MIRA INFORM REPORT

Report Date :

22.02.2012

IDENTIFICATION DETAILS

Name :	BERICAP INDIA PRIVATE LIMITED
Formerly Known As :	BERI - ESSEL CLOSURES PRIVATE LIMITED
Registered Office :	Plot No. A-6, MIDC Talegaon, Taluka Maval, District Pune-410507, Maval, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	01.02.2001
Com. Reg. No.:	11-140929
Capital Investment / Paid-up Capital :	Rs.389.913 Millions
CIN No.: [Company Identification No.]	U25202PN2001PTC140929
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Plastic Closures and Dispensers.
No. of Employees :	70 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. Profitability of the company is under severe pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Subramanian
Designation :	Finance Manager
Contact No.:	91-2114-661100
Date :	17.02.2012

LOCATIONS

Registered Office/ Factory :	Plot No. A-6, MIDC Talegaon, Taluka Maval, District Pune-410507, Maval, Maharashtra, India
Tel. No.:	91-2114-661100
Fax No.:	91-2114-661101/02
E-Mail :	info.india@bericap.com subramanian.narayanan@bericap.com
Website :	www.bericap.com
Location :	Owned

DIRECTORS

As on 27.06.2011

Name :	Mr. Christian Kraukraemer
Designation :	Chairman cum Managing Director
Address :	Burghostr 1, Eltville, 65343, Germany
Date of Birth/Age :	01.11.1966
Date of Appointment :	14.03.2002
Din No.:	01689579
Name :	Mr. Guenter Jakob Krautkraemer
Designation :	Director
Address :	Gonsenheimer Str 15, Budenheim, 55257, Germany
Date of Birth/Age :	02.05.1939
Date of Appointment :	14.03.2002
Din No.:	01772741
Name :	Ebenezer Jeevahan
Designation :	Director
Address :	Flat No. 20, 42^nd Floor, Avasantgalaxy, Bangrurnagar, Goregaon (West), Mumbai-400090, Maharashtra, India
Date of Birth/Age :	26.4.1958
Date of Appointment :	27.10.2009
Din No.:	02817532

KEY EXECUTIVES

Name :	Mr. Subramanian
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.06.2011

Names of Shareholders	No. of Shares
Bericap Holding GmbH, Germany	50051279
Krautkramer Guenter, Germany	10
TOTAL	50051289

As on 27.06.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Plastic Closures and Dispensers.
Exports :
Products :	Plastic Closures and Dispensers
Countries :	· Srilanka
Imports :
Products :	Raw Materials
Countries :	· Korea · Europe
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS [AS ON 31.12.2010]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Closures * As Certified by the Management	Quantity (mio/pcs)	1000.00	998.30*	770.10

GENERAL INFORMATION

Suppliers :

· LG

· Samsung

Customers :

Wholesalers and Retailers

· Coca-Cola

No. of Employees :

70 [Approximately]

Bankers :

Deutsche Bank

Facilities :

Unsecured Loan	As on 31.12.2010 [Rs. in Millions]	As on 31.12.2009 [Rs. in Millions]
From Banks
Term Loan* * Guaranteed by Bericap Holding GmbH	56.050	74.916
Overdraft with Deutsche Bank	169.533	92.697
From Holding Company	32.145	35.987
Interest accrued and due	5.644	4.307
Total	263.372	207.907

Banking Relations :	--
Auditors :
Name :	JCR and Company Chartered Accountants
Address :	415-416, Ganga Collidium, Ganga Dham, Bibwewadi-Kondhva Road, Pune-411307, Maharashtra, India
Tel. No.:	91-20-24240012
Fax No.:	91-20-24240012
Pan No.:	AAAFK1518P
Holding Company:	Bericap Holding GmbH, Germany
Associates:	· Bericap GmbH and Company, Germany · Bericap BT Hungary · Bericap Do Brazil Limited · Bericap Polska-Poland · Bericap S.A., Spain · Bericap (Kunshan) Company Limited, China · Bericap UK Limited · Bericap Russia · Bekomold Szerszamgyarto Klt. Hungary

CAPITAL STRUCTURE

As on 27.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity Shares	Rs.10/- each	Rs.650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50051289	Equity Shares	Rs.10/- each	Rs.500.513 Millions

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38991289	Equity Shares	Rs.10/- each	Rs.389.913 Millions

NOTE: Out of the above 38991279 equity shares are held by Bericap Holding GmbH, the holding company.

