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MIRA
INFORM REPORT
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Report Date : |
26.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
KHANNA PAPER AND PULP (DIVISION OF KHANNA PAPER MILLS LIMITED) |
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Registered Office : |
E – 330, First Floor, Greater Kailash, Part – II, New Delhi – 110 048 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.02.1985 |
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Com. Reg. No.: |
55-020023 |
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CIN No.: [Company
Identification No.] |
U21012DL1985PLC020023 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AMRK10059A |
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PAN No.: [Permanent
Account No.] |
AAACK1375K |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Paper and Paper Boards and Coated Duplex Board. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7700000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having satisfactory track.
Trade relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
E – 330, First Floor, Greater Kailash, Part – II, New Delhi – 110 048,
India |
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Tel. No.: |
91-11-41725660 |
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Fax No.: |
91-11-41725660 |
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E-Mail : |
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Website : |
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Corporate Office : |
K – 8A, Lajpat Nagar Part II, New Delhi, India |
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Tel. No.: |
91-11-29831922 / 62 |
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Fax No.: |
91-11-29844702 |
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E-Mail : |
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Administrative Office : |
3993/A-B, Raguganj Chawri Bazar, 2nd Floor Delhi – 110 006, India. |
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Tel. No.: |
91-11-3912428 / 3924257 / 3980337 / 3966849 |
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Fax No.: |
91-11-3980337 |
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E-Mail : |
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Website : |
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Head Office / Works : |
Fatehgarh Road, Amritsar – 143001, Punjab, India |
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Tel. No.: |
91-183-5067100-109 / 504416 / 17 / 18 / 2710974 - 77 |
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Fax No.: |
91-183-5067110/111 / 504415 / 2710972 - 73 |
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E-Mail : |
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Sales Office : |
Chawri Bazar, Amritsar, Punjab, India |
DIRECTORS
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Name : |
Mr. Brij Mohan Khanna |
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Designation : |
Chairman cum Managing Director |
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Address : |
House No. 19, New Garden Colony, Amritsar – 143 001, Punjab, India |
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Date of Birth/Age : |
13.10.1947 |
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Date of Appointment : |
28.05.1994 |
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E-Mail : |
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Name : |
Mr. Rahul Khanna |
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Designation : |
Director |
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Address : |
House No. 19, New Garden Colony, Amritsar – 143 001, Punjab, India |
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Date of Birth/Age : |
03.03.1979 |
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Date of Appointment : |
01.04.1997 |
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E-Mail : |
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Name : |
Mr. Saurabh Khanna |
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Designation : |
Director |
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Address : |
House No. 19, New Garden Colony, Amritsar – 143 001, Punjab, India |
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Date of Birth/Age : |
21.07.1981 |
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Date of Appointment : |
20.08.1999 |
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E-Mail: |
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Name : |
Mr. Shivinder Singh Sandhu |
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Designation : |
Director |
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Address : |
House No. 19, New Garden Colony, Amritsar – 143 001, Punjab, India |
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Date of Birth/Age : |
30.09.1958 |
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Date of Appointment : |
01.07.2002 |
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E-Mail: |
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Name : |
Mr. Surinder Lal Sharma |
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Designation : |
Director |
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Address : |
266/11, Kucha Tiwarian , Amritsar- 143 001, Punjab, India |
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Date of Birth/Age : |
02.12.1947 |
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Date of Appointment : |
06.04.1994 |
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Date of Cessation : |
15.07.2005 |
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Name : |
Mr. Suneet Kochhar |
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Designation : |
Director |
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Name : |
Mr. Charanjit Khanna |
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Designation : |
Director |
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Name : |
Mr. Mohan Lal Khanna |
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Designation : |
Director |
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Name : |
Mr. Rajesh Khanna |
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Designation : |
Director |
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64, Basant Avenue, Amristar – 143 00, Punjab, India |
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Date of Birth/Age : |
01.04.1969 |
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Date of Appointment : |
20.08.1999 |
