MIRA INFORM REPORT

Report Date :

26.09.2012

IDENTIFICATION DETAILS

Name :	SAKATA INX (INDIA) LIMITED
Formerly Known As :	MONTARI INKS LIMITED
Registered Office :	B – 1245-46, RIICO Industrial Area, Bhilwadi – 301019, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.05.1994
Com. Reg. No.:	17-008294
Capital Investment / Paid-up Capital :	Rs.583.000 millions
CIN No.: [Company Identification No.]	U24117RJ1994PLC008294
TAN No.: [Tax Deduction & Collection Account No.]	JPRS04836G
PAN No.: [Permanent Account No.]	AACCS4797D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Offset Inks.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 4000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 – 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

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/ Factory :	B – 1245-46, RIICO Industrial Area, Bhilwadi – 301019, Rajasthan, India
Tel. No.:	91-1493-222908/ 222909/ 2224899 / 515900
Fax No.:	91-1493-223308/ 301019 / 515909
E-Mail :	arabinda.mohanty@sakataindia.com amit.gupta@sakatainia.com sakata-1@vsnl.com sakata@datainfosys.net bhiwadi@sakatindia.com sakata@vsnl.com
Website :	http://www.sakataindia.com
Area :	20 acre
Location :	Owned
Factory:	U-2, Panoli Industrial Estate District Bharuch Panoli - 394116, Gujarat
Tel No.:	91-2646272970-72,
Fax:	91-2646272115
E-mail:	panoli@sakataindia.com
Corporate Office:	D-17, Infocity II, Sector – 33, Gurgaon – 122001, Haryana, India
Tel No.:	91-124-4803300/ 2372008
Fax:	91-124-2372009
E-mail:	marketing@sakataindia.com
Mumbai Office :	Dani Corporate Park, 158, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India
Tel No.:	91-22-26525170/ 26526772/ 26528013
Fax:	91-22-26542044
Email :	sakata@bom5.vsnl.net.in mumbai@sakataindia.com
Hyderabad Office :	608, Ashoka Bhoopal Chambers, Sardar Patel Road, Secunderabad – 500003, India
Tel No.:	91-40-27846016/ 27846017
Fax:	91-40-27846017
Email :	sakatahyd@pol.net.in

DIRECTORS

As on 27.04.2012

Name :

Mr. Vijay K. Seth

Designation :

Managing Director

Address :

E – 46, S outh City -1, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

15.10.1953

Qualification:

BSc, Chemical Engineer

Experience:

35 Years

Date of Appointment :

02.04.1997

Voter ID No:

DL-02-006-198387

DIN No:

00685877

Name :

Mr. Amrit Lal Garg

Designation :

Director

Address :

House No. 417, Sector 28, Faridabad - 121008, Haryana, India

Date of Birth/Age :

25.14.1952

Date of Appointment :

30.11.2011

DIN No:

00152990

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	U74899DL1992PTC048019	GOLDEN PIGMENTS PVT.LTD.	Director	03/05/1993	03/05/1993	-	Active	NO
2	U74899DL1993PTC055513	BHABANI PIGMENTS PRIVATE LIMITED	Director	04/10/1993	04/10/1993	-	Active	NO
3	U24117RJ1994PLC008294	SAKATA INX (INDIA) LIMITED	Director	30/11/2011	30/11/2011	-	Active	NO

Name :

Mr. Kotaro Morita

Designation :

Director

Address :

324, Vinigs Drive, Bloomingdale, USA

Date of Birth/Age :

17.10.1955

Date of Appointment :

29.08.2009

DIN No:

02719110

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.04.2012

Names of Shareholders	No. of Shares
Sunil Chhabra	100
Sushil Gupta	100
Harish Chaunwall	100
Mukesh Tarani	100
Sakata Inx Corporation, Japan	58299300
Vijay K. Seth	100
Raakesh Datta	100
Amit Gupta	100
Total	58300000

As on 27.04.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
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 :

Manufacturer of Offset Inks.

