MIRA INFORM REPORT

Report Date :

04.05.2013

IDENTIFICATION DETAILS

Name :	KUDOS CHEMIE LIMITED (w.e.f.08.01.1998)
Formerly Known As :	KUDOS CHEM LIMITED
Registered Office :	Village Kuranwala, Barwala Road, Tehsil Derabassi, Patiala-140507, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.09.1988
Com. Reg. No.:	16-08663
Capital Investment / Paid-up Capital :	Rs. 167.055 Millions
CIN No.: [Company Identification No.]	U24231PB1988PLC008663
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of Miscellaneous Chemicals
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 10000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The external borrowing appears to be huge. However, financial performance seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealings at usual trade terms and condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Non Fund Based Rating: BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	April 2013

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 / Factory :	Village Kuranwala, Barwala Road, Tehsil Derabassi, Patiala-140507, Punjab, India
Tel. No.:	91-1762-280136 / 320423
Fax No.:	91-1762-280336
E-Mail :	kudos.chemie.cs@kudoschemie.com
Administrative Office :	622, Sector 33-B, Chandigarh, India
Tel. No.:	91-1662-2145687
Fax No.:	91-172-2603251

DIRECTORS

As on 29.09.2012

Name :	Mr. Jitendra Singh
Designation :	Managing Director
Address :	H. No. 1620, Sector 18-D, Chandigarh, India
Date of Birth/Age :	12.08.1962
Qualifications:	B. Tech
Date of Appointment :	09.069.1988
DIN No.:	00196892
PAN No.:	ACJPS6832K
Other Directorship:
Name :	Mr. Gurmeet Sodhi
Designation :	Managing Director
Address :	H. No. 1620, Sector 18-D, Chandigarh, India
Date of Birth/Age :	01.06.1967
Qualifications:	B.A.
Date of Appointment :	15.01.1990
DIN No.:	00196940
PAN No.:	ACLPS0597B
Other Directorship:
Name :	Mr. Subramaniam Pancharatnam
Designation :	Whole time Director
Address :	Sankalp Apartment, No. 5, Udyog Nagar, Chinchwad, Pune, Maharashtra, India
Date of Birth/Age :	29.08.1945
Date of Appointment :	13.07.1989
DIN No.:	00892095
PAN No.:	ADLPS5598R
Other Directorship:
Name :	Mr. Ajay Kumar Arora
Designation :	Director
Address :	186, Advocate Society, Sector 49A, Chandigarh-160047, India
Date of Birth/Age :	27.07.1960
Date of Appointment :	01.06.2007
DIN No.:	00314161
Other Directorship:
Name :	Mr. Brij Bhushan Goel
Designation :	Director
Address :	# 337, Sector, 16 Ward No. 10, Panchkula – 134204, Haryana, India
Date of Birth/Age :	05.08.1947
Date of Appointment :	26.04.2010
DIN No.:	00475655
Other Directorship:

KEY EXECUTIVES

Name :	Mrs. Suruchi Chhabra
Designation :	Secretary
Address :	II No. 1414, Sector 34C, Chandigarh, India
Date of Birth/Age :	17.02.1980
Date of Appointment :	01.05.2012
PAN No.:	AHHPC8210E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Mr. Jitendra Singh	7846344
Mr. Subramaniam Pancharatnam	100
Mrs. Harbhjan Knur	12600
Mrs. Gurnmeet Sodhi	5383131
Ms. Kabir Sodhi	904582
Mr. Bhupinder Singh	100
Mrs. Tejinder Kaur	100
Mr. Kirat Sodhi	904582
Mr. Darshan Singh	16500
Udos Agrohols Limited, India	1475466
Kudos Holding Private Limited, India	21739
Rajiv Kumar Varma and Sangeeta Varma	140217
Total	16705461

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	8.96
Directors or relatives of Directors	91.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Miscellaneous Chemicals

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Large Corporate Branch, Sector – 17 – B, Chandigarh – 160017, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans	3667.792	1942.662
Foreign currency term loans from banks	505.410	0.000
Working capital loans from banks	5739.410	4128.847
Total	9912.612	6071.509

Banking Relations :	--
Auditors :
Name :	N. Kumar Chhabra and Company Chartered Accountants
Address :	# 1081, Sector 27-B, Chandigarh, India
PAN No.:	ADMPC3289L
Associates :	Kudos Agrohols Limited, India (CIN: U15520PB2005PLC028443) Kudos Holdings Private Limited, India (CIN: U74992CH2011PTC033018)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16705461	Equity Shares	Rs.10/- each	Rs. 167.055 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		167.055	159.391	50.000
2] Share Application Money		2.601	38.827	0.000
3] Reserves & Surplus		2547.050	1623.150	199.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2716.706	1821.368	249.400
LOAN FUNDS
1] Secured Loans		9912.612	6071.509	529.538
2] Unsecured Loans		186.757	264.622	698.427
TOTAL BORROWING		10099.369	6336.131	1227.965
DEFERRED TAX LIABILITIES		549.323	349.124	0.000
TOTAL		13365.398	8506.623	1477.365
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4801.872	2910.279	766.105
Capital work-in-progress		986.174	706.997	510.416
INVESTMENT		22.198	2.189	0.315
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5166.648	3486.859	40.699
	Sundry Debtors	1929.179	1446.400	1.681
	Cash & Bank Balances	333.385	159.951	4.205
	Other Current Assets	53.601	37.809	0.000
	Loans & Advances	1475.029	1023.506	228.006
Total Current Assets		8957.842	6154.525	274.591
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	506.019	575.609	64.723
	Other Current Liabilities	722.358	524.131	8.284
	Provisions	174.311	167.627	1.421
Total Current Liabilities		1402.688	1267.367	74.428
Net Current Assets		7555.154	4887.158	200.163
MISCELLANEOUS EXPENSES		0.000	0.000	0.366
TOTAL		13365.398	8506.623	1477.365

