MIRA INFORM REPORT

Report No. :	304964.2
Report Date :	25.03.2015

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) :	31.03.2014
Date of Incorporation :	11.03.2010
Com. Reg. No.:	11-200751
Capital Investment / Paid-up Capital :	Rs. 38.575 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, Fittings and Chemicals.
No. of Employees :	180 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s long track record of the promoters in the trading business backed by diversified product portfolio and sound financial base of the company. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities = BB
Rating Explanation	Inadequate degree of safety and high credit risk.
Date	07.11.2014

Rating Agency Name	CARE
Rating	Short term bank facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	07.11.2014

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Ravi Vishvakarma
Designation :	Account Manager
Contact No.:	91-22-65707816
Date :	24.01.2015

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, Daman and Diu (U.T.), India
Tel. No.:	91-260-2242296

DIRECTORS

AS ON 30.09.2014

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 :	M. Com
Date of Appointment :	11.03.2010
PAN No.:	ADCPC0005E
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 :	B. Com
Date of Appointment :	11.03.2010
PAN No.:	AKQPS3818J
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
PAN No.:	AFFPM7950P
DIN No.:	02988669

KEY EXECUTIVES

Name :	Mr. Ravi Vishvakarma
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Chaturvedi Surendra Arvind	352828
Solanki Sagarmal Milapchand	288458
Yedery Ramesh Kiran	100
Bhaliya Popatbhai Manish	100
Mehta Purshottamdas Ramesh	100
Mehta Purshottamdas Bharat	100
Bhaliya Popatbhai Jeevan	100
Chaturvedi Mahaveer Surendra	7872
Sharma Hariprasad Suman	16233
Mehta Champaklal Tapas	242531
Total	908422

Names of Preference Shareholder	No. of Shares
Hi-Speed Trading and Investment Private Limited, India	2949070
Total	2949070

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	97.29
Others	2.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of PVC Pipes, Fittings and Chemicals.

Products/ Services :

ITC Code No.	Product Descriptions
39173100	PVC Pipes

Brand Names :

--

Agencies Held :

--

Exports :

Products :

PVC Pipes, Fittings and Chemicals

Countries :

· Singapore

· China

· UAE

Imports :

Products :

Raw Materials

Countries :

· China

· Taiwan

· Mexico

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Formosa Plastic Corporation, Taiwan
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Stewmac Singapore
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

180 (Approximately)

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· State Bank of India

SME Goregaon Branch, 1st Floor, Kohinoor Industrial Estate, W.E. Highway, Goregaon [East], Mumbai - 400063, Maharashtra, India

Facilities :

Fund and Non Fund = Rs.750.000 Millions (From State Bank of India)

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks [Secured by way of hypothecation of fixed assets, stock, book debts along with personal guarantee of the promoter directors]	2.762	4.808
SHORT TERM BORROWINGS
Rupee term loans from banks	343.499	352.800
Total	346.261	357.608

