MIRA INFORM REPORT

Report No. :	326166
Report Date :	06.06.2015

IDENTIFICATION DETAILS

Name :	KARANI PAPERS
Registered Office :	Shop No. 2, 20/24, Mohammed Sakar Marg, Channa Road, Fort, Mumbai – 400001, Maharashtra
Tel. No.:	91-
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment :	1992
Capital Investment :	Not Divulged
IEC No.:	0394032772
TIN No.:	27080006403
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAAFK7154K
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Distributor, Importer and Stockist of Paper and Boards, Label Paper, Coated Paper, Printing Paper, etc.
No. of Employees :	12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established concern having satisfactory track record. Subject was established in 1992. Subject is a distributor, importer, stockiest of paper and boards, label paper, coated paper, printing paper. General financial position of the company seems to be fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The concern can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

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

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Laxmichand Virji Karani
Designation :	Partner
Contact No.:	91-9820070374
Date :	05.06.2015

LOCATIONS

Registered Office :	Shop No. 2, 20/24, Mohammed Sakar Marg, Channa Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22657232/ 22657232/ 22625552
Mobile No.:	91-9820070374 (Mr. Laxmichand Virji Karani)
Fax No.:	91-22-66348159
E-Mail :	karani@karanipapers.com
Website :	www.karanipapers.com
Location :	Owned
Locality :	Commercial
Warehouse :	Dedia Builders, Desoza Compound, Near Broadways Cinema, Puma Village, Bhiwandi, Maharashtra, India.

PARTNERS

Name :	Mr. Laxmichand Virji Karani
Designation :	Partner
Date of Birth/Age :	54 Years
Qualification :	B. Com
Voter ID :	HPK0211425
Name :	Ms. Foram Rahul Shah
Designation :	Partner
Date of Birth/Age :	30 Years
Qualification :	MBA
Voter ID :	IYV3046208

BUSINESS DETAILS

Line of Business :	Distributor, Importer and Stockist of Paper and Boards, Label Paper, Coated Paper, Printing Paper, etc.
Products/ Services :	· Paper and Boards · Label Paper · Coated Paper · Printing Paper
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :
Products :	· Paper and Boards · Label Paper · Coated Paper · Printing Paper
Countries :	· France · USA · UK · Germany · China · Austria · Finland · Indonesia
Terms :
Selling :	Cash and Credit (60 Days/ 90 Days)
Purchasing :	Cash and Credit (60 Days/ 90 Days)

GENERAL INFORMATION

Suppliers :

Reference:	Mulchand Lalaji and Company, Mumbai
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

End Users

Reference:	Dee Dee Label, Bombay
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

12 (Approximately)

Bankers :

Bank Name:	Abhudaya Cooperative Bank Limited
Branch:	Fort, Mumbai, Maharashtra, India
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit
Account Operation:	Not Divulged
Remarks: Not Divulged

· ICICI Bank Limited, Fort, Mumbai, Maharashtra, India

Facilities :

--

Banking Relations :	--
Auditors :
Name :	V.L. Nagda and Company Chartered Accountants
Address :	Fort, Mumbai, Maharashtra, India
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2013

PARTNERS CAPITAL ACCOUNT

LAXMICHAND KARANI’S CAPITAL ACOOUNT

Particulars	31.03.2013 Rs. In Million	Particulars	31.03.2013 Rs. In Million
Car Insurance	0.003	Opening Dr. Balance	6.965
Income Tax	0.359	Interest	0.847
Gas Expenses	0.001	Remuneration	2.697
Advance Tax	0.250	Share of Profit	1.678
Mediclaim	0.025
Doller Purchased	0.117
Share of Advance Tax	0.160
Share of Income Tax	0.127
Closing Dr. Balance	11.145
Total	12.187		12.187

FORAM RAHUL SHAH’S CAPITAL ACOOUNT

Particulars	31.03.2013 Rs. In Million	Particulars	31.03.2013 Rs. In Million
Share of Income Tax	0.031	Opening Dr. Balance	1.950
Share of Advance Tax	0.040	Interest	0.237
Advance Tax	0.040	Remuneration	0.674
Income Tax	0.050	Share of Profit	0.420
Closing Dr. Balance	3.120
	3.281		3.281

FINANCIAL DATA

[all figures are in Rupees Millions]

PARTICULARS	31.03.2015	31.03.2014
Sales Turnover (Approximately)	130.000	Not Divulged

Expected Sales (2015-2016) : Rs. 220.000 Million

The above information has been parted by Mr. Laxmichand Virji Karani (Partner).

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013
SHAREHOLDERS FUNDS
1] Partner’s Capital		14.265
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		14.265
LOAN FUNDS
1] Secured Loans		53.286
2] Unsecured Loans		0.000
TOTAL BORROWING		53.286
DEFERRED TAX LIABILITIES		0.000
TOTAL		67.551
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.530
Capital work-in-progress		0.000
INVESTMENT		0.195
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.613
	Sundry Debtors	51.484
	Cash & Bank Balances	0.070
	Other Current Assets	0.000
	Loans & Advances	0.850
Total Current Assets		100.017
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	22.539
	Other Current Liabilities	10.652
	Provisions	0.000
Total Current Liabilities		33.191
Net Current Assets		66.826
MISCELLANEOUS EXPENSES		0.000
TOTAL		67.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013
	SALES
		Income	226.824
		Other Income	1.101
		TOTAL	227.925
Less	EXPENSES
		Cost of Goods Sold	169.917
		Custom Duty	29.548
		Clearing and Forwarding Charges	4.516
		Freight/ Octroi	0.214
		Transport Charges	2.248
		Cutting Expenses	0.101
		Interest on Custom Duty	0.404
		Accounting Charges	0.060
		Advertisement Expenses	0.012
		Agency Charges	0.467
		Bank Charges	0.054
		Bad Debts	0.349
		Bank Interest	0.485
		Bonus and Leave Salary	0.175
		Conveyance Expenses	0.128
		Commission	0.000
		Commission on Purchase	0.067
		Commission on Sales	0.995
		Discount Allowed	0.011
		Discount	0.230
		Excise Consulting Charges	0.000
		Electricity Expenses	0.073
		Exchange Rate Diff.	0.000
		Goods Damage Loss	0.000
		General Expenses	0.295
		Godown Rent	1.097
		Hel Majuri	0.150
		Insurance Charges	0.265
		Interest on Late Payment of High	0.000
		Interest	6.771
		Internet Expenses	0.041
		Loading and Unloading A/c.	0.928
		License Fees	0.007
		Life Insurance A/c.	0.143
		Meeting Fee	0.007
		Membership Fees	0.004
		Postage and Stationery	0.017
		Professional Fees	0.107
		Petrol Expenses	0.106
		Profession Tax	0.021
		Printing and Stationary Expenses	0.034
		Refreshment Expenses	0.072
		Salary	1.026
		Software Charges	0.005
		Shop Rent	0.030
		Surveyours Fees	0.000
		Telephone Expenses	0.087
		Miscellaneous	0.000
		TOTAL	221.267
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		6.658
Less/ Add	DEPRECIATION/ AMORTISATION		0.105
	NET PROFIT		6.553

KEY RATIOS

PARTICULARS		31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.89
Return on Total Assets (PBT/Total Assets}	(%)	6.52
Return on Investment (ROI) (PBT/Networth)		0.44
Debt Equity Ratio (Total Liability/Networth)		3.74
Current Ratio (Current Asset/Current Liability)		3.01

LOCAL AGENCY FURTHER INFORMATION

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

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. 63.90
UK Pound	1	Rs. 97.98
Euro	1	Rs. 71.82

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	SAN
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.