MIRA INFORM REPORT

Report Date :

02.08.2011

IDENTIFICATION DETAILS

Name :	SUNSHIELD CHEMICALS LIMITED
Registered Office :	N K M International House, 178 Backbay Reclamation, Babubhai Chinai Marg, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.11.1986
Com. Reg. No.:	11-041612
Capital Investment / Paid-up Capital :	Rs. 73.531 Millions
CIN No.: [Company Identification No.]	L99999MH1986PLC041612
TAN No.: [Tax Deduction & Collection Account No.]	MUMS38695G
PAN No.: [Permanent Account No.]	AAFCS8219K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on Stock Exchanges.
Line of Business :	Manufacturer and Exporter of various Antioxidants and Speciality Surfactants

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 780000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office / Corporate Office :	N K M International House, 178 Backbay Reclamation, Babubhai Chinai Marg, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-61457000
Fax No.:	91-22-22838291
E-Mail :	satish.kelkar@sunshield.in sales@sunshield.in
Website :	www.subshield.in
Administrative Office :	N. K. M. International House, 178, Backbay Reclamation, Babubhai Chinai Marg, Mumbai 400020, Maharashtra, India
Tel. No.:	91-22-22838293 / 22838294 / 22838294
Fax No.:	91-22-22838291
Factory /R & D Centre:	Pali-Khopoli Road, Village Rasal, Taluka Sudhagad, District Raigad, Maharashtra, India
Tel. No.:	91-2142-242226 / 242046 / 242117
Manufacturing Units :	Village Resale, Post Pali, Khapoli Pali Road, Sudhagad, Raigad, Maharashtra, India
Tel No.:	91-2142-242117 / 242089 / 242046 / 242044-088-89
Fax No.:	91-2142-242116
Email :	admin@sunshield.in project@sunshield.in

DIRECTORS

As on : 31.03.2011

Name :	Mr. Amit C. Choksey
Designation :	Chairman
Name :	Mr. Ashok R. Datar
Designation :	Director
Name :	Mr. Bipin V. Jhaveri
Designation :	Director
Name :	Mr. Dhiren P. Mehta
Designation :	Director
Name :	Mr. Manubhai G. Patel
Designation :	Director
Name :	Mr. Sandeep H. Junnarkar
Designation :	Director
Name :	Mr. Shreerang R. Belgaonkar
Designation :	Director
Name :	Mr. Satish M. Kelkar
Designation :	Vice Chairman and Managing Director
Name :	Mr. Amit A Kumashi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of promoters and Promoter Group
1. Indian
Individuals / Hindu Undivided Family	606014	8.24
Bodies Corporate	4065947	55.30
Sub Total (A) (1)	4671961	63.54
(B) Public Shareholding
1. Institutions
Mutual Funds / UTI	700	0.01
Central Government/State Government	200	--
Sub Total (B) (1)	900	0.01
2. Non Institutions
Bodies Corporate	322405	4.38
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1738994	23.65
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	602371	8.19
Any Other (Specify)	16429	0.22
Directors and Their relatives and Friends	16429	0.22
Sub Total (B) (2)	2680199	36.45
(B) = (B) (1) + (B) (2)
Shares held by custodians and against which depository receipts have been issued (C)	--	--
Total (A) + (B) +(C)	7353060	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of various Antioxidants and Specialty Surfactants
Products :	Plastic / Polymers / Rubber / Latex Lubes, Oil Wire Enamels Paints, Coatings, Insulation Enamels, Inks Glass Fibre Cosmetics & Toiletries Agro Chemicals

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Quantity. (M.T.)
Production	9774.55
Installed Capacity (t.p.a.) Installed Capacity depends upon the product mix	23000

GENERAL INFORMATION

Bankers :

Ø Bank of Baroda

Ø The Saraswat Co-operative Bank Limited

Ø State Bank of India

Facilities :

Particulars	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
SECURED LOAN
Long Term Loan from Scheduled Banks	137.054	59.759
Short Term Loans for Working Capital Facilities :
From Scheduled Banks	160.421	142.294
From NBFC against Bills Factored	5.842	9.113
Total	303.317	211.166
UNSECURED LOAN
Interest free sales tax deferral loans :
I] 1983 Scheme	0.000	0.542
Ii] 1988 Scheme	3.499	24.909
Iii] Deferred Sales Tax – 1993 Scheme	15.243	14.588
[c] Unsecured Loans from a Director and an Associate Co.	64.100	53.000
Deposits from Shareholders	2.000	2.000
Deposits from others	11.500	9.000
Total	96.342	104.039

