Dear Shareholders,
 
 I write to you in the backdrop of a particularly challenging year for
 the Indian economy in the midst of recession in the Euro zone, muted
 domestic investment demand and limited fiscal and monetary space to
 stimulate the economy. Further the hike in crude oil price and the
 depreciation of the rupee has also impacted the industry and the
 overall business sentiments. The country''s economic growth projections
 continue to be scaled down and there are expectations that the year
 2012-13 would be the second consecutive year of lowest growth, in the
 past decade, as per the latest CRISIL report on the state of the
 economy. However, declining global crude oil prices and normal monsoon
 are positive factors that would help in improving growth rate.  The
 interest rate cycle has been reversed by the RBI.
 
 For I G Petro, the PA market was sluggish especially during the third
 quarter of the year as the market condition was unfavorable due to
 heavy dumping in the local markets. The PA manufacturers association
 made a representation to the Government for imposing Safeguard duty on
 PA to avoid dumping of PA at cheap rates in order to ease the margin
 pressure and achieve sustainability. The Government imposed the
 Safeguard duty of 10% ad-valorem during January 2012 for a period of
 one year due to which the imports became dearer and the industry
 started showing some signs of improvement.
 
 However, despite the challenging scenario and difficult conditions, I
 am happy to share that the Company has delivered good performance by
 achieving a production of 1,15,673 MT working at 99.62% capacity during
 the year as against 1,09,147 MT at 94% during the previous year
 2010-11.
 
 Moving forward, we believe that our focused strategy to expand
 capacities and our existing strengths will be the foundation for
 sustainable future growth. Our planned expansion project is well on
 stream and we expect it to be completed within the targeted period of
 the first quarter of Financial Year 2013-14. The total expanded PA
 capacity would be 1,66,110 MT. The expanded capacity would mitigate
 itself against the increasing cost pressures arising out of volatile
 raw material prices, thus strengthening our gross margins. The Company
 is also exploring certain opportunities to captivity utilize the huge
 capacity which would be available after expansion as a forward
 integration process and add certain value-added products to de-risk its
 existing business.
 
 On this positive note of optimism, before I end, I would like to thank
 all members of the staff for their contribution to the Company''s growth
 and all stakeholders, bankers for the faith reposed in us. We assure
 you of our best and continue to work to deliver value to our customers
 and shareholders.
 
 Yours Sincerely,
 
 M M Dhanuka
 
 Chairman