MIRA INFORM REPORT

Report Date :

28.05.2011

IDENTIFICATION DETAILS

Name :	CAMLIN FINE CHEMICALS LIMITED
Registered Office :	Plot No. F/11 and F/12, WICEL, Opposite Seepz Main Gate, Central Road, Andheri (E), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.11.1993
Com. Reg. No.:	11-075361
Paid-up Capital :	Rs. 58.145 Millions
CIN No.: [Company Identification No.]	L74100MH1993PLC075361
TAN No.: [Tax Deduction & Collection Account No.]	MUMC14766D
PAN No.: [Permanent Account No.]	AACCC5235E
Legal Form :	Public limited liability company Company’s shares are listed on the stock exchange.
Line of Business :	Manufacturer of Antioxidants
No. of Employees :	177

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 1330000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financials appear to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

INFORMATION DECLINED BY

Name :	Mr. Puranik
Designation :	Chief Financial Officer
Date :	27.05.2011

LOCATIONS

Registered Office :	Plot No. F/11 and F/12, WICEL, Opposite Seepz Main Gate, Central Road, Andheri (E), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-67001000
Fax No.:	91-22-28324404
E-Mail :	narayan.joshi@camlinfinechem.com parvin.bastikar@camilfinechem.com sales@camlinfinechem.com
Website :	www.camlinfinechem.com
Factory 1 :	Plot No. D-2/3, MIDC, Boisar, Tarapur, District Thane - 401506

DIRECTORS

Name :	Mr. Dilip D Dandekar
Designation :	Non Executive Chairman
Name :	Mr. Ashish S Dandekar
Designation :	Managing Director
Name :	Mr. Sharad M Kukarni
Designation :	Director
Name :	Mr. Pramod M Sapre
Designation :	Director
Name :	Mr. Abeezar Established Faizullabhoy
Designation :	Director
Name :	Mr. Bhargav A Patel
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Narayan R Joshi
Designation :	Compliance Officer and Company Secretary
Name :	Mr. Dattatraya R. Puranik
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4006829	43.06
Bodies Corporate	601482	6.46
Sub Total	4608311	49.52
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	117280	1.26
Sub Total	117280	1.26
Total shareholding of Promoter and Promoter Group (A)	4725591	50.78
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	450	0.00
Sub Total	450	0.00
(2) Non-Institutions
Bodies Corporate	663355	7.13
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2606927	28.01
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	126143	13.55
Any Others (Specify)	48537	0.52
Non Resident Indians	47737	0.51
Trusts	800	0.01
Sub Total	4579962	49.22
Total Public shareholding (B)	4580412	49.22
Total (A)+(B)	9306003	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	9306003	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Antioxidants

Products :

Item Code No (ITC Code)	Product Description
29.33	API’s
29.09	Food Antioxidants
29.09	Sweeteners

PRODUCTION STATUS (31.03.2010)

Particulars	Unit	# Licensed Capacity in Tons	Installed Capacity in Tons	Actual Production
A) Manufactured Items
Chemical and chemical Products***	Ltrs/Kgs	5130	3500	25.76
B) Trading Items
Chemical and chemical Products	Nos./Pks	NA	NA	63.944

# As Certified by the management and relied upon by the auditors, being a technical matter.

*** Installed capacity worked out on the basis of existing product mix.

GENERAL INFORMATION

No. of Employees :

177

Bankers :

• IDBI Bank Limited
• Exim Bank Limited
• The Hongkong and Shanghai Banking Corporation Limited

Facilities :

Secured loan	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Banks
Terms Loans [Repayable within one year Rs. 62.253 millions ( Previous year Rs. 51.241 millions)]	168.948	115.063
Cash Credits	216.089	146.899
From Others
Loan against Leased assets [Repayable within one year Rs. 3.159 millions (Previous year Rs. Nil)]	18.658	0.000
Total	403.695	261.962

