MIRA INFORM REPORT

Report Date :

07.09.2011

IDENTIFICATION DETAILS

Name :	MALU PAPER MILLS LIMITED (w.e.f. 24.04.1998)
Formerly Known As :	MALU SOLVEX LIMITED
Registered Office :	Heera Plaza, 4^th Floor, Near Telephone Exchange, Nagpur – 440008, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	11.01.1994
Com. Reg. No.:	11-076009
Paid-up Capital :	Rs. 170.593 Millions
CIN No.: [Company Identification No.]	L15142MH1994PLC076009
TAN No.: [Tax Deduction & Collection Account No.]	NGPM03504E
PAN No.: [Permanent Account No.]	AACCM4333M
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Paper
No. of Employees :	Information not divulged by management

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1500000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be under pressure. However, trade relations are reported as fair business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Name :	Mr. Girish Malpani
Designation :	Chief Financial Officer and Compliance Officer
Date :	05.09.2011

LOCATIONS

Registered Office :	Heera Plaza, 4^th Floor, Near Telephone Exchange, Nagpur – 440008, Maharashtra, India
Tel. No.:	91-712-2760308/2733100/2778506
Fax No.:	91-712-2760310
E-Mail :	contacts@malupaper.com info@malupaper.com
Website :	www.malupaper.com
Factory 1 and 2 :	Village Borujwada, Nagpur – Saoner Road, Taluka Saoner, District Nagpur, Maharashtra, India
Factory 3 :	Village Heti (Surla), Saoner MIDC Industrial Area, Taluka Saoner, District Nagpur, Maharashtra, India

DIRECTORS

As On 29.09.2009

Name :	Mr. Damodarlal Ramlal Malu
Designation :	Chairman
Address :	4 Poonam Chaya Ravi Industrial Co Near Natraj Society Thane, Maharashtra, India
Date of Birth/Age :	07.07.1946
Qualification :	Graduate And LLB
Date of Appointment :	01.11.1994
DIN No.:	00301120
Name :	Mr. Punamchand Ramlal Malu
Designation :	Managing Director
Address :	1249 Neelkamal Central Avenue Nagpur-440002, Maharashtra, India
Date of Birth/Age :	13.03.1952
Date of Appointment :	01.11.1994
DIN No.:	00301030
Name :	Mr. Banwarilal Bhanwarlal Malu
Designation :	Joint Managing Director
Address :	Kamal Sadn' Gandhibagh Nagpur -440002, Maharashtra, India
Date of Birth/Age :	01.06.1959
Qualification :	Graduate
Date of Appointment :	01.11.1994
DIN No.:	00301297
Name :	Mr. Vasudeo Bhanwarlal Malu
Designation :	Director
Address :	Kamal Sadn' Gandhibagh Nagpur -440002, Maharashtra, India
Date of Birth/Age :	07.06.190
Qualification :	Graduate
Date of Appointment :	01.11.1994
DIN No.:
Name :	Mr. Satyanarayan Nandlal Nuwal
Designation :	Director
Address :	37, Kachipura, Ramdaspeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	25.07.1952
Date of Appointment :	29.09.2008
DIN No.:	00713547
Name :	Mr. Satyanarayan Radhakrishna Rathi
Designation :	Director
Address :	"Shraddha" East Wardhman Nagar, Near Radhakrishna Hospital, Nagpur 440 008, Maharashtra, India
Date of Birth/Age :	07.09.1953
Qualification :	Graduate
Date of Appointment :	11.11.2005
DIN No.:	01797378
Name :	Mr. Chandrakant Jaydevshankar Thakar
Designation :	Director
Address :	220, Chandramouli, Near Verma Tractor Co., East Wardhman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	21.04.1936
Qualification :	Graduate And LLB From Nagpur University
Date of Appointment :	11.11.2005
DIN No.:	00784189
Name :	Mr. Anil Kumar Purushottam Das Rathi
Designation :	Director
Address :	P/No/33, Central Bazar Road, Ramdaspeth Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	03.06.1954
Date of Appointment :	29.09.2008
DIN No.:	01874539
Name :	Mr. Purushottam Ramlal Malu
Designation :	Director
Address :	1249 Neelkamal Central Avenue Nagpur-440002, Maharashtra, India
Date of Birth/Age :	14.07.1957
Date of Appointment :	01.11.1994
Date of Cessation :	30.07.2009
DIN No.:	01720007
Name :	Mr. Ghashiram Jhumarlal Malu
Designation :	Director
Address :	1249 Neelkamal Central Avenue, Nagpur-440002, Maharashtra, India
Date of Birth/Age :	13.02.1950
Date of Appointment :	01.11.1994
Date of Cessation :	30.07.2009
DIN No.:	02009793
Name :	Mr. Lalitsingh Hullasmal Mehta
Designation :	Director
Address :	Gem House, 4^th Floor, Hiranandani Garden, Powai, Mumbai, Maharashtra, India
Date of Birth/Age :	28.03.1933
Date of Appointment :	11.11.2005
Date of Cessation :	30.07.2009
DIN No.:	01984402
Name :	Mr. Omprakash Banshilal Bhattad
Designation :	Director
Address :	1, Bhurra Sahib Street, Chennai 600 002, Tamilnadu, India
Date of Birth/Age :	05.12.1953
Date of Appointment :	11.11.2005
Date of Cessation :	30.07.2009
DIN No.:	02666309

