TO SHAREHOLDERS
 
 Dear Shareholders,
 
 The Directors have pleasure in presenting their Report on the business
 and operations of your Company along with the Audited Accounts of the
 company for the year ended 31 st March 2012.
 
 FINANCIAL RESULTS:
 
                                   Current Year            Previous Year
 
 PARTICULARS                        (Rs.In Lac)            (Rs. In Lac)
 
 Sales and other income              9331.48                 6625.40
 
 Profit before depreciation           515.68                  454.29
 
 Depreciation                         325.79                  283.33
 
 Profit for the year                  189.89                  170.96
 
 Provision for tax                     56.56                   63.08
 
 Profit after tax                     133.33                  107.88
 
 Profit brought forward from the 
 previous year                        891.54                  838.70
 
 Profit available for appropriation  1024.87                  946.59
 
 Proposed Dividend                     53.10                   47.20
 
 Tax on Proposed Dividend               8.61                    7.84
 
 Surplus carried to Balance Sheet     963.16                  891.55
 
 OPERATIONS :
 
 During the year, the Company produced 30532 MT and sold 29834 MT of
 sponge iron compared to previous year''s production of 30220 MT and
 sales of 29708 MT. The company produced 9978 MT and sold 10079 MT of
 Pig Iron as compared to last year''s production of 4022 MT and sales of
 4092 MT. The EPS for the current Year is at Rs. 2.26.
 
 DIVIDEND :
 
 The Board has recommended dividend at 9 % (Nine percent) per share i.e.
 Rs. 0.90 (Previous year Rs. 0.80) per equity share for the year ended 31 st
 March, 2012. The dividend if approved by the shareholders will be paid
 to those members whose name appears on the Register of Members on the
 record date. The total outgo on account of Dividend (ex- taxes) will be
 Rs. 53.10 Lacs compared to previous year figure of Rs. 47.20 Lacs.
 
 DIRECTORS :
 
 Sri S.N.Kabra and Smt. Sunita Dalmia who retire by rotation & being
 eligible offer themselves for re-appointment.
 
 LISTING :
 
 The shares of the Company are listed at Bombay Stock Exchange. The
 Scrip Code at BSE is 518075. The shares of the Company are also listed
 at Calcutta Stock Exchange Limited. The Scrip Code at CSE is 13054.
 
 The respective listing fees for the above Stock Exchanges up to the
 year 2012-13 have been paid.
 
 RECONCILIATION OF SHARE CAPITAL :
 
 As directed by Securities Exchange Board of India (SEBI),
 Reconciliation of Share Capital is being carried out quarterly by a
 practicing Company Secretary. The findings of the Reconciliation of
 Share Capital were satisfactory.
 
 PERSONNEL:
 
 The Provision of section 217(2A) of the Companies Act, 1956 read with
 Companies (Particular of Employees) Rules 1975 as amended are not
 applicable to the company as no employee has drawn remuneration in
 excess of the limits specified therein.
 
 DIRECTOR''S RESPONSIBILITY STATEMENT :
 
 Pursuant to section 217(2AA) of the Companies Act, 1956 the Board of
 Directors of the Company Confirm that;
 
 (i) in the preparation of annual accounts, the applicable Accounting
 Standards as specified by the Institute of Chartered Accountants of
 India have been followed and that there has been no material departures
 from the same;
 
 (ii) the Directors have 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) the Directors have taken proper and sufficient care, to the best
 of their for the maintenance of adequate accounting records in
 accordance with the provision of the Companies Act 1956 for
 safeguarding the assets of the company and for preventing and detecting
 fraud and other irregularities; and
 
 (iv) the annual accounts have been prepared on going concern basis.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO :
 
 The prescribed details as required under section 217(1) (e) of the
 Companies (Disclosure of Particulars on the report of Board of
 Directors) Rules 1988 are set out in annexure ''A forming part of this
 report.
 
 REPORT ON CORPORATE GOVERNANCE :
 
 Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges,
 the following form part of this annual report:
 
 (i) Report on Corporate Governance - (Annexure ''B'');
 
 (ii) Management Discussion & Analysis Report - (Annexure ''C'').
 
 AUDITORS :
 
 The members are requested to appoint the Auditors for the current year
 and fix their remuneration. Messrs Rustagi & Company, Chartered
 Accountants, Kolkata, the existing Auditors of the Company have
 furnished the certificate of their eligibility for reappointment under
 Section 224 (1) of the Companies Act, 1956.
 
 ACKNOWLEDGEMENT AND APPRECIATION :
 
 Your Directors place on record their appreciation of the continued
 support, cooperation and assistance from our shareholders, customers,
 suppliers, employees and other business associates including various
 agencies of the Central and State Governments and Bankers.
 
                                    On behalf of the Board of Directors 
  
 Place: Barpali                                   Y K. Dalmia
 
 Date: 28.07.2012                                   Chairman