MIRA
INFORM REPORT
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Report Date : |
13.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
UTI BANK LIMITED |
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Registered Office : |
Trishul 3rd Floor Opp,
Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad ;380006 Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.12.1993 |
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Com. Reg. No.: |
020769 |
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CIN No.: [Company
Identification No.] |
L65110GJ1993PLC020769 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMU00075F |
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Legal Form : |
Public Limited Liability Bank. The Bank’s shares are listed on the stock exchanges |
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Line of Business : |
Subject is engaged in Banking Activities. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed bank having fine track. The
bank is progressing well. Directors are reported as experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The bank can be considered normal for business dealings at usual trade
terms and conditions. The bank can be regarded as promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
Trishul 3rd Floor Opp,
Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad :380006 Gujarat |
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Tel. No.: |
91-79-2640 9322 |
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Fax No.: |
91-79-2640 9321 |
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E-Mail : |
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Website : |
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Corporate Office : |
Maker Tower’F’ 13th Floor, cuffe Parade, ColaBa, Mumbai;400
005, |
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Tel. No.: |
91-22-67074407 |
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Fax No.: |
91-22-22186944 / 1492 |
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Branches
Extension Counters : |
· Agra, Uttar Pradesh · Ahmedabad, Gujarat · Maninagar, Gujarat · Vastrapur, Gujarat · Gandhinagar, Gujarat · Ahmednagar, Maharashtra · Amritsar, Punjab · Asansol, West Bengal · Aurangabad, Maharashtra · Faridabad, Haryana · Palwal, Haryana · Bangalore, Karnataka · Banashankari, Bangalore, Karnataka · Basaveshwarangar, Bangalore, Karnataka · Rajajinagar, Bangalore, Karnataka · Indira Nagar, Bangalore, Karnataka · Jayanagar, Bangalore, Karnataka · Chamarajapet, Bangalore, Karnataka · Koramangala, Bangalore, Karnataka · Yelahanka, Bangalore, Karnataka · Baramati, Maharashtra · Bareilly, Uttar Pradesh · Belgaum, Karnataka · Berhampur, Ganjam, Orissa · Bhavnagar, Gujarat · Bhilai, Chhatisgarh · Bhopal, Madhya Pradesh · Bhubaneshwar, Orissa · Bilaspur, Chattisgarh · Bokaro, Jharkhand · Burdwan, West Bengal · Calicut, Kerala · Chennai, Tamilnadu · Mylpore, Chennai, Tamilnadu · Rajaji Salai, Chennai, Tamilnadu · Adyar, Chennai, Tamilnadu · Thiruvanmlyur, Chennai, Tamilnadu · Anna Nagar, Chennai, Tamilnadu · Perambur · Madipakkam, Chennai – 600 091, Tamilnadu · Tambaram, Chennai, Tamilnadu · Purasawalkam, Chennai, Tamilnadu · Rampuram, Chennai, Tamilnadu · T. Nagar, Chennai, Tamilnadu · Coimbatore · Cuttack, Orissa · Bidanasi, Cuttack, Orissa · Dehraduan, Uttaranchal · Dhanbad, Jharkhand · Burdwan, West Bengal · Erode, Tamilnadu · Kachch, Gujarat · Sriganganagar, Rajasthan · Gangtok, Sikkim · Ghaziabad, Uttar Pradesh · Mapusa, Goa · Margao, Goa · Panjim, Goa · Vasco Da Gama, Goa · Guntur, Andhra Pradesh · Gurgaon, Haryana · Guwahati, Assam · Gwalior, Madhya Pradesh · Hassan, Karnataka · Hubli, Karnataka · Begumpet Road, Hyderabad, Andhra Pradesh · Ashok Nagar, Hyderabad, Andhra Pradesh · Nampally, Hyderabad, Andhra Pradesh · Madhapur, Hyderabad, Andhra Pradesh · Humayun Nagar, Hyderabad, Andhra Pradesh · Secunderabad, Andhra Pradesh · Kapra, Hyderabad, Andhra Pradesh · Indore, Madhya Pradesh · Vijay Nagar, Indore, Madhya Pradesh · Dewas, Madhya Pradesh · Jabalpur, Madhya Pradesh · Jaipur, Madhya Pradesh · Tilak Nagar, Jaipur, Rajasthan · Jalandhar, Punjab · Jalgaon, Maharashtra · Jammu & Kashmir · Jamnagar, Gujarat · Jamshedpur, Bihar · Jodhpur, Rajasthan · Kakinada, Andhra Pradesh · Kannur, Kerala · Kanpur, Uttar Pradesh · Kapurthala, Punjab · Karur, Tamilnadu · Ernakullam, Kochi, Kerala · Wellingdon Island, Kochi, Kerala · Kolhapur, Maharashtra · Kolkata, West Bengal · Baguliati, Kolkata, West Bengal · Airport, Dum Dum, Kolkata, West Bengal · 24 Parganas, West Bengal · Howrah, West Bengal · Hooghly, West Bengal · Nabapally, West Bengal · Madhyamgram, West Bengal · Kottayam, Kerala · Lucknow, Uttar Pradesh · Ludhiana, Punjab · Tehsil & District Ludhiana, Punjab · Threeke, Ludhiana, Punjab · Madurai, Tamilnadu · Malout, Punjab · Mangalore, Karnataka · Meerut, Uttar Pradesh · Mehsana, Gujarat · Mohali, Punjab · Mumbai, Maharashtra · New Marine Lines, Mumbai, Maharashtra · Andheri, Mumbai, Maharashtra · Vile Parle, Mumbai, Maharashtra · Bandra, Mumbai, Maharashtra · Borivali, Mumbai, Maharashtra · Kandivli, Mumbai, Maharashtra · Chembur, Mumbai, Maharashtra · Dadar, Mumbai, Maharashtra · Ghatkopar, Mumbai, Maharashtra · Malad, Mumbai, Maharashtra · Mulund, Mumbai, Maharashtra · Napean Sea Road, Mumbai, Maharashtra · Nariman Point, Mumbai, Maharashtra · Thane, Maharashtra · Worli, Mumbai, Maharashtra · Fort, Mumbai, Maharashtra · Mysore, Karnataka · Nabha, Punjab · Nagpur, Maharashtra · Nashik, Maharashtra · Nellore, Andhra Pradesh · New Delhi · Palam, New Delhi · Nelson Mandela Road, New Delhi · Noida, Uttar Pradesh · Panchkula, Haryana · Ambala, Haryana · Panvel, Maharashtra · Patiala, Punjab · Patna, Bihar · Phagwara, Punjab · Pondicherry · Andaman & Nicobar Islands · Pune, Maharashtra · Chinchwad, Pune, Maharashtra · Rajahmundry, Andhra Pradesh · Rajkot, Gujarat · Ranchi, Jharkhand · Rishikesh, Uttaranchal · Rohtak, Haryana · Rudrapur, Uttaranchal · Salem, Tamilnadu · Sangli, Maharashtra · Satara, Maharashtra · Satna, Madhya Pradesh · Shimla, Himachal Pradesh · Jalpaiguri, West Bengal · Sivakasi, Tamilnadu · Surat, Gujarat · Udaipur, Rajasthan · Anand, Gujarat · Vashi, Maharashtra · Tamluk, West Bengal · Thiruvananthapuram, Kerala · Thrissur, Kerala · Tiruchirapalli, Tamilnadu · Tuticorin, Tamilnadu · Udupi, Karnataka · Vadodara, Gujarat · Bharuch, Gujarat · Bharuch, Gujarat · Nadlad, Gujarat · Valsad, Gujarat · Nalasopara, Maharashtra · Vijayawada, Andhra Pradesh · Vishakhapatnam, Andhra Pradesh |
