MIRA INFORM REPORT

Report Date :

22.04.2014

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) :	31.03.2013
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 :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is into business of manufacturing micronutrients and other nutritional products for plants and animals.
No. of Employees :	748 (Approximately)

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 5287000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There is slight dip in sales turnover and profit of the company during the year 2013. However, overall fundamentals of the company seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are regular and as per commitment. The company can be considered 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.

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	September 12, 2013

Rating Agency Name	CRISIL
Rating	Short Term Rating: A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	September 12, 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

(Tel. No.: 91-22-25564053)

LOCATIONS

Registered Office/ Head Office/ Corporate Office/ Factory 1 :	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 Queries: lab@ariesagro.com Accounts Related Queries: accounts@ariesagro.com Production Queries/Complaints and Feedback: customer@ariesagro.com Customer Loyalty Programme: khazaana@ariesagro.com Seed and Plant Protection Division: agrocare@ariesagro.com
Website :	http://www.ariesagro.com
Factory 2 :	Gopalpur, Chandigarh, District-North 24 Parganas. P. S. Barasat – 700 132, West Bengal, India
Factory 3 :	244-246, 250-252, IDA Phase-II, Pashamylaram, Patancheru Mandal, Medak District, Andhra Pradesh, India
Factory 4 :	8-B, Attibele Industrial Area, Hosur Main Road, Attibele, Bangalore – 562 107, Karnataka, India
Factory 5 :	1202/1 and 1202/2, Village: Rajpur, Taluka: Kadi, District: Mehsana – 382 740, Gujarat
Factory 6 :	Plot No.836, Banthara, Lucknow-Kanpur Highway, Sikandarpur, Tehsil and District Lucknow – 227 101, Uttar Pradesh, India
Factory 7 :	Golden Harvest Middle East FZC (a Subsidiary of Aries Agro Limited) Plot P3-04, Post Box No.9267, Sharjah Airport International Free Zone(SAIF), Sharjah, UAE
Factory 8 :	Amarak Chemicals FZC (a Subsidiary of Golden Harvest Middle East FZC thereby a Step Down Subsidiary of Aries Agro Limited), Al Hayl Industrial Area, P. O. Box 5283, Fujairah Free Zone(FFZ) Fujairah, UAE
Branch Network :	Located at: · Ahmedabad, Gujarat · Bangalore, Karnataka · Bellary, Karnataka · Bhubaneshwar, Orissa · Coimbatore, Tamil Nadu · Ghaziabad, Uttar Pradesh · Guwahati, Assam · Hissar, Haryana · Hyderabad, Andra Pradesh · Indore, Madhya Pradesh · Jaipur, Rajasthan · Jalandhar, Punjab · Kolkata, West Bengal · Lucknow, Uttar Pradesh · Nagpur, Maharashtra · Nashik, Maharashtra · Nipani, Karnataka · Panvel, Maharashtra · Patna, Bihar · Raipur, Chhatisgarh · Ranchi, Jharkhand, · Rudrapur, Uttaranchal · Siliguri, West Bengal · Solapur, Maharashtra · Sriganganagar, Rajasthan · Vijayawada, Andhra Pradesh

