MIRA INFORM REPORT

Report Date :

12.12.2012

IDENTIFICATION DETAILS

Name :	AVDEL (INDIA) PRIVATE LIMITED
Registered Office :	6^th Floor, Ramon House, 169, Backbay Reclamation, Mumbai – 400020, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.03.1961
Com. Reg. No.:	11-011971
Capital Investment / Paid-up Capital :	Rs. 7.200 Millions
CIN No.: [Company Identification No.]	U28990MH1961PTC011971
IEC No.:	0397075057
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19986B
PAN No.: [Permanent Account No.]	AABCA3977E
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Importer and Exporter of Fastners and Allied Products
No. of Employees :	102 (Approximately) (In Office 25, In Factory 42, In Branches 35)

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 81000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears sharp fall in the sales turnover and profitability. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution.

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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Hinduja
Designation :	Financial Consultancy
Contact No.:	91-22-66345611
Date :	11.12.2012

LOCATIONS

Registered Office :	6^th Floor, Ramon House, 169, Backbay Reclamation, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-66345611/ 12/ 13
Fax No.:	91-22-66345622
E-Mail :	info@avdel.com
Website :	http://www.avdel.com
Area :	1000 sq. ft.
Location :	Rented
Sale Office :	Located At · Bangalore, Karnataka · Chennai, Tamilnadu
Warehouse :	Located At Bhirwandi

DIRECTORS

AS ON 29.09.2011

Name :	Mr. Sameer Gobind Bulchandani
Designation :	Director
Address :	A/82, Darshan Apartments, Mount Pleasant Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	26.08.1968
Qualification :	B. A. – Economics and Mech. Engineering (Brown University USA)
Date of Appointment :	27.04.1992
DIN No.:	00048940
Name :	Mr. Rohan Gobind Bulchandani
Designation :	Director
Address :	A-/21, Darshan Apartments, Mount Pleasant Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	26.03.1972
Qualification :	B. A. – Economics (University of Pennsylvania, USA)
Date of Appointment :	01.04.1996
DIN No.:	00048966
Name :	Mr. Lachha F. Kewalramani
Designation :	Director
Address :	A-/21, Darshan Apartments, Mount Pleasant Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	08.01.1941
Qualification :	B. Sc. (Engineering)
Date of Appointment :	30.10.1992
DIN No.:	00049542
Name :	Mr. Gobind Gaganmal Bulchandani
Designation :	Managing Director
Address :	A-2-13, Scindia Society, M V Road, Andheri East, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	24.07.1925
Qualification :	B. E. (Engineering) / MBA (IMD, Geneva)
Date of Appointment :	23.02.1983
DIN No.:	00049148

KEY EXECUTIVES

Name :	Mr. Hinduja
Designation :	Financial Consultancy

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders	No. of Shares
Gobind G. Bulchandani	1350
Annette Bulchandani	1116
Sameer Bulchandani	1422
Rohan G. Bulchandani	1422
Ramon Publications Private Limited, India	882
Tara Bulchandani	252
Divya Bulchandani	252
Shaan Bulchandani	252
Neil Bulchandani	252
TOTAL	7200

AS ON 29.09.2011

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Trader, Importer and Exporter of Fastners and Allied Products
Products :	Blind Rivets Non Threaded Fastners v Breakstem Fasteners v Structural Fasteners v Speed Riveting Fasteners v Threaded Inserts Threaded Fastners v Roofing Screws v Self Tapping Screws v Self Drilling Screws Tools v 734 (M) Hydro – Pneumatic v Avex Hand Tool – Lazy Tong Type v Avdel Hand Plier v 7165 (M) Hand Plier – Aerospace v Threaded Insert Pneumatic Tools
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :	Air India ESCORTS Mahindra Land T TATA Alstom Faivekey
No. of Employees :	102 (Approximately) (In Office 25, In Factory 42, In Branches 35)
Bankers :	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India Citi Bank N.A., Trent House, 2^nd Floor, G Block, Plot No. C 60, Bandra Krula Complex, Bandra (East), Mumbai-400051, Maharashtra, India State Bank of India
Facilities :	Cash Credit and LC Limit Rs. 20.000 Millions

