MIRA INFORM REPORT

Report Date :

15.11.2013

IDENTIFICATION DETAILS

Name :	JK PAPER LIMITED (w.e.f. 07.05.2002)
Formerly Known As :	CENTRAL PULP MILLS LIMITED
Registered Office :	P.O. Central Pulp Mills, Fort Songarh, District Tapi – 394660, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.07.1960
Com. Reg. No.:	04-018099
Capital Investment / Paid-up Capital :	Rs. 1366.500 Millions
CIN No.: [Company Identification No.]	L21010GJ1960PLC018099
TAN No.: [Tax Deduction & Collection Account No.]	SRTJ00098A
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Paper and Paper Related Products and Pulp.
No. of Employees :	1000 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 35010000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. There appears dip in the profitability during 2012-2013. However, general financial position seems to be strong. Performance capability is high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealing at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A2+ [Commercial Paper] Withdrawn
Rating Explanation	Strong degree of safety and low credit risk.
Date	March 2013

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 (GENERAL DETAILS)

Name :	Mr. Ashok Gupta
Designation :	General Manager in Finance and Accounts
Contact No.:	91-11-30179513
Date :	13.11.2013

LOCATIONS

Registered Office / Factory 1 :	P.O. Central Pulp Mills, Fort Songadh, District Tapi – 394660, Gujarat, India
Tel. No.:	91-2624-220228 / 221228 / 305458 / 330011 / 220278-80
Fax No.:	91-2624-220138
E-Mail :	scgupta@jkmail.com
Website :	http://www.jkpaper.com
Head / Administrative Office :	Nehru House, 3^rd Floor, 4 Bahadur Shah Zafar Marg, New Delhi – 110002, India
Tel. No.:	91-11-23311112 / 41011116
Fax No.:	91-11-23712680
E-Mail :	marketing@jkmail.com vikasgupta@jkmail.com amitdatta@jkmail.com
Factory 2 :	JK Paper Mills, Jaykapur, Rayagada – 765017, Orissa, India
Tel. No.:	91-6856-233303 / 233770 / 233171
Fax No.:	91-6856-222238
Zonal Offices :	Located At: New Delhi Chennai Mumbai Kolkata

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Bharat Hari Singhania
Designation :	Chairman
Name :	Mr. Harsh Pati Singhania
Designation :	Vice Chairman and Managing Director
Name :	Mr. Om Praeash Goyal
Designation :	Whole Time Director
Name :	Mr. Arun Bharat Ram
Designation :	Director
Name :	Mr. Dhirendra Kumar M.H.
Designation :	Director
Name :	Mr. Dalmia R.V. Kanoria
Designation :	Director
Name :	Mr. Shailendra Swarup
Designation :	Director
Name :	Mr. Shailesh Haribhakti
Designation :	Director
Name :	Mr. Udayan Bose Vinita
Designation :	Director
Name :	Singhania Wim Wienk
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Suresh Chander Gupta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

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	1050000	0.77
Bodies Corporate	72495920	53.06
Sub Total	73545920	53.83
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	73545920	53.83
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1155476	0.85
Insurance Companies	6093317	4.46
Any Others (Specify)	7690000	5.63
Any Other	7690000	5.63
Sub Total	14938793	10.93
(2) Non-Institutions
Bodies Corporate	8473494	6.20
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	9089817	6.65
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	17182176	12.58
Any Others (Specify)	13390425	9.80
Non Resident Indians	2927447	2.14
Overseas Corporate Bodies	2500000	1.83
Trust & Foundation	7962978	5.83
Sub Total	48135912	35.23
Total Public shareholding (B)	63074705	46.17
Total (A)+(B)	136620625	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	136620625	0.00

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	Bengal & Assam Company Limited	3,11,43,299	22.80
2	Fenner India Limited	2,54,57,500	18.63
3	Florence Investech Limited	1,16,81,684	8.55
4	BMF Investments Limited	38,02,297	2.78
5	Accurate Finman Services Limited	4,11,140	0.30
6	Hari Shankar Singhania	1,75,000	0.13
7	Sharda Singhania	1,75,000	0.13
8	Raghupati Singhania	1,31,250	0.10
9	Harsh Pati Singhania	1,31,250	0.10
10	Vikram Pati Singhania	1,31,250	0.10
11	Vinita Singhania	87,500	0.06
12	Anshuman Singhania	43,750	0.03
13	Sunanda Singhania	43,750	0.03
14	Mamta Singhania	43,750	0.03
15	Shrivats Singhania	43,750	0.03
16	Swati Singhania	43,750	0.03
	Total	7,35,45,920	53.83

