To The Shareholders,

Indian economy has been growing quite impressively as compared to many of its counterparts across the globe. Despite some impediments such as stagnancy in developed countries, soaring prices of crude and oil, mounting inflation etc., India is certainly poised for aggressive growth in next few years. Containing inflation without adversely affecting flow of investment and growth momentum will be the key challenge and top priority for the Government.

The biggest beneficiary of the economic growth has been the construction industry. Investment in construction industry accounts for nearly 15% of India's GDP and it has made significant contribution in sustaining growth too. So far, the main contributors to the growth of construction industry and the infrastructure sector have been roads, highways, real estate and airports but it is expected that other sectors like power, SEZs, metros, ports and urban infrastructure will also be the key drivers for the coming years.

I have a great pleasure in sharing with you some of the major achievements of the company during the year. For the second consecutive year, the turnover and profit before tax have increased by more than 80% over the previous year. We could have performed even better but due to some external and unforeseen constraints, we fell short of another milestone. As per the special edition of Business Today of June 2008, JMC has been ranked as 6th fastest growing Small Companies of India which is indeed a matter of pride for all of us. It will be our continuous endeavor to strive for new heights of success in coming years.

Investment of Rs. 200 billion is expected in Power sector by the year 2012. One of the major achievements during the year was consolidation of our business in Power sector. We received projects for all major clients such as NTPC, BHEL, Reliance, Elecon and Alstom. Reasonably good progress in executing these projects has increased the level of confidence about our capabilities which will go a long way in establishing our place as a major player in power sector. While infrastructure sector continue to grow steadily, the Company has been successful in getting large building projects from reputed clients signifying the utmost trust and confidence in your
company's capabilities in meeting with client's expectations and delivering the results.

As a part of our strategy to expand geographical spread, we made foray into Eastern region by setting up new office in Kolkata and within a period of few months, we have started getting major orders from eastern region. Looking to business potential of this region, the company is expected to tap quite a few upcoming opportunities.

We have been successful in getting major orders in water / drainage pipelines during the year. For the first time, we have successfully commissioned RCC pipe manufacturing plant near Bhopal to enhance vertical strength for pipeline projects. We are also focusing other areas such as BOT projects, EPC for developers, railways, airports, urban infrastructure etc. which are going to be major thrust in coming years.

In the coming year, we will have major challenge of achieving time bound execution of critical projects despite of acute shortage of manpower and delays in availability of work fronts. We are looking for ways and means to reduce dependence on manual work and increase productivity by adopting latest technologies and mechanisation of key activities.

To attract and retain best talent and skilled manpower, the company has introduced ESOP Scheme during the year. It will serve as good reward mechanism for the employees and ensure stability in the organization through retention of key personnel. The Company believes that employees should acquire and enhance skills on continuous basis which can provide a better platform for individual growth and take greater responsibilities. Under the able and visionary leadership of Group Chairman Shri Mofatraj Munot, Kalpataru group has started 'Kalpa-Vriksha Learning Centre", which is the state of the art and fully equipped facilities for conducting knowledge management programs. We are confident that our wealth of talented employees will enable us to derive competitive edge and deliver the best to our customers, despite challenging times.

Having reasonably good order backlog of nearly Rs. 25,000 million and few more orders expected, the Company is poised to achieve substantial and healthy growth in the coming year. We look forward to the continued support of all its stake holders on its journey to profitable growth and success.

Before I conclude, I wish to place on record my appreciation for the outstanding commitment and dedicated efforts of all our employees. I am also grateful to our clients, bankers, vendors and business associates for their unstinted support and confidence reposed on us.

Hemant Modi
Vice Chairman