News

Full Year Financial Statement And Dividend Announcement For The Period Ended 31/03/2004

BackAug 16, 2004

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3),

HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the

corresponding period of the immediately preceding financial year.

The Board of Directors of Meghmani Organics Limited ("MOL" or "the Company" or "the Issuer") wishes to make the announcement of the Company's results for the financial year ended 31 March, 2004 as follows:

	Company
	12 months ended 31.03.2004	12 months ended 31.03.2003	% Increase / (Decrease)
	Rs '000	Rs '000

Revenue	2,440,319	2,024,034	20.6
Cost of sales	(1,793,153)	(1,426,667)	25.7

Gross Profit	647,166	597,367	8.3
Other operating income	66,287	107,751	(38.5)
Distribution costs	(184,465)	(261,801)	(29.5)
Administrative expenses	(92,163)	(78,826)	16.9
Other operating expenses	(4,509)	(44,957)	(90.0)

Profit from operations	432,316	319,534	35.3
Finance costs	(60,896)	(43,395)	40.3
Income from investments	30	23	30.4

Profit before income tax	371,450	276,162	34.5
Income tax	(76,454)	(59,655)	28.2
Profit after income tax	294,996	216,507	36.3

1(a)(ii) The net profit attributable to the shareholders includes the following charges/(credits):

	Company
	12 months ended 31.03.2004	12 months ended 31.03.2003	% Increase / (Decrease)
	Rs '000	Rs '000

Allowance for doubtful trade receivables	-	36,712	(100.0)
Bad trade receivables written off	-	1,565	(100.0)
Depreciation expense	94,423	78,134	20.8
Foreign currency exchange adjustment loss	4,737	5,751	(17.6)
Interest expense	44,981	35,137	28.0
Interest income	(977)	(884)	10.5
Loss on disposal of plant and equipment	740	929	(20.3)
Research and development expenditure	7,969	5,781	37.8
Under-provision of current tax in respect of prior years	2,855	-	n/m

note: n.m. - not meaningful

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement

as at the end of the immediately preceding financial year.

	Company
	As at 31.03.2004	As at 31.03.2003
	Rs '000	Rs '000

ASSETS
Current assets
Cash & bank balances	117,254	67,881
Trade receivables	1,184,627	847,570
Other receivables and prepayments	173,422	184,755
Inventories	402,157	305,549
Income tax recoverable	929	-
Total current assets	1,878,389	1,405,755

Non - current assets
Property, plant and equipment	943,780	765,141
Available for sale investments	4,546	2,146
Total non - current assets	948,326	767,287

Total assets	2,826,715	2,173,042

LIABILITIES AND EQUITY
Current liabilities
Bank borrowings	674,181	442,428
Trade payables	305,792	329,851
Other payables	89,034	83,501
Loans from related parties (unsecured)	-	44,350
Income tax payable	-	5,519
Total current liabilities	1,069,007	905,649

Non - current liabilities
Bank borrowings	221,550	-
Deferred tax liabilities	82,336	67,385
Total non - current liabilities	303,886	67,385

Capital & reserves
Issued capital	165,930	165,930
Share premium	229,390	229,390
General reserve	364,130	324,130
Capital redemption reserve	18,433	18,433
Dividend reserve	44,925	41,182
Accumulated profits	631,014	420,943
Total equity	1,453,822	1,200,008

Total liabilities and equity	2,826,715	2,173,042

1(b)(ii) Aggregate amount of group's borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 31.03.2004

As at 31.03.2003

Secured	Unsecured	Secured	Unsecured

Rs '000 579,565	Rs '000 94,616	Rs '000 442,428	Rs '000 44,350

Amount repayable after one year

As at 31.03.2004

As at 31.03.2003

Secured	Unsecured	Secured	Unsecured

Rs '000 221,550	Rs '000 -	Rs '000 -	Rs '000 -

Details of any collateral

The details of bank borrowings from various banks and securities are shown below:

Bank borrowings from consortium banks

As at March 31, 2004, bank borrowings amounting to Rs. 606,336,000 are secured by :

(a) first ranking pari passu charge in favour of a consortium of banks by way of hypothecation on the Company's trade receivables and inventories ; and
(b) first ranking pari passu charge in favour of a consortium of banks by way of hypothecation and/or legal mortgage over certain of Company's present and future properties, plant and equipment .

