Amey, with what you get for fuel in India I would guess you have an oil problem more then a rust problem as Jester stated. I don't have a new OS on hand and haven't worked on the 110 yet so really know nothing about that engine. The .91 and older 1.20s I have worked on a lot.
To give you an idea of how bad an oil problem can be, I had my favorite YS 1.10 in a new plane just a couple months ago. When I went to start it there was zero compression? When I opened the rocker arm cover I discovered the exhaust valve was stuck open. I could pull it closed but that was very hard. That made me think the valve stem was gunked up and sticking. I pulled the valve and cleaned it up, it really wasn't that bad and when I was testing the fit it would still stick? Seems the valve guide was full of old hardened oil? I had to use the paper stem of a Q-Tip and steel wool attached to a drill to remove the built up crud.
The reason for this crud was the fuel I use started using less oil so I was adding 2 ounces of Klotz blended oil to every gallon of fuel. That has 20% Castor oil in the blend. I had pulled this engine and stored it for almost a year and that Castor dried up and was keeping the valve from moving.
Something as simple as that can cause a huge problem. Now I am just adding 1 ounce of Red Line full synthetic two stroke oil to my fuel, no more Castor.
The oil problem just came up from a guy here on RCU that is in India at the moment, he has been having problems locating any of the good name brands of anything there and with what he is able to find is having no end of trouble with his engines.
I tried soaking my engine in fuel and I used alcohol and Acetone trying to remove the crud from that valve guide but nothing worked except using the arm of the Q-Tip and steel wool. Removing the valves is a real thrill but getting those little two part keepers back in is no fun at all. Took me an hour to get the second half back in!!
Try to get some good fuel for your engines and I bet you won't be having these kinds of problems.