MIRA INFORM REPORT

Report No. :	309705
Report Date :	27.02.2015

IDENTIFICATION DETAILS

Name :	MERSEN INDIA PRIVATE LIMITED (w.e.f. 03.11.2010)
Formerly Known As :	CARBONE LORRAINE INDIA PRIVATE LIMITED
Registered Office :	No. 5 Bommasandra Industrial Area, Bangalore – 560099, Karnataka
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	18.01.1995
Com. Reg. No.:	08-016996
Capital Investment / Paid-up Capital :	Rs. 42.966 Millions
CIN No.: [Company Identification No.]	U14294KA1995PTC016996
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BLRE00571E
PAN No.: [Permanent Account No.]	AAACE3191K
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacturing of Carbon Brushes, Carbon Blocks, Fuses and Heat Exchangers.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Mersen SA, France. It is an established company having satisfactory track. The company has achieved marginal growth in its sales turnover during FY2013, but there is a drastic dip in the net profitability of the company. As per director’s report, the company’s performance was affected due to rupee depreciation. However, general financial of the company seems satisfactory. Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. In the view of good support from its parent company, subject 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.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Not Available

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 DENIED BY

Name :	Mr. Martin
Designation :	Finance Head
Contact No.:	91-9740066267
Date :	25.02.2015

LOCATIONS

Registered Office :	No. 5 Bommasandra Industrial Area, Bangalore – 560099, Karnataka, India
Tel. No.:	91-80-50822368 / 30946108
Fax No.:	91-80-30946120 / 30946108
E-Mail :	s.sathish@mersen.com
Factory :	Located At : Bangalore Chennai

DIRECTORS

AS ON 30.06.2014

Name :

Mr. Perumal I. V

Designation :

Managing director

Address :

#19, D’costa Squarte St. Thomas Town, P.O. Bangalore – 560084, Karnataka, India

Date of Birth/Age :

22.09.1945

Date of Appointment :

15.07.2005

DIN No.:

00187894

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	U85110KA1963PTC001482	ORIENTAL RUBBER TRADING COMPANY (MYSORE) PRIVATE LIMITED	Director	23/05/1994	23/05/1994	-	Active	NO
2	U14294KA1995PTC016996	Mersen India Private Limited	Managing director	15/07/2005	15/07/2005	-	Active	NO
3	U24299TN1998PTC079127	AVO Carbon India Private Limited	Managing director	01/01/2007	01/01/2007	30/04/2009	Active	NO
4	U31908KA1984PTC006522	SCI CARBON BRUSHES PRIVATE LIMITED	Director	30/09/2011	01/12/2010	-	Active	NO
5	U74999KA2011PTC058665	MERSEN SHARED SERVICES PRIVATE LIMITED	Director	16/05/2011	16/05/2011	-	Strike off	NO
6	AAB-5202	INDMARK TRADING SERVICES LLP	Designated Partner	13/05/2013	13/05/2013	-	Active	NO

Name :

Mr. Satish S. V

Designation :

Director

Address :

53/1, East Mada Street, Villivakkam, Chennai – 600049, Tamil Nadu, India

Date of Birth/Age :

20.03.1974

Date of Appointment :

30.06.2011

DIN No.:

02690960

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	30/09/2009	15/05/2009	-	Active	NO
2	U14294KA1995PTC016996	Mersen India Private Limited	Director	30/06/2011	16/03/2011	-	Active	NO
3	U74999KA2011PTC058665	MERSEN SHARED SERVICES PRIVATE LIMITED	Director	16/05/2011	16/05/2011	-	Strike off	NO

Name :

Mr. Hemanthkumar C

Designation :

Director

Address :

104, Vars Clara, Mount Cv Raman Nagar, Bangalore – 560093, Karnataka, India

Date of Birth/Age :

26.09.1964

Date of Appointment :

30.06.2011

DIN No.:

03432873

Name :

Mr. Velsamy Pulasamy

Designation :

Director

Address :

8/1, Bharathi Street, Mogappair, Chennai – 600037, Karnataka, India

Date of Birth/Age :

15.06.1966

Date of Appointment :

30.06.2011

DIN No.:

03432893

Name :

Mr. Ranga Rao Naidu

Designation :

Director

Address :

31, 3rd Cross, Victoria Layout, Bangalore – 560047, Karnataka, India

Date of Birth/Age :

05.05.1956

Date of Appointment :

30.06.2011

DIN No.:

03432887

Name :

Mr. Muller Didier

Designation :

Director

Address :

596, Anderson AV. Closter NJ – 076243202, USA

Date of Birth/Age :

26.06.1958

Date of Appointment :

30.06.2011

DIN No.:

05177556

KEY EXECUTIVES

Name :	Mr. Martin
Designation :	Finance Head

MAJOR SHAREHOLDERS

As on 30.06.2014

Names of Shareholders	No. of Shares
Mersen Mauritius	1
Mersen Sa France	429661
Total	429662

As on 30.06.2014

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 :	Subject is engaged in manufacturing of Carbon Brushes, Carbon Blocks, Fuses and Heat Exchangers.
Products :	Carbon Brushes Carbon Blocks Fuses Heat Exchangers.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS : Not Available

