MIRA INFORM REPORT

Report Date :

18.02.2011

IDENTIFICATION DETAILS

Name :	ARIES AGRO LIMITED (CN)
Registered Office :	Aries House, Plot No. 24, Deonar Govandi East, Mumbai-400043, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.11.1969
Com. Reg. No.:	11-014465
CIN No.: [Company Identification No.]	L99999MH1969PLC014465
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19087F
PAN No.: [Permanent Account No.]	AAACA5035G
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of micronutrients and other nutritional products for plants and animals.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 4200000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION DECLINED BY

Name :	Mr. G. Kannan
Designation :	Accounts Manager
Contact No.:	91-22-25564052
Date :	17.02.2011

LOCATIONS

Registered Office :	Aries House, Plot No. 24, Deonar Govandi East, Mumbai-400043, Maharashtra, India
Tel. No.:	91-22-25564052/53
Fax No.:	91-22-25564054/25502753
E-Mail :	ariesagro@ariesagro.com
Website :	http://www.ariesagro.com
Factory :	Located At: Mumbai Bangalore Hyderabad Kolkata Sanand Lucknow Sharjah, UAE
Branches :	Located At: Ahmedabad, Gujarat Bangalore, Karnataka Bellary, Karnataka Bhubaneshwar, Orissa Coimbatore, Tamil Nadu Ghaziabad, Uttar Pradesh Guwahati, Assam Hissar, Haryana Hyderabad, Andhra Pradesh Indore, Madhya Pradesh Jaipur, Rajasthan Jalandhar, Punjab Jodhpur, Rajasthan Kolkata, West Bengal Lucknow, Uttar Pradesh Nagpur, Maharashtra Nashik, Maharashtra Nipani, Karnataka Patna, Bihar Raipur, Chhatisgarh Ranchi, Jharkhand, Rudrapur, Uttaranchal Solapur, Maharashtra Sriganganagar, Rajasthan

DIRECTORS

As on 31.03.2010

Name :	Dr. Jimmy Mirchandani
Designation :	Chairman and Managing Director
Date of Appointment	15.01.1976
Name :	Dr. Rahul Mirchandani
Designation :	Executive Director
Date of Appointment	02.02.1994
Name :	Dr. D. S. Jadhav
Designation :	Director
Date of Appointment	03.03.1995
Name :	Prof. R. S. S. Mani
Designation :	Director
Date of Appointment	16.08.2004
Name :	Mr. Akshay Mirchandani
Designation :	Director
Date of Appointment	05.03.2009
Name :	Mr. Chakradhar Bharat Chhaya
Designation :	Additional Director
Date of Appointment	29.10.2009

KEY EXECUTIVES

Name :	Mr. S. Ramamurthy
Designation :	Chief Financial Officer
Name :	Mr. Qaiser P. Ansari
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6,844,926	52.64
Sub Total	6,844,926	52.64
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6,844,926	52.64
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	900,896	6.93
Foreign Institutional Investors	458,876	3.53
Sub Total	1,359,772	10.46
(2) Non-Institutions
Bodies Corporate	1,316,329	10.12
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2,464,810	18.95
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	849,434	6.53
Any Others (Specify)	169,068	1.30
Non Resident Indians	144,198	1.11
Trusts	1,000	0.01
Clearing Members	23,870	0.18
Sub Total	4,799,641	36.91
Total Public shareholding (B)	6,159,413	47.36
Total (A)+(B)	13,004,339	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of micronutrients and other nutritional products for plants and animals.

Products :

Product Description	ITC Code
Micronutrient Fertilizers	310500
Feed Supplements	230200
Other Plant Nutrients	2528.9020
Other Plant Nutrients	2821.5990
Other Plant Nutrients	2833.2990
Appliances for Agricultural or Horticultural Use	084248100
Insecticides and Pesticides	380810
Other Plant Nutrients	2503.0090
Other Plant Nutrients	2817.0010
Other Plant Nutrients	2827.3990
Other Plant Nutrients	2840.1900

PRODUCTION STATUS AS ON 31.03.2010

Installed Capacity	84600 Metric Tonnes
Actual Production	35647 Metric Tonnes

GENERAL INFORMATION

No. of Employees :

