MIRA INFORM REPORT

Report Date :

09.07.2014

IDENTIFICATION DETAILS

Name :	DIC NEW ZEALAND LIMITED
Formerly Known as :	DIC GRAPHICS NEW ZEALAND LIMITED
Registered Office :	313 Church Street, Penrose, Auckland, Zip code 1061
Country :	New Zealand
Financials (as on) :	31.12.2013 (Non-Consolidated)
Date of Incorporation :	25.06.1932
Com. Reg. No.:	42969
Legal Form :	New Zealand Limited Company
Line of Business :	· engaged in manufacturing and sale of printing inks and coatings. Subject is part of DIC Corporation, which is a Japan-based manufacturing company. Printing Ink division (engaged in manufacturing and selling printing inks and printing-related equipments and materials such as offset ink, gravure ink, can manufacturing paint, news ink, adhesive for packing materials, plate for printing, printing-related consumable materials and equipments.) New Graphic Arts division (engaged in manufacturing and selling organic pigments, recording materials and liquid crystal materials such as pigments for ink, paint and plastic, paint and plastic pigments, thin-film transistor (TFT) liquid crystal) Synthetic Resin division (engaged in manufacturing and selling synthetic resins and polymer additives) Chemical Solution Division (Engaged in manufacturing and selling synthetic resin compound, colorant, building materials, packaging materials, adhesive products, plastic molding products, engineering plastic, hollow fiber) Subject product lines are as follows: · Flexographic packaging inks Energy-curable inks and coatings Label and narrow web inks Specialty coatings Color software and brand color management Water-base Solvent-base and radiation curing
No of Employees :	50 employees (Subject) 20,034 employees (DIC Group)

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
New Zealand	A1	A1

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

New Zealand ECONOMIC OVERVIEW

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy pulled out of recession late in 2009, and achieved 2-3% per year growth in 2010-13. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

Source : CIA

CORPORATE DETAILS

Verified Address

Subject name DIC NEW ZEALAND LIMITED Business address 313 Church Street Town Penrose Province Auckland Zip / Postal code 1061 Country New Zealand Telephone +64 9 6362930 Fax +64 9 6365522 Email diccsnz@dic.co.nz Website www.dic.co.nz

Registered address 313 Church Street Town Penrose Province Auckland Zip / Postal code 1061 Country New Zealand Postal address P.O. Box 12-748 Town Penrose Province Auckland Zip / Postal code 1642 Country New Zealand

SUMMARY DETAILS

Report Summary

Date registered 25/06/1932 Legal form New Zealand Limited Company Key personnel Meredith Darke Line of business The Subject’s business consist of manufacturing and sale of printing inks and coatings. Staff employed 50 employees (Subject); 20,034 employees (DIC Group)

Paid-up capital NZD8,874,000.00 Sales turnover / Revenue / Income NZD44,241,000.00 (Non-Consolidated 12 months, 31/12/2013) Net income / loss NZD1,993,000.00 (Non-Consolidated 12 months, 31/12/2013) Total assets NZD26,108,000.00 (Non-Consolidated 12 months, 31/12/2013) Share equity NZD13,438,000.00 (Non-Consolidated 12 months, 31/12/2013)

CREDIT RISK OUTLOOK

Credit Risk Interpretation

Credit risk theory Reasonable financial and operational base. Small credits may be considered with some confidence that commitments will be sustained under normal circumstances. This is based on criterions such as years of establishment, number of employees, sales turnover, profit after tax, total assets, reserve, and others. A cautious credit control policy applies. Paid-up capital NZD8,874,000.00 Sales turnover / Revenue / Income NZD44,241,000.00 (Non-Consolidated 12 months, 31/12/2013) Net income / loss NZD1,993,000.00 (Non-Consolidated 12 months, 31/12/2013) Total assets NZD26,108,000.00 (Non-Consolidated 12 months, 31/12/2013) Share equity NZD13,438,000.00 (Non-Consolidated 12 months, 31/12/2013)

Subject’s Credit Risk Analysis

Country risk Country risk is minimal Operation trend Operational trend is steady Management experience Management is adequately experienced Financial performance Financial performance is good Remarks Larger credit can still be considered as the Subject's is well positioned in the market and the financial stability of the group is positive.

