TO THE MEMBERS of AHMEDNAGAR FORGINGS LIMITED
 
 The Directors have pleasure in presenting the Thirty Fourth Annual
 Report and the Audited Accounts of the Company for the year ended 30th
 June 2011.
 
 FINANCIAL INFORMATION
 
                                                       (Rs. in Lacs)
 
 PARTICULARS                          Year ended         Year ended
 
                                  30th June 2011     30th June 2010
 
 Sales & Other Income                      93725              66533
 
 Expenditures                              73497              52788
 
 Gross Profit Before Depreciation          20228              13745
 
 Depreciation                               4995               4332
 
 Profit Before Tax                         15233               9413
 
 Tax Expenses                               4418               3004
 
 Profit after Tax                          10815               6409
 
 Add : Accumulated Profit                   4835               3304
 
 Balance available for appropriation       15650               9713
 APPROPRIATIONS:
 
 Transfer to General Reserve                5000               4000
 
 Transfer to Debenture Redemption Reserve
 
 Transfer to F.C.C.B. Redemption Reserve
 
 Proposed Dividend on Equity Shares          735                735
 
 Dividend & tax for Previous year(not 
 appropriated in previous year)                -                 22
 
 Corporate Dividend Tax                      119                122
 
 Surplus Carries to Balance Sheet           9796               4834
 
 
 
 BUSINESS PERFORMANCE
 
 During the year under review, the Turnover of the Company was Rs.
 93,725 Lacs compared to the previous year of Rs.66,533 Lacs, recording
 an increase of 40.8% year on year. The Profit after Tax of the Company
 for the year is Rs.10,815/- Lacs as compared to the previous year of
 Rs.6,409 Lacs, recording an increase of 68.74% year on year. The
 Company has a strong reserve position of Rs.58,496 Lacs.
 
 DIVIDEND
 
 The Board of Directors is pleased to recommend a dividend of 20 % of
 the face value of each equity share for the financial year 2010-11 for
 shareholder approval. This corresponds to Rs.2.00 per equity share
 each with a face value of Rs.10.00 each fully paid up. The proposed
 dividend, if approved, at the ensuing Annual General Meeting, would
 result in appropriation of Rs.854 Lacs (including Corporate Dividend
 Tax of Rs.119 Lacs) out of the Profits after Tax. The Company has made
 a transfer of Rs.5,000 Lacs to the General Reserve.
 
 The Register of members and share transfer books shall remain closed
 from 28m December 2011 to 31st December 2011 (both days inclusive), for
 the purpose of Annual General Meeting and payment of the dividend.
 
 DIRECTORS
 
 In accordance with Section 256 of Companies Act, 1956 and the Article
 of Association of the Company, Mr. Arvind Dham & Mr. Vivek Agarwal
 Directors of the Company retire at the ensuing Annual General meeting
 and being eligible offer themselves for re-appointment. The board
 recommends their reappointment.
 
 Brief resumes of the Directors proposed to be reappointed, nature of
 their industrial expertise in specific functional areas and names of
 the Companies in which they hold directorships are provided in the
 notice forming part of the Annual Report. Further, the names of the
 Companies in which they hold the membership of the Committees of the
 Board, as stipulated under Clause 49 of the Listing Agreement with
 Stock Exchange share provided in the Corporate Governance'' Section of this
 Annual Report.
 
 
 AUDITORS                                      
 
 The Statutory Auditors of the Company M/s Manoj Mohan & Associates,
 Chartered Accountants, Delhi having firm registration No. 009195C hold
 office until the conclusion of the next Annual General Meeting and are
 recommended for reappointment. A Certificate from the Auditors have
 been received to the effect that their appointment, if made, would be
 within the limit prescribed under Section 224(1 B) of the Companies
 Act, 1956.
 
 AUDITORS'' REPORT
 
 Notes forming part of Annual Accounts, which are specifically referred
 to by the Statutory Auditors in their report, are self explanatory and
 therefore, do not call for any further comments.
 
 SHARE CAPITAL AUDIT              
 
 
 As per the directive of the Securities Board of India (SEBI) M/s Iqneet
 Kaur & Company, Company Secretaries, New Delhi, undertakes a Share
 Capital Audit on a quarterly basis. The purpose of the audit is to
 reconcile the total number of shares held in CDSL, NSDL and in physical
 form with the admitted, issued and listed capital of the Company.  
 
 The Share Capital Audit Reports as submitted by M/s Iqneet Kaur &
 Company, Company Secretaries, New Delhi, on a quarterly basis were
 forwarded to the Bombay Stock Exchange Limited and National Stock
 Exchange of India Limited where the equity shares of the Company are
 listed.
 
