The Members,
 
 REMI EDELSTAHL TUBULARS LIMITED
 
 The Directors have immense pleasure in presenting 40th Annual Report
 and Audited Statements of Aaccounts of the Company for the year ended
 31st March, 2011.
 
 PERFORMANCE REVIEW:
 
 The performance for the financial year ended 31st March, 2011 is
 summarized below:-
 
                                                      (Rs. In Lacs)
 
                                        2010-2011        2009-2010
 
 Gross Income                           13860.03          8323.42
 
 Profit
 before Depreciation
 & Taxation                               364.16           287.29
 
 Depreciation                  268.70               257.45
 
 Taxation                        6.70     275.40   (17.13) 240.32
 
 Net Profit for the year                   88.76            46.97
 
 Less: Prior year
 adjustments                               (0.26)           33.32
 
                                           88.50            80.29
 
 Add: Balance brought 
 forward                                 1191.26          1210.97
 
 Available for
 appropriation                           1279.76          1291.26
 
 Transfer to
 General Reserve                          100.00           100.00
 
 Balance carried to
 Balance Sheet                           1179.76          1191.26
 
                                         1279.76          1291.26
 
 OPERATIONS:
 
 The Stainless Steel Tubes and Pipes Industry was recovering from a weak
 economic period. Your Company''s marketing and product development
 efforts initiated recently have fructified and are reflected in the
 Company''s financial performance, i.e. revenue increase by 34.5%, growth
 in sales volume, 43.5% growth in value resulting in an EBIDTA growth of
 43.72% over the previous year. The Company''s order book reflects a
 healthy Rs.121 crores at the beginning of the year end which indicates
 growth performance for the forthcoming year also.
 
 The company has the distinction of being the first to commission the
 state-of-art cage-forming large diameter automatic Stainless Steel Pipe
 Forming Mill. The benefit of this equipment will partly accrue in the
 current year and would fully reflect in the coming years.
 
 Your company is embarking on an expansion programme [of approx 13
 Crores] to meet the increasing technological requirements of the
 expanding sophisticated market. The expansion project is funded by
 internal accruals and term loans already sanctioned by the Company''s
 bankers.
 
 INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT 1956:
 
 Sub-Section (1) (e):
 
 a.  CONSERVATION OF ENERGY:
 
 All efforts are being made to conserve energy.
 
 b.  TECHNOLOGY ABSORPTION:
 
 The Company does not have any foreign collaboration for manufacture.
 The Company is continuously modernizing and improving its products in
 quality and is having ISO 9001/PED Certification (which is required for
 Export Sales).
 
 c.  FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
 Outgo - Rs.39.53 Lacs
 
 Earnings - Rs.1323.23 Lacs (including deemed exports &
 
 supplies to SEZ & EOU ofRs.905.79 Lacs)
 
 Sub-Section (2A):
 
 No employee of the Company was in receipt of remuneration equal to or
 exceeding prescribed limits.
 
 Sub-Section (2AA):
 
 Your Directors state:
 
 (i) that in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 (ii) that the directors 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 at the end of the financial year and of the
 profit or loss of the Company for that period;
 
 (iii) that the directors 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) that the directors had prepared the annual accounts on a going
 concern basis.
 
 APPRECIATION:
 
 Your Directors place on record their sincere thanks for the financial
 support from State Bank of India. They also place on record their
 appreciation for the dedicated services of the executives, staff and
 workers of the Company. Your Directors also appreciate the faith you
 have reposed in the Company and are confident that the Company can
 depend upon your continued support in its endeavor to grow.
 
 Registered Office:
 
 REMI HOUSE
 
 Plot No. 11, Cama Industrial Estate,
 
 Goregaon (East),
 
 Mumbai - 400 063                            ON BEHALF OF THE BOARD
 
                                                            Sd/-
                                              VISHWAMBHAR C. SARAF
 
 Dated: 12th August, 2011                                 CHAIRMAN