Organisation structure Organisational structure is consistent Detrimental No detrimental found Payment history No payment delays noted

STATUTORY DETAILS

Registry Information

Date registered 25/06/1932 Legal form New Zealand Limited Company Registration number 42969 Registered authority The Companies Office Tax / VAT number 9429040747866

Statutory status Active Previous name DIC GRAPHICS NEW ZEALAND LIMITED (03-01-2007) COATES NEW ZEALAND LIMITED (30-09-2005) COATES BROTHERS NZ LIMITED (07-10-1994) LORILLEUX & BOLTON (N.Z.) LIMITED (27-08-1942) Change of legal form None reported.

BOARD OF MANAGEMENT

Key Personnel

Name Meredith Darke Designation General Manager

BOARD OF DIRECTORS

Appointments

Name Ian David Johns Title Director Appointment date 15/04/09 Address 3 Coonardoo Place Castle Hill, NSW 2154 Australia Name Paul Koek Title Director Appointment date 02/04/07 Address 76 Bayshore Road #04-17 Costa Del Sol Singapore 469990 Singapore Name Yoshiaki Masuda Title Director Appointment date 16/05/13 Address 10 Mount Sophia #04-27 8 @ Mount Sophia Singapore 228459 Singapore Name Masamichi Sota Title Director Appointment date 01/03/14 Address 2 Marina Boulevard #46-09 The Sail @ Marina Bay Singapore 018987 Singapore

Staff employed 50 employees (Subject); 20,034 employees (DIC Group)

Other Appointments

Auditor DELOITTE TOUCHE TOHMATSU Deloitte Centre Levels 13-18 80 Queen Street Auckland Central, Auckland 1010 New Zealand

SHARE CAPITAL

Composition

Authorized capital NZD8,874,000.00 Number / Type of shares 4,429,800 Ordinary Shares Share par value No par value Issued capital NZD8,874,000.00

Paid-up capital NZD8,874,000.00

OWNERSHIP / SHAREHOLDERS

Composition

How listed Full list Shareholder name DIC ASIA PACIFIC PTE LTD Address 78, Shenton Way, #19-01 Singapore 079120 Singapore Number / Type of shares 4,429,800 Ordinary Shares Percentage (%) of shares 100%

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name DIC CORPORATION Affiliation type Ultimate Holding Company Country of business Japan Comments DIC Corporation operates as a fine chemicals company worldwide. The company operates in four segments: Printing Inks & Supplies, Neo-Graphic Arts Materials, Synthetic Resins, and Chemical Solution Materials. It manufactures printing inks, such as offset inks, gravure inks, flexo inks, can coatings, newspaper inks, and packaging adhesives; and presensitized plates, printing supplies, and printing-related equipment. The company also offers fine chemicals, including organic pigments for printing inks, color filters, and coatings and plastics; and thin-film transistor liquid crystals (LCs), supertwisted nematic LCs, alkylphenols, metal carboxylates, and sulphur chemicals, as well as liquid compounds consisting of ultraviolet-curable coatings and bonding adhesives, jet inks, and wood finishes. In addition, it provides general and specialty polymers comprising synthetic resins for inks and coatings; molded products; and adhesives and textiles, which include polyurethane, epoxy, polystyrene, unsaturated polyester, acrylic, phenolic and alkyd resins, and plasticizers, as well as papermaking chemicals. Further, the company offers solid compounds, such as plastic colorants, polyphenylene sulfide compounds, high-performance optical materials, high-performance compounds, coextruded multilayer films, and toners; and processed products consisting of decorative boards, interior housing products, industrial adhesive tapes, labels, stickers, label stock for printing, specialty magnetic foils, plastic pallets, containers, hollow-fiber membranes, modules, bathtubs and bath units, synthetic marbles, and sheet molding compounds. Additionally, it engages in real estate brokerage activities. The company was formerly known as Dainippon Ink and Chemicals, Incorporated and changed its name to DIC Corporation in April 2008. DIC Corporation was founded in 1908 and is headquartered in Tokyo, Japan. Company name DIC ASIA PACIFIC PTE LTD Affiliation type Parent Company Country of business Singapore Company name DIC (CHINA) CO., LTD. Affiliation type Sister Company Country of business China Company name DIC EUROPE GMBH Affiliation type Sister Company Country of business Germany Company name DIC AUSTRALIA PTY LIMITED Affiliation type Sister Company Country of business Australia Company name DIC (MALAYSIA) SDN. BHD. Affiliation type Sister Company Country of business Malaysia Company name DIC (VIETNAM) CO., LTD. Affiliation type Sister Company Country of business Vietnam Company name DIC PHILIPPINES, INC. Affiliation type Sister Company Country of business Philippines Company name DIC LANKA (PRIVATE) LTD. Affiliation type Sister Company Country of business Sri Lanka Company name DIC (GUANGZHOU) CO., LTD. Affiliation type Sister Company Country of business China

Remarks on corporate affiliations and related companies Other companies of the DIC group should be considered affiliates of the Subject.