Banking Relations :	-
Auditors :
Name :	B. K Khare and Company Chartered Accountant
Address :	Mumbai
Associates/Subsidiaries :	Chemolutions Chemicals Limited. Sangam Laboratories Limited. Fine Renewable Energy Limited. Fine LifeStyle Brands Limited. Dulcette Technologies LLC Camlin Limited (till 14.12.2009) Focused Event Management Private Limited Vibha Agencies Private Limited Abana Medisys Private Limited

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5814480	Equity Shares	Rs. 10/- each	Rs. 58.145 Millions

Note:

Out of these shares:

a) 4800000 equity shares issued as fully paid up to the share holders of camlin limited pursuant to shceme of arrangement without payment being received in cash.

b) 950000 equity shares issued on preferential allotment to individuals of promoter group.

c) 14480 equity shares issued under ESOS

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		58.145	58.000	58.000
2] Share warrants		0.000	8.060	8.100
3] Reserves & Surplus		274.139	236.094	212.400
4] (Accumulated Losses)		0.000	0.000	0.000
5] Employee stock options outstanding		1.904	0.000	0.000
6] (Deferred employee compensation expenses)		(1.108)	0.259	0.000
NETWORTH		333.080	302.413	278.500
LOAN FUNDS
1] Secured Loans		403.695	261.962	198.300
2] Unsecured Loans		0.000	0.000	10.000
TOTAL BORROWING		403.695	261.962	208.300
DEFERRED TAX LIABILITIES		33.047	31.565	36.300
TOTAL		769.822	595.940	523.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		372.221	309.521	335.300
Capital work-in-progress		20.671	28.541	5.000
INVESTMENT		33.988	18.488	6.200
DEFERREX TAX ASSETS		0.000	0.000	9.800
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	225.251	249.003	130.400
	Sundry Debtors	329.576	199.687	125.100
	Cash & Bank Balances	29.235	15.239	6.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	93.636	53.581	54.900
Total Current Assets		677.698	517.510	316.900
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	284.407	235.134	137.300
	Other Current Liabilities	22.127	25.723	0.000
	Provisions	28.222	17.263	12.800
Total Current Liabilities		334.756	278.120	150.100
Net Current Assets		342.942	239.390	166.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		769.822	595.940	523.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1234.541	1005.025	811.400
		Other Income	28.853	5.716	7.200
		TOTAL (A)	1263.394	1010.741	818.600
Less	EXPENSES
		Consumption of Materials and goods traded in	734.437	651.743	NA
		Payment to employees	65.235	54.164	NA
		Manufacturing and other Expenses	274.164	277.931	16.800
		Other Expenses	0.000	0.000	693.900
		Increase/decrease in stocks	19.071	(120.608)	(21.500)
		TOTAL (B)	1092.907	863.230	689.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		170.487	147.511	129.400
Less	FINANCIAL EXPENSES (D)		60.378	55.346	49.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		110.109	92.165	79.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		44.259	40.113	38.000
	PROFIT BEFORE TAX (E-F) (G)		65.850	52.052	41.600
Less	TAX (I)		22.982	18.204	13.900
	PROFIT AFTER TAX (G-I) (J)		42.868	33.848	27.700
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		23.969	2.000	(18.200)
Less	APPROPRIATIONS				7.500
		Transfer to General Reserve	3.300	1.700	NA
		Proposed Dividend on equity shares	11.629	8.700	NA
		Tax on Dividend	1.976	1.479	NA
	BALANCE CARRIED TO THE B/S		49.932	23.969	2.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	968.652	822.274
	TOTAL EARNINGS		968.652	968.652
	IMPORTS				NA
		Raw Materials	536.597	448.322
		Purchases of Traded Products	NA	42.099
	TOTAL IMPORTS		536.597	490.421	NA
	Earnings Per Share (Rs.)		7.39	5.84	4.60

QUARTERLY RESULTS (UNAUDITED)