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	7824.421	5436.284	3743.804
		Other Income	15.844	7.171	6.167
		TOTAL (A)	7840.265	5443.455	3749.971
Less	EXPENSES
		Cost of materials consumed	5978.502	4291.866
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1095.576)	(898.503)
		Employee benefit expense	181.992	139.907
		Other expenses	521.440	348.952
		TOTAL (B)	5586.358	3882.222	2629.502
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2253.907	1561.233	1120.469
Less	FINANCIAL EXPENSES (D)		1155.735	771.807	360.773
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1098.172	789.426	759.696
Less/ Add	DEPRECIATION/ AMORTISATION (F)		158.225	113.738	86.788
	PROFIT BEFORE TAX (E-F) (G)		939.947	675.688	672.908
Less	TAX (H)		351.202	229.712	255.434
	PROFIT AFTER TAX (G-H) (I)		588.745	445.976	417.474
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5455.287	4616.530	NA
	TOTAL EARNINGS		5455.287	4616.530	NA
	IMPORTS
		Raw Materials	4040.462	4049.483	NA
		Capital Goods	36.972	51.586	NA
	TOTAL IMPORTS		4077.434	4101.069	NA
	Earnings Per Share (Rs.)		36.54	29.73	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.51	8.19	11.13
Net Profit Margin (PBT/Sales)	(%)	12.01	12.43	17.97
Return on Total Assets (PBT/Total Assets}	(%)	10.49	10.98	245.06
Return on Investment (ROI) (PBT/Networth)		0.35	0.37	2.70
Debt Equity Ratio (Total Debt /Networth)		3.72	3.48	4.92
Current Ratio (Current Asset/Current Liability)		6.39	4.86	3.69

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	No
10]	Designation of contact person	No
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	Yes
16]	Details of sister concerns	Yes
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	--
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

EXPANSION PROGRAMME:

The Company commissioned a Multipurpose Purine plant in 2011-12 and will continue to focus on its expansion plans for growing revenues and profitability and reducing its cost of production. The Company has plans to expand its intermediate basket by manufacturing products that have synergies with Purines and all those API s (Valacyclovir and Tenofovir) produced from these Purines.

OPERATIONS:

Kudos performance during the year has been impressive on all grounds with the net turnover of the company increasing to Rs. 7840.300 Millions from Rs. 5443.500 Millions last year, with an overall representing growth of 44%. During the profit after tax of the Company is Rs. 588.700 Millions, which has increased by 32% due to growth in turnover and operational efficiencies.

NATURE OF OPERATIONS

Kudos Chemie Limited (hereinafter referred to as Kudos or the Company), born out of the growing market demand for high quality Xanthenes, is one of the fastest growing companies in India. Kudos has proven track record and established capabilities in manufacturing, technological up gradation, research and development and project execution. Kudos is India’s largest producer of Synthetic Caffeine and is amongst the top five companies globally

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Other loans and advances	186.757	215.131
Loans repayable on demand from banks	0.000	49.491
Total	186.757	264.622

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24231PB1988PLC008663
Name of the company	KUDOS CHEMIE LIMITED
Address of the registered office or of the principal place of business in India of the company	Village Kuranwala, Barwala Road, Tehsil Derabassi, Patiala-140507, Punjab, India
This form is for	Creation of Charge
Type of charge	Immovable Property Book Debts Movable Property Fixed Assets
CIN:	U24231PB1988PLC008663
Particular of charge holder	Punjab National Bank, Large Corporate Branch, Sector – 17 – B, Chandigarh – 160017, India
Nature of instrument creating charge	FOBP/FOUBP/FOBD Adhoc limit of Rs.20.00 Crores Hypothecation of Current Assets First Charge Hypothecation- Hypothecation of Moveable Assets Forming Part of Fixed/Block Assets Second Charge Hypothecation-Hypothecation of Moveable Assets Forming Part of Fixed/Block Assets
Date of instrument Creating the charge	10.01.2013
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest/ Commission: As per Bank/ RBI/ FEDAI/ bank rules and subject to charge at the sole discretion of the bank. Terms of Repayment Repayable on demand Others Interest/ Commission: As per Bank/ RBI/ FEDAI/ bank rules and subject to charge at the sole discretion of the bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Raw mat, stocks in process and transit, fin. goods, packing mat., stocks and spares and all other items reqd. for manufacturing medicines, drugs in factory and items stored in Godown.1st charge for WC and 2nd for TL. Book Debts outstanding, decrees, money receivables, Govt. subsidies, claims, bill contracts and investments. 1st charge for WC and 2nd for TL. Bills accompanied with transport receipt/GRs/bill of lading/airway bill evidencing dispatch of material by the supplier, bill of exchange duly accepted by the party. 1st charge for WC and 2nd for TL. Factory land and building and others IP's measuring 393.11125 acres in the name of Company situated at Vill.Kuranwala, Saidpura, Gulabgarh, Madhopur, Derabassi, Punjab.1st charge for TLs and 2nd for WC. Hypothecation of all moveable assets forming part of fixed/block assets present and future of the Company. 1st charge for TLs and 2nd charge for WC limits.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• 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 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 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.53.95
UK Pound	1	Rs.83.80
Euro	1	Rs.70.49

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.