MIRA INFORM REPORT

Report Date :

09.10.2013

IDENTIFICATION DETAILS

Name :	AARTI DRUGS LIMITED
Registered Office :	Plot No. 198, MIDC Tarapur, Taluka Palghar, Village Pamtermbhi, District Thane – 401506, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.09.1984
Com. Reg. No.:	11-055433
Capital Investment / Paid-up Capital :	Rs.121.086 Millions
CIN No.: [Company Identification No.]	L37060MH1984PLC055433
TAN No.: [Tax Deduction & Collection Account No.]	MUMA18926F/ MUMA20113C
PAN No.: [Permanent Account No.]	AAACA4410D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Selling of Pharmaceuticals and Bulk Drugs.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 8300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade term and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating: BBB+
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	30 August 2013

Rating Agency Name	ICRA
Rating	Short term rating: A2+
Rating Explanation	Strong degree of safety and carry low credit risk.
Date	30 August 2013

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

Management Non – Cooperative (91-22-24072249)

LOCATIONS

Registered Office :	Plot No. 198, MIDC Tarapur, Taluka Palghar, Village Pamtermbhi, District Thane – 401506, Maharashtra, India
Tel. No.:	91-22-24072249 (5 Lines) / 52571698/ 24019025
Fax No.:	91-22-24073462/ 24070144
E-Mail :	aarti@giasbm01.vsnl.net.in secretarial@aartigroup.com sunny.p@aartidrugs.com finacc@aartigrugs.com
Website :	www.aartidrugs.com
Corporate Office :	Mahendra Industrial Estate, Ground Floor, Plot No. 109-D Road, No. 29, Sion (East), Mumbai-400 022, Maharashtra, India
Tel. No.:	91-22-24019025 (30 Lines)
Fax No.:	91-22-24073462 / 24070144
Factory 1 :	Plot Nos N-198, G-60, E-120, K-40, K-41, E-9/3-4 and E-21/22, MIDC Industrial Area, Tarapur, Village Pamtembhi, Taluka Palghar, Thane – 401506, Maharashtra, India
Factory 2 :	Plot Nos. 2902/2904, GIDC, Sarigam – 396155, District Valsad, Gujarat, India
Research and Development Centers :	· Plot Nos. N-198 and G-60, MIDC Industrial Area, Tarapur, Village Pamtembhi, Taluka Palghar, Thane – 401506, Maharashtra, India · Plot Nos. D-277/278, TTC Industrial Area, Turbhe, Navi Mumbai, Maharashtra, India

DIRECTORS

As on 31.03.2013

Name :	Mr. Chandrakant V. Gogri
Designation :	Chairman Emeritus
Name :	Mr. Rajendra V. Gogri
Designation :	Chairman (w.e.f. 16 August, 2012)
Name :	Mr. Prakash M. Patil
Designation :	Managing Director and Chief Executive Director
Date of Birth/Age :	16.08.1947
Qualification :	B. Chem.
Date of Appointment :	05.01.1985
Name :	Mr. Harshit M. Savla
Designation :	Joint Managing Director
Date of Birth/Age :	19.11.1962
Qualification :	B. Com
Date of Appointment :	02.01.1987
Name :	Mr. Harit P. Shah
Designation :	Whole Time Director
Date of Birth/Age :	12.10.1963
Qualification :	B. Com
Date of Appointment :	15.09.1995
Name :	Mr. Uday M. Patil
Designation :	Whole Time Director
Date of Birth/Age :	23.06.1963
Qualification :	H.S.C.
Date of Appointment :	18.10.2000
Name :	Rashesh C. Gogri (w.e.f. 16^th August, 2012)
Designation :	Whole Time Director
Name :	Mr. Ramdas M. Gandhi
Designation :	Independent Directors
Name :	Mr. Bhavesh R. Vora
Designation :	Independent Directors
Name :	Prof. Krishnacharya G. Akamanchi
Designation :	Independent Directors
Name :	Dr. Vilas G. Gaikar
Designation :	Independent Directors
Name :	Mr. Sunil M. Dedhia
Designation :	Independent Directors
Name :	Mr. Navin C. Shah
Designation :	Independent Directors