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	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	International Finance Corporation	7690000	5.63
2	Pradip Kumar Khaitan	6862362	5.02
3	Bharat Hari Singhania - JKPEWT	6723000	4.92
4	Life Insurance Corporation of India	3282805	2.40
5	Edgefield Securities Limited	2500000	1.83
6	General Insurance Corporation of India	2100000	1.54
	Total	29158167	21.34

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS (TOGETHER WITH PAC) BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 5% OF THE TOTAL NUMBER OF SHARES OF THE COMPANY

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Pradip Kumar Khaitan	6862362	5.02
2	International Finance Corporation	7690000	5.63
	Total	14552362	10.65

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Paper and Paper Related Products and Pulp.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Paper and Board including Pulp for sale	Tones	240000	286019*

* includes 27525 MT transferred to Packaging Board

GENERAL INFORMATION

No. of Employees :

1000 [Approximately]

Bankers :

• State Bank of India, Bahadur Shah Zafar Marg, New Delhi, India
• Axis Bank Limited
• Canara Bank
• IDBI Bank Limited

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Term Loans
From Banks	13125.300	6273.300
From Financial Institutions	488.400	736.300
Less: Current Maturities of Long Term Borrowings
Term Loans from Banks	(1181.100)	(780.100)
Term Loan from Financial Institutions	(183.500)	(275.600)
Short Term Borrowings
Working Capital Borrowings from Bank	644.000	1063.500
TOTAL	12893.100	7017.400
Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Foreign Currency Term Loans from Bank	12.900	24.300
Foreign Currency Convertible Bonds (FCCB's)	2434.000	2391.900
Public Deposits	153.300	203.400
Finance Lease obligation	15.100	0.000
Less: Current Maturities of Long Term Borrowings
Foreign Currency Term Loans from Banks	(12.900)	(12.200)
Public Deposits	(65.200)	(105.700)
Finance Lease obligation	(3.500)	0.000
Short Term Borrowings
Acceptance SIDBI	157.800	0.000
Buyer's Credit facilities from Bank	418.200	233.700
Public Deposits	11.400	9.100
TOTAL	3121.100	2744.500

