February 20, 2013

Mumbai

Ellora Paper Mills Limited

Rating Suspended

Total Bank Loan Facilities Rated	Rs.142.5 Million
Long-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its rating on the bank facilities of Ellora Paper Mills Ltd. (EPML). The suspension of ratings is on account of non-cooperation by EPML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, EPML is yet to provide adequate information to enable CRISIL to assess EPML’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the Company

EPML was established in Nagpur in 1979 by Mr. Kedia and Mr. Dalmia. The company was declared sick in 1985 and was taken over by Mr. Chandra Prakash Goenka. The company produces newsprint, and writing and printing paper. Its plant in Tumsur (Maharashtra) has capacity to manufacture 11,250 tonnes per annum (tpa) of paper. In 2008, EPML diversified its operations by setting up a rice processing mill with capacity to process 28,800 tpa of rice. Rice is processed under the brands Akshat and Jaisiyaram. The paper and rice divisions contributed around 65 and 35 per cent respectively to EPML’s revenues in 2009-10.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Mln)	Rating	Facility	Amount (Mln)	Rating
Cash Credit	90	Suspended	Cash Credit	90	CRISIL B-/Negative
Long-Term Loan	20	Suspended	Proposed Long-Term Bank Loan Facility	32.5	CRISIL B-/Negative
Proposed Long-Term Bank Loan Facility	32.5	Suspended	Long-Term Loan	20	CRISIL B-/Negative
Total	142.5	--	Total	142.5	--

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February 20, 2013	http://www.crisil.com