MIRA INFORM REPORT

Report Date :

13.12.2012

IDENTIFICATION DETAILS

Name :	TIRUPATI INKS LIMITED
Registered Office :	101, DDA Market, Hargobind Enclave, Vikas Marg Extension, New Delhi – 110092
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.04.1984
Com. Reg. No.:	017904
Capital Investment / Paid-up Capital :	Rs.151.524 Millions
CIN No.: [Company Identification No.]	L67120DL1984PLC017904
TAN No.: [Tax Deduction & Collection Account No.]	DELT09724B
PAN No.: [Permanent Account No.]	AAACS2222F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing of Printing Inks such as Liquid Inks, Water-based Inks, Coating and Other Allied Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (38)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. It has established position in the inks segment, extensive industry experience of its management. However, the company’s liquidity is constrained on account of its working capital intensive nature of operations. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some cautions.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB
Rating Explanation	Moderate risk of default
Date	01.08.2012

Rating Agency Name	CRISIL
Rating	Short Term Rating: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	01.08.2012

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.

LOCATIONS

Registered Office :	101, DDA Market, Hargobind Enclave, Vikas Marg Extension, New Delhi – 110092, India
Tel. No.:	91-11-22379709
Fax No.:	91-11-22376767
E-Mail :	info@tirupatiinks.com contact@tirupatiinks.com
Website :	http://www.tirupatiinks.com
Corporate Office/ Factory 1:	D-109-112, Industrial Area GNEPIP Site V, Kasna Geater Noida – 201306, Uttar Pradesh, India
Tel. No.:	91-120-2341227
Fax No.:	91-120-2341229
Factory 2:	Lane No.4, Phase-2, Plot 267, SIDCO Industrial Complex, Bari Brahmana, Jammu – 181133, Jammu and Kashmir India
Tel. No.:	91-192-3220156
Fax No.:	91-192-3220110

DIRECTORS

(AS ON 31.03.2012)

Name :	Mr. Sanjiv Agarwal
Designation :	Executive Chairman and Managing Director
Name :	Mr. Rakesh Kumar Agarwal
Designation :	Whole Time Directors
Name :	Mrs. Rajni Maheshwari
Designation :	Whole Time Directors
Name :	Mr. Ram Shanker Agarwal
Designation :	Independent Directors
Name :	Mr. Ram Prakash Gupta
Designation :	Independent Directors
Name :	Mr. Keshav Behari Lall
Designation :	Independent Directors

KEY EXECUTIVES

Name :	Mr. Neeraj Nigam
Designation :	Chief Executive Officer
Mobile No.:	91-9540992724
Name :	Mr. Sanjeev Kumar
Designation :	Chief Operating Officer
Mobile No.:	91-9540992726
Name :	Mr. Rajiv Kapoor
Designation :	Chief Financial Officer
Name :	Ms. Garima Vishnoi
Designation :	Company Secretary and Compliance Officer
Audit Committee:	Mr. Ram Shanker Agarwal, Chairman Mr. Ram Prakash Gupta, Member Mr. Sanjiv Agarwal, Member
Investor Grievance Committee :	Mr. Ram Shanker Agarwal, Chairman Mr. Ram Prakash Gupta, Member Mr. Sanjiv Agarwal, Member
Remuneration Committee :	Mr. Ram Shanker Agarwal, Chairman Mr. Ram Prakash Gupta, Member Mr. Keshav Behari Lall, Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2012)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4078370	26.92
Sub Total	4078370	26.92
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4078370	26.92
(B) Public Shareholding
(1) Institutions	--	--
(2) Non-Institutions
Bodies Corporate	2229704	14.72
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	5861234	38.68
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	2082640	13.74
Any Others (Specify)	900422	5.94
Non Resident Indians	318356	2.10
Hindu Undivided Families	576265	3.80
Clearing Members	5801	0.04
Sub Total	11074000	73.08
Total Public shareholding (B)	11074000	73.08
Total (A)+(B)	15152370	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	15152370	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Printing Inks such as Liquid Inks, Water-based Inks, Coating and Other Allied Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank

