MIRA INFORM REPORT

Report Date :

26^th October, 2006

IDENTIFICATION DETAILS

Name :	CLARIANT CHEMICALS INDIA LIMITED
Formerly Known As :	COLOUR CHEM LIMITED
Registered Office :	Ravindra Annexe, 194, Churchgate Reclamation, Mumbai – 400 020, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	27.12.1956
Com. Reg. No.:	11-10806
CIN No.: [Company Identification No.]	L24110MH1956PLC010806
TAN No.: (Tax Deduction & Collection Account No.)	MUMC00339D
Legal Form :	A Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of chemicals like Acetoacet Monomethylamide 70%, Hostaperm Green GNX and Acetoacet Diethyl Amide.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 13250000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Available information indicates high financial responsibility of the company. Financial position is good. The company’s payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	Ravindra Annexe, 194, Churchgate Reclamation, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91–22–2202 2161 /2283 0882
Fax No.:	91–22–2202 9781
E-Mail :	kavas.bharucha@clariant.com
Website :	http://www.clariant.com http://www.colour-chem.com
Factory 1 :	Mumbai-Agra Road, Balkum Village, Thane - 400 608, Maharashtra, India
Tel. No.:	91-22-25410999/25411834/25443402/25443409
Factory 2 :	113/114 MIDC Industrial Estate, A. V. P. O. Dhatav, Taluka-Roha, District - Raigad - 402 116, Maharashtra, India
Factory 3 :	Kolshet Road, Thane – 400 607, Maharashtra, India
Factory 4 :	Kudikadu, P O Cuddalore – 607 005, India
Factory 5 :	Singhadivakkam Village, Kanchipuram – 631 561, India
Branches :	H. K. House, 2^nd Floor, Ashram Road, Ahmedabad – 380 009, Gujarat, India

DIRECTORS

Name :	Mr. H Meier
Designation :	Vice Chairman and Managing Director
Name :	Mr. P. Lindner
Designation :	Chairman
Date of Appointment :	1^st January 2005
Name :	Mr. R. A. Shah
Designation :	Chairman
Date of Appointment :	1^st January 2005
Name :	Mr. K. J. Bharucha
Designation :	Vice – Chairman & Managing Director
Date of Appointment :	1^st January 2005
Name :	Mr. B S Mehta
Designation :	Director
Name :	Mr. Diwan A Nanda
Designation :	Director
Name :	Dr. A Walde
Designation :	Director
Name :	Mr. W Mohr
Designation :	Director

KEY EXECUTIVES

MANAGEMENT COMMITTEE :
Name :	Dr. G. G. Patkar
Designation :	Vice- President
Date of Appointment :	1^st January 2005
Name :	Mr. H Meier
Designation :	Chairman
Name :	Mr. A K Prasad
Designation :	Director
Name :	Mr. S S Patil
Designation :	Director
Name :	Dr. S. Siddhan
Designation :	Vice- President
Date of Appointment :	1^st January 2005
Name :	Mr. Sunil K. Nayak
Designation :	Chief Financial Officer and Company Secretary
Date of Appointment :	1^st January 2005
AUDIT COMMITTEE :
Name :	Mr. R A Shah
Designation :	Chairman
Name :	Mr. Diwan A Nanda
Designation :	Director
Name :	Mr. K J Bharucha
Designation :	Director

MAJOR SHAREHOLDERS

As on 30^th September, 2006

Names of Shareholders	No. of Shares	Percentage of Holding
A] PROMOTERS HOLDINGS
1. Promoters
(a) Foreign Promoters Ebito Chemiebeiligungen AG Clariant International Limited BTP Limited, UK	8167080 6075000 2660000	30.63 22.78 9.97
Sub – Total	16902080	63.40
B] INSTITUTIONAL INVESTORS
Mutual Funds Banks, Financial Institutions General Insurance Corporation of India & its subsidiaries Nationalised Banks FIIs	2810837 982772 12820 5716	10.54 3.69 0.05 0.02
Sub – Total	3812145	14.30
C] OTHERS
(a) Domestic Companies (b) Indian Public (c) NRIs / OCBs	444797 5420309 81414	1.67 20.33 0.30
Sub – Total	5946520	22.30
D] NON-PROMOTERS HOLDING
Sub – Total (B+C)	9758665	36.60
GRAND TOTAL (A+D)	26660745	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of chemicals like Acetoacet Monomethylamide 70%, Hostaperm Green GNX and Acetoacet Diethyl Amide.
Products :	Item Code No. - Product Description 292410.19- Acetoacet Monomethylamide 70% 320417.51- Hostaperm Green GNX 291590.00- Acetoacetic Methyl Ester

