V-Guard Industries Ltd.

Dear Shareholder, First of all, I wish to thank each one of you for your wholehearted response to our Initial Public Offer, which was over subscribed by 2.70 times during the time, when the capital market in India was bearish and turbulent and continue to be so. As the Chairman of the Company, this is my maiden direct interaction with all of you and I am happy to address you with an excellent performance by your Company during the financial year 2007-08. The total revenue from operations, during the year under review, increased to Rs.27811 lakhs, recording a growth of 25.12% over the financial year 2006-07. Profit after tax for the financial year 2007-08 was Rs.3742.31 lakhs. On the way, during the year, we faced inflationary trends in the market, a slight slow down in the GDP growth, hike in the price of raw materials and increased level of competition. Amidst all these developments, the financial year 2007-08 has been a very eventful year for your Company and indeed an action-packed one. Your Company was first converted into a public one and it successfully completed its IPO. To make V-Guard a household name pan India and also to tap the potential in north Indian markets, branches were opened in various parts of North India. Your Company was able to acquire suitable land for construction of manufacturing units, R&D units and distribution and service centers, as part of our planned expansion programme,as indicated in the Offer Document for the IPO Having been a popular brand in the industry for the last 3 decades, it has been possible for us to understand the changing needs and demands of our customers. With constant improvement in the quality and performance of our products, we enjoy considerable brand equity and reliability in the market. Our success has in no less way been contributed by the level of after sales service provided to the customers. I am sanguine that the 900+ employees of the Company will continue to uphold these values and serve the customers and society The Company is equally committed to uphold and put in practice all the tenets of Corporate Governance in letter and spirit and to improve share holder value The outlook for the future is to become a national player and penetrate the North Indian and other new markets in all possible ways and the first step is to successfully complete the projects mentioned in the offer document, on schedule. Out Commitments to the shareholders is also shared by our highly motivated and innovative team of employees at all levels and with them I am confident of taking your Company to greater heights in the years to come. P G R Prasad Chairman 4th June, 2008 Kochi