Ramesh Suri Chairman

Dear Shareholders,

I am happy to share with you that your company in the year 2007-08 achieved its best ever performance in terms of sales, product development and financial results.
Our Manesar and Pune Plants are fully operational and are meeting all the requirement of our customers i.e. Maruti Suzuki India Limited and Tata Motors Limited – to their full satisfaction. Achieving high customer satisfaction is indeed very credible, especially in view of intensified competition, even though your company continues to maintain its leadership position in the market.
Our focus, in the quest for excellence, continues to be People and Technology. As a result we have made substantial investments in technology, processes, systems and infrastructure, innovation and brand building towards acquiring international competitiveness in terms of Quality and Cost. You would be delighted to know due to these processes and investment, we have received many accolades in recognition of our path breaking initiatives. We have been adjudged best vendor of Maruti and were awarded with the following awards for the year 2006-08:

	Best Quality Trophy
	VA/VE Trophy
	Tier 2 Upgradation Trophy
	Quality Systems Certificate
	Vendor Car Scheme (Hum Saath Saath Hain) Certificate
	Overall Best Performance Vendor Shield

The strong foundation of quality, productivity and manufacturing excellence built by your company is helping us in consistent future growth. The Indian automobile Industry is witnessing substantial growth in the last few years. The opportunities are unlimited, as the automobile industry is very buoyant with a large number of new models lined up for launch in next couple of years. This gives us ample opportunity to capitalize on this situation. I am pleased to inform you that this year we were successful in development of the HVAC (Heating, Ventilation & Airconditioning Systems) for customers' new projects.

Net sales during the year 2007-08 increased by 2.40% and the profit before tax has increased by 2.77% over the previous year. Your company was able to increase its net profit after tax to net sales ratio from 4.29% in 2006-07 to 4.32% in 2007-08.

I am thankful to the Subros team for their full dedication, our customers and bankers for their continued support.

I thank all of you, our shareholders, for showing your faith and confidence in us.

Ramesh Suri
Chairman