and
 shareholders, who have reposed their trust in us and given us their
 constant support.
 
 With Seasons Greetings,
 Sincerely,
 
 NALINKANT AMRATLAL RATHOD
 CHAIRMAN & MANAGING DIRECTOR