Banking Relations :	--
Auditors :
Name :	Tembey and Mhatre Chartered Accountants
Associates/Subsidiaries :	Ø Aeonian Investments Company Limited Ø Acquamarine Investments and Trading Company Private Limited Ø Abhiraj Trading and Investments Private Limited Ø Amisha Buildcon Private Limited Ø Apco Enterprises Limited Ø Apcotex Industries Limited Ø Balasesh Leafin Limited Ø Belt Trading and Investments Private Limited Ø Bhuvantray Investment and Trading Company Private Limited Ø Casa Bella Developers Private Limited Ø Casa Bella Realty Private Limited Ø Cons Holdings Limited Ø Choksey Chemicals Private Limited Ø Cybella Paradise Private Limited Ø Dhumravarna Trading and Investments Private Limited Ø Dhuraketu Investments and Trading Company Private Limited Ø Forest Hills Trading and Investments Private Limited Ø Gauriputra Investments and Trading Company Private Limited Ø Haridwar Trading and Investments Private Limited Ø Hindustan Minerals Products Company Limited Ø HMP Minerals Private Limited Ø Joshimath Trading and Investments Private Limited Ø Laxmanjhula Trading and Investments Private Limited Ø Mazda Colours Limited Ø Propycon Trading and Investments Private Limited Ø Saldhar Investments and Trading Company Private Limited Ø Samuel Dracup and Sons (I) Private Limited Ø Sammelan Investments and Trading Limited Ø Shivkunj Export and Trading Private Limited Ø Shyamal Finvest (India) Limited Ø Titan Trading and Agencies Limited Ø Trivikram Investments and Trading Company Limited Ø Esbee Dynamed Private Limited Ø Neokel Investments Private Limited Ø Kelkar Chemicals Private Limited
Solicitors :	Junnarkar and Associates

CAPITAL STRUCTURE

As on : 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions
5000000	7% Non Cumulative Redeemable Preference Shares	Rs. 10/- each	Rs. 50.000 Millions
	Total		Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7353060	Equity Shares	Rs. 10/- each	Rs. 73.531 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		73.531	73.531	73.531
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133.666	133.666	133.666
4] (Accumulated Losses)		(11.669)	(26.679)	(56.095)
NETWORTH		195.528	180.518	151.102
LOAN FUNDS
1] Secured Loans		303.317	211.166	164.634
2] Unsecured Loans		96.342	104.039	128.154
TOTAL BORROWING		399.659	315.205	292.788
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		595.187	495.723	443.890
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		363.619	310.185	279.447
Capital work-in-progress		0.000	19.612	25.777
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		15.714	21.078	25.550
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	95.119	74.407	47.216
	Sundry Debtors	176.792	150.954	114.598
	Cash & Bank Balances	5.165	5.870	5.168
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.425	27.858	20.678
Total Current Assets		313.501	259.089	187.660
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	97.672	114.266	74.569
	Provisions
Total Current Liabilities		97.672	114.266	74.569
Net Current Assets		215.829	144.823	113.091
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		595.187	495.723	443.890

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net Sales	790.148	645.031	630.400
		Other Income	8.059	0.078	6.625
		TOTAL (A)	798.207	645.109	637.025
Less	EXPENSES
		Material Consumed	553.902	427.172	450.760
		Employees remuneration benefits	32.671	27.175	25.361
		Manufacturing, Administrative, Selling and Other Expenses	124.763	98.876	86.865
		TOTAL (B)	711.336	553.223	562.986
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		86.871	91.886	74.039
Less	FINANCIAL EXPENSES (D)		41.027	35.510	31.614
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		45.844	56.376	42.425
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.352	18.114	15.288
	PROFIT BEFORE TAX (E-F) (G)		26.492	38.262	27.137
Less	TAX (I)		10.524	7.797	(13.791)
	PROFIT AFTER TAX (G-I) (J)		15.968	30.465	40.928
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(26.679)	(56.095)	(92.683)
	BALANCE CARRIED TO THE B/S		(11.669)	(26.679)	(56.095)
	IMPORTS
	CIF Value of Imports		184.238	(139.071)	NA
	TOTAL IMPORTS		184.238	(139.071)	NA
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings		416.418	310.758	NA
	TOTAL EARNINGS		416.418	310.758	NA
	Earnings Per Share (Rs.)		2.04	4.00	4.98

