MIRA INFORM REPORT

Report Date :

14.05.2012

IDENTIFICATION DETAILS

Name :	SUDARSHAN CHEMICAL INDUSTRIES LIMITED
Registered Office :	162, Wellesley Road, Pune – 411001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.02.1951
Com. Reg. No.:	11-008409
Capital Investment / Paid-up Capital :	Rs.69.227 Millions
CIN No.: [Company Identification No.]	L24119N1951PLC008409
TAN No.: [Tax Deduction & Collection Account No.]	PNES06998F NGPS01977D
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Inorganic Pigments, Organic Pigments and Dyestuffs, Intermediates and Pesticides.
No. of Employees :	1087 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9762000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The company can be considered good for any business dealings at usual trade terms and conditions. The company can be regarded as a promising business partner in a medium to long run.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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/ Global Head Office :	162, Wellesley Road, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-26058888
Fax No.:	91-20-26058222
E-Mail :	shares@sudarshan.com
Website :	www.sudarshan.com
Factory 1 :	46, MIDC Estate, Dhatav, Roha – 402116, District Raigad, Maharashtra, India
Factory 2 :	Plot No. A – 19/1+2, MIDC Estate, Mahad – 402301, District Raigad, Maharashtra, India

DIRECTORS

AS ON 31.03.2011

Name :	Mr. K. L. Rathi
Designation :	Executive Chairman
Name :	Mr. B. S. Mehta
Designation :	Non – Executive, Independent Director
Name :	Mr. P. P. Chhabria
Designation :	Non – Executive, Independent Director
Name :	Mr. D. N. Damania
Designation :	Non – Executive, Independent Director
Name :	Mr. S. N. Inamdar
Designation :	Non – Executive, Independent Director
Name :	Mr. S. Padmanabhan
Designation :	Non – Executive, Independent Director
Name :	Mr. S. K. Asher
Designation :	Non – Executive, Independent Director
Name :	Mr. P. R. Rathi
Designation :	Vice Chairman and Managing Director
Name :	Mr. N. J. Rathi
Designation :	Non – Executive Director
Name :	Mr. R. B. Rathi
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. P. S. Raghavan (w. e. f. 16.08.2010)
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2012

Category of Shareholder	Total No. of Shares	% of total No. of Shares
		As a % of (A+B+C)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3,426,893	49.50
Bodies Corporate	225,210	3.25
Sub Total	3,652,103	52.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3,652,103	52.76
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	725	0.01
Financial Institutions / Banks	770	0.01
Insurance Companies	253,848	3.67
Foreign Institutional Investors	550	0.01
Sub Total	255,893	3.70
(2) Non-Institutions
Bodies Corporate	210,795	3.04
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1,514,490	21.88
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	700,614	10.12
Any Others (Specify)	588,830	8.51
Clearing Members	2,604	0.04
Non Resident Indians	28,144	0.41
Foreign Corporate Bodies	558,082	8.06
Sub Total	3,014,729	43.55
Total Public shareholding (B)	3,270,622	47.24
Total (A)+(B)	6,922,725	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	6,922,725	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Inorganic Pigments, Organic Pigments and Dyestuffs, Intermediates and Pesticides.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Pigments Organic	320417
Pigments Inorganic	3206
Pesticides	3808

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity M. Tonnes	Actual Production M. Tonnes
Inorganic Pigments	10902	8193
Organic Pigments	11791	13770
Intermediates	2500	153
Pesticides (100%)	3520	1386

Licensed capacity per annum not indicated due to the abolition of Industrial Licenses as per Notification No. 477(E) dated 25th July, 1991 issued under The Industries (Development and Regulations) Act, 1951.

Installed Capacity certified by the Vice Chairman and Managing Director.

