MIRA INFORM REPORT

Report Date :

04.08.2014

IDENTIFICATION DETAILS

Name :	AARTI INDUSTRIES LIMITED (w.e.f. 24.02.1995)
Formerly Known As :	AARTI ORGANICS LIMITED
Registered Office :	Plot No.801/23, GIDC Estate, Phase III, Vapi - 396195, District Valsad, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.09.1984
Com. Reg. No.:	04-007301
Capital Investment / Paid-up Capital :	Rs.443.000 Millions
CIN No.: [Company Identification No.]	L24110GJ1984PLC007301
TAN No.: [Tax Deduction & Collection Account No.]	SRTA02524E
PAN No.: [Permanent Account No.]	AABCA2787L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Various Agrochemicals Intermediates.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects company’s healthy financial risk profile marked by adequate liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be reported to be regular and as per commitment. The company can be considered good for normal 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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “A+”
Rating Explanation	Adequate credit quality and average credit risk.
Date	17.07.2014

Rating Agency Name	CRISIL
Rating	Short term rating: “A1”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	17.07.2014

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON – COOPERATIVE (91-22-67976666)

LOCATIONS

Registered Office/ Factory 1 :	Plot No.801/23, GIDC Estate, Phase III, Vapi - 396195, District Valsad, Gujarat, India
Tel. No.:	91-2638-25690411/ 2/ 3/ 25918195/ 55976666
Fax No.:	91-2638-25904806/ 25653186-87/ 25653185
E-Mail :	ail@bom2.vsnl.net.in secretarial@aartigroup.com info@aartigroup.com investorrelations@aartigroup.com
Website :	www.aartigroup.com
Corporate Office :	Udyog Kshetra, II Floor, L.B.S. Marg, Mulund – Goregaon Link Road, Mulund (West), Mumbai – 400080, Maharashtra, India
Tel. No.:	91-22-67976666/ 67976697/ 25918195/ 55976666
Fax No.:	91-22-25653234/ 25653185
E-Mail :	info@aartigroup.com
Factory 2:	Plot No. 902, GIDC Estate, Phase II, District Valsad, Vapi – 396195, Gujarat, India
Factory 3:	Plot No. 286/1, 285, GIDC Estate, Phase II, District Valsad, Vapi – 396195, Gujarat, India
Factory 4:	Plot No. 22 / C / 1 & 2, GIDC Estate, Phase I, District Valsad, Vapi – 396195, Gujarat, India
Factory 5:	Shed No. A1-6&9, GIDC Estate, Phase I, District Valssad, Vapi – 396195, Gujarat, India
Factory 6 :	Plot No. 609 & 610, GIDC Estate, 100 Shed, District Valsad, Vapi – 396195, Gujarat, India
Factory 7:	Plot Nos. 750-754, Sarigam Industrial Area, Sarigam, Taluka Umargaon, District Valsad, Gujarat, India
Factory 8:	Plot Nos. 2701, 2703 Sarigam Industrial Area, Sarigam, Taluka Umargaon, District Valsad, Gujarat, India
Factory 9:	Plot Nos. 2604, 2605 Sarigam Industrial Area, Sarigam, Taluka Umargaon, District Valsad, Gujarat, India
Factory 10:	Plot Nos. 758/1, 2 & 3, Jhagadia Mega Estate, Village Kapalsadi, Taluka Jhagadia, District Bharuch, Gujarat, India
Factory 11:	Plot Nos. 756/2 A&B, 756/3 A&B, 756/4 A&B, 756/5 A&B, 756/6 A&B, 756/7, 779, Jhagadia Mega Estate, Village Kapalsadi, Taluka Jhagadia, District Bharuch, Gujarat, India
Factory 12:	Survey No. 1430/1, NH-8, Bhachau, Kutch, Gujarat, India
Factory 13:	Plot No. D-18, MIDC, Tarapur, District Thane, Maharashtra, India
Factory 14:	Plot No. E-50, MIDC, Tarapur, District Thane, Maharashtra, India
Factory 15:	Plot No. K - 17/18/19, MIDC, Tarapur, District Thane, Maharashtra, India
Factory 16:	Plot No. L – 5, MIDC, Tarapur, District Thane, Maharashtra, India
Factory 17:	Plot No. L – 8, MIDC, Tarapur, District Thane, Maharashtra, India
Factory 18:	Survey No. 193/1/4, 193/1/5, 193/1/6, Silvassa, Union Territory of Silvassa, India
Factory 19:	Plot No. D – 53/54/60, MIDC, Phase II, Dombivali (East), District Thane, Maharashtra, India
Factory 20:	Plot Nos. 62, 63 & 64, Sagore, Pithampur Industrial Area, Sector-3, Pithampur, DistrictDhar, Madhya Pradesh, India

