ANNUAL REPORT 1999 TRIDENT ALCO -CHEM LIMITED CHAIRMAN STATEMENT LETTER TO SHAREHOLDERS Dear Shareholder With the wind of liberalisation in 1991, I realised that in future 'size' is going to play a dominant role and smaller organisations shall be marginalised. We laid emphasis on growth and today Trident has made a respectable place for itself. In 1991 we had manufacturing facilities of 66,000 tpa Single Super Phosphate and 1,00,000 tpa Sulphuric Acid and today we have manufacturing facilities of 1,3200 tpa Single Super Phosphate, 1,00,000 tpa Sulphuric Acid, 27,918 tpa Writing and Printing Paper,12,647 tpa Chemical Recovery, 9 MW Power, 68,688 Spindles of Cotton Yarn,4,767 tpa Processing of Yarn, 3,032 tpa Terry Towels, 13,500 tpa Acetic Acid,3,000 tpa Ethyl Acetate, 4,500 tpa Acetic Anhydride, 2,100 tpa Butyl Acetate, 192 tpa CMIC Chloride and Information Technology services etc. In 1991 the turnover of the Group was Rs. 4,815 lacs and for the year 1999 it was Rs.32,163 lacs, with a projection of Rs. 55,589 lacs for the year 2000. After passing through a period of fast growth we are now on the path of consolidation. Abhishek Spinfab Corporation Limited - a Yarn Processing and Terry Towel manufacturing unit- has been amalgamated in Abhishek Industries Limited,leading to consolidation of operations and value addition from cotton to towels. For the year 2000 we have chosen four special emphasis areas i.e. Aggressive Marketing, Cost Reduction, Consistent Quality and Team Building. In addition to this, the job allocation of each member is being reviewed. We have given due priority to transparency, disclosure and improvement of corporate governance. Further,to improve corporate governance at the operational level, we have constituted an Executive Board of 6-7 senior members in each Unit to review the operations on monthly basis. I am happy to inform you that the toweling products have been well accepted in the export market and it has given wide exposure to the Group at the international level and the export of the Group has increased from Rs.146 lacs in 1991 to Rs. 6,662 lacs in 1999 i.e. 21% of the Group turnover. With our growth oriented philosophy and customer oriented approach, we have reached upto this stage where we are more confident and very optimistic about our future. In the near future we plan to focus on optimisation of capacities and Information Technology as well as to look out for strategic partners for global presence and global positioning with brand equity. After a long recessionary period the Indian economy is turning the point. With the improvement in economy, coupled with the results of our operational improvements, we are confident to do much better in the year 2000 and the shareholders can look for better prospects. Rajinder Gupta Date : March 15,2000.