The Directors are pleased to present the Twenty Ninth Annual Report
 along with the Audited Accounts for the financial year ended 31st March
 2011:
 
 PERFORMANCE
 
 FINANCIAL RESULTS                           2010-11        2009-10
 
                                               (Rupees in Lakhs)
 
 Net Sales                                 50,740.71       31,960.79
 
 PBIDT 14,381.33 2,311.01
 
 Profit Before Taxes (PBT)                 12,920.12          999.01
 
 Less: Provision for Taxes                  4,228.55          309.32
 
 Profit After Taxes (PAT)                   8,691.57          689.69
 
 Less: Prior Year Adjustments                   2.19            0.63
 
 Add: Profit brought forward from 
 
 previous years                             2,149.07        1,825.37
 
 Profit Available for appropriation        10,838.45        2,514.43
 
 Special Dividend on Equity Shares          2,088.03               -
 
 Dividend Tax on Special Dividend             346.80               -
 
 Final Dividend on Equity Shares              522.00          261.00
 
 Dividend Tax on Final Dividend                86.70           44.36
 
 Transfer to General Reserve                5,000.00           60.00
 
 Surplus Carried to Balance Sheet           2,794.92        2,149.07
 
 DIVIDEND
 
 Your Directors recommend a dividend of 30% (Rs.3.00 per share) for the
 financial year 2010-11 against 15% (Rs. 1.50 per share) of previous
 year. During the year, the Company has already declared and paid a
 special silver jubilee dividend of Rs. 12.00 per share, thereby the
 total dividend for the year amounts to Rs. 15/- per share.
 
 OPERATIONS
 
 During the year, the Company recorded Net Sales of Rs.507.40 crores as
 against Rs.319.61 crores in 2009-10 registering a growth of 59%. Profit
 Before Tax (excluding extra-ordinary items) increased to Rs. 20.43
 crores during the year 2010-11 from Rs. 9.99 crores in 2009-10
 representing an increase of 104%.  The production during the year was
 76734 MT, compared to the previous years 60761 MT.
 
 Buoyancy in the domestic market especially in the Automobile sector
 helped the Company to achieve this excellent growth. The Company has
 utilized the full opportunity available in the market and registered
 substantial growth both in Turnover & Profit.
 
 EXTRA-ORDINARY ITEM
 
 During the year the company has made a substantial profit after tax of
 Rs. 75.09 Cr due to sale of shares held in Nelcast Energy Corporation
 Ltd. This extra-ordinary item has helped the Company to increase its
 net worth substantially.
 
 OUTLOOK
 
 The Indian economy is strongly on track and expected to grow
 continuously. The Company is expected to maintain a steady growth and
 use the opportunity available in the Automobile industry. The
 combination of effective manufacturing costs with good quality systems
 would give an edge to the Company in terms of pricing and quality.
 
 INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
 
 The Company has an Audit Committee to oversee the Companys financial
 reporting process, disclosure of financial information, related party
 transactions, and internal control system etc. The Company has well
 defined internal control systems which aim at better efficiency of
 operations, compliances with legal obligations and Companys policies
 and procedures.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 The Company has prepared Consolidated Financial Statements of Nelcast
 Ltd and its subsidiary Nelcast USA Inc as at March 31, 2011, in
 accordance with Accounting Standard 21 (AS 21) on Consolidated
 Financial Statements, issued by the Institute of Chartered Accountants
 of India. As required by Clause 41 of the Listing Agreement with the
 Stock Exchanges, the audited Consolidated Financial Statements are
 circulated with the Annual Report.
 
 QUALITY AND CUSTOMER SATISFACTION
 
 The Company totally adheres to the TS 16949 norms, and continuously
 strives to achieve world class quality by strictly adhering to the
 quality standards. During the year the Company has been awarded ISO
 14001 & 18001 for Environmental Management Systems.
 
