MIRA INFORM REPORT

 

 

Report Date :

12.03.2013

 

IDENTIFICATION DETAILS

 

Name :

K.P. PACKAGING LIMITED

 

 

Registered Office :

Plot Number 32, Kamathipura 13th lane, Opposite Vira Sadan, Nagpada, Mumbai - 400008, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

23.03.2009

 

 

Com. Reg. No.:

191123

 

 

Capital Investment / Paid-up Capital :

Rs.20.000 Millions

 

 

CIN No.:

[Company Identification No.]

U25202MH2009PLC191123

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Calendared Rigid PVC Film, Flexible PVC Films, Aluminium Foils, used in Blister and Strip Packaging of medicines along with Condom Laminates, Surgical Suture Laminates ORS Salts Laminates

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 192132

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track.

 

There appears huge external borrowings recorded by the company which acts as a threat to company’s liquidity. The profitability of the company also appears low. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealings with some caution.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office :

Plot Number 32, Kamathipura 13th lane, Opposite Vira Sadan, Nagpada, Mumbai - 400008, Maharashtra, India

Tel. No.:

91-22-2307 3457 (5 Lines)

Fax No.:

91-22-2307 5944

Email :

ketan@kppackaging.com

E-Mail :

www.kppackaging.com

 

 

Factory : (Unit No. 1)

Konark Udyog Bhavan, Bldg.No.1, Parsuram Puriya Road, Nr. Dadra Check Post, Silvassa, India - 3296 230

Tel. No.:

91 260 329 6493 / 3205882

 

 

Factory : (Unit No. 2)

Survey No : 213, Parasurampuriya Road, Near Dadra Chek Post, Silvssa - 396230

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Ketan Madhukant Vira

Designation :

Director

Address :

602, Ashish Tirupati Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

01.07.1973

Date of Appointment :

23.09.2009

DIN No.:

02420236

 

OTHER DIRECTORSHIP:

 

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U28129MH1994PTC078919

VIRA PACKAGING AND MARKETING P LTD

Director

13/06/1994

13/06/1994

-

Active

NO

2

U25202MH2009PLC191123

K.P. Packaging Limited

Managing director

23/03/2009

23/03/2009

-

Active

NO

 

 

 

 

Name :

Mr. Ritesh Pravin Gala

Designation :

Whole Time Director

Address :

109B, Kashibhai Cottage Worli Village, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

04.12.1980

Date of Appointment :

16.07.2009

DIN No.:

02713828

 

OTHER DIRECTORSHIP:

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U25202MH2009PLC191123

K.P. Packaging Limited

Whole-time director

16/07/2009

16/07/2009

-

Active

NO

 

 

Name :

Mr. Madhukant Koovarji Vira

Designation :

Director

Address :

602, Ashish Tirupati Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.07.1945

Date of Appointment :

23.09.2009

DIN No.:

02420251

 

OTHER DIRECTORSHIP:

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U28129MH1994PTC078919

VIRA PACKAGING AND MARKETING P LTD

Director

13/06/1994

13/06/1994

-

Active

NO

2

U25202MH2009PLC191123

K.P. Packaging Limited

Whole-time director

23/03/2009

23/03/2009

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders

No. of Shares

Madhukant Koovarji Vira

1499250

Ketan Madhukant Vira

499750

Manjula Madhukant Vira

200

Krutika Ketan Vira

200

Praful N. Sampat

200

Ila P. Sampat

200

Ritesh Pravin Gala

200

Total

2000000

 

AS ON 29.09.2012

 

Category

Percentage

Directors or relatives of Directors

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Calendared Rigid PVC Film, Flexible PVC Films, Aluminium Foils, used in Blister and Strip Packaging of medicines along with Condom Laminates, Surgical Suture Laminates ORS Salts Laminates

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Union Bank of India, Bhat Bazar, Anant Deep Chamber, 273/277, Narsi Natha Street,, Mumbai - 400009, Maharashtra, India

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Secured

61.433

72.942

TOTAL

61.433

72.942

 

 

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Loan from Others

54.477

29.340

Loan from Banks / Financial Institutions

30.405

26.371

TOTAL

84.882

55.7111

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Dinesh Rajgor and Company

Chartered Accountant

Address :

Shop No.2, Tiwari House, Prabhat Colony Road No.1 Sanracruz East Mumbai 400055, Maharashtra, India

 

 

Associates/Subsidiaries :

NA

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000

Equity Shares

Rs.10/-

Rs.20.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2000000

Equity Shares

Rs.10/-

Rs.20.000 Millions

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

20.000

20.000

20.000

2] Share Application Money

22.500

22.500

0.000

3] Reserves & Surplus

5.533

3.717

2.274

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

48.033

46.217

22.274

LOAN FUNDS

 

 

