MIRA INFORM REPORT

Report No. :	510462
Report Date :	28.05.2018

IDENTIFICATION DETAILS

Name :	KVR INDUSTRIES PRIVATE LIMITED (w.e.f. 07.06.2016)
Formerly Known As :	KVR INDUSTRIES LIMITED
Registered Office :	47-11-3, Dwarakanagar, Visakhapatnam – 530016, Telangana
Mobile No.:	91-8912763844 (Ms. Lakxmi)
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	05.10.1999
Com. Reg. No.:	36- 032640
Capital Investment / Paid-up Capital :	INR 220.000 Million
CIN No.: [Company Identification No.]	U17119TG1999PTC032640
IEC No.: [Import-Export Code No.]	Not Divulged
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCK7954J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of News Print Paper. [Registered Activity]
No. of Employees :	Information denied by the management

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Poor
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject was incorporated in the year 1999. The company is a manufacturer of paper and paper products. As per the financial records of 2017, the company has achieved a decent growth in its revenue as compared to the previous year but has incurred operational losses. The weak fanatical position of the company is marked by huge accumulated losses which have eroded the net worth base and very high debt balance sheet profile. Business is active. Payment seems to be slow and delayed. In view of aforesaid, the company can be considered for business dealings on fully safe and secured 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term loans: D
Rating Explanation	Lowest credit quality and very low prospects of recovery.
Date	28.11.2017

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 28.05.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Ms. Lakxmi
Designation :	Not Divulged
Contact No.:	91-8912763844
Date :	20.05.2018

LOCATIONS

Registered Office :	47-11-3, Dwarakanagar, Visakhapatnam – 530016, Telangana, India
Tel. No.:	Not Available
Mobile No.:	91-8912763844 (Ms. Lakxmi)
Fax No.:	Not Available
E-Mail :	taxation@kvrgroups.com
Website :	http://www.kvrgroups.com
Factory:	Sarasanapalli Village, Regidiamadalavalasa Mandal, Srikakulam District, Andhra Pradesh, India

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Venkata Rao Kotha

Designation :

Director

Address :

D.No.15-141(1) Cheepurupalli Road, Rajam – 532127, Andhra Pradesh, India

Date of Birth/Age :

01.01.1960

Qualification:

Graduate

Date of Appointment :

05.10.1999

DIN No.:

00356024

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U17232AP1994PTC018828	SRI LAKSHMI SRINIVASA JUTE MILLS PRIVATELIMITED	28/11/1994	-
U70102AP2008PTC060940	KVR INFRASTRUCTURE DEVELOPMENT PRIVATE LIMITED	30/06/2012	-
U40108AP2010PLC066700	KVR POWER PROJECTS INDIA LIMITED	01/07/2012	-
U51109AP2013PTC087500	KVR EXIM PRIVATE LIMITED	06/05/2013	-

Name :

Mr. Suramalla Ananadarao

Designation :

Additional Director

Address :

D.No.6-86, V.P. Colony, Kottavalasa, Rajam, G.M.R. Nagar, Srikakulam -532127, Andhra Pradesh, India

Date of Birth/Age :

07.07.1950

Qualification:

Graduate

Date of Appointment :

09.01.2017

DIN No.:

07660690

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U17232AP1994PTC018828	SRI LAKSHMI SRINIVASA JUTE MILLS PRIVATELIMITED	30/09/2017	-
U17119AP1996PTC024539	RATNAM JUTE PRIVATE LIMITED	05/04/2017	-

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Venkata Rao Kotha	8190000
Ratna Kumari Kotha	961600
Swapna Pyda	3731000
Harika Vummidi	2962100
Sravanthi Mattey	2955100
P Krishnamohan	50
V Bharat	2600050
P V R L Ranjit	100
Lakshmi Narayana Akshaj Vummidi	600000
Total	22000000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2017

Category	Percentage
Promoters- Individual/Hindu Undivided Family- Indian	55.06
Public/Other than promoters- Individual/Hindu Undivided Family- Indian	44.94
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of News Print Paper. [Registered Activity]

Products / Services :

Name and Description of main products / services	NIC Code of the Product/service
Manufacturing of News Print Paper	2803

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

Information denied by the management

Bankers :

Banker Name :	Kotak Mahindra Bank Limited
Branch :	36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai - 400021, Maharashtra, India
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

Facilities :

(INR In Million)

SECURED LOAN	As on 31.03.2017	As on 31.03.2016
LONG TERM BORROWING
Loans taken for other fixed assets	153.022	167.949
Other loans and advances, others	1.476	2.590
SHORT TERM BORROWING
Loans repayable on demand from banks	285.522	247.918
Total	440.020	418.457

Auditors :
Name :	Krishna Kumar and Associates Chartered Accountants
Address :	Visakhapatnam, Andhra Pradesh, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAOPM6157A
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
22000000	Equity Shares	INR 10/- each	INR 220.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22000000	Equity Shares	INR 10/- each	INR 220.000 Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	220.000	220.000	200.000
(b) Reserves and Surplus	(226.783)	(111.921)	(81.185)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(6.783)	108.079	118.815
(3) Non-Current Liabilities
(a) long-term borrowings	233.837	245.335	79.778
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long-term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	233.837	245.335	79.778
(4) Current Liabilities
(a) Short-term borrowings	285.522	247.918	368.783
(b) Trade payables	15.171	10.565	15.440
(c) Other current liabilities	59.965	47.152	38.936
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	360.658	305.635	423.159
TOTAL	587.712	659.049	621.752
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	118.739	137.399	152.893
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Tangible assets capital work-in-progress	0.000	0.000	17.549
(iv) Intangible assets under development	10.822	10.822	0.000
(b) Non-current Investments	50.693	50.693	50.693
(c) Deferred tax assets (net)	14.303	14.303	2.538
(d) Long-term loans and advances	6.276	6.277	11.248
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	200.833	219.494	234.921
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	239.975	258.126	181.141
(c) Trade receivables	105.582	130.128	179.292
(d) Cash and bank balances	2.120	1.706	1.795
(e) Short-term loans and advances	35.508	36.220	14.060
(f) Other current assets	3.694	13.375	10.543
Total Current Assets	386.879	439.555	386.831
TOTAL	587.712	659.049	621.752

