Date : 13th August 2007.

Dear Shareholder,

I have a great pleasure in presenting the 21st Annual Report for the year ended on 31st March 2007. During this year, the net-worth has increased by Rs. 0.53 Crore and the Book Value per equity share has increased from Rs. 1.53 to Rs. 1.95, a gain of 28%, while the BSE Index has registered a growth of 17% during the year.

Over the last 2 years (that is, since the present management took over) Book Value has grown from Rs. 0.33 to Rs. 1.95, a growth of 142% p. a. while the BSE Index has registered a growth of 42% p. a. during this period.

The sincere efforts of the new management of the Company have resulted in the resumption of trading of the Company’s equity shares on Bombay Stock Exchange(BSE). The Market Price of the Equity Share on the date of signing this letter was Rs. 18.79

During the year, the management signed an agreement with Kamant Hotels (India) Ltd. a reputed company in the Hospitality Industry, for management of the Hotel Dhanada Coporation at Aurangabad, for a period of ten years. Currently, the refurbishment of Hotel is in progress under the supervision of Kamat Hotels (India) Ltd. and income from Dhanada Coporation operations is expected to begin during the financial year 2008-09.

I take this opportunity to thank our team, Consultants, Bombay Stock Exchange (BSE) and Kamat Hotels (India) Ltd. for their contribution in the reconstruction and revival of the Company. I am grateful to our shareholders for the patience and faith they have reposed in us.

I look forward to meet you during our Annual Meet scheduled on 27th September 2007 at Hotel Dhanada Coporation, Aurangabad.

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