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.00	4.72	6.42
Net Profit Margin (PBT/Sales)	(%)	3.35	5.93	4.30
Return on Total Assets (PBT/Total Assets}	(%)	3.91	6.72	5.80
Return on Investment (ROI) (PBT/Networth)		0.13	0.21	0.17
Debt Equity Ratio (Total Liability/Networth)		2.54	2.37	2.43
Current Ratio (Current Asset/Current Liability)		3.20	2.26	2.51

LOCAL AGENCY FURTHER INFORMATION

Note :

Action taken under Section 23[1] of Sick Industrial Companies [Special Provision] Act, 1985

The company continues to be potentially sick under section 23[1] of the Act. The Company had carried out the necessary formalities required under the Act in the year 2005-2006. The Company is of the view that no fresh intimation to the concerned authorities needs to be given under the Act.

MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT:

INDUSTRY STRUCTURE AND DEVELOPMENT :-

The Company manufactures process chemicals that are formulated to meet requirements of industries and are known as “Specialty Chemicals” (SC)

Specialty Chemicals manufactured by the Company find extensive use in diverse range of Industries such as Wire Insulation Enamel, PVC stabilizers, Inks, Colours, Coatings, Textiles, Agro-chemicals, Plastics, Rubber and Latex, Tyre and Tubes, Lubricant and additives, and many more.

Some of these SC are Ethylene Oxide (EO) based derivatives, called Ethylene Oxide Condensates (EOC). For the EOC industry, EO is a vital input. EO is a product manufactured mainly for captive consumption by petrochemical complexes to produce MEG, a vital input for Polyester Fibre industry. Based on the captive requirements, petrochemical complexes allocate EO to EOC industry. EO is non importable by sea /air on account of transportation hazards because of its characteristics of low boiling point and explosive nature. Therefore, EO needs to be transported at controlled temperatures and under Nitrogen pressure, in specially designed road tankers. EOC Industry therefore depends entirely on domestic EO availability and Prices.

Besides, EOC based Specialty Chemicals; Company has also diversified into the manufacture of a range of Anti-Oxidants and certain other additives, which do not use EO. This range of, products is also required by a diverse group of industries in the field of Lubricants, Additives, Plastics, Polymers, Rubber, Tyre, Resins and other industries.

The Company is presently catering to the requirements of both the ranges of SC, for large domestic Companies and prime MNCs operating in North and South America; Germany, France, Italy, Netherlands, Turkey etc. in Europe; and also in Asian markets like Korea, Taiwan, Malaysia, Japan etc.

OPERATING AND FINANCIAL PERFORMANCE OF THE COMPANY

Pressure on Margins

1. Despite 24% growth in Net Operating Income, Profit before Tax came down from Rs. 38.300 millions in 2009-10 to Rs. 26.500 millions, during the financial year 2010-11. Following are the key factors for this decline in profits, mainly under the heads ‘Material Consumption and Power and Fuel’

Against growth of 24% in Total Income, increase in Raw Material Consumption is 30% and in Power and Fuel at 46%. Thus, together, Material Consumption and Power and Fuel have gone up from 69.37% in 2009-10 to 73.87% of Net Sales in 2010-11.

These cost increases, could not be fully reflected in selling prices. This reflected time lag between cost increase and revisions in selling prices, due to volatility of price changes in major input materials during 2010-11.

2. Following factors further accentuated squeeze on margins

i. Hardening trend of Indian Rupee, especially against US $ and Euro, has resulted in lower Export Rupee Sales realizations. Company does not have matching imports in US $ or Euro Currency to compensate for lower realization as its major input material EO has to be sourced domestically in Indian Rupee.

ii. Expenses under the head, ‘Power and Fuel’ have gone up from Rs. 20.400 millions to Rs. 29.800 millions, an increase of 46% in the year 2010-11. This is on account of rising fuel costs, being dependent on Crude Oil Prices. There was a steep rise in power tariff on one hand and more frequent power shut downs by MSEB and thus increased use of in-house DG generated costlier power. Further, there has been increase in prices of Wood, Brickets etc; used as substitute to fossil fuels.

