VERITAS

SHYAM KUMAR MAHATO

REG NO. -2022BBAU07ASB066
• Veritas (India) Limited (VIL) is focused on
International Trade & Distribution of Chemicals -
Petrochemicals / Polymers / Paper & Paper
INTRODUCTI
Boards / Rubber / Heavy Distillates. A brief
perspective hereunder will provide a better
understanding of our business model.
ON
• VIL was incorporated on 21st March 1985 and is
listed on the Bombay Stock Exchange. The
OVERVIEW OF COMPANY
company has expanded globally reducing its
dependence on a particular region. The company
has established overseas subsidiaries and
offices.
• Our unique and distinct models of International
Trade and Distribution hubs in India, and U.A.E
affords us to serve our partners in cross
country/continent trade across our Business
Verticals duly integrated with the various
Industry Verticals.
• This distinct model not only mitigates risk but
also creates opportunities to capitalise on 2
products, volumes and volatility.
 Click icon to add picture

Product And
Services
.
Click icon to add picture Click icon to add picture

3
BUSINESS MODEL
1. Trading and Distribution
• Chemicals & Polymers: Veritas India Ltd imports and distributes chemicals and polymers, which are essential raw
materials for various industries, including plastics, pharmaceuticals, and agriculture.
• Paper & Metals: The company is also involved in the trading of paper products and metals. It sources these materials
from global suppliers and sells them to industries in India.
2. Logistics and Supply Chain Management
• Global Sourcing: The company leverages its international networks to source products from various countries. It
ensures a steady supply of high-quality raw materials and industrial products.
• Supply Chain Efficiency: Veritas India Ltd focuses on efficient supply chain management to maintain cost-effectiveness
and ensure timely delivery of products.
3. Strategic Partnerships
• Vendor Relationships: The company maintains strong relationships with international suppliers, enabling it to offer a
diverse range of products at competitive prices.
• Customer Base: Veritas India Ltd caters to a wide range of industries in India, providing customized solutions to meet
the specific needs of its customers

4
Contd.
4. Revenue Streams
• Sales of Imported Goods: The primary revenue stream for Veritas India Ltd is the sale of imported chemicals, polymers,
metals, and paper products.
• Value-Added Services: The company may also provide value-added services, such as technical support and logistics
services, which can generate additional revenue.
5. Market Position
• Diversified Product Portfolio: Veritas India Ltd’s diversified product portfolio helps it mitigate risks associated with
dependence on any single product or market segment.
• Global Presence: By sourcing products globally, the company reduces the risk of supply chain disruptions and takes
advantage of global market opportunities.
6. Sustainability and Compliance
• Regulatory Compliance: The company adheres to environmental regulations and industry standards, ensuring its
operations are sustainable and compliant with legal requirements.
• Sustainability Initiatives: Veritas India Ltd may engage in sustainability initiatives to enhance its reputation and reduce
its environmental impact.

5
The Problem

Market Regulatory Technological Talent Retention Financial

Competition Compliance Disruption Management

6
 Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

12mths 12 mths 12 mths 12 mths 12 mths

INCOME

Revenue From Operations [Gross] 245.32 227.93 353.90 422.85 542.70

Revenue From Operations [Net] 245.32 227.93 353.90 422.85 542.70

Total OperatingRevenues 245.32 227.93 353.90 422.85 542.70

Other Income 2.27 6.75 2.56 8.41 6.93

Total Revenue

EXPENSES
247.59 234.69 356.45 431.27 549.63
INCOME
Purchase Of Stock-In Trade 231.61 180.67 420.71 407.65 406.44 STATEMENT
Changes In Inventories Of FG, WIP And Stock-
2.93 34.96 -78.47 -0.21 120.55
In Trade

