Dear fellow Shareholders,
 
 At the outset, I wish to place on record that 2010-11 has been a year
 of satisfactory growth, coupled with challenges related with higher
 input cost and sustaining of margins.
 
 With the global recession receding further, we have continued to
 register a steady increase in sales-both in the domestic market and
 on the exports front. This augurs well for us, and we are hopeful of
 maintaining this trend in the coming years.
 
 Even though there are major concerns in the Euro zone about the debt
 crisis lead stress in the financial sector and government''s dependency
 on international bailout support, the overall European business climate
 has maintained stability. Despite the downgrade of US debt by major
 rating agencies and the weak economic numbers there is some sign of
 resilience. The infamous global slowdown of 2008-09, whose adverse and
 unavoidable effects were also strongly felt in India, is now thankfully
 behind us.
 
 Since the Indian economy is driven largely by domestic demand, it has
 bounced back stronger and faster.  In 2010-11, the national GDP growth
 rate touched 8.5% compared to 7.9% in the previous year.  The
 agricultural sector and service sector provide the thrust needed to
 accelerate the GDP growth.
 
 This is even more creditable because such results were achieved in the
 face of continuing increase in oil and input prices worldwide, and the
 Reserve Bank''s repeated hikes in interest rates to contain inflation
 and spiraling food inflation.
 
 The automotive industry''s performance is one of the major indicators of
 this revival. In 2010-11, the country''s domestic auto sector sales
 touched 17.9 million units, a healthy 25% increase over the previous
 year. Individually, the passenger vehicles segment grew 29.8% and the
 two-wheelers category by 27%. Understandably, the impact of the growth
 surge was witnessed in demand for your Company''s products leading to
 impressive revenue growth.
 
 I am pleased to announce that during the year 2010-11, your Company''s
 gross sales crossed the Rs.1000 crores mark for the first time. We
 achieved revenue of Rs.1096 crores, an increase of 31% over 2009-10.
 Domestic sales accounted for Rs.774 crores registering an increase of
 26% over the previous year, and exports sales touched Rs.202 crores,
 notching up a growth of 37% over the corresponding period in the
 previous year. I would like to mention that the consolidated group
 revenue also increased to Rs.1446 crores in 2010-11 from Rs.1085 crores
 in the previous year.
 
 Your Company was able to register a PBIDT margin of 12.5% on net
 revenue compared to 11.2% in the previous year, thus registering a
 modest improvement in margins. Your Company was able to maintain
 profitability margin despite inflationary trends in the economy. The
 Company earned a Profit after Tax (PAT) of Rs.26.51 crores (includes
 Non-operational Income of Rs.19.90 crores) for the financial year
 2010-11. Our operational Profit after Tax (PAT) for the year was
 Rs.6.61 crores compared to Rs.6.07 crores in 2009-10, registering a
 modest growth of 8.9%.
 
 During the year we were able to commission our new plants at Haridwar
 in Uttarakhand and Sanand in Gujarat, supplying to our two premier
 
 customers, Hero MotoCorp Limited and Tata Motors Limited. Our sales to
 Hero MotoCorp Limited touched Rs.464 crores this year, a healthy 20%
 jump over the previous year.  Company''s other major customer Maruti
 Suzuki India Limited also reposed similar confidence and our sales grew
 to Rs.157 crores, up by 32%. Together, Rico and Rico Jinfei Wheels
 supplied products worth Rs.88 crores to Honda Motorcycle and Scooter
 India Private Limited (HMSI), a solid 136% higher than last year.
 Sales to Tata Cummins Limited (TCL) touched Rs.39 crores, an increase
 of 49% over previous year. All joint venture entities registered
 similar trends in revenues.
 
 Your Company stands committed to continuing growth and expansion with
 profitability. Towards this, we are constantly seeking to induct new
 products that offer higher value, as well as exploring strategic
 technological tie-ups to keep pace with evolving trends and market
 demands, both in India and overseas. We are simultaneously focusing on
 enhancing our capacities and delivery capabilities so that we are seen
 as a reliable global player. Great emphasis is being laid on
 professionalism and continuous improvement.
 
 I take this opportunity to thank all our valued customers, employees,
 associates, vendors, bankers and stakeholders for their excellent
 support to the Company throughout the year.  We look forward to
 maintaining this fruitful relationship in the coming years.
 
 Arvind Kapur
 
 Vice Chairman,
 
 CEO & Managing Director