MIRA INFORM REPORT

Report Date :

12.09.2011

IDENTIFICATION DETAILS

Name :	KULODAY TECHNOPACK PRIVATE LIMITED
Registered Office :	25, Sona Udyog Industrial Estate, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.07.1995
Com. Reg. No.:	11-90795
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U25202MH1995PTC090795
TAN No.: [Tax Deduction & Collection Account No.]	MUMK12625E
PAN No.: [Permanent Account No.]	AAACK3957H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Plastic Polythene Bags.
No. of Employees :	150 (In office – 10, In factory – 140) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 90000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported 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 – 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 DECLINED BY

Name :	Ms. Afnia
Designation :	Accounts Department

LOCATIONS

Registered Office :	25, Sona Udyog Industrial Estate, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-28387113/ 14
Fax No.:	91-22-66994884
E-Mail :	info@kuloday.com
Website :	http://www.kuloday.com
Area :	3000 Sq. ft.
Location :	Owned by Group Companies
Factory :	597/ 1B and 644/24, Agrawal Industrial Estate, Opposite Somnath Temple, Dabel, Daman (UT) 396210, India
Tel. No.:	91-260-2243003/ 2243870
E-Mail :	sales@kuloday.com
Area :	15000 Sq. ft.
Location :	Owned

DIRECTORS

As On : 16.08.2010

Name :	Mr. Krishna Kumar Prahladrai Chokhani
Designation :	Director
Address :	25 Sona Udyog Industrial Estate, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Date of Birth/Age :	12.11.1952
Qualification :	BSC
Date of Appointment :	26.09.2001
DIN No :	02795632
Name :	Mr. Arun Kumar Prahladrai Chokhani
Designation :	Director
Address :	25 Sona Udyog Industrial Estate, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Date of Birth/Age :	24.06.1961
Qualification :	B. Com
Date of Appointment :	19.07.1995
DIN No :	01718048

\

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.08.2010

Names of Shareholders	No. of Shares
Mataji Kulodki	12
Arun Kumar Prahladrai Chokhani	218988
Krishna Kumar Prahladrai Chokhani	230988
Chokhani Geetadevi Prahladrai	12
Manju Arunkumar Chokhani	210000
Pushpadevi Kishankumar Chokhani	152940
Arunkumar Chokhani (HUF)	63000
Chokhani Kishanuamar (HUF) Prahladrai	81000
Anuj Arunkumar Chokhani	135000
Sunil Kishankumar Chokhani	252000
Ankit Arunkumar Chokhani	123000
Ruchita Kishankumar Chokhani	60
Shikha Sunilkumar Chokhani	33000
Total	1500000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Plastic Polythene Bags.
Products:	· Bags on Roll · Refuse Sacks · Shopping Bags
Exports :
Products :	Plastic Polythene Bags
Countries :	· United Kingdom · Germany · Netherlands
Imports :
Products :	· Raw Materials
Countries :	· United Kingdom · Germany
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and Dealers

No. of Employees :

150 (In office – 10, In factory – 140) (Approximately)

Bankers :

• Bank of India, Malad (West) Branch, Opposite Natraj Market, S V Road, Malad (West), Mumbai – 400 064, Maharashtra, India

• State Bank of India, JNPT Branch
• HDFC Bank

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Bank of India (Schedule Bank)
Against Hypothecation of Book Debts and Stock	48.842	21.769
Against Hypothecation of Machinery	37.699	13.923
Against Hypothecation of Car	0.845	0.103
Total	87.386	35.795
Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Loan From director and There Relatives	32.573	17.299
Citi Bank	0.000	0.066
Total	32.573	17.365

Banking Relations :

Satisfactory

Auditors :

Name :

Banka and Banka

Chartered Accountants

Address :

204, B, Anupam Apartments, Opposite Rationing Office, S V Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Tel No.:

91-22-28896585/ 28831244/ 28813125/ 28829966/ 28829967/ 28829968

Fax No.:

Extension 15

Email :

info@bankabanka.com

bankabanka@rediffmail.com

Website :

http://www.bankabanka.com

Group Companies:

· Kuloday Converters

· Kuloday Udyog

· Kuloday Packaging (India) Limited

· Kuloday Packaging Products

· Multiudyog

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15,00,000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
15,00,000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Note :

• The Company allotted 10,00,000 equity shares as fully paid up bonus shares by capitalisation of profits transferred from Profit and Loss account amounting to Rs. 75,80,300/- and by utilization of Balance in Share Premium Account , pursuant to a shareholders’ resolution passed at the Extra Ordinary General Meeting on 19/03/2010. Allotment against the same been made on 19/03/2010.