PARTICULARS	30.06.2010 (Rs. In Millions)	30.09.2010 (Rs. In Millions)	31.12.2010 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
	1^st Quarter	2^nd Quarter	3rd Quarter	4th Quarter
Net Sales	309.330	390.550	424.510	524.860
Total Expenditure	276.060	334.230	374.550	461.990
PBIDT (Excl OI)	33.270	56.320	49.960	62.870
Other Income	6.050	5.150	2.400	2.850
Operating Profit	39.320	61.470	52.350	65.720
Interest	14.980	19.010	19.370	26.690
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	24.340	42.460	32.980	39.030
Depreciation	12.620	13.100	14.100	14.800
Profit Before Tax	11.720	29.360	18.880	24.230
Tax	3.850	10.080	6.750	(3.120)
Provisions and Contingencies	0.000	0.000	0.000	0.000
Profit After Tax	7.870	19.270	12.140	27.340
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustment	0.000	0.000	0.000	0.000
Net Profit	7.870	19.270	12.140	27.340

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.39	3.35	3.39
Net Profit Margin (PBT/Sales)	(%)	5.58	5.18	5.13
Return on Total Assets (PBT/Total Assets}	(%)	6.27	6.29	6.38
Return on Investment (ROI) (PBT/Networth)		0.20	0.17	0.15
Debt Equity Ratio (Total Liability/Networth)		2.22	1.79	1.29
Current Ratio (Current Asset/Current Liability)		2.02	1.86	2.11

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details

Particulars	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
Sundry Creditors	284.407	235.134	137.300

Contingent Liabilities:

a) In respect of Bills of Exchange / Cheque discounted with the bankers Rs. 189.881 millions (Previous year Rs. 173.824 millions)

b) In respect of bank guarantees aggregating to Rs. 36.665 millions issued to VAT and Customs authorities (Previous Year Rs. 28.599 millions)

c) In respect of corporate bank guarantee amounting to Rs. 50.000 millions issued against the borrowings of Chemolutions Chemicals Limited, a subsidiary of company

HIGHLIGHTS OF 2009-10:

Net Sales of the Company were Rs. 1234.541 Millions as compared to Rs. 1005.025 Millions in the previous year.

Profit before tax was Rs. 65.850 Millions as compared to Rs. 52.052 Millions in the previous year.

Profit after tax was Rs. 42.868 Millions as compared to Rs. 33.848 Millions in the previous year.

Directors have recommended a dividend of Rs. 2.00 per Share of Rs. 10/- each (i.e. 20.00%) as compared to Rs. 1.50 per Share of Rs. 10/- each (i.e. 15.00%).

OPERATIONAL PERFORMANCE:

During the year, total income of the Company rose to Rs.1263.394 Millions from Rs. 1010.741 Millions maintaining a growth rate of 25%.

Despite a volatile foreign exchange situation and a recessionary environment dominating the economic scenario during the year ended 31.03.2010, the Company maintained its profitability. This was mainly due to tighter control over costs, installation of new assets and capacity expansion, improvement in productivity and other operational parameters. The net profit after tax improved from Rs. 33.848 Millions to Rs. 42.868 Millions registering a growth rate of around 27.00% over the previous year.

The Company's main products viz. TBHQ and BHA achieved a combined sale of 2276 MT thereby globally making the Company the largest manufacturer and exporter.

Barring any unforeseen situation, the Directors expect the growth in operations and profitability to continue in the current year as well.

SUBSIDIARIES:

The Company at present has the following subsidiaries;

(a) Chemolutions Chemicals Limited.

A 68% owned subsidiary of the Company posted a total income of Rs. 165.792 Millions for the financial year ended 31.03.2010.

(b) Sangam Laboratories Limited.

A 91% owned subsidiary of the Company posted a total income of Rs. 12.010 Millions for the financial year ended 31.03.2010.

(c) Fine Lifestyle Brands Limited.

A 51% owned subsidiary of the Company posted a total income of Rs. 0.540 Millions in its first year of operations for the financial year ended 31.03.2010.

(d) Fine Renewable Energy Limited.

A 77% owned subsidiary of the Company posted a total income of Rs. 5.128 Millions in its first year of operations for the financial year ended 31.03.2010.

(e) Dulcette Technologies LLC, USA.

A 51% owned joint venture of the Company posted a total income of Rs. 2.528 Millions for the financial year ended 31.03.2010.