Information denied by the management

Bankers :

• ICICI Bank Limited, SEG Department, B Wing 3rd Floor, Mafatlal Chambers, N.M Joshi Marg, Lower Parel (E) Mumbai-400013, Maharashtra, India
• HDFC Bank Limited Emerging Corporate Group Trade World, ‘A’ Wing, 2nd Floor Kamala Mill Compound Senapati Bapat Marg, Lower Parel Mumbai-400013, Maharashtra, India
• Canara Bank Chembur Main Branch, Opposite Chembur Railway Station 70 A, MDS Marg, Chembur Mumbai-400 071, Maharashtra, India
• YES Bank Limited Nehru Centre, 12th Floor Discovery of India Dr. A. B. Road, Worli Mumbai-400018, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loans From Banks (Against charge created on Company’s Asset i.e. Motor vehicles) Repayable within one year Rs. 14.367 millions (Previous year Rs. 32.505 millions)	26.835	48.548
From Banks – ICICI Bank Bahrain (Foreign Currency Loan – Secured against Equitable Mortgage of Land and Building and personal guarantee of Directors) Repayable within one year Rs. 9.589 millions (Previous year Rs. 0.834 millions)	239.006	271.187
From Company (Against charge created on Company’s Asset i.e. Motor vehicles) Repayable within one year Rs. 0.053 millions (Previous year Rs. NIL)	0.295	0.000
Cash Credit / Overdraft / Working Capital Demand Loan (WCDL) / Buyers Credit
From banks HDFC bank – buyer’s credit (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	30.291	33.522
ICICI Bank – Buyer’s Credit (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	38.282	42.858
Indian Overseas Bank - Cash Credit (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	0.000	81.333
HDFC Bank - WCDL (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	100.000	86.329
ICICI Bank - Cash Credit (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	119.635	86.362
Canara Bank - Cash Credit (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	135.395	0.000
Yes Bank – WCDL / Bill Discounting (Against charge created on Company’s Inventory, Book Debts and Plant and Machinery and guaranteed by Directors)	94.996	0.000
Total	784.735	650.139
Unsecured Loan
From Banks HDFC Bank (Guaranteed by Directors) Secured by charge on personal Assets of Directors Repayable within one year Rs. 11.635 millions (Previous year Rs. 3.254 millions) Repayable within one year Rs. 44.996 millions (Previous year Rs. NIL)	45.330	30.555
From Shareholders	0.000	0.381
Interest Accrued and Due On Above	0.000	0.005
Loan From Directors	0.000	1.700
Security Deposit – Trade Loan From Holding Company	45.299	22.110
Total	90.629	54.751

Banking Relations :	--
Auditors :
Name :	Kirti D. Shah and Associates Chartered Accountants
Address :	53, Juhu Supreme Shopping Centre, 2^nd Floor, Gulmohar Cross Road No.9, JVPD Scheme,Mumbai-400 049, Maharashtra, India
Internal Auditors:
Name :	Kirit Manek and Company Chartered Accountants
Address :	14B, Nootan Nagar, Turner Road, Bandra(W), Mumbai-400 050, Maharashtra, India
Associates/Subsidiaries :	Aries Agro Care Private Limited Aries Agro Equipments Private Limited Aries Agro Produce Private Limited Golden Harvest Middle East FZC

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13004339	Equity Shares	Rs.10/- each	Rs.130.043 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		130.043	130.043	130.043
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		934.395	848.537	838.545
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1064.438	978.580	968.588
LOAN FUNDS
1] Secured Loans		784.735	650.139	177.657
2] Unsecured Loans		90.629	54.751	53.102
TOTAL BORROWING		875.364	704.890	230.759
DEFERRED TAX LIABILITIES		14.884	4.575	(3.420)
TOTAL		1954.686	1688.045	1195.927
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		323.057	290.693	261.319
Capital work-in-progress		157.277	192.131	101.382
INVESTMENT		146.404	65.748	65.713
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	468.677	503.569	209.842
	Sundry Debtors	695.217	493.516	402.750
	Cash & Bank Balances	67.692	3.715	5.656
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	477.363	435.827	436.437
Total Current Assets		1708.949	1436.627	1054.685
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	288.500	243.833	166.709
	Other Current Liabilities	33.876	32.169	20.501
	Provisions	58.625	21.152	99.962
Total Current Liabilities		381.001	297.154	287.172
Net Current Assets		1327.948	1139.473	767.513
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1954.686	1688.045	1195.927