Thus, Operating profit before Interest, Depreciation and Tax came down from Rs. 91.900 millions in the year 2009-10 to ` 86.800 millions in the year 2010-11

iii. With the reduced Operating profits as above, the Company had to absorb interest cost of Rs. 41.000 millions in the year 2010-11 against Interest cost of Rs. 35.500 millions in the year 2009-10 caused by :

1. Need to fund additional Capex of Rs. 52.800 millions, to acquire balancing equipments and assets to activate increased and flexible THEIC capacity;

2. To absorb increased Bank Lending rates;

3. To fund increasing working capital to meet higher sales.

However, in the light of Company’s exports crossing more than 54% of its turnover, it was able to avail of “Export Bill financing“ at LIBOR + basis.

This meant interest cost in the year 2010-11 was only 15% more than 2009-10 against income rising by 24% in similar period and funding additional net capex of Rs. 52.800 millions along with repayment of Interest free Sales Tax Deferrals.

OUTLOOK :

The Company is already recognized globally, as a reliable supplier of quality Specialty Chemicals, for a variety of

end use applications. Company is reasonably optimist to improve its performance in the current year.

This outlook is based on renewal of global supply agreement for a further five years by a multinational Company producing Wire Enamels. Additionally, arrangements are being made with other MNCs for regular export to Euro zone, Brazil / Mexico and certain Asian countries.

FIXED ASSETS:

Ø Land

Ø Building

Ø Plant and Machinery

Ø Furniture and Fixtures

Ø Vehicles

Ø R and D Centre

Ø Capital Work in Progress

AS PER WEBSITE DETAILS:

PROFILE:

Subject was incorporated in 1986, as private limited company and then became public.

Promoters have been in the business of Speciality Chemicals for over 35 years. Mr. Satish Kelkar, the Managing Director, along with his close friends and relatives, started the business. This family business was later turned into a listed company and in April 2005, Mr. Amit C. Choksey, from the family of founder promoters of Asian Paints, and Chairman of Mazda Colours, a prime Pthalocyanine blue & green manufacturer co- promoted, Sunshield’s business in the field of Antioxidants and Specialities for prime global customers.

Spread over more than 7.5 acres of land , Sunshield has its modern plant situated at Rasal, around 100 km from Mumbai, and just 60 km from the JNPT sea port convenient for making exports and imports.

Speciality Chemicals: With close inter user co-ordination, the company has developed many niche speciality products with unique applications for MNCs and large Indian corporate. It has a wide range of surfactants based on ethylene oxide condensates, propylene oxide condensates ,esters, amides and their blends that find application as emulsifiers and dispersants for agrochemicals, emulsifiers for textile auxiliaries; as mineral oil emulsifiers for coning oils, orchard or tree spray oils; as viscosity builders in the manufacture of toilet cleaning preparations; as anti foaming agents for paints and lubricants; in metal treatment as cleaning and corrosion inhibitors and many more.

Antioxidants: Sunshield manufactures a range of aminic and phenolic antioxidants for lubes, plastics, rubber, latex and related tyre industry.

Contract Operation: Solid Waste Handling- Sunshield develops customised process to responsibly handle waste and recover / seperate the valuable components and economically dispose the final waste.

BUSINESS DESCRIPTION :

Founded in 1986, Sunshield Chemicals Ltd. is a provider of corrosion inhibitors, antifoaming agents and esters to the oil industry. The company processes, manufactures and supplies a range of surfactants for use as emulsifiers and dispersants. It stocks and sells various polymers used as antioxidants for rubber and latex. The company offers a variety of paint additives and solvents for use in the manufacture of ink and resins. It provides polyethylene glycol oleate for use as a dispersing agent to the glass fibre industry. The company additionally offers several chemicals used as viscosity improvers in the manufacture of toilet cleaners. In addition, it offers antifoaming agents for paints and lubricants.

