MIRA INFORM REPORT

Report No. :	326336
Report Date :	09.06.2015

IDENTIFICATION DETAILS

Name :	AAREY DRUGS AND PHARMACEUTICALS LIMITED
Registered Office :	E-34, M.I.D.C., Tarapur, Boisar, District Thane – 401506, Maharashtra
Tel. No.:	91-22-66154219 (8 Lines)
Country :	India
Financials (as on) :	31.03.2015 [Profit and Loss Account]
Date of Incorporation :	15.05.1990
Com. Reg. No.:	11-056538
Capital Investment / Paid-up Capital :	Rs. 168.147 Million [As on 31.03.2014]
CIN No.: [Company Identification No.]	L99999MH1990PLC056538
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACA5253A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Chemical Products, Solvent and Drugs Intermediates.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Subject was incorporated in 1990. It is engaged in the business of manufacturing and trading of chemical products, Solvents and drugs intermediates. Rating takes into consideration weak profitability indicators and fluctuation in raw material prices. However rating also takes into consideration exclusive experience of promoters in chemical industry for over two decades, diversified product portfolio of the company and long standing relationship with its major clients. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. Subject can be considered for business dealings with some caution. NOTES: Demerger: As per Directors Report, the company is in process of demerger of its DEF division. I.e. business of Acetic Acid, Butyl Acrly Monomer, Tolune and Vinaly Acitate Monomer, with Enam Organics India Limited under clause 24(f) of the listing agreement under the scheme of Arrangement for Demerger u/s 391 to 394 of the Companies Act,1956. The company has already filed an application for the same with BSE ON 3^RD December, 2013. Reason for Suspension of Rating: Suspension follows ICRAs inability to carry out a rating surveillance in the absence of the requisite information from the subject.

NOTES :

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term Rating = ICRA BB- [Suspended]
Rating Explanation	Inadequate credit quality and moderate credit risk.
Date	April 2015

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 31-03-2013.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE

[CONTACT NO.: 91-22-66154219]

LOCATIONS

Registered Office/ Factory :	E-34, M.I.D.C., Tarapur, Boisar, District Thane – 401506, Maharashtra, India
Tel. No.:	91-2525-271049
Fax No.:	Not Available
E-Mail :	info@aareydrugs.com accounts@aareydrugs.com careers@aareydrugs.com marketing@aaredrugs.com corporate@aareydrugs.com investorgrievance@aareydrugs.com aareydrugs@gmail.com
Website :	http://www.aareydrugs.com
Head Office :	107, Sahakar Bhavan, 340/348, Narshi Natha Street, Masjid, Mumbai – 400009, Maharashtra, India
Tel. No.:	91-22-66154219 (8 Lines)
Fax No.:	91-22-23455543

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Jagdish K. Shah
Designation :	Chairman
Name :	Mr. Mihir R. Ghatalia
Designation :	Managing Director
Name :	Mr. Lalit R. Tulsiani
Designation :	Director
Date of Birth/Age :	56 Years
Qualification :	Mechanical Engineer
Date of Appointment :	02.12.2004
Name :	Mr. Chetan K. Mehta
Designation :	Director
Name :	Mr. Satish M. Sheth
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6534541	38.86
Bodies Corporate	3120000	18.56
Sub Total	9654541	57.42
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9654541	57.42
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	603900	3.59
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2237771	13.31
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3719307	22.12
Any Others (Specify)	599165	3.56
Clearing Members	569951	3.39
Non Resident Indians	29214	0.17
Sub Total	7160143	42.58
Total Public shareholding (B)	7160143	42.58
Total (A)+(B)	16814684	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	16814684	100.00

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

Sl. No.	Name of the Shareholders	Details of Shares held
		No. of Shares held	As a %
1	Rajesh P Ghatalia	1,10,132	0.65
2	Damiyanti Pranlal Ghatalia	1,54,793	0.92
3	Bina Rajesh Ghatalia	18,01,725	10.72
4	Rajesh Pranlal Ghatalia	2,69,459	1.60
5	Damayanti Pranlal Ghatalia	11,37,544	6.77
6	Mihir Rajesh Ghatalia	28,20,888	16.78
7	Mira Mihir Ghatalia	2,40,000	1.43
8	Suraj Tradelinks Private Limited	15,60,000	9.28
9	Nimit Impex Private Limited	15,60,000	9.28
	Total	96,54,541	57.42

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 Shareholders	No. of Shares held	Shares as %
1	Priti Chetan Mehta	402977	2.40
2	Sankaran Narayanan Krishnakumar	325000	1.93
3	Arcadia Shares and Stock Brokers Private Limited	392230	2.33
4	Urmila Rameshchandra Mehta	634380	3.77
5	Sangita Maruti Ugade	241500	1.44
6	Maruti Krishna Ugade	285012	1.70
	Total	2281099	13.57

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Chemical Products, Solvent and Drugs Intermediates.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Not Divulged
Countries :	Not Divulged
Imports :
Products :	Not Divulged
Countries :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· State Bank of Patiala

Seepz++, Andheri (East) Branch, Mumbai, Maharashtra, India

· Indian Overseas Bank

Vile Parle (East) Branch, Mumbai, Maharashtra, India

· Indian Overseas Bank

Mandvi Branch, Mumbai, Maharashtra, India

· Canara Bank

Vile Parle (East) Branch, Mumbai, Maharashtra, India

· Punjab National Bank

Mumbai, Mandvi-Branch, Mumbai, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Other Loans and Advances Kotak Mahindra Prime Limited * [Secured against hypothecation of vehicle financed]	0.000	0.172
Less : Current Maturity of Long term borrowing	0.000	(0.172)
SHORT TERM BORROWINGS
Other loans and advances State Bank of Patiala*	55.018	42.807
Kotak Mahindra Prime Limited**	0.000	0.172
Total	55.018	42.979
SHORT TERM BORROWINGS *Cash Credit facility taken from bank which is secured by way of hypothecation of stock, book debts, and further secured by mortgage of factory land and building. **Secured against hypothecation of vehicle financed.

