MIRA INFORM REPORT

Report No. :	346267
Report Date :	19.10.2015

IDENTIFICATION DETAILS

Name :	KHANNA PAPER MILLS LIMITED (w.e.f. 28.06.2006)
Formerly Known As :	KHANNA PAPER MILLS PRIVATE LIMITED
Registered Office :	B-26, Infocity-I, Sector – 34, Gurgaon – 122002, Haryana
Tel. No.:	91-124-3874000/01
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.02.1985
Com. Reg. No.:	05-054735 [NEW] 55-020023 [OLD]
Capital Investment / Paid-up Capital :	Rs. 265.379 Million
CIN No.: [Company Identification No.]	U21012HR1985PLC054735 [NEW] U21012DL1985PLC020023 [OLD]
IEC No.:	0500025258
TAN No.: [Tax Deduction & Collection Account No.]	AMRK10059A
PAN No.: [Permanent Account No.]	AAACK1375K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing of Writing and Printing Paper (WPP), Duplex/Triplex Board (Board), Newsprint (NP).
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limits :	USD 7650000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was incorporated in year 1985. It is well established company having a satisfactory track. During FY14, the company has registered a total operating income of Rs.13564.800 Million with net profit of Rs.167.200 Million. The profitability margin stood at 1.24%. The rating takes consideration on company decent networth position with enhancement into its cash and bank balance along with comfortable debt coverage indicators. The rating continue to derive strength from the experienced promoters and established track record of the company in the paper industry and reputed cliental base. Rating on company is constrained on account of debt funded capital expenditure huge external borrowings and susceptibility of profitability to volatility in the raw material prices due to foreign exchange fluctuation. Trade relations are fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities : BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January, 2015

Rating Agency Name	CARE
Rating	Short term bank facilities : A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	January, 2015

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Shivam
Designation :	Finance Manger
Contact No.:	91-124-3874000

LOCATIONS

Registered Office / Corporate Office 1 :	B-26, Infocity-I, Sector – 34, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-3874000/01 / 4964800
Fax No.:	91-124- 4694836
E-Mail :	info@khannapaper.com manav.arora@khannapaper.com b.m.khanna@khannapaper.com manav.arora85@gmail.com info.gurgaon@khannapaper.com
Website :	http://www.khannapaper.com
Location :	Owned
Factory 1:	NH-1, Majitha Bypass, Amritsar – 143001 Punjab, India
Tel. No.:	91-183-5067100-109
Factory 2 :	Village Fazilpur Badli, Faruk Nagar, District Gurgaon-122 506, Haryana, India
Tel. No.:	91-124-4694800 - 99
Corporate Office 2 / Factory 3 :	Fatehgarh Road, Village Nangli, Khasra No. 93/3, 93/4 and 93/5, Amritsar–143001, Punjab, India
Tel. No.:	91-183-5067100/ 109 / 504416 / 17 / 18 / 2710974 - 77
Fax No.:	91-183-5067110/111 / 504415 / 2710972 - 73
E-Mail :	rcp@jla.vsnl.net.in
USA Office :	Suite 211 B, 50 Harrison Street, Hoboken Business Center, Hoboken, NJ
Email :	info.us@khannapaper.com

DIRECTORS

AS ON 25.09.2014

Name :

Mr. Rahul Khanna

Designation :

Managing Director

Address :

House No. A-50, D.R Enclave, Amritsar - 143001, Punjab, India

Date of Birth/Age :

03.03.1979

PAN No. :

ABSPK4237E

Date of Appointment :

01.04.2015

DIN No.:

00067173

Other Directorship :

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	CURRENT DESIGNATION OF THE DIRECTOR/ DESIGNATED PARTNER	DATE OF APPOINTMENT AT CURRENT DESIGNATION	ORIGINAL DATE OF APPOINTMENT	DATE OF CESSATION	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U21012HR1985PLC054735	KHANNA PAPER MILLS LIMITED	MANAGING DIRECTOR	01/04/2015	01/04/1997	-	ACTIVE	NO
2	U74120DL2007PTC162249	SMOOTH BUSINESS SERVICES PRIVATE LIMITED	DIRECTOR	18/04/2007	18/04/2007	-	STRIKE OFF	NO
3	U60231HR2007PLC054693	SHORE TO SHORE LOGISTICS INDIA LIMITED	DIRECTOR	30/09/2011	05/09/2011	-	ACTIVE	NO
4	U55101HR2014PTC053640	GREEN PLANET HOSPITALITY PRIVATE LIMITED	DIRECTOR	20/10/2014	20/10/2014	-	ACTIVE	NO
5	AAE-3766	DOUBLE CHIMNEY INFRA LLP	DESIGNATED PARTNER	13/07/2015	13/07/2015	-	ACTIVE	NO

