MIRA INFORM REPORT

Report Date :

26.02.2013

IDENTIFICATION DETAILS

Name :	SADHANA NITRO CHEM LIMITED
Registered Office :	207, Kakad Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.07.1973
Com. Reg. No.:	11-016698
Capital Investment / Paid-up Capital :	Rs. 92.008 Millions
CIN No.: [Company Identification No.]	L24110MH1973PLC016698
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37459C
PAN No.: [Permanent Account No.]	AABCS1231R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	The company is engaged in manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals.
No. of Employees :	228 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 60000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge accumulated losses recorded by the company. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with great 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	D (Long Term Loans)
Rating Explanation	This rating are in default or are expected to be in default soon
Date	December 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	207, Kakad Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-66604881 – 5 (5 Lines)
Fax No.:	91-22-66604147
E-Mail :	sadhananitro@sncl.com
Website :	www.sncl.com
Factory :	47, M.I.D.C. Industrial Area, Roha, District Raigad – 402116, Maharashtra, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Asit D. Javeri
Designation :	Chairman and Managing Director
Name :	Mr. Arvind R. Doshi
Designation :	Director
Name :	Mr. Arvind L. Apte
Designation :	Director
Date of Birth/Age :	76 Yrs
Qualification :	Arts Graduate
Experience :	He has an experience of Textile Industry and Sugar Industry over a period of 45 years. He joined the company as a Director from 7th August, 1973.
Other Directorship:	Sadhana Nitro Chem Limited Shanudeep Private Limited Dr. Writers Food Products Private Limited
Name :	Mr. Ramesh A. Shroff
Designation :	Director
Name :	Mr. Priyam S. Jhaveri
Designation :	Director
Date of Birth/Age :	56 Yrs
Qualification :	Commerce Graduate
Experience :	He is a Commerce graduate and having experience in chemical industries of Nanavati Groups of companies. He joined the company as a Director from 11th March, 1996.
Other Directorship:	Sadhana Nitro Chem Limited Indian Extractions Limited Excel Industries Limited Phthalo Colours & Chemicals (I) Limited Lifestyle Networks Limited Committee Sonera Investments Private Limited Sonega Trades & Investments Private Limited Nanavati Sons Private Limited Nanavati Speciality Chemicals Private Limited Nanavati Electronics Private Limited Nanavati Organics Private Limited Nanavati Chemex Private Limited R.L. Dalal and Company Private Limited Medchem Technologies Private Limited
Name :	Mr. Dhirendra M. Shah
Designation :	Director
Name :	Mr. Abhishek A. Javeri
Designation :	Director
Name :	Mr. Nitin R. Jani
Designation :	Director and Company Secretary
AUDIT COMMITTEE	Mr. D.M. Shah Mr. Arvind R. Doshi Mr. Priyam S. Jhaveri

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholder	Total No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	673804	7.32
Bodies Corporate	5960611	64.78
Sub Total	6634415	72.11
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6634415	72.11
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	560	0.01
Financial Institutions / Banks	621	0.01
Sub Total	1181	0.01
(2) Non-Institutions
Bodies Corporate	225150	2.45
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1525688	16.58
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	651474	7.08
Any Others (Specify)	162922	1.77
Clearing Members	104404	1.13
Non Resident Indians	46262	0.50
Hindu Undivided Families	12256	0.13
Sub Total	2565234	27.88
Total Public shareholding (B)	2566415	27.89
Total (A)+(B)	9200830	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	9200830	0.00

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Meta Amino Phenol	29222912
Butane Tetra Carboxylic Acid	29171990
Anilic Di Sulphonic Acid	29214233

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Licensed DGTD Rgn. Capacity M.T. (P.A.)	* Installed Capacity M.T. (P.A.)	Actual Production M.T.
Organic Intermediates	3575	3575	1940
Chemical Intermediates	9036	9036	9344

Note:

* Certified by Chairman and Managing Director on which the Auditors have relied.