DIRECTORS

As on 31.03.2013

Name :	Mr. Chandrakant V. Gogri
Designation :	Chairman
Name :	Mr. Rajendra V. Gogri
Designation :	Chairman and Managing Director
Date of Appointment :	16.08.2012
Name :	Mr. Shantilal T. Shah
Designation :	Vice Chairman
Date of Birth/Age :	28.12.1938
Qualification :	B.Com.
Date of Appointment :	25.04.1990
Name :	Mr. Rashesh C. Gogri
Designation :	Vice Chairman and Managing Director
Date of Birth/Age :	03.06.1974
Qualification :	Industrial Engineer and holds Diploma in Business Management
Date of Appointment :	16.08.2012
Name :	Mr. Ramdas M. Gandhi
Designation :	Independent Director
Date of Birth/Age :	14.03.1933
Qualification :	L.L.M, Solicitor.
Date of Appointment :	29.01.1990
Name :	Mr. Laxmichand K. Jain
Designation :	Independent Director
Date of Birth/Age :	02.03.1941
Qualification :	MS (Chem.) US
Date of Appointment :	29.01.1990
Name :	Mr. Vijay H. Patil
Designation :	Independent Director
Date of Birth/Age :	15.07.1937
Qualification :	L.L.M.
Date of Appointment :	29.01.1990
Name :	Mr. Haresh K. Chheda
Designation :	Independent Director
Name :	Mr. K. V. S. Shyam Sunder
Designation :	Independent Director
Date of Birth/Age :	29.07.1942
Name :	Mr. P A Sethi
Designation :	Independent Director
Name :	Mr. Bhavesh R Vora
Designation :	Independent Director
Date of Birth/Age :	13.09.1967
Name :	Mr. Sunil M Dedhia
Designation :	Independent Director
Date of Birth/Age :	20.06.1965
Qualification :	B. Com., A.C.A., F.C.S.
Date of Appointment :	30.07.2009
Name :	Mr. Parimal H. Desai
Designation :	Whole time Director
Date of Birth/Age :	29.05.1949
Name :	Mr. Manoj M. Chheda
Designation :	Whole Time Director
Date of Birth/Age :	23.10.1962
Qualification :	B. Com
Date of Appointment :	25.11.1993
Name :	Ms. Hetal Gogri Gala
Designation :	Whole Time Director
Date of Birth/Age :	10.07.1975
Qualification :	B. E (Electronics) and MEP degree from IIM Ahmedabad.
Date of Appointment :	01.11.2001
Name :	Mr. Kirit R. Mehta
Designation :	Whole Time Director
Date of Birth/Age :	02.08.1948
Qualification :	B. Com.
Date of Appointment :	18.09.2000
Name :	Renil R. Gogri
Designation :	Whole Time Director
Date of Birth/Age :	14.04.1987
Qualification :	B.E. (IIT MUMBAI), 2008
Date of Appointment :	16.08.2012

KEY EXECUTIVES

Name :	Ms. Mona Patel
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	31606226	35.68
Bodies Corporate	22230576	25.09
Sub Total	53836802	60.77
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	86148	0.10
Sub Total	86148	0.10
Total shareholding of Promoter and Promoter Group (A)	53922950	60.87
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7769284	8.77
Financial Institutions / Banks	8927	0.01
Foreign Institutional Investors	155344	0.18
Sub Total	7933555	8.96
(2) Non-Institutions
Bodies Corporate	1105792	1.25
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	10276420	11.60
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	14457442	16.32
Any Others (Specify)	895528	1.01
Non Resident Indians	493910	0.56
Trusts	230	0.00
Unclaimed Suspense A/c	401388	0.45
Sub Total	26735182	30.18
Total Public shareholding (B)	34668737	39.13
Total (A)+(B)	88591687	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)	88591687	0.00

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY PROMOTER AND PROMOTER GROUP

