Global Meltdown has also affected the Indian Economy resulting in the slow down of the automotive industry. With the beginning of the new financial year, I feel the responsibility to share the exact situation on the world economy and how it impacts our company.

"Mr Arun Nanda, Executive Director, M&M Ltd, while addressing the Anand Supervisory Board emphasized that the recession in the US was a direct result of the Greed of American Investment Bankers in indiscriminately financing sub-prime loans, he also reiterated that the Indian Economy was to an extent buffered from the impact due to a high saving rate of 35.4% and could withstand the pressures to some extent as also the psychological fear created in the minds of the Indian investor by the withdrawal of USD 26 Billion by Foreign Institutional Investors."

The Global Economy has yet to show the signs of recovery and improvement which has affected several major industries like Finance, Construction, Retail and Automotive. As a result of the recession the purchasing capability of the individual declined, affecting the sales of vehicles. The fewer sales and productions of vehicles led to the lesser demand for components from the suppliers like Anand Automotive Limited.

Three major US car companies Ford and General Motors had to go through difficult times which have impacted the components industry very badly. Toyota, for the first time, reported a hefty loss during the past year.

While I expect some improvement towards the later part of this year in Indian Economy but we still need to -

	Trim Fixed and Variable costs in our respective sphere of work because every rupee saved is a rupee earned.
	Find unique ways to provide support to our Customers as their success is critical to our success
	Do multi-tasking so that the employees cost can be reduced wherever possible
	Together work towards keeping the Group healthy so that it can compete in today's difficult environment and also propel itself forward once the economic situation and the Automotive Industry begins to turn around.

I want to thank you all for continued dedication in serving our Customers while taking necessary steps to manage today's challenges. I would like to reiterate that in every adversity there is an opportunity and we need to use this opportunity to become more lean, innovative, focused and accountable.

Mr. Deep C Anand
Chairman, Anand Automotive Limited