 FIXED DEPOSITS
 
 During the year under review, the Company did not accept any fixed
 deposits under Section 58A and 58AA of the Companies Act, 1956.
 
 DE-MATERIALISATION OF SHARES
 
 The Company''s equity shares are available for de-materialization on
 both the depositories'' viz., NSDL and CDSL.
 
 Shareholders may be aware that SEBI has made trading in your company''s
 shares mandatory, in de - materialized term. As on 30th June 2011,
 35,939,921 equity shares representing 97.8% of your Company''s paid up
 equity share capital has been de-materialised.  
 
 LISTING AT STOCK EXCHANGE)
 
 The equity shares of Company are listed on the Bombay Stock Exchange
 Limited and the National Stock Exchange of India Limited. The Company
 has paid its annual listing fee to the stock exchanges for the
 financial year 2011 -2012.  
 
 STATUTORY INFORMATION        
 
 - Particulars of Employees under section 217 (2A) of the Companies Act,
 1956 read with the Companies
 
 (Particulars of Employees) Rules, 1975 may be taken as Nil.
 
 Statutory details of Energy Conservation and Technology Absorption, R&D
 activities and Foreign
 
 Exchange Earning and Outgo, as required under Section 217(1) (e) of the
 Companies Act, 1956 and rules prescribed there under i.e. the Companies
 (Disclosure of Particulars in Report of Board of Directors) Rules, 1988
 are given in the Annexure and form part of this Report (Please refer
 Annexure- I)
 
 CORPORATE GOVERNANCE        
 
 A separate section on Corporate Governance forming part of the
 Director''s Report and the certificate from the Company''s statutory
 auditors confirming compliance of Corporate Governance norms as
 stipulated in clause 49 VI of the Listing Agreement with the Indian
 Stock Exchanges is included in the Annual Report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 The Management Discussion and Analysis of the Company''s financial
 condition including the results of operations of the Company for the
 year under review as required under clause 49 of the Listing Agreement
 with stock exchange is presented in a separate section forming part of
 the Annual Report.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement under Section 217(2AA) of the Companies
 Act, 1956, as amended by the Companies (Amendment) Act, 2000 with
 respect to Directors'' Responsibility Statement, it is hereby stated and
 confirmed:
 
 - That in the preparation of the annual accounts for the financial year
 ended on 30.06.2011, the applicable accounting standards have been
 followed;
 
 - That the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year 2011 and of the profit
 or loss of the Company for the year under review;
 
 That the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities; and
 
 - That the Directors had prepared the annual accounts for the financial
 year ended on 30.06.2011 on a going concern basis.
 
 INDUSTRIAL RELATIONS
 
 During the year under review, the relations between the Management and
 the workmen were highly cordial.  INVESTOR RELATIONS
 
 Your Company always endeavors to keep the time of response to
 shareholders'' requests/grievances at the minimum. Priority is accorded
 to address all the issues raised by the shareholders and provide them a
 satisfactory reply at the earliest possible time. The Shareholders'' and
 Investors'' Grievances Committee of the Board meets periodically and
 reviews the status of the redressal of investors'' grievances. The
 shares of the company continue to be traded in electronic form and the
 de-materialisation arrangement exists with both the depositories, viz.,
 National Securities Depository Limited and Central Depository Services
 (India) Limited.
 
 EMPLOYEE WELFARE
 
 Your Company demonstrated that it is a caring organization by
 continuing to devise and implement several welfare measures for the
 employees and their families. Employee welfare programmes and schemes
 were implemented with utmost zeal and they were constantly reviewed and
 improvements were made wherever necessary.
 
 ACKNOWLEDGEMENT
 
 Your Directors would like to place on record their appreciation for the
 contribution made by the employees at all levels, who, through their
 competence, hard work, solidarity, co-operation, support and commitment
 have enabled the Company to achieve its strong growth.
 
 Your Directors acknowledge with thanks the continued support and
 valuable co-operation extended by the business constituents, investors,
 vendors, bankers and shareholders of the Company. Your Directors also
 take this opportunity to offer their sincere thanks to the Financial
 Institutions, Banks and other Government Agencies for their continued
 support and assistance.
 
 
        
                                                 By order of the Board
  
                                       For Ahmednagar Forgings Limited
 
                                                                    Sd/-
 
 Place :    New Delhi                                     (Arvind Dham)
 
 Date  :    12th November, 2011                               Chairman