· Oriental Bank of Commerce

· IDBI Bank Limited

· State Bank of Hyderabad

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans
- From Banks	0.849	1.243
Loan Repayable on Demand - From Bank	337.022	194.785
- From Other Parties	0.000	0.690
Current Liabilities of Long Term Debt (Due within a year)	1.606	2.500
Total	339.477	199.218
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans
- From Other Parties	0.076	2.438
Loans and Advance from Related Parties	0.000	4.065
Loan Repayable on Demand - From Other Parties	2.362	4.879
Total	2.438	11.382

Banking Relations :	--
Auditors :	Statutory Auditors Shashi Dinesh and Company Chartered Accountant Address: Kanpur, India Cost Auditor R. M. Bansal and Company Chartered Accountant Address: Kanpur, India
Enterprises in which substantial interest in the voting power is owned directly/indirectly by key management personnel or their relatives including directors and senior management of the company.	· Ramdeo Polysters Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
16000000	Equity Shares	Rs.10/- each	Rs.160.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15152370	Equity Shares	Rs.10/- each	Rs.151.524 Millions

NOTE:

The Company has only One Class of Equity Share having Par Value of Rs.10/- Per Share and Each Shareholder is eligible for One Vote Per Share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		151.524	151.524	31.756
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		471.261	443.548	40.557
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		622.785	595.072	72.313
LOAN FUNDS
1] Secured Loans		339.477	199.218	159.588
2] Unsecured Loans		2.438	11.382	41.535
TOTAL BORROWING		341.915	210.600	201.123
DEFERRED TAX LIABILITIES		6.131	2.778	3.099
TOTAL		970.831	808.450	276.535
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		206.264	44.382	33.226
Capital work-in-progress		140.987	141.436	0.573
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	382.253	193.657	141.467
	Sundry Debtors	499.140	404.117	168.474
	Cash & Bank Balances	35.317	49.546	14.464
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	78.454	91.030	4.458
Total Current Assets		995.164	738.350	328.863
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	346.748	98.390	74.763
	Other Current Liabilities	15.430	8.465	6.412
	Provisions	9.406	8.863	8.810
Total Current Liabilities		371.584	115.718	89.985
Net Current Assets		623.580	622.632	238.878
MISCELLANEOUS EXPENSES		0.000	0.000	3.858
TOTAL		970.831	808.450	276.535

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	1556.440	980.052	716.681
		Other Income	4.077	2.461	.0.941
		TOTAL (A)	1560.517	982.513	717.622
Less	EXPENSES
		Purchases/Consumption	1509.837	948.034	656.558
		Manufacturing Cost	12.645	11.738	17.452
		(Increase)/ Decrease in F.G., WIP and Stock in Trade	(79.212)	(66.162)	(34.687)
		Employee Benefit Expenses	11.060	8.062	0.000
		Other Expenses	14.053	13.163	12.584
		TOTAL (B)	1468.383	914.835	651.907
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.134	67.678	65.715
Less	FINANCIAL EXPENSES (D)		50.506	33.059	34.011
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.628	34.619	31.704
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.361	2.046	2.081
	PROFIT BEFORE TAX (E-F) (G)		39.267	32.573	29.623
Less	TAX (H)		11.554	7.250	8.081
	PROFIT AFTER TAX (G-H) (I)		27.713	25.323	21.542
	Add: Proposed Dividend W/back		NA	0.000	2.776
	Add: Proposed Dividend Tax W/back		NA	0.000	0.471
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	34.157	9.368
	BALANCE CARRIED TO THE B/S		NA	59.480	34.157
	EARNINGS IN FOREIGN CURRENCY
		FOB Value on Sales	40.492	28.534	NA
	TOTAL EARNINGS		40.492	28.534	NA
	IMPORTS
		Raw Materials	21.150	NA	NA
		Capital Goods	115.078	NA	NA
		Compound and Spares Parts	0.000	NA	NA
	TOTAL IMPORTS		136.228	NA	NA
	Earnings Per Share (Rs.)		1.83	2.73	7.25

