MIRA INFORM REPORT

Report Date :

18.11.2011

IDENTIFICATION DETAILS

Name :	AVON TUBETECH PRIVATE LIMITED
Registered Office :	E 10, Anand Niketan, New Delhi-110021
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.10.1997
Com. Reg. No.:	55-090118
Capital Investment / Paid-up Capital :	Rs.12.319 Millions
CIN No.: [Company Identification No.]	U27101DL1997PTC090118
TAN No.: [Tax Deduction & Collection Account No.]	DELA11705B DELA07670E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cold Drawn Seamless (CDS), Cold Drawn Welded (CDW) and Electric Resistance Welded (ERW) Tubes.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 690000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office:	E 10, Anand Niketan, New Delhi-110021, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	avontube@rediffmai.com
Website:	http://www.avontubtech.com
Head Office :	Plot No-42, Sector 6, Faridabad-121006, Haryana, India
Tel. No.:	91-129-4060204 / 2303642 / 2301632
Fax No.:	91-129-2249132

DIRECTORS

As on 27.09.2010

Name :

Ashwani Mahajan

Designation :

Director

Address :

Plot No. 1091, Sector 14, Faridabad-121001, Haryana, India

Date of Birth/Age :

02.04.1965

Date of Appointment :

10.10.1997

Din No.:

00027535

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27101DL1997PTC090118	AVON TUBETECH PRIVATE LIMITED	Director	10-10-97	10-10-97	-	Active	NO
2	U27109DL2002PTC117504	ALLIANCE ALLOYS PRIVATE LIMITED	Director	28-10-02	28-10-02	26-02-08	Active	NO
3	U34300DL2006PTC146023	NOVA TUBES PRIVATE LIMITED	Director	08-02-06	08-02-06	-	Active	NO

Name :

Mr. Sunil Mahajan

Designation :

Director

Address :

Plot No. 325, Sector 16 A, Faridabad-121001, Haryana, India

Date of Birth/Age :

12.04.1969

Date of Appointment :

10.10.1997

Din No.:

00027571

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
Ashwani Mahajan	121000	113275
Sunil Mahajan	106000	206425
Kailash Devl Gupta	--	100
Suman Mahajan	--	49600
Ruchika Mahajan	20000	100
Ashwani Mahajan HUF	--	100
ML Gupta HUF	--	100
Sunil Mahajan HUF	--	100
Om Prakash Sharma	--	2000
Janak Raj Sharma	--	100
Privy Financial Services Limited	--	10000
Neel Kant Organics Private Limited	--	10000
Globe Industrial Resources Limited	20000	10000
Lucky Motors and Commercial Finance Private Limited	20000	10000
Evergrowing Instruction and Construction Private Limited	10000	12000
LFS Securities Limited	20000	10000
Muni Lal Gupta	--	150000
Femina Merchants Private Limited	--	20000
Banga Pafoam Private Limited	--	10000
Dhara Uyapaar Private Limited	--	15000
Mahanivesh India Limited	--	50000
Sharda Capsec Limited	10000	30000
KOA Tools India Limited	--	20000
Bhawani Portfolio Private Limited	--	50000
Pack-N-Move Travel Private Limited	4000	--
SLS Stock and Share Brokers Limited	6000	--
KTL Infosys Limited	20000	--
Harman Alloys Limited	5000	--
Mani Lal	16000	--
Manga Marketing	20000	--
LFS Services Private Limited	20000	--
Exclusive Traders Private Limited	10000	--
KTL Infosys Limited	25000	--
Total	453000	778900

As on 27.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	33.00
Directors or relatives of directors	67.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cold Drawn Seamless (CDS), Cold Drawn Welded (CDW) and Electric Resistance Welded (ERW) Tubes.

Products :

Product Description	Item Code
Steel Tubes	73041110

PRODUCTION STATUS (AS ON 31.03.2010)

Installed Capacity in MT 19300

Particulars	Unit	Actual Production
Process Steel Tubes	Mtrs.	10271094.11
Process Steel Tubes	Pcs.	6723041
Process Steel Tubes	Kgs.	2947586.000
Process Steel Tubes	Ft.	--
Scrap	Kg.s	1266578.000

GENERAL INFORMATION

Bankers :

· The Federal Bank Limited

· ABN Amro Bank

· The Union Bank of India

· Small Industrial Development Bank of India

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Working Capital Facility From
The Federal Bank Limited	105.250	114.620
ABN Amro Bank	0.000	19.999
The Union Bank of India	49.738	0.000
Machine Term Loan From
The Federal Bank Limited	43.681	60.844
Small Industrial Development Bank of India	6.043	7.739
Haryana Finance Corporation	4.785	6.525
Buyers Credit	11.767	0.000
Other Secured Loans	2.998	2.221
Total	224.262	211.948
Unsecured Loan
From Directors and Shareholders	15.278	16.842
Inter Corporate Deposits	12.528	42.581
From Others	0.000	3.567
Total	27.806	62.990

NOTE:

1. Working capital facilities from banks are secured by way of hypothecation of stock of raw material, semi-finished and finished goods, stores and consumable and book debts, both present and future. Limits are further secured by way of hypothecation of movable fixed assets, both present and future. These loans are further secured by personal guarantee of directors.

