Sunil Hitech Engineers

The Directors are pleased to present the tenth annual report of the
 Company together with the audited financial results for the year ended
 March 31, 2008.
 
 Financial Results
 
                                                         Rs. in million
 Particulars                                      2007-08       2006-07
 
 Net Sales                                       3,063.21       1448.05
 
 Other Income                                       20.68         15.76
 
 Total Income                                    3,083.73       1463.81
 
 Operating Profit                                  500.94        196.65
 
 Interest                                           89.76         32.99
 
 Depreciation                                       86.12         44.10
 
 Profit Before Tax                                 325.06        119.56
 
 Taxation - Current                                108.88         40.24
 
 Deferred                                           (4.98)         (.40)
 
 Fringe Benefit Tax                                  3.41          1.20
 
 Profit after Taxation 
 (before extraordinary items)                      217.74         78.51
 
 Profit after Taxation (after extraordinary items) 210.08         75.67
 
 Balance brought forward                           118.82         64.79
 
 Dividend on eguity shares                          14.73         12.03
 
 Tax on Dividend                                     2.50          2.05
 
 Balance carried to Balance Sheet                  290.66        118.82
 
 
 Operational Review
 
 Over 2007-08, Sunil Hitech achieved a total income of Rs. 3,083.73
 million compared to Rs. 1463.81 million in the previous year,
 registering a 110.7 percent growth. The operating profit grew from Rs.
 196.65 million in 2006-07 to Rs. 500.84 in 2007-08 or by 154.7 percent,
 while net profit increased to Rs. 21 0.08 million in 2007-08 from Rs.
 75.67 in 2006-07, recording a 1 77.6 percent growth.  The performance
 was driven by the company executing an increased number of projects.
 The current year also appears bright in terms of orders in hand, with
 the order book presently worth Rs. 13761.70 million as on June 30,
 2008.
 
 Dividend
 
 Your Directors are recommended 12 percent on equity shares for the
 financial year ended March 31, 2008, which if approved at the
 forthcoming Annual General Meeting, will be paid to equity shareholders
 whose names appear in the Register of Members as on September 16, 2008.
 
 During the year ended March 31, 2008, the Company did not accept any
 deposits from the public.
 
 As per Article 107 and 108 of the Articles of Association of the
 Company, Mr. Dilip Y. Ghanakar and Mr. Sajid Ali, Directors of the
 Company, are liable to retire by rotation in the forthcoming Annual
 General Meeting and being eligible, offer themselves for reappointment.
 
 Directors Responsibility
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
 hereby confirm that:
 
 a) In the preparation of annual accounts of the Company, the applicable
 Accounting Standards have been followed along with proper explanation
 to material departure from the same, if there any.
 
 b) The Directors have selected such Accounting Policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company for the financial year ended March 31, 2008 and of the
 profit of the Company for the year ended on that date.
 
 c) The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1 956 for safeguarding the assets of
 the company and for preventing and detecting fraud and other
 irregularity.
 
 d) The Directors have prepared the annual accounts of the Company on a
 going-concern basis.
 
 Particulars of Employees required under Section 217 (2A) of the
 Companies Acy, 1956
 
 The particulars of employees as required under Section 217(2A) of the
 Companies Act, 1 956 and Companies (Particular of Employee) Rules, 1975
 are set out in the Annexure to this report.
 
 Auditors and Auditors Report
 
 M/s G. G. Randad & Company, Chartered Accountants, Aurangabad holds
 office until the conclusion of the ensuing Annual General Meeting and
 being eligible, offer themselves for re- appointment.
 
 Notes on Accounts and significant Accounting Policies are self
 explanatory hence do not require further clarification.
 
 Managements Discussion and Analysis
 
 A detailed review of operational performance and future outlook of the
 Company is given under the Managements Discussion and Analysis report
 which forms part of the annual report.
 
 Report on Corporate Governance
 
 Pursuant to Clause 49 of the listing agreement entered with stock
 exchanges, a separate section on Corporate Governance of the company
 forms a part of this annual report.
 
 Issue & Allotment Of Share Warrant
 
 The Company made an issue of 38,00,000 convertible share warrants of
 Rs. 1 0 each at a price of Rs. 146 per share aggregating Rs. 554.8
 million to 1 3 allottees as per Chapter XII of SEBI (DIP) Guidelines,
 2000.  Apart from the four promoters viz.  Mr. Ratnakar Gutte, Mrs.
 Sudhamati Gutte, Mr. Sunil Gutte and Mr. Vijay Gutte, there were other
 9 allottees out of which 5 are body corporates and 4 were individuals.
 The allotment of the warrant was made on October 31, 2007. These
 warrants are compulsorily convertible into equity shares within 1 8
 months from date of allotment, i.e. by April 30, 2009.
 
 Qualified Institutional Placement
 
 As per Chapter XIIA of SEBI (DIP) Guidelines 2000, the Company made a
 Qualified Institutional Placement (QIP) of 22,50,000 equity shares of
 Rs. 10 each at a price of Rs. 360 aggregating Rs. 810 million to six
 Institutional Investors viz. Bessemer Venture Partners Trust, Franklin
 Templeton Mutual Fund A/c Franklin India High Growth Companies Fund,
 Citigroup Global Markets Mauritius Private Limited, Merril Lynch
 Capital Markets Espana S. A. S. V, Tata Trustee Co. Pvt. Ltd. A/c Tata
 Mutual Fund - Tata Tax Advantage Fund, Tata Trustee Co. Pvt. Ltd. A/c
 Tata Mutual Fund - Tata Tax Saving Fund. The allotment of the shares
 was made on January 18, 2008.
 
 Listing
 
 Equity Shares issued by way of QIP are listed on the Bombay Stock
 Exchange Limited (BSE) and the National Stock Exchange (NSE) w.e.f.
 January 25, 2008.
 
 Subsidiary
 
 As required under Section 212 of the Companies Act, 1 956, the accounts
 relating to the subsidiary company, i.e.  Sunil Hitech Engineers &
 Manufacturers Private Limited are attached herewith.  During the
 financial year 2007-08 the Company subscribed 600,000 equity shares of
 Rs. 10 each in the share capital of the subsidiary company.  Presently,
 the Company holds 84.74 percent in the share capital of its subsidiary.
 
 Consolidated Accounts
 
 As required under Clause 32 of the Listing Agreement with Stock
 Exchanges, a Consolidated Financial Statement of the Company and its
 subsidiary is attached.
 
 Conservation of Energy, Technology, Foreign Exchange Earnings and Outgo
 
 Information in accordance with the provisions of section 217(1)(e) of
 the Companies Act, 1 956 read with the Companies (Disclosure of
 particulars in the Report of Board of Directors) Rules, 1 988 are given
 in Annexure B to this report.
 
 Acknowledgement
 
 The Directors of the Company acknowledge the continued support extended
 by its investors, customers, business associates, bankers and vendors.
 They place on record their appreciation for the significant
 contribution made by the employees at all levels through their hard
 work and dedication.
 
 The Directors also thank various Government and Regulatory Authorities
 and most importantly, their Shareholders for their patronage, support
 and faith in the Company.  The Board looks forward to their continued
 support in the years to come.
 
                                        For and on behalf of the Board,
 
                                                  Ratnakar M. Gutte
                                                       Chairman
 Place: Nagpur
 Date : 7th July, 2008