1997 Chairman's Statement Dear Shareholders, It is my privilege and pleasure to present the Eleventh Annual Report and Audited Accounts of Nilkamal Plastics Limited. I am pleased to report that Nilkamal has once again posted good Financial Results for the year ended 31st March, 1997. In the year under review, your Company witnessed excellent growth in volumes, inspite of sluggish market conditions. Both Plants, Sinnar and Silvassa, operated at full capacity with a result, the Company crossed Rs. 100 crore mark. QUALITY - ISO 9002 CERTIFICATION THIS YEAR TO SILVASSA PLANT : You will recall that the Sinnar Plant of Nilkamal had already achieved ISO 9002 last year. This year, TUV BAYERN of Germany have Certified with ISO 9002 for qualtiy systems conforming to International Standards, to Silvassa Plant. ISO Standards ensure reliable products, manufactured with Quality management systems. GROWTH IN THE NEXT PHASE : Material handling Crates and Moulded Furniture have excellent demand potential. In the year under review, the Furniture division of your Company once again grew over 50 %. Two new world scale Petrochemical Plants are already operational in India. Nilkamal enjoys significant competitive advantage of high volumes at low cost. Further Investments of Rs. 33 Crores are planned for expansion at Silvassa and new facilities at Noida and Pondicherry. With locational advantages and benefits of new facilities, your Company is all set to exploit the potential of both the product lines of the Company. On completion of this phase, there will be two fold increase in growth in the company's products. Nilkamal views the future with more optimism and will continuously endeavour to increase the Shareholders value, year after year. Vamanrai V Parekh Chairman