Dear Shareholder''s
 
 On the occasion of 9th Annual General Meeting for the financial year
 2011-12 of the Company, I take the opportunity to welcome the members
 to the second AGM after IPO. The biggest challenge faced by the company
 during the year was to establish a distinct identity and to make
 satisfactory profits despite stringent market and government policies
 regarding Iron & Coal.
 
 During the year the Company entered in the Capital Market with IPO of
 1,00,00,000 (one crore only) equity shares of Rs. 10.00/- each at a
 premium of Rs. 39.00/-. Your Company''s shares were listed on the
 Bombay Stock Exchange Limited (BSE) and National Stock Exchange of
 India Limited (NSE) on 2(f September, 2011. Trading in the shares
 commenced on 24th October, 2011. The issue was oversubscribed by about
 4.16 times. I thank all the investors for their overwhelming response
 to the IPO and the confidence reposed by them.
 
 The financial year 2011-12 has been one of the most challenging years
 for the Company. The combined effect of European debt crisis and global
 economic slowdown along with the domestic challenges of non
 availability and high cost of raw material have Impacted the Iron &
 Steel Industry and the performance of the Company.
 
 To diversify, the Company entered into the Real Estate business during
 the year. Real Estate is a business of long term investments and the
 Company will keep reviewing opportunities for capital gains from time
 to time. I am happy to inform you that the second half of the financial
 year has seen a significant pick up in the commercial letting activity.
 
 The performance of Steel Division is quite satisfactory when compared
 to previous year in terms of production. When the market conditions
 improve, I am sure, we will be able to establish our leadership also.
 The production of Sponge Iron has increased by 35.14%, I. e. from
 47,378.030mt to 58,637.570mt as compared to previous year.
 
 The plant and machinery operated very well during the year. However,
 the plant faced, shortage of Iron otherwise the production would have
 been much higher.. Despite shortage of iron ore, the company maintained
 its level of sales as compared to previous year.
 
 The price of principal raw materials, i.e. coal and iron ore, witnessed
 precipitous rise during the review period mainly due to coal blockading
 by South Eastern Coal field Limited (SECL) and after the blockage the
 company is procuring the coal from open market at higher prices. There
 was an Increase In the selling price of Sponge Iron albeit not
 absorbing full impact of increase in the cost of raw material. Despite
 lower production and dispatches, the company achieved a profit before
 tax at Rs 188.50 lacs (Rs.706.91 lacs in the previous year) and Profit
 After Tax at Rs. 109.15 lacs (Rs.495.29 lacs in the previous year).
 Consequently, Earnings Per Share decreased to Rs. 0.44 per share
 (Rs.3.10 per share).
 
 On the captive power generation front, the company generated revenue of
 Rs. 2169.47 lacs as compared to previous year revenue of Rs. 2530.40
 lacs witnessing a decline of 14.26%. Such ups and downs in a sensitive
 industry like power.
 
 The company continues its march towards improvement of processes and
 will definitely revert in the next year with good results.
 
 I wish to place on record the support and co-operation extended by the
 governments of India and Chhattisgarti, the Banks and financial
 institutions, Board of Directors, the employees, suppliers, contractors
 and consultants in our endeavors.
 
                                             RAVI VASWANI 
 
                                                 CHAIRMAN
 
                                Raipur, 31st October 2012