As at March 31, 2003, bank borrowings amounting to Rs. 441,017,000 are secured by :

a) first ranking pari passu charge in favour of a consortium of banks by way of hypothecation on the Company's trade receivables and inventories ;
b) first ranking pari passu charge in favour of a consortium of banks by way of hypothecation and/or legal mortgage over certain of Company's present and future properties, plant and equipment ; and
c) personal guarantees by certain directors.

Bank borrowings from other banks

Bank A

As at March 31, 2004, bank borrowings amounting to Rs. 17,849,000 are secured by :

a) first ranking pari passu charge by way of hypothecation on the Company's current assets; and
b) first ranking pari passu charge by way of hypothecation and/or legal mortgage over certain of Company's present and future properties, plant and equipment.

Bank B

As at March 31, 2004, bank borrowings amounting to Rs. 94,616,000 are unsecured and Rs. 142,687,000 are secured by :

a) second charge by way of hypothecation on the Company's receivables and inventories ;
b) second charge by way of hypothecation over certain of Company's present and future, plant and equipment; and
c) personal guarantees by certain directors.

Bank C

As at March 31, 2004, bank borrowings amounting to Rs. 32,664,000 are secured by first ranking pari passu charge by way of hypothecation on the Company's plant and machinery purchased after October 9, 2003.

As at March 31, 2004, motor vehicle loans amounting to Rs 1,579,000 (March 31, 2003 : Rs 1,411,000) are secured by hypothecation of the respective motor vehicles purchased.

As at March 31, 2004, the Company has unutilized bank credit facilities amounting to Rs. 155,800,000 (March 31, 2003: Rs. 337,600,000).

1(c) A cash flow statement (for the group), together with a comparative statement for

the corresponding period of the immediately preceding financial year.

	Company
	12 months ended	12 months ended
	31.03.2004	31.03.2003
	Rs '000	Rs '000

Cash flows from operating activities
Profit from operations	432,316	319,534
Adjustments for :
Depreciation of property, plant and equipment	94,423	78,134
Loss on disposal of property, plant and equipment	740	929
Operating cash flows before movements in working capital	*527,479*	*398,597*
Trade receivables	(337,057)	(12,917)
Other receivables and prepayments	11,333	(8,923)
Inventories	(96,608)	(93,115)
Trade payables	(24,059)	65,346
Bills payables	104,256	(22,187)
Other payables	5,533	18,758
Cash generated from operations	*190,877*	*345,559*
Income taxes paid	(67,951)	(92,407)
Interest and finance charges paid	(60,896)	(43,395)
Net cash from operating activities	*62,030*	*209,757*
Cash flows from investing activities:
Purchase of property, plant & equipments	(275,974)	(190,766)
Purchase of available-for-sale investments	(2,400)	(300)
Proceeds on disposal of property, plant & equipment	2,172	2,531
Investment income received	30	23
Net cash used in investing activities	*(276,172)*	*(188,512)*
Cash flows from financing activities:
Dividend paid	(36,505)	(16,753)
Tax on dividends paid	(4,677)	(6,770)
Proceeds from bank borrowings, net of repayments	377,086	(41,053)
Proceeds from other borrowings, net of repayments	(44,350)	21,550
Net cash (used in)from financing activities	*291,554*	*(43,026)*
*Net (decrease) increase in cash and cash equivalents*	*77,412*	*(21,781)*
Cash and cash equivalents at beginning of year	39,842	61,623
*Cash and cash equivalents at end of year*	*117,254*	*39,842*

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or

(ii) changes in equity other than those arising from capitalisation issues and
distributions to shareholders, together with a comparative statement for the
corresponding period of the immediately preceding financial year.