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	487.390	512.920
Total Expenditure	459.220	476.100
PBIDT (Excl OI)	28.170	36.820
Other Income	1.300	0.930
Operating Profit	29.470	37.750
Interest	17.120	21.890
Exceptional Items	0.000	0.000
PBDT	12.350	15.860
Depreciation	2.250	3.540
Profit Before Tax	10.100	12.320
Tax	3.100	3.400
Provisions and contingencies	0.000	0.000
Profit After Tax	7.000	8.920
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	7.000	8.920

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.78	2.58	3.00
Net Profit Margin (PBT/Sales)	(%)	2.52	3.32	4.13
Return on Total Assets (PBT/Total Assets}	(%)	3.27	4.16	8.18
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.41
Debt Equity Ratio (Total Liability/Networth)		1.15	0.55	4.03
Current Ratio (Current Asset/Current Liability)		2.68	6.38	3.65

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	Yes

YEAR IN RETROSPECT

The company has registered all around progress during the year. The company is committed to make itself in international standards of quality, operational performance, efficiency and customer care. The highlights of their performance for the year 2011-12 are:

· The Gross Turnover of the company for financial year 2011-12 increased to Rs.1560.500 Millions as against Rs. 982.500 Millions. In the corresponding previous financial year, registering a growth of 59%.

· Net Profit has increased from Rs.25.300 Millions in the financial year 2010-11 to Rs.27.700 Millions in the financial year 2011-12 registering an increase of 9.49%.

· During the year, the company has been awarded the certificate of excellence and Ranked third amongst top 100 Indian corporate as listed in Inc India 500 awards, leading corporate magazine ‘Inc India’. The company is growing on consistent basis and has healthy plans for its expansion.

The Directors are putting in their best efforts to improve the performance of the Company. The operational performance of the Company has been comprehensively covered in the Management Discussion and Analysis Report.

The Greater Noida project of the company has commenced its operations in beginning of the last quarter of the financial year 2011-12. The Installed capacity of the new plant is 8400 MT p.a. on single shift basis.

They feel great in experiencing the trust and confidence reposed by their esteemed shareholders with an increased sense of responsibility, and assure them that we shall shoulder the same with utmost care and sense of accountability.

FUTURE PROSPECTS AND OUTLOOK OF THE COMPANY

The Global printing ink market of USD 14.5 billion is split evenly between North America, Europe and Asia-Pacific. While the North American and European sales have flattened out, the Asia-Pacific region continues to grow at a fast pace of about 8%, and should soon become the largest region in terms of ink consumption, driven by economic growth in China, India and other key countries.

The overall Indian economic stability in its user industries such as FMCG, media, flexible packaging and publishing. Printing Ink industry has witnessed an encouraging growth in domestic market during the year. The growth of the printing ink sector including that of rotogravure and flexographic inks has been very fast.

The demand for the printing ink has become the vital aspect in sustaining the market growth. A diversified customer base ensures a wide distribution for the Company’s products. Apart from direct sale of products to the customers, the company has also appointed distributors and consignee agents at different locations for product distribution. They have appointed new distributors in Lagos, Dubai and Srilanka for the international markets and in Uttaranchal for Indian markets.

INCORPORATION OF A WHOLLY OWNED SUBSIDARY AT DUBAI

The company has newly set up a Wholly Owned Subsidiary at Dubai, to capture the Middle East market. The name of the said subsidiary is “Tirupati Inks World Wide FZE”. The Wholly Owned Subsidiary shall be engaged in Trading of all kinds of Printing Inks and Sale and Purchase of Resins, Pigment and Dyes, Additives, Adhesives and various Chemical Solvents. The company expects to fuel up and maintain the healthy trend in the financial year 2012-13 on the diversified market for the products and growing strategies adopted.

