On behalf of the Board of Directors and my own, I welcome you all to the Financial Year 2003 Annual General Meeting of SONA along with the Director's Report have been with you for sometime and with your permission, I take them a read.

I TRULY APPRECIATE YOU HAVING TAKEN THE TIME TO BE WITH US THIS MORNING.

This is the second year when SONA has produced an Annual Report based o SEBI's guidelines, which includes detailed Management Discussion Analysis and Code of Corporate Governance. I hope, you have found this information useful. I will, therefore, refrain, from repeating may of the item dealt within the report, since the explanations given therein are quite exhaustive.

THE AUTOMOTIVE LEADER - MARUTI

Today, we are meeting after very successful IPO of Maruti and its listing on the Exchanges at a high premium. The overwhelming response to this Issue indicate of the approval of Maruti's strategy to continue its leadership role in the small, fuel efficient, affordable car range, by the Indian investor,

Maruti has transformed the Indian Automotive Industry since it commenced its operations in the 80's.

1. Introduced fuel efficient cars an Indian Roads.

2. Developed the Indian auto component industry by its support through Joint Ventures, which encouraged transfer of technology to India.

3. Created an excellent Dealership and Service Network, where Customer was brought to Center Stage and Customer Care became the Mantra of the Maruti Network.

4. Introduce modern logistics techniques to implement JIT delivers from suppliers from suppliers and to its own dealership network.

Your company, SONA, is one of the Joint Ventures created by Maruti, and benefited from the growth of Martuti and the automobile revolution in India. Suzuki's vision of partnering Maruti, at an early stage of the development of automobile industry in India, is a triute to its Chairman, Mr. O Suuki's vision of Martuti leading the motorization In India.

For this, I would like to, on behalf of all of us, convey through Mr. J. Surimori, to Suzuki Motor Corporation and to its Dynamic Chairman & CE, Mr O. Suzuki, our congratulations and our Thanks for his leadership.

We, at SONA continue to be committed to MarutI / Suzuki, as our partners and valued Customer.

The monsoons have finally arrived and it is expected that the agricultural growth will, at least, be 2- 3%. With Exports & Services Sector continuing to grow, and the Manufacturing Sector seeing very positive sign, it is expected that economy will grow at around 6% which will have a positive impact on the Automobile Industry.

In the future, all Indian companies will have to seek opportunity for growth, not only in India due to India Economic growth rates, but also in markers overseas, For this, a n appropriate marketing strategy will have to be articulated with a Road map, which will have to e efficiently executed. This Road Map will include setting up capacities with global markets in mind, setting up International marketing networks and infrastructure. All of this necessitates a change in the mindset of Indian Management, i.e. " Local Companies with Global View"

At SONA, we have set a target of having 20% of our sales from the global markets by 2007. To achieve this goal Koyo has made us a part of their, "Koyo Global Souring Program "for certain product range, and thus SONA is setting up an Export Oriented Unit ( 100% targets, I am certain SONA will achieve the target of 20 % exports, by 2007. We are also investing in our future, by spending in R & D, to citrate capabilities to develop original design & technology.

The Quality Management initiates which SONA commenced four years ago, with TQM practices, under the guidance of Prof. O. Tsuda of Japan has helped us achieve improvements in our Management methodology, through practices of Policy Deployment, Daily work Management

In the last year , one of the major developments, at SONA has been the redesigning of a Collapsible Steering Column which has resulted in cost reduction of 8 %,through process improvements and weight reduction of the Column by 15%. In fact, SONA has applied for Patent of this Steering Column in India, after evaluation trials at ARAI in Pune, KOYO in Japan, and at the Customers in India. This product redesign capabilities will extensively be used in future at SONA, to products at lower costs than the original products developed i Japan or Europe.

The way forward is going to be tough and we need to stay focused on Customer satisfaction, and I know the result, upon our success will be very rewarding. We, at SONA, are working to create Excellence in our manufacturing capabilities and with continuous and daily practice of TQM / TPM practices, we will satisfy our Customer Expectations, both in India and globally.

In the current year, SONA has seen record sales in the first quarter of Rs. 65 Cr. compared Rs. 46 Cr. in the last year, A growth of 41 %. This Q1 sales is only 5 % less than Q4 sales for the full year to be approx. Rs. 260 Cr. compare to Rs. 218 Cr. of last year.

We are constantly targeting to improve SONA's operating margins, and recognize that this can only be achieved if our Cost reduction achievement are faster that the price reduction our customers expert from us. This is a constant area of focus for our Management and our commitment to enhance shareholder's value can be met with improved operating margin of at least 15% against our last year operating margin of 11 %.

I wish to place on record our sincere thanks to our main customer and partner Maruti Udyog and Koyo Seiko Co. Also thanks to Toyogt Kirloskar Motors, Hyundai Motors (India), Hindustan Motors, Tata Engineering and Eicher Motors for their business support.

My deep gratitude to the members of SONA Parivar fo their dedication in making SONA a strong enterprise, and to our Vendors, Bankers and Financial Institutions for their support.

Finally, my sincere thanks to my colleagues on the board for their valuable advice and to you, our esteemed Shareholders for your confidence in the management of the company as is evidence by the share price of Sona Koyo stock which has appreciated to Rs. 155/- from Rs. 58 /-, a year back.

In conclusion, I would like to pay respect to a man who passed away last year, My father -in -law, Mr. Raunaq Singh was instrumental in encouraging me to set up an ancillary for Maruti. I thank him for having guided me, not only to set up Sona Steering, but also for having been a Mentor to me, for the 18 years I worked under his leadership in running Bharat Gears Ltd.

I salute him for his Vision, his entry and his Drive and most of all for his friendship. May soul rest in Peace.