MIRA INFORM REPORT

Report Date :

31.10.2011

IDENTIFICATION DETAILS

Name :	KAYGEE-LOPAREX INDIA PRIVATE LIMITED (w.e.f 31.03.2005)
Formerly Known As :	KAYGEE PAPERS PRIVATE LIMITED
Registered Office :	B – 28, Bhukhanvala Chambers, 6^th Floor, Veera Industrial Estate, Off Link Road, Andheri (West), Mumbai - 400053, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	15.01.1997
Com. Reg. No.:	11-105130
Capital Investment/ Paid-up Capital:	Rs. 118.000 Millions
CIN No.: [Company Identification No.]	U21010MH1997PTC105130
TAN No.: [Tax Deduction & Collection Account No.]	MUMK06295C
PAN No.: [Permanent Account No.]	AAACK3962A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Release Liner.
No. of Employees:	150 (Approximately)

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 1234000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company with 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 good for normal 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered/ Corporate Office :	B – 28, Bhukhanvala Chambers, 6^th Floor, Veera Industrial Estate, Off Link Road, Andheri (West), Mumbai - 400053, Maharashtra, India
Tel. No.:	91-22-40305903
Fax No.:	91-22-26733928
E-Mail :	manishjain@kaygeeloparex.com
Website :	www.kaygeeloparex.com

DIRECTORS

As on 16.06.2011

Name :	Mr. Premchand Godha
Designation :	Director
Address :	1701/ 1702, Oberoi Sky Heights, Lokhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	08.01.1947
Date of Appointment :	18.07.2001
DIN No:	00012691

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24239MH1949PLC007837	IPCA Laboratories Limited	Managing director	01-04-08	31-10-75	-	Active	NO
2	U67120MH1981PTC024266	Kaygee Investments Private Limited	Director	20-04-81	20-04-81	-	Active	NO
3	U65990MH1939PLC145609	Vasant Investment Corporation Limited	Director	01-07-82	01-07-82	-	Active	NO
4	U65990MH1990PTC056242	Paranthapa Investments and Traders Private Limited	Director	18-04-90	18-04-90	-	Active	NO
5	U65990MH1990PTC056245	Gudakesh Investment and Traders Private Limited	Director	18-04-90	18-04-90	-	Active	NO
6	L74140MH1991PLC063709	Brescon Corporate Advisors Limited	Director	08-02-92	08-02-92	-	Active	NO
7	U21010MH1997PTC105130	Kaygee-Loparex India Private Limited	Director	18-07-01	18-07-01	-	Active	NO
8	U65993MH2006PTC164874	Brescon Finance Private Limited	Director	23-09-06	23-09-06	01-09-10	Active	NO
9	L65191PN1994PLC076333	Indusind bank limited	director	18-09-07	31-10-06	18-08-11	Active	NO
10	U85100MH2007PTC170959	Ipca Traditional Remedies Private Limited	Director	21-05-07	21-05-07	-	Active	NO
11	U24230GJ2011PLC065751	Prayas Bio Lifescience Limited	Director	06-06-11	06-06-11	-	Active	NO

Name :	Mr. Pauls C W Van Pinxteren
Designation :	Director
Address :	Mijlstraat 143, 5281 RL Boxtel – 5281, Netherlands
Date of Birth/Age :	26.09.1965
Date of Appointment :	01.06.2008
DIN No:	02214056

Name :	Mr. Michele William Apperson
Designation :	Director
Address :	758, The Preserve TRL, Chapel Hill NC, 275177688, United State of America
Date of Birth/Age :	20.05.1964
Date of Appointment :	01.06.2008
DIN No:	02213919

Name :	Mr. Pranay Premchand Godha
Designation :	Director
Address :	1701/ 1702, Oberoi Sky Heights, Lokhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	24.03.1972
Date of Appointment :	15.01.1997
DIN No:	00016525

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28129MH1985PTC035974	Nipra Packaging Private Limited	Director	26-02-96	26-02-96	31-08-09	Active	NO
2	U21010MH1997PTC105130	Kaygee-Loparex India Private Limited	Director	01-08-07	15-01-97	-	Active	NO
3	U24211MH1988PTC045776	Exon Laboratories Private Limited	Director	07-10-97	07-10-97	26-09-08	Active	NO
4	U24100MH1980PTC022105	Mexin Medicaments Private Limited	Director	26-03-99	26-03-99	18-12-08	Active	NO
5	L24239MH1949PLC007837	Ipca Laboratories Limited	Director	30-07-09	11-11-08	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.06.2011

Names of Shareholders (Equity Shares)	No. of Shares
Prem Chand Godha	7720
Pranay Godha	63270
Gudakesh Investments and Traders Private Limited, India	3250
Paranthapa Investments and Traders Private Limited, India	1250
Kaygee Investments Private Limited, India	213000
Loparex Holding B V, Netherland	540000
Pranay Godha Jointly Neetu Godha	250000
Prashant Godha	1510
Total	1080000

Names of Shareholders (Preference Shares)	No. of Shares
Pranay Godha	25000
Loparex Holding B V, Netherland	25000
total	50000

Equity Share Break up (Percentage of Total Equity)

AS ON 16.06.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Bodies corporate	20.10
Directors or relatives of Directors	29.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Release Liner.

