MIRA INFORM REPORT

Report Date :

20.06.2011

IDENTIFICATION DETAILS

Name :	EMAMI PAPER MILLS LIMITED

Registered Office :	687 Anandapur, Kasba Golpark, E M Bye Pass, Kolkata – 700107, West Bengal

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	26.09.1981

Com. Reg. No.:	21-034161

Paid-up Capital :	Rs.120.998 Millions

CIN No.: [Company Identification No.]	L21019WB1981PLC034161

Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

Line of Business :	Manufacturing of Paper

No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 6400000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and reputed company having fine Trade. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Investor Relations/ Marketing Division :	687 Anandapur, Kasba Golpark, E M Bye Pass, Kolkata – 700107, West Bengal, India
Tel. No.:	91-33-66136264/ 66136471
Fax No.:	91-33-66136400
E-Mail :	gulmohar@emamipaper.in emamipaper@emamipaper.in sjha@emamipaper.in gsaraf@emamipaper.in
Website :	http://www.emamipaper.in

Head Office :	8 Bentinck Street, 10^th Floor, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-248 9330 / 6035 / 4076 / 6029/ 25488654
Fax No.:	91-33-248 9288
Telex :	021-2337 MONO IN

Factory 1 / Warehouse :	Balgopalpur, Post Rasulpur – 756 020, Balasore, Orissa, INDIA
Tel. No.:	91-6782-75 723/755/756
Fax No.:	91-6782-75 778

Factory 2 :	R.N. Tagore Road, Alambazar, Dakhneswar, Kolkata – 700035, West Bengal, India

DIRECTORS

As on 31.03.2010

Name :	Mr. Radhe Shyam Goenka
Designation :	Executive Chairman
Address :	110 A, Southern Avenue, Kolkata – 700029, West Bengal, India
Date of Birth/Age :	05.01.1947
Qualification :	M.Com., LL.B
Previous Employment :	Kemco Chemicals – Advisor
Date of Appointment :	23.10.2000

Name :	Mr. Radhe Shyam Agarwal
Designation :	Director
Address :	118, Southern Avenue, Kolkata – 700029, West Bengal, India
Date of Birth/Age :	06.01.1946
Date of Appointment :	26.03.1994

Name :	Mr. Manish Goenka
Designation :	Whole Time Director
Address :	110 A, Southern Avenue, Kolkata – 700029, West Bengal, India
Date of Birth/Age :	07.02.1974
Date of Appointment :	01.02.2000

Name :	Mr. Aditya Vardhan Agarwal
Designation :	Director
Address :	118, Southern Avenue, Kolkata – 700029, West Bengal, India
Date of Birth/Age :	06.01.1975
Date of Appointment :	23.10.2000

Name :	Mr. Shree Krishna Khaitan
Designation :	Director
Address :	7 Keyatala Lane, Kolkata – 700019, West Bengal, India
Date of Birth/Age :	15.12.1939
Date of Appointment :	24.01.2001

Name :	Mr. Shrawan Kumar Todi
Designation :	Director
Address :	2 Queens Park, Kolkata – 700019, West Bengal, India
Date of Birth/Age :	15.08.1943
Date of Appointment :	05.04.2003

Name :	Mr. U. Gururaja Bhat
Designation :	Director
Address :	A3, Amaravatee Appartments, 2^nd Main Road, Gandhi Nagar, Adyar, Chennai – 600020, India
Date of Birth/Age :	15.04.1938
Date of Appointment :	26.09.2003

Name :	Mr. Nandananadan Mishra
Designation :	Director
Address :	Flat No.D053, Belvendere Park, DLF Phase – III, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	20.10.1942
Date of Appointment :	22.03.2006

Name :	Mr. P. S. Patwari
Designation :	Executive Director
Address :	58 B Block, D New Alipore, Kolkata – 700053, West Bengal, India
Date of Birth/Age :	126.03.1955
Date of Appointment :	28.11.1994

Name :	Mr. H. M. Marda
Designation :	Director

Name :	Mr. S. Balasubramanian
Designation :	Director

Name :	Mr. J. N. Godbole
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ghanshyam Saraf
Designation :	Vice President (Finance)and Company Secretary
Address :	AE 397, Salt Lake City, Sector I, Kolkata – 700064, West Bengal, India
Date of Birth/Age :	01.01.1957
Date of Appointment :	28.05.1994