BANK AND MORTGAGES

Bank Details

Name of bank Bank of Tokyo-Mitsubishi Address New Zealand

Comments It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages

None reported.

Legal Filings

Bankruptcy filings None reported. Court judgements None reported.

Tax liens None reported. Others None reported.

FINANCIAL STATISTICS

Description

Financial statement source Commercial Registry Filings Financial statement date 31/12/13 Style of financial statement Full audited

Currency of financial statement New Zealand, Dollar (NZD) Exchange rate 1 USD = NZD 1.14 as of 08-07-2014

Concise Financial Data	Consolidation style	Non-Consolidated	Non-Consolidated	Group Consolidated
	Currency	New Zealand, Dollar (NZD)	New Zealand, Dollar (NZD)	Japan, Yen (JPY)
	Date of financial year end	31/12/13	31/12/12	31/12/13
	Length of financial accounts	12 months	12 months	9 months
	Sales turnover / Revenue / Income	44,241,000.00	45,887,000.00	705,647,000,000.00
	Gross profit	9,487,000.00	8,078,000.00	147,614,000,000.00
	Profit / Loss before tax	2,790,000.00	1,707,000.00	40,116,000,000.00
	Net income / loss	1,993,000.00	911,000.00	26,771,000,000.00
	Non-current assets	5,178,000.00	5,433,000.00	370,896,000,000.00
	Property, plant and equipment	3,668,000.00	4,014,000.00	233,759,000,000.00
	Current assets	20,930,000.00	21,123,000.00	390,794,000,000.00
	Inventories	8,831,000.00	8,997,000.00	86,402,000,000.00
	Cash and cash equivalents	2,590,000.00	2,856,000.00	15,576,000,000.00
	Accounts receivable	8,621,000.00	8,037,000.00	212,821,000,000.00
	Total assets	26,108,000.00	26,556,000.00	761,690,000,000.00
	Current liabilities	8,016,000.00	7,290,000.00	278,227,000,000.00
	Non-current liabilities	4,654,000.00	4,821,000.00	264,516,000,000.00
	Accounts payable	7,423,000.00	7,089,000.00	116,023,000,000.00
	Total liabilities	12,670,000.00	12,111,000.00	542,743,000,000.00
	Share equity	13,438,000.00	14,445,000.00	218,947,000,000.00
	Retained earnings	4,564,000.00	5,571,000.00	89,166,000,000.00

Remarks

The non-consolidated financial statement above relates only to the Subject. The group consolidated financial statement above relates to the Subject's Ultimate Holding Company DIC Corporation and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities The Subject engages in manufacturing and sale of printing inks and coatings. The Subject is part of DIC Corporation, which is a Japan-based manufacturing company. The Printing Ink division manufactures and sells printing inks and printing-related equipments and materials such as offset ink, gravure ink, can manufacturing paint, news ink, adhesive for packing materials, plate for printing, printing-related consumable materials and equipments. The New Graphic Arts division manufactures and sells organic pigments, recording materials and liquid crystal materials such as pigments for ink, paint and plastic, paint and plastic pigments, thin-film transistor (TFT) liquid crystal, among others. The Synthetic Resin division manufactures and sells synthetic resins and polymer additives. The Chemical Solution division manufactures and sells synthetic resin compound, colorant, building materials, packaging materials, adhesive products, plastic molding products, engineering plastic, hollow fiber and others. Products and services Flexographic packaging inks Energy-curable inks and coatings Label and narrow web inks Specialty coatings Color software and brand color management Water-base Solvent-base and radiation curing

Purchases

Local The Subject sources its product(s) / material(s) locally.

International The Subject sources its product(s) / material(s) from countries such as Australia, United States, Asia, Europe.

Sales

Local The Subject sells its product(s) locally.