KEY EXECUTIVES

Name :	Mr. Girish Malpani
Designation :	Chief Financial Officer and Compliance Officer
Name :	Mr. Gyanesh Verma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	8,148,873	47.77
Bodies Corporate	3,032,144	17.77
Sub Total	11,181,017	65.54
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11,181,017	65.54
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	875,531	5.13
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2,795,795	16.39
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	2,131,377	12.49
Any Others (Specify)	75,530	0.44
Clearing Members	46,785	0.27
Non Resident Indians	28,745	0.17
Sub Total	5,878,233	34.46
Total Public shareholding (B)	5,878,233	34.46
Total (A)+(B)	17,059,250	100.00
© Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	17,059,250	-

“Promoter and Promoter Group”

Sl. No.	Name of the Shareholder	Total Shares held
		Number	As a % of grand total (A)+(B)+(C)
1	Bhanwarlal Malu	125	0.00
2	Punamchand Malu	402,208	2.36
3	Banwarilal Malu	372,912	2.19
4	Damodarlal Malu	345,833	2.03
5	Purushottam Malu	302,083	1.77
6	Vasudeo Malu	726,424	4.26
7	Ghasiram Malu	50,000	0.29
8	Frontline Commercial Private Limited	962,222	5.64
9	Marigold Farms Private Limited	412,500	2.42
10	Wistaria Farms Private Limited	1,033,500	6.06
11	Shrawankumar Malu	283,333	1.66
12	Radheshyama Malu	217,708	1.28
13	Venugopal Malu	217,708	1.28
14	Ganpati Malu	181,250	1.06
15	Damodarlal Malu HUF	158,333	0.93
16	Punamchand Malu HUF	158,333	0.93
17	Purushottam Malu HUF	158,333	0.93
18	Shrawankumar Malu HUF	158,333	0.93
19	Kaveri Malu	1,052,487	6.17
20	Suman Malu	403,750	2.37
21	Kaushalya Malu	170,833	1.00
22	Anita Malu	170,833	1.00
23	Pushpa Malu	170,833	1.00
24	Sushila Malu	170,833	1.00
25	Sunflame Fuels Private Limited	527,255	3.09
26	Omprakash Malu	12,500	0.07
27	Manisha Malu	262,500	1.54
28	Kantadevi Malu	25,000	0.15
29	Brijmohan Malu	50,000	0.29
30	Bharat Malu	189,583	1.11
31	Shashi Malu	667,464	3.91
32	Banwarilal Malu HUF	129,933	0.76
33	Vasudeo Malu HUF	370,117	2.17
34	Gajendra Malu	253,216	1.48
35	Narayan Malu	266,075	1.56
36	Solar Carbon Private Limited	96,667	0.57
37	Shalini V Malu	50,000	0.29