Employee Benefit Expenses 2.89 3.79 2.31 1.67 1.92

Finance Costs 2.38 0.05 0.28 0.25 0.34

Depreciation And Amortisation Expenses 0.33 0.30 0.32 0.32 0.47

Other Expenses 2.65 10.23 4.01 13.35 11.28

Total Expenses 242.79 230.01 349.16 423.03 541.00

 Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

12mths 12mths 12mths 12mths 12mths

Profit/Loss Before Exceptional, Extra

Ordinary Items And Tax 4.81 4.68 7.29 8.24 8.62

Profit/Loss Before Tax 4.81 4.68 7.29 8.24 8.62

Tax Expenses-Continued Operations

Current Tax 1.03 0.79 1.36 1.89 2.14

Less: MATCredit Entitlement 0.00 0.00 0.00 0.80 0.75

Deferred Tax 0.00 -0.08 -0.27 0.37 -1.50

Tax For Earlier Years 0.00 0.00 0.00 0.00 0.25

Total Tax Expenses 1.03 0.71 1.09 1.46 0.14

Profit/Loss After Tax And Before Extra

3.77 3.97 6.20 6.78 8.48
Ordinary Items

Profit/Loss From ContinuingOperations 3.77 3.97 6.20 6.78 8.48

Profit/Loss For The Period 3.77

Mar 24
3.97

Mar 23

12mths 12 mths
6.20

Mar 22

12 mths
6.78

Mar 21

12 mths
8.48

Mar 20

12 mths
CONTD.
OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 1.41 1.48 2.31 2.53 3.16

Diluted EPS (Rs.) 1.41 1.48 2.31 2.53 3.16

VALUE OF IMPORTED AND INDIGENIOUS

RAW MATERIALS

STORES, SPARES AND LOOSE TOOLS

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 0.00 0.13 0.13 0.13 0.13

Equity Dividend Rate (%) 5.00 5.00 5.00 5.00 5.00

SUMMARY OF PROFIT AND LOSS ACCOUNT (IN RS. CR.)
FOR THE FINANCIAL YEARS ENDING IN MARCH:

Year Mar-24 Mar-23 Mar-22 Mar-21 Mar-20

Revenue from
245.32 227.93 353.90 422.85 542.70
Operations (Net)
Other Income 2.27 6.75 2.56 8.41 6.93
Total Revenue 247.59 234.69 356.45 431.27 549.63
Total Expenses 242.79 230.01 349.16 423.03 541.00
Profit Before Tax
4.81 4.68 7.29 8.24 8.62
(PBT)

Profit After Tax

3.77 3.97 6.20 6.78 8.48
(PAT)
Basic EPS (Rs.) 1.41 1.48 2.31 2.53 3.16
Key Financial Metrics and Formulas
1) Gross Profit:
Gross Profit=Total Revenue−Cost of Goods Sold (COGS)
2) Operating Profit (EBIT):
Operating Profit=Gross Profit−Operating Expenses
3) Profit Before Tax (PBT):
PBT=Operating Profit−Finance Costs
4) Profit After Tax (PAT):
PAT=PBT−Tax Expenses
5) Earnings Per Share (EPS):
EPS=PAT/Total Number of Shares Outstanding
Analysis observations
• Revenue Trends: The company's revenue from operations has declined from Rs. 542.70
Cr in Mar-20 to Rs. 245.32 Cr in Mar-24.
• Profitability: Despite the declining revenue, the company managed to maintain a
steady profit before tax, with PBT around Rs. 4.81 Cr in Mar-24.
• Expenses Management: The company reduced its total expenses over the years,
contributing to its ability to maintain profitability despite lower revenue.
• Earnings Per Share (EPS): EPS has shown a declining trend, reflecting the reduction in
profit after tax.
 Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

12mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 2.68 2.68 2.68 2.68 2.68