Name :

Mr. Brij Mohan Khanna

Designation :

Whole-Time Director

Address :

House No. A-50, D.R. Enclave, Ajnala Road, Amritsar - 143001, Punjab, India

Date of Birth/Age :

13.10.1947

Date of Appointment :

01.04.2015

PAN No. :

AAAHB6030K

DIN No.:

00062514

Other Directorship :

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	CURRENT DESIGNATION OF THE DIRECTOR/ DESIGNATED PARTNER	DATE OF APPOINTMENT AT CURRENT DESIGNATION	ORIGINAL DATE OF APPOINTMENT	DATE OF CESSATION	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U21012HR1985PLC054735	KHANNA PAPER MILLS LIMITED	WHOLE-TIME DIRECTOR	01/04/2015	28/05/1994	-	ACTIVE	NO
2	U74120DL2007PTC162249	SMOOTH BUSINESS SERVICES PRIVATE LIMITED	DIRECTOR	18/04/2007	18/04/2007	-	STRIKE OFF	NO
3	U37200PB2014PTC039132	KPM RECYCLING PRIVATE LIMITED	DIRECTOR	23/12/2014	23/12/2014	-	ACTIVE	NO

Name :

Mr. Saurabh Khanna

Designation :

Whole-Time Director

Address :

House No. A-50,D.R Enclave, Ajnala Road, Amritsar - 143001, Punjab, India

Date of Birth/Age :

21.07.1981

Date of Appointment :

01.04.2015

PAN No.:

AGRPK0523D

DIN No.:

00062737

Other Directorship :

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	CURRENT DESIGNATION OF THE DIRECTOR/ DESIGNATED PARTNER	DATE OF APPOINTMENT AT CURRENT DESIGNATION	ORIGINAL DATE OF APPOINTMENT	DATE OF CESSATION	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U21012HR1985PLC054735	KHANNA PAPER MILLS LIMITED	WHOLE-TIME DIRECTOR	01/04/2015	20/08/1999	-	ACTIVE	NO
2	U74120DL2007PTC162249	SMOOTH BUSINESS SERVICES PRIVATE LIMITED	DIRECTOR	18/04/2007	18/04/2007	-	STRIKE OFF	NO
3	U55101HR2014PTC053640	GREEN PLANET HOSPITALITY PRIVATE LIMITED	DIRECTOR	20/10/2014	20/10/2014	-	ACTIVE	NO
4	AAE-3766	DOUBLE CHIMNEY INFRA LLP	DESIGNATED PARTNER	13/07/2015	13/07/2015	-	ACTIVE	NO

Name :

Mr. Vijay Kumar Bhandari

Designation :

Director

Address :

1704, Wallace Apartments (17th Floor), Sleater Road, Grant Road (West), Mumbai - 400007, Maharashtra, India

Date of Birth/Age :

14.10.1943

Date of Appointment :

25.09.2014

DIN No.:

00052716

Other Directorship :

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	CURRENT DESIGNATION OF THE DIRECTOR/ DESIGNATED PARTNER	DATE OF APPOINTMENT AT CURRENT DESIGNATION	ORIGINAL DATE OF APPOINTMENT	DATE OF CESSATION	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U50404PB1974PLC003420	GURU NANAK AUTO ENTERPRISES LIMITED	DIRECTOR	12/03/2004	12/03/2004	-	ACTIVE	NO
2	L51433WB1960PLC024539	HSIL LIMITED	DIRECTOR	27/09/2014	24/07/2004	-	ACTIVE	NO
3	L24100MH1992PLC066691	JAYANT AGRO-ORGANICS LIMITED	DIRECTOR	27/09/2014	27/10/2005	-	ACTIVE	NO
4	U65110PB1999PLC022634	CAPITAL LOCAL AREA BANK LIMITED	DIRECTOR	02/09/2006	02/09/2006	15/04/2014	ACTIVE	NO
5	U21012HR1985PLC054735	KHANNA PAPER MILLS LIMITED	DIRECTOR	25/09/2014	02/04/2007	-	ACTIVE	NO
6	U60231HR2007PLC054693	SHORE TO SHORE LOGISTICS INDIA LIMITED	DIRECTOR	25/09/2014	11/10/2007	-	ACTIVE	NO
7	L70200TZ1936PLC000001	PRIME URBAN DEVELOPMENT INDIA LIMITED	DIRECTOR APPOINTED IN CASUAL VACANCY	30/06/2008	30/06/2008	30/06/2011	ACTIVE	NO
8	U27109WB1995PLC072223	SUPER SMELTERS LTD	DIRECTOR	27/09/2014	19/08/2008	-	ACTIVE	NO
9	L16000GJ1955PLC067605	GOLDEN TOBACCO LIMITED	DIRECTOR	15/09/2009	31/07/2009	-	ACTIVE	NO
10	L24230MH1958PLC011078	KOPRAN LIMITED	DIRECTOR	14/09/2013	12/02/2013	-	ACTIVE	NO
11	U65921PB1988PLC008430	MIDLAND MICROFIN LIMITED	DIRECTOR	01/04/2015	28/03/2014	-	ACTIVE	NO