DIRECTORS

AS ON 31.03.2013

Name :	Dr. Jimmy Mirchandani
Designation :	Chairman and Managing Director
Date of Birth/ Age :	57 Years
Qualification :	B. Sc. (Vet); LLB
Date of Appointment	15.01.1976
Name :	Dr. Rahul Mirchandani
Designation :	Executive Director
Date of Birth/ Age :	12.08.1975
Qualification :	B.Com, CFA, MBA, Ph. D(Management Studies) from NMIMS.
Expertise in specific functional areas :	As Executive Director, he oversees various functions of the Company namely Marketing, Brand Promotion and New Product Development etc.
Date of Appointment	02.02.1994
Directorship in other Companies :	Sreeni Agro Chemicals Limited Aries East-West Nutrients Private Limited Blossoms International Limited Aries Marketing Limited Aries Agro Care Private Limited Aries Agro Equipments Private Limited Aries Agro Produce Private Limited Golden Harvest Middle East FZC
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., FCMA, CAIIB.
Date of Appointment	29.10.2009
Directorship in other Companies :	Credila Financial Services Private Limited Texmo Pipes and Products Limited Calyx Chemicals and Pharmaceuticals Limited Yalamanchili Software Exports Limited
Name :	Mr. B.V. Dholakia
Designation :	Director (w.e.f. 13.11.2012)
Audit Committee :	Prof. R. S. S. Mani, Chairman Dr. D. S. Jadhav (upto 12.11.2012) Dr. Rahul Mirchandani Mr. B. V. Dholakia (w.e.f. 13.11.2012)
Shareholders/ Investors Grievances Committee :	Prof. R. S. S. Mani, Chairman Dr. Jimmy Mirchandani Dr. Rahul Mirchandani
Remuneration Committee :	Dr. D. S. Jadhav (upto 12.11.2012) Prof. R. S. S. Mani, Chairman Mr. C. B. Chhaya Mr. B. V. Dholakia (w.e.f. 13.11.2012)
Treasury Committee :	Dr. Jimmy Mirchandani, Chairman Dr. Rahul Mirchandani Mr. C. B. Chhaya

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 31.03.2014

Category of Shareholders	No. of Shares	Percentage of holding
(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	1088944	8.37
Sub Total	1088944	8.37
(2) Non-Institutions
Bodies Corporate	1312523	10.09
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2490197	19.15
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1112570	8.56
Any Others (Specify)	142179	1.09
Non Resident Indians	75179	0.58
Clearing Members	67000	0.52
Sub Total	5057469	38.89
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

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

SI. No.	Name of the Shareholder	No. of Shares held	As a % of grand total	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Jimmy Mirchandani	3524830	27.11	27.11
2	Rahul Mirchandani	2623221	20.17	20.17
3	Akshay J Mirchandani	361875	2.78	2.78
4	Amol J Mirchandani	335000	2.58	2.58
5	Ashok Mirchandani	10000	0.08	0.08
6	Nitya Mirchandani	3000	0.02	0.02
	Total	6857926	52.74	52.74

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number 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	SBIMF-Magnum Comma Fund	1088944	8.37	8.37
2	Alacrity Securities Limited	316475	2.43	2.43
3	Disal Investments Private Limited	228858	1.76	1.76
	Total	1634277	12.57	12.57

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the companyBottom of Form

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	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	SBIMF-Magnum Comma Fund	1088944	8.37	8.37
	Total	1088944	8.37	8.37

BUSINESS DETAILS

Line of Business :

Subject is into business of manufacturing 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 :

748 (Approximately)

Bankers :

· Canara Bank, Chembur Main Branch, 70A, M.D.S. Marg, Chembur, Mumbai – 400 071, Maharashtra, India

• 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 Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from Banks	144.816	142.796
Term Loans from Companies	0.000	0.048
SHORT TERM BORROWINGS
Working Capital Facilities from Banks	983.515	895.289
Total	1128.331	1038.133

Notes:

LONG TERM BORROWINGS

Secured Term Loans from Banks referred above to the extent of:

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
(a) Secured by way of Charge on the Company's Motor Vehicles.	4.656	8.900
(b) Foreign Currency Term Loan which is secured by way of Equitable Mortgage of Land and Building and personal guarantee of Directors.	94.618	118.301
(c) Secured by way of Primary Charge on all Fixed Assets at Mouje Rajpur, Gujarat and personal guarantee of Directors.	45.542	15.594
	144.816	142.795

Maturity Profile of Secured Term Loans are as set out below:

(Rs. in millions)

Particulars	F Y 2013-14	F Y 2014-15	F Y 2015-16	F Y 2016-17 and Beyond
(a) Term Loans from Banks	55.806	90.211	49.063	5.542
(b) Term Loans from Companies	0.048	--	--	--

SHORT TERM BORROWINGS

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.

