Dear Shareholders

For the year ended 31 March 2020 your Company's standalone revenues from operationdecreased from Rs. 8053.11 Million in 2018-19 to Rs. 3478.79 Million in FY 2019-20 dueto lower Ferro Alloy production and EBITDA was at Rs. (197.25) Million in FY 2019-20mainly due to high raw material costs. The operational performance and margins of yourCompany has been adversely affected due to non-availability of working capital foroperations and other external factors including challenges arising out of high prices ofChrome Ore being fixed by OMC through e-auction shortage in availability of Chrome Oredue to low production at OMC's mines high energy costs high electricity duty and coalcess high road transport rates etc. These factors have resulted in the productionfacilities being operated at sub-optimum level. Your Company has been dependent upon OMCfor supply of Chrome Ore a vital raw material and has been facing challenges due to highprices of Chrome Ore.

THE INDUSTRY

Ferro Chrome is used in varying proportions to produce different grades of StainlessSteel. The global Stainless Steel production was approx. 52.22 million tonnes in 2019 outof which India's production stood at approx. 3.92 million tonnes. The global High CarbonFerro Chrome production was at approx. 14.73 million tonnes in 2019 out of which India'sFerro Chrome production stood at approx. 1.28 million tonnes. India exports approx. 50% ofits Ferro Chrome production primarily to China South Korea Japan and Taiwan. Chinaaccounts for approx. 60% of global Ferro Chrome consumption. India's Chrome Ore productiondropped to approx. 4.06 million tonnes in 2019 out of which approx. 1 million tonne isproduced by OMC. The Chrome Ore price fixing mechanism by OMC through auction has resultedin high prices of Chrome Ore. Meanwhile the Government of Odisha auctioned three ChromeOre mining blocks. All of these three blocks have been won by Tata Steel Mining. Theavailability and price scenario of Chrome Ore going forward remains uncertain.

The spread of COVID-19 pandemic since mid-March 2020 has resulted in an unprecedentedcrisis and global recession creating huge uncertainty for business financial markets andeconomy.

VISION & STRATEGY

Your Company is committed to its vision to create long term stakeholder value throughvalue addition of natural resources. The Company is focused on implementing DebtResolution as per Reserve Bank of India (RBI) guidelines and plans to raise funds forworking capital by inducting Investor ensuring fair price of Chrome Ore reducing costand improving operational efficiency.

OUTLOOK

The Government's focus on implementing reforms to attract investment and encouragemanufacturing in India is expected to increase consumption of Steel Stainless Steel andFerro Alloys going forward. However the outcome of mine auctions with extremely high bidpremium is likely to impact the availability and price of Chrome Ore. The high energylogistics & finance costs and unprecedented crisis and global recession due to spreadof COVID-19 pandemic are areas of concern and will remain a challenge going forward.

I would like to place on record my sincere appreciation and gratitude to the entireteam of VISA Steel for their relentless commitment inspite of the challenging businessenvironment. I am grateful to the members of the Board of the Company for their invaluableguidance and contribution and acknowledge the support of all shareholders. I would alsolike to convey my sincere thanks to all the stakeholders including lenders supplierscustomers employees Government officials etc. for their valued support as we navigatethrough these challenging times and I hope to continue to receive your support in thefuture.

Warm regards & best wishes

Vishambhar Saran

Chairman