Sl.No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		65,280	0.07	0.07
2	Aarti Rajendra Gogri	7,29,456	0.82	0.82
3	Aarti Rajendra Gogri	1,59,996	0.18	0.18
4	Aashay Rashesh Gogri	5,39,340	0.61	0.61
5	Arti Rajendra Gogri	11,49,710	1.30	1.30
6	Bhavna Shah Lalka	8,80,098	0.99	0.99
7	Bhavna Shah Lalka	32,640	0.04	0.04
8	Chandrakant Vallabhaji Gogri	14,34,716	1.62	1.62
9	Chandrakant Vallabhaji Gogri	1,41,996	0.16	0.16
10	Chandrakant Vallabhji Gogri	2,75,015	0.31	0.31
11	Desai Tarla Parimal	80,540	0.09	0.09
12	Gunavanti Navin Shah	72,587	0.08	0.08
13	Gunavanti Navin Shah	13,298	0.02	0.02
14	Heena Bhatia	8,34,798	0.94	0.94
15	Heena Bhatia	32,640	0.04	0.04
16	Hetal Gogri Gala	19,21,251	2.17	2.17
17	Hetal Gogri Gala	14,51,578	1.64	1.64
18	Hetal Gogri Gala	1,84,368	0.21	0.21
19	Hetal Gogri Gala	1,39,964	0.16	0.16
20	Hetal Gogri Gala	6,528	0.01	0.01
21	Indira Madan Dedhia	2,01,142	0.23	0.23
22	Jaya Chandrakant Gogri	23,28,605	2.63	2.63
23	Jaya Chandrakant Gogri	1,29,000	0.15	0.15
24	Jaya Chandrakant Gogri	38,538	0.04	0.04
25	Manisha Rashesh Gogri	5,26,304	0.59	0.59
26	Manisha Rashesh Gogri	2,800	0.00	0.00
27	Mirik Rajendra Gogri	15,81,420	1.79	1.79
28	Mirik Rajendra Gogri	4,67,937	0.53	0.53
29	Mirik Rajendra Gogri	2,76,546	0.31	0.31
30	Nehal Garewal	10,26,150	1.16	1.16
31	Nehal Garewal	32,640	0.04	0.04
32	Nikhil Parimal Desai	4,53,230	0.51	0.51
33	Parimal Hasmukhlal Desai	3,06,271	0.35	0.35
34	Parimal Hasmukhlal Desai	1,25,000	0.14	0.14
35	Parimal Hasmukhlal Desai (Huf)	60,956	0.07	0.07
36	Prasadi Hasmukhlal Desai	13,200	0.01	0.01
37	Rajendra Vallabhaji Gogri	18,77,939	2.12	2.12
38	Rajendra Vallabhaji Gogri (Huf)	3,22,800	0.36	0.36
39	Rajendra Vallabhaji Gogri	1,59,996	0.18	0.18
40	Rajendra Vallabhaji Gogri	1,12,400	0.13	0.13
41	Rajendra Vallabhji Gogri	2,75,030	0.31	0.31
42	Rashesh Chandrakant Gogri	12,56,796	1.42	1.42
43	Rashesh Chandrakant Gogri	10,84,281	1.22	1.22
44	Rashesh Chandrakant Gogri	8,52,864	0.96	0.96
45	Rashesh Chandrakant Gogri	4,87,200	0.55	0.55
46	Rashesh Chandrakant Gogri	2,76,552	0.31	0.31
47	Rashesh Chandrakant Gogri	6,528	0.01	0.01
48	Ratanben Premji Gogri	4,65,931	0.53	0.53
49	Renil Rajendra Gogri	13,78,580	1.56	1.56
50	Renil Rajendra Gogri	4,63,849	0.52	0.52
51	Renil Rajendra Gogri	2,76,546	0.31	0.31
52	Rinku Parimal Desai	2,33,250	0.26	0.26
53	Rinku Parimal Desai	1,800	0.00	0.00
54	Sarla Shantilal Shah	17,56,134	1.98	1.98
55	Sarla Shantilal Shah	95,361	0.11	0.11
56	Shantilal Tejshi Shah	16,93,728	1.91	1.91
57	Shantilal Tejshi Shah	3,26,531	0.37	0.37
58	Shantilal Tejshi Shah	3,20,392	0.36	0.36
59	Shantilal Tejshi Shah (Huf)	1,66,200	0.19	0.19
60	Aarti Drugs Limited	750	0.00	0.00
61	Alchemie Financial Services Limited	270	0.00	0.00
62	Alchemie Leasing and Financing Private Ltd	16,71,512	1.89	1.89
63	Alchemie Leasing And Financing Private Limited	35,12,586	3.96	3.96
64	Anushakti Chemicals and Drugs Limited	35,94,530	4.06	4.06
65	Anushakti Holdings Limited	70,22,301	7.93	7.93
66	Gogri And Sons Investments Private Limited	34,72,111	3.92	3.92
67	Gogri And Sons Investments Private Limited	23,61,662	2.67	2.67
68	Nikhil Holdings Private Limited	3,59,854	0.41	0.41
69	Valiant Organics Private Limited	2,35,000	0.27	0.27
70	Bhanu Pradip Savla	66,150	0.07	0.07
71	Bhanu Pradip Savla	19,998	0.02	0.02
	Total	5,39,22,950	60.87	60.87

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

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	HDFC Trustee Company Limited - HDFC Prudence Fund	6480510	7.32	7.32
2	Manoj Murjibhai Chheda	1000001	1.13	1.13
	Total	7480511	8.44	8.44

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 COMPANY

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	HDFC Trustee Company Limited - HDFC Prudence Fund	6480510	7.32	7.32
	Total	6480510	7.32	7.32

DETAILS OF LOCKED-IN SHARES

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Anushakti Holdings Limited	24,00,000	2.71
	Total	24,00,000	2.71

BUSINESS DETAILS

Line of Business :

Manufacturer of Various Agrochemicals Intermediates.

Products :

Item Code No. (ITC Code)	Product Description
29049005	Para Nitro Chloro Benzene
29049004	Ortho Nitro Chloro Benzene
28070001	Sulphuric Acid
38081021	Quinalphos

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Bank of Baroda

Union Bank of India

State Bank of India

DBS Bank Limited

Standard Chartered Bank

HDFC Bank Limited

Export-Import Bank of India

IDBI Bank Limited

Citi Bank N.A.

