The Directors take pleasure in presenting the 28th Annual Report on
 the operations of your Company and the Audited Accounts for the
 financial year ended 31st March, 2012, together with the Auditors''
 Report thereon.
 
 FINANCIAL RESULTS:
 
 Your Company''s results for the year, in comparison with the previous
 year, are given below in a summarized format:
 
                                                        (Rs. in lakhs)
 
 Particulars                                2011-12            2010-11
 
 Net Sales                                 32,181.30          29,933.47
 
 Other Income                                 156.89             154.35
 
 Profit before interest and 
 depreciation and prior
 period adjustments                         1,934.64           1,981.32
 
 Less: Interest                  900.00               768.90
 
 Depreciation                    215.01               198.32
 
 Profit Before Tax and prior 
 period adjustments                           819.63           1,014.10
 
 - Prior Period Adjustments       12.56                 2.84
 
 Profit Before Tax                            832.19           1,016.94
 
 Less: Provision for tax
  - Regular Tax                  163.99               294.46
 
 - Deferred Tax (asset)/
 liability                       101.46                 4.80 
 
 Profit/(Loss) after tax
 for the year                                 566.74             717.68 
 
 Add/Less: Surplus/(Deficit) 
 in P&L Account
 brought forward                            1,518.28             924.62
 
 Amount available for 
 appropriation                              2,085.03           1,642.30
 
 Appropriations:
 
 Transfer to General 
 Reserve                                       43.00              54.00
 
 Proposed Dividend on 
 equity shares                                 60.04              60.04
 
 Income Tax on proposed 
 Dividend                                       9.74               9.97
 
 Surplus/(Deficit) carried 
 to Balance Sheet                           1,972.25           1,518.29
 
 DIVIDEND:
 
 Your Directors have pleasure in recommending a dividend of Rs. 2.00 per
 share for the year 2011-12.
 
 OPERATIONS:
 
 Operations of the Company''s three divisions for the year under review
 were as follows
 
 LEAD DIVISION:
 
 This year, the Lead division recorded sales of Rs. 27,448 lakhs as
 against Rs. 25,395 lakhs the previous year.
 
 WINDMILLS:
 
 The entire energy generated at Ramagiri was sold to Andhra Pradesh
 Power Coordination Committee, and the total revenue was Rs. 88 lakhs as
 against Rs. 73 lakhs the previous year.
 
 GLASS LINING:
 
 This year, the Glass Lining division recorded sales of Rs. 4,645 lakhs as
 against Rs. 4,466 lakhs the previous year.
 
 TOTAL:
 
 The combined turnover of the Company, thus, was Rs. 32,181 lakhs for the
 year under review, as against Rs. 29,933 lakhs for the previous year.
 
 CORPORATE GOVERNANCE:
 
 Your Company has complied with all provisions of Corporate Governance,
 as required under Clause 49 of the Listing Agreement. A report on
 Corporate Governance, along with the certificate on its compliance from
 the Auditors, forms part of this report.
 
 Voluntary Guidelines -2009:
 
 The Ministry of Corporate Affairs has issued a set of Voluntary
 Guidelines on ''Corporate Governance'' and ''Corporate Social
 Responsibility'' in December, 2009.  These guidelines are expected to
 serve as a benchmark for the Corporate Sector and also help them in
 achieving the highest standard of corporate governance.
 
 Some of the provisions of these guidelines are already in place as
 reported elsewhere in this Report. The other provisions of these
 guidelines are being evaluated.
 
 QUALITY SYSTEM:
 
 Your Company''s certificates for Quality Systems under ISO 9001 for the
 Lead Division continue to be valid.
 
 CONSERVATION OF ENERGY:
 
 (i) Your Company continues to explore all possible avenues to reduce
 energy consumption.
 
 (ii) As your Company is not covered in the Schedule to the Companies
 (Disclosures of particulars in the report of the Board of Directors)
 Rules, 1988, read with Section 217(1)(e) of the Companies Act, 1956,
 the details under Form ''A'' are not required to be furnished.
 
 TECHNOLOGY ABSORPTION:
 
 No new technology has been obtained during the year and the existing
 technology in use has been fully absorbed.
 
 FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
                                                          (Rs. in Lakhs)
 
                                                2011-12        2010-11
 
 a) Foreign Exchange earnings on exports       1,141.83       4,474.16
 
 b) Foreign Exchange used on account of:
 
 i) Foreign Travel                                    -           1.47
 
 ii) CIF value of imports of raw
 material & others                            11,209.67      13,341.24
 
 iii) Commission on Sales                             -          15.44
 
 iv) Dividend for 2010-11/2009-10                  1.65           0.82
 
 DIRECTORS:
 
 Pursuant to the provisions of Section 256 of the Companies Act, 1956,
 Sri S.V.Narasimha Rao, and Dr. M.R.Naidu will retire by rotation at the
 ensuing Annual General Meeting, and are eligible for reappointment.
 
 Sri S V Narasimha Rao offers himself for reappointment, while Dr Naidu
 does not seek reappointment. The Board thanks Dr Naidu for his
 invaluable contributions to your Company during his long years of
 Directorship.
 
 DEPOSITS:
 
 Your Company has accepted fixed deposits during the year, and complied
 with all the statutory provisions.  The outstanding deposits as on 31st
 March, 2012 amount to Rs. 287.00 lakhs, which includes Rs. 227.00 lakhs
 from related parties.
 
 AUDITORS:
 
 Statutory Auditor: Your Company''s auditors M/s. Sarathy & Balu,
 Chartered Accountants, retire at the conclusion of the forthcoming
 Annual General Meeting and have signified their willingness to accept
 re-appointment and confirmed their eligibility under Section 224(1B) of
 the Companies Act, 1956.
 
 Cost Auditor: As per the requirement of the Companies (Cost Accounting
 Records) Rules, 2011, read with Sec.  209(1)(d) and Section 233B of the
 Companies Act, 1956, your Company carried out an audit of Cost
 Accounting records relating to Wind Firm division for the year 2011-12.
 In this connection, your Company has appointed Mr. N.V.S. Kapardhi,
 Cost Accountant, as Cost Auditor for the Financial Year 2011-12.
 Further, subject to approval of the Central Government, your company
 has appointed Mr. N.V.S. Karpardhi, Cost Accountant, who has signified
 his willingness to accept appointment and confirmed his eligibility
 under Section 224(1B) of the Companies Act, 1956, as Cost Auditor for
 the Financial Year 2012-13.
 
 PARTICULARS OF EMPLOYEES:
 
 No employee was in receipt of remuneration more than the limit
 prescribed under the Companies (Particulars of Employees) Rules, 1975.
 
 TRANSFER OF UNCLAIMED AND UNPAID DIVIDEND TO IEP FUND:
 
 Pursuant to Section 205C of the Companies Act, 1956, read with the
 Investor Education and Protection Fund (Awareness and Protection of
 Investors) Rules, 2001 as amended from time to time, an amount of Rs.
 30,075/- in the unclaimed and unpaid interim dividend for 2004-05 was
 transferred to the Investor Education and Protection Fund during the
 year.
 
 DISCLOSURE AS PER LISTING AGREEMENT:
 
 Clause 32:
 
 The cash flow statement in accordance with the Accounting Standard on
 cash flow statement (AS-3) issued by ICAI is appended to this Annual
 Report.
 
 Clause 43A:
 
 Your Company''s shares are listed on the BSE Limited, Mumbai, PJ.
 Towers, Dalal Street, Fort, Mumbai. The annual listing fee for the year
 2012-13 has been paid.
 
 RESPONSIBILITY STATEMENT:
 
 In pursuance of the provisions of Section 217(2AA) of the Companies
 Act, 1956, your Directors state that:
 
 i.  the applicable accounting standards have been followed In the
 preparation of the annual accounts.
 
 ii.  they had 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 state of affairs of
 the Company for the financial year ending 31st March, 2012, and of the
 profit of the Company for that period.
 
 iii. they had taken proper and sufficient care 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.
 
 iv.  they have prepared the accounts on a going concern basis.
 
 INDUSTRIAL RELATIONS:
 
 The industrial relations in the Company continue to be very cordial and
 stable. Your Directors would like to place on record the dedication and
 commitment of all the employees of your Company.
 
 ACKNOWLEDGEMENT:
 
 Your Directors thank the customers, vendors, investors and Andhra Bank
 for their continued support during the year.
 
                                        For and on behalf of the Board 
 
                                                             V. Ramesh
 
 Place : Hyderabad                                        Chairman and
 
 Date : 21-07-2012                                   Managing Director