Working Capital Facilities from Banks includes:

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
a) Loans repayable on demand	85.000	397.500
b) Cash Credit Facilities	588.696	320.042
c) Buyers Credit	238.651	177.747
d) Short Term Loan	71.167	0.000
	983.514	895.289

Banking Relations :	--
Financial Institutions :	3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400 703, Maharashtra, India
Auditor :
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 Auditor :
Name :	Kirit Manek and Company Chartered Accountants
Address :	14B, Nootan Nagar, Turner Road, Bandra (West), Mumbai – 400 050, Maharashtra, India
Cost Auditor :	R. Nanabhoy and Company Chartered Accountants
Subsidiary :	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)
Step Down Subsidiary :	Amarak Chemicals FZC (Date of Incorporation 9th September, 2007)
Enterprises over which the Key Management Persons has significant Influence of Control	Aries Marketing Limited Blossoms International Limited Sreeni Agro Chemicals Limited Aries East West Nutrients Private Limited Mruga Corporate Services Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

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:

6600700 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.9.100 millions from Securities Premium Account and Rs.7.900 millions from the Statement of Profit and Loss.

1700700 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.

Reconciliation of Number of Shares Outstanding:

Particulars	As at 31.03.2013 No. of Shares
Equity Shares at the beginning of the year	13004339
Add : - Issued during the year	--
Less :- Shares cancelled during the year	--
Equity Shares at the end of the year	13004339

List of shareholder’s holding more than 5 percent of shares:

PARTICULAR	As at 31.03.2013
Name of the Shareholder	No. of Shares	% of Held
Dr. Jimmy Mirchandani	3410955	26.23%
Dr. T. B. Mirchandani	2623221	20.17%
SBI MF - Magnum Comma Fund	1100000	8.46%

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	130.043	130.043	130.043
(b) Reserves & Surplus	1191.778	1123.991	1045.081
(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)	1321.821	1254.034	1175.124
(3) Non-Current Liabilities
(a) Long-term borrowings	161.050	162.358	232.485
(b) Deferred tax liabilities (Net)	63.869	21.388	20.787
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	5.965	4.786	0.000
Total Non-current Liabilities (3)	230.884	188.532	253.272
(4) Current Liabilities
(a) Short term borrowings	1261.260	957.541	745.317
(b) Trade payables	320.333	329.954	415.880
(c) Other current liabilities	184.239	287.622	332.534
(d) Short-term provisions	52.200	75.485	76.564
Total Current Liabilities (4)	1818.032	1650.602	1570.295
TOTAL	3370.737	3093.168	2998.691
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	365.579	290.524	310.915
(ii) Intangible Assets	3.869	6.730	8.867
(iii) Capital work-in-progress	136.118	199.357	187.909
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	202.781	202.779	180.610
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	708.347	699.390	688.301
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1023.979	1028.239	841.926
(c) Trade receivables	824.432	685.604	488.707
(d) Cash and cash equivalents	202.957	180.903	402.368
(e) Short-term loans and advances	611.022	499.032	577.389
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2662.390	2393.778	2310.390
TOTAL	3370.737	3093.168	2998.691

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	1867.588	1916.238	1559.856
		Other Income	32.318	53.172	37.760
		TOTAL (A)	1899.906	1969.410	1597.616
Less	EXPENSES
		Consumption of Materials	813.770	983.272	725.247
		(Increase) / Decrease in Inventories of Finished Goods	(75.207)	(168.567)	(146.802)
		Employees Benefits Expenses	204.626	186.068	147.050
		Other Expenses	587.842	575.561	503.872
		TOTAL (B)	1531.031	1576.334	1229.367
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		368.875	393.076	368.249
Less	FINANCIAL EXPENSES (D)		210.054	209.188	126.611
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		158.821	183.888	241.638
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.477	18.864	18.055
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		140.344	165.024	223.583
Less	TAX (H)		43.265	55.201	76.403
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		97.079	109.823	147.180
Less	SHORT PROVISION FOR TAX IN EARLIER YEARS		3.666	5.362	3.362
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		489.477	422.763	329.273
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	15.000	20.000
		Proposed Dividend on Equity Shares	19.507	19.507	13.004
		Interim Dividend Paid on Equity Shares	0.000	0.000	13.004
		Dividend Distribution Tax	3.315	3.240	4.320
	BALANCE CARRIED TO THE B/S		550.068	489.477	422.763
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of export sales	26.528	47.178	77.280
		Interest	7.078	7.072	7.226
	TOTAL EARNINGS		33.606	54.250	84.506
	IMPORT VALUE		311.507	504.187	420.942
	Earnings / (Loss) Per Share (Rs.)		7.18	8.03	11.06