MANAGEMENT DISCUSSION AND ANALYSIS:

Opportunities:

Growth in manufacture of food products, cattle and poultry feed and oil refining and increase in incidence of diabetics, are expected to result in significant growth in demand for its products. With strong R and D efforts, the Company is poised to meet the challenges of competitive prices and falling margins and is geared to take the advantage of growth in demand. Further, as strategy for FY 2010-11, the Company has emphasised on the new opportunities in the business segments such as Industrial Antioxidants, Biodiesel Additives, Natural Shelf life Enhancers and Nutraceuticals.

Demand among end users:

With increasing literacy in society people are tending towards packaged and preserved food and also with the increase in the working population, demand for packaged food has increased which subsequently increases the demand for the Company's products. Moreover, the Company is focussed in continuous R and D in this segment. So, the Company is exploring further opportunities in this area which will be in the interest of the Company.

BUSINESS STRATEGY:

Company has two major business divisions namely Food Ingredients Division and Industrial products Division. These business divisions are created to bring in a sharper focus on the growing sections of fine chemicals market.

(A) FOOD INGREDIENTS DIVISION:

The focus of food ingredient division is in the area of shelf life enhancement of food products which contain fats and oils, synthetic antioxidants and another segment which would be added in preservation and shelf life enhancement of farm produce, fruits and vegetables.

(a) Food antioxidants:

The global market for synthetic food antioxidants is about 10,000 MT and valued at approximately $ 110 million and growing globally at the rate of 3% p.a. The applications of the synthetic antioxidants is mainly in the prevention of rancidity of the edible fats and oils, hence it is used widely in packaged oils, like palm oil, sunflower oil, rice bran oil, soyabean oil etc. and also in oils and fats used in fried snacks, confectionary, bakery, extruded snack foods, etc. to enhance shelf life.

Company's current manufacturing capacity is 3500MT for 2 major food antioxidants, TBHQ (Tertiary Butyl Hydroquinone) and BHA (Butylated Hydroxy Anisole). Company's current global market share is about 30% in the food segment.

The marketing outlook

Product World Growth Our share Current Planned

market market market

share% share in

3 yrs

TBHQ 7000 Mt 3%

BHA 3000MT 3%

Total 10000Mt 3% 3000MT 30% 40%

The Company plans to increase the market share in the food segment for synthetic antioxidants by increasing the market share of there existing products, TBHQ and BHA to about 40% globally in 3 years to about 4400MT.

Company's strategy is to achieve growth by increasing share in evolving markets like China, India and Brazil, where the food processing industry has been growing at a rate of more than 10%, though the global markets are growing 3% and consolidate there position in the existing large markets like USA, Europe.

(b) New Food antioxidant:

Company is launching specialised niche food antioxidant, Ascorbyl Palmitate catering to baby food and cosmetic industry to add into the growth in this segment in the coming 3 years.

World Value Our market Global Value

market in 3 years growth

Approx $ 20 120Mt 4% $ 6.5

450 MT million Million

(c) Customised Food Antioxidants:

The market for customised food antioxidant ready to use formulations is a growing need of the food industry and requires specialised food application laboratory and expertise to develop specialised formulations specific for the customers. Company in collaboration with Kemin Food technologies, headquartered in USA, has already entered this value added business of food antioxidants to further drive the growth. Plans are to gain substantial share of markets especially in USA, Middle East and Europe.

(d) New product in preservation segment:

The Company has indigenously developed a product for natural freshness preservation of fresh fruits and vegetables and this product is in the process of patent application filing during the current financial year. The world wide statistics for fresh agriculture produce mentions about 30% wastage of fresh farm produce because of damage due to microbes, fungi, damage due to over ripening in transport and storage.

This product which Company intends to launch shortly would address the wastages of fresh farm produce, due to over ripening, damage because of fungi and microbes and possibly minimise losses due to these reasons by about 50%. The potential is huge and they are laying out there strategies to add huge volumes from this market segment.

(B) INDUSTRIAL PRODUCTS DIVISION:

The Company has created a separate division to bring in a sharper focus on market development. The market share increase is also being planned by expanding the usage of antioxidants TBHQ, in the industrial applications, like Biodiesel, printing inks, plastic and polymers. Moreover the Company will add new products to enter the industrial antioxidant segment.