Axis Bank Limited

Vysya Bank Limited

ING Vysya Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWING
ECB/Term Loans from Banks/Financial Institutions		1157.993
Vehicle Loans from Banks/Financial Institution		5.124
SHORT TERM BORROWING
Working Capital Loan From Bank		5872.914
Total	NA	7036.031
NOTE (As on 31.03.2013) LONG TERM BORROWING Out of the total ECB/Term Loans from Banks/Financial Institutions to Rs. 1588.777 Millions, outstanding Term Loan/ECB to the extent of Rs. 1040.916 Millions, are secured/to be secured by way of Pari Passu Joint Equitable Mortgage of the Company's immovable properties situated at Sarigam, Vapi and Jhagadia in the State of Gujarat and further by way of Pari Passu hypothecation of the moveable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts, inventories and other current assets) wherever situated. Term Loan from Citibank to the extent of Rs. 271.500 Millions is secured by way of exclusive charge on the moveable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts, inventories and other current assets) situated at the new hydrogenation unit at Jhagadia. ECB from DBS Bank to the extent of Rs. 203.625 Millions is secured by way of Joint Equitable Mortgage of the Company's immovable properties situated at Bhachau, in the State of Gujarat and further by way of Pari Passu hypothecation of the moveable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts, inventories and other current assets) situated at the same unit. Term Loan from IndusInd Bank to the extent of Rs. 25.000 Millions is secured by way of Joint Equitable Mortgage of the one of Company's immovable properties situated at Tarapur, in the State of Maharashtra and further by way of Pari Passu hypothecation of the moveable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts, inventories and other current assets) situated at the same unit. Term Loan of Rs. 47.736 Millions from Financial Institution is secured by way of exclusive charge on specific ISO-Tanks used for company's operations. Vehicle loans from banks/Financial Institutions are secured by way of hypothecation of respective vehicles. SHORT TERM BORROWING Working Capital Loans availed from Scheduled Banks, are secured/to be secured by way of Pari Passu first charge by hypothecation of Raw Materials, Stock-In-Process, Semi-Finished Goods, Finished Goods, Packing Materials and Stores and Spares, Bills Receivables and Book Debts and all other moveable, both present and future. Also by way of Joint Equitable Mortgage of the Company's immovable properties situated at Sarigam, Vapi, Jhagadia and Bhachau in the State of Gujarat and at Tarapur in the State of Maharashtra and further by way of hypothecation of all moveable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts and inventories) wherever situated, ranking second to the charge held by ECB/Term Lenders.

Banking Relations :	--
Financial Institution :	· IDBI Trusteeship Services Limited Siemens Financial Services Private Limited
Auditors :
Name :	Parikh Joshi and Kothare Chartered Accountants
Address :	49/2341, M. H. B. Colony, Gandhi Nagar, Bandra (East), Mumbai – 400 051, Maharashtra, India
Subsidiaries :	· Aarti Corporate Services Limited Nascent Chemical Industries Limited(Through its holding Company: Aarti Corporate Services Limited) Shanti Intermediates Private Limited(Through its holding Company: Aarti Corporate Services Limited) Anushakti Specialties Limited Liability Partnership
Associates :	· Ganesh Polychem Limited Anushakti Chemicals and Drugs Limited Anushakti Holdings Limited Alchemie (Europe) Limited
Enterprises/Firms over which controlling individuals/Key Management Personnel, of the Company along with their relatives, have significant influence :	· Alchemie Pharma Chem Limited Alchemie Industries Gogri and Sons Investments Private Limited Alchemie Leasing and Financing Private Limited Alchemie Laboratories Aarti Drugs Limited Alchemie Dye Chem Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital : NOT AVAILABLE

Issued, Subscribed & Paid-up Capital : Rs. 443.000 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.5/- each	Rs.625.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
79120073	Equity Shares	Rs.5/- each	Rs.395.600 Millions

Reconciliation of the number of shares outstanding as on 31st March, 2013:

Particulars	No. of Shares outstanding
	As at 31st March, 2013
Equity shares at the beginning of the year	79,120,073
Add: Shares Issued during the year	NIL
Less: Shares buy back during the year	NIL
Equity shares at the end of the year	79,120,073

Details of Shareholders holding more than 5% shares:

Name of Shareholder	As at 31st March, 2013
	No. of Shares held	% held
Anushakti Holdings Limited	6,198,600	7.83
HDFC Trustee Company Limited – HDFC Prudence Fund	6,132,810	7.75
Gogri and Sons Investments Private Limited	4,844,613	6.12
Alchemie Leasing and Financing Private Limited	4,341,655	5.49

The details of Equity shares outstanding during last 5 Years:

Particulars	Financial Year
	2012-13	2011-12	2010-11	2009-10	2008-09
No. of Equity Shares outstanding:	79,120,073	79,120,073	76,720,073	76,720,073	72,809,424

Note on issued, Subscribed and Paid up Equity Share Capital:

[a] 8,43,649 (previous year – 8,43,649) were issued to Shareholders of Surfactant Specialities Limited pursuant to its Merger with the Company.

