MIRA INFORM REPORT

Report No. :	352459
Report Date :	01.12.2015

IDENTIFICATION DETAILS

Name :	VERANDRA ENGINEERING ENTERPRENEURS
Registered Office :	A-19/A, Ghatkoper Industrial Estate, L B Shastri Marg, Ghatkoper (West) Mumbai – 400086, Maharashtra
Tel. No.:	91-22-25007401 / 2
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1978
Capital Investment / Paid-up Capital :	Rs.16.158 Million (As on 31.03.2014)
IEC No.:	Not Applicable (As claimed by company management that company does not export and import)
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer of M. S. Fabrication Products. (Confirmed by management)
No. of Employees :	48 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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 a proprietorship concern established in the year 1978. It is having satisfactory track. As per the available financials of the year 2015, the concern has reported almost stable revenue base over previous year along with fair profit margin. Further, it has reported sound capital base with comfortable debt level in the under consideration. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of long track record of business operations, the concern can be considered for business dealings with 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

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Ravi Bakshi
Designation :	Chief Executive Officer
Contact No.:	91-9321953043
Date :	30.11.2015

LOCATIONS

Registered Office / Factory :	A-19/A, Ghatkoper Industrial Estate, L B Shastri Marg, Ghatkoper (West) Mumbai – 400086, Maharashtra, India
Tel. No.:	91-22-25007401 / 2
Mobile No.:	91-9321953043 (Mr. Ravi Bakshi)
Fax No.:	91-22-25007401 / 2
E-Mail :	verandraengineering@hotmail.com
Area :	4000 Sq. Ft.
Location :	Owned
Locality :	Industrial

SOLE PROPRIETOR

Name :	Mr. Verandra Bakshi
Designation :	Proprietor

KEY EXECUTIVES

Name :	Mr. Ravi Bakshi
Designation :	Chief Executive Officer

BUSINESS DETAILS

Line of Business :	Manufacturer of M. S. Fabrication Products. (Confirmed by management)
Products :	M. S. Fabrication Products
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Top International, Ghatkopar, Mumbai, Maharashtra, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers, Retailers and Manufacturer

Reference :	Crompton Greaves Limited, Mumbai, Maharashtra, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

48 (Approximately)

Bankers :

Banker Name	Union Bank of India
Branch Address	Vikhroli, 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 Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• N.K.G.S.B. Bank, Mulund (West), Mumbai, Maharashtra, India

Auditors :
Name :	Haren Parikh and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Membership No.:	030009
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern (As confirmed by management) :	N. V. Engineering Works Tapasya Engineering

CAPITAL STRUCTURE

As on 31.03.2014

Capital Account :	Rs. In Million
Verandra P. Bakshi	16.158
Total	16.158

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2015
Sales Turnover (Approximately)	100.600

Expected Sales (2015-16): Rs.120.000 Million

The above information has been parted by Mr. Ravi Bakshi (Chief Executive Officer).

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Proprietor’s Capital		16.158	20.227
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		16.158	20.227
LOAN FUNDS
1] Secured Loans		10.000	0.000
2] Unsecured Loans		3.050	5.319
TOTAL BORROWING		13.050	5.319
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		29.208	25.546
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.477	18.941
Capital work-in-progress		0.000	0.000
INVESTMENT		0.200	0.100
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.914	8.795
	Sundry Debtors	7.302	8.615
	Cash & Bank Balances	3.916	1.624
	Other Current Assets	0.786	0.634
	Loans & Advances	8.753	11.386
Total Current Assets		29.671	31.054
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.140	24.549
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		19.140	24.549
Net Current Assets		10.531	6.505
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		29.208	25.546

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	87.681	88.544
	Other Income	0.000	0.005
	TOTAL	87.681	88.549
Less	EXPENSES
	Cost of Goods Sold	64.645	64.886
	Electricity Charges	0.717	0.731
	Excise Duty	6.661	4.361
	Factory Rent	1.012	0.989
	Wages	3.626	3.336
	Testing Expenses	0.081	0.033
	Audit Fees	0.037	0.034
	Advertisement Expenses	0.005	0.005
	Commercial Gas Expenses	0.975	0.953
	Computer Expenses	0.047	0.032
	Conveyance	0.170	0.216
	Discount Allowed	0.306	0.094
	Diwali Expenses	0.005	0.060
	ESIC Employer Contribution	0.168	0.158
	Telephone Charges	0.214	0.156
	Transport Expenses	1.884	2.254
	Other Expenses	4.990	8.027
	TOTAL	85.543	86.325
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	2.138	2.224
Less/ Add	DEPRECIATION/ AMORTISATION	0.607	0.691
	NET PROFIT	1.531	1.533

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	1.75	1.73
Return on Total Assets (PBT/Total Assets}	(%)	3.18	3.07
Return on Investment (ROI) (PBT/Networth)		0.09	0.08
Debt Equity Ratio (Total Debt/Networth)		0.81	0.26
Current Ratio (Current Asset/Current Liability)		1.35	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	20.227	16.158
Reserves & Surplus	0.000	0.000
Net worth	20.227	16.158
Secured Loans	0.000	10.000
Unsecured Loans	5.319	3.050
Total borrowings	5.319	13.050
Debt/Equity ratio	0.263	0.808

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	88.544	87.681
		(0.975)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	88.544	87.681
Profit	1.533	1.531
	1.73%	1.75%

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	Yes
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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	Yes
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	Yes
29	Profitability for last two years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
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 records 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.66.81
UK Pound	1	Rs.100.36
Euro	1	Rs.70.68

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KIN
Report Prepared by :	PNM

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	6
-- 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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.