MIRA
INFORM REPORT
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Report Date : |
02.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANDMADE PAPER AND BOARD INDUSTRIES |
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Registered Office : |
Gramodyog Road, Sanganer, Jaipur-303902, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1965 |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business : |
Manufacturer
and Exporters of exclusive handmade paper and its products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed concern having satisfactory.
Partners are reported as experienced, respectable and having satisfactory
means of their own. Trade relations are fair. Business is active. Payments
are always correct and as per commitments. The concern can be considered good for normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory I : |
Gramodyog Road, Sanganer,
Jaipur-303902, Rajasthan, India |
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Tel. No.: |
91-141-2730222 / 2730333 / 2730443 / 444 |
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Mobile No.: |
91-9414046111 |
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Fax No.: |
91-141-2732444 |
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E-Mail : |
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Website : |
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Area : |
3 Acres [Owned] |
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Factory II : |
Ram Singh Pura, Sanganer,
Jaipur, Rajasthan, India. |
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Tel. No.: |
91-141-2731551 / 2731777 |
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E-Mail : |
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Area : |
1.5 Acres |
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Factory III : |
RIICO Industrial Area -
Sitapura, Jaipur, Rajasthan, India |
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Tel. No.: |
91-141-2771581 / 2771582 |
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E-Mail : |
PARTNERS
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Name : |
Mr. Islamuddin Kagzi |
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Designation : |
Partner |
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Date of Birth/Age : |
51 Years |
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Qualification : |
Graduate |
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Experience : |
25 Years |
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Name : |
Mr. Salimuddin Kagzi |
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Designation : |
Partner |
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Date of Birth/Age : |
74 Years |
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Qualification : |
Matric |
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Experience : |
45 Years |
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Name : |
Mr. Bashiruddin Kagzi |
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Designation : |
Partner |
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Date of Birth/Age : |
54 Years |
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Qualification : |
Graduate |
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Experience : |
47 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
and Exporters of exclusive handmade paper and its products. |
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Products : |
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Exports : |
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Products : |
Paper products and gifts wraps and items |
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Countries : |
USA, UK, Germany etc. |
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Imports : |
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Products : |
Accessories |
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Countries : |
China |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash, Credit [60 days] and at Sight |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1045 [In Office : 45 and Factory 1000] |
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Bankers : |
Axis Bank, Jaipur, Rajasthan, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Khan and Company Chartered Accountants |
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Address : |
Jaipur, Rajasthan, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 25.000 Millions |
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Borrowed : |
Rs. 75.000 Millions |
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Total : |
Rs. 100.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
260.000 |
240.000 |
235.000 |
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Profit/Loss for the year |
17.200 |
16.185 |
16.150 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCE
- Hallmark –
USA
- Travel Papers
– Germany
AS PER WEBSITE
Profile
Salim Bhai [Born
1931]
Son of Janab Allah Bax popularly
known as Salim Bhai, a god
fearing man, is a great visionary. He laid the foundation of Salim Group of Enterprises and guided
it to present stature. He is the president of Salim Group. Himself a master crafts man, joined his father at the
age of 15 years after schooling and sailed out the sinking boat of his
traditional craft.
He has a philanthropic out look. He takes lots of interest for the up-liftment
of his community and weaker section of other societies. He is connected with a
number of social organisations and charitable institutions. He is represented
on Managing Board of several Schools.
Sponsored by UNIDO, he has visited Japan, Finland, Check Republic, Austria,
Italy, France, Sweden to study the art of papermaking. He also made trips to
London, U.S.A, Miami, Panama, Mauritius and Nepal for the growth and promotion
of his products.
Unit – I
A 100% export unit, headed by CMD Alimuddin Kagzi a versatile
and contemporary businessman. The Production, Product Development and research
work is headed by Islamuddin Kagzi, Director. Customer service and business
relation is being looked after by the 3rd generation enthusiast Ahatramuddin
Kagzi.