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		389.913	389.913	271.463
2] Share Application Money		49.400	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(340.232)	(319.833)	(316.289)
NETWORTH		99.081	70.080	(44.826)
LOAN FUNDS
1] Secured Loans		0.000	0.000	4.417
2] Unsecured Loans		263.372	207.907	206.712
TOTAL BORROWING		263.372	207.907	211.129
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		362.453	277.987	166.303
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		250.557	257.921	264.671
Capital work-in-progress		5.779	0.289	21.199
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	126.499	88.219	61.610
	Sundry Debtors	36.259	35.934	41.387
	Cash & Bank Balances	3.288	2.074	0.218
	Other Current Assets	5.674	4.367	0.000
	Loans & Advances	51.686	57.121	48.245
Total Current Assets		223.406	187.715	151.460
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	108.411	163.526	265.685
	Provisions	8.878	4.412	5.342
Total Current Liabilities		117.289	167.938	271.027
Net Current Assets		106.117	19.777	(119.567)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		362.453	277.987	166.303

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Sales and Services	400.573	389.564	277.988
		Other Income	18.060	5.961	3.122
		TOTAL	418.633	395.525	281.110
Less	EXPENSES
		Office Expenses
		Administrative Expenses	402.549	363.389	345.024
		Advertising Expenses
		Financial Expenses
		TOTAL	402.549	363.389	345.024
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		16.084	32.136	(63.914)
Less/ Add	DEPRECIATION/ AMORTISATION		36.483	35.610	32.956
	PROFIT / (LOSS) BEFORE TAX		(20.399)	(3.474)	(96.870)
Less	TAX		0.000	0.069	0.584
	PROFIT / (LOSS) AFTER TAX		(20.399)	(3.543)	(97.454)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(319.832)	(316.289)	(218.835)
	BALANCE CARRIED TO THE B/S		(340.231)	(319.832)	(316.289)
	EARNINGS IN FOREIGN CURRENCY
		Closures	0.688	15.250
	TOTAL EARNINGS		0.688	15.250
	IMPORTS
		Raw Materials	212.468	161.047	NA
		Stores & Spares	6.616	4.742
		Traded Goods	2.691	3.744
		Capital Goods	17.730	22.996
	TOTAL IMPORTS		239.505	192.529
	Earnings / (Loss) Per Share (Rs.)		(0.52)	(0.13)	--

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	(4.87)	(0.90)	(34.67)
Net Profit Margin (PBT/Sales)	(%)	(5.09)	(0.89)	(34.85)
Return on Total Assets (PBT/Total Assets}	(%)	(4.30)	(0.78)	(23.28)
Return on Investment (ROI) (PBT/Networth)		(0.21)	(0.05)	2.16
Debt Equity Ratio (Total Liability/Networth)		3.84	5.36	(10.76)
Current Ratio (Current Asset/Current Liability)		1.90	1.12	0.55

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.12.2010 (Rs. in millions)	31.12.2009 (Rs. in millions)	31.12.2008 (Rs. in millions)
Sundry Creditors
For Goods/Capital Goods	94.968	148.720	236.456
For Expenses and Other Liabilities	13.443	14.806	29.229
Total	108.411	163.526	265.685

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

PERFORMANCE OF THE COMPANY:

During 2010, sale grew by only 3% year on year. this was mainly due to a lower than anticipated sales increase of Beverage Closures, as BCDS volumes of certain large franchisees of Coca-Cola did not materialize. Further, the off-take of Hotfill Closures by Coca-Cola their principal customers were lower than anticipated. The cost of materials in 2010 had increased substantially and this had an adverse impact on their margins which were already under severe strain due to price war by the competition in the closure industry. There was improvement in plant efficiency which helped in mitigating some of the impact of the volumes and margins drop.

Even though at the end of the year the company ended up with a loss, it still made a cash profit resulting into better liquidly.

During the year, Bericap Holdings GmbH, Germany the company’s holding company further increased its contribution to the equity share capital by remitting Rs.49.400 millions for the same. As at end of December 2010 this was lying as share application money pending allotment.

FUTURE PROSPECTS:

The outlook for 2011 is bright with the Indian economy continuing its upward march and which is expected to further stimulate consumer demand and therefore increase beverages and specialty closure sales. They are trying to build a strong business relationship with their principal customer Coca Cola by working closely for closure application solutions through offering of Super Shorty and Water Closure etc. Efforts are also being made to revive the earlier relationship with Pepsico and further strengthen their relationship with Parle Beverages.

The company has also decided to increase its sales in the Edible and Lubricating Oil Segment as also in the Pharma Medicines Segment.

The company has also decided to implement SAP ERP system in 2011 for better system and controls and this should help improve all round efficiency. The company has also decided to implement quality management system and intends to be ISO 9001-2008 certified by end of 2011.

However, on the negative side due to the increase in competition their margins will be under constant pressure. It is their intention to counter this by increasing the company’s market share with customers who will be able to deliver a higher margin and increase focus on market penetration and diversification.

TRADE REFERENCES:

· LG

· Samsung

· Coca-Cola

FIXED ASSETS:

· Leasehold Land

· Building at Talegaon

· Leasehold Improvements

· Plant and Machinery

· Furniture and Fixtures

· Computers

· Motor Vehicle

· Office Equipments

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.49.08
UK Pound	1	Rs.77.80
Euro	1	Rs.65.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		15

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.