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Type	1^st Quarter
Net Sales	399.300
Total Expenditure	300.000
PBIDT (Excl OI)	99.300
Other Income	1.400
Operating Profit	100.600
Interest	56.900
Exceptional Items	0.000
PBDT	43.700
Depreciation	4.300
Profit Before Tax	39.500
Tax	14.800
Provisions and contingencies	0.000
Profit After Tax	24.700
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	24.700

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.11	5.58	9.21
Net Profit Margin (PBT/Sales)	(%)	7.51	8.61	14.33
Return on Total Assets (PBT/Total Assets}	(%)	4.63	6.13	8.50
Return on Investment (ROI) (PBT/Networth)		0.11	0.13	0.19
Debt Equity Ratio (Total Debt/Networth)		1.08	0.89	0.83
Current Ratio (Current Asset/Current Liability)		1.46	1.45	1.47

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	130.043	130.043	130.043
Reserves & Surplus	1045.081	1123.991	1191.778
Net worth	1175.124	1254.034	1321.821
Long-term borrowings	232.485	162.358	161.05
Short term borrowings	745.317	957.541	1261.26
Total borrowings	977.802	1,119.899	1,422.310
Debt/Equity ratio	0.832	0.893	1.076

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	1559.856	1916.238	1867.588
		22.847	(2.539)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	1559.856	1916.238	1867.588
Profit	147.180	109.823	97.079
	9.44%	5.73%	5.20%

LOCAL AGENCY FURTHER INFORMATION

Details of Current Maturities of Long Term Debt:

Particulars	31.03.2013 (Rs. in millions)	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Current Maturities of Long Term Debt	59.135	118.899	54.217

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	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 Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from Banks	16.234	19.514
SHORT TERM BORROWINGS
Working Capital Facilities from Banks	150.000	0.000
Security Deposits	127.745	62.252
Total	293.979	81.766

Notes:

LONG TERM BORROWINGS

Un-Secured Term Loans from Banks are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

Maturity Profile of Un-Secured Term Loans are as set out below:

(Rs. in millions)

Particulars	F Y 2013-14	F Y 2014-15	F Y 2015-16	F Y 2016-17 and Beyond
(a) Term Loans from Banks	3.280	3.696	4.165	8.373

SHORT TERM BORROWINGS

Working Capital Facilities from Banks shown under Un-Secured Borrowings includes Farmer Loan which is secured by way of Personal Guarantee of Directors.

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10336413	10/02/2012 *	80,000,000.00	AXIS BANK LIMITED	TRISHUL, 3RD FLOOR, OPPOSITE, SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B33161829
2	10232191	21/11/2012 *	752,500,000.00	AXIS BANK LIMITED	TRISHUL, 3RD FLOOR, OPPOSITE, SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B63164313
3	10185677	06/01/2014 *	375,500,000.00	CANARA BANK	CHEMBUR MAIN BRANCH, 70A, M. D. S. MARG, CHEMBUR, MUMBAI, MAHARASHTRA - 400071, INDIA	B94188349
4	10153773	17/10/2013 *	370,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B88852975
5	10146512	03/02/2009	260,104,000.00	ICICI BANK LIMITED	LANDMARK RACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A55804272
6	10135581	11/02/2013 *	370,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B77579787
7	10130358	18/10/2013 *	100,000,000.00	ICICI BANK LIMITED	LANDMARK RACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B88894829
8	10126307	06/12/2013 *	100,000,000.00	3I INFOTECH TRUSTEESHIP SERVICES LIMITED	3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK, TOWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA	B92194190

* Date of charge modification

CORPORATE INFORMATION

The Company was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals and birds and then diversified into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branch of agro protection, seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company’s Overseas Subsidiary viz Golden Harvest Middle East FZC acquired 75% Shares of Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which Amarak Chemicals FZC has become a Step Down Subsidiary of subject.