MANAGEMENT DISCUSSION AND ANALAYSIS REPORT

Overview, Industry Structure and Developments

The Company is mainly engaged in the business of manufacturing of Printing Inks and Allied Products. They emphasize on providing complete coloring solutions to their customers and through them, to the society at large.

The fortunes of the printing ink industry are linked to the packaging industry and growth of which is at the consequence of economic growth of the country. New packaging materials with high barrier properties, higher strength, innovative aesthetics, better shelf life for packaged products, handling convenience and ease to use coupled with ever rising per capita income have given impetus to growth of packaged products consumption.

The demand for printing ink is expected to grow further, especially from publishing and packaging segment. The industry will be on a zooming track of growth within a short span of time. Flexible packaging has been one of the fastest growing sectors of the packaging market over the last decade having developed from simple wraps and bags to more complex products with sophisticated functionality. The flexible packaging has a promising future both in India and Globally due to increased consumerism, Asia taking a leading position in the world.

Ink is a highly technical product requiring utmost understanding of the chemistry and function of each ingredient of the ink composition. With dynamically changing requirements for packaging of varied products both for retail and bulk packaging, coupled with large volume of packaging materials produced on high speed machines with automatic controls, new complex ink formulations using latest inputs, both, raw materials and machines , have to be offered to convertors. The packaging industry growth of around rate of 15% tantamount to almost similar growth for the ink industry and this call for capacity expansion and modernization.

They are concentrating on adopting a strong marketing strategy to capture the market in following countries

Middle East: – Dubai, Iran, Oman, Jordan, Qatar, Slovakia, Turkey

Africa: – Nigeria, Egypt, Tanzania, Mozambique, Ghana, Kenya

Asia: – Srilanka, Nepal and Bangladesh.

And to cater to exacting and demanding requirements of customers in these countries and many other foreign ink consumption centers, a well organized modern manufacturing facility are in the process of getting set up in Dubai through a Wholly Owned Subsidiary of the company in UAE.

They have been arranging customers meet in various countries from time to time in order to have a direct interaction and bonding with the customers. A diversified customer base ensures a wide distribution for the Company’s products.

Apart from direct sale of products to the customers, the company has also appointed distributors and consignee agents at different locations for product distribution. They have appointed new distributors in Lagos, Dubai and Srilanka for the international markets.

They are adopting an aggressive marketing strategy for capturing share of the domestic market by appointing distributors in strategic locations viz: Gujarat (Ahmedabad), Tamil Nadu (Chennai), Andhra Pradesh (Hyderabad), UP (Mathura), Punjab (Ludhiana), Delhi (New Delhi), Maharashtra (Mumbai) and they are in the process of covering other locations from where the penetration into domestic market can be fastened.

INDIAN ECONOMY

In the recent times, the Indian Economy has suffered more acutely from global troubles, because it was already in a vulnerable position. The fiscal deficit has left policy makers with less headroom to stimulate domestic demand, the fact that fiscal expansion was led by consumption spending, and the structural deterioration in public finances because the stimulus is difficult to withdraw. The economy is rapidly losing momentum, and the growth rate has fallen for four quarters in a row. Economic growth in Q4 of fiscal 2012 was the lowest level in ten years.

The focus of the government on higher literacy level would further accelerate the demand of the publishing sector.

PACKAGING RAW MATERIALS - INKS AND ADHESIVES

The Asia-Pacific region has proved to be strongest for growth in the printing ink industries, as the growth of packaging and publishing in China, India, Vietnam and other nations is driving expansion. As a result, ink manufacturers enjoyed a strong 2011 in the region and 2012 is doing quite well.

Starting in the third quarter of 2011, the printing ink market increased, and especially so in Asia. The competition for the packaging ink market is getting much stronger, and price increases for raw materials did impact their business.

