Valuation of Machinery

For
Profectus Capital
(Specific Machinery of M/s Balaji Printing Solution)

Prepared by:
ADROIT TECHNICAL SERVICES PRIVATE LIMITED
30th July, 2022

Valuation of Real Estate

Valuation of Plant & Machinery
Panel Valuer of Banks
Project Appraisals
Feasibility Studies

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 Table of Contents
Executive Summary .......................................................................................................................... 3
PROJECT REPORT.............................................................................................................................. 4
1. SUMMARY ............................................................................................................................. 4
I. Purpose of Valuation: ......................................................................................................... 4
II. Value of the Assets and Basis: ......................................................................................... 4
2. Overview of the assets .................................................................................................... 5
I. Asset details: The subject equipment is: Specific machinery of M/s Sharda Grafix ............. 5
II. Technical Specification of major machinery: ................................................................... 5
3. Market Overview: .................................................................................................................. 5
4. Valuation ............................................................................................................................... 7
I. Scope of Work under this Assignment ................................................................................ 7
II. Limitations to this Assignment ........................................................................................ 7
III. Basis of Valuation: .......................................................................................................... 7
IV. Market Approach............................................................................................................ 8
V. Valuation Assumptions ................................................................................................... 8
VI. Valuation Guidelines ....................................................................................................... 8
VII. Valuation Sheet .............................................................................................................. 8
5. Asset Photographs ................................................................................................................. 9
6. Conclusion ........................................................................................................................... 10

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 Executive Summary
Name of the Valuer Adroit Technical Services (P) Ltd.
Registration No. IBBI/RV/04/2018/10370
Office no. 703, 7th Floor, Tower C, ATS Bouquet, Sec- 132, NOIDA,
Address
UP, 201301
Date of Inspection July 30th, 2022
Date of Report July 30th, 2022
Location of the Machinery valued 14/17, Site-4, Sahibabad Industrial Area, Ghaziabad-201010
Fair Market Value (INR) INR 60,00,000/-(In word Sixty Lakh Only)
Realizable Value (INR) INR 51,00,000/-(In word Fifty One Lakh Only)
Distress Value (INR) INR 42,00,000/-(In word Forty Two Lakh Only)

Observations & Assumptions:

 The Assets under consideration is specific Machinery of M/s Balaji Printing Solution and the
equipment has been inspected at 14/17, Site-4, Sahibabad Industrial Area, Ghaziabad-
201010.
 Documentation: In the course of this exercise we have relied upon the hardcopy, softcopy,
email, documentary and verbal information provided by the client. We have assumed that
the information provided to us is reliable, accurate and complete in all respects. We reserve
our right to alter our conclusions at a later date, if it is found that the data provided to us by
the client was not - reliable, accurate or complete.
 The subject valuation exercise is based on prevailing market dynamics as on the date of the
valuation and does not take into account any unforeseeable developments that could
impact the same in the future.
 This valuation is valid only for the purpose mentioned in this report; and neither intended
nor valid to be used for any other purposes. This report shall not be provided to any third
party or external party without our written consent. In no event, regardless of whether
consent has been provided, shall we assume any responsibility to any third party or external
party to whom the report is disclosed or otherwise made available.
 Transaction Costs like Brokerage etc., pertaining to the sale/purchase of this machinery
have not been considered while estimating FMV.
 Possession of this report or any copy thereof does not carry with it right of publication. No
portion of this report shall be disseminated to third parties through prospectus, advertising,
public relations, news or any other means of communication without the written consent
and approval of Adroit Valuations.
 The condition, assessment and the estimation of remaining physical useful life are based on
visual observations and review of maintenance, performance & service records. We have
not carried out any physical testing and performance analysis of Plant, machinery for the
purpose of this exercise. The actual age is based on the information made available to us at
the time of site inspection.
 We reserve the right to alter our conclusions should any information that we are not aware
of at the time of preparing this report come to light that has a material impact on the
conclusions herein.

