MIRA INFORM REPORT

Report Date :

24.04.2013

IDENTIFICATION DETAILS

Name :	ARIES AGRO LIMITED (CN)
Registered Office :	Aries House, Plot No.24, Deonar, Govandi (East), Mumbai – 400 043, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.11.1969
Com. Reg. No.:	11-014465
Capital Investment / Paid-up Capital :	Rs.130.043 Millions
CIN No.: [Company Identification No.]	L99999MH1969PLC014465
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19087F
PAN No.: [Permanent Account No.]	AAACA5035G
Legal Form :	A 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.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 5010000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. There appears some dip in the profitability of the company during current year. However, trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A – [Cash Credit]
Rating Explanation	Adequate degree of safety. It carry low credit risk.
Date	30.10.2012

Rating Agency Name	CRISIL
Rating	A2 [Bank Guarantee]
Rating Explanation	Strong degree of safety. It carry low credit risk.
Date	30.10.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Management non co-operative. [91-22-25564052]

LOCATIONS

Registered Office/ Head Office/ Corporate Office :	Aries House, Plot No.24, Deonar, Govandi (East), Mumbai – 400 043, Maharashtra, India
Tel. No.:	91-22-25564052/ 53
Fax No.:	91-22-25564054/ 25502753
E-Mail :	General Enquiries: ariesagro@ariesagro.com Investor Relations: investorrelations@ariesagro.com Sales Enquiries: sales@ariesagro.com Legal, HR Administration: mumbai@ariesagro.com R and D and Quality Related Querries: lab@ariesagro.com Accounts Related Querries: accounts@ariesagro.com Production Querries/Complaints and Feedback: customer@ariesagro.com Customer Loyalty Programm: khazaana@ariesagro.com Seed and Plant Protection Division: agrocare@ariesagro.com
Website :	http://www.ariesagro.com
Factory :	Located At: v Mumbai v Bangalore v Hyderabad v Kolkata v Sanand v Lucknow v Sharjah, UAE (Subsidiary Company) v Fujairah, UAE (Subsidiary Company)
Branch Network :	Located At: v Ahmedabad, Gujarat v Bangalore, Karnataka v Bellary, Karnataka v Bhubaneshwar, Orissa v Coimbatore, Tamil Nadu v Ghaziabad, Uttar Pradesh v Guwahati, Assam v Hissar, Haryana v Hyderabad, Andhra Pradesh v Indore, Madhya Pradesh v Jaipur, Rajasthan v Jalandhar, Punjab v Jodhpur, Rajasthan v Kolkata, West Bengal v Lucknow, Uttar Pradesh v Nagpur, Maharashtra v Nashik, Maharashtra v Nipani, Karnataka v Patna, Bihar v Raipur, Chhatisgarh v Ranchi, Jharkhand, v Rudrapur, Uttaranchal v Solapur, Maharashtra v Sriganganagar, Rajasthan

DIRECTORS

AS ON 31.03.2012

Name :	Dr. Jimmy Mirchandani
Designation :	Chairman and Managing Director
Date of Birth/ Age :	55 Years
Qualification :	B. Sc. (Vet); LLB
Date of Appointment	15.01.1976
Name :	Dr. Rahul Mirchandani
Designation :	Executive Director
Date of Birth/ Age :	35 Years
Qualification :	B. Com; CFA; MBA; Ph.D.
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 Birth/ Age :	12.05.1984
Qualification :	B.Com, MBA
Date of Appointment	05.03.2009
Name :	Mr. Chakradhar Bharat Chhaya
Designation :	Director
Date of Birth/ Age :	09.11.1943
Qualification :	B.Com, ICWA, CAIIB
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 31.03.2013

Category of Shareholder	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	6857926	52.74
Sub Total	6857926	52.74
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6857926	52.74
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1100000	8.46
Foreign Institutional Investors	347828	2.67
Sub Total	1447828	11.13
(2) Non-Institutions
Bodies Corporate	1299172	9.99
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2547926	19.59
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	681901	5.24
Any Others (Specify)	169586	1.30
Non Resident Indians	148334	1.14
Clearing Members	21252	0.16
Sub Total	4698585	36.13
Total Public shareholding (B)	6146413	47.26
Total (A)+(B)	13004339	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	13004339	0.00

