I welcome you all to this 30th Annual General Meeting.

The annual accounts and related reports for the year have already been sent to you and I am sure you would have gone through them in detail.

The year 2009/10 started on a depressing note with the main Bus Body building plant continuing to be shut down due to severe demand contraction which had affected the operations during the second half of the previous financial year. Despite best efforts, the Company could not avoid the losses; mainly due to the unfortunate labour unrest during the peak month of the financial year. I am sure that the lessons learnt from this experience will prevent recurrence of such incidents in the future.

You will recall that I had mentioned about the demand from the domestic market under the JnNURM scheme of the Govt. of India coming to the rescue in the face of severe demand contraction from the company’s traditional markets in the Middle East and Africa. In the event, the change over from the normal production line to the completely new design and the consequent changes in the manufacturing processes of the JnNURM buses for the State Road Transport undertakings posed a serious challenge and I am happy to inform you that everyone in the Company rose to the occasion to meet the requirements successfully.

The Company also made efforts to convert the low demand problem into an opportunity by foraying into the domestic market directly and bagged orders for over 600 buses during the year which is indeed creditable. The brand equity the Company has earned over the years for safety, comfort and economy of operation of its buses is beginning to pay dividends. The company hopes to increase its direct market footprint aggressively in the coming years.

We are acutely aware that we have suffered a set-back in our investment plans during the last couple of years due to adverse market conditions. We thought it prudent to conserve cash and wait for an opportune time to invest the balance money raised through the rights issue in 2007 profitably. Now that the markets are looking up, I am happy to inform you that plans are being drawn to invest the balance amount in the current financial year. As soon as these plans are finalised, we will share the same with our members. I seek your forbearance till then.

It has been a long journey since 2001 when we restructured the operations of the Company and thanks largely to Tata Motors; we have been able to re-establish the Company on firm footings. I would like to specifically thank Mr. P M Telang and Mr. R S Thakur, who recently stepped down from the Board, for the yeomen service they have rendered during this period but for whom, we would not have been able to be where we are today. I also take this opportunity to thank Mr. N R Menon, who relinquished office on the 31st of July, and Mr. S M Kuvelker, who is relinquishing office from tomorrow. Together, this team has put in an excellent performance and I am sure all of you will join me in thanking them and giving them a big ovation.

In conclusion, I thank you once again for the faith you have reposed in the company. I also take this opportunity to thank our promoters, the Govt. of Goa and Tata Motors and all other stakeholders in the Company for their continuing co-operation.

S V Salgaocar

Honda

7th August, 2010.