The Directors would like to present the 69th Annual Report, together
 with the audited accounts for the financial year April 2006 to March
 2007.
 
 Financial Results
 
                                                     (Rs Thousand)
                                         April 2006 -     April 2005 -
                                         March 2007       March 2006
 
 Sales and Operating Revenues               876,001         729,664
 Of which exports                           102,727         101,457
 Operating profit (profit before 
 Depreciation, Interest and Tax)             10,142          19,595
 Interest                                     3,615           2,570
 Depreciation                                36,066          34,622
 Profit (Loss) before tax                  (29,539)        (17,597)
 Tax-   Current                              NIL              4,345
 -   Deferred                               (5,443)         (9,166)
 -   Fringe Benefit                        468              551
 Profit/(Loss) after tax                   (24,564)         (13,327)
 
 Sales and Operating Revenues stood at Rs.876,001 thousand (previous
 year Rs 729,664 thousand). Net Loss was Rs.24,564 thousand (previous
 year Net Loss Rs. 13,327 thousand).
 
 Dividend
 
 Since your Company has not made any profit, your Directors have not
 recommended any dividend.
 
 Corporate Developments
 
 Hindalco Industries Ltd., the holding company of Indal, holds
 approximately 97.06% of the share capital of the Company as on 31 March
 2007.
 
 Operational Review
 
 Your Company has consistently focussed on value-added products and made
 inroads into new markets. The major highlights:
 
 - With increased demand in the Pharma sector, production volumes grew
 at 2942 tonnes during FY07 as against 2451 tonnes in FY06, registering
 a growth of 20%.
 
 - Your Company widened its customer base by developing new customers in
 the export and domestic markets.
 
 - Overall delivery performance improved from 90% in 2005-06 to over
 94%.
 
 - Customer complaint settlement time reduced significantly from 65 days
 in 2005-06 to 50 days in 2006-07.
 
 Programmes on 5S - Housekeeping and Good Manufacturing Practice (GMP)
 were launched during the year to meet the stringent quality standards
 of pharma customers.
 
 Engineering Achievements
 
 Major Engineering activities completed include:
 
 - Installation of Bending System in the Rolling Mill with reversing and
 separating operations, thereby improving foil quality in terms of
 shape.
 
 - Complete revamp of Furnace-1 which has helped reduce energy
 consumption.
 
 - Installation of 13 Nos. Turbo Ventilators on the Poly Extruder
 machine to improve working conditions on the shop floor.
 
 - New Dry Air System for the Foil Rolling Mill which prevents moisture
 getting into the foil, and eliminates the possibility of any corrosion.
 
 - Procurement of New Chill Roll for the Poly Extruder
 
 - Installation of New DC Drive in the Paper Laminator machine.
 
 Corporate Governance
 
 Your Company re-affirms its commitment to the standards of corporate
 governance.
 
 Human Resource Development and Industrial Relations
 
 Your Company recognises the value of people as its most valuable asset
 and believes that your Companys employees are  central to its
 sustainable success.
 
 Industrial Relations have remained cordial throughout the year with
 good co-operation from all Operatives in improving the overall
 performance of the Plant.
 
 The plant has remained accident free over the last few years including
 2006-07. It has achieved 2.64 million accident free man-hours up to 31
 March 2007.
 
 Corporate Social Responsibility
 
 Your Company continues to strengthen its efforts towards sustainable
 development with new initiatives and consistent improvements in the
 economic, environmental and social aspects of the business.
 
 In line with the Social Vision of the Aditya Birla Group your Company
 has played an active role in various social activities for making a
 difference to the surrounding community.  ,
 
 Quality, Environment Protection and Pollution Control
 
 Your Company was presented the Appreciation Award from the National
 Safety Council for obtaining OHSAS: 18001 (1999) Certification.
 
 Surveillance audit for ISO: 9001 (2000), ISO 14001 (1996) and OHSAS :
 18001 Systems certifications were carried out successfully by the
 certification body BVQI.
 
