Dear Shareholders,

Over the years HSCL has carved a niche for itself in steel and infrastructure
development in India. Our journey so far has been full of challenges which we have
overcome with the spirit to excel. The road ahead promises to bring bigger challenges
that will test our expertise and commitment to be the best. I am pleased to report that
2009-10 has been another successful year for HSCL. The Company's turnover showed
an uptrend. It records Rs 800.35 crores an increase of 11% or Rs 79.09 crores compared
to 2008-09.

As it is evident the overall industrial scenario of the country had been upbeat and
encouraging during 2009-10. The infrastructure sector is poised to grow at a
conservative 12% with the government sanctioning 47,000 kms of highways to be built
during the 11th Plan period. New projects under capacity expansion programmes of
PSU Steel Plants as well as in the diversified fields of Infrastructure Sector also have
helped us increase our revenues by a significant proportion. HSCL has launched projects
across sectors like steel, power, railways, disaster management and infrastructure
development with a pan India presence and the trend in the recent past has favoured
our capability to create newer and better infrastructure for our country by contributing
substantially and significantly in the National Growth.
HSCL is also moving ahead with greater vigour and strength as we streamline our
available manpower for increasing business opportunities. The company is in the process
of infusing new blood and minds to meet everyday challenges and deliver when it comes
to the crunch. Those dedicated efforts have won the company a ‘Certificate of
Excellence’ for ‘Construction of Afflux Bundh and Breach Closure at Kusaha (Nepal)’
in connection with Koshi Disaster Management project. The project was of immense
importance for the 30 Lac marooned inhabitants of the vast areas of Supaul,
Madhepura and Saharsha district in Bihar inundated on the banks of river Koshi
during 2008. The Company has also won the prestigious ‘Certificate of Recognition’
awarded by Essar Steel in association with E18 and CNBC TV18 for its contribution
to building India’s Infrastructure.

The Company is committed to conduct business with the highest ethical standards for
the growth and prosperity of all stakeholders on a sustainable basis. The Company
strives to achieve all its goals through systematic approach and sound business decisions
and prudent financial management at all levels of the organisation.

I would like to take this opportunity to welcome Sri S.B.Mishra to the board of the
company as an Independent Director. I am sure with the rich experience and expertise
he brings in from long years at the helm of bureaucracy in the past will strengthen the
board and drive the company towards bigger achievements in the future.

In the days to come, I envisage large investments in Steel and Infrastructure Sectors
including major investments by Government and Government organizations. Apart
from creating new opportunities for the company, these investments will also help the
company to achieve an enviable stature in the industry and regain its lost glory and
position that it had engaged in past.

The Company has always actively considered its participation in Corporate Social
Responsibility and planned to carry out more of such activities for creating smiles
for financially weaker communities towards education and setting up basic
infrastructure. A wholesome approach is being made to create novel infrastructure
under its CSR ambit.

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The guidelines of Corporate Governance has been complied in the best possible way and
with the induction of independent directors, the company plans to implement the same
in totality.

The Company during this period has reached to various clienteles, especially in the
infrastructure sector, with its presence felt and recognized at all levels. The Company in
a short span has emerged as a buoyant, vibrant Company reminding all and sundry of
its glorious past and competency in Civil and Mechanical Engineering field.

I am grateful to my fellow Directors on the Board for their untiring and committed
support. I would also like to extend a special thanks to each and every stakeholder of
HSCL, whose trust and confidence have been motivating us in all our endeavours. I
thank all our customers and business associates and employees for their unstinted
loyalty. A special word of thanks to Dr. Dalip Singh, Joint Secretary, Steel ministry,
for his encouragements and timely and prudent advices in achieving the milestones.
Above all, I thank the Government of India, particularly the Ministry of Steel for
rendering Administrative support and vision in guiding the company.

I promise that we will leave no stone unturned in achieving perfection in all our
endeavours and will strive to make the company a name to reckon with in the Steel and
Infrastructure sectors and emerge as a leading CPSU.