GENERAL INFORMATION

No. of Employees :

228 (Approximately)

Bankers :

• State Bank of India, Mumbai and Roha, Maharashtra, India
• Axis Bank Limited, Mumbai, Maharashtra, India
• State Bank of Patiala, Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital : including Foreign currency amount US$ 2.543 Millions P.Y. (Nil) [The facilities are secured by way of first pari passu charge on Current Assets, second pari passu charge on Company’s entire fixed assets and further secured by personal guarantee of Chairman and Managing Director]	186.537	173.635
Term Loans : including Foreign Currency Amount US$ 3.0940 Millions (P.Y. US$ 1.098 Millions) [The facilities are secured by way of first pari passu charge on immovable and movable fixed assets (both present and future), second pari passu charge on Current Assets and further secured by personal guarantee of Chairman and Managing Director]	199.330	236.842
Total	385.867	410.477

Banking Relations :	--
Advocates and Solicitors :
Name :	Mulla and Mulla Craigie Blunt and Caroe
Address :	Mulla House, 51, Mahatma Gandhi Road, Mumbai – 400023, Maharashtra, India
Auditors :
Name :	V. Sankar Aiyar and Company Chartered Accountants
Address :	2-C, Court Chambers, 35, New Marine Lines, Mumbai – 400020, Maharashtra, India
Holding Company:	Manekchand Panachand Trading Investment Company Private Limited
Subsidiaries :	Anuchem B.V.B.A., Belgium Anuchem Pte. Limited, Singapore Lifestyle Networks Limited
Associate Companies :	IBI Engineering and Services Private Limited Amnisera Corporation Manekchand Panachand and Company Chandra Net Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
1000000	Unclassified Share	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
9200830	Equity Shares	Rs.10/- each	Rs.92.008 Millions

1. * Includes capitalisation by issue of fully paid Bonus Shares of Rs.10/- each.

No. of Shares Face value Capitalised from Year Ratio

a] 162500 Rs.1.625 Millions General Reserve 1987-88 2 : 5

b] 487012 Rs.4.870 Millions Share Premium 1995-96 1 : 2

c] 584414 Rs.5.844 Millions Share Premium 2002-03 2 : 5

2. 7155379 Equity Shares of Rs.10/- each issued on 24.10.2008

3. 5960611 Shares (P.Y. 5960611) Held by Holding Company.

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		92.008	92.008	92.008
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.090	6.090	69.445
4] (Accumulated Losses)		(81.096)	(28.339)	0.000
NETWORTH		17.002	69.759	161.453
LOAN FUNDS
1] Secured Loans		385.867	410.477	448.687
2] Unsecured Loans		135.493	72.670	58.374
TOTAL BORROWING		521.360	483.147	507.061
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		538.362	552.906	668.514
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		331.378	356.493	316.571
Capital work-in-progress		75.843	54.494	98.692
INVESTMENT		4.122	6.122	6.122
DEFERREX TAX ASSETS		28.569	29.448	31.463
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.242	105.840	149.394
	Sundry Debtors	105.557	59.818	101.562
	Cash & Bank Balances	3.393	3.641	6.358
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	53.505	66.462	100.906
Total Current Assets		273.697	235.761	358.220
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	152.514	113.716	126.706
	Other Current Liabilities	6.826	5.765	5.491
	Provisions	15.907	9.931	10.357
Total Current Liabilities		175.247	129.412	142.554
Net Current Assets		98.450	106.349	215.666
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		538.362	552.906	668.514

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	545.103	349.793	770.096
		Other Income	16.603	13.406	18.596
		TOTAL (A)	561.706	363.199	788.692
Less	EXPENSES
		Increase/ (Decrease) in stock	(13.405)	32.867	(27.062)
		Raw Material consumption	340.283	200.361	494.112
		Power and Fuel	83.844	42.964	95.250
		Operation and Maintenance	20.773	15.924	26.942
		Salaries, Wages and Benefits to Employees	45.717	33.945	40.574
		Administrative Expenses	20.256	19.455	19.492
		Selling and Distribution	20.158	13.374	23.432
		Payment to Auditors	0.388	0.340	0.358
		Managerial Remuneration	5.493	4.136	4.467
		Exceptional Items	0.000	0.000	124.438
		TOTAL (B)	523.507	363.366	802.003
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.199	(0.167)	(13.311)
Less	FINANCIAL EXPENSES (D)		53.987	55.088	56.074
	PROFIT BEFORE/ (LOSS) TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(15.788)	(55.255)	(69.385)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		33.591	34.423	37.420
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(49.379)	(89.678)	(106.805)
Less	TAX (H)		0.878	2.016	(16.223)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(50.257)	(91.694)	(90.582)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(161.669)	(69.975)	20.607
	SHORT PROVISION OF TAX FOR EARLIER YEARS		2.500	0.000	0.000
	BALANCE CARRIED TO THE B/S		(214.426)	(161.669)	(69.975)
	EARNINGS IN FOREIGN CURRENCY
		Export Sales on FOB Value	432.797	274.253	667.646
	TOTAL EARNINGS		432.797	274.253	667.646
	IMPORTS
		Raw Materials	63.042	54.651	143.849
		Stores Material	0.000	0.000	0.318
	TOTAL IMPORTS		63.042	54.651	144.167
	Earnings/ (Loss) Per Share (Rs.)		(5.46)	(9.75)	(9.83)