(a) Technical Grade TBHQ (M-TBHQ):

Applications:

* Antioxidant in Biodiesel.

* Anti-skinning Agent in Printing Inks.

The world production capacity of Biodiesel is 35 Million Tons per year. Major markets are Western Europe (31%), USA (20%) and Central Europe (17%). Current capacity utilisation is around 25-30% leading to a consumption of 10 Million Mts per year.

The estimated consumption potential for M-TBHQ is 2000-3000 Mts per year valued at US$17 Million per year. Growth is expected at 3-4% per year.

Company has applied for product testing and registration in Europe and has started seed marketing of the blends in select markets. Target sales is 500 Mts per year valued at US$ 4.5 Million per year in 3 years time frame.

(b) MEHQ

Applications:

* Polymerisation Inhibitor for Acrylic Monomers.

Estimated consumption approx. 5000 MT valued at US$28-30 Million. Growth expected at 4-5% per year.

Company has already started commercial production and approvals at major customers in USA, Europe and Asia is under progress. The Company is targeting a volume of 1000 Mts per year at US$10 Million per year in 3 years time frame.

(c) TBC

Applications:

* Polymerisation Inhibitor for Styrene and allied monomers.

Estimated consumption is approx. 2000 Mts per year valued at US$ 8 million per year. Growth is expected at 3% per year. Company has started commercial production and sample approvals at customers is in process. Target sales volume is 200 Mts per year valued at US$ 2 Million per year.

(d) PDMB:

Applications:

* Intermediate for synthesis of pharmaceuticals, paints and azo dyes.

* Also used in manufacture of perfumery compounds.

Company targets a sale of 160 Mts per year valued at US$ 1 Million per year.

(e) BHT:

Applications:

* Antioxidant for Elastomers, plastics, food and feed.

* Additive for petroleum based products.

Estimated consumption is around 30,000 Mts per year valued at US$ 85 Million per year. Growth rate is 1-2% per year. Company has run successful plant trials for this product and seed marketing is planned. Targeted sales volume is 800 Mts per year valued at US$ 2.8 Million per year in 3 years time frame.

THE BUSINESS STRATEGY:

Company's business strategy includes growth and expansion in all the core product segments, strengthening the infrastructure base and to keep the Company technologically advanced and ahead by investing in RandD. Company has laid out a growth strategy for the coming years based on expanding the market share of existing core products, expanding the range of products to cater to wider areas of the Food, Health and Alternative Energy segments and also focusing on the development of technology for specialty chemicals with specialised applications with In-House R and D and Technology support.

Today the Company is the world's largest manufacturer and exporter of Food antioxidants like TBHQ and BHA and exporting to more than 45 countries world wide. Company has so far focussed on food preservation through its food grade anti-oxidants TBHQ and BHA. Company is now expanding its product portfolio with new food grade anti-oxidants and also industrial application. In view of this, the product range has further expanded with a niche food antioxidant Ascorbyl Palmitate with applications in baby foods, cosmetics etc. and industrial anti-oxidants MEHQ, PDMB and TBC. This is going to be the next growth driver.

Company has achieved the growth and reputation in the international markets by building a large customer base through trust and consistent quality and service over the past decade. The manufacturing facility at Tarapur spanning 6.5 acres, also an EOU unit, has 8 isolated manufacturing facilities dedicated for manufacturing food antioxidants, Industrial antioxidants and API's. The food antioxidant manufacturing facilities are designed and governed by food safety certifications, like ISO 22000 : 5000, HACCP, FAMI- QS and British Retail Consortium (BRC). The plant is audited for food safety and quality standards by audit firms of global repute, like SGS and Intertek. The manufacturing facility has been audited by global food and food ingredient Companies which are giants and having trans-national presence.

Dulcette Technologies, LLC is Joint Venture Company in USA, primarily to focus on marketing of Company's products in North America. The potential of antioxidants in North American market is about 60% of the world volume and a similar picture for the Industrial antioxidant segment, with the Company based in USA, with sales force covering East, West and the central part of North America. They plan to increase there current base and be in direct relationship with the customers, bringing a 2 fold benefit of direct customer relationship and better margins for products rather than operating through a distributor driven model.