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Pigment dyestuffs and their dispersions	M. Tonnes	9870	7708
Synthetic organic dyestuffs		1337	1671
Synthetic resins, binder materials and auxiliaries	M. Tonnes	39410	38035
Intermediates (including catalysts) for dyes, pesticides, Pharmaceuticals, etc.	M. Tonnes	19530	8366
Master Batches	M. Tonnes	1060	536

GENERAL INFORMATION

No. of Employees :

Around 1490

Bankers :

v State Bank of India

v Citibank N A

v Deutsche Bank

v The Honkong & Shanghai Banking Corporation

v HDFC Bank Limited

v Bank of America N.T. & S.A.

v Standard Chartered Bank

Facilities :

Secured Loans

(Rs. in millions)

	2006	2005
From Banks
Short Terms Loans:	347.285	189.427
Rs. 343.200 millions secured by hypothecation of present and future stock-in-trade and spare parts, loose tools, book debts, outstanding monies, receivables, claims, bills, right to or in movable properties and movable assets, etc. Rs. 4.085 millions secured by way of first charge on inventories and book debts, both present and future and by second charge on other movable and immovable properties, both present and future.
Term Loan:	12.500	0.000
Total	359.785	189.427

Unsecured Loans

(Rs. in millions)

	2006	2005
Privately placed Non-Convertible Debentures:
9% Non-Convertible Debentures at par on 12.04.2006	100.000	0.000
5.63% Non-Convertible Debentures redeemable at par on 19.04.2005	0.000	150.000
Other Loans:
From Banks	47.500	0.000
From Others	52.082	0.000
Total	199.582	150.000