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Name : |
Mr. Vikas Khanna |
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Designation : |
Director |
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Address : |
B -87 Darewal Nagar, Delhi -
110 033, India |
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Date of Birth/Age : |
27.03.1977 |
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Date of Appointment : |
01.03.2002 |
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Name : |
Mr. Mohan Lal Khanna |
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Designation : |
Director |
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Address : |
B -87, Darewal, Nagar, Delhi – 110 033, India |
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Date of Birth/Age : |
02.02.1985 |
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Name : |
Mr. Sunnet Kochar |
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Designation : |
Director |
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Address : |
5B / 9, Lane No. 1 Dayanand Nagar, Amristar – 143 00, Punjab, India |
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Date of Birth/Age : |
18.12.1974 |
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Date of Appointment : |
01.04.2001 |
KEY EXECUTIVES
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Name : |
Mr. Salil Sood |
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Designation : |
Company Secretary |
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Address : |
76-B, Lawrence Road, Amritsar – 143 001, Punjab, India |
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Date of Birth/Age : |
18.08.1978 |
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Date of Appointment : |
16.07.2002 |
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Date of Cessation : |
17.09.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (As on 01.06.2006) |
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No. of Shares |
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Mr. Mohanlal Khanna |
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461462 |
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Mr. Brijmohan Khanna |
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4725625 |
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Mr. Charanjeet Khanna Mr. Rajesh Khanna |
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1376182 |
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Mr. Rajesh Khanna |
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921695 |
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Mrs. Renu Khanna |
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4772855 |
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Mr. Rahul Khanna |
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1818052 |
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Mr. Brijmohan Khanna Huf |
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3607945 |
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Mr. Mohanlal HUF |
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1068570 |
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Mr. Saurabh Khanna |
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1818070 |
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Ms Shivalika |
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295535 |
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Mr. S N Mittal |
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2500 |
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Ms Shreya Khanna |
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25000 |
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Mr. Vikas Khanna |
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515177 |
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Ms. Rani Rama Sharma |
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100000 |
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Ms. Shivani Khanna |
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2505000 |
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Mr. Navroop Khanna |
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2505000 |
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Mr. Shivinder S Sandhu |
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9820 |
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Mr. Manveen Sandhu |
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3570 |
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Mr. Surinder Singh Sandhu |
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1785 |
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Mr. Sahiljit Sandhu |
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1785 |
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Mr. Kiritpal Kaur Sandhu |
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1785 |
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Mr. Vivek Sharma |
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267 |
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Mr. Rajan Sharma |
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265 |
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Total |
26537945 |
Equity Share Breakup (Percentage of Total Equity):-
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Category (As on 31.03.2007) |
Percentage |
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Directors or relative of directors |
99.61 |
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Other top fifty (50) shareholders |
0.39 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Paper and Paper Boards and Coated Duplex Board. |
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Products : |
· L. W. C. Grey Black · H. W. C. Grey Black · L. W. C. White Black · H. W. C. White Black |
GENERAL
INFORMATION
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No. of Employees : |
Around 2000 |
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Bankers : |
· Oriental Bank of Commerce, Civil Lines, Amritsar – 143 001, Punjab, India · Indian Overseas Bank · Punjab National Bank · Axis Bank Limited · Central Bank of India, Amritsar, Punjab, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name 1 : |
GSA and Associates Chartered Accountants |
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Address : |
8/28, WEA , Abdul Aziz Marg, 3rd Floor, Opposite Shastri
Park, Karol Bagh, New Delhi - 110 005, India |
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Name 2 : |
Shri S L Sharma Chartered Accountants |