DIRECTORS
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Name : |
Mr. P. J. Nayak |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. S. Chatterjee |
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Designation : |
Executive Director |
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Name : |
Mr. Surendra Singh |
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Designation : |
Director |
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Name : |
Mr. N. C. Singhal |
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Designation : |
Director |
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Name : |
Mr. A. T. Pannir Selvam |
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Designation : |
Director |
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Name : |
Mr. J. R. Varma |
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Designation : |
Director |
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Name : |
Mr. R. H. Patil |
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Designation : |
Director |
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Name : |
Mr. Rama Bijapurkar |
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Designation : |
Director |
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Name : |
Mr. R. B. L. Vaish |
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Designation : |
Director |
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Name : |
Mr. S. B. Mathur |
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Designation : |
Director |
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Name : |
Mr. M. V. Subbiah |
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Designation : |
Director |
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Name : |
Mr. Ramesh Ramanathan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R. Asok Kumar |
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Designation : |
President - Corporate Banking |
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Name : |
Mr. M. M. Agrawal |
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Designation : |
President - Capital Markets |
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Name : |
Mr. V. K. Ramani |
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Designation : |
President - Information Technology |
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Name : |
Mr. S. K. Chowdhury |
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Designation : |
President - Operations |
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Name : |
Mr. R. K. Niyogi |
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Designation : |
President - Inspection and Audit |
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Name : |
Mr. S. K. Chakrabarti |
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Designation : |
President - Projects and Planning |
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Name : |
Mr. Hemant Kaul |
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Designation : |
President - Retail Banking |
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Name : |
Mr. L. J. Fonseca |
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Designation : |
President - Support Services |
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Name : |
Mr. Somnath Sengupta |
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Designation : |
President - Finance & Accounts |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter
Shareholding |
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Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I) |
7,72,45,070 |
27.44 |
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Life Insurance Corporation of India |
2,92,22,936 |
10.38 |
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General Insurance Corporation of India and four PSU Insurance Companies. |
1,49,76,224 |
5.32 |
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Total Promoter Shareholding – A |
12,14,44,230 |
43.14 |
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Non-Promoter
Holding |
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Indian Financial Institutions (IFIs) |
3,24,084 |
0.12 |
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Mutual Fund |
2,13,38,919 |
7.58 |
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Others (Individuals/Corporate Bodies/HUF/Banks |
2,14,42,432 |
7.62 |
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Total Non-Promoter Indian Shareholding – B |
4,31,05,435 |
15.32 |
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Foreign
Shareholding |
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FDI Route – GDRs Issue |
1,21,32,851 |
4.31 |
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Foreign Financial Institutions (FIIs) |
10,43,49,360 |
37.07 |
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NRIs/OCBs/FBCs |
4,29,738 |
0.16 |
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Total Non-Promoter Foreign Shareholding – C |
11,69,11,949 |
41.54 |
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Total A+ B + C |
28,14,61,614 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in Banking Activities. |
GENERAL
INFORMATION
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No. of Employees : |
3447 |
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Bankers : |
-- |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
M/s.BSR & company Chartered Accountant |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
278690727 |
Equity Shares |
Rs.10/- each |
Rs.2786.907
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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LIABILITIES |
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Capital |