KEY EXECUTIVES

Name :	Mr. Sunny Pagre
Designation :	Company Secretary
Name :	Mr. Adhish P. Patil
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5931493	48.99
Bodies Corporate	1132791	9.36
Sub Total	7064284	58.34
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7064284	58.34
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	2	0.00
Foreign Institutional Investors	75981	0.63
Sub Total	75983	0.63
(2) Non-Institutions
Bodies Corporate	165303	1.37
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2147601	17.74
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2604852	21.51
Any Others (Specify)	50527	0.42
Non Resident Indians	38052	0.31
Any Other	12475	0.10
Sub Total	4968283	41.03
Total Public shareholding (B)	5044266	41.66
Total (A)+(B)	12108550	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)	12108550	0.00

SHAREHOLDING BELONGING TO THE CATEGORY "PROMOTER AND PROMOTER GROUP"

SL No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Prakash Moreshwar Patil	8,03,508	6.64	0.00
2	Priti Prakash Patil	5,37,721	4.44	0.00
3	Renil Rajendra Gogri	4,15,630	3.43	0.00
4	Mirik Rajendra Gogri	3,14,957	2.60	0.00
5	Harshit Manilal Savla	3,05,999	2.53	0.00
6	Rajendra Vallabhaji Gogri	2,95,485	2.44	0.00
7	Chandrakant Vallabhaji Gogri	2,77,129	2.29	0.00
8	Jaya Chandrakant Gogri	2,56,019	2.11	0.00
9	Seema Harshit Savla	2,01,185	1.66	0.00
10	Rashesh Chandrakant Gogri	1,81,500	1.50	0.00
11	Hetal Gogri Gala	1,79,538	1.48	0.00
12	Rashesh Chandrakant Gogri	1,66,700	1.38	0.00
13	Hetal Gogri Gala	1,49,137	1.23	0.00
14	Seema Harshit Savla	1,46,399	1.21	0.00
15	Adhish P. Patil	1,41,722	1.17	0.00
16	Rashesh Chandrakant Gogri	1,17,877	0.97	0.00
17	Harshit Manilal Savla	1,10,955	0.92	0.00
18	Sushila Manilal Savla	1,01,104	0.83	0.00
19	Prakash Moreshwar Patil	1,00,000	0.83	0.00
20	Harshit M. Savla(Huf)	96,192	0.79	0.00
21	Arti Rajendra Gogri	93,679	0.77	0.00
22	Aashay Rashesh Gogri	91,883	0.76	0.00
23	Jigna H. Shah	71,856	0.59	0.00
24	Aarti Rajendra Gogri	69,000	0.57	0.00
25	Chandrakant Vallabhji Gogri	68,110	0.56	0.00
26	Vishwa Harshit Savla	60,685	0.50	0.00
27	Bhoomi Harshit Savla	59,050	0.49	0.00
28	Jay Manilal Savla	57,866	0.48	0.00
29	Jaya Chandrakant Gogri	45,994	0.38	0.00
30	Vishwa Harshit Savla	39,315	0.32	0.00
31	Rajendra Vallabhaji Gogri	38,500	0.32	0.00
32	Prakash Moreshwar Patil	36,956	0.31	0.00
33	Prakash Moreshwar Patil	33,573	0.28	0.00
34	Hetal Gogri Gala	25,258	0.21	0.00
35	Manilal Popatlal Savla	22,537	0.19	0.00
36	Indira Madan Dedhia	21,883	0.18	0.00
37	Prakash M Patil(Huf)	21,598	0.18	0.00
38	Manisha Rashesh Gogri	21,000	0.17	0.00
39	Seema Harshit Savla	20,698	0.17	0.00
40	Bhoomi Harshit Savla	20,660	0.17	0.00
41	Hetal Gogri Gala	19,650	0.16	0.00
42	Jaya Chandrakant Gogri	14,100	0.12	0.00
43	Hetal Gogri Gala	12,500	0.10	0.00
44	Renil Rajendra Gogri	12,500	0.10	0.00
45	Jaya Chandrakant Gogri	11,407	0.09	0.00
46	Rajendra Vallabhji Gogri	9,495	0.08	0.00
47	Arun Moreshwar Patil	8,118	0.07	0.00
48	Uday Moreshwar Patil	6,300	0.05	0.00
49	Manisha Rashesh Gogri	4,025	0.03	0.00
50	Manilal Popatlal Savla	4,000	0.03	0.00
51	Dhanvanti Vallabhji Gogri	3,490	0.03	0.00
52	Chandrakant V. Gogri	2,751	0.02	0.00
53	Indira Madan Dedhia	1,648	0.01	0.00
54	Arti Rajendra Gogri	986	0.01	0.00
55	Jay Manilal Savla	854	0.01	0.00
56	Sushila Manilal	800	0.01	0.00
57	Seema Harshit Savla	11	0.00	0.00
58	Aarti Industries Limited	6,00,059	4.96	0.00
59	Gogri And Sons Investments Private Limited	2,19,686	1.81	0.00
60	Alchemie Leasing And Financing Private Limited	1,87,667	1.55	0.00
61	Gogri And Sons Investments Private Limited	1,16,300	0.96	0.00
62	Alchemie Financial Services Limited	3,175	0.03	0.03
63	Alchemie Leasing and Financing Private Limited	2,450	0.02	0.02
64	Rupal Drugs Llp	1,775	0.01	0.01
65	Alchemie Pharma Chem Limited	1,679	0.01	0.01
	Total	70,64,284	58.34	0.00

