Year Ended March 31, 2008 - Lumax Auto Technologies Ltd.

Lumax Auto Technologies Ltd.DIRECTORS' REPORTLumax DK Auto Industries LimitedRegd. Office : B-86, Mayapuri Industrial Area,Phase - I, New Delhi - 110064Dear Members,Your Directors have pleasure in presenting the Eleventh Annual Report together with Audited Balance Sheet and Profit & Loss Account forthe year ended 31.03.2008.FINANCIAL RESULTSOPERATIONSRs (in lacs)2007-08 2006-07Sales (Net of Excise) 11395.64 5603.02Gross Profit 1698.42 676.23(-) Interest(-) Depreciation131.02197.1774.0284.09Profit before Tax (PBT)Your Directors are pleased to report the remarkable results for the year ended March 31, 2008. For the Financial Year 2007-08 your Company hasachieved net sales revenue of Rs. 11,395.64 lacs as against Rs.5,603.02 lacs in the previous year showing an impressive growth of 103%. TheProfit after Tax has also increased from Rs. 338.81 lacs to Rs. 913.67 lacs in the current Financial Year registering a remarkable growth of 170%over the previous year.Your Company has also commenced commercial production of its Pantnagar Unit in Uttarakhand for manufacturing Automotive Lightings andoperations have been stabilized during the year. The Directors feel pleasure to inform that all major OEM's who have visited the unit hasappreciated the operations of the unit and rated the plant as best plant of its kind in India. Due to slow down in two wheelers industry the plantcould not achieve the projected turnover. However, the stringent control over the cost and overheads helped to maintain the profitability in the veryfirst year of operation.The Gear Shifter Division of your Company has been selected as Supplier for the Gear Shifting Systems by M/s Toyota Kirloskar Motor, for theirsmall car Project after stringent evaluation procedures.Your company has been accorded with ISO 14001 certification during the year and the Gear Shifter Division has received two prestigious awardsfrom Maruti Suzuki India Ltd. (MSIL) for excellent implementation of VA/VE activities and MPS project sponsored by the MSIL.During the year Company has also entered in to a Technical Assistance Agreement with MANNOH, Japan who are world leader in manufacturingCable type Gear Shifters.DIVIDENDIn order to augment resources for future expansion plans, your Directors do not recommend any dividend for the year.DIRECTORSMr. Anmol Jain retires by rotation at the ensuing Annual General Meeting pursuant to the provisions of the Companies Act, 1956 and Articles ofAssociation of the Company, and being, eligible, has offered himself for re-appointment.AUDITORS(-) Provision for Income TaxDeferred Tax and FBTProfit after Tax (PAT)(+) Balance in P& L A/c b/fProfit available for AppropriationProposed DividendTax on Proposed DividendBalance retained in P&L a/c1370.23 518.12456.56 179.31913.67 338.81411.39 72.581325.06 411.39- ---1325.06 411.39J.C. Bhalla & Co., Chartered Accountants retire as Auditors at the conclusion of the ensuing Annual General Meeting and being eligible offerthemselves for re-appointment at a remuneration to be fixed by the Board.The Auditors have not made any adverse remark in their report except about slight delay in remitting some statutory dues in few cases, whichhave since been paid.43