MIRA INFORM REPORT

Report Date :

03.04.2013

IDENTIFICATION DETAILS

Name :	AVAYA INDUSTRIES LIMITED (w.e.f. 26.03.2010)
Formerly Known As :	AVAYA INDUSTRIES PRIVATE LIMITED
Registered Office :	A 102, Ambika Darshan, C. P. Road, Near Bus Depot, Railway Station and Reliance Fresh, Kandivali (East), Mumbai – 400101, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.03.2010
Com. Reg. No.:	11-200751
Capital Investment / Paid-up Capital :	Rs. 9.084 millions
CIN No.: [Company Identification No.]	U24100MH2010PLC200751
TAN No.: [Tax Deduction & Collection Account No.]	MUMA37716A
PAN No.: [Permanent Account No.]	AAICA3412H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of PVC Pipes and Fittings.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 1100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low. Company performance seems to be improving. 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 some 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

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	B – (Long term issues)
Rating Explanation	Rating indicates that material credit risk is present.
Date	29.10.2012

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 (GENERAL DETAILS)

Name :	Mr. Milapchand S. Solanki
Designation :	Director
Contact No.:	91-260-2242296

LOCATIONS

Registered Office :	A 102, Ambika Darshan, C. P. Road, Near Bus Depot, Railway Station and Reliance Fresh, Kandivali (East), Mumbai – 400101, Maharashtra, India
Tel. No.:	91-22-65707816 / 20552055
Fax No.:	91-22-28462626
E-Mail :	avayaindystries@yahoo.com
Area :	1500 sq. ft.
Location :	Owned
Factory :	15/3, Kachigam Road, Ranganwada, Nani Daman – 396210, Gujarat, India
Tel. No.:	91-260-2242296

DIRECTORS

As on 29.09.2011

Name :	Mr. Arvind Surendra Chaturvedi
Designation :	Director
Address :	Suite 9, Hare Rama Hare Krishna, Akurli Cross Road No.1, Kandivali (East), Mumbai-400101, Maharashtra, India
Date of Birth/Age :	15.03.1975
Qualification :	BSC.
Date of Appointment :	11.03.2010
DIN No.:	02811464
Name :	Mr. Milapchand Sagarmal Solanki
Designation :	Director
Address :	218, Sonal Link Industrial Estate, Building No.2, Link Road, Malad (West), Mumbai-400064, Maharashtra, India
Date of Birth/Age :	13.02.1936
Qualification :	C.A
Date of Appointment :	11.03.2010
DIN No.:	01638240
Name :	Mr. Tapas Champaklal Mehta
Designation :	Director
Address :	601, ‘C’ Wing Labh, Ashish CHS, Old Police Lane, Andheri (East), Mumbai-400069, Maharashtra, India
Date of Birth/Age :	11.06.1973
Qualification :	C.A.
Date of Appointment :	18.03.2010
DIN No.:	02988669

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Chaturvedi Surendra Arvind	50000
Solanki Sagarmal Milapchand	50000
Yedery Ramesh Kiran	100
Mehta Purshottamdas Ramesh	100
Mehta Purshottamdas Ramesh	100
Mehta Purshottamdas Bharat	100
Bhaliya Popatbhai Jeevan	100
Total	100500

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of PVC Pipes and Fittings.

Products :

Item Code No.	Product Description
71159090	Metals
39042210	Pvc Resin

Terms :

Selling :

Cash and Credit (30-60-90 Days)

Purchasing :

Cash and Credit (30-60-90 Days)

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	* Installed Capacity
PVC Pipes/Compound	MT	NA	12200 p.a.

* As certified by the Director and relied upon by the auditors being a technical matter.

GENERAL INFORMATION

Customers :

• End Users
• OEM’s
• Manufacturer

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of India, SME, Goregaon Branch, 1^st Floor, Kohinoor Industrial Estate, W. E. Highway, Goregaon (East), Mumbai – 400063, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long term borrowing
Rupee term loans from banks	0.783	0.957
Short term borrowing
Rupee term loans from banks	63.812	161.828
Total	64.595	162.785

Banking Relations :	--
Auditors :
Name :	ARV and Company Chartered Accountants
Address :	Suite 9, Hare Rama, Hare Krishna, Akurli Cross Road No.1, Kandivli (East), Mumbai, Maharashtra, India
PAN No.:	AARFA1119K

