MIRA INFORM REPORT

Report Date :

06.07.2013

IDENTIFICATION DETAILS

Name :	N R AGARWAL INDUSTRIES LIMITED
Registered Office :	415-418, Janki Centre, 4^th Floor, 29 Shah Industrial Estate, Andheri (West), Mumbai – 400058, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.12.1993
Com. Reg. No.:	11-133365
Capital Investment / Paid-up Capital :	Rs.170.191 Millions
CIN No.: [Company Identification No.]	L22210MH1993PLC133365
PAN No.: [Permanent Account No.]	AAACN7721N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacture of Paper Boards and Newsprint.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 4220000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The credit metrics and financial leverage is deteriorating due to delay in setting up its debt funded unit. There appears significant decline in profit margin due to higher imported raw materials costs from weak rupee. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long Term Rating: B+
Rating Explanation	Ratings indicate that material default risk is present, but a limited margin of safety remains.
Date	September, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Mahesh
Designation :	Accounts Department
Contact No.:	91-22-67317500
Date :	05.07.2013

LOCATIONS

Registered/ Corporate Office :	415-418, Janki Centre, 4^th Floor, 29 Shah Industrial Estate, Andheri (West), Mumbai – 400058, Maharashtra, India
Tel. No.:	91-22-26730667/ 26730570/ 26730668/ 26730913/ 14/ 17/ 2639215/ 56/ 57/ 26347316/ 67317500
Fax No.:	91-22-26730667/ 26730227/ 26320686
E-Mail :	ramesh.iyer@nrail.com admin@nrail.com nrailm@eth.com nrail@bol.net.in admin@nrail.com investors@nrail.com
Website :	http://www.nrail.com
Location :	Owned
Factory 1:	Plot No.169/1 GIDC, Phase – II, Vapi Gujarat – 396195, India
Tel. No.:	91-260-2401634
Fax No.:	91-260-2431706
Email :	admin@nrail.com
Factory 2:	Plot No. 1, Phase 1, GIDC, Vapi, District Valsad – 396195, Gujarat
Tel. No.:	91-260-2431942
Fax No.:	91-260-2426979/ 2428320
Email :	admin@nrail.com
Factory 3:	Plot No. 901.3^rd Phase, GIDC, Vapi. Dist.: Valsad (Gujarat) – 396195, India
Tel No.:	91-260 - 2400052 / 242 1124
Fax No.:	91-260 - 2401836
Email :	admin@nrail.com
Factory 4:	Plot No. 901/P, 3^rd Phase, GIDC, Vapi – 396195, India
Tel No.:	91-260-2400052/ 2421124
Fax No.:	91-260-2401836
Email :	admin@nrail.com
Factory 5:	Sarigam, Taluka, Umbergaon, District Valsad, Gujarat, India

DIRECTORS

(AS ON 23.08.2012)

Name :	Mr. Rajendra Nagin Agarwal
Designation :	Chairman and Managing Director
Address :	5, Sunnyside Lokhandwala Complex, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth :	21.07.1960
Date of Appointment :	08.12.1993
DIN No.:	00176440
Name :	Mr. Raunak Rajendra Agarwal
Designation :	Whole time Director
Address :	5, Sunnyside Lokhandwala Complex, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth :	07.12.1988
Date of Appointment :	01.05.2008
DIN No.:	02173330
Name :	Mr. Sachin Nath Chaturvedi
Designation :	Director
Address :	2803, Shreepati Arcade, A K Marg, Nana Chowk, Mumbai – 400036, Maharashtra, India
Date of Birth :	29.09.1950
Date of Appointment :	08.03.1994
DIN No.:	00553459
Name :	Mr. Parduman Kumar
Designation :	Director
Address :	Flat No.308, Sunrise Apartment, Shastri Nagar, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth :	23.08.1937
Date of Appointment :	05.08.2005
DIN No.:	00179074
Name :	Mr. Radhakrishnan Ramchandra Iyer Chirayathu Matom
Designation :	Director
Address :	B-4, Swami Vivekanand Housing Society, Veera Desai Cross Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth :	10.11.1945
Date of Appointment :	27.02.2007
DIN No.:	01309312
Name :	Mr. Mangilal Bhikhaji Suthar
Designation :	Additional Executive Director
Address :	Flat No.104, Onheight Ashopalav Complex, Chharwada Road, Vapi – 396191, Gujarat, India
Date of Birth :	06.10.1952
Date of Appointment :	11.11.2011
DIN No.:	03634697

