Dear Members
 
 The Directors are pleased to present the twelfth Annual Report of your
 Company along with the audited accounts for the financial year ended
 31st March, 2011.
 
 Result of Operations
 
 Particulars                            Year ended         Year ended
 
                                  March 31st, 2011   March 31st, 2010
 
 Net sales and other income            2,18,796.87        1,94,028.21
 
 Less :Total expenditure               1,83,577.90        1,67,905.92
 
 Profit before interest, 
 depreciation and tax                    35,218.97          26,122.29
 
 Less :Interest                          15,368.64          14,270.65
 
 Profit before depreciation and taxation 19,850.33          11,851.64
 
 Less :Depreciation                       8,280.65           6,928.95
 
 Profit before Tax                       11,569.68           4,922.69
 
 Less :Current tax                        2,778.81           1,151.67
 
 MAT credit entitlement                  (2,490.29)         (1,150.86)
 
 Deferred tax                             3,886.07           1,741.03
 
 Profit after Tax                         7,395.09           3,180.85
 
 Add :Balance brought forward from 
 previous year                           16,772.69          13,883.54
 
 Profit available for Appropriation      24,167.78          17,064.39
 
 Less : Proposed dividend                   255.13             255.13
 
 Tax on dividend                             35.73              36.57
 
 Balance carried to Balance Sheet        23,876.92          16,772.69
 
 - Financial Review
 
 During the year 2010-11, your Company achieved a total revenue of Rs.
 2,18,796.87 lacs as compared to Rs. 1,94,028.21 lacs in the previous
 year which reflects a growth of around 12.76%. The EBIDTA for the year
 under review was Rs. 35,218.97 lacs as compared to Rs. 26,122.29 lacs
 for the previous year representing an increase of 34.82%. The net
 profit for the year under review was Rs. 7,395.09 lacs against Rs.
 3,180.85 lacs in the previous year.
 
 The financial performance has improved during the year under review,
 despite sluggish market conditions, bottlenecks in material
 availability and slow growth in core sector.
 
 - Dividend
 
 Your Directors recommend for approval of the Members, a dividend of 4%
 on equity shares of the Company, i.e., Re. 0.40 per Equity Share of Rs.
 10 each, for the financial year 2010-11.
 
 The dividend payout for the year under review has been formulated in
 accordance with the Company''s policy to pay sustainable dividend linked
 to long term performance, keeping in view the Company''s need for
 capital for its growth plans and the intent to finance such plans
 through internal accruals to the maximum.
 
 - Expansion & Projects
 
 Your Company continues its journey to deliver value for customers and
 to all the stakeholders of the Company by improving it''s performance in
 safety, quality, productivity, environment and people development
 through knowledge transmission.
 
 Your Company has envisaged to set up 5 million tonne integrated Steel
 Plant, 3 million tonne Cement Plant and 1,215 MW Power Plant in
 Raghunathpur, in the District of Purulia in West Bengal subject to such
 support, approval of government, government agencies and other
 concerned. The Company has received adequate financial assistance from
 various banks and financial institutions for the 1st phase of the
 project. This mega project is another step by the Company to enhance
 its presence in Steel and Power business.
 
 The Company is in the process of setting up of 0.35 million tons Coke
 Oven Plant along with waste heat recovery boiler of 80 TPH at its unit
 at Durgapur.
 
 The Ductile Iron Pipe Plant at Durgapur with a capacity of 2.40 lacs
 MTPA has commenced commercial production with effect from November 3,
 2010 after necessary approvals.
 
 The Company is having BIS certification for its Ductile Iron Pipes for
 100 -1200 mm dia. The Company''s products meet stringent quality
 parameters and which is gaining market share comprising of private,
 institutional, non-institutional and government body buyers. This
 achievement highlights the technical and project execution skills of
 the management of your Company to successfully execute large projects
 within record time.
 
 - Subsidiaries
 
 Your Company has three wholly owned subsidiaries namely, Nilachal Iron
 & Power Limited, Jai Balaji Steels (Purulia) Limited & Jai Balaji
 Energy (Purulia) Limited. Both Jai Balaji Steels (Purulia) Limited &
 Jai Balaji Energy (Purulia) Limited were incorporated on 1st November,
 2010.
 
