1995 KUNSTSTOFFE INDUSTRIES LIMITED CHAIRMANS' STATEMENT I have great pleasure in welcoming you to this the 9th Annual General Meeting of Kunststoffe Industries Ltd. You may recollect that at the EGM of your company held on 22nd November '94 and subsequently now in the Directors' report, I have referred to the success that the company has met with in its drive to increase the awareness of the unique qualities of your company's piping. We have met with potential customers, consultants and today ther is increasing acceptance of the advantages of spirally wound HDPE pipes over all competing materials in diameters in excess of 300 mm. Presently the prices of all basic plastics like PVC, polyethylene and polypropylene are at abnormally high levels. When they return to normality as they may after the next six months or so, the company's products will have even greater competitive advantages. As you will have observed from the annual accounts and Directors reports the company's turnover grew from Rs. 2.1 crores in 1993 to Rs. 5.7 crores in 1994 and profits from a virtual breakeven to Rs. 1.2 crores. This year, based on current orders, the turnover is expected to exceed Rs. 15 crores with commensurate growth in profits but only small increases in fixed costs. The products of the Company have been well accepted by the market in the fields of water supply, sewerage, effluent disposal and also for sea water intake system for aqua-culture projects that are coming up in various parts of the country. The acceptability of the pipes for such specialised applications is encouraging and establishes the superiority of these pipes over conventional pipes. During the year your Company received full technical back-up and support from collaborators M/s. BAUKU of Germany. Their support, constant feed- back and timely advice on various technical aspects have helped the Company to participate in large tenders for supply and laying of pipes. Thank you for listening to me patiently. V.G. RAJADHYAKSHA CHAIRMAN Dated : June 22, 1995.