Kokuyo Camlin Limited

C M Y K Letter of Offer July 26, 2013 For Equity Shareholders of our Company only KOKUYO CAMLIN LIMITED Kokuyo Camlin Limited (the “Company”) was incorporated in India on December 24, 1946 as “Camlin Private Limited” under the Indian Companies Act, VII of 1913, with registration number 5434 (CIN L24223MH1946PLC005434). The name of the Company was changed to “Camlin Limited” and a certificate of change of name was issued on March 24, 1988. The name of the Company was changed to “Kokuyo Camlin Limited” pursuant to which a fresh certificate of incorporation was issued on January 25, 2012. For further details of our change of name, please see chapter titled “History and Other Corporate Matters” on page 98 of this Letter of Offer. Registered Office and Corporate Office: 48/2, Hilton House, Central Road, MIDC, Andheri (E), Mumbai-400 093 Tel: +91 22 6655 7000, Fax: +91 22 2836 6579 Contact Person: Ravindra Damle, Company Secretary and Compliance Officer E-mail: [email protected], Website: www.kokuyocamlin.com OUR PROMOTERS : Kokuyo S&T Co. Ltd., Dilip D. Dandekar and Shriram S. Dandekar FOR PRIVATE CIRCULATION TO THE ELIGIBLE EQUITY SHAREHOLDERS OF THECOMPANY ONLY ISSUE OF 33,319,505 EQUITY SHARES WITH A FACE VALUE OF ` 1 EACH FOR CASH AT A PRICE OF ` 33 PER EQUITY SHARE INCLUDING A PREMIUM OF ` 32 PER EQUITY SHARE (“RIGHTS ISSUE EQUITY SHARES”) FOR AN AMOUNT AGGREGATING ` 1,099.54 MILLION ON A RIGHTS BASIS TO THE EXISTING EQUITY SHAREHOLDERS OF KOKUYO CAMLIN LIMITED (THE “COMPANY” OR THE “ISSUER”) IN THE RATIO OF 14 EQUITY SHARES FOR EVERY 29 FULLY PAID-UP EQUITY SHARES HELD BY THE EXISTING EQUITY SHAREHOLDERS ON THE RECORD DATE, THAT IS ON AUGUST 2, 2013 (THE “ISSUE”). THE ISSUE PRICE OF EACH RIGHTS ISSUE EQUITY SHARE IS 33 TIMES THE FACE VALUE OF THE RIGHT ISSUE EQUITY SHARE. FOR FURTHER DETAILS, PLEASE SEE CHAPTER TITLED “TERMS OF THE ISSUE” ON PAGE 311 OF THIS LETTER OF OFFER. GENERAL RISKS Investment in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, Investors must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares being offered in the Issue have not been recommended or approved by Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this Letter of Offer. Investors are advised to see chapter titled “Risk Factors” on page 10 of this Letter of Offer before making an investment in the Issue. COMPANY’S ABSOLUTE RESPONSIBILITY Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Letter of Offer contains all information with regard to our Company and the Issue, which is material in the context of the Issue, that the information contained in this Letter of Offer is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Letter of Offer as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The existing Equity Shares are listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”) (together the “Stock Exchanges”). We have received “in-principle” approval from the BSE and the NSE for listing the Rights Issue Equity Shares arising from the Issue vide letters dated April 30, 2013 and April 10, 2013 respectively. For the purposes of the Issue, the designated stock exchange is NSE. LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE Kotak Mahindra Capital Company Limited Sharepro Services (India) Private Limited 1st Floor, Bakhtawar 229, Nariman Point 13 AB, Samhita Warehousing Complex Mumbai – 400 021 2nd Floor, Sakinaka Telephone Exchange Lane, Off Andheri-Kurla Road, Tel: +91 22 6634 1100 Sakinaka, Andheri (E), Mumbai – 400 072 Fax: +91 22 22840492 Tel: +91 22 61915400 Website: www.investmentbank.kotak.com Fax: +91 22 61915444 E-mail: [email protected] Website: www.shareproservices.com Investor Grievance E-mail: [email protected] E-mail: [email protected] Contact Person: Ganesh Rane Contact Person: Prakash A. Khare / Anand Moolya SEBI Registration No.: INM000008704 SEBI Registration No.: INR000001476 ISSUE PROGRAMME ISSUE OPENS ON LAST DATE FOR REQUEST FOR SPLIT ISSUE CLOSES ON APPLICATION FORMS AUGUST 12, 2013 AUGUST 20, 2013 AUGUST 27, 2013 C M Y K TABLE OF CONTENTS SECTION I – GENERAL .................................................................................................................................. 1 DEFINITIONS AND ABBREVIATIONS ..................................................................................................................... 1 NOTICE TO OVERSEAS SHAREHOLDERS ............................................................................................................ 6 PRESENTATION OF FINANCIAL INFORMATION AND USE OF MARKET DATA ........................................ 7 FORWARD LOOKING STATEMENTS ..................................................................................................................... 9 SECTION II - RISK FACTORS ..................................................................................................................... 10 SECTION III – INTRODUCTION ................................................................................................................ 30 SUMMARY OF INDUSTRY ....................................................................................................................................... 30 SUMMARY OF BUSINESS ......................................................................................................................................... 32 SUMMARY FINANCIAL INFORMATION .............................................................................................................. 35 THE ISSUE .................................................................................................................................................................... 44 GENERAL INFORMATION ...................................................................................................................................... 45 CAPITAL STRUCTURE ............................................................................................................................................. 50 SECTION IV – PARTICULARS OF THE ISSUE ........................................................................................ 66 OBJECTS OF THE ISSUE ........................................................................................................................................... 66 BASIS OF ISSUE PRICE ............................................................................................................................................. 72 STATEMENT OF TAX BENEFITS ............................................................................................................................ 75 SECTION V – ABOUT US .............................................................................................................................. 77 INDUSTRY OVERVIEW ............................................................................................................................................ 77 OUR BUSINESS ............................................................................................................................................................ 81 KEY INDUSTRY REGULATIONS ............................................................................................................................ 93 HISTORY AND OTHER CORPORATE MATTERS ............................................................................................... 98 SUBSIDIARIES .......................................................................................................................................................... 109 MANAGEMENT ........................................................................................................................................................ 111 OUR PROMOTER, PROMOTER GROUP AND GROUP COMPANIES............................................................ 126 DIVIDEND POLICY .................................................................................................................................................. 146 SECTION VI – FINANCIAL INFORMATION.......................................................................................... 147 FINANCIAL STATEMENTS .................................................................................................................................... 147 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ...................................................................................................................................................... 256 MARKET PRICE INFORMATION ......................................................................................................................... 270 FINANCIAL INDEBTEDNESS ................................................................................................................................ 272 SECTION VII – LEGAL

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