Subject is an Indian Multinational Company that offers the widest range of products in the primary, secondary and microfertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

OPERATIONS

During the year, the earnings before Interest, Depreciation and Tax was Rs.368.875 millions compared to Rs.393.075 millions in the previous year. The Total Revenue for the year net of excise duty was Rs.1867.587 millions as against Rs.1916.238 millions in the previous year reflecting in a decline of 2.54%. Profit after tax for the year was Rs.97.079 millions compared to Rs.109.823 millions in the previous year. Despite marginal reduction in turnover the profitability of the Company as a percentage has more or less remained flat.

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.

FUTURE PROSPECTS

The Company is phasing out its plant protection range of traded products and shall continue with only manufactured products of Plantomycin and Agronaa under this category.

The Company has also identified a unique product for biological control of pests using horticultural mineral oil procured from one of India’s largest Oil refining Company. This product will be launched in the name of Hortimin in two grades, one for apple crop and one for fruits and vegetables.

The Company understands that acute power shortages are causing extreme hardship to the farmers. Farm labour is required at odd hours to travel to the field to switch on/off and manage water pumps. To solve this problem, the Company is launching Aries Moto Control, which is a state of the art system to switch on/off and manage water flow in the fields using the farmer’s mobile phone. This will ensure that farmers can save on labour costs and remotely manage their water pumps even if they are not physically present at or near the field. The Company has also put in place a dedicated team to promote the product range in institutional, government and international markets. This focused activity may result in an increase of about Rs.100.000 millions to the Company’s revenue . This trend is expected to continue.

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 Private Limited commenced in the Financial Year 2008-09 but discontinued the activity in the financial year 2012-13. The Company, however, incurred losses to the tune of Rs.0.596 million amongst others on account of amortisation and legal and professional charges.

The business operations of Aries Agro Equipments Private Limited commenced in the year 2009-10 in agricultural sprayers. During the Financial Year 2012-13 the Company has a Turnover of Rs.11.309 millions with profit after tax of Rs.0.773 million.

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 2012-13 the Company has incurred a loss of Rs.0.023 million.

As regards the overseas subsidiary Golden Harvest Middle East FZC with an installed capacity of 10,800 MT p.a., in their fifth year of operation, has generated a total sale of AED 244.35 Lakhs (INR 349.877 millions) with a profit of AED 21.28 Lakhs (INR 30.473 millions) for the year 2012-13.

Amarak Chemicals FZC, which is a step down Subsidiary of subject with an installed capacity of 60,000 MT p.a., in their third year of operation, has generated a total sale of AED 310.27 Lakhs (INR 444.263 millions) with a profit of AED 18.15 Lakhs (INR 25.988 millions) for the year 2012-13.

MANAGEMENT DISCUSSION AND ANALYSIS

MANUFACTURING BASE

Aries has scaled up the utilization of its manufacturing facilities during the year 2012-13 and the total capacity utilization currently stands at 45 percent 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 38% of the total installed capacity overseas.

The Company’s new manufacturing facility at Chhatral, near Ahmedabad was inaugurated on 17th October, 2012 and has since been fully commissioned.

The factory currently produces multi micronutrient fertilisers including a new fast selling specialty nutrition product, Fertisol.

The Company has also improved the cost structure of products being manufactured at Chhatral by changing the fuel source from diesel to natural gas.

They have thereafter closed down the Sanand manufacturing facility as the same was on Leased Premises.

For the second consecutive year, 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 47% of its total raw materials from overseas suppliers located in China, Israel, Turkey, U.A.E., U.S.A, U.K., Belgium, Netherlands, Japan and South Africa. Imports constitute 58% 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 2012-13 have resulted in a foreign exchange loss of over Rs.26.000 millions in total during the year.

INDUSTRY TRENDS

2012-13 monsoons were highly erratic until August 2012. The shortfall in rain was as high as 20% below long period average and the monsoons were being discussed as the worst in 65 years. However, the drought affected areas received some respite towards the end of the season and the four month long rainfall season drew to a close with a rain deficit of 8% as per Indian Meteorological department. This unpredictable monsoon season across space and time led to a very haphazard progress of the Kharif season.

The second half of the year water woes were further amplified with labour and power shortages. Acute power unavailability in almost all southern states and in many other parts of the country led to a situation where despite reservoirs and water table being adequate, farmers were unable to draw water using electric pump sets due to shortage of electricity for several hours in a day. This emergence of a new variable of power as an uncertainty in the agricultural sector has led to further realignment of their marketing strategy to focus more on areas where not only water but also electricity are more predictably available.