[b] 42,000 (previous year – 42,000) were issued to Shareholders of Avinash Drugs Limited pursuant to its Merger with the Company.

[c] 30,25,000 (previous year – 30,25,000) were issued towards Preferential allotment at a premium of Rs. 30.65 paise to Warrantholders.

[d] 24,00,000 (previous year – 24,00,000) have been issued towards Preferential allotment at a premium of Rs. 53/- to Warrantholders.

SHARE CAPITAL PENDING ALLOTMENT UPON SCHEME OF ARRANGEMENT

(Rs. In Millions)

Particulars	As at 31st March, 2013
94,71,614 Shares are to be issued and allotted to shareholders of Anushakti Chemicals and Drugs Limited Pursuant to the terms of the Scheme of Arrangement approved by the Honorable High Courts at Ahmedabad and Bombay vide their order dated 8th March, 2013 and 8th February, 2013 respectively.	47.358
Total	47.358

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	443.000	395.600	395.600
(b) Reserves & Surplus	7344.000	6323.452	4730.967
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	47.358	0.000
Total Shareholders’ Funds (1) + (2)	7787.000	6766.410	5126.567
(3) Non-Current Liabilities
(a) long-term borrowings	2550.300	1167.407	1028.714
(b) Deferred tax liabilities (Net)	844.600	707.092	554.550
(c) Other long term liabilities	73.200	2.037	1.852
(d) long-term provisions	2556.700	2171.661	1721.661
Total Non-current Liabilities (3)	6024.800	4048.197	3306.777
(4) Current Liabilities
(a) Short term borrowings	6858.400	6850.084	4823.304
(b) Trade payables	3678.300	2158.461	1746.102
(c) Other current liabilities	1010.300	637.629	475.052
(d) Short-term provisions	289.800	268.034	205.631
Total Current Liabilities (4)	11836.800	9914.208	7250.089
TOTAL	25648.600	20728.815	15683.433
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9059.000	6640.988	4300.761
(ii) Intangible Assets	0.000	1.273	31.600
(iii) Capital work-in-progress	0.000	620.083	544.223
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	322.500	185.952	210.711
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3861.600	3126.240	2402.587
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	13243.100	10574.536	7489.882
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	6033.300	4621.230	3258.477
(c) Trade receivables	4657.800	4286.528	4069.481
(d) Cash and cash equivalents	123.500	97.106	88.056
(e) Short-term loans and advances	1295.900	896.438	595.128
(f) Other current assets	295.000	252.977	182.409
Total Current Assets	12405.500	10154.279	8193.551
TOTAL	25648.600	20728.815	15683.433

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	26327.700	20961.176	16733.107
	Other Income	104.200	43.961	28.362
	TOTAL (A)	26431.900	21005.137	16761.469
Less	EXPENSES
	Cost of Materials Consumed (Incl. Packing, Fuel, Stores & Spares)	16307.900	12622.725	9787.576
	Purchases of Stock-in-Trade	1168.600	931.178	1404.861
	Employee Benefits Expenses	757.300	636.137	455.227
	Other Expenses	4759.600	3919.368	2874.431
	Changes in inventories of Finished Goods Work-in-Progress and Stock-in-Trade	(620.500)	(710.689)	(235.417)
	TOTAL (B)	22372.900	17398.719	14286.678
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	4059.000	3606.418	2474.791
Less	FINANCIAL EXPENSES (D)	1175.300	949.980	715.084
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	2883.700	2656.438	1759.707
Less/ Add	DEPRECIATION/ AMORTISATION (F)	874.300	818.004	539.689
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	2009.400	1838.434	1220.018
Less	TAX (I)	522.500	525.000	348.157
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	1486.900	1313.434	871.861
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	NA	3433.084	2964.013
Less	APPROPRIATIONS
	Proposed Dividend	NA	110.74	118.68
	Interim Dividend	NA	243.628	153.44
	Tax on Dividend	NA	58.544	42.67
	Transfer to General Reserve	NA	131.5	88
	Balance Carried to the B/S	NA	4202.106	3433.084
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	NA	9923.781	6839.823
	TOTAL EARNINGS	NA	9923.781	6839.823
	IMPORTS
	Raw Materials	NA	129.759	1263.094
	Stores & Spares	NA	2.085	7.048
	Capital Goods	NA	129.759	64.191
	Fuel	NA	155.232	22.615
	TOTAL IMPORTS	NA	416.835	1356.948
	Earnings / (Loss) Per Share (Rs.)	16.78	14.83	11.36

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.63	6.25	5.20
Net Profit Margin (PBT/Sales)	(%)	7.63	8.77	7.29
Return on Total Assets (PBT/Total Assets}	(%)	7.93	9.23	8.17
Return on Investment (ROI) (PBT/Networth)		0.26	0.27	0.24
Debt Equity Ratio (Total Debt /Networth)		1.21	1.18	1.14
Current Ratio (Current Asset/Current Liability)		1.05	1.02	1.13

