MIRA INFORM REPORT

Report No. :	346917
Report Date :	24.10.2015

IDENTIFICATION DETAILS

Name :	BILT GRAPHIC PAPER PRODUCTS LIMITED
Registered Office :	P.O. Ballarpur Paper Mills, District Chandrapur – 442901, Maharashtra
Tel. No.:	91-124-2804243
Country :	India
Financials (as on) :	30.06.2014
Date of Incorporation :	16.07.2007
Com. Reg. No.:	11-172382
Capital Investment / Paid-up Capital :	Rs. 5500.500 Million
CIN No.: [Company Identification No.]	U21000MH2007PLC172382
IEC No.:	0307084990
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCB2230M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing and selling of Paper, Pulp and Paper Products.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 41800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Ballarpur Paper holding B.V.”, Netherland It is an established company incorporated in the year 2007 having good track. Financial position of the company is sound. Fundamentals of the company are strong and healthy. The rating also derives strength from its strong holding company and its experienced management. Promoters are reported to be well experienced and knowledgeable. Trade relations are reported as fair. Business is active. Payments terms are reported as regular and as per commitment. In view of strong holding support and sound financial base, the company can be considered normal 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	INDIA RATING
Rating	Commercial Paper = IND (A1+)
Rating Explanation	Very strong degree of safety and carry lowest credit risk
Date	May 2015

Rating Agency Name	INDIA RATING
Rating	Term Loan = IND (A+)
Rating Explanation	Adequate degree of safety and carry low credit risk
Date	May 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 DENIED

Management non co-operative (Tel. No.: 91-124-2804243)

LOCATIONS

Registered Office :	P.O. Ballarpur Paper Mills, District Chandrapur – 442901, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	deepak.bansal@bilt.com
Head Office :	First India Place, Tower – C, Mehrauli – Gurgaon Road, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-2804242/2804243
Factory :	Located at: Ballarpur, Maharashtra, India Bhigwan, Maharashtra, India Ashti, Maharashtra, India Sewa, Odisha, India

DIRECTORS

AS ON 19.12.2014

Name :

Rajeev Ranjan Vederah

Designation :

Director

Address :

47, Paschimi Marg, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

30.08.1949

Date of Appointment :

16.07.2007

DIN No.:

00012252

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	U74899DL1995PLC066734	THE PAPERBASE COMPANY LIMITED	Director	29/10/1997	29/10/1997	-	Amalgamated	NO
2	U29195DL1984PLC215106	BILT INDUSTRIAL PACKAGING COMPANY LIMITED	Director	14/01/2000	14/01/2000	-	Active	NO
3	U36999DL1989PLC034942	BILT TREE TECH LIMITED	Director	17/08/2000	17/08/2000	19/02/2014	Active	NO
4	L21010MH1945PLC010337	BALLARPUR INDUSTRIES LIMITED	Director	01/07/2014	16/10/2000	-	Active	NO
5	U24297PN2003PTC018363	IMERYS NEWQUEST (INDIA) PRIVATE LIMITED	Director	15/09/2003	15/09/2003	-	Active	NO
6	U21000MH2007PLC172382	BILT GRAPHIC PAPER PRODUCTS LIMITED	Director	16/07/2007	16/07/2007	-	Active	NO
7	U24119DL2001PLC111100	SOLARIS CHEMTECH INDUSTRIES LIMITED	Director	19/08/2009	02/04/2009	-	Active	NO
8	U67120DL1998PLC198627	AVANTHA HOLDINGS LIMITED	Additional director	03/11/2009	03/11/2009	11/06/2010	Active	NO
9	U85110KA1998PLC023512	PREMIER TISSUES (INDIA) LIMITED	Director	13/12/2011	09/03/2011	-	Active	NO
10	L29199HR1956PLC033107	TALBROS AUTOMOTIVE COMPONENTS LIMITED	Director	16/09/2013	13/02/2013	-	Active	NO

Name :

Bhuthalingam Hariharan

Designation :

Director

Address :

D-2/3, Paschimi Marg, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

18.04.1957

Date of Appointment :

16.07.2007

DIN No.:

00012432

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	U51102DL1997PLC112862	SOLARIS CHEMTECH LIMITED	Director	29/12/1997	29/12/1997	-	Amalgamated	NO
2	U02001DL1992PLC047666	GLOBAL GREEN COMPANY LIMITED	Nominee director	18/11/2011	25/05/1999	-	Active	NO
3	U36999DL1989PLC034942	BILT TREE TECH LIMITED	Director	17/08/2000	17/08/2000	05/11/2012	Active	NO
4	L21010MH1945PLC010337	BALLARPUR INDUSTRIES LIMITED	Whole-time director	21/06/2001	21/06/2001	-	Active	NO
5	U67120DL1998PLC198627	AVANTHA HOLDINGS LIMITED	Director	26/03/2011	06/03/2002	-	Active	NO
6	U65999DL2003PLC119508	NEWQUEST INSURANCE BROKING SERVICES LIMITED	Director	24/03/2003	24/03/2003	-	Active	NO
7	U67120DL2003PLC198253	SOLARIS HOLDINGS LIMITED	Director	04/04/2003	04/04/2003	-	Amalgamated	NO
8	U74140DL2005PLC135984	Avantha Business Solutions Limited	Director	07/10/2005	07/10/2005	29/08/2014	Active	NO
9	U22121DL2005PTC138214	CONTENT SERVICES AND PUBLISHING PRIVATE LIMITED	Director	08/03/2006	08/03/2006	12/03/2010	Active	NO
10	U40101DL2005PLC138906	AVANTHA POWER & INFRASTRUCTURE LIMITED	Director	13/12/2006	12/06/2006	-	Active	NO
11	U21000MH2007PLC172382	BILT GRAPHIC PAPER PRODUCTS LIMITED	Director	16/07/2007	16/07/2007	-	Active	NO
12	U24119DL2001PLC111100	SOLARIS CHEMTECH INDUSTRIES LIMITED	Director	31/12/2008	26/09/2008	-	Active	NO
13	U24296DL2004PLC129497	KCT CHEMICALS AND ELECTRICALS LIMITED	Director	08/09/2009	21/07/2009	-	Amalgamated	NO
14	U67120DL2003PTC121919	TOPSCORE TRADEVARIETY PRIVATE LIMITED	Director	30/09/2010	21/07/2009	-	Amalgamated	NO
15	U70102DL1981PLC198595	AVANTHA REALTY LIMITED	Director	30/09/2010	04/11/2009	29/08/2014	Active	NO
16	U72900DL2001PLC109058	BILTECH BUILDING ELEMENTS LIMITED	Director	21/09/2011	16/11/2010	25/03/2015	Active	NO
17	U85110KA1998PLC023512	PREMIER TISSUES (INDIA) LIMITED	Director	13/12/2011	09/03/2011	29/08/2014	Active	NO
18	U26942CT2007PTC020227	K.P. CEMENT MFG. CO. PRIVATE LIMITED	Director	27/09/2012	29/12/2011	29/08/2014	Active	NO
19	U40300MH2012PLC228170	CG POWER SOLUTIONS LIMITED	Director	14/03/2012	14/03/2012	-	Active	NO
20	L99999MH1937PLC002641	CROMPTON GREAVES LIMITED	Director	06/08/2013	01/11/2012	-	Active	NO
21	U66000HR2013PLC048992	Avantha Ergo Life Insurance Company Limited	Director	22/05/2014	02/05/2013	-	Active	NO

Name :

Yogesh Agarwal

Designation :

Whole-Time Director

Address :

607-B, Aralias, DLF Golf Links, DLF Course Road, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

08.02.1964

Date of Appointment :

25.08.2008

DIN No.:

00233722

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	U29195DL1984PLC215106	BILT INDUSTRIAL PACKAGING COMPANY LIMITED	Director	18/06/2002	18/06/2002	-	Active	NO
2	U51909DL1992PLC048407	APR SACKS LIMITED	Director	30/09/2006	24/05/2006	-	Amalgamated	NO
3	U21000MH2007PLC172382	BILT GRAPHIC PAPER PRODUCTS LIMITED	Whole-time director	25/08/2008	16/07/2007	-	Active	NO
4	U92412DL2008PTC185525	Direct Golf Management Services Private Limited	Director	04/12/2008	04/12/2008	-	Active	NO
5	U24100MH2009FTC190664	SMI NewQuest India Private Limited	Director	30/09/2011	16/02/2011	-	Active	NO
6	U36999DL1989PLC034942	BILT TREE TECH LIMITED	Director	14/12/2012	29/10/2012	19/02/2014	Active	NO

Name :

Nandni Adya

Designation :

Additional Director

Address :

83 Jor Bagh, New Delhi – 110003, India

Date of Appointment :

24.12.2014

DIN No.:

00106944

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	U74899DL1996PLC081127	BHARTIYA SAMRUDDHI FINANCE LIMITED	Director	27/04/2002	27/04/2002	30/01/2011	Active	NO
2	L21010MH1945PLC010337	BALLARPUR INDUSTRIES LIMITED	Director	19/12/2014	11/11/2014	-	Active	NO
3	U74899DL1995PTC073241	MANOR FINLEASE PRIVATE LIMITED	Additional director	14/11/2014	14/11/2014	-	Active	NO
4	U74899DL1995PTC064096	NAMM INTERTRADE PRIVATE LIMITED	Additional director	14/11/2014	14/11/2014	-	Active	NO
5	U21000MH2007PLC172382	BILT GRAPHIC PAPER PRODUCTS LIMITED	Additional director	24/12/2014	24/12/2014	-	Active	NO

KEY EXECUTIVES

Name :	Deepak Bansal
Designation :	Secretary
Address :	IP College For Women, C-4, Staff Flats, Shamnath Nagar, Civil Lines, New Delhi, 110054, India
Date of Birth/Age :	26.02.1975
Date of Appointment :	25.08.2008
PAN No.:	ABTPB4125B

MAJOR SHAREHOLDERS

AS ON 19.12.2014

Names of Shareholders	No. of Shares
Ballarpur Industries Limited, India	49940
Akhil Mahajan (Nominee of Ballarpur Industries Limited)	10
Sandeep Pathak (Nominee of Ballarpur Industries Limited)	10
Vinu Jolly (Nominee of Ballarpur Industries Limited)	10
Shalini Sehgal (Nominee of Ballarpur Industries Limited)	10
Vivek Chaudhary (Nominee of Ballarpur Industries Limited)	10
Ballarpur Paper Holdings B.V.	550000000
Bansal Deepak (Nominee of Ballarpur Industries Limited)	10
Total	550050000

Equity Share Break up (Percentage of Total Equity)

AS ON 19.12.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Bodies corporate	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing and selling of Paper, Pulp and Paper Products.
Products :	Not Divulged
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

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

Customers :

Not Divulged

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

No. of Employees :

Information declined by the management

Bankers :

• Axis Bank Limited, Central Office, Capital Markets Department, 11^th Floor, “F” Wing, Maker Towers, Cuffe Parade, Mumbai – 400005, Maharashtra, India
• IDFC Limited, KRM Tower, 8^th Floor, No.1, Harrington Road, Chetpet, Chennai – 600031, Tamilnadu, India
• Central Bank of India, Corporate Finance Branch, 5, Parliament Street, New Delhi – 110001, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Foreign Currency term loans from others	2702.100	3426.100
Rupee term loans from others	4316.000	3863.600
Rupee term loans from banks	3252.500	0.000
Non-convertible debentures banks	5100.000	5850.000
Other loans and advances	0.100	0.400
Non-convertible debentures others	0.000	50.000
Total	15370.700	13190.100

Auditors :
Name :	K. K. Mankeshwar and Company Chartered Accountants
Address :	King's Way, Nagpur – 440001, Maharashtra, India
PAN No.:	AABFK1156A
Memberships :	--
Collaborators :	--
Ultimate Holding company :	Ballarpur Industries Limited
Holding company :	Ballarpur Paper Holdings B.V.
Fellow Subsidiary company :	Bilt Tree Tech Limited Sabah Forest Industries Sdn. Bhd. Premier Tissues (India) Limited

CAPITAL STRUCTURE

AS ON 19.12.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
850100000	Equity Shares	Rs.10/- each	Rs. 8501.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
550050000	Equity Shares	Rs.10/- each	Rs. 5500.500 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.06.2014	30.06.2013	30.06.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5500.500	5500.500	5500.500
(b) Reserves & Surplus	9135.900	8420.600	7280.800
(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)	14636.400	13921.100	12781.300
(3) Non-Current Liabilities
(a) long-term borrowings	24475.100	22145.500	19634.300
(b) Deferred tax liabilities (Net)	2170.000	2057.800	1888.700
(c) Other long term liabilities	485.000	418.700	310.800
(d) long-term provisions	351.800	319.800	246.400
Total Non-current Liabilities (3)	27481.900	24941.800	22080.200
(4) Current Liabilities
(a) Short term borrowings	10140.500	9623.500	6582.400
(b) Trade payables	8818.300	7784.100	6047.800
(c) Other current liabilities	6676.500	5775.200	5642.800
(d) Short-term provisions	296.200	431.300	186.000
Total Current Liabilities (4)	25931.500	23614.100	18459.000
TOTAL	68049.800	62477.000	53320.500
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	46142.500	32660.600	29142.900
(ii) Intangible Assets	223.100	116.600	0.400
(iii) Capital work-in-progress	531.700	14017.800	8894.100
(iv) Intangible assets under development	0.000	100.500	0.000
(b) Non-current Investments	330.500	330.500	330.500
(c) Deferred tax assets (net)	3104.000	2964.500	4676.800
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	50331.800	50190.500	43044.700
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	8550.000	6716.500	4770.700
(c) Trade receivables	2068.200	1827.600	1763.400
(d) Cash and cash equivalents	2135.000	200.600	314.400
(e) Short-term loans and advances	4957.700	3531.200	3406.200
(f) Other current assets	7.100	10.600	21.100
Total Current Assets	17718.000	12286.500	10275.800
TOTAL	68049.800	62477.000	53320.500