Total Share Capital 2.68 2.68 2.68 2.68 2.68

Reserves and Surplus 189.71 186.10 182.22 176.28 170.33

BALANCE
Total Reserves and Surplus 189.71 186.10 182.22 176.28 170.33

Total Shareholders Funds 192.40 188.78 184.90 178.96 173.01

NON-CURRENT LIABILITIES

Other LongTerm Liabilities 258.97 226.12 123.80 212.85 6.12

SHEET
LongTerm Provisions 0.20 0.17 0.16 0.09 0.11

Total Non-Current Liabilities 259.17 226.28 123.95 212.93 6.23

CURRENT LIABILITIES

Short Term Borrowings 11.77 0.00 0.00 0.00 0.00

Trade Payables 34.31 74.16 235.17 156.75 344.81

Other Current Liabilities 4.21 4.61 3.53 4.49 3.10

Short Term Provisions 1.16 1.16 1.48 0.79 0.01

Total Current Liabilities 51.44 79.93 240.18 162.04 347.92

Total Capital And Liabilities 503.01 494.99 549.03 553.93 527.16

ASSETS

NON-CURRENT ASSETS

Tangible Assets 1.82 2.89 3.00 3.30 3.60

Fixed Assets 1.82 2.89 3.00 3.30 3.60

Non-Current Investments 387.91 386.99 374.32 328.35 302.54

Deferred Tax Assets [Net] 0.34 0.46 0.38 0.11 0.48

Other Non-Current Assets 34.08 0.00 0.03 0.40 0.76

Total Non-Current Assets 424.14 390.34 377.73 332.16 307.38

CURRENT ASSETS

CONTD.
Inventories 40.94 43.87 78.83 0.37 0.16

Trade Receivables 13.24 43.28 77.35 193.02 182.22

Cash And Cash Equivalents 1.32 0.85 0.60 0.80 0.88

Short Term Loans And Advances 21.61 15.52 13.49 27.43 36.26

OtherCurrentAssets 1.76 1.13 1.03 0.16 0.25

Total Current Assets 78.87 104.65 171.31 221.77 219.78

Total Assets 503.01 494.99 549.03 553.93 527.16

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 0.00 450.99 419.50 388.52 391.74

CIF VALUE OF IMPORTS

EXPENDITURE IN FOREIGN EXCHANGE

REMITTANCES IN

FOREIGN CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign Currency - - - - -

EARNINGS IN FOREIGN EXC.

FOB Value Of Goods - - - - -

Other Earnings - - - - -

BONUS DETAILS

Bonus Equity Share Capital - - - - -

CONTD.
NON-CURRENT INVESTMENTS

Non-Current Investments Quoted Market

- - - - -
Value

Non-Current Investments Unquoted Book

- 386.99 372.94 327.83 301.99
Value

CURRENT INVESTMENTS

Current Investments Quoted Market Value - - - - -

Current Investments Unquoted Book Value - - - - -

BALANCE SHEET ANALYSIS OF VERITAS INDIA PVT LTD (MAR 2020 - MAR 2024)

1. EQUITY AND LIABILITIES

•SHAREHOLDER'S FUNDS:
• Equity Share Capital: Stable at ₹2.68 Cr across all years.
• Reserves and Surplus: Gradual increase from ₹170.33 Cr (Mar 2020) to ₹189.71 Cr (Mar 2024).
• Total Shareholders' Funds: Increased from ₹173.01 Cr (Mar 2020) to ₹192.40 Cr (Mar 2024).

•NON-CURRENT LIABILITIES:
• Other Long-Term Liabilities: Fluctuated significantly, from ₹6.12 Cr (Mar 2020) to ₹258.97 Cr (Mar 2024).
• Total Non-Current Liabilities: Notable increase to ₹259.17 Cr (Mar 2024) from ₹6.23 Cr (Mar 2020).

•CURRENT LIABILITIES:
• Trade Payables: Volatile, peaking at ₹344.81 Cr (Mar 2020) but reduced to ₹34.31 Cr (Mar 2024).
• Total Current Liabilities: Decreased from ₹347.92 Cr (Mar 2020) to ₹51.44 Cr (Mar 2024).

•TOTAL CAPITAL AND LIABILITIES: DESPITE FLUCTUATIONS, TOTAL LIABILITIES HOVERED AROUND ₹500 CR, ENDING AT
₹503.01 CR (MAR 2024).
2. ASSETS

•NON-CURRENT ASSETS:
• Tangible Assets: Gradual decline from ₹3.60 Cr (Mar 2020) to ₹1.82 Cr (Mar 2024).
• Non-Current Investments: Increased steadily from ₹302.54 Cr (Mar 2020) to ₹387.91 Cr (Mar 2024).
• Total Non-Current Assets: Grew from ₹307.38 Cr (Mar 2020) to ₹424.14 Cr (Mar 2024).

•CURRENT ASSETS:
• Inventories: Significant fluctuations, peaking at ₹78.83 Cr (Mar 2022) before reducing to ₹40.94 Cr (Mar 2024).
• Trade Receivables: Decreased from ₹182.22 Cr (Mar 2020) to ₹13.24 Cr (Mar 2024).
• Total Current Assets: Declined from ₹219.78 Cr (Mar 2020) to ₹78.87 Cr (Mar 2024).

•TOTAL ASSETS: STABILIZED AROUND ₹500 CR, FINISHING AT ₹503.01 CR (MAR 2024).