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 31.03.2011]

Particulars	2010-2011
Licensed Capacity	Not Applicable
Installed Capacity	84,600 Metric Tonnes
Actual Production	39,577 Metric Tonnes

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

· ICICI Bank Limited, SEG Department, B Wing, 3^rd Floor, Mafatlal Chambers, N.M. Joshi Marg, Lower Parel (East), Mumbai – 400 013, Maharashtra, India

· HDFC Bank Limited, Emerging Corporate Group, Trade World, ‘A’ Wing, 2^nd Floor, Kamala Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, 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, 12^th Floor, Discovery of India, Dr. A.B. Road, Worli, Mumbai – 400 018, Maharashtra, India

· Axis Bank Limited, Credit Management Centre, Axis House, Bombay Dyeing Mills Compound, P.B. Marg, Worli, Mumbai - 400 025, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loans from Banks	142.795	209.909
Term Loans from Companies	0.119	0.151
Working Capital Facilities from Banks	887.722	694.282
TOTAL	1030.636	904.342
NOTES: 1. Rupees 8.900 Millions are secured by way of Charge on the Company's Motor Vehicles. 2. Rupees 118.301 Millions is a Foreign Currency Term Loan which is secured by way of Equitable Mortgage of Land and Building and personal guarantee of Directors. 3. Rupees 15.594 Millions are secured to Axis Bank Limited by way of Primary Charge on all Fixed Assets at Mouje Rajpur, Gujarat and personal guarantee of Directors. 4. Secured Term Loans from Companies are secured by way of Charge on the Company's Motor Vehicles.
Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loans from Banks	19.514	22.425
Security Deposits	62.252	51.035
TOTAL	81.766	73.460
NOTES: 1. Working Capital Facilities from Banks are secured by way of Charge on Company's Inventory, Book Debts, Charge on Land, Building, Plant and Machinery and all other movable fixed assets of the Company and guaranteed by Directors. 2. Un-Secured Term Loans from Banks are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

Banking Relations :	--
Auditors :
Name :	Kirti D. Shah and Associates Chartered Accountants
Address :	501, Nestor Court, Behind Vinayak Society, Old Police Lane, Off S.V. Road, Vile Parle (West), Mumbai - 400 056, Maharashtra, India
Internal Auditors:
Name :	Kirit Manek and Company Chartered Accountants
Address :	14B, Nootan Nagar, Turner Road, Bandra (West), Mumbai - 400 050, Maharashtra, India
Associates/Subsidiaries :	· Aries Agro Care Private Limited [Date of Incorporation 5th January, 2007] · Aries Agro Equipments Private Limited [Date of Incorporation 12th January, 2007] · Aries Agro Produce Private Limited [Date of Incorporation 20th June, 2008] · Golden Harvest Middle East FZC [Date of Incorporation 31st October, 2004] · Amarak Chemicals FZC [Step Down Subsidiary Date of Incorporation 9th September, 2007]
Other Related Parties :	· Aries Marketing Limited · Blossoms International Limited · Sreeni Agro Chemicals Private Limited · Aries East West Nutrients Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

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

NOTES:

6,600,700 Equity Shares out of the Issued, Subscribed and Paid up Share Capital were allotted as fully paid up Bonus Shares since incorporation by capitalization of Rs. 49.000 Millions from Revaluation Reserve, Rs. 09.100 Millions from Securities Premium Account and Rs. 07.900 Millions from the Statement of Profit and Loss.

17,00,700 Equity Shares out of the Issued, Subscribed and Paid up Share Capital were allotted as fully paid Bonus Shares in the last five years i.e. during the Financial Year 2006-07 by capitalization of Rs. 9.146 Millions from Securities Premium Account and Rs. 7.861 Millions from the Statement of Profit and Loss..