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5,322,200	8.80
Bodies Corporate	39,912,087	65.97
Sub Total	45,234,287	74.77
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	125,000	0.21
Sub Total	125,000	0.21
Total shareholding of Promoter and Promoter Group (A)	45,359,287	74.98
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1,757	-
Central Government / State Government(s)	100	-
Sub Total	1,857	-
(2) Non-Institutions
Bodies Corporate	1,609,437	2.66
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 millions	2,493,991	4.12
Individual shareholders holding nominal share capital in excess of Rs.0.100 millions	10,966,000	18.13
Any Others (Specify)	68,478	0.11
NRIs/OCBs	10,000	0.02
Clearing Members	58,478	0.10
Sub Total	15,137,906	25.02
Total Public shareholding (B)	15,139,763	25.02
Total (A)+(B)	60,499,050	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	60,499,050	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Paper

Products :

· Newsprint Paper

· Writing and Printing Paper

Products Description	Item Code No
Newsprint	28030000
Paper and Paper Board	28000000
Generation of Steam and Power	40020000

Brand Name :

“EMAMI”.

Imports :

Countries :

Singapore

Terms :

Selling :

Cash, Credit and Contract terms

Purchasing :

Credit, Contract and L/C

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Paper	Tones	145000	142494
Generation of Electricity	MW	20	1302.48

i) Licensed capacity not applicable in terms of Government of India’s Notification

ii) Installed capacities are certified by the management

iii) Generation of electricity is for internal consumption

GENERAL INFORMATION

Suppliers :

Annapurna Engineering and Manufacturing Private Limited
Cethar Vessels Limited
Estern Trade Centre
Engineering Construction Corporation
Fibrotech Machines Private Limited
Gammon Dunkerly and Company Limited
Laduram Toshniwal and Sons
Larsen and Toubro Limited
Measurex Asia Inc.
SPB Projects and Consultancy Limited

Tata Honeywell Limited

Customers :

Wholesalers
Garg Rulling and Binding Works, Raipur, India
Gupta and Company, Balangir, Orissa, India
International Paper Concern, Calcutta, West Bengal, India
Jain Brothers, Siliguri, India
Jayshree Traders, Calcutta, West Bengal, India
Paper and Board House, Calcutta, West Bengal, India
Ram Narayan Badridas, Patna, India
Seema Paper Industries, Raigarh, Maharashtra, India
Shree Sakambari Devi Enterprises, Calcutta, West Bengal, India
Sri Balaji Private Limited, Hyderabad, Andhra Pradesh, India
United Sales Corporation, Cuttack, Orissa, India
Vikash Udyog, Ranchi, Bihar, India

No. of Employees :

600 (Approximately)

Bankers :

State Bank of Bikaner and Jaipur; Kolkata, West Bengal, India
State Bank of India, Kolkata, West Bengal, India
IDBI Bank Limited, Kolkata
India Overseas Bank
ICICI Bank Limited
DBS Bank
The Hongkong and Shanghai Banking Corporation Limited

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Term Loan From Banks
FCNR (B)	1339.262	2.216
Buyers Credit	1791.046	2507.470
Rupee Loan	0.000	425.000
Working Capital / Short Term Loans From Banks
FCNR (B)	91.496	354.886
Buyers Credit	334.091	206.989
Rupee Loan	389.315	395.849
Others Government of West Bengal (Sales Tax Loan)	0.000	0.944

Total	3945.210	3893.355

Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Banks
Foreign Currency Loan	269.640	7.106
Rupee Term loan	0.000	841.194
Other Loans and Deposits	2.100	2.100

Total	271.740	850.400


Banking Relations :	-

Auditors :
Name :	S. K. Agrawal and Company Chartered Accountant
Address :	4-A, Council House Street, Kolkata – 700 001, West Bengal, India

Unit Auditors (Kolkata Works) :
Name :	Salarpuria Jajodia and Company Chartered Accountant
Address :	7 V R Avenue, Kolkata – 700072, West Bengal, India

Associates/Subsidiaries :	Emami Limited Emami Biotech Limited Emami Cement Limited AMRI Hospitals, Kolkata CRI Limited, Kolkata Star Mark Shoppers City, Kolkata South City Project, Kolkata Emami Realty Limited Zandu

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

62500000	Equity Shares	Rs.2/- each	Rs.125.000 Millions
10000	6% Redeemable Non Cumulative Preference Shares	Rs.100/- each	Rs.1.000 Million

	Total		Rs.126.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

60499050	Equity Shares	Rs.2/- each	Rs.120.998 Millions

Note:

(Includes 3,98,43,850 Equity Shares of Rs. 2/- each allotted for consideration other than in cash)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		120.998	120.998	120.998
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1483.969	1461.500	1292.121
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1604.967	1582.498	1413.119
LOAN FUNDS
1] Secured Loans		3945.210	3893.355	2990.503
2] Unsecured Loans		271.740	850.400	613.307
TOTAL BORROWING		4216.950	4743.755	3603.81
DEFERRED TAX LIABILITIES		303.655	255.950	158.300

TOTAL		6125.572	6582.203	5175.229

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		4059.125	4475.936	3802.942
Capital work-in-progress		52.534	0.142	40.039

INVESTMENT		30.040	6.240	6.220
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	698.726	815.514	482.257
	Sundry Debtors	754.128	865.731	322.755
	Cash & Bank Balances	62.913	30.942	14.415
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	671.073	834.405	798.069
Total Current Assets		2186.840	2546.592	1617.496
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.707	97.638
	Other Current Liabilities	137.791	306.600	208.986
	Provisions	42.469	42.469	82.482
Total Current Liabilities		202.967	446.707	291.468
Net Current Assets		1983.873	2099.885	1326.028

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		6125.572	6582.203	5175.229

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3978.942	4208.793	2205.391
		Other Income	20.088	20.862	101.354
		TOTAL (A)	3999.030	4229.655	2306.745

Less	EXPENSES
		Manufacturing and Other Expenditure	3347.810	3363.080	1935.532
		TOTAL (B)	3347.810	3363.080	1935.532

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		651.220	866.575	371.213

Less	FINANCIAL EXPENSES (D)		239.345	292.934	77.321

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		411.875	573.641	293.892

Less/ Add	DEPRECIATION/ AMORTISATION (F)		294.090	245.809	117.036

	PROFIT BEFORE TAX (E-F) (G)		117.785	327.832	176.856

Less	TAX (H)		48.891	107.007	40.848

	PROFIT AFTER TAX (G-H) (I)		68.894	220.825	136.008

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		79.388	1.032	NA

Less	APPROPRIATIONS
		Proposed Dividend	36.300	36.300	NA
		Tax on Dividend	6.169	6.169	NA
		Transfer to General Reserve	50.000	100.000	NA
	BALANCE CARRIED TO THE B/S		56.813	79.388	NA

	EARNINGS IN FOREIGN CURRENCY		14.921	0.000	0.000

	IMPORTS
		Raw Materials	555.399	785.770	447.129
		Stores & Spares	39.228	61.089	2.293
		Capital Goods	2.844	14.350	135.135
	TOTAL IMPORTS		597.471	785.770	447.129

	Earnings Per Share (Rs.)		1.16	3.65	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2010 1^st Quarter	30.09.2010 2^nd Quarter	31.12.2010 3^rd Quarter	31.03.2011 4^th Quarter
Net Sales	1030.000	1079.900	1022.600	1189.300
Total Expenditure	872.700	898.200	874.700	1018.300
PBIDT (Excl OI)	157.300	181.700	147.900	171.000
Other Income	3.500	1.600	11.700	(5.400)
Operating Profit	160.800	183.300	159.600	165.600
Interest	50.900	52.600	56.700	55.600
PBDT	109.900	130.700	102.900	110.000
Depreciation	69.500	66.900	66.800	69.200
Profit Before Tax	40.400	63.800	36.100	40.800
Tax	8.100	12.500	7.900	13.900
Profit After Tax	32.300	51.300	28.200	26.900
Net Profit	32.300	51.300	28.200	26.900

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.72	5.22	5.90

Net Profit Margin (PBT/Sales)	(%)	2.96	7.79	8.02

Return on Total Assets (PBT/Total Assets}	(%)	1.89	4.67	3.26

Return on Investment (ROI) (PBT/Networth)		0.07	0.21	0.13

Debt Equity Ratio (Total Liability/Networth)		2.75	3.28	1.21

Current Ratio (Current Asset/Current Liability)		10.77	5.70	5.55

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND OUTLOOK

During the year, the Company has registered total sales volume of 147900 MT as against 130637 MT in 2008-09 and has become the largest manufacturer of newsprint in India. The production during the year was 142494 MT as against 136869 MT during 2008-09 and achieved capacity utilization of 98.27%.

However, keeping in view the steady trend of the market demand and upward momentum in prices of newsprint and writing and printing paper, a dynamic management team and aggressive business approach, the Company looks for significant improvement in the performance for the current financial year.