Name :

Mr. Suneet Kochhar

Designation :

Director

Address :

House No.33, D.R. Enclave, Ajnala Road, Amritsar - 143001, Punjab, India

Date of Birth/Age :

18.12.1974

Date of Appointment :

25.09.2014

DIN No.:

01771321

Other Directorship :

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	CURRENT DESIGNATION OF THE DIRECTOR/ DESIGNATED PARTNER	DATE OF APPOINTMENT AT CURRENT DESIGNATION	ORIGINAL DATE OF APPOINTMENT	DATE OF CESSATION	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U60231HR2007PLC054693	SHORE TO SHORE LOGISTICS INDIA LIMITED	WHOLE-TIME DIRECTOR	05/09/2011	11/10/2007	-	ACTIVE	NO
2	U21012HR1985PLC054735	KHANNA PAPER MILLS LIMITED	DIRECTOR	25/09/2014	05/09/2011	-	ACTIVE	NO
3	AAE-3766	DOUBLE CHIMNEY INFRA LLP	PARTNER	13/07/2015	13/07/2015	-	ACTIVE	NO

Name :

Mrs. Renu Khanna

Designation :

Director

Address :

House No. A-50, D.R. Enclave, Amritsar - 143001, Punjab, India

Date of Birth/Age :

17.01.1955

Date of Appointment :

25.09.2014

DIN No.:

01794291

Other Directorship :

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	CURRENT DESIGNATION OF THE DIRECTOR/ DESIGNATED PARTNER	DATE OF APPOINTMENT AT CURRENT DESIGNATION	ORIGINAL DATE OF APPOINTMENT	DATE OF CESSATION	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U60231HR2007PLC054693	SHORE TO SHORE LOGISTICS INDIA LIMITED	DIRECTOR	11/10/2007	11/10/2007	-	ACTIVE	NO
2	U21012HR1985PLC054735	KHANNA PAPER MILLS LIMITED	DIRECTOR	25/09/2014	26/08/2014	-	ACTIVE	NO
3	U37200PB2014PTC039132	KPM RECYCLING PRIVATE LIMITED	DIRECTOR	23/12/2014	23/12/2014	-	ACTIVE	NO

KEY EXECUTIVES

Name :	Mr. Sandeep Gupta
Designation :	Chief Financial Officer
Address :	N-355, G.F. Mayfields Gardens, Sector-51, Gurgaon - 122018, Haryana, India
Date of Appointment :	16.07.2015
PAN No.:	AAHPG2226R
Name :	Mr. Varun Kumar Jain
Designation :	Chief Executive Officer
Address :	285, Deerwood Chase, Nirvana Country, Sector-50, Gurgaon - 122003, Haryana, India
PAN No.:	AEBPJ0445D
Date of Appointment :	10.05.2015
Name :	Mr. Manav Arora
Designation :	Secretary
Address :	348/10, Gali Dhobian, Katra Bhai Sant Singh,, I/S Beri Gate, Amritsar - 143001, Punjab, India
Date of Birth/Age :	13.01.1985
Date of Appointment :	11.08.2011
PAN No.:	AHMPA4455E
Name :	Mr. Shivam
Designation :	Finance Manger

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2014

Names of Shareholders	No. of Shares	%age
Brijmohan Khanna	4766653	17.96
Rahul Khanna	9072301	34.19
Brijmohan Khanna HUF	3607945	13.60
Saurbh Khanna	9072301	34.19
Shivinder Sandhu	9820	0.04
Manveen Sandhu	3570	0.01
Surinder Sandhu	1785	0.01
Sahiljit Sandhu	1785	0.01
Kiritpal Sandhu	1785	0.01
TOTAL	26537945	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 25.09.2014

Category	Percentage
Directors or relatives of Directors	99.93
Other top fifty	0.07
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing of Writing and Printing Paper (WPP), Duplex/Triplex Board (Board), Newsprint (NP).