Banking Relations :	Good
Auditors :	A. F. Ferguson & Company Chartered Accountants Internal Auditors: Mahajan and Aibara Chartered Accountants
Sister concerns:	Ø Clariant (Bangladesh) Limited, Bangladesh Ø Fuchs do Brasil S.A., Brazil Ø SF-Chem AG, Switzerland Ø Chemotextil AG, Switzerlang Ø Clariant Guangzhou Masterbatch Limited, China Ø Tianjin Hua Shi Chemicals, China Ø Clariant CR s.r.o. Czech Republic Ø Abietta Chemie GmbH, Gersthofen, Germany Ø InfraServ GmbH & Company Genrsthofen, Germany Ø InfraServ GmbH & Company Hochst KG, Germany Ø InfraServ GmbH & Company Knapsack KG, Germany Ø InfraServ GmbH & Company Ruhrchemie KG, Germnay Ø InfraServ GmbH & Company Wiesbaden KG, Germany Ø Diogenes Achte Vermogens – Verwaltungs GmbH, Germany Ø Gesellschaft fur Entsorgung von Sondermull in Bayern, Germany Ø Clariant Consulting GmbH, Frankfurt, Germany Ø Clariant Chimie Company (p.j.s.), Iran Ø Clariant Tokuyama Limited, Japan Ø Dia Fine K. K., Japan Ø Kong Shin Jin Heung Company Limited, South Korea Ø Clariant Industrias Quimicas S.A. de C.V., Mexico Ø Drycolor Pacific (Malaysia) Sdn Bhd, Malaysia Ø Shapadu Tros (Malaysia) Sdn Bhd, Malaysia Ø Clariant (Nigeria) Limited, Nigeria Ø Omnexus N.V., Netherland Ø Borvi AS, Norway Ø Chemcolour Industries (NZ) Limited, New Zealand Ø Hoechst Marion Roussel Limited Ø Haycolour Limited.
Subsidiary	Ø DyStar India Limited Ø Vanavil Dyes & Chemicals Limited Ø Kundalika Investments Limited Ø Clariant (Argentina) S. A., Argentina Ø Anilsud, Argentina (HOECHST do Brazil SA, Succursal Argentina) Ø Clariant (Oesterreich) GmbH, Austria Ø Clariant Australia) pty. Limited, Australia Ø Clariant Benelux S. A., Belgium Ø Clariant Reinsurance Limited, Bermuda Ø Clariant S.A., Brazil Ø Clariant (Canada) Inc., Canada Ø Clariant AG, Switzerland Ø Clariant (Schweiz) AG, Switzerland Ø Clariant Consulting AG, Switzerland Ø Clariant Finanz AG, Switzerland Ø Clariant Colorquimica (Chile) Limited, Chile Ø Clariant (Tianjin) Limited, China Ø Clariant Pigments (Tianjin) Limited, China Ø Clariant (Colombia) S. A., Colombia Ø Clariant Verwaltungs GmbH, Germany Ø Clariant GmbH, Germany Ø Clariant (Deutschland) GmbH, Germany Ø Disper S.A., Spain Ø Disper (Finland) Oy, Finland Ø Clariant (Finland) Oy, Finland
Parent company:	EBITO Chemiebeteiligungen AG
Memberships:	Confederation of Indian Industry.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/-	Rs. 300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11650000	Equity Shares	Rs. 10 /-	Rs. 116.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital	116.500	116.500	116.500
2] Reserves & Surplus	3054.390	1605.744	1529.580
3] Share Capital Suspense Account	150.107	0.000	0.000
NETWORTH	3320.997	1722.244	1646.080
LOAN FUNDS
1] Secured Loans	359.785	189.427	55.688
2] Unsecured Loans	199.582	150.000	54.749
TOTAL BORROWING	559.367	339.427	110.437
DEFERRED TAX LIABILITIES	52.564	0.000	0.000
TOTAL	3932.928	2061.671	1756.517
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	1549.758	796.349	691.675
Capital work-in-progress	51.882	40.878	46.012
INVESTMENTS	1132.619	464.527	204.527
DEFERREX TAX ASSETS	0.000	16.371	72.755
CURRENT ASSETS, LOANS & ADVANCES
Inventories	1252.837	538.551	491.149
Sundry Debtors	1451.450	699.184	739.972
Cash & Bank Balances	138.896	36.781	18.007
Loans & Advances	744.890	617.059	667.942
Total Current Assets	3588.073	1891.575	1917.070
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	1716.436	944.009	1045.572
Provisions	672.968	204.020	129.950
Total Current Liabilities	2389.404	1148.029	1175.522
Net Current Assets	1198.669	743.548	741.548
TOTAL	3932.928	2061.571	1756.517

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	8791.843	3949.376	4693.387
Profit/(Loss) Before Tax	648.385	357.815	249.516
Provision for Taxation	244.467	201.948	(86.187)
Profit/(Loss) After Tax	403.918	155.867	335.703
Export Value	2276.629	945.297	1137.305
Import Value	1463.038	503.317	636.022
Total Expenditure	8143.478	3591.561	3500.824

QUARTERLY

PARTICULARS	30.06.2006 (1^st Qtr.)
Sales Turnover	2294.400
Other Income	70.200
Total Income	2364.600
Total Expenditure	2082.900
Operating Profit	281.700
Interest	(1.100)
Gross Profit	282.800
Depreciation	53.000
Tax	77.900
Reported PAT	151.900

200606 Quarter 1 :-- Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (78.20) million Consumption of Raw / Packing Materials Rs 1060.60 million Purhase of finished goods Rs 469.30 million Power and Fuel Rs 116.90 million Personnel Cost Rs 188.70 million Other Expenditure Rs 325.60 million.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.18	0.13	0.11
Long Term Debt -Equity Ratio	0.17	0.05	0.07
Current Ratio	1.48	1.55	1.59
TURNOVER RATIOS
Fixed Assets	3.16	2.08	2.18
Inventory	10.36	7.98	8.17
Debtors	8.63	5.74	5.59
Interest Cover Ratio	14.37	10.70	10.90
Operating Profit Margin (%)	10.15	10.65	10.47
Profit Before Interest and Tax Margin (%)	7.51	7.86	7.35
Cash Profit Margin (%)	6.99	6.59	11.59
Adjusted Net Profit Margin (%)	4.35	3.79	8.47
Return On Capital Employed (%)	23.46	16.92	18.18
Return on Net Worth (%)	16.51	9.26	23.35

