MIRA INFORM REPORT

Report Date :

19.09.2011

IDENTIFICATION DETAILS

Name :	NATH PULP AND PAPER MILLS LIMITED
Registered Office :	Nath House, Nath Road, Aurangabad - 431 005, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.04.1975
Com. Reg. No.:	11-018289
Capital Investment / Paid-up Capital :	Rs.200.000 Millions
CIN No.: [Company Identification No.]	L21100MH1975PLC018289
TAN No.: [Tax Deduction & Collection Account No.]	NSKN01815C
PAN No.: [Permanent Account No.]	AAACN9212A
Legal Form :	A Public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of various types of craft paper.
No. of Employees :	Not Divulged by Management

RATING & COMMENTS

MIRA’s Rating :

C (6)

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial Position of the company is poor. There appears huge accumulated losses recorded by the company. Payments are reported to be slow. The company can be considered for business dealings on a safe and secured 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.

INFORMATION DECLINED BY

Name :	Mr. Vijay Saboo
Designation :	General Manager – Finance
Date :	19.09.2011

LOCATIONS

Registered Office :	Nath House, Nath Road, Aurangabad - 431 005, Maharashtra, India
Tel. No.:	91-240-2376314-17
Fax No.:	91-240-2355762/ 2331188
E-Mail :	admin@nathpaper.com vijaysaboo@nathpaper.com sales@nathpaper.com
Website :	http://www.nathpaper.com
Other Contact Details :	Marketing Department: 91-240-2332459/2354542 Purchase Department: 91-240-2354541
Website :	http://www.nathpaper.com
Factory :	Nathnagar, Paithan, Dist Aurangabad - 431 148, Maharashtra, India
Tel. No.:	91-2431-232181/ 232091
Fax No.:	91-2431-232124
E-Mail :	tapovan@sancharnet.in
Branch/ Sales Office :	1, Chateau Windsor, 86 Veer Nariman Road Mumbai - 400 020, Maharashtra, India
Tel. No.:	91-22-22871001/ 22875653-55
Fax No.:	91-22- 22875652
E-Mail :	admin@nathpaper.com

DIRECTORS

As on 30.09.2010

Name :

Shrirang Shrikishan Agrawal

Designation :

Director

Address :

35, Bansilal Nagar, Aurangabad – 431005, Maharashtra, India

Date of Birth/Age :

16.02.1947

Date of Appointment :

30.12.2009

DIN :

00119681

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24239MH1982PLC026224	MAYO (INDIA) LIMITED	Director	1/7/1999	1/7/1999	Under liquidation	NO
2	U01110MH1992PTC066199	BARKHA FARMS PVT LTD	Director	20/10/1999	20/10/1999	Active	NO
3	U51490MH1985PTC036240	WEXFORD TRADING COMPANY PVT LTD	Director	28/10/1999	28/10/1999	Active	YES
4	U21010MH1987PLC043655	TAPOVAN PAPER AND BOARD MILLS LIMITED	Director	31/03/2000	31/03/2000	Active	YES
5	U24110AP1983PLC004352	RAASI SYNTHETICS AND CHEMICALS LIMITED	Director	30/11/2000	30/11/2000	Active	YES
6	U73100MH2000PLC123602	GLOBAL TRANSGENES LIMITED	Director	31/12/2006	31/12/2006	Active	NO
7	L01122MH1980PLC023364	NATH SEEDS LIMITED	Director	30/01/2008	30/01/2008	Active	NO
8	U01110MH1993PLC073268	AGRI-TECH (INDIA) LIMITED	Director	7/3/2008	7/3/2008	Active	NO
9	U01110MH1991PLC063077	NATH BIO-TECHNOLOGIES LIMITED	Director	29/07/2008	29/07/2008	Active	NO
10	L21100MH1975PLC018289	NATH PULP AND PAPER MILLS LIMITED	Director	30/09/2010	30/12/2009	Active	NO
11	U45400MH2011PTC220458	WELLSPRING PROPERTIES PRIVATE LIMITED	Director	3/8/2011	3/8/2011	Active	NO