KEY EXECUTIVES

Name :	Ms. Hemali Jawahar Sheth
Designation :	Company Secretary and Compliance Officer
Address :	3-E, 1003 Damodar Park, LBS Marg, Ghatkopar (West), Mumbai – 400086, Maharashtra, India
Date of Birth/ Age :	19.06.1988
Date of Appointment :	09.02.2011
PAN No.:	BGIPS8616K
Name :	Mr. Gopal Uchil
Designation :	Chief Financial Officer
Name :	Mr. Mahesh
Designation :	Accounts Department
Name :	Mr. R N Agarwal
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2013)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12460923	73.22
Sub Total	12460923	73.22
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	12460923	73.22
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	2000	0.01
Central Government / State Government(s)	500	0.00
Foreign Institutional Investors	4300	0.03
Sub Total	6800	0.04
(2) Non-Institutions
Bodies Corporate	1178297	6.92
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2186592	12.85
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1037621	6.10
Any Others (Specify)	148867	0.87
Non Resident Indians	146981	0.86
Clearing Members	1886	0.01
Sub Total	4551377	26.74
Total Public shareholding (B)	4558177	26.78
Total (A)+(B)	17019100	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	17019100	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Reena Agarwal	45,38,861	26.67
2	Rajendra Agarwal	79,22,030	46.55
3	Raunak Rajendra Agarwal	32	0.00
	Total	1,24,60,923	73.22
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Delhi Iron and Steel Company Private Limited	632048	3.71
2	Param Capital Research Private Limited	199271	1.17
	Total	831319	4.88

BUSINESS DETAILS

Line of Business :

Manufacture of Paper Boards and Newsprint.

Products :

Products Description	Item Code No.
Duplex Board	480523
Newsprint	480100
Writing and Printing	480200
Kraft Paper	480439, 480449

Exports :

Products :

Finished Goods

Countries :

Sri Lanka

Imports :

Products :

Raw Materials

Countries :

· European Countries

· Singapore

· USA

· UK

· Malaysia

· Japan

· Germany

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

250 (Approximately)

Bankers :

· Bank of India consortium

Andheri Corporate Banking Branch, MDI Building, 28 S V Road, Andheri (West), Mumbai – 400058, Maharashtra, India

HDFC Bank Limited

HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· Bank of Baroda

· IDBI Bank Limited

· Oriental Bank of Commerce

· The Saraswat Co-operative Bank Limited

· Kotak Mahindra Bank Limited

· Standard Chartered Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Long Term Borrowings
Term and Corporate Loans from Banks	1153.033	1111.233
Buyers Credit from Banks	182.563	138.307
Short Term Borrowings
Cash Credit From Banks	518.286	381.758
Total	1853.882	1631.298
NOTE: Corporate Loan from IDBI Bank is secured by hypothecation of plant and machinery and extension of existing security on immovable properties situated at Vapi and at Sarigam on pari pasu basis with other term lenders. The Corporate Loan of Saraswat Co-operative Bank Limited. is secured by a first pari passu charge on the plant and machinery situated at Unit I at Vapi and further secured by extension of existing security on immovable properties at Unit I, Vapi. It is also further secured by exclusive charge by way of equitable mortgage of Directors residential bunglow at Lokhandwala, Andheri (West), Mumbai 400053 and also an exclusive charge by way of legal mortgage on non agricultural land admeasuring 37.61 acres at Sarigam, Gujarat. The loan is further secured by personal guarantee of Mr. R N Agarwal. The Term loan from Kotak Mahindra Bank Limited, is secured by exclusive charge on Unit 415-418, situated at Janki Centre, 4th Floor, 29 Shah Industrial Estate, Off. Veera Desai Road, Andheri (West), Mumbai 400053. The loan is further secured by personal guarantee of Mr. R N Agarwal The Project Loan from Bank of Baroda is secured by first pari passu charge by hypothecation of plant and machinery situated at Vapi and at Sarigam and first pari passu charge on immovable properties (Unit I, II, III, IV and V) situated at Vapi and Sarigam, together with buildings and other structures thereon excluding vacant land of 37.61 acres at Sarigam and second pari passu charge on current assets of the Company and further secured by the personal guarantee of Mr. R N Agarwal. The New office Loan of Bank of India is exclusively secured by equitable mortgage on the said property and further secured by the personal guarantee of Mr. R N Agarwal. The Cash credit from Banks are secured by hypothecation of present and future stock of raw materials, steam coal, goods in process, finished goods and books debts etc. ranking pari passu inter-se and second charge on Company’s movable and immovable fixed assets and further secured by personal guarantee of Mr. R N Agarwal.

