MIRA INFORM REPORT

Report Date :

14.10.2013

IDENTIFICATION DETAILS

Name :	AVA CHEMICAL PRIVATE LIMITED
Registered Office :	1/20 B, Narayan Plaza, 26-A, Chandivali Andheri (East), Mumbai 400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.11.1985
Com. Reg. No.:	11-038183
Capital Investment / Paid-up Capital :	Rs. 2.160 Millions
CIN No.: [Company Identification No.]	U27100MH1985PTC038183
IEC No.:	03890441568
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Inorganic Chemicals.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 224000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Even though sales turnover of the company has increased there appears dip in profit of the company during financial year 2012. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Shailendra Narware
Designation :	Export Manager
Contact No.:	91-9167042542
Date :	11.10.2013

LOCATIONS

Registered Office :	1/20 B, Narayan Plaza, 26-A, Chandivali Andheri (East), Mumbai-400072, Maharashtra, India
Tel. No.:	91-22-28475505/42259400/42259406
Fax No.:	91-22-28475790
E-Mail :	ava@bom2.vsnl.net.in
Website :	www.avachemicals.com
Area :	3000 sq ft
Location :	Owned
Factory 1 :	W/59 MIDC, Post Kulgaon District Thane-421503, Maharashtra, India
Factory 2 :	W/91, MIDC, Post Kulgaon District Thane-421503, Maharashtra, India
Factory 3 :	Shed No 13, Plot 13 and 14, Post Kulgaon District Thane-421503, Maharashtra, India

DIRECTORS

As on 28.09.2012

Name :	Mr. Mohan Khatoomal Bhatia
Designation :	Director
Address :	1102, Norita, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	05.03.1935
Date of Appointment :	06.11.1986
DIN No.:	00110568
Name :	Mr. Pahlaj Khatoomal Bhatia
Designation :	Director
Address :	803, Norita, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	29.09.1940
Date of Appointment :	02.12.1985
DIN No.:	00110671
Name :	Mr. Jagdish Khatoomal Bhatia
Designation :	Director
Address :	802, Norita, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	25.12.1949
Date of Appointment :	31.03.1986
DIN No.:	00110764
Name :	Mr. Vijay Mohan Bhatia
Designation :	Director
Address :	1103, Norita, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	13.11.1986
Date of Appointment :	01.04.2005
DIN No.:	00110836
Name :	Mr. Haresh Khatoomal Bhatia
Designation :	Director
Address :	903 Norita, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	28.02.1947
Date of Appointment :	01.04.2006
DIN No.:	00110916

MAJOR SHAREHOLDERS

As on 28.09.2012

Names of Shareholders	No. of Shares
Mohan Khatoomal Bhatia	90
Pahlaj Khatoomal Bhatia	2728
Jagdish Khatoomal Bhatia	2821
Vijay Mohan Bhatia	3510
Haresh Khatoomal Bhatia	2421
Anita G Bhatia	10
Rekha M Bhatia	1800
Pushpa P Bhatia	2652
Megha Anila Udeshi	10
Hansa Bhatia	2560
Reema Bhatia	19
Amit H Bhatia	2979
Total	21600

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Directors or relatives of Directors
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Inorganic Chemicals
Products :	Chelated Micronutrients (EDTA Based): EDTA Co / Chelated Cobalt EDTA Cu / Chelated Copper EDTA Fe / Chelated Feric Sodium EDTA Mg / Chelated Magnesium EDTA Mn / Chelated Manganese EDTA Zn / Chelated Zinc EDTA Ca / Chelated Calcium EDTA Dipotassium Zinc Ammonium EDTA Liquid Copper Diammonium EDTA Liquid Diammonium EDTA Liquid EDTA Combi Mixture DTPA (Diethylenetriamine Penta Acetic Acid) DTPA Pure Acid DTPA Fe DTPA Na5 DTPA Potassium (K5DTPA) NTA (Nitrilo tri Acetic Acid) NTA Pure Acid Trisodium NTA (powder) Trisodium NTA (liquid)
Exports :
Countries :	Europe Middle East Arab Conntry

GENERAL INFORMATION

No. of Employees :

50 (Approximately)

Bankers :

• ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India
• Development Credit Bank Limited, 601 and 602, Peninsula Business Park, 6^th Floor, Tower A, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
• Axis Bank Limited
• Citi Bank

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Axis Bank Limited – Car Loan (Secured against Vehicle)	0.260	0.615
Kotak Mahindra Primus Limited- car loan (Secured against Vehicle)	0.039	0.599
Short Term Borrowings
Citi Bank-Buyer Credit	14.196	12.424
DCB Limited – Buyer Credit	37.906	0.000
Citi Bank – EPC Loan	22.949	18.948
Total	75.350	32.586

Note:

Short Term Borrowings

Secure against Hypothecation of immovable property, inventories and book debts on pari passu and personal guarantee by director.

