MIRA INFORM REPORT

Report Date :

13.01.2011

IDENTIFICATION DETAILS

Name :	KRISHNA POLY PACKS PRIVATE LIMITED
Registered Office :	H. No. 353, Plot No. 15, Phase 1, Kamalpuri Colony, Sri Nagar Colony Post, Hyderabad – 500073, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.08.1983
Com. Reg. No.:	07-4081
CIN No.: [Company Identification No.]	U24134AP1983PTC004081
TAN No.: [Tax Deduction & Collection Account No.]	HYDK02585C
PAN No.: [Permanent Account No.]	AAACK8302N
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers of HDPE / PP Woven Sacks.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 417000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION DENIED BY

Management is Non Co-operative

LOCATIONS

Registered Office :	H. No. 353, Plot No. 15, Phase 1, Kamalpuri Colony, Sri Nagar Colony Post, Hyderabad – 500073, Andhra Pradesh, India
Tel. No.:	91-40-23740391
Fax No.:	91-40-23747641
E-Mail :	hyd1_polypack@sancharnet.in k.polypacks@yahoo.co.in

DIRECTORS

As on 31.07.2010

Name :	Mr. Kakarlal Rajendra Prasad
Designation :	Director
Address :	8-3-669/10/6-No. 793, Model Progressive Colony, yellareddyguda, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	15.07.1954
Date of Appointment :	26.02.1988
Name :	Mr. Kosaraju Venkatapurna Chandra Rao
Designation :	Director
Address :	Advocate English Pacem, Machilipatnam, Krishna – 521001, Andhra Pradesh, India
Date of Birth/Age :	03.07.1922
Date of Appointment :	26.02.1988
Name :	Mr. Maganti Murali
Designation :	Director
Address :	8-3-823/8, Phase – 1, Kamalapuri Colony, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	14.08.1955
Date of Appointment :	01.02.1995
Name :	Mr. Pinnamanenin Sahityavani
Designation :	Director
Address :	Rudrapaka, Nandiwada Mandal, Krishna – 521326, Andhra Pradesh, India
Date of Birth/Age :	23.06.1963
Date of Appointment :	01.11.2005
Name :	Pinnamaneni Mallikarjuna Rao
Designation :	Director
Address :	H. No. 8-3-293/82/NL, Plot No. 3/3, MLA Colony, Road No -10, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	15.08.1966
Date of Appointment :	01.11.2005
Name :	Mr. Pinnamaneni Veerayya Chowdary
Designation :	Director
Address :	Rudrapaka, Nandiwada Mandal, Krishna – 521326, Andhra Pradesh, India
Date of Birth/Age :	05.01.1956
Date of Appointment :	01.11.2005
Name :	Mr. Pinnamaneni Suresh
Designation :	Director
Address :	Nalla Bandagudeh, Kodad Mandal, Kodad, Nalgunda – 508206, Andhra Pradesh, India
Date of Birth/Age :	10.11.1964
Date of Appointment :	01.03.2002
Name :	Mr. Maganti Bijli Kumari
Designation :	Director
Address :	8-3-823/8, Phase – 1, Kamalapuri Colony, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	10.06.1958
Date of Appointment :	17.08.1983

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.07.2010

Names of Shareholders	No. of Shares
P. Venkateswara Rao	14065
M. Bijli Kumari	3650
P. Mallikarjuna Rao	14635
P. Suresh	14465
P. Veerayya Chowdary	14275
M. Satya Prasad	10100
K. Rajendra Prasad	10350
K. Punnamma	3090
M. Murali	16260
K. Uma Poornima	2050
K. V. Purnachandra Rao	3700
K. Sudhakar	2710
K. Swaroopa Rani	5010
B.L. Suma	2350
Y. Ratnamamba	2490

Category	Percentage
Directors or relatives of Directors	95.00
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of HDPE / PP Woven Sacks.