3. ADDITIONAL INFORMATION
•CONTINGENT LIABILITIES: PEAKED AT ₹450.99 CR (MAR 2023) BUT RECORDED AS ZERO IN MAR 2024.
•NON-CURRENT INVESTMENTS: UNQUOTED BOOK VALUE INCREASED FROM ₹301.99 CR (MAR 2020) TO ₹386.99 CR (MAR 2023).
KEY OBSERVATIONS:
•LIQUIDITY CONCERNS: THE SHARP DECREASE IN TRADE RECEIVABLES AND CURRENT LIABILITIES INDICATES POTENTIAL CASH FLOW
ADJUSTMENTS.
•INCREASING LONG-TERM LIABILITIES: SIGNIFICANT GROWTH IN LONG-TERM LIABILITIES COULD INDICATE FUTURE REPAYMENT
CHALLENGES.
•STEADY SHAREHOLDER'S EQUITY: REFLECTS A STABLE FINANCIAL FOUNDATION, WITH A GRADUAL INCREASE IN RESERVES AND
SURPLUS.
•ASSET ALLOCATION SHIFT: A SHIFT TOWARDS NON-CURRENT INVESTMENTS AND AWAY FROM CURRENT ASSETS, WHICH COULD
AFFECT SHORT-TERM LIQUIDITY BUT MIGHT REFLECT A LONG-TERM GROWTH STRATEGY
 Mar'24 Mar '23 Mar '22 Mar '21 Mar '20

Investment Valuation Ratios

Face Value 1.00 1.00 1.00 1.00 1.00

Dividend Per Share 0.05 0.05 0.05 0.05 0.05

OperatingProfit Per Share (Rs) 1.96 -0.64 1.99 0.15 0.94

Net OperatingProfit Per Share (Rs) 91.50 85.02 132.00 157.72 202.42

Free Reserves Per Share (Rs) -- -- -- -- --

Bonus in Equity Capital -- -- -- -- --

FINANCIAL
Profitability Ratios

OperatingProfit Margin(%) 2.13 -0.75 1.50 0.09 0.46

RATIO
Profit Before Interest And Tax Margin(%) 1.98 -0.86 1.40 0.01 0.37

Gross Profit Margin(%) 2.00 -0.88 1.41 0.01 0.37

Cash Profit Margin(%) 1.65 1.82 1.82 1.64 1.62

Adjusted Cash Margin(%) 1.65 1.82 1.82 1.64 1.62

Net Profit Margin(%) 1.53 1.74 1.75 1.60 1.56

Adjusted Net Profit Margin(%) 1.52 1.69 1.73 1.57 1.54

Return On Capital Employed(%) 3.51 2.50 4.09 4.74 5.18

Return On Net Worth(%) 1.96 2.10 3.35 3.78 4.90

Adjusted Return on Net Worth(%) 1.96 2.10 3.35 3.78 4.90

Return on Assets ExcludingRevaluations 71.76 70.41 68.97 66.75 64.53

Return on Assets IncludingRevaluations 71.76 70.41 68.97 66.75 64.53

Return on LongTerm Funds(%) 3.73 2.50 4.09 4.74 5.18

Liquidity And Solvency Ratios

Current Ratio 0.35 0.34 0.47 0.59 0.62

Quick Ratio 0.24 0.20 0.25 0.59 0.62

Debt Equity Ratio 0.06 -- -- -- --

LongTerm Debt Equity Ratio -- -- -- -- --

Debt Coverage Ratios

Interest Cover 3.02 86.19 26.62 33.38 26.29

Total Debt to Owners Fund 0.06 -- -- -- --

Financial Charges Coverage Ratio 3.16 91.74 27.75 34.64 27.69

Financial Charges Coverage Ratio Post Tax 2.73 78.84 23.91 28.91 27.27

Management Efficiency Ratios

Inventory Turnover Ratio 5.99 5.20 4.49 1,151.46 3,367.33 CONTD.