STOCK PRICES

Face Value	Rs.10/-
High	Rs.309.90
Low	Rs.304.00

LOCAL AGENCY FURTHER INFORMATION

History

Colour-Chem (CCL) was incorporated in 1956 with technical and financial collaboration of Hoechst and Bayer AG and three Indian business groups -- the Ruias, the Khataus and Ghias.  

In October 2000, 50.1% equity stake of the company held by Hoechest AG, Germany was transferred to EBITO Chemiebeteiligungen AG, Switzerland, a subsidiary of Clariant International AG, Switzerland and subsequently EBITO acquired 20% stake of the company in 2005. Now EBITO holds 70.1% Equity stake of the company. 

Subsequently to the merger of the Speciality Chemicals Division of Hoechst AG with Clariant AG in 1997, CCL has become a part of the global Clariant group. CCL has subsidiaries, Vanavil Dyes & Chemicals in Cuddalore, Tamil Nadu and Kundalika Investments Ltd. 

CCL is a leading manufacturer and merchant exporter of pigments, fine chemicals and leather chemicals and currently enjoys Trading House Status. The business structure of the Company now comprises of the following divisions :Life Science and Electronic Chemicals, Pigments and Additives, Textile, Leather and Paper Chemicals, Cellulose Ethers & Polymerisates, Functional Chemicals. 

During 2000-2001, the Reserve Bank of India approved the disinvestment of Colour-Chem's holding of 24,000 Equity Shares of face value of Rs. 100/- each in Haycolour Limited, Sri Lanka to M/s. Hayleys Textile Services Limited, Sri Lanka at par value. It has also introduced several new products both in leather chemicals and textile chemicals. As a part of acquiring various new technologies, the company has acquired the technology for manufacture of diketen and the company is a dominant player in these industrial segments. 

In 2005, the company decided to amalgamate the companies namely, Clariant (India) Ltd, BTP India Pvt Ltd, Vanavil Dyes and Chemicals Ltd and Kundalika Investments Ltd into the company, with the swap ratio of 1 equity share of CCL for 1 equity share of Clariant India Ltd, 1 equity share of CCL for 5 equity shares of BTP India Pvt Ltd and 1 equity share of CCL for 5 equity shares of Vanavil Dyes and Chemicals Ltd. 

During 2004-2005, the company expanded its installed capacity of Synthetic resins, binder materials and auxillaries by 3000 MT. With this expansion, the installed capacity of Synthetic resins, binder materials and auxillaries increased to 19150 MT.