 

1] Secured Loans

61.433

72.942

83.144

2] Unsecured Loans

84.882

55.711

29.005

TOTAL BORROWING

146.315

128.653

112.149

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

194.348

174.870

134.423

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

83.645

74.049

54.371

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

1.442

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

35.282

37.948

35.798

 

Sundry Debtors

96.018

88.836

103.901

 

Cash & Bank Balances

0.229

0.070

(6.176)

 

Other Current Assets

34.629

24.951

0.000

 

Loans & Advances

3.604

(0.187)

11.262

Total Current Assets

169.762

151.618

144.785

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

38.119

30.823

61.070

 

Other Current Liabilities

19.157

19.264

3.449

 

Provisions

1.783

0.710

1.656

Total Current Liabilities

59.059

50.797

66.175

Net Current Assets

110.703

100.821

78.610

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

194.348

174.870

134.423

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

444.707

201.704

149.557

 

 

Other Income

0.473

1.038

2.679

 

 

TOTAL                                     (A)

445.180

202.742

152.236

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

409.712

176.029

139.915

 

 

Purchase of Stock in Trade

0.000

0.000

0.000

 

 

Change in Inventories of Finished Goods, Stock in Process and Stock in Trade.

0.000

0.000

1.482

 

 

Employee Benefits Expenses

3.558

3.906

0.000

 

 

Other Expenses

11.522

9.854

0.000

 

 

TOTAL                                     (B)

424.792

189.789

141.397

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

20.388

12.953

10.839

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

15.922

9.731

8.265

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

4.466

3.222

2.574

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.623

1.531

1.246

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2.843

1.691

1.328

 

 

 

 

 

Less

TAX                                                                  (I)

1.027

0.249

(0.946)

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

1.816

1.442

2.274

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.41

0.71

1.49

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.64

0.84

0.89

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.12

0.75

0.67

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.04

0.06

 

 

 

 

 

Debt Equity Ratio

(Debt/Networth)

 

3.04

2.78

5.03

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.87

2.98

2.19

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--------

14]

Estimation for coming financial year

No

15]

Capital in the business

No

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

No

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U25202MH2009PLC191123

Name of the company

K.P. PACKAGING LIMITED

Address of the registered office or of the principal place of  business in India of the company

Plot Number 32, Kamathipura 13th lane Opposite Vira Sadan, Nagpada, Mumbai – 400008, Maharashtra, India

 

This form is for

Modification of charge

Type of charge

Immovable property

Particular of charge holder

UNION BANK OF INDIA

Nature of instrument creating charge

Extension of Equitable Mortgage by Deposit of Title Deeds.

Date of instrument Creating the charge

21/06/2011

Amount secured by the charge

Rs.166.800 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Together with interest, compound interest and/or additional interest in case of default, exchange fluctuations, costs, charges, expenses etc.

 

Terms of Repayment

Term Loan in installment & Rest on Demand.

 

Margin

As per sanction terms.

 

Extent and Operation of the charge

To additionally secure Various Revised Credit Facilities Aggregating to Rs.166.800 Millions granted by the Bank to the Company as under

1. Imp/Inl L/C (DP/DA 120 days) Rs.38.500 Millions W/W Buyers Credit (180 days) (Rs.38.500 Millions)

2. CC (Hyp) /BD Rs.47.500 Millions W/WFCL  (Rs.28.500 Millions)

3. Adhoc CC (H) Rs.20.000 Millions

4. Packing Credit Rs.2.000 Millions W/W FDBP/FUDBP (DP/DA 90 days) (Rs.20.000 Millions)

5. Term Loan Rs.40.800 Millions.

Total Aggregating to Rs.166.800 Millions

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Extension of Equitable Mortgage by Deposit of Title Deeds by Oral Consent in respect of Company's Immovable Properties viz. 1) All that Piece and Parcel of the following Industrial Galas Nos

1,2,3,4 (Each gala admeasuring 1535 Sq.fts. ) totally ademasuring 6140 Sq.fts. respectively on the ground floor of the building known as "Konark Udyog Bhavan" constructed on the land of Survey (cont).

No. 208/5/1/1 admeasuring about 6400 Sq.Mtrs situated at Village Dadra and Nagar Haveli

2.All that Piece and Parcel of Land admeasuring an area of 5272 Sq.Mtrs bearing Survey No 213/6 situate at Village Dadra of Union Territory of Dadra for Industrial purpose alongwith the factory (cont)

Shed/Building admeasuring about 4059.11 Sq.Mtrs consisting Ground & First Floor constructed thereon and bounded as follows on or towards the North by land of survey No.213 of Dadra Plot No.5 (cont)

 


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 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.54.29

UK Pound

1

Rs.81.09

Euro

1

Rs.70.61

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

YES

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

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.