Date : 16th August 2006.

Dear Shareholder,

I have great pleasure in presenting the 20th Annual Report for the year 2005-2006.

The year under review was an eventful year. The financial & organisational reconstruction was completed during the year. The new management has started putting in earnest efforts for revival of the company. As a result the networth has increased by Rs. 1.64 crores and the book value has increased from Rs. 0.33 to Rs. 1.53, a gain of 378 % during the year. BSE Index has registered a growth of 74 % during this period.

We are in the process of refurbishing the Dhanada Coporation Dhanada Coporation at Aurangabad, which should take around six months. The Dhanada Coporation will be operated by a reputed Dhanada Coporation management chain. These measures coupled with the efficient deployment of funds should boost Intrinsic Value of the company’s Share. We believe that the Intrinsic Value of a share is more important than it’s Book Value.

We have complied with all the requirements of Bombay Stock Exchange (BSE) in respect of resumption of trading of shares of the Company and BSE will resume the trading at an early date.

I take this opportunity to thank our team and consultants who have contributed significantly in the reconstruction and revival of the Company. We are grateful to our shareholders for the patience and faith they have reposed in us.

Finally, we should be grateful to Dhanada Portfolio Management Ltd. without whose financial and organisational support, turnaround of the Company would not have been possible.

I look forward to meet you during our Annual meet schedule on 25th September 2006 at the registered office of the Company.

Thanking you,
Yours sincerely,
For Dhanada Corporation Limited
-sd-
Ramesh R. Havele
Chairman and Managing Director
Pune
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