 The Audited Balance Sheet and Profit & Loss account along with the
 respective Reports of the Board of Directors'' and the Auditors'' Report
 thereon of the said subsidiaries for the financial year ended 31st
 March, 2011 are attached in terms of Section 212 of the Companies Act,
 1956.
 
 - Joint Ventures
 
 - Andal East Coal Company Private Limited
 
 A joint venture company ‘M/s Andal East Coal Company Private Limited''
 was formed in 2009-10 with the Registrar of Companies, West Bengal, in
 which the company along with
 
 M/s Bhushan Steel Limited and M/s Rashmi Cement Limited are venture
 partners. The said Joint Venture Company was formed in terms of
 allocation of Andal Non-Coking Coal Block in the State of West Bengal
 by Ministry of Coal, Government of India. Your Company has 32.79% stake
 in the coal block.
 
 - Rohne Coal Company Private Limited
 
 A Joint Venture Company ‘Rohne Coal Company Private Limited'' was formed
 in 2008-09 with the Registrar of Companies, NCT of Delhi & Haryana, in
 which the company along with M/s JSW Steel Limited & M/s Bhushan Power
 & Steel Limited are venture partners. The said Joint Venture Company
 was formed in terms of allocation of Rohne-Coking Coal Block in the
 State of Jharkhand by Ministry of Coal, Government of India.  Your
 Company has 6.90% stake in the coal block.
 
 Both the Joint Venture Companies are in the process of setting up coal
 mining facilities at respective coal blocks.
 
 - Listing
 
 The equity shares continue to be listed on the National Stock Exchange
 of India Limited (NSE), Bombay Stock Exchange Limited (BSE) and The
 Calcutta Stock Exchange Limited (CSE). Both NSE and BSE have nationwide
 terminals which enable the shareholders/investors to trade in the
 shares of the Company from any part of the country without any
 difficulty. The Company has paid annual listing fees for 2011-2012 to
 the National Stock Exchange of India Limited (NSE), Bombay Stock
 Exchange Limited (BSE) and The Calcutta Stock Exchange Limited (CSE).
 
 - Future Prospects
 
 The world steel demand is directly correlated to growth in world real
 GDP.  According to IMF the world real GDP is forecast to be about 4.5%
 in 2011 and 2012. Real GDP in advanced economics and emerging &
 developing economies is expected to expand by about 2.5% and 6.5%
 respectively which will drive demand for steel. According to World
 Steel Association the apparent steel use will increase by 5.9% to 1,359
 mmt in 2011 and in 2012, world steel demand will grow further by 6.0%
 to reach a new record of 1,441 mmt.
 
 The steel consumption in India is optimistic, indicating that India''s
 steel demand is likely to grow by 13.6% in 2011 as per the World Steel
 Association forecast. If the proposed expansion plans in India are
 implemented as per schedule, it would make it the second largest steel
 maker by 2015-16.
 
 The macroeconomic policies of the government with continuous emphasis
 on infrastructure activities and growing Indian Economy provide growth
 impetus for the industry. The Government has set up an Inter-
 Ministerial Group to facilitate interaction between investors and
 various agencies in matters of acquisition of land, mining power and
 transportation including rail, road and port sectors. The Government
 has sustained its thrust on the development of infrastructure, which
 will lead to derived demand for steel.
 
 Your Company aims to grab these positive developments for growth.
 There is constant endeavour by your company for increasing it''s share
 in existing markets and also to enter new markets.
 
 - Particulars of Conservation of Energy, Technology Absorption, Foreign
 Exchange Earnings and Outgo
 
 The relevant information pursuant to Section 217(1)(e) of the Companies
 Act, 1956, read with the Companies (Disclosures of Particulars in the
 Report of Board of Directors) Rules, 1988, pertaining to conservation
 of energy, technology absorption and foreign exchange earnings and
 outgo are given in the Annexure forming part of this Annual report.
 
 - Directors'' Responsibility Statement
 
 In terms of the provisions of Section 217(2AA) of the Companies Act,
 1956, your Directors hereby confirm that:
 
 i) In the preparation of annual accounts, the applicable accounting
 standards have been followed;
 
 ii) 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 statement of affairs
 of the Company as at 31st March 2011 and of the profit of the Company
 for the year ended on that date;
 
 iii) They have taken proper and sufficient 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; and
 
 iv) The annual accounts have been prepared on a going concern basis.
 
