MIRA INFORM REPORT

Report No. :	499808
Report Date :	27.03.2018

IDENTIFICATION DETAILS

Name :	VELS INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES (VELS UNIVERSITY)
Registered Office :	Velan Nagar, P.V. Vaithiyalingam Road, Pallavaram, Chennai - 600117, Tamilnadu
Tel. No.:	91-44-22662500 / 2501 / 2502 / 2503
Country :	India
Financials (as on) :	31.03.2016
Year of Establishment :	1992
Capital Fund :	INR 354.453 Million
IEC No.: [Import-Export Code No.]	Not Divulged
TIN No.:	Not Divulged
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
PAN No.: [Permanent Account No.]	Not Divulged
Legal Form :	Education Institute
Line of Business :	Providing Education Services (From Indirect Sources)
No. of Employees :	Not Divulged

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 2600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Vels Institute of Science, Technology and Advanced Studies (VISTAS) is an institute of higher education located in Pallavaram, Chennai, Tamilnadu, India. It was established in 1992 by Mr. Ishari K Ganesh who has extensive experience of 20 years in the education sector. He is also the secretary of the consortium of colleges affiliated to the MGR Medical University. The institute offers courses in commerce, computing science, management, pharmaceutical sciences, physiotherapy, hotel and catering, maritime studies, engineering, life sciences, pure sciences, visual communications, languages, dentistry, and nursing. The institute possesses an acceptable financial profile marked by healthy net worth along with good asset base Rating also takes into consideration extensive industry experience of Vel's group promoter in the educational services segment. However, the rating strength is partially offset by institute exposure to risks related to intense competition and any adverse impact of regulatory changes in the education sector. Payments terms are seems to be regular and as per commitments. The institute can be considered for business dealings at usual trade terms and condition

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BB
Rating Explanation	Moderate risk of default
Date	25.10.2017

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 27.03.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED

Management non cooperative (Tel No.: 91-44-22662500/2501)

LOCATIONS

Registered Office :	Velan Nagar, P.V. Vaithiyalingam Road, Pallavaram, Chennai - 600117, Tamilnadu, India
Tel. No.:	91-44-22662500 / 2501 / 2502 / 2503
Fax No.:	91-44-22662513
E-Mail :	vistas@velsuniv.org
Website :	http://www.velsuniv.ac.in
Administration Office :	No.521/2, Anna Salai (Opposite G.R. Complex)  Nandanam  Chennai - 600 035, Tamilnadu, India
Tel. No.:	91-44-24315541
Fax No.:	91-44-24315542
E-Mail :	admission@velsuniv.org

MANAGEMENT

Name :	Dr. Ishari K Ganesh
Designation :	Founder Chancellor
Qualification :	M.Com, MBA, B.L, (M.L), Ph. D, a visionary and an eminent educationist
Name :	Dr. A. Jothi Murugan
Designation :	Vice - President (Planning & Development)
Name :	Dr. P. Swaminathan
Designation :	Vice - Chancellor - I/c
Name :	Dr. Arthi K. Ganesh
Designation :	Pro-Chancellor (Academics)
Name :	Dr. A.R. Veeramani
Designation :	Registrar
Name :	Dr. S. Venkataraman
Designation :	Controller of Examinations

BUSINESS DETAILS

Line of Business :	Providing Education Services (From Indirect Sources)
Products/ Services :	Education Services
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

Not Divulged

Bankers :

Banker Name :	The Cosmos Co-operative Bank Limited
Branch :	Not Divulged
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

· Axis Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loan	31.03.2016 (INR in Million)	31.03.2015 (INR in Million)
Cosmos Loan Account	215.212	279.094
Cosmos Bank OD Account No. 10170	103.821	99.393
Axis Bank Car Loan	2.165	2.671
Sundaram Finance Bus loan	2.088	3.744
ICICI Car Loans	0.050	0.457
Loan against FD -BOB	58.453	57.476
Cosmos loan against FD	95.003	93.163
Total	476.792	535.998

Auditors :
Name :	Vairavanathan and Company Chartered Accountants
Address :	Armenian Street, Parrys, Chennai – 600001, Tamilnadu, India
Membership No.:	25682
Collaborators :	Not Available
Membership :	Not Available
Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 31.03.2016

CAPITAL FUND	Amount (INR In million)
Balance as on 01.04.2015	351.453
Corpus Donation Received During the Year	3.000
Total	354.453

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2016	31.03.2015	31.03.2014
EQUITY AND LIABILITIES
1] Capital Fund		354.453	351.453	351.453
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
5] Revenue Fund		546.789	450.734	386.188
NETWORTH		901.242	802.187	737.641
LOAN FUNDS
1] Secured Loans		476.792	535.998	546.963
2] Unsecured Loans		299.456	338.436	2.101
TOTAL BORROWING		776.248	874.434	549.064
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1677.490	1676.621	1286.705
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1015.467	1019.733	1017.185
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	0.000	0.000	0.000
	Sundry Debtors	0.082	0.046	2.522
	Cash & Bank Balances	20.309	6.755	21.570
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	747.135	599.150	393.063
Total Current Assets		767.526	605.951	417.155
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.035	0.003	4.340
	Other Current Liabilities and Provisions	117.188	24.617	272.387
Total Current Liabilities		119.223	24.620	276.727
Net Current Assets		648.303	581.331	140.428
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Branch and Divisions		13.720	75.557	129.092
TOTAL		1677.490	1676.621	1286.705