Products / Services:

Item Code No.	Product/Services Description
48021010	Writing Printing paper
48052900	Duplex Board

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

· Sri Lanka

· Bangladesh

Imports :

Products :

Chemicals / Rough Papers

Countries :

· USA

· Australia

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Nova-Pad
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Dealers

Reference :	Hindustan Media
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

1500 (Approximately)

Bankers :

Bank Name	Punjab National Bank
Branch	International Banking Branch, The Mall, Amritsar - 143001, Punjab, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

· Canara Bank, Gopal Nagar, Amritsar - 143001, Punjab, India

· Oriental Bank of Commerce, Civil Lines Branch, Queens Road, Amritsar - 143001, Punjab, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks [Hypothecation of machinery, First charge on Movable and Immovable Properties, EM of Land and Building]	516.222	1475.811
Rupee term loans from others [Hypothecation of Cars]	3.250	2.275
Short-term borrowings
Working capital loans from banks [Hypothecation of Stocks, Book debts, Fixed and Current Assets and EM of properties]	4128.721	5204.028
Total	4648.193	6682.114

Auditors :
Name :	Sharat Sekhri and Company Chartered Accountants
Address :	69-Kennedy Avenue, Amritsar, Punjab, India
PAN No.:	AIPPS2692K
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary company :	Khanna Paper Inc.
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	· Brij Mohan Khanna HUF · Shore To Shore Logistics India Limited [U60231DL2007PLC169280]

CAPITAL STRUCTURE

AS ON 25.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
45,000,000	Equity Shares	Rs.10/- each	Rs.450.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26,537,945	Equity Shares	Rs.10/- each	Rs.265.379 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	265.379	265.379	265.379
(b) Reserves & Surplus	2411.166	2245.010	2176.979
(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)	2676.545	2510.389	2442.358
(3) Non-Current Liabilities
(a) long-term borrowings	534.472	1493.086	1226.463
(b) Deferred tax liabilities (Net)	787.424	792.724	801.204
(c) Other long term liabilities	884.235	674.889	467.267
(d) long-term provisions	31.097	28.255	20.408
Total Non-current Liabilities (3)	2237.228	2988.954	2515.342
(4) Current Liabilities
(a) Short term borrowings	4128.721	5204.028	5134.942
(b) Trade payables	1209.751	1654.771	1199.845
(c) Other current liabilities	587.520	524.369	997.552
(d) Short-term provisions	53.784	31.109	33.825
Total Current Liabilities (4)	5979.776	7414.277	7366.164
TOTAL	10893.549	12913.620	12323.864
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4681.416	4735.301	4919.582
(ii) Intangible Assets	5.580	3.013	3.075
(iii) Capital work-in-progress	86.429	217.411	80.853
(iv) Intangible assets under development	7.558	0.000	0.000
(b) Non-current Investments	5.290	5.290	5.290
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	27.072	30.259	33.177
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	4813.345	4991.274	5041.977
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3004.304	3176.848	3495.307
(c) Trade receivables	2512.259	2672.444	2265.968
(d) Cash and cash equivalents	308.329	246.431	592.272
(e) Short-term loans and advances	255.312	794.981	904.880
(f) Other current assets	0.000	1031.642	23.460
Total Current Assets	6080.204	7922.346	7281.887
TOTAL	10893.549	12913.620	12323.864

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	13504.779	12616.395	14007.244
	Other Income	60.755	145.370	92.152
	TOTAL	13565.534	12761.765	14099.396
Less	EXPENSES
	Cost of Materials Consumed	8571.035	7764.301	7766.578
	Purchases of Stock-in-Trade	0.000	900.665	2117.542
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	342.174	(662.764)	(175.387)
	Employees benefits expense	404.505	334.350	256.715
	Extraordinary Items	0.000	541.847	0.000
	Other expenses	2876.428	2715.133	2767.563
	TOTAL	12194.142	11593.532	12733.011
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1371.392	1168.233	1366.385
Less	FINANCIAL EXPENSES	791.694	726.397	722.742
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	579.698	441.836	643.643
Less/ Add	DEPRECIATION/ AMORTISATION	374.642	366.072	349.454
	PROFIT/ (LOSS) BEFORE TAX	205.056	75.764	294.189
Less	TAX	37.900	6.767	27.610
	PROFIT/ (LOSS) AFTER TAX	167.156	68.997	266.579
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	108.399	539.369	276.036
Add	PROVISION FOR TAX EARLIER YEAR	0.000	0.033	-3.245
Less	APPROPRIATIONS
	Transfer to General Reserve	0.000	500.000	0.000
	Balance Carried to the B/S	275.555	108.399	539.369
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	719.271	785.219	922.930
	TOTAL EARNINGS	719.271	785.219	922.930
	IMPORTS
	Raw Materials	2803.247	3348.463	4705.334
	Components and Stores parts	0.000	0.000	0.000
	Capital Goods	50.966	100.435	105.722
	TOTAL IMPORTS	2854.213	3448.898	4811.056
	Earnings / (Loss) Per Share (Rs.)
	Basic	6.30	2.60	10.05
	Diluted	6.30	23.01	10.05

Particulars	31.03.2015
Sales Turnover (Approximately)	13568.600

Expected Sales ( 2015-2016 ) : Rs.14000.000 Million.