Year	Description
1959-60	Public Issue of 35000 equity shares of the face value of Rs.100/- each
1961-62	Rights Issue of Rs. 2.500 millions to the shareholders to finance a Phthalocyanine project.
1964-65	Plant for the manufacture of Phthalocyanine Blue commissioned
	Additional land of 10 acres adjacent to the factory was purchased
1967-68	Production of Phthalocyanine Green and Phthalogen Brilliant Blue IF3G commenced.
1970-71	The company’s registered office shifted to Ravindra Annexe
	Erection of Intermediates Plant was completed and production commenced
1973-74	Issue of bonus shares in the ratio 1:2
	R&D Centre inaugurated by the Hon’ble Minister for Industrial Development Science and Technology, Mr. C. Subramaniam
1974-75	R&D Centre recognised by the Department of Science and Technology, Government of India
1976-77	Issue of bonus shares in the ratio of 3:8
1978-79	Company’s factory at Roha commissioned
	Production of Organic Pigments and 3.3” DCB at Roha factory commenced
1979-80	Issue of bonus shares in the ratio of 2:5
	ETP commissioned at Thane
	Joint Venture company in Sri Lanka – Haycolour Limited –was incorporated.
1981-82	The company became a joint sector co-promoter of Vanavil Dyes and Chemicals Limited [VDCL] with a stake of 25% in its equity capital
1986-87	An ‘On-site Disaster Plan’ was introduced at Thane and Roha
	Secondary [biological] Effluent Treatment Plant was set up.
	Installation of an incinerator for disposal of liquid and solid chemical sludges was completed at Roha
1988-89	Hoechst AG acquired 16.4% equity holding of Bayer AG
	The company acquired TIDCO’s shares in VDCL bringing its stake in VDCL to 51%.
	Technical Consultancy Agreement with Bayer AG was terminated effective 31^st July, 1989.
	Agreement with wholesale selling organisations was terminated and the company’s own Marketing Division was set up.
1989-90	Hoechst AG formally became the sole technical/financial collaborator on 22^nd February, 1990.
	Regional Marketing Offices were set up at Ahmedabad, Kolkata, Delhi and Chennai.
	Technical Service Centre for leather was set up at Kanpur.
1991-92	The modernised Diketene Plant was commissioned on 29^th November, 1991.
	Hoechst AG increased its equity holding to 40%.
1992-93	Shareholders approved preferential allotment of shares to Hoechst AG and a Rights Equity Issue in the ratio of 1:5.
	A preferential allotment of 168800 equity shares to Hoechst AG at a premium of Rs.600/- per share was completed in December 1992 increasing its holding from 40% to 50.52%.
	The modernised Phthalocyanine Green Plant and upgraded ETP facilities at Thane works has commissioned in March 1993.
1993-94	During May 1993, a Rights Equity Shares Issue in the ratio of 1:5 to shareholders and Preferential Equity Issue to employees at a premium of Rs. 500/- per share was made
	On allotment of these shares in July 1993, Hoechst AG’s shareholding declined marginally to 50.1%.
1995-96	Textile Dyes business was exited. Toll Manufacture of reactive dyes, disperse dyes and pigment emulsion on behalf of DyStar India commenced on 1^st September, 1997.
1998-99	Mowicollâ, the company’s first consumer product was launched in October 1998.
	The company’ first Voluntary Retirement Scheme [VRS] was introduced in two phases and resulted in the separation of 443 employees.
1999-2000	The company’s shares were inducted into the National Securities Depository Limited as well as Central Depositary Services [India] Limited, to enable shareholders to hold and trade the securities in electronic form, if they so desire.
	The company launched its website – www.colour-chem.com on 8^th March 2000. The website goes beyond presenting a corporate brochure to being a central repository of useful information about the company for those who are interested in ‘doing business’ with the company.
2000-01	The Reserve Bank of India approved the disinvestments of the company’s holding of 24000 Equity Shares of face value of Rs. 100/- each in Haycolour Limited, Sri Lanka to ‘Hayleys Textile Services Limited’, Sri Lanka at par value.
	The company was conferred the Golden Trading House Certificate in recoginition of its long-standing contribution to exports.
	The face value of the equity shares of the company was subdivided from Rs. 100/- each to Rs. 10/- each effective 25^th October, 2000.
2001-02	The company successfully went with the upgrade of its SAP ERP systems to SAP R/3 4.6C – one of the first complete implementation sites in the chemicals manufacturing sector.

The company’s product ranges are as follows:

Ø Synthetic Organic Dyestuffs

Ø Pigments

Ø Synthetic Resins

Ø Binder Material

Ø Auxiliaries for Textile

Ø Leather

Ø Intermediates for Dyes

Ø Agrochemicals

Ø Pharmaceuticals

The company has four business divisions. Its goal is to achieve and maintain a leadership position in all the markets as under :

Ø Pigments and Additives

Ø Life Science & Electronic Chemicals

Ø Textile, Leather & Paper Chemicals

Ø Functional Chemicals

Fixed Assets:

v Freehold Land

v Leasehold Land

v Building

v Plant & Machinery

v Vehicles

v Furniture & Fixture

v Equipments

v Office Appliances

Acquisition of further shares by EBITO

During the year EBITO Chemiebeteiligungen AG, promoter of the company acquired 20% of the Equity Shares Capital under an open offer, made as per the provision of the SEBI’s Substantial Acquisition of Shares and Takeover Regulation, 1997. As a consequences, the promoter holding in the company increased to 70.10% from 50.10%.