Company has planned its marketing operations in Europe, Middle East (ME), South America (SA) and China to expand the customer base and business. The markets in SA, China and ME are growing economies and the food industry is evolving and growing, thus presenting a huge potential for expanding there base and market share in these markets.

Company has a marketing and profit sharing alliance with Kemin Food Technologies of USA for value added food antioxidant blends globally. The Company expects to grow its presence in value added blends business in the next 2 to 3 years.

The antioxidants like TBHQ have applications in various other industries like paints, polymers, biodiesel stabilisers, rubber industry, printing inks, resins and many more. Company has entered the segment with a special grade of TBHQ and has expanded the spectrum and reach in the market and have added significant volumes to there existing business. Moreover with there reach in the industrial antioxidant segment Company is developing 3 more products, which will expand the market share in industrial antioxidant segment.

Company is also entering the field of Bio technology products and first patented, biotechnology based Natural shelf life enhancing formula for increasing shelf life of Natural farm produce, like fruits, vegetables and flowers.

FUTURE PROSPECTS:

Capacity:

Company has laid out a growth strategy for the coming years based on enhancing the market share of existing core products, expanding the range of products to cater to wider areas of the Food, Health and Alternative energy segments and also focussing on the development of technology for specialty chemicals with specialised applications with In-house R and D and Technology support.

New product development efforts through state of the art R and D facility and on going product development efforts through internal technology team at the process plant have enabled the Company to launch more than 3 products in the current year. All these products have already passed through the trial runs and technology transfer at the plant level and have also passed through the test of customer approvals and commercialisation.

The entire activity of additional capacity creation has been done with minimum capital expenditure. The enhanced capacity creation at the plant was put to operation in last financial year. The resultant increase in capacity by about 60% over previous year was available through internal process development team with minimum of capital expenditure and this has enabled the Company to be cost effective in operations. Company has its bandwidth in terms of products, facility and technological support to take the output to 4000 tonnes per annum for all the existing and new products during current year.

Presently Company has licensed capacity of 5130 tonnes per annum with installed capacity of 3500 tonnes per annum. Pursuant to the additional installation of the plant and machinery and due to process re-engineering, the enhanced capacity would go upto 4000 tonnes per annum.

MARKETING STRATEGY:

Long term Objectives and plans:

Company wants to be a global leader in the Food preservation segment by expanding the product range in various areas of shelf life enhancement like dairy, baby food, infant formulas, agriculture produce like fruits and vegetables, horticulture, aqua industry with preservation of fish, shrimps and also meat industry.

Company is planning to expand the manufacturing capacity of synthetic antioxidants to cater to the demand created in the growing and evolving food markets like China, India, Asia, South America and Middle East and maintain its global leadership position and improve market share.

Company is working on backward integration to improve the margins and be a step ahead of the competition by innovating manufacturing processes, improving yields and has invested in a process development laboratory. Company has expanded on its research and development by adding on a food application laboratory with food technologists for conducting research and customer projects in food preservation and to work closely with food industry to develop new technologies.

MARKETING PLANS:

Sales and Marketing set up expansion:

Company has expanded the market coverage with appointment of sales team in growing markets to build a strong customer base to build market share. The European marketing office has a Business Manager based at Switzerland to handle the European and East European markets for food and industrial antioxidants and Natural shelf life enhancers. The office is responsible for appointment of distributors and set up of logistic channel for coverage of the markets in Western Europe and Eastern Europe.

Similar models are being implemented in South America, Middle East and China. The advantage is building a stronger and long term base in the regions. intellectual property

1. Patent filed for innovative manufacturing process for BHA.

2. Patent filed for manufacturing process for Sucralose.

3. Patent filed for biotechnology based product for enhancing shelf life of fruits and vegetables.

Chemolutions chemicals limited (ccl): a subsidiary of the Company has been formed along with a German national, who has over 25 years of experience in marketing specialty chemicals. CCL has sensed the winds of change and emerging opportunity through partnership with the Innovator Companies and works with them. Besides CCL could become an Innovator Company by engaging themselves with trans-national Innovator Companies in the form of long term relationship for product development and delivery and filing the process patents for the products developed through their own technological inputs in the form of development through CCL or elsewhere.

