Sadhana Nitro Chem Rights Issue

Sadhana Nitro Chem Ltd has informed that the Board of Directors of the Company at its meeting held on December 07, 2007, has decided the following:

1. Increase Authorised Capital from Rs 5,00,00,000/- (Rupees Five Crores) divided into 40,00,000/- (Forty Lakhs) Equity Shares of Rs 10/- (Rupees Ten) each and 10,00,000 (Ten Lakhs) Unclassified Shares of Rs 10/- (Rupees Ten) each to Rs 10,00,00,000/- (Rupees Ten Crores) divided into 10000000 (One Crore) Equity Shares of Rs 10/- (Rupees Ten) each and 1000000 (Ten Lakhs) Unclassified Shares of Rs 10/- (Rupee Ten) each.

2. Subject to necessary approvals of the General Body Meeting and all other appropriate authorities, to issue and allot 7159079 Equity Shares of Rs 10/- each at Rs 10/- per Equity Share in such manner and at such time as the Board of Directors may in their absolute discretion think fit. The issue would be subject to the following principal terms and conditions:

a. 7159079 New equity shares of Rs 10/- each at Rs 10/- per Equity Share be offered on Rights basis in the ratio of 7 (Seven) New Equity Shares for every 2 (Two) existing Equity Shares to the existing equity shareholders / beneficial owners of the Company on such date ("Record Date") to be fixed by the Board and in such manner as may be decided by the Board.

b. For the purpose of giving effect to the above, fractional entitlement, if any, shall be rounded off to the next higher integer and if the above process of rounding off results in the actual allocation / allotment being higher than the shares offered in the terms of the rights issue, the Company may allot additional shares, upto a maximum of 1% of the size of the issue.

c. The Equity Shares issued in pursuance of this resolution shall rank pari passu in all respects, including dividend declared, if any, for the concerned financial year, with the existing fully paid-up equity shares in the equity share capital of the Company.

d. The purpose of the issue is to meet various business requirements of the Company, including augmentation of the working capital resources and meeting the issue expenses.

In view of the above, an Extraordinary General Meeting of the Members of the Company is proposed to be held on the January 22, 2008.