GENERAL INFORMATION

No. of Employees :

1087 (Approximately)

Bankers :

· Bank of Maharashtra

· State Bank of India

· Bank of Baroda

· ICICI Bank Limited

· HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loans From
Export – Import Bank of India	380.000	153.125
Bank of Maharashtra	401.555	71.759
Working Capital Borrowings From Banks	670.443	430.521
Total	1451.998	655.405
--Term Loans repayable within a year Rs.87.504 Millions (Previous year Rs.63.329 Millions)
Unsecured Loans	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. In millions)
Short Term Loans from Banks	127.222	0.000
Intercorporate and Other Deposits	187.176	185.646
Fixed Deposits
From Shareholders	63.780	82.475
From Others	133.681	140.524
Total	511.859	408.645

-- Repayable within a year Rs.12.781 Millions (Previous Year Rs.51.305 Millions)

Banking Relations :	--
Auditors :
Name :	B. K. Khare and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiaries :	· Prescient Color Limited · Sudarshan Europe B. V. and Sudarshan North America, Inc.
Associates :	· Rathi Brothers Poona Limited · Rathi Brothers Madras Limited · Rathi Brothers Calcutta Limited · Rathi Brothers Delhi Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued :

No. of Shares	Type	Value	Amount
*6922775	Equity Shares	Rs.10/- each	Rs.69.228 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6922725	Equity Shares	Rs.10/- each	Rs.69.227 Millions

Notes :

Of the above shares :

(i) 8,400 Equity Shares of Rs.10 each fully paid up were allotted pursuant to the contract without payment being received in cash.

(ii) 3,080,075 Equity Shares of Rs.10 each fully paid up were allotted as Bonus Shares by capitalising General Reserve and Share Premium Account.

* Allotment of 50 Rights Equity Shares of Rs.10/- each is kept in abeyance, matter being subjudice.

s

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		69.227	69.227	69.227
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2371.457	1415.463	1057.274
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2440.684	1484.690	1126.501
LOAN FUNDS
1] Secured Loans		1451.998	655.405	640.329
2] Unsecured Loans		511.859	408.645	182.628
TOTAL BORROWING		1963.857	1064.050	822.957
DEFERRED TAX LIABILITIES		120.974	58.658	68.826
TOTAL		4525.515	2607.398	2018.284
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1329.475	866.268	789.011
Capital work-in-progress		385.554	110.631	51.898
INVESTMENT		218.575	205.024	106.716
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1374.554	765.154	689.029
	Sundry Debtors	1746.882	1267.287	752.367
	Cash & Bank Balances	123.498	89.741	81.902
	Other Current Assets	65.221	33.553	44.967
	Loans & Advances	463.225	308.632	164.676
Total Current Assets		3773.380	2464.367	1732.941
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	513.761	477.610	23.504
	Other Current Liabilities	491.063	393.746	497.655
	Provisions	176.645	167.536	164.180
Total Current Liabilities		1181.469	1038.892	685.339
Net Current Assets		2591.911	1425.475	1047.602
MISCELLANEOUS EXPENSES		0.000	0.000	23.057
TOTAL		4525.515	2607.398	2018.284

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	7046.639	5679.739	4529.036
		Other Income	73.476	90.762	40.068
		TOTAL (A)	7120.115	5770.501	4569.104
Less	EXPENSES
		Consumption of Raw Materials	3974.414	2936.910	2485.995
		Manufacturing and Other Expenses	1668.927	1407.753	1139.233
		Administrative and Selling Expenses	588.519	505.394	380.230
		Increase/Decrease in Stock	(49.222)	38.972	16.390
		Exceptional Items	(93.145)	0.000	0.000
		TOTAL (B)	6089.493	4889.029	4021.848
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1030.622	881.472	547.256
Less	FINANCIAL EXPENSES (D)		106.546	89.493	136.841
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		924.076	791.979	410.415
Less/ Add	DEPRECIATION/ AMORTISATION (F)		132.144	134.053	126.786
	PROFIT BEFORE TAX (E-F) (G)		791.932	657.926	283.629
Less	TAX (H)		233.816	198.832	95.234
	PROFIT AFTER TAX (G-H) (I)		558.116	459.094	188.395
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		364.188	206.000	122.398
Less	APPROPRIATIONS
		Transfer to General Reserve	400.000	200.000	40.000
		Dividend	86.534	86.534	55.381
		Tax on Dividend	14.038	14.372	9.412
	BALANCE CARRIED TO THE B/S		421.732	364.188	206.000
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on F. O. B Basis	2090.461	1613.247	1749.892
		Others	12.383	4.354	1.513
	TOTAL EARNINGS		2102.844	1617.601	1751.405
	IMPORTS
		Raw Materials	1071.113	708.121	759.170
		Stores & Spares	4.734	5.258	3.298
		Capital Goods	60.907	8.249	Nil
	TOTAL IMPORTS		1136.754	721.628	762.468
	Earnings Per Share (Rs.)		80.62	66.32	27.21

