MIRA INFORM REPORT

Report Date :

22.11.2012

IDENTIFICATION DETAILS

Name :	SIEGWERK INDIA PRIVATE LIMITED (w.e.f. 04.12.2007)

Formerly Known As :	PIBU INK (INDIA) PRIVATE LIMITED (w.e.f. 28.01.1998) GORFIL OVERSEAS PRIVATE LIMITED

Registered Office :	904A-904B, Vijaya Building, 17, Barakhamba Road, New Delhi – 110 001

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	28.10.1997

Com. Reg. No.:	55-084706

Capital Investment / Paid-up Capital :	Rs. 66.025 Millions

CIN No.: [Company Identification No.]	U74999DL1997PTC084706

TAN No.: [Tax Deduction & Collection Account No.]	DELP11827E

PAN No.: [Permanent Account No.]	AAACG4845N

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Supplier of Printing Ink.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING

STATUS

PROPOSED CREDIT LINE

56-70

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

Maximum Credit Limit :	USD 5400000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a part of well known Siegwerk, Germany. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company is fairing well. It can be considered good for any normal 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

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 :	904A-904B, Vijaya Building, 17, Barakhamba Road, New Delhi – 110 001, India
Tel. No.:	91-11-30489201
Fax No.:	91-11-30489210
E-Mail :	ho.india@siegwerk.com,
Website :	http://www.siegwerk.com

Factory:	7-8 KM Stone, Bhiwadi-Alwar Road, P. O. Khijuriwas – 301108, District Alwar, Rajasthan, India
Tel. No.:	91-1493-243081/84/86
Fax No.:	91-1493-243171/230917

Branches :	Located at: v Chennai v Ahmedabad v Noida v Bangalore v Hyderabad v Ludhiana v Kolkata v Mumbai v Okhla (New Delhi) v Baddi (Himachal Pradesh)

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Herbert Georg Forker

Designation :

Director

Address :

Buchenalle 9, Bergisch, Gladbach, Germany – 51427

Date of Birth/Age :

30.04.1957

Date of Appointment :

22.11.2007

DIN No.:

01894783

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	Company/ LLP Status	Defaulting status
1	U74999DL1997PTC084706	SIEGWERK INDIA PRIVATE LIMITED	Director	22/11/2007	15/10/2007	Active	NO

Name :

Mr. Oliver Wittmann

Designation :

Director

Address :

AM Sudpark 33, Koln, Germany - 50968

Date of Birth/Age :

01.03.1962

Date of Appointment :

22.11.2007

DIN No.:

01452434

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	Company/ LLP Status	Defaulting status
1	U74999MH2007PTC167183	MODERN INKS MANUFACTURING COMPANY PRIVATE LIMITED	Additional director	12/05/2007	12/05/2007	Strike off	NO
2	U74999DL1997PTC084706	SIEGWERK INDIA PRIVATE LIMITED	Director	22/11/2007	15/10/2007	Active	NO

Name :

Mr. Ralf Wolfgang Hildenbrand

Designation :

Director

Address :

No. 162, Emerald, No. 2888, Hunan Road, Pudong, Shanghai, China – 201315

Date of Birth/Age :

10.05.1963

Date of Appointment :

26.09.2009

DIN No.:

02679951

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	Company/ LLP Status	Defaulting status
1	U74999DL1997PTC084706	SIEGWERK INDIA PRIVATE LIMITED	Director	26/09/2009	10/06/2009	Active	NO

KEY EXECUTIVES

Name :	Mr. Vijay Kumar Gupta
Designation :	Manager
Address :	U-2, Green Park, New Delhi – 110016, Delhi, India
Date of Birth/Age :	02.05.1951
Date of Appointment :	01.05.2006
PAN No.:	AESPG1287P

Name :	Ms. Neelam Rustagi
Designation :	Secretary
Address :	1589, Sector – B, Pocket – 1, Vasant Kunj, New Delhi – 110070, Delhi, India
Date of Birth/Age :	16.02.1958
Date of Appointment :	01.01.2007
PAN No.:	AARPR0417M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders		No. of Shares
Siegwerk Alpha GMBH		75000
Siegwerk Druckfarben AG		65950000
Total		66025000

AS ON 30.09.2011

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
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Printing Ink.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Printing Ink	MT	10,000	8,218

* Licensed capacity is not applicable.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

UCO Bank, No. 23, Eastern Avenue, TNHB Colony

Facilities :

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other debt unsecured	0.116	14.460
Total	0.116	14.460
Note: Sales Tax Deferment Loans (Amount repayable within one year Rs. 0.116 Million


Banking Relations :	--

Auditors :
Name :	S V Ghatalia and Associates Chartered Accountants
Address :	Golf View Corporate Tower B, Sector 42 Sector Road, Gurgaon - 122002, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
Income-tax PAN of auditor or auditor's firm :	AALFS6921Q

Holding Company :	Siegwerk Druckfarban AG

Group companies where common control exists and with whom transactions have taken place during the year :	Siegwerk Druckfarban AG

Subsidiary Company :	Siegwerk India International GmbH

Fellow Subsidiary company:	v Siegwerk Switzerland AG v Siegwerk (Malaysia) SDN BHD v Siegwerk SA France v SDN BHD Siegwerk Shanghai Limited v Siegwerk Benelux N.V. v Siegwerk Backnang GmbH v PT Siegwerk Indonesia v Siegwerk Thailand Limited v Siegwerk Singapore Pte Limited v Siegwerk Shanghai Limited v Siegwerk ( Asia Pacific) Pte Limited v Siegwerk CHILE S.A v Siegwerk UK Limited v Siegwerk Spain S.A.U v Siegwerk Colombia