Banking Relations :	--
Auditors :
Name :	S.S. Kothari Mehta and Company Chartered Accountants
Address :	Delhi, India
Associates/Subsidiaries :	Songadh Infrastructure and Housing Limited Jaykaypur Infrastructure and Housing Limited JK Enviro-Tech Limited
Joint Venture :	Oji JK Packaging Private Limited
Other Related Parties :	Habras International Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions
30000000	Redeemable Preferences Shares	Rs.100/- each	Rs.3000.000 Millions
	TOTAL		Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
136620625	Equity Shares	Rs.10/- each	Rs.1366.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1366.200	1366.500	782.400
(b) Reserves & Surplus	7388.700	7148.100	5106.600
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	8754.900	8514.600	5889.000
(3) Non-Current Liabilities
(a) long-term borrowings	14782.800	8455.600	2913.600
(b) Deferred tax liabilities (Net)	1199.700	1218.200	1284.000
(c) Other long term liabilities	279.100	241.300	196.800
(d) long-term provisions	32.700	27.900	30.900
Total Non-current Liabilities (3)	16294.300	9943.000	4425.300
(4) Current Liabilities
(a) Short term borrowings	1231.400	1306.300	1387.300
(b) Trade payables	1370.600	1427.000	1162.000
(c) Other current liabilities	2867.200	2377.100	1711.200
(d) Short-term provisions	126.400	261.300	36.100
Total Current Liabilities (4)	5595.600	5371.700	4296.600
TOTAL	30644.800	23829.300	14610.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7708.800	8066.800	8434.700
(ii) Intangible Assets	1.500	3.800	9.800
(iii) Capital work-in-progress	15392.700	5818.600	245.400
(iv) Intangible assets under development	15.700	0.000	0.000
(b) Non-current Investments	150.500	126.500	126.500
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1307.700	2290.200	1238.700
(e) Other Non-current assets	453.600	477.500	17.500
Total Non-Current Assets	25030.500	16783.400	10072.600
(2) Current assets
(a) Current investments	0.000	603.100	701.200
(b) Inventories	2160.000	1641.900	1275.300
(c) Trade receivables	1193.800	1441.600	1078.700
(d) Cash and cash equivalents	338.000	1476.900	309.000
(e) Short-term loans and advances	1808.700	1795.600	1160.200
(f) Other current assets	113.800	86.800	13.900
Total Current Assets	5614.300	7045.900	4538.300
TOTAL	30644.800	23829.300	14610.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	14591.100	13300.600	12327.900
		Other Income	118.700	235.000	127.500
		TOTAL (A)	14709.800	13535.600	12455.400
Less	EXPENSES
		Cost of Materials Consumed	8331.200	7214.000	5846.900
		Purchases of Stock in Trade	840.700	722.000	333.500
		Employee Benefits Expenses	1417.400	1261.400	1300.100
		Other Expenses	2797.600	2736.400	2156.800
		Exception Items	(157.400)	0.000	0.000
		Changes in Inventories of Finished Goods and WIP	(121.200)	(161.300)	103.700
		TOTAL (B)	13108.300	11772.500	9741.000
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1601.500	1763.100	2714.400
Less	FINANCIAL EXPENSES (D)		499.000	512.500	513.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1102.500	1250.600	2200.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		729.100	729.400	716.200
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		373.400	521.200	1484.500
Less	TAX (H)		(3.600)	28.000	420.300
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		377.000	493.200	1064.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2715.600	2492.900	1745.100
Less	APPROPRIATIONS
		Capital Redemption Reserve	0.300	0.600	1.100
		Debenture Redemption Reserve	8.200	6.600	229.400
		Dividend (Incl. Tax on Dividend)	79.900	0.000	0.000
		General Reserve	0.000	25.000	110.000
		Dividend: - On Preference Shares (incl. Tax on Dividend)	0.000	0.100	0.100
		Dividend: - On Equity Shares (incl. Tax on Dividend)	0.000	238.200	205.100
		Debenture Redemption Reserve Written Back	0.000	0.000	(229.400)
	BALANCE CARRIED TO THE B/S		3004.200	2715.600	2493.000
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods at FOB Value	750.500	436.100	422.500
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	2466.800	2426.500	1184.000
		Stores & Spares	226.200	189.200	148.600
		Capital Goods	5836.800	2821.000	126.500
		Others	687.800	545.400	244.600
	TOTAL IMPORTS		9217.600	5982.100	1703.700
	Earnings / (Loss) Per Share (Rs.)
	- Basic		2.76	4.41	13.62
	- Diluted		2.18	3.46	13.62

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Net Sales	3679.600
Total Expenditure	3336.600
PBIDT (Excl OI)	343.000
Other Income	18.400
Operating Profit	361.400
Interest	172.800
Exceptional Items	0.000
PBDT	188.600
Depreciation	148.600
Profit Before Tax	40.000
Tax	08.000
Provisions and contingencies	0.000
Profit After Tax	32.000
Extraordinary Items	0.000
Net Profit	32.000

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.56	3.64	8.54
Net Profit Margin (PBT/Sales)	(%)	2.55	3.92	12.04
Return on Total Assets (PBT/Total Assets}	(%)	2.47	2.91	10.43
Return on Investment (ROI) (PBT/Networth)		0.04	0.06	0.25
Debt Equity Ratio (Total Debt/Networth)		1.83	1.15	0.73
Current Ratio (Current Asset/Current Liability)		1.00	1.31	1.05

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF CURRENT MATURITIES OF LONG TERM DEBT:

Particulars	31.03.2013 [Rs. in millions]	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]
Current Maturities of Long Term Debt	1446.200	1173.600	NA