 - Particulars of Employees
 
 The Company does not have any employee whose particulars are required
 to be furnished under Section 217(2A) of the Companies Act, 1956, read
 with Companies (Particulars of Employees) Rules, 1975, as amended from
 time to time.
 
 - Corporate Governance and Management Discussion and Analysis
 
 Your company views Corporate Governance in its widest sense almost like
 a trusteeship, a philosophy to be progressed, a value to be imbibed and
 an ideology to be ingrained into the corporate culture to build sound
 foundation for sustainable growth and value creation.
 
 To that end the Company is committed to follow the best of the
 Corporate Governance practices. Pursuant to Clause 49 of the Listing
 Agreement with the Stock Exchanges, the Corporate Governance Report,
 the Management Discussion and Analysis Report and Auditor''s Certificate
 regarding compliance of the conditions of Corporate Governance are
 annexed to this report.
 
 - Consolidated Financial Statements
 
 In terms of Clause 32 of the Listing Agreement with the Stock
 Exchanges, the duly audited Consolidated Financial Statements,
 conforming to Accounting Standard 21 and 27 issued by the Institute of
 Chartered Accountants of India, are attached as a part of the Annual
 Report.
 
 - Auditors
 
 The statutory auditors of your Company, M/s. S. R. Batliboi & Co.,
 Chartered Accountants, retire at the conclusion of the ensuing Annual
 General Meeting and being eligible, offers themselves for
 re-appointment.
 
 - Auditors'' Report
 
 The Board''s clarifications to certain observations made in the
 Auditors'' Report for the year under review are as under:
 
 - The Auditors have pointed out in the Annexure to the Auditors'' Report
 at para vii that even though the scope and coverage of Internal Audit
 system has improved as compared to previous year, however in their
 opinion the same requires to be enlarged to be commensurate with the
 size and nature of its business.
 
 As the Company is a listed company, the meetings of Audit Committee are
 being held on quarterly basis. The Internal Auditors present their
 report for discussion at those meetings. The management takes suitable
 measures to strengthen internal control systems as and when required
 and as advised by the Internal Auditors. This is a continuous and
 on-going process which the company is adopting to strengthen the
 Internal Audit Process.
 
 - The Auditors have pointed out in the Annexure to the Auditors'' Report
 at para ix(a) that the Company is generally regular in depositing
 undisputed statutory dues except for delay in certain cases.
 
 The management takes due care for deposit of all applicable
 statutory dues in time, however for
 certain factors there has been unavoidable circumstances of delay. The
 management has taken due measures to avoid such delays.
 
 - The Auditors have pointed out in the Annexure to the Auditors'' Report
 at para xi that the Company has delayed in repayment of dues to banks
 during the year.
 
 Due to temporary cash flow mismatch there has been delay in repayments
 of dues to Banks.  There is no continuing delay of payment of such
 dues.
 
 The other observations made in the Auditors'' Report read with Notes to
 Accounts are self-explanatory and therefore, do not call for any
 further elucidation.
 
 - Cost Auditors
 
 Your Board has appointed M/s Mondal & Associates, Proprietor Mr. Amiya
 Mondal as Cost Auditor of the Company in accordance with the provisions
 of Section 233B of the Companies Act, 1956 read with Cost Accounting
 Records (Steel Plant) Rules, 1990, circular no.  15/2011[52/5/CAB-2011]
 dated 11th April, 2011 and circular no. 52/26/CAB- 2010 dated 3rd May,
 2011 for the financial year 2011-12.
 
 - Directors
 
 In accordance with the provisions of the Companies Act, 1956, and the
 Company''s Articles of Association, Shri Angshuman Ghatak, Shri Shyam
 Bahadur Singh and Shri Krishnava S.  Dutt, Directors, retire by
 rotation at the ensuing Annual General Meeting and being eligible,
 offer themselves for re- appointment.
 
 Your Directors have appointed Shri Rajeev Kalra w.e.f. 26th May, 2010
 and Shri Amit Kumar Majumdar w.e.f. 10th July, 2010 as Additional
 Directors of the Company. Both Shri Rajeev Kalra and Shri Amit Kumar
 Majumdar were appointed as Directors of the Company in the last Annual
 General Meeting of the Company held on 22nd September, 2010. Shri Ajay
 Tandon has been appointed as Alternate Director to Shri Rajeev Kalra
 w.e.f. 26th May, 2010.
 