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 PROJECT REPORT
1. SUMMARY

I. Purpose of Valuation:

To use values as basis for collateral value what Profectus Capital can achieve by disposing the
equipment in case the obligor defaults.

II. Value of the Assets and Basis:

Taking the replacement value of the asset and marketing expenses to resell the machines into the
consideration.

Value of the assets is based on purpose of valuation basis provided asset information Profectus
Capital intends to acquire values from appraiser for fair market values of selected equipment.
Ultimately to use values as basis for collateral value what Profectus Capital (lessor) can achieve by
disposing the equipment in case the obligor defaults. Market Research approach based upon the
replacement cost including the duties and taxes paid to procure the machinery to the site has been
used.

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 2. Overview of the assets

 The subject asset under consideration is specific machinery of M/s Balaji Printing Solution
and the equipment has been inspected at 14/17, Site-4, Sahibabad Industrial Area,
Ghaziabad-201010

I. Asset details: The subject equipment is: Specific machinery of M/s Balaji Printing Solution

Asset Usage:

Heidelberg Offset Printing Machine

Heidelberg offers you the most highly automated and most intelligent Speed master yet. The smart
machines in the series take advantage of the huge spectrum of digital possibilities for outstanding
productivity and a significant increase in overall equipment effectiveness (OEE). The clear focus on
operator-independent performance on the new Speed master raises Heidelberg’s Push to stop
philosophy to a whole new level.

Asset Specifications, Asset Condition, Asset Life:

Remaining
Machine Remaining
S. Equipment’s Manufacturi Chronological Useful
Condition No./ Sr. Physical
No. Description ng year Age Economic
No. useful Life
Life
(Years) (Years) (Years)
HEIDELBERG SM
1 74-4, Offset Good 1996 621449 26 7 8-9
Printing Machine

II. Technical Specification of major machinery:

HEIDELBERG SM 74-4 Offset Printing Machine

Specifications HEIDELBERG SM 72-F Offset Printing Machine
Manufacturer Heidelberg Printing Machine
Model HEIDELBERG SM 74-4
Color 4
Max Printing Length 20x29 Inch
Frequency 50/60 Hz
Phase 3

Note: The technical specification of the above machineries is taken from the sources available in the public domain only.

3. Market Overview:

Used asset market place Regional/National/International Yes, Available

Users available for used asset Yes Available
Asset Liquidity Medium

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 The Subject machineries are part of printing Industry.

 Industry Ranking & Scenario:

This report identifies the global lamination systems market size in for the year 2014-2016,
and forecast of the same for year 2021. It also highlights the potential growth opportunities
in the coming years, while also reviewing the market drivers, restraints, growth indicators,
challenges, market dynamics, competitive landscape and other key aspects with respect to
global lamination systems market.
Geographically North America dominated global lamination systems market, and Asia
Pacific is projected to have fastest growth, owing to rapidly increasing industrial packaging,
and automotive healthcare infrastructure in developing nations such as China, and India in
this region. Among all the end-users, industrial packaging segment has the highest market
share in global lamination systems market.

o Opportunities:
In 2020, the Global Commercial Printing Market had a value of $411.99 billion. By the end
of 2026, it is estimated to value $472.35 billion, with a CAGR of approximately 2.24% in
2021-2026. Five years from now, the printing market is predicted to witness remarkable
growth. In America, 25,000 companies are specialists in commercial printing. It generates
approximately $900 billion in revenue annually.
Hence, don’t believe that “printing is dead.” It is a hoax. Advanced print technology has a
far-fetched future, embracing innovative media and communication waves that go beyond
imagination. Though print is not much in use, the industry is all set to expand due to privacy
issues and oversaturation that digital platforms experience.

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 4. Valuation

I. Scope of Work under this Assignment

a) Collection and review of information relevant to the subject machinery provided by the
Client.
b) Market research to ascertain asking instances and recent sales for similar machinery to
subject equipment.
c) Analyze various asking and sales instances.
d) Develop and report opinion of Valuation of subject machinery and Client’s Share of Fair
Market, Realizable & Distress value of the subject machinery.