LIST OF SHAREHOLDER’S HOLDING MORE THAN 5 PERCENT OF SHARES

PARTICULAR	AS ON 31.03.2012
Name of the Shareholder	No. of Shares	% of Held
Dr. T. B. Mirchandani	--	--
Dr. Jimmy Mirchandani	3410955	26.23
Dr. Rahul Mirchandani	2623221	20.17

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		130.043	130.043	130.043
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1123.991	1045.081	934.395
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1254.034	1175.124	1064.438
LOAN FUNDS
1] Secured Loans		1030.636	904.342	739.739
2] Unsecured Loans		81.766	73.460	90.629
TOTAL BORROWING		1112.402	977.802	830.368
DEFERRED TAX LIABILITIES		21.388	20.787	14.884
TOTAL		2387.824	2173.713	1909.690
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		297.252	319.783	323.057
Capital work-in-progress		199.357	187.909	157.277
INVESTMENT		202.779	180.610	146.405
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1028.239	841.925	468.677
	Sundry Debtors	685.605	488.707	650.221
	Cash & Bank Balances	179.082	402.368	78.972
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	499.032	577.389	466.083
Total Current Assets		2391.958	2310.389	1663.953
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	329.954	415.880	272.450
	Other Current Liabilities	293.297	332.534	33.876
	Provisions	80.271	76.564	74.676
Total Current Liabilities		703.522	824.978	381.002
Net Current Assets		1688.436	1485.411	1282.951
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2387.824	2173.713	1909.690

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1916.238	1559.855	1381.665
		Other Income	53.171	37.760	39.494
		TOTAL (A)	1969.409	1597.615	1421.159
Less	EXPENSES
		Consumption of Materials	983.272	725.247
		Employees Benefits Expenses	186.068	147.050	1129.001
		Other Expenses	575.561	503.872
		(Increase) / Decrease in Inventories of Finished Goods	(168.567)	(146.802)
		TOTAL (B)	1576.334	1229.367	1129.001
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		393.075	368.248	292.158
Less	FINANCIAL EXPENSES (D)		209.188	126.610	86.762
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		183.887	241.638	205.396
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.864	18.055	15.984
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		165.023	223.583	189.412
Less	TAX (H)		55.200	76.403	63.809
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		109.823	147.180	125.603
Less	SHORT PROVISION FOR TAX IN EARLIER YEARS		5.362	3.362	0.982
	PRIOR PERIOD ITEMS		0.000	0.000	13.212
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		422.763	329.273	255.610
Less	APPROPRIATIONS
		Transfer to General Reserve	15.000	20.000	15.000
		Proposed Final Dividend	19.506	13.004	19.506
		Interim Dividend Paid	0.000	13.004	0.000
		Tax on Interim and Proposed Dividend	3.240	4.320	3.240
	BALANCE CARRIED TO THE B/S		489.478	422.763	329.273
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of export sales	47.178	77.280	41.496
		Interest	7.072	7.226	0.000
	TOTAL EARNINGS		54.250	84.506	41.496
	IMPORTS		504.187	420.942	218.190
	Earnings / (Loss) Per Share (Rs.)		8.03	11.06	8.57

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	340.700	543.200	525.300
Total Expenditure	250.900	420.400	405.600
PBIDT (Excl OI)	89.800	122.800	119.700
Other Income	01.200	03.400	04.300
Operating Profit	91.000	126.200	124.000
Interest	52.600	55.300	45.500
PBDT	38.300	70.900	78.500
Depreciation	04.600	04.500	04.900
Profit Before Tax	33.700	66.400	73.600
Tax	13.300	(00.700)	58.800
Profit After Tax	20.400	67.100	14.800
Other Adjustments	0.000	0.000	0.000
Net Profit	20.400	67.100	14.800

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.57	9.21	8.84
Net Profit Margin (PBT/Sales)	(%)	8.61	14.33	13.71
Return on Total Assets (PBT/Total Assets}	(%)	6.14	8.50	9.53
Return on Investment (ROI) (PBT/Networth)		0.13	0.19	0.18
Debt Equity Ratio (Total Debt/Networth)		0.89	0.83	0.78
Current Ratio (Current Asset/Current Liability)		3.40	2.80	4.37

