MIRA INFORM REPORT

Report Date :

29.02.2012

IDENTIFICATION DETAILS

Name :	KANPUR PLASTIPACK LIMITED
Registered Office :	D 19-20 Panki Industrial Area, Kanpur - 208022, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.07.1971
Com. Reg. No.:	20-003444
Capital Investment / Paid-up Capital :	Rs.99.592 Millions
CIN No.: [Company Identification No.]	L25209UP1971PLC002444
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of FIBC (Jumbo Bags) and Woven Sacks.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 890000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and 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 – 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 :	D 19-20 Panki Industrial Area, Kanpur - 208022, Uttar Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@kanplas.com
Website :	www.kanplas.com
Factory 2 :	A-1, A-2, Udyog Kunj, Site – V, Kanpur – 208022, Uttar Pradesh, India
Factory 3 :	D- 6, Panki Industrial Area, Site – II, Kanpur - 208022, Uttar Pradesh, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Mahesh Swarup Agarwal
Designation :	Chairman
Name :	Mr. Manoj Agarwal
Designation :	Managing Director
Name :	Mr. Sunil Mehta
Designation :	Executive Director
Name :	Shashank Agarwal
Designation :	Executive Director
Name :	Mr. Soubhagya Mal Jain
Designation :	Independent Director
Name :	Mr. Pradeep Kumar Goenka
Designation :	Independent Director
Name :	Dr. Gyanesh Narayan Mathur
Designation :	Independent Director
Name :	Dr. Jagan Nath Gupta
Designation :	Independent Director
Name :	Mr. Prem S. Khamesra
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Ankur Srivastava
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Names of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individual / Hindu Undivided Family	4589842	57.67
Bodies Corporate	917250	11.52
Sub Total	5507092	69.19
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5507092	69.19
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	154196	1.94
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1533221	19.26
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	491804	6.18
Any Others (Specify)	272934	3.43
Non Resident Indians	272934	3.43
Sub Total	2452155	30.81
Total Public shareholding (B)	2452155	30.81
Total (A)+(B)	7959247	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	7959247	--

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of FIBC (Jumbo Bags) and Woven Sacks.

Products :

Product Description	Item Code No.
Woven Fabric of Ethylene (Laminated/Coated)	39269099
Sacks and Bags of Ethylene (Laminated/Coated and/or printed)	39232100
Sacks and Bags of Polypropylene (Laminated/Coated and/or printed)	39232990
Flexible Intermediate Bulk Containers (FIBCs)	63053200
Polypropylene Multifilament Yarn	54024800

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Fabric and Sacks	MT	Not Applicable	13000*	9963.70**

Notes:

* The capacity is for producing unlamented fabric

** Includes LDPE and others for finished goods

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
1) Working Capital Loans from State Bank of India
a) Cash Credit (Hypothecation) and cash Credit (Book Debts) including Foreign currency Demand Loan Rs.18.326 Millions (Previous year Rs.19.126 Millions)	143.098	137.606
b) Export Bills Purchase	88.836	56.118
c) Cash Credit Limited under E-DFS Scheme	12.300	0.000
2) Buyers Credit from Bank (In Foreign Currency)	43.456	0.000
3) Term Loan from State Bank of India including foreign currency term loan Rs.36.894 Millions (previous year Rs.42.334 Millions)	208.890	131.087
4) Vehicle Finance under Hire Purchase (Secured by Hypothecation of Vehicle)	2.228	0.000
Total	498.808	324.811
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
a) Deposits (Including Interest accrued thereon)	18.550	24.138
b) Others (Intercorporate Deposits)	7.500	2.500
Total	26.050	26.638

Banking Relations :	--
Auditors :
Name :	Pandey and Company Chartered Accountants
Address :	Kanpur, Uttar Pradesh, India
Corporate Law Auditors :	Adesh Tandon and Associates Chartered Accountants
Address :	Kanpur, Uttar Pradesh, India
Associates :	· KSM Exports Limited · MSA Investment and Trading Company Private Limited · KPL Packaging Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions
2000000	Preference Shares	Rs.10/- each	Rs.20.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5306250	Equity Shares	Rs.10/- each	Rs.53.063 Millions
2000000	12% Redeemable Cumulative Preference Shares	Rs.10/- each	Rs.20.000 Millions
	Total		Rs.73.063 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		73.063	53.063	53.063
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		150.322	127.084	106.163
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		223.385	180.147	159.226
LOAN FUNDS
1] Secured Loans		498.808	324.811	291.256
2] Unsecured Loans		26.050	26.638	21.523
TOTAL BORROWING		524.858	351.449	312.779
DEFERRED TAX LIABILITIES		28.785	20.336	17.230
TOTAL		770.028	551.932	489.235
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		396.145	274.169	258.833
Capital work-in-progress		6.626	4.323	0.000
INVESTMENT		0.075	2.862	2.862
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	257.566	178.123	127.007
	Sundry Debtors	171.912	126.862	139.133
	Cash & Bank Balances	14.754	7.583	8.209
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	48.129	66.043	50.873
Total Current Assets		492.361	378.611	325.222
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66.514	39.413	44.967
	Other Current Liabilities	15.823	12.016	11.845
	Provisions	37.287	58.194	42.604
Total Current Liabilities		119.624	109.623	99.416
Net Current Assets		372.737	268.988	225.806
MISCELLANEOUS EXPENSES		1.445	1.590	1.734
TOTAL		770.028	551.932	489.235