	Issued capital	Share premium	General reserve	Capital redemption reserve	Dividend reserve	Accumulated Profits	Total
	Rs'000	Rs'000	Rs'000	Rs'000	Rs'000	Rs'000	Rs'000
Balance as at April 1, 2002	165,930	229,390	233,830	18,433	-	335,918	983,501
Net profit for the year	-	-	-	-	-	216,507	216,507
Proposed dividend	-	-	-	-	41,182	(41,182)	-
Transfer to (from) reserve	-	-	90,300	-	-	(90,300)	-
Balance as at March 31,2003	165,930	229,390	324,130	18,433	41,182	420,943	1,200,008
Net profit for the year	-	-	-	-	-	294,996	294,996
Transfer to (from) reserve	-	-	40,000	-	-	(40,000)	-
Proposed dividends	-	-	-	-	44,925	(44,925)	-
Final dividend paid	-	-	-	-	(41,182)	-	(41,182)
Balance as at March 31,2004	165,930	229,390	364,130	18,433	44,925	631,014	1,453,822

1(d)(ii) Details of any changes in the company's share capital arising from rights issue,

bonus issue, share buy-backs, exercise of share options or warrants, conversion of
other issues of equity securities, issue of shares for cash or as consideration for
acquisition or for any other purpose since the end of the previous period reported
on. State also the number of shares that may be issued on conversion of all the
outstanding convertibles as at the end of the current financial period reported on
and as at the end of the corresponding period of the immediately preceding
financial year.

Since the end of the previous financial year, pursuant to a resolution passed in an extraordinary meeting held on March 30, 2004, the shareholders of the Company approved the sub-division of every one ordinary share of Rs 10 each in the authorized and issued share capital of the Company into 10 ordinary shares of Rs 1 each. Consequently, the number of authorised shares increased from 37,000,000 to 370,000,000 and the number of issued and fully paid up ordinary shares increased from 16,593,000 to 165,930,000.

2. Whether the figures have been audited or reviewed and in accordance with

which auditing standard or practice.

These figures have not been audited or reviewed by the Company's auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including

any qualifications or emphasis of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the

issuer's most recently audited annual financial statements have been applied.

The Company's financial statements have been prepared from those accounting records maintained under General Accepted Accounting Practices in India ('Indian GAAP") and adjusted to comply, in all material respects, with the requirements of the International Financial Reporting Standards ("IFRS").

Previously, the Company prepared its financial statements in accordance with International Accounting Standards ("IAS"). The transition from IAS to IFRS did not result in any significant changes in accounting policies and figures presented in the financial statements for the financial year ended March 31, 2003.

5. If there are any changes in the accounting policies and methods of computation,

including any required by an accounting standard, what has changed, as well as
the reasons for, and the effect of, the change.

Please refer to Point No. 4 above.

6. Earnings per ordinary share of the group for the current financial period reported

on and the corresponding period of the immediately preceding financial year,
after deducting any provision for preference dividends.

	Company
	12 months ended	12 months ended
	31.03.2004	31.03.2003
(a) Based on weighted average number of ordinary shares in issue (Rs)	1.78	1.30
(b) On a fully diluted basis (detailing any adjustments made to the earnings) (Rs)	1.78	1.30

For comparative purposes, the basic and diluted earnings per ordinary share for the financial year ended March 31, 2003 have been restated and computed based on the profit after income tax of Rs 216,507,000 divided by 165,930,000 ordinary shares of Rs 1 each after taking into account the effect of the sub-division of every one ordinary share of Rs 10 each into 10 ordinary shares of Rs 1 each as disclosed in Point No. 1(d)(ii) above.

There is no dilution as no share options were granted during the financial year.

7. Net asset value (for the issuer and group) per ordinary share based on issued share

capital of the issuer at the end of the:-

(a) current financial period reported on; and
(b) immediately preceding financial year.

	Company
	As at 31.03.2004	As at 31.03.2003
Net assets value per ordinary share based on issued share capital at the end of the year reported in Rs	8.76	7.23

For comparative purposes, the net assets value per ordinary share for the financial year ended March 31, 2003 have been restated and computed based on the net assets value of Rs 1,200,008,000 divided by 165,930,000 ordinary shares of Rs 1 each after taking into account the effect of the sub-division of every one ordinary share of Rs 10 each into 10 ordinary shares of Rs 1 each as disclosed in point 1(d)(ii) above

8. A review of the performance of the group, to the extent necessary for a reasonable

understanding of the group's business. It must include a discussion of the
following:-

(a) any significant factors that affected the turnover, costs, and earnings of the
group for the current financial period reported on, including (where applicable)
seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or
liabilities of the group during the current financial period reported on.