Name :

Mr. Nandkishor Laxminarayan Kagliwal

Designation :

Director

Address :

1-B, Beacon, Madam Cama Road, Nariman Point, Mumbai – 400021, India

Date of Birth/Age :

15.04.1946

Date of Appointment :

30.11.2009

DIN :

01691691

Other Directorship :

S.No.	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
1	U24110MH1978PLC020457	NATH INDUSTRIAL CHEMICAL LIMITED	Director	18/04/1992	18/04/1992	-	Active	NO
2	U01110MH1993PLC072842	NATH BIO-GENES (INDIA) LIMITED	Director	29/03/2000	29/03/2000	-	Active	NO
3	U73100MH2000PLC123602	GLOBAL TRANSGENES LIMITED	Director	29/06/2002	29/06/2002	-	Active	NO
4	U01110MH1992PTC066515	FERRY FAX FARMS PVT LTD	Director	20/03/2003	20/03/2003	-	Active	NO
5	U01110MH1993PLC073268	AGRI-TECH (INDIA) LIMITED	Director	30/03/2007	30/03/2007	30/04/2010	Active	NO
6	L21010MH1980PLC022820	RAMA PULP AND PAPERS LIMITED	Director	28/09/2007	31/08/2007	-	Active	NO
7	U01110MH1991PLC063077	NATH BIO-TECHNOLOGIES LIMITED	Director	20/09/2007	20/09/2007	-	Active	NO
8	U99999MH1992PTC067237	PACE FARMS PVT.LTD.	Director	19/01/2008	19/01/2008	-	Active	NO
9	L01122MH1980PLC023364	NATH SEEDS LIMITED	Director	30/01/2008	30/01/2008	30/01/2009	Active	NO
10	L21100MH1975PLC018289	NATH PULP AND PAPER MILLS LIMITED	Director	30/11/2009	30/11/2009	-	Active	NO
11	U01403MH2010PLC209768	NATH ROYAL SEEDS LIMITED	Director	3/11/2010	3/11/2010	-	Active	NO
12	U45400MH2011PTC216927	NATH NIRMAN INFRA PRIVATE LIMITED	Director	2/5/2011	2/5/2011	-	Active	NO
13	U15122MH2011PTC217451	PAITHAN MEGA FOOD PARK PRIVATE LIMITED	Director	13/05/2011	13/05/2011	-	Active	NO

Name :

Mr. Akash Nandkishor Kagliwal

Designation :

Whole-time Director

Address :

Utsah, Adalat Road, Aurangabad – 431005, India

Date of Birth/Age :

10.06.1979

Date of Appointment :

01.10.2006

DIN :

01691724

Other Directorship :