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	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	No
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10443433	23/07/2013	500,000,000.00	STATE BANK OF HYDERABAD	STATE BANK OF HYDERABAD, COMMERCIAL BRANCH, 74, J ANPATH, NEW DELHI - 110001, INDIA	B82295627
2	10410094	25/04/2013 *	750,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34,JAWAHARLAL NEHRU ROAD, KOLKATA - 700071, WEST BENGAL, INDIA	B76849017
3	10400466	25/04/2013 *	750,000,000.00	IDBI BANK LIMITED	IDBI BANK LIMITED, 3RD FLOOR IRCS BUILDING RED CR OSS ROAD, NEW DELHI, Delhi - 110001, INDIA	B76937531
4	10319937	28/02/2012 *	118,746,394.00	CO-OPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B. A.	STRUCTURED TRADE & EXPORT FINANCE, CROESELAAN 28, 3521 CB, UTRECHT, - Z3034, NETHERLANDS	B34119446
5	10319932	28/02/2012 *	132,324,464.00	CO-OPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B. A.	STRUCTURED TRADE & EXPORT FINANCE, CROESELAAN 28, 3521 CB, UTRECHT, - Z3034, NETHERLANDS	B34123042
6	10319939	28/02/2012 *	321,105,935.00	CO-OPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B. A.	STRUCTURED TRADE & EXPORT FINANCE, CROESELAAN 28, 3521 CB, UTRECHT, - Z3034, NETHERLANDS	B34123851
7	10291727	03/11/2011 *	1,000,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTER COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B25138785
8	10292371	15/06/2011 *	1,728,000,000.00	NORDEA BANK FINLAND PLC IN ITS CAPACITY AS SECURIT Y AGENT	ALEKSANTERINKATU 36 B, 00100 HELSINKI, HELSINKI, - 00100, FINLAND	B15225436
9	10290363	15/06/2011 *	3,363,220,800.00	DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK	PLATZ DER REPUBLIK, 60265 FRANKFURT AM MAIN, FRAN KFURT, - 60265, GERMANY	B14711287
10	10278611	15/06/2011 *	1,500,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B14721120
* Date of charge modification

PERFORMANCE REVIEW:

The Company's Sales during the year was Rs. 17213.800 Millions, Operating Profit (PBIDT) Rs. 1444.100 Millions and PAT amounted to Rs. 377.000 Millions. In volume terms, Production of 2,92,582 tonnes and Sales at 2,90,420 tonnes were the highest ever recorded. Overall capacity utilization increased to 101% and savings were achieved in power and fuel consumption. Continuous review of outstanding and inventory helped in optimizing the working capital cycle and fund utilization. Despite these favourable factors, profit was adversely affected due to unprecedented increase in raw material prices without commensurate increase in selling prices.

During the year, global hardwood pulp prices were stable but weakening of rupee adversely impacted the landed cost of pulp for the Company. With increase in global supplies, pulp prices are likely to remain stable in the near future.

JK Paper has always believed in offering differentiated products to its target markets. The high quality "Color Lok" papers have occupied a distinct position in the minds of consumers. Similarly JK's Brands are recognized by their customers in Virgin Fibre Board and Coated Paper segment for their superior quality and high standards of service. The Company's strong brand equity is evident from the fact that it is a market leader in Office papers and ranks among the top 2 players in Coated Paper and Virgin Fibre Board market. Over the years, the Company has established a strong distribution network that provides a distinct competitive advantage in the geographically dispersed Indian market.

Increased demand for wood from consuming industries coupled with shortage of supply due to tree disease and uprooting of plantations in earlier years led to unprecedented increase in raw material prices. The Company intensified its efforts in promoting farm forestry to maximize availability of wood in its catchment areas. During the year, the Company covered 11,300 hectares with plantation taking the cumulative acreage under this programme to 1,01,500 hectares. The Company has drawn up ambitious plans for next 3/4 years keeping in view increased raw material requirements from the expansion Project. It is also exploring opportunities in South East Asia to secure raw material supplies for its operations in India.

INDUSTRY SCENARIO:

The industry witnessed a significant decline in profitability on account of raw material price rise and its inability to pass on the input cost increases fully. Growth was impacted by slowdown in economic activity and lower spends. Despite this, India continues to be one of the fastest growing paper markets in the world. The lower per capita consumption compared to the world average indicates the future potential for growth. Greater thrust on literacy and education, changing lifestyle, growth in organized retail and higher disposable income in rural areas will fuel paper and board consumption in the country.

OFFICE PAPERS: While there was some impact of slowdown on the Office Papers market due to its linkage with corporate and economic activity, the new production capacities that came on stream during the previous year have now been absorbed. The scenario improved towards the end of the year and the company could pass on input cost increases partially through price revisions. The situation should ease further as the economic activity picks up. The Company's brands "JK Copier", "JK Easy Copier", "JK Copier Plus", "Sparkle" and "Cedar" continue to enjoy a strong market position. The company also enjoys a strong brand equity in niche segments through products like "JK Excel Bond", " JK Ledger" and "MICR Cheque Papers".