“Public” and holding more than 1% of the total no. of shares

Sl. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	Ashok Kumar Damani	289,312	1.70
2	Bips Tradecom Private Limited	204,817	1.20
	Total	494,129	2.90

BUSINESS DETAILS

Line of Business :

Manufacturer of Paper

Products :

Item Code No.	Product Description
48.01	Newsprint
48.02	Kraftpaper

PRODUCTION STATUS (As On 31.03.2009)

Unit I (Kraft Paper Division)

Licensed Capacity	25 TPD 8250 TPA
Installed Capacity	10800.500 MT

Unit II (Newsprint Division)

Licensed Capacity	60 TPD 19800 TPA
Installed Capacity	18060.022 MT

Unit III (Newsprint Division)

Licensed Capacity	150 TPD 49500 TPA
Installed Capacity	28186.733 MT

GENERAL INFORMATION

Customers :

· Lunes Publishers Private Limited

· Haldiram’s

· Marico

· Indo Rama

· The Indian Express

· Nav Bharat

· Saraswaty Press Limited

No. of Employees :

Information not divulged by management

Bankers :

· Axis Bank Limited – M.G. House, Rabindranath Tagore Road, Besides Board Office, Civil Lines, Nagpur – 440001, Maharashtra, India

· State Bank of India – Industrial Finance Branch, Bharat Nagar, Nagpur – 440010, Maharashtra, India

· Bank of Baroda

· Bank of India

· Jammu and Kashmir Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
From State Bank of India, Nagpur	117.500	140.000
From Bank of Baroda, Mumbai	81.000	90.000
From Bank of India, Mumbai	126.000	140.000
From Jammu and Kashmir Bank, Mumbai	117.000	130.000
From Axis Bank, Nagpur (secured by first paripassu charge on the entire fixed assets of the company with all lenders and by second charge on the current assets)	42.500	50.000
From State Bank of India	106.021	51.543
From Axis Bank	98.911	99.946
From Bank of India (secured by hypothecation of stock in trade and book debts and by second charge on the fixed asset)	59.763	0.000
Others :
From ICICI Bank Limited, Nagpur	0.394	2.469
From Sigma Shrachi Finance Limited	0.288	0.000
From Sundaram Finance Limited	0.685	0.000
From Citi Bank NA A/c CFIL, Nagpur	0.000	0.184
From SBI Car Loan, Nagpur (secured against vehicles)	0.134	0.670
Total	750.196	704.812

Notes:

· From State Bank of India, Nagpur and Bank of Baroda, Mumbai and Bank of India, Mumbai and Jammu and Kashmir Bank, Mumbai and Axis bank, Nagpur secured by first paripassu charge on the entire fixed assets of the company with all lenders and second charge on the current assets.

· From State Bank of India, Nagpur, Bank of India, Mumbai and Axis Bank, Nagpur secured by hypothecation of stock-in-trade and books debts and second charge on the fixed assets.

· From ICICI Bank Limited, Sigma Shrachi Finance Limited, Sundaram Finance Limited and SBI Car Loan, Nagpur (secured against vehicles)

Secured Loans	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
State Loan Account
Deferred Sales Tax Loan
E.C. No.I	22.839	18.872
E.C. No.II	64.176	49.072
E.C. No.III	3.885	3.149
Total	90.900	71.093

Banking Relations :	--
Financial Institute :	· Sigma Shrachi Finance Limited · Sundaram Finance Limited
Auditors :
Name :	Demble Ramani and Company Chartered Accountant
Address :	201, MG House, R.T. Road, Civil Lines, Nagpur – 440001, Maharashtra, India
Tel. No.:	91-712-3918630/3918631
Fax No.:	91-712-3918654
E-Mail :	dembleramani@yahoo.co.in
Pan No.:	AABFD9880A
Internal Auditors :	Samria and Company Chartered Accountant