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

State Bank of Hyderabad

6-3-652, Kautilya, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Term Loans :
From State Bank of Hyderabad (Secured by first mortgage and change on all the immovable and movable fixed assets and guaranteed by five directors of the company)	31.185	42.921
Working Capital Loans :
From State Bank of Hyderabad (On the hypothecation of stocks and book debts and further secured by second charge on fixed assets and guaranteed by five directors of the company)	23.319	28.885
Total	54.504	71.806
Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Sales Tax deferment	16.190	16.191
From Directors	1.746	0.746
From Shareholders	9.557	5.028
Total	27.493	21.964

Banking Relations :	--
Auditors :
Name :	P.V.R. K. Nageswara Rao and Company Chartered Accountant
Address :	Khairatabad, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-23311609 / 23312269
Fax No.:	91-40-23319591
E-Mail :	pvrk@pvrk.com

CAPITAL STRUCTURE

As on 31.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
175000	Equity Shares	Rs.100/- each	Rs.17.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
141000	Equity Shares	Rs.100/- each	Rs.14.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		14.100	14.100	13.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		90.198	87.512	72.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		104.298	101.612	86.352
LOAN FUNDS
1] Secured Loans		54.504	71.806	95.656
2] Unsecured Loans		27.493	21.965	20.163
TOTAL BORROWING		81.997	93.771	115.819
DEFERRED TAX LIABILITIES		20.261	23.098	24.343
TOTAL		206.556	218.481	226.514
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		118.346	122.080	134.725
Capital work-in-progress		0.653	0.302	0.000
INVESTMENT		11.142	18.223	10.013
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.148	19.961	28.873
	Sundry Debtors	34.109	17.528	33.719
	Cash & Bank Balances	0.932	37.345	0.633
	Other Current Assets	0.167	0.166	0.133
	Loans & Advances	15.913	14.810	27.099
Total Current Assets		86.269	89.810	90.457
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.071	8.685	6.379
	Other Current Liabilities	0.006	0.505	0.000
	Provisions	3.777	2.744	2.302
Total Current Liabilities		9.854	11.934	8.681
Net Current Assets		76.415	77.876	81.776
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		206.556	218.481	226.514

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	377.469	365.893	354.747
		Other Income	3.228	2.936	3.035
		TOTAL (A)	380.697	368.829	357.782
Less	EXPENSES
		Raw Materials Consumed	291.173	277.491	274.199
		Manufacturing Expenses	33.574	26.644	25.114
		Salaries, Wages and other allowances to staff	10.274	9.419	8.419
		Other Expenses	19.712	11.132	10.368
		Increase / (Decrease) in Stocks	(9.891)	0.236	(0.504)
		TOTAL (B)	344.842	324.922	317.596
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.855	43.907	40.186
Less	FINANCIAL EXPENSES (D)		7.024	8.954	10.372
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.831	34.953	29.814
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.213	16.884	14.779
	PROFIT BEFORE TAX (E-F) (G)		11.618	18.069	15.035
Less	TAX (I)		6.466	6.418	5.356
	PROFIT AFTER TAX (G-I) (J)		5.152	11.651	9.679
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		70.137	61.877	55.031
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	1.000	1.000
		Dividend	2.115	2.044	1.567
		Tax on Dividend	0.351	0.347	0.266
	BALANCE CARRIED TO THE B/S		71.823	70.137	61.877
	TOTAL IMPORTS		5.290	4.594	0.000
	Earnings Per Share (Rs.)		36.54	85.51	74.12

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.35	3.16	2.70
Net Profit Margin (PBT/Sales)	(%)	3.08	4.94	4.24
Return on Total Assets (PBT/Total Assets}	(%)	5.68	8.53	6.68
Return on Investment (ROI) (PBT/Networth)		0.11	0.18	0.17
Debt Equity Ratio (Total Liability/Networth)		0.88	1.04	1.44
Current Ratio (Current Asset/Current Liability)		8.75	7.52	10.42

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Dues of Micro and Small Enterprises	0.000	0.037	0.000
Dues other than Micro and Small Enterprises	6.071	8.648	6.379
Total	6.071	8.685	6.379

FINANCIAL RESULTS :-

During the year, the company achieved a turnover of Rs.409.800 Millions as against Rs.413.700 Millions in the previous year.