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2786.907 |
2737.964 |
2315.806 |
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Reserves & Surplus |
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25934.957 |
21343.882 |
9048.401 |
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Employee’s Stock Options Outstanding |
|
134.394 |
134.173 |
16.310 |
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Deposits |
|
401135.313 |
317120.001 |
209539.025 |
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Borrowings |
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26809.318 |
17814.115 |
5277.536 |
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Other Liabilities and Provisions |
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40510.278 |
18286.773 |
15304.591 |
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GRAND TOTAL
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497311.167 |
377436.908 |
241501.669 |
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ASSETS |
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Cash & Balances with RBI |
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24293.964 |
34487.411 |
37769.412 |
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Balances with Banks and money at Call & Short Notice |
|
12124.458 |
10541.953 |
18862.705 |
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Investments |
|
215273.513 |
150480.194 |
77927.567 |
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Advances |
|
223142.304 |
156029.219 |
93629.450 |
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Fixed Assets |
|
5677.131 |
5184.358 |
4351.550 |
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Other Assets |
|
16799.797 |
20713.773 |
8960.985 |
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|
0.000 |
0.000 |
0.000 |
GRAND TOTAL
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497311.167 |
377436.908 |
241501.669 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
36184.248 |
23399.778 |
21268.577 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
36184.248 |
23399.778 |
21268.577 |
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Profit/(Loss) Before Tax |
4850.837 |
3345.777 |
2783.120 |
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Provision for Taxation |
0.000 |
0.000 |
-- |
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Profit/(Loss) After Tax |
4850.837 |
3345.777 |
2783.120 |
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Dividend |
NA |
NA |
653.130 |
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Expenditures : |
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Interest |
18105.560 |
11929.808 |
10214.487 |
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Operating Expenses |
8140.507 |
5813.789 |
4192.055 |
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Provisions
& Contingencies
|
5087.344 |
2310.404 |
4078.915
|
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Total Expenditure |
31333.411 |
20054.001 |
18485.457 |
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QUARTERLY
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Qtr |
2nd Qtr |
3rd Qtr |
|
Sales Turnover |
9539.200 |
1,0500.900 |
1,1896.200 |
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Other Income |
2245.000 |
2047.700 |
2797.400 |
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Total Income |
1,1784.200 |
1,2548.600 |
1,4693.600 |
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Total Expenditure |
3639.700 |
3542.100 |
4132.300 |
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Operating Profit |
8144.500 |
906.500 |
1,0561.300 |
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Interest |
6320.800 |
6849.200 |
7737.800 |
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Gross Profit |
1823.700 |
2157.3000 |
2823.500 |
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Depreciation |
00.000 |
00.000 |
00.000 |
|
Tax |
618.200 |
737.500 |
977.400 |
|
Reported PAT |
1205.500 |
1419.800 |
1846.100 |
200606 Provision & Contingencies includes Provision for Non Performing Asset of assets Rs 137.80 million EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter 01 Complaints Received during the quarter 80 Complaints disposed off during the quarter 79 Complaints unresolved at the end of the quarter 02* * resolved in the first week of July, 2006 1. The results above have been taken on record by the Board of Directors of the Bank at its meeting held at July 13, 2006. 2. Other Income Includes gains from securities transactions, commission earned from guarantees / letters of credit, fees earned from providing services to customers, selling of third party products and ATM sharing fees. 3. Pursuant to the change in provisioning requirements for certain classes of standard assets from 0.40% to 0.55% for the quarter ended June 30, 2006 as notified by RBI through its circular dated July 12, 2006, the Bank has made an additional provision of Rs 72.90 million during the quarter ended June 30, 2006. 4. In terms of RBI guidelines dated June 22, 2006. floating provisions for non- performing assets created in earlier year's of Rs 249.60 million can be utilized only under extraordinary circumstances with the approval of the RBI Consequently, the Bank has made additional provision of Rs 134.70 million towards specific non-performing assets during the quarter ended June 30, 2006. 5. Consequent upon the abolition of Section 10(23)(G) of the income tax Act with effect from April 01 2006, investments of the Bank in certain bonds and debentures no longer qualify as tax-free instruments resulting in an additional tax liability of Rs 42.70 million for the current quarter. Further, in terms of RBl's prudential norms for valuation of investments, this has resulted in a diminution in the valuation of the Bank's investment portfolio as on June 30, 2006 by Rs 883.70 million. 6. These results for the quarter ended June 30, 2006, have been subjected to a 'Limited Review' by the Statutory Auditors of the Bank. 7. Previous years figures have been regrouped and reclassified, where necessary, to make them comparable with current quarter years figures.