SHAREHOLDING BELONGING TO THE CATEGORY "PUBLIC" AND HOLDING MORE THAN 1% OF THE TOTAL NO. OF SHARES

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Pallavi Savla	389923	3.22	3.22
2	Harit Pragji Shah	355269	2.93	2.93
3	Samir Pragji Shah	130073	1.07	1.07
4	Jayshree Harit Shah	182090	1.50	1.50
5	Liza Nemjee Savla	144635	1.19	1.19
	Total	1201990	9.93	9.93

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Pharmaceuticals and Bulk Drugs.

Products :

Item Code No. (ITC Code)	Product Description
293329-02	Metronidazole
293329-01	Tinidazole
294190-30	Ciprofloxacin

PRODUCTION STATUS (As on: 31.03.2013)

Particulars	Unit	*Licensed	Installed	Production	Captive	Net Production
Pharmaceuticals	Kgs.	--	29,544	23,963.90	2277.11	21,686.79

NOTE: * As license is not required Licensed Capacity not given.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Bank of Baroda
• Union Bank of India
• State Bank of India
• The Bank of Nova Scotia
• Standard Chartered Bank
• DBS Bank Limited
• IDBI Bank Limited
• Citi Bank N.A.
• HSBC
• ICICI Bank Limited
• Kotak Mahindra Bank Limited

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

From Financial Institutions

232.572

246.667

From Scheduled Banks

442.410

422.571

Short-term borrowings

Loans repayable on demand

From Banks

1346.969

1173.706

Total

2021.951

1842.944

Note:

Securities for loans taken from Banks:

(Rs. In Millions )

Bank Name	As at 31-March-13	As at 31-March-12	F.Y 2013-14	Subsequent Years
Industrial Development Bank of India	11.111	108.333	11.111	0.000
Export Import Bank of India	300.667	284.762	68.095	232.572
Kotak Mahinda Bank Limited	200.000	0.000	0.000	200.000
Standard Chartered Bank	265.860	348.320	114.450	151.410
DBS Bank Limited	145.600	182.000	54.600	91.000

Note:

1) Above term loan are secured by pari-pasu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No. N-198, G-60, E21-22, K-40, K-41 E120, E9/3 and E9/4, and MIDC Turbhe Plot No. D-277 and D-278 in Maharashtra and at GIDC, Sarigam, Bhilad-Gujarat viz. Plot No. 2902, 2904.

2) Kotak Mahindra bank loan is also secured by second charge on current assets of the company both present and future.

b. Loans from Scheduled Banks Rs.1346.968 Millions are secured by hypothecation of Company's raw materials stock, stock-in-process, finished goods, packing materials, stores and spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets. both present and future situated at MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 and 22, K-40 and K-41, E-120 and E-9/3 and E-9/4, W-60(B) 61(B) 62(B) 71(B) 72(B). GIDC, Bhilad, Sarigam-Gujrat viz. Plot No. 2902, 2904 and at Turbhe Plot No. D-277 and D-278. The working Directors of the Company have personally guaranteed these loans.