PROFIT & LOSS ACCOUNT

	PARTICULARS	30.06.2014	30.06.2013	30.06.2012
	SALES
	Income	37065.900	33092.100	31211.900
	Other Income	112.600	47.900	89.000
	TOTAL	37178.500	33140.000	31300.900
Less	EXPENSES
	Cost of Materials Consumed	21457.900	18800.900	17372.200
	Purchases of Stock-in-Trade	29.200	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	-874.000	-72.200	-58.400
	Employees benefits expense	1836.900	1601.200	1426.900
	Other expenses	7849.000	6798.700	6854.100
	TOTAL	30299.000	27128.600	25594.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	6879.500	6011.400	5706.100
Less	FINANCIAL EXPENSES	3341.500	2444.400	2573.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	3538.000	3567.000	3132.400
Less/ Add	DEPRECIATION/ AMORTISATION	2260.700	1813.400	1710.400
	PROFIT BEFORE TAX	1277.300	1753.600	1422.000
Less	TAX	143.700	198.300	293.000
	PROFIT AFTER TAX	1133.600	1555.300	1129.000
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	2442.000	3133.600	3419.900
	TOTAL EARNINGS	2442.000	3133.600	3419.900
	IMPORTS
	Raw Materials	10047.100	10037.100	6728.000
	Components and Stores parts	1451.200	609.300	995.000
	Capital Goods	117.100	231.700	2953.900
	TOTAL IMPORTS	11615.400	10878.100	10676.900
	Earnings Per Share (Rs.)	2.06	2.83	2.05

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	30.06.2014	30.06.2013	30.06.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operation	7698.900	6746.900	5590.100

KEY RATIOS

PARTICULARS		30.06.2014	30.06.2013	30.06.2012
Net Profit Margin (PAT / Sales)	(%)	3.06	4.70	3.62
Operating Profit Margin (PBIDT/Sales)	(%)	18.56	18.17	18.28
Return on Total Assets (PBT/Total Assets}	(%)	1.99	3.89	3.61
Return on Investment (ROI) (PBT/Networth)		0.09	0.13	0.11
Debt Equity Ratio (Total Debt /Networth)		2.37	2.28	2.05
Current Ratio (Current Asset/Current Liability)		0.68	0.52	0.56

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	30.06.2012	30.06.2013	30.06.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	5500.500	5500.500	5500.500
Reserves & Surplus	7280.800	8420.600	9135.900
Share Application money pending allotment	0.000	0.000	0.000
Net worth	12781.300	13921.100	14636.400
long-term borrowings	19634.300	22145.500	24475.100
Short term borrowings	6582.400	9623.500	10140.500
Current Maturities of Long Term Debt	0.000	0.000	0.000
Total borrowings	26216.700	31769.000	34615.600
Debt/Equity ratio	2.051	2.282	2.365

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.06.2012	30.06.2013	30.06.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	31211.900	33092.100	37065.900
		6.024	12.008

NET PROFIT MARGIN

Net Profit Margin	30.06.2012	30.06.2013	30.06.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	31211.900	33092.100	37065.900
Profit	1129.000	1555.300	1133.600
	3.62%	4.70%	3.06%

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	No
7	Name of the person contacted	No
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	No
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)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
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 three years	Yes
27	Reasons for variation <> 20%	----
28	Estimation for coming financial year	No
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	No
35	Negative Reporting by Auditors in the Annual Report	No

OVERVIEW AND OPERATIONS

Subject is part of the paper and pulp industry with a strong presence in India. Globally, the industry is undergoing a structural transformation.