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	1782.830	2096.520	1636.350
Total Expenditure	1568.670	1837.560	1475.460
PBIDT (Excl OI)	214.160	258.960	160.890
Other Income	23.240	38.210	(3.560)
Operating Profit	237.400	297.170	157.330
Interest	41.550	58.780	59.540
Exceptional Items	0.000	0.000	0.000
PBDT	195.850	238.390	97.790
Depreciation	37.750	42.700	50.550
Profit Before Tax	158.100	195.690	47.240
Tax	45.870	58.850	18.730
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	112.230	136.840	28.510
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	112.230	136.840	28.510

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.84	8.08	4.12
Net Profit Margin (PBT/Sales)	(%)	11.24	11.58	6.26
Return on Total Assets (PBT/Total Assets}	(%)	15.52	19.75	11.24
Return on Investment (ROI) (PBT/Networth)		0.32	0.44	0.25
Debt Equity Ratio (Total Liability/Networth)		1.28	1.42	1.33
Current Ratio (Current Asset/Current Liability)		3.19	2.37	2.52

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND :

The domestic Pigment market has been buoyant as a result of rising incomes and increase in per capita spending. This backed by efficient cost management has enabled the Company to post all round growth in sale of Pigments for the year. Pigment Products catering to different segments recorded good growth. The macro environment prevailing in the western and European markets were challenging post recessionary conditions which had set in early 2008. The Company with its High Performance Pigments were in a position to compete with global majors resulting in higher Pigment exports.

Agro Chemicals also fared reasonable well considering the constraints. Lower pest formation, change in product mix, unseasonal and unfavourable monsoon were some of the factors that impeded growth.

Overall the growth has been good and Sudarshan is fully geared up for exploiting and consolidating the opportunities ahead.

SUBSIDIARY COMPANIES :

During the year, the Company’s overseas subsidiaries have shown improved sales performance. The initial teething troubles witnessed is a thing of the past and with appropriate staffing and efficient Sales and distribution channels to back, the subsidiaries are poised to consolidate.

The other Indian Wholly Owned Subsidiary, Prescient Color Limited, continues to augment and validate its product range especially for textile and specialty plastics segment. The operations of Prescient Color Limited has also improved in the year by posting a modest profit of Rs.3.650 Millions. The current scenario looks stable and encouraging.

OUTLOOK FOR THE FUTURE :

The domestic demand for Pigments continues to be robust and holds promise for the Company’s Pigment Products. The export market even though still reeling under sluggish demand prevailing in the US and European markets holds promise as the Company’s overseas subsidiaries are strategically placed to take advantage of the local conditions.

Agro Chemicals business also is expected to perform reasonably well. However excessive and unseasonal rains can play truant.

Barring any unforeseen circumstances, the current year’s prospects look to be good.

