MIRA INFORM REPORT

Report Date :

28.08.2014

IDENTIFICATION DETAILS

Name :	CELLO INTERNATIONAL PRIVATE LIMITED
Registered Office :	Plot No. 720/5, Somnath Road, Dabhel, Daman – 396210, Daman and Diu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.01.1991
Com. Reg. No.:	56-001277
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U25209DD1991PTC001277
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of thermoware and Castrol.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 660000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of “Cello Group”. It is an established company having moderate track. Management has witnesses a drastic dip in its sales volume as well as reported a loss from its operations during FY 13. However, trade relations seem to be fair. Business is active. Payment terms are reported as sales but correct. The company can be considered for business dealings with some caution.

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term ratings : A3+ (Suspended)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	21.11.2012

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON - COOPERATIVE (91-22-26853080)

LOCATIONS

Registered Office :	Plot No. 720/5, Somnath Road, Dabhel, Daman – 396210, Daman and Diu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	ashim.bose@celloworld.com
Corporate Office:	5 Vakil Industrial Estate, Corporate Avenue, Sonawal Cross Road, Next to Udyog Bhavan, Goregaon East, Mumbai, Maharashtra, India
Tel. No.:	91-22-26853080/26851333/26852694
Fax No.:	91-22-26851444
E-Mail :	cellointernational@celloworld.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Mukesh Bhanwarlal Jain

Designation :

Director

Address :

53, Rani Sati Road, A/2D, Devra Building, Malad (East), Mumbai – 400097, Maharashtra, India

Date of Birth/Age :

07.09.1969

Date of Appointment :

21.12.2002

DIN No.:

00625604

Name :

Mr. Ashim Arunchandra Bose

Designation :

Whole-time director

Address :

1A, 704, Ahimsa Dham, Off New Link Road, Malad (West), Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

03.04.1959

Date of Appointment :

10.09.2012

DIN No.:

05247425

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	U25209DD1991PTC001277	CELLO INTERNATIONAL PRIVATE LIMITED	Whole-time director	10/09/2012	13/04/2012	-	Active	NO

Name :

Mr. Jayantiilal Walchand Jain

Designation :

Director

Address :

Mona BG, Near Navrang Cinema, Andheri (West), Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

07.11.1944

Date of Appointment :

21.12.2002

DIN No.:

02362063

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	U36991DD1995PTC001821	CELLO WRITING INSTRUMENTS AND CONTAINERS PRIVATE LIMITED	Director	31/03/1995	31/03/1995	08/12/2008	Active	NO
2	U36991DD1998PTC002614	CELLO PENS AND STATIONERY PRIVATE LIMITED	Director	12/10/1998	12/10/1998	08/12/2008	Active	NO
3	U36991DD1999PTC002772	CELLO PENS PRIVATE LIMITED	Director	22/11/1999	22/11/1999	08/12/2008	Active	NO
4	U25209DD1991PTC001277	CELLO INTERNATIONAL PRIVATE LIMITED	Director	21/12/2002	21/12/2002	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Ghisulal D Rathod	9800
Pradeep G Rathod	30590
Pankaj G Rathod	20000
Pannalal J sharma	400
Jayantiilal Walchand Jain	40
Sangeeta P Rathod	23000
Babita P Rathod	40000
Pankaj G Rathod	400
Gaurav P Rathod	39680
Karishma P Rathod	8040
Ghisulal D Rathod (HUF)	20000
Sneha P Rathod	8040
Pradeep G Rathod (HUF)	10
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	0.02
Other top fifty shareholders	99.98
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of thermoware and Castrol.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Not Divulged

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
Citi Bank PCFC loan a/c (Secured against stock, book debt, entire fixed assets and personal guarantee of on director and one group company)	0.000	101.420
Total	0.000	101.420