S.No.	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
1	U01100MH1980PTC023168	AKASH FARMS PRIVATE LIMITED	Director	24/02/2000	24/02/2000	-	Active	YES
2	U01100MH1986PTC040083	PARESH FARMS PRIVATE LIMITED	Director	24/02/2000	24/02/2000	-	Active	YES
3	U01100MH1986PTC040076	PRABHA FARMS PRIVATE LIMITED	Director	24/02/2000	24/02/2000	-	Active	YES
4	U01100MH1986PTC040077	MAYO FARMS PRIVATE LIMITED	Director	24/02/2000	24/02/2000	31/07/2006	Active	NO
5	U21010MH1987PLC043655	TAPOVAN PAPER AND BOARD MILLS LIMITED	Director	31/03/2000	31/03/2000	-	Active	YES
6	U05004MH1980PTC023170	ASHU FARMS PRIVATE LIMITED	Director	24/04/2000	24/04/2000	-	Active	YES
7	U29200MH1986PTC040134	TAPOVAN FARMS PRIVATE LIMITED	Director	24/04/2000	24/04/2000	31/07/2006	Active	NO
8	U01100MH1986PTC040086	JEEVAN FARMS PRIVATE LIMITED	Director	3/9/2001	3/9/2001	31/07/2006	Active	NO
9	U01110MH1991PLC063077	NATH BIO-TECHNOLOGIES LIMITED	Director	4/6/2002	4/6/2002	-	Active	NO
10	U01110MH1992PTC066515	FERRY FAX FARMS PRIVATE LIMITED	Director	20/03/2003	20/03/2003	-	Active	NO
11	U01110MH1992PTC066199	BARKHA FARMS PRIVATE LIMITED	Director	2/8/2003	2/8/2003	-	Active	NO
12	U01100MH1998PLC116471	NATH ROYAL LIMITED	Director	8/8/2003	8/8/2003	-	Active	NO
13	L01122MH1980PLC023364	NATH SEEDS LIMITED	Director	6/9/2003	6/9/2003	-	Active	NO
14	U01110MH1993PLC073268	AGRI-TECH (INDIA) LIMITED	Whole-time director	30/09/2009	8/9/2003	-	Active	NO
15	U24239MH1982PLC026224	MAYO (INDIA) LIMITED	Director	10/3/2004	10/3/2004	-	Under liquidation	NO
16	L21100MH1975PLC018289	NATH PULP AND PAPER MILLS LIMITED	Whole-time director	1/10/2006	1/10/2006	-	Active	NO
17	U01110MH1993PLC072842	NATH BIO-GENES (INDIA) LIMITED	Director	30/03/2007	30/03/2007	-	Active	NO
18	U73100MH2000PLC123602	GLOBAL TRANSGENES LIMITED	Director	29/07/2008	29/07/2008	-	Active	NO
19	U24110MH1978PLC020457	NATH INDUSTRIAL CHEMICAL LIMITED	Director	30/06/2010	30/06/2010	-	Active	NO
20	U01403MH2010PLC209768	NATH ROYAL SEEDS LIMITED	Director	3/11/2010	3/11/2010	-	Active	NO
21	U45400MH2011PTC216927	NATH NIRMAN INFRA PRIVATE LIMITED	Director	2/5/2011	2/5/2011	-	Active	NO

KEY EXECUTIVE

Name :	Mr. Vijay Saboo
Designation :	General Manager – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Category of Shareholder	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group^2
Indian
Individuals/ Hindu Undivided Family	15450	0.08
Bodies Corporate	3421564	17.11
Sub Total	3437014	17.19
Public shareholding
Institutions
Mutual Funds/ UTI	78584	0.39
Financial Institutions ^/Banks	2579905	12.90
Sub Total	2658489	13.29
Non-institutions
Bodies Corporate	1511940	7.56
Individuals
Individuals -i. Individual shareholders holding nominal share capital up to Rs 0.100 Million	6603378	33.02
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5506012	27.53
Any Other (specify)	283167	1.42
Clearing member	38890	0.19
Non Resident Indians	195.282	0.98
Employees	48995	0.24
Sub Total	13904497	69.52
Total Public Share Holding	16562986	82.81
Shares held by Custodians and against which Depository Receipts have been issued	--	--
GRAND TOTAL	20000000	100.00

"Promoter and Promoter Group"