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:

During the year, the earnings before Interest, Depreciation and Tax was Rs. 393.075 Millions compared to Rs 366.233 Millions in the previous year. The Total Revenue for the year was Rs. 1969.409 Millions as against Rs. 1597.616 Millions in the previous year reflecting a growth of 23.27 %. Profit after tax for the year was Rs. 1,098.23 compared to Rs. 147.180 Millions in the previous year. Despite the higher turnover the profitability of the Company has reduced on account of interest cost and depreciated rupee value.

The Company is a major manufacturer and supplier of Chelated micronutrients, value added secondary nutrient fertilizers and also water soluble NPK fertilizers. In addition, they also have a growing range of farm sprayers and plant protection chemicals, including pesticides, insecticides, fungicides and herbicides in their product portfolio. In total, Aries has 84 brands.

SUBSIDIARIES:

The Company has five subsidiaries viz Aries Agro Care Private Limited, Aries Agro Equipments Private Limited, Aries Agro Produce Private Limited, Golden Harvest Middle East FZC and a Step Down Subsidiary viz Amarak Chemicals FZC.

The operations of Aries Agro Care Pvt. Ltd. commenced in the Financial Year 2008-09 and during the Financial Year 201112 the Company has ended with total revenue of Rs. 3.740 Millions and incurred a loss of Rs. 1.092 Millions.

The business operations of Aries Agro Equipments Pvt. Ltd. commenced in the year 2009-10 in agricultural sprayers. During the Financial Year 2011-12 the Company has a Turnover of Rs. 23.505 Millions with profit after tax of Rs. 2.534 Millions.

The above two Companies are Wholly Owned Subsidiaries of the Company.

There was no business activity in other Subsidiary namely Aries Agro Produce Private Limited during the Financial Year 2011-12 the Company has incurred a loss of Rs. 0.206 Millions

As regards the overseas subsidiary M/S. Golden Harvest Middle East FZC with an installed capacity of 10,800 MT p.a., in their fourth year of operation, has generated a total sale of AED 2,95,14,219/- with a profit of AED 41,03,369/- for the year 2011-12.

Amarak Chemicals FZC, which is a step down Subsidiary of Aries Agro Limited with an installed capacity of 60,000 MT p.a., in their second year of operation, has generated a total sale of AED 2,28,03,625/- and has incurred a loss of AED 4,93,682/- for the year 2011-12.

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 31^st March, 2012 of Aries Agro Care Private Limited, Aries Agro Equipments Private Limited, Aries Agro Produce Private Limited, Golden Harvest Middle East FZC and Amarak Chemicals FZC.

MANAGEMENT DISCUSSION AND ANALYSIS

FORWARD LOOKING STATEMENTS:

This report contains forward looking statements, which may be identified by their use of words like 'plans', 'expects', 'will', 'anticipates', 'believes', 'intends', 'projects', 'estimates', or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Company's strategy for growth, product development, market position, expenditures and financial results, are forward looking statements. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the Directors and Management of the Company, about the business, industry and markets in which the Company operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, many of which are beyond Company's control and difficult to predict, that could alter actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of the Company. In particular, such statements should not be regarded as a projection of future performance of the Company. It should be noted that the actual performance or achievements of the Company may vary significantly from such statements.

MANUFACTURING BASE:

Aries has scaled up the utilization of its manufacturing facilities during the year 2011-12 and the total capacity utilization currently stands at 48 percentage of the total installed capacity of 84,600 MT p.a. in India. Their international manufacturing facilities at UAE have also shown improved capacity utilization which currently stands at 30 percentage of the total installed capacity overseas.

The Company has also procured land admeasuring 3 acres at Chhatral, located near Ahmedabad, Gujarat, for shifting the existing manufacturing unit at Sanand. The construction and commissioning of this new Unit will be carried out during the second half of 2012-13.

