Voith Paper Fabrics India Ltd.

Dear Members

It gives me great pleasure to share my thoughts with you at the end of another financial year. Your Company continues its journey of consistent growth and has delivered asatisfactory performance once again. It is a matter of personal satisfaction that yourcompany continues to be amongst the top contributors to the overall performance ofbusiness segment to which it belongs in Voith Group of Companies.

Also as a responsible corporate citizen your company has carried out some CorporateSocial Responsibility (CSR) activities covering areas such as promoting educationhealth-care & sanitation; environment protection; eradicating hunger etc. and weshall continue to direct our efforts in this direction in future also.

Further the strong demand of paper products has pushed the Indian paper industry to anew level and the industry appears to be fully geared up to meet the growing demands offuture despite several challenges like – outdated technology liquidity costpressures deeper penetration of electronic media etc. being faced by it. Gradually thefocus of paper industry in India is also shifting towards manufacturing more eco-friendlyproducts keeping in line with the need of the hour and the legislative framework.However we believe that the industry would be able to overcome the hindrances that itfaces and would fl ourish in future.

With the backing of Voith Group your company is strategically placed to provideinnovative solutions to the customers to meet their specifi c requirements enabling themin manufacturing paper in an eco-friendly manner. We believe that with our consistent andproven track record of serving the customers satisfactorily we would continue to enjoytheir patronage in future as well which would in turn help us perform better in comingyears.

I look forward to meet you at the 48^th Annual General Meeting of yourcompany.

With best wishes for a promising future together!

Warm regards

Martin Gustav Scherrer

Chairman