The business environment continues to present challenges for your
 Company, but driven by its resilience, foresight and strategic
 direction, it has continued to unlock future growth potential.
 
 During the financial year ended on 31st March 2008, your company sold
 as a part of its trading operations 1604 color picture tubes valuing
 Rs. 1724 thousands, as against 6514 picture tubes valuing Rs. 7854
 thousands sold during the previous financial year.
 
 As reported to the members in the last annual report, the Company had
 decided to set up a facility for manufacturing metal parts for picture
 tubes for color television sets at Kota (Rajasthan), to cater to the
 heeds of Samtel Color Limited. However, owing to the revision of
 production plan by SCL for its Kota factory, there was a delay in
 setting up of the same. SCL is currently in the process of evaluating
 various options/ strategies for procurement of metal parts.
 
 Your company holds long-term investments in Samtel Color Limited and
 Samtel Glass Limited. As the market dynamics turn favourably in our
 direction, the Companys investments in group companies are expected to
 perform better in the coming years.
 
 The market for colour televisions continues to grow at about 10% per
 annum. However, Samtel Color Limited was not able to exploit the
 positive market dynamics due to delays in the ramp up of production on
 the two new lines, liquidity stress and dumping of color picture tubes
 by overseas suppliers. As mentioned in previous years report, SCL
 approached the CDR cell of RBI for corporate debt restructuring (CDR)
 and the proposal has since been approved. The CDR, coupled with the
 notification on anti-dumping duty, should help the company regain its
 foothold in the market.
 
 The performance of Samtel Glass Limited would also have shown
 improvements had it not been adversely affected by the performance of
 Samtel Color Limited.
 
 I would like to place on record my sincere thanks to the Board of
 Directors of your company for their continued guidance to the
 management of the Company and their relentless focus on the highest
 standards of corporate governance. Before concluding, I would like to
 thank all the stakeholders for their continued support and
 encouragement.
 
 Yours truly
 
 Satish K. Kaura
 Chairman and Managing Director