ANKIT METAL AND POWER LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT Steel is the most fundamental and core building block for world industry. It is used in almost every industrial process whether as a raw material resource or as a finished product and in most of these processes, there is no substitute for it. Deploying a process that has been perfected over the past 150 years or so, most global manufacturers today continue to create new varieties of steel for new applications and work to refine the manufacturing process in order to reduce energy consumption and CO2 emissions. Though each region and nation has its own producers, today steel is a globally-traded product with many nations both importing and exporting large quantities of different types of steel. The global economic slowdown and the tightening monetary policy in India towards curbing inflation has led to a fall in industrial production and consequently dampened steel demand and hurt realisation rates. However the long-term outlook for steel continues to remain bright and optimistic. At AMPL, our solid business strategy, focus on downstream assets, operational excellence and robust marketing insights enabled us to report good performance in 2011-12. When we commenced operations, most thought that we were just another small player that would soon be trampled by competition. This was strong motivation for us as we built an enterprise that would not be swayed by short-term challenges but would stand tall even in the face of the worst crises. So this is what we did: * Established 16.5 MW WHRB (waste heat recovery boiler) and 29 MW AFBC (atmospheric fluidized bed combustion) captive power plants that optimised energy costs, made us self-reliant for our power needs and reduced dependence on state power grid. * Installing pelletisation facilities, that enables us to extensively utilise iron ore fines, a precious national resource that is generally exported, for DRI operations and hence optimise raw material costs and circumvent dependence on iron ore lumps. * Focused on understanding technical knowhow, and leverage this insight into making informed sales, thereby strengthening customer relationship. * Located our manufacturing facility close to the coal belt of Raniganj(West Bengal) and proximate to ports, railway lines and arterial highways, thereby assuring cost-effective consistent supplies on the one hand and speedy end products delivery on the other. * Generated robust demand of our Ankit brand of TMT bars that enable us to fetch a premium over competitor products. * Embarked upon the creation of several value-added downstream facilities comprising enhancement of wire rod mill capacity (from 1,00,000 to 1,80,000 TPA), a 30 TPD sponge iron plant, railway siding, AOD convertor and RM pre- heater. I would express my gratitude to our diverse stakeholders, our customers, vendors, bankers, all the staff members and the Board of Directors for their continued support, enthusiasm and guidance. I look forward to your continuing patronage and trust in our mission. Sincerely, Suresh Kumar Patni Chairman