In Japan, sales were down due to declines sales of offset inks and news inks. This was exacerbated by paper shortages and procurement difficulties for certain raw materials, both of which were due to the Great East Japanese earthquake. Sales of packaging inks, however, remained at par.

In Southeast Asia, registered sales rose slightly as robust sales of packaging inks countered the decrease in sales of offset and news inks.

In India sales soared as they saw increased demand for all products and by far had the strongest growth this past year. India is actually continuing to enjoy growth in printing and ink manufacturers are sharing in that expansion.

The Indian Ink market is around USD 700 million. The Ink industry grew by around 8% to 9% primarily due to price increase affected in December 2010 and June 2011. The combined effect of these two price increases were around 8%.

The printing ink industry is committed to contribute its share to the food packaging supply chain aimed at enhancing consumer safety. It is a responsible industry with sustainable products the printing ink industry is fully aware of its responsibilities and recognizes the need for reducing the impact on the environment. The industry discharges its responsibilities in many ways. For example, it has a proven track record of using considerable amount of renewable raw materials. The industry has established an exclusion list for raw materials. Energy resources are used efficiently in the manufacturing of inks.

For increased qualitative and quantitative production, absorption of imported technology and its up gradation is essential. Manufacturers follow standard tests and procedures for proper quality inks. The use of eco-friendly inks reduces and controls pollution to a great extent. Research efforts in India, on this aspect, have just been initiated.

With increase in demand of flexible packaging material, due to shift in customer preference and opening up of organized retail, the demand for flexographic inks is increasing.

FLEXIBLE PACKAGING

Flexible packaging industry is the fastest growing segment of the packaging industry worldwide and growing about 5.5% to 6% annually. Asia is growing faster than North America and Western Europe and will emerge as the world’s largest regional flexible packaging market by 2013. The area will account for more than one-third of total demand. Over the last five years, all regions except Western Europe experienced growth ranging from around 4% per annum in North America to 9% in South-East Asia and Oceania as well as in Eastern Europe. China and India were the most dynamic markets, growing in value terms by around 12% and 17% respectively.

The strongest printing markets were packaging and publication. The thrust on packaging was due to the organized retail sector gaining ground and the better sense of hygiene among the growing literate population.

Increasing per capita income of the vast middle class population also fueled the demand for better packaged products. New investments in UV and digital presses were the hallmark of this year as these technologies, helped in giving value added products.

Due to the increase in the literacy rate, the publication industry also saw increased activities. The semi-urban and rural editions were launched by national dailes, and at the same time, major metro cities saw newer publications being printed to take a piece of pie of the growing market.

This growth shall continue as economists, have projected a growth of around 8% to 9% for the country in next two years. Beyond 2014, the economy is expected to grow in excess of 10%.

They believe packaging inks are the keys to growth as the standard of life in the country increased and awareness of food safety increases.

The ever improving performance of eco friendly alternative ink is making waves in the printing and packaging world. Covering water based and biodegradable inks and UV curing methods. Although packaging inks cover the full vivid spectrum of colour, there is one hue in particular which seems to be growing in importance for the printing and packaging industries: green.

Flexible packaging also offers the advantage of packing smaller quantities compared to traditional packaging and hence, middle class consumers, who comprise of a major section of the Indian society, have the choice of purchasing just the required products.

The flexible packaging market has excellent growth potential in the food and processed food, personal care, FMCG and retail sector. The demand for smaller packaging and increasing consumerism due to higher purchasing power has been a boon for the flexible packaging market. Packaging consumer products safely, conveniently, attractively and in eco-friendly packaging improves brand value which in turn increases market share. In the aggregate, packaging as sectoral activity boosts consumption and economic growth.

