The Directors take pleasure in presenting the 19th Annual Report and
 Audited Accounts of your Company for the year ended 31st March, 2011.
 
 financiaL results
 
 Particulars                                          rs. in Lakhs
 
                                                2010-11         2009-10
 
 Gross Turnover                               75,015.37       71,051.85
 
 Net Turnover                                 72,485.63       69,057.96
 
 Other income                                    324.66           71.93
 
 Total Revenue                                72,810.29       71,123.78
 
 Earning Before Interest, Depreciation, 
 Taxation & Amortisation (EBITDA)              8,923.50       12,654.05
 
 Interest                                      1,467.37        2,061.82
 
 Depreciation                                  1,871.61        1,794.60
 
 Proft Before Taxation (PBT)                   5,584.52        8,797.63
 
 Less: Tax including Deferred Tax              1,381.89        3,003.66
 
 Proft After Taxation (PAT)                    4,202.63        5,793.97
 
 Proft Brought Forward from Previous Year      1,657.94        1,143.80
 
 Prior Period Adjustment – Taxation             (59.08)           67.99
 
 Debenture Redemption Reserve written back          –            750.00
 
 Amount available for Appropriation            5,801.49        7,755.76
 
 Appropriations are made as under:–
 
 – General Reserve                             3,500.00        5,400.00
 
 – Proposed Dividend including tax thereon       693.21          697.82
 
 Balance Carried Forward to Next Year          1,608.28        1,657.94
 
 DIVIDEND
 
 Despite lower profts during the year, your Directors recommend to
 maintain the dividend at Rs. 1.50 (i.e.15%) per share on the equity
 shares of the Company for the year ended 31st March, 2011 as in the
 earlier year. If approved, the dividend will absorb Rs. 693.21 lakhs
 (including Rs. 96.76 lakhs towards dividend tax).
 
 REVIEW OF OPERATIONS
 
 The Company achieved Gross Sales of Rs. 750.15 Crores during the year
 under review as against Rs. 710.52 Crores in the previous year
 refecting an increase of 5.6%. However the quantity of D. I. Pipes sold
 during FY 2010-11 was lower by 9.72% at 1,35,246 MT as compared to
 1,49,805 MT sold during FY 2009-10. The lower volume of sales coupled
 with increase in cost of inputs resulted in lower profts (PBT) for the
 year under review at Rs. 55.85 Crores as against Rs. 87.98 Crores
 earned during FY 2009-10.
 
 During the frst quarter of the year under review, your Company took a
 planned shutdown of its Mini Blast Furnace (MBF) from 9th May 2010 to
 27th June, 2010 for repairing the MBF and for installation of Hot Blast
 Stoves. Apart from this, chilling-in of MBF at the time of restart,
 took further three – four weeks time to stabilize the operations after
 the long shutdown. During this period of about two and half months,
 while there was no production of liquid metal/pig iron, the Ductile
 Iron Pipe Plant (DIP) was also under shut-down for some time for annual
 preventive maintenance and operated at a very low capacity, due to non
 availability of metal. Consequently, the production of all the
 Divisions during the financial year 2010-11 was lower compared to the
 production achieved during FY 2009-10.
 
 The quantity of Low Ash Metallurgical Coke produced in the Coke Oven
 Plant was lower by 8.5% at 94,092 MT in FY 2010-11 as against 1,02,862
 MT in FY 2009-10, due to shutdown of some ovens for major repair, which
 continued till July, 2010. Accordingly, the units of power generated,
 in the 12 MW – Waste Heat Recovery Based Captive power Plant of the
 Company, were marginally lower at 518 Lakh units during the year under
 review compared with 536 Lakh units in the preceding year.
 
 The production of Mini Blast Furnace (MBF), producing liquid metal
 mainly for Ductile Iron Pipe Plant, was lower at 1,46,285 MT for the
 financial year 2010-11 compared to 1,58,503 MT in the previous year,
 refecting a decrease of about 8%. The production of D. I. Pipes during
 FY 2010-11 was lower by about 10% at 1,34,779 MT compared with 1,49,604
 MT in the preceding year.
 
 The production of Cement during FY 2010-11 was lower by about 10% at
 61,384 MT compared to 68,476 MT in the previous year, due to curtailed
 operations, as the market for slag cement started improving from
 December, 2010.
 
 Consequent to repair of Mini Blast Furnace (MBF) and installation of
 Hot Blast Stoves, as aforesaid, the manufacturing capacity of MBF for
 liquid metal/pig iron has gone up to 2,25,000 TPA. Similarly, with the
 installation of balancing equipments, the capacity of Ductile Iron
 Pipes Plant (DIP) also stands increased to 2,25,000 TPA.
 
 future prospectS
 
 Your Company has taken steps for cost reduction and expansion of
 capacities in Coke Oven, Power Generation, Liquid Metal and Ductile
 Iron Pipes. While, these steps will help in volume growth, the pressure
 on selling prices may continue, due to intense competition in the
 domestic market in view of further capacities being added by the
 existing players and new entrants.
 