Products :

Products Description	Item Code No.
Printing Inks	3215.90

PRODUCTION STATUS (AS on 31.03.2011)

	Unit	Licensed Capacity	Installed Capacity*	Actual Production
Printing Inks	MT	NA	25,000 (25,000)	14,052.85 (12,628.01)
Polyurethane	MT	NA	1,350 (1,350)	1,299.32 (1,034.34)

*As certified by Management

* Installed capacity may vary depending upon the product mix.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The Bank of Nova Scotia Dr. Gopal Das Bhawan, 28 Barakhamba Road, New Delhi - 110001, Delhi, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans banks secured	(A)51.873	209.706
Other debt secured	(B)0.158	0.233
Total	52.031	209.939
Note: (A) (Secured by way of first charge on current assets of the Company on Pari Passu basis) (B) (Secured by way of hypothecation of vehicles) {Amount repayable within one year Rs. 0.856 millions (Previous Year Rs.0.748 millions)}
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loans/ Cash Credit Facilities from Banks	196.991	85.412
Total	196.991	85.412

Banking Relations :	--
Auditors :
Name :	S. R Batliboi and Company Chartered Accountant
Address :	Golf View Tower, B Sector – 42, Sector Road, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
PAN No:	AALFS0506L
Holding Company :	· Sakata Inx Corporation, Japan
Enterprises under common control:	· Pt. Sakata Inx, Indonesia · Sakata Inx Malaysia SDN BHD · Inx International Company, US · Triangle (Guangzhou) Digital , China · Inx Digital International Company, USA · Maoming Sakata Inx Company Limited, China · Sakata Inx Shanghai Company Limited, China · - Sakata Inx Vietnam Company Limited
Enterprises over which shareholders exercise significant influence:	· Eternal Sakata Inx Co Limited, Bangkok · Taiwan Sakata Inx Corporation, Taiwan

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Share	Rs.10/- each	Rs.600.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.610.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58300000	Equity Share	Rs.10/- each	Rs.583.000 Millions

Footnotes:

Of the above, 58,299,300 (Previous year 58,299,300) equity shares are held by the holding Company, Sakata Inx Corporation, Japan and 700 (Previous year 700) equity shares are held by the nominees of Sakata Inx Corporation, Japan.

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		583.000	583.000	583.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		419.367	301.699	196.401
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1002.367	884.699	779.401
LOAN FUNDS
1] Secured Loans		52.031	209.939	48.784
2] Unsecured Loans		196.991	85.412	180.571
TOTAL BORROWING		249.022	295.351	229.355
DEFERRED TAX LIABILITIES		0.000	15.157	5.417
TOTAL		1251.389	1195.207	1014.173
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		508.061	570.833	329.210
Capital work-in-progress		20.789	4.186	205.539
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.495	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	282.442	218.759	163.041
	Sundry Debtors	593.319	518.335	437.676
	Cash & Bank Balances	30.924	45.461	24.015
	Other Current Assets	12.097	5.482	8.861
	Loans & Advances	77.697	68.840	43.739
Total Current Assets		996.479	856.877	677.332
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	214.473	189.897	152.601
	Other Current Liabilities	34.173	31.030	24.348
	Provisions	25.789	15.762	20.959
Total Current Liabilities		274.435	236.689	197.908
Net Current Assets		722.044	620.188	479.424
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1251.389	1195.207	1014.173

