NATURE OF THE BUSINESS : The Company designs, manufactures and markets paper stationery products exercise note books,

long books, note pads, scrap books, drawing books, graph books - for students of all ages, as well as office/ corporate stationery products and printing, writing & packaging paper. Company has over 190 varieties of paper stationery products under the brand Sundaram which are very popular among the student communities and enjoy very high reputation in the market for its superb quality and durability. BUSINESS HISTORY : The Company was incorporated on 13th March, 1995 with the Registrar of Companies, Maharashtra, at Mumbai and the Certificate of Commencement of Business was obtained on 10th April, 1995. Shri Amrutbhai P. Shah and Shri Shantilal P. Shah promoted the Company. The Company took over the partnership firm viz. Starline Industries engaged in the manufacture of exercise note books, account books and other paper stationery products, with its assets, bank liabilities and business and the said promoters were the partners of this partnership firm. The purchase consideration was fixed at Rs. 42,20,000/and the same was paid by the Company through the issue of 4,22,000 Equity Shares of the Company of Rs. 10/- each, fully paid up, at par.The Company made its maiden public offer of 1.8 million Equity Shares of Rs. 10/- each for cash at par aggregating to Rs. 18 million on 23rdFebruary, 1996 which was fully subscribed and obtained the listing of its Equity Shares on Pune and Ahmedabad Stock Exchanges. In July 2005 the Equity Shares of the Company were also listed on BSE. At the start of the Company in the year 1995, the Company had a capacity of 5 tons per day of conversion of paper into paper stationery, which was increased to 20 tons per day in 1998 with the addition of two German made machines, to 50 tons per day in 2001 with the addition of one more unit of manufacture, and to 60 tons per day in 2003 with the addition of one more unit of manufacture. This therefore, is the current capacity of conversion of paper into paper stationery of the Company .

Sundarams Mission statement has evolved after deep thought and in consultation with the members of sundaram company. The Mission Statement as defined below reflects the fabric and character of sundaram and integrates in the fulfillment of sundarams Vission.

To carve out a niche in the global arena of advanced Information Technology & enhance our brand image. To continue to create and deploy the finest talent in our quest for further expanding the frontiers of Educational and General books for Children. To provide international quality student and office stationery. To achieve rapid and effective spread of knowledge through the the power of Information

Technology and bring home its wonder to children through electronic media. To share our vast reservoir of experience for education & knowledge enrichment in the field of publication.

1. We behave ethically, acting with integrity and respect. 2. We work with our clients to contribute to their success. 3. We care for our colleagues, encouraging their development, engagement and achievement.

4. We share knowledge with our colleagues to deliver professional excellence. 5. We act in a socially and environmentally responsible manner, committed to high standards of safe performance. The school paper stationery market in India is about Rs. 9,000/- crore annually and little over 95% of the manufacturing is within the unorganised sector, which is the main reason for the region-wise fragmentation of the market. This is to say that there are hardly any nationally available branded paper stationery products, though the branded products do exist but they are well known in their regions only. The office paper stationery market is estimated to be around Rs. 5,000/- crore annually and about 90% of this is within the unorganised sector.

The school and office paper stationery markets are growing at 15% p.a. and it is estimated to grow even higher on account of the consolidation process that has begun within the industry as a whole. Sundaram markets its products in Maharashtra, Gujarat and Goa and presently commands 15% of the market share among the organised sector players and by 2010-11 would grow to command 25% of the market share of these regions. The Company has undertaken the massive expansion plans of doubling its manufacturing capacities from 60 tons per day to 120 tons per day by 201011 and to expand its existing dealer/retailer network from 20,000 to 40,000 in Maharashtra, from 1,000 to 12,000 in Gujarat and to establish the said network in the States of Madhya Pradesh and Chhattisgarh in next two years. The paper stationery business relates directly to the rate of literacy, which is currently about 61% in India. This means that there is lot to achieve in this regard. Since independence, education has been visualised in the government policies as precursor to national development as well as to better quality of life. In the education policy of 1968 it was envisaged that public expenditure on education as a proportion of GDP should touch 6%. However, it has not gone beyond 3.9% till date. The 11th FYP stresses the urgency on this front because the 86th Amendment to the Indian Constitution made free and compulsory education, a fundamental right for all children in the age group of 6-14 years. In the present era of globalisation, liberalization and privatisation, education is viewed not only as an input to empowerment and social justice, but also as being basic to the very survival of individuals and nations. This is where the Sharva Siksha Abhiyan {SSA} as an important objective of National Education Policy {NEP} has addressed the need of providing elementary education and the surveys show that 90% of rural population was served by primary schools in 2002-03. Quality of education in terms of better educational attainment levels is a thrust area for the next phase of SSA in the 11th FYP. All this augurs well for the Company's business and its growth potential. Emphasis on education brings with it the increasing need for producing and supplying various learning materials and paper stationery products. There are more than 600 pulp & paper mills in India, the total annual turnover is around Rs. 15,000/- crore and between 2003-04 and 2007-08 this industry grew at a CAGR of 9% and is estimated to grow at 8% over next five years. The average global per capita consumption of paper is 52 klgs; while the Indian average is 6 klgs. The continued economic reforms and emphasis on eradication of illiteracy will fuel the growth in consumption of paper. The Company presently produces 30 tons of paper per day and expects to double this capacity in one year.