QUARTERLY RESULTS

(Rs. In Millions)

PARTICULARS	31.03.2012	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	172.900	82.900	169.800	161.100
Total Expenditure	157.400	82.100	154.400	150.400
PBIDT (Excl OI)	15.500	0.800	15.400	10.700
Other Income	2.200	3.600	(1.300)	1.800
Operating Profit	17.700	4.400	14.100	12.500
Interest	21.300	16.300	18.400	17.500
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	(3.600)	(11.900)	(4.300)	(5.000)
Depreciation	8.800	7.400	7.500	7.400
Profit Before Tax	(12.500)	(19.300)	(11.800)	(12.400)
Tax	(24.500)	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	12.000	(19.300)	(11.800)	(12.400)
Extraordinary Items	0.000	0.000	5.100	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	12.000	(19.300)	(6.700)	(12.400)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.95	25.25	11.49
Net Profit Margin (PBT/Sales)	(%)	(9.06)	(24.69)	(13.87)
Return on Total Assets (PBT/Total Assets}	(%)	(8.16)	(15.14)	(15.83)
Return on Investment (ROI) (PBT/Networth)		(2.90)	(1.28)	(0.66)
Debt Equity Ratio (Total Liability/Networth)		40.97	8.78	4.02
Current Ratio (Current Asset/Current Liability)		1.56	1.82	2.51

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

REVIEW OF OPERATIONS

The turnover of the company during the year under report registered a satisfactory growth of more than 54% over the previous year. The company achieved the turnover of Rs.561.700 Millions (P.Y. Rs.363.200 Millions). The company could overcome the negative fallout of the global slowdown.

Despite stiff price competition from China, the top line growth has been achieved due to focused marketing efforts and qualitative edge of the company. The margin on the products continued to remain under pressure. The earning before finance cost for the year has been at Rs.38.200 Millions (P.Y. Loss Rs.0.167 Million).

The earnest efforts in controlling cost and improving efficiency at all levels have borne fruit resulting in reduction in the loss after tax for the year to Rs.5275.700 Millions (P.Y. Loss Rs.91.699 Millions). The cash loss also reduced to Rs.1666.600 Millions (P.Y. Loss Rs.57.276 Millions). The reduction in the loss after tax and cash loss compared to last year has been more than 45% and 70% respectively.

The performance could have been better but for the impact of uncontrollable factors like span of erratic supply of important raw materials during the year, unfavourable change in certain input prices, appreciation of INR against USD and escalating fuel cost. Beside there has been escalating finance cost due to rising interest rates.

The costs continued to remain under stringent monitoring and control. The company‘s efforts are directed towards improving processes, productivity and other operational parameters. All efforts are being made to reduce and control the overheads. Finance cost continued to remain high in view of increasing interest rate and liquidity crunch.

OUTLOOK

The company has been making several chemicals in different dedicated plants. Due to unhealthy price competition from China and the changing scenario in the world chemical market, the company is evaluating to add new products for better utilisation of the idle capacity without entailing new CAPEX. This will improve the top line as well as it will contribute towards the improvement in the overall performance due to economies of scale.

The company has good orders on hand. As more than 80% of the revenue is from export, the performance of the company mainly follows the Global economy trend. Major economies which are now on recovery and revival mode are expected to stabilise in 2011-12. With the stabilization, the companies are now revising their inventory norms from bare minimum to optimum levels which should provide good growth opportunities. Indian market is growing. The company will focus on increasing the local market share.

The company, barring unforeseen circumstances, expects improvement in turnover. The company will continue to focus on cost control at every level to improve the operation efficiency which alongwith the increased operating level and upward revision of product prices is expected to improve the margin.

