MIRA INFORM REPORT

Report Date :

31.10.2011

IDENTIFICATION DETAILS

Name :	BILT GRAPHIC PAPER PRODUCTS LIMITED
Registered Office :	P.O. Ballarpur Paper Mills, District Chandrapur – 442901, Maharashtra
Country :	India
Financials (as on) :	30.06.2010
Date of Incorporation :	16.07.2007
Com. Reg. No.:	11-172382
Capital Investment / Paid-up Capital :	Rs.4500.500 Millions
CIN No.: [Company Identification No.]	U21000MH2007PLC172382
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of Writing and Printing Paper, Wood Pulp and Caustic Soda.
No. of Employees :	10000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 31000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Deepak
Designation :	Company Secretary
Contact No.:	14.06.2011

LOCATIONS

Registered Office :	P.O. Ballarpur Paper Mills, District Chandrapur – 442901, Maharashtra, India
Tel. No.:	91-7172-240282/ 240270/ 240210
Mobile No.:	91-9890478432 (Mr. R. K. Chhabra)
Fax No.:	91-7172-240548 / 240548
E-Mail :	akhilmahajan@bilt.com deepak.bansal@bilt.com corpcom@bilt.com sales@bilt.com
Website :	http://www.bilt.com
Area :	Owned
Location :
Head Office :	Thapar House, 124 Janpath, New Delhi – 110001, Delhi, India
Operating Office :	First India Place, Tower-C, Block-A, Sushant Lok – I, Mehrauli-Gurgaon Road, Gurgaon-122 002, Haryana, India
Factory :	· Pune 105, Milestone Pune, Solapur Highway, Bhadalwadi, Pundhwadi, Pune – 413 105, Maharashtra, India · Andhra Pradesh Varangal District, Kamla Puram, India · Bhiwan Maharashtra, District Baramati, India

DIRECTORS

As on 22.09.2010

Name :

Mr. Bhuthalingam Hariharan

Designation :

Finance Director

Address :

D-2/3, Pachimi Marg, Vasant Vihar, New Delhi-110057, Delhi, India

Date of Birth/Age :

18.04.1957

Date of Appointment :

16.07.2007

DIN No :

00012432

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U51102DL1997PLC112862	Solaris Chemtech Limited	Director	29/12/1997	29/12/1997	-	Amalgamated	NO
U02001DL1992PLC047666	Global Green Company Limited	Director	25/05/1999	25/05/1999	-	Active	NO
U36999DL1989PLC034942	Bilt Tree Tech Limited	Director	17/08/2000	17/08/2000	-	Active	NO
L21010MH1945PLC010337	Ballarpur Industries Limited	Whole-time director	21/06/2001	21/06/2001	-	Active	NO
U67120DL1998PLC198627	Avantha Holdings Limited	Director	26/03/2011	6/03/2002	-	Active	NO
U65999DL2003PLC119508	Newquest Insurance Broking Services Limited	Director	24/03/2003	24/03/2003	-	Active	YES
U67120DL2003PLC198253	Solaris Holdings Limited	Director	4/04/2003	4/04/2003	-	Amalgamated	NO
U74140DL2005PLC135984	Salient Business Solutions Limited	Director	7/10/2005	7/10/2005	-	Active	NO
U22121DL2005PTC138214	Content Services And Publishing Private Limited	Director	8/03/2006	8/03/2006	12/03/2010	Active	NO
U40101DL2005PLC138906	Avantha Power and Infrastructure Limited	Director	13/12/2006	12/06/2006	-	Active	NO
U21000MH2007PLC172382	Bilt Graphic Paper Products Limited	Director	16/07/2007	16/07/2007	-	Active	NO
U24119DL2001PLC111100	Solaris Chemtech Industries Limited	Director	31/12/2008	26/09/2008	-	Active	NO
U67120DL2003PTC121919	Topscore Tradevariety Private Limited	Director	30/09/2010	21/07/2009	-	Active	NO
U24296DL2004PLC129497	Kct Chemicals And Electricals Limited	Director	8/09/2009	21/07/2009	-	Active	NO
U70102DL1981PLC198595	Avantha Realty Limited	Director	30/09/2010	4/11/2009	-	Active	NO
U72900DL2001PLC109058	Biltech Building Elements Limited	Additional director	16/11/2010	16/11/2010	-	Active	NO
U85110KA1998PLC023512	Premier Tissues (India) Limited	Additional director	9/03/2011	9/03/2011	-	Active	NO

