The Members
 
 Goldstone Infratech Limited
 
 The Directors have pleasure in presenting the 11th Annual Report
 together with the Audited Statements of Accounts of the company for the
 financial year ended 31st March 2011.
 
 Financial Results
 
 The summarized financial results (Standalone) of the Company for the
 year ended 31st March, 2011 as compared to the preceding year are as
 under:
 
                                                    Rs. in Lakhs
 
 Particulars                                 2010-11       2009-10
 
 Gross Sales                                 7295.39       7035.09
 
 Net Sales                                   6804.08       6560.70
 
 Other Income                                 122.61        205.67
 
 Total Income                                6926.69       6766.37
 
 Total Expenditure                           5788.08       5304.03
 
 Operating Profit (PBIDT)                    1138.61       1462.35
 
 Interest                                     372.26        263.82
 
 Depreciation and Write Offs                  289.82        288.99
 
 Profit Before Tax                            476.52        909.53
 
 Provision for taxation -
 
 - Current                                    100.00        200.00
 
 - Deferred                                    51.94         40.68
 
 Profit after Tax                             324.58        668.85 
 
 Extra-Ordinary Items
 
 - Taxes pertains to previous year             (0.02)        (2.15)
 
 - Prior period adjustments                    (1.10)         6.53 
 
 Net Profit                                   323.47        673.23 
 
 Surplus brought forward from 
 previous year                               2544.46       2022.69 
 
 Balance available for appropriation         2867.92       2695.93 
 
 Appropriations:
 
 - Proposed Dividend on Equity Shares          72.16         72.16
 
 - Provision for Dividend Tax                  11.71         11.99
 
 - Transfer to General Reserves                32.35         67.32
 
 Surplus carried forward to Balance Sheet    2751.71       2544.46
 
 Equity Share Capital (3,60,80,737 Shares
 of Rs. 4/- each)                            1443.23       1443.23 
 
 E.P.S (After Prior Period Items) (Rupees)      0.90          1.87 
 
 Net Worth                                   9914.40       9667.83
 
 Book Value in rupees (face Value of 
 Rs. 4/- each)                                 27.48         26.79
 
 Review of Operations
 
 During the year under review, your Company has achieved a gross
 turnover of Rs. 7295.39 Lakhs as compared to Rs. 7035.09 Lakhs during
 the previous financial year. Inspite of slight increase in the
 turnover, the Net Profit has come down to Rs. 323.47 lakhs from Rs.
 673.23 lakhs.  This was mainly due to the reduction in selling prices
 of the products, increased competition and higher interest costs.
 
 To achieve forward integration and to reduce the dependency on outside
 suppliers for End Fittings, which is crucial for manufacture of
 Insulators, the Company has set up a foundry in its manufacturing unit
 no. 2 at Plot No. 8, IDA, Gaddapotharam Village, Jinnaram Mandal, Medak
 District. The Management is working to bring this foundry into
 operation by April, 2012.  When the foundry becomes fully operational,
 the company would be having all the facilities (end to end) under one
 roof and any excess production from this foundry could also be sold,
 which will give a contribution to the bottom line.
 
 Surge Arrestors
 
 As informed to the Members in the previous annual report, the Company
 sold a small quantity of this product during the year under review.
 The Company is expecting to increase the volume of this product during
 the years to come.
 
 Solid Core Insulators
 
 Substation Equipments like Solid Core and Hollow Core insulators are
 presently being manufactured by the other players in the market with
 Porcelain material which has certain disadvantages like causing heavy
 losses to the transmission sector, low level of resistance to bad
 weather conditions, frequent maintenance, etc.
 
 With a view to expand the operations in this area and to offer high
 quality product, the Management is proposing to manufacture Solid Core
 Insulators. The company has already completed feasibility study and the
 in-house R&D is working on this Project with an aim to commence the
 commercial production of Solid core Insulators during the current
 financial year.  Keeping in view the existing market for this product
 and the advantages that the product is having, the Management is
 confident that once the commercial production commences, it will
 further improve the financial performance of the Company in the years
 to come. After successful commencement of commercial production of this
 product, the Company is planning to go for the production of hollow
 core insulators, which may take one more year.
 