200609 Provision & Contingencies includes provision for Non Performing Asset of Rs 213.90 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter 02 Complaints Received during the quarter 126 Complaints disposed off during the quarter 126 Complaints unresolved at the end of the quarter 02* * resolved in the first week of October, 2006 1. The results above have been taken on record by the Board of Directors of the Bank at its meeting held on October 13, 2006. 2. 'Other income' includes gains from securities' transactions, commission earned from guarantees / letters of credit, fees earned from providing services to customers, selling of third party products and ATM sharing fees. 3. Pursuant to the change in provisioning requirements for certain classes of standard assets from 0.40% to 0.70% for the half year ended September 30, 2006 as notified by RBI through its circular dated July 12, 2006, there has been an impact of an additional provision of Rs 185.90 million during the half year ended September 30, 2006. 4. These results for the half year ended September 30, 2006, have been subjected to a 'Limited Review' by the Statutory Auditors of the Bank. 5. Previous period figures have been regrouped and reclassified, where necessary to make them comparable with current quarter figures.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Credit Deposit Ratio |
52.79 |
47.40 |
43.63 |
|
Investment Deposit Ratio |
50.92 |
43.37 |
41.23 |
|
Cash Deposit Ratio |
8.18 |
13.72 |
14.18 |
|
Interest Expended/Interest Earned |
62.68 |
62.00 |
63.90 |
|
Other Income/Total Income |
20.21 |
18.38 |
25.31 |
|
Operating Expense/Total Income |
22.53 |
25.24 |
19.66 |
|
Interest Income/Total Funds |
6.60 |
6.21 |
7.31 |
|
Interest Expended /Total Funds |
4.13 |
3.85 |
4.67 |
|
Net Interest Income/Total Funds |
2.46 |
2.36 |
2.64 |
|
Non Interest Income/Total Funds |
1.67 |
1.40 |
2.48 |
|
Operating Expense/Total Income |
1.86 |
1.92 |
1.92 |
|
Profit Before Provisions/Total Funds |
2.27 |
1.84 |
3.19 |
|
Net Profit/Total Funds |
1.11 |
1.08 |
1.27 |
|
Return On Net Worth(%) |
18.37 |
18.88 |
27.09 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.479.00 |
|
Low |
Rs.465.00 |
LOCAL AGENCY
FURTHER INFORMATION
FINANCIAL PERFORMANCE
The Bank continued to show robust growth in both business and financial performance indicators during the year 2005-06. The financial highlights for the year under review are given
The Bank continues to register an impressive year-on-year improvement in financial performance. The Bank posted a net profit of Rs. 4850.800 Millions for the year, which is 44.98% higher than Rs.3345.800 Millions in the previous year. During the year, the total income has increased by 54.63% to Rs. 3,6184.200 Millions from Rs. 2,3399.800 Millions in the previous year.
The strong revenue growth in 2005-06 was driven by an increase in net interest income of Rs. 3470.500 Millions and by an increase in other income of Rs. 3138.100 Millions The increase in net interest income was primarily driven by the strong balance sheet growth and increase in the share of demand deposits in total deposits during the year. On a daily average basis, average earning assets during the year have increased by 50.30% from Rs. 25,1870.000 Millions in 2004-05 to Rs. 378570.000 Millions in 2005-06, which was partly offset by some pressure on spreads due to hardening of interest rates in the last quarter of the financial year. Another significant contributor in the growth of net interest income was the rapid growth in demand deposits, which helped the Bank in containing its cost of funds. During 2005-06, the daily average of demand deposits grew by 62.28% on a year-on-year basis, which helped contain the cost of funds. Nevertheless, the daily average cost of funds in 2005-06 rose to 4.94% from 4.81% in 2004-05 due to a tightening of overall liquidity which led to the hardening of term deposit interest rates in the fourth quarter of the financial year.
During 2005-06, the yield on assets has 'declined by 6 basis points to 7.58% from 7.64% in the previous year, which is in line with the general decline in interest rates on advances, facilitated by an accommodating monetary policy in the early part of the financial year. The Bank was able to absorb the upward pressure on interest rates on deposits, in particular in the last quarter of the financial year, and the consequent squeeze on margins, through a concerted effort in increasing low cost deposits. During 2005-06, the net interest margin has decreased by 5 basis points to 2.85% from 2.90% in 2004- 05. On quarter-to-quarter basis, the net interest margin during 2005-06 has increased from 2.66% in Q1, to 2.80% in Q2, 2.94% in Q3 and 2.96% in Q4, underscoring the robust growth
in net interest income.
Other income comprising trading profit, fee and miscellaneous income increased by 75.47% from Rs. 4158.200 Millions in 2004-05 to Rs. 7296.300 Millions in 2005-06. Fees are now a very significant revenue earner for the Bank. About 67% of other income was by way of fee income from a diverse range of products and services offered to our customers, indicating superior earnings quality. Of the remaining, 12% of other income was by way of revenues from foreign exchange transactions. During 2005-06, there has been a significant growth in trading profits to Rs. 2166.900 Millions from Rs. 373.900 Millions in the previous year. The increase appears high against the much lower base of trading income in 2004-05, which suffered a one-time accounting loss of Rs. 1145.300 Millions when government securities were transferred from the Available for Sale (AFS) category to the Held to Maturity (HTM) category.
During 2005-06, the operating revenue of the Bank increased by 57.62% to Rs. 1,8078.600 Millions from Rs. 1,1470.000 Millions in 2004-05. Net interest income together with fee and other income (but excluding trading profit) constituted 88.01% of operating revenue during 2005-06. The operating expenses have increased from Rs. 5813.800 Millions in 2004-05 to Rs. 8140.500 Millions in 2005-06, registering a growth of 40.02%. The increase in operating expenses was primarily due to the growth of the Bank's retail network and the infrastructure required to support its growing business. During the year, there was an improvement in operational efficiency, which is reflected in the decline of the cost: income ratio to 45.03% from 50.69% in 2004-05. The Bank continues to provide aggressively against loan assets and has also created a floating provision. During 2005-06, the Bank has made total provisions of Rs. 1718.200 Millions (against Rs. 161.600 Millions in the previous year), which includes loan-loss provisions, provisions for standard assets and floating provisions. Pursuant to the change in provisioning requirement for standard assets from 0.25% to 0.40% as notified by RBI, the Bank has made an additional provision for this purpose of Rs. 278.800 Millions during 2005-06. The Bank continued to improve its asset quality, as a result of which net NPAs, as a percentage of net customer assets, declined substantially from 1.07% as on 31st March 2005 to 0.75% as on 31st March 2006.