The above information has been parted by Mr. Shivam (Finance Manager).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	561.208	428.964	778.202
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	2207.963	16.669	312.720
Net cash flows from (used in) operating activities	2164.763	1.456	249.349

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.24	0.55	1.90
Operating Profit Margin (PBIDT/Sales)	(%)	10.15	9.26	9.75
Return on Total Assets (PBT/Total Assets}	(%)	1.90	0.60	2.40
Return on Investment (ROI) (PBT/Networth)		0.08	0.03	0.12
Debt Equity Ratio (Total Debt /Networth)		1.95	2.84	2.92
Current Ratio (Current Asset/Current Liability)		1.02	1.07	0.99

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	265.379	265.379	265.379
Reserves & Surplus	2176.979	2245.010	2411.166
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2442.358	2510.389	2676.545
long-term borrowings	1226.463	1493.086	534.472
Short term borrowings	5134.942	5204.028	4128.721
Current maturities of long term debt	778.202	428.964	561.208
Total borrowings	7139.607	7126.078	5224.401
Debt/Equity ratio	2.923	2.839	1.952

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	14007.244	12616.395	13504.779
		(9.929)	7.042

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	14007.244	12616.395	13504.779
Profit	266.579	68.997	167.156
	1.90%	0.55%	1.24%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	---
33	Market information	---
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Other loans and advances, others	15.000	15.000
Total	15.000	15.000

OUTLOOK

With the full utilization of the installed capacity, the Company is expected to increase the sales of News Prints Paper, Writing and Printing Paper and Board. The Company got prestigious certification of Forest Stewardship Council, which again establishes company’s commitments towards better environmental products in environmental sensitive market. The company is also committed towards achieving efficiency by making attempts to reduce logistics costs and other expenses.

The Company has undergone various transformation activities for overall development of current business and exploring other future projects or expansion of capacities.

CORPORATE GOVERNANCE

The company is committed to adopt the best practices in corporate governance which is guided by the principles of conducting the business in a responsible, transparent and ethical manner so as to protect the interest of all stakeholders. The Corporate governance policy of the Company recognizes the accountability of the Board and the importance of making the Board transparent to all its constituents, including employees, investors and the regulatory authorities. The Company’s corporate governance framework is based on an effective independent Board, the separation of the Boards supervisory role from the executive management and the constitution of Board committees, generally comprising a majority of independent directors of the Company, to oversee critical areas and functions and continuously review the performance and recommend corrective actions to Executive Management.

The Company’s corporate governance philosophy encompasses not only regulatory and legal requirements, but also several voluntary practices aimed at a high level of business ethics, effective supervision and enhancement of value for all shareholders.

The Board of Directors role, functions, responsibility and accountability are clearly defined. In addition to its primary role of monitoring corporate performance, the functions of the Board include:

· Approving corporate philosophy and mission

· Formulation of strategic and business plans

· Reviewing and approving financial plans and budgets

· Reviewing corporate performance against strategic and business plans

· Ensuring ethical behavior and compliance with laws and regulations

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10579820	24/06/2015	500,000,000.00	PUNJAB NATIONAL BANK	INTERNATIONAL BANKING BRANCH, THE MALL, AMRITSAR - 143001,  PUNJAB, INDIA	C58802083
2	10519019	12/08/2014	1,865,000,000.00	ORIENTAL BANK OF COMMERCE	CIVIL LINES, AMRITSAR - 143001, PUNJAB, INDIA	C19891415
3	10519024	12/08/2014	250,000,000.00	ORIENTAL BANK OF COMMERCE	CIVIL LINES, AMRITSAR - 143001, PUNJAB, INDIA	C19894187
4	80021936	13/07/2015 *	8,584,400,000.00	ORIENTAL BANK OF COMMERCE	CIVIL LINES BRANCH, QUEENS ROAD, AMRITSAR - 143001, PUNJAB , INDIA	C61118733

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipment

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 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.64.96
UK Pound	1	Rs.100.53
Euro	1	Rs.73.99

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.