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Address : |
New Market, Lawrence Road, Amritsar – 143 001, Punjab, India |
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Name 3 : |
Aggarwal Gupta Bhatia & Company Chartered Accountants |
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Address : |
4, Madan Malviya Road, Amritsar - 143 001, Punjab, India. |
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Associates/Subsidiaries : |
· Satya Paper Mills, Amritsar, Punjab, India. · R. C. Vansapati Limited, Amritsar, Punjab, India. · R. C. Paper Mills Limited, Amritsar, Punjab, India. |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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45000000 |
Equity Shares |
Rs. 10/- each |
Rs.450.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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26537945 |
Equity Shares |
Rs. 10/- each |
Rs.265.379
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
265.380 |
106.152 |
106.152 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1254.667 |
1252.860 |
1040.982 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1520.047 |
1359.012 |
1147.134 |
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LOAN FUNDS |
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1] Secured Loans |
3442.782 |
3621.167 |
2728.502 |
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2] Unsecured Loans |
184.212 |
218.088 |
158.669 |
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TOTAL BORROWING |
3626.994 |
3839.255 |
2887.171 |
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DEFERRED TAX LIABILITIES |
534.792 |
499.881 |
298.594 |
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TOTAL |
5681.833 |
5698.148 |
4332.899 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3737.019 |
3674.193 |
2605.151 |
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Capital work-in-progress |
0.000 |
198.676 |
826.542 |
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INVESTMENT |
0.500 |
0.000 |
5.275 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
932.932
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724.432 |
297.523 |
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Sundry Debtors |
1052.910
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1024.306 |
612.404 |
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Cash & Bank Balances |
108.487
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136.463 |
100.790 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
90.204
|
132.038 |
170.225 |
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Total
Current Assets |
2184.533
|
2017.239 |
1180.942 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
215.926
|
169.591 |
207.511 |
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Provisions |
24.293
|
22.369 |
77.500 |
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Total
Current Liabilities |
240.219
|
191.960 |
285.011 |
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Net Current Assets |
1944.314
|
1825.279 |
895.931 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5681.833 |
5698.148 |
4332.899 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
5056.052 |
3768.071 |
2624.413 |
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Other Income |
12.526 |
12.489 |
39.499 |
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Total Income |
5068.578 |
3780.560 |
2663.912 |
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Profit/(Loss) Before Tax |
259.256 |
416.638 |
341.293 |
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Provision for Taxation |
101.740 |
201.178 |
103.287 |
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Profit/(Loss) After Tax |
157.516 |
215.460 |
238.006 |
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Export Value |
411.534 |
362.199 |
475.719 |
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Expenditures : |
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Raw Material Consumed |
3017.531 |
2315.212 |
1432.273 |
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Consumption of stores and spares parts |
103.573 |
57.956 |
48.427 |
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Increase/(Decrease) in Finished Goods |
12.980 |
[252.500] |
[44.091] |
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Salaries, Wages, Bonus, etc. |
64.956 |
61.897 |
40.613 |
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Managerial Remuneration |
2.400 |
3.417 |
3.761 |
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Payment to Auditors |
0.450 |
0.145 |
0.168 |
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Interest |
311.505 |
199.727 |
129.480 |
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Insurance Expenses |
19.544 |
16.173 |
9.577 |
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Power & Fuel |
705.619 |
498.926 |
384.962 |
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Depreciation & Amortization |
227.744 |
190.240 |
110.702 |
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Other Expenditure |
343.020 |
272.729 |
206.747 |
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Total Expenditure |
4809.322 |
3363.922 |
2322.619 |
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KEY RATIOS
|
PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
3.11
|
5.69 |
8.93 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.13
|
11.05 |
13.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.38
|
7.07 |
7.39 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.31 |
0.30 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.54
|
2.97 |
2.77 |
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Current Ratio (Current Asset/Current Liability) |
|
9.09
|
10.51 |
4.14 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCEs:-
Ř R. C. Paper Mills Limited
FORM 8:-
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Name of the company |
KHANNA PAPER MILLS PRIVATE LIMITED |
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Presented By |
Shri Surinder Lal Sharma, Director |
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1) Date and description of instrument creating the change |
1.
Agreement of
hypothecation of movable assets to secure a term loan for Rs. 500.000 millions and one shot L/C
for term loan for Rs. 390.000 millions
dated 18.06.2004 2.
Pari-passu
letter dated 18.06.2004 addressed by
oriental Bank of Commerce, Civil Lines, Amritsar, Indian Overseas Bank,
Ranjit Avenue, Punjab National Bank, Mall Road, Amritsar and Axis Bank
Limited Court Road, Amritsar 3.
