Dear Shareholders,
 
 I have great pleasure in communicating once again with you for sharing
 views on the last exercise of CMI FPE.
 
 First, I would like to introduce the global economical context : the
 contraction of the world economy has had a major impact on the
 activities of our traditional customers in the steel industry, and as a
 result on their capacity to invest in new production equipment or in
 updating existing plant, a pattern that was evident around the world.
 Consequently, competition for the existing projects on the steel market
 was really fierce.
 
 In spite of this difficult environment, CMI FPE registered
 unprecedented order level in 2011-2012, capitalizing on the vitality of
 the Indian economy. At the same time, on the operational front, the
 execution schedules of certain projects in 2011 were revised owing to
 market conditions. CMI FPE thus closed 2011 with a very strong order
 backlog. We turned this slowdown into opportunity to achieve our
 ambitious extension project. After months of determination and hard
 work, we finally transformed the Taloja facilities into a Centre of
 Excellence for Cold Rolling Mills Manufacturing.
 
 I am pleased to share with you that we have been actively developing
 CMI FPE during the last exercise: Beyond the integration and
 development of new technologies we have enhanced our 3D engineering and
 project management capabilities, strengthened our internal processes,
 invested in safety equipment and training, marketing supports, ... The
 image of your company in India is a symbol of trust and we received
 very prestigious orders from more and more customers. ArcelorMittal is
 one of such customers whom, during the last fiscal year, entrusted your
 company for the supply of a new stand alone Temper Mill at
 ArcelorMittal DOFASCO, Canada and a new Skin Pass Mill for high end
 applications at ArcelorMittal Eisenhuettenstadt in Germany. Both mills
 will be manufactured in our new centre for Excellence for Cold Rolling
 Mills. The need for such new facility had been previously anticipated.
 Indeed, when looking at developing the turnover of CMI FPE, we had come
 to the conclusion that manufacturing was a bottle neck and decided to
 expand the capacity of our workshops. To do that, we invested in
 machining centres and built new sheds with heavy handling capacities
 while optimizing the overall lay-out of the plant in order to improve
 the production-flow. In addition, by dedicating each shed to a specific
 part of the manufacturing process (machining, assembling, packaging,
 expedition, ..) we now benefit from the advantages of a more efficient
 and focused manufacturing set-up. With such new infrastructure, CMI FPE
 is now able to house, for instance, the assembly of up to ten cold
 rolling mills or even two 5 stand tandem rolling mills at the same
 time!
 
 I am also encouraged by the fact that in the years to come, Indian
 industry, and especially the steel industry, will continue its
 expansion in order to meet the growing needs of the population. This
 growth will be more and more focused on high-end applications. In this
 context, we are able to meet the needs in a very fast track as we have
 doubled the capacity of CMI FPE. You have also to know we had last May
 the groundbreaking of an additional plant to be built in Hedavali, near
 Khopoli.
 
 Technologically speaking, '' given our in-house expertise in the
 downstream industry, we can accompany our customers in developing
 high-end capacities up to the qualification by the automotive
 manufacturers for instance. This makes definitely CMI FPE the ideal
 partner for new facilities, upgrading and consulting to get the most
 out of customer''s plants and make their projects successful!
 
 I look forward to your continued support and faith to CMI FPE in the
 years to come.
 
 
 
 Yours Sincerely,
 
 Jean-Marc Kohlgruber
 
 Chairman