Banking Relations :
Auditors :
Name :	Parikh Joshi and Kothare Chartered Accountants
Address :	49/2341, M. H. B. Colony, Gandhi Nagar, Bandra (East), Mumbai – 400051, Maharashtra, India
Solicitors:	M.P. Savla and Company, Bharat House, 2^nd floor, 104 Mumbai Samachar Marg, Mumbai – 400 001.
Associates:	Huanggang Yinhe Aarti Pharmaceutical Company Limited
Enterprise/firms over which controlling individuals have significant influence.	Aarti Industries Limited Anushakti holdings Limited Rupal Drugs LLP Anushakti Chemical and Drugs Limited Gogri and Sons Investments Private Limited Alchemie Gases and Chemicals Private Limited Alchemie Leasing and Financing Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
21500000	Equity Shares	Rs.10/- each	Rs.215.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12108550	Equity Shares	Rs.10/- each	Rs.121.086 Millions

NOTE:

Reconciliation

Particulars	Numbers	(Rs. In Millions)
Opening outstanding shares	12108550	121.085
Closing outstanding shares	12108550	121.085
Note: There is no movement in shares during the year

Disclosures of shares held by each shareholders more than 5% shares:

Name of Shareholders	As at 31^st March, 2013
	No. of Share held	% held
Prakash M. Patil	966464	7.98
Aarti Industries Limited	651059	5.38

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	121.086	121.085	121.086
(b) Reserves & Surplus	1954.993	1643.713	1444.078
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2076.079	1764.798	1565.164
(3) Non-Current Liabilities
(a) long-term borrowings	807.045	669.238	743.415
(b) Deferred tax liabilities (Net)	275.120	244.720	222.966
(c) Other long term liabilities	100.331	77.100	75.684
(d) long-term provisions	28.574	0.000	0.000
Total Non-current Liabilities (3)	1211.070	991.058	1042.065
(4) Current Liabilities
(a) Short term borrowings	2149.835	2055.704	1472.276
(b) Trade payables	1318.933	937.857	773.629
(c) Other current liabilities	302.406	286.561	241.625
(d) Short-term provisions	138.865	90.216	64.127
Total Current Liabilities (4)	3910.039	3370.338	2551.657
TOTAL	7197.188	6126.194	5158.886
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	2912.310	2735.363	2242.096
(i) Capital work-in-progress	125.889	29.909	103.747
(ii) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	51.319	69.184	246.130
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	25.572	22.659	86.257
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	3115.090	2857.115	2678.230
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1409.191	979.076	831.590
(c) Trade receivables	2156.748	1806.035	1258.301
(d) Cash and cash equivalents	28.788	49.439	35.855
(e) Short-term loans and advances	196.033	271.487	227.621
(f) Other current assets	291.338	163.042	127.289
Total Current Assets	4082.098	3269.079	2480.656
TOTAL	7197.188	6126.194	5158.886

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	8248.414	6592.609	4964.241
		Other Income	9.057	30.817	0.778
		TOTAL (A)	8257.471	6623.426	4965.019
Less	EXPENSES
		Cost of materials consumed	4924.374	3811.201	2730.005
		Purchase of stock-in-trade	854.273	733.602	842.131
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(225.936)	(9.166)	(161.820)
		Employee benefit expense	285.287	248.268	178.746
		Other expenses	1216.131	1036.818	749.044
		Exceptional Items	4..363	11.627	0.000
		TOTAL (B)	7058.492	5832.350	4338.106
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1198.979	791.076	626.913
Less	FINANCIAL EXPENSES (D)		280.355	226.719	134.780
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		918.624	564.357	492.133
Less/ Add	DEPRECIATION/ AMORTISATION (F)		259.840	242.159	177.406
	PROFIT BEFORE TAX (E-F) (G)		658.784	322.198	314.727
Less	TAX (H)		206.400	97.588	90.000
	PROFIT AFTER TAX (G-H) (I)		452.384	224.610	224.727
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1325.300	1250.600	NA
	APPROPRIATIONS
		Income tax of Earlier Year	0.000	8.600	NA
		Transfer to General Reserve	45.000	23.600	NA
		Proposed Dividend 40%	48.400	36.300	NA
		1st Interim Dividend 30%	36.300	24.200	NA
		2nd Interim Dividend 30%	36.300	0.000	NA
		Tax on Dividend	20.100	9.800	NA
	BALANCE CARRIED TO THE B/S		1591.600	1325.300	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2964.030	2460.501	1832.710
	TOTAL EARNINGS		2964.030	2460.501	1832.710
	IMPORTS
		Raw Materials	2699.919	1793.360	1385.643
		Capital Goods	15.492	4.916	18.229
	TOTAL IMPORTS		2715.411	1798.276	1403.872
	Earnings Per Share (Rs.)		37.36	17.84	18.56

