Titagarh Wagons Limited

CHAIRMAN’S SPEECH

Dear Shareholders,

It is my pleasure to welcome you all to the 14^th Annual General Meeting of TITAGARH WAGONS LIMITED as I get this opportunity to meet and interact with you, something that I eagerly look forward to.

The Directors' Report, Management Discussion & Analysis and the Statement of Accounts for the financial year ended 31^st March, 2011 have been with you for some time now and I assume that you are apprised of the Company’s performance during the last financial year.

[1]Global growth was reported to be 4.3% in the first quarter of 2011 in the wake of rising inflation and volatile financial conditions pointing to likely slowdown in the coming months, a risk that is ominous. Growth is forecast to reaccelerate. However, the recovery will remain two-speed in nature, with emerging and developing economies posting strong growth but not in advanced economies.

[2]Indian economy is expected to record slightly lower growth of @7.9% approximately against the last year’s 8.4% mainly due to incessant rise in prices of inputs due to high inflation rate. Maintaining fiscal discipline is essential to not only contain the deficit but also bring the desired growth in GDP back on track.

I believe you would approve the dividend of Rs.8/- per share recommended by the Board. The recommendation is justified by the increase in the key parameters of financial performance of your Company which was achieved inspite of the release of order for Wagons in the last week of September, 2010. I would like to congratulate the management team, whose dedication is behind your Company’s notable performance during the financial year ended 31st March, 2011.

Release of further order for Wagons is awaited even as your Company is sharply focused on improving the production and sales of other products in its portfolio viz. EMUs (Rail Coaches) and Heavy Earth Moving Machinery. Revival of Cimmco Limited with our managerial, financial and technical support, in a short span of 9 months has been a commendable feat and Cimmco has started earning profit. The processes at Titagarh Wagons AFR, the rolling stock manufacturing unit recently acquired in France are being streamlined and it is expected that the Unit also would contribute suitably to the consolidated results.

Your Company is pursuing organic growth through participation in various projects including Metro Rail Coaches announced by the Indian Railways and also watching the progress of Dedicated Freight Corridor undertaken by the Railways at massive capital outlay of over Rs.2300 billion which is expected to present huge opportunity for the manufacturers of products and services in railway sector. Overall, I can share my positive outlook for the future of your Company as we continue our endeavours for achieving the organisational mission with due attention to our corporate social responsibility.

I express my deep appreciation for your support in the achievements made by your Company and I would look forward to your continued understanding and cooperation in future too.

I am thankful to my colleagues on the Board for their wise counsel and acknowledge the contribution of all the employees and business partners of the Company and count on this constructive & cordial association to continue.