ENVIRONMENT MANAGEMENT

Subject continues to attach a high importance of clean production in paper manufacturing. The management is committed to save the Environment, uphold Human Safety and Health. EPML has implemented its policies and focus on Environment, Health and Safety, Quality and Energy as under:

• Compliance with all relevant legislative requirements.

• Reducing Pollution Load in terms of Liquid Discharge, Air Emission and Land Conservation.

• Saving Energy and preserving natural resources like Water, Raw material, Fuels.

• Generating Human Awareness in Environment, Safety and Health.

• Minimising the Unsafe Acts and Unsafe working conditions.

• Promoting comprehensive programs to propagate Health and Environmental Safety.

M/s DNV (M/s Det Norske Veritas AS, Netherland) has renewed its Certification for the following Integrated Management System (IMS) in February 2010 and regularly visiting both the plants at Balasore - Orissa and Kolkata to conduct their Surveillance Audit twice in a year:

1) ISO 9001:2008 - Quality Management System

2) ISO 14001:2004 - Environment Management System - EMS

3) OHSAS 1 8001:2007 - Occupational Health and Safety Management System.

The Company continues it's round the clock efforts to operate as the most environment friendly paper mills in India. It has initiated several steps for upgradation of effluent treatment plant including sludge dewatering system, management of solid wastes through recycling, feeding of ETP sludge to Boiler and rain water harvesting, etc.

The aforesaid steps have resulted in declining water consumption and energy consumption, which is reflected in the data submitted for Energy Conservation in this report.

EXPANSION PLANS

The Company has taken necessary steps to set up 400 TPD(1 32000 TPA) Newsprint project at a project cost of Rs.5000 millions. The project is likely to be set up in South India or at existing location at Balasore.

The Company is also in the process of setting up 600 TPD(200000 TPA) wood based integrated pulp and paper mill in Orissa alongwith necessary infrastructural facilities and ancillaries. Steps are being taken for evaluation of all parameters including land acquisition, utility feasibilities, cultivation of plantation, discharge of water etc. The project will be set up in 2 phases and 1st phase of 300 TPD (100000 TPA) at a project cost of Rs.10000 millions is likely to be completed in the year 2013-14.

Management's Discussions and Analysis Industry Scenario

Industry Scenario

While India accounts for nearly 15 percent of the world population, it consumes only 1 per cent of the global paper production. The country's per capita consumption of paper at about 6-7 kgs is very low as compared to the world average of over 50 kgs.

Domestic paper and paperboard demand expects to grow at a CAGR of 6.8 per cent from 7.7 million tons to 10.7 million tons over 2008-09 to 2013-14, while global demand is likely to grow at a CAGR of 2 percent. With the revival in demand and shortage of capacity, raw material prices are expected to rise over the next 2 years, which will lead to the increase in paperboard and newsprint prices.

Consumption of pa per is closely linked to the economic development of a country. In India, though the per capita consumption of paper is low, it is gradually improving with the buoyant economic growth. Industrial production, expenditure incurred on the print media, government spending on education, population growth and literacy levels are the other contributing factors.

In 2008-09, the paper industry's market size (including newsprint) has been estimated at Rs.321 billion. It has grown at a CAGR of 10.5 per cent over the last 5 years from around Rs.195 billion in 2003-04. Writing and printing (W and P) paper is the highest value segment. It accounts for nearly 39 per cent of the total market size. This is followed by paperboard, which accounts for about 37 per cent. Newsprint and specialty segment account for 19 per cent and 5 per cent, respectively.

Considering that an increasing proportion of the raw material requirement is met through imports, the domestic paper industry is affected by fluctuations in global raw material prices. Additionally, domestic wastepaper prices tend to move in line with international wastepaper prices.

Printing and Writing Paper

Demand for Writing and Printing paper expects to increase from 2.9 million tons in 2008-09 to 4 million tons in 2013-14, a CAGR of 6.5 per cent. This is higher than the increase of 6 per cent CAGR witnessed between 2003-04 and 2008-09.

The factors that affect demand for writing and printing (W and P) paper include printing of books and stationery material for education; usage of office printing and stationery; and printing of company published statutory documents such as annual reports, share issue forms, and other documents. Educational books and materials account for the highest share of demand. As growth in education is fairly insulated from variations in the economic cycle, demand for paper from this segment is, to a large extent, unaffected by slowdown in the economy.

