2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000 Board of Directors

TThe Company's sales during the Financial Year are Rs.339.53 Crores as against Rs.261.51 Crores of the Previous Year. The Company has shown a growth of 29.83% in Sales during the year ended 31.03.2007. Similarly, the Exports during the current year is Rs.254.14 Crores as against Rs.103.90 Crores of Previous year i.e., over 144.60% growth in exports. During the Financial Year the Company sold 4042.66 metric tons of Casing Pipes, 1262.29 metric tons of Production Tubing and 10787.04 metric tons of Drill Pipes aggregating a turnover of Rs.339.53 Crores besides other income of Rs.1.80 Crores and the Company Profitability has increased from Previous year Rs.11.44 Crores to Rs.44.67 Crores in the Current Financial Year registering a growth of over 290%.

During the Financial Year the Company has Fully paid Principal amounts of both Term Loan and Funded Interest on Term Loan of Rs.1523.35 lakhs to IFCI and Rs.1727.11 lakhs to ICICI. The account with IFCI and ICICI has been closed. In addition,an amount of Rs.1295.40 Lakhs paid to IDBI towards Full and Final settlement of FITL outstanding.

The Company's order book position as on 31.03.2007 is Rs.244.11 Crores including Export orders to the tune of Rs. 189.41 Crores. The Company's sales during the year 2006-07 is Rs. 261.51 Crores as against Rs. 161.87 Crores of the Previous Year. The Company has shown a growth of 62% in Sales during the year ended 31.03.2007. During the year 2006-07 the Company sold 10109.58 metric tons of Casing Pipes, 2151.56 metric tons of Production Tubing and 8221.33 metric tons of Drill Pipes aggregating a turnover of Rs. 26151.43 Lakhs besides other income of Rs. 325.03 Lakhs. During the Financial Year 2006-07 the Company has made repayment of Rs. 11.89 Crores towards principal outstanding to Financial Institutions and Banks.

The Company's order book position as on 31.03.2006 is Rs.195.41 Crores including Export orders to the tune of Rs. 61.09 Crores. The Company's sales during the year 2005-06 is Rs. 158.37 Crores as against Rs. 118.57 Crores of the Previous Year. The Company has shown a growth of 33% in Sales during the year ended 31.03.2006. During the year 2005-06 the Company sold 14200.77 metric tons of Casing Pipes, 958.53 metric tons of Production Tubing and 4767.09 metric tons of Drill Pipes aggregating a turnover of Rs. 15837.49 Lakhs besides other income of Rs. 136.20 Lakhs. During the Financial Year 2005-06 the Company has made repayment of Rs. 10.31 Crores towards principal outstanding to Financial Institutions and Banks.

The Company has received orders to the tune of Rs.240 Crores during the year 2004-05 and the orders on hand as on 01.04.05 is Rs. 175 Crores. With the recovery in the Oil and Gas industry and subsequent increase in the activities of Oil Exploration the Company has shown a growth of 20% in the Sales during the year ended 31.03.05. The Company's Sales during 2004-05 is Rs.119.72 Crores as against Rs. 99.31 Crores of the previous year. The Exports during the current year 2004-05 have also increased to 27.85 Crores as against Rs.12.25 Crores of the previous year. During the year 2004-05 the Company sold 7796.66 Metric Tons of Casing Pipes, 1416.44 Metric Tons of Production Tubing and 4293.13 Metric Tons of Drill Pipes aggregating a turnover of Rs. 11971.91 Lakhs besides other income of Rs.110.03 Lakhs.

The Directors are happy to inform that the market for your Company's products has picked up during the year and your company received orders valued over Rs.130 Crores during the year including export orders valued at Rs. 12.25 Crores. During the Financial Year 2003-04 the Company sold 7953.27 Metric Tons of Casing Pipes, 572.18 Metric Tons of Production Tubing and 4577.37 Metric Tons of Drill Pipes aggregating a turnover of Rs.9930.93 Lakhs besides other income of Rs. 61.72 Lakhs

The demand of the company's products in the international market had shown signs of improvement during First Quarter of the current year(2002-2003) and the company was successful in securing Export Orders Valued at over USD 4.00 Million(Rs.20 Crores)from Syrian Petroleum Company(SPC), Syria.Subsequent developments in the Gulf Rgion slumped the improving International Market.The Domestic Market also got affected. Even the process of procurement of the company's products viz.Drill Pipes was delayed and the orders which are normally finalized in the First/Second Quarter were not finalized till the end of financial year(2002-03).These factors had adversely effected the Company's operations and resulted in achieving a lower turnover during the year 2002-03.The Company sold 1394.14 Metric Tons of Casing Pipes,521.86 Metric Tons of Production Tubing and 2380.54 Metric Tons of Drill Pipes aggregating a turnover of Rs.4520.94 Lakhs besides other income of Rs. 920.27 Lakhs.

The Global market was severelly affected in the aftermath of September 11,2001 and consequent international Developments.The Company's plans for exports were adversely affected on this count.Despite such situations, the Company could export to the tune of Rs. 554.18 Lakhs.The Company sold 2902.01 Metric Tons of Casing Pipes and 2298.06 Metric Tons of Drill Pipes aggregating a turnover of Rs.4967.69 Lakhs besides other income of Rs. 1833.66 Lakhs.

Oil and Gas industry has suffered a serious set back in the global market resulting in substantial reduction in the Oil and Gas Drilling and Exploration activities,thereby sustantially reducing the demand for OCTG products during the period ended March 31,2001.The Company's operations also got effected on this account.Inspite of difficult market conditions however,the Company could sell 6915.30 MT of Casing Pipes, 731.27 MT of Production Tubing and 1235.06 MT of Drill Pipes aggregating a turnover of Rs. 58.24 Crores besides other income of Rs. 0.50 Crores during this period.

During the year under review, the Oil and Gas Industry suffered a serious set back in the global market which is a cyclic phenomenon resulting in substantial reduction in the Oil and Gas Drilling and Exploration activities, thereby substantially reducing the demand of OCTG products. The Company's operations also got affected on this account. The Company sold 2603.18 Metric Tons of Casing Pipes, 513.45 Metric Tons of Production Tubing and 4248.80 Metric Tons of Drill Pipes aggregating a turnover of USD 18,075,000 (Rs 79.53 crores) besides other income of USD 490,900 (Rs 2.16 crores).