Revenue

Our revenue is principally derived from the manufacture and sale of our Pigments and Agrochemicals products. We also derive a small portion of our revenue from exporting trading of dyes, dyes intermediates and Agrochemicals products that are not manufactured by us.

During the financial year, sales revenue increased by Rs 416.3 million (or 20.6%) from Rs 2,024.0 million in FY2003 to Rs 2,440.3 million in FY2004. The Company has achieved 71% of its revenue from export activities, which increased by 18.0% from Rs 1,468.5 million in FY 2003 to Rs 1,733.2 million in FY 2004.

The increase in export sales was due to increase in exports of CPC and Beta Blue manufactured by the Pigment Panoli division, which was converted into 100% Export Oriented Unit (EOU). The long-term contracts for manufacturing of Agrochemicals entered into with MNCs also contributed to overall higher export sales.

Gross Profit

Gross profit increased by Rs 49.8 million (or 8.3%) from Rs 597.4 million to Rs 647.2 million. The gross profit %, however, declined from 29.5% in FY 2003 to 26.5% in FY 2004 due mainly to:

Pressure on sales price of Pigment Green-7 and Acephate Technical Cypermethric Acid Chloride (CMAC) , Cypermethrin and Alpha Cypermethrin.
Effect of Exchange Rate Difference on depreciation of US $
Increase in Raw Material cost of Acephate Technical Cypermethric Acid Chloride (CMAC) , Cypermethrin and Imdiachloprid.

Other Operating Income

Other operating income comprises mainly export benefits such as Duty Entitlement Pass Book ("DEPB") and Duty drawback. DEPB is a government export incentive and represents a credit entitlement which can be used to offset against custom duties payable. Only products falling within a pre-specified list are eligible for DEPB. Duty drawback is an alternative export scheme to the DEPB. Under the duty drawback scheme, the Indian Government provides cash incentives for exports, calculated as a percentage of the FOB value of the export item, which is currently 3%.

Despite an increase in exports, the Company's export benefits decreased by Rs 40.6 million (or 38.6%) mainly due to a reduction in DEPB. This was mainly due to conversion of our Panoli pigment plant into an Export Oriented Unit ("EOU") and reduction in DEPB rates. As an approved EOU, our Panoli plant benefited from certain exemptions from import duties, excise duties and income tax but no longer qualifies for DEPB.

Distribution , Administrative and Other Operating Expenses

Distribution costs decreased by Rs 77.3 million (or 29.5%) mainly due to lower sales commission expenses arising from a change in the Company's export policy to eliminate intermediaries and to sell directly to customers.

Administrative expenses increased by Rs 13.3 million (or 16.9%) mainly due to salary increments, increase in traveling expenses as a result of more frequent overseas marketing trips, and increase in insurance expenses corresponding to an increased asset base insured.

Other operating expenses decreased by Rs 40.4 million (or 90.0%) mainly due to higher allowance for doubtful trade receivables and bad trade receivables written off in the previous financial year. Slower collections of receivables in FY 2003 were mainly due to shorter monsoon season which affected the harvest of the Indian farming community for the Agrochemicals business.

Balance sheet

Trade receivables

Trade receivables increased by Rs. 337.1 million (or 39.8%) mainly due to increase in revenue by 20.6%, extension of credit given to Pigments customers and seasonality of agrochemicals business where recovery of debts is dependent on the monsoon and climate conditions.

Inventories

Inventories increased by Rs. 96.6 million (or 31.6%) mainly due to raw mateiral build up in anticipation of contract with a new Agrochemicals customer, inventory build-up for both Agrochemicals and Pigments products in anticipation of higher market demand, as well as increased inventory holdings of Pigments products at warehouses in Belgium and Uruguay to facilitate direct sales to end customers in lieu of sales through intermediaries for savings in sales commission.

Property, plant and equipment

Fixed assets increased by Rs. 178.6 million (or 23.3%) due to expansion of production capacity for the following plants and/or products:

Panoli: CPC - Hysol P, Beta Blue, Blue 16 and Blue 69
Chharodi: Permethtrin
Vatva: Additives

Bank Borrowings

Bank borrowings (current and non - current) increased by Rs. 453.3 million (or 102.4%) mainly due to financing of higher working capital requirements and the purchase of additional plant, machinery and equipment for the expansion of production capacity for Pigment and Agrochemical products.

