Dear Shareholders,
 
 It is a delight to address you on completion of another eventful and
 successfulyear. The world economy has witnessed slowdown this year. The
 concerns in Euro zone and Middle East remain unresolved and the US
 economy is still not out of the woods. The Indian economy in tandem is
 also experiencing a slowdown due to global and domestic turbulence and
 policy formulations aimed at curbing inflationary pressures, having a
 depressing impact on productivity and growth. Matters have been further
 aggravated due to elevated crude prices and weakening rupee. The
 textile sector too is faced with formidable challenges.
 
 Despite the global volatile environment, the Consolidated sales (i.e.
 Revenue from Operations) of your Company stood at Rs.  2221.54 crores
 for the F.Y. ended31.03.2012, as compared to Rs. 1702.69 crores during
 the previous year, agrowth of30.47 % YoY. However higher input and
 interest costs, resulting from continuing high inflation had an adverse
 impact on profits. The Profit after Tax (Consolidated) stood at Rs.
 82.81 crores for the F.Y. ended 31.03.2012, as compared to Rs. 112.48
 crores during the previous year.
 
 However, I am glad to report that your Company has been able to sustain
 operational stability, thanks to our strong market position, geographic
 spread of scale and low-cost but high quality products. Our ability to
 deliver in difficult times is attributable to our strategic positioning
 as an integrated business house. We are consolidating our position by
 focusing on higher value added products, developing newer products and
 expanding market boundaries. Your Company has always focused on
 building strengths for the future and continued to invest in building
 capabilities. We will continue to invest our resources in taking these
 initiatives forward.
 
 Your company remains committed to strategic planning and meticulous
 execution of expansion projects and to provide quality service to our
 customers, achieve business objectives with social responsibility and
 also result in sustained increase in shareholders value.
 
 We believe in the idea of sustainable development through conservation
 of natural resources, economic and social development and environmental
 protection. We have always anticipated changes and adapted ourselves to
 the environment without compromising on our core values. Your company
 has always believed and practiced high standards of professionalism,
 maintaining the standards of corporate governance, integrity and
 transparency and would continue to do so. It is these values which have
 shaped the character of your organization and helped in building wealth
 for all stakeholders.
 
 I would like to extend my gratitude to all our stake holders including
 shareholders, customers, lenders and our loyal, hardworking and
 committed employees for their continued support and faith in the
 Company.
 
 With best wishes, Ram Saran Saluja Chairman