On the one hand, advanced economies are witnessing pressure on demand due to deep penetration of the digital media which has often made the use of paper redundant. On the other, emerging economies like China and India with higher economic growth, stress on school and college education, large and thriving networks of newspapers and print media coupled with relatively low paper penetration base are witnessing healthy increases in paper demand. While the longer term structural trend stated above is correct, it is also important to note that prevalent macro-economic conditions play a significant role in defining the shorter term status of the pulp and paper industry. On that score, the situation was not particularly positive even for the emerging markets. Global economic growth was stifled in calendar year (CY) 2013. World GDP growth had reduced to 3.1% in CY2012. Unfortunately, it declined further to 3% in CY2013. This time, the major drop in GDP growth was in the emerging markets and developing economies, which witnessed a reduction from 4.9% in CY2012 to 4.7% in CY2013.

India, too, went through a difficult time. The country recorded its second consecutive year of below 5% growth: 4.7% for the period April 2013 to March 2014, with manufacturing output declining by 0.7% compared to the same period in the previous year. Not surprisingly, paper demand was adversely affected in India and it occurred at a time when the domestic paper industry had already made large scale investments in enhancing capacities. Thus, the market conditions were highly competitive.

The Company, too, completed its present round of large scale investments with the pulping facility coming on stream in Ballarpur in February 2014. This was the last of the major investment programme which was being executed over the last five years. With these investments, the Company is now ready to leverage the benefits of integration right across the pulp and paper value chain by catering to specific segments of the Indian paper market which rank among the fastest growing paper markets in the world.

In a sense, FY2014 was a watershed year for the Company. It saw the completion of a long phase of strategic investments, acquisitions and expansion of capacities; and, with it, there is a clear change in emphasis to consolidation, and focus on efficient execution to best deliver enhanced value for the businesses and the stakeholders.

BUSINES PORTFOLIO

The Company has undergone restructuring over the last few years The Company now focuses on the wood-free printing and writing paper, coated and uncoated, which is the primary business portfolio. The focus is on the reel or sheet commercial printing business and desktop printing business through copier paper. There is also focus on high value bio-degradable high-end packaging. The Company has four plants in India Ballarpur (Maharashtra), Bhigwan (Maharashtra), Ashti (Maharashtra) and Sewa (Odisha).

The business competitive strength emanates from the vertical integration of its operations and strong marketing distribution network. In terms of fibre security, the Company has access to 288,138 hectares of licensed plantations and forests of its fellow subsidiary, Sabah Forest Industries Sdn. Bhd. (SFI). It also has access to procuring from farmers in India through its social farm forestry programme by Bilt Tree Tech Ltd, a fellow subsidiary, which has been developed over several years. The Company is now fully self-sufficient in hard-wood pulp production with two of the four units having integrated pulp producing facilities namely Ballarpur and Sewa, while Bhigwan and Ashti obtain pulp produced at SFI and Ballarpur. The production system also includes captive energy and part chemicals (on-site) at certain facilities. This integrated structure right from procuring wood to producing paper provides scope for flexibilities in operating decisions that optimises costs. The business is supported by a unique distribution network. The Company has a multi-tiered distribution network in India, with most of the volume being sold by exclusive distributors.

MARKET DEVELOPMENTS

Globally, the paper industry is facing the most difficult challenge of shrinking demand. This has been evident in the recent past and the trend has continued in 2013-14. However, this trend has several regional disparities across the globe. Broadly, the advanced countries have greater digitization and are witnessing shrinking demand while emerging economies mainly in Asia, the Middle-East and Africa is seeing demand growth. Data for the first seven months of CY2014 clearly outlines this development. North America and Europe registered declining demand of 3% and 2.3% respectively, while the Asian economies, including India and China, grew by 2.5%. In this backdrop, there has been several closures of high cost plants in the western world, while the developing countries have seen increased investments in the paper industry primarily to integrate across the chain and reduce costs. These developments have created a delicate balance between global demand and supply in the industry.

Despite digitisation across the economy, India happens to be one of the fastest growing paper markets in the world. Estimates suggest that paper demand in India will grow by 53% over the next six years, increasing from today’s levels of 13 million metric tons (MT) to 20 million MT by 2020. This will be primarily because of massive under-penetration of paper use in India. According to a report by India Ratings, India’s per capita paper consumption is at 9 kg, against 22 kg in Indonesia, 25 kg in Malaysia and 42 kg in China. The global average stands at 58 kg. Policy factors also have a key role to play in the growth of the domestic paper industry in India. The governments sustained focus on literacy, increased consumer packaging, continued need for documentation for Indian Companies and expansion in organized retail continue to positively affect paper consumption and demand in India.

