MIRA INFORM REPORT

Report Date :

13.12.2013

IDENTIFICATION DETAILS

Name :	AVO CARBON INDIA PRIVATE LIMITED (w.e.f. 08.03.2010)
Formerly Known as :	CARBONE LARRAINE MADRAS PRIVATE LIMITED (w.e.f. 08.03.2000) MADRAS CARBONS BRUSHES PRIVATE LIMITED
Registered Office :	25/A2, Dairy Plant Road, SIDCO Industrial Estate, Ambattur, Chennai – 600098, Tamilnadu
Country :	India
Financials (as on) :	31.12.2012
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 :	Manufacturing of Carbon Brushes and Brush Assemblies.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 2240000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Management of the company has failed to file its latest financials of 2013 with government department. As per financials of 2012, Reserves of the company appears to be low. However, networth of the company appears to be strong. Company is operating on its owned funds. Trade relations reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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. Bino Joshab
Designation :	Finance Manager
Contact No.:	91-44-26246119
Date :	10.12.2013

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/ 26258959
E-Mail :	info.india@avocarbon.com suresh.rajagopalan@avocarbon.com vincent.tl@avocarbon.com
Website :	www.avocarbon.com

DIRECTORS

As on 28.06.2013

Name :

Mr. Suresh Rajagopalan

Designation :

Director

Address :

Old No.12, New No.29, Sarangapani Street, T. Nagar, Chennai – 600017, Tamilnadu, India

Qualification :

B Tech Mech. PGDBM

Date of Appointment :

29.09.2007

PAN No.:

AACPS3918H

DIN No.:

00174905

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	U31908KA1984PTC006522	SCI CARBON BRUSHES PRIVATE LIMITED	Director	01-10-04	01-10-04	01-10-07	Active	NO
2	U24299TN1998PTC079127	AVO CARBON INDIA PRIVATE LIMITED	Director	29-09-07	01-09-07	-	Active	NO

Name :

Mr. Ravichandran Vedagiri

Designation :

Additional director

Address :

15/21, New No.28, Canal Road, Thiruvanmiyur, Chennai – 600041, Tamilnadu, India

Date of Appointment :

01.12.2009

PAN No.:

AABPR1454L

DIN No.:

02893535

Name :

Mr. Olivier Spicker Jean

Designation :

Director

Address :

11, Rue De Eglise, Fricamps 80290, France

Date of Appointment :

30.06.2009

DIN No.:

02631952

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	U24299TN1998PTC079127	AVO CARBON INDIA PRIVATE LIMITED	Director	30-06-09	30-04-09	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Bino Joshab
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.06.2013

Names of Shareholders	No. of Shares
AVO Carbon USA Inc	1000000
AVO Carbon Boldin LLC	51633116
Total	52633116

As on 28.06.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
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 :

Manufacturing of Carbon Brushes and Brush Assemblies.

Products :

Item Code No. (ITC Code)	Product Description
28030000	Carbon Brush
28030000	Carbon Brush Sub Assembly

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Credit Lyonnais, Dr. Radhakrishna Salai, Chennai – 600004, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	Flat No 1, Spa Mount, 99 L D G Road, Little Mount, Chennai – 600015, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAIFB7357B
Holding company :	AVO Carbon Holdings, LLC, United States
Fellow Subsidiary Company :	· AVO Carbon Kunshan AVO Carbon Mexico AVO Carbon Inc. AVO Carbon Luxembourg Holdings SARL AVO Carbon Germany, GMBH AVO Carbon France AVO Carbon Tianjin Company Limited AVO Carbon Korea Company Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Presmec Madhu Industrial Corporation

CAPITAL STRUCTURE

As on 31.12.2012

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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	526.331	526.331
(b) Reserves & Surplus	34.282	(26.095)
(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)	560.613	500.236
(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	0.120	0.420
(d) long-term provisions	11.761	12.648
Total Non-current Liabilities (3)	11.881	13.068
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	67.250	74.146
(c) Other current liabilities	9.812	11.594
(d) Short-term provisions	3.949	6.442
Total Current Liabilities (4)	81.011	92.182
TOTAL	653.505	605.486
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	51.514	71.618
(ii) Intangible Assets	5.333	8.408
(iii) Capital work-in-progress	15.904	9.429
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	74.325	0.000
(c) Deferred tax assets (net)	21.662	14.055
(d) Long-term Loan and Advances	41.752	51.373
(e) Other Non-current assets	10.000	2.000
Total Non-Current Assets	220.490	156.883
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	132.201	129.901
(c) Trade receivables	121.613	138.041
(d) Cash and cash equivalents	112.030	84.772
(e) Short-term loans and advances	65.585	94.373
(f) Other current assets	1.586	1.516
Total Current Assets	433.015	448.603
TOTAL	653.505	605.486

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		526.331
2] Share Application Money		0.000
3] Reserves & Surplus		6.932
4] (Accumulated Losses)		(81.768)
NETWORTH		451.495
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		451.495
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.691
Capital work-in-progress		17.500
INVESTMENT		0.000
DEFERRED TAX ASSETS		4.961
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	156.237
	Sundry Debtors	120.529
	Cash & Bank Balances	49.460
	Other Current Assets	0.000
	Loans & Advances	112.406
Total Current Assets		438.632
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	74.864
	Other Current Liabilities	0.951
	Provisions	10.474
Total Current Liabilities		86.289
Net Current Assets		352.343
MISCELLANEOUS EXPENSES		0.000
TOTAL		451.495

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Income			574.875
		Other Income			NA
		TOTAL			NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX				NA
Less	TAX				NA
	PROFIT/ (LOSS) AFTER TAX		60.377	52.411	50.583
	EARNINGS IN FOREIGN CURRENCY
		Reimbursement of Expenses			6.475
		Sale of Goods			194.969
	TOTAL EARNINGS		270.891	233.240	201.444
	IMPORTS
		Raw Materials			248.810
		Consumables			0.000
		Capital Goods			6.798
	TOTAL IMPORTS		NA	NA	255.608
	Earnings / (Loss) Per Share (Rs.)		1.15	1.00	0.97

KEY RATIOS

PARTICULARS	31.12.2012	31.12.2011	31.12.2010
Debt Equity Ratio (Total Debt/Networth)	0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)	5.35	4.87	5.08

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last one year	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	No
20]	Export / Import details (if applicable)	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CHANGE OF ADDRESS

The Registered office of the company has been shifted from 98/5, Wheeler Road, Cooke Town, Bangalore – 560084, Karnataka, India to the present address w.e.f. 01.12.2010.

BACKGROUND

Subject is 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.

FIXED ASSETS

v Tangible Assets

Plant and equipment

Other Plant and Equipment

Furniture and Fixtures

Office Equipment

Computer Equipments

Other Equipments

Leasehold Improvements

v Intangible assets

Goodwill

Computer 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 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.61.62
UK Pound	1	Rs.100.84
Euro	1	Rs.84.98

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

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
--PROFITABILIRY	1~10	4
--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	NO
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.