Name of the Shareholder	Total Shares held		Shares pledged or otherwise encumbered
	Number	As a % of grand total (A)+(B)+(C)	Number	% of Total shares held	As a % of grand total (A)+(B)+(C)
Nandkishor Kagliwal	11,000	0.06	-	-	-
Jeevanlata Nandkishor Kagliwal	1,350	0.01	-	-	-
Subhash Kagliwal	1,000	0.01	-	-	-
Laxminarayan kagliwal	1,000	0.01	-	-	-
Akash Kagliwal	50	0.00	-	-	-
Ashu Kagliwal	50	0.00	-	-	-
Anil Kagliwal	500	0.00	-	-	-
Anil Kagliwal	500	0.00	-	-	-
Nath Capital and Financial Services	32,871	0.16	-	-	-
Nath Capital and Financial Services	100	0.00	-	-	-
Paresh Farms Private Limited A/c MSFC( Pledged )	638,026	3.19	638,026	100.00	3.19
Paresh Farms Private Limited	59,800	0.30	-	-	-
Paresh Farms Private Limited	1,600	0.01	-	-	-
Paresh Farms Private Limited	8,000	0.04	-	-	-
Paresh Farms Private Limited	71,130	0.36	-	-	-
Paresh Farms Private Limited A/c MSFC ( Pledged)	271,500	1.36	271,500	100.00	1.36
Paresh Farms Private Limited A/c Saraswat Co -Opertaive Bank Ltd pledged	61,350	0.31	61,350	100.00	0.31
Prabha Farms Private Limited	599	0.00	-	-	-
Jeevan Farms Private Limited A/C ARCIL	700,000	3.50	700,000	100.00	3.50
Akash Farms Private Limited	40,545	0.20	-	-	-
Paresh Farms Private Limited	36,043	0.18	-	-	-
Mayo Farms Private Limited	700,000	3.50	-	-	-
Tapovan Farms Private Limited	800,000	4.00	-	-	-
Total	3,437,014	17.19	1,670,876	48.61	8.35

"Public" and holding more than 1% of the Total No.of Shares

SR. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	Life Insurance Coprporation of India	1,074,576	5.37
2	IDBI Bank Ltd	269,529	1.35
3	State Bank of India	1,000,000	5.00
4	Sunita Laxminarayan Attal	333,653	1.67
5	Dipak Kanayalal Shah	303,000	1.52
6	Laxminarayan Attal	260,896	1.30
7	Monarch Research and Brokerage Private Limited	228,369	1.14
	Total	3,470,023	17.35

As on 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie’s Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.45
Public Financial Companies	6.35
Nationalized or Other Banks	17.17
Mutual Funds	0.39
Bodies corporate	23.12
Directors or relatives of Directors	0.10
Other top fifty shareholders	15.91
Others	36.51
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of various types of craft paper.

Products :

Item Code No. (ITC Code)	48-04
Product Description	Double Liner Kraft Paper
Item Code No. (ITC Code)	48-10
Product Description	Coated Paper
Item Code No. (ITC Code)	48-02
Product Description	Writing and Printing Paper

GENERAL INFORMATION

No. of Employees :

Not Divulged by Management

Bankers :

• State Bank of India
• State Bank of Hyderabad

Facilities :

Secured Loans :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Debentures	5.000	5.000
From Financial Institutions	255.135	274.135
Privately Placed Secured Redeemable Bonds [to be secured by first charge ranking pari passu with other institution and debenture holders of all or any part of the assets of the company, as may be decided in consultation with the trustee and subject to the consent from the existing charge holders.]	0.220	0.295
From Banks [secured by hypothecation of stock and book debts and second charge over the immovable and other movable assets of the company ]	2.600	2.600
Total	262.955	282.030
Unsecured Loans :
Security Deposits	3.895	4.457
From Others (Short Term)	117.990	115.670
Total	121.885	120.127

Banking Relations :	--
Financial Institution :	Life Insurance Corporation Of India, Yogakshema, Jeevan Bhima Marg, Mumbai - 400020, Maharashtra, India Industrial Finance Corporation Of India Limited (Ifci Limited), Bank Of Baroda Building, 16, Sansad Marg, P.B.363, Mumbai, Delhi – 110001, India
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	6, Karim Chambers, 40, Hamam Street, Ambalal Doshi Marg, Aurangabad – 431005, Maharashtra, India
Tel. No.:	91-22-40021140 / 22651190 / 22691414 / 22691515
Fax No.:	91-22-22650126
E-Mail :	Mumbai@lodhaco.com
Associates :	Nath Seeds Limited Nath Industrial and Chemicals Limited Rama Pulp and Papers Limited Paresh Farms Private Limited Nath Bio-Genes (India) Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs.10/- each	Rs.350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs.10/- each	Rs.200.000 millions

