MIRA INFORM REPORT

3decades

MIRA INFORM REPORT

Report No. :	509866
Report Date :	26.05.2018

IDENTIFICATION DETAILS

Name :	CITADEL INTELLIGENT SYSTEMS LIMITED [w.e.f. 18.12.2017]

Formerly Known As :	CITADEL INTELLIGENT SYSTEMS PRIVATE LIMITED [w.e.f. 21.09.2015] CITADEL HARDSOFT SOLUTIONS INDIA PRIVATE LIMITED

Registered Office :	Plot No.38-A1, Doddanekkundi Industrial Area, II Phase Mahadevapura Post, Bangalore – 560048, Karnataka
Mob. No.:	91-8 0-46874687

Country :	India

Financials (as on) :	31.03.2017

Date of Incorporation :	28.09.2007

Com. Reg. No.:	08-044005

Capital Investment / Paid-up Capital :	INR 37.152 Million

CIN No.: [Company Identification No.]	U72200KA2007PLC044005

IEC No.: [Import-Export Code No.]	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

GSTN : [Goods & Service Tax Registration No.]	29AADCC4023D2Z3

TIN No.:	Not Divulged

PAN No.: [Permanent Account No.]	AADCC4023D

Legal Form :	A Closely Held Public Limited Liability Company.

Line of Business :	Subject is engaged into: Back Office Services o Engineering Services o Supply Chain Services o Other Support Services Vendor Development and Product Sourcing The company mainly provides these services to companies under the Citadel Industries Group and also extends these services to other global customers within and outside India. Wholesale trade of Engineering Components. [Registered Activity]

No. of Employees :	Information declined by the management

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Maximum Credit Limit :	USD 10000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject was incorporated in the year 2007. It is a wholesale trader of Engineering Components. For the financial year 2017, the company has achieved 23.32% growth in its revenue as compared to the previous year revenue but has incurred operational loss. The moderate financial profile of the company is marked by negative reserve base. However, rating weakness is partially offset by subject’s debt free balance sheet profile. Payment seems to be slow but correct. In view of aforesaid, 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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 31-03-2018.

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 26.05.2018.

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.: 91-80-46874687)

LOCATIONS

Registered Office :	Plot No.38-A1, Doddanekkundi Industrial Area, II Phase Mahadevapura Post, Bangalore – 560048, Karnataka, India
Tel. No.:	91-80-46874687
Fax No.:	Not Available
E-Mail :	kkshetty@cintellisys.com pritu.hait@cintellisys.com

DIRECTORS

As on 31.03.2018

Name :

Mr. Chandrashekar Hosa Agrahara Govindarao

Designation :

Director

Address :

C3, 105, South City Apartments Arekere Mico Layout, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Appointment :

16.12.2015

DIN No.:

01790005

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U72900KA2007PLC044415	SASMOS HET TECHNOLOGIES LIMITED	21/06/2011	-
U74900KA2014PLC077312	FOKKER ELMO SASMOS INTERCONNECTION SYSTEMS LIMITED	18/11/2014	-
U72900KA2015PTC081174	GLODESI TECHNOLOGIES PRIVATE LIMITED	30/09/2016	-
U29248KA2015PTC081087	HANUKA TECHNOLOGY SOLUTIONS PRIVATE LIMITED	30/09/2016	-

Name :

Mr. Kishan Kumar Shetty

Designation :

Managing Director

Address :

Villa No 9, Prestige Langleigh, Phase 1 ECC Road, Whitefield, Bangalore – 560066, Karnataka, India

Date of Appointment :

17.03.2017

DIN No.:

06763829

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U74999KA2017PTC104008	AKAASH CONNECTIVITY SOLUTIONS PRIVATE LIMITED	20/06/2017	-
U32100KA2017FTC108001	AMERICA FUJIKURA INDIA PRIVATE LIMITED	20/11/2017	-

Name :

Mr. Tom Krieckaert

Designation :

Director

Address :

Koestraat 23, 5223ag S Hertogenbosch Hertogenbosch 5223 Nl

Date of Appointment :

15.07.2015

DIN No.:

07227450

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U72900KA2007PLC044415	SASMOS HET TECHNOLOGIES LIMITED	25/09/2017	-

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders	No. of Shares	% of Holding
Lumipol International BV, Netherlands	1486074	40.00
Hanuka Technology Solutions Private Limited	1486076	40.00
Kishan Kumar Shetty	743038	20.00

Total	3715188	100.00

Equity Share Break up (Percentage of Total Equity)

As on 28.07.2017

Category	Percentage
Promoter – (Individual/ Hindu Undivided Family – Indian)	20.00
Promoter - Bodies corporate	80.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged into:

Back Office Services

o Engineering Services

o Supply Chain Services

o Other Support Services

Vendor Development and Product Sourcing

The company mainly provides these services to companies under the Citadel Industries Group and also extends these services to other global customers within and outside India.

