MIRA INFORM REPORT

Report Date :

07.05.2014

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) :	31.03.2013
Date of Incorporation :	20.04.1995
Com. Reg. No.:	55-067544
Capital Investment / Paid-up Capital :	Rs. 629.456 Millions
CIN No.: [Company Identification No.]	U74899DL1995PLC067544
TIN No.:	06353017190
TAN No.: [Tax Deduction & Collection Account No.]	DELK03431B
PAN No.: [Permanent Account No.]	AAACK3668F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Packing Material and Distribution of Electricity.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 4300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects sound financial risk profile marked by healthy growth in revenues and customer base and fair liquidity position. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loans: “BBB-“
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May 2013

Rating Agency Name	ICRA
Rating	Non fund based facilities: “A3“
Rating Explanation	Moderate degree of safety and high credit risk.
Date	May 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.

INFORMATION DENIED BY

Name :	Mr. Nitesh Garg
Designation :	Purchase Department
Contact No.:	91-11-43274274
Date :	03.05.2014

LOCATIONS

Registered Office :	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
Location :	Owned
Factory :	Plot No. 113, Sector 56, Phase IV, HIISDC Industrial Estate, Kundli, Sonepat, Haryana, India

DIRECTORS

As on: 04.09.2012

Name :	Mr. Chetan Keshav Dev Kanodia
Designation :	Managing Director
Address :	A-213, Kewal Park, Azadpur, Delhi-110033, India
Date of Birth/Age :	24.12.1952
Date of Appointment :	24.05.2011
PAN No :	AIHPK1457C
DIN NO.:	00713513
Name :	Mrs. Meenu Chetan Kanodia
Designation :	Whole - Time Director
Address :	A-213, Kewal Park, Azadpur, Delhi-110033, India
Date of Birth/Age :	20.07.1955
Date of Appointment :	01.07.2011
PAN No :	AALPK5236H
DIN NO.:	00688289
Name :	Mr. Subhash Chand Gupta
Designation :	Director
Address :	1203-4, Gurusmruddhi Heights, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra, India
Date of Appointment :	25.08.2011
DIN No.:	00072816
Name :	Mr. Ashok Kumar
Designation :	Director
Address :	366, Sector 15A, Noida - 201301, Uttar Pradesh, India
Date of Birth/Age :	12.12.1940
Date of Appointment :	19.09.2009
DIN NO.:	02788486

KEY EXECUTIVES

Name :	Mr. Virendra Kumar Jain
Designation :	Secretary
Address :	115, Bank Enclave, Delhi – 110092, India
Date of Appointment :	16.03.2012
PAN No.:	AHGPJ5680G
Name :	Mr. Nitesh Garg
Designation :	Purchase Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 04.09.2012

Names of Shareholders	No. of Shares
Chetan Keshav Dev Kanodia	9279200
Meenu Chetan Kanodia	5215630
Chetan Keshav Dev Kanodia and Sons HUF	4306226
Keshav Dev Kanodia	70
Dhruv Chetan Kanodia	770000
Kavita Rakesh Gupta	70
K D Kanodia and Sons HUF	804
Arudhra Finvest (India) Limited	3335000
Subhra Plantations (India) Limited	3538500
Agali Chemicals Private Limited	1500000
Total	27945500

As on: 10.12.2012

Names of Allottees	No. of Allottees
Indus Kamdhenu Fund Limited, India	100
Total	100

As on: 10.12.2012

Names of Preference Allottees	No. of Allottees
Indus Kamdhenu Fund Limited, India	35000000
Total	35000000

Equity Share Break up (Percentage of Total Equity)

As on: 04.09.2012

Category	Percentage
Directors or relatives of directors	70.04
Other top fifty shareholders	29.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Packing Material and Distribution of Electricity.