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		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		443.958	444.997	446.202
4] (Accumulated Losses)		[672.314]	[907.518]	(2215.549)
NETWORTH		[28.356]	[262.521]	(1569.347)
LOAN FUNDS
1] Secured Loans		262.955	282.030	1669.258
2] Unsecured Loans		121.885	120.127	140.586
TOTAL BORROWING		384.840	402.157	1809.844
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Deferred Long Term Funds		167.627	167.627	167.627
TOTAL		524.111	307.263	408.124
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		215.727	251.768	288.614
Capital work-in-progress		2.627	2.627	2.627
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		263.559	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.431	33.995	137.125
	Sundry Debtors	47.170	27.600	25.760
	Cash & Bank Balances	3.553	3.278	6.114
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	77.542	79.392	84.809
Total Current Assets		169.696	144.265	253.808
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	88.934	54.807	92.887
	Current Liabilities	18.479	28.882	36.290
	Provisions	20.085	7.708	7.748
Total Current Liabilities		127.498	91.397	136.925
Net Current Assets		42.198	52.868	116.883
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		524.111	307.263	408.124

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	538.289	350.604	643.714
		Other Income	13.413	40.854	32.491
		TOTAL (A)	551.702	391.458	676.205
Less	EXPENSES
		Manufacturing Expenses	443.500	310.521	578.872
		Trading Purchases	42.485	0.000	0.000
		Administrative and selling Expenses	12.849	9.971	13.642
		Payment to and provision for employees	36.586	31.848	32.883
		Increase / Decrease in stock	[3.302]	20.253	2.405
		TOTAL (B)	532.118	372.593	627.802
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.584	18.865	48.403
Less	FINANCIAL EXPENSES (D)		1.006	11.290	4.638
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.578	7.575	43.765
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.571	43.463	37.149
	Exceptional Item		[10.361]	1344.144	0.733
	PROFIT / LOSS BEFORE TAX (E-F) (G)		[28.354]	1308.256	5.883
Less	TAX (I)		[263.558]	0.225	[1.067]
	PROFIT / LOSS AFTER TAX (G-I) (J)		235.204	1308.031	6.950
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[907.518]	[2215.549]	[2222.499]
	BALANCE CARRIED TO THE B/S		[672.314]	[907.518]	[2215.549]
	IMPORTS
		Raw Materials	101.629	52.891	58.237
		Stores & Spares	0.000	0.556	1.081
	TOTAL IMPORTS		101.629	53.447	59.318
	Earnings Per Share (Rs.)		11.76	65.40	0.35

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011	30.06.2011
Type	1^stQuarter	2^ndQuarter	3^rd Quarter	4^th Quarter	1^stQuarter
Net Sales	164.040	185.910	210.450	213.140	192.530
Total Expenditure	161.280	175.900	197.400	199.510	177.770
PBIDT (Excl OI)	2.760	10.010	13.050	13.630	14.760
Other Income	3.670	1.000	0.640	3.250	8.680
Operating Profit	6.430	11.010	13.690	16.880	23.440
Interest	1.170	1.130	1.240	1.040	2.270
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	5.260	9.880	12.450	15.840	21.170
Depreciation	7.020	7.020	7.500	6.480	7.240
Profit Before Tax	-1.760	2.870	4.950	9.360	13.940
Tax	0.000	0.000	0.000	0.000	0.000
Provisions and contingencies	-1.760	2.870	4.950	9.360	13.940
Profit After Tax	0.000	0.000	0.000	0.000	0.000
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Net Profit	-1.760	2.870	4.950	9.360	13.940

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	42.63	334.14	1.03
Net Profit Margin (PBT/Sales)	(%)	[5.27]	373.14	0.91
Return on Total Assets (PBT/Total Assets}	(%)	[7.36]	330.34	1.08
Return on Investment (ROI) (PBT/Networth)		[1.00]	[4.98]	[0.00]
Debt Equity Ratio (Total Liability/Networth)		[18.07]	[1.88]	[1.24]
Current Ratio (Current Asset/Current Liability)		1.33	1.58	1.85

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
For goods and Services	88.410	54.218	91.392
Due to Micro, Small and Medium Enterprises	0.524	0.589	1.495
Total	88.934	54.807	92.887

The Company:

During the year, the Company's Production of paper aggregated to 25549 tons representing an overall capacity utilization of 67%. Company’s performance in the year ahead shall be significantly better because of economies of scale and near self sufficiency achieved in respect of major inputs.