Banking Relations :	--
Auditors :
Name :	Chaturvedi and Partners Chartered Accountant
Address :	Mumbai, Maharashtra, India

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs.225.000 Millions
2500000	Preference Shares	Rs.10/- each	Rs.25.000 Millions
	Total		Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17019100	Equity Shares	Rs.10/- each	Rs.170.191 Millions

NOTE:

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares at the beginning	17.019
Add: Shares issued	--
Less: Shares bought back	--
Total	17.019

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each equity shareholder is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, the amount of dividend, per share, recognized as distributions to equity shareholders is Rs.1.20 (year ended March 31, 2011, Rs.1.80)

Details of shareholders holding more than 5% shares in the Company Equity shares of Rs.10/- each fully paid

Name	March 31, 2012
	Nos.	% Holding
R N Agarwal	7922030	46.548
Reena R. Agarwal	4538861	26.669

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	170.191	170.191
(b) Reserves & Surplus	885.241	753.402
(c) Money received against share warrants	0.000	14.625
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1)+(2)	1055.432	938.218
(3) Non-Current Liabilities
(a) long-term borrowings	1470.495	1318.593
(b) Deferred tax liabilities (Net)	160.699	161.369
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1631.194	1479.962
(4) Current Liabilities
(a) Short term borrowings	518.286	381.758
(b) Trade payables	804.632	687.947
(c) Other current liabilities	330.152	347.133
(d) Short-term provisions	42.608	51.085
Total Current Liabilities (4)	1695.678	1467.923
TOTAL	4382.304	3886.103
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1167.923	1140.026
(ii) Intangible Assets	2.075	0.047
(iii) Capital work-in-progress	1984.224	1332.493
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.869	1.873
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	141.299	372.476
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	3297.390	2846.915
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	328.093	312.584
(c) Trade receivables	553.547	464.230
(d) Cash and cash equivalents	77.581	115.603
(e) Short-term loans and advances	125.693	146.771
(f) Other current assets	0.000	0.000
Total Current Assets	1084.914	1039.188
TOTAL	4382.304	3886.103

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		170.191
2] Share Application Money		0.000
3] Reserves & Surplus		510.161
4] (Accumulated Losses)		0.000
NETWORTH		680.352
LOAN FUNDS
1] Secured Loans		882.284
2] Unsecured Loans		45.778
TOTAL BORROWING		928.062
DEFERRED TAX LIABILITIES		164.306
TOTAL		1772.720
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1126.593
Capital work-in-progress		534.749
INVESTMENT		1.848
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	262.471
	Sundry Debtors	410.214
	Cash & Bank Balances	89.874
	Other Current Assets	0.000
	Loans & Advances	233.936
Total Current Assets		996.495
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	737.313
	Other Current Liabilities	102.596
	Provisions	47.056
Total Current Liabilities		886.965
Net Current Assets		109.530
MISCELLANEOUS EXPENSES		0.000
TOTAL		1772.720