QUARTERLY RESULTS

Particulars	30.06.2013
	1^st Quarter
Net Sales	2186.500
Total Expenditure	1877.100
PBIDT (Excl OI)	309.400
Other Income	0.000
Operating Profit	309.400
Interest	72.100
Exceptional Items	0.000
PBDT	237.300
Depreciation	66.900
Profit Before Tax	170.400
Tax	52.000
Provisions and contingencies	0.000
Profit After Tax	118.400
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	118.400

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.48	3.39	6.34
Net Profit Margin (PBT/Sales)	(%)	7.98	4.86	6.34
Return on Total Assets (PBT/Total Assets}	(%)	9.22	5.32	6.41
Return on Investment (ROI) (PBT/Networth)		0.32	0.18	0.20
Debt Equity Ratio (Total Debt /Networth)		1.42	1.54	1.42
Current Ratio (Current Asset/Current Liability)		1.04	0.97	0.97

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

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	No
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	No
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN 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

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
From Directors	18.800	0.000
From Other	113.263	0.000
Short-term borrowings
Loans repayable on demand From Banks	802.866	744.505
From Directors	0.000	28.700
From Other	0.000	108.794
Total	934.929	881.999

OPERATIONS REVIEW

During the year, the Company has achieved Sales Turnover of Rs.8857.500 Millions (Previous Year: Rs.6991.800 Millions) registering a growth of 26.68%.

Further, the Company has achieved Export Turnover of Rs.3222.000 Millions as against Rs.2807.100 Millions for the last year, registering a growth of 14.78%.

Operating Profit before Interest, Depreciation, Amortization and Tax, has been Rs.1203.400 Millions (Previous Year Rs.802.700 Millions), registering a growth of 49.92%. Profit After Tax has been Rs.452.400 Millions (Previous Year Rs.224.600 Millions), registering a growth of 101.42%.

The company had carried out expansion programmes in the year 2010-11 and 2011-12 keeping long term view in the mind, inspite of recessionary conditions prevailing globally. The company reaped the benefit of utilization of expanded capacity for the full year which has resulted into increased sales. In addition, last year one of their location at Sarigam suffered loss of production for three months due to general environmental clearance issue in the area. During the year, they successfully operated that plant at higher capacity. Due to overall higher capacity utilization across the company, the overheads got spread over increased production which led to reduction in costs and thus increase in the profitability.

Fire incident occurred on 22.03.2013 at one of the Production block of the manufacturing unit located at Plot No. N - 198 Tarapur manufacturing MNI, an intermediate which is further processed to manufacture two APIs. Loss / damage caused to stock and fixed assets due to fire incident has been covered under insurance and accounted for appropriately.

The Company could arrange to outsource the said intermediates from outside and supplies of said APIs were restored to customers within a period of a month.

MANAGEMENT DISCUSSION AND ANALYSIS

Pharmaceutical industry – Global and Indian

The global pharmaceutical market has seen high growth over the past few years, spurred primarily by the North American market. However, there is a gradual growth movement towards emerging markets, where availability of healthcare is expanding and there is an increasing need for treatments associated with chronic disease more typically found in developed countries till date. Emerging markets currently represent 16% of the global market (IMS health), but are expected to contribute 40% of growth by 2014.