Name :

Mr. Yogesh Aggarwal

Designation :

Whole Time Director

Address :

607, B. Aral Jas, DLF Golf Course Road, Gurgaon-122002, Haryana, India

Date of Birth/Age :

08.02.1964

Date of Appointment :

25.08.2008

DIN No :

00233722

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29195DL1984PLC215106	Bilt Industrial Packaging Company Limited	Director	18/06/2002	18/06/2002	-	Active	NO
U51909DL1992PLC048407	Apr Sacks Limited	Director	30/09/2006	24/05/2006	-	Active	NO
U21000MH2007PLC172382	Bilt Graphic Paper Products Limited	Whole-time director	25/08/2008	16/07/2007	-	Active	NO
U92412DL2008PTC185525	Direct Golf Management Services Private Limited	Director	4/12/2008	4/12/2008	-	Active	NO
U24100MH2009FTC190664	SMI Newquest India Private Limited	Additional director	16/02/2011	16/02/2011	-	Active	NO

Name :

Mr. Ravindra Kumar Ahooja

Designation :

Director

Address :

155, Vigyapan Lok Apartment, Mayur Vihar, Phase-I Ext, New Delhi-110021, Delhi, India

Date of Birth/Age :

28.02.1938

Date of Appointment :

19.12.2008

DIN No :

00012607

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
L21010MH1945PLC010337	Ballarpur Industries Limited	Director	28/10/2005	28/10/2005	-	Active	NO
U21000MH2007PLC172382	Bilt Graphic Paper Products Limited	Director	20/10/2009	19/12/2008	-	Active	NO

Name :

Mr. Rajeev Ranjan Vaderah

Designation :

Director

Address :

47, Paschimi Marg, Vasant Vihar, New Delhi-110057, Delhi, India

Date of Birth/Age :

30.08.1949

Date of Appointment :

16.07.2007

DIN No :

00012252

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74899DL1995PLC066734	T H E Paperbase Company Limited	Director	29/10/1997	29/10/1997	-	Active	NO
U29195DL1984PLC215106	Bilt Industrial Packaging Company Limited	Director	14/01/2000	14/01/2000	-	Active	NO
U36999DL1989PLC034942	Bilt Tree Tech Limited	Director	17/08/2000	17/08/2000	-	Active	NO
L21010MH1945PLC010337	Ballarpur Industries Limited	Managing director	1/07/2010	16/10/2000	-	Active	NO
U24297PN2003PTC018363	Imerys Newquest (India) Private Limited	Director	15/09/2003	15/09/2003	-	Active	NO
U21000MH2007PLC172382	Bilt Graphic Paper Products Limited	Director	16/07/2007	16/07/2007	-	Active	NO
U24119DL2001PLC111100	Solaris Chemtech Industries Limited	Director	19/08/2009	2/04/2009	-	Active	NO
U67120DL1998PLC198627	Avantha Holdings Limited	Additional director	3/11/2009	3/11/2009	11/06/2010	Active	NO
U85110KA1998PLC023512	Premier Tissues (India) Limited	Additional director	9/03/2011	9/03/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Deepak Bansal
Designation :	Company Secretary
Address :	IP College for Women, C-4, Staff Flats, Shamnath Nagar, Civil Lines, New Delhi – 110 054, India
Date of Birth/Age :	26.02.1972
Date of Appointment :	25.08.2008
PAN No :	ABTPB4125B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2010