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	4925.971	4669.008	3885.522
		Sales-Traded Goods	0.000	0.000	8.619
		Other Income	43.447	30.953	30.261
		TOTAL	4969.418	4699.961	3924.402
Less	EXPENSES
		Cost of Material Consumed	3118.585	2813.470	2208.617
		Purchases of Traded Goods	0.000	0.000	0.000
		Changes in Inventories of Finished Goods and Work-in-progress	(14.916)	(11.686)	0.418
		Employees Benefits Expenses	190.554	167.080	0.000
		Other Expenses	1306.136	1209.111	1343.512
		Prior Year Adjustments	0.000	(1.476)	0.000
		TOTAL	4600.359	4176.499	3552.547
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		369.059	523.461	371.855
Less	FINANCIAL EXPENSES		102.774	76.603	86.139
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		266.285	446.858	285.716
Less/ Add	DEPRECIATION/ AMORTISATION		90.335	84.816	80.853
Add	EXCEPTIONAL ITEMS		0.000	0.000	76.180
	PROFIT BEFORE TAX		175.950	362.042	281.043
Less	TAX		35.000	83.078	71.499
	PROFIT AFTER TAX		140.950	278.964	209.544
	EXCESS PROVISION WRITTEN BACK		0.000	0.000	6337
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		677.549	450.108	285.867
Less	APPROPRIATIONS
		Proposed final dividend - equity shares	20.423	30.634	30.364
		Tax on proposed equity dividend	3.313	5.087	5.206
		Transfer to General Reserve	4.400	15.800	15.800
	BALANCE CARRIED TO THE B/S		790.363	677.549	450.108
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	240.546	152.922	43.885
	TOTAL EARNINGS		240.546	152.922	43.885
	IMPORTS
		Raw Materials	788.677	578.726	695.637
		Stores & Spares	18.516	8.825	12.508
		Capital Goods	123.762	130.698	117.291
	TOTAL IMPORTS		930.955	718.249	825.436
	Earnings Per Share (Rs.)		8.28	16.39	12.68

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	1297.300	1299.500	1252.200	1304.300
Total Expenditure	1217.800	1247.900	1200.900	1244.800
PBIDT (Excl OI)	79.500	51.700	51.300	59.500
Other Income	1.300	1.600	1.000	4.600
Operating Profit	80.800	53.300	52.300	64.100
Interest	27.900	23.800	25.100	26.500
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	52.900	29.500	27.300	37.600
Depreciation	23.700	24.000	23.800	23.100
Profit Before Tax	29.300	5.500	3.500	14.500
Tax	4.900	0.400	0.100	1.400
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	24.400	5.100	3.400	13.100
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	24.400	5.100	3.400	13.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.84	5.94	5.34
Net Profit Margin (PBT/Sales)	(%)	3.57	7.75	7.23
Return on Total Assets (PBT/Total Assets}	(%)	7.34	14.19	13.24
Return on Investment (ROI) (PBT/Networth)		0.17	0.39	0.41
Debt Equity Ratio (Total Debt/Networth)		1.88	1.81	1.36
Current Ratio (Current Asset/Current Liability)		0.64	0.71	1.12

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
(b) Trade payables	804.632	687.947	737.313
Total	804.632	687.947	737.313

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Long Term Borrowings
Deposits from Others	8.143	12.493
Deposits from Directors	126.756	56.561
Total	134.899	69.054

COMPANY PERFORMANCE

During the financial year ended March 31, 2012 the Company recorded production of 131426 MT of Duplex Board, 7680 MT of Newsprint and 31031 MT of Kraft Paper as against 131106 MT of Duplex Board, 28476 MT of Newsprint and 3402 MT of Kraft Paper in previous financial year. During the year under review, the Company has manufactured Kraft Paper till December, 2011 in its Unit No. II and effective January 1, 2012 the Company has started manufacturing Newsprint.

The Turnover for the financial year under review was Rs.4926.000 Millions as against Rs.4669.000 Millions for the previous financial year. The profit before tax has been reduced to Rs.176.000 Millions as compared to Rs.360.600 Millions of the previous year.

During the year, the Company exported Duplex Board and realized Rs,240.500 Millions, as compared to Rs.152.900 Millions, during the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The future of Paper Industry is linked to the future of Indian Economy. Although at present they are all passing through a turbulent period, we can foresee a better and brighter prospect in 2012. The inflation is coming under control and after a gap of two years, for the first time Reserve Bank of India has loosened its tight monetary regulation. A favorable GDP growth will result in higher demand for Paper and Paper Boards. No doubt like most of the industries, Paper Industry are also facing pressure on selling price coupled with increase in Input prices of all raw materials it consumes. However with a population of 1.2 Billion with higher young population having large disposable income there is bound to be increased demand for consumer products. Packaging industry is growing at 14 % CAGR. The high growth industries, viz; Pharma, Food and FMCG will sustain growth of Packaging Boards. In last two years several new Duplex Boards manufacturing units have been set up all over the country. As a result an additional capacity of over 200,000 MT has been created and there is at present an oversupply of Duplex Boards. There is a rising customer expectation. Those Mills who can offer quality product at competitive price combined with faster delivery and better service to clients will overcome the problem of excess capacity.

