As we face the future, let us continue to strive for excellence and rise to challenges ,as we have done before. Let us be more aggressive in incorporating expansion possibilities in our growth plans. Let us ensure that our strategies and our actions will enable us to always LIVE THE FUTURE! I am confident that we can count on your continued support and commitment to achieve greater heights in the years ahead.

The year 2007-08 represents yet another year of sustained growth. During the year, the total turnover of the Company stood at Rs. 44,601.52 Lacs as against Rs. 34,835.05 Lacs during the previous year. The profit after tax was Rs. 1926.48 Lacs as against Rs. 1824.71 Lacs during the previous year.

As always Fedders Lloyd has been pioneer in the air-conditioning industry in India with wide presence in all types of air conditioning needs including air handling units, fan coil units, heat transfer coils, air distribution products, etc. Our business philosophy is to maximize the customers' satisfaction through innovative and quality products supported by efficient after sales services. During the previous year 2006-07, we have also ventured into retail division which includes wide range of consumer durable products and appliances.

We have recently diversified into Structural Steel Fabrication, and Erection which has good market in India. This division specializes in and caters to structural steel buildings with focus on turnkey solutions, i.e., design, manufacturing, construction, civil work & maintenance, scaffolding catering to construction and infrastructure in domestic as well as overseas market, structural steel buildings such as power plants, refineries, multi-storeyed buildings and pre engineered buildings like industrial sheds, warehouses, metro stations etc.

Our highest priority is to provide quality products and best engineering solutions to our customers. We have to become a "Progressive Organization" endeavouring to further improve its business practices and enhance Shareholders' value.

We at Fedders Lloyd trust and acknowledge the inherent capabilities of its people. The people at Fedders Lloyd have diversified backgrounds, talents, knowledge and experiences. The Company ensures that sound and cordial relations with employees are maintained at all levels. We consider our people as valuable work force and create an atmosphere of appreciation, recognition and reward. During the year under review, we have established a wholly owned subsidiary-Fedders Lloyd Trading, Free Zone Establishment (FZE) in Ras Al Khaimah Free Trade Zone, U.A.E. for carrying out the imports, exports, trading in Electrical goods, consumer durable, Air Conditioners, A.C. Components, steel fabrication items, etc.

Conservation of Energy is one of the main focus. We strongly emphasis on replacing low energy efficiency systems and installation of effective energy systems to save energy costs. As a part of our continuous endeavour towards conservation of energy and prevention of energy wastage, our NOIDA factory has upgraded the power plant substation with additional control panels for automatic power factor correction and also with automatic sectionalized control system to utilize power efficiently according to the actual segmented demand.

The measures for conservation of energy consumption have impacted in achieving reduction in power and fuel consumption. We urge all employees to contribute in all possible means for conservation of energy.

Mr. Brij Raj Punj
Chairman