The return on average net worth in 2005-06 was 18.44%. The Bank's basic earnings per share increased from Rs. 14.32 toRs. 17.45 per share, while diluted earnings were Rs. 17.08 per share in 2005-06 as compared to Rs. 14.06 per share in 2004-05. The book value per share rose from Rs. 87.95 as on 31st March 2005 to Rs. 103.06 as on 31st March 2006. Manpower productivity has also risen during the year: while the profit per employee has increased to Rs. 0.869 Millions from Rs. 0.802 Millions last year, during the same period the business per employee has been maintained at Rs. 102.000 Millions The Bank has also shown healthy growth in its key balance sheet parameters for the year ended 31st March 2006. The total balance sheet size grew by 31.76% to Rs. 497310.000 Millions for the year from Rs. 377440.000 Millions in the previous year. Total deposits have increased by 26.49% from Rs. 317120.000 Millions on 31st March 2005 to Rs. 40,1135.300 Millions on 31st March 2006, within which the low cost demand deposits have increased by 33.12% to Rs. 160355.200 Millions on 31st March 2006, from Rs. 120456.900 Millions last year. As on 31st March 2006, the percentage share of low cost demand deposits was 39.98%. The slower growth in total deposits in 2005-06 is attributable to an exceptional rise in high-value deposits of corporates booked in current accounts of Rs. 29200.00 Millions on the last day of March 2005. On a daily average basis, the total deposits in 2005-06 grew by 43.49% to Rs. 323270.000 Millions from Rs. 225290.000 Millions in the previous year, in which the low cost deposits (savings bank and current account deposits) increased by 62.28% from Rs. 6,2460.700 Millions in 2004- 05 to Rs. 10,1360.300 Millions in 2005-06. During the year, the total advances of the Bank increased by 43.01% to Rs. 22,3142.300 Millions from Rs. 15,6029.200 Millions in the previous year. Of this, corporate loans increased by 38.58% from Rs. 11,4192.400 Millions to Rs. 15,8243.000 Millions, while retail loans increased by 55.12%, from Rs. 4,1836.800 Millions to Rs. 6,4899.300 Millions The Bank's total investments increased by 43.06% from Rs. 15,0480.200 Millions to Rs. 21,5273.500 Millions The investments in government and approved securities held to meet the Bank's SLR requirement ncreased by 56.40% from Rs. 7,5383.900 Millions to Rs. 11,7898.000 Millions, as a result of the increase in total deposits. Other investments, including corporate debt securities, increased by 29.67% from Rs. 7,5096.300 Millions to Rs. 9,7375.500 Millions with the Bank investing in credit substitutes such as debentures and bonds that have helped to enhance interest income.
The Bank has continued to expand its distribution network to augment its geographical reach and maintain business growth momentum. This has helped the Bank particularly in the acquisition of low-cost retail deposits. During 2005-06, there was a significant expansion in the distribution network with 99 new branches and 13 extension counters added to the Bank's network, taking the number of branches from 256 to 355 and the network of extension counters from 83 to 95 (with one extension counter upgraded to a branch during the year). Out of a total of 355 branches, 90 branches are in semiurban and rural areas. With the opening of new offices, the geographic reach of the Bank now extends to over 26 States and 2 Union Territories, covering 258 different cities, towns and villages. The steady widening of this reach, especially in district headquarters and small towns, is expected to sustain the momentum of the Bank's growth in business, particularly that of low cost deposits as well as advances to the SME and agriculture sectors. The ATM network of the Bank has increased from 1,599 to 1,891 during the year, and today constitutes the third largest ATM network among banks in the country.
CAPITAL & RESERVES
During the year under review, the Bank has raised Tier I Capital of Rs. 780.000 Millions by allotting 30,00,700 GDRs through the exercise of the Greenshoe option under the Global Depositary Receipt (GDR) offering to overseas investors made in March 2005. Each GDR represents one equity share of the Bank and was issued at a price of US Dollars 5.91.