UNSECURED LOAN

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Fixed Deposits :
From Directors	13.700	11.200
From Others	46.131	17.549
Other Loans
Under Sales Tax Deferral Scheme - 2001	2.090	2.090
Inter Corporate Deposits	72.359	41.068
From Directors	1.213	0.763
TOTAL	135.493	72.670

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY

The company engaged in manufacture of chemical intermediates, heavy organic chemicals and performance chemicals. Unhealthy competition from China and Indian unorganized sector continues to prevail in the industry. India emerged as one of the major source for chemical intermediates. The industry witnessed high degree of uncertainty and slows down following global economy pattern. The industry is dependent on the basic petro-chemicals, prices of which were highly volatile during the year.

OPPORTUNITIES AND THREATS

The company is in the industry since last 37 years. It has a very high degree of operating synergy, economies of scale and high quality standards. The products of the company have diverse uses and applications in several industries ranging from paper, pharmaceutical, agro chemicals, thermal dyes, light stabilizer, aerospace dyes and dye intermediates etc. Besides, the company have loyal cliental base, which is well diversified over the World.

The major threat faced by the company are escalating raw material prices, crude oil prices, increasing interest rate and volatile foreign exchange market.

MARKET AND OUTLOOK

The company’s major market like Europe, Japan and USA are coming out of recession. Market conditions are improving with the revival of economies. The market remained highly price competitive. The costs were under stringent monitoring and control. The company has taken several initiatives like process improvement, lower consumption norms, use of cheaper alternate raw material and fuel. All efforts were made to reduce and control the overheads. Finance cost continued to remain high due to liquidity crunch consequent to repayment of term loan installments and operational performance. Gradual product price increase, improved operating efficiency and stringent control of overheads are expected to improve the overall performance.

Exports constitute more than 80% of the turn-over. Performance of the company hence mainly follows the Global economy trend. There is healthy order book position. Due to interruption in the smooth availability of raw material consequence to the liquidity crunch hampered continues production resulting in escalated production cost.

The rate of flow of orders is encouraging. Production facilities are realigned to meet the demand. The company barring unforeseen circumstances expects to further improve the turn-over and performance. The company continued to focus on cost control at every level to improve the operation efficiency which alongwith the increased operating level and upward revision of product prices is expected to improve the margin.

PERFORMANCE

The company’s major markets like Europe, Japan and USA. These economies are reviving with improvement in market condition. Unhealthy price competition of certain countries continued to affect the market conditions. Turnover of the company for the year rose to Rs.561.700 Millions as against Rs.363.200 Millions in the P.Y. registering increase of 54%.

Several initiatives and steps to increase the operating efficiencies, substitution of cheaper raw materials, control on the costs, alternative sourcing of the raw materials etc. are expected to contribute in improving the performance of the company in the current year.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012

(Rs. in millions)

		Quarter ended Unaudited		Year ended Audited
	Particulars	30.06.12	30.06.11	31.03.12
		(1)	(2)	(1)
1	Income from operations
	a) Net Sales/Income from Operations (Net of excise duty)	81.200	135.400	654.000
	b) Other operating Income	1.700	2.600	14.900
	Total Income from operations (Net)	82.900	138.000	668.900
2	Expenses
	a) Cost of materials consumed	46.300	78.100	374.100
	b) Purchases of stock-in-trade	-	-	-
	c) Changes in inventories of finished goods,	(2.000)	(2.800)	0.700
	work-in-progress and stock-in-trade
	d) Employees benefits expense	12.300	12.300	45.100
	e) Depreciation and amortisation expenses	7.400	7.600	31.600
	f) Other expenses	25.500	30.700	164.600
	Total expenses	89.500	125.900	616.100
3	Profit/(Loss) from operations before other	(6.600)	12.100
	Income and finance costs (1-2)	0.000	0.000	52.800
4	Other Income	3.600	0.000	1.800
5	Profit/(Loss) before finance costs (3+4)	(3.000)	12.100	54.600
6	Finance costs	16.300	11.800	66.400
7	Profit/(Loss) before tax (5-6)	(19.300)	0.300	(11.800)
8	Tax expense	0.000	0.000	22.600
9	Net Profit (+) / Loss (-) after tax (7-8)	(19.300)	0.300	10.800
10	Share of Profit(+)/Loss (-) of associates	0.000	-	-
11	Net Profit (+) / Loss (-) for the period (9+10)	0.000	0.000	10.800
12	Paid up Equity Share Capital	92.000	92.000	92.000
	(Face Value of Rs. 10/- each)
13	Reserve excluding Revaluation Reserves as per Balance Sheet of Previous accounting year.	(83.500)	(74.600)	(64.200)
14	Basic and Diluted Earnings per share (Rs.)	(2.10)	0.03	1.16
	PARTICULARS OF SHAREHOLDING
	1) Public Shareholding
	- Number of shares	2566415	2566515	2566415
	- Percentage of shareholding	27.89%	27.89%	27.89%
	2) Promoters & Promoters group Shareholding
	a) Pledged/Encumbered
	- Number of shares	5551112	5551112	5551112
	- Percentage of shares (as a % of the total	83.67%	83.32%	83.67%
	shareholding of Promoter and Promoter Group)
	- Percentage of shares (as a % of the total	66.33%	60.33%	66.33%
	share capital of the company)
	b) Non-Encumbered
	- Number of shares	1083303	1111553	1083303
	- Percentage of shares (as a % of the total	16.33%	16.68%	16.33%
	shareholding of Promoter and Promoter Group)
	- Percentage of shares (as a % of the total	11.77%	12.08%	11.77%
	share capital of the company)
	SEGMENT REPORTING - GEOGRAPHICAL
1	Segment Revenue
	a. Export Segment	58.500	112.500	531.800
	b. Domestic Segment	23.000	25.300	124.800
	c. Unallocated Revenue	1.400	0.200	12.300
	Total Net Sales/Income from Operations	82.900	138.000	668.900
2	Segment Results Profit (+) / Loss (-) before tax and interest from each segment
	a. Export segment	3.400	17.100	73.500
	b. Domestic segment	0.800	2.400	10.800
	c. Unallocated Revenue	0.200	0.200	1.900
	Total	4.400	19.700	86.200
	d. Unallocated Items
	Less: (i) Interest	16.300	11.800	66.400
	(ii) Depreciation	7.400	7.600	31.600
	Total Profit(+)/Loss(-) Before Tax	(19.300)	0.300	(11.800)

