DIRECTORS'' REPORT TO THE MEMBERS
 
 The Directors present their 29th Annual Report together with Audited
 Accounts for the year ended 31st March, 2011.
 
 FINANCIAL RESULTS
 
                                                      (Rs. in Lacs)
 
                                          Year ended       Year ended
                                          31-03-2011       31-03-2010
 
 Sales & Other Income                          59741            37314
 
 Profit / (Loss) before interest, 
 depreciation and Miscellaneous 
 Expenses written off                            181             (553)
 
 Interest and Financial Charges                 3122             1494
 
 Depreciation and Amortization                  2313             1888
 
 Profit / (Loss) before Exceptional Items      (5254)           (3935)
 
 Exceptional Items                                 -
 
 Profit/ (Loss) after Exceptional Items        (5254)           (3935)
 
 Less : Fringe Benefit Tax                         -                -
 
 Profit/ (Loss) after Tax                      (5254)           (3935)
 
 Profit/ (Loss) brought forward from 
 previous year                                 (8886)           (4951)
 
 Balance carried to Balance Sheet             (14140)           (8886)
 
 OPERATIONS
 
 Performance of Alloy Steel and Seamless Tubes of the Company was as
 under:
 
                         2010-11               2009-10
 
 Particulars Production  Sales Gross Sales Production  Sales Gross sales
               (Tones)(in Qty.)(Rs. in Lacs) (Tones)(in Qty.)(Rs. in Lac)
 
 Steel         *109318  109524     56457     83742*    84076     36337
 
 Seamless 
 Pipes           12366   12303      9100      5772      5982      3936
 
 *Includes 7882 MT (Previous year 2972 MT) processed by third parties.
 
 Steel input cost has gone up during the year and increased in input
 cost could not be passed on to customers. Further, competition in steel
 has increased specially from unit having blast furnace, this is
 resulted into increase in higher inventory/ higher receivables which
 led to increase in working capital interest cost. Contribution from
 steel division has, therefore been reduced due to reduce realization
 per MT.
 
 The Company has developed new grades in steel division and also
 rejections in pipes have been reduced. The Company has booked first
 ever big order in Exports.
 
 DIRECTORS
 
 Shri Balkrishan Goenka, Shri R.G. Sharma and Shri Atul Desai, the
 directors of the Company retire by rotation at 29th Annual General
 Meeting and being eligible offered themselves for reappointment.
 
 Your directors recommend their appointments/ reappointments.
 
 AUDITORS
 
 M/S. Chaturvedi & Shah hold office of Auditors until the conclusion of
 the 29th Annual General Meeting. Members are requested to reappoint
 them for continuing in the office until conclusion of the next Annual
 General Meeting.
 
 AUDITORS'' OBSERVATIONS
 
 References drawn by the auditors'' in their report are self explanatory.
 
 THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
 DIRECTORS) RULES, 1988
 
 In terms of the above rules, the directors are pleased to give the
 particulars as prescribed therein in the Annexure, which forms part of
 the Directors'' Report. Form B relating to research and technology
 absorption being nil is not attached.
 
 Foreign exchange used and earning is mentioned below:
 
 Used: Rs. 3176 Lacs (Rs. 6684 Lacs)
 
 Earning: Rs. 724 Lacs (Rs. 42 Lacs)
 
 PARTICULARS OF EMPLOYEES
 
 There were no employees covered under the purview of the Section 217
 (2A) of the Companies Act, 1956 and the Rule framed thereunder.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 i. That in the preparation of the annual accounts, all the applicable
 accounting standards had been followed along with proper explanations
 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.
 
 ACKNOWLEDGEMENT
 
 The Board takes this opportunity to express its sincere appreciation
 for the excellent support and co-operation received from the Company''s
 customers, suppliers, bankers and the share holders for their
 consistent support to the Company. The directors also sincerely
 acknowledge the significant contributions made by all employees for
 their dedicated services to the Company.
 
                        For and on behalf of the Board of Directors
 
                        Abhishek Mandawewala     M. L. Mittal
 
                        Executive Director       Director
 
 Place: Mumbai
 
 Date: 30th May 2011