Around 200,000 new schools are expected to be established in the country by 2015, as an outcome of the Indian Government's Right to Education Act (RTE) initiative. In 2009, government had passed the RTE to stimulate growth and development of education in the country. The expected growth in education would translate into a steady growth of 4-5 per cent from cream wove paper, the variety that is mostly used in school textbooks in India. Demand for office stationery and printing will increase as the performance of the Indian economy improves. As a result, demand for maplitho would increase by 5-6 percent and that for copier paper by 15 per cent.

Newsprint Industry

Demand for newsprint estimates to increase by 8.6 per cent CAGR, from 1.8 million tons in 2008-09 to 2.7 million tons in 2013-14. The increase will be in line with the expected growth in circulation of print media, particularly vernacular newspapers. The increasing level of literacy in the country along with low penetration of online media is driving circulation growth for print media. Demand for newsprint had increased by about 6 per cent CAGR, from

1.3 million tons in 2003-04 to 1.8 million tons in 2008-09.

Circulation of vernacular print media expects to increase by 5.5 per cent CAGR over 2008 to 2013, and reach around 68.2 million copies. The circulation of English print media will increase by 2 percent CAGR, to around 1 1.2 million copies. The growth in circulation of vernacular newspapers has been providing an impetus to the domestic newsprint industry. Vernacular newspapers meet 70 per cent of their requirement using domestic newsprint, and the balance through imports. For English newspapers, the mix of domestic and imported newsprint

is 30:70.

On an average, imports have been accounting for 50-55 per cent of total newsprint consumption, as domestic newsprint is considered to be lower in quality on account of the raw material mix and level of technology in domestic newsprint capacities. Moreover, import duties on newsprint have historically been low (5 percent, reduced to 0 per cent since July 2009) on account of strong bargaining power of large media companies.

Corporate Overview

Subject has a place of pride in the manufacture of newsprint with a capacity of 1,45,000 Tons per annum, the largest in India. The quality of newsprint manufactured by the company has always got excellent customers' response.

Despite sluggish economic and recessionary market conditions, the Company has posted reasonably satisfactory performance. Subject continued to offer quality newsprint products with the adoption of modern manufacturing technology. However, keeping in view the steady trend of the market demand and upward momentum in prices of newsprint and writing and printing paper, a dynamic management team and aggressive business approach, the Company looks for significant improvement in the performance for the current financial year.

AWARDS

· The company started Total Productive Maintenance (TPM) at both its plant - Balasore, Orissa and Kolkata in 2001. After achieving TPM Excellence 1 st Category Award in 2006, they continued with the TPM practices and achieved excellence in consistent tpm commitment award in 2008 and look forward to achieve the WORLD class award from JIPM (Japan Institute of Plant Maintenance) Japan.

· Subject also upgraded its Integrated Management Systems(IMS) covering ISO 9001 : 2008; ISO 14001 : 2004 and OHSAS 18001 : 2007 in February, 2010, duly Audited and Certified by DNV (Det Norske Veritas, Netherland) the certifying authority.

· "2nd Best Paper Award" from IPPTA for the paper entitled "Technological Advancement in Environment Friendly De-inking Process for Quality Improvement and Cost Optimisation".

· 2nd Best Presentation certificate from KITA (Kitakushu International Tech no-cooperative Association) on the subject of "Measures and steps to introduce the new knowledge from JICA for Energy Conservation in their Organization".

· " 1 st Best Paper Award" from IPPTA for the paper entitled" Cost effectiveness of Machine Clothing by paper Selection and Optimisation".

· Subject received the "1st Runner-Up" trophy from "EMAMI 1 stKAIZEN CONVENTION 2009" in January, 2010 at their Corporate Office, Kolkata.

· 2nd Best Paper Award from IPPTA for the paper entitled "Prepareness of Indian Industry for the Decade - steps taken at Subject.

· Subject received the "BEST PUBLIC MESSAGE" in view of their CSR activities from

· EXPOOrissa2010.

· Further, employees are rewarded through recognition and award. Key performance indicators by all Heads of Departments are subjected to a management review at the Management Review Meeting.

