MIRA INFORM REPORT

Report Date :

15.02.2012

IDENTIFICATION DETAILS

Name :	KANODIA TECHNOPLAST LIMITED [w.e.f. 16.12.2009]
Formerly Known As :	KANODIA TECHNOPLAST PRIVATE LIMITED
Registered Office :	A- 54, Wazirpur Industrial Area, New Delhi-110052
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.04.1995
Com. Reg. No.:	55-067544
Capital Investment/ Paid-up Capital:	Rs.97.860 Millions
CIN No.: [Company Identification No.]	U74899DL1995PLC067544
TAN No.: [Tax Deduction & Collection Account No.]	DELK03431B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Flexible Packaging Material.
No. of Employees:	Approximately (101-500)

RATING & COMMENTS

MIRA’s Rating :

Ba ( 47)

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

Maximum Credit Limit :	USD 1500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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 – 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 Office/ Factory :	A-54, Wazirpur Industrial Area, New Delhi-110052, India
Tel. No.:	91-11-27373071/43274274 (20 Lines)
Fax No.:	91-11-27373072/43274275
E-Mail :	vivek@kanodiaindia.com
Website:	http://kanodiaindia.com

DIRECTORS

AS ON 25.08.2011

Name :

Mr. Chetan Keshav Dev Kanodia

Designation :

Director

Address :

A-213, Kewal Park, Azadpur, Delhi-110033, India

Date of Birth/Age :

24.12.1952

Date of Appointment :

20.04.1995

Din No.:

00713513

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1995PLC067544	KANODIA TECHNOPLAST LIMITED	Managing director	24-05-11	20-04-95	Active	NO
2	U28113DL2007PTC168297	DLK DESIGNS PRIVATE LIMITED	Additional director	11-07-11	07-01-11	Active	NO

Name :

Mrs. Meenu Chetan Kanodia

Designation :

Director

Address :

A-213, Kewal Park, Azadpur, Delhi-110033, India

Date of Birth/Age :

20.07.1955

Date of Appointment :

20.04.1995

Din No.:

00688289

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1995PLC067544	KANODIA TECHNOPLAST LIMITED	Whole-time director	01-07-11	20-04-95	Active	NO

Name :

Mr. Ashok Kumar

Designation :

Director

Address :

366, Sector 15 A, Noida, India

Date of Appointment :

19.09.2009

Din No.:

02788486

Name :

Mr. Subhash Chand Gupta

Designation :

Director

Address :

1203-4, Gurusmruddhi Heights, Palm Beach Road, Sanpada, Navi Mumbai-400705, Maharashtra, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.08.2011

Names of Shareholders	No. of Shares
Chetan Keshav Dev Kanodia	4639600
Meenu Chetan Kanodia	2607815
Chetan Keshav Dev Kanodia and Sons HUF	2153113
Keshav Dev Kanodia	35
Dhruv Chetan Kanodia	385000
Kavita Rakesh Gupta	35
Kanodia and Sons HUF	402
Total	9786000

AS ON 25.08.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	77.99
Other top fifty shareholders	22.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Flexible Packaging Material.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Actual Production (Qty. KG)
Pouches of Plastic	707419.000
Laminated Film (Ptd Paper with Aluminium Foil)	32806.000
Waste and Scrap – Plastic	676648.335
Printing Cylinder	7413.000
Wastage Copper Mix	2975.700
Packaging Films	7429348.610

GENERAL INFORMATION

No. of Employees :

Approximately (101-500)

Bankers :

• State Bank of Patiala, Commercial Branch, Chandralok Building, 36, Janpath, New Delhi – 110001, India
• Punjab and Sind Bank, IFB, B Block, Connaught Place, New Delhi, India
• Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi – 110002, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	166.058	198.792
Working capital loans	268.035	165.679
Loans taken for vehicles	7.659	7.841
Total	441.752	372.312
Unsecured Loan
Other Debts	221.738	45.194
Total	221.738	45.194

