To The Members of Balaji Galvanising Industries Limited,
 
 The Directors take pleasure in presenting the Twenty first Annual
 Report on the affairs of the Company for the financial year 2010-2011
 together with the Audited Financial Statements.
 
 BUSINESS PERFORMANCE:
 
 Financial Results:
 
 The overall performance of the Company for the financial year 2010-11
 is summarized as under:
 
                                                   (Rs. in Lakhs)
 
 Particulars                         2010-2011         2009-2010
 
 Sales                                 947.93              928.93
 
 Increase / (Decrease) in Stocks        79.09              (49.66)
 
 Other Income                            5.64                1.15
 
 Total Revenue                        1032.66              880.42
 
 Manufacturing / Operating Expenses    988.67              825.12
 
 Profit/Loss before Financial 
 Expenses &Depreciation                 43.98               55.30
 
 Interest & Financial Expenses           0.30                0.76
 
 Depreciation                           18.70               18.61
 
 Net Profit/(Loss)after Financial 
 Expenses & Depreciation                24.98               35.93
 
 Earning Per Share                       0.50                0.72
 
 During the year under review the turnover of the Company marginally
 increased from Rs.928.93 lacs to Rs.947.93 lacs. The per tone
 realization during the year was higher. The Company continued its
 effort in reducing the costs and improving the productivity
 
 Dividend:
 
 As the profit made by the Company not being significant and to conserve
 the resources your Board could not declare any dividend for the
 financial year under review.-
 
 FUTURE OUTLOOK:
 
 The Country at present is the 5th largest producer of crude steel and
 is the leader in sponge iron production.  The domestic steel
 consumption during the year has increased by about 8% indicating
 further strengthening of the demand. However the per capita consumption
 of steel remains at 49 kg against the world average of 1B2 kgs. Efforts
 by the Government are on to enhance the consumption in the rural sector.
 The Government also felt that the iron Ore of the country should be
 used for domestic industry rather than exports. To ensure the quality
 of steel wire used in pre stressed concrete is now brought under a
 quality control order. All major steel plants are being modernized to
 have cost effective, energy efficient and environment friendly. The
 growth in steel production continues to lag the domestic consumption
 leaving scope for large demand. The products manufactured by the
 Company though belong to the secondary sector is linked to the primary
 steel industry. All the parameters of the India Growth story indicate
 large scale demand continuity for steel and your Board feels that the
 future appears to be very promising. The only need is to cut the costs
 , improve quality and focus in rural sector which the Company has
 already planned .
 
 DIRECTORS:
 
 Shri Chetan Kumar Bagaria and Shri Premotpal Guha retire by rotation
 and being eligible offer themselves for reappointment.
 
 DIRECTORS''RESPONSIBILITY STATEMENT:
 
 In accordance with the provisions of Section 217(2AA) of the Companies
 Act,1956, your Directors state:
 
 (i) That the accountings standards to the extent applicable to the
 Company have been followed in the preparation of the annual accounts.
 There are no material departures there from.
 
 (ii) 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/loss for the said year.
 
 (iii) 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. .
 
 (iv) That the annual Accounts have been prepared on a going concern
 basis.
 
 AUDITORS:
 
 M/s. Dagliya & Company, Chartered Accountants, Secunderabad, the
 Auditors of the company retires at the conclusion of the ensuing Annual
 General Meeting and is eligible for reappointment. The Board recommends
 their reappointment.
 
 The observations made by the Auditors in their report read with the
 Notes on Accounts are self explanatory and do not require any comments
 from Directors.
 
 LISTING:
 
 The shares of your company are listed on Mumbai and Kolkata stock
 Exchanges. The shares remain suspended from trading at BSE. The Company
 is following up the matter with Stock Exchange at Mumbai.
 
 EMPLOYEES:
 
 There are no employees whose particulars are 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 and 58AA of the Companies Act 1956 read with
 Companies (Acceptance of Deposits) Rules, 1975.
 
 CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGOGY
 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, 2011 is 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 :The technology is indigenous and fully
 absorbed
 
 3.  Foreign Exchange Earning and Outgo: Value (in Rs.Lacs) Value of
 Imports (CIF basis) Nil Expenditure in Foreign currency Nil Earnings in
 Foreign Exchange Nil
 
 CORPORATE GOVERNANCE:
 
 The company has implemented the Code for Corporate Governance as
 stipulated under amended 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. NICHE TECHNOLOGIES PRIVATE LIMITED, Kolkata were appointed as
 Depository Registrars for dematerialization and for physical transfer
 of shares as also all the matters relating to shares.
 
 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.
  
                              For & on behalf of the Board of Directors
 
 Place: Secunderabad.  
 
 Dated : 31.05.2011                  Sd/-                   Sd/-
 
                            (Chetan Kumar Bagaria)    (Premotpal Guha)
 
                                   Director               Director