Merger of the Clariant Group of Companies in India

The Clariant Group to which the company belongs was operating through five legal entities in India. The group had undertaken an exercise to evaluate the rationale for consolidation of activities in order to simplify processes and add significant value to the business. Accordingly, the company had sought the approval of the members and the High Courts of Bombay and Madras, pursuant to which Clariant (India) Limited (CIL), Vanavil Dyes and Chemicals Limited (VDCL), BTP India Private Limited (BTP) and Kundalika Investments Limited (KIL) merged with the company from April 1, 2005, being the appointed date.

Change of Name

As per the scheme of amalgamation approved by the members and the High Court of Bombay, the name of the company has been changed from Colour-Chem Limited to Clariant Chemicals (India) Limited, so as to more accurately reflect its affiliation with the Clariant Group and brand. The Company’s products are also sold under the name ‘Clariant’ which has been registered as a Trade Mark world wide.

Dividend

The Board of Directors is pleased to recommend for the approval of shareholders, a dividend of Rs.11/- per equity share of the face value of Rs.10/- each for the financial year ended March 31, 2006 (previous year Rs.6/- per share). The dividend will be payable to all members including those members who have been issued shares as per the Scheme of Amalgamation. 

This would involve a cash outflow of Rs. 334.400 millions including tax on dividend of Rs.41.100 millions against the previous year outflow of Rs. 79.700 millions including tax on dividend of Rs.9.800 millions. The dividend, if approved, will be paid to the shareholders whose names appear on the Register of Members, determined with reference to the book closure from July 13, 2006 to July 27, 2006. 

Intermediates and Colours

The company deals in pigment dyestuffs and their dispersion, intermediates for dyes, pesticides and pharmaceuticals. The company is a leader in organic pigments and serves the need of paints, printing inks, plastics, runner, detergents, cosmetics and other industries. The company is a pre-eminent player in the diketene based intermediates business in India and has the capacity to manufacture large volumes of this important building block in a wide range of derivatives forms.

The total sales under this segment for the year is Rs.3510.600 millions and contributes 41% of the total sales of the Company. The export sales have contributed 51% of the overall sales. Pigments dyestuffs and intermediates for dyes constitute 91% of the total sales under this segment.

Dyes and Specialty Chemicals

Clothing, colour, fashion, durability and comfort, all these are everyday terms. Clariant specialty chemicals make a decisive contribution to enhance the performance, look and feel of the final products of its customers and also add protection and strength to such products. 

The company offers a varied range of specialty chemicals products to textiles, leather, paper, detergents and cleaning and personal care products. 

The total sales under this segment for the year are Rs.4831.500 millions contributing 57% in the total sales of the company. Domestic sales contributed 90% of the total sales of this segment during the current financial year. 

Masterbatches

Masterbatches segment of the company deals in colour and additive concentrates and special mixtures of these compounds for use by automotive, textile and technical fibers, electronic and electrical devices, home appliances, toys, medical devices, sporting goods and packaging. 

The segment has recorded sales of Rs.168.500 millions and contributed 2% in the overall sales of the total company. 

In the small sized domestic market of masterbatches, white and black masterbatches are consumed in large quantities as compared to newly developed fashion colors sold in global markets. The company is improving its strength in color matching to cater to the requirements of its customers and deliver custom made colors by offering premium grade masterbatches for quality conscious customers. The company's focus and strength in the development of fiber masterbatches has shown encouraging results and customer spread in this segment is increasing. 

Outlook

India is fast-emerging as the sourcing hub for specialty chemicals for industries such as textile, rubber, paper and paints. As per a McKinsey report, India's specialty chemicals exports, which were around $ 2 bn in 2002-2003, are expected to reach the $ 12-15 bn mark by 2015. 