Banking Relations :	--
Financial Institution:	Tata Capital Limited, One Forbes, Dr. V.B. Gandhi Marg, Fort, Mumbai-400001, Maharashtra, India
Auditors :
Name :	Raj Kumar and Associates Chartered Accountant
Address :	4435/7, Ansari Road, Darya Ganj, New Delhi-110002, India
Tel. No.:	91-11-41563091/ 94
Fax No.:	91-11-41563095
E-Mail :	rajkumarg_ca@yahoo.co.in
Pan No.:	AAAFR9008B

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9786000	Equity Shares	Rs.10/- each	Rs.97.860 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		97.860	97.860	27.960
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		300.812	250.545	249.384
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		398.672	348.405	277.344
LOAN FUNDS
1] Secured Loans		441.752	372.312	236.849
2] Unsecured Loans		221.738	45.194	41.028
TOTAL BORROWING		663.490	417.506	277.877
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1062.162	765.911	555.221
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		449.682	503.692	444.710
Capital work-in-progress		172.253	0.000	0.000
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	122.184	91.907	70.517
	Sundry Debtors	303.190	241.875	159.042
	Cash & Bank Balances	4.355	2.545	6.153
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	82.853	29.877	20.929
Total Current Assets		512.582	366.204	256.641
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.998	82.490	10.447
	Other Current Liabilities	7.160	5.479	124.933
	Provisions	21.830	16.480	10.850
Total Current Liabilities		72.988	104.449	146.23
Net Current Assets		439.594	261.755	110.411
MISCELLANEOUS EXPENSES		0.533	0.364	0.000
TOTAL		1062.162	765.911	555.221

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1579.595	1237.797	923.923
		Other Income	20.193	18.529	3.930
		TOTAL (A)	1599.788	1256.326	927.853
Less	EXPENSES
		Consumption Materials Changes Inventories	1166.302	902.790
		Manufacturing Services Cost	243.302	170.487	812.414
		Employee Related Expenses	13.382	10.186
		Administrative Selling and Other Expenses	24.693	14.721
		TOTAL (B)	1447.679	1098.184	812.414
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		152.109	158.142	115.439
Less	FINANCIAL EXPENSES (D)		54.067	46.458	24.109
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.042	111.684	91.330
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.785	24.891	14.789
	PROFIT BEFORE TAX (E-F) (G)		71.257	86.793	76.541
Less	TAX (H)		20.420	15.159	7.739
	PROFIT AFTER TAX (G-H) (I)		50.837	71.634	68.802
	EARNINGS IN FOREIGN CURRENCY		163.214	69.386	66.460
	IMPORTS
		Raw Materials
		- Indigenous	999.852	839.029	0.369
		- Imported	166.450	63.760	0.014
	TOTAL IMPORTS		1166.302	902.789	0.383
	Earnings Per Share (Rs.)		5.19	7.32	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.18	5.70	7.42
Net Profit Margin (PBT/Sales)	(%)	4.51	7.01	8.28
Return on Total Assets (PBT/Total Assets}	(%)	7.41	9.97	10.91
Return on Investment (ROI) (PBT/Networth)		0.18	0.24	0.27
Debt Equity Ratio (Total Liability/Networth)		1.85	1.49	1.52
Current Ratio (Current Asset/Current Liability)		7.02	3.50	1.75

LOCAL AGENCY FURTHER INFORMATION

OPERATING FINANCIAL RESULTS:

The company earned a net profit of Rs.71.257 millions before provision for taxation during the year. The directors are hopeful of much better results in coming periods.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10239574
Corporate identity number of the company	U74899DL1995PLC067544
Name of the company	KANODIA TECHNOPLAST LIMITED
Address of the registered office or of the principal place of business in India of the company	A-54, Wazirpur Industrial Area, New Delhi-110052, India
Type of charge	Book Debts Movable Property [not being pledge]
Particular of charge holder	Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi – 110002, India
Email	f8.axisbank@gmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental deed of hypothecation.
Date of instrument Creating the charge	08.12.2011
Amount secured by the charge	Rs.233.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction letter no. AXISB/DEL/SME/2011-12/8554 dated 30.11.2011 to be amended from time to time. Terms of Repayment As per sanction letter no. AXISB/DEL/SME/2011-12/8554 dated 30.11.2011 to be amended from time to time. Margin As per sanction letter no. AXISB/DEL/SME/2011-12/8554 dated 30.11.2011 to be amended from time to time. Extent and Operation of the charge First pari passu over current assets. Second pari passu over fixed assets. Others The above is to secure the following:- (Rs. In Millions) Cash credit = 165.000 WCDL/FCDL (as sublimit of cc) = (132.000) LCBD (FLC/ILC) (as sublimit of cc) = (30.000) EPC (as sub limit of cc) = (3.000) LER (regular-sublimit of cc) = (6.000) Buyers credit / Lou = (60.000) LC (ILC/FLC) = 60.000 Bank guarantee = 8.000
Short particulars of the property charged	Hypothecation by way of first pari passu charge over entire current assets of the company both present and future and second pari passu charge over movable fixed assets of the company (Except vehicles) both present and future stored or to be stored at the company's godowns or premises or wherever else the same may be.
Particulars of the present modification	Bank's first pari passu charge over entire current assets of the company both present and future and second pari passu charge over movable fixed assets of the company (except vehicles) both present and future stored or to be stored at the company's godowns or premises or wherever else the same may be, already regd. for Rs. 16500.000 Millions shall stand enhanced to Rs. 23300.000 Millions.

FIXED ASSETS:

· Factory Land and Building

· Fire Fighting Equipments

· Lab Equipments

· Plant and Machinery

· Office Equipments

· Commuters

· Furniture and Fixture

· Vehicles

· Printing Cylinder

WEBSITES DETAILS:

COMPANY PROFILE

Subject was established in 1995 and today it is one of the biggest and the most integrated Flexible packaging manufacturing company in India.

ISO 9001:2008 Company Dealing in manufacturing of multi-layer Laminated Films and Rolls, with specialization in high-speed Candy Wrappers and Engraved Cylinders. Equipped to manufacture almost all kinds of packs, pouches and bags that have universal demand in the current market. Servicing global clients across diverse segments: Snacks, Tea, Salt, Biscuits Confectionary, Noodles, Ice Creams, Engine Oils and Lubricants, Shampoo, Edible Oils and Chemicals and Fertilizers.

MILESTONE JOURNEY

2009

Increased the capacity of Cylinder Plant by 50%. Added one more Internal Bubble Cooling Blown Film Plant. Installed latest Extrusion Coating Line from ETS (Korea) to cater the fast growing market of ready to eat products, condoms and other applications. Ventured into new field of Wind Mill Power in Rajasthan by installing 1.5MGW. Capacity in tie up with Suzlon Energy. Acquired 16200sq.mtr. Land at Kundli (Haryana) from HSIDC for further expansion.

2008

Added one more set of converting unit including another solvent less lamination machine from Nord Mechanical SPA (Italy).

2006

A major step towards backward integration by putting up a state of art Cylinder making unit from Daetwyler (Switzerland) and J.M Headword (U. K). This cylinder plant was put up at an entirely new premises at Jazzier Industrial Area, New Delhi. Added another Internal Bubble Cooling Blown Film Plant.

2005

Added one 10-Colour Fully Automatic Printing Press and One high end imported solvent less lamination machine from Nord Mechanical SPA (Italy).

2003

Added a latest Internal Bubble Cooling Blown Film Plant, first time in Northern India, doubling. The Blown Film capacities.

1999

Doubled the capacity of their converting unit by adding a state of art Printing Press and other converting equipments.

1998

Ventured into PE Blown Film making as a first step towards backward integration.

1997

Shifted its operations to Jazzier Industrial Area, New Delhi with a built up area of over 50,000sq.ft.

1995

Company started its operations in Delhi with two sets of Converting Machines.

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.49.33
UK Pound	1	Rs.77.41
Euro	1	Rs.64.84

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	6
--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		47

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.