To The Members of Aditya Ispat Limited, Hyderabad
 
 The Directors take pleasure in presenting the Twenty First Annual
 Report on the affairs of the Company for the financial year 2011-2012
 together with the Audited Financial Statements and Report of the
 Auditors thereon.
 
 BUSINESS PERFORMANCE:
 
 Financial Results:
 
 The overall performance of the Company for the financial year 2011-12
 is summarized as under:
 
                                                     ( Rs. in Lakhs)
 
 S.No.   Particulars                           2011-2012   2010-2011
 
 1.      Sales ( Gross)                          1815.00     1441.50
 
         Less : Excise Duty                       133.42      111.10
 
         Sales ( Net)                            1681.58     1330.40
 
 2.      Other Income                               1.56        1.36
 
         Total Revenue                           1683.14     1331.76
 
 3.      Gross Profit before Finance Costs,
         Depreciation, & taxation                 106.84       82.80
 
 4.      Financial Costs                           59.52       38.96
 
 5.      Depreciation                              15.29       12.97
 
 6.      Profit before tax                         32.03       30.87
 
         Less: Provision for current tax            8.60        4.96
 
         Less : Provision for Deferred Tax          1.28        4.63
 
         Net Profit(loss) after tax                22.15       21.28
 
         Add: Balance from previous year           91.68        70.4 
 
         Surplus carried to Balance Sheet         113.83       91.68
 
 BUSINESS REVIEW
 
 During the year 2011-12, the Company has posted a turnover of Rs.
 1815.01 lakhs as against Rs. 1441.50 lakhs in the previous year and
 has earned net profit of Rs. 32.03 lakhs before tax compared to
 previous year''s profit of Rs. 30.87 lakhs. There is an improvement in
 profitability due to increase in turnover and on account of cost
 effective means adapted by the management for production. However on
 account of inadequate profits, the Board has not recommended any
 dividend nor any transfer to reserves.
 
 FUTURE OUTLOOK:
 
 Indian Steel demand growth is expected to remain subdued due to
 slowdown in investments and delayed start-up of industrial projects.
 However,the automotive/industrial segment, it is expected to grow by
 11-13% in Financial year 2012-13. As per world steel forecasts, steel
 demand in India should grow up by 6.9% in 2012 and the growth should
 accelerate to 9.4% in 2013.
 
 Your Company has registered increase in sales Turnover as well as
 Profitability during the year under review. The company is making all
 efforts to improve the quality of its products, sales network and
 profitability
 
 FINANCIAL RESOURCES
 
 The company has made arrangements with its Banker to enhance cash
 credit limit from Rs. 400 lacs to Rs. 600 lacs to meet its working
 capital requirements. This will help Company to boosts its turnover in
 the coming years.
 
 DIRECTORS:
 
 Shri H.M.Duggar retires by rotation and being eligible offers himself
 for reappointment. The Board recommends his reappointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 In accordance with the provisions of Section 217(2AA) of the Companies
 Act,1956, your Directors state:
 
 1.  That the accounting standards to the extent applicable to the
 Company have been followed in the preparation of the annual accounts
 and there are no material departures
 
 2.  That the accounting policies selected by the Board for the purpose
 of preparation and presentation of the financial statements have been
 and are being applied consistently and reasonable and prudent judgments
 and estimates (wherever applicable) have been made for the said
 purpose, so as to give a true and fair view of the affairs of the
 Company as at the end of the financial year under review and of the
 profit and loss for the said year.
 
 3.  That proper and sufficient care has been taken for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of your company and for
 preventing and detecting fraud and other irregularities.
 
 4.  That the annual Accounts have been prepared on a going concern
 basis.
 
 AUDITORS:
 
 Statutory Auditors
 
 M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
 the company retire at the conclusion of the ensuing Annual General
 Meeting and are eligible for reappointment. The Board recommends their
 reappointment.
 
 Cost Auditors
 
 Your Company have appointed M/s Sagar & Associates, Cost Accountants,
 Hyderabad, as Cost Auditor, with the approval of the Central
 Government, for audit of cost records maintained by the Company for the
 financial year ended 31st March, 2012. The due date for filing the Cost
 Audit Reports is 30th September, 2012.
 
 LISTING :
 
 The shares of your company are listed on Mumbai and Kolkata Stock
 Exchanges.
 
 PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
 
 There are no employees whose particulars are required to be disclosed
 pursuant to the provisions of Section 217 (2A) of the Companies Act,
 1956.
 
 FIXED DEPOSITS:
 
 During the year under review, the company has not accepted any deposits
 under Section 58A of the Companies Act 1956 read with Companies (
 Acceptance of Deposits) Rules, 1975.
 
 CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
 ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
 Information regarding Energy Conservation, Technology Absorption,
 Foreign Exchange Earnings and outgo in accordance with Section 217
 (1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
 particulars in the report of Board of Directors) Rules 1988, forming
 part of the Directors Report for the year ended 31st March, 2012 are as
 follows:
 
 1.  Conservation of Energy: The company''s operations require low energy
 consumption. Adequate measures are taken to conserve energy wherever
 possible. The details required are attached herewith.
 
 2.  Technology Absorption:
 
 a.  Research & Development     There is no specific Research and
                                Development activity carried out 
                                by the Company during the year.
 
 b.  Technology Absorption      NIL
 
 3.  Foreign Exchange Earning 
     and Outgo                  NIL
 
 CORPORATE GOVERNANCE:
 
 The company has implemented the Code for Corporate Governance as
 stipulated under the revised Clause 49 of the Listing Agreement. A
 separate report on Corporate Governance is annexed to this report.
 
 CODE OF CONDUCT
 
 The Company has adopted a uniform Code of Conduct for Directors and
 Senior Management and above Officers level to ensure ethical standards
 and ensure compliance to the laid down standards.
 
 DEMATERIALISATION OF SHARES:
 
 M/s. X.L Softech Services Limited, Hyderabad were appointed as
 Depository Registrars for dematerialization of shares as well for
 transfer of physical shares were entrusted to them.
 
 The ISIN of dematerialized share of the Company allotted by NSDL and
 CDSL is INE570B01012.
 
 ACKNOWLEDGEMENTS:
 
 The Board takes this opportunity to express its deep gratitude for the
 continued co-operation and support received from its Bankers, State and
 Central Governments, the customers, share holders, business associates
 and employees during the year under review.
 
                                 On behalf of the Board of Directors 
                                                                Sd/-
 
                                                         S.B CHACHAN
                                        CHAIRMAN & MANAGING DIRECTOR
 
 Place: Hyderabad.  
 Date : 31st August, 2012