With the exercise of the Greenshoe option, the Bank has mobilized Rs. 1,1220.000 Millions (equivalent to US Dollars 257.03 million) through GDRs which are listed and traded on the London Stock Exchange (LSE). The successful conclusion of capital-raising helped the Bank in pursuing its growth strategy and in bolstering its capital adequacy ratio. Despite a subsequent strong growth in assets, the Capital Adequacy Ratio (CAR) at the end of the year was at 11.08%, substantially above the benchmark requirement of 9% prescribed by the Reserve Bank of India. Of this, Tier I capital amounted to 7.26%, while Tier II Capital was at 3.82%. During the year, the Bank also allotted equity shares to employees under its Employee Stock Option Plan aggregating to 18,93,583 equity shares. Owing to the exercise of the Greenshoe option under the GDR offering and the allotment of equity shares upon the exercise of ESOPs, the paid up capital of the Bank as on 31 st March 2006 rose to Rs. 2786.900 Millions from Rs. 2738.000 Millions as on 31 st March 2005. The shareholding pattern of the Bank as of 31 st March 2006 was as under:
|
Sr. No |
Name of Shareholders |
% of Paid Up
Capital |
|
1 |
Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I |
27.72% |
|
2 |
Life Insurance Corporation of India |
10.49% |
|
3 |
General Insurance Corporation and four PSU Insurance Companies |
5.50% |
|
4 |
Overseas Investors including FIIs/ OCBs/ NRIs |
35.40% |
|
5 |
Foreign Direct Investment (GDR issue) |
6.76% |
|
6 |
Other Indian Financial Institutions/ Mutual Funds/ Banks |
7.03% |
|
7 |
Others |
7.10% |
|
|
Total |
100.00% |
The Bank's shares are listed on the NSE, the BSE, the Ahmedabad Stock Exchange and the OTCEI. The GDRs
issued by the Bank are listed on the London Stock Exchange (LSE). The listing fees for the current year has been paid. With effect from 26th March 2001, the shares of the Bank have been included and traded in the BSE Group 'A'. During the year, the Bank has also raised Rs. 1,0000.000 Millions by way of subordinated bonds (unsecured redeemable non-convertible debentures) qualifying as Tier II capital for the purpose of augmenting its capital adequacy ratio. The Bank had set-up an Investment Fluctuation Reserve (IFR) during the year 1999 and from March 2002 in terms of RBI directives appropriated a total of Rs.2920.000 Millions to IFR over the next 4 years. As on 31st March 2005, the outstanding balance in the IFR was Rs. 2928.100 Millions In terms of a circular dated 10th October 2005, RBI permitted banks maintaining capital of at least 9% of risk weighted assets for both credit and market risks (for securities included in both under the Held for Trading (HFT) and Available for Sale (AFS) categories) to transfer the •balance in IFR, 'below the line' in the Profit and Loss Appropriation Account, to the Statutory Reserve, the General Reserve or the balance of Profit and Loss account. As the Bank has maintained capital of 9% ot the risk weighted assets for credit and market risks (for investments in both HFT and AFS categories), it has transferred the entire outstanding balance of Rs. 2928.100 Millions in the IFR to the balance of the Profit and Loss Account as at end-March 2006.
DIVIDEND
The Bank's diluted Earning Per Share (EPS) during 2005-06 has risen to Rs. 17.08 from Rs. 14.06 during 2004-05. In view of the overall performance of the Bank, the positive future outlook of the Bank, as also the objective of rewarding shareholders with cash dividends while retaining capital to maintain a healthy capital adequacy ratio to support future growth, the Board of Directors has recommended a higher dividend rate of 35% on equity shares, compared to the 28% dividend declared for the previous year.
MANAG€M€NT'S
DISCUSSION AND ANALYSIS
MACRO-ECONOMIC
ENVIRONMENT
The Economic Survey of 2005-06 has affirmed that significant features of dynamic growth in recent years include a new industrial resurgence, pick-up in investment, modest inflation inspite of spiraling global crude prices and the laying of institutional foundations for faster development of infrastructure. The economic growth indices in the current year have been good and the GDP growth is expected to be around 8.1% for fiscal 2006. Non-food bank credit is expected to grow at 25.2% indicative of industrial recovery, and the services sector by 9.8%. Agriculture and allied sectors are expected to grow at a rate of 2.3% in the current fiscal. In order to maintain the GDP growth at over 8% in coming years and accelerate growth in industry, substantial investments will be required in infrastructure. External conditions have also been favourable with a growing level of foreign exchange reserves.
The overall macro-economic prospects for 2006-07 are, therefore, encouraging. The movement in the international price of oil is a matter of concern and may induce inflationary pressures. Of concern also is the hardening of interest rates that may lead to an increase in lending rates and affect investments in the industrial sector. Inflow of FIT funds continues and is reflected in some measure in the stock market boom. Overall, there is confidence that the Indian economy has acquired a higher degree of resilience and is in a position to better withstand both domestic and external shocks, with minimal adverse consequences for growth, inflation and financial stability.
The Indian banking system is expected to record good growth during 2005-06. During fiscal 2006 aggregate deposits of all scheduled commercial banks grew by 16.9%, while bank credit grew by 29.9%. However, there continue to be areas of concern and threats within the banking system. These include the hardening of interest rates which impose pressures on margins. Equity and foreign exchange markets have been volatile and any further downturn could affect valuations. The implementation of Basel II norms from 2007 will put further pressure on the capital adequacy ratio of banks. Finally, a major challenge for banks will be to bring in operational efficiencies through superior absorption of technology, which will eventually be reflected in lower transaction costs.
OVERVIEW OF FINANCIAL
AND BUSINESS PERFORMANCE
The Bank has been able to turn in an impressive business performance and record good financial results for the fifth year in succession, owing to the efficacy of its business model which aspires to be customer-centric. Information technology is continuously leveraged in providing valueadded products and services as well as multiple-delivery channels to customers in a manner that is cost-effective and which offers the Bank's customers easy, real-time and on-line access for all types of transactions.
During 2005-06, the Bank has recorded strong growth in business volumes, and this has impacted favourably on
financial performance, with the net profit increasing by 44.98% to Rs. 4850.800 Millions from Rs. 3345.800 Millions in the previous year. The total assets of the Bank have increased by 31.76%, total deposits by 26.49% and the total advances by 43.01 %. The Bank continued to create shareholder value, as a result of which the diluted earnings per share during 2005- 06 increased to Rs. 17.08 from Rs. 14.06 in 2004-05, while the book value per share increased from Rs. 87.95 on 31st March 2005 to Rs. 103.06 on the 31st March 2006.