MANAGEMENT DISCUSSION AND ANALYSIS

Overview

The Economic downturn which affected developed economies have showed slight signs of improvement on the back of fiscal stimulus provided by the Governments. Recovery even though seen is uneven and the business environment suspect on account of subdued consumer and investment demand owing to tightening of credit conditions. The Indian Economy has fared well as compared to the developed countries as rising income levels and a growing middle class segment have fuelled demand and spurred growth. A high Commodity price continues to be a cause of concern and has lead to Trade off between inflation and growth. The Government choosing to rein in commodity prices to tame down inflation rather than aiming for high growth.

Business of the Company

The Company is a globally renowned player in the Pigment Industry and manufactures a wide range of Organic and Inorganic Pigments, Effect Pigments, Agro Chemicals and other products with facilities at Roha and Mahad, District Raigad, Maharashtra. The Company has also set up an ultra modern R and D Facility at Sutarwadi (Ambadvet), Pune, India.

Financial and Operational Performance

In the year the Company was able to better its performance and registered a positive growth in top line and bottom line. Of the total sales revenue of Rs.7120.000 Millions achieved during the year, 37% is contributed by exports of Pigments. Inspite of rising cost of raw materials and escalation in other operating costs, Company was able to maintain the trend of Profits, primarily on account of efficient cost management, across all Profit Centers.

The Company has embarked on a drive to spruce up the manufacturing facilities at Roha and Mahad to meet the growing demands of Pigment Customers worldwide. The total amount of Capex which is planned in the first phase is about Rs.1000.000 Millions, out of which as of 31st March, 2011 the Company has already expended an amount of Rs.860.000 Millions. The amount expended has among others gone for creating an ultramodern warehouse and for creating at par global facilities at its Roha factory.

During the year, the Company has converted the leasehold rights of the Company in respect of land situated at Final Plot No. 90, Sangamwadi, Corresponding ‘House No. 162’, Wellesley Road, Pune 411 001 into stock-in-trade and valued the same for a sum of Rs.498.500 Millions and accordingly created a revaluation reserve.

During the year, all the plants had smooth operations and the capacity utilization was better as compared to the previous year. The Company’s overseas subsidiaries viz. Sudarshan Europe BV, Sudarshan North America (deemed subsidiary) and Indian Subsidiary, Prescient Color Limited posted improved results in the year.

The certification of ISO 9001 and ISO 14001 and OHSAS –ISO 18001 from BVQI is a testimony to the Company’s commitment towards quality, safety and sustainable environment friendly approach. The Company has also well established R and D laboratories recognized by Department of Scientific and Industrial Research (DSIR). Also their Labs are ISO 17025:2001 certified by National Accreditation Board for Testing and Calibration Laboratories (NABL), Government of India.

Segmental Overview

In accordance with Accounting Standard -17, the Company has two reportable business segments, Pigments and Agro Chemicals.

Pigment business of the Company mainly comprises of manufacturing of High Performance Pigments and Commodity Pigments apart from customized pigments for niche segments catering to domestic and international customers as also manufacture of Effect Pigments for cosmetics, coating applications etc.

Agro Chemical business of the Company consists primarily of products which are generic in nature.

Segment I –Pigments

Industry Structure and Developments

The Pigment Industry worldwide is one of the dominant industries with a collective revenues of over USD 25 billion. The growth of the Pigment Industry has moved in tandem with the growth of Global Economy. Growth in per capita income leading to growth in per capita spending fuels demand for Pigments ranging from paints to plastics to polymer, ink to cosmetics and more, encompassing every sphere of life.

The Company is one of the largest domestic manufacturers of Pigments in India with a 30% market share of the Rs.20 Billion domestic Pigment Industry. The Pigment Division manufactures a wide range of Organic, Inorganic and Effect Pigments catering to domestic and export markets and mainly Paint, Inks, Plastics, Cosmetics, Fashion Accessories and Automobiles as the user industries. The Company’s Pigments are exported to most of the discerning markets in Europe, America and Asia. The manufacturing activity is carried out at Roha and Mahad factories with R and D facilities at Sutarwadi (Pune) and Roha.