International The Subject exports its product(s) to countries such as Australia, Vietnam, Malaysia.

Business Facilities and Assets

Premises The Subject operates from the verified heading address consisting of a production facility, warehouse and an administrative office.

Branches In addition, the Subject operates from office branches located at: 18 Gregory Street Naenae, Lower Hutt 5011 New Zealand Tel: +64 4 5677005 Fax: +64 4 5677001 17 St David Street Christchurch Central, Christchurch 8011 New Zealand Tel: +64 3 3666185 Fax: +64 3 3651840 Production facility: 30 Saunders Place Avondale, Auckland 1026 New Zealand Tel: +64 9 8282002 Fax: +64 9 8281637

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) and Economic Overview

Central bank Reserve Bank of New Zealand Reserve of foreign exchange and gold US$ 20.562 billion Gross domestic product (GDP) US$ 180.548 billion Purchasing power parity (GPP) 126.628 billion of International dollars GDP per capita (current prices) US$ 40,454 GDP composition by sector agriculture: 4.7% industry: 24% services: 71.3% Inflation 2009: 2.1% 2010: 2.3% 2011: 4% Unemployment rate 2009: 6.1% 2010: 6.5% 2011: 6.5%

Public debt (general Government gross debt as percentage (%) of GDP) 2009: 26.1% 2010: 32.3% 2011: 37% Government bond ratings Standard & Poor's: AA+/Stable/A-1+ Moody's rating: Aaa Moody's outlook: STA Market value of publicly traded shares US$67.061 billion Largest companies Westpac Limited, Transpower, Fletcher Building Limited, National Bank of New Zealand, Fonterra Co-Operative Group Ltd, Air New Zealand Limited, The Warehouse Group Limited, Progressive Enterprises Ltd

Trade and Competitiveness Overview

Total exports US$33.24 billion Export commodities Dairy products, meat, wood and wood products, fish, machinery Total imports US$31.11 billion Import commodities Machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics Best countries for doing business 3 out of 183 countries Global competitiveness ranking 25 (ranking by country on a basis of 142, the first is the best)

Major export partners Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6% Major import partners Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%, Germany 4.7% FDI inflows 2008: US$4,598 million 2009: US$-1,293 million 2010: US$561 million FDI outflows 2008: US$462 million 2009: US$-308 million 2010: US$589 million

Country and Population Overview

Total population 4.37 million Total area 270,467 km2 Capital Wellington

Currency New Zealand dollars (NZD) Internet users as percentage (%) of total population 83%

PAYMENT OUTLOOK

Purchases Term

Local Bank transfer, Credit 30-90 days

International Telegraphic transfer, D/P, Credit 30-90 days

Sales Term

Local Bank transfer, Prepayment, D/P, Credit 30-90 days

International Telegraphic transfer, D/P, Credit 30-90 days

Trade Reference / Payment Behaviour

Comments As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources Interviews and material provided by the Subject Other official and local business sources

Attachments

Attachments Financial statements List of affiliated companies

KEY FINANCIAL RATIOS

For financial year end	31/12/13	31/12/12	.
Profitability	.	.	.
Gross profit (loss) margin (%)	21.44	17.60
Pre-tax profit (loss) margin (%)	6.31	6.31
Net profit (loss) margin (%)	4.50	1.99
Return on Invested Capital	.	.	.
Return on assets (%)	7.63	3.43
Return on equity (%)	14.83	6.31
Liquidity	.	.	.
Current ratio	2.61	2.90
Quick ratio	1.51	1.66
Cash ratio	0.12	0.14
Accounts receivable turnover ratio (times)	5.13	5.71
Accounts payable turnover ratio (times)	5.96	6.47
Collection period (days)	71.13	63.93
Payment period (days)	61.24	56.39
Inventory turnover ratio (times)	5.01	5.10
Inventory conversion period (days)	72.86	71.57
Asset Management	.	.	.
Fixed asset turnover ratio (times)	12.06	11.43
Asset turnover ratio (times)	1.69	1.73
Capital Structure and Solvency	.	.	.
Total debt to asset ratio (%)	48.53	45.61
Total debt to equity ratio (%)	94.28	83.84
Non-current debt to equity ratio (%)	34.63	33.37

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.79
UK Pound	1	Rs.102.42
Euro	1	Rs.81.32

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	MNL

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	--

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.