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witnessed difficult economic conditions which prevailed fromSeptember, 2008 onwards.In terms of Unit sales, 922 Units of Machines were sold with anorder backlog of 54 Units valued at Rs.2254 Lacs.In the Construction sector, the road segment showed somerobust growth till September, 2008. The economic slowdownresulted in projects seeing deferment in time schedules. Duringthis period, CMS executed order of 199 Units valued at Rs. 8676Lacs for customers in the road segment. In terms of mining,further progress was made with the sale of Dumpers in thegrowing Cement segment valued at Rs.600 Lacs. During the firsthalf of 2008-09, the despatches from Caterpillar were under themanaged distribution system. The orders placed with Caterpillarwere despatched after a gap of 3 to 4 months. During this period,this led to the situation of having large inventory during thesecond half of 2008-09, as orders placed on Caterpillar duringthe second quarter of Financial Year 2008-09 were received byus during the second half of 2008-09 when the slow down inthe economy had already crept in. Consequently the inventoryincreased substantially which led to a steep rise in the financingcost for this division. While many Road Projects have beenawarded, but most are on hold pending Bank financing. Bankfinancing to this sector has witnessed a dramatic drop in the2nd half of 2008-09.In the mining sector, coal mining opportunities continue, howevermetal mining has had a set back because of the low commodityprices.Despite a setback in the Steel industry, machines like Truck TypeLoaders valued at approximately Rs.470 Lacs were sold to anestablished Steel manufacturer. The rapidly growing Back HoeLoaders (BHL) market showed the maximum de-growth amongstconstruction equipment. This was largely due to the credit squeeze,delays in projects and with “first time buyers” who normally forma large segment of buyers being affected with the changed marketdynamics. However, the Company continued to invest in thisproduct category with dedicated sales resource and operationsthrough extension of Branches for enhanced market coverage.Additional focus was given to Rental Business to offer InnovativeEquipment Acquisition Option and viable Rental alternative tocustomers. New business systems and processes were introducedto improve efficiency and customer satisfaction through bestpractices.TIL Rental Fleet recorded 100 Units and thereafter surpassed 150Units for the first time. To improve coverage and be close to thecustomers, Rental was also promoted from TIL outlets in Dhanbad,Jamshedpur, Kolkata and Ranchi besides dedicated Rental Storesat Asansol, Bhubaneswar, Lucknow, Sahibabad, Chandigarh andUdaipur.Power Systems Solutions (PSS)PSS accounted for 21% of revenue earning during the period underreview – in terms of Units, 432 engines were sold in this year.In the petroleum segment, the business continued to support theimpressive contract with ONGC for supply of CAT-3512 engines, forrefurbishing the ONGC Rigs as replacement for old CAT engines.This apart, ONGC reconfirmed its confidence on TIL with the AnnualMaintenance and Parts Contacts. Apart from supporting leadingconstruction companies for reliable on-site construction powerin difficult areas, TIL has begun supporting the growing businessdemands of Gas compressor station engines at automobile CNGfilling stations.Given the overall economic environment, it is significant to notethat through conscious efforts, the Company has endeavored tobroad base its customer profile and seek new opportunities andcustomers. During the year under review, CMS brought in 377 newcustomers whilst PSS included 367 new customers in its fold.OPPORTUNITIES AND THREATSDuring the second half of the Financial Year 2008-09, India startedwitnessing a slow down in the economic growth. Much of theinvestments that were planned during that time frame have notfructified. Many key projects which were to be financed duringthe Financial Year 2008-09 have been deferred. It is expected thatthe investments in the infrastructural industry will materialize andincrease significantly with the finalization of the key projects whichincludes construction of Expressways, Flyovers, Metro railwayprojects, SEZs and investments in the major Ports, privatization