Thus, there is considerable headroom for growth with every one kg incremental per capita consumption in India translating to an additional demand of over one million MT per year. At an industry level, over the last five years, the Indian paper industry has invested around Rs. 20,000 Crore towards capacity enhancement, technology up-gradation and various acquisitions. With these capacities coming on stream in a short span of time, there has been an immediate effect of intense market competition. However, this is expected to settle down as Companies focus on leveraging these assets without making much additional investments in the short to medium term. With India’s Free-Trade Agreement (FTA) with the Association of Southeast Asian Nations (ASEAN) coming into effect from 1 January 2014, the import duty on paper supplied from countries in this region to India has been practically waived. As it stands today, there is zero duty on import of coated sheet products and 6% on import of coated-reel products. For import of both sheet and reel uncoated products, there is zero duty. Consequently, there has been an increase in volume of imported paper from ASEAN countries in 2014. This has exerted some additional competitive pressures on domestic paper manufacturers. The Company also strategically exports some of its output to leverage global opportunities, develop a market position in some countries and balance-out the supply in India.

The details of operational developments across the different Units are given below:

Unit: Ballarpur

Ballarpurs paper production increased marginally from 2,44,228 MT in FY2013 to 2,45,587 MT in FY2014. The state-of the- art paper machine no.7, which was the new equipment commissioned as part of the latest investment plan, produced 1,28,719 MT of paper. This machine and its finishing section has enhanced paper quality and provided better cut and packing with improved productivity levels. A higher scale of production was achieved despite manufacturing a lower grammage product mix to meet market demand. On the product development front, Ballarpur successfully developed new products such as BILT Edge paper for carry bags, Copier grade for the stationery segment and new shades of ESKP for the packaging segment.

During FY2014, the new pulp mill with latest pulping technology comprising continuous digester and ECF bleaching process was commissioned and the machine is in the process of stabilisation. With the commissioning of this pulp mill, the Ballarpur and Ashti mills are now fully integrated with respect to hardwood pulp. Bleached pulp production increased from was 1,15,917 ADMT (air dried metric ton) in FY2013 to 1,89,055 ADMT in FY2014. Improved technology and process controls in operations resulted in better pulp quality with consistent brightness and increased pulp strength resulting in better operational efficiencies of paper machines. As part of cost reduction initiatives, there was continued focus on energy and fibre conservation. Ash levels in paper were further increased through incorporation of new process technologies.

Environment management and resource conservation continued to be key focus areas. Various steps were taken in this regards such as:

(i) The mill continuously works to reduce water consumption by adopting water efficient technologies and deploying 3-R (Reduce-Reuse-Recycle) methodology in water conservation. Installation of the modernized pulp mill along with wash presses has resulted in significant reduction in specific water consumption, which is far below the national norms.

(ii) Reductions in steam and power consumption were brought about through implementation of various energy conservation initiatives across the pulp and paper manufacturing process. Some of these include: thermo-compressors at paper machines, higher energy efficient vacuum pumps, compressors and electric motors, LED lightings, use of enzymes for refining and implementation of Energy Management System (EnMS) ISO 50001:2011 for better operational controls. As a result of these measures steam consumption on paper machines per MT of paper produced was reduced by 5.5% and power consumption went down by 1.4%.

(iii) As part of technology up-gradation for energy and environmental sustainability, advanced energy and resource efficient equipment have been incorporated in the new pulp mill such as Continuous Cooking Digester, Oxygen De-lignification system, ECF Bleaching and Single High Pressure Recovery Boiler, with all commensurate control systems. These have brought about significant reduction in steam with consumption per MT of bleached pulp falling by 29%.

(iv) Alongwith the modernisation of the pulp mill, the Effluent Treatment Plant (ETP) at Ballarpur has also been upgraded with MBBR (Moving Bed Bio-film Reactor) and DAF (Dissolved Air Floatation) effluent treatment process technologies. These technologies have significantly improved the final treated effluent quality including significant reduction in effluent colour.

Awards and Achievements:

(i) Energy Efficient Award 2013 from CII GBC Hyderabad for Excellence in Energy Management.

(ii) Second prize in Energy Conservation Award 2011-12 from MEDA (Maharashtra Energy Development Agency, Pune).

(iii) First integrated pulp and paper industry in India to implement and certified Energy Management System (EnMS) as per ISO 50001:2011.

(iv) Certified Integrated Management System of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007.

(v) Certified for FSC COC and Control Wood certificate by the Forest Stewardship Council.

