Dear Shareholders,

The Indian economy has emerged rapidly from the slowdown caused by the global financial crisis of 2007-09 and remains one of the fastest growing economies of the world. Financial and economic event over the year, however, have increased concerns about the sustainability of growth momentum. According to me, three concerns are likely to persist during 2011-12: high inflation, fiscal stress and current account deficit. The impact of each of these is likely to be felt with varying intensity during the course of 2011-12.

As I mentioned earlier, high and persisting inflation has emerged as a significant risk factor in sustaining India's growth. Initially confined to high food prices, which has persisted despite good monsoon, inflationary pressures are spilling over to other non-food segments, including manufactured products. Commodities prices had increased on prospects of higher growth in developed markets and in the latter parts of the year, so have crude prices. In general, higher global metals and commodity prices have contributed to rising inputs costs for India, which may be progressively passed on to the consumers.

The second stress point has been a high fiscal deficit which had increased as a result of the fiscal stimulus introduced to counter the effects of financial crisis. Persisting high fiscal deficit have effect of increasing interest rates, due to consequent market borrowings by the government , thereby squeezing private investments.

The Third concern was a high current account deficit, particularly in the context of weakening capital flows. The current account deficit was a manifestation of strong domestic demand (which fuelled imports) and global weakness (which kept exports performance moderate). However, a strong rebound in India's exports over the past couple of months has considerably reduced the pressure, but India's overall balance of payment remains weaker than expected, putting pressure on the Rupee.

I am pleased to mention here that your Company has reported another successful performance in the year 2010-11, underpinned by the healthy growth of both turnover and profits. Your Company has demonstrated the full potential of its manufacturing assets, management capacities, high quality of products by achieving record turnover, gross profit and net profits. This shows the reflection of strong customers support enjoyed by the Company across the market world wide. I believe the Company is truly well positioned to capitalize on emerging opportunities across the economy and therefore, continue to deliver value to its shareholders.

Now, before finishing my words, I would like to express my gratitude to the Shareholders, Board of Directors, Bankers, Suppliers, Employees and all Govt Departments for their support and confidence shown on us and I look forward to have same support in future for the further growth of the Company.

With best wishes,

Irshad Mirza
Chairman