Banking Relations :	--
Auditors :
Name :	Jayesh Dalia and Associates Chartered Accountants
Address :	422, Arun Chambers, Tardeo, Mumbai – 400034, Maharashtra, India
Tel. No.:	91-22-66802417/66601056
Fax No.:	91-22-66602418
E-Mail :	info@ideca.com
PAN No.:	AADFJ3735C
Memberships :	· Basic Chemicals, Pharmaceuticals and Cosmetics Export Council (Chemexcil) · Bulk Drugs Manufacturers Association · Photography Manufacturers Association · Federation of Indian Chambers of Commerce and Industry (FICCI)

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21600	Equity Shares	Rs. 10/- each	Rs. 2.160 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.160	2.160
(b) Reserves & Surplus	53.812	48.402
(c) Money received against share warrants	0.000	0.000
	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	55.972	50.562
(3) Non-Current Liabilities
(a) long-term borrowings	13.226	7.100
(b) Deferred tax liabilities (Net)	0.762	0.675
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.334	0.000
Total Non-current Liabilities (3)	15.322	7.775
(4) Current Liabilities
(a) Short term borrowings	75.051	31.372
(b) Trade payables	18.889	20.922
(c) Other current liabilities	10.287	22.953
(d) Short-term provisions	3.669	10.949
Total Current Liabilities (4)	107.896	86.196
TOTAL	179.190	144.533
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	24.872	14.603
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	3.554	7.834
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.171	0.171
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.804	0.699
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	29.401	23.307
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	57.700	44.084
(c) Trade receivables	46.955	47.167
(d) Cash and cash equivalents	22.486	0.870
(e) Short-term loans and advances	19.352	17.993
(f) Other current assets	3.296	11.112
Total Current Assets	149.789	121.226
TOTAL	179.190	144.533

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.160
2] Share Application Money		0.000
3] Reserves & Surplus		40.690
4] (Accumulated Losses)		0.000
NETWORTH		42.850
LOAN FUNDS
1] Secured Loans		24.169
2] Unsecured Loans		17.286
TOTAL BORROWING		41.455
DEFERRED TAX LIABILITIES		0.682
TOTAL		84.987
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.728
Capital work-in-progress		0.000
INVESTMENT		0.170
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.125
	Sundry Debtors	39.356
	Cash & Bank Balances	11.607
	Other Current Assets	0.000
	Loans & Advances	21.075
Total Current Assets		100.163
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.691
	Other Current Liabilities	3.654
	Provisions	7.729
Total Current Liabilities		28.074
Net Current Assets		72.089
MISCELLANEOUS EXPENSES		0.000
TOTAL		84.987

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
SALES
	Income
	Other Income
	TOTAL	362.837	265.544	247.916
EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL	350.639	250.090	233.676
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		12.198	15.364	14.240
DEPRECIATION/ AMORTISATION		3.114	2.385	1.831
PROFIT/(LOSS) BEFORE TAX		9.084	12.979	12.409
TAX		3.350	5.240	4.543
PROFIT/(LOSS) AFTER TAX		5.410	7.747	7.419
EARNINGS IN FOREIGN CURRENCY
	FOB value of Export	146.232	103.155	113.845
TOTAL EARNINGS		146.232	103.155	113.845
IMPORTS
	CIF Value of Import	217.195	131.275	97.574
TOTAL IMPORTS		217.195	131.275	97.574
Earnings Per Share (Rs.)		250.000	357.00	343.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.46	2.92	3.17
Return on Total Assets (PBT/Total Assets}	(%)	6.03	10.65	10.99
Return on Investment (ROI) (PBT/Networth)		0.16	0.26	0.29
Debt Equity Ratio (Total Debt /Networth)		1.58	0.76	0.97
Current Ratio (Current Asset/Current Liability)		1.39	1.01	3.57

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	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	No
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	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	No

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
From Director	9.991	5.113
From Member	2.936	0.773
Total	12.927	5.886

INDEX OF CHARGE:

Sr No	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10281925	16/08/2012 *	76,000,000.00	DEVELOPMENT CREDIT BANK LIMITED	601 and 602, Peninsula Business Park, 6th floor, Tower A, Senapati Bapat Marg, Lower Parel, Mumbai,Maharashtra - 400013, INDIA	B56014384
2	10155531	31/05/2011 *	90,000,000.00	CITIBANK N.A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, Maharashtra - 400051, INDIA	B15919301
3	10008489	31/05/2011 *	60,000,000.00	CITIBANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, Maharashtra - 400051, INDIA	B14614150

* Date of modification charge

FINANCIAL RESULTS:-

The company earned a net profit before Taxation Rs. 9.083 Millions as compared to previous years Rs. 12.979 Millions

FINACIAL HIGHLIGHTST

During the year the turnover increased by 36.69 % to 362.900 Millions from 265.500 Millions in the previous year. Profit before tax for the year 2011-12 is decreased by 30 % to Rs. 9.100 Millions as against Rs. 13.000 Millions during the year 2010-2011. During the global economy is not good mainly due to problem in European countries and for that uncertainty in global economy and suddenly fluctuating in currency to affect profit margin of the company. During the year company incurred capital expenditure of Rs. 17.500 Millions to enhance production capacity in unit no. III. For that reason also increase in finance cost and depreciation and effect profitability of the company. The earnings per share (EPS) for the year 2011-12 is Rs. 250 as against Rs. 357 for the year 2010-11.

FIXED ASSETS:

• Factory Building
• Office Building
• Furniture and Fixture
• Plant and Machinery
• Electrical Equipment
• Laboratory Equipment
• Motor Car
• Office Equipment
• Air Conditioner
• Factory Equipment
• Computer

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. 61.16
UK Pound	1	Rs. 97.77
Euro	1	Rs. 82.78

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.