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1397.461	1104.442	1033.793
		Other Income	39.495	16.338	1.858
		TOTAL (A)	1436.956	1120.780	1035.651
Less	EXPENSES
		Consumption of Materials	780.236	548.800	457.038
		Manufacturing Expenses	76.106	75.696	58.498
		Payment to and for Employees	119.109	94.208	65.753
		Administration and Other Expenses	339.202	342.928	301.164
		Increase/(Decrease) in stock	(169.855)	(59.058)	(40.791)
		TOTAL (B)	1144.798	1002.574	841.662
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		292.158	118.206	193.989
Less	FINANCIAL EXPENSES (D)		86.762	58.131	33.083
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		205.396	60.075	160.906
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.984	9.703	6.884
	PROFIT BEFORE TAX (E-F) (G)		189.412	50.372	154.022
Less	TAX (H)		63.809	19.295	38.631
	PROFIT AFTER TAX (G-H) (I)		125.603	31.077	115.391
Less	PRIOR PERIOD ITEMS		13.212	0.000	3.750
	SHORT PROVISION FOR TAX IN EARLIER YEARS		0.982	18.281	0.070
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		255.610	242.814	164.500
Less	APPROPRIATIONS
		Transfer to General Reserve	15.000	0.000	15.000
		Dividend	19.507	0.000	15.605
		Tax on Dividend	3.239	0.000	2.652
	BALANCE CARRIED TO THE B/S		329.273	255.610	242.814
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	41.496	2.742	1.557
	IMPORTS		218.190	427.418	121.293
	Earnings Per Share (Rs.)		9.66	2.39	11.98

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	217.550	466.410	547.280
Total Expenditure	167.980	368.910	400.620
PBIDT (Excl OI)	49.570	97.500	146.660
Other Income	2.290	0.010	0.870
Operating Profit	51.860	97.510	147.530
Interest	26.770	26.760	24.880
PBDT	25.090	70.750	122.640
Depreciation	4.440	4.590	4.630
Profit Before Tax	20.650	66.160	118.010
Tax	12.290	17.850	39.920
Provisions and contingencies	0.000	0.000	0.0000
Profit After Tax	8.360	48.310	78.090
Extraordinary Items	0.000	(0.020)	0.000
Net Profit	8.360	48.290	78.090

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.74	2.77	11.14
Net Profit Margin (PBT/Sales)	(%)	13.55	4.56	14.90
Return on Total Assets (PBT/Total Assets}	(%)	9.32	2.92	11.70
Return on Investment (ROI) (PBT/Networth)		0.18	0.05	0.16
Debt Equity Ratio (Total Liability/Networth)		1.18	1.02	0.53
Current Ratio (Current Asset/Current Liability)		4.49	4.83	3.67

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
For Goods	169.682	185.347	71.680
For Expenses	118.818	58.486	95.029
Total	288.500	243.833	166.709

OPERATIONS

During the year, the earnings before Interest, Depreciation and Tax was Rs. 292.157 Millions compared to Rs 118.207 Millions in the previous year. As at March’2010, the Gross Fixed Asset is Rs. 406.074 Millions compared to Rs. 357.655 Millions in the previous year. The Turn Over for the year was Rs. 1397.461 Millions as against Rs. 1104.442 Millions in the previous year reflecting a growth of 27 %. Profit after tax for the year was Rs. 125.603 compared to Rs. 31.077 Millions in the previous year. The Company is a major manufacturer and supplier of Chelated micronutrients, value added secondary nutrient fertilizers and also water soluble NPK fertilizers. In addition, we also have a growing range of farm sprayers and plant protection chemicals, including pesticides, insecticides, fungicides and herbicides in our product portfolio. In total, Aries has 76 brands.

