Dear Members,
 
 The Directors have pleasure in presenting the 7th Annual Report of the
 Company and the Annual Accounts for the year ended 31st March, 2011.
 
 1.  WORKING RESULTS
 
                                                       (Rs. in Lacs)
 
 Financial Results                                   2011        2010
 
 Income from operation                          22,727.69    12245.61
 
 Other Income                                     2059.68      301.50
 
 Profit before Interest, Depreciation and Tax     1993.97      591.39
 
 Less: Interest                                    615.43      200.84
 
 Profit before Depreciation & Tax                 1378.54      390.55
 
 Less: Depreciation (including amortization)       553.55      383.36
 
 Profit Before Tax                                 824.99        7.19
 
 Provision for Tax:
 
 - Current                                         164.42        1.11
 
 - Deferred                                        344.46      455.56
 
 Earlier Year                                           -        0.09
 
 Profit After Tax                                  316.11     (449.57)
 
 Dividend (including Dividend Tax)                 156.06           -
 
 Balance carried to Balance Sheet                  160.05           -
 
 2.  PERFORMANCE REVIEW
 
 During the year your Company has reported a turnover of 22,727.69 Lacs.
 The Profit before Tax and Profit after Tax remains Rs. 824.99 Lacs and
 Rs. 316.11 Lacs respectively.  During the current financial year, your
 Company took various strategic initiatives to improve its volumes and
 profitability, which helped the Company to post an impressive
 performance for the year. Yours Directors are pleased to report an
 excellent performance of the Company in terms of both financial and
 operational performance.
 
 3.  DIVIDEND
 
 The management is pleased to recommend final dividend at the rate of
 Re. .50/- (Fifty Paise) per Equity Share on 2,67,66,505 Equity Shares
 of Rs. 10 /- each i.e. 5% on each Equity Share of the company, total
 outgo on account of dividend shall be Rs. 1,33,83,252.50 subject to
 tax.  Irrespective of under installation condition and non- completion
 of the total integration of the project during the fiscal 2011, your
 Company generated and earned a handsome amount of profit after tax.
 Gallantt Ispat believes that profitability must go hand in hand with a
 sense of responsibility towards all shareowners and other stakeholders.
 Hence, as a measure of rewarding shareowners and providing a current
 return on their investment, your Board of Directors recommended a
 dividend @ 5% on Equity Shares.  4.  DIRECTORS'' RESPOSIBILITY STATEMENT
 
 In compliance with Section 217(2AA) of the Companies Act, 1956, as
 amended by the Companies (Amendment) Act, 2000 your Directors state
 that:
 
 A.  The Applicable Accounting Standards have been followed in the
 preparation of Annual Accounts.
 
 B.  That the accounting policies have been selected and applied
 consistently and the judgments and estimates made are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company as on 31st March, 2011.
 
 C.  That proper and sufficient care has been taken for 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 Annual Accounts have been prepared on a going concern
 basis.
 
 5.  INITIAL PUBLIC OFFERING OF EQUITY SHARES
 
 During the year under report your Company concluded an Initial Public
 Offerings (Issue) of 81,00,208 Equity Shares of Rs. 10/- each for
 cash at a price of Rs. 50/- per Equity Share including a Share Premium
 of Rs. 40/- per Equity Share aggregating to Rs. 40,50,10,400/-
 comprising of 14,00,000 Equity Shares of Promoter Contribution and net
 offer to the public was 67,00,208 Equity Shares. Issue opened on
 September 22, 2010 and closed on September 24, 2010. The Issue has
 received 4255 applications for 97,57,000 Equity Shares resulting in
 1.44 times subscription (before technical rejections). Basis of
 Allotment was approved by the Bombay Stock Exchange Limited (Designated
 Stock Exchange) and shares were allotted on October 05,2010 to the
 successful investors. On complying with the formalities of Stock
 Exchanges, Depositories, SEBI and other authorities and bodies, Equity
 Shares of the Company got listed with both the Stock Exchanges viz.
 Bombay Stock Exchange Limited and National Stock Exchange of India
 Limited and started trading from October 11,2010.
 