(vi) Shortlisted among top five Companies globally by RISI-Pulp and Paper International for the Environmental Strategy of the Year 2013 Award

Unit: Bhigwan

During FY2014, the PM1 line at Bhigwan produced 1,44,553 MT of coated paper and coated boards, while the new PM?2 line produced 1,29,100 MT of coated paper. Total production was higher at 273,653 MT in FY2014 compared to 267,257 MT in FY2013. This was inspite of higher quantities of lower grammage products manufactured to meet changing demand conditions. On the product development front, the mill successfully developed and manufactured 50 gsm high strength C1S paper for flexible packaging, 350 gsm

C2S art board and 180 gsm matt board for graphics application. These new products have significantly enhanced BILTs product basket. The Unit continued to focus on cost reduction. Wet end chemicals usage has been optimised which has resulted in reduction in usage by almost 5%. Coating slip cost was optimised through introduction of cost effective synthetic binders at the C1S grades. Overall coating chemical consumption was reduced by 1.8% per MT of paper produced. In addition, finishing losses were significantly reduced, especially on PM2. In order to improve the product quality, a modern web inspection system was installed on the paper machine to reduce breaks at the coater and also physical defects in the paper. It has helped us to significantly improve the quality.

Various steps were taken for Environment Management and Resource conservation viz:

(i) Resource conservation was taken up with renewed focus in the areas of downtime reduction, optimisation of wet end and coating chemicals, lower maintenance cost, increased manpower productivity and reduction of production losses.

(ii) Fibre usage was brought down by increasing ash levels in paper and board and overall ash levels were increased in finished paper through incorporation of new process technologies.

(iii) Energy conservation activities carried out in the plant include installing four Triton aerators in the ETP, strengthening monitoring by installing an on line energy monitoring system, installing VFDs and replacement of calendar blowers, use of bio-refining, and change in refiner plate design. These initiatives translated into reduction in power consumption by 1.6% per MT of paper produced.

(iv) Steam consumption has also reduced by 3.3% per MTof paper produced. This was achieved by optimising the performance of steam and condensate recovery system, reducing leakages and regulating moisture in paper.

(v) For conserving fresh water, the unit has invested in an RO plant of capacity of 1,320 m3/day for recycling ETP treated water.

Awards and Achievements:

(i) International award for Environment Award-Mill from RISI (Resource Information Systems Inc.)

(ii) First Prize in Excellence in Energy Management Award 2012-13 from MEDA (Maharashtra Energy Development Agency, Pune).

(iii) International award for Quality excellence and Leadership, Pan Pacific Singapore Safety and Environmental Sustainability Award.

(iv) Winners of India Corporate Governance & Sustainability Vision Award for Water Stewardship.

(v) Good Green Governance Award by Srishti Publication Limited, New Delhi.

(vi) Certified Integrated Management System of ISO 9001:2008, ISO14001:2004, ISO 50001:2011 and OHSAS 18001:2007.

(vii) FSC COC Certification by the Forest Stewardship Council.

Unit: Sewa

Sewa produced 69,947 MT of paper in FY2014 compared to 68,614 MT in FY2013. Captive bleached pulp production increased from 50,687 ADMT in FY2013 to 56,951 ADMT in FY2014. The mill undertook several initiatives for quality improvement and new product development. New grades of paper including SSML-HB 65, 74, 88, 120 and 165 gsm were developed in line with market demand. In addition, FSC copy paper under the brand name P3 Go Green Multipurpose Paper was introduced. A major initiative was undertaken to modify the pulp bleaching sequence. This has resulted in a significant reduction in elemental chlorine reduction making the pulp manufacturing process more environment friendly. In addition, there is an improvement in the quality of pulpbrightness thereby improving the final paper brightness. In addition, efforts were undertaken to reduce fibre consumption, which was brought down by 2.7% per MT of paper. This was achieved by improving the strength of pulp and incorporating new process technology.

Various steps were taken for Environment Management and Resource Conservation viz.:

(i) Significant improvements were achieved in resources conservation including:

(ii) Improvement in chemical recovery efficiency resulting in lower caustic consumption.

(iii) Reduction of almost 15% in steam consumption through modification of steam and condensate system of one of the paper machines.

(iv) Installation and commissioning of energy conservation turbine helping reduce 800 KW purchased power from grid. This turbine is using un-utilised heat energy of steam being supplied for the de-aeration system of boilers.

(v) Installation of energy efficient pump at river intake resulting in power saving.

In terms of environment protection, Sewa has continuously ensured compliance with the norms laid down by Odisha State Pollution Control Board. Specifically, in FY2014, it started supply of fly ash to local brick manufacturers and worked further in coordination with the government authorities to make use of 100% fly ash. In addition, steps were taken to improve the green belt area inside and near the plant.

Awards and Achievements:

(i) Certified for ISO-9001:2008, Quality Management System, ISO-14001:2004, Environment Management System and OHSAS-18001:2007, Safety and Health Management system.