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	395.600	395.600	443.000
Reserves & Surplus	4730.967	6323.452	7344.000
Share Application money pending allotment	0.000	47.358	0.000
Net worth	5126.567	6766.410	7787.000
long-term borrowings	1028.714	1167.407	2550.300
Short term borrowings	4823.304	6850.084	6858.400
Total borrowings	5852.018	8017.491	9408.700
Debt/Equity ratio	1.142	1.185	1.208

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	16733.107	20961.176	26327.700
		25.268	25.602

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	16733.107	20961.176	26327.700
Profit	871.861	1313.434	1486.900
	5.21%	6.27%	5.65%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

Particulars	31.03.2014	31.03.2013	31.03.2012
	(Rs. In Millions)
Current maturities of long-term debt	NA	403.784	385.748
Total	NA	403.784	385.748

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	Yes
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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 296 of 2013 To TAX APPEAL No. 299 of 2013
Status : PENDING	CCIN No : 001092201300296

Last Listing Date:

08/04/2013

Coram

· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI

·

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX (TDS)

MRS MAUNA M BHATT for: Appellant(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

AARTI INDUSTRIES LIMITED

MR B S SOPARKAR for :Opponent(s) 1

Presented On

: 02/04/2013

Registered On

: 04/04/2013

Bench Category

: DIVISION BENCH

District

: AHMEDABAD

Case Originated From

: THROUGH ADVOCATE

Listed

: 1 times

StageName

: FOR FINAL HEARING

Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	INCOME-TAX ACT, 1961

Other Forums

S.No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	ITA/3020/AHD/2010	INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH	JUDICIAL MEMBER AND ACCOUNTANT MEMBER	25/10/2012	AHMEDABAD

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	02/04/2013	CERTIFIED COPY	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s) 1	6	MRS MAUNA M BHATT:1
2	02/04/2013	MEMO OF APPEAL/PETITION/SUIT	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s) 1	20	MRS MAUNA M BHATT:1
3	04/04/2013	DOCUMENT	RULE NOT RECD BACK for RESPONDENT(s) 1	-	RULE NOT RECD BACK:1
4	02/07/2013	VAKALATNAMA	MR B S SOPARKAR ADVOCATE for RESPONDENT(s) 1	5	MR B S SOPARKAR(6851), for R:1

Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	08/04/2013	7	43	FOR FINAL HEARING	RULE/ADMIT	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Questions	Transferred
1	TAX APPEAL/296/2013	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI	08/04/2013	N	ORDER	-	Y

Certified Copy

S. No.	ApplicantName	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	09/04/2013	O/11987/2013	08/04/2013	10/04/2013	12/04/2013	Delivered	ORDER