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Banker Name	Not Divulged
Branch Address	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 Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	AACFD3771D
Memberships :	Not Available
Collaborators :	Not Available
Fellow Subsidiaries with whom the company had transactions in the current year :	Mersen Istanbul Sanayi Merson (Chonqing) Company Limited Mersen France Amiens S A S Mersen Oceania PTY Limited Mesen Benelus BV Mersen France Gennevilliers S A S Corbone Lorraine Compostants Mersen Corporate Service SAS Mersen France PY SAS Mersen USA Midland MI Inc. Mersen Italia S.P.A. Mersen Korea Company Limited Mersen Canada DN Ltee Limited Mersen do Brazil, Lida Mersen Dueutschland FFM Mersen France SB SAS Merson Canada Toronto Inc. Merson Osterreich Hittisau Ges. M.B.H. Mersen Argentina, S A Mersen USA Newburyport M.A LLC Merson UK Portslade Limited Mersen South Africa Pty Limited Merson Kunshan Company Limited Zhejiang Mingrong Electrical Protection Company Mersen USA BN Corpn – Boonton Mersen USA BN Corp – Salem Mersen USA St Marys-PA Corp Mersen Scotland Holytown Limited SCI Carbone Brushes Limited
Holding Company:	Mersen SA, France

CAPITAL STRUCTURE

As on 30.06.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
429662	Equity Shares	Rs.100/- each	Rs.42.966 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	42.966	42.966	32.106
(b) Reserves & Surplus	388.368	381.459	258.973
(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)	431.334	424.425	291.079
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	6.881	7.205	6.540
(c) Other long term liabilities	9.290	3.352	4.258
(d) long-term provisions	15.592	11.378	6.537
Total Non-current Liabilities (3)	31.763	21.935	17.335
(4) Current Liabilities
(a) Short term borrowings	261.956	202.362	230.610
(b) Trade payables	230.402	172.647	219.581
(c) Other current liabilities	40.122	22.949	22.020
(d) Short-term provisions	7.584	10.201	6.793
Total Current Liabilities (4)	540.064	408.159	479.004
TOTAL	1003.161	854.519	787.418
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	318.934	321.909	276.136
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	89.878	26.013	42.353
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.024	0.024	0.024
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	73.503	28.688	8.945
(e) Other Non-current assets	1.046	0.978	0.978
Total Non-Current Assets	483.385	377.612	328.436
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	252.211	226.651	249.697
(c) Trade receivables	219.926	206.810	165.715
(d) Cash and cash equivalents	9.453	3.608	0.977
(e) Short-term loans and advances	38.050	39.699	42.082
(f) Other current assets	0.136	0.139	0.511
Total Current Assets	519.776	476.907	458.982
TOTAL	1003.161	854.519	787.418

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2013	31.12.2012	31.12.2011
	SALES
	Income	907.419	831.017	641.698 (Gross Income)
	Other Income	0.668	0.308
	Unallocated Income	0.000	(-1.430)
	TOTAL (A)	908.087	829.895	641.698
Less	TOTAL EXPENSES (B)	833.170	718.750	0.000
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	74.917	111.145	87.271
Less	FINANCIAL EXPENSES (D)	24.228	22.992	26.956
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	50.689	88.153	60.315
Less/ Add	DEPRECIATION/ AMORTISATION (F)	39.905	33.364	30.686
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	10.784	54.789	29.629
Less	TAX (H)	3.876	17.773	10.663
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	6.908	37.016	18.966
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (J)	177.064	140.048	121.082
	Balance Carried to the B/S (I+J)	183.972	177.064	140.048
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	0.000	111.283
	Sales of goods	149.470	127.302	0.000
	Service Income	7.288	6.766	12.759
	Commission	6.922	7.906	5.704
	TOTAL EARNINGS	163.680	141.974	129.746
	IMPORTS
	Raw Materials	340.871	540.605	169.629
	Travel and others	0.000	0.000	5.612
	Capital Goods / Machinery spares	32.293	37.557	19.276
	TOTAL IMPORTS	373.164	578.162	194.517
	Earnings / (Loss) Per Share (Rs.)	16.08	98.81	59.07

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
Net Profit Margin (PAT/ Sales)	(%)	0.76	4.45	NA
Operating Profit Margin (PBDIT/Sales)	(%)	8.26	13.37	13.60
Return on Total Assets (PBT/Total Assets}	(%)	1.18	6.61	3.98
Return on Investment (ROI) (PBT/Networth)		0.03	0.13	0.10
Debt Equity Ratio (Total Debt /Networth)		0.61	0.48	0.79
Current Ratio (Current Asset/Current Liability)		0.96	1.17	0.96

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	32.106	42.966	42.966
Reserves & Surplus	258.973	381.459	388.368
Net worth	291.079	424.425	431.334
long-term borrowings	0.000	0.000	0.000
Short term borrowings	230.610	202.362	261.956
Total borrowings	230.610	202.362	261.956
Debt/Equity ratio	0.792	0.477	0.607

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	831.017	907.419
		9.194

NET PROFIT MARGIN

Net Profit Margin	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)
Gross	831.017	907.419
Profit	37.016	6.908
	4.45%	0.76%

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	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	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	No
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

UNSECURED LOANS

PARTICULAR	31.12.2013 (Rs. in Millions)	31.12.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
From Banks
Working Capital Demand Loan	261.956	194.199
Pre-shipment Credit	0.000	8.163
Total	261.956	202.362

INDEX OF CHARGES: No Charges Exist for Company

CONTINGENT LIABILITIES:

PARTICULARS	31.12.2013 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
Disputed demand under VAT laws	1.401	2.817
Disputed demand under the income Tax Act	10.002	8.713
Disputed demands under the Central Excise Act/Service tax	0.672	0.642
Disputed demand under the Karnataka Tax on Entry of Goods Act, 1979	0.282	0.000
Total	12.357	12.172

FIXED ASSETS

• Freehold Land
• Leasehold Improvement
• Building
• Plant and machinery
• Tools and accessories
• Electrical Installation
• Compute Office equipment
• Furniture and Fixture

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. 61.94
UK Pound	1	Rs. 96.24
Euro	1	Rs. 70.39

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUM
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	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		41

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.