Good Afternoon, Ladies & Gentlemen.

My thanks to all of you for taking time off to attend this Twenty Third Annual General Meeting of the Company.

I extend you a very warm welcome.

The Annual Report 2007 alongwith Notice convening this Annual General Meeting was despatched sometime ago. I believe you would have had time to go through Report of the Directors, Audited Accounts for the year ended 31st March, 2007, the Statutory Auditors Report thereon, Management Discussion & Analysis, Corporate Governance Report and Auditors Certificate on Compliance of Corporate Governance. With your permission, I wish to take them as read.

LAST FISCAL - PERFORMANCE REVIEW

Members would have observed from Annual Report 2007 that at the beginning of the last fiscal, Company had faced daunting challenges. A reference to this aspect had also been made in the Annual Report 2006. Both these reports had highlighted the factors that had severally impacted operations of the Company after April-June first quarter of 2005-06 - saddled on one hand with volume drop, and on the other burdened with rising costs, quarter-on-quarter basis. Operating under such harsh conditions, Company's profitability had started sliding onwards of second quarter of fiscal 2005-06 - nose-diving from Rs.10.1 crores for First Quarter of Fiscal 2005-06 to Rs. 60 lacs only for First Quarter of same period last year.

In this backdrop, Company's financial performance for the First Half of fiscal 2006-07 was dismal - while sale drop was only 700 units (5300 against 6000), pre-tax profit fell by Rs.11.3 crores (Rs. 7.3 crores against Rs. 18.6 crores). Consequently, by the middle of last fiscal, the Ways & Means position of the Company had become extremely tight.

It deserves recognition that inspite of the financial hardships and related constraints, the management did not give up. By displaying courage of convictions and strong determination duly backed by shift in Marketing focus, management has succeeded in reversing the trend and Company's financial performance in the Second Half of fiscal 2006-07 was far superior than that of the First Half. Following table tells the story :

CURRENT TRENDS

Friends, it is with a sense of satisfaction that I draw your attention to the April-June, 2007 first quarter results which were published in the last week of July.

Driven by nearly 22% volume growth, net revenue for the quarter under review reached Rs.153 crores - up 27.5% when compared with last year's first quarter revenue of Rs.120 crores. Pre-tax profit for this quarter has registered robust growth  - Rs. 8.8 crores with a margin of 5.8% against Rs.60 lacs (margin of 0.5%) for the same period last year.

AN EVENT OF GREAT SIGNIFICANCE

Members would have observed that Annual Reports for the years 2006 and 2007 had elaborately dealt with the Expansion Project which was kicked off on 2^nd August, 2006.

It now gives me immense pleasure to inform Members that new factory was inaugurated on 11^th September in the presence of Chairman of Isuzu Motors Ltd. and Chairman of Sumitomo Corporation who were accompanied by senior executives from these two organisations. It is gratifying that the initial response of the dealers to the new product was encouraging on account of design, styling, comfort and finish. I do believe, this development would add significant value to Company's operations in the coming years.

ACKNOWLEDGEMENTS

It is with a sense of deep gratitude that the Board of Directors acknowledge the invaluable support given to the Company from time to time by the various Departments of the Govt. of Punjab, in particular by Department of Forests, and Department of Industries & Commerce as also the District Administration of Nawanshahar.

I now wish to convey my sincere thanks to Company?s esteemed dealers and vendors for furthering their involvement and responding promptly to our business needs.

This platform also gives me an opportunity to thank the employees of the Company at all levels from the core of my heart for their commitment, dedication, hard work and unflinching loyalty.

I also take this opportunity to profusely thank all my colleagues on the Board of the Company for their wise counsel, guidance and invaluable support.

May I now commend for your consideration and adoption, the Directors' Report and Accounts for the year ended 31^st March, 2007.

(S.K. TUTEJA)
Chairman