Overall the sector is going through a major shift in trends and the Company is taking steps to re- assess and re-focus their products and marketing efforts.

The summary of the state-wise revenue growth is as under:

States with sales growth above 50%	States with sales growth between 30% - 50%	States with sales growth between 15% - 30%	States with less than 15% sales growth
Bihar	West Bengal	Punjab	Maharashtra, Jharkhand, Uttaranchal, Tamilnadu Gujarat, Assam Karnataka, Chattisgarh, Uttar Pradesh, Haryana, Orissa, Andhra Pradesh, Madhya Pradesh and Rajasthan

It is also noteworthy that international business increased by 17% and now constitutes 32% of the total revenue of the Aries Group.

OUTLOOK

The 2013 monsoons have commenced on schedule and all indications based on the Meteorological Dept. forecasts shows that the summer season will see the country receive 96 - 104% of its long period average rainfall. This ‘near normal’ forecast sounds positive and they hope the spread and timing of the rain is also appropriate.

The Company will be introducing additional 3 products during the year 2013-14 including Hortimin, Moto Control and Agri Plex.

However, they shall also be progressively phasing out 5 of the products which are very similar to existing products in the range to avoid some amount of duplication and to reduce the number of stock keeping units in their inventory.

FINANCIAL PERFORMANCE

The Company’s Sales Turnover for the financial year ended March 31, 2013 decreased marginally to Rs.1867.588 millions from Rs.1916.238 millions in the previous year, registering a decline of 2.54%.

Total expenses for the year were Rs.1759.561 millions as against Rs.1804.386 millions in the previous year.

Profit Before Tax decreased to Rs.140.344 millions during the year as against Rs.165.024 millions in the previous year. The decrease in Profit Before Tax translates to 15 % due to increase in the input costs and inability to pass on the entire burden of increase in the cost.

Tax provision for the year was Rs.43.266 millions as against Rs.55.201 millions in the previous year which translates to 2.32 % on FY 12-13 Sales.

Profit After Tax for the year was Rs.97.079 millions as against Rs.109.823 millions in the previous year which is 5.20 % of FY 12-13 Sales.

CONTINGENT LIABILITY NOT PROVIDED FOR IN THE ACCOUNTS (AS ON 31.03.2013):

a) Letters of credit / guarantees given to Banks Rs.585.625 millions

b) Bills discounting with Banks Rs.100.000 millions.

c) Claims against company not acknowledged as debts Rs.8.897 millions which includes tax dues disputed as Rs.0.268 million towards sales Tax, Rs.5.456 millions towards Income Tax and includes Rs.3.173 millions pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27^th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

STATEMENT OF UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2013 (STANDALONE)

(Rs. in millions)

