Dear Members,
 
 It gives me immense pleasure to present you the 21st Annual Report for
 the financial year 2011-12 of our Company. During the year, the Company
 successfully completed its expansion programme at its Umbergaon plant
 in Gujarat. After expansion, the present total capacity stands at
 19,000 MTPA as against 17,600 MTPA earlier. The Company''s topline has
 grown by 24.8% to touch Rs. 6,796.9 mn in FY12 as against Rs. 5,444.28
 mn in FY11.
 
 The economy was under tremendous pressure with GDP growth at 6.5% in
 FY12. The recent Index of Industrial Production numbers also portray a
 sad picture. Growth rate slowed down sharply to 0.1% in April 2012 from
 5.3% a year ago, due to contraction in capital goods and dip in
 manufacturing output, reflecting the sluggish state of the economy.
 (IIP was negative in March 2012, which declined to 3.2%). The
 performance of the capital goods sector was disappointing, only 12 out
 of 22 major industrial groups showed positive growth. The capital goods
 output, declined by 16.3% as against a growth of 6.6% in the same month
 last year. Mining output also contracted by 3.1% in April 2012, as
 against growth of 1.6% in the same month a year ago.
 
 The pressure in the economy affected our profitability as well. EBIDTA
 witnessed a decrease of 5.19% to Rs. 521 mn in FY12. Higher interest
 payment and forex losses led to decline in Profit after Tax by 31.9% to
 Rs. 169.4 mn in FY12.
 
 Fighting against all odds, your Company has emerged as one of the
 leading manufacturers of stainless steel welded, seamless pipes and
 tubes. Your support has helped the Company to earn a pre eminent
 position in manufacturing high grade stainless steel products in India.
 It will be our constant effort to strive for greater heights with our
 strong base in the stainless steel pipes sector. Our consistent
 endeavor to take care of all the stakeholders has resulted in trust and
 faith for the Company.
 
 We truly believe, we would achieve good business and financial
 performance by posting good profits in FY13.
 
 I would be failing in my duties if I do not acknowledge the support,
 cooperation and valuable guidance provided to me by the Board members.
 I thank you all for your support and reposing faith and confidence in
 us.
 
 Prakash C. Kanugo
 
 (Chairman & Managing Director)