 The Company has been receiving continuous support from its customers
 like Tata Motors, Ashok Leyland, TAFE, Mahindra & Mahindra, VE
 Commercial, ITL etc., and in exports Arvin Meritor, Dobbie Dico,
 Danfoss and ZF Industries. The Company is closely working with all
 customers in terms of new product development, improvement in quality
 levels etc. to meet the expectation of customers.
 
 DEPOSITS
 
 The Company has accepted public deposits during the year. Its deposits
 as at 31st March 2011 stand at Rs.115.31 lakhs.
 
 DIRECTORS
 
 Mr. D. Sesha Reddy, is due to retire by rotation and being eligible
 offers himself for re-appointment.
 
 During the year Mr. S. Radhakrishnan has been appointed as Additional
 Director of the Company and he would hold office till the date of the
 ensuing Annual General Meeting. The Company has received a notice from
 a shareholder signifying his intention to propose the appointment of
 Mr. S. Radhakrishnan as Director of the Company at the ensuing Annual
 General Meeting. He has also been appointed as Managing Director of the
 Company in the Board Meeting held on 17.01.2011.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Your Directors hereby make the following statement in terms of Section
 217 (2AA) of the Companies Act, 1956 with respect to Directors
 Responsibility.
 
 We confirm that:
 
 In the preparation of the Annual Accounts for the year ended 31st March
 2011, all the applicable Accounting Standards had been followed.
 
 Such Accounting Policies have been selected and applied consistently
 supported by management 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 at the end of the financial year and of the Profit and
 Loss of the Company for that period.
 
 Proper and sufficient care had been taken for the maintenance of
 adequate Accounting Records, in accordance with the provisions of this
 Act for safeguarding the assets of the Company and for preventing and
 detecting fraud and other irregularities.
 
 The Accounts for the year ended 31st March 2011 have been prepared on
 a going concern basis.
 
 CORPORATE GOVERNANCE
 
 The Company has been pro-active in following the principles and
 practices of good Corporate Governance.  The Company has taken adequate
 steps to ensure that the conditions of Corporate Governance as
 stipulated in Clause 49 of the Listing agreements with the Stock
 Exchanges are complied in its letter and spirit. The matters relating
 to Corporate Governance as per the Listing Agreement are attached to
 this report. A management discussion and analysis report as required by
 listing agreement is also enclosed which forms part of this report.
 
 AUDITORS
 
 Your Companys Auditors, M/s. J.B.REDDY & CO., Chartered Accountants,
 will retire at the conclusion of the forthcoming Annual General Meeting
 and they have consented to be re-appointed for the financial year
 2011-12. The Company has received a letter from M/s. J.B.REDDY & CO.,
 stating that their appointment as auditors, if made, would be within
 the limits specified under Section 224 (1-B) of the Companies Act,
 1956.
 
 INDUSTRIAL RELATIONS
 
 The employee relations have remained cordial through out the year and
 industrial harmony was maintained.  Measures for the safety, training
 and development of the employees continued to receive top priority. The
 Directors place on record their appreciation of the valuable
 contribution made by the employees of the Company at all levels towards
 the performance and growth of the Company.
 
 PARTICULARS OF EMPLOYEES
 
 Information required as per Section 217 (2A) of the Companies Act, 1956
 read with the Companies (Particulars of Employees), Rule 197, as
 amended from time to time is given in the Annexure.
 
 DISCLOSURE OF PARTICULARS
 
 The information required under Section 217 (1) (e) of the Companies
 Act, 1956 read with Companies (Disclosures of particulars in the Report
 of the Board of Directors) Rules, 1988 is given in the Annexure forming
 part of this Report.
 
 ACKNOWLEDGEMENTS
 
 The Directors again would like to express their sincere appreciation
 for the dedicated efforts of the employees and co-operation of
 associates, suppliers and customers. We also express our sincere thanks
 to Companys Bankers namely State Bank of India, IDBI Bank Ltd and
 Kotak Mahindra Bank Ltd for their trust and continued support.
 
                                      For and on behalf of the Board
 
                                          P. Radhakrishna Reddy
 
                                                Chairman      
 
 Date : 13th May 2011 
 
 Place: Chennai