• The Authorised Share Capital was increased to 15,00,000 equity shares of Re.10 each pursuant to a shareholders’ resolution passed at the Extra Ordinary General Meeting on 18/02/2010.

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		15.000	2.100	2.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.742	14.753	12.489
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22.742	16.853	14.589
LOAN FUNDS
1] Secured Loans		87.386	35.795	21.728
2] Unsecured Loans		32.573	17.365	11.221
TOTAL BORROWING		119.959	53.160	32.949
DEFERRED TAX LIABILITIES		2.654	1.843	1.498
TOTAL		145.355	71.856	49.036
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		56.592	29.720	14.681
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.500	0.500	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	52.323	16.897	17.891
	Sundry Debtors	42.691	25.221	24.809
	Cash & Bank Balances	10.402	3.670	5.244
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.813	13.868	4.156
Total Current Assets		131.229	59.656	52.100
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.824	0.000	0.251
	Sundry Creditors	41.497	17.188	17.710
	Provisions	0.715	0.832	0.284
Total Current Liabilities		43.036	18.020	18.245
Net Current Assets		88.193	41.636	33.855
MISCELLANEOUS EXPENSES		0.070	0.000	0.000
TOTAL		145.355	71.856	49.036

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	209.174	172.802	114.049
		Other Income	0.353	0.059	0.376
		TOTAL	209.527	172.861	114.425
Less	EXPENSES
		Office Expenses
		Administrative Expenses	197.951	165.637	108.563
		Advertising Expenses
		TOTAL	197.951	165.637	108.563
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		11.576	7.224	5.862
Less	FINANCIAL EXPENSES		4.530	3.283	2.832
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.046	3.941	3.030
Less/ Add	DEPRECIATION/ AMORTISATION		2.659	0.986	0.826
	PROFIT BEFORE TAX (E-F)		4.387	2.955	2.204
Less	TAX		1.397	0.666	0.735
	PROFIT AFTER TAX		2.990	2.289	1.469
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.333	10.041	9.623
Less	Bonus Shares Issued		7.580	NA	1.050
	BALANCE CARRIED TO THE B/S		7.743	12.330	10.042
	Total EARNINGS IN FOREIGN CURRENCY		120.809	87.108	NA
	Earnings Per Share (Rs.)		5.69	10.90	7.00

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.43	1.33	1.93
Net Profit Margin (PBT/Sales)	(%)	2.10	2.01	1.93
Return on Total Assets (PBT/Total Assets}	(%)	2.34	3.88	3.28
Return on Investment (ROI) (PBT/Networth)		0.19	0.21	0.15
Debt Equity Ratio (Total Liability/Networth)		7.28	4.22	3.51
Current Ratio (Current Asset/Current Liability)		3.04	3.31	2.86

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U25202MH1995PTC090795
Name of the company	KULODAY TECHNOPACK PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	25, Sona Udyog Industrial Estate, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge) Others
Particular of charge holder	Bank of India Address : Malad (West) Branch, Opposite Natraj Market, S V Road, Malad (West), Mumbai – 400 064, Maharashtra, India E-Mail: mladw.MumbaiNorth@bankofindia.com
Nature of instrument creating charge	Agreement of Term Loan and Hypothecation of movable assets/goods/property/plant & machinery
Date of instrument Creating the charge	22.03.2010
Amount secured by the charge	Rs.20.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 0.25% p.a. below BPLR subject to a minimum of 11.75% p.a. or at such other rate/s of interest as may be notified by the Bank from time to time. Terms of Repayment : 59 monthly EMIs of Rs.0.333 million each commencing from 4 months from date of disbursement and last (i.e.60th) installment being of Rs.0.353 million Margin : As specified by the Bank from time to time. Extent and Operation of the charge : The hypothecated goods are hypothecated and charged as aforesaid as security for due repayment by the borrower to the Bank at Malad (West) of the said loan of Rs.20.000 Millions by the installments on the days and in the manner aforesaid together with all interest due and payable thereon (including compound interest and additional interest payable hereunder) and also for all costs, charges and expenses) the legal cost being between Advocate and client) incurred. Other : by the Bank for the protection, defense and perfection of this security and for attempted or actual realization thereof and for any commission that the Bank may pay to any Corporation or company or authority in respect of any guarantee the said corporation or company or authority may have given or may give to the Bank in respect of the said loan and for recovery of all moneys due hereunder by the borrower to the Bank and hereby secured or expressed so to be.
Short Particulars of the property charged	1) Hypothecation and charge by way of first charge to and in favour of Bank of all movable Assets/Goods/ property/ Plant and Machinery together with all accessories 2) stores and spares relating there to, now belonging or hereafter to belong to the Borrower (both present and future) or being in or upon or about the Borrowers factory buildings or other premises 3) and godowns at Daman or wherever else the same may be.