Notes:

1. The Unaudited financial results for the quarter ended 30th June, 2012 have been reviewed by the audit committee and approved by the board of directors at their respective meeting held on 13.08.2012. The statutory auditors of the company have carried out a Limited Review.

2. Deferred tax in accordance with AS 22 will be ascertained and necessary effect will be given in the audited accounts as on 31st March, 2013.

3. The figures of the previous quarter have been regrouped-classified wherever necessary

4. The number of the investors complaints pending at the beginning of the quarter Nil. During this quarter 0 complaints was received. The balance pending NIL at the end of the quarter (excluding disputed /subjudice matters).

5. Note on Segment

1. The company is mainly engaged in manufacturing of chemical intermediates having similar risk and returns constituting a single segment. Revenue from the other activities pursued is insignificant. Operation of the company are classified into two primary geographical segments, namely export and local. This segment have been identified and reported taking into account exchange control regulations, underlying currency risk and the internal financial reporting system.

b. Fixed assets used in the companies business are not identifiable to any particular reportable segment consequently management believes that it is not to practical to provide segment disclosure

Contingent Liabilities not provided for (As on 31.03.2011):

(a) Estimated amount of contracts remaining to be executed on capital accounts (Net of Payments) – 1.847 Millions

(b) In respect of Guarantee given by the Company’s Banker for Central Excise and other purposes – Rs.0.025 Millions

(c) In respect of corporate guarantee given by the company to the bank for Loans borrowed by Indian subsidiary – Rs.29.548 Millions

FIXED ASSETS

• Leasehold Land
• Freehold Land
• Plant and Machinery
• Buildings
• Furniture and Fixtures
• Laboratory Equipments
• Research and Development
• Vehicles

BUSINESS DESCRIPTION

Subject is engaged in the manufacturing and marketing of chemicals intermediates, heavy organic chemicals and performance chemicals. SNCL operates in two segments: Export segment and Local segment. It manufactures and markets nitrobenzene and its downstream derivatives for applications in pharma, agro, dyes, plastic additives and epoxy resin hardeners. Its products include meta amino phenol, butane tetra carboxylic acid and anilic di-sulphonic acid, nitrobenzene, metanilic acid, sodium meta nitrobenzene sulfonic acid and butane 1,2,3,4 tetracarboxylic acid. Its subsidiaries include Anuchem B.V.B.A., Anuchem PTE Limited and Lifestyle Networks Limited. As of March 31, 2010, it had an installed capacity of 3,575 metric tons of organic intermediates and 9,036 metric tons of chemical intermediates. During the fiscal year ended March 31, 2010 (fiscal 2010), it had a production of 1,346 metric tons of organic intermediates and 5,865 metric tons of chemical intermediates. For the fiscal year ended 31 March 2010, subject’s revenues decreased 52% to RS375.7M. Net loss increased 6% to RS107.5M. Revenues reflect a decrease in export segment revenue and lower sales from Local segment. Net loss also reflects an increase in interest on long term debt, higher interest on fixed deposits, the presence of consolidation exchange fluctuation and higher selling and distribution expense.