There is an excess capacity for the manufacture of commodity pigments worldwide. This results in intense price competition in the commodity segments market. The China factor also continues to affect the Pigment industry.

Performance

The Pigment Division increased its sales in the year 2010-2011 to Rs.6213.000 Millions from Rs.4905.000 Millions in 2009-2010, thereby showing an increase of 27%. Sales from exports for the year amounted to Rs.2667.000 Millions as against Rs.1879.000 Millions achieved during the previous year showing a growth of 42%. Effective cost management and increase in sale of high margin products in domestic market contributed to increased profitability in the year.

Outlook

The Indian Pigment Industry has evolved from a basic Pigment producer to that of a knowledge intensive industry catering to requirement of colorants for all segments. The domestic demand for Pigments continue to be robust and offers opportunity to the Company to improve its market share. Many new High Performance and effect pigments are also being launched for cosmetic and coating markets. The Company’s strategy of setting up sales offices to cater to European and North American Customers is expected to give a fillip to Pigment exports as the Company is better equipped to understand and comply with their preferences.

As a result of the slowdown in western markets, end consumers of Pigment Products are on the lookout for alternative suppliers to meet their varied requirements. Sudarshan with a wide range of High Performance Pigments as also Effect Pigments is ideally placed to meet their requirements.

As a consequence of all these actions, the Company expects better results during the current year.

Segment II – Agro Chemicals

Industry Development

Unseasonal rains and unfavourable monsoon in some parts of the country continued to affect the prospects of the Indian Agro Chemical Industry, impacting the consumption of Agro Chemicals. The industry has also seen a change in the Product mix owing to change in the crop pattern. The average per hectare consumption of agrochemicals in India is comparatively lower than consumption in USA, JAPAN and other developed countries. This augurs well for the Agro Chemical Industry. Rapid growth in acreage of Bt Cotton hybrids resulting in improvement in yield of cotton crop is opening new opportunities for more consumption of pesticides for the control of sucking pests and plant growth nutrients.

India being a tropical country, the consumption pattern of pesticides is tilted towards insecticides, accounting for around 58-60% of the crop protection chemical market. It is followed by herbicides and fungicides at 20% and 18% respectively.

The Crop Protection Industry witnessed growing uncertainties owing to variations in the monsoon spread in some parts of the country, fluctuation in end product prices due to variable raw material costs as also unavailability of key raw materials from China. The Industry also witnessed further slide in the demand for conventional products.

Performance

During the year, the agro division achieved a turnover of Rs.834.000 Millions as against Rs.775.000 Millions made in the previous year. This shows an increase of over 8% in turnover as compared to the previous year. On account of strenuous efforts, the Company has managed to break even in terms of profits for the year. The Company expects to improve performance by concentrating on the sale of Technical and Bulk pesticides besides the sale of high margin branded products and exports.

The Agro Chemical industry is more than ever subjected to the vagaries of the monsoon and can impact sale of Agrochemicals. The Company is mainly into the generic segment which faces cut throat competition from other unorganized and organized players in the Agro Chemical Industry. This may lead to stagnation in revenues and bottom line.

Outlook

The Company is implementing various long term alternatives to further improve the overall performance of the Agro Division. Notwithstanding availability constraints of key raw materials and some difficult market conditions, the current year should end on a positive note.

Contingent liabilities not provided for 31.03.2011:

(a) Excise Duty – Rs.2.010 Millions

(b) Corporate Guarantee issued on behalf of the wholly owned subsidiary company Prescient Color Limited Rs.122.500 Millions

(c) Income Tax – Rs.28.863 Millions

FIXED ASSETS

• Freehold Land
• Leasehold Land
• Buildings
• Plant and Machinery
• Vehicles
• Furniture and Fixtures
• Office Equipments