Products :

Product Description	ITC Code No
Release Paper	48109900
Release Film	39209999

PRODUCTION STATUS AS ON 31.12.2010

Installed Capacity: 360 M.T per shift per annum (AMLI)

3000 M.T per shift per annum (ATHAL)

Particulars	Unit	Actual Production
S. C. / U. C. Paper	Kgs.	5454071.60
Film	Kgs.	436207.30

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

• Canara Bank, 67, Dhiraj Building, M G Road, Kandivli (West), Mumbai, Maharashtra, India Shifted to Canara Bank, Vile Parle (East), Mumbai - 400057, Maharashtra, India
• CITI Bank, India
• DHDFC Bank, India
• Kotak Mahindra Bank, India

Facilities :

Secured Loan	As on 31.12.2010 (Rs. in Millions)	As on 31.12.2009 (Rs. in Millions)
Canara Bank Cash Credit Against Equitable mortgage of Plot 29 and 30 at Athal, Silvassa and gala 1 and 2 at Amli, Silvassa and hypothecation of plant and machineries at Plot 29 and 30 at Athal, Silvassa and Gala 1 and 2 at Amil, Silvassa. (Above facilities [1(a),(b),(c)] are secured by second charge of entire assets at plot 31 at Athal, Silvassa and Personal guarantee of two directors.)	164.439	71.523
Citi Bank Term Loan Against equitable mortgage of Plot 31 at Athal, silvassa and hypothecation of plant and machineries at plot 31 at Amthal, Silvassa (The above facility is secured by second charge of all the assets at plot 29 and 30 at Athal, Silvassa and Gala 1 and 2 at Amil, Silvassa and personal guarantee of two directors)	68.250	89.250
Kotak Mahindra Bank Vehicle Loan (Against hypothecation of truck)	0.000	0.017
Total	232.689	160.790
Unsecured Loans	As on 31.12.2010 (Rs. in Millions)	As on 31.12.2009 (Rs. in Millions)
HDFC Bank Short term loan (WCDL) Against personal guarantee of two directors	50.000	0.000
Total	50.000	0.000

Banking Relations :	--
Auditors :
Name :	Jain and Kothari Chartered Accountants
Address :	43, Onlooker Building, Sir P. M. Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22663342
Mobile No.:	91-22-22660267
Fax No.:	jainbl@hotmail.com
PAN No :	AACFJ6082B
Entities where control exists:	Loparex Holding BV (Shareholder of the company)
Subsidiaries :	Loarex LLC Loparex HK Limited Loparex (Guangzhou) Paper Production Limited
Other Related Parties:	Nipra Industries Private Limited Jain Packaging Private Limited Khanvel Resorts Private Limited

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs. 100/- each	Rs. 110.000 Millions
100000	6% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 10.000 Millions
	Total		Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1080000	Equity Shares	Rs. 100/- each	Rs. 108.000 Millions
100000	6% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 10.000 Millions
	Total		Rs. 118.000 Millions

Note:

Terms of redemption 50% of aforesaid preference share to be redeem on or before expiry of five year from 07.01.2006 and balance 50% on or before expiry of six year form 07.01.2006. Since redeemed INR 5.000 Millions i.e. 50% as on 07.01.2011.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		118.000	118.000	98.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		190.541	141.046	103.969
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		308.541	259.046	201.969
LOAN FUNDS
1] Secured Loans		232.689	160.790	171.105
2] Unsecured Loans		50.000	0.000	0.000
TOTAL BORROWING		282.689	160.790	171.105
DEFERRED TAX LIABILITIES		22.412	20.558	10.998
TOTAL		613.642	440.394	384.072
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		247.603	248.821	81.653
Capital work-in-progress and Capital Advances		4.295	14.140	91.132
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	172.830	84.271	57.872
	Sundry Debtors	154.018	104.652	87.294
	Cash & Bank Balances	5.476	2.264	75.124
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	117.060	89.393	47.430
Total Current Assets		449.384	280.580	267.720
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	61.938	70.270	30.272
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	25.702	32.877	26.161
Total Current Liabilities		87.640	103.147	56.433
Net Current Assets		361.744	177.433	211.287
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		613.642	440.394	384.072