COATED PAPERS: Growth in Coated Paper segment was muted due to decreased marketing spends by businesses. Coated Paper prices continued to be under stress due to increased imports from Asian countries. Weaker Rupee provided some relief as landed prices of these imports rose. "JK Cote" and " JK Supercote" continue to attract a wide variety of customers due their superior quality and recorded higher sales volume during the year.

PACKAGING BOARD: The Packaging Board segment maintained its growth momentum during the year due to increasing demand for value added packaging. The demand is being driven by growth in organized retail and continuous shift from low quality Packaging Boards to superior varieties. The company's brands "JK Tuffcote" and "JK Ultima" are well established in this highly demanding segment. Despite augmentation of capacity in 2010-11, the capacity utilization stood at 108% due to growing demand for the Company's products.

EXPANSION AND NEW VENTURES:

In order to address the opportunity in the Office Papers and enhance the Company's leadership position in this segment, an ambitious expansion Project is nearing completion at Unit JKPM with an outlay of Rs. 16530.000 Millions. This would enhance the Company's annual capacity from the current 2,90,000 tonnes to 4,55,000 tonnes per annum. This consists of a 2,15,000 tpa pulp mill, 1,65,000 tpa paper machine , 55 MW Power plant and requisite utilities.

The machines used for the expansion have been sourced from leading global and domestic suppliers and incorporate state of the art technology. With this, the Company will be able to minimize environmental impact by conserving water and energy besides reducing emissions. It will also render scale economies and lead to more efficient use of fibre. All this will result in improvement of margins for the Company. Quality of paper produced will be of international standards and will cater to evolving customer needs. Production is expected by 2^nd quarter of the current financial year.

The Company has identified High-end Corrugated Packaging as a market with high growth potential and has decided to venture into this segment. JK Paper has entered into a Joint Venture agreement with Oji Holdings Corporation and Marubeni Corporation of Japan for setting up a modern manufacturing facility for Corrugated Packaging. The Capital outlay is estimated at Rs. 1500.000 Millions. The plant will manufacture high quality packaging products required by Consumer Durables, Electronics, Auto Components, FMCG and Food Processing Industries.

AWARDS AND RECOGNITION:

It is a matter of great pride that the Company's endeavour and commitment to achieve higher level of operational performance and environmental excellence has been recognized at various forums. Both Units of the Company received the CII National HR Excellence Award 2012 for strong commitment to HR Excellence. The Company also received Talent Management Award at Asia's Best Employer Brand 2012 hosted by Employer Branding Institute, World HRD Congress and Stars of Industry Group.

Unit - JKPM has been awarded the following;

• Greentech award for outstanding achievement in Safety Management

• National safety award for outstanding performance in Industrial Safety during performance year 2010 from ministry of Labour and Employment, Government of India

• Gold award in paper sector by Greentech Foundation for Environment Management.

• Silver award in paper sector for CSR by Greentech Foundation

• Business World FICCI CSR Award 2011-2012

Unit - CPM has been awarded the following;

• Greentech Environment Gold Award 2012 in paper sector for outstanding achievement

• Winner of Golden Peacock environment management Award 2012

• Best sustainability performance award by World CSR congress

• IPMA Award 2011-12 for Energy conservation

• Golden Jubilee Trust award by South Gujarat Chamber of Commerce of and Industry (SGCCI) for "Excellence in Improving Productivity"

MANAGEMENT DISCUSSION AND ANALYSIS:

OVERVIEW

The global economy recovered to some extent in 2009, as a result of fiscal and monetary stimulus taken to avert the crisis. However, the pace of recovery could not be sustained due to the many challenges being faced by developed economies and growth slowed down in the 1^st quarter of 2012. Preliminary projections for global economic growth as a whole suggest a slowing down in 2012 vis-a-vis 2011.

Emerging economies performed better than developed economies but were nevertheless adversely affected by developments in developed economies. It is, however, encouraging that some signs of positive movements in China and Japan have been witnessed but it remains to be seen whether these signs will continue in a sustained manner.

Emerging economies, especially Asia and Latin America have been major growth drivers of global paper and board consumption in recent years. North America and Europe together, however, account for over 40% of total global market for paper and Packaging Board. These have contracted in last 2 years (2011 and 2012) and thus annual global Paper and Packaging Board consumption has, therefore, hovered around 400 million tonnes and growth has been marginal.