Banking Relations :	--
Auditors :
Name :	S. P. Chopra and Company Chartered Accountants
Address :	15-A, 2^nd Floor, Bharat Insurance Building, Hormiman Circle, Fountain, Mumbai – 400 023
Tel. No.:	91-22-22661298/ 22663060
Fax No.:	91-22-22662956
PAN No.:	AACFS4595G
Sister Concern :	v Ramon Publications Private Limited Ramon House, 6^th Floor, 169, Backbay Reclamation, Mumbai – 400 020 --Finance and Investments v Annet Communications Private Limited 34, Evergreen Industrial Estate, Shakti Mill Lane, Mahalaxmi, Mumbai – 400 011 --Software Development (Export) v Aurobrite (India) Private Limited v Avdel Tools and Services 6 A, Evergreen Industrial Estate, Shakti Mill lane, Mahalaxmi Mumbai – 400023 --Manufacturing of Riveting Tools v Starlite Corporation 37 Evergreen Industrial Estate, Shakti Mill lane, Mahalaxmi Mumbai – 400023 --Manufacturing of Rivets

CAPITAL STRUCTURE

AS ON 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.1000/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7200	Equity Shares	Rs.1000/- each	Rs. 7.200 Millions

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		7.200	14.400	14.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.821	52.885	41.281
4] (Accumulated Losses)		(2.602)	0.000	0.000
NETWORTH		20.419	67.285	55.681
LOAN FUNDS
1] Secured Loans		10.091	51.704	40.522
2] Unsecured Loans		42.711	135.709	160.205
TOTAL BORROWING		52.802	187.413	200.727
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		73.221	254.698	256.408
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		47.979	61.869	60.415
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.275	3.511	0.006
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.737	118.884	134.525
	Sundry Debtors	36.194	102.089	77.427
	Cash & Bank Balances	4.153	4.621	4.091
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	31.283	44.373	35.704
Total Current Assets		74.367	269.967	251.747
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	24.339	52.122	38.211
	Provisions	25.061	28.527	17.549
Total Current Liabilities		49.400	80.649	55.760
Net Current Assets		24.967	189.318	195.987
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		73.221	254.698	256.408

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income (Gross Turnover)	179.936	436.016	380.011
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX		0.586	18.016	4.091
Less	TAX		3.188	5.597	1.221
	PROFIT / (LOSS) AFTER TAX		(2.602)	12.419	2.870
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		34.285	21.866	18.996
Add/ Less	TRANSFER ON ACCOUNT OF DEMERGER		(34.285)	0.000	0.000
	BALANCE CARRIED TO THE B/S		(2.602)	34.285	21.866
	Earnings / (Loss) Per Share (Rs.)		(361.38)	862.43	199.31

Particulars	31.03.2012
Sales Turnover (Approximately)	110.000
	[Due to stop manufacturing activity]

Expected Sales (2012-2013) : Rs. 70.000 Millions [Because there is no such business]

The above information has been parted by Mr. Hinduja.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	0.47	5.43	1.31
Return on Investment (ROI) (PBT/Networth)		0.03	0.27	0.07
Debt Equity Ratio (Total Liability/Networth)		5.00	3.98	4.61
Current Ratio (Current Asset/Current Liability)		1.50	3.35	4.51

LOCAL AGENCY FURTHER INFORMATION

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
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	No

NOTES

Sundry Creditors Details Not Available

FINANCIAL RESULTS:

The drop in turnover was due to the separation of commercial business. During the current year there is good progress in business and the company is hopeful of improvement of business/ profit during the current year.

FORM 8

Corporate identity number of the company	U28990MH1961PTC011971
Name of the company	AVDEL (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	6^th Floor, Ramon House, 169, Backbay Reclamation, Mumbai – 400020, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India
Nature of instrument creating charge	Letter of Hypothecation.
Date of instrument Creating the charge	31.07.2012
Amount secured by the charge	Rs. 20.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest at the rate as may be communicated by the Bank from time to time. Terms of repayment On demand. Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge Hypothecation by way of First Charge on Stocks and Book Debts etc. to secure as a continuing security for the repayment of Rs.20.000 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property charged (Including location of the property)	Stock-in-trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties, All the Debts, that is, all the book debts, out standings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights which are now

FIXED ASSETS

• Leasehold Land
• Factory Building
• Plant and Machinery
• Electrical Installation
• Motor Cars and Scooters
• Furniture and Fixture,
• Air Conditioner and Water Cooler
• Other Equipment
• Computers
• Fax Machine
• Vending Machines

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. 54.31
UK Pound	1	Rs. 87.36
Euro	1	Rs. 70.36

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPT / TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	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	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.