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2433.684	2025.476	1622.417
		Other Income	27.116	27.951	21.015
		TOTAL (A)	2460.800	2053.427	1643.432
Less	EXPENSES
		Raw Materials Consumed	1783.086	1452.068
		Manufacturing service costs	107.021	94.288
		Employee related expenses	180.461	139.627
		Administrative selling other expenses	121.717	120.814
		TOTAL (B)	2192.285	1806.797	1476.084
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		268.515	246.630	167.348
Less	FINANCIAL EXPENSES (D)		17.299	15.246	16.461
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		251.216	231.384	150.887
Less/ Add	DEPRECIATION/ AMORTISATION (F)		78.029	73.271	40.110
	PROFIT BEFORE TAX (E-F) (G)		173.187	158.113	110.777
Less	TAX (H)		56.000	52.815	41.592
	PROFIT AFTER TAX (G-H) (I)		117.668	105.298	69.185
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		301.699	196.401	127.215
	BALANCE CARRIED TO THE B/S		419.367	301.699	196.400
	Earnings Per Share (Rs.)		2.02	1.81	1.21

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.78	5.12	4.21
Net Profit Margin (PBT/Sales)	(%)	7.12	7.80	6.83
Return on Total Assets (PBT/Total Assets}	(%)	11.51	11.07	11.01
Return on Investment (ROI) (PBT/Networth)		0.17	0.18	0.14
Debt Equity Ratio (Total Liability/Networth)		0.52	0.60	0.55
Current Ratio (Current Asset/Current Liability)		3.63	3.62	3.42

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	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

OPERATIONS FOR THE YEAR:

During the year, the company has posted an impressive growth of 20% in sales value. The company has produced 14053 tons (Last year 12628 tons) and sold 14077 tons (Last year 12487 tons) of printing inks. During the year, company experienced pressure on margins due to increase in prices of key raw materials.

OUTLOOK FOR THE CURRENT YEAR:

The company is optimistic about the future and it plans to increase its presence geographically both in domestic & overseas markets. Further with the new plant in westernIndia, company expects logistic benefits and synergy to company’s growth plan.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2011	31.03.2010
(i) Income tax
Disallowances and addition to taxable income under Income Tax Act in respect:- Assessment year 2005-06	2.658	2.658
Assessment year 2006-07	4.685	4.685
Assessment year 2007-08	13.607	--
(ii) Excise duty Show cause notices/ demands issued by excise authorities on various matters, against which the Company has filed replies or in process of that or against the demands the Company has gone on appeal.	5.758	2.718
(iii) Entry tax Demand of Entry Tax by the authorities in respect of financial year 2007-08 & 2008-09 for chargeability of entry tax on purchase of various items in the state of Rajasthan, against which the appeal is pending with Supreme Court of India.	8.167	--
(iv) Others Claims against the Company not acknowledged as debts.	1.009	--

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Factory Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office equipments

· Computers

WEBSITES DETAILS:

About As:

Sakata Inx (India) Limited is a 100% subsidiary of Sakata Inx Corporation, Japan.

Sakata Inx Corporation Japan was founded in the year 1896 and is now a global ink manufacturer and has a strategic alliance with Toyo Inks on a worldwide basis. SIC expanded overseas in 1948 and has over 80 major bases worldwide.

It is strategically located in United States of America, United Kingdom, Ireland, Spain, Indonesia, Malaysia, Taiwan, Canada, Philippines and other regions for handling its diversified business interests.

Sakata Inx Corp. is a comprehensive provider to the printing and packaging industry. Its R and D activities have developed printing inks on the cutting edge of technology such as water based and solvent based flexographic and gravure inks for flexible films, newspaper inks, offset inks for packaging and commercial applications, metal decorating inks for cans, water based and solvent based overprint varnishes and several additives.

The technology and manufacturing process is currently ahead of similar products available in the market. It manufactures world renowned Gravure Lamiall® (poly urethane resin base) range of liquid inks for reverse printing on several flexible substrates such as treated PET, BOPP, Nylon, PVDC coated film, Cellophane for packaging purposes especially for food products. In addition to this, other gravure inks include Lamitop - Reverse printing inks, DX-60, DLO, DX-FR range of surface printing inks and shrinkable PVC inks.

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.53.53
UK Pound	1	Rs.86.82
Euro	1	Rs.69.03

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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.