 High Voltage Insulators
 
 Your Management is happy to inform that with the objective to
 manufacture high voltage insulators (which are more profitable), the
 Company had entered into a Technical Collaboration Agreement with a
 reputed foreign company (Technology Provider). This collaboration
 consists of transfer of technological details for the manufacture of
 Silicon Rubber Polymer Insulators from and above 400KV to 1100 KV of AC
 and DC of all combinations of mechanical-strengths as may be required
 by your Company. The Technology Provider will offer activation or
 installation support, including assisting with the implementation of
 any Licensor software, diagrams or technological upgradation, wherever
 applicable. Once the remaining formalities are over, your Management is
 of the opinion that the Company would be in a position to commence
 commercial production of high voltage insulators and thereby increase
 the profitability of the company.
 
 Dividend
 
 Keeping in view the funds requirement for reduction of interest costs,
 expansion and diversifications plans of the Company, your Directors
 have recommended a dividend of Rs. 0.20 (i.e. 5%) per equity share of
 Rs. 4/- each for the year ended 31st March 2011. The payment of
 dividend, if approved by the Shareholders at the ensuing Annual General
 Meeting, will entail an outflow of Rs. 83,86,786 inclusive of Corporate
 Dividend Tax.
 
 Transfer to Reserves
 
 The Board has transferred a sum of Rs. 32,34,675/- lacs to the General
 Reserve from the undistributed profits.
 
 Consolidated Financial Statements:
 
 In accordance with the Accounting Standard AS-21 on Consolidated
 Financial Statements, the audited Consolidated Financial Statements are
 provided in the Annual Report.
 
 Subsidiary Company:
 
 TF SolarPower Private Limited is the wholly owned subsidiary of the
 Company. In accordance with the general circular issued by the Ministry
 of Corporate Affairs, Government of India, the Balance Sheet, Profit
 and Loss Account and other documents of the subsidiary company are not
 being attached with the Balance Sheet of the Company. The Company will
 make available the Annual Accounts of the subsidiary company and the
 related detailed information to any member of the Company who may be
 interested in obtaining the same. The annual accounts of the subsidiary
 company will also be kept open for inspection at the Registered Office
 of the Company. The Consolidated Financial Statements presented by the
 Company include the financial results of its subsidiary company.
 
 Fixed deposits
 
 The Company has not accepted any Fixed Deposits, falling within the
 purview of Section 58A of the Companies Act, 1956.
 
 Insurance
 
 All the properties of your Company including its building, plant &
 machinery and stocks have been adequately insured.
 
 Management Discussion and Analysis
 
 Management Discussion and Analysis for the year under review as
 required under Clause 49 of the Listing Agreement entered with Stock
 Exchanges is given as a separate statement in the Annual Report.
 
 Auditors
 
 M/s. P. Murali & Company (FRN: 007257S), Chartered Accountants,
 Hyderabad, Statutory Auditors of the Company holds office in accordance
 with the provisions of the Companies Act, 1956 upto the conclusion of
 this Annual General Meeting and are eligible for reappointment. They
 being eligible, offer themselves for re-appointment. They have
 furnished a certificate stating that their reappointment, if made, will
 be within the limits laid down under Section 224(1B) of the Companies
 Act, 1956.
 
 Directors
 
 Mr. S Murali Krishna and Mr. M Gopalakrishna retire by rotation and
 being eligible offer themselves for re-appointment.
 
 The Board of Directors in their Meeting held on 13th May 2011 has
 appointed Mr. S.D. Rama Krishna as Additional Director w.e.f 13.05.2011
 
 Stock Exchange Listing
 
 Presently, the Equity Shares of the Company are listed on National
 Stock Exchange of India (NSE), Bombay Stock Exchange Limited (BSE) and
 Madras Stock Exchange (MSE). As informed to the members in the previous
 Annual Report, the de-listing approval from Madras Stock Exchange is
 still awaited. The Company confirms that it has paid Annual Listing
 Fees due to all the Stock Exchanges where the Company''s securities are
 listed for the year 2011-12, except to the Madras Stock Exchange.
 
 Director''s Responsibility Statement
 
 In accordance with the Section 217(2AA) of the Companies Act, 1956, the
 Directors of the Company, in respect of the financial year ended 31st
 March, 2011, confirm that:
 
 (a) in preparation of the Accounts, the applicable accounting standards
 have been followed along with proper explanation relating to material
 departures, if any;
 
 (b) They 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 of the
 Company for that year;
 
 (c) They have taken proper 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) They have prepared the Annual Accounts on a going concern basis.
 