FUTURE PROSPECTS

The Company is ready to launch an additional 6 new products, in phases during 2010-11. This will include further specialty plant nutrients, farm equipment and plant protection products, adding on to their already extensive range of 76 brands. They believe that adding throughput through their distribution network will increase their share of the farmer’s wallet and provide a comprehensive range of nutrition solutions to choose from.

The Unit namely M/s. Amarak Chemicals FZC, set up by M/s. Golden Harvest Middle East FZC, will commence production of Sulphur Bentonite in Fujairah by end July 2010. They believe that about half of the total capacity of 60,000 MT will be utilized in the first year itself, with sales taking place through Aries’s own distribution network in India and also through new buyers in the Middle East and SAARC Region. Their other overseas subsidiary, Golden Harvest Middle East FZC, is now in its third year of manufacturing operations of Chelated micronutrients. It has added during the year 2009- 10, an additional product to its portfolio, viz., 20% soluble Boron. Golden Harvest is already working at full capacity utilization and has significantly increased its sales to Aries in India, as well as to customers in Bangladesh, Nepal, the Middle East and Africa. The acceptance of Golden Harvest Chelates and Boron based products as cost effective and world class gives us the confidence that the future of their International foray with specialty nutrients is very bright and exciting. The Company has also appointed distributors and commenced negotiations for increasing global business in key markets. They firmly believe that, these export markets, as well as servicing of their institutional clients in India, will open up new opportunities for the Company.

SUBSIDIARIES

The Company has four subsidiaries, Aries Agro Care Private Limited, Aries Agro Equipments Private Limited, Aries Agro Produce Private Limited and Golden Harvest Middle East, FZC. The operations of Aries Agro Care Private Limited commenced in the Financial Year 2008-09 and during the Financial Year 2009-10 the Company has ended with a total revenue of Rs. 8.005 Millions which has resulted in Rs. 467 Millions as profit after tax. The business operations of Aries Agro Equipments Private Limited commenced in the year ended 31st March, 2010 in agricultural sprayers generating a Sale of Rs. 13.990 Millions with profit after tax of Rs. 1.306 Millions . The above two Companies are Wholly Owned Subsidiaries of the Company. No business activity took place in other Subsidiary namely Aries Agro Produce Private Limited As regards the overseas subsidiary M/S. Golden Harvest Middle East FZC with an installed capacity of 10,800 MT p.a., in their second full year of operation, has generated a total sale of AED 2,00,66,528/- with a profit of AED 35,12,532/-. M/s. Amarak Chemicals FZC, is in the process of allotting shares to M/S. Golden Harvest Middle East FZC. On completion of allotment M/s. Amarak Chemicals FZC will become a Subsidiary of M/S. Golden Harvest Middle East FZC, consequently M/s. Amarak Chemicals FZC will become a step down Subsidiary of Aries Agro Limited. As required under Section 212 of The Companies Act, 1956, annexed hereto are the Audited Statement of accounts, the Reports of the Board of Directors and Auditors’ Reports for the year ended 31st March, 2010 of Aries Agro Care Private Limited, Aries Agro Equipments Private Limited, Aries Agro Produce Private Limited and Golden Harvest Middle East FZC.

MANAGEMENT DISCUSSION AND ANALYSIS

MANUFACTURING BASE

Aries has expanded its manufacturing base in India and overseas. As of the end of 2009-10, they have built up a total manufacturing capacity of 84,600 MT per annum spread across 6 factories in India and an additional 70,000 MT per annum at their 2 Units in Fujairah and Sharjah. This is arguably the largest world class manufacturing base of specialty plant nutrition solutions set up by an Indian Company. The Indian manufacturing operations are spread over 6 cities, namely Mumbai, Hyderabad, Bengaluru, Kolkata, Ahmedabad and Lucknow. Their largest and most state of the art manufacturing unit is located at Hyderabad with a capacity of 37,800 MT per annum, manufacturing their flagship brands Chelamin and Agromin Max. Ahmedabad is their first factory that has facilities for the manufacture of bio-fertilizers, including their own in-house microbial breeding area. Lucknow is their first production base located in North India.