The growth in newsprint volumes is likely to be met from importers as domestic production has almost been static for the past four years. The operating profitability of Indian Paper Companies will remain under pressure due to high input cost such as power, chemicals and manual labor. Though raw material costs could moderate to some extent, the depreciation of the rupee is likely to keen even raw material costs high in sub-segments dependent upon imports such as newsprint and coated paper. Higher interest expenses coupled with weaker profitability will significantly affect cash flow. Many large domestic paper companies outlined capex to enhance capacity and to increase control over raw material suppliers, while some other have highly leveraged balance sheets because of recently concluded capex plans. The weakening of profitability would lead to stretched credit metrics for domestic paper manufacturers as growth in sales volume can provide little respite from profitability fall.

The newsprint segment grew faster compared with WPP in terms of volumes during 2011, although on a lower base of 2010, most of this demand was met from imports that overlook the domestic newsprint production. The significant debt-funded capacity additions in 2011 along with the decline in operating profitability increased the financial leverage of Indian Paper manufactures.

As far as industry is concerned the drops are sharp with profits going down. But, at the same time investments are happening. The per capita consumption of paper in India as compared to the other countries presents a huge potential. And, going forward the growth rate of India would probably be the highest in the world. Now, given everything else depends upon what we do as an industry to keep ourselves growing. The ball is entirely in their court, if there is the market which is growing fast then it is for them to control cost and make good quality of paper at affordable price.

OPPORTUNITIES AND OUTLOOK

Now looking at the opportunities, India is a growing market; Industry is likely to double its capacity by the end of this decade. They are a country of 1.2 billion people so every increase of 1kg in per capita consumption would mean a demand of 1.2 million tons per year coming up. They think they have the only way to go and that is upwards.

Indian Paper Industry being fragmented presents both challenge and opportunity to service this market. Having varied needs this become the deterrent for the import to come in and at the same time it is an opportunity for them to serve and en-cash these markets by providing good quality, better sizes and serving the remote printing presses and get premium as compared to imports. Another opportunity which is coming towards them is the substitution of paper in place of plastics. For instance, the Supreme Court ruling on Gutkha packaging has opened up the big space for them. Industry need to extend this to take the lead in developing new and innovative products to replace the plastics and at the same time giving good margins.

The Depreciation of the rupee against the dollar has presented a mixed bag of opportunities for the paper industry. For the importers of raw material, the drop in international prices has helped some of the large importers. Certainly paper industry will have reasonably bright prospect in India during next 5 to 10 years. It is known that the demand of paper and paper products grow and match with GDP growth. The rapid change in the lifestyle of both rural and urban Indian, specifically in the strong middle class segment, having high disposal amount, will fuel higher growth in certain product segments. The next generation paper industry will see large new investments in the contemporary technology. Raw material is the most important and crucial issue of the Industry. Whenever they talk of the demand growth and create matching supply end deliberations invariably end up with focus on raw material availability. Lots of stress is now being given on an organized system of collection of waste paper too. This is an area which a concerted move from the government, particularly the civic bodies, with involvement of local civil societies supported by an initiative and drive from the Industry will get some results.

PERFORMANCE HIGHLIGHTS

During the financial year ended March 31, 2012 the Company recorded production of 131426 MT of Duplex Board, 7680 MT of Newsprint and 31031 MT of Kraft Paper as against 131106 MT of Duplex Board, 28476 MT of Newsprint and 3402 MT of Kraft Paper in previous financial year. During the year, the Company has manufactured Kraft Paper till December, 2011 in its Unit No. II and effective January 1, 2012 the Company has started manufacturing Newsprint.

The Turnover for the financial year was Rs.4926.000 Millions as against Rs.4669.000 Millions for the previous financial year. The profit before tax has been reduced to Rs.176.000 Millions as compared to Rs.360.600 Millions of the previous year.