Names of Shareholders	No. of Shares
Ballarpur Industries Limited, India	49940
Mahajan Akhil (Nominee of Ballarpur Industries Limited, India)	10
Pathak Sandeep (Nominee of Ballarpur Industries Limited, India)	10
Jolly Vinu (Nominee of Ballarpur Industries Limited, India)	10
Sehgal Shalinin (Nominee of Ballarpur Industries Limited, India)	10
Ravindra Nadhan K. P. (Nominee of Ballarpur Industries Limited, India)	10
Ballarpur International Paper Holdings B. V. , Netherlands	450000000
Bansal Deepak (Nominee of Ballarpur Industries Limited, India)	10
Total	450050000

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2010

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Bodies corporate	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Writing and Printing Paper, Wood Pulp and Caustic Soda.

Products :

Product Description	Item Code
Paper	4810.000
Wood Pulp	4702
Caustic Soda	281511.01

PRODUCTION STATUS AS ON 30.06.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Paper including Wrapper and Coated Paper	M.T.	NA	604500	422772
Caustic Soda	M.T.	NA	13200	9050
Chlorine	M.T.	NA	6600	4282
Hydrochloric Acid	M.T.	NA	5000	8854
Hypochlorite	M.T.	NA	5280	1065
Rayon Grade Pulp	M.T.	NA	98550	85345

Note :

a) The Installed Capacity is as certified by the Management and license capacity is not given as licensing is not applicable.

b) T he Installed Capacity and Actual Production of paper and wrapper includes Specialized Grades of paper.

c) Includes Qty. 439 (Previous Year 1458) transferred from pre-operative stage relating to capacity expansion.

GENERAL INFORMATION

Customers :

End Users, OEM’s and Industries.

No. of Employees :

10000 (Approximately)

Bankers :

· Axis Bank Limited,

Axis House, 2^nd Floor, Bombay Dyeing Mills Compund, Pandurang Budhakar Marg, Worli, Mumbai-400025, Maharashtra, India

Facilities :

Secured Loan	As on 30.06.2010 (Rs. In Millions)	As on 30.06.2009 (Rs. In Millions)
External Commercial Borrowings *	6739.832	6946.950
Term Loan*	10000.000	0.0000
Total	16739.832	6946.950
Note: (*The above ECB Loan is secured by exclusive first charge on fixed assets and parri-passu charges on current assets of the Company both present and future.)
Unsecured Loan	As on 30.06.2010 (Rs. In Millions)	As on 30.06.2009 (Rs. In Millions)
5,00,00,000 9% Compulsorily Convertible Debentures of Rs.100/- each (Previous Year 15,00,00,000 9% Compulsorily Convertible Debentures of Rs.100/- each)	5000.000	15000.000
Working Capital Loan From Banks	2498.829	1676.839
Total	7498.829	16676.839

Banking Relations :	--
Financial Institution :	· Axis Trustee Services Limited, Axis House, 2^nd Floor, Bombay Dyeing Mills Compund, Pandurang Budhakar Marg, Worli, Mumbai- 400025, Maharashtra, India
Auditors :
Name :	K. K. Mankeshwar and Company Chartered Accountants
Address :	Kingsway Nagpur-440001, Maharashtra, India
Holding Company :	Ballarpur International Paper Holdings B. V., Netherlands
Ultimate Holding Company	Ballarpur Industries Limited, India
Fellow Subsidiaries of Ultimate Holding Company:	· Ballarpur International Holdings B.V. · Ballarpur International Graphic Paper Holdings B.V. · Ballarpur Paper Holdings B.V. · Ballarpur Packaging Holdings B.V. · Ballarpur International Packaging Holdings B.V. · Ballarpur Packaging Holdings Private Limited · Sabah Forest Industries Sdn. Bhd. · Ballarpur Specialty Paper Holdings B.V. · Bilt Tree Tech Limited

CAPITAL STRUCTURE

After 22.09.2010

Authorised Capital : Rs.8501.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.5500.500 Millions