Banking Relations :	--
Auditors :
Name :	ARV and Company Chartered Accountants
Address :	701, B-4, Lok Gaurav C.H.S. Limited, Near HCC, Vikroli [West], Mumbai – 400083, Maharashtra, India
Tel. No.:	91-22-20658787
E-Mail :	arv_co@yahoo.com
Income-tax PAN of auditor or auditor's firm :	AARFA1119K
Subsidiary Company :	· Avil FZE · Geoprop International Pte Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 Millions
3,000,000	Preference Shares	Rs. 10/- each	Rs. 30.000 Millions
	Total		Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
908,422	Equity Shares	Rs. 10/- each	Rs. 9.084 Millions
2,949,070	Preference Shares	Rs. 10/- each	Rs. 29.491 Millions
	Total		Rs. 38.575 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	38.575	9.084	9.084
(b) Reserves & Surplus	605.064	293.434	266.810
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	643.639	302.518	275.894
(3) Non-Current Liabilities
(a) Long-term borrowings	6.762	226.508	30.783
(b) Deferred tax liabilities (Net)	0.000	0.194	0.149
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	30.451	15.183	7.275
Total Non-current Liabilities (3)	37.213	241.885	38.207
(4) Current Liabilities
(a) Short term borrowings	343.499	352.800	63.812
(b) Trade payables	1210.520	1091.033	341.444
(c) Other current liabilities	27.729	0.376	6.703
(d) Short-term provisions	4.502	2.534	1.359
Total Current Liabilities (4)	1586.250	1446.743	413.318
TOTAL	2267.102	1991.146	727.419
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	63.623	29.364	15.036
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	6.918	4.510	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.500	2.000
(c) Deferred tax assets (net)	0.028	0.000	0.000
(d) Long-term Loan and Advances	4.113	11.463	10.321
(e) Other Non-current assets	0.083	0.130	4.119
Total Non-Current Assets	74.765	45.967	31.476
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	175.444	195.085	90.045
(c) Trade receivables	1713.174	1270.860	406.973
(d) Cash and cash equivalents	135.610	114.629	112.894
(e) Short-term loans and advances	168.109	364.605	86.031
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2192.337	1945.179	695.943
TOTAL	2267.102	1991.146	727.419

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	2544.565	2419.558	1930.839
		Other Income	12.042	13.942	5.819
		TOTAL (A)	2556.607	2433.500	1936.658
Less	EXPENSES
		Cost of Materials Consumed	76.815	53.654	1008.793
		Purchases of Stock-in-Trade	2265.714	2324.330	864.466
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	14.787	(110.797)	(30.188)
		Employees benefits expense	12.446	8.264	5.249
		Other expenses	67.622	40.274	22.464
		TOTAL (B)	2437.384	2315.725	1870.784
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		119.223	117.775	65.874
Less	FINANCIAL EXPENSES (D)		72.353	81.324	40.073
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		46.870	36.451	25.801
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.555	1.859	1.753
	PROFIT BEFORE TAX (E-F) (G)		44.315	34.592	24.048
Less	TAX (H)		20.692	6.967	4.423
	PROFIT AFTER TAX (G-H) (I)		23.623	27.625	19.625
	Earnings Per Share (Rs.)		6.12	30.41	191.07

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.93	1.14	1.02
Operating Profit Margin (PBDIT/Sales)	(%)	4.69	4.87	3.41
Return on Total Assets (PBT/Total Assets}	(%)	1.96	1.74	3.32
Return on Investment (ROI) (PBT/Networth)		0.07	0.11	0.09
Debt Equity Ratio (Total Debt/Networth)		0.54	1.91	0.34
Current Ratio (Current Asset/Current Liability)		1.38	1.34	1.68

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	9.084	9.084	38.575
Reserves & Surplus	266.810	293.434	605.064
Net worth	275.894	302.518	643.639
Long-term borrowings	30.783	226.508	6.762
Short term borrowings	63.812	352.800	343.499
Total borrowings	94.595	579.308	350.261
Debt/Equity ratio	0.343	1.915	0.544

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1930.839	2419.558	2544.565
		25.311	5.167

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1930.839	2419.558	2544.565
Profit	19.625	27.625	23.623
	1.02%	1.14%	0.93%

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	Yes
18]	Major customers	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10242225	11/11/2011 *	750,000,000.00	STATE BANK OF INDIA	SME GOREGAON BRANCH, 1ST FLOOR, KOHINOOR INDUSTRIAL ESTATE, W.E. HIGHWAY, GOREGAON-E, MUMBAI, MAHARASHTRA - 400063, INDIA	B25734963

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from others	4.000	221.700
Total	4.000	221.700

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.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Factory equipments

· Vehicles

· Furniture and fixtures

· Motor vehicles

· Office equipment

· Other equipments

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. 62.20
UK Pound	1	Rs. 92.93
Euro	1	Rs. 68.03

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	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		43

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.