WEBSITE DETAILS

BUSINESS DESCRIPTION

Subject is an India-based company operating in the pigment industry. The Company manufactures a range of organic and inorganic pigments, effect pigments, agro chemicals and other products. The Company operates in two segments: Pigments, which mainly comprises of manufacturing of high performance pigments and commodity pigments apart from customized pigments for niche segments catering to domestic and international customers as also manufacture of effect pigments for cosmetics and coating applications, and Agro chemicals, which consists primarily of products which are generic in nature. The Company’s facilities are located at Roha and Mahad, District Raigad, Maharashtra. The Company has also set up a research and development facility at Sutarwadi (Ambadvet), Pune, India. Its subsidiaries include Prescient Color Limited, Sudarshan Europe B.V. and Sudarshan North America, Inc. For the fiscal year ended 31 March 2010, the Company revenues increased 29% to Rs.5.99 Billions. Net income totaled Rs.411.5 Millions, up from Rs.119.700 Millions. Revenue reflects an increase in income from Pigments segment and higher Agro Chemicals segment. Net income also reflects decreased freight and octroi charges, the absence of provision for doubtful debts, decreased commission on exports and the absence foreign exchange differences.

BOARD OF DIRECTORS

Shri. K. L. Rathi (Executive Chairman of the Board)

Shri. K. L. Rathi is Executive Chairman of the Board of Subject. He B.Sc, B.Sc.(Technical) and M.A.( Chem) from Columbia University, USA and has been associated with the Company for more than four decades. Mr. K.L.Rathi is also the Chairman of Roha Manufacturers Association.

Shri. P.R. Rathi (Executive Vice Chairman of the Board, Managing Director)

Shri. P.R. Rathi is Executive Vice Chairman of the Board, Managing Director of Subject. He is M.S. in Chemical Engineering from MIT, USA and M.B.A. from Columbia University, USA and has been associated with the Company for more than three decades.

Mr. Sanjay K. Asher (Non-Executive Independent Director)

Mr. Sanjay K. Asher is Non-Executive Independent Director of Subject. He is a Fellow member of the Institute of Chartered accountants of India and Commerce and Law graduate from the Bombay University. Mr. Sanjay Asher is senior partner in M/s Crawford Bayley and Company and is also on the Board of several other Companies.

Mr. P. P. Chhabria (Non-Executive Independent Director)

Mr. P. P. Chhabria is Non-Executive Independent Director of Subject. He is B.Sc in International Business from University of Evansville USA and has completed Advanced Management Programme from Wharton Business School. Mr. P.P.Chhabria is Co-Promoter of Finolex Group of Industries. Mr. P.P.Chhabria is also a Board Member of several other Companies.

Mr. D.N. Damania (Non-Executive Independent Director)

Mr. D.N. Damania is Non-Executive Independent Director of Subject. He is B.E. Mechanical Engineering from Pune University and a renowned technocrat. Mr. D.N.Damania is also on the Board of several other Companies.

Shri. Srikrishna N. Inamdar (Non-Executive Independent Director)

Shri. Srikrishna N. Inamdar is Non-Executive Independent Director of Subject. He is an Advocate. He serves as Director of Kulkarni Power Tools Limited, Finolex Industries Limited, Kirloskar Brothers Limited, Kirloskar Ferrous Industries Limited, Force Motors Limited, Ugar Sugar Works Limited, Kirloskar Proprietary Limited, Sakal Papers Limited, Man Force Trucks Private Limited, Finolex Infrastructure Limited.

Mr. B.S. Mehta (Non-Executive Independent Director)

Mr. B.S. Mehta is Non-Executive Independent Director of Subject. He is a Fellow Member of the Institute of Chartered Accountants of India. Mr. B.S.Mehta is Senior Partner of M/s. Bansi S. Mehta and Company, a firm of Chartered Accountants. Mr. B.S.Mehta is also on the Board of several other Companies.