The Indian pharmaceutical industry has been an important constituent of the pharmaceutical sector worldwide with rising use of generics, and the high cost competitiveness backed by the high quality scientific talent. The Indian pharmaceutical industry consisting of Bulk Drug Exports, Formulation Exports, and Domestic Formulations is expected to grow to around US $ 52 billion by the year 2014-15 at a CAGR of 17.2% from the year 2011-12. The domestic formulations market is expected to grow with a CAGR of 13.5% from 2008-09 to reach a size of US $ 17.3 billion by 2014-15. Export formulations are poised to reach a size of US $ 14.9 billion growing at a CAGR of 20% from 2008-09 to 2014-15. And the most importantly Bulk drugs are projected to be US $ 19.8 billion by 2015 growing at a CAGR of 19.5% from 2008-09 to 2014-15.

BUSINESS STRATEGY

Domestic Market and Trends:

The Indian bulk drug industry world-wide has grown as a direct offset of formulation growth. With a growth of 34%

over the past five years, Indian bulk drug exports have grown to reach US $ 6.8 billion in 2008-09 from US $ 1.6 billion in 2003-04. Aarti Drugs Limited (ADL) has a strong regulatory framework and cGMP level documentation which is becoming a standard requirement of most of the big Indian pharmaceutical companies. High process efficiency and high standard for quality has created good brand name for ADL in the space of Antibiotic,Antidiabetic, Antifungal, Antidiarrheal, Anti-inflammatory and Antihypertensive therapeutic segments. Indian pharmaceutical market is growing fast due to penetration of health services in rural areas of the country. There is also a shift in demand from drugs treating hygiene related diseases to drugs treating lifestyle related diseases in the urban sector.

ADL has capital expenditure plans of constructing new facilities, few of which will start giving production output in the coming year. These will cater to ever increasing Antidiabetic segment.

Export Market and Trends:

Growing generic costs and rising cost pressures faced by innovators have provided a significant opportunity to bulk drug players. In addition, strengths such as low cost manufacturing, high process chemistry skills, manufacturing facilities and increasing number of DMF filings have fuelled growth in bulk drug exports. ADL facilities are cGMP approved with certifications like USFDA, WHO GMP, TGA and ISO. ADL is constantly growing its presence in regulated markets by offering series of products from its USFDA, TGA certified plants, as well as Japanese accredited plants. ADL also has ANVISA certification of Brazilian authorities and COFEPRIS of Mexican authorities to cater to Latin American market in three of its major products.

ADL is constantly working to keep its facilities up to the standards of cGMP as they plan to harness and grow their market share in semi-regulated like South East Asia and Non American regulated markets.

ADL will continue to cater global pharmaceutical markets through following channels:

• Contract Manufacturing
• Direct Exports

Increasing its share of direct exports to regulated and non–regulated markets Continuing R and D on the molecules that will go off patent in near future

• Indirect Exports

Supplying APIs for domestic formulations for regulated markets

SWOT ANALYSIS

Strengths and opportunities:

Although in general cost of manufacturing is lower in China than in India, ADL has been able to keep it's costs to minimum possible and aggressively compete with Chinese competitors. Moreover, global players prefer Indian manufacturers to Chinese due to documentation and quality issues. Furthermore, currently ADL has customer audited and FDA approved facilities which give us an edge over competition throughout the world.

ADL continues to enjoy economies of scale due to its large production capacities in Anti Diarrhea, Anti Inflammatory, Anti Fungal, and Anti Biotic segment. Bigger market share will automatically help us to be competitive in market due to lower overheads and better bargaining power. Since inception, ADL has been exporting to 97 countries worldwide indicating its strong logistics and geographic spread of ADL brand.

ADL is operating its two State-of-the Art RandD Centers, at Tarapur, which are recognized by Department of Science and Industry Research, Government of India, and at Turbhe, Navi Mumbai. Their scientists are constantly working for developing technology, non-infringing route of synthesis, scale up and its transfer to manufacturing location for commercialization. They actively work not only on bulk drugs in various therapeutic categories but also on speciality chemicals for non-API related applications. ADL has 29 years of manufacturing experience and has developed expertise in various reactions for bigger volumes of production, which is a key strength in API manufacturing industry.