Debtors Turnover Ratio 8.68 3.78 2.62 2.25 4.50

Investments Turnover Ratio 1.20 1.21 1.91 2.36 3.14

Fixed Assets Turnover Ratio 134.77 34.76 55.69 66.30 85.33

Total Assets Turnover Ratio 1.20 1.21 1.91 2.36 3.14

Asset Turnover Ratio 1.25 1.22 1.95 2.40 3.21

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

-
Number of Days In WorkingCapital -324.56 -199.91 -132.35 -90.52
329.89
Profit &Loss Account Ratios

Material Cost Composition 94.41 79.26 118.87 96.40 74.89

Imported Composition of RawMaterials

-- -- -- -- --
Consumed

SellingDistribution Cost Composition -- 0.02 0.01 0.07 0.02

Expenses as Composition of Total Sales -- -- -- -- --

CONTD.
Cash FlowIndicator Ratios

Dividend Payout Ratio Net Profit -- 3.37 2.16 1.97 1.58

Dividend Payout Ratio Cash Profit -- 3.13 2.05 1.88 1.49

EarningRetention Ratio 100.00 96.63 97.84 98.03 98.42

Cash EarningRetention Ratio 100.00 96.87 97.95 98.12 98.51

Mar'24 Mar '23 Mar '22 Mar '21 Mar '20

Earnings Per Share 1.41 1.48 2.31 2.53 3.16

Book Value 71.76 70.41 68.97 66.75 64.53

Financial Ratio Analysis

1 Profitability Ratios 2 Liquidity Ratios

Examine profitability ratios Analyze liquidity ratios like
like gross profit margin, net current ratio, quick ratio, and
profit margin, and return on cash ratio. Assess the
equity. Assess the company's ability to meet
company's ability to short-term obligations.
generate profits.

3 Solvency Ratios 4 Activity Ratios

Examine solvency ratios Analyze activity ratios like
like debt-to-equity ratio, inventory turnover, accounts
debt-to- asset ratio, and receivable turnover, and
times interest earned. asset turnover. Assess the
Assess the company's efficiency of asset
ability to meet long-term utilization and working
obligations. capital management.
FINANCIAL RATIO ANALYSIS OF VERITAS INDIA PVT LTD (MAR 2020 - MAR 2024

1. Profitability Ratios
• Operating Profit Margin (%): Fluctuates from -0.75% in 2023 to 2.13% in 2024. The positive change
suggests improved operational efficiency or cost management.
• Net Profit Margin (%): Stable over the years, ranging from 1.53% to 1.75%, indicating consistent
profitability.
• Return on Capital Employed (ROCE) (%): Decreased from 5.18% in 2020 to 3.51% in 2024, implying
reduced efficiency in using capital to generate profits.
• Return on Net Worth (RONW) (%): Also declining, from 4.90% in 2020 to 1.96% in 2024, signaling lower
returns for shareholders over time.
2. Liquidity and Solvency Ratios
• Current Ratio: Dropped from 0.62 in 2020 to 0.35 in 2024, indicating potential liquidity issues and a
reduced ability to cover short-term liabilities.
• Quick Ratio: Also decreased from 0.62 in 2020 to 0.24 in 2024, reinforcing concerns about liquidity.
• Debt Equity Ratio: Very low at 0.06 in 2024, suggesting that Veritas relies more on equity financing than
debt, reducing financial risk but potentially limiting growth opportunities.
4. Management Efficiency Ratios
• Inventory Turnover Ratio: Increased from 5.20 in 2023 to 5.99 in 2024, suggesting improved inventory
management.
• Debtors Turnover Ratio: Rose from 3.78 in 2023 to 8.68 in 2024, indicating that Veritas has become more
efficient in collecting receivables.
5. Cash Flow Indicator Ratios
• Earning Retention Ratio: 100% across all years, meaning the company is retaining all its earnings for
reinvestment rather than distributing them as dividends.
Key Insights:
• Profitability has seen some recovery from the dip in 2023.
• Liquidity has weakened considerably, as shown by the low current and quick ratios.
• Debt management seems conservative, with low debt levels, but the company’s ability to cover interest
has worsened significantly in 2024.
• Operational efficiency in managing inventory and collecting receivables has improved.
 Mar- Mar- Mar- Mar- Mar-
Category 24 23 22 21 20

Revenue From Operations [Gross] 9893% 9946% 9935% 9911% 9890%

Revenue From Operations [Net] 9893% 9946% 9935% 9911% 9890%

Other Operating Revenues 2% 1% 3% 5% 5%

Total Operating Revenues 9896% 9947% 9938% 9917% 9895%

Other Income

Total Revenue
104%
10000
%
53%
10000
%
62%
10000
%
83%
10000
%
105%
10000
%
COMMON
SIZE INCOME
EXPENSES