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10452990	18/09/2013	631,400,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	B86628591
2	10424578	26/04/2013	541,200,000.00	STANDARD CHARTERED BANK	ABHIJEET II, GROUND FLOOR, NEAR MITHAKALI SIX ROAD, AHMEDABAD - 380006, GUJARAT, INDIA	B74713702
3	10406918	23/01/2013	275,000,000.00	CITIBANK N. A.	KALAPURNAM, 1ST FLOOR, NEAR MUNICIPAL MARKET, C. G. ROAD, NAVRANGPURA, AHMEDABAD - 380009, GUJARAT, INDIA	B69134021
4	10356963	31/03/2012	75,000,000.00	SIEMENS FINANCIAL SERVICES PRIVATE LIMITED	130, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA	B40081291
5	10334511	12/12/2012 *	400,000,000.00	DBS BANK LIMITED	1ST FLOOR, FORT HOUSE, DR. DN ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B67020537
6	10330603	23/11/2011	280,800,000.00	ING VYSYA BANK LIMITED	MITTAL TOWERS,A-WING,GROUND FLOOR, 210 NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B30163976
7	10254542	30/11/2010	1,000,000,000.00	EXPORT IMPORT BANK OF INDIA	FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B00914739
8	10242774	03/08/2010	509,300,000.00	STANDARD CHARTERED BANK	ABHIJEET II, GROUND FLOOR, NEAR MITHAKALI SIX ROAD, AHMEDABAD - 380006, GUJARAT, INDIA	A95199576
9	10156237	21/04/2009	6,450,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI TED	PLOT NO. 139-140, WESTERN EXPRESS HIGHWAY,, SAHAR ROAD JUNCTION, VILLE PARLE (EAST), MUMBAI - 400057, MAHARASHTRA, INDIA	A61626685
10	10119867	12/12/2012 *	600,000,000.00	UNION BANK OF INDIA	IND. FIN. BRANCH, 1ST FLOOR, UNION BANK BHAVAN, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B66660002
11	10120202	12/12/2012 *	550,000,000.00	IDBI BANK LIMITED	47 OPUS CENTER, MIDC ANDHERI EAST, MUMBAI - 400093, MAHARASHTRA, INDIA	B66957358
12	10121960	12/12/2012 *	900,000,000.00	STATE BANK OF INDIA	CORPORATE CENTRE AT STATE BANK BHAVAN, MADAM CAMA ROAD, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B67300970
13	10121961	12/12/2012 *	450,000,000.00	AXIS BANK LIMITED	KONARK DARSHAN, NEXT TO JAIN MANDIR, ZAVER ROAD, MULUND (WEST), MUMBAI - 400080, MAHARASHTRA, INDIA	B66474404
14	10121962	12/12/2012 *	250,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B67424267
15	10122049	12/12/2012 *	700,000,000.00	CITI BANK N.A.	CITIBANK CENTRE, 2ND FLOOR, BANDRA KURLA COMPLEX, MUMBAI - 400051, MAHARASHTRA, INDIA	B66681263
16	10122387	12/12/2012 *	750,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B67412304
17	10108577	12/12/2012 *	700,000,000.00	STANDARD CHARTERED BANK	ABHIJEET II, GROUND FLOOR, NEAR MITHAKALI SIX ROAD, AHMEDABAD - 380006, GUJARAT, INDIA	B66915125
18	10029996	29/03/2007 *	400,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, NGN VIDYA MARG, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA	A05217856
19	90102464	29/03/2007 *	300,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, NGN VIDYA MARG, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA	A13630215
20	90236400	28/02/2005 *	220,000,000.00	UTI BANK LIMITED	UNIVERSAL INSURANCE BUILDING, MP ROAD, MUMBAI - 400001, MAHARASHTRA, INDIA	-
21	80001690	28/09/2006 *	420,000,000.00	UTI BANK LIMITED	UNIVERSAL INSURANCE BUILDING, SIR P M ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	-
22	90102384	29/07/2004	1,374,680.00	ICICI BANK LIMITED	ZENITH HOUSE; KESHAVRAO KHYADE MARG, MAHALAXMI, MUMBAI, MAHARASHTRA - 400034, INDIA	-
23	90102284	29/03/2007 *	700,000,000.00	EXPORT IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLR 21, WORLD TRADE CENTRE, COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A15489933
24	80033012	12/12/2012 *	700,000,000.00	THE BANK OF BARODA LIMITED	FORESHORE BUILDING, GENERAL BHOSALE MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B67297523
25	80033010	28/12/2001 *	200,000,000.00	UTI BANK LIMITED	MAKER TOWER, "F" 11TH FLOOR, CUFF PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Deposits		4.290
SHORT TERM BORROWING
From Banks		947.345
From Others		29.825
Total	NA	981.460

RESTRUCTURING UPDATE

During the year, the Company has merged the manufacturing operations of its Associate Company, Anushakti Chemicals and Drugs Limited (ACDL) into Subject with effect from 1st April, 2012 in terms of Scheme of Arrangement duly approved by the High Courts of Bombay and Gujarat at Ahmedabad. The Company has allotted 94,71,614 equity shares of Rs. 5/- each to the shareholders of ACDL in terms of the said Scheme of Arrangement, whereby the Paid up Share Capital of the Company has increased by about 12% to Rs. 44,29,58,435 divided into 8,85,91,687 equity shares of Rs. 5/- each fully paid up.

Upon the Scheme of Arrangement having become effective, the merged accounts have been drawn up for FY 2012-13 w.e.f. 1st April, 2012. Hence to this extent, the financials for FY 12-13 may not be comparable with previous year. ACDL had manufacturing units at Bhachau in the State of Gujarat, Tarapur and Dombivali in the State of Maharashtra which are now merged into the Company. Apart from synergies derived in respect of common products, the said restructuring has increased the volumes of existing range of products and would also facilitate addition of newer products with diverse end usages into Fuel Additives, etc. having high growth possibilities. Restructuring has also helped spread of overall products and markets specific risks and improve operating margin as well.

FINANCIALS

During the year, the Company has achieved multiple milestones. Standalone Net revenues of the Company crossed Rs. 20000.000 Millions mark and ended at Rs. 20960.000 Millions (previous year Rs. 16730.000 Millions). Similarly Exports had also crossed Rs. 10000.000 Millions and closed at Rs. 10600.000 Millions. Hence with these record breaking performance, their exports now constitute over 50% of the total revenues of the Company. The EBIDTA margins for the Company also improved from 14.6% for FY 11-12 to 17% in FY 12-13.

Operating profit before Interest, Depreciation and Tax for FY 12-13 was at Rs. 3560.000 Millions (Previous Year Rs. 2450.000 Millions) Profit before tax for FY12-13 was at Rs. 1840.000 Millions (Previous Year Rs. 1220.000 Millions) Profit after Tax and Deferred Tax grew to Rs. 1310.000 Millions for FY 12-13 from Rs. 870.000 Millions for FY 11-12.

