Dear Shareholder

Your Directors are pleased to present the Twenty-Ninth Annual Report and the Audited Accounts of your Company for the financial year ended 31st March, 2011, together with the Auditors’ Report thereon.

Future Prospects

With effect from 9th January 2010 , all distribution transformers purchased by Govt. Electricity Utilities are of Star rated transformer. Your company has already received following ratings from Bureau of Energy efficiency(BEE) :

• 5 star rating for 16KVA, 25KVA, 63KVA, 100KVA.
• 4 star rating for 16KVA, 25KVA, 63KVA, 100KVA and 200KVA.
• 3 star rating for 25KVA (copper and wound ore CRGO as per NHPC), 63 KVA (CRGO).

All other Transformer are AMDT transformers. The states like Gujarat, Rajasthan & Maharasthra patronizes Energy Efficient Transformers and regularly buying Amorphous Metal Distribution Transformers in large quantities. Recently Gujarat Electricity Utilities have floated tenders for the requirement for the distribution transformers of about 360 Cores. Hence your company is expecting a good part of above orders during next financial year.
In Baroda unit company has got a small order of about 1.75 Cores AMDT transformers from Gujarat & this is the second year of supply to Gujarat utility. We are participating in Tender in June 2011, order against these are expected during 4th quarter. Hence, operation is expected to be improved during current year. The performance of the company is not satisfactory during this financial year in the challenging business environments. Export orders received from Libya could not be executed. In process goods worth of 2 cores meant for export to Libya by end of 31st march, 2011 which could not be effected due to war in Libya. This is an unforeseen situation beyond control.

However the company is optimistic of improvement of over all business during 2011-2012.

Acknowledgements

Your Directors wish to express their grateful appreciation for the assistance and co-operation received from financial institutions. Cordial relations prevailed during the year with the employees . Your Directors wish to place on record their deep sense of appreciation to employees at all levels for their hard work, dedication and commitment. The enthusiasm and unstinting efforts of the employees have enabled the Company to maintain in the industry in spite of increased competition.
Your Directors also wish to express their gratitude to investors for the continued faith reposed by them in the Company.