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2016	31.03.2015	31.03.2014
	SALES
	Direct Income	644.762	588.848	554.079
	Indirect Income	61.322	29.016	52.156
	TOTAL	706.084	617.864	606.235
Less	EXPENSES
	Administrative and Other Expenses	465.793	410.869	404.921
	TOTAL	465.793	410.869	404.921
	PROFIT/ (LOSS) BEFORE INTEREST, DEPRECIATION AND AMORTISATION	240.291	206.995	201.314
Less	INTEREST/ FINANCE CHARGES	74.023	68.472	67.273
	PROFIT / (LOSS) BEFORE, DEPRECIATION AND AMORTISATION	166.268	138.523	134.041
Less/ Add	DEPRECIATION/ AMORTISATION	70.213	73.977	80.904
	EXCESS OF INCOME OVER EXPENSES CARRIED TO BALANCE SHEET	96.055	64.546	53.137

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Average Collection Days (Sundry Debtors / Income * 365 Days)	0.04	0.03	1.52
Account Receivables Turnover (Income / Sundry Debtors)	8610.78	13431.83	240.38
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	0.00	0.00	0.00
Inventory Turnover (Operating Income / Inventories)	0.00	0.00	0.00
Asset Turnover (Operating Income / Net Fixed Assets)	0.24	0.20	0.20

LEVERAGE RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.50	0.53	0.53
Debt Equity Ratio (Total Liability / Networth)	0.86	1.09	0.74
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.46	0.45	0.38
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.13	1.27	1.38
Interest Coverage Ratio (PBIT / Financial Charges)	3.25	3.02	2.99

PROFITABILITY RATIOS

PARTICULARS		31.03.2016	31.03.2015	31.03.2014
Net Profit Margin ((PAT / Sales) * 100)	%	13.60	10.45	8.77
Return on Total Assets ((PAT / Total Assets) * 100)	%	5.35	3.79	3.40
Return on Investment (ROI) ((PAT / Networth) * 100)	%	10.66	8.05	7.20

SOLVENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Current Ratio (Current Assets / Current Liabilities)	1.87	1.88	1.96
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.87	1.88	1.96
G-Score Ratio Financial (Networth / Total Assets)	0.50	0.47	0.47
G-Score Ratio Debt (Debts / Equity Capital)	2.19	2.49	1.56
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.87	1.88	1.96

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Capital Fund	351.453	351.453	354.453
Reserves & Surplus	0.000	0.000	0.000
Revenue Fund	386.188	450.734	546.789
Net worth	737.641	802.187	901.242
Secured Loans	546.963	535.998	476.792
Unsecured Loans	2.101	338.436	299.456
Total borrowings	549.064	874.434	776.248
Debt/Equity ratio	0.744	1.090	0.861

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Total Income	606.235	617.864	706.084
		1.918	14.278

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Total Income	606.235	617.864	706.084
Excess of Income Over Expenses Carried To Balance Sheet	53.137	64.546	96.055
	8.77%	10.45%	13.60%

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	No
8	Designation of contact person	No
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	No
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
21	Banking facility details	No
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	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOANS

PARTICULAR	31.03.2016 (INR in Million)	31.03.2015 (INR in Million)
Vetri Educational Trust	25.965	41.166
Vaels Educational Trust	123.491	108.251
Vinayaka Educational Trust	0.000	2.019
Vel Ganesh Educational Trust	0.000	37.000
Sri Ramachandra Educational and Health Trust	150.000	150.000
Total	299.456	338.436

WEBSITE DETAILS

ABOUT TRUST

VAEL’S EDUCATIONAL TRUST was established in 1992 with the aim of transforming an individual into a complete man with character and ability committed to national service and development. The trust was founded by Dr. Ishari K Ganesh, M.Com, MBA, B.L, (M.L), Ph. D, a visionary and an eminent educationist, in fond memory of his father Shri.Isari Velan, a former minister in the popular Government of Dr. MGR. Vael’s Educational Trust has always served to take education to the thresholds of first generation learners and weaker sections of the society.

THE UNIVERSITY

The University status was conferred to Vel's Group of Institutions, by the Ministry of Human Resource Development, Govt. of India. As a logical consequence of this, the founder Chairman Dr. Ishari K.Ganesh has become the President/Chancellor and now he leads the implementation of strategic plan that aims to shape the institute's future growth. He visualizes an University which will be globally more competitive and internationally recognized institution.

The University is governed by Governing Board or otherwise known as Board of Management and this is the highest statutory body of this University. The members of this Board is drawn from various agencies. The Board has members representing University Grants Commission, Government of India, Industry, Eminent persons outside Academia, Senior Academic persons and senior officials of the University. The President/Chancellor is the Chairman of the Board and the board meets periodically to frame policies and programmes for the growth and improvement of VISTAS.

AN INSTITUTE OF POTENTIAL EXCELLENCE

VISTAS presents a cosmopolitan culture. Students from a wide variety of social, cultural and geographical backgrounds live and study together at VISTAS. The students are shaped and fine-tuned as per the requirements of global industries. The environment-friendly Green campus is equipped with all facilities, where every need of both student and faculty have been provided for.

To promote a student-friendly learning environment, the University is following the semester pattern and choice based credit system for all its academic programme both at the under-graduate and post graduate levels. The system is expected to promote multipoint entry and flexibility to suit the needs of individual learners. The programmes offered are approved by AICTE and other statutory bodies such as Pharmacy Council of India, Indian Association of Physiotherapists and Director General of Shipping.

The pride of VISTAS is its' Computing Centre, sophisticated labs, well-furnished class rooms along with Wi-Fi internet facilities. The strength of the University can be attributed to the commitment and determination of the President/Chancellor and his team of distinguished educators and dedicated students.

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	INR
US Dollar	1	INR 64.91
UK Pound	1	INR 91.86
Euro	1	INR 80.26

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	DIV
Report Prepared by :	JYTK

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.