 Shri Rajeev Kalra and Shri Kumar Krishnan Iyer have subsequently
 resigned from the Board w.e.f. 23rd June, 2011 & 20th July, 2011,
 respectively and upon their resignation Shri Ajay Tandon and Shri
 Supratim Banerjee also simultaneously cease to be their respective
 Alternate Director on the Board. The Board wishes to place on record
 its sincere appreciation of their valuable contribution to the Company.
 
 A brief resume of the Directors being re – appointed is incorporated in
 the Notice of the ensuing Annual General Meeting.
 
 - Human Resource Management
 
 Employees are considered as vital and most valuable assets of the
 Company.  Your Company integrates employee growth with organisational
 growth through empowerment and by offering a challenging workplace. The
 nature of Company''s business presupposes sound work expertise,
 effective teamwork and continuous dedication.  To promote this the
 Company has an elaborate HR system to promote a safe, competitive and
 transparent work environment.
 
 Expanding in technology, investing in capacity and developing presence
 at project sites will require people who will have to be trained in the
 specific expertise. The continuous leadership and technical training
 courses at the entry level as well as the continuous on the job
 training have been enhanced to give employees the opportunity to
 improve their skills leading to consistent improvements in systems as
 well as to ensure the Company has the right competency in its
 workforce.
 
 - Corporate Social Responsibility (CSR)
 
 Corporate Social Responsibility is the continuing commitment by
 business to behave ethically and contribute to economic development
 while improving the quality of life of the workforce and their families
 as well as of the local community and society at large.
 
 As part of its policy for corporate social responsibility, the Company
 undertakes
 
 a range of activities to improve living conditions of people in the
 neighbourhood of all its plants. These activities include environment
 protection, healthcare, education, rural development and some of the
 activities undertaken during the year are as under :
 
 - Environment
 
 - Plantation of trees in and around the manufacturing plants and in the
 adjoining villages
 
 - Adoption of 3R''s (reduce, reuse and recycle) concept for water and
 waste water management that includes rain water harvesting.
 
 - Development of Green Belt inside factory and also in nearby villages.
 
 - Setting up of fencing to restrict fugitive emission from plant to
 surrounding villages.
 
 - Healthcare
 
 - Organising free medical checkups for employees & their family
 members.
 
 - Setting up of Health Camp in Banskopa Village at Durgapur, renovation
 of district hospital and distribution of free medicines.
 
 - Creation of social awareness towards health and hygiene.
 
 - Education
 
 - Books distribution, repairing and maintenance, white washing
 /painting of class room in schools.
 
 - Rural development
 
 - Maintenance of horticulture, drain work and playing ground in
 Banskopa Village, Durgapur.
 
 - Arrangement of drinking water, digging & cleaning of ponds at Rasmada
 in Durg.
 
 - Development of drainage system.
 
 - Development of burning ghat and construction of boundary wall in
 burning ghat.
 
 - Constructed playground, Kali
 
 Mandir etc. in Banskopa Village, Durgapur.
 
 - Social
 
 - Provided monetary support to the organising committee of the village
 for organising local festivals, pujas, cultural programmes and also for
 marriage ceremony to the villagers.
 
 - Provided traffic assistance to the volunteers by distribution of
 helmets and shoes for safety purpose.
 
 - Distribution of blankets, organisation of mass marriage ceremony
 among the weaker section of the society in Banskopa Village.
 
 - Formation of Self Help Groups for women empowerment at Ranigunj, West
 Bengal.
 
 - Organised sports tournament and development of sports playground.
 
 Corporate Social Responsibility and Sustainable development will
 continue to remain one of the leading priorities of your Company
 through which it shall consistently strive to touch lives and make a
 difference.
 
 - Acknowledgement
 
 Your Directors wish to place on record their appreciation of the
 dedication and commitment of the workers, staff and executives of the
 Company, which together contributed to the efficient operations and
 management of the Company. Your Directors also take this opportunity to
 express its sincere appreciation for the ongoing support and
 co-operation extended by the investors, shareholders, financial
 institutions/banks, regulatory and government authorities, customers,
 suppliers and all other business
 
 On behalf of the Board of Directors
 
 Aditya Jajodia
 
 Chairman & Managing Director
 
 Place : Kolkata
 
 Date : 12th August, 2011