They were awarded "Certificate of Excellence' in recognition of their Exemplary Growth - in this year's Inc India 500 ranking of India's 500 fastest-growing mid-size enterprises. Inc. India 500 is an offshoot of the annual Inc. 500 Awards: "Est. in 1982 in America. Inclusion on this list is a mark of entrepreneurial success and elevates their company above its competitors and is a proof of the talent, drive and hard work their team have brought to their business.

GLOBAL SOURCING:

Aries has sourced 73 percentages of its total raw materials from overseas suppliers located in China, UAE, Belgium, South Africa, South America, Jordan, Taiwan, Japan and Israel. Imports constitute 50 percentage of their total purchases and their Company has identified a pool of reliable overseas suppliers. However, the depreciation in the Indian rupee and large volatility in exchange rates during the financial year 2011-12 especially after October 2011 have resulted in a foreign exchange loss of over Rs. 14.900 Millions in total during the year

INDUSTRY TRENDS:

2011-12 once again highlighted the dependence of the agri business sector on weather conditions. The Kharif (summer) season began about a month late due to delayed rains. But there was adequate rainfall received during the season over all. As a result, the first half of the financial year showed positive growth and healthy demand for the entire range of products.

However, this was followed by highly unlikely situation of an extreme cold wave during the Rabi (winter) season. Cold wave conditions have never existed in such a widespread fashion in the past and it resulted in several crops across all Northern and Central states being affected due to crop dormancy and frost attack. Productivity being adversely affected, several areas did not generate the kind of demand as in the past years. The winter season did hamper their growth plans as a result of this new uncertainty. Despite this, the Company's revenues increased by 16 percent in the second half of the year. Though for the sake of improving demand additional trade schemes and discounts were offered to retain market share affecting profitability in the fourth quarter.

The highly erratic supply position and increased rates of Urea and DAP fertilizers added to the demand for the Company's range of NPK Water Soluble Fertilizers. The growth of this segment of the Company's product range has changed the product mix. As a result, Aries sales of water soluble fertilizers now constitutes 15 percent of the total sales, an increase of 45.68 percent over the previous year. It must be noted that the margins on NPK Water Soluble Fertilizer are lower than micronutrients and secondary nutrients as a result of which increased sales in this segment (especially in the second half of the year) did have an impact on overall margins.

INTEREST COSTS:

Aries' business is working capital intensive and necessitates providing seasonal credit to dealers and distributors and maintaining inventories at 22 number of depots and 6 factories across the country. With a portfolio of 84 brands and multiple Stock Keeping Units (SKUs) for large number of products, the inventory load on working capital is also significantly high. As a result, the Company's working capital funding costs have risen especially due to interest rates being increased on numerous occasions during the financial year. In absolute terms the year showed an increase in interest costs by Rs.82.600 Millions and this represents an increase of 65%.

They recognize that a move to non-funded sources of working capital and also maintaining inventory of only 10 - 15 key products which constitutes the majority of the business of the Company is an alternative to reduce this drain on the Company's profitability due to increase interest costs.

The Company is taking steps to manage its inventory in line with the above strategy and is also imposing a new credit control system.

OUTLOOK:

The 2012 monsoons are expected to commence on schedule and all indications based on the Meteorological Dept. forecasts shows that the summer season will see the country receive 98% of its long period average rainfall with a maximum 5% variation. This 'near normal' forecast sounds positive and they hope the spread and timing of the rain is also adequate.

The Company will be adding additional 2 products during the year 2012-13 including Zincated Sulphur Bentonite and Horticulture Mineral Oil for biological control of egg laying pests.

However, they shall also be progressively phasing out 10 numbers of products which are very similar to existing products in the range to avoid some amount of duplication and reduce the number of stock keeping units in their inventory.