BOARD OF DIRECTORS

Asit Dhankumar Javeri (Whole Time Directors Chairman of the Board, Managing Director)

Shri. Asit Dhankumar Javeri is Whole Time Directors Chairman of the Board, Managing Director of subject. He holds B.Sc.(Hons), joined the company in January 1985 as Managing Director. Prior to joining the company Shri. A.D. Javeri had experience of 9 years of running chemical industry He has been associated with the company for about 25 years.

Arvind Laxman Apte (Independent Non-Executive Director)

Shri. Arvind Laxman Apte is an Independent Non-Executive Director of subject since 7th August, 1973. He has an experience of Textile Industry and Sugar Industry a period of 45 years. He is Director Sadhana Nitro Chem Limited., Shanudeep Private Limited., Dr. Writers Food Products Private Limited.

Arvind Raoji Doshi (Independent Non-Executive Director)

Shri. Arvind Raoji Doshi is an Independent Non-Executive Direct of subject, since 17th September, 1974. He has an experience in industries like Engineering and Automobiles since 1965. He has received Prestigious Dadabhai Naroji International award for Excellence and Achievement in 1999. Also, he has been awarded Samaj Ratna by Mahamastaka Abhishek Committee 2006. Presently he is acting as Chairman and Managing Director of PAE Limited.

Abhishek A. Javeri (Non-Executive Director)

Shri. Abhishek A. Javeri is Non-Executive Director of subject, since January 24, 2007. He is B.A. in Economics from North Western University, USA, having experience of 3 years.

Priyam S. Jhaveri (Independent Non-Executive Director)

Mr. Priyam S. Jhaveri is an Independent Non-Executive Director of subject. He is a Commerce graduate and having experience in chemical industries of Nanavati Groups of companies. He joined the company as a Director from 11th March, 1996.

Dhirendra Mangaldas Shah (Independent Non-Executive Director)

Shri. Dhirendra Mangaldas Shah is an Independent Non-Executive Directo of subject, since July 29, 2002. He is B.Com and LL.B having experience of 42 years as Advocate - Tax Consultant

Ramesh Amarchand Shroff (Independent Non-Executive Director)

Shri. Ramesh Amarchand Shroff is an Independent Non-Executive Director of subject, since 22nd January, 1985. He is a Law graduate and has an experience of 50 years as Advocate and Solicitors.

Nitin R Jani (Director and Company Secretary)

Shri. Nitin Rameshchandra Jani is Compliance Officer, Company Secretary, Whole Time Director of subject. He has Graduation in Commerce as well as is a member of Institute of Chartered Accountants of India and Institute of Company Secretaries of India. He joined the company in December, 1984. Prior to joining the company he had an experience of 2 years. He has been associated with the company for about 25 years.

PRESS RELEASES

Financial Results for Dec 31, 2011

India, January 09 -- Sadhana Nitro Chem Limited has informed BSE about the Financial Results for the Period ended December 31, 2011.

Disclosures under Reg. 8A(4) of SEBI (SAST) Regulations, 1997

India, November 25 -- Sadhana Nitro Chem Limited has submitted the disclosure under Regulation 8A(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 to BSEDate of Reporting : September 30, 2011Name of the Company : Sadhana Nitro Chem Limited Total no of outstanding shares of the Company : 9200830Name of the Entity: Manekchand Panachand Trading Investment Company Pvt Limited Details of Transaction Date of Transaction : December 13, 2008Number of Shares pledged : 5551112Aggregate details after the transaction Total no of shares held by the entity in the company: 5960611Total No of shares pledged : 5551112% of total shares pledged to total no of shares held by the entity in the Company : 93.13%% of shares pledged to total no of outstanding shares of the Company : 60.33%

EGM on Oct 25, 2011

India, October 01 -- Sadhana Nitro Chem Limited has informed BSE that the Extra Ordinary General Meeting (EGM) of the Company will be held on September 25, 2011.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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.54.04
UK Pound	1	Rs.81.80
Euro	1	Rs.71.41

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
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	3
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.