To The Members of Associated Stone Industries (Kotah) Limited
 
 The Directors have pleasure in presenting the 66th Annual Report
 together with the Audited Accounts of the Company for the year ended
 31st March, 2012:
 
 1.  FINANCIAL RESULTS:
                          
                                                         (Rs. in lacs)
 
                                                2011-12      2010-11
 
 Total revenue                                170886.19     17364.84 
 
 Profit before finance cost & depreciation      2638.34      2941.17
 
 Less: Finance cost                              601.82       559.48
 
 Depreciation                                    577.20       524.22
 
 Profit before taxation                         1459.32      1857.47
 
 Provision for taxation
 
 Current tax                                    (522.00)     (655.00)
 
 Deferred tax                                     43.15        24.72
 
 Earlier year adjustments                        (37.60)      (59.80)
 
 Profit for the year (after tax)                 942.87      1167.39 
 
 Add: Balance in profit & loss account          3419.32      2531.01 
 
 Profit available for appropriation             4362.19      3698.40 
 
 Appropriations
 
 Transfer to general reserve                     125.00       125.00
 
 Proposed dividend                               132.57       132.57
 
 Tax on dividend                                  21.51        21.51 
 
 Balance carried forward to Balance Sheet       4083.11      3419.32
 
                                                4362.19      3698.40
 
 2.  DIVIDEND
 
 Your Directors are pleased to recommend a dividend of Re. 1/-
 (equivalent to 20%) per equity share of the face value of Rs.5/-each.
 
 3.  PERFORMANCE
 
 For the year under review the production of Kotah Stone was 1461.10
 lacs sq.ft. as against 1506.19 lacs sq. ft. in the previous year and
 sales were 1450.58 lacs sq.ft. as against 1472.43 lacs sq.ft.  in the
 previous year.
 
 During the year 2011-12 the Company has registered revenue from
 operations of Rs. 17088.19 lacs (previous year Rs. 17634.84 Lacs) and
 Gross Profit of Rs.2638.34 Lacs (previous year Rs. 2941.17 Lacs).
 
 The profit before taxation during the year 2011-12 is Rs. 1459.32 Lacs
 as compared to Rs. 1857.47 Lacs during the previous year 2010-11.
 
 4.  WIND POWER PROJECT
 
 As a part of its efforts to augment Green Power, the Company has
 so far installed 4.75 MW capacity wind power projects comprising of
 1.125 MW capacity in Tiruppur District of Tamil Nadu, 1.125 MW in Gadag
 District of Karnataka and 2.50 MW capacity in Satara District of
 Maharashtra.
 
 The wind power projects by themselves are not commercially viable since
 their operation depends upon availability of winds which is a function
 of nature and many times erratic. Realising this fact, the Govt, of
 India offers various incentives such as accelerated depreciation
 benefit, enhanced tariff for companies not in a position to avail
 accelerated depreciation benefit, tax holiday for 10 years etc.
 However, even with these benefits, the returns on investment are very
 moderate. In a move to accelerate the installation of wind power
 projects and similar projects like solar power, bio-mass power etc.
 which are based on renewable energy sources and do not have any adverse
 impact on environment and climate change, the Govt, of India has
 mandated that utilities should source a minimum percentage of their
 power from renewable source based projects.
 
 The need to encourage installation of environment friendly wind power
 projects has been universally recognized and carbon credit benefits are
 extended under the Kyoto Protocol of UNFCCC (United Nations Framework
 Conference for Climate Change). Company had applied for such carbon
 credit benefit for the 4.75 MW bundled wind power project which has
 been approved and registered by UNFCCC, Bonn, Germany from 1st May
 2011. The Company will be eligible to get carbon credit certificate for
 ten years from the date of Registration based on the yearly generation.
 As the first year has been completed on 30th April 2012, the Company is
 in the process of collecting data of monitoring, verification etc.  and
 submitting to UNFCCC for approval. M/s. TUV India Pvt. Ltd (subsidiary
 of TUV Nord, Germany) has been appointed to validate the project. Once
 the carbon credit certificate is issued, the same can be traded in the
 carbon credit market.
 
 5.  HEALTH, SAFETY & ENVIRONMENT
 
 Health and Safety are the issues getting major attention of Regulatory
 Authorities. Govt is insisting on regular health check of mine workers
 especially for respiratory diseases like Silicosis. Company has
 responded to all such calls by arranging health camps for mine workers
 and thereafter regular follow up. During the year at least 1000 workers
 had undergone medical check up.
 
 Maintaining a good, clean & cool environment at its work- place is the
 top most priority of the Company.
 
 Environmental issues are getting serious momentum.  Company has been
 complying with all environmental requirements and has set up a
 separate Environment Cell to monitor various parameters and taking up
 corrective steps in case of any deviation. Special attention is paid on
 plantation in mine area and rightful conservation of water source.
 
 6.  CORPORATE GOVERNANCE
 
 The Company has complied with mandatory provisions of Corporate
 Governance as prescribed under the Listing Agreement.
 
 A separate report on Corporate Governance is produced as a part of the
 Annual Report along with Auditors'' Certificate on its compliance.
 
 7.  DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As stipulated in Section 217(2AA) of Companies Act, 1956, your
 Directors subscribe to the Directors Responsibility Statement and
 confirm that:
 
 - in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 - the Directors have selected such accounting policies and applied
 them consistently and made judgements 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;
 
 - the 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;
 
 - the annual accounts have been prepared on a going concern basis.
 
 8.  DIRECTORS
 
 Shri. Pramod G. Lath retires by rotation in accordance with the
 provisions of the Companies Act, 1956 and Articles of Association of
 the Company but being eligible, offers himself for reappointment.
 
 Shri. S.M Shroff has resigned as Director of the Company w.e.f 02nd
 February, 2012. The Board wishes to place on record its gratitude and
 appreciation for the co-operation and guidance rendered by him during
 his tenure as Director of the Company.
 
 9.  AUDITORS
 
 M/s. B.L. Ajmera & Co., Chartered Accountants, retires as auditors of
 the Company at the ensuing Annual General Meeting and are eligible for
 reappointment.
 
 10.  STATUTORY INFORMATION
 
 The information pursuant to Section 217 (2A) of the Companies Act, 1956
 read with the Companies (Particulars of Employees) Rules, 1975 is not
 applicable.
 
 The Information pursuant to Section 217(1) (e) of the Companies Act,
 1956 read with the Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988 is in Annexure.
 
 The Company has been accepting deposits within the provisions of
 Section 58A of the Companies Act, 1956 and the Companies (Acceptance of
 Deposits) Rules, 1975.  The Fixed Deposits as on 31st March, 2012 was
 Rs 251.25 Lacs.
 
 11. ACKNOWLEDGEMENT
 
 Your Directors would like to acknowledge and place on record their
 sincere appreciation to all stakeholders- clients, Financial
 Institutions, Banks , Central and State Governments, the Company''s
 valued investors and all other business partners for their continued
 co-operation and excellent support received during the year.
 
 Your Directors recognize and appreciate the efforts and hard work of
 all the employees of the Company and their continued contribution to
 its progress.
 
                                 On behalf of the Board of Directors
 
 Mumbai                                                        Sd/-
 
 30th May, 2012                                        Deepak Jatia
 
                                        Chairman & Managing Director