CAPITAL STRUCTURE

As On 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17059250	Equity Shares	Rs. 10/- each	Rs. 170.593 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		170.593	170.593	170.593
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		210.467	263.824	238.495
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		381.060	434.417	409.088
LOAN FUNDS
1] Secured Loans		750.196	704.812	335.282
2] Unsecured Loans		90.900	71.094	52.126
TOTAL BORROWING		841.096	775.906	387.408
DEFERRED TAX LIABILITIES		0.411	21.366	11.330
TOTAL		1222.567	1231.689	807.826
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		931.806	987.680	135.574
Capital work-in-progress		0.000	0.000	490.708
INVESTMENT		1.100	1.100	1.100
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	167.929	151.532	76.293
	Sundry Debtors	224.273	78.034	81.722
	Cash & Bank Balances	32.918	15.975	17.641
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	83.419	100.351	40.668
Total Current Assets		508.539	345.892	216.324
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	206.761	90.958	26.860
	Other Current Liabilities	10.702	8.956	7.133
	Provisions	1.415	3.069	1.887
Total Current Liabilities		218.878	102.983	35.880
Net Current Assets		289.661	242.909	180.444
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1222.567	1231.689	807.826

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	1516.384	591.937	573.290
		Other Income	2.901	1.731	4.142
		TOTAL (A)	1519.285	593.668	577.432
Less	EXPENSES
		Material cost and manufacturing expenses	1304.250	502.775	455.861
		Directors remuneration	3.600	2.700	1.800
		Employees remuneration and benefits	22.957	8.609	6.513
		Administrative expenses	11.473	6.237	17.281
		Selling, distribution and other expenses	31.128	15.271	16.426
		Increase/Decrease in stock	(17.614)	(21.122)	0.159
		TOTAL (B)	1355.794	514.470	498.040
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		163.491	79.198	79.392
Less	FINANCIAL EXPENSES (D)		106.077	12.320	8.772
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		57.414	66.878	70.620
Less/ Add	DEPRECIATION/ AMORTISATION (F)		131.608	25.432	16.598
	PROFIT BEFORE TAX (E-F) (G)		(74.194)	41.446	54.022
Less	TAX (I)		(20.837)	16.117	18.362
	PROFIT AFTER TAX (G-I) (J)		(53.357)	25.329	35.660
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		52.057	56.728	51.068
Less	APPROPRIATIONS
		General Reserve	0.000	30.000	30.000
	BALANCE CARRIED TO THE B/S		(1.300)	52.057	56.728
	Earnings Per Share (Rs.)		(3.13)	1.48	2.09

QUARTERLY RESULTS

PARTICULARS	30.09.2009 1^st Quarter	31.12.2009 2^nd Quarter	31.03.2010 3^rd Quarter	30.06.2010 4^th Quarter
Net Sales	312.090	277.480	339.890	441.500
Total Expenditure	315.850	299.730	273.200	402.580
PBIDT (Excl OI)	(3.760)	(22.250)	66.690	38.920
Other Income	0.870	0.980	24.950	1.320
Operating Profit	(2.890)	(21.270)	91.630	40.230
Interest	25.440	26.110	15.690	24.920
PBDT	(28.330)	(47.380)	75.940	15.310
Depreciation	30.640	31.160	(44.770)	14.860
Profit Before Tax	(58.970)	(78.540)	120.710	0.450
Tax	(20.030)	(26.700)	89.230	0.210
Profit After Tax	(38.940)	(51.840)	31.480	0.240
Net Profit	(38.940)	(51.840)	31.480	0.240

PARTICULARS	30.09.2010 5^th Quarter	31.12.2010 6^th Quarter	31.03.2011 7^th Quarter	30.06.2011 8^th Quarter
Net Sales	439.190	393.550	414.060	415.370
Total Expenditure	395.910	350.800	428.030	424.870
PBIDT (Excl OI)	43.280	42.750	(13.970	(9.500
Other Income	1.230	1.620	26.850	0.770
Operating Profit	44.510	44.380	12.880	(8.740
Interest	28.030	28.380	44.130	34.730
PBDT	16.480	16.000	(31.250	(43.470
Depreciation	14.880	14.870	15.010	15.260
Profit Before Tax	1.600	1.130	(46.260	(58.740
Tax	0.780	0.530	(14.790	(18.150
Profit After Tax	0.820	0.610	(31.480	(40.590
Net Profit	0.820	0.610	(31.480	(40.590