CAPITAL STRUCTURE

As on 29.09.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100500	Equity Share	Rs. 10/- each	Rs. 1.005 Millions

As on 31.03.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
908422	Equity Share	Rs. 10/- each	Rs. 9.084 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.084	1.005	1.005
2] Share Application Money		0.000	3.260	3.260
3] Reserves & Surplus		266.810	8.658	0.014
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		275.894	12.923	4.279
LOAN FUNDS
1] Secured Loans		64.595	162.785	0.000
2] Unsecured Loans		30.000	154.517	5.668
TOTAL BORROWING		94.595	317.302	5.668
DEFERRED TAX LIABILITIES		0.148	0.205	0.000
TOTAL		370.637	330.430	9.947
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.036	14.765	7.090
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.000	2.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	90.044	53.705	1.588
	Sundry Debtors	406.973	210.326	5.283
	Cash & Bank Balances	112.895	13.881	6.317
	Other Current Assets	4.119	0.108	0.000
	Loans & Advances	96.351	104.502	3.580
Total Current Assets		710.382	382.522	16.768
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	341.444	64.979	13.844
	Other Current Liabilities	6.703	0.142	0.000
	Provisions	8.634	3.736	0.211
Total Current Liabilities		356.781	68.857	14.055
Net Current Assets		353.601	313.665	2.713
MISCELLANEOUS EXPENSES		0.000	0.000	0.144
TOTAL		370.637	330.430	9.947

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1930.839	1049.677	0.000
		Other Income	5.819	0.661	0.196
		TOTAL (A)	1936.658	1050.338	0.196
Less	EXPENSES
		Cost of materials consumed	1008.793	328.012
		Purchases of stock-in-trade	864.466	739.764	0.041
		Employee benefit expense	5.249	2.343
		Other expenses	22.464	6.683
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(30.188)	(45.000)
		TOTAL (B)	1870.784	1031.802	0.041
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)		65.874	18.536	0.155
Less	FINANCIAL EXPENSES (D)		40.073	6.181	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.801	12.355	0.155
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.753	1.054	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		24.048	11.301	0.155
Less	TAX (H)		4.423	2.551	0.048
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		19.625	8.750	0.107
	EARNINGS IN FOREIGN CURRENCY		NA	10.131	0.000
	Earnings / (Loss) Per Share (Rs.)		191.07	87.07	1.06

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.01	0.83	54.59
Net Profit Margin (PBT/Sales)	(%)	1.25	1.08	0.00
Return on Total Assets (PBT/Total Assets}	(%)	3.32	2.84	0.65
Return on Investment (ROI) (PBT/Networth)		0.09	0.87	0.04
Debt Equity Ratio (Total Debt/Networth)		0.34	24.55	1.32
Current Ratio (Current Asset/Current Liability)		1.99	5.56	1.19

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Creditors due small micro enterprises	341.444	0.000	0.000
Creditors due others		64.979	13.844
Total	341.444	64.979	13.844

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	No
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	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)	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	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	Yes

CORPORATE INFORMATION

The Company started its operation in the year 20010-11 by manufacturing of PVC Pipes and Fittings. During the last F.Y.i.e.2011-12 the company identified a few suppliers in various locations of India and got the PVC fittings outsourced from them besides manufacturing PVC pipes from its DAMAN Unit. Further to have a strong hold in the Pharma Sector. As compared to the previous year the company during the last year identified a few plants wherein they outsourced their Pharma requirements to cater to its clients. Also the company could acquire a small running Pharma unit at Tarapur MIDC on lease from where it entered into its own manufacturing activity. In the trading division the company besides the import of Resin has also started trade in the Chemicals and Solvents. The company has done a sizeable turnover of chemicals and is keen on expanding the business and would like to explore the markets and grow. 2.Significant Accounting Policies The Company is a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company. 2.1 Basis of Accounting and Preparation of Financial Statements The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. 2.2 Use of Estimates The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize. The company adopts the accrual basis in the preparation of it’s accounts except capital subsidy and leave pay, which are accounted on cash basis. The company considers the gratuity liability to accrue only when the employee completes the eligible years of employment with the company.

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Loans and advances from related parties	0.000	0.049
Other loans and advances	30.000	154.468
Total	30.000	154.517

FIXED ASSETS

· Land

· Buildings

· Plant and equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

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.54.33
UK Pound	1	Rs.82.72
Euro	1	Rs.69.82

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	PRL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.