Wholesale trade of Engineering Components. [Registered Activity]

Products :

Item Code No.	Product Description
71100	Engineering Services and Technical Consultancy

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

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 :

Information declined by the management

Bankers :

Bank Name	Axis Bank Limited
Branch	Corporate Banking Branch, No 1, Second Floor, Express Building, Queens Road, Bangalore – 560001, Gujarat, India
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Auditors :
Name :	Mukunda Shiva and Associates Chartered Accountants
Address :	No 267, 1st Floor, 6th Cross, 1st Block Jayanagar, Bangalore – 560011, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAOFM7775J

Memberships :	Not Available

Collaborators :	Not Available

Controlled Entity :	Lumipol International BV, Netherland Hanuka Technology Solutions Private Limited Van Wijik and Boerma Firepacks

Enterprises under significant influence :	SASMOS HET Technology Private Limited Goldesi Technology Private Limited

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount

4500000	Equity Shares	INR 10/- each	INR 45.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

3715188	Equity Shares	INR 10/- each	INR 37.152 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	37.152	37.152	30.328
(b) Reserves & Surplus	(33.306)	(30.267)	(25.413)
(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)	3.846	6.885	4.915

(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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	0.000	0.000

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	24.611	0.706	3.640
(c) Other current liabilities	8.932	10.020	14.191
(d) Short-term provisions	0.000	0.104	0.000
Total Current Liabilities (4)	33.543	10.830	17.831

TOTAL	37.389	17.715	22.746

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.423	0.344	0.604
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.162	14.250	5.854
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5.585	14.594	6.458

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	18.100	0.000	0.000
(c) Trade receivables	11.453	0.140	15.956
(d) Cash and cash equivalents	0.182	2.123	0.308
(e) Short-term loans and advances	2.069	0.858	0.024
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	31.804	3.121	16.288

TOTAL	37.389	17.715	22.746

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	20.045	16.254	23.877
	Other Income	1.459	1.560	0.354
	TOTAL	21.504	17.814	24.231

Less	EXPENSES
	Cost of Materials Consumed	9.686	12.213	21.258
	Employees benefits expense	6.772	7.007	0.873
	Other expenses	7.731	3.225	6.465
	TOTAL	24.189	22.445	28.596

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(2.685)	(4.631)	(4.365)

Less	FINANCIAL EXPENSES	0.000	0.000	0.000

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(2.685)	(4.631)	(4.365)

Less	DEPRECIATION/ AMORTISATION	0.354	0.224	0.176

	PROFIT/ (LOSS) BEFORE TAX	(3.039)	(4.855)	(4.541)

Less	TAX	0.000	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX	(3.039)	(4.855)	(4.541)

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.816	12.642	21.280
	TOTAL EARNINGS	0.816	12.642	21.280

	IMPORTS
	Raw Materials	27.357	11.530	20.248
	TOTAL IMPORTS	27.357	11.530	20.248

	Earnings / (Loss) Per Share (INR)	(0.82)	(1.56)	(1.56)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	(5.170)	3.518	22.554

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	208.55	3.14	243.91

Account Receivables Turnover (Income / Sundry Debtors)	1.75	116.10	1.50

Average Payment Days (Sundry Creditors / Purchases * 365 Days)	927.42	21.10	62.50

Inventory Turnover (Operating Income / Inventories)	(0.15)	0.00	0.00

Asset Turnover (Operating Income / Net Fixed Assets)	(1.89)	(13.46)	(7.23)

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.90	0.61	0.78

Debt Equity Ratio (Total Liability / Networth)	0.00	0.00	0.00

Current Liabilities to Networth (Current Liabilities / Net Worth)	8.72	1.57	3.63

Fixed Assets to Networth (Net Fixed Assets / Networth)	0.37	0.05	0.12

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	(15.16)	(29.87)	(19.02)

Return on Total Assets ((PAT / Total Assets) * 100)	%	(8.13)	(27.41)	(19.96)

Return on Investment (ROI) ((PAT / Networth) * 100)	%	(79.02)	(70.52)	(92.39)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.95	0.29	0.91

Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.41	0.29	0.91

G-Score Ratio Financial (Networth / Total Assets)	0.10	0.39	0.22

G-Score Ratio Debt (Debts / Equity Capital)	0.00	0.00	0.00

G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.95	0.29	0.91

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	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	30.328	37.152	37.152
Reserves & Surplus	(25.413)	(30.267)	(33.306)
Net worth	4.915	6.885	3.846

long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	23.877	16.254	20.045
		(31.926)	23.323

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	23.877	16.254	20.045
Profit	(4.541)	(4.855)	(3.039)
	(19.02%)	(29.87%)	(15.16%)

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	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	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
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	Yes
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	Yes
31	External Agency Rating, if available	No
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

BUSINESS:

During the year, the total revenue has increased from INR 17.813 to INR 21.504 Million at a percentage of (20.71%). The other income has decreased from INR 1.560 Million to INR 1.459 Million

The company’s loss has decreased to (INR 3.039) from INR (4.855), in the previous year.

The board of directors is confident that the company will be able to achieved better performance in next financial year.

The company proposing to enter into manufacture of optical fibers during the year and is in the process of setting a manufacturing facility in Bangalore. The company is expecting that the products of the company will have good market in technology driven high growth rate segments like aerospace and telecommunication.

INDEX OF CHARGES:

Charges Registered
SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G51785491	100119168	Axis Bank Limited	03/08/2017	-	-	45000000.0	Corporate Banking Branch, No 1, second floorExpress Building, Queens Road,BangaloreKA560001IN
2	C17198623	10154626	ABN AMRO BANK NV	02/05/2009	-	14/08/2014	30000000.0	PRESTIGE TOWERS,No. 99 & 100, RESIDENCY ROADBANGALOREKA560025IN

FIXED ASSETS

Computer
Office Equipment
Leasehold improvement
Motor Vehicle
Production Tools

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 68.21
UK Pound	1	INR 91.43
Euro	1	INR 80.24

INFORMATION DETAILS

Information Gathered by :	SPR

Analysis Done by :	VAR

Report Prepared by :	JYO

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	YES
--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.