The strong performance, despite a tightening of overall liquidity leading to a hardening of interest rates in the closing stages of the fourth quarter, reflected the fact that the primary goals of the Bank of increasing its market share in various businesses and improving its quality of earnings by enhancing its core income streams, is solidly anchored in the strategy adopted by it. The sizeable network of branches, extension counters and ATMs has equipped the Bank with an impressive reach across the country and is supported by channels such as the Internet and mobile phone banking. The steady widening of this reach to smaller cities and towns, including in district headquarters, is expected to sustain the momentum of growth of low cost deposits, as the Bank enjoys a first-mover advantage vis-a-vis other private sector banks in many of these centres. The key factors which contributed to the healthy performance of the Bank during the year were the continued thrust on improvement in the quality of earnings through an emphasis on core income streams such as net interest income and feebased
income; the availment of opportunities emanating from the upswing in the corporate credit cycle; a focus on improvement in asset quality through rigorous credit and risk appraisal, sound treasury management, product diversification and internal control; enhanced cost efficiency by leveraging on technology that is continuously upgraded; and maintenance of high standards of customer service.
Going forward, the Bank will continue to derive benefit from the infrastructure created over the years and pursue a strategy of profitable growth through stronger corporate relationships and an accelerated retail customer expansion programme driven by the Bank's multiple channels. The Bank continues to identify new thrust areas to sustain its growth, and these include:
a. Growth in credit to the SME and agriculture sectors that will be driven by a network of rural and semiurban
branches supported by organizational reinforcement in the form of SME cells and agriculture clusters.
b. Reinforcement of the international nemittance business. The Bank has already tied up with various banks and exchange houses in the Gulf for tapping the high-volume remittance business emanating from this region. Many more alliances in other geographies will be forged in the future to enable the Bank to become a significant player in this business.
c.New initiatives such as Wealth Management will enable the Bank to advise and to cross-sell third party products to high net-worth customers.
d. An expansion in the overseas branch and representative office network, commencing with the first branch in
Singapore, will create opportunities for cross-border trade finance, syndication of debt and NRI business.
CAPITAL MANAGEMENT
The Bank believes in the continual enhancement of shareholder value by an efficient use of available capital in ;
return on equity. In this sense, the Bank seeks to be protective of its capital. manner that leads to a high During the year, the Bank continued to attract investor interest from domestic and foreign institutional investors, leading to a very visible increase in trading volumes and price. In April 2005, the Bank has raised capital of Rs. 780.000 Millions through the exercise of the Greenshoe option under the Bank's Global Depositary Receipt (GDRs) offering to overseas investors made in March 2005. On the successful conclusion of the GDR offering, the Bank mobilised Rs. 1,122 Millions (equivalent to US Dollars 257.03 million). This additional capital helped the Bank in pursuing its growth strategy while maintaining a healthy capital adequacy ratio. In addition, the Bank also placed subordinated bonds of Rs. 1,0000.000 Millions in the market in order to raise Tier II capital to the extent eligible.
During the year, the Bank focused on developing an asset structure that was sensitive to the importance of increasing the proportion of low risk weighted assets, in order that capital is more efficiently deployed. As on 31st March 2006, the Bank's Capital Adequacy Ratio was 11.08% against the minimum regulatory requirement of 9%. The trend of capital to risk-weighted ratios during the last three years is presented
Reserve Bank of India has recently issued guidelines for raising hybrid capital by way of perpetual debt instruments ( q u a l i f y i ng as Tier I capital) and Upper Tier II capital, which may offer opportunities for raising such capital either domestically or overseas to meet Ihe requirements for balance sheet growth and credit and operational risk under Basel II.
Globalisation of financial markets across economies and the significant increase in international trade in recent years provides opportunities for the Bank to render banking and related services through a presence in overseas centres. Keeping this in view, the Bank has embarked on an active international expansion programme in key Asian markets. The Bank has since received a license and set up a branch in April 2006 in Singapore. This is the Bank's first overseas branch. The Bank has also obtained the necessary approval from the regulators in China for setting up a Representative Office in Shanghai and is now in the process of completing the related formalities for opening an office.
CORPORATE BANKING
Corporate Banking offers various loan and fee-based products and services to large corporates, SMEs and to the agriculture sector. The Bank continued with the strategy of diversifying its customer base, including deeper penetration in higher yielding segment, channel finance, SMEs and agricultural finance segments. During the year, total corporate advances grew by 39% to Rs. 158240.000 Millions from Rs. 114190.000 Millions in the previous year, which includes a growth of 76% in advances to the SME segment and 67% in agriculture advances. The strong growth in corporate advances was accompanied by significant improvement in the quality of the credit portfolio, which is reflected in improvement in net NPAs to 0.75% of net customer assets as on 31st March 2006, as compared to 1.07% as on 31st March 2005.
In order to give an impetus to the SME segmertt and to agricultural lending, there was a significant organisational reinforcement by setting up SME cells and adopting a cluster-centric approach for agricultural lending in areas with rich potential for such activity. In this direction 6 state-specific and 4 city-specific SME cells were set up. It is the Bank's endeavour to continue to focus on the SME segment by developing various schematic and non-schematic credit products which suit the credit needs of disparate business customers and by setting up more SME cells. In the area of agricultural lending, 9 agricultural clusters were formed which focused on agricultural lending. The Bank will continue to open more rural branches as also set up agricultural clusters to boost its agricultural business. The Bank also proposes to create backward and forward linkages for all players in the agriculture business chain so as to provide composite financing across the food chain.