Banking Relations :
Auditors :
Name :	Bharat P. Shah and Company Chartered Accountants
Address :	159/4 Matru Pitru Smruti, Jawahar Nagar Road No 02, Goregaon West, Mumbai – 400062, Maharashtra, India
Tel. No.:	91-22-28732862
Mobile No.:	91-9892166440
Fax No.:	91-22-28767488/28737904
PAN N Income-tax PAN of auditor or auditor's firm :	AAFPS4384J
Associates Company:	· Cello Stationery Products Private Limited (CSP) · Cello Pens and Stationery Private Limited (CPS) · Cello Tips and Pens Private Limited (CTP) · Cello Pens Private Limited (CPPL) · Cello Plastic Product Private Limited (CPP) · Cello Stationery Product Private Limited - Stationery Division (CSP-SD) · Cello Writing Instrument Containers Private Limited (CWIC) · Pentek Pens and Stationery Private Limited (PPS) · Cello Household Appliance Private Limited (CHH) · Wimplast Limited (WPL) · Health and Beauty Care Private Limited (HBC) · Cello Home Product (CHP) · Millenium Houseware (MIL) · Cello Houseware (CHW) · Cello industries (CI) · Cello Plastotech (CP) · Cello Writing Instrument (CWI) · Cello Paper Products (PAPER) · Cello Oral Hygiene Products (ORAL) · Cello Sales and Marketing (CSM) · Cello Sonal Construction (CSC) · Cello Heights (CH) · Cello North America (CNA)

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.100/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs. 20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.000	20.000	20.000
(b) Reserves & Surplus	145.916	210.759	203.434
(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)	165.916	230.759	223.434
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	2.236	2.439
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	2.236	2.439
(4) Current Liabilities
(a) Short term borrowings	0.000	101.420	0.000
(b) Trade payables	232.189	424.279	489.012
(c) Other current liabilities	29.430	32.567	27.288
(d) Short-term provisions	2.997	12.951	11.325
Total Current Liabilities (4)	264.616	571.217	527.625
TOTAL	430.532	804.212	753.498
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	22.138	20.357	23.560
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	30.443	0.000	0.000
(d) Long-term Loan and Advances	5.519	5.149	5.788
(e) Other Non-current assets	9.496	138.406	146.412
Total Non-Current Assets	67.596	163.912	175.760
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	12.811	29.594	16.349
(c) Trade receivables	237.347	355.658	429.958
(d) Cash and cash equivalents	-11.915	142.534	21.633
(e) Short-term loans and advances	124.693	112.514	109.798
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	362.936	640.300	577.738
TOTAL	430.532	804.212	753.498

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	641.031	1619.114	1746.701
	Other Income	22.363	100.945	143.027
	TOTAL (A)	663.394	1720.059	1889.728
Less	EXPENSES
	Purchases of Stock-in-Trade	479.029	1497.549
	Employees benefits expense	8.995	22.458
	Other expenses	268.959	183.012
	TOTAL (B)	756.983	1703.019
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	(93.589)	17.040
Less	FINANCIAL EXPENSES (D)	1.043	0.886
				NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(94.632)	16.154
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2.889	2.503
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(97.521)	13.651
Less	TAX (I)	(32.679)	6.326
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(64.842)	7.325	8.043
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	194.563	187.238	179.195
	Balance Carried to the B/S	129.721	194.563	187.238
	Earnings / (Loss) Per Share (Rs.)	-324.21	36.62	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(9.77)	0.43	0.43
Net Profit Margin (PBT/Sales)	(%)	(15.21)	0.84	NA
Return on Total Assets (PBT/Total Assets}	(%)	(24.37)	1.70	NA
Return on Investment (ROI) (PBT/Networth)		(0.59)	0.06	NA
Debt Equity Ratio (Total Debt /Networth)		0.00	0.44	NA
Current Ratio (Current Asset/Current Liability)		1.37	1.12	1.09

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	20.000	20.000	20.000
Reserves & Surplus	203.434	210.759	145.916
Net worth	223.434	230.759	165.916
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	101.420	0.000
Total borrowings	0.000	101.420	0.000
Debt/Equity ratio	0.000	0.440	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1746.701	1619.114	641.031
		(7.304)	(60.409)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1746.701	1619.114	641.031
Profit	8.043	7.325	(64.842)
	0.46%	0.45%	(10.12%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	No
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

OPERATIONS

During the year, the company has achieved revenue from operations of Rs. 641.030 Millions as compared to RS. 1619.114 Millions for the previous year.

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Factory Building

· Plant and Machinery

· Office Equipment

· Electrical Installations

· Vehicles

· Furniture and Fixtures

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.60.47
UK Pound	1	Rs.100.15
Euro	1	Rs.79.65

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		30

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.