Document LTR
18.2 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 500.000
millions including Rs. 390.000
millions for one shot foreign letter
of credit limit to be merged with Term Loan . |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
equipments in the paper plant and the paper board plant such as new de – inking
plant, modification in the paper machine, A 4 Sheeter cutter, cutters and
Rewinders, Top Former, Uhle Box Covers, variable speed electric driver,
oscillators, refiners, suction pick up roll, de Inking up gradation systems, etc . Equitable
mortgage on 203528 Sq.yards of land belonging to the company extended to
cover advances under this limit. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ PLR
-1.5% , 9.5% at present with monthly rests , subject to change in PLR /
spread and subject to changes by RBI from time to time. Penal interests @ 2%
shall be charged on the overdrawn portion. Margin @ 25% for plant and
machinery and other fixed assets and 40% for building. |
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5) Name and Address and description of the person entitled to the charge. |
· Oriental Bank of Commerce, Civil Lines, Amritsar, Punjab, India · India Overseas Bank, Ranjit Avenue, Amritsar, Punjab, India · Punjab National Bank, Mall Road, Amritsar, Punjab, India · Axis Bank Limited, Court road, Amritsar, Punjab, India |
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6) Date and brief description of instrument modifying the charge |
LTR 18.1 dated
29.12.2004 submitted to the manager, Oriental Bank of commerce, civil lines, Amritsar
against title deed number 5289 Book No. 1 Volume 1985 at page No. 100 on
30.07.2004 LTR 18.1 dated
29.12.2004 submitted to the Manager,
Oriental Bank of Commerce, Civil Lines, Amritsar against title deed number
6094 Book No. 1 Volume 2000 at page no. 9899 on 20.08.2004. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
With the
execution of the document, additional security by way equitable mortgage on
property belonging to the company has been created to secure the repayment of
all liabilities / advances already made or which may be hereafter. All other terms
and conditions remain unchanged. |
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Corporate
identity number of the company |
U21012DL1985PLC020023 |
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Name of the
company |
KHANNA PAPER
MILLS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
E – 330, First Floor, Greater Kailash, Part – II, New Delhi – 110 048,
India |
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This form is for |
Creation of
charge |
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Type of charge |
· Immovable Property · Book Debts · Others |
|
Particular of
charge holder |
Punjab National Bank,
International Banking Branch, 46 The Mall, Amritsar – 143 001, Punjab, India E-Mail: bo3015@pnb.co.in |
|
Nature of
instrument creating charge |
Deed of hypothecation
of stocks and book debts dated 05.02.2008 LTR – 18.2 dated
05.02.2008, for extension of equitable mortgage on land of the company in
favour of PNB. There is a constructive delivery of title deeds of the land
under mortgage, which are lying originally with Oriental Bank of
Commerce. |
|
Date of
instrument Creating the charge |
05.02.2008 |
|
Amount secured by
the charge |
Rs. 100.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : PLR -1.5% + 2% Terms of Repayment : Full Repayment
after 15th June, 2008 Margin : 20% on Stock Extent and Operation of the charge : The Charge
operates as continuing security, inter – alia, for repayment of an amount of Rs.
100.00 millions along with interests due to PNB. |
|
Short Particulars
of the property charged |
Stocks and book
debts of the company at works of the company at Fatehgarh Road, Amritsar,
Land of the company situated at Village Nangli, Fatehgarh Road, Amritsar. |
website detalis:-
Company Profile
The story of Khanna papers begins with their Founder-Director Brij Mohan Khanna.
Born on October 13, 1947, in the dawn of India’s newly gained independence, he grew
up with ideals of service to the country and a fierce belief that India could and must excel. Bright and intelligent,
he sought and got admission for an M.B.B.S degree. However a re-look at his
family finances made him decide that he would put his fresh, young mind to
improving the family future.
Starting
with a small sum of Rs.0.10 millions culled from the family’s savings Brij
Mohan set up a small paper plant in 1968 with the capacity of 200 Kg, and named
it " Khanna Small Scale Industry".
With his hard work and canny business sense, the plant flourished and grew.
Never one to rest on his successes, in 1978 he started a Duplex Board Plant with a capacity
of 5 metric ton. In honour of his father, Shri Rattan Chand Khanna he named it
"Rattan Paper Mills". As this second plant flourished, the time
came to increase the capacity and the product range. In1981, he put up another
unit by the name of "Satya Paper Mills" with a capacity of 8 TPD of
writing Paper. This was named after his mother Shrimati Satyavati Khanna.
In small ways are the inner workings of the mind reflected – Brij Mohan Khanna,
remains a strong believer in family values. The difference is that today, the
family comprises not just of his wife Renu Khanna and his two sons Rahul and
Saurabh, but encompasses the entire staff and workers of subject. This perhaps is the underlying reason for
the success of Khanna Papers – the loving guidance and far seeing vision of
Brij Mohan Khanna, who is a patriarch in the true sense.
In 1991 he set up another unit in the name of "R. C. Paper Mills Private. Limited." with a
capacity of 25 TPD.
In a short span of five years, in 1996, “Khanna Paper Mills Private. Limited.”
was created by merging together R.C. Paper Mills and Satya Paper Mills.
The company grew and in keeping with the changing ideologies of the new
century, Brij Mohan conceived the idea of making quality paper from waste
paper. Such thinking was typical of the man who moves with the times and has
always been mindful of the critical need to preserve their natural resources,
and use viable alternatives that do not preclude cutting down of trees.