As on 30.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
850100000	Equity Shares	Rs.10/- each	Rs.8501.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
450050000	Equity Shares	Rs.10/- each	Rs.4500.500 Millions

Note :

Of the Above 450000000 Equity shares of Rs.10/-each are held by Ballarpur International Paper Holdings B.V.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2010	30.06.2009	30.06.2008
SHAREHOLDERS FUNDS
1] Share Capital		4500.500	4500.500	4500.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3284.018	2636.845	1590.060
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7784.518	7137.345	6090.560
LOAN FUNDS
1] Secured Loans		16739.832	6946.950	633.750
2] Unsecured Loans		7498.829	16676.839	16246.360
TOTAL BORROWING		24238.661	23623.789	16880.110
DEFERRED TAX LIABILITIES		1396.272	809.453	348.509
TOTAL		33419.451	31570.587	23319.179
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29662.213	23885.009	12491.563
Capital work-in-progress		263.258	6025.628	9958.878
INVESTMENT		330.516	199.123	0.109
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4393.162	2126.366	2478.117
	Sundry Debtors	1726.788	712.736	746.885
	Cash & Bank Balances	383.932	24.884	77.382
	Other Current Assets	6.085	0.734	0.073
	Loans & Advances	4429.529	2746.137	2739.988
Total Current Assets		10939.496	5610.857	6042.445
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2958.210	3078.427	4289.187
	Current Liabilities	3818.294	488.767	363.598
	Provisions	1009.519	754.025	541.013
Total Current Liabilities		7786.023	4321.219	5193.798
Net Current Assets		3153.473	1289.638	848.647
MISCELLANEOUS EXPENSES		9.991	171.189	19.982
TOTAL		33419.451	31570.587	23319.179

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2010	30.06.2009	30.06.2008
	SALES
		Income	21956.282	13890.295	14053.721
		Other Income	100.477	27.802	15.323
		TOTAL	22056.759	13918.097	14069.044
Less	EXPENSES
		Manufacturing Cost	15491.918	8935.813	8921.877
		Personnel Cost	1221.307	991.018	1034.499
		Administration, Selling and Miscellaneous Cost	648.097	357.195	485.185
		Deferred Revenue Expenditure – Amortized (Net)	161.198	62.737	4.995
		Increase / (Decrease) in Stocks	(116.942)	(281.143)	(32.338)
		TOTAL	17405.578	10065.620	10414.218
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		4651.181	3852.477	3654.826
Less	FINANCIAL EXPENSES		1919.964	1525.130	779.078
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2731.217	1327.347	2875.748
Less/ Add	DEPRECIATION/ AMORTISATION		1497.226	806.781	662.578
	PROFIT BEFORE TAX		1233.991	1520.566	2213.170
Less	TAX		586.818	473.781	623.110
	PROFIT AFTER TAX		647.173	1046.785	1590.060
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2542.928	1496.143	0.000
Less	APPROPRIATIONS
		Net Profit Prior to Incorporation	0.000	0.000	93.917
	BALANCE CARRIED TO THE B/S		3190.101	2542.928	1496.143
	EARNINGS IN FOREIGN CURRENCY		2636.848	758.743	551.056
	IMPORTS
		Raw Materials	6590.231	2871.487	2436.800
		Stores & Spares	967.220	551.274	318.381
		Capital Goods	228.424	4653.803	119.435
	TOTAL IMPORTS		7785.875	8076.564	2874.616
	Earnings Per Share (Rs.)		1.44	2.33	3.53

KEY RATIOS

PARTICULARS		30.06.2010	30.06.2009	30.06.2008
PAT / Total Income	(%)	2.93	7.52	11.30
Net Profit Margin (PBT/Sales)	(%)	5.62	10.95	15.75
Return on Total Assets (PBT/Total Assets}	(%)	3.04	5.16	11.94
Return on Investment (ROI) (PBT/Networth)		0.16	0.21	0.36
Debt Equity Ratio (Total Liability/Networth)		4.29	3.92	3.62
Current Ratio (Current Asset/Current Liability)		1.41	1.30	1.16

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company operates in the business of manufacturing and selling of pulp, paper and paper products and its manufacturing operations are spread over three units, namely Ballarpur (Maharashtra), Bhigwan (Maharashtra) and Kamalapuram (Andhra Pradesh).