Cash flow statement

During the financial year the company has generated positive cash flow of Rs. 62 million from operating activities and is expected to have sufficient cash flow to meet its working capital requirement in the next financial year.

Cash Flow from Operating activities :-

Reduction in cash flow was due to increase in trade payables and inventories as explained herein above.

Cash Flow from investing activities :-

Reduction in Cash flow due to substantial expansion of production capacity of existing as well as new products.

Cash Flow from financing activities :-

Increase in cash flow due to increase in working capital requirements and term loan for capital expansion.

However over all cash flow was positive because of increase in cash profit from operation and increase in bank borrowings.

9. Where a forecast, or a prospect statement, has been previously disclosed to

shareholders, any variance between it and the actual results.

Not applicable.

10. A commentary at the date of the announcement of the significant trends and

competitive conditions of the industry in which the group operates and any
known factors or events that may affect the group in the next reporting period
and the next 12 months.

Pigments

Demand for Pigment is growing steadily, driven primarily by the continuous growth in key market areas like ink, Paints and Plastics. With the high quality manufacturing in India more and more companies from developed countries are outsourcing either by having tie-ups or through contracts. With this shift of manufacturing base to India more consumers in regions like US, Europe, Central & South America, Japan are also shifting for direct supplies from India. Further with the strong emphasis on development the domestic demand that is low is bound to increase in areas like Paints & Plastics. With increasing usage of ink jet, web offset printing, the Indian ink industry itself will consume more Pigments in coming years.

We also expect global competition in the Pigments market to increase, particularly between Pigments manufacturers in India and the PRC. With WTO agreement the Chinese price is expected to be in line with Indian Price and the difference in quality will make Indian Pigments more competitive.

Agrochemicals

Sustained economic growth in India in recent years has led to increased awareness in usage of Pesticides among farmers. Decreasing dependency of rain irrigation is also resulting in more cropping area and there by increasing the consumption of pesticides.

As like Pigments industry, we are also witnessing a trend amongst manufacturers in developed economies to reduce their production of Agrochemical products within such developed countries, as a result of higher costs of production as compared with developing countries. These manufacturers may outsource to Indian or PRC manufacturers or may set up or acquire captive plants in India and PRC. Such a trend would create opportunities for us in increasing our contract manufacturing projects. This view is further strengthened by implementation of TRIPS and GATT by the Indian Government by 2005. The patent holders will have confidence to shift the production to India after implementation in 2005. Our company with strong technical capabilities will be looking out to produce such patented molecules in future.

The proposed reforms in farm subsidies in developed nations are to be implemented in the medium to long term. We expect that farmers in such developed countries will seek to compensate for the loss in subsidies by reducing costs of inputs, which may lead to their increased demand for Agrochemical products from countries like India. Such a development would again create opportunities for greater export growth of our Agrochemical business.

Also Generic molecules and molecules which will be out of patent in near future are the focus of our company. These molecules produced at competitive cost can immediately take over the costly patented molecules when they go off patent.

Trend Information

The prices of our Pigment products have been relatively stable in FY2001, FY2002 and FY2003. The prices of our Agrochemical products have however experienced a downward trend in FY2001, FY2002 and FY2003, with average prices of our Agrochemical products decreasing by approximately 11.6% from FY 2001 to FY 2002 and approximately 5.4% from FY 2002 to FY 2003. Prices in 2004 are in line with the 2003 year and recently in last few months the prices are firming up both in Pigments and Agro Chemicals due to increasing demand and overall slight increase in cost of production of raw materials. We expect future prices for our Pigments and Agrochemical products to remain stable and slightly above the prices prevailing in 2003.

We have not experienced any material volatility in the prices of our main raw materials. We do not expect any material volatility in the prices of our main raw materials in the near future.

Effect of increase in crude oil prices

Some of our raw materials we use in our manufacturing processes are petroleum based but they are not derived directly. So the price hike of the crude oil will only affect our raw material prices marginally.