 Corporate Governance
 
 A report on Corporate Governance including Auditor Certificate thereon
 as per Clause 49 of the Listing Agreement is attached to this Report.
 
 Managing Director and Chief Financial Officer Certification
 
 As required under the SEBI Guidelines, the Managing Director and the
 Head of the Finance Function Certification is attached to this Report.
 
 Balance Sheet Abstract and Company''s General Business Profile
 
 Information pursuant to notification issued by the Ministry of
 Corporate Affairs relating to the Balance Sheet Abstract and Company''s
 General Business Profile is given in the Annual Report for information
 of the Shareholders.
 
 Particulars of Conservation of energy/ technology absorption, foreign
 exchange earnings and outgoings:
 
 Information required to be furnished as per the Companies (Disclosure
 of particulars in the Directors Report) Rules 1998 is furnished below:
 
 1.  CONSERVATION OF ENERGY
 
 a.  Energy Conservation Measures taken or under implementation
 
 During the period the company had 1) Installed Energy Meters to each
 and every machine to analyze power consumption on daily basis; 2)
 Installed new software in Desma 400 ton machines to save power
 consumption at the time of mould curing period. Arranged Hydraulic
 Motor OFF option at the time of curing time; 3) Installed star Delta
 starters in the place of normal D.O.L starters to reduce power
 consumption on water pumps which are using at water chillers; 4)
 Installed Variable frequency drive for Air Compressor Motor and saved
 energy at loading and unloading time; 5) Reconditioned the Moulding m/c
 - 1 screw and increased its efficiency. Now its production has been
 increased by utilizing the same energy; 6) Arranged additional chilled
 water line from 30 TR chiller to injection moulding machines so that
 the 85
 
 TR chiller can be stopped while running less no of machines and 7)
 Increased FRP rods production from 2 rods to 4 rods(M/c-2) and
 increased FRP machine efficiency by using same power.
 
 b.  Additional investment and proposals if any, being implemented for
 reduction of consumption of energy
 
 Additional/new measures will be initiated for further reduction in
 energy consumption based on technical evaluation and study of the
 measures already implemented.
 
 c.  Impact of measures at (a) and (b) for reduction of energy
 consumption and consequent impact on the cost of production of goods
 
 The measures taken during the year has ensured optimum use of energy
 and increased efficiency.
 
 2.  TECHNOLOGY ABSORPTION : Research and Development
 
 a.  Specific Areas in which R&D carried out by the company
 
 The Company has taken up Research and Development in Solid Core
 Insulators and High Voltage insulators with a view to offer most viable
 and efficient product to the market. Research activity has been focused
 on backward integration to reduce dependence on outside suppliers, to
 reduce the process loss so as to be more competitive in the market.
 
 b.  Benefits derived as results of the above R & D:
 
 - Achieved higher productivity in distribution class insulators
 
 - Able to reduce wastages
 
 - Able to increase efficiency
 
 - Dependency on imports reduced
 
 - Achieved better quality control
 
 c.  Future Plan of Action
 
 - Manufacture of Silicon Rubber Polymer Insulators of 400 KV and above
 up to 1100 KV and manufacture of Solid Core Insulators.
 
 - A few new products have been identified after a thorough study of the
 market; and the technology for manufacturing the related products would
 be developed in the In house R & D Lab
 
 - Focus to improve the existing process technology
 
 Particulars of Employees
 
 None of the Employees are drawing remuneration prescribed in Section
 217(2A) of the Companies Act, 1956, read with Companies (Particulars of
 Employees) Rules, 1975 as amended.
 
 Personnel
 
 Personnel relations have remained very cordial during the period.
 
 Acknowledgements
 
 Your Directors convey their sincere thanks to State Bank of Hyderabad,
 Syndicate Bank, Allahabad Bank and Technology Development Board for
 their support, guidance and assistance.
 
 Your Directors thank all the Employees of your company for their
 dedicated service. Your Directors thank the shareholders for their
 support and confidence reposed in the company and the management and
 look forward to their continued co-operation and support.
 
                              For and on behalf of the Board
 
                                Sd/-                 Sd/-
 
                          L P Sashikumar         B Appa Rao
 
                          Managing Director      Director
 
 Place: Secunderabad
 
 Date: 30th August, 2011