Dear Shareholders

I am delighted to write my first letter as the Chairman of the Company.Ever since welcoming CG Power as a subsidiary of Tube Investments in the MurugappaGroup we have focused on restoring the company to its former glory. And we have madesignificant progress in this direction over the last one year.

CG Power in my view has always stood as a company with a richrepository of engineering capabilities technological know how and enviable customerequity in the Indian Capital Goods sector. Its business presence across three GDP-enablingsegments of Energy (power) Industrial (manufacturing) and Logistics (railways) positionsit at a sweet spot when the country is aspiring to ‘Make in India for theWorld'.

The Company had however gone through a turbulent phase of almost threeyears just before Tube Investments stepped in. It was a matter of great satisfaction tosettle outstanding dues of employees vendors and other creditors as the first step ofrevival.

The second priority for us was to restore normalcy of operations acrossall the business divisions. Timely infusion of working capital together with quick andsmooth alignment of leadership teams and the talent pool has helped us accomplish thisgoal. This has enabled sequential improvements in quarterly financial performance of theCompany. With more and more steps being taken towards strengthening customer engagementsupply chain talent ramp up new product development and exploration of new markets andsegments we believe there is significant growth opportunity going forward.

Our third priority a little more structural and time consuming is tointroduce and embed a high level of corporate governance fiscal prudence and riskmanagement. We are adopting a two-pronged approach towards this. Firstly we areaddressing legacy issues while also making a fair assessment of value erosion in therecent past especially in the background of recent controversies that the company wasmarred with. On the other hand we are evolving a robust framework of risk management andcorporate governance one that corresponds to the nature and size of business that weaspire CG Power to grow to over the coming years.

I would leave the commentary on company's business performance forthe next year as we hardly had 4 months of operations after the ownership transition inthe financial year 2020-21. Yet the latest quarter's (Sep 2021) revenue ofRs. 1454 crore and EBITDA of Rs. 186 crore indicate of a quick and strong turnaround.

An important facet of your Company as we discovered post acquisitionhas been the deep conviction and loyalty of its talent pool towards its relevancecompetitiveness and future success. Treating this as a potent asset we have workedclosely with the leadership team across business divisions and functions with anempowering approach. Our decision to operate CG Power as a standalone entity while subtlyintegrating the cultural ethos of the Murugappa Group shall help the Company evolve in thenear to medium term.

The second priority for us was to restore normalcy of operations acrossall three business divisions. Timely infusion of working capital together with quick andsmooth alignment of leadership teams and the talent pool has helped us accomplish thisgoal.