Banking Relations :	--
Auditors :
Name :	DMKH and Company Chartered Accountants
Address :	C-9, Sanjay Apartment, Near Gokul Hotel, SVP Road, Borivali (West), Mumbai – 400092, Maharashtra, India
Memberships :	--
Collaborators :	--
Related Parties : [As on 31.03.2014]	· Nimit Impex Private Limited · Suraj Tradelinks Private Limited · Enam Organic India Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
17,000,000	Equity Shares	Rs. 10/- each	Rs. 170.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16,814,684	Equity Shares	Rs. 10/- each	Rs. 168.147 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	168.147	168.147
(b) Reserves & Surplus	177.065	166.556
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	345.212	334.703
(3) Non-Current Liabilities
(a) Long-term borrowings	0.142	1.693
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.142	1.693
(4) Current Liabilities
(a) Short term borrowings	57.016	46.913
(b) Trade payables	640.807	677.272
(c) Other current liabilities	15.363	1.741
(d) Short-term provisions	10.349	8.837
Total Current Liabilities (4)	723.535	734.763
TOTAL	1068.889	1071.159
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	43.845	40.782
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	3.304	3.304
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	4.400	32.300
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.089	0.000
(e) Other Non-current assets	0.627	0.941
Total Non-Current Assets	52.265	77.327
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	51.308	75.183
(c) Trade receivables	648.505	664.057
(d) Cash and cash equivalents	8.488	5.095
(e) Short-term loans and advances	39.531	15.645
(f) Other current assets	268.792	233.852
Total Current Assets	1016.624	993.832
TOTAL	1068.889	1071.159

NOTE:

Balance Sheet for the year 2015 is not available only Profit and Loss Account is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015 Consolidated	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	2134.414	1997.250	1723.074
		Other Income	25.911	15.801	2.046
		TOTAL (A)	2160.325	2013.051	1725.120
Less	EXPENSES
		Cost of Materials Consumed	2096.717	1963.366	1688.517
		Employees benefits expense	--	4.150	2.762
		General Administrative Expenses	22.059	--	--
		Selling and Distribution Expenses	4.609	--	--
		Other expenses	--	16.452	11.406
		TOTAL (B)	2123.385	1983.968	1702.685
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		36.940	29.083	22.435
Less	FINANCIAL EXPENSES (D)		12.307	9.454	7.632
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.633	19.629	14.803
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.533	6.220	5.779
	PROFIT BEFORE TAX (E-F) (G)		14.100	13.409	9.024
Less	TAX (H)		3.216	2.899	2.441
	PROFIT AFTER TAX (G-H) (I)		10.884	10.510	6.583
	Earnings Per Share (Rs.)
	Basic		0.65	0.63	0.39
	Diluted		0.65	0.63	0.41

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015 Consolidated	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	(4.218)	33.724

KEY RATIOS

PARTICULARS		31.03.2015 Consolidated	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.51	0.53	0.38
Operating Profit Margin (PBDIT/Sales)	(%)	1.73	1.46	1.30
Return on Total Assets (PBT/Total Assets}	(%)	NA	1.26	0.87
Return on Investment (ROI) (PBT/Networth)		NA	0.04	0.03
Debt Equity Ratio (Total Liability/Networth)		NA	0.17	0.15
Current Ratio (Current Asset/Current Liability)		NA	1.41	1.35

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	Rs. 10.00/-
Market Value	Rs. 12.43/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015 [Consolidated]
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1723.074	1997.250	2134.414
		15.912	6.868

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015 [Consolidated]
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1723.074	1997.250	2134.414
Profit	6.583	10.510	10.884
	0.38%	0.53%	0.51%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of Establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	No
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10516189	28/07/2014	145,000,000.00	DENA BANK	DEEPAVALI ,S.V.ROAD, ANDHERI (WEST), MUMBAI, MAHARASHTRA - 400058, INDIA	C17564097

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Kotak Mahindra Bank Limited	0.142	1.693
SHORT TERM BORROWINGS
Loans and advances from related parties From Directors	0.447	2.633
Kotak Mahindra Bank Limited	1.551	1.301
Total	2.140	5.627

DEMERGER [AS ON 31.03.2014]

The Company is in process of demerger of its DEF Division, i.e. business of Acetic Acid, Butyl Acrly Monomer, Tolune and Vinaly Acitate Monomer, with Enam Organics India Limited under Clause 24(f) of the listing agreement under the scheme of Arrangement for Demerger u/s 391 to 394 of the Companies Act, 1956. The Company has already filed an application for the same with BSE on 3 December, 2013.

OUTLOOK [AS ON 31.03.2014]

The industry sector under which the company operates has been posting healthy growth rates over the years. The market for the product mix is expanding at above 6% per annum. These factors provide opportunities for the company to continue to return impressive growth and returns for all stakeholders.

FIXED ASSETS:

· Land

· Factory Building

· Plant & Machinery

· Factory Equipment

· Electronic Equipment

· Furniture

· Electronic Fitting

· D.G. Set

· Computer

· Motor Car

· Laboratory Equipment

· Air Condition

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. 64.11
UK Pound	1	Rs. 97.84
Euro	1	Rs. 71.12

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SAN
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.