NEO CORP INTERNATIONAL LIMITED

Incorporated in 1985, Neo Corp International Limited (NCIL), based at Pithampur, Madhya
Pradesh mainly produces sacks & bags of polypropylene and engages in making tailor
designed products under Packtech and textile segments under Geotech and Agrotech. It also
provides Buildtech and Hometech products.

Additionally, it is involved in wind power generation activities.

NCIL (Parent company)

• Techtextil (TT) – Packtech products (100% EOU)

• Geotech Worldwide (GTWW) – Geo Textile Division (SEZ)

Sacos Indigo Pvt. Ltd. (SIPL) – Subsidiary for Packtech products

Poly Logic International Pvt. Ltd. (PLIL) - Subsidiary for Agrotech products

NCIL has presence across 3 technical textile industry segments:

o Packtech

o AgroTech

o Geotech

NCIL was the 2nd largest manufacturer of FIBC in India. India, USA, EU and Middle East were
the major markets for NCIL.

NCIL primarily focuses on export market. Only Agrotech products are sold in the domestic
market through distributors and direct sales to certain progressive farmers. Ncil’s products
fetch on an average 20% EBIDTA. At 80 percent capacity utilization the production capacity
is close to 2800 MT with following breakup :

Packtech 1600 MT

Agrotech – 800 mt and

Geotech – 400 MT

Ncil has state of the art manufacturing facility with covered area of about 60000 sq mtrs. It
also has clean room facility to manufacture food grade products under international
certificate.

Current status of company

In Feb 2015 an income tax search was conducted on the Neo Corp Group. It is pertinent to
note that Neo Corp Group was the highest tax payer amongst the local corporate.
Nothing detrimental was found except for personal real estate transactions of the group
directors and senior management. After three days of search it was learnt that the motive
of search was due to some anonymous complaint about global depository receipts (GDR)
issue of Neo Corp which was subscribed and listed in 2012 at Luxumburg stock exchange.
All the records pertaining to the GDR was recovered by the department, studied and found
everything above board.

The search being a failed attempt, the department started pressurizing to declare an
additional income to the tune of INR 200 crores. If we had succumbed, the writing on the
wall was clear that such huge liability would anyways put the group in financial troubles.

In order to further pressurize and blackmail the department released false and misleading
information to the media. The department also summoned bank officials and threatened
them of dire consequences. The lead bank SBI started withdrawing working capital limits in
the garb of going strictly by the sanction terms.

Punjab National Bank (PNB) withdrew sanction of term loan of Rs. 42 crores wherein the
margins were already invested. Due to the above action of bankers sever liquidity crunch
developed leading to NPA by December 2015, eventually other group companies went NPA
in due course.

Neo Corp and its division were referred to NCLT in Sept 2019 and the subsidiary Sacos Indigo
and Poly Logic were referred to NCLT in May 2020.

At present NCIL and Sacos has been referred to for liquidation to NCLT. In case of Poly Logic
a Resolution plan is submitted through our acquaintance company, pending approval from
Coc, NCLT.