Dear Shareholders,
 
 Amid the sombre backdrop of the challenging and sluggish macro
 environment, the global crude steel production witnessed a 1.8% growth
 during the year. India''s cumulative steel production witnessed a growth
 of 7% for FY 2011-12, against 13.2% growth in FY 2010-11.  The slowdown
 in the production was owing to a lull in the commissioning of
 greenfield projects accompanied by severe raw material crunch from the
 ongoing crisis in coal and iron-ore sectors. The steel demand on the
 other hand has drastically declined owing to low consumption across
 major steel consuming areas like automobile, fast moving consumer goods
 and construction.
 
 India has witnessed rapid steel capacity expansion over recent decades
 and has emerged as the fourth largest steel producer globally.
 
 The government has allocated US$ 1 trillion for the XIIth Five year
 Plan period towards infrastructure development, which will further
 enhance the demand for steel. The consumption growth, on the other
 hand, is expected to increase considerably owing to urbanisation and
 increasing construction activities. MSP Steel & Power Limited is
 strategically positioned to respond to the anticipated demand. our
 proactive strategy is based on our ambition to evolve from a regional
 player to one of the leading national players.
 
 For more than a decade, we have been directing our efforts towards
 enhancing our operational efficiencies. Besides, we have invested
 around Rs. 840 crore over the past four years towards expansions of
 pellet plant, sponge iron and captive power plant capacities. I am glad
 to say that the year marked the completion of our first phase of
 expansion, which was way ahead of schedule. Thanks to our excellent
 execution capabilities that we achieved this amidst challenges.
 
 our team''s dynamic and professional mindset has further enabled us to
 meet the untold challenges. our continuous ability to innovate enables
 us to enhance our execution and service delivery. The growing levels of
 dedication and passion to excel give us the confidence to meet our
 desired growth objectives. In addition, we will fulfil our obligations
 to all our stakeholders, customers and employees as well as the nation
 and the larger society, providing all of them with industry-leading
 values through advanced and responsible management.
 
 At this juncture, stabilisation would be the focus of our strategy to
 ensure smoother operations, achieve economies of scale and enhance cost
 and overall efficiencies. I believe we have developed a framework that
 will bring significant success to MSP Steel & Power limited and all its
 shareholders over the next several years and enable us to emerge
 stronger. I express my gratitude to all the shareholders, customers and
 employees for their continued support and confidence in our abilities.
 This gives us the courage to excel further in our future endeavours.
 
 Warm Regards,
 
 Puranmal Agrawal
 
 Chairman