TWIN – TWIN ACCOMPLISHMENTS !

It gives me immense pleasure to keep you posted of recent developments at your Company.

Suprajit has acquired the business and assets of CTP Gills Cables, a Birmingham, UK based automotive cable manufacturer from Carclo plc, through our 100% owned subsidiary Gills Cables Limited. The customer profile of CTP Gills Cables includes Ford, Toyota, Jaguar, General Motors, Saab and other automotive and Tier 1 customers.

Suprajit has also acquired the balance 50% stake held by Carclo plc in the Indian Joint Venture - CTP Suprajit Automotive Private Limited, which perhaps you will remember, was set up as a 100% EOU. The commercial production at the Indian 100% owned subsidiary for European and other markets has started.

Total consideration for the twin acquisitions is approximately Rs.250.00 Million.

With these acquisitions, Gills Cables, UK will now onwards act as a major Technology Centre for Global activities of Suprajit and handle most logistics for the European activities. It will maintain a manufacturing base in the UK for speciality and low volume cables. The Indian subsidiary will produce bulk volume export cables.

The twin acquisitions will bring significant synergies to Suprajit in terms of its manufacturing activities, technical competence, warehousing and logistic capabilities. Suprajit will acquire Global reach through its UK and Indian subsidiaries.

I further have immense pride to inform you that your Company has bagged following two awards in CNBC-TV18's Emerging India Awards 2005-06, presented by ICICI Bank, powered by CRISIL.

Your Company will setup a new cable plant in Pantnagar, Uttaranchal, where groundbreaking has taken place on 10 th May 2006. We will be adding additional building, plant and machinery at our Manesar, Bangalore and Doddaballapur units as well. The total cable capacity, including 100% EOU, is expected to reach 75 million cables in the next 12 months.

Suprajit's consolidated revenues is expected to double in the next two years through these acquisitions and domestic growth, from its present level of around Rs.136.00 crores achieved during the year 2005 – 06.

The auto component sector continues to offer significant opportunities globally. These are exciting and challenging times for your Company. I believe that we are in the right path of continued growth and global quest, and that, this will bring value to all stakeholders of the Company.

To this end, I seek your continued support and good wishes to make Suprajit a globally competitive manufacturer in terms of Quality, Cost, Delivery and Development.

With warm personal regards,

Yours sincerely,

K. AJITH KUMAR RAI.
MANAGING DIRECTOR.