Dear Shareholders
 
 The Board of Directors of your company is pleased to place the
 Directors'' Report along with audited financial results of the company
 for the year ended 31st March 2012.
 
 FINANCIAL PERFORMANCE AUDITED FINANCIAL RESULTS 
 
                                               Year
                                               ended        Year
                                                            ended
 Particulars                                   31st 
                                               March 2012   31st 
                                                            March 2011
 
 Profit before interest and depreciation         (28.13)      (1.65)
 
 Interest and finance charges                      2.81        1.67
 
 Depreciation                                     11.47       11.76
 
 Profit before exceptional 
 and non-recurring items                         (42.41)     (15.08)
 
 Exceptional & non-recurring items                    -           -
 
 Profit before tax                               (42.41)     (15.08)
 
 Provision for Income Tax                             -       (4.93)
 
 Profit after taxation                           (42.41)     (10.15)
 
 Balance brought forward                          52.00       63.06
 
 Available for appropriation :                     9.59       52.91
 
 - Transfer to General Reserve                        -           -
 
 - Proposed dividend                                  -        0.78
 
 - Tax on proposed dividend                           -        0.13 
 
 Balance carried to the Balance Sheet              9.59       52.00
 
 DIVIDEND
 
 As the company has reported a loss during the current fiscal'' your
 directors do not recommend any dividend for the financial year 2011-12.
 
 OPERATIONS Financial Year 2011 -2012
 
 Your company faced an extremely challenging business environment during
 the year 2011-12 Price of fuel oil rose continuously'' administered
 prices of coal were increased steeply and cost of wood in North India
 increased more than the other regions. These factors undermined the
 relative competitive position of your company. These coupled with
 excess capacity in the Industry'' led to both erosion of volumes and
 margins. Your company has availed enhanced supply of power from the
 Grid and stopped running of the DG Sets towards the end of the year
 which provided some respite.
 
 Financial Year 2012-13 Prospects
 
 With the growth of economy'' the expected surplus capacity will be much
 less and Exchange Rates will enable some Industry players to export
 more volumes. These are likely to lead to better realisations. Barring
 further spikes in the key input costs'' your company is expected to fare
 better during the coming year.
 
 ENVIRONMENT'' POLLUTION CONTROL AND SAFETY
 
 STAR has always been conscious of need for environment preservation''
 quality of products and safe working conditions. Your company is
 accredited with ISO 14001: 2004 and ISO 9001 : 2008 & IS 18001 : 2007.
 
 Your company''s efforts are well recognized as the company has yet again
 been awarded for environmental excellence as well as Safety in Paper
 Industry. Your company has all the necessary environmental clearances
 from the competent authorities.
 
 SOCIAL FARM FORESTRY
 
 With a view to ensure sustained supply of wood to the Mill and maintain
 green cover'' STAR is continuing to promote pulpwood plantation. Your
 company has established nurseries in its catchment area with active
 co-operation of the farmers.
 
 During the year'' a total of 324 lacs seedlings were distributed among
 the farmers covering an estimated area of 12480 hectare. We have given
 thrust to distribution of fast growing clones.
 
 Social Farm Forestry assists in enhancing rural income besides easing
 pressure on raw material availability to the company.
 
 HUMAN RESOURCE AND WELFARE
 
 Your company continue to lay emphasis on regular training to improve
 employee skills. The company continues to have a cordial and harmonious
 relations with its employees at all levels.  Directors wish to place on
 record their deep appreciation for dedication of the employees towards
 the organisation.
 
 FIXED DEPOSITS
 
 Your Company did not invite any fixed deposits during the year. The
 fixed deposits outstanding aggregated to 0.02 lacs on 31st March'' 2012
 (Previous year - Rs. 0.1 2 lacs on 31s1 March'' 2011).  There was no
 delay / default in repayment of deposits during the year.
 
 The company has complied with the provisions of section 58-A of the
 Companies Act'' 1956 and rules made thereunder.
 
 DIRECTORS
 
 Mr. G.P. Goenka was re-appointed as whole-time director of the company
 w.e.f. 15th January'' 2012 for a period of 3 years subject to requisite
 approval(s). However Mr. Goenka subsequently resigned from whole-time
 directorship. He continues as ''Chairman'' in non-executive capacity with
 effect from 1 st April'' 2012.
 
 Mr. Shrivardhan Goenka and Mr. C.M. Vasudev are retiring by rotation at
 the ensuing Annual General Meeting and being eligible'' offer themselves
 for re-appointment.
 
 PARTICULARS OF CONSERVATION OF ENERGY'' TECHNOLOGY ABSORPTION AND
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 Particulars regarding energy conservation'' technology absorption and
 foreign exchange earnings/outgo pursuant to Section 217 (1 )(e) of the
 Companies Act'' 1956'' read with the Companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules'' 1988'' are furnished as
 Annexure-I to this Report.
 
 PARTICULARS OF EMPLOYEES
 
 Information in accordance with the provisions of Section 217(2A) of the
 Companies Act'' 1956 read with the Companies (Particulars of Employees)
 Rules'' 1975 as amended regarding employees is given in Annexure to this
 report. However as per provisions of Section 219 (1) (b) (iv) of the
 Companies Act'' 1956'' the annual report is being sent to all the members
 of the company excluding the aforesaid information. Any member
 interested in obtaining such information may write to the Secretary at
 the company''s registered office address.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under the provisions of Section 217(2AA) Directors
 Responsibility Statement on the preparation and presentation of these
 accounts is as per Annexure-ll to this Report.
 
 CORPORATE GOVERNANCE
 
 A separate report on corporate governance'' together with a certificate
 from the statutory auditors confirming compliance with corporate
 governance requirements has been annexed as Annexure- III to this
 annual report.
 
 AUDITORS
 
 M/s Lodha & Co. Chartered Accountants'' retire at the ensuing Annual
 General Meeting. They have expressed their willingness to continue in
 office'' if re-appointed and have furnished the requisite certificate of
 their eligibility pursuant to Section 224(1 B) of the Companies Act''
 1956.
 
 AUDITORS’ REPORT
 
 The qualification of the Auditors in their report read with relevant
 notes on the financial statements as mentioned below are
 self-explanatory:
 
 (a) Non-provision of diminution in the value of investment'' if any''
 -Note no. 13 (b) of the Balance Sheet.
 
 (b) Managerial remuneration - Note no. 22 (a) of Statement of Profit
 and Loss.
 
 COST AUDIT
 
 Pursuant to Section 233-B of the Companies Act'' 1956'' M/s RJ. Goel &
 Co.'' Cost Accountants'' New Delhi have been appointed to audit the cost
 accounts for the financial year 2011-12.
 
 LISTING ON STOCK EXCHANGES
 
 The Company''s equity shares are listed with The Stock Exchange'' Mumbai
 (BSE) and National Stock Exchange of India Ltd. (NSE). The Company has
 paid the requisite listing fees to the stock exchanges for the
 financial year under review.
 
 ACKNOWLEDGEMENTS
 
 The Board place on record their gratitude to the Company''s customers''
 dealers'' suppliers'' Government'' financial institutions'' banks and
 employees for their valuable support to the Company.
 
                                     For and on behalf of the Board
 
 Place : New Delhi                                     G. P. Goenka
 
 Date : 28th May 2012                                      Chairman