GLOBAL SOURCING

In addition to their own manufacturing facilities, Aries has reputed global suppliers of plant nutrient products located in South America, China, the Middle East, Iran, Italy, Israel and Poland. These global suppliers provide us with best in class raw materials for their Indian factories and exclusive Made- For-India products that they rebrand under the Aries brands. During the year 2009-10, imports constituted 39 % of their total purchases, making global sourcing a key cost and quality driver for their business.

INDUSTRY TRENDS

2009-10 was a very difficult year for the agribusiness industry due to the most intensive drought in several decades during the Kharif (summer) season, followed by floods in many states just prior to the Rabi (winter) season. Continuing political instability in Andhra Pradesh and the Eastern Region continued to cause major concerns. The overall agricultural scenario was bleak with total crop production reducing in both seasons significantly from 117.70 million tones to 98.83 million tonnes (a fall of 16 %). Area under cultivation also shrunk by 6.50 %( 46.18 Lakh Hectares). Total rainfall deficit was also reported at 23% of the Long Period Average. This was the most deficient South West Monsoon since 1972. Despite all these extremely difficult environmental factors, they have managed to achieve a revenue growth of 27 %. The Sales Revenues grew in all states across India, with the exception of Bihar and Chattisgarh.

GROWTH DRIVERS

THE GROWTH DESPITE ADVERSITY WAS ACHIEVED DUE TO THE FOLLOWING KEY REASONS:

1. Foray into International markets : 2009-10 saw Aries products being sold in more export markets than in the past. Their international sales increased by 469 % on a consolidated basis.

2. New products in domestic markets : 2009-10 saw a record launch of 15 new products, taking the total products in the Aries range to include 76 brands. The 15 new products included 4 India-first concepts of European bio degradable chelates, 5 Natural Amino acid Chelates, a Marine Plant extract from Norway, a Water Treatment formulation, 2 Calcium Nitrate derivatives and 2 imported Agricultural sprayers.

3. New Markets in India : The year also saw Aries entering new markets like Kerala and Kashmir. They now have Aries products marketed in 24 states of India. In addition, they also actively began marketing to institutions and also scaled up their sales under State development and drought/flood relief schemes. Aries products are currently being sold in 1,75,000 villages located in 375 districts of the country.

4. Comprehensive Sales & Extension efforts : The Aries sales team worked tirelessly to sell in whichever markets water was available. This made the acquisition of new farmers possible and increased their customer base even in existing markets. Mindshare was increased using promotional activity that included (but was not restricted to) Farmers Meetings, Demonstrations, Sampling, Train the Trainers Programmes, Post Master Training Sessions under MCX Grameen Suvidha Kendra Programme, SMS based Crop and Weather Advisories, Exhibitions and Expos.

KRISHI VIGYAN VAHAN

Aries has a fleet of 100 Krishi Vigyan Vahans (KVVs) that have travelled 11,24,168 kilometers and spread awareness in 4,658 villages spread across 10 States during 2009-10. The objective of these Vehicles is to build awareness even in the remote, unserviced markets by conducting Farmer Briefings, Structured Meetings and Audio Visual Presentations, providing Advisory Services, Mobile Soil Testing and Field Demonstrations. Upon spreading the required knowledge and convincing potential Consumers on the need and benefits of using the plant nutrients, the Aries staff on the KVVs book orders and provide farmers with the locations of the nearest Dealer / Retailer. This tracks the impact of the extension activities in each village and improves the throughput of the Aries Dealers and Retailers as the speed of liquidation increases with these efforts. Insurance and other purchase incentives are provided to the Consumers once the purchase is completed at Authorized Dealers, thus serving to retain Consumer loyalty. The KVVs also collected over 30,000 soil samples for analysis and soil health cards were issued to the farmers, ensuring accurate recommendations and scientific usage of plant nutrients. This service was extremely valued by the farmers. Aries KVV operations and its methodology and success story was captured in a Detailed News Report and Online Video Case Study developed and published by The Wall Street Journal, USA.

INCREASING GLOBAL REACH

Aries International Sales have commenced in 4 Countries through the Indian and the UAE factories. In addition, they are also pursuing the registration of their products for commercial sale in Europe. They believe that with their International manufacturing base for Chelates, Sulphur Bentonite and water soluble NPK fertilizers, they must actively expand their global presence and be known as a production hub for costeffective world class specialty plant nutrients for countries beyond India. Increasing their Global Reach is considered strategically important.

SULPHUR

M/S. Golden Harvest Middle East – a Subsidiary Company of Aries has set up a unit namely Amarak Chemicals, FZC to manufacture Sulphur Bentonite containing 90% elemental sulphur. This unit was showcased to the largest customers of Aries in April 2010 which has since commenced operations. M/S. Golden Harvest Middle East has invested AED 15.14 Millions on this project having a capacity of 60,000 MT p.a. to produce Sulphur Bentonite. The current application of Suphur in Agriculture is 10 million tons annually and the Sulphur Institute, USA, has estimated a current deficit in 2009-10 of 9.6 million tons annually. This effectively means that farmers need to double the usage of Sulphur on their crops to optimize yields. The deficit is expected to rise to 11.6 million tons annually by 2014. The largest existing markets are in Asia and the Americas, with the largest deficit being reported in India and China. India alone has an estimated deficit in usage of Sulphur of 2.2 million tonnes per annum. Interestingly, there are only 15 manufacturing units for Sulphur Bentonite in the world and none of these are located in Asia, making Amarak a nearby, cost effective source for this extremely critical plant nutrient. In fact, the deficit of Sulphur is becoming so pronounced that it is being called the emerging fourth primary nutrient after NPK. Amarak projections indicate that with this high demand scenario expected to continue way into the future and with proximity to raw material sources and nearness to the markets with the most demand, the project would ideally have a pay back period of 2 ½ years.

OUTLOOK

The outlook for the 2010 monsoons seem positive with all experts agreeing on a prediction of a normal rainfall with 98% of the Long Term Average precipitation. Timely onset and good geo-spatial spread of the rains will certainly help in ensuring a good Kharif sowing and consequent harvests. Aries is looking at adding 3 new plant protection products and 2 new plant nutrition products to their range during 2010- 11. This will add to the revenue growth potential. However, the seeds sales will be discontinued with effect from the Rabi 2010 season due to supply constraints from the growers, unfamiliar market dynamics and slow growth. The sales teams will also be increasing sales and extension activities three-fold to further improve the demand creation process. To complement these intensive promotional efforts, approx. 100 new KVVs will be added during the year in approx. 5-6 States.

FINANCIAL PERFORMANCE:

The Company’s Turnover for the financial year ended March 31, 2010 increased to Rs.1397.461 Millions from Rs. 1104.442 Millions in the previous year, registering a growth of 27%. Total expenses for the year were Rs. 1417.399 Millions as against Rs. 1129.466 Millions in the previous year. Profit Before Tax increased to Rs. 189.412 Millions during the year as against Rs. 50.373 Millions in the previous year. The increase in Profit Before Tax translates to 14% of FY 09-10 Sales. Tax provision for the year was Rs. 63.809 Millions as against Rs. 19.296 Millions in the previous year which translates to 5% on FY 09-10 Sales. Profit After Tax for the year was Rs. 125.603 Millions as against Rs. 31.077 Millions in the previous year which is 9% of FY 09- 10 Sales.

Fixed Assets:

• Land
• Factory Building
• Residential Flat
• Plant and Machinery
• Electrical Installations
• Laboratory Equipments
• Office Equipments
• Furniture and Fixtures
• Air Conditioners
• Computer
• Vehicles
• Commercial Vehicles

AS PER WEBSITE DETAILS:

Company Overview:

Their Company was founded by Dr. T. B. Mirchandani and Mrs. Bala Mirchandani in 1969. They are into the business of manufacturing of micronutrients and other nutritional products for plants and animals. They started Their activity by manufacturing a small range of mineral feed additives for animals and birds and then diversified into mineral additives for the agriculture use. Their products were immediately accepted by the consumers and slowly it became the brand leader in the field of mineral nutrition with a range of products including mineral premixes, milk boosters, protein concentrates, vitamin premixes, anti-coccidian and anti-bacterial feed additives.