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011

Particulars		Year ended 31.03.2011
a) Net Sales		4298.400
b) Other Operating Income		23.400
Total Operating Income		4321.800
Expenditure
(a) (Increase)/decrease in Stock		(96.600)
(b) Consumption of Raw Materials, Chemicals and Stores		2813.800
(c) Staff Cost		279.200
(d) Power and Fuel		430.800
(e) Other Expenditure		243.300
(f) Depreciation		272.400
Less: Transfer from Revaluation Reserve		(6.600)
		3936.300
Profit From Operations before other Income Interest		385.500
Other Income		11.400
Profit from Operation before Interest		396.900
Interest		215.800
Profit before Tax		181.100
Tax Expense
- Current Tax		36.000
- Income Tax for earlier years		0.200
- Deffered Tax		42.100
- MAT Credit Entitlement		(35.900)
Net Profit after Tax		138.700
Paid Up Equity Share Capital ( Face Value of the share Rs.2/- each )		121.000
Reserves (Excluding Revaluation Reserves)		1496.000
-Basic and Diluted Earning Per Share (Rs.)		2.29
Public Share Holding
- Number of Shares		15132513
- Percentage of shareholding		25.01
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares		--
- Percentage of share (as a % of the total shareholding of promoter and promoter group)		--
- Percentage of shares(as a % of the total share capital of the company)		--
b) Non-encumbered
- Number of Shares		45366537
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)		100
- Percentage of Share (as a % of the total share capital of the company)		74.99

Statement of Assets and Liabilities

Rs. In Millions

		Audited
S. N.	Particulars	Year ended 31.03.2011
1.	Shareholders Funds
	a) Share Capital	121.000
	b) Reserves and Surplus	1573.800
		1694.800
2.	Loan Funds	3850.000
3.	Deferred Tax Liability (Net)	345.700
		5890.500
4.	Fixed Assets	4061.600
5.	Investments	5.700
6.	Current Assets, Loans and Advances
	a) Inventories	764.600
	b) Sundry Debtors	712.600
	c) Cash and Bank Balances	41.000
	d) Loans and Advances	505.500
		2023.700
7.	Less: Current Liabilities and Provisions
	a) Current Liabilities	158.200
	b) Provisions	42.300
		200.500
8.	Net Current Assets	1823.200
		5890.500

Note:

1) The above financial results have been reviewed by the Audit Committee and taken-on record by the Board of Directors in its meeting held on 30.05.2011.

2) Three investor complaints were received and resolved during the year and no complaint was pending at the beginning and at the end of the year.

3) The Board has recommended a dividend @ 30% for the financial year 2010-11.

4) The company has taken up project for manufacture of 175,000 tpa writing and printing paper with wood/Bamboo pulp mill at a project cost of Rs.12250.000 millions at its existing site at Balasore, Orissa.

5) Comparative figures have been rearranged / regrouped wherever necessary

Fixed Assets:

Free Hold Land
Lease Hold Land
Building
Plant and Machinery
Furniture and Fittings
Vehicles
Software

Website Details:

Corporate Profile:

Subject is the largest newsprint manufacturer in India and has embarked on an expansion to emerge as one of the largest in its industry in India.

Subject (established in 1982) is a paper mill based on recycled - fiber located in Balasore (Orissa) and Kolkata (West Bengal).

The Company is a constituent of the Emami Group, which possesses diverse business interests comprising FMCG, writing instruments, healthcare, retail departmental stores and real estate.

What they produce:

The Company possesses an installed capacity to manufacture 1,45,000 tonnes per annum of newsprint, printing and writing paper.

Who are their customers:

Newsprint: Hindustan Times, The Times of India, Dainik Jagran, Dainik Bhaskar, ABP (The Telegraph, Ananda Bazar Patrika), The Samaja, Prabhat Khabar, Sanmarg, Bartaman, Malayam Manorama and Deccan Herald amongst others.

Writing and printing paper: Government presses, Orissa Bureau of Text Books (Bhubaneswar), Yugbodh Prakashan- Raipur, Govt. Press-Cuttack, State Bank of India, UCO Bank, Swapna Printing Press-Kolkata, among others.

What they are proud of:

Subject has been making profits since inception across various industry cycles.

The company's revenues and cash profits registered a growth of 97% and 95% respectively for the year ended 31st March 2009.

Certification
ISO 9001:2000

Quality Management System

ISO 14001:2000

Environmental Management System

OHSAS 18001:1999 to OHSAS 18001:2007

Occupational Health and safety Management System

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	Indian Rupees
US Dollar	1	Rs.44.93
UK Pound	1	Rs.72.43
Euro	1	Rs.63.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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.

MIRA INFORM REPORT

698.726

815.514

754.128

865.731

62.913

30.942

0.000

671.073

834.405

2186.840

22.707

137.791

42.469

42.469

202.967

1983.873

2099.885

1.72

2.96

1.89

0.07

2.75

10.77

Unit