The Directors have great pleasure in presenting the Tenth Annual
 Report of the Company together with the Audited Accounts for the
 financial year ended 31st March, 2012.
 
 Financial Highlights
 
                                                            (Rs. in Lacs)
 
                                            Current Year  Previous Year
 Particulars                                  31.03.2012     31.03.2011
 
 Revenue from Operation (net)                  92,578.32      68,840.99
 
 Other Income                                     130.97          94.34
 
 Total Revenue                                 92,709.29      68,935.33
 
 Profit before Finance Cost,                    8,927.17       6,243.25
 Depreciation and Tax
 
 Less: Depreciation & Amortisation              1,423.43       1,243.40
 
 Less: Finance Cost                             3,509.88       2,196.38
 
 Less : Tax Expenses                              669.78         378.46
 
 Net Profit after Tax                           3,324.08       2,425.01
 
 Add: Balance brought forward from              8,647.63       6,222.62 
 previous year
 
 Balance carried over to Balance Sheet         11,971.71       8,647.63 
 
 Financial and Operational Review
 
 Net Sales/Income from operation for the year stood at Rs. 92,578.32 Lacs
 registering a growth of 34.48% over previous year. The Profit after Tax
 (PAT) grew by 37.07% to Rs. 3,324.08 Lacs in 2011-12. The Cash Profit
 before tax for the year stood at Rs. 5,417.29 Lacs compared with Rs.
 4,046.87 Lacs in the year 2010-11.
 
 Dividend
 
 Your Directors have not recommended any dividend on Equity Shares for
 the year under review.
 
 New Project and Expansion
 
 The Directors of your Company are pleased to inform that the Company
 has started commercial production of its 350 TPD Sponge Iron Plant,
 Steel Melting Shop (SMS), 1 Lac TPA Wire Rod Mill and 33MW Captive
 Power plant.
 
 The capex plans undertaken by the Company consisting of 6,00,000 TPA
 Iron Ore Pellet Plant, 30 TPD DRI Kiln, Capacity addition to Wire Rod
 Mill, RM Pre-Heater, AOD Convertor, modification of Wire Rod Mill from
 MS to SS and Railway Siding are designed to increase the production
 capacity and get the advantage of cost competiveness.  The projects are
 under various stage of implementation and are expected to be
 commissioned in phases in the year 2012-13.
 
 Changes in Share Capital
 
 During the year under review, the Company has allotted 6,25,00,000
 Equity Shares of Rs. 10/- each on preferential basis at a premium of Rs.
 30/- per share aggregating to Rs. 250.00 Crores to the entities belonging
 to promoter group and strategic investors belonging to non promoters
 group.
 
 Consequent to said allotment, the paid up Share Capital of the Company
 stood increased to Rs. 95,37,55,000.00. The entire proceeds received from
 the Preferential Allotment has been utilised towards the object of the
 issue.
 
 Public Deposit
 
 The Company has not accepted any deposits during the year.
 
 Credit Rating
 
 The Company has retained CARE BBB- (Triple B minus) credit rating for
 its long-term and medium-term debts/facilities and CARE A3 (A Three)
 credit rating for its short-term debts/facilities accorded by the
 credit rating agency Credit Analysis & Research Ltd. (CARE).
 
 Insurance
 
 The properties and insurable assets and interests of your Company, like
 building, plant and machinery and stocks, among others, are adequately
 insured.
 
 Directors
 
 Mr. Suresh Kumar Patni & Mr. Vijay Kumar Jain, retires by rotation and
 being eligible, offers themselves for re-appointment.
 
 Mr. Rohit Patni has resigned from the position of Joint Managing
 Director as well as from the Directorship of the Company with effect
 from 24th August, 2012. The Board of Directors recorded its
 appreciation for the valuable services rendered by Mr. Rohit Patni to
 the Company.
 
 Mr. Sanjay Singh has been appointed as an Additional Director w.e.f.
 24th August, 2012 to hold office up to the date of the next Annual
 General Meeting. The Company has received notice under Section 257 of
 the Companies Act, 1956 proposing the candidature of Mr. Sanjay Singh
 as Director of the Company. Based on the recommendation of the
 Remuneration Committee and subject to the approval of the members in
 the ensuing Annual General Meeting, Mr. Sanjay Singh has been appointed
 as an Executive Director of the Company for a period of 3 years w.e.f.
 24th August, 2012.
 