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1175.842	996.039	978.165
		Other Income	7.674	6.039	6.130
		TOTAL (A)	1183.516	1002.078	984.295
Less	EXPENSES
		(Increase) / Decrease in stock	(39.102)	(45.015)	0.000
		Material Consumed	773.917	681.851	664.623
		Trade Tax	8.072	9.858	8.965
		Manufacturing Expenses	166.995	142.774	114.872
		Personal Expenses	57.378	44.975	39.406
		Administrative Expenses	38.765	33.379	32.886
		Selling Expenses	72.978	51.703	55.213
		TOTAL (B)	1079.003	919.525	915.965
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		104.513	82.553	68.330
Less	FINANCIAL EXPENSES (D)		35.786	27.363	23.572
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		68.727	55.190	44.758
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.069	15.481	16.281
Less	ADJUSTMENT RELATING TO EARLIER YEAR		0.000	0.000	0.015
	PROFIT BEFORE TAX (E-F) (G)		50.658	39.709	28.462
Less	TAX (I)		20.402	14.308	9.841
	PROFIT AFTER TAX (G-I) (J)		30.256	25.401	18.621
Add	ADJUSTMENT RELATING TO EARLIER YEAR INCOME/(EXPENSES)		0.079	0.002	0.000
Add	EXCESS DEPRECATION WRITTEN BACK		0.000	1.704	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		95.119	74.199	59.303
Less	APPROPRIATIONS
		Dividend on Preference Shares	0.800	0.000	0.000
		Dividend on Equity Shares	5.306	5.306	3.184
		Tax on Dividend	0.990	0.881	0.541
	BALANCE CARRIED TO THE B/S		118.358	95.119	74.199
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	873.745	621.267	685.778
	TOTAL EARNINGS		873.745	621.267	685.778
	IMPORTS
		Raw Materials	359.214	283.215	113.493
		Stores & Spares	1.804	0.178	0.113
	TOTAL IMPORTS		361.018	283.393	113.606
	Earnings Per Share (Rs.)		5.70	4.79	3.51

QUARTERLY

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	380.83	481.06	513.72
Total Expenditure	342.45	428.09	461.34
PBIDT (Excl OI)	38.38	52.97	52.38
Other Income	0.00	0.00	20.00
Operating Profit	38.38	52.97	72.38
Interest	12.73	11.82	13.67
Exceptional Items	0.00	0.00	0.00
PBDT	25.65	41.15	58.71
Depreciation	5.83	5.95	6.60
Profit Before Tax	19.81	35.20	52.11
Tax	0.00	0.00	0.00
Provisions and contingencies	0.00	0.00	0.00
Profit After Tax	19.81	35.20	52.11
Extraordinary Items	0.00	0.00	0.00
Prior Period Expenses	0.00	0.00	0.00
Other Adjustments	0.00	0.00	0.00
Net Profit	19.81	35.20	52.11

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.56	2.53	1.89
Net Profit Margin (PBT/Sales)	(%)	4.31	3.99	2.90
Return on Total Assets (PBT/Total Assets}	(%)	5.70	6.08	4.87
Return on Investment (ROI) (PBT/Networth)		0.23	0.22	0.18
Debt Equity Ratio (Total Liability/Networth)		2.86	2.56	2.59
Current Ratio (Current Asset/Current Liability)		4.12	3.45	3.27

LOCAL AGENCY FURTHER INFORMATION

Review of Operations:

It is a matter of great satisfaction that the Company’s operations continue to grow steadily. The may note that after providing for taxation the Net Profit stands at Rs.30.256 Millions against Rs.25.401 Millions for earlier year. During the year, the Company successfully completed expansion / technologically upgradation programme. The diversified product of Multifilament Yarn was successfully commissioned and the products have been well accepted in the market. Operations at all the three units continue satisfactorily.

During the year the share capital was raised by issue of Preference Shares worth Rs.20.000 Millions allotted to Promoters'' Group as approved in the annual general meeting of the company held on 21/09/2010.

The trading activities as Del Credere Associate Cum Consignment Stockist of Indian Oil Corporation Limited (IOCL) continue to grow.

Milestones

1971 – Incorporation of the company

1972 – Production of HDPE Woven Sacks Begins

1984 – Import of first circular looms into the country

1986 – Issue of shares to the public and listing with BSE, UPSE and CSE

1987 – Exports of PP bags to Europe begins

2000 – Production and exports of FIB’S TO Europe

2004 – Maiden declaration of dividend

2008 – Establishment of new finishing unit and substantial expansion in FIBC’S

2011 – Production of multifilament yarn begins

Management Discussion and Analysis Report:

Industry Structure and Development

The company is mainly engaged in manufacturing and export of FIBC (Jumbo Bags) and Woven Sacks. Exports contributed about 75% of the turnover of the company. The company has recently ventured into manufacturing of Multifilament Yarn (MFY). They have penetrated into new areas in South America.

Segment Wise or Product Wise Performance:

The company operates in two primary business segments viz Manufacturing of Fabrics and Woven Sacks and as Consignment Stockiest of Indian Oil Corporation Limited.

Their trading activities are gradually stabilizing. And the expect to improve in the years to come thus contributing to improve the bottom-line.

Contingent Liability:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Counter Guarantees given to Bank for issue of performance guarantees by Bank	65.848	40.148
Foreign bills discounted by the bank under letter of credit	16.357	13.325
Legal undertakings submitted to customs and DGFT under Duty exemption scheme for import of raw material against which all exports have been completed and advance license are under redemption	444.811	79.617
Labour cases pending with labour courts/high courts	0.250	0.060

Fixed Assets:

· Land

· Building

· Plant and Machinery

· Electric Installation

· Furniture and Fixtures

· Office Equipments

· Vehicles

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.49.14
UK Pound	1	Rs.77.86
Euro	1	Rs.66.06

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.