2. Term loan from Haryana Financial Corporation is secured by way of hypothecation of respective assets bought out of it.

3. Term loan from Small Industrial Development Bank of India is secured by way of hypothecation of respective assets bought out of it.

4. Term loan From The Federal Bank Limited are further secured by equitable mortgage by deposit of title deeds of property situated at Plot No. 42, Sector 6, Faridabad.

5. Buyers credit from banks are secured against counter guarantee given The Federal Bank.

6. Other secured loans are secured by hypothecation of respective assets bought out of each.

Banking Relations :	--
Financial Institution:	Religare Finvest Limited, D3, P3B, District Centre, Saket, New Delhi-110017, India
Auditors :
Name :	PC Bindal and Company Chartered Accountants
Address :	101, Sita Ram Mansion, 718/21, Joshi Road, Karol Bagh, New Delhi-110005, India
Tel. No.:	91-11-23549822/23
Pan No.:	AAGPG6970P
Associates:	Nova Tubes Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions
1000000	Preferences Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
778900	Equity Shares	Rs.10/- each	Rs.7.789 Millions
453000	Preferences Shares	Rs.10/- each	Rs.4.530 Millions
	Total		Rs.12.319 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		12.319	12.319	8.869
2] Share Application Money		0.000	0.000	15.000
3] Reserves & Surplus		161.999	141.639	86.366
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		174.318	153.958	110.235
LOAN FUNDS
1] Secured Loans		224.262	211.948	207.786
2] Unsecured Loans		27.806	62.990	89.128
TOTAL BORROWING		252.068	274.938	296.914
DEFERRED TAX LIABILITIES		12.348	9.683	8.078
TOTAL		438.734	438.579	415.227
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		209.576	221.124	172.640
Capital work-in-progress		7.100	8.153	46.969
INVESTMENT		0.000	0.000	0.00
DEFERREX TAX ASSETS		0.000	0.000	0.00
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	157.201	103.823	102.168
	Sundry Debtors	171.821	146.495	139.816
	Cash & Bank Balances	14.391	9.233	6.218
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	24.478	27.588	31.541
Total Current Assets		367.891	287.139	279.743
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	124.710	64.359	73.085
	Other Current Liabilities	10.600	7.131	7.272
	Provisions	10.523	6.347	3.768
Total Current Liabilities		145.833	77.837	84.125
Net Current Assets		222.058	209.302	195.618
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		438.734	438.579	418.227

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	689.133	587.894
		Other Income	2.536	5.414
		TOTAL (A)	691.669	593.308	549.684
Less	EXPENSES
		Manufacturing Expenses	548.780	466.274
		Personnel Cost	32.240	29.673	523.022
		Administrative Expenses	25.410	21.927
		TOTAL (B)	606.430	517.874	523.022 [Including Financial Expenses and Depreciation]
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		85.239	75.434
Less	FINANCIAL EXPENSES (D)		43.564	37.263
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.675	38.171
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.946	8.888
	PROFIT BEFORE TAX (E-F) (G)		30.729	29.283	26.662
Less	TAX (H)		10.368	4.693	2.668
	PROFIT AFTER TAX (G-H) (I)		20.361	24.590	23.994
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		89.389	65.166	41.166
	PRIOR PERIOD DEBIT / CREDIT		0.000	0.367	0.000
	BALANCE CARRIED TO THE B/S		109.750	89.389	65.166
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	23.791	60.177	34.701
	TOTAL EARNINGS		23.791	60.177	34.701
	IMPORTS
		Raw Materials	25.965	47.613	62.632
		Capital Goods	0.000	0.000	10.203
	TOTAL IMPORTS		25.965	47.613	72.835
	Earnings Per Share (Rs.)		26.14	56.55	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.94	4.14	4.37
Net Profit Margin (PBT/Sales)	(%)	4.46	4.98	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.32	5.76	5.89
Return on Investment (ROI) (PBT/Networth)		0.18	0.19	0.24
Debt Equity Ratio (Total Liability/Networth)		2.28	2.29	3.46
Current Ratio (Current Asset/Current Liability)		2.52	3.69	3.33

LOCAL AGENCY FURTHER INFORMATION

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U27101DL1997PTC090118
Name of the company	AVON TUBETECH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	E 10, Anand Niketan, New Delhi-110021, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Religare Finvest Limited, D3, P3B, District Centre, Saket, New Delhi-110017, India
Email	corporateaffairs@religare.com
Nature of description of the instrument creating or modifying the charge	Loan agreement against Movable property.
Date of instrument Creating the charge	30.06.2011
Amount secured by the charge	Rs.10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.25% per annum. Terms of Repayment 48 Monthly Installment of Rs.0.269 Million Each Extent and Operation of the charge 100% on the entire property.
Short particulars of the property charged	CR/HR Slitting line (1600 mm wide), Manufacturer: - Rollcon Engineering Company Private Limited.

FIXED ASSETS:

· Land and Building

· Factory Building

· Plant and Machinery

· Vehicles

· Office Equipments

· Furniture and Fixtures

· Electric Installation

· Computer

· Truck

· Canteen

· Tools and Dies

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.72
UK Pound	1	Rs.79.87
Euro	1	Rs.68.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.