I take pleasure in presenting you an overview of the 70th Annual Report
 of Texmaco Limited for the year ended March 2010.
 
 The financial year 2009-10 started in the backdrop of global
 uncertainties and financial turbulence. Fortunately, the Indian economy
 has done reasonably well and is poised to return to high levels of
 growth. Excluding China, India has recorded one of the highest growth
 rates in the world. In this regard, some of the noteworthy initiatives
 of the UPA Government are reflected in the massive expansion of the
 middleclass, major investments in rural India, and a slew of popular
 social schemes, which have been instrumental in attaining the growth
 rates being currently witnessed in the country. Inflation does remain a
 cause of worry, but with the prediction of a normal monsoon, it is
 likely to come under control by the end of the year.
 
 It is a matter of considerable satisfaction that Texmaco completed a
 very successful fund raising programme to the tune of Rs. 1,705.60
 million in July 2009 under QIP through an issue of 16.4 million equity
 shares, at 104 times of the face value of Re.1 per share. This has
 contributed to expanding our Reserves by over Rs. 5,428 million.
 
 The Company recorded its highest turnover and profitability with a top
 line of Rs. 11,255 million and a cash profit of Rs. 1,505 million. The
 prospects for the core business of the Company - Railway Wagons -
 continue to be strong. Unfortunately, there was an abnormal delay in
 the release of the wagon order by Indian Railways for the year 2009-10.
 The Company would have produced a larger number of wagons if the order
 had been released on time.
 
 Our professional Management and the value system helped us to perform
 well in the year, which will stand the Company in good stead in the
 future. One of the major steps taken by the Company was in the field of
 improving production efficiency and quality standards so that we earn
 the distinction by offering a superior quality of products to our
 customers. In this connection, we have engaged the services of global
 specialists to help raise Texmaco’s ranking not only as the best in
 India but among the Best Wagon Makers in the world.
 
 The Minister of Railways, Ms Mamata Banerjee in her Budget Speech has
 spoken of her Vision 2020 and accordingly has signaled major Public
 Private Partnership in the growth and modernisation plans of the Indian
 Railways. This augurs well for companies like Texmaco. The Hon’ble
 Minister has also indicated that five new wagon units would be set up
 by the Railways to meet the demand of the Railways. I believe that the
 capacity of the industry should be tested before committing public
 investment in new factories. The industry should be enabled to achieve
 production volumes through long-term advance planning for uninterrupted
 production and optimal resource utilisation.
 
 With the raising of resources, the Company is now looking actively at
 expanding and diversifying its activities, and some new initiatives
 would be taken by the Board of the Company shortly. The Company is set
 to address new opportunities for specialised freight carriers where it
 would endeavour to produce the latest designs of such wagons and meet
 the needs of the Indian industry. Looking to the bright prospects of
 the Steel Foundry, your Board has decided to modernise the old Foundry
 to the level of its State-of-the- Art Foundry, set up by Kunkel Wagner,
 Germany.
 
 The Board of Texmaco has taken a decision to restructure the Company by
 demerging the Engineering and Steel Foundry Divisions to a wholly-owned
 new subsidiary company and leaving the Real Estate and Investments in
 the existing company. All shareholders, on receiving requisite
 approvals, would receive shares in the new company in accordance with
 the scheme submitted to the Hon’ble High Court at Kolkata.  The basic
 premise of the scheme is to unlock value for the shareholders and allow
 both businesses to grow independently of each other.
 
 In the Real Estate Division, after the final verdict of the Hon’ble
 Supreme Court disposing of all the review petitions, the matter is
 before the District Court. As soon as the area to be handed over to DDA
 is settled, the Company would proceed with the planning and development
 of its property at Delhi. We can take some satisfaction that the
 Hon’ble Supreme Court has not only allowed 50% extra FAR development in
 the area retained by the Company but has also issued a directive that
 should DDA develop the land that they would get under the order, 50% of
 the value of the land has to be shared with the Company.
 
 I believe that Texmaco is well positioned as we enter 2010-11. We have
 a good team, and together we are looking forward to scaling new heights
 as we build two companies with a commitment to create shareholder value
 in both the entities.
 
 I take this opportunity to state that behind the success of Texmaco are
 the enshrined values of the late Founder Chairman Dr. K.K.  Birla, the
 passionate and focused efforts of its people and the support of its
 customers, investors, bankers, partners and associates. Texmaco is
 fortunate to have a dedicated and efficient workforce, which will
 enable the Company to retain its leadership.