 None of the Directors of the Company are disqualified for being
 appointed as Directors, as specified in Section 274(1)(g) of the
 Companies Act, 1956. As required under Clause 49 of the Listing
 Agreement the additional information on the Directors seeking
 appointment/re-appointment is annexed as additional information to the
 notice.
 
 Management Discussion and Analysis and Corporate Governance Report
 
 Reports relating to Management Discussion and Analysis, Corporate
 Governance along with the certificate from the Company Secretary in
 Practice regarding compliance of Clause 49 of the Listing Agreement
 with the Stock Exchange forms part of this report.
 
 Directors'' Responsibility Statement
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of
 Directors of the Company confirms :
 
 a) That in the preparation of the annual accounts, the applicable
 accounting standards have been followed and no material departure have
 been made from the same;
 
 b) That the Directors have 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 and of the
 profit or loss of the Company for that period;
 
 c) That Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956, for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 d) That the accounts have been prepared on a ''going concern'' basis.
 
 Auditors and Auditors'' Report
 
 M/s. R. Kothari & Company, Statutory Auditors of the Company, hold
 office till the conclusion of the ensuing Annual General Meeting and
 being eligible, offer themselves for re-appointment. The Company has
 received a letter from them to the effect that their appointment, if
 made, would be within the limits prescribed under Section 224 (1- B) of
 the Companies Act, 1956 and they are not otherwise disqualified within
 the meaning of sub-section (3) of Section 226 of the Companies Act,
 1956 for such appointment.
 
 There are no qualifications or adverse remarks in the Auditors'' Report
 which require any clarification/explanation. The Notes to accounts
 referred to in the Auditors'' Report are self-explanatory, and
 therefore, do not call for any further comments/explanation.
 
 Cost Audit
 
 As per the requirement of the Central Government and pursuant to the
 provision of Section 233B of the Companies Act, 1956, the Company has
 appointed Mr. S. Banerjee, Cost Auditors to audit the cost accounts of
 the Company for the year 2011-12 from 1st April, 2011 to 31st March,
 2012 for which necessary approval from Central Government has been
 received. The Cost Audit Report in respect of the financial year
 2011-12 will be filed on or before the due date.  The Company has
 re-appointed Mr. S. Banerjee as Cost Auditors for the financial year
 2012-13.
 
 Particulars of Employees
 
 Details of employee drawing remuneration in excess of the limit
 specified under Section 217(2A) of the Companies Act, 1956 read with
 Companies (Particulars of Employees) Amendment Rules, 2011 is given
 below :
 
 Name             Age     Qualification    Date of        Designation
                 (Years)                   Commencement
                                           of employment
 
 Mr Ankit Patni     27     CFA, MBA        8th Angust, 
                                           2003           Managing 
                                                          Director 
 
 Name            Remuneration      Experience   Last
                 received (gross) (Year)        employment
 
 Mr Ankit Patni  Rs.53.87 Lacs*       8         As Jt. Managing Director
                                                in Rohit Ferro-Tech Ltd.
                                                till 24th August, 2012
 
 * re-appointed as Managing Director w.e.f. 3rd July, 2011 at an
 increased remuneration of Rs. 5 Lacs p.m.
 
 Particulars of Conservation of Energy, Technology Absorption and
 Foreign Exchange Earnings and Outgo
 
 Particulars of energy, technology absorption and foreign exchange
 earning and outgo as required under Section 217(1 )(e) of the Companies
 Act, 1956, read with Companies (Disclosures of Particulars in the
 report of Board of Directors) Rules, 1988, are given in the annexure
 attached hereto and forms part of the report.
 
 Acknowledgment
 
 Your Directors take this opportunity to express their appreciation for
 the assistance and co-operation received from the Central Government,
 State Governments, Financial Institutions, Corporate Authorities,
 Banks, Customers, Vendors and Shareholders during the year under
 review. Your Directors also wish to place on record their deep sense of
 appreciation for the committed services of executives, staffs and
 workers of the Company.
 
                                         For and on behalf of the Board 
 
                                                     Suresh Kumar Patni
 
 Kolkata, 24th August, 2012 Chairman