Consolidated Income increased by 25% to Rs. 20960.000 Millions as compared to Rs. 16730.000 Millions for last year. Consolidated EBIDTA also grew by about 45% to Rs. 3650.000 Millions as against Rs. 2530.000 Millions last year. Net Profit after Consolidation also recorded a growth of 30% at Rs. 1340.000 Millions as against Rs. 1030.000 Millions for last year. Consolidated EPS for FY 2012-13 was at Rs. 15.17 as against Rs. 13.45 for FY 2011-12.

During last year, with introduction of various high growth and high margin export oriented products, the share of Exports Revenue to Total Revenue have crossed the 50% benchmark. The ability to provide products with required specifications at desired intervals have added to the increase in volumes from Global customers over longer term period. The Company has entered into various long term supply agreement with its key customers thereby further strengthening its Global market positions. Significant volume growth is coming from their customers in Europe and America and in few of the products the demand is more than the production capabilities of the Company. Exports now, accounts for 51% of the total revenue and have increased by over 46% to Rs. 10600.000 Millions for FY 12-13 from Rs. 7270.000 Millions for FY 11-12.

CHEMICAL INDUSTRY – STRUCTURE AND DEVELOPMENT

Chemical Industry is one of the fastest growing industries in the Indian Economy. At the same time it is also one of the oldest domestic industry of India which started working soon after India’s Independence in 1947. It accounts for 18% of the Indian manufacturing sector output and is expected to grow by about 12% annually. It constitutes for about 15% of India’s Exports and has around 8% share in India’s Imports. From those early years, the Chemical Industry in India continued to contribute to the Economic Growth of Indian Economy. At present, the Chemical Industry accounts for almost 13% of Indian GDP.

A network of over 200 national laboratories and 1300 R&D Centres provide a strong base for further innovations and growth of Indian Chemical Industry. Government Initiatives in the form of Port based Chemical Parks in SEZ, Improvement in Infrastructure, Tax concessions, reduction and rationalization of Duty Structure, FDI relaxation, etc. plough the road for further growth of the Indian Chemical Industry into a major Chemical hub. End user Industries like Agro-Chemicals, Automotives, Biotechnology, Electronics, Packaging, Pharmaceuticals, Pigments, Polymers, Surfactants, etc have been witnessing good demand and are poised for faster growth.

Thus, Indian Chemical Industry holds potential to produce quality chemicals for global consumers because of its diversified manufacturing base, strong IPRs, availability of qualified work force, proximity to ports, availability of feedstock, etc.

With concerns on environmental impact, the Indian Government has been working towards ensuring stricter compliance of effluent norms, categorizing alert zone, identifying and restricting the operation of the polluting units. This has made Indian companies to scale up their units in parity with international standards. In this process, while a lot of units have been closed down, they are also witnessing the emergence of Indian Global Chemical Companies capable of competing with the other Asian players, while also adopting safer and greener processes.

The Company is a leading manufacturer of Speciality Chemicals with diversified end-uses into Agrochemicals, Pharmaceuticals, High Performance Polymers, Paints, Pigments, Printing Inks, Rubber Chemicals, Additives, Surfactants, Dyes, Oil and Gas additives, Flavours and Fragrances, Home and Personal Care applications, etc. The Company’s derisking by diversification has helped it withstand the volatilities and downturns of a specific end-user segment and also helps to capitalize on the growth opportunities in other end-user segments.

The Company believes that the long term growth and profitability from the business cannot be sustained without a framework considering the elements of Safety, Health, Environment Impact and Energy Efficiency initiatives. With these principles, the Company have stepped up its efforts for the sustainable growth of its businesses. The Company is committed to increase the process safety and increasing the level of automation in its existing areas of operation. This will help in reducing the manual handling and shopfloor manpower. The Company has adopted the 3R Principle, i.e., Reduce – Recover – Reuse. Over last 18 months, the Company has made substantial Investments into upgrading the ETP setup and had upgraded two of its Manufacturing Units into Zero Discharge Unit and also has put in places various processes to control/limit of generation of effluents and improve on the treatment of the same. The Company plans to invest further in these areas to ensure providing greener and safer manufacturing environment.

INTERCHANGEABLE PERFORMANCE AND AGROCHEMICALS MANUFACTURING OPERATIONS.

The Manufacturing units for these two segments are majorly interconnected/interlinked at the common manufacturing units located at Vapi, Sarigam, Jhagadia and Bhachau in the State of Gujarat and at Dombivali and Tarapur in the State of Maharashtra. A significant portion of the Company’s production capabilities are process driven and not based on a particular product. This gives the Company the flexibility to change its input mix and manufacture different products, thereby resulting into optimum utilization of production capabilities as well as provides flexibility to change the product mix amongst different end-user applications based on market dynamics.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Claims against the Company not acknowledged as Debts	387.011	219.828
Letters of Credit, Bank Guarantees and Bills Discounted	805.243	440.176

FIXED ASSETS

v Tangible Assets

Free hold Land

Lease Hold Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

v Intangible Assets

Process Development

Technical Knowhow

Goodwill

Computer Software

Copyrights and Patents

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.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.81.46

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KAR
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	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.