The global economic slowdown, witnessed since September 2008, continued through the first half of 2009. Most developed economies registered very low or negative GDP growth. This was particularly true for countries in Europe where there was a sharp reduction in economic activity. Even leading emerging economies like China and

India saw a drop in their otherwise high GDP growth rates.

Thankfully, there were some positive signs since October 2009. With a degree of stabilisation in financial markets, there were renewed capital flows, especially into the emerging markets of China and India. The real sector, too, has seen a turnaround. The US has registered a recovery, recording positive growth from Q3, 2009, China recorded 8.7% growth in 2009 and has been showing double-digit growth in the last two quarters, and India has grown by 7.4% in 2009-10, compared to 6.7% a year earlier. There are clear expectations that India will achieve 8.5% growth in 2010-11, and regain its momentum. In first half of 2010, there has certainly been greater optimism and a revival in business sentiments particularly in the growing Asian economies led by China and India.

The paper and pulp industry has strong intrinsic correlation with economic development. And, in line with the macro environment, there has been a gradual improvement in demand through the course of 2009-10. Having said so, the structural changes in the industry has become even more apparent. With demand being subdued, particularly in developed markets, the industry has become much more price sensitive. This has started putting immense pressure on high cost production facilities in these western countries, paving way for low cost producers in the east to increase their exports.

While paper prices improved up during 2009-10, the increase was not in line with the price growth seen in raw materials, particularly pulp. In fact, there was a major squeeze in the margin between pulp prices and paper prices, putting a lot of pressure on profit margins of paper manufacturing companies.

There are several factors that have contributed to these results. Most importantly, the Company was successful in

selling most of the paper that it produced in 2009-10. And, as on 30 June 2010, there were very little finished goods stock with the Company. This is particularly creditable because with the successful commissioning of 165,000 MTPA of additional capacity at Bhigwan and the 165,000 MTPA of additional capacity at Ballarpur in December 2009, there was a need to push significantly higher volumes into the market. And, this was done successfully at a time when other companies in India had also increased their capacities resulting in intense competition. This bears testament to the Company’s ability to create new market segments and effectively position its products providing optimal value propositions to customers.

In addition to catering to the domestic market, the Company also successfully grew its exports. In 2008-09, operations at Kamalapuram, were severely affected by the demand downturn in viscose staple fibres, its core customer segment. With a revival in demand in 2009-10, the output at Kamalapuram was more than doubled to 85,345 MT and significant efficiency gains were achieved from better capacity utilisation. All plant-wise developments and production details are given hereunder:

Unit: Ballarpur

During 2009-10, Unit Ballarpur produced 191,284 MT of paper (including trial run). There were significant improvements made in paper quality in terms of brightness, opacity, bulk and shade of paper by using Precipitated Calcium Carbonate (PCC) as filler. A Precipitated Calcium Carbonate (PCC) plant has been setup at site as a satellite plant for in-house requirements. The mill has changed over to alkaline sizing on three of its paper machines. There was also improvement in ash retention, which has resulted in enhancing the quality of paper while achieving substantial reduction in specific fibre consumption.

There has been a significant increase in capacity of Unit Ballarpur with the installation of a new paper machine PM-7, which was commissioned by Allimand, France, with an installed capacity of 165,000 MTPA. In 2009-10, PM-7 has produced 73,660 MT of paper (including trail run production) out of which about 36% paper was exported. The total exports of this Unit was 33,677 MT of paper. The quality produced out of this machine is of global standards in all aspects.

New paper finishing equipments like globe rewinder, Pasaban Synchro sheeters and beilomatic ream wrapping machines, shrink wrap bundling machine and stretch reel wrap machine have been commissioned to provide better cut and packed paper to customers. This automation has helped in reducing manpower engagement in the mills.