While the global chemical Industry is focused on consolidation, cost reduction, research and development and environmental compliances, the key concerns of the Indian chemical industry remain the availability of infrastructure, specifically power supply, reforms in labour laws, input costs, Free Trade Agreement and uneconomic plant capacities. The Indian chemical industry needs to invest in new capacities, debottleneck and expand existing capacities and globalize its activities. 

On the domestic front, with the reduction in tariffs, Indian companies with strong systems and organised operations will benefit from the liberal environment. Companies with competitive advantages, such as competence in high valueadded chemicals which conform with international standards, will be able to exploit the growth opportunities and establish a dominant presence in both international and domestic markets. 

The Indian pharmaceuticals industry accounts for nearly 8.5% of the world's drug requirements in terms of volume, and the country ranks amongst the top 15 drug manufacturing countries in the world. Since, India is a signatory to the GATT accord, (and the TRIPs agreement therein) patent protection will be provided under the treaty obligations. It is therefore expected that the country will emerge as one of the largest and cheapest producers of pharmaceuticals in the world. 

With the liberalization of policies in retailing, the higher consumption pattern among customers and huge infrastructure development in the pipeline, the outlook for the specialty chemical industry for the coming year continues to be encouraging. 

Operational Performance (2004-2005)

The sales turnover for the year decreased by 3.02% to fls. 3729.921 Millions as compared to Rs. 3846.047 Millions in the previous year mainly due to lower trading sales. Operating margins increased to 9.77% from 5.92% in the previous year mainly due to gains from the Company's ongoing internal restructuring and downsizing initiatives. Exports during the year decreased marginally to Rs. 954.297 Millions as against Rs. 1039.266 Millions in the previous year. An optimum utilisation of capital has ensured lower cost of capital, and an improved return on investment. The Company's financial strength - short term as well as long term is reflected in its strong Current Ratio and its Debt Equity Ratio.

AS PER WEBSITE

Company was incorporated in 1956 as an import substitution project for manufacture of pigment emulsions. The initial promoters were Mr. R.R. Ruia, Mr. D.M. Khatau, Mr. B.M. Ghia and Mr. C. Rai.

Committed to technological excellence, the Company entered into technical and financial collaboration with two of the most reputed chemical manufacturers in the world - Bayer AG and Hoechst AG of Germany.

In 1990, Bayer AG disinvested and Hoechst AG progressively increased its equity stake to 50.1% to make Colour-Chem its subsidiary representing its Specialty Chemicals Division in India.

In 1997, with the combining of Hoechst AG’s Specialty Chemicals Division with that of Clariant AG, Colour-Chem has become a member of the Clariant global family - the world’s leading specialty chemicals company.

Textile, Leather and Paper Chemical

Businesses:
Textile
Leather

Pigments and Additives

Businesses:
Coating Business
Plastic Business
Printing Business
Specialties Business

Functional Chemicals

Businesses:
Detergents
Performance Chemicals
Process Chemicals

Life Science Chemicals

Businesses:
Specialty Fine Chemicals
Pharmaceutical Fine Chemicals

Distribution of Shareholding of Colour-Chem Limited as on 31st March 2005

Colour-Chem’s Operting Profit Up 43%

-declares 60%dividend

Mumbai, May 26, 2005: Colour-chem’s operatingresults for the year ended 31^st March 2005have shown a steep rise of 43%, with Profit before tax amounting to INR35.79 crores (previous year INR 24.95 corres). this significantly imporved operating performance directly reflects the fains from the co,pany ongoing internal retructuring and downsixing initiatives. It was achieved aon anet sales base that was marginally lower at INR 372.99 crores (previous year INR 384.60 crores) on account of lower traidng sales.

the company Net Profit for the year ended 31^st March 2005 stood at INR 15.59 crores. (Previous Year INR 33.57 crores). The net profit for th two years is not comparable mainly because there is a deferred tax previous year.

the Board of directors has recommended a dividend of 60% for the year 2004-05 (previos year 60%)

for futher information please contact:

Mrs. Pilloo Mullan / Mr. Phillips Abraham

Tel : 91-22022161 Fax ; 22020496/22029781

Colour-chem expandscapacity for Agrochemical and Phaarmaceutical Intermediates at Roha

Roha , March 10, 2005 ; The Life Sciencer Chemica Division of Clariant, a leadin g swiss-based specialty chemicals company has transferred the manufactute of building blocks primarily basedon Friedel- crafts reactions from fermany to is affiliate in India- Colour –Chem Limited. The expansion provides the parent division with products of international qualityat indian cost. This facilty also helps Colour-Chem to serve Indian customers with multi-step products for the pharmacecutical, agrochemical and specialty chemical industries.