II. Limitations to this Assignment

a) Following are the major aspects that are not part of the scope of work for this assignment
of valuation.
b) Type of valuation: This opinion of Fair Market, Realizable & Distress value is a plant and
machinery valuation of the subject assets, neither the business valuation nor for the Client
or any of their subsidiaries or associated companies, etc.
c) Sales History Checks: This mandatory requirement indicated by the USPAP Standards from
which departure is not permitted, has been excluded from the scope of work of this
assignment by the Client. In all likelihood, a separate agency would be covering this aspect,
details of which can be provided by the Client
d) Legal due diligence: Legal due diligence is not a part of scope of work for this assignment.
e) Given the confidential nature of transactions, actual transaction details for most
comparable, which are privately transacted, are not in the public domain. Consequently,
there is reliance on information from market sources, which may not be completely
accurate. Thus, information has been cross-checked independently from other market
sources to ascertain the broad credibility of information being provided by the market
sources. This assignment has been done on best effort and knowledge basis.
f) As per the verbal information provided by Company’s representative that this machine
currently was not in working condition because it was dismantled condition.
g) The value is provided in this report is excluding of GST.

III. Basis of Valuation:

The valuation is based on the purpose of the Collateral security in the case of default of payment
by the debtor and assuming all the information provided by client on the behalf of Profectus
Capital and the value is being calculated using market research approach and considering the cost
of purchase, cost of procurement on site and the age and operational life of Machine and
depreciating the value on the basis of useful life of the machine and the marketing cost.

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IV. Market Approach
For classes of plant and equipment that are homogenous, e.g. motor vehicles and certain types of
office equipment or industrial machinery, the market approach is commonly used as there is
sufficient data of recent sales of similar assets. However, many types of plant and equipment are
specialized and direct sales evidence for such items will not be available.

V. Valuation Assumptions
a. That all information provided to the valuation agency by the client, and/ or his professional
advisor(s) or any other named party: upon which the Valuation agency will rely is complete
and correct. The legal ownership is considered to be in favor of M/s Balaji Printing Solution and
no legal due diligence is done for the same.
b. Net realizable value (NRV) is the value of an asset that can be realized upon the sale of the
asset, less a reasonable estimate of the costs associated with the eventual sale or disposal of
the asset.
c. At the time of inspection, the machineries were in disassembled condition.

VI. Valuation Guidelines

This valuation has been carried out in accordance with the Standards and Standards Rules set out
in the uniform Standards of Professional Appraisal Practice and Advisory Opinions (USPAP
Standards) published by the Appraisal Standards Board, 2005 Edition Effective January 1, 2005.
And international valuation standards (IVS 2016)

VII. Valuation Sheet

Machine No./ Fair Market
S.No. Particulars Qty. Year
Serial No. Value
1 Heidelberg SM 74-4 Offset Printing Machine 1 621449 1996 60,00,000

Fair Market Realizable

S.No. Particulars Qty Distress Value
Value value
Heidelberg SM 74-4 Offset Printing
1 1 60,00,000 51,00,000 21,00,000
Machine
TOTAL 60,00,000 51,00,000 21,00,000

Total Fair Market Value

INR 60,00,000/-
Documents provided  List of machine

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5. Asset Photographs

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 6. Conclusion

The subject specific machinery of M/s Balaji Printing Solution

The value is released considering the Depreciation and useful life of the machinery, the current
condition of the machinery and the market risk in comparison to the specific industry in which the
machine is being used.

The machine was found in average condition as inspected on site and no major breakdown or
overhauling history has been provided and we not consider the same in this valuation exercise.

In our opinion the Total Fair Market Value is INR 60,00,000/-

For Adroit Technical Services Pvt. Ltd.

Mr. Anand Kumar B K

Director
Date: 30th July, 2022

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