MIRA INFORM REPORT

 

 

Report Date :

16.03.2012

 

IDENTIFICATION DETAILS

 

Name :

AVO CARBON INDIA PRIVATE LIMITED (w.e.f. 08.03.2010)

 

 

Formerly Known as :

CARBONE LARRAINE MADRAS PRIVATE LIMITED

 

 

Registered Office :

25/A2, Dairy Plant Road, SIDCO Industrial Estate, Ambattur, Chennai - 600098

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

07.01.1998

 

 

Com. Reg. No.:

18-079127

 

 

Capital Investment / Paid-up Capital :

Rs.526.331 Millions

 

 

CIN No.:

[Company Identification No.]

U24299TN1998PTC079127

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEM02422A

 

 

PAN No.:

[Permanent Account No.]

AABCM8697F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of carbon brushes and brush card assemblies.

 

 

No. of Employees :

Not Available

 

 

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

 

Maximum Credit Limit :

USD 1800000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of AVO Carbon Holdings, LLC, France. It is an established company having satisfactory track. There appears some accumulated losses recorded by the company. However, Networth appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

In view of strong holding, the company can be considered normal 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office :

25/A2, Dairy Plant Road, SIDCO Industrial Estate, Ambattur, Chennai – 600098, Tamilnadu, India

Tel. No.:

91-44-26246119/ 42926501/ 42926502

Fax No.:

91-44-42926575

E-Mail :

info.india@avocarbon.com

suresh.rajagopalan@avocarbon.com

vincent.tl@avocarbon.com

Website :

www.avocarbon.com

 

 

DIRECTORS

 

As on 30.06.2011

 

Name :

Mr. Suresh Rajagopalan

Designation :

Director

Date of Appointment :

29.09.2007

DIN No.:

00174905

Other Directorship :

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U31908KA1984PTC006522

SCI CARBON BRUSHES PRIVATE LIMITED

Director

1/10/2004

1/10/2004

1/10/2007

Active

NO

2

U24299TN1998PTC079127

AVO CARBON INDIA PRIVATE LIMITED

Director

29/09/2007

1/09/2007

-

Active

NO

 

 

Name :

Mr. Ravichandran Vedagiri

Designation :

Additional director

Date of Appointment :

01.12.2009

DIN No.:

02893535

 

 

Name :

Mr. Olivier Spicker Jean

Designation :

Director

Date of Appointment :

30.04.2009

DIN No.:

02631952

Other Directorship :

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U24299TN1998PTC079127

AVO CARBON INDIA PRIVATE LIMITED

Director

30/06/2009

30/04/2009

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2011

 

Names of Shareholders

 

No. of Shares

AVO Carbon USA Inc

 

100000

AVO Carbon Boldin LLC

 

51633116

 

 

Equity Share Break up (Percentage of Total Equity)

As on 30.06.2011

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of carbon brushes and brush card assemblies.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Credit Lyonnais, Dr. Radhakrishna Salai, Chennai – 600004, Tamilnadu, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Associates

Chartered Accountants

Address :

10, Mahatma Gandhi Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

PAN.:

AQZPB1684Q

 

 

Holding Company :

Carbone Larraine Applications Electriques – Amiens (previously Le Carbone Lorraine S.A) (upto 30 April 2009)

AVO Carbon Holdings, LLC (from 01 May 2009)

 

 

Fellow Subsidiary Company :

(upto 30 April 2009)

Carbone Lorraine KK – Japan

Carbone Lorraine France

Carbone Kirkwood LLC

Deutsche Carbone – Germany

Carbone Lorraine Corporate Services

Carbone of America

Carbone Lorraine Mexico

Carbone Lorraine Korea

Carbone Lorraine India Private Limited

 

(Since 01 May 2009)

AVO Carbon Kunshan

AVO Carbon Mexico

AVO Carbon Inc. (USA)

AVO Carbon Luxembourg Holdings SARL

AVO Carbon Germany, GMBH

AVO Carbon France

AVO Carbon Tianjin

 

 

CAPITAL STRUCTURE

 

As on 31.12.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

56000000

Equity Shares

Rs.10/- each

Rs.560.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

52633116

Equity Shares

Rs.10/- each

Rs.526.331 Millions

 

 

 

 

 

Notes:

 

1.       The entire above capital of the company is held by the holding company AVO Carbon Holdings, LLC together with its subsidiary AVO Carbon Inc (USA)

2.       On May 1, 2009, the entire shares of the company held by Carbone Lorraine Applications Electriques – Amines (previously Le Carbone Lorraine S.A) and its subsidiary were transferred to AVO Carbon Holdings, LLC and its subsidiary.