An investment of INR 80 millions has been made to expand and rationalize the existing plant at raha for the manufacture of Friedel-Crafts products, such as acetophaenones, as well as speciaty intermdiates used in the manufacutre of agroachmeicals and pharmaceuticals. These products will cater to both local and export markets.

For further information please contact:

Mrs. Pilloo Mullan / Mr. Phillips Abraham

Tel : 91-22022161 Fax ; 22020496/22029781

30 May 2006

Clariant Chemicals (India) Ltd declares a dividend of 110%.

Clariant Chemicals (India) Limited (formerly known as Colour-Chem Limited) has reported a Profit before Tax of INR 648 million and Profit after Tax of INR 404 mn. on net sales of INR 8510 mn. for the year 2005-06. The expenditure for the year includes a once off sum of INR 92 mn on account of integration costs. The Board of Directors has recommended a dividend of INR 11 per equity share for approval by the company’s shareholders at its AGM.

Clariant Chemicals (India) Limited which is a subsidiary of Clariant International - a global leader in the field of specialty chemicals - represents the successful integration of all the former Clariant affiliates in India. It is headed by Mr Heiner Meier, a Swiss national who is the Vice Chairman and Managing Director of Clariant Chemicals (India) Limited. He is assisted by a team of senior professional managers selected from across the former subsidiaries. The responsibility for the Finance, Legal and Secretarial function lies with Mr Sunil Nayak and that of Human Resources with Mr. Pravin Kalawar. The company’s five business divisions are headed by:

Mr Anjani Prasad -- Textile Leather & Paper
Dr Govind Patkar -- Pigments & Additives
Dr Subramanian Siddhan -- Life Science Chemicals & Functional Chemicals
Mr Sahadeo Patil -- Masterbatches.

Clariant Chemicals (India) Limited is headquartered in Mumbai and has manufacturing facilities at five sites – three in Maharashtra and two in Tamil Nadu. It employs approximately 1500 people and its shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

For further information, the company’s website can be accessed at www.clariantindia.com

Your contact
Pilloo Mullan Phone +22- 22838530

Clariant India

BTP India Private Limited IN-Chennai

Colour-Chem Ltd. Mumbai

Clariant (India) Ltd. Mumbai

Vanavil Dyes and Chemicals Ltd. Cuddalore

Clariant (India) Ltd. Thane

Colour-Chem Ltd. Thane

BTP India Ltd. Kanchipuram

Colour-Chem Ltd. Roha, Maharashtra

Clariant (India) Ltd. Madhavaram, Chennai

Clariant (India) Ltd. New Delhi

Colour-Chem Ltd. New Delhi

Clariant (India) Ltd. Chennai

Colour-Chem Ltd. Chennai

Colour-Chem Ltd. Ahmedabad

Colour-Chem Ltd. Kanpur

Clariant (India) Ltd. Calcutta

Colour-Chem Ltd. Calcutta

Clariant (India) Ltd. Ahmedabad

Clariant in Asia

Azerbaijan
Bahrain
Bangladesh
Belarus
Cambodia
China
India
Indonesia
Iran
Israel
Italy
Japan
Jordan

Kazakhstan
Korea, North
Korea, South
Kuwait
Laos
Lebanon
Malaysia
Maldives
Mongolia
Myanmar
Nepal
Oman
Pakistan

Philippines
Qatar
Saudi Arabia
Singapore
Sri Lanka
Syria
Taiwan
Thailand
Turkmenistan
United Arab Emirates
Uzbekistan
Vietnam
Yemen

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.02
UK Pound	1	Rs.85.56
Euro	1	Rs.57.24

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions