1. Summary Information

		Country	India
Company Name	AADI INDUSTRIESLIMITED	Principal Name 1	Mr. Rushabh Shah
Status	Moderate	Principal Name 2	Mrs. Mansi Shah
		Registration #	11-206053
Street Address	320/7, Siddhivinayak Co-Operative Housing Society, Hingwala Lane, Pant Nagar, Ghatkopar (East), Mumbai – 400075, Maharashtra
Established Date	21.04.1994	SIC Code	--
Telephone#	91-22-25012706/68	Business Style 1	Manufacturer
Fax #	91-22-25012768	Business Style 2	--
Homepage	www.aadiindustries.com	Product Name 1	Plastic
# of employees	140 (Approximately)	Product Name 2	Tarpaulin Bags
Paid up capital	Rs. 100,000,000/-	Product Name 3	--
Shareholders		Banking	Dena Bank
Public Limited Corp.	Yes	Business Period	18 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	B (29)
Related Company
Relation	Country	Company Name	CEO
Enterprise in which key management personnel and their relatives have significant influence :	--	Aadi Polyflex Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	384,065,000	Current Liabilities	138,451,000
Inventories	195,039,000	Long-term Liabilities	333,293,000
Fixed Assets	112,181,000	Other Liabilities	24,210,000
Deferred Assets	0,000	Total Liabilities	495,954,000
Invest& other Assets	0,000	Retained Earnings	35,331,000
		Net Worth	195,331,000
Total Assets	691,285,000	Total Liab. & Equity	691,285,000
Total Assets (Previous Year)	357,073,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	1,207,648,000	Net Profit	28,525,000
Sales(Previous yr)	764,803,000	Net Profit(Prev.yr)	17,948,000

MIRA INFORM REPORT

Report Date :

27.03.2012

IDENTIFICATION DETAILS

Name :	AADI INDUSTRIES LIMITED
Registered Office :	320/7, Siddhivinayak Co-Operative Housing Society, Hingwala Lane, Pant Nagar, Ghatkopar (East), Mumbai – 400075, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.04.1994
Com. Reg. No.:	11-206053
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	L91110MH1994PLC206053
TAN No.: [Tax Deduction & Collection Account No.]	MUMA33499E
PAN No.: [Permanent Account No.]	AAACI8256G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Plastic and Tarpaulin Bags.
No. of Employees :	140 (Approximately) [In Office 15, In Factory 125]

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 780000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	320/7, Siddhivinayak Co-Operative Housing Society, Hingwala Lane, Pant Nagar, Ghatkopar (East), Mumbai – 400075, Maharashtra, India
Tel. No.:	91-22-25012706/68
Fax No.:	91-22-25012768
E-Mail :	Aadi.industries@hotmail.com
Website :	www.aadiindustries.com
Factory :	209/3, Chamar Vani Village, Masat Industrial Area, Kilwasa, Dadra Nagar Haveli, Silvassa, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Rushabh Shah
Designation :	Chairman and Managing Director
Name :	Mrs. Mansi Shah
Designation :	Director
Name :	Mr. Surjit Banga
Designation :	Independent Director (Resigned w.e.f 6^th July 2011)
Name :	Mr. C. R. Mehta
Designation :	Independent Director (Resigned w.e.f 26^th March 2011)
Name :	Mr. R. C. Singhvi
Designation :	Independent Director (Resigned w.e.f 26^th March 2011)
Name :	Mr. Sunil Mistry
Designation :	Independent Director (Appointed w.e.f 30* May 2011)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,494,076	24.94
Sub Total	2,494,076	24.94
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2,494,076	24.94
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	22,000	0.22
Sub Total	22,000	0.22
(2) Non-Institutions
Bodies Corporate	1,734,351	17.34
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2,113,956	21.14
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,485,969	34.86
Any Others (Specify)	149,648	1.50
Clearing Members	141,173	1.41
Non Resident Indians	8,475	0.08
Sub Total	7,483,924	74.84
Total Public shareholding (B)	7,505,924	75.06
Total (A)+(B)	10,000,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	10,000,000	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Plastic and Tarpaulin Bags.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity
Tarpaulin/ Wagon Cover	M.T	24000	7200
Shopping Bags/ Carry Bags	M.T	6000	4800

Particulars	Unit	Actual Production
Tarpaulin	Kg.	5733680
Tubing/ Shopping Bags	Kg.	5731547

GENERAL INFORMATION

No. of Employees :

140 (Approximately) [In Office 15, In Factory 125]

Bankers :

Dena Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital
From Bank (L.C Facility)	89.998	49.935
From Bank (Cash Credit Facility) (Secured by Hypothecation of stocks and Debtors)	101.793	60.842
Term Loan From Bank (Secured by First Charge by way of Hypothecation of All Movable and Immovable Properties of the Company and Personal Guarantee of the Director)	21.055	30.095
Vehicle Loan	0.609	0.738
Total	213.455	141.610
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Form Directors and Share Holders	11.351	5.162
Inter Corporate Deposits	108.487	26.235
Total	119.838	31.397

Banking Relations :	--
Auditors :
Name :	Sunderji Gosar and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Enterprise in which key management personnel and their relatives have significant influence :	Aadi Polyflex Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

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		100.000	100.000	100.000
2] Share Application Money		60.000	0.000	0.000
3] Reserves & Surplus		35.331	12.656	0.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		195.331	112.656	100.500
LOAN FUNDS
1] Secured Loans		213.455	141.610	107.300
2] Unsecured Loans		119.838	31.397	0.000
TOTAL BORROWING		333.293	173.007	107.300
DEFERRED TAX LIABILITIES		4.510	2.556	0.900
TOTAL		533.134	288.219	208.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		112.181	96.120	65.500
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	195.039	105.485	38.200
	Sundry Debtors	330.734	83.968	68.800
	Cash & Bank Balances	18.468	17.385	6.000
	Other Current Assets	9.972	12.952	0.000
	Loans & Advances	24.891	41.163	41.300
Total Current Assets		579.104	260.953	154.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	138.451	56.211	10.600
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	19.700	12.643	0.500
Total Current Liabilities		158.151	68.854	11.100
Net Current Assets		420.953	192.099	143.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		533.134	288.219	208.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1207.648	764.803	101.200
		Other Income	2.636	1.627	0.000
		TOTAL (A)	1210.284	766.430	101.200
Less	EXPENSES
		Cost of Raw Materials	789.236	368.988
		Cost of Traded Goods	216.472	289.163
		Manufacturing Expenses	6.500	5.164
		Personnel Expenses	3.388	2.485	95.300
		Other Operating Expenses	8.461	3.945
		Excise Duty and VAT	101.929	47.030
		Selling and Distribution Expenses	0.596	0.193
		Increase/ Decrease in stock	(5.797)	(4.099)
		Prior Period Items	0.822	0.000
		TOTAL (B)	1121.607	712.869	95.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		88.677	53.561	5.900
Less	FINANCIAL EXPENSES (D)		39.682	23.054	2.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		48.995	30.507	3.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.516	4.104	0.200
	PROFIT BEFORE TAX (E-F) (G)		43.479	26.403	3.500
Less	TAX (H)		14.954	8.455	1.800
	PROFIT AFTER TAX (G-H) (I)		28.525	17.948	1.700
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.656	0.558	NA
Less	APPROPRIATIONS
		Proposed Dividend	5.000	5.000
		Dividend Distribution Tax	0.850	0.850	NA
	BALANCE CARRIED TO THE B/S		35.331	12.656	NA
	Earnings Per Share (Rs.)		2.85	1.79	0.17

QUARTERLY RESULTS

PARTICULARS	1^st Quarter 30.06.2011
	UnAudited
Net Sales	273.010
Total Expenditure	255.360
PBIDT (Excl OI)	17.650
Other Income	0.340
Operating Profit	17.990
Interest	10.570
Exceptional Items	0.000
PBDT	7.420
Depreciation	1.390
Profit Before Tax	6.030
Tax	1.060
Provisions and contingencies	0.000
Profit After Tax	4.970
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	4.970

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.36	2.34	1.67
Net Profit Margin (PBT/Sales)	(%)	3.60	3.45	3.45
Return on Total Assets (PBT/Total Assets}	(%)	6.29	7.39	1.59
Return on Investment (ROI) (PBT/Networth)		0.22	0.23	0.03
Debt Equity Ratio (Total Liability/Networth)		2.52	2.15	1.17
Current Ratio (Current Asset/Current Liability)		3.66	3.79	13.90

LOCAL AGENCY FURTHER INFORMATION

Performance

During the year, the Company achieved sales of Rs. 1210.284 Millions and earned net profit after tax of Rs. 28.525 Millions compared to Rs.766.430 Millions and Rs.17.948 Millions respectively for the previous financial year.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry structure and developments

Considering the plastic industry, in India, low-density polyethylene (LDPE) and linear low density polyethylene (LLDPE) are widely used polymers. This segment of polymers is growing at the rate of 12% per year. More than 50% of LDPE/ LLDPE is used by the packaging industry. The second most used polymer in India is HOPE, with a share of 22%. The value of its domestic consumption is Rs 212.300 Millions and it is growing at the rate of 15% per year. HDPE is used in the manufacturing of raffia, blow molding, injection molding, and in the paper industry as well. The majority of manufacturing capacities are owned by the big industrial houses Investment in the plastics sector in India is also rising with domestic and overseas companies setting up or expanding manufacturing activities. Further, the Indian government has taken steps to enhance competitiveness of the country's plastic industry by reducing import duties and central excise rates, and introducing value-added tax to replace sales tax.

As regards growth in the Plastic Industry, the global consumption of plastic is much more than the consumption of plastics in India. It is expected that consumption of plastics in India is expected to rise within five years and the industry will offer "unprecedented opportunities" in the next two decades due to rapid urbanization and growth in retail business in India.

Opportunities and Threats, Risks and Concerns

The change in business policies, including the relaxation m restrictions on foreign ownership; some privatization of government assets; and tariff reductions, have made the country as competitive as the other Asian regions. Foreign investors view India as a country with enormous potential, hence new foreign and domestic investments in the plastics industry will accelerate competition through higher growth, and measures by the Indian government to encourage investments. It is expected that India's polymers sector will have one of the highest growth rates of any polymer industry over the next 10 years.

As per the study carried out for availability of growth of various industries in India, India's petrochemical industry is expected to attract investments of more than $18 billion in the next 4-5 years. About $10 billion of that will be invested in the downstream processing industry and the rest by several existing and new producers, India can become a global production base and an export hub in the coming years. Hence availability of raw materials would be easy and that will further enhance the opportunities for the Plastic Industry which is a by product of petrochemical industry.

With more concentration on the specialty grades quality products which are more eco friendly plastic products and moving away from the type of commodity made cheaply will have more scope to survive in the long run considering the environmental issues attached with the Plastic Industry. With the quality consciousness, India can be a competitive supplier to China and to the rest of Asia.

The main threat is from the unorganized sector comprising low grade plastic goods manufacturers and from non eco-friendly manufacturing units. This may lead to quality problems in the international market and downgrading of Indian manufacturers' image. Secondly, due to its basic nature and use of low grade of plastic which is not eco-friendly, there has always been a threat of substitution of plastic as basic material with other metal or alternate material. These are the key risk factors which the Plastic Industry has to tackle in future.

Future Outlook

Company is planning to expand its business by issuing the shares of the Company which forms the Un-issued Capital of the Company, this will enable the Company to have more money to expand its business and avail the emerging opportunities in Plastic Industries.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE, 2011

(Rs. in Millions)

Sr.		UNAUDITED
No.	Particulars	Quarter ended 30.06.2011
1	(a) Sales/Income from Operations	290.909
	(b) Other Operating Income	-
2	Expenditure
	a) Increase/Decrease in Stock in Trade	(5.744)
	and work in progress
	b) Consumption of Raw Materials	129.575
	c) Purchase of Traded Goods	117.256
	d) Employees Cost	0.781
	e) Excise Duty & Sales Tax	17.899
	f) Depreciation	1.391
	g) Other Expenditure: - (i) & (ii)
	1) Manufacturing Expenses	1.301
	ii) Administration & Selling Expenses	0.697
3	Profit from operations before other Income, Interest and Exceptional Items (1-2)	16.265
4	Other Income	0.336
5	Profit before Interest and Exceptional Items (3+4)	16.601
6	Interest (Net)	10.569
7	Profit after Interest but before Exceptional Items (5-6)	6.032
8	Exceptional Items - Profit on sale of fixed assets	-
9	Profit from ordinary activities before tax (7+8)	6.032
10	Tax Expenses
	- Current Tax	1.060
	- Deferred Tax	-
11	Net Profit from Ordinary activities after tax (9-10)	4.972
12	Extraordinary Items (net of tax expenses Rs. nil)	-
13	Net Profit (11-12)	4.972
14	Paid-up equity share capital (Face value Rs. 10/-)	1000.00
15	Reserves excluding revaluation reserves (As per Balance Sheet of previous accounting year)
16	Earning per Equity Shares (EPS) Rs.
	a) Basic and diluted EPS before extraordinary items for the year to date and for the previous year	0.50
	b) Basic and diluted EPS after extraordinary items for the year to date and for the previous year	0.50
17	Public Shareholdings
	- Number of Shares	5,585,291
	- Percentage of Shareholding	55.85%
18	Promoters and Promoter Group Shareholding a) Pledged/Encumbered
	i) Number of Shares	1,900,000
	ii) Percentage of shares (as a % of total shareholding of Promoter and Promoter group)	43.03%
	iii) Percentage of shares (as a % of total share capital	19.00%
	b) Non-encumbered
	i) Number of shares	2,514,709
	ii) Percentage of shares (as a % of the total shareholding and Promoter group)	56.93%
	iii) percentage of shares (as a % of the total share capital	25.15%

FIXED ASSETS

· Building

· Plant and Machinery

· Office Equipment

· Furniture

· Computer

· Vehicles

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.51.31
UK Pound	1	Rs.81.37
Euro	1	Rs.67.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
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.