In 1975, we diversified into nutrients for plant. They had in-house expertise in the area of mineral nutrition and thereby decided to concentrate on the same. They conducted research on compounds that could deliver mineral nutrients to plants more efficiently. The research zeroed in on "Metal Chelates". The product had to be manufactured in accordance with the locally available ingredients and expertise which posed a challenge for the Company. Through in-house R and D efforts, Their Company branched out into Agrochemicals in 1975 with the introduction of Chelated Micronutrients. We pioneered the concept of Chelates in India with the introduction of "Agromin", a micronutrient fertilizer in the year 1975, followed by "Chelamin" in 1976. Agromin (chelated micronutrients) and Chelamin (chelated zinc) are the company's flagship brands. We are one of the leading manufacturer and seller of Chelates in the Country.

They also conducted in-house R and D to develop bactericides for agriculture. They were amongst the first few to receive license for use of bactericides for agricultural use by the Govt. of India. This was then followed by the introduction of plant hormones. In 2001, Aries ex panded its product line to include secondary nutrients - sulphur, magnesium and calcium. In the subsequent years, they continued expanding Their plant nutrition product line to include value-added, water-soluble complexes of nitrogen (N), phosphorous (P) and potassium (K).

Milestones

• First recipient of the coveted ISI mark for Mineral Feed Supplements -- an honor not yet accorded to many major players in the Industry.
• The company selected by the International Labor Organization, Switzerland to exemplify ideal Labor Relations in the Small Scale Sector in India.
• First company to receive manufacturing permission for Agricultural Chelates.
• First company to receive manufacturing permission for Agricultural Bactericides.
• First company to indigenously manufacture Calcium Chelate.
• Recipient of Trans world Gold Medal.
• Recipient of National Unity Award.
• Consistently represented on the Animal Feeds Committee of the Bureau of Indian Standards.
• Responsible for the establishment of the "Feed Additive Manufacturers Association of India".
• Responsible for the establishment of the "Indian Micronutrient Manufacturers Association".
• Dr. T.B. Mirchandani was nominated for the International Award for Distinguished Leadership by the American Biographical Institute.
• Aries is the first Agribusiness Company in India to successfully launch a Dealer Loyalty Programme, christened KHAZAANA, which is today recognized as India 's most rewarding Customer Rewards Programme in the Agrochemical industry.

Board of Directors

DR. Jimmy Mirchandani

Chairman and Managing Director

Date of Appointment: 15.01.1976

Dr Jimmy Mirchandani is a Bachelor of Veterinary Science and Animal Husbandry from Konkan Krishi Vidyapeeth-Agri University. He has been conferred “Bachelor of Laws” by Mumbai University. Dr Jimmy Mirchandani is with Aries for almost 26 years; more particularly involved with the development of new products. He looks after the day to day operations of the Company. He was instrumental in propelling Aries Research into the chelation area. He was also the president of Indian Micro Fertilisers Manufacturers’ Association of India (2001-2005).

Dr. Rahul Mirchandani

Executive Director

Date of Appointment: 02.02.1994

Dr. Rahul Mirchandani is a B.Com from R A Poddar College of Commerce and Economics, Bombay and a Chartered Financial Analyst from the Institute of Chartered Financial Analysts (ICFAI), India. He completed his MBA from the University of Canberra, Australia in 1998. He has been granted One Year Diploma in Marketing and Business Administration from India International Trade Center in 1993. He has been granted Diploma in Business Finance, from ICFAI, India in May, 1996 and also Advanced Diploma in Finance, from ICFAI in February, 1997. He holds an Honours Diploma in Sales and Marketing from the National Institute of Sales, Bombay. He has completed a course of Instructions in Financial Management from Management Studies Promotion Institute (MSPI), New Delhi in July, 2004. He has been awarded Fellow Membership from Management Studies Promotion Institute in July, 1994. He has received Principal’s Special Award from R.A.Poddar College of Commerce and Economics, Mumbai in February, 1995 in recognition of his consistent and meritorious contribution to the activities of the College. He is also the visiting faculty in IIM, Ahmedabad and Narsee Monjee Institute of Management Studies (NMIMS), Mumbai. He has received Doctorate in Philosophy (Management Studies) from NMIMS University, Mumbai. He looks after the marketing activities of the Company. He is also the member of the Audit Committee.