 The installation of Sinter Plant along with regular upgradation and
 addition of balancing equipments in the Ductile Iron Pipe Plant (DIP)
 will increase the capacity of Ductile Iron Pipes to 2,75,000 TPA by end
 of Financial Year 2011-12. To cater to the increased requirement of
 coke, your Company is in the process of installing additional Battery
 at its Coke Oven Plant, which is expected to be commissioned by
 December, 2011. With this, the capacity of the Coke Oven Plant will
 increase to 2,25,000 TPA. In addition, for effective utilization of
 higher quantum of waste heat generated from the Coke Oven Plant after
 expansion, it is planned to add one more boiler to increase the power
 generation in the existing Captive Power Plant.
 
 As a further measure of cost reduction, the Company envisages to set up
 a Ferro Alloys Plant at a capital outlay of Rs. 40 Crores partly to
 cater to its captive requirement and to serve the growing demand of
 Ferro Silicon, to support the proftability of the Company.
 
 The Company plans to fnance the above investments through internal
 accruals and Term Loans.
 
 CREDIT RATING
 
 Credit Analysis and Research Limited (CARE), a leading rating agency
 has reviewed and upgraded the rating to CARE A+ (Single A plus) from
 CARE A (Single A). This rating is applicable to facilities having
 tenure of more than one year. CARE A+ rating indicates adequate safety
 for timely servicing of debt obligations and carry low credit risk.
 
 The rating for short term facilities has been reviewed and reaffrmed as
 PR1+ (PR One Plus), the highest rating in the category and indicates a
 strong capacity for timely payment of short term debt obligations and
 carry lowest credit risk.
 
 DIRECTORS
 
 Andhra Pradesh Industrial Development Corporation (APIDC), Hyderabad
 nominated Shri V. Nagi Reddy, IAS on the Board of Directors of your
 Company with effect from 25th August, 2010 in place of Shri Vinod Kumar
 Agrawal, IAS. Your Directors place on record their appreciation for the
 active participation and valuable services rendered to the Company by
 Shri Vinod Kumar Agrawal.
 
 Shri Gouri Shankar Rathi and Shri G. Maruthi Rao retire by rotation at
 the ensuing Annual General Meeting and being eligible, offer themselves
 for re-appointment.
 
 Shri S.Y. Rajagopalan was appointed as an additional Director on the
 Board of Directors of the Company from 7th May, 2011. He will hold
 offce upto the conclusion of ensuing Annual General Meeting. The
 Company has received a notice from a member of the Company to appoint
 Shri S.Y. Rajagopalan as a Director, liable to retire by rotation.
 
 CORPORATE GOVERNANCE
 
 Your Company has fully complied with the requirements of Clause 49 of
 the Listing Agreement regarding Corporate
 
 Governance. A report on Corporate Governance Practices, the Auditors
 Certifcate on compliance of mandatory requirements thereof and
 Management Discussion and Analysis are given as annexure to this
 report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 Please refer to the Management Discussion and Analysis section
 appearing elsewhere.
 
 EMPLOYEES
 
 Board of Directors expresses its appreciation for sincere efforts made
 by the employees of your Company at all levels during the year and
 their co-operation in maintaining cordial relations. Your Directors are
 pleased to inform that a long term Wage Settlement for a period of four
 years under Section 12 (3) of Industrial Disputes Act, 1947 was signed
 with the Unions of the workmen in November, 2010.
 
 The information required under Section 217(2A) of the Companies Act,
 1956 read with Companies (Particulars of Employees) Rules, 1975, as
 amended, forms part of this Report. However, the report and accounts
 are being sent to all the shareholders of the Company excluding the
 above information. Those shareholders, who desire to obtain these
 particulars, would be provided the same upon receiving such request.
 
 Statutory information
 
 Information as per Companies (disclosure of particulars in the Report
 of Board of Directors) Rules, 1988 related to conservation of energy,
 technology absorption, foreign exchange earnings and outgo are given in
 Annexure-‘A attached hereto and forming part of this report.
 
 Directors responsibility Statement
 
 The Board of Directors of the Company confirms:
 
 i) That in the preparation of annual accounts the applicable accounting
 standards have been followed and there has been no material departure.
 
 ii) That the selected accounting policies were applied consistently and
 the Directors 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 as at 31st March, 2011 and of the profts of the Company for
 the year ended on that date.
 
 iii) That proper and suffcient care has been taken 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) That the annual accounts have been prepared on a going concern
 basis.
 
 AUDITORS
 
 The Auditors, M/s. K.R. Bapuji & Co., Chartered Accountants, retire at
 the conclusion of the forthcoming Annual General Meeting and being
 eligible, offer themselves for re-appointment.
 
 COST AUDITORS
 
 The Central Government vide its order dated 16th December, 2010 has
 directed the Company to conduct cost audit for its cement division.
 Accordingly, the Board of Directors of your Company appointed M/s.
 Narasimha Murthy & Co., Cost Accountants, Hyderabad, as Cost Auditors
 for the financial year 2010-11, which has been approved by the Central
 Government.
 
 ACKNOWLEDGEMENTS
 
 The Board of Directors thanks the Government Authorities, Financial
 Institutions, Banks, Customers, Vendors, Shareholders & Investors, for
 their continued co-operation and support to your Company.
 
                             For and on behalf of the Board of Directors
 
 Place: Chennai               G. maruthi rao            mayank Kejriwal
 Date: 7th May, 2011             Director              Managing Director