During the year, the company earned a profit of Rs.28.830 Millions before providing for depreciation of Rs.17.213 Millions. The directors feel that the company will improve further in the future years.

CHANGE OF ADDRESS :-

Registered office of the company has been shifted from 8-2-293/D/4, Indiranagar, Jubilee Hills, Hyderabad, Andhra Pradesh, India to the present address w.e.f. 04.05.2006

FORM 8:-

This form is for	Modification of charge
Charge identification number of the modified	80001107
Corporate identity number of the company	U24134AP1983PTC004081
Name of the company	KRISHNA POLY PACKS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	H. No. 353, Plot No. 15, Phase 1, Kamalpuri Colony, Sri Nagar Colony Post, Hyderabad – 500073, Andhra Pradesh, India
Type of charge	Book Debts Immovable Property Movable Property
Particular of charge holder	State Bank of Hyderabad 6-3-652, Kautilya, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
Nature of description of the instrument creating or modifying the charge	1) Supplemental Agreement of loan for increase in the overall limit 2) Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit 3) Letter regarding the grant of individual limits within the overall limit 4) Memorandum of Deposit of Title Deeds 5) Copy of Sanction Letter
Date of instrument Creating the charge	21.12.2009
Amount secured by the charge	Rs.157.100 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 1) on Cash Credit (Hyp), Term Loan -I, II,III and IV at 1.50% below SBHPLR , present rate 11.50% p.a 2) on Term Loan-V, 2.00% below SBHPLR and Term Loan -VI at 1.50% below SBHPLR i.e 10.75% p.a Terms of Repayment : 1) Working Capital limit is repayable on demand. 2) No change in the repayment schedule of existing term loan - I, II, III and IV 3) Term Loan - V the repayment period reduced from the balance 23 quarterly installments to 12 quarterly installments with out pre-payment penalty 4) Term Loan -VI repayable in 20 quarterly installments of Rs.60.000 Millions each from quarter ending June 2010. Margin : 1) On Raw Materials, Stock-in-process, and Finished goods at 25% 2) On Book Debts/Receivables at 50% 3) On Land and Buildings/Plant and Machinery at 25% Extent and Operation of the charge : The charge operates as a continuing charge on the property charged until repayment of the entire credit facilities sanctioned by the bank.
Short particulars of the property charged	1) Hypothecation of all the stocks receivables and other current assets both present and future. 2) First charge on all the fixed assets of the company both present and future. 3) Extension of existing equitable mortgage of a) Land admeasuring 52 cents situated in Sy.No.388/A and Land admeasuring 1Acre13 Cents in Sy.No.388/AA at Chimiryal (V), Kodad (M), Nalgonda Dist. 4) Land admeasuring 2 Acres 13 cents in Sy.No.234 situated at Karuvantha (V), Veerakeralam Pudur Tq, Tirunalveli Dist of Tamilnadu along with structures thereon. 5) Land admeasuring 1.81 acres (91cents) in Sy.No.310/9A and 90 cents in Sy.No.310/9B situated at Navaneeta Krishnapuram, Veerakeralam Pudur Tq, Tirunelvelli Dist, Tamilnadu along with structures.
Particulars of the present modification	The existing limits of Rs.145.100 Millions increased to Rs.157.100 Millions by Sanction of Term Loan -VI of Rs.12.000 Millions. The limits consisting of 1) Cash Credit (HyP) Limit of Rs.42.500 Millions (Letter of Credit as Sub-Limit of Rs.10.000 Millions) 2) Term Loan-I Rs.3.300 Millions 3) Term Loan -II Rs.15.000 Millions 4) Term Loan -III Rs.23.300 Millions 5) Term Loan -IV Rs.34.000 Millions 6) Term Loan -V Rs.27.000 Millions and 7) Term Loan - VI Rs.12.000 Millions.

FIXED ASSETS :-

• Land
• Buildings
• Plant and Machinery
• Electrical Installation
• Water Works
• Office Equipment
• Furniture and Fixtures
• Factory Equipment
• Vehicles
• Computers

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.45.16
UK Pound	1	Rs.70.64
Euro	1	Rs.58.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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