Message to Share holder

Dear Shareholders,

For over four decades, we have strengthened our business model with a flexible and asset -light approach. There were headwinds along the way, but we persevered with a focus tomeet and exceed customer expectations. The result is that today we have emerged as a consistent ERW Steel Tubes and Hollow Sections manufacturer with superlative products excellence.

We are creating value for our customers by continuously innovating to upgrade the quality of our products, enhancing integration across all segments of operations and implementing strategies to drive future growth The performance of the Company during the last financial year was a testimony of all that we have believed in and the strong foundation that we have built the company upon. Our industrial customers as well as retail customers grew significantly, and we continue to invest large amounts in quality material and solutions that deliver high operating efficiencies.

Our gross sales for the financial ended March 31,2015 crossed the psychological mark of Rs. 200 Crore even though metal prices dropped significantly in line with the global pricing scenario. Our export sales also registered a good growth, during the current fiscal we exported 16,325MT quantity majorly to UK, other European Countries, UAE, Middle East and Africa amounting Rs. 79.15 Crore, against the previous year's export quantity of 6679MT amounting Rs. 34.72 Crore, a growth of 145% in quantity terms and 128% in value term. We are a recognized 'Star Export House' and recipient of various EEPC India awards conferred in recognition of our export excellence.

Our Net Revenues stood at 194.82 Crores as compared to 181.34 Crores in previous year, registered a growth of 5.34% whereas the total quantity sold during the current fiscal is 5.21% more (this year we sold 44627.92 MT materials as compared to 42418.66 MT during the previous year). However, due to rising cost of production, interest cost and overheads our EBIDTA for the year stood at Rs. 8.40 Crores as compared to Rs. 8.78 Crores for the financial year ended March 31.2014. However I would like to reaffirm that we are exceptionally well positioned due to our strong market presence in the growing Indian and emerging international markets, strong balance sheet and strong track record of organic growth coupled with low cost of operations. This provides the foundation for delivering profitable growth and creating long term shareholder value.

With a new robust government at the centre, India will look to recover the time and opportunities lost in the past few years. Certain areas has already been identified as a major bottle -neck area by the new government and huge investments are on the horizon with substantial private sector participation. In collaboration various governments and their agencies are aggressively announcing various initiatives for strong and robust economic developments such urbanization, sanitization,
smart cities schemes, rapid transportation systems for better connectivity, metros, railways and aviation schemes etc. Furthermore, with the increasing per -capita disposable income steel, pipes, structures consumption is increasing day by day.

Consequent to all these developments rapid urbanization and accelerating industrialization will drive the demand for more steel tubes and hollow sections. Besides, there is need for accelerated capacity additions to achieve the 'Make in India' initiative of Government of India. Rama Steel Tubes Limited, is attractively poised to grow, as a long-term plan, we have already initiated certain strategic initiatives.

1. Modernization n Value Addition
we undertook a drive modernization and de -bottlenecking of our existing manufacturing facilities, which 'II result in better, efficient and competitive operations. Further we have decided to shift towards value-added products. This will help us in densking our product mix from cut-throat competition and it will strengthen our margins and hence, our corporatebrand.

2. Manufacturing Facilities in Western India
for accelerated pace of growth. strengthen the Company's position in the emerging markets, especially in western part of India (there is huge demand -supply gap in this particular segment) it became necessary to enter into new territory and for this purpose, the management of the Company decided to set up a green field project in Khopoli, Dist. Raigad, Maharashtra. This manufacturing facility'll have installed capacity of 25000 MT per annum in Phase -land will manufacture ERW Steel Tubes & Pipes in all four categories viz. Black Pipe, Hot dipped Galvanized Pipes, Hollow Sections and Pre -Galvanized Pipes and will further enhance Company's product offerings and 'II also result in improvements in overall margins on account of higher margins in that market. Being proximate to ports, these facilities would not only ensure savings in logistics cost, but would also enable higher exports.
We have already implemented substantial part of the project and commercial production has been started since. We are establishing this project as state of art, world class manufacturing line, completely synchronized with ancillary, balancing/finishing equipments with superior layout plans and as such we are expecting better capacity utilization at that plant as compared to the existing facilities and to the industry average also.

3. Joint Venture Business
The Jammu & Kashmir had initiated a drive of electrification in its vastly spread villages and other areas in the Year 2008 and invited private sector entities for participation. Your Company formed a joint venture with other constituents and presently the company's investment in the this Joint Venture stands at Rs. 34 millions. This Joint Venture has executed contracts worth more than Rs. 1400 millions till date since inception with success. Banking on this successful joint venture's track record, the Company is explonng and actively considering similar opportunities also.

4.Overseas Footprint

with an objective of exploring the business opportunities in international steel products market, and to take the strategic advantage of its location the company set up a wholly subsidiary company with an initial investment of Rs. 10 Million in Dubai M/s RST International Trading FZE. The company was registered with UAE Authorities in February 2015 and started operating in April -2015. The said company is doing business of trading in basic steel products, basic non-ferrous metal products, building construction material, pipe & fitting goods and industrial plant equipment & spare parts. Its operations are presently spread over UAE, Sudan, Ethiopia, India and is contemplating to extend to European Countries and otherAfrican countries.. We are ready for an exciting future and have identified our set of priorities: expand our capacities and strengthen supply chain capabilities; extend our brand presence across India with qualitative products -delivered in time -with an asset -light model; grow presence in international markets, venture into synergic products, platforms and opportunities. Before I conclude, I would like to thank all our team members for their unstinted support and commitment during the challenging period. Our people are the real champions behind our success, who have consistently embraced challenges and took the business forward. I would also like to thank my fellow Board members for their unconditional support. I extend my gratitude to our customers, suppliers and other stakeholders for their continued engagement.

We remain committed to stakeholder value creation and will live up to the trust reposed on us.

With warm regards,
Naresh Kumar Bansal
Chairman & Managing Director