BOARD OF DIRECTORS :

NAME - TITLE – FUNCTION

AMIT CHAMPAKLAL CHOKSEY - NON-EXECUTIVE CHAIRMAN OF THE BOARD - CHAIRMAN

Reuters Biography (Sunshield Chemicals Limited)

Shri. Amit Champaklal Choksey is Non-Executive Chairman of the Board of Sunshield Chemicals Limited. He has over 30 years of experience in managing industries manufacturing various types of Construction Chemicals, Specialty Water Proofing Compounds and Inorganic pigments. He is the Chairman and Managing Director of Mazda Colours Limited, one of manufacturers and exporters of various types of pigments and intermediates.

SATISH MANOHAR KELKAR - NON-EXECUTIVE VICE CHAIRMAN OF THE BOARD - VICE-CHAIRMAN

Reuters Biography (Sunshield Chemicals Limited) :

Shri. Satish Manohar Kelkar is Non-Executive Vice Chairman of the Board of Sunshield Chemicals Limited. He holds B.Sc. from Mumbai University and has Masters Degree in Management Studies (MMS).He has experience of more than three decades in the business of manufacturing and marketing of Speciality Chemicals, Antioxidants, Surfactants and other Ethylene Oxide Condensates having been connected with Sunshield Chemicals Limited, Schenectady Specialties Asia Limited, etc. He is the past president of Indian Speciality Chemicals Manufacturers Association (ISCMA). He is also active Member of other business associations and chamber of commerce like Indian Chemical Manufacturers Association (ICMA) and Maharashtra Chamber of commerce (MCC) etc. He was working as Managing Director of the Company from April 1992 to September 30,2007 and has managed the Company in difficult situations and severe competition in the Industry. He was instrumental in selling Company's products to many of Indian Corporates like Asian Paints, Kansai Nerolac Paints, Excel Corp Care, United Phosphorous etc. He developed export relationships with multinationals like Lubrizol of U.S.A. Altana of Germany, Owens Corning of U.S.A, Ciba of Switzerland etc. and entered into long term contracts for the Company for export of its products.

SHREERANG R. BELGAONKAR - WHOLETIME DIRECTOR - DIRECTOR/BOARD MEMBER

Reuters Biography (Sunshield Chemicals Limited)

Shri. Shreerang R. Belgaonkar serves as the Wholetime Director of Sunshiled Chemicals Limited since 24th July, 2006 and the last appointment as approved by the shareholders was valid from 24th July, 2006 upto 23rd July, 2011. Shri Shreerang Belgaonkar holds a Bachelors Degree in Chemical Engineering and has more than 25 years of experience in Specialty Chemical business.

ASHOK R. DATAR - NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER

Reuters Biography (Sunshield Chemicals Limited)

Shri. Ashok Datar is Non-Executive Independent Director of Sunshield Chemicals Limited He holds B.A., M.A.(Economics) from Stanford University. Shri Ashok Datar has over 30 years of Experience in Finance and Economics. Shri Ashok Datar is a Director of the Company since 27th February, 1992. Shri Ashok Datar is due to retire by rotation at the forthcoming Annual General Meeting of the Company and being eligible, offers himself for re-appointment. He does not hold any Directorship and Committee Membership of other Public Limited Companies, as at 31st March 2011. He is holding 500 (0.07%) Equity Shares of Rs. 10/- each of the company.

Education (Source: RT )

MA Economics, Stanford University

BA Economics, Stanford University

BIPIN V. JHAVERI - NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER

Reuters Biography (Sunshield Chemicals Limited)

Shri. Bipin V. Jhaveri is Non-Executive Independent Director of Sunshield Chemicals Ltd. He is a B.A, B.Com, Fellow member of Institute of Chartered Accountant of India, and Fellow member of Institute of Company Secretaries of India. He has over four decades of experience in the field of accounts, corporate finance and taxation. He has been a member of Bhagwati Committee setup by SEBI to suggest changes in Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation 1997, representing Assochem. He has been serving on various Committees of Assochem, Bombay Chamber of Commerce and Industries and Indian Merchant Chambers.

SANDEEP H. JUNNARKAR - NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER

Reuters Biography (Sunshield Chemicals Limited)

Shri. Sandeep H. Junnarkar serves as Non-Executive Independent Director of Sunshield Chemicals Limited He is Science graduate with a postgraduate degree in Law. He is a solicitor and a Partner in the law firm Messrs Junnarkar and Associates. His areas of specialization include banking laws, corporate laws including monopolies laws, exchange control laws and securities regulations. He also served as the director of Everest Industries Limited, Excel Crop Care Limited, IL and FS Infrastructure Development Corporation Limited, Jai Realty Ventures Limited.