 Investor Services
 
 In terms of the provisions of Section 205C of the Companies Act, 1956,
 your. Company transferred an amount of Rs. 21,27,613.00 to the Investor
 Education and Protection Fund, relating to amounts lying as unclaimed
 dividend for more than seven years from the due date.
 
 Directors
 
 Mr. A. K. Agarwala and Mr. A. L. Mudaliar retire by rotation from the
 Board in accordance with Article 117 of the Articles of Association of
 the Company and are eligible for re-appointment.
 
 Board of Directors
 
 Your Companys Board includes six Non-Executive Directors, of which,
 three Directors are independent directors. The Board met four times
 during the year.
 
 Audit Committee
 
 Your Company has an audit committee at the Board level. The Committee
 acts as a link between the management, the statutory auditors and the
 Board of Directors and oversees the financial reporting process. All
 members of the Committee are Non- Executive Directors. The Chairman is
 an independent director with sound financial and accounting knowledge.
 
 The details of the composition of the Committee are as follows :
 
 Name of Director               Nature of Director      Audit Committee 
                                                          Meetings
                                                       Held     Attended
 
 Mr. P. K. Choksey, Chairman  Independent Director      2          2
 Mr. A. K. Agarwala, Member   Non-executive Director    2          2
 Mr. A. L. Mudaliar, Member   Independent Director      2          1
 Mr. B. L. Shah, Member       Non-executive Director    2          2
 
 The Audit Committee met twice, on 28 April 2006 and 27 November 2006.
 The Committee recommended the approval and adoption of the annual
 accounts for the financial year 2005-06 and reviewed the Accounts for
 the seven months ended 31 October 2006.
 
 Auditors
 
 At the Annual General Meeting held on 11 July 2006, the members had
 appointed Messrs Price Waterhouse, Chartered Accountants, as auditors
 of your Company, at a remuneration as may be mutually agreed upon
 between the Board of Directors and the Auditors. Accordingly, it was
 agreed to pay Rs. 4,50,000/- to Messrs Price Waterhouse as auditors of
 the Company from the conclusion of the sixty-eighth Annual General
 Meeting to the conclusion of the next Annual General Meeting. Messrs
 Price Waterhouse, being eligible, offer themselves for re-appointment.
 
 Subsidiaries
 
 The Company has no subsidiary company.
 
 Appendices
 
 Energy Conservation and Foreign Exchange Earnings and Outgo, details
 are given in Appendix I.
 
 Information in terms of Section 217(2A) of the Companies Act, 1956 read
 with the Companies (Particulars of Employees) Rules, 1975-NIL
 
 Disclosures in compliance with Accounting Standard-18 on Related Party
 Disclosures form a part of this Annual Report.
 
 Directors Responsibility Statement
 
 The Audited Accounts containing Financial Statements for the financial
 year ended 31 March 2007 are in full conformity with the requirements
 of the Companies Act, 1956. Your Directors believe that the Financial
 Statements reflect fairly, the form and substance of transactions
 carried out during the year and reasonably present your Companys
 financial condition and results of operations.
 
 Your Directors further confirm that:
 
 (i) in the presentation of the annual accounts, applicable accounting
 standards have been followed;
 
 (ii) the accounting policies have been consistently applied and
 reasonable, prudent judgement and estimates are made so as to give a
 true and fair view of the state of affairs of your Company as at 31
 March 2007 and of the profit for the financial year ended 31 March
 2007;
 
 (iii) proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of your Company and for
 preventing and detecting frauds and other irregularities;
 
 (iv) the annual accounts of your Company have been prepared on a going
 concern basis.
 
 Appreciation
 
 Your Directors place on record their deep appreciation of the
 assistance and support provided by the financial institutions and banks
 associated with your Company.
 
 Your Directors recognise the commitment and contribution of your
 Companys employees.
 
 Your involvement as shareholders is greatly valued.
 
                                         For and on behalf of the Board
 
 Mumbai                                                Askaran Agarwala
 5 May 2007                                                    Chairman