KEMROCK INDUSTRIES AND EXPORTS LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT RENOWNED FRENCH POET VICTOR HUGO ONCE SAID, 'YOU CANNOT RESIST AN IDEA WHOSE TIME HAS COME.' TODAY, COMPOSITE IS SUCH AN IDEA. IN A WORLD WHERE SUSTAINED EFFORTS ARE BEING DIRECTED TOWARDS ENERGY CONSERVATION, RECYCLING AND ENVIRONMENT PROTECTION, THE USE OF COMPOSITES HAS BEEN RISING STEADILY. Renowned French Poet Victor Hugo once said, 'You cannot resist an idea whose time has come.' Today, composite is such an idea. In a world where sustained efforts are being directed towards energy conservation, recycling and environment protection, the use of composites has been rising steadily. Traditionally, composites usage was limited to defence and aerospace sectors due to lower supply and higher cost. However, in the wake of increasing prices of fuel and metals, the demand for composites has been gaining ground in diverse sectors such as infrastructure, automobiles, power, renewable energy and telecom. We at Kemrock believe it is the beginning of an eminent Composite Age. Sensing the opportunity, we have well in time laid out a robust foundation. The process has been time-consuming, but nonetheless rewarding. At each step of the way, we have fortified our processes, gained exhaustive knowledge, delivered demanding products and solutions, and surpassed the expectations of our clients in terms of quality, customisation and timelines. As a result, we have successfully established Kemrock Industries and Exports Limited as the largest integrated composites company in India and among the most sought after players in the advanced composites sector globally. The proof is simply in our achievements - be it in terms of orders won, in terms of sectors serviced or simply in terms of quality certifications achieved. In the past five years, we have grown at a CAGR of 58 per cent in terms of our revenues and 42 per cent in terms of our profits, making us among the fastest growing companies in the sector. However, we benchmark our success simply with the most prestigious distinction earned. We have successfully partnered India's quest to develop captive supply of aerospace grade advanced composites. In 2010 we commissioned India's first carbon fibre plant of commercial capacity; and a year on, I feel proud to state that we have achieved operational stability. This will enable us to replicate our learning into large capacity plant going forward. Having demonstrated our technological expertise we are now focusing on leveraging our abilities, certifications, geographical reach and intellectual capital to scale newer heights. Our readiness to lead and adapt to dynamic industry demands has already been proved in terms of new products introduced and new markets penetrated. Our strength is visible both in terms of our competitive strategies and our endurance based on sound commercial acumen. Moreover, our team comprising of highly experienced and motivated professionals provide us with insights that have helped us define our value proposition through our solutions. The future is all set to begin. I invite you into the new world of Kemrock, and demonstrate our vision to create a sustainable organisation for the future. Kalpesh Patel Chairman