Dear Fellow Stakeholders
 
 As I collate my thoughts to pen this note for the financial year, I
 recount the efforts we have made to position the company for
 sustainable growth in the years to come. From 2004-05 to 2010-11, our
 economy has enjoyed an unprecedented 8.5 per cent growth, despite the
 fact that this was a period of the global financial crisis. The crisis
 saw the growth dip to 6.8 percent in 2008-09 but the economy rebounded
 with a robust growth of 8.6 per cent in 2010-11. This comprised 5.4 per
 cent growth in the agricultural segment, 8.1 per cent in the industries
 segment and 9.6 per cent in the services segment.
 
 Securing a Strong Positioning
 
 In line with the economic pullback, the plastic industry continues to
 witness strong growth against the backdrop of an uptick in key end user
 industries such as Agriculture & Irrigation, Water Sanitation,
 Packaging Infrastructure. I am pleased to inform you that we have
 continued to build on the momentum of the previous year and we are
 implementing our growth strategy. Our Sales for the year stood at Rs
 21937.1 lakhs, an increase of 12.6%. This could have been more as per
 our expectations but for execution delays in the third quarter of the
 financial year, arising out of delays in in- house manufacturing of
 critical components. On account of marginal increase of about 1-2% in
 the input costs, profits from operations were subdued. However in the
 last quarter of the financial year, we have been well on our way in
 terms of completion of the order backlog. The net profits were up by
 20% to stand at Rs. 2581.6 lakhs. This was primarily on account of
 increase in other income and reduction in interest cost
 
 Fortifying our Industry Positioning
 
 This year we initiated various strategies which we believe will propel
 the company (KET) into a different league. KET acquired 15% stake in US
 based Gloucester Engineering Company Inc (GEC) which will help KET to
 get technology and expertise in the high-end Blown Film Plants which
 find application in packaging of milk, spices, meat, snacks, ready to
 eat food pouches, oil, etc and also for lamination, shrink and stretch
 wraps. The synergies are manifold and primarily, in terms of GEC''s
 innovative portfolio and technology along with KET''s indigenous
 know-how.  GEC''s machine lines enable our customers to optimize bag
 making, foam and sheet extrusion and extrusion coating.  Given KET''s
 strong brand presence in the Indian subcontinent, Middle East and
 Africa, the company will now be able to offer these solutions to its
 existing customers in these countries also and strengthen its brand.
 KET also benefits from GEC''s presence in the North & South American
 Markets and European regions as it will be able to bring these
 geographies under its fold. GEC will also benefit by becoming globally
 competitive on account of outsourcing of some of its components from
 KET.
 
 We have successfully bagged an order of a 5 layer Blown Film Line from
 a Kerala based company to produce barrier films, specifically, for
 edible oils in Kabra Gloucester. We feel that this is just the tip of
 the iceberg and this segment offers tremendous potential. The
 Government has mandated that Edible Oil be sold in packaged form only.
 While it is estimated that half of demand of edible oil which presently
 stands at 156 lakh MT, is sold loose.
 
 This underlines the enormous potential in the segment. Barrier films
 will thus be in great demand as they will meet the packaging standards
 which improve shelf life and hygiene of the product.. With the user
 industry witnessing tremendous demand for specialty packaging, KET is
 set to benefit from this trend in terms of its films segment.
 
 The Tubing segment is set to benefit from our association with Drip
 Research Technology Services (DRTS) under which we have set up a
 research laboratory focussed on drip irrigation. The company''s
 pioneering products in the pipe segment for irrigation primarily is
 expected to be a major growth driver for it in the future.
 
 Our association and collaboration with Battenfeld Cincinnati has
 yielded excellent results over the years. Out of total PVC consumption
 estimated at 1.87 MMTPA, nearly 71 % is being consumed to produce pipes
 and fittings.  The Government''s plan proposals to allocate huge funds
 to infrastructure and increased requirement of new homes for the
 growing population are the growth drivers for the segment. Besides
 manufacturing the machinery for pipes, KET also manufactures extruders
 for pipe coating. In the pipe segment, KET manufactures cPVC pipe
 plants in association with American Maplan. American Maplan are
 pioneers in the field of cPVC. These pipes find their application in
 chemical industry and in supply of hot and cold water applications.
 These pipes can resist very high temperature levels as compared to
 normal pipes.
 
 As the company continues to be a formidable industry player in the
 machinery segment for manufacturing of plastic pipes, profiles,
 compounds and films, the focus on developing and applying our deep
 knowledge of end-markets has given us an edge over the competition.
 Thus, on the domestic front, we expect the momentum to continue in
 terms of demand with rise in polymer consumption. At present, KET
 exports its machines to more than 60 countries. Our ongoing efforts to
 tap new geographies have seen a rewarding breakthrough. We have
 received an initial order from a company in Turkey for supply of more
 than 10 blown film plants at a time. As a country, it is highly modern
 and is exposed to the best technology in the world. KET has bagged this
 award after a thorough due diligence conducted by the customer
 including a factory visit. With this, we have established a footprint
 and hope to see similar positive results across other export markets
 too.
 
 Innovating to Grow
 
 Overall, we believe that with our strategic efforts on cost savings and
 new business development combined with the expected contribution of new
 accounts and projects during the year, we will see increasingly
 positive results for our company in the coming fiscal year. We are
 focused on maintaining the momentum of our growth portfolio and will
 continue to invest in and monetize our innovation pipeline. As we fix
 our eyes on a new frontier, we are building upon a rich legacy of
 innovation that is woven into the fabric of our company, even as we
 continue to believe deeply in the power of innovation to create, to
 build and to improve.
 
 A Vote of Thanks
 
 In the light of our strong performance, we have announced a dividend of
 35% (Rs 1.75 per share). We are proud to say that, we have maintained
 our dividend payout rate on increased capital after issue of bonus
 shares in the ratio of 1 : 1. This reflects the confidence in our
 ability to continue to profitably grow our revenues, increase cash flow
 from our businesses and deliver higher returns for shareholders on a
 sustainable basis. With the promise of striving hard to grow our
 business and financial numbers, I take this opportunity to thank board
 members for their support and guidance, KET employees, collaborators,
 associates, bankers and most importantly, you, our valuable
 shareholders for supporting our work and investing for a better future.
 
 S.V. Kabra
 
 Chairman & Managing Director