As he puts it – “If the world must have paper, and they have chosen to fulfill that
need, then the responsibility lies with them to always be on the lookout for
ecological alternatives to fulfill that need”.
Conceptualized in 2000, this unique project was completed in 2002. This
successful experiment with utilizing waste, coalesced into their strong Ecological Policy, and is one of the basic
tenets in their business ideology.
The company has traversed a long distance from manufacturing 200 Kgs sun dry
board per day in 1965 to 400 tons of paper and 300 tons of board per day,
today. They now have a manufacturing capacity of 1.2 lac metric ton per annum.
Subject is now an ISO 9001:2000
certified company, manufacturing quality paper and board not only for domestic
consumption but also exporting it to the SAARC countries, and to Africa and the
Middle East. Their export Market continues to grow at a rapid rate. Their
newest product the “Flexible White Board” challenges the domination of the
existing behemoth.
They are today the third largest manufacturing unit housed within one humongous
single location premise.
The story of the latest entrant into the Top 5 league of Paper Manufacturers
has just begun.
management team
Mr. Brij Mohan
Khanna
The Founder- Director of
the company Brij Mohan Khanna is a man of rare
intelligence and intuitive
ability. The company has experienced tremendous growth under his
able guidance and hands-on involvement in
the daily processes of production. His vision and pioneering
concern for the environment, lead to the conversion of Khanna Papers into a “green” company which manufactures paper
products out of paper waste.
As suppliers, vendors, employees reiterate - for Brij Mohan Khanna “there is no word like impossible”. Never
daunted, he is the force behind the company’s constant
evolution and continuing growth. He remains ambitious not only
for the growth of the company but also for the personal advancement of all
employees. He is a true Patriarch and encourages his Management team to adopt
an “open door policy”
whereby any employee can walk in with ideas or a problem. Brij Mohan Khanna
leads his company with canny foresight, enthusiasm, energy and gentle
benevolence.
Mr. Shivinder
Singh Sandhu
Shivinder Singh Sandhu hailing from the family of freedom fighters rose
to international eminence as an orthopedic surgeon and went on to become an International Scholar at the Cleveland Clinic
Foundation, Cleveland, USA. He specialized in Fracture Management and became a Fellow AO at the University Clinic,
HOMBURG-SAAR, Germany. He has been honoured by the state of Punjab with the STATE AWARD for Academics/Surgery on the
Republic Day in 2002 in Amritsar. In 2003,
he was bestowed with the Man of the Year Award, by the
American Biographical Institute. He is a multi-faceted
personality, and is widely traveled having Chaired
a number of Scientific Sessions in medicine, business, education and social
issues both at the national and international level.
Shivinder Singh Sandhu has Chaired
the CII meetings on SEZ, and Coal Ash
management. He has represented the Paper Industry in the Commerce Meet in Delhi, and attended the SAARC Business Leaders Conclave meet as a
representative of his company.
His ingenious resourcefulness and sharp insight have helped the Company
fulfill its mission in the face of all challenges. Dr. Sandhu at his desk is
responsible for human resource development, administration, research and
environmental issues besides doing yeoman’s
service as spokesperson for the company. Extremely polished,
urbane and cosmopolitan in outlook, Dr. Sandhu brings to the Board his
outstanding academic experience and his skills
in handling tough situations with sensitivity, integrity and professionalism.
Deeply committed to Social issues, he has been at the forefront for fulfilling
and achieving high standards in implementation of the corporate
responsibilities of the subject. In his own words, Shivinder Singh Sandhu wants
subject to “bring about a sustainable positive
change in every person who associates with their Company".
Mr. Rahul Khanna
Rahul Khanna is the eldest son of Brij Mohan Khanna. He believes that “that there is more to life than success and more to success
than money”. And it is with this belief that Rahul Khanna has
grown to acquire an independent persona which has brought a generational change
in the working of the subject. Sincere and committed in all his ventures, Rahul
has the capacity for extreme hard work and tremendous focus. He believes
strongly in the Company and is confident of its success.
Rahul completed his graduation and attended business enhancement courses
at IIM, Ahmedabad, in order
to be able to bring global standards to the energetically growing company that
he joined under the aegis of his father. Together with his brother, he forms
part of the young Management team that carries subject forward with tremendous
zeal.
He is the Director of Marketing and Finance
at subject and has given unstintingly of himself and his talents to the
company. He is believes firmly in giving back to society and is responsible for
the free medical camp that is made available to employees. Rahul Khanna
character bespeaks of invincible honesty and visible
outspokenness - a combination rare on the business scene of
India.
Mr. Saurabh Khanna
Energetic and Effervescent, the company’s youngest
Director, started work at KPM while doing his graduation. Such
was his zeal and enthusiasm to take the company forward that he enjoined upon
his father, Brij Mohan Khanna to let him join the company and start working at
the young age of 20 years. Saurabh is the younger of Brij Mohan Khanna's two
sons. Saurabh has an excellent in-depth understanding of the business, having
started learning about the business from the "nuts and bolts" stage
and then moving on to understand to the financial and management aspects. He
has a practical, no- nonsense approach to
business, dealing with problems with a "lets get this
done" approach. A quick decision taker, he brings in progressive ideas and
is responsible for Projects, Contractors, Procurement,
and Administration. Saurabh has fully adopted his father's open
door policy and is quick to appreciate a workers effort.
He is extremely focused with an intuitive
understanding of the business he loves. His excellent delegation
skills that help him get the best out of his team. He is forward–looking and
hopes to achieve global standards in his business. He is responsible for the
cutting edge technology acquired by his company and is keen to continue
implementing the best technology.
With his energy and dynamism, this young director is sure to make his
vision come true.
The Coated Board Making Process
The Process of coated board making at the company involves various
phases and steps of converting Raw Material into a Finished Product. The
various phases involved during this process could be summarized as :
· Raw Material and Pulp Making
Applications: Coated Board of different QUALITY, different
GSM and GRADE can be used for various purposes like
· For Readymade Garment Carton, Book Covers and Pharmaceutical Boxes
· For Printing Playing cards, Note Book Covers etc.
· For high speed printing machine for quality jobs
· For high speed printing machine used for Carton Printing job such as Tea, Toothpaste and Note Book Covers etc.
1. RAW MATERIAL and PULP MAKING:
Waste recycled paper is used in manufacturing paperboard in their plant.
As white and Grey pulp is used to manufacture paperboard, therefore they have
two main pulp preparation systems for white and grey pulp. The white pulp is
made from imported good variety of mixed office waste in world-class De-inking
plan. They have adopted latest International standard higher technology to
manufacture pulp of brightness, strength and cleanliness. The De-inking plant
comprises of high-density pulper, cleaners, screens, floatation cell, disperser
and bleaching. The purpose from ink particles and other impurities.
Looking to the quality demand and consumer requirement, their total
product range is manufactured on seven cylinder formers. The main composition
of their baseboard is given below: The white and grey pulp manufactured from
different process treated in four streets to make suitable for above four
layers. Chemicals and additives added as per different quality requirement and
"stock" is pumped to different formers to make board sheet called
"web".
The web formed at different formers couched
off and adhered together and form the complete board sheet.
3. PRESSING and DRYING:
Board web formed at forming section carried
by a felt called “making felt” to the press part. The double felted processes
remove water from the web. After squeezing maximum water from the web from
press part, sheet enters the dryer section where with the help of steam heated
drying cylinders water from sheet is being evaporated. In drying section, big
drying cylinder called M.G. enhances glaze on the topside of the board.
4. COATING and FINISHING:
Prior to pigment coating to
enhance coating hold out, the surface sizing is done on both sides of the board
at size press with special quality imported starch. Though they have three
stage coating section, they operate them depending upon end uses and grade
requirement. The main purpose of pigment coating is to get better look and
printing properties of top surface of the board. To meet above requirement,
they include world-class pigment and binder in their coating formulation. To
enhance gloss and smoothness they have steel calendar followed by brush rolls.
5. CONVERTING and PACKING:
They have winder and cutter to meet market requirement. The sheet reams
are packed with high B.F. Kraft and bundled in HDPE. The reel packing is in
Kraft along with edge protector and HDPE.
Paper Making Process
The Process of paper making at subject involves various phases and steps
of converting Raw Material into a Finished Product. The various phases involved
during this process could be summarized as:
· Raw Material
· Pulp Preparation
· Forming Section
· The Dryer Section
· Calendaring And Reeling
· Winding
Applications: Paper of different
QUALITY, different GSM and GRADE can be used for various purposes like:
· For all Commercial Printing Business Communication, Publications, Diaries, Books and Stationary.