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	870.943	510.219	940.993
	Other Income	4.102	5.812	9.274
	TOTAL	875.045	516.031	950.267
Less	EXPENSES
	Cost of Materials Consumed	821.131	410.561	905.851
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.860)	8.309	16.676
	Employee benefit expense	13.539	11.137	18.316
	Other expenses	85.833	43.319	84.035
	TOTAL	912.643	473.326	1024.878
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(37.598)	42.705	(74.611)
Less	FINANCIAL EXPENSES	58.365	55.210	55.887
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(95.963)	(12.505)	(130.498)
Less/ Add	DEPRECIATION/ AMORTISATION	18.899	29.996	41.996
	PROFIT/ (LOSS) BEFORE TAX	(114.862)	(42.501)	(172.494)
Less	TAX	0.000	(11.765)	0.000
	PROFIT/ (LOSS) AFTER TAX	(114.862)	(30.736)	(172.494)
	Earnings / (Loss) Per Share (INR)	(5.22)	(1.40)	(7.84)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	19.200	13.067	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	22.461	(4.975)	2.637
Net cash flows from (used in) operating activities	22.461	(4.975)	2.637

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	44.25	93.09	69.55
Account Receivables Turnover (Income / Sundry Debtors)	8.25	3.92	5.25
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	6.74	9.39	6.22
Inventory Turnover (Operating Income / Inventories)	(0.16)	0.17	(0.41)
Asset Turnover (Operating Income / Net Fixed Assets)	(0.29)	0.29	(0.44)

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	1.04	0.86	0.81
Debt Equity Ratio (Total Liability / Networth)	(79.40)	4.68	3.78
Current Liabilities to Networth (Current Liabilities / Net Worth)	(53.17)	2.83	3.56
Fixed Assets to Networth (Net Fixed Assets / Networth)	(19.10)	1.37	1.43
Interest Coverage Ratio (PBIT / Financial Charges)	(0.64)	0.77	(1.34)

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	(13.19)	(6.02)	(18.33)
Return on Total Assets ((PAT / Total Assets) * 100)	%	(19.54)	(4.66)	(27.74)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	1693.38	(28.44)	(145.18)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.07	1.44	0.91
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.41	0.59	0.49
G-Score Ratio Financial (Networth / Total Assets)	(0.01)	0.16	0.19
G-Score Ratio Debt (Debts / Equity Capital)	2.45	2.30	2.24
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.07	1.44	0.91

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Share Capital	200.000	220.000	220.000
Reserves & Surplus	(81.185)	(111.921)	(226.783)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	118.815	108.079	(6.783)
Long-term borrowings	79.778	245.335	233.837
Short term borrowings	368.783	247.918	285.522
Total borrowings	448.561	493.253	519.359
Debt/Equity ratio	3.775	4.564	(76.568)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	940.993	510.219	870.943
		(45.779)	70.700

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	940.993	510.219	870.943
Profit/ (Loss)	(172.494)	(30.736)	(114.862)
	(18.33 %)	(6.02 %)	(13.19 %)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

Subject or the Company is engaged in the business of manufacturing of Paper and Newsprint.

The Company's registered office is in Visakhapatnam, Andhra Pradesh and its Factory is situated in Sarasanapalli Village, Regidiamadalavalasa Mandal, Srikakulam District, Andhra Pradesh, India.

UNSECURED LOANS:

(INR In Million)

Particulars	As on 31.03.2017	As on 31.03.2016
LONG TERM BORROWING
Other loans and advances, others	79.339	74.796
Total	79.339	74.796

INDEX OF CHARGE:

SNO	SRN	CHARGE ID	CHARGE HOLDER NAME	DATE OF CREATION	DATE OF MODIFICATION	DATE OF SATISFACTION	AMOUNT	ADDRESS
1	C56770423	10323784	STATE BANK OF HYDERABAD	19/12/2011	23/03/2015	-	180000000.0	SURYABAGH BRANCHVISAKHAPATNAMAP530002IN
2	C72583784	10109674	PUNJAB NATIONAL BANK	07/06/2008	23/09/2015	-	459200000.0	GROUND FLOOR, LIC BUILDING,JEEVAN PRAKASH ROADVISAKHAPATNAMAP530004IN
3	G45647112	10151756	KOTAK MAHINDRA BANK LIMITED	09/04/2009	-	11/05/2017	788000.0	36-38A, NARIMAN BHAVAN, 227,D,NARIMAN POINT,MUMBAIMH400021IN
4	B32531733	10122528	GLOBAL TRADE FINANCE LIMITED	05/08/2008	-	24/01/2012	29700000.0	6TH FLOOR, METROPOLITAN BUILDING, BANDRA-KURLACOMPLEX, BANDRA(EAST)MUMBAIMH400051IN
5	A49794183	10016260	STATE BANK OF INDIA	05/08/2006	01/12/2007	20/10/2008	200000000.0	OVERSEAS BRANCH9-1-57, GNT ROADVISAKHAPATNAMAP530013IN

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

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	INR
US Dollar	1	INR 68.26
UK Pound	1	INR 91.22
Euro	1	INR 79.88

INFORMATION DETAILS

Information Gathered by :	SHW
Analysis Done by :	NYT
Report Prepared by :	KVT

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.