Unit – II
This industry was brought into existence to cater the demand
of domestic market. Within three years of its establishment has earned a name
and spectacular growth under the able guidance of Nizamuddin Kagzi, technically
qualified and recipient of UNIDO fellowship training of Handmade paper making
in Japan.
Unit –
III
The exclusive paper bags making unit was commissioned in
1999 at the Export Promotion Zone of Sitapura Industrial Area with the capacity
of 50,000 bags per eight hourly shift on automatic machine and equipped with
Offset printing machine, design and development section is being controlled and
run successfully by Aminuddin Kagzi, the youngest in 2nd generation.
Handmade Paper Making Process
Paper Making
The process began by reducing
cotton waste to pulp. the pulp is diluted with water and put into a masonry.
The lifting mould (mesh on a wooden frame) is then dipped into the trough,
shaken evenly and lifted out with the pulp on it. The consistency of the pulp
in the tank should be kept constant.
Rose Plucking
Roses are selected and plucked,
Flower petals were added to the pulp which is then transferred to large tanks.
workers submerged a rectangular tray of fine mesh into the water. Taking pulp
from the tank, and emptied it into the tray.
Pressing
After inverting the tray and the muslin, the sheet of pulp
now on top was added to a pile. The pile was then pressed to drive out most of
the water. Pressing reduces the bulkiness of the paper i.e. the sheets become
more compact.
Separation
Small dirt particles are removed
manually with a sharp instrument. The cleaned sheets are given a coating with
starch to improve the physical properties of the paper and prevent feathering.
This is called sizing and can be done manually with a brush or by the dipping
method.
Natural Drying
After Separation the resulting
sheets were peeled off the muslin. As between 50 and 65% of moisture remains in
the sheets. The sheets are dried by hanging them in open areas of sunlight to
remove the rest of the moisture.
Calendaring
Then Dried Paper
is passed through a series of metal rolls at the end of a paper machine; when
the paper is passed between these rolls it increases its smoothness and glossy
surface.
History
Janab Allah Bax
[1881-1976]
Alegendry figure in traditional handmade paper making who
saved this art in Rajasthan from total wash out.
He met Mahatma Gandhi in 1937 and sought his support for survival of his
traditional craft.
Mahatma was a great protagonist of traditional craft and village industries. At
the instance of Mahatma Gandi he demonstrated the art of paper making at
Haripura congress in 1938.
Roots, Origin and Present
The history of their Khanzad - clan of kagzi (traditional
paper makers) dates back of the 14 century during the reign of Feroz Shah
Barbak (1336 AD) at Tizara in Alwar district of Rajasthan - India. Khanzadas
were a significant force at the time of Syed dynasty of Delhi Sultanate. The
Handmade Paper, particularly white, made by their forefathers was famous at
that time. It was mostly used by royalties for official documents, miniature
paintings. calligraphy, copying of religious books, specially Quaran-e-Pak and
for account books of traders.
They were brought to Amer by Mirza Man Singh a great connoisseur of art, craft
and litreture some time by the end of 16th century. The then ruler of Amer and
the chief of the army of Akbar the Great. They were settled first at Brahampuri
near Amer. This place is still known as Kagzi wada (dwelling of kagzis). There
was an acute shortage of water at Brahampuri. They were therefore shifted to
Sanganer situated on the bank of the river Saraswati, just before the
foundation of Jaipur City (1727). When the Mirza Man singh was governor of
Punjab and posted at Sial- kot, a prominent paper producing center in india, a
special paper was developed and given name Man singh-Sahi to honor him.
Sanganer emerged as one of the biggest paper making center in western India.
Humming with rhythm of the sound of stamper and other paper making activities,
this paper village excelled in developing its own variety of papers with
special characteristics. They were named according to their properties such as
Ishwar Sahi, Do Rohi etc. for different usage.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.42 |
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UK Pound |
1 |
Rs.78.26 |
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Euro |
1 |
Rs.57.51 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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54 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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