IMPACT OF GLOBAL DEVELOPMENTS ON INDIAN PAPER AND BOARD INDUSTRY

Domestically, economic growth in India remains sluggish and advanced estimates for GDP growth has been placed at over 5% for 2012-13 vis-a-vis 6.2% in 2011-12. The slowdown in overall economic growth cast its shadow on the Indian Paper and Board industry with growth moderating in the last couple of years. While this demand slowdown is a matter of concern, there are indications that this will be a temporary phenomenon and the industry will begin to see growth getting back to 7-8% trajectory over the next few quarters.

The pricing power of Indian Paper and Board Industry has been impacted by increasing imports from ASEAN countries as a result of falling tariffs and rampant dumping from China. With foreign players seriously eyeing the India's growing market, the industry is likely to see domestic competition becoming more intense and reduced overall pricing power. In addition, it is also likely that the industry will see the consolidation in the currently fragmented industry in the coming years and this will have significant impact on the structure of the industry.

SUPPLY AND DEMAND SCENARIO IN INDIAN PAPER AND BOARD INDUSTRY

The bunching of capacity expansions in recent years has led to demand-supply mismatch. Moreover, the demand growth would continue to remain somewhat challenging during 2013-14. The industry has also been witnessing rising imports especially in Coated Paper and this has added to the pressure on prices.

As the demand picks up in the coming years, thanks to revival in overall growth momentum in the economy, there will be some easing of the mismatch between demand and supply, though it may be gradual. It is important, however, to note that despite the short-term challenges, the industry is poised to reach the annual 20 million tonnes mark by 2020 as many of the growth drivers remain intact and are expected to gather momentum in the coming years.

FIXED ASSETS:

Tangible Assets:

v Land

- Freehold

- Leasehold

v Buildings

v Plant and Machinery

v Furniture, Fixtures and Equipments

v Vehicles and Locomotives

v Railway Sidings

Intangible Assets

v Performance Improvement and Development

v Software

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE 2013

Rs. in Millions

Sr. No.	Particular	Three Months Ended
		30.06.2013
		Unaudited
1.	Net Sales/Income from Operations	4205.300
	Other Operating Income	3546.600
	Total Income From Operations (Net)	7751.900
2.	Expenditure
	Cost of materials consumed	2207.000
	Purchase of stock in trade	145.200
	Employee benefits expenses	349.600
	Depreciation and amortization expenses	184.000
	Changes in inventories of finished goods, work in progress and stock in trade	(126.400)
	Other expenses:
	- Power, fuel and water	473.500
	- Others	256.700
	Total Expenses	3489.600
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	73.400
4.	Other Income	58.700
5.	Profit Before Interest and Exceptional Items (3+4)	132.100
6.	Interest	111.100
7.	Profit After Interest but before Exceptional Items (5-6)	21.000
8.	Exceptional Items	--
9.	Profit from Ordinary Activities before Tax (7+8)	21.000
10.	Tax Expense	7.200
11.	Net Profit from Ordinary Activities after Tax (9-10)	13.800
12.	Extraordinary Item (net of expense)	--
13.	Net Profit for the period (11-12)	13.800
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	1366.200
15.	Reserves Excluding Revaluation Reserve	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualized
	a) Basic and diluted EPS before extraordinary items	0.10
	b) Basic and diluted EPS after extraordinary items	0.08
17.	Public Shareholding
	-Number of Shares	65690892
	- Percentage of Shareholding	48.08
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil
	b) Non Encumbered
	- Number of Shares	70929733
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	51.92

Particulars	3 Months Ended on 30.06.2013
Pending at the beginning of the quarter	Nil
Received during the quarter	1
Disposed of during the quarter	1
Remaining unresolved at the end of the quarter	Nil

NOTES:

1. During the quarter, performance has been impacted due to unabated increase in raw material prices, despite increase in selling prices.

2. The trials have started at the expansion project at unit JKPM and are expected to commence operation during the current quarter. On completion, the company’s capacity will increase to 4.55 lac TPA from 2.90 Lac TPA.

3. JK Enviro-Tech Limited has become a subsidiary of the company during the quarter.

4. The company has only on business segment namely, “Paper and Board”.

5. These results have been reviewed by the audit committee and approved by the board of directors at their respective meetings held on 19^th July, 2013. Limited Review of these results has been carried out by the auditors.

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.63.06
UK Pound	1	Rs.101.15
Euro	1	Rs.84.95

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.