Historically, the company was successful in passing the increase in raw material prices to the customers. This year too, the company has already started the process and has informed the customers about the price increase of its products due to price increase of its raw material.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? Yes

Name of Dividend	Interim
Dividend Type	Cash
Dividend Amount per Share (in cents)	Rs 0.24 per ordinary share (tax not applicable)
Optional:- Dividend Rate (in %)
Par value of shares	Rs 1
Tax Rate

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? Yes

Name of Dividend	Final
Dividend Type	Cash
Dividend Amount per Share (in cents)	Rs 0.22 per ordinary share (tax not applicable)
Optional:- Dividend Rate (in %)
Par value of shares	Rs 1
Tax Rate

(c) Date payable

The interim dividend was paid on July 8, 2004

(d) Books closure date

July 8, 2004

12. If no dividend has been declared/recommended, a statement to that effect.

Not applicable.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the

group) in the form presented in the issuer's most recently audited annual financial
statements, with comparative information for the immediately preceding year.

a) Business segment

Financial year ended March 31, 2004:

	Pigments	Agro chemicals	Others	Eliminations	Total
	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000

Revenue:
External sales	1,176,754	1,214,392	49,173	-	2,440,319
Inter-segment sales	110,509	14,512	-	(125,021)	-
Total revenue	1,287,263	1,228,904	49,173	(125,021)	2,440,319

Results:
Segment results	254,216	231,250	(1,636)	-	483,830
Unallocated expenses					(51,514)
Profit from operations					432,316
Finance costs	(24,121)	(36,285)	(490)	-	(60,896)
Income from investment	30	-	-	-	30
Profit before income tax					371,450
Income Tax					(76,454)
Profit after income tax					294,996

	Pigments	Agro chemicals	Others	Total
	Rs '000	Rs '000	Rs '000	Rs '000

Other information:
Capital additions	168,993	65,328	41,653	275,974
Depreciation	(52,421)	(38,490)	(3,512)	(94,423)


Balance Sheet:
Segment assets	1,423,458	1,314,653	31,842	2,769,953
Unallocated corporate assets				56,762
Total assets				2,826,715

Segment liabilities	445,520	836,615	8,422	1,290,557
Unallocated corporate liabilities				82,336
Total liabilities				1,372,893

Financial year ended March 31, 2003:

	Pigments	Agro chemicals	Others	Eliminations	Total
	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000


Revenue:
External sales	1,064,144	868,245	91,645	-	2,024,034
Inter-segment sales	70,665	6	-	(70,671)	-
Total revenue	1,134,809	868,251	91,645	(70,671)	2,024,034

Results:
Segment results	203,630	157,489	582	-	361,701
Unallocated expenses					(42,167)
Profit from operations					319,534
Finance costs	(11,812)	(30,986)	(597)	-	(43,395)
Income from investments	23	-	-	-	23
Profit before income tax					276,162
Income Tax					(59,655)
Profit after income tax					216,507

	Pigments	Agro chemicals	Others	Total
	Rs '000	Rs '000	Rs '000	Rs '000

Other information:
Capital additions	73,901	57,787	59,078	190,766
Depreciation and amortisation	41,028	33,834	3,272	78,134


Balance Sheet:
Segment assets	1,048,830	1,032,906	34,686	2,116,422
Unallocated corporate assets				56,620
Total assets				2,173,042

Segment liabilities	350,342	533,384	16,404	900,130
Unallocated corporate liabilities				72,904
Total liabilities				973,034

(b) Geographical Segment

Segment revenue is analysed based on the location of customers regardless of where the goods are produced.

The following provides an analysis of the Company's sales by geographical markets:

	2004	2003
	Rs '000	Rs '000

Africa	82,455	62,694
Asia	440,523	159,507
Australia	80,213	92,002
Europe	544,374	351,874
India	707,089	555,549
North America	419,606	581,494
South America	166,059	220,914
	2,440,319	2,024,034

14. In the review of performance, the factors leading to any material changes in

contributions to turnover and earnings by the business or geographical segments.

During the financial year, sales revenue increased by Rs 416.3 million (or 20.6%) from Rs 2,024 million in FY2003 to Rs 2,440.3 million in FY2004. Out of total revenue of Rs. 2,440.3 million, the pigment division has contributed Rs. 1,176.8 million (or 48.2%) and agrochemicals Rs. 1,214.4 million (or 49.8%). The Company has achieved 71% of its revenue from export activities and balance from domestic activities.

For further detail, please refer Point No. 8 above.

15. A breakdown of sales.

Not applicable, as this being the first announcement of the Company

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest

full year and its previous full year.

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)