Sr. No.	Particulars	Standalone Financial Results
		Three months ended	Preceding three months ended	Year to date figures for current period ended
		31.12.2013	30.09.2013	31.12.2013
		Unaudited	Unaudited	Unaudited
Part I
1.	Income from Operations
	a) Net Sales/Income from Operations	640.374	648.719	1688.349
	b) Other Operating Income	0.000	0.000	0.000
	Total Income From Operations (Net)	640.374	648.719	1688.349
2.	Expenditure
	a) Consumption of Materials / Rebranded Goods	276.766	263.138	668.396
	b) Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade	(18.492)	54.775	15.221
	c) Employee Benefits Expense	38.854	55.018	132.243
	d) Depreciation & Amortization Expense	2.793.	4.087	11.154
	e) Other Expenses	168.965	154.674	477.825
	f) Total Expenses	468.885	531.692	1304.839
3.	Profit/(Loss) from Operations before Other Income, Finance Costs and Exceptional Items (1 - 2)	171.490	117.027	383.510
4.	Other Income	4.362	0.918	6.629
5.	Profit/(Loss) from Ordinary Activities before Finance Costs and Exceptional Items (3+4)	175.852	117.945	390.139
6.	Finance Costs	76.274	55.905	189.066
7.	Profit/(Loss) from Ordinary Activities after Finance Costs but before Exceptional items (5 - 6)	99.578	62.040	201.073
8.	Exceptional Items	--	--	--
9.	Profit (+) / Loss (-) from Ordinary Activities Before Tax (7 - 8)	99.578	62.040	201.073
10.	Tax Expense
	a) Current tax	34.500	22.800	71.100
	Less MAT Credit Entitlement	--	--	--
	b) Deferred tax	(0.688)	1.973	2.185
	c) Wealth Tax	0.075	0.075	0.225
	Total Tax	33.887	24.848	73.510
11.	Net Profit (+) / Loss (-) from Ordinary Activities After Tax - PAT (9 - 10)	65.690	37.192	127.563
12.	Short Provision for Tax in Earlier Years	3.265	--	3.265
13.	Net Profit (+) / Loss (-) for the period - PAT (11 - 12)	62.425	37.192	124.298
14.	Minority Interest	--	--	--
15.	Net Profit (+) / Loss (-) after Taxes, Minority Interest (13 - 14)	62.425	37.192	124.298
16.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	130.043	130.043	130.043
17.	Free Reserves (excluding Revaluation Reserve)	1242.360	1179.935	1242.360
18.i	Earnings per Share (before extraordinary items) (of Rs.10/-each) (not annualised) :
	a) Basic and Diluted EPS before Extraordinary items for the period, for the year to date and for the previous year ( not to be annualized)
	a) Basic	5.05	2.86	9.81
	b) Diluted	--	--	--
18.ii	Earnings per Share (after extraordinary items) (of Rs.10/-each) (not annualized) :
	a) Basic	4.80	2.86	9.56
	b) Diluted	--	--	--
Part II
A.	PARTICULARS OF SHAREHOLDING
	Public Shareholding
	- Number of Shares	6146413	6146413	6146413
	- Percentage of Shareholding	47.26	47.26	47.26
	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	--	--	--
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of Shares	6857926	6857926	6857926
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	52.74	52.74	52.74

PARTICULARS	THREE MONTHS ENDED 31^ST DECEMBER, 2013
B INVESTORS COMPLAINTS
Pending at the beginning of the Quarter	NIL
Received During the Quarter	NIL
Disposed off During the Quarter	NIL
Remaining Unresolved at the end of the Quarter	NIL

UTILISATION OF FUNDS RAISED THROUGH INITIAL PUBLIC OFFER

(Rs. in millions)

Sr. No.	PARTICULARS	Financed through the issue proceeds	Implementation Schedule	Present Status	Utilization upto 30th June, 2013
1	Manufacturing Unit at Hyderabad	24.494	February '08	Commercial Production, March '08	28.200
2	Investment in Golden Harvest	73.680	March '08	Commenced Commercial Production, September '08	70.281
3	Manufacturing Unit at Ahmedabad	19.740	August '08	Commenced Commercial Production, August '08	19.527
4	Manufacturing Unit at Lucknow	20.892	September '08	Commenced Commercial Production, November '08	17.906
5	Advance for existing Office Building Renovation / Re-development	68.380	March '09	September '15	87.000
6	Purchase of Plant and Machinery at Mumbai Unit	16.967	June '08	Completed	17.002
7	Capital Expenditure for Mobile Marketing	57.932	June '08	Completed	57.797
8	Issue Related Expenses	54.880	-	Completed	50.065
9	General Corporate Expense	54.948	-	Completed	60.000
10	To meet the Working Capital requirements	193.372	-	Completed	177.507
	TOTAL	585.285			585.285

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 Audited 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 February 14, 2014.

3. The Statutory Auditors have carried out a Limited Review of the Results for the Quarter Ended December 31, 2013.

4. The Standalone Financial Results are for the Quarter and nine months ended December 31, 2013.

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

FIXED ASSETS:

Tangible Assets

· Land

· Factory Building

· Residential Flat

· Plant and Machinery

· Electrical Installations

· Laboratory Equipments

· Office Equipments

· Furniture and Fixtures

· Air Conditioners

· Computer

· Vehicles

· Commercial Vehicles

Intangible Assets

· Computer Software

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.60.34
UK Pound	1	Rs.101.41
Euro	1	Rs.83.38

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	SMN

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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
DEFAULTERS
--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.