Note: The Quarterly result of 30.06.2009 is not available

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	(3.51)	4.27	3.20
Net Profit Margin (PBT/Sales)	(%)	(4.89)	7.00	9.42
Return on Total Assets (PBT/Total Assets}	(%)	(5.15)	3.11	15.35
Return on Investment (ROI) (PBT/Networth)		(0.19)	0.10	0.13
Debt Equity Ratio (Total Liability/Networth)		2.78	2.02	1.03
Current Ratio (Current Asset/Current Liability)		2.32	3.36	6.03

LOCAL AGENCY FURTHER INFORMATION

The Details of Sundry Creditors

Rs. In Millions

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors
Micro small and medium enterprise (to the extent identified with available information)	5.649	3.023	1.379
Others	201.112	87.935	25.481
Total	206.761	90.958	26.860

FINANCIAL RESULTS:

The Directors are also pleased to inform that this was the first full year of the newly commissioned Unit III of Newsprint writing and printing plant. The quality of the product was well accepted in the market. The company has maintained stability and has shown increase in the total sales.

The Newsprint Paper industry is going through tough times as the economic slowdown has drastically affected the newsprint industry. The prices of the newsprint have fallen by about 25 per cent in the last six months of the financial year 2008-09.

However the economic slowdown and the sudden fall in the price of Newsprint had created lot of pressure on the margins.

MANAGEMENT REVIEW:

INDUSTRY STRUCTURE AND DEVELOPMENTS

There has been noteworthy slump in the global as recession has covered the entire world. The heat of recession can also be felt on Indian Economy. Despite of economic upheaval, credit crisis - the Indian paper and newsprint industry has a huge potentials and prospects in coming future. In the country, demand for paper and newspaper is rapidly increasing. Indian paper industry is one of the underestimated industries, because India’s per capita consumption of paper is just about 6 kg. whereas it is 337 kg in North America, 110 kg. in Europe and 30 kg. in China. Compare to this scenario India par capita consumption is one of the lowest in the World.

The Indian Government has placed a larger emphasis on education as a part of its reforms agenda vide Sarva Shiksha Abhyan, which should enhance the off take of printing and writing paper, a segment in which the company belongs.

PERFORMANCE REVIEW

Despite of recession, heavy burden of cost of raw materials due to increase in fuel cost, sudden fall in the price of newsprint in second half and other economic factors the company has achieved turnover of Rs.1516.400 Millions (net of excise duty) as against Rs.591.900 Millions in the previous year thereby an increase of growth of Rs.924.500 Millions and the operating profit of the increased to Rs. 163.500 Millions compared with the previous year of Rs.79.200 Millions thus registered a growth of Rs. 106.200 Millions.

However increased cost of borrowing, raw material cost, employee cost as well as manufacturing cost the company has posted Cash profit of Rs.57.400 Millions.

The operation of the Company has been progressing satisfactorily. The Company is showing high level of operating performance during the past couple of years in the unit I and II and about 58% capacity utilization in newly commissioned thirdunit.

The Companys 6MW Co- generation Power plant also helped the Company in becoming self-sustainable in its power needs and considerably reducing its energy cost.

FUTURE OUTLOOK

The Indian paper industry is growing at 8 per cent per annum. It is also, expected to grow by 10 per cent by the year 2010 Going forward, the Company continues its drive for sustainable growth. They are focused on the long term and expect that the current downturn will result in consolidation opportunities. They are adopting to successfully compete in difficult market conditions.

With the rapid rise in demand for newsprint from the print media and for packing containers from the FMCG industry, the company is anticipating strong revenue growth in the future. The increased focus on education by the government, an increase in the general level of literacy and continued demand from user industries will further add to the growth prospects of the Company.

However in the immediate short term the industry is likely to be impacted by the worldwide recession in paper industry. The medium to long term prospectus of Indian paper industry are positive.

The future is unpredictable. Market sentiments are unpleasant. Inspite of unforeseen circumstances the company will endeavour to revitalize in the near future and are preparing the company for growth.

However, the first quarter of the current financial year has been a sobering experience for the company as they saw a build-up in stocks, slow demand and fall in prices across segments.

Rs. In Millions

Contingent Liabilities:	2008-09
Bank Guarantee Outstanding	29.722
Letters of credit	34.745
Bonds executed in favour of Government authorities in respect of EPCG Licence towards duty saved agasint which export obligation has to be made	61.401

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31.03.2011

Rs. In Millions

Sr. No.	Particulars	For the year ended 31.03.2011 (Audited)	For the Year ended 31.03.2010 (Audited)
1	Net Sales/Income from Operations	1688.303	1221.675
2	Other Income	31.017	27.536
3	Total Expenditure	1577.319	1156.078
a)	Increase/Decrease in stock in trade.	41.499	(13.265)
b)	Consumption of raw materials.	1499.801	1101.164
c)	Staff Cost	32.085	23.112
d)	Other Expenditure	53.934	45.067
4	Interest	125.459	90.943
5	Depreciation	59.618	47.754
6	Profit (+)/ Loss(-) before tax (1+2-3-4-5)	(43.076)	(45.564)
7	Provision for taxation - Current	0.000	0.000
	Provision for taxation - Deffered	(13.267)	31.730
8	Net Profit (+) / Loss (-) (6-7)	(29.809)	(77.294)
9	Paid-up equity share capial(face value per share Rs.10)	170.593	170.593
10	Reserves excluding revaluation reserves	251.430	281.239
11	Diluted Earnings per shares	(1.75)	(4.53)
12	Aggregate of Non-Promoters Shareholding
*	No. of Shares	5,878,233	5,936,720
*	Percentage of Shareholding. (%)	34.46	34.80
13**	Promoters and promoters group Shareholding
a)	Pledge / Encumbered
*	No. of Shares	Nil	Nil
*	Percentage of Shareholding. (%)	Nil	Nil
b)	Non-encumbered
	No. of Shares	11,181,017	11,122,530
	Percentage of shareholding (%)	65.54	65.20

STATEMENTS OF ASSETS AND LIABILITIES AS ON 31.03.2011

Rs. In Millions

Sr.	Particulars	Year Ended
No.		31.03.2011	31.03.2010
		Audited	Audited
1	SHAREHOLDERS FUNDS :
	(a) Capital	170.593	170.593
	(b) Reserves and Surplus	251.430	281.239
2	LOAN FUNDS	996.994	910.562
3	Deffered Tax Liability	18.781	32.048
1
	TOTAL	1437.798	1394.442
	FIXED ASSETS	1075.109	1112.081
2	INVESTMENTS	1.100	1.100
3	DEFERRED TAX ASSETS	--	-
4	CURRENT ASSETS
	a) Inventories	162.249	192.013
	b) Sundry Debtors	202.844	181.872
	c) Cash and bank balances	41.896	39.164
	d) Other Current Assets	--	--
	e) Loan and Advances	94.916	85.150
	Less : Current Liabilities and Provisions
	a) Liabilities	123.989	207.285
5	b) Provisions	16.327	9.653
	MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFFOR ADJUSTED PROFIT AND LOSS ACCOUNT	--	--
TOTAL	1437.798	1394.442

Notes:

1. The Above results have been taken on record by the Board of Directors at their meeting held on 30.05.2011.

2. The Company operates in only one segment.

3. There were no investor complaints pending at the beginning of the quarter. The number of investor complaints received during the quarter were Nil. All the complaints have been redressed as on 31.03.2011.