 6.  UTILISATION OF IPO PROCEEDS
 
 Under the IPO, Company has allotted 81,00,208 Equity Shares and
 procured Rs. 40,50,10,400/- (Rupees Forty Crore Fifty Lac Ten Thousand
 and Four Hundred only). As per the terms and object of the Issue entire
 funds have been utilized in the project of the Company including
 utilization of Rs. 33,50,10,400/-(Rupees Thirty Three Crore Fifty Lac
 Ten Thousand and Four Hundred only) for repayment of the unsecured loan
 taken for the project of the Company.
 
 7.  CORPORATE GOVERNANCE
 
 The Company has complied with the requirements of Corporate Governance
 as stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges and accordingly a Report on Corporate Governance together
 with Auditors'' Certificate on Corporate Governance is appended to the
 Annual Report. Your Company is committed to achieving the highest
 standards of Corporate Governance and has complied with the
 requirements of Clause 49 of the Listing Agreement. Further, as
 required under Clause 49 of the Listing Agreement a Management
 Discussion and Analysis Report is appended to the Annual Report.
 
 8.  LISTING INFORMATION
 
 The Equity Shares in the Company are in dematerialized form and is
 listed with Bombay Stock Exchange Limited and National Stock Exchange
 of India Limited. The Listing Fee has been paid to the Stock Exchanges
 for the year 2011-12. The ISIN No. of the Company is INE528K01011
 
 9.  CREDIT RATING
 
 Company has appointed Fitch Ratings India Private Limited (hereinafter
 referred to as Fitch) as Credit Rating agency.  Fitch has assigned
 rating ''B  (ind)'' for Long Term Loan of Rs. 124 Crores (Rupees One
 Hundred Twenty Four Crore only) and ''F4(ind)'' for Non-Fund Based Limits
 of Rs. 2 Crores (Rupees Two Crores).
 
 10. FIXED DEPOSITS
 
 Your Company has not accepted any deposit within the meaning of Section
 58A of the Companies Act, 1956 and rules made thereunder.
 
 11. PARTICULARS OF EMPLOYEES
 
 No employee of the Company is covered under section 217 (2A) of the
 Companies Act, 1956 read with Companies (Particulars of Employees)
 Rules, 1975, as amended.
 
 12. AUDITORS & AUDITORS''REPORT
 
 M/s. Anoop Agarwal & Co., Chartered Accountants, statutory auditors of
 the Company hold office until the conclusion of the ensuing Annual
 General Meeting and being eligible offer themselves for re-appointment.
 The Company has received a certificate from them that their
 reappointment, if made, would be within the limits laid down under
 Section 224 (IB) of the Companies Act, 1956.
 
 The notes on accounts referred to the Auditors'' Report are
 self-explanatory and therefore, do not call for any further
 explanation.
 
 13. PARTICULARS RELATING TO CONSERVATION OF ENERGY, TECHNOLOGY
 ABSORPTION FOREIGN EXCHANGE EARNING AND OUTGO
 
 The particulars as prescribed under sub-section 1(e) of Section 217 of
 the Act, read with Rule 2 of the Companies (Disclosure of Particulars
 in the Report of the Board of Directors) Rules, 1988, is annexed hereto
 and form part of the report.
 
 14. PERSONNEL, INDUSTRIAL RELATIONS AND MARKETING
 
 Accelerating sales force performance is a key priority for Companies.
 Company is in continuous process of discussing the methods for
 developing a go-to-market strategy and designing sales forces. Your
 Company relies on its sales teams to deliver revenue growth, and
 entrust to them their most valuable assets - customers. In turn, your
 Company''s sales teams brought a remarkable growth in the sales volume
 and profit margin irrespective of cut throat competition. The
 industrial relations continued to be cordial.
 