Weaknesses, Risks and concerns:

Variation in crude oil prices would always be area of concerned. ADL has already installed greener technologies like briquette fired boilers, economizers etc. to save power and fuel costs. ADL was able to cope up with these pressures due to strong operational efficiency and increased market share of its products.

Extreme volatility of exchange rate of rupee against US dollar can have significant impact on ADL operations because approximately 40% of it's total revenues consists of exports. However, more than 85% of this exposure is naturally hedged due to the imports. ADL has a strict FOREX policy of hedging all of its foreign currency loans thus mitigating the risk of volatility of exchange rate.

DISCUSSION ON FINANCIAL and OPERATIONAL PERFORMANCE

During the year the Company has achieved topline of Rs.885.75 crores, achieving a y-o-y growth of

26.68% correspondingly EBIDTA worked out to Rs.120.34 crores as against Rs.80.27 crores in the previous year recording a growth of 49.92%. Net profit after tax was Rs.45.24 crores as against Rs.22.46 crores in the previous year recording growth of 101.42%.

The Company had carried out expansion programmes in the year 2010-11 and 2011-12 keeping long term view in the mind, inspite of recessionary conditions prevailing globally. The Company reaped the benefit of utilization of expanded capacity for the full year which has resulted into increased sales. In addition, last year one of their location at Sarigam suffered loss of production for three months due to general environmental clearance issue in the area. During the year, they successfully operated that plant at higher capacity. Due to overall higher capacity utilization across the Company, the overheads got spread over increased production which led to reduction in costs and thus increase in the profitability.

Considering increase in cost of crude petroleum and volatility of rupees against dollar, Company had taken steps to replace furnace oil fired boilers to briquette fired boilers in last two years. These steps helped Company to contain its fuel cost.

Above factors resulted in increase in operating margin of the Company for the year as indicated last year in their annual report and reap benefits out of expansion programs as indicated in the last year's discussion on Financial and Operational performance.

OUTLOOK

The Company R and D programs are currently focused on new products amongst therapeutic categories such as Antipsychotic, Antitussive, Antifungal, Antihypertensive, Anticonvulsant, Alcoholism treatment and Anti-inflammatory. These products would be launched in a time-horizon of 2-4 years depending upon patents. Company will continue to do RandD on APIs that are off patents and will work on non-infringing synthesis routes.

ADL has expanded the capacities of its existing products in Anti-Biotic, Anti-Diabetic, Anti-Fungal, and Anti-Diarrhea segments. This has given an impetus to sales volumes. ADL is planning to expand the capacity of its Cardio-protectant, anti-biotic and anti-diabetic and lifestyle related drugs in future.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10416348	05/04/2013	400,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ ARAT - 390015, INDIA	B72179666
2	10277975	27/09/2012 *	4,029,300,000.00	AXIS BANK LIMITED	2ND FLOOR E, AXIS HOUSE BOMBAY DYEING MILLS, COMP OUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B58466764
3	10138812	31/12/2008	50,000,000.00	UNION BANK OF INDIA	UNIONBANK BHAVAN,239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A54784087
4	10123916	11/08/2008	148,400,000.00	UNION BANK OF INDIA	UNION BANK BHAVAN, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A46304267
5	10071461	19/01/2009 *	200,000,000.00	EXPORT IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A55963920
6	10053436	23/04/2007	10,000,000.00	UNION BANK OF INDIA	239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A15936784
7	90151151	22/12/2003	1,000,000.00	EXPORT IMPORT BANK OF INDIA	CENTRE ONE WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
8	90150595	22/12/2008 *	1,313,050,000.00	UNION BANK OF INDIA	UNIONBANK BHAVAN,239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A54286406
9	90150570	19/01/2009 *	1,428,250,000.00	UNION BANK OF INDIA	UNIONBANK BHAVAN,239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A57811341
10	90150312	20/03/2000 *	15,000,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 239 VIDHAN BHAVAN NARI MAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-

Note: * Date of charge modification

CONTINGENT LIABILITIES:

a. In respect of bank guarantees issued and L/C opened by the Company's bankers Rs. 268.984 Millions (As at 31-March-2012 Rs.225.787 Millions)

b. Demand in respect of additional income tax disputed in appeal Rs. 48.526 Millions (As at 31-March 2012 Rs.25.064 Millions).