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income	806.702	513.889	394.650
		Other Income	11.534	10.704	1.802
		TOTAL (A)	818.236	524.593	396.452
Less	EXPENSES
		Material consumed and inventory adjustment	527.037	323.830	238.428
		Manufacturing and other costs	124.075	76.714	50.662
		Personnel cost	45.971	34.894	24.084
		TOTAL (B)	697.083	435.438	313.174
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		121.153	89.155	83.278
Less	INTEREST AND FINANCIAL EXPENSES (D)		25.860	14.071	18.360
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		95.293	75.084	64.918
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.780	18.030	9.200
	PROFIT BEFORE TAX (E-F) (G)		69.513	57.054	55.718
Less	TAX (H)		19.317	19.274	14.358
	PROFIT AFTER TAX (G-H) (I)		50.196	37.779	41.360
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		131.046	93.968	38.258
Less	APPROPRIATIONS
		Preference share dividend	0.600	0.600	0.600
		Tax on Dividend	0.101	0.101	0.101
	BALANCE CARRIED TO THE B/S		180.541	131.046	93.969
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	426.961	210.702	137.066
		Commission Earnings	1.642	0.232	0.000
	TOTAL EARNINGS		428.603	210.934	137.066
	IMPORTS
		Raw Materials - Imported	406.606	230.864	169.343
		Raw Materials - Highseas	20.360	16.012	2.187
		Consumables (Purchase)	1.951	0.640	0.114
		Coating Machine	0.769	1.598	0.000
		Testing Machine	0.000	0.000	1.013
		Tools and Equipment	0.000	0.000	0.030
		Repairs – Machine	0.027	0.138	0.000
		Sliting Machine	0.000	24.325	0.029
	TOTAL IMPORTS		429.713	273.577	172.716
	Earnings Per Share (Rs.)		45.83	40.66	64.62

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	6.13	7.20	10.43
Net Profit Margin (PBT/Sales)	(%)	8.61	11.10	14.05
Return on Total Assets (PBT/Total Assets}	(%)	9.91	10.78	15.95
Return on Investment (ROI) (PBT/Networth)		0.22	0.22	0.28
Debt Equity Ratio (Total Liability/Networth)		1.20	1.02	1.13
Current Ratio (Current Asset/Current Liability)		5.12	2.72	4.74

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered Office of the company has been shifted from 35-J, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, Mumbai, India to present address w.e.f 14.07.2010

Management Discussion and Analysis  

Sales

Net sales have been increased by 55.98% and profit before depreciation, interest and Tax (PBIDT) has increased by 35.89% as compared to previous year. During the year, the Raw material cost has increased compare to last year, putting pressure on margins.

Preference Shares and Dividend

As per the term of issue, the company has redeemed on 06^th January 2011, 50000 6% Redeemable Preference Shares of INR 100/- each at par by paying off preference shareholders.

1) Directors recommended that interim dividend already paid at the rate of 6% out of current year’s profit on 100,000 6% redeemable cumulative preference shares of Rs. 100/- each absorbing INR 0.701 Millions (including dividend tax), be confirmed as final dividend.

2) Directors do not recommend any dividend on equity shares to conserve resources of the company.

CONTINGENT LIABILITY

Rs. In Millions

Particulars	31.12.2010	31.12.2009	31.12.2008
Bills Discounted with Bank	10.226	14.696	7.752
Since Realised	10.226	14.696	5.417

Bankers Charges Report as per Registry

Corporate identity number of the company	U21010MH1997PTC105130
Name of the company	KAYGEE-LOPAREX INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B – 28, Bhukhanvala Chambers, 6^th Floor, Veera Industrial Estate, Off Link Road, Andheri (West), Mumbai - 400053, Maharashtra, India Email: manishjain@kaygeeloparex.com
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	90158813
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Canara Bank, 67, Dhiraj Building, M G Road, Kandivli (West), Mumbai, Maharashtra, India Shifted to Canara Bank, Vile Parle (East), Mumbai - 400057, Maharashtra, India Email: vlaxman@vsnl.com
Nature of instrument creating charge	a) Supplemental Collateral Security Agreement. b) Supplemental Agreement. (Collectively constitute a single charge for Rs. 211.500 Millions)
Date of instrument Creating the charge	27.10.2010
Amount secured by the charge	Rs. 211.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest as may be stipulated by the Bank from time to time. Terms of Repayment: On Demand Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The following credit facilities, together with interest, costs, charges, expenses and other monies due and payable thereunder shall be secured against the property specified.
Short Particulars of the property or assets charged	The whole of the Borrower's present and future stocks of Raw materials Goods in process of manufacture and all articles such as Silicone Coated paper together with All of the Borrower's present and future book debts, outstanding monies, receivables, claims, Bills, rights to or in movable properties Hypothecation of all plant and machinery and fixed assets both existing and to be acquired by the Company from time to time.
Date of Last Modification prior to the present modification	24.06.2010
Particulars of the present modification	The Bank having at the request of the Company has increased the credit facilities from Rs. 181.500 Millions to Rs. 211.500 Millions.

Fixed assets

· Plant and Machinery

· Office and Other Equipments

· Furniture and Fixtures

· Computer

· Vehicles

· Land

· Building/Premises

· Residential Flat

· Intangible asset

· Cycle

· Truck

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. 48.82
UK Pound	1	Rs. 78.56
Euro	1	Rs. 69.28

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	YES
--AFFILIATION	YES/NO	YES
--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.