During the year, the Company exported Duplex Board and realized Rs.240.500 Millions, as compared to Rs.152.900 Millions, during the previous year.

CONTINGENT LIABILITIES AND PROVISIONS

(a) Guarantees and counter guarantees given by the Company on behalf of the Group Companies Rs. NIL

(b) Excise duty demands and penalties Rs.1.705 Millions

(c) Claims against the Company not acknowledged as debts – Rs.0.539 Million

(d) Letter of Credit outstanding Rs.139.666 Millions

(e) Custom penalties on imports – Rs.NIL

(f) The Company has imported capital goods under “Export Promotion Capital Goods” scheme for which the Company has an given export obligation of Rs.698.177

(g) Income tax matters disputed in appeal amount Rs.119.757 Millions

The Company has received demand from Income Tax Department for Rs.189.448 Millions reduced subsequently by rectification order to Rs.119.757 Millions in respect of Assessment Years 2004-05 to 2010-11 mainly on account of 80-IA(4)(iv) of Income Tax Act, 1961.

The Company has disputed the above demands and the matter is pending at appellate stage with appropriate authorities. The Management is of the opinion that the Company is entitled to deduction under section 80-I A (4)(iv) of the Income Tax Act, 1961 and hence, no provision for the aforesaid demand/notices has been made in the books of accounts.

In the meantime, the Income Tax Department has frozen some of the Bank Accounts of the Company. The Company has filed a Writ Petition in the Hon’ble High Court of Gujarat for releasing the Bank Accounts of the Company. While disposing the Writ Petition the Hon’ble Court has directed the Company to pay Rs.30.000 Millions and furnish security for the balance amount of Rs.90.000 Millions to release the Bank Accounts, which is pending to be fulfilled. The Hon’ble High Court has also directed the Commissioner of Income Tax (Appeals) to dispose of the appeal as expeditiously as possible but not beyond two months from April 2, 2012.

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED

31ST MARCH, 2013.

(RS. IN MILLIONS)

	Particulars	3 months ended	Preceding 3 months ended	Year Ended
		31 March, 2013	31 December, 2012	31 March, 2013
		Unaudited	Unaudited	Audited
1	Income from operations
	(a) Net sales/income from operations	1295.497	1241.091	5122.884
	(Net of excise duty)
	(b) Other operating income	8.805	11.139	29.439
	Total income from operations (net)	1304.302	1252.229	5152.323
2	Expenses
	(a) Cost of material consumed	818.900	758.820	3190.292
	(b) Purchases of stock-in-trade	0.000	0.000	0.000
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(7.576)	11.267	(7.240)
	(d) Employee benefits expense	57.196	51.424	207.843
	(e) Depreciation and amortization expense	23.121	23.819	94.577
	(f) Other expenses	376.309	379.401	1519.197
	Total expenses	1267.950	1224.730	5004.669
3	Profit / (Loss) from operations before other income, finance costs and exceptional items (1-2)	36.352	27.499	147.654
4	Other Income	4.638	1.022	8.571
5	Profit / (Loss) from ordinary activities before finance costs and exceptional items (3 - 4)	40.990	28.521	156.225
6	Finance costs	26.526	25.069	103.560
7	Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5 - 6)	14.464	3.451	52.665
8	Exceptional items	0.000	0.000	0.000
9	Profit / (Loss) from ordinary activities before tax (7-8)	14.464	3.451	52.665
10	Tax expense	1.347	0.100	6.747
11	Net Profit / (Loss) for the period (9 - 10)	13.117	3.351	45.919
12	Paid-up equity share capital (Face Value Rs.10 per share)	170.191	170.191	170.191
13	Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--	931.160
14	Earnings per share (EPS) (of Rs.10 each) (not annualised):
	(a) Basic	0.77	0.20	2.70
	(b) Diluted	0.77	0.20	2.70

	Particulars	3 months ended	Preceding 3 months ended	Year Ended
		31 March, 2013	31 December, 2012	31 March, 2013
		Unaudited	Unaudited	Audited
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- Number of Shares	4558177	4558177	4558177
	- Percentage of shareholding	26.78%	26.78%	26.78%
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	- Number of shares	Nil	Nil	Nil
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of shares (as a % of the total share capital of the company)	Nil	Nil	Nil
	b) Non - encumbered
	- Number of shares	12460923	12460923	12460923
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100%	100%	100%
	- Percentage of shares (as a % of the total share capital of the company)	73.22%	73.22%	73.22%

	Particulars	Quarter ended (31/03/2013)	For the Year ended (31/03/2013)
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter/year	Nil	Nil
	Received during the quarter/year	1	5
	Disposed of during the quarter/year	1	5
	Remaining unresolved at the end of the quarter/year	Nil	Nil

NOTE:

The above results were reviewed by Audit Committee and approved by the Board of Directors in their meetings held on May 30, 2013.