Strategic Initiatives:

The premium grade kraft paper developed last year has been well received in the market and orders are flowing in on a continuous and sustained basis. It shall be company’s endeavors to retain its market share in this segments in this year ahead. Company has successfully explored a potential demand for its products in United Arab Emirates [UAE]. Company shall endeavor to future enhance its market share.

Financials:

The Company has worked out a restructuring package for its dues to financial institutions and banks. The scheme of rehabilitation has been filed by the Company in the Hon'ble Board for Industrial and financial Reconstruction is receiving active consideration.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Development :

Subject is paper mill which is strategically located at paithan with all infrastructure facilities in place. Company has a broad product portfolio and has the flexibility to manufacturing different grades of paper used in packaging and printing industries

Over the year company has endeavored to reach quality product to its customers and has thus gained a good will / trust amongst its customers with a dedicated and competent human capital at its disposal, company is confident of expanding its space in the paper industry.

Review of Performance :

During the year the company’s sales were Rs.559.823 millions cash profit for the year stood at Rs.18.579 millions. This has been much improved performance over the last year.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90217568
Corporate identity number of the company	U21100MH1975PLC018289
Name of the company	NATH PULP AND PAPER MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Nath House, Nath Road, Aurangabad – 431005, Maharashtra, India
Type of charge	Movable Property Immovable Property
Particular of charge holder	Industrial Finance Corporation Of India Limited (Ifci Limited), Bank Of Baroda Building, 16, Sansad Marg, P.B.363, Mumbai, Delhi – 110001, India
Nature of description of the instrument creating or modifying the charge	Assignment Agreement entered into between IFCI Limited and Asset Reconstruction Company (India) Limited as Trustee of Arcil - AARF- I 1 Trust
Date of instrument Creating the charge	03.12.2007
Amount secured by the charge	Rs.152.400 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest - The rate of interest charged is as per applicable terms and conditions which are described in more detail in the Loan Agreement and Deed of Hypothecation dated18-03-1992 Terms of Repayment - As per applicable terms and conditions which are described in more detail in the Loan Agreement and Deed of Hypothecation Agreement dated 18-03-1992 and as per the Deed of Contributory Mortgage. Margin - As per applicable terms and conditions which are described in more detail in the Loan Agreement and Deed of Hypothecation dated18-03-1992. Extent and Operation of the charge - As per applicable terms and conditions which are described in more detail in the Loan Agreement and Deed of Hypothecation dated18-03-1992. Others - As per applicable terms and conditions which are described in more detail in the Loan Agreement and Deed of Hypothecation dated18-03-1992.
Short particulars of the property charged	The whole of the movable and immovable properties of the Company situate at Wahegaon, Taluka Paithan, Dist. Aurangabad more particularly described in the Loan Agreement and Deed of Hypothecation dated 18-03-1992.
Date of latest modification prior to the present modification	26.06.1992
Particulars of the present modification	By the Assignment Agreement dated 3/12/2007, IFCI, as the true, legal and beneficial owner of the Loan of Rs.55.000 millions. and for the consideration therein mentioned and upon terms and conditions set forth therein, unconditionally and irrevocably sold, assigned, transferred and released to and unto Arcil u/s.5 of the Securitisation Act, 2002, the loan and the underlying security interest. All rights of IFCI in relation to the Loan and underlying security interests are now vested in Arcil

FIXED ASSETS:

• Freehold Land
• Buildings
• Plant and Machinery
• Office Equipments
• Computers
• Vehicles
• Furniture and Fixtures
• Air Conditioner
• Cooling Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.46
UK Pound	1	Rs.74.95
Euro	1	Rs.65.79

SCORE & RATING EXPLANATIONS

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

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.