· For Calendars, catalogues, Annual Reports, Advertising, Brochures and Pamphlets.
1. RAW MATERIAL:
The good printing and writing paper require a source of long fiber pulp
for web strength. It is either purchase or produced on site. Short fiber pulp
is also needed for fiber bonding and to enhance printability and paper
formation. The combination of good long fiber and short fiber pulp can be
achieved by latest state of the art dinking technology. In India getting good
long fiber from forest resources are very much scarce. Therefore to have a good
fiber blend, use of recovered fiber collected from imported sources (containing
soft wood long fiber) is the best long-term option. KPM is making their own
recovered fiber pulp by most sophisticated dinking technology. The recovered
paper is dinked to achieve pulp of high quality. The dinked pulp is made by
removing ink and impurities by mixing and processing through different
equipments. After drinking, multistage bleaching is done to get required level of
brightness.
2. PULP PREPARATION:
Pulp produced after bleaching is being supplied to paper machine. Dyes
are added along with other paper making additives to achieved desired visual
appearance. The end result is "furnish" pulp prepared for paper
machine use. The exact mix of various pulp, depends on the grade of paper being
produced.
3.
FORMING SECTION:
The conventional system of sizing of writing and printing paper is to
use Rosin and Alum at 4-5 pH range. This type of sizing is called
"acid" sizing which adversely affect the paper quality in terms of
paper age, longitivity and paper shade as well as strength and optical
properties. In order to overcome these problems, KPM has adopted alkaline
sizing in the line of World's latest development of paper sizing. In alkaline
sizing, as the name suggests the sizing of the paper is done under alkaline
conditions resulting improved paper quality, KPM paper is much better in
optical, physical properties along with more permanence and better bulk,
because of alkaline sizing and good recycled pulp use. The forming section is
where the fibers are formed into a web. Furnish is diluted with water to a
consistency of 1% fiber to 99% water. Delivery system spread the dilute mixture
on revolving belt-like screen, referred to as "wires " or
"forming fibers" by Paper Makers. Many details such as the speed of
the wire and the speed at which the pulp is delivered, are critical and closely
controlled. The Pulp fibers in the presence of water bond to other fibers. The
tendency of these fibers to form together in group is called
"flocculation". A great deal of sophisticated engineering is devoted
to keeping these fibers evenly dispersed until they are on the wire (screen)
and set is place. Success in doing this results in superior web
"formation". Excess water is removed to increase the consistency of
fiber mat from approximately 1% to 20% solids by the time it leaves the forming
section. Drainage is increased by using a variety of "de-watering
elements". This takes place in less than 2 seconds on modern paper
machines. Cultural grades of paper are generally manufactured at a final
moisture target of 4% to 6% range. As paper moves through the machine, water is
removed by pressing after the web leaves the forming section.
4. THE PRESS SECTION:
Pressing is done to remove water, compacts the web and improves
strength. A press section works by using felts and vacuum devices to remove
water.
5. THE DRYER SECTION:
The dryer section of paper machine is composed of one or more separately
driven and pressurized sections of dryers, which allow control over dryer
temperature and web tensions. Dryer felts support the sheet and maintain the
close contact between the sheet and the dryers to rapidly transfer heat from
the dryers to the web. The web enters the dryer sections containing
approximately 60% moisture and usually leaves at 4% to 6% moisture content. The
moisture varies depending on the efficiency of the press section (going into
the dryers) and specifications for the finished product (leaving the dryers).
The calendaring section of the paper machine gives the desired finish to
the web. Calendaring compacts the sheet and increases smoothness. A higher degree
of smoothness usually results in better printability. Calendar stacks consists
of smooth rolls of varying configurations. Items such as roll compositions,
whether or not steam is used in the rolls, the number of rolls and the types of
control over these rolls all vary from paper machine to paper machine. The
paper leaving from the calendar stack is wound into a large roll of paper
referred to as the "parent roll". Parent rolls are wound to the
specific diameter needed to produce subsequent "sets" of smaller
diameter reels to satisfy customer requirements.
Winders convert parent rolls into customer requested reels of specific
width and diameter. They also make the removal of defective paper possible, and
are designed to control the amount of tension wound into rolls.
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.46.25 |
|
UK Pound |
1 |
Rs.85.92 |
|
Euro |
1 |
Rs.68.11 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|