As the entire operations of the Company relate to products categorized under 'Paper and Paper products' as a single primary reportable segment, no separate reporting is required under Accounting Standards 17 issued by the Institutes of Chartered Accountants of India.

The figures for the quarter ended Mar 31, 2013 and for the corresponding quarter ended Mar 31, 2012 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the respective financial year ending on Mar 31.

The Income Tax Department has issued a rectified demand for Rs.119.700 Millions in respect of AY 2004-05 to AY 2010-11, which has been disputed by the Company. Subsequently, the Company has received the Appeal Order and the demand has been reduced to Rs.108.400 Millions. The Company has paid Rs.47.700 Millions against demand and for the balance Company has filed a stay application with the Income Tax Appellate Tribunal (ITAT), Ahmedabad. While disposing off the stay application, the ITAT has given an order for making the balance payment by installment of Rs.1.500 Millions per month. The Company has also filed appeals with ITAT, Ahmedabad and the same is pending disposal.

The Company has received the Environmental clearance from Ministry of Environment and Forests, New Delhi as well as from the State Government, for the New Project at Sarigam and the project is now under implementation.

The Company has received the Letter of Approval (LOA) from the CDR Cell on March 28, 2013 approving the proposal for restructuring the debts and the concerned lenders have signed a Master Restructuring Agreement (MRA) on March 30, 2013

Previous period/ year figures have been regrouped, rearranged or reclassified wherever necessary.

STATEMENT OF ASSETS AND LIABILITIES

(RS. IN MILLIONS)

Particulars		As at current year end 31st March 2013 Audited
A	EQUITY AND LIABILITIES
1	Shareholders' funds
	(a) Share Capital	170.191
	(b) Reserves and surplus	931.160
	(c) Money received against share warrants	0.000
	Sub-total - Shareholders' funds	1101.351
2	Non-current liabilities
	(a) Long-term borrowings	1681.408
	(b) Deferred tax liabilities (net)	156.853
	Sub-total -  Non-current liabilities	1838.261
3	Current liabilities
	(a) Short-term borrowings	497.475
	(b) Trade payables	987.804
	(c) Other current liabilities	188.099
	(d) Short-term provisions	12.265
	Sub-total -  Current liabilities	1685.644
	TOTAL - EQUITY AND LIABILITIES	4625.255
B	ASSETS
1	Non-current assets
	(a) Fixed assets	3276.584
	(b) Non-current investments	1.872
	(c) Long-term loans and advances	141.673
	Sub-total -  Non-Current assets	3420.128
2	Current assets
	(a) Inventories	306.865
	(b) Trade receivables	572.538
	(c) Cash and cash equivalents	71.704
	(d) Short-term loans and advances	254.021
	Sub-total - Current assets	1205.127
	TOTAL - ASSETS	4625.255

FIXED ASSETS:

· Land

· Leasehold Land

· Factory Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Other – Building

· Computers

NEWS

2nd-Apr-2013

NR Agarwal - Approval by CDR Cell for restructuring of Debts.

NR Agarwal Industries Limited has informed BSE that the Company had made an application to the Corporate Debt Restructuring (CDR) Cell for restructuring of its Debts and the said proposal for restructuring of debts of the Company under Corporate Debt Restructuring (CDR) mechanism has been approved in the meeting of the CDR Empowered Group (EG) as per the letter of approval dated March 28, 2013 received from them.

Pursuant to the terms and conditions of the Letter of Approval, the Master Restructuring Agreement (MRA) has been duly signed.

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 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 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.60.34
UK Pound	1	Rs.90.79
Euro	1	Rs.77.80

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.