Mr. S. Padmanabhan (Non-Executive Independent Director)

Mr. S. Padmanabhan is Non-Executive Independent Director of Subject. He is M.Sc. (Physics) from Delhi University and Bachelor of General Law from Mumbai University. Mr. S. Padmanabhan has a diploma in Development Economics from University of Cambridge, U.K. and a Diploma in Management Accounting from Bajaj Institute of Management, Mumbai. A former IAS Officer, Mr. S.Padmanabhan has wide experience in industrial projects, finance and administration. Mr. S.Padmanabhan is also on the Board of several other Companies.

Shri. Rajesh B. Rathi (Executive Director)

Shri. Rajesh B. Rathi is Executive Director of Subject. Mr. Rathi is B.E.Mechanical Engineering from MIT, Pune, B.S.Chemical Engineering from Ohio State University, USA and MBA from Pittsburgh University, USA. Mr. Rathi joined the services of the Company on October 1, 1992 and has got about 16 years experience of working in different capacities relating to Pigment manufacturing, marketing etc. He serves as Director of Rathi Brothers Poona Limited, Rathi Brothers Calcutta Limited, Rathi Brothers Madras Limited, Rathi Brothers Delhi Limited, Prescient Color Limited, Rathi Brothers Private Limited, Balkrishna Rathi Finance Private Limited, Sudarshan Europe B.V.

Shri. N. J. Rathi (Non-Executive Director)

Shri. N. J. Rathi is Non-Executive Director of Subject. He is M.Com from University of Pune and M.B.A. from USA. Mr. N.J.Rathi has been associated with the Company for more than four decades.

PRESS RELEASES

CRISIL assigns fundamental grade 4/5 to Sudarshan Chemical Industries

India, June 08 -- Rating agency, CRISIL Equities has assigned a CRISIL IER fundamental grade of 4/5 to Sudarshan Chemical Industries. The grade indicates that the company's fundamentals are superior relative to other listed equity securities in India. The rating agency has also assigned a valuation grade of 3/5 to the company. The assigned fundamental grade takes into account the company's position as one of India's leading pigment manufacturers, offering a wide range of products, as well as its increasing focus on value-added products like effect and high performance pigments, which offer better margins.Sudarshan Chemical is engaged in the production of organic and inorganic pigments and intermediates and diversified into the production of Agrochemicals. It is a part of the Rathi group of companies and contributes about 70% to the total sales revenue of the Group. The company is divided into three Strategic Business Groups namely, Pigments, Effect Pigments and Agrochemicals with manufacturing facilities at Roha and Mahad in Maharashtra.

INDIA'S SUDARSHAN CHEM. TO INVEST US$22 MLN TO UPGRADE FACILITY

NEW DELHI, April 7 Asia Pulse - India'sSudarshan Chemical Industries (BSE: 506655) on Tuesday said it would invest Rs.1000.000 Millions (US$22.6 million) in upgrading its manufacturing facility at Roha in Pune.

The key developments include a warehouse, high performance pigment plants, pearlescent and congregation plants and an ultra-modern employee facility, a company release said.

The facilities will be inaugurated at a function at Roha on April 9 by Agriculture Minister Sharad Pawar and Deputy Chief Minister of Maharashtra Ajit Pawar, it said.

Sudarshan Chemical Industries Limited is a flagship company of Pune - based Rathi Groups of Companies.

It manufactures an extensive range of chemical, inorganic and pearlescent pigments and dispersions catering to the coatings, plastics, inks, cosmetics, textiles and construction industries worldwide.

"The current expansion at Roha is part of a phase-wise strategy to become the fourth largest global pigment company by the end of 2014 with a focus on high performance pigments for the coatings, plastics and specialty ink markets," Rajesh B Rathi, Director, Head Pigment operations, said.

Sudarshan Chemical Industries Limited Receives Patent for an Improved Process for Preparation of Triazophos

New Delhi, November 7 -- Sudarshan Chemical Industries Limited received Patent for an improved process for preparation of triazophos on October 3, 2008. The patent number issued by the Indian Patent Office is 220854.

