A very Good Morning to you all,

Dear Fellow Shareowners,

It gives me great pleasure to welcome each of you to the 19 th Annual General Meeting of your Company. I also take this opportunity to personally welcome each of you to this meeting.

Before I dwell upon the performance of your Company, I would like to touch upon briefly the economic scenario during the year under consideration.

ECONOMIC SCENARIO:

Any strategy adopted by the Company has to take into account the economic environment in which it operates. The global macro economic environment appears healthy with a growth rate of around 5% during last 3 years and may moderate somewhat during 2008. Growth is expected to remain strong among emerging markets and developing countries. These trends have been driving the demand for capital goods.

The Indian economy continues in its robust growth trajectory, which began in 2003-04 and the buoyancy in the domestic economy makes us optimistic about our long-term prospects. The acceleration in growth is currently being given driven by the continued momentum in the services and manufacturing sectors. Interest rates have moved up and there has been an appreciation of Rupee. Government has been taking steps to control inflation. Despite these concerns, Indian economy is expected to maintain its growth momentum and poised to grow at around 8% over the next few years and both our consumer facing businesses and the industry/ infrastructure facing businesses are likely to do well, to take advantage of this great opportunity. We intend to grow faster than our competition, improve our brand position, bring down our operating costs, enhance our profitability and our team is poised to Zoom Ahead into the future.

Demand for steel increased during the year and the Steel consumption is projected to grow tremendously with continued growth in construction and infrastructure, besides improved outlook for the general engineering sector. During the current financial year, the sensex crossed 20,000 mark.

FOCUS ON VALUE CREATION:

In order to withstand the constantly changing business environment, it is not just sufficient to “grow” year after year but organizations must build mechanisms for sustaining and strengthening “profitable” growth. Moreover every organization should make the investors, employees, consumers and general public to develop confidence in the organization from which they are benefited.

As James Collins and Jerry Porras say in their book “Built to Last” that “Profitability is a necessary condition for existence and a means to more important ends, but it is not the end in itself for many of the visionary companies. Profit is like oxygen, food, water, and blood for the body; they are not the point of life, but without them, there is no life”, it is possible for successful organizations to look at various aspects of sustainability and operate accordingly.

OPERATIONAL PERFORMANCE:

Ladies and Gentlemen,

SUIL has achieved a turnover of Rs.9090.79 millions for the year ended 30 th June, 2007 and recorded a Net Profit of Rs.224.63 millions.

The steep increase in turnover in the year 2005-2006 and 2006-2007 is due to uptrend market conditions for steel products in which the company is trading.

FUTURE PLANS OF THE COMPANY

Your Company is contemplating demerger of its various divisions into separate companies in order to have better business focus and the Company’s team is examining on this matter.

ACKNOWLEDGMENTS:

I would like to acknowledge the efforts, support and valuable guidance of my colleagues on the Board.

I also take this opportunity to express my thanks to State and Central Government officials, banks and financial institutions for their on-going support and assistance. I would also like to put it on record that our dealers, ancillaries and vendors have played a tremendous role in our success by keeping pace with fast growth to meet the Company’s requirement in time. I would like to thank them for their continued support and cooperation.

Our employees at all levels have put in exemplary efforts to sustain Company’s good performance. I sincerely thank them for making all of us feel proud. Of course, we have drawn great strength and inspiration from your trust and support, for this I am personally grateful.

My speech would not be complete without thanking you – our shareholders – for the immense confidence you have reposed in the Company. I look forward to your support in the years to come. I once again thank you all for attending the 19 th Annual General Meeting of the Company.

Thank you one and all

Y.S. CHOWDARY
CHAIRMAN

Note: This does not purport to be the proceedings of the 19 th Annual General Meeting of the Company to be held on Monday, 31 st December, 2007.