 15. BOARD OF DIRECTORS
 
 The Board of Directors comprises of Six Directors of which three are
 Independent Directors. Mr. Prem Prakash Agarwal, Director of your
 Company, retires from the Board by rotation and eligible for
 re-election.
 
 During the year no changes took place on the Board of Directors of the
 Company. During the year the Board of Directors met fourteen times.
 
 16. GROUP COMING WITHIN THE DEFINITION OF GROUP AS DEFINED IN THE
 MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 (MRTP)
 
 Persons constituting group as defined under the MRTP for the purpose
 of Regulation 3(l)(e)(i) of the Securities and Exchange Board of India
 (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, as
 amended from time to time, include, those given in Annexure ''A which is
 attached herewith and forms part of this Annual Report.
 
 17. COMMENCEMENT OF PROJECT
 
 The status of progress made on various projects of the Company was as
 under:
 
 Flour Mill Unit:
 
 It started commercial production of Flour for domestic consumption in
 March, 2009 with capacity of 1,08,000 MTPA. Your Company proposes to
 expand its capacities by another 72,000 MTPA taking the total capacity
 to 1,80,000 MTPA.
 
 Iron & Steel Unit:
 
 Your Company have different steel divisions like Mild Steel Billets
 (Steel Melt Shop) with a capacity of 1,62,380 MTPA, and Re-rolled
 Products (TMT) with a capacity of 1,67,400 MTPA and Sponge Iron Plant
 with a capacity of 99,000 MTPA.
 
 Steel Melt Shop Unit and TMT Unit started commercial operation from
 May, 2009 whereas Sponge Iron Unit started operation from October,
 2010.
 
 Captive Power Plant Unit:
 
 Considering the power requirements of our existing manufacturing
 facilities, our Company has set up 18 MW Captive Power Plant to meet
 its present requirements of power. Captive Power Plant started
 commercial operation from July 25, 2011.
 
 18. GOVERNMENT INCENTIVES AND SUBSIDIES
 
 The State Government of Uttar Pradesh had granted facilities to
 industries being set up in Uttar Pradesh having investment of above Rs.
 100.00 Crores. The incentives were originally granted vide G.O. Numbers
 1502/77-6- 2006-10 Tax/04 dated June 1, 2006 which have been elaborated
 in G.O. Numbers 2941/77-6-2006-10 Tax/04 dated November 30, 2006, and
 further amended from time to time. Incentives and Subsidies at a
 glance:
 
 - 20% subsidy of fixed capital investment.
 
 - Reimbursement of the actual amount incurred on the development of
 infrastructure facilities like Land, Road, Power, Water etc. (maximum
 10% of fixed capital investment)
 
 - 5% additional subsidy of fixed capital investment being first unit
 under this scheme.
 
 - Transport subsidy for 15 years equivalent to freight paid on import
 from outside the state on Raw materials i.e. Iron Ore.
 
 - Interest free loan equivalent to Sales Taxes/Commercial Taxes (UPVAT)
 Amount for a period of 15 years, repayable after 15 years.
 
 - Land on actual cost and concessional rates of registration.
 
 - Entry tax exemption on plant and machinery, spare parts and capital
 goods.
 
 - Exemption of Mandi Tax - 2% on Wheat purchase.  Company has received
 subsidy to the tune of Rs. 24.28 Crores from the State Government of
 Uttar Pradesh till March 31, 2011.
 
 19. ACKNOWLEDGEMENT
 
 Your Directors take this opportunity to express their appreciation for
 cooperation and assistance received from Government of India, State
 Government of Uttar Pradesh, Government of West Bengal, and the
 shareholders, customers, suppliers, Bankers, the Central Government and
 the State Government agencies during the year under review. The
 Directors also wish to place on record their appreciation of the
 devoted and dedicated services rendered by all employees of the
 Company.
 
                                              On behalf of the Board
 
                                                         C.P.Agarwal
 
                                                            Chairman
 
 Place :Kolkata
 
 Date: August 02, 2011