Dr. D. S. Jadhav

Independent Director

Date of Appointment: 03.03.1995

Dr D S Jadhav is a retired Associate Dean of the Bombay Veterinary College. He has been awarded the degree of Doctorate of Philosophy and Master of Science from the University of Minnesota and Bachelor of Veterinary Science from the University of Bombay. He worked in USA at the Agri Experiment Station, Crookston for 1 year in 1962-63. He later worked as a Professor and Head of the Department of Animal Nutrition from 1966-1982, then as Associate Dean of Bombay Veterinary College in 1983-85.. Post retirement, he has worked as Director, Tata Marginal Farm Management Institute, Navsari, Gujarat from 1986-1989 where he trained rural youths and managed poultry farm and Dairy farm. He later worked as Professor at Institute of Poultry Management of India, Pune from 1989-1990, where he was associated in teaching and management of 45000 layers and 27000 broiler farm. He has also worked as Manager, Rani Hatcheries, Panvel between 1990-1993. He has also advised feed formulation to MAIDC and other co-operative organisations and also worked on selection committees in various Agricultural Universities. He is a Member of the Audit Committee.

Prof. R. S. S. Mani

Independent Director

Date of Appointment: 16.08.2004

Prof. R.S.S. Mani is a HRD and Management Strategy expert, associated in value added interventions to many reputed Companies in the domains of HRM, Institution Building, T and D, OB, OD, and such. Prof. Mani has been associated in training and consultancy activities with a large number of corporates such as Wockhardt, L and T, M and M, TATA Group, RIL, Thomas Cook, Aditya Birla Group amongst many others in their strategic HRM projects. Prof. Mani (a gold medalist from TISS) was also a full time faculty member of TATA Institute of Social Sciences (TISS) associated with the personnel management department. He was incharge of conducting training programmes for many organizations throughout India. He has been the Advisor -Career Development for the SIES group of institutions in Nerul and is also a visiting professor at TISS. Prof R S S Mani was recently bestowed the SAMAJ SHAKTI AWARD for his outstanding contribution in the sphere of education. He supports several educational charities in Mumbai and is also the Hon Director of the Computer Education and Library of the SHHPBS. He is also acknowledged as an eminent career guidance specialist and has mentored several executives shape their careers .He is the Chairman of Audit Committee.

Mr. Akshay Mirchandani

Director

Date of Appointment: 05.03.2009

Mr. Akshay Mirchandani is a B.Com from Swami Vivekananda College of Commerce, Arts and Science, Bombay. He completed his MBA from the University of Canberra, Australia in 2007. He is a Director in the subsidiary Company Golden Harvest Middle East Fzc. He is also a Director of M/S. Amarak Chemicals FZC. He looks after the UAE operations of the above said Companies.

MR. Chakradhar Bharat Chhaya

Independent Director

Date of Appointment: 29.10.2009

Mr. Chakradhar Bharat Chhaya, aged about 65 years has more than 45 years of experience in the field of banking and finance. He completed his Bachelor of Commerce from University of Bombay in the year 1963. He is a Fellow of Institute of Cost and Works Accountants of India. He is also a CAIIB (Certified Associate of Indian Institute of Bankers). He began his career in the year 1964 with Bank of Baroda. He worked at various positions before retiring as Managing Director of BOBCARDS Limited, a subsidiary of Bank of Baroda in 2003.

The various designations held by him during his career were Zonal Head and Convener of State Level Bankers' Committee of Rajasthan and Nagar Rajbhasha Samiti of Jaipur (Banks), Deputy General Manager - Corporate Banking, Assistant General Manager – Central Inspection Division, Regional Manager - Jamnagar / Junagadh and Rajkot regions and Principle Officer for Sultanate of Oman Territory. At present, he is practicing as a Cost Accountant and undertakes corporate and NBFC advisory assignments. He is also a Director in an NBFC engaged in the Business of offering students' loan for higher studies and Independent Director of Texmo Pipes and Products Limited.

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.45.38
UK Pound	1	Rs.73.08
Euro	1	Rs.61.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.