On the product development front, the Unit has successfully manufactured new shades in various products, namely Extensible Sack Craft Paper (ESKP) and Maplitho NSD Premium paper to meet customer requirements, in domestic as well as export markets.

At the back-end, bleached pulp production was 116,831 MT. Enhanced operational efficiencies resulted in increased pulp production, with uniform brightness and increased viscosity. Pulp mill operations have been further optimised with change in the raw material mix of wood and bamboo. This change has enhanced performance at the paper machines in terms of quality of paper produced.

Resource conservation continued to be a key focus area. Water conservation is a key area where in the mill has reduced water consumption to 76 m3/T paper by 3-R (Reduce-Reuse-Recycle) methodology. While the Unit has added additional equipments for improving quality of paper, which has increased electrical load, power consumption was reduced to 1098 KWH/T. This was achieved through implementation of various energy saving innovations across the pulp and paper manufacturing process. Steam consumption was reduced to 3.1 T/T from 3.6 T/T through installation of thermo compressor at PM-6.

Achievement and Awards

• The Mill has implemented 5S initiative with the help of renowned consultant to improve overall operations and

housekeeping levels.

• The Unit is certified for FSC COC and CW certificate from the Forest Stewardship Council.

• The Unit has also certified for OHSAS 18001:2007 by DNV. Now, the unit has certified integrated management system of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007.

• The Unit also secured the First Prize for Excellence in Environment Management awarded by the Greentech Foundation, New Delhi.

Unit: Bhigwan

The total production at Bhigwan in 2009-10 was 248,983 MT of coated paper and coated boards. The existing paper line produced 133,234 MT of coated paper and coated boards - an increase of 9,150 MT over 2008- 09. The total export of this Unit was 49,763 MT of paper.

To meet requirements from increased production, a new pasaban Sheeter was installed in the finishing house. In order to handle increased export volumes and to satisfy the demand of customers for bulk packing, a new German make shrink hooding machine was also installed.

The new paper machine line, which was erected and commissioned in a record period of 10 months and started commercial production from the month of March, 2009 produced 115,749 MT of coated paper. The ramp up of production in this machine was as per the plans and the machine is now operating at full efficiency.

During 2009-10, the Unit has developed some new products. These include LWC 65 GSM, chromo 65 GSM, SBS and playing card board. All the new products were well received by the market.

Resource conservation continued to be a key focus area for the Unit. Innovative process changes and further optimization of wet-end chemicals and coating formulation has helped in reducing usage of chemicals and reduction in fibre consumption. A number of energy conservation measures have resulted in significant reduction in power consumption in the existing paper machine from 654 KWH/MT of paper in 2008-09 to 627 KWH/ MT of paper in 2009-10. Water consumption in the mill has further reduced from 21.07 m3 /MT of paper in 2008-2009 to 16.65 m3/ MT of paper in 2009-10 by various water conservation measures and changes in manufacturing process.

In addition to TQM which has firmly been established in the Unit, the Unit was also involved in 5S implementation. The Unit also obtained FSC-COC certification. These efforts have been recognized at various forums and the Unit has received the following awards in the year 2009-10:

• Good Green Governance award from Srushti Publications, New Delhi.

• Greentech Environment award for Environment Excellence.

• Greentech Safety Award.

Unit: Kamalapuram

The Company’s Kamalapuram unit is the Company’s pulp manufacturing unit that caters to outside customers. This forms Company’s stand-alone pulp business. The Unit primarily produces Rayon Grade Pulp for the viscose fibre industry. It also produces pulp for paper but that is mainly to balance lines and fully utilise capacities. Much of the paper grade pulp is internally used.

