MIRA INFORM REPORT

Report Date :

30.03.2013

IDENTIFICATION DETAILS

Name :	VERITAS INDUSTRIES PRIVATE LIMITED (w.e.f. 19.10.2007)

Formerly Known As :	SIDDHANT INFRASTRUCTURE PRIVATE LIMITED

Registered Office :	No.101, 111, Runwal Heights, Opposite Niramal Life Style, L.B.S. Marg, Mulund (West), Mumbai – 400 080, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	13.03.2006

Com. Reg. No.:	11-160455

Capital Investment / Paid-up Capital :	Rs.0.100 million

CIN No.: [Company Identification No.]	U45200MH2006PTC160455

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Wires, Spring Wire, Spring Steel Wires, etc.

No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 82000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. There appears huge external borrowing recorded by the company which acts as a threat to the liquidity position of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Sidharath Rajendra Agarwal
Designation :	Director
Contact No.:	91-9820296666
Date :	29.03.2013

LOCATIONS

Registered Office :	No.101, 111, Runwal Heights, Opposite Niramal Life Style, L.B.S. Marg, Mulund (West), Mumbai – 400 080, Maharashtra, India
Tel. No.:	91-22-61563900
Mobile No.:	91-9920892277 (Mr. Rajendra) 91-9820296666 (Mr. Sidharath Rajendra Agarwal)
Fax No.:	91-22-25684711
E-Mail :	accounts@systematicltd.com
Website :	http://systematic.en.busytrade.com http://www.systematicltd.com
Area :	1000 sq ft
Location :	Owned

Factory :	Survey No.32, G.I.D.C., Sarigam, Valsad, Gujarat, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Sidharath Rajendra Agarwal
Designation :	Director
Address :	A/3, Surabhi, Model Town, B.R. Road, Mulund, Mumbai – 400 080, Maharashtra, India
Date of Birth/Age :	10.01.1978
Date of Appointment :	13.03.2006
DIN No.:	00515410

Name :	Mr. Dhruv Subhash Mittal
Designation :	Director
Address :	1201, Marathon Galaxy, L.B.S. Marg, Mulund (West) , Mumbai – 400 080, Maharashtra, India
Date of Birth/Age :	13.03.1988
Date of Appointment :	06.12.2007
DIN No.:	01788305

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders		No. of Shares
Sidharath Rajendra Agarwal		598000
Gunjan Subhash Mittal		108000
Shruti Rajendra Agarwal		144000
Total		850000

As on 29.09.2012

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Wires, Spring Wire, Spring Steel Wires, etc.

Products :	CO 2 MIG Wire Barbed Wire Binding Wire ACSR Core Wire Spring Wire Welded Mesh

Exports :
Products :	CO 2 MIG Wire Barbed Wire Binding Wire ACSR Core Wire Spring Wire Welded Mesh
Countries :	Thailand Sri Lanka Greece

Imports :
Products :	Raw Materials
Countries :	China Ukraine Europe

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

IDBI Bank Limited, C-7, G-Block (Opposite NSE), Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan from Banks (Secured by way of first charge land and building and hypothecation of plant and machinery. Further the above loans have been guaranteed by the directors. Repayment is in 6 quarterly installments of Rs.2.562 millions each.)	30.750	41.000
SHORT TERM BORROWINGS
Working Capital Facilities from Bank (Secured by hypothecation of present and future inventory, stock and book debts and by way of second charge in respect of other moveable in immovable properties of the Company. Working capital facility is repayable on demand. Further the above loans have been guaranteed by the directors.)	39.838	14.625
Total	70.588	55.625


Banking Relations :	--

Auditors :
Name :	Ashok V. Ladhani and Company Chartered Accountants
Address :	78/2, A Wing, Bhandup Industrial Estate, L.B.S. Marg, Bhandup (West), Mumbai – 400 078, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAPL4606P

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
850000	Equity Shares	Rs.10/- each	Rs.8.500 millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 million

Reconciliation of number of Ordinary Shares outstanding:

Equity shares	As at 31^st March, 2012
Equity shares	No. of Shares	Amount (Rs. in millions)
At the beginning of the year	10000	0.100
Add: Shares Issued	--	--
At the end of the year	10000	0.100

Shareholders holding more than 5% of the Ordinary Shares in the Company:

Equity shares	As at 31^st March, 2012
Equity shares	No. of Shares	Percentage of holding
Gunjan Subhash Mittal	3000	30%
Shruti Rajendra Agarwal	4000	40%
Sidharath Rajendra Agarwal	3000	30%
	10000	100%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money Pending Allotment		16.513	16.513	16.513
3] Reserves & Surplus		3.960	1.159	0.000
4] (Accumulated Losses)		0.000	0.000	(0.683)
NETWORTH		20.573	17.772	15.930
LOAN FUNDS
1] Secured Loans		70.588	55.625	57.566
2] Unsecured Loans		38.255	57.145	45.259
TOTAL BORROWING		108.843	112.770	102.825
DEFERRED TAX LIABILITIES		0.616	0.336	0.000

TOTAL		130.032	130.878	118.755

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		94.963	95.684	98.080
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.145	18.912	8.219
	Sundry Debtors	37.703	32.937	0.510
	Cash & Bank Balances	6.839	1.103	3.202
	Other Current Assets	1.378	1.837	12.826
	Loans & Advances	10.917	15.048	5.888
Total Current Assets		64.982	69.837	30.645
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.333	26.116	11.763
	Other Current Liabilities	17.546	8.222	0.000
	Provisions	0.034	0.305	0.503
Total Current Liabilities		29.913	34.643	12.266
Net Current Assets		35.069	35.194	18.379

MISCELLANEOUS EXPENSES		0.000	0.000	2.296

TOTAL		130.032	130.878	118.755

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	237.502	156.721	0.458
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA

Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	NA

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.683	14.293	(0.656)

Less	INTEREST (D)		5.840	5.357	0.005

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.843	8.936	(0.661)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.990	6.263	0.000

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		3.853	2.673	(0.661)

Less	TAX (H)		1.051	0.832	0.000

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		2.802	1.841	(0.661)

	Earnings/ (Loss) Per Share (Rs.)		280.20	184.10	(66.10)

Expected Sales (2012-2013): Rs.350.000 millions

The above information has been parted by Mr. Sidharath Rajendra Agarwal (Director).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	1.62	1.71	(144.32)

Return on Total Assets (PBT/Total Assets}	(%)	2.41	1.61	(0.51)

Return on Investment (ROI) (PBT/Networth)		0.19	0.15	(0.04)

Debt Equity Ratio (Total Debt/Networth)		5.29	6.35	6.45

Current Ratio (Current Asset/Current Liability)		2.17	2.02	2.50

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

12.333

26.116

11.763

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
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	No

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Loan from Others	38.255	57.145
Total	38.255	57.145

Bankers Charges Report as per Registry

Corporate identity number of the company	U45200MH2006PTC160455
Name of the company	VERITAS INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	111, Runwal Heights, L.B.S. Marg, Mulund (West), Mumbai – 400 080, Maharashtra, India E-Mail: accounts@systematicltd.com
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	IDBI Bank Limited, C-7, G-Block (Opposite NSE), Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India E-Mail: am.shinde@idbi.co.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation
Date of instrument Creating the charge	26.07.2012
Amount secured by the charge	Rs.50.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 10.50% p.a. Terms of Repayment: 50 equal monthly installments of Rs.0.980 million each and last installments of Rs.0.980 million after 9 months moratorium Margin: As per Agreement Extent and Operation of the charge: As per Agreement
Short particulars of the property charged	Movable plant and machinery, machinery spares, tools and accessories and movable both present and future whether installed or not and whether now lying loose.

FIXED ASSETS:

· Land

· Building

· Air Conditioner

· Furniture and Fixture

· Computers

· Plant and Machinery

· Control Panel

· Electrical Fitting

· Tools and Equipment

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 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Information Gathered by :	SVA

Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.