TRADE REFERENCES:

· Equate Petrochemicals – Kuwait

WEBSITE DETAILS:

PROFILE:

Since 1975, Kuloday Groups of Industries has been committed to providing the finest polythene products in virgin and recycled quality. The group is family-owned professionally managed. The management strives to build a strong, stable and sustainable supply chain. The company works with all the key players in the supply-chain to provide new and innovative products to its customers. Innovation through research for providing better, cost effective products with just about the perfect specifications to its customers is the objective of the company. As one of their friends in industry puts it ‘It is not just a plastic bag, it is a concept they sell. The concept involves years of experience and hard work’. They can offer products in 100% recycled as well as prime virgin polythene material (LLDPE/LDPE/MDPE/HDPE/Metallocene).

The group deals in a wide range of polythene products ranging from garbage bags, bespoke printed shopping bags to food grade bags. With ambitious expansion projects and new investments underway the group is set to become the largest exporter of polythene products in India. The plants are designed on the basis of lean principles, with special attention given to details and every employee is empowered with the task maintaining the quality of products.

Subject is the manufacturers and exporters of quality polythene bags and sheets in India. It is a part of Kuloday Group of Industries, which is in plastic processing industry since last thirty years. It is an ISO 9001:2008 certified and CRISIL rated company. It is ‘A Govt. of India recognized Star Export House', exporting polythene products to UK, other Europe, USA, Australia and African markets. The company has a good customer base in export and local domestic markets. It has world-class state of art, automatic high speed plants for bags. The company can offer 100% (post-consumer/industrial) recycled material as well as prime virgin material. The recycled products of the company have rapidly gained acceptance with councils, cleaning companies and hotel industry. While the range of consumer products has been widely appreciated by the retailers and importers across Europe, as well as to the other global markets. The products of company are also widely accepted by retail chains and do-it-yourself stores for selling on shelf (in form of bag-on-roll and take away packaging).

MANAGEMENT:

The management is committed to giving the best performance. The management consists of some of the most experienced individuals in the industry, as well as young qualified enthusiast. The management of the company travels extensively and are well regarded The management also shares good personal relationship

Krishnakumar Chokhani (Chairman) (Bachelor of Science (Chemistry), St. Xavier’s College) Age: 56 years

He has an experience of more than 35 years in plastic extrusion, bag making and reprocessing industry. He is a person with a strong communication and analytical skills. He has acumen of managing unstructured situation with his commercial and technical abilities; this along with his huge experience helps him to guide the group.

Arunkumar Chokhani (Managing Director) (Bachelor of Commerce, HR) Age: 48 years

He has an experience of more than 25 years in the plastic extrusion, bag making and reprocessing industry. He has a great team building and leadership skills. His strong financial knowledge and along with detailed understanding of cost structure helps the company to reduce its overheads. He also looks after the purchasing of company.

S.K.Chokhani (Head of Operations) (B.COM, NM and PGDBM, Chetnas Institute of Management) Age: 31 years

He has an experience of more than 10 years in the plastic industry. His ability to give attention to details and know-how of the complex conditions of manufacturing in India helps the company to carry out the operations efficiently.

Anuj Chokhani (Marketing head) (Bachelor of Engineering (Chemical), D.J. Sanghvi College of Engineering and MSc in International Technology Management, Warwick Manufacturing Group, University of Warwick) Age: 23 years

He has joined the company last year. He is responsible for the marketing as well as new product development. He is also responsible for implementing lean and other TQM principles.

Ankit Chokhani (Bachelor of Engineering (Information Technology), D.J. Sanghvi College of Engineering and Pursing FMB at S.P. Jain Institute of Management and Research) Age:22 years.

He has recently joined the company. He looks at making the job of the management easy through new software applications. He looks forward to develop new domestic markets for the company.

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.46.38
UK Pound	1	Rs.74.01
Euro	1	Rs.64.48

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.