Education (Source: RT )

LLB, University of Mumbai

BS, University of Mumbai

DHIREN P. MEHTA - NON-EXECUTIVE DIRECTOR - DIRECTOR/BOARD MEMBER

Reuters Biography (Sunshield Chemicals Limited)

Shri Dhiren P. Mehta serves as the Non-Executive Director of Sunshield Chemicals Ltd. He is business executive with over 30 years experience in Finance, Accounts and General Management. He has idea in Accounting, Audit, Taxation and General Management. He held directorships in Aeonian Investments Co. Ltd, Cons Holdings Limited, Samelan Investment & Trading Limited, Pragati Chemicals Limited.

Education (Source: RT )

B, Mumbai University

MANUBHAI G. PATEL - NON-EXECUTIVE DIRECTOR - DIRECTOR/BOARD MEMBER

Reuters Biography (Sunshield Chemicals Limited)

Shri Manubhai G. Patel serves as Non-Executive Independent Director of Sunshield Chemicals Limited. He is a Commerce Graduate and a Fellow Member of Institute of Chartered Accountant of India as also a Graduate in Law. Shri Manubhai Patel has more than four decades of experience in the field of accounts, finance and taxation. He was a member of the Central Council of the Institute of Chartered Accountants of India (ICAI), New Delhi from 1980 to 1988 and active member of various Standing and Non- Standing Committees of the ICAI. He was the President of Income Tax Appellate Tribunal Bar Association, Ahmedabad for the years 1997-98 to 2000-01 and was a Member of Central Direct Tax Advisory Committee of the Government of India, New Delhi for the years 1986-90.

PRESS RELEASE :

Accord Fintech (India)

25 July 2011

[What follows is the full text of the news story.]

India, July 25 -- Sunshield Chemicals Limited has informed BSE about the Financial Results for the period ended June 30, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE.

PUIBLISH AUDITED RESULTS

ACCORD FINTECH (INDIA)

05 April 2011

[What follows is the full text of the news story.]

India, April 05 -- Sunshield Chemicals Limited has informed BSE that the management of the Company had decided to publish the Audited Financial Results for the year ended March 31, 2011, within 60 days from the end of the financial year i.e. on or before May 31, 2011 instead of publishing Un-audited Financial Results for the quarter ended March 31, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE.

ELANTAS RENEWS SUPPLY AGREEMENT WITH SUNSHIELD CHEMICALS

ACCORD FINTECH (INDIA)

17 March 2011

[What follows is the full text of the news story.]

India, March 17 -- Elantas GmbH the Division Electrical Insulation within the Altana Group, a global leader in specialty chemicals field has renewed agreement for a further period of 5 years upto December 31, 2015 with Sunshield Chemicals to source a key raw material being consumed globally. This will help further improvement in utilizing enhanced capacity. The global agreement is aimed to further strengthen, the sourcing process of a key raw material being consumed globally by Elantas. Altana AG with its headquarters at Wesel in Germany, is the holding company, for divisions additives and instruments, effect pigments, electrical insulation and coatings and sealants spread all over the world.Sunshield Chemicals is spread over more than 7.5 acres of land, it has its modern plant situated at Rasal, around 100 km from Mumbai, and just 60 km from the JNPT sea port convenient for making exports and imports. Published by HT Syndication with permission from Accord Fintech.

RENEWAL OF SUPPLY AGREEMENT WITH ELANTAS

ACCORD FINTECH (INDIA)

17 March 2011

[What follows is the full text of the news story.]

India, March 17 -- Sunshield Chemicals Limited has informed BSE that Elantas GmbH the Division Electrical Insulation within the ALTANA Group, a global leader in specialty chemicals field has renewed agreement for a further period of 5 years upto December 31, 2015 with Sunshield Chemicals Ltd to source a key raw material being consumed globally. This will help further improvement in utilizing enhanced capacity. Published by HT Syndication with permission from ACCORD FINTECH BSE.

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 records 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. 44.04
UK Pound	1	Rs. 72.40
Euro	1	Rs. 63.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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 EXPLANATIONS

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.