3.       Of the above 729630 equity shares have been allotted as fully paid pursuant to a contract without payment being received in cash.

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2010

31.12.2009

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

526.331

526.331

20.408

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

6.932

6.932

6.932

4] (Accumulated Losses)

(82.768)

(132.872)

(82.171)

NETWORTH

450.495

400.391

(54.831)

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

15.240

2] Unsecured Loans

0.000

0.000

140.000

TOTAL BORROWING

0.000

0.000

155.240

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

450.495

400.391

100.409

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

76.691

95.253

82.890

Capital work-in-progress

17.500

0.613

18.188

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

4.961

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

156.237

90.125

174.898

 

Sundry Debtors

120.529

85.319

97.840

 

Cash & Bank Balances

49.460

64.890

2.478

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

112.406

92.345

88.362

Total Current Assets

438.632

332.679

363.578

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

75.864

25.144

351.637

 

Other Current Liabilities

0.951

0.977

10.965

 

Provisions

10.474

2.033

1.645

Total Current Liabilities

87.289

28.154

364.247

Net Current Assets

351.343

304.525

(0.669)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

450.495

400.391

100.409

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2010

31.12.2009

31.12.2008

 

 

 

 

 

 

TURNOVER

574.875

396.273

457.764

 

 

 

 

 

 

NET PROFIT/ LOSS

50.583

(50.583)

(145.946)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Reimbursement of Expenses

6.475

4.318

0.000

 

 

Sale of Goods

194.969

163.281

13.719

 

TOTAL EARNINGS

201.444

167.599

13.719

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

248.810

138.614

0.967

 

 

Consumables

0.000

0.056

3.763

 

 

Capital Goods

6.798

7.196

0.106

 

TOTAL IMPORTS

255.608

145.866

4.836

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.97

(1.41)

(71.06)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2010

31.12.2009

31.12.2008

Debt Equity Ratio

(Total Liability/Networth)

 

0.19

0.07

(6.64)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

5.03

11.82

0.99

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BACKGROUND

 

Subject a subsidiary of AVO Carbon Holdings, USA has an established market and a strong manufacturing base for carbon brushes and brush assemblies. AVO Carbon Holdings, LLC acquired Carbone Lorraine Madras Private Limited with, effect from 01 May, 2009 from Carbone Lorraine Group entities. The Company is a TS-16949 (an international standard aiming at the development of a quality management system) certified company catering to major auto electric motor manufacturers.

 

PERFORMANCE

 

During the year, the company's turnover has increased to Rs. 574.875 Million from Rs. 396.273 Million. The net profit for the current year is Rs. 50.583 Million, compared to net loss Rs. 50.583 Million in the previous year. The increase in profit on account of increase in productivity and prudent purchase on the whole the performance of the company during the current year was satisfactory.

 

PROSPECTS

 

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufactures of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to the recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around 3 million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.

 

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 ( an increase of 33.9 %), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicle on the nations roads.

 

A chunk of India's car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan head quarterd in the city and BMW having and assembly plant on the outskirts. Chennai accounts for 60 per cent of the country's automotive exports. Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahidra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having aseembly plants in the area. Ahmedabad with the Tata Nano Plant, Halol again with General Motors, Auragabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

 

CHANGE IN ADDRESS OF THE REGISTERED OFFICE

 

The Registered office of the company has been changed to 25 A2 Dairy Plant Road SIDCO Industrial Estate. Ambattur Chennai -98

 

 

FIXED ASSETS

 

·         Leasehold Improvements

·         Plant and Machinery

·         Computers

·         Furniture and Fittings

·         Office Equipments

·         Goodwill

·         Software

 


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 records 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.50.22

UK Pound

1

Rs.78.64

Euro

1

Rs.65.54

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

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.