Dear Shareholders,
 
 The global economic upheaval is bound to pave the way for bet er and
 stronger socio-economic inst tut ons. The emerging economies can draw
 important lessons from the Euro crisis.  The most important lesson
 would be that no economic bloc can grow sustainably without the foundat
 on of a strong inst tut onal framework and legislat ons, which bind the
 countries together as one unifi ed whole. The process of draf ing and
 implement ng reforms becomes cumbersome in the absence of a general
 consensus, as in the case of Europe. Economic growth in the US is also
 not encouraging, but unlike Europe it has no problems of integrat on
 among states. Eurozone today refl ects several warring fact ons, vying
 for at ent on. As a result, USA''s return to economic stability and
 sustainable growth is expected to be much faster than that of Europe.
 
 India''s economic growth st ll does not refl ect the part cipat on of
 its 1.2 billion people. The need of the hour is to lay more emphasis on
 reforms to revive the animal spirit in the country''s economy as the
 Prime Minister has rightly pointed out. The infrastructure sector needs
 addit onal support from all quarters to accelerate growth and uplif
 millions of people from poverty and ignorance and provide them with bet
 er housing, educat on, livelihood and healthcare. Encouragingly, the
 12th Five-Year Plan (2012-2017) has envisaged an investment of over Rs.
 50 lac crore in the infrastructure sector, half of which will come from
 the private sector.
 
 Steel plays an important role in infrastructure creat on and its
 consumpt on is a reliable index to measure economic development and
 social well being. India is the fi f h largest global steel producer
 and is well posit oned to become the second largest producer in the
 near future. The steel industry in India holds considerable opt mism,
 despite the global economic slowdown. This opt mism has an important
 basis.  The industry does not rely heavily on exports to the developed
 world. India''s enormous domest c market can support its growth. The
 domest c steel consumpt on in the infrastructure and consumer durables
 sector is likely to see an upward trend. JSPL is commit ed to play an
 act ve role in India''s steel industry.
 
 Notwithstanding challenges, we performed commendably in 2011-12. Our
 total income grew 39% from Rs. 13,194 crore in 2010-11 to Rs. 18,351 crore
 in 2011-12, thanks to enhanced scale, increased demand and escalat ng
 realisat ons. Our operat onal profi t increased 8% from Rs. 6,398 crore
 in 2010-11 to Rs. 6,935 crore in 2011-12. Our net profi t increased 5%
 from Rs. 3,804 crore in 2010-11 to Rs. 4,002 crore in 2011-12 and cash
 profi t surged 9% from Rs. 5,115 crore in 2010-11 to Rs. 5,575 crore in
 2011-12.
 
 We are consistently growing our steel making capacity to achieve the
 target of 18 MTPA steel capacity by the year 2020.  Therefore, our
 steel product on capacity is being enhanced by set ng up steel plants
 in Angul (Odisha) and Patratu (Jharkhand). We have also increased our
 current steelmaking capacity at Raigarh (Chhat sgarh) and are in the
 process to take it to 10 MTPA. Our Shadeed Iron & Steel Co. LLC, Oman,
 is operat ng a 1.5 MTPA hot briquet ed iron plant at Sohar in Oman and
 we plan to set up a 2 MTPA steelmaking facility.
 
 We have signed an MoU with the Government of Odisha to set up a
 downstream Industrial Park for the development and industrialisat on of
 Angul in Odisha; leveraging our large steel and power manufacturing
 capacity along with the Coal Gasifi cat on plant and 80,000 barrel per
 day CTL project. This park will provide a unique opportunity to the
 entrepreneurs of Odisha to set up industrial units at a faster rate.
 Moreover, there will be a focus on select target recovery based
 industries and other medium and small-scale downstream units, which
 would both add value and increase industrial act vity.  With an
 investment commitment of Rs. 500 crore, the park will create direct and
 indirect employment for over 32,000 people.  Total investment by
 prospect ve entrepreneurs in the park is expected to be over Rs. 5,000
 crore. This park is expected to become operat onal by the end of 2014.
 
 It has always been our endeavour to inculcate the best pract ces from
 across the globe. We signed an MoU with the Australian mining major,
 Rio Tinto to jointly work towards global commercialisat on of the
 Hismelt (high-intensity smelt ng) technology to be used in a fully
 integrated steel making facility.  We will be introducing the Hismelt
 technology for the fi rst t me in the world other than a pilot plant
 commissioned in Australia.
 
 We are looking for acquisit on opportunit es of iron ore and coal mines
 in Australia and Africa to secure raw material sources.
 
 Our performance in 2011-12 is once again due to the eff orts of our
 except onal team of talented and highly mot vated professionals. We
 also think that it takes a value-driven culture to bring out the potent
 al of our people. Our people are taking responsibility for their act
 ons; making decisions in the best interests of the Company; and execut
 ng with focus, excellence and integrity.
 
 JSPL''s business priorit es have never overshadowed its community eff
 orts. In fact, we have always looked upon our business as an enabling
 force for social advancement. JSPL''s CSR programmes focus on educat on,
 health and family welfare, agriculture, animal husbandry, water
 resource management, infrastructure development, on-farm and off -farm
 livelihood enhancement, capacity building and women empowerment.
 Moreover, we are uplif ing underprivileged communit es and support ng
 locals to develop professional skills and earn a bet er livelihood. The
 O.P. Jindal Community College marks the fulfi lment of Shri O.P.
 Jindal''s vision to educate and train a skilled workforce, who can
 deliver products and services of global standards.
 
 At JSPL, all business decisions are guided by sensit vity towards the
 environment and an emphasis on social welfare, with the part cipat on
 of employees, contractors, customers, communit es and all other
 stakeholders. We are enhancing our focus more on the use of green
 technologies to reduce our carbon footprint and opt mise the use of
 natural resources.
 
 I thank our Board of Directors, employees, business associates,
 shareholders and the wider community of stakeholders for making JSPL''s
 value leadership an inspirat on for the world.
 
 Naveen Jindal
 
 Chairman & Managing Director