The economic slowdown of 2008 had an adverse effect on the global viscose fibre industry. Consequently, in 2008-09, the Rayon Grade Pulp business had been severely affected. In 2009-10, there has been a turn-around. With demand conditions improving in emerging economies and some degree of economic stabilisation across the

globe, viscose fibre demand has picked up and consequently, there was an increase in Rayon Grade Pulp off-take. This has helped grow revenues of Company’s pulp business and re-establish its profitability.

During 2009-10, Unit Kamalapuram produced 85,345 MT of Rayon Grade Pulp. To reduce costs, several initiatives were undertaken. These included:

• Change in raw material furnish without affecting quality of pulp.

• Improved quality control system to reduce off grade pulp generation and reduction in Fibre loss.

• Optimisation of chemical consumption.

• Reduced consumption of coal in boilers by using saw dust generated from chipper operations.

• Measures taken to conserve water and hence reduction in fresh water consumption from 129 m3/MT of pulp to 99 m3/MT of pulp.

• Producer gas plant commissioned to reduce furnace oil consumption.

• Use of non-conventional energy resources, by using solar energy for water heating and street lighting.

In addition, the Unit also undertook some measures for system improvements. This included green belt development by plantation of Eucalyptus trees in an area of 300 acres and implementation of 5S initiatives.

Achievements and Awards

• Unit Kamalapuram was awarded ISO 9001, 14001 and OHSAS 18001 certification from DNV.

Capacity Expansion

Much of the capacity expansion programmes initiated in the last year came on-line in 2009-10.

Unit Bhigwan

Total production from the newly commissioned paper line was 115,749 tonnes in 2009-10. This is a capacity utilisation of 88% reflecting an effective production ramp up.

Unit Ballarpur

Paper from the new machine (PM7) was reeled on 1 August 2009. Commercial production commenced from 1 December 2009 and the total production was 73,660 tonnes (including trial run production).This shows a 63 per cent capacity utilisation.

FORM 8

Corporate identity number of the company	U21000MH2007PLC172382
Name of the company	BILT GRAPHIC PAPER PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	P.O. Ballarpur Paper Mills, District Chandrapur - 442 901, Maharashtra, India deepak.bansal@bilt.com
This form is for	Modification of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	Axis Bank Limited, Axis House, 2^nd Floor, Bombay Dyeing Mills Compund, Pandurang Budhakar Marg, Worli, Mumbai-400025, Maharashtra, India kulkarni.makarand@axisbank.com
Nature of instrument creating charge	No instrument was executed but a mortgage was create by deposit of title deeds by Constructive delivery on the immovable properties of the company situated at Ballarpur and Bhigwan in the state of Maharashtra and Kamalapuram in the state of Andhra Pradesh, in favour of Axis Bank Limited acting as security trustee for the Facilities AGG USD 145 MN sanctioned to the company
Date of instrument Creating the charge	16.05.2011
Amount secured by the charge	Rs.6583.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest USD LIBOR + 2.8% P.A. Terms of repayment As per attached repayment schedule. The first installment of USD 6,820,000 has been paid Margin 2.80% P.A. Extent and operation of the charge First pari passu mortgage and charge on the immovable properties of the company Situated at Ballarpur and Bhigwan in the state of Maharashtra and Kamalapuram in the State of Andhra Pradesh
Short particulars of the property charged (Including location of the property)	The immoveable property and moveable assets of the company, as described in annexure A of the indeture of mortgage dated 22/02/2011 (already filed). First pari passu mortgage and charge on the immovable properties of the company situated at Ballarpur and Bhigwan in the state of Maharashtra and Kamalapuram in the state of Andhra Pradesh
Charge identification number of the charge to be modified	10268669
Particulars of the present modification	The facilities aggregating USD 145 mn. Have been additionally secured by first pari passu Mortgage and charge on the immovable properties of the company situated at Ballarpur and Bhigwan in the state of Maharashtra and Kamalapuram in the state of Andhra Pradesh

FIXED ASSETS

· Land

· Building

· Plant, Machinery and Equipments

· Office Equipments

· 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 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.48.82
UK Pound	1	Rs.78.57
Euro	1	Rs.69.28

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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.