Dear Shareholder(s),

The year 2008-09 has been the most difficult year for the global economy in the last 75 years. It began with global inflation and ended with the sharpest decline in global trade & GDP since the Great Depression of the 1930s.

The economic slowdown still continues. Every economy is either suffering from shrinking GDP or rapidly reduced growth. Now the financial crisis is showing signs of improvement, thanks to unprecedented monetary and fiscal interventions by governments and central banks.

India’s growth is down from the 9% plus range of the last three years to 6.7% in 2008-09 and will probably be the same in 2009-10.

Inspite of various odds in global economy including India, your Company is able to achieve sales as well bottom profit as of last year.

There is no doubt that 2008-09 had been an extremely difficult and stressful year for your company. Two questions arise, first what have we done in the short run to deal with this crisis? Second, and more importantly, what are we going to do over the medium and long run? In the short run, we focused on cutting cost, reducing working capital and aligning production to demand. We focused on reducing inventories, receivable and put a freeze on all capital expenditures.

We expect the auto business to be on the faster growth track by the end of 2009-10. Though, it will not have the same growth like what we have seen in the earlier years. The environment will continue to be challenging, which will be considered as opportunity to improve our productivity.

Further, I wish to share that the Battery Plant, which was set up at Pant Nagar, Uttranchal will start manufacture Starter Battery from 2.5 AMP to 50 AMP. The last year was the first full year of production of this plant. Now, we expect to generate profit from this year.

Secondly a Blow Moulding Unit has been successfully set up at Bangalore for manufacturing of Blow Moulded Parts such as Air Duct, Deek Board, Reservoir Tanks Spoilers and Arm Rest, in technical assistance with M/s. Pt.Kyoraku Blowmoulding, Indonesia. The Commercial Production of this unit was started in the month of September 2008. The Company foresees great future in this product line and expects a good business.

And I would also like to share that your Company is entering into the 4W Head Lamp business. The plant is to be set up at Pune, Chakan to effect the supplies to OEM including Volkswagen, Maruti and Tata.

Many thanks to the employees and other stakeholders of your company for the outstanding work that they have done in an extremely difficult year and for your continued support.

Thank you.

	S.L. Minda CHAIRMAN Minda Industries Ltd. July 29, 2009