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

135,500,000	Equity Shares	Re. 1/- each	Rs. 135.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

66,025,000	Equity Shares	Re. 1/- each	Rs. 66.025 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		66.025	66.025	66.025
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1289.911	1017.198	775.097
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1355.936	1083.223	841.122
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.116	14.460	44.237
TOTAL BORROWING		0.116	14.460	44.237
DEFERRED TAX LIABILITIES		17.964	16.796	17.898

TOTAL		1374.016	1114.479	903.257

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		285.469	226.751	192.795
Capital work-in-progress		11.217	13.632	2.845

INVESTMENT		1.658	1.658	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	354.500	254.170	144.980
	Sundry Debtors	561.640	388.172	364.616
	Cash & Bank Balances	353.213	242.396	393.282
	Other Current Assets	3.993	0.884	0.000
	Loans & Advances	336.855	299.838	42.762
Total Current Assets		1610.201	1185.460	945.640
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	437.755	241.079	147.132
	Other Current Liabilities	77.813	52.398	65.416
	Provisions	18.961	19.552	25.483
Total Current Liabilities		534.529	313.029	238.031
Net Current Assets		1075.672	872.431	707.609

MISCELLANEOUS EXPENSES		0.000	0.007	0.008

TOTAL		1374.016	1114.479	903.257

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	GROSS TURNOVER		2263.437	1823.584	N.A.

	EXPENSES		N.A.	N.A.	N.A.

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		434.549	387.559	N.A.

Less/ Add	DEPRECIATION/ AMORTISATION		30.991	21.432	N.A.

	PROFIT BEFORE TAX		403.558	366.127	N.A.

Less	TAX		130.845	124.027	N.A.

	PROFIT AFTER TAX		272.713	242.100	N.A.

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		778.722	536.622	N.A.

	BALANCE CARRIED TO THE B/S		1051.435	778.722	N.A.

	EARNINGS IN FOREIGN CURRENCY
		Fob Value of Export	N.A.	93.670	22.078
	TOTAL EARNINGS		N.A.	93.670	22.078

	IMPORTS
		Raw Materials		460.801	349.401
		Stores & Spares		1.576	1.653
		Capital Goods		21.921	14.620
	TOTAL IMPORTS		N.A.	484.298	365.674

	Earnings Per Share (Rs.)		4.13	3.67	N.A.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	21.29	25.93	N.A.

Return on Investment (ROI) (PBT/Networth)		0.30	0.34	N.A.

Debt Equity Ratio (Total Liability/Networth)		0.39	0.30	0.34

Current Ratio (Current Asset/Current Liability)		3.01	3.79	3.97

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 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	No
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

Notes:- The Registered Office of the company has been shifted from 308-312, Merchantice House, Kasturba Gandhi Marg, New Delhi – 110 001, Delhi, India to the present address w.e.f. 18.09.2006.

OPERATIONS:

The Siegwerk India Private Limited has performed satisfactorily in the Financial Year ended on 31st March, 2011 despite global meltdown and all round recessionary trends all over the world. The future prospects for the Company also look good.

NATURE OF OPERATIONS

Siegwerk India Private Limited (the Company) is a subsidiary of Siegwerk Druckfarben, AG. The Company is primarily engaged in the business of manufacturing and selling of printing inks primarily in India.

CONTINGENT LIABILITIES:

The Company has estimated contingent liabilities in respect of show-cause notices/demands received from Government Authorities and others in respect of the following:

(Rs. in Millions)

Particulars	March 31, 2011	March 31, 2010
Show cause notice from Excise for credit availed for Special Additional Duty under Cenvat credit rules, 2004.	NIL	4.045
Show cause notice for incorrect service tax paid on Man Power Recruitment Agency.	NIL	0.139
Sales Tax demand for non submission of sales tax forms	NIL	0.172
Transfer Taxes*	3.872	3.872
Bank guarantees given by the Company	1.110	1.110
Notice of demand for discrepancies notified by Department in TDS return of FY 2010-11	0.312	NIL
Show cause for default u/s 201 (1) /206C(7) FY 2007-08	0.650	NIL
Nonpayment of Service Tax on the Management Consultancy Services u/s 66a of the Finance act,1994	6.267	NIL
Order u/s 250 from the Chief Commissioner of Income Tax Delhi	4.460	NIL
Total	16.672	9.338

*Subsequent to take over in an earlier year, of Land, building and plant & machinery from Sicpa India Limited under the scheme of arrangement, the Company is in the process of getting the registration formalities completed. The revenue authorities have raised a demand of Rs.11.000 Millions as stamp duty on transfer of assets; vide their order dated September 14, 2007. The Company has filed an appeal against the demand and has deposited 50% of the duty demanded by department under protest. However, Company has, on the basis of legal advice obtained and current status of the case computed stamp duty amount and has made a provision of Rs. 7.128 Millions (Previous year Rs. 7.628 Millions). The value of freehold land pending registration is Rs. 16.298 Millions (Previous Year Rs. 16.298 Millions).

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 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] 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. 55.20
UK Pound	1	Rs. 87.79
Euro	1	Rs. 70.43

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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
TOTAL		63

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.

MIRA INFORM REPORT

354.500

144.980

561.640

364.616

353.213

393.282

3.993

0.000

336.855

42.762

1610.201

945.640

437.755

77.813

65.416

18.961

25.483

534.529

238.031

1075.672

707.609

Unit