Dear Shareholders,
 
 I am delighted to report that during the financial year 2010-11, your
 Company has achieved an excellent and unprecedented growth in sales as
 well as in profit. Growth was seen in all product verticals in sales
 volume compared to the previous year. Increase in sales was achieved
 both in the existing and new markets.
 
 Economic and Business Scenario
 
 As all of us are aware, being a multiproduct organization, your
 Company''s prospects are linked to the growth in the various sectors of
 the National Economy. The year under review saw the Indian economy
 growing at 8.6% with various sectors like agriculture, manufacturing
 and services continuing its growth momentum. The Durable consumable
 industry, Construction sector and the Agricultural sector which are of
 particular interest to your Company has presented a reasonably good
 growth sufficient enough to create additional demand for your Company''s
 products.
 
 Our principal raw materials - copper and aluminium - have registered
 significant price increases during the year affecting the cost of
 production of the products such as wires and cables, electric fan,
 stabilisers, pumps & motors etc. The increase in product prices due to
 the increase in raw material cost has also to some extent contributed
 to the higher sales turnover, though in the competitive scenario your
 Company operates, it was not possible to pass on the actual increase in
 cost to the customers. I may state that, considering this aspect, your
 Company''s performance is all the more gratifying in an year where the
 overall growth in the manufacturing sector has not been encouraging and
 price pressure on raw materials has been significant.
 
 Financial Performance
 
 The land mark sales performance was a result of the above factors and
 also due to the Company''s robust business plans, sound management
 practices, strong execution capabilities, brand loyalty commanded by
 our traditional products and the whole hearted contribution of the
 employees and other stake holders working pan India. I am happy to
 inform that during the year under review, net sales was significantly
 higher at Rs. 726.34 crores representing a growth of 59.96%, over the net
 sales of the previous year. Following the robust growth achieved in
 sales in all product verticals and in all geographical markets, the net
 profit also registered a phenomenal growth of 55.84 % not counting
 exceptional profit of Rs. 3.63 crores. Exceptional profit shown was on
 account of sale of 48.737 cents of land situated at Kaloor, Ernakulam.
 This remarkable performance and improved profitability has enabled the
 Board of Directors to recommend a dividend of Rs. 3.50 per share to the
 members of the Company.
 
 Operational Matters
 
 Your Board has been keen on bringing about operational efficiencies and
 innovation in all areas of working to sustain the high level of
 performance and also to achieve excellence in various areas of
 activities. Besides the laid down operations and systems procedures and
 the various Audit mechanisms, the newly introduced Risk Management
 System is also being reviewed and periodically revised at all
 appropriate levels including the Board and its various Committees. Due
 attention is given to proper management of working capital and Bank
 borrowings in terms of quantum and cost. Management of Human Resources,
 its training and development, motivation and retention strategies along
 with productivity enhancement of various resources of the Company also
 form part of the periodic review process carried out by the Board to
 ensure competitiveness of your Company in the fast changing and
 competitive business environment.
 
 Projects of Initial Public Offer
 
 Construction work relating to the remaining two projects i.e. setting
 up of Service and Distribution Centers at Hubli and Vijayawada has been
 commenced and it is expected to be completed by the end of the third
 quarter of the fiscal 2011-12. The delay in completion was on account
 of belated approvals from local authorities.
 
 Future Outlook and Strategic Initiatives
 
 The Board had approved a 5 year Business Plan for the company which is
 being revised as a rolling plan every year. Annual Business projections
 are made based on the projections in the Business Plan with variations
 suiting to the emerging business environment and internal factors. I am
 happy to inform that your Company has been able to achieve and surpass
 the growth targets as envisaged in the Plan and the attempt is to show
 better and better performance in future and to maintain the leadership
 in the Voltage Stabilisers.
 
 To maintain the growth momentum in the existing and new markets, your
 Company is giving much importance to the quality and reliability of our
 products and the after sales service we render. With this objective,
 the existing products are constantly upgraded on quality aspects and
 new models to suit the requirements of the market are being introduced
 through intensive R&D efforts. High capacity utilization of the
 manufacturing facilities will be continued to ensure optimum cost of
 production and to ensure adequate supply of manufactured products.
 Likewise, the number of outsourced units for products like water
 heater, stabilizers, fans, pumps etc will be increased to meet the
 growth in sales planned during the coming years. Introduction of new
 products under the Appliance segment is also under consideration.
 
 Considering the growth potential in the solar water heater segment , it
 has been decided to strengthen the manufacturing base of Solar Water
 Heater and a state of the art facility for the manufacture of Solar
 Water Heaters of different capacities with improved technology is being
 planned at the industrial land acquired in Perundurai, Tamil Nadu under
 lease from SIPCOT. It has also been decided to strengthen the existing
 pilot production units of Electric Water Heater and Fan at Kala Amb and
 Pumps manufacturing and Testing facility at Coimbatore. The other
 projects for expansion during the current fiscal include expanding the
 ware housing failities available at Palakkad, Bangalore and Kochi, to
 meet the increased sales requirement in future.
 
 Corporate Governance and Corporate Social Responsibility
 
 While details under this head have been given in the Directors'' Report
 and elsewhere in the Annual Report, it has been the attempt of the
 Board to go beyond the statutory parameters and to accept Corporate
 Governance as a philosophy running through the whole organization.
 Transparency of functioning, maintaining appropriate ethical standards
 and taking due care of all the stakeholders'' interests thus continue to
 be the guiding philosophy of your Company.
 
 Your Board also acknowledges the fact the Company cannot exist in a
 vacuum and is a part of the larger society contributing to it and
 drawing sustenance from it. Feeling of this mutually beneficial
 symbiotic relationship is spurring the Company to take up more
 initiatives in Corporate Social Responsibility to serve the society
 around.
 
 Conclusion
 
 I take this opportunity to express my gratitude to all the channel
 partners, vendors, various Govt.  authorities & agencies and all other
 stakeholders, who have extended their whole-hearted support for
 achieving the excellent performance and look forward to receive the
 same in the future as well. I am also grateful to all my colleagues on
 the Board for their unstinted support and guidance. It is the
 dedication, hard work and sincerity of the employees at all levels
 which was primarily responsible for the various achievements of the
 Company. Finally, let me express my deep felt gratitude to all the
 shareholders for all the support given to the Board and look forward to
 strengthening such a relationship in future.
 
                                                 With Best Wishes
 
                                                            Sd/- 
                                                    P G R Prasad 
                                                        Chairman