With the introduction of innovative and new products, Indian Flexible Packaging Industry will lead to faster growth at a rate of around 20% annually. With the advent of newer plastic films and new technologies, the industry will be looking at better quality of the products and thereby, increased sales volumes. In fact, the market is expected to multiply its output three times in the next few years owing to the greater demand from the food and processed food and retail segments.

With the expanding middle class and rising income levels, the patterns of consumption are bound to change substantially and the demand for quality and convenience-based products will increase. Concurrently, the increased interaction with the developed world will considerably influence the aesthetic and quality norms of the Indian consumer and lead to better consumption standards. This is expected to stimulate greater consumption of branded products and thus increase the use of flexible packaging. Flexible packaging contains multi-layered laminated sheets of single or a combination of substrates such as plastic, paper and aluminium. Flexible packaging finds preferred use because of its ability to provide strength, moisture resistance, aroma retention, gloss, grease resistance, heat retention, printability and low odour. Flexible packaging has gained vast acceptability because of the protection it offers to the product against environmental threats like moisture, heat, and chemical reaction. Convenience in handling the product and the cost benefits are added advantages.

BUSINESS REVIEW

FLEXIBLE PACKAGING BUSINESS

The main products of this business are laminates made with various combinations of Polyester, BOPP, poly, metalized and hologram films and others and supplied in roll form and in various pouches, manufacture of rotogravure cylinders for various types of rotogravure printing, Anilox/Coating, Rollers for flexo printing and Shims for holographic embossing and holograms and printing ink and adhesives and packaging and processing machines. This business involves customization according to the needs of customer. The company provides complete solutions to the packaging needs of customers.

Customization, the key element for value addition for the products, as always, expected to play the major role in the flexible packaging sector too. Subject is fully equipped to meet the market demands for the customized inks for customized flexible packaging materials, through its well developed and well equipped R&D Centre.

The Company has successfully developed several new packaging solutions for various applications suitable for Food Industry, the Bakery and Confectionery Industry, Beverage Industry and the Personal Care Products Industry.

The Company’s strategy for product innovation together with cost leadership and enhancing quality with better service has led to significant growth in sales.

The value added flexible packaging business of the Company has been progressively gaining larger share in the total revenue of the Company and growing at a faster pace both in the domestic and international market.

FUTURE OUTLOOK

The printing industry growth is linked to the GDP growth of the country. The demand for the printing ink has become the vital aspect in sustaining the market growth. The industry depends heavily on the prices of raw materials, crude oil. Moreover, the price volatility of these commodities has prompted the companies to opt for counter measures. The demand for printing ink is expected to grow further, especially from publishing and packaging segment. The industry will be on a zooming track of growth within a short span of time.

Flexible packaging has been one of the fastest growing sectors of the packaging market over the last decade having developed from simple wraps and bags to more complex products with sophisticated functionality. The flexible packaging has promising future both in India & globally due to increased consumerism, Asia taking a position in the world.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Generator

· Computer

· Office Equipment

· Furniture and Fixtures

· Weighing Scales

· Air Conditioner

· Fire Extinguishers

· Electric Installation

· Transformers

· Vehicles

WEBSITE DETAILS

Company Profile

Subject is the most established Printing Ink Manufacturers in India. They offer inks for all types of printing processes and methods. The inks are enabled for use in new-generation, upgraded printing machines.

The company has started its first unit at Kanpur (U P) in the year 1999 headed by very talented professionals. Through the years of growth, company has transformed itself into a multi-dimensional, multi- location company offering a comprehensive range of quality products, efficient customer service and a wide distribution network. In India, it is a marketing powerhouse with its branches, technical centers and distributors all over India.

The Company is equipped with modern and sophisticated Ink manufacturing equipments of different capacities per shift and is capable of producing different colours and different base inks simultaneously. The unit is equipped with adequate lab facility to take care of the quality. Since its inception, the Company has played a significant role in the progress of the Printing industry in India.

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.54.32
UK Pound	1	Rs.87.36
Euro	1	Rs.70.36

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		38

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.