Purchase Of Stock-In Trade 7861% 8709% 8754% 8207% 8373%

STATEMENT
Changes In Inventories Of FG,WIP And Stock-In Trade 468% -357% -76% 119% -226%
Employee Benefit Expenses 284% 288% 322% 379% 357%
Finance Costs 8% 8% 4% 9% 5%
Depreciation And Amortisation Expenses 48% 38% 41% 54% 57%
Other Expenses 351% 350% 356% 679% 842%

Total Expenses 9019% 9037% 9402% 9447% 9408%

Profit/Loss Before Exceptional, Extraordinary Items and Tax 981% 963% 598% 553% 592%
Exceptional Items 0% 0% 0% 0% 62%
Profit/Loss Before Tax 981% 963% 598% 553% 654%
Tax Expenses-Continued Operations
Current Tax 255% 246% 162% 142% 149%
Deferred Tax -6% -1% -7% 5% 35%
Tax For Earlier Years 0% 2% -1% -2% 5%
Total Tax Expenses 249% 247% 153% 144% 190%
Profit/Loss After Tax and Before Extraordinary Items 732% 716% 445% 409% 465%
Profit/Loss from Continuing Operations 732% 716% 445% 409% 465%
Profit/Loss for The Period 732% 716% 445% 409% 465%
Category Mar-24 Mar-23 Mar-22 Mar-21 Mar-20
SHAREHOLDER'SFUNDS
EquityShare Capital 105% 116% 143% 171% 197%
Total Share Capital 105% 116% 143% 171% 197%
Reserves and Surplus 6057% 5792% 5651% 5921% 6090%
Total Reserves and Surplus
Total Shareholders’ Funds
NON-CURRENTLIABILITIES
6057%
6163%
5792%
5908%
5651%
5795%
5921%
6092%
6090%
6287% COMMON
SIZE
Other Long-TermLiabilities 37% 105% 12% 63% 126%
Total Non-Current Liabilities 37% 105% 12% 63% 126%
CURRENTLIABILITIES

BALANCE
Trade Payables 3581% 3789% 4012% 3622% 3412%
Other Current Liabilities 193% 183% 167% 203% 155%
Short TermProvisions 27% 14% 15% 20% 19%

SHEET
Total Current Liabilities 3800% 3986% 4194% 3845% 3587%
Total Capital and Liabilities 10000% 10000% 10000% 10000% 10000%
ASSETS
NON-CURRENTASSETS
Tangible Assets 327% 398% 358% 487% 627%
Intangible Assets 0% 0% 0% 0% 0%
Fixed Assets 327% 398% 358% 487% 628%
Non-Current Investments 245% 270% 333% 398% 457%
Deferred TaxAssets [Net] 58% 50% 60% 57% 75%
Other Non-Current Assets 78% 79% 11% 32% 23%
Total Non-Current Assets 708% 798% 762% 974% 1183%
CURRENTASSETS
Current Investments 2339% 1527% 1667% 1170% 614%
Inventories 1214% 2292% 1975% 2193% 2756%
Trade Receivables 5007% 4966% 4636% 4228% 4776%
Cash And Cash Equivalents 637% 334% 770% 1207% 290%
OtherCurrentAssets 94% 83% 189% 228% 380%
Total Current Assets 9292% 9202% 9238% 9026% 8817%
Total Assets 10000% 10000% 10000% 10000% 10000%
Altman Z-Score Calculation
Formula Variables Interpretation
Z-Score = 1.2A + 1.4B + 3.3C + A: Working Capital / Total Assets, Z-score above 2.99 indicates low
0.6D B: Retained Earnings / Total Assets, risk of bankruptcy, 1.81 - 2.99
+ 1.0E C: EBIT / Total Assets, D: Market indicates moderate risk, and below
Value of Equity / Total Liabilities, E: 1.81 indicates high risk.
Sales / Total Assets
VERITAS (INDIA) ALTMAN Z-SCORE CALCULATION
ALTMAN Z-SCORE MODEL IS AN ACCURATE FORECASTER OF FAILURE UP TO TWO YEARS PRIOR TO DISTRESS. IT CAN BE CONSIDERED
THE ASSESSMENT OF THE DISTRESS OF INDUSTRIAL CORPORATIONS.

