MIRA INFORM REPORT

Report Date :

22.10.2013

IDENTIFICATION DETAILS

Name :	AVUDAI SURFACE TREATMENTS PRIVATE LIMITED (w.e.f. 25.05.2007)
Formerly Known As :	EVERCOATE CHEMICALS PRIVATE LIMITED
Registered Office :	31A/16, SIDCO Industrial Estate, Ambattur, Chennai – 600098, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
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 2600
Status :	Small Company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject was established as a proprietary 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 – 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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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 :	19.10.2013

LOCATIONS

Registered Office/ Factory :	31A/16, SIDCO Industrial Estate, Ambattur, Chennai – 600098, Tamilnadu, India
Tel. No.:	91-44-26154340
Fax No.:	Not Available
E-Mail :	info@avudai.com
Website :	http://www.avudai.com
Area :	1400 Sq. ft.
Location :	Rented
Corporate Office :	No. 10/389, SBOA School Road, Anna Nagar West Extension, Chennai – 600101, Tamilnadu, India
Tel. No.:	91-44-26154312/ 13/ 14
Fax No.:	91-44-26154314
Area :	1000 Sq. ft.
Location :	Rented

DIRECTORS

As on: 29.09.2012

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	Date of cessation	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	Date of cessation	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: 29.09.2012

Names of Shareholders	No. of Shares
Avudaiappan Erullappan	4750
Sathiya Bama Avudaiappan	250
Total	5000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
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 Sri Lanka Ø Oman Ø Middle -East
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers, Retailers, End Users and OEM’s
No. of Employees :	20 (Approximately)
Bankers :	ICICI Bank Limited Canara Bank
Facilities :	--

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: 31.03.2012

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	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.500	0.500
(b) Reserves & Surplus	0.165	0.129
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	0.665	0.629
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	3.463	4.993
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	3.463	4.993
TOTAL	4.128	5.622
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.088	0.104
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	0.088	0.104
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.300	0.116
(c) Trade receivables	3.450	4.995
(d) Cash and cash equivalents	0.156	0.348
(e) Short-term loans and advances	0.134	0.059
(f) Other current assets	0.000	0.000
Total Current Assets	4.040	5.518
TOTAL	4.128	5.622

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.500
2] Share Application Money		0.000
3] Reserves & Surplus		0.064
4] (Accumulated Losses)		0.000
NETWORTH		0.564
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		0.564
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.125
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.095
	Sundry Debtors	5.825
	Cash & Bank Balances	0.060
	Other Current Assets	0.000
	Loans & Advances	0.295
Total Current Assets		6.275
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	5.836
	Provisions	0.000
Total Current Liabilities		5.836
Net Current Assets		0.439
MISCELLANEOUS EXPENSES		0.000
TOTAL		0.564

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales/ Turnover	14.870	14.690	10.823
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	0.115	0.074
Less/ Add	DEPRECIATION/ AMORTISATION		NA	0.021	0.027
	PROFIT BEFORE TAX		0.052	0.094	0.047
Less	TAX		0.016	0.029	0.016
	PROFIT AFTER TAX		0.036	0.065	0.031
	Earnings Per Share (Rs.)		7.20	13.00	6.29

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	1.26	1.67	0.73
Return on Investment (ROI) (PBT/Networth)		0.08	0.15	0.08
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.17	1.11	1.08

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	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

FINANCIAL PERFORMANCE

The company has achieved a sales turnover of Rs.14.870 Millions as compared to Rs. 14.690 Millions during previous year and earned a profit before tax of Rs.0.052 Million as compared to Rs.0.094 Million during previous year. This fall in profit is attributed to increase in operational costs. The directors are taking effective steps to control the costs and with good orders on hand, the company is expected to have better performance in the coming years.

Note: No Charges Exist for Company

FIXED ASSETS

Tangible Asset

• Cell Phone
• Computer
• Fire Safety Equipments
• Furniture and Fittings
• Lab Equipments
• 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.61.49
UK Pound	1	Rs.99.41
Euro	1	Rs.84.12

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.