MIRA INFORM REPORT

Report Date :

06.10.2012

IDENTIFICATION DETAILS

Name :	AVUDAI SURFACE TREATMENTS PRIVATE LIMITED (w.e.f. 25.05.2007)
Formerly Known As :	EVERCOATE CHEMICALS PRIVATE LIMITED
Registered Office :	No. 10/389, SBOA School Road, Anna Nagar West Extension, Chennai – 600101, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.05.2006
Com. Reg. No.:	18-059943
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 Pre-Treatments Chemicals, Everclean, Everphos, Everstrip, Triphos, Gialphos and Surphos.
No. of Employees :	20 (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 2000
Status :	Small Company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject was established as a proprietory concern during 1997 and in May 2006 it got converted into a private limited company. It 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 company can be considered for small to mediocre 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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. Ravindran
Designation :	Marketing Manager
Contact No.:	91-9444147079
Date :	03.10.2012

LOCATIONS

Registered Office :	No. 10/389, SBOA School Road, Anna Nagar West Extension, Chennai – 600101, Tamilnadu, India
Tel. No.:	91-44-26154312/ 13/ 14
Mobile No.:	91-9444147079 (Mr. Ravindran)
Fax No.:	91-44-26154314
E-Mail :	info@avudai.com ravi@avudai.com
Website :	http://www.avudai.com
Area :	1000 Sq. ft.
Location :	Rented
Factory :	31 A/16, SIDCO Industrial Estates, Ambattur, Chennai – 600098, Tamilnadu, India
Tel. No.:	91-44-26154340
Area :	1400 Sq. ft.
Location :	Rented

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Avudaiappan Erulappan

Designation :

Director

Address :

Door No. 284, TNHB, 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/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP 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 Bama Avudaiappa

Designation :

Director

Address :

Door No. 284, TNHB, 13^th Street Korattur, Chennai – 600080,Tamilnadu, India

Date of Birth/Age :

13.03.1987

Date of Appointment :

19.10.2009

DIN No.:

02736803

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP 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. Ravindran
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Avudaiappan Erullappan	4750
Sathiya Bama Avudaiappan	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, Everclean, Everphos, Everstrip, Triphos, Gialphos and Surphos.
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 :	Pre-Treatments Chemicals
Countries :	Ø Srilanka Ø Oman Ø Middle -East
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers, Retailers, End Users and OEM’s ² BEMS Limited
No. of Employees :	20 (Approximately)
Bankers :	ICICI Bank, Annanagar (West) Branch

Banking Relations :	--
Auditors :
Name :	Krishnamoorthy V. Chartered Accountants
Address :	48/4 Luz Avenue, Mylapore, Chennai 600004, Tamilnadu, India
Tel. No.:	91-44-24996531/24995467
Mobile No.:	91-9444006531
PAN No.:	AJZPK6039K
Sister Concern :	² Avudai Innovative Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

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
		Other Income
		TOTAL	14.690	10.823	12.687
Less	EXPENSES
		Cost of Materials
		Manufacturing Expenses
		Employees Remuneration
		Increase/(Decrease) in Finished Goods
		TOTAL	14.575	10.749	12.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.115	0.074	0.087
Less/ Add	DEPRECIATION/ AMORTISATION		0.021	0.027	0.035
	PROFIT BEFORE TAX		0.094	0.047	0.052
Less	TAX		0.029	0.016	0.027
	PROFIT AFTER TAX		0.065	0.031	0.025
	Earnings Per Share (Rs.)		13.00	6.29	5.01

Particulars	31.03.2012
Sales Turnover (Approximately)	20.000

Expected Sales ( 2012-2013 ) : Rs. 25.000 Millions

The above information has been parted by Mr. Ravindran (Marketing Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.44	0.29	0.20
Return on Total Assets (PBT/Total Assets}	(%)	1.67	0.73	1.48
Return on Investment (ROI) (PBT/Networth)		0.15	0.08	0.10
Debt Equity Ratio (Total Liability/Networth)		7.94	10.35	5.62
Current Ratio (Current Asset/Current Liability)		1.11	1.08	1.13

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)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
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	No

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 Pre-Treatment 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. They expect a big boost to their product in the near future.

FIXED ASSETS:

² Cell Phone

² Computer

² Fire Safty Equipments

² Furniture and Fittings

² Lab Equipments

² Weighing Machine

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. 51.62
UK Pound	1	Rs. 83.57
Euro	1	Rs. 67.17

INFORMATION DETAILS

Information Gathered by :	SLP
Report Prepared by :	BVA

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	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

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.