November 10, 2003

CHAIRMAN’S ADDRESS

It gives me pleasure to welcome you all to the 29 th Annual General

Meeting of your Company. I am also happy to welcome Mr. Shimizu of
Exedy Corporation, our Collaborators who have continued their valuable
support.

The last few years have been challenging ones both for the Indian
Economy and for the Automotive Industry in particular. As you are
aware competitiveness continues to be a compelling aspect for the Indian
Industry and those who fail to overcome these challenges would
succumb to the severity of competitive pressures.

You have already received the Annual Report for the year ended 31 st
March, 2003. Performance of the Company during the year under
review shows increase in sales turnover. However, profitability has been
adversely affected due to increase in costs of inputs, both domestic,
imported and tough competitive environment as well as the sluggishness
in the automotive sector.

With the completion of another year, I am sure you would be eager to

know the progress of the Company during the current year. In the six
months ended September 2003, Company has produced 3,23,772 nos. of
Clutch Disc and 2,73,745 nos. of Clutch Covers. Besides, Company has
good orders on hand, both from the local market as well as Overseas
market.

I am happy to inform you that the Noida plant has achieved ISO 14000 /
18001 certification.

I would like to thank our Collaborators and place on record their

continued valuable assistance in technology transfer, training and up-
gradation of technology extended to us.
I also wish to acknowledge the various automobile manufacturers who
have placed their trust and confidence in us for developing new models
of clutches for their new vehicles.

I also take this opportunity to thank and acknowledge the continued

assistance given by the financial institutions and specially the banks for
their working capital facilities which has helped us in our day to day
working.

I would also like to mention here that relations in the establishment at

the factory have continued to be amiable and your Directors would like
to place on record their appreciation for the contribution made by the
employees at all levels for the continued growth of the Company.

Finally, I feel confident that with your support and the continued efforts
of all the staff and employees of the Company, we will achieve our goals
for a more brighter and fruitful future.