MIRA INFORM REPORT

Report Date :

19.11.2011

IDENTIFICATION DETAILS

Name :	AVUDAI SURFACE TREATMENTS PRIVATE LIMITED (w.e.f. 25.05.2007)
Formerly Known As :	EVERCOATE CHEMICALS PRIVATE LIMITED
Registered Office :	31 A/16, SIDCO Industrial Estates, Ambattur, Chennai – 600098, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.05.2006
Com. Reg. No.:	059943
Capital Investment / Paid-up Capital :	Rs.0.500 million
CIN No.: [Company Identification No.]	U24112TN2006PTC059943
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Metal Pre-Treatments Chemicals
No. of Employees :	26 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 2516
Status :	Small Company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scale of activities are limited. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The concern can be considered for small 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

INFORMATION PARTED BY

Name :	Mr. A G Ravindran
Designation :	Marketing Manager
Contact No.:	91-9444147079
Date :	11.11.2011

LOCATIONS

Registered Office/Factory :	31 A/16, SIDCO Industrial Estates, Ambattur, Chennai – 600098, Tamilnadu, India
Tel. No.:	91-44-26154312 / 13
Mobile No.:	91-9444147079 (Mr. Ravindran)
Fax No.:	91-44-26154314
E-Mail :	info@avudai.com
Website :	www.avudai.com
Area :	1400sq.fts
Location :	Rented
Corporate Office :	10/389, Sboa School Road, Annanagar West Extn Extn, Chennai – 600101, Tamilnadu, India
Area :	1000sq.fts
Location :	Rented

SOLE PROPRIETOR/PARTNERS/DIRECTORS

AS ON 30.09.2011

Name :	Mr. E. Avudaiappan
Designation :	Director
Address :	No. 284, 13^th Street Korattur, Chennai – 600080,Tamilnadu, India
Date of Birth/Age :	05.07.1968
Qualification :	M. Sc (Chem)
Date of Appointment :	23.05.2006
DIN No.:	01466471

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	U24112TN2006PTC059943	Avudai Surface Treatments Private Limited	Director	23/05/2006	23/05/2006	-	Active	NO
2	U24290TN2011PTC082174	Avudai Innovatives Private Limited	Director	02/09/2011	02/09/2011	-	Active	NO

Name :	Mr. Sathiya B Avudiappa
Designation :	Director
Address :
Date of Birth/Age :	13.03.1987
Qualification :
Experience :
Date of Appointment :	19.10.2009
DIN No.:	02736803

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	U24112TN2006PTC059943	Avudai Surface Treatments Private Limited	Director	19/10/2009	19/10/2009	-	Active	NO
2	U24290TN2011PTC082174	Avudai Innovatives Private Limited	Director	02/09/2011	02/09/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. A G Ravindran
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
E. Avudaiappan	4750
K. Nagoor	250
Total	5000

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pre-Treatments Chemicals
Products :	Degreasing Chemicals ² Derusting / Descaling / Desmutting Chemicals ² Acid Inhibitors ² Modifiers ² Phosphating Chemicals ² Black / Blue Oxdizing Salt Passivating Chemicals ² Rust Convertors ² Wire ² Black stainers ² Paint Strippers / Removers
Brand Names :	EVERCLEAN, EVERPHOS, EVERSTRIP, TRIPHOS, GIALPHOS and SURPHOS
Exports :
Products :	Metal Pre Treatments Chemicals
Countries :	Srilanka Oman Middle -East
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	· End Users · OEM’s
No. of Employees :	26 Approximately
Bankers :	· Canara Bank · ICICI Bank
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Krishnamoorthy V. Chartered Accountants
Address :	48/4 Luz Avenue, Mylapore, Chennai 600004, Tamil Nadu, India
Tel. No.:	91-44-24996531/24995467
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs. 100 each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs. 100 each	Rs.0.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.129	0.064	0.032
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.629	0.564	0.532
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		0.629	0.564	0.532
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.104	0.125	0.152
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.115	0.095	0.102
	Sundry Debtors	4.995	5.825	2.937
	Cash & Bank Balances	0.348	0.060	0.066
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.059	0.295	0.265
Total Current Assets		5.517	6.275	3.370
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	4.992	5.836	2.990
	Provisions	0.000	0.000	0.000
Total Current Liabilities		4.992	5.836	2.990
Net Current Assets		0.525	0.439	0.380
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		0.629	0.564	0.532

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	14.690	10.823	12.687
		Other Income
		TOTAL (A)	14.690	10.823	12.687
Less	EXPENSES
		Cost of Materials
		Manufacturing Expenses
		Employees Remuneration	NA	NA	NA
		Increase/(Decrease) in Finished Goods
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.115	0.074	0.087
Less	FINANCIAL EXPENSES (D)		NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.115	0.074	0.087
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.021	0.027	0.035
	PROFIT BEFORE TAX (E-F) (G)		0.094	0.047	0.052
Less	TAX (H)		0.029	0.016	0.027
	PROFIT AFTER TAX (G-H) (I)		0.065	0.031	0.025
	Earnings Per Share (Rs.)		13.00	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.44	0.28	0.19
Net Profit Margin (PBT/Sales)	(%)	0.63	0.24	0.40
Return on Total Assets (PBT/Total Assets}	(%)	1.67	0.73	1.47
Return on Investment (ROI) (PBT/Networth)		0.10	0.05	0.04
Debt Equity Ratio (Total Liability/Networth)		7.93	10.34	5.62
Current Ratio (Current Asset/Current Liability)		1.10	1.07	1.12

LOCAL AGENCY FURTHER INFORMATION

Business operations

This is being the Fourth year of operation after incorporation they are glade to inform the members that they have achieved a turnover of RS.14.690 millions. This has achieved mainly due to the strenuous efforts of the Managing

Director who had previous experience in running Manufacturing of PreTreatment Chemicals. As a result, the previous customers have helped us in achieving the present turnover. In the future also is very bright and they expect the very high turnover in the coming years. Hence, the Raw material cost is increasing highly, they propose to purchase of Raw material at economical prices directly from manufacturing cost by such arrangement. The Directors wish to inform you that they expect a big boost to their product in the near future.

Fixed Assets:

· Cell Phone

· Computer

· Fire Safty Equipments

· Furniture and Fittings

· Lab Equipments

· Weighing Machine

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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 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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.