CCL has developed advanced intermediates/ innovative products for specific customers in USA and Europe and these demands would be met from manufacturing facilities in India, by entering in to long terms contracts with these innovators. CCL has already arranged a leased facility at Tarapur with prospect of taking over this facility for manufacturing and the production at this place would start in the second quarter. CCL has signed a contract for manufacturing a specialty chemical for an European Company, through the process developed by the Company's Research and Development. This export business has crossed Rs. 165.700 Millions in FY 2009-10. CCL has plans to add these new products in its existing line of business thereby aiming to achieve 100% growth in the current financial year.

Sangam laboratories limited (sll): a subsidiary of the Company is a manufacturer of Nutraceuticals like Glucosamine and its salts which are used as a supplement in bone management in conditions like osteoarthritis and have wide spread usage in USA and Europe, the volumes are in excess of 2000MT in these markets alone. SLL has set a growth plan of reaching to a level of Rs. 50.000 Millions in the coming year.

The plans are also being evaluated to manufacture the product in a country which has an advantage in terms of raw material supply, low cost of manufacturing which would give a tremendous edge and competitiveness in the market over there competitors.

Fine renewable energy limited (Frel): is a subsidiary of the Company. This Company is in operations from the current year. FREL was launched to make a foray in renewable energy through windmills, solar panels, micro hydro, bio-mass and other renewable resources. The Company has tapped big companies including some MNC's for sale of its products. The negotiations are in its place and the Company is hopeful to increase its top line growth substantially in the current financial year.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

Particulars	30.06.2010 (Unaudited)	31.12.2010 (Rs. In Millions)
Operating Income
Gross sales / Income from Operations	312.425	428.472
Less: Excise Duty / Sale Tax recovered	4.518	4.969
a) Net Sales / Income from Operations	307.907	423.503
b) Other Operating Income	1.421	1.002
Total Operating Income	309.328	424.505
Expenditure
(a) (Increase)/decrease in Stock in Trade	(42.870)	(34.289)
(b) Consumption of Raw Materials	230.379	311.014
(c) Purchase of Traded Goods	1.158	2.046
(c) Employees Cost	15.743	20.320
(d) Depreciation	12.621	14.103
(e) Other Expenditure	71.653	75.462
Total Expenditure	288.684	388.656
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	20.644	35.849
Other Income	6.052	2.401
Profit/(Loss) before Interest and Exceptional items	26.696	38.250
Interest	14.983	19.366
Profit / (Loss) after interest before Exceptional items	11.713	18.884
Deferred Interest	--	--
Net Profit/(Loss) from Ordinary Activities before tax	11.713	18.884
Tax Expenses	3.847	6.749
Net Profit/(Loss) from Ordinary Activities after tax	7.866	12.135
Extraordinary Items	--	--
Net Profit/(Loss) for the period	7.866	12.135
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	58.145	93.027
Reserves (Excluding Revaluation Reserves)	--	--
Earning per Share (EPS)
-Basic	1.35	1.30
-Diluted	1.33	1.30
Public Share Holding
Number of Shares	2860859	4577097
Percentage of Shareholding	49.20	49.20
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	--	--
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	--
- Percentage of shares(as a % of the total share capital of the company)	--	--
b) Non-encumbered
- Number of Shares	2956321	4725591
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00	100.00
- Percentage of Share (as a % of the total share capital of the company)	50.80	50.80

Notes:

1 The above results have been reviewed by the Statutory Auditor and the Audit Committee and have been taken on record at the meeting of the Board of Directors held on 07.02.2011

2 In the light of AS-17 Segmental Reporting, the Company operate in a single business segment namely Fine Chemicals” and there is no reportable geographical segment.

3 during the quarter one complaint was received and resolved, there were no complaints pending at the beginning and at the end of the quarter.