(ii) Certified for FSC COC-Control Wood by the Forest Stewardship Council.

(iii) Certified for ISO 50001:2011, Energy Management System.

(iv) 2^nd runners up in the global RISI award- 2013 under the category of Innovative product of the Year award.

(v) Safety award from Government of Odisha for longest accident free period.

Unit: Ashti

Ashti produced 48,920 MT of paper in FY2014, which was 2,432 MT higher than what was produced in FY2013. On the product development front, Ashti successfully developed and manufactured new shades and products in writing and printing segment such as Wisdom Print, Magna Print and Copier grade paper for digital printing. During FY2014, it introduced new process technologies including nano-particle technology for RDA system and pigmented OBA technology for better quality of paper. Shrink packing of copier products was also introduced, which resulted in improved quality of packing and lower production costs. As part of fibre conservation, ash levelsin paper have been increased. Also, fibre development through enzyme technology resulted in lower consumption of softwood pulp. These initiatives helped in reduction of fibre consumption along with improvement in paper quality.

Various steps were taken for Environment Management and Resource conservation viz.:

(i) The mill reduced energy consumption by 10%. Coal consumption decreased by improving boiler efficiency through adopting automation and control software. Power consumption fell by 6% per MT of paper and there are various initiatives planned to achieve further reduction in power consumption.

(ii) Fibre consumption got reduced by 17 Kg/MT of paper produced. Fibre losses from the plant have been further controlled by optimising disc filter operations to reduce sludge generation and ETP load.

Awards and Achievements:

(i) Third Prize in Excellence in Energy Management Award 2012 from MEDA (Maharashtra Energy Development Agency, Pune).

(ii) Certified Integrated Management System of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007.

(iii) Certified for FSC COC and Control Wood certificate by the Forest Stewardship Council.

FARM FORESTRY

The Company continues to work with the farming community for planting tree species that are suitable for industrial wood through BILT Tree Tech Limited, a fellow subsidiary Company.

UNSECURED LOAN

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Deferred sales tax loans	400.000	287.000
Foreign currency term loans from others	5704.400	5668.400
Fully convertible debentures	3000.000	3000.000
SHORT TERM BORROWING
Working capital loans from banks	10140.500	9623.500
Total	19244.900	18578.900

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10587461	12/08/2015	2,500,000,000.00	Axis Trustee Services Limited	Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA	C62357769
2	10540505	31/12/2014	2,000,000,000.00	AXIS BANK LTD.	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA	C39160072
3	10530135	13/11/2014	500,000,000.00	GE MONEY FINANCIAL SERVICES Private LIMITED	401 402 4TH FLOORAGGARWAL MILLENIUM TOWER, E1 2 3 NETAJI SUBHASH PLACE, PITAMPURA DELHI, Delhi - 110034, INDIA	C32912891
4	10476598	24/01/2014	1,269,293,600.00	IDFC Limited	KRM Tower, 8th Floor, No. 1, Harrington Road, Chetpet, Chennai, Tamil Nadu - 600031, INDIA	B95937652
5	10470315	11/12/2013	885,121,667.00	Axis Bank Limited	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA	B93545135
6	10443847	02/08/2013	1,220,000,000.00	DBS BANK LTD.	CAPITOL POINT, BABA KHARAK SINGH MARG, CONNAUGHT PLACE, NEW DELHI, Delhi - 110001, INDIA	B82502816
7	10436067	03/07/2013	3,000,000,000.00	STATE BANK OF INDIA	CAG BRANCH, 1, TOLSTOY MARG, 12TH FLOOR, JAWAHAR VYAPAR BHAVAN, NEW DELHI, Delhi - 110001, INDIA	B79281911
8	10433664	26/06/2013	1,500,000,000.00	GE MONEY FINANCIAL SERVICES Private LIMITED	401 402 4TH FLOORAGGARWAL MILLENIUM TOWER, E1 2 3 NETAJI SUBHASH PLACE, PITAMPURA DELHI, Delhi - 110034, INDIA	B78221769
9	10414913	28/03/2013	1,350,000,000.00	Axis Trustee Services Limited	Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA	B71788327
10	10393832	27/12/2012	2,500,000,000.00	IDFC Limited	KRM Tower, 8th Floor, No. 1, Harrington Road, Chetpet, Chennai, Tamil Nadu - 600031, INDIA	B64822281

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipments
• Computer Equipments
• Other Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No 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. 64.88
UK Pound	1	Rs. 99.89
Euro	1	Rs. 72.06

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		61

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.