VERITAS (INDIA)'S ALTMAN Z-SCORE FOR TODAY IS CALCULATED WITH THIS FORMULA:

Z = 1.2*X1 + 1.4*X2 + 3.3*X3 + 0.6*X4 + 1.0 * X5

= 1.2*0.3176 + 1.4*0 + 3.3*0.0576 + 0.6*1.6354 + 1.0*0.9837
= 2.54
* FOR OPERATING DATA SECTION: ALL NUMBERS ARE INDICATED BY THE UNIT BEHIND EACH TERM AND ALL CURRENCY RELATED
AMOUNT ARE IN USD.
* FOR OTHER SECTIONS: ALL NUMBERS ARE IN MILLIONS EXCEPT FOR PER SHARE DATA, RATIO, AND PERCENTAGE. ALL CURRENCY
RELATED AMOUNT ARE INDICATED IN THE COMPANY'S ASSOCIATED STOCK EXCHANGE CURRENCY. GURUFOCUS DOES NOT
CALCULATE ALTMAN Z-SCORE WHEN X4 OR X5 VALUE IS 0.
* OPERATING DATA SECTION: ALL NUMBERS ARE INDICATED BY THE UNIT BEHIND EACH TERM AND ALL CURRENCY
RELATED AMOUNT ARE IN USD.
* FOR OTHER SECTIONS: ALL NUMBERS ARE IN MILLIONS EXCEPT FOR PER SHARE DATA, RATIO, AND PERCENTAGE. ALL
CURRENCY RELATED AMOUNT ARE INDICATED IN THE COMPANY'S ASSOCIATED STOCK EXCHANGE CURRENCY.
GURUFOCUS DOES NOT CALCULATE ALTMAN Z-SCORE WHEN X4 OR X5 VALUE IS 0.
TRAILING TWELVE MONTHS (TTM) ENDED IN JUN. 2024:
TOTAL ASSETS WAS ₹41,831 MIL.
TOTAL CURRENT ASSETS WAS ₹17,376 MIL.
TOTAL CURRENT LIABILITIES WAS ₹4,092 MIL.
RETAINED EARNINGS WAS ₹0 MIL.
PRE-TAX INCOME WAS 478.35 + 244.888 + 963.092 + 418.696 = ₹2,105 MIL.
INTEREST EXPENSE WAS -75.907 + -105.782 + -58.494 + -63.299 = ₹-303 MIL.
REVENUE WAS 7555.208 + 10945.408 + 13238.974 + 9408.675 = ₹41,148 MIL.
MARKET CAP (TODAY) WAS ₹27,360 MIL.
TOTAL LIABILITIES WAS ₹16,730 MIL.
* NOTE THAT FOR STOCK REPORTED SEMI-ANNUALLY OR ANNUALLY, GURUFOCUS USES LATEST ANNUAL DATA AS THE TTM DATA.
X1 = WORKING CAPITAL/TOTAL ASSETS
= (TOTAL CURRENT ASSETS - TOTAL CURRENT LIABILITIES)/TOTAL ASSETS
= (17375.986 - 4092.161) /41830.982
= 0.3176

X2 = RETAINED EARNINGS/TOTAL ASSETS

= 0/41830.982
= 0

X3 = EARNINGS BEFORE INTEREST AND TAXES/TOTAL ASSETS

= (PRE-TAX INCOME - INTEREST EXPENSE)/TOTAL ASSETS
= (2105.026 - -303.482)/41830.982
= 0.0576

X4 = MARKET VALUE EQUITY /BOOK VALUE OF TOTAL LIABILITIES

= MARKET CAP/TOTAL LIABILITIES
= 27359.605/16729.549
= 1.6354
X5 = REVENUE /TOTAL ASSETS
= 41148.265 /41830.982
= 0.9837
THE ZONES OF DISCRIMINATION WERE AS SUCH:

DISTRESS ZONES - 1.81 < GREY ZONES < 2.99 - SAFE ZONES

VERITAS (INDIA) HAS A ALTMAN Z-SCORE OF 2.54 INDICATING IT IS IN GREY ZONES.

STUDY BY ALTMAN FOUND THAT COMPANIES THAT ARE IN DISTRESS ZONE HAVE MORE THAN 80% OF CHANCES OF BANKRUPTCY IN TWO YEARS.
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