Products :

ITC Code	Products or Services
84425010	Manufacturing of Cylinders
48239013	Manufacturing of packing Material
83099090	Distribution of Electricity by windmill

Exports :

Products :

Finished Goods

Countries :

• Saudi Arabia
• Nepal

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

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

Customers :

End Users

No. of Employees :

250 (Approximately)

Bankers :

• Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi - 110001, Delhi, India
• Ing Vysya Bank Limited, 13, Main Road, West Patel Nagar, New Delhi - 110008, Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Term loans from banks	207.479	155.417
Short term borrowings
Loans repayable on demand from banks	324.729	326.631
Total	532.208	482.048

Banking Relations :	--
Auditors 1 :
Name :	Raj Kumar and Associates Chartered Accountants
Address :	4435/7, Ansari Road, Darya Ganj, New Delhi-110002, India
PAN No.:	AAAFR9008B
Auditors 2 :	Lodha and Company Chartered Accountants

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
82000000	Equity Shares	Rs.10/- each	Rs.820.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
62945600	Equity Shares	Rs.10/- each	Rs.629.456 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

FINANCIAL DETAILS FILE ATTACHED

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	97.860	279.455	629.456
Reserves & Surplus	300.812	440.981	446.040
Net worth	398.672	720.436	1,075.496
long-term borrowings	173.446	186.917	304.421
Short term borrowings	266.727	326.631	324.729
Total borrowings	440.173	513.548	629.150
Debt/Equity ratio	1.104	0.713	0.585

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1,439.973	1,556.059	1,813.281
		8.062	16.530

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1,439.973	1,556.059	1,813.281
Profit	50.837	100.491	92.091
	3.53%	6.46%	5.08%

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	Yes
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	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Loans and advances from related parties	1.500	1.500
Other loans and advances	95.442	30.000
Total	96.942	31.500

OPERATIONS

During the year the company achieved revenue of Rs.18,33.900 millions, which is 18% up, as compared to Rs.15,60.500 millions for the year ended 31st March, 2012.

EBIDTA at 14.1 % of the revenue is at the same level of previous year. Profit before Tax increase to Rs.1,37.000 millions from Rs.1,24.600 millions as compared to the previous year ended 31st March, 2012

Profit after Tax is at Rs.92.100 millions which is lower by Rs.8.400 millions as compared to the previous year ended 31st March, 2012 due to mainly higher provisioning of Income tax.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10465908	14/11/2013	100,000,000.00	AXIS BANK LIMITED	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	B91865303
2	10465906	21/10/2013	100,000,000.00	AXIS BANK LIMITED	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	B91864553
3	10463767	21/10/2013	771,500,000.00	STATE BANK OF INDIA (LEAD BANK)	COMMERCIAL BRANCH, N-3, SOUTH EXTENSION-I, NEW DELHI, DELHI - 110049, INDIA	B90932732
4	10407422	21/10/2013 *	600,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, N-3, SOUTH EXTENSION-I, NEW DELHI, DELHI - 110049, INDIA	B91190223
5	10386027	05/11/2012	90,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, CHANDRALOK BUILDING, 36, JANPATH , NEW DELHI, DELHI - 110001, INDIA	B61918736
6	10325093	24/11/2011	80,000,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B28539484
7	10306331	28/01/2013 *	70,000,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	ONE FORBES, DR. V. B. GANDHI MARG, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B68432434
8	10239574	08/12/2011 *	233,000,000.00	AXIS BANK LIMITED	4/10, OPG HOUSE, ASAF ALI ROAD, NEW DELHI, DELHI - 110002, INDIA	B28978674
9	10239577	10/09/2010	164,100,000.00	AXIS BANK LIMITED	4/10, OPG HOUSE, ASAF ALI ROAD, NEW DELHI, DELHI - 110002, INDIA	A94293610
10	10169744	05/11/2012 *	230,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, CHANDRALOK BUILDING, 36, JANPATH , NEW DELHI, DELHI - 110001, INDIA	B61919189

* Date of charge modification

FIXED ASSETS:

· Factory Land and Building

· Fire Fighting Equipments

· Lab Equipments

· Plant and Machinery

· Office Equipments

· Commuters

· Furniture and Fixture

· Vehicles

· Printing Cylinder

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.60.20
UK Pound	1	Rs.101.68
Euro	1	Rs.83.55

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	DIV
Report Prepared by :	VRN

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	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.