4. The process of the right issue were to be utilized for meeting capital expenditure for development of plant processing and de-bottle necking and expenses of the issue. The company has utilized Rs. 27.680 millions out of the total proceeds of Rs. 54.939 millions against capital expenditure and issue expenses. The balance funds are being utilized as working capital for the short term until the utilization for the aforesaid purposes.

5 The figures to the previous period have been regrouped / rearranged wherever necessary.

Fixed Assets

• Freehold Land
• Leasehold Land
• Site Development
• Building and Shed
• Plant, Machinery and Equipment
• ERP Hardware/Software Cost
• Furniture and Fittings
• Vehicles
• Lease Assets

As per Web Site Details

Subject is focused on a vision to be the largest food antioxidant and ingredient manufacturer worldwide. CFC ltd. will achieve the mission by placing the needs of there customers first, creating quality products, innovating technology, and fostering continuous improvements in there people, products, and processes.

CFC ltd. believes in building the business on basic values:

• A focused approach towards manufacturing there products
• Hard work and excellence in all there efforts.
• Teamwork across functions and business units as the pathway to success.
• Confidence in the efficacy of there products.
• Passion about serving there customers.
• Continuous change as a way of life.
• Innovation and quality in processes, products and services.

They are pleased to introduce there selves as one of the India's leading manufacturers and exporters of Bulk Drugs, Fine Chemicals and Food Grade products.

Camlin the corporate group was established in 1931 and is a pioneer in art and stationery material in India. Camlin diversified into Pharmaceuticals and Fine Chemicals two decades ago. Today Camlin Fine Chemicals is the world's second largest manufacturer and marketer of food grade antioxidants TBHQ and BHA. There facilities are HACCP and ISO 9001 : 2000 certified.

With effect from 22.12.2006, Camlin Limited, Fine Chemical Division has de - merged into a separate company named as Subject (CFC limited).

The entire management team and employees of Camlin Fine Chemicals Division are now a part of the independent legal entity formed under the Indian Companies Act 1956.

This de-merger will enable us to grow at a faster pace and serve there customers and markets better in today's globalised environment.

Research and Development

Subject has a strong research and development which is focused on bringing in continual improvements on process and products, backward integration and developing innovative products"

The research and development is equipped with comprehensive and updated instrumentation for conducting quality analysis, stability studies.

The research and development also is equipped to conduct application studies on stability index of edible oils and Biodiesel

The kilo lab facility is installed in the laboratory to bridge the gap between laboratory and pilot plant . The pilot plant at Tarapur is designed for scale up and development of new products and processes, as well as commercial manufacture to support small volume requirement of customers

The Rand D specializes in synthesis of basic molecules for drug development, synthesis of high quality laboratory chemicals, synthesis of drug metabolites

News:

11.06.2008:
The Company has entered into a joint venture with M/s. Viachem LLC, USA, on a 51:49 basis by setting up a Joint Venture Company namely M/s. Dulcette Technologies LLC for marketing Sucralose, Aspartame, and Acesulfame-K, and their belnds in USA, Canada, and Maxico.

30.07.2008:
The Board of Directors of the Company at its meeting held on 29.07.2008, have approved the proposal for setting up a joint venture company between the Company and Pagoda Advisors Private Limited and their associates.

Camlin Fine Chemicals will own 51% of the Equity of the proposed new Company and the rest 49% will be owned by pagoda Advisprs Private Limited and their associates.

The proposed new company will focus on the retail of luxury/premium brands in india by setting up stores in all stores in all major metros and cities in India by itself and through franchisees.

25.02.2008

"Subject" has acquired 60% Equity Stake in Sangam Laboratories Limited a Small Scale Unit manufacturing Nutraceuticals and Drug Intermediates at Tarapur.

12.02.2008:

"Subject" has entered into a Joint Venture Agreement with "Advanced Aerospace Technologies Inc., USA" to manufacture and market speciality fine chemicals primarily to cater to European and U.S markets. The company will be headed by Mr. Christopher Bluemel, a German National having around 20 years of experience in international fine chemicals market.

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.45.21
UK Pound	1	Rs.74.30
Euro	1	Rs.64.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.