FINANCIAL PERFORMANCE:

The Company's Sales Turnover for the financial year ended March 31, 2012 increased to Rs. 1916.238 Millions from Rs. 1559.856 Millions in the previous year, registering a growth of 22.85%. Total expenses for the year were Rs. 1804.386 Millions as against Rs.1374.032 Millions in the previous year. Profit Before Tax decreased to Rs. 165.024 Millions during the year as against Rs. 223.583 Millions in the previous year. The decrease in Profit Before Tax translates to 26 %. Tax provision for the year was Rs. 55.201 Millions as against Rs. 76.403 Millions in the previous year which translates to 2.88% on FY 11-12 Sales. Profit After Tax for the year was Rs. 109.823 Millions as against Rs. 147.180 Millions in the previous year which is 5.73 % of FY 11-12 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

STATEMENT OF UNAUDITED FINANCIAL RESULT FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2012

Rs. in Millions

Sr. No.	Particular	Three Months Ended	Preceding Three Months Ended	Year to Date Figures For Previous Period Ended
		31.12.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
1.	Net Sales/Income from Operations	525.246	543.178	1409.107
	Other Operating Income	0.000	0.000	0.000
	Total Income From Operations (Net)	525.246	543.178	1409.107
2.	Expenditure
	Consumption of Materials / Rebranded Goods	226.195	398.841	686.592
	Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade	14.397	(166.653)	(93.664)
	Employee Benefits Expense	46.533	39.606	117.333
	Depreciation & Amortization Expense	4.938	4.459	14.010
	Other Expenses	118.475	148.610	366.659
	Total Expenses	410.538	424.862	1090.930
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	114.707	118.316	318.177
4.	Other Income	4.330	3.392	8.472
5.	Profit Before Interest and Exceptional Items (3+4)	119.037	121.708	326.649
6.	Interest	45.480	55.267	152.951
7.	Profit After Interest but before Exceptional Items (5-6)	73.557	66.442	173.698
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	73.557	66.442	173.698
10.	Tax Expense
	a) Current tax	15.600	0.000	15.600
	b) Deferred tax	43.083	(0.779)	44.073
	c) Wealth Tax	0.125	0.125	0.375
	Total	58.808	(0.654)	60.048
11.	Net Profit from Ordinary Activities after Tax (9-10)	14.749	67.096	113.649
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	14.749	67.096	113.649
	Minority Interest	--	--	--
	Net Profit (+) / Loss (-) after Taxes, Minority Interest	14.749	67.096	113.649
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	130.043	130.043	130.043
15.	Reserves Excluding Revaluation Reserve	1260.020	1146.371	1260.020
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	1.13	5.16	8.74
	b) Basic and diluted EPS after extraordinary items	1.13	5.16	8.74
17.	Public Shareholding
	-Number of Shares	6146413	6146413	6146413
	- Percentage of Shareholding	47.26	47.26	47.26
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	6857926	6857926	6857926
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100	100	100
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	52.74	52.74	52.74

Particulars	3 Months ended on 31.12.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

NOTES:

1 As the Company's business activity falls within a single primary business segment, the disclosure requirements of Accounting Standard (AS-17) " Segment Reporting ", specified in the Company's ( Accounting Standard ) Rules, 2006 are not applicable.

2 The above Financial Results were reviewed and recommended by the Audit Committee and there upon approved by the Board of Directors at their respective meetings held on 14th February, 2013

3 The Statutory Auditors have carried out a Limited Review of the Results for the Quarter Ended 31st December, 2012

4 The Standalone / Consolidated results are for the Quarter and Nine months ended 31st December, 2012.

5 The Consolidated Un-Audited Financial Statements have been prepared in accordance with Accounting Standard 21" Consolidated Financial Statements" as notified by Companies (Accounting Standard) Rules, 2006.

6 Previous Period's / Year's figures have been re-grouped / re-arranged wherever necessary to correspond with the Current Period's figures.

7 The above results will be made available at the Company's Website at www.ariesagro.com on or after 15th February, 2013.

8 Tax Liability has been computed in line with the provisions of the Income Tax Act, 1961.

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 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.54.30
UK Pound	1	Rs.82.88
Euro	1	Rs.70.80

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	TPT

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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.