Sudarshan Chemical Industries Limited had filed patent application number 643/MUM/2004 for an improved process for preparation of triazophos on June 14, 2004. The inventors of the patent are Patil Sanjay Sambhaji, Savrkar Ajit Murgyappa, Bakale Chandrashekihar Shivaji, Kokitkar Vishnu Bhairu, Mhaiskar Sharad Gopal, Singh Mahendra Pratap and Koul Veerinder Kumar.

According to the Controller General of Patents, Designs and Trade Marks, "The present invetion reletes to a process of manufacturing triazophos using phase transfer catalyst in hich yieild and purity. The process comprising sbstituted 1-phenyl 3-hydroxy-1, 2, 4-triazole with 0, 0-diethylthiophosphoryl chloride in the presence of acide scavengers such as tertiary amines, inorganic bases and hydroxides of potassium ad sodium, carbonates of sodium and 0.2% to 2.0% phase transfer catalyst such as tetra-butyl ammonium bromid, triethylbenzylammonium chloride or triethylenediamine at temperature between 20-45 c in suitable solvents such as water then cooling the reaction mixture to 25-30 c, separating out the aqueous layer and the organic layer so formed, extracting aqueous layer with 300 grams of solvents such as xylene, monochlorobenzen, dmf, toluene methylene dichloride, ehthylene dichloride and water for complete recovey ofo triazophos; adding this wxtracts to the organic layer, washing the organic layer with suitable solvents and recvering triazophos of at least 92% purity.arrying out this step at the ambient temperature of 20-45C more particularly 20-30C and atmospheric pressure."

Financial Result Updates

India, February 03 -- Sudarshan Chemical Industries Limited has submitted to the Exchange the Standalone Financial Results for the period ended December 31,2010.

Sudarshan Chemical Industries Limited Files Patent Application for an Improved Process to Prepare 2-thiocyanomethyl- thiobenzothiazole

New Delhi, August 11 -- India based Sudarshan Chemical Industries Limited filed patent application for an improved process to prepare 2-thiocyanomethyl- thiobenzothiazole. The inventors are Deepika Buddhiraju, Mahendra Pratap Singh and Veerinder Kumar Koul.

Sudarshan Chemical Industries Limited filed the patent application on June 21, 2004. The patent application number is 672/MUM/2004 A. The international classification numbers are C07D277/74, C07D277/82 and C07D277/62.

According to the Controller General of Patents, Designs and Trade Marks, "The present invention relates to an improved process of preparing 2-thiocyanomethylthiobenzothiazole comprising reacting chlorobomomethane with ammonium thiocyanate to form chloromethylthiocyanate which is further reacted in-situ with sodium salt of 2-mercaptobenzothiazole in presence of suitable solvents such as carbontetrachloride, methylenedichloride, chloroform, toluene, xylene, isopropyl alcohol, acetone, methanol at temperature between 20-30C to give 2-thiocyanomethylthio- benzothiazole at least 98% purity. The present process is economical, safer and environment friendly. The purpose of this invention is useful as preservative for tanned leather and also very useful for prevention of mould growth on lumber and other surfaces and useful as microbiocide in pulp and paper industry ad water treatment industry."

About the Company

Subject is an India-based company. The Company manufactures a range of organic and inorganic pigments, effect pigments, agro pigments and other products. The Company operates in two segments: Pigments and Agro chemicals. The Company has facilities at Roha and Mahad. The Company manufactures high performance pigments and commodity pigments apart from customized pigments for niche segments catering to domestic and international customers. The Company also manufactures effect pigments for cosmetics and coating applications. Agro Chemical business of the Company consists of the products, which are generic in nature. The Company's wholly owned subsidiaries include Sudarshan Europe B.V. and Sudarshan North America, Inc.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

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.53.64
UK Pound	1	Rs.86.42
Euro	1	Rs.69.28

INFORMATION DETAILS

Report Prepared by :

PRL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--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		72

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.