4. Previous period's figures have been regrouped whereever necessary to confirm current period's classification.

UNAUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30.06.2011

Rs. In Millions

Sr. No.	Particulars	Quarter ended 30.06.2011 (Unaudited)	Quarter ended 30.06.2010 (Unaudited)
1	Net Sales/Income from Operations	415.369	441.495
2	Other Income	0.765	1.315
3	Total Expenditure	424.873	402.584
a)	Increase/Decrease in stock in trade.	0.655	6.383
b)	Consumption of raw materials.	393.960	376.821
c)	Staff Cost	7.963	7.468
d)	Other Expenditure	22.295	11.912
4	Interest	34.732	24.921
5	Depreciation	15.264	14.856
6	Profit (+)/ Loss(-) before tax (1+2-3-4-5)	(58.735)	0.449
7	Provision for taxation - Current	0.000	0.069
	Provision for taxation - Deffered	(18.149)	0.138
8	Net Profit (+) / Loss (-) (6-7)	(40.586)	0.242
9	Paid-up equity share capial(face value per share Rs.10)	170.593	170.593
10	Reserves excluding revaluation reserves
11	Diluted Earnings per shares	(2.38)	0.01
12	Aggregate of Non-Promoters Shareholding
*	No. of Shares	5,876,233	5,936,720
*	Percentage of Shareholding. (%)	34.46	34.80
13**	Promoters and promoters group Shareholding
a)	Pledge / Encumbered
*	No. of Shares	Nil	Nil
*	Percentage of Shareholding. (%)	Nil	Nil
b)	Non-encumbered
	No. of Shares	11,181,017	11,122,530
	Percentage of shareholding (%)	65.54	65.20

Notes:

1. The above results have been taken on record by the board of directors at their meeting held on 13.08.2011.

2. The statutory auditors of the company have carried out a limited review of the above results.

3. The company operates in only one segment

4. There were no investor complaints pending at the beginning of the quarter. The number of investor complaints received during the quarter were nil, all the complaints have been redressed as on 30.06.2011.

5. Previous period’s figures have been regrouped wherever necessary to confirm current period’s classification.

Form 8:

This form is for

Creation of charge

Corporate identity number of the company

L15142MH1994PLC076009

Name of the company

MALU PAPER MILLS LIMITED

Address of the registered office or of the principal place of business in India of the company

Heera Plaza, 4th Floor, Near Telephone Exchange, Nagpur - 440008, Maharashtra, India

Type of charge

Immovable Property

Movable Property

Floating Charge

Particular of charge holder

Name :	Axis Bank Limited
Address :	M.G. House, Rabindranath Tagore Road, Besides Board Office, Civil Lines, Nagpur – 440001, Maharashtra, India
Email :	parag.gaikwade@axisbank.com

Nature of description of the instrument creating or modifying the charge

1. Indenture of Mortgage

2. Security Sharing Agreement.

3. Security Trustee Agreement.

( All the above documents include single charge)

Date of instrument Creating the charge

24.04.2008

Amount secured by the charge

Rs. 100.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest - Bank Of India : -0.5% below BPLR

Axis Bank : 2.25% below BPLR.

Terms of Repayment - The term loan is repayable for

Bank of India: 20 quarterly installments of Rs.2.500 millions each commencing from December 2008 and

Axis bank: 20 quarterly installments of Rs. 2.500 millions each commencing from 30.09.2008.

Margin – As per agreement

Extent and Operation of the charge - The Term loan is secured by way of First parri passu charge on Fixed Assets, both present and future, and the floating charge on the movable properties of the Company (more specifically mentioned in Schedule I of the Indenture of mortgage) along with the other consortium members.

Short particulars of the property charged

The Term loan is secured by way of First parri passu charge on Fixed Assets, both present and future, and the floating charge on the movable properties of the Company (more specifically mentioned in Schedule I of the Indenture of mortgage) along with the other consortium members.

Fixed Assets:

· Freehold land

· Leasehold land

· Factory building

· Office building

· Staff quarters

· Plant and machinery

· Furniture and fixture

· Office equipment

· Computers and software

· Boiler

· Captive power plant

· Water supply equipments

· Fire fighting equipments

· Effluent treatment

· Electrical installation

· Misc. fixed assets

· Vehicle

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.46.13
UK Pound	1	Rs.74.18
Euro	1	Rs.64.88

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.