c. Demand /Rebate in respect of Excise duty in case of Ammonium Sulphate of Rs.10.290 Millions (as at 31st March 2012 Rs.10.290 Millions). The hon'ble high Court of Mumbai has decided the appeal in favour of the Company in February 2010 on the basis of its earlier judgment in a similar case. however, as per information available with the Company, the Department of Central Excise has filed an appeal in that precedent case in the Supreme Court, hence the company has continued to disclose this matter.

d. Liability for duty on raw material imported under advance licence benefit scheme against which export obligation remained to be fulfilled Rs.16.398 Millions (As at 31-March-2012 Rs.5.538 Millions).

e. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 73.139 Millions (As at 31-March-2012 Rs.41272 Millions)

STATEMENT OF AUDITED FINANCIAL RESULT FOR THE QUARTER ENDED 30^TH JUNE, 2013

(Rs. In Millions)

Sr.		Quarter Ended
No	PARTICULARS	30.06.2013
		(Audited)
1	Income from Operations
	(a) Gross Sales / Income from Operations	2352.700
	Less : Excise Duty & Sales Tax	166.800
	(a) Net Sales / Income from Operations	2185.900
	(Net Of Excise Duty & Sales Tax)
	(b) Other Operating Income	0.500
	Total income from operations (net)	2186.500
2	Expenditure
	(a) Cost of materials consumed	1308.800
	(b) Purchase of stock-in-trade	248.300
	(c) Changes in inventories of finished goods,	(57.700)
	work-in-progress and stock-in-trade
	(d) Employee benefits expense	74.000
	(e) Depreciation and Amortisation Expense	66.900
	(f) Other expenses	303.000
	Total expenses	1944.300
3	Profit from Operations before Other Income,
	finance costs and exceptional items (1-2)	243.200
4	Other Income	-
5	Profit from ordinary activities before finance cost and exceptional items (3+4)	243.200
6	Finance costs (interest)	72.800
7	Profit from ordinary activities after finance cost
	but before Exceptional Items (5-6)	170.400
8	Exceptional Items	-
g	Profit from Ordinary Activities before Tax (7-8)	170.400
10	Tax Expenses (Includes)	52.000
	Provision for Taxation	44.000
	Provision for Deferred Taxation	8.000
11	Net profit from ordinary Activities after Tax (9-10)	118.400
12	Paid-up Equity Share Capital of Rs.10/- each.	121.100
13	Reserves & Surplus (excluding revaluation reserves)	-
14.	Earning per share (of Rs. 10 /- each) (not annualised)
	Basic & Diluted	9.78
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- Number of Shares	5,044,266
	- Percentage of Total Shareholding	41.66
2	Promoters & Promoter Group shareholding a) Pledged/Encumbered
	- Number of Shares	Nil
	- Percentage of shares( as a % of the total shareholding of promoter and promoter group)	Nil
	- Percentage of shares( as a % of the total Share capital of the company)	Nil
	b) Non-encumbered
	- Number of Shares	7,064,284
	- Percentage of shares( as a % of the total Shareholding of promoter and promoter group)	100
	- Percentage of shares( as a % of the total Share capital of the company)	58.34

B INVESTOR COMPLAINTS	Quarter Ended 30th June, 2013
Pending at the beginning of the quarter	0
Received during the quarter	3
Disposed of during the quarter	3
Remaining unresolved at the end of the quarter	0

NOTES:

1. The above results, reviewed by the Audit Committee, have been taken on record by the Board of Directors at their meeting held on 2nd August, 2013.

2. The Company is operating as a Single Segment Company, engaged in Pharmaceuticals Business.

3. Figures for the previous periods have been regrouped or rearranged wherever necessary.

FIXED ASSETS

Tangible Assets:

Leasehold Land

Building

Plant and Machinery

Office Equipments

Furniture

Vehicles

Intangible Assets:

• Tradename
• Technical Knowhow

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 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.61.69
UK Pound	1	Rs.99.20
Euro	1	Rs.83.69

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.