The syndication and underwriting of corporate loan activities of the Bank took off during the year. The Bank experimented with new delivery models for credit, including setting up low cost rural ATMs at Anand, in order to provide convenient and low cost transaction services to the suppliers of milk to the Co-operative. Such application of technology provides customer convenience as well as product innovation. A Channel Finance Hub was also created in order to provide seamless service to various channel finance customers. The Bank believes that, in the long run, a composite suite of credit as well as liability- related products would make low cost ATM-centered delivery models a profitable business opportunity and provide its rural customers easy access to innovative banking products. The Bank also focused on micro-finance business as a convenient distribution channel for its rural as well as low-income customers.
BUSINESS BANKING
The Business Banking initiatives undertaken in 2005-06 continued to revolve around transaction banking services to garner business current accounts, cash management service mandates and the government business of collection and payment services. The Bank's strength in its network of branches at key business locations, and of its technology, helped in extending high-quality transaction banking services. During the year, the scope of business banking has been enlarged with various schematic loans being offered to small businesses. The Bank has sourced 77,264 new business current accounts during the year, taking the account-base to 2,37,709 business current accounts from 1,56,477 accounts in the previous year. As on 31 st March 2006, current account deposits have increased to Rs. 7,9700.800 Millions from Rs. 7,1548.300 Millions on 31st March 2005. The slower growth in current account deposits over March 2005 is attributed to an exceptional rise in high-value deposits of Rs. 2,9200.000 Millions of corporates booked in current accounts on the last day of March 2005. On a daily average basis, current account deposits during the year were Rs. 4,4280.000 Millions as against Rs. 2,8520.000 Millions last year, registering
a substantial growth of 55.26%. The Bank's Cash Management Services to corporates and institutions continued to be a focus area and has witnessed a throughput growth of 59.80% to Rs. 2,10,9770.000 Millions during 2005-06 compared to Rs. 1,32,0280.000 Millions the previous year. During the same period, the CMS client base has grown to 1,432 clients from 948 clients. Buoyancy in capital markets during the year has helped corporates to raise money through IPOs and FPOs, and the Bank has fully leveraged this opportunity by acting as a collecting banker to 42 capital issues with a total throughput of Rs. 9,0610.000 Millions Active participation in FPO/IPO businesses has contributed significantly to interest free float for the Bank.
The Bank has acted as an Agency Bank for transacting Government Business for the last 5 years, offering banking services to various Central Government Ministries and to State Governments and Union Territories. At present, the Bank accepts Income and Other Direct Taxes through its 214 authorised branches at 137 locations and Central Excise & Service Taxes through its 56 authorised branches at 13 locations. The Bank also handles disbursement of Civil Pension through 218 authorised branches and Defence Pension through 151 authorised branches. In addition, the Bank provides collection and payment services to four Central Government Ministries and seven State Governments and Union Territories. During the year, the Bank has taken up a new business of stamp duty collection through franking in Maharashtra and Gujarat. The Bank also launched an e-Payment facility for payment of central excise & service tax through the Internet for its customers, as part of the e-Governance
initiative of the Central Board of Excise & Customs. Over the last five years, Government business has become a significant contributor to the Bank's business and total Government business throughput during the year has increased by 83.09% to Rs. 27,8880.000 Millions from Rs. 15,2320.000 Millions in the previous year.
To meet the credit needs of small business enterprises, the Bank has launched a competitive range of collateralised asset product offerings and has developed an asset level of Rs.1070.000 Millions
The bank is been promoted by Unit Trust of India (BANK), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), and its four subsidiaries. It was incorporated in December 1993, and was among the few banks to be granted a license under the new guidelines issued in 1993 to carry on banking business in India. The total network of the bank as on March 2006 was 450 branches & extension counters and 1891 ATMs.
The bank has restructured its business into four strategic profit centres
Corporate, Retail, Merchant & Treasury Banking. Though liberalization and
reforms have throw up few challenges, it has also created opportunities for
banks to increase revenues by diversifying into Investment banking, Insurance,
Credit Cards, Mortgage Financing, Depository services and more.
The bank has already taken control of BANK's collection centres at
many cities. This will provide the bank with a good amount of float. Moreover
the bank is acting as a clearing house for NSE and has also tied-up with
companies in e-commerce.
Recently the banks entire technology backbone has been revamped and
the distributed database has been replaced by a state of the art centralized
Data Center at Chembur, Mumbai. In fact the bank is among the few indian banks
to have completely centralized its database. This has made it possible for the
bank to increasingly e-enable its transaction processing capabilities.
The bank along with Global Trust Bank (GTB), had a merger proposal in Jan
2001 to create the largest private sector bank in swap ratio of 9 shares of The
bank for 4 shares of GTB. Since submitting the merger application, many issues
have appeared in the media. Which forced both the banks to withdraw the merger
proposal.
During 2001-02, the Bank raised Rs 1575.900 Millions by making a
preferential allotment of 4,63,50,000 equity shares at a price of Rs 34.00 per
share to the South Asia Regional Fund and CDC Financial Services (Mauritius).
The Bank further raised Rs 529.200 Millions by making an additional
Preferential allotment of 1,35,59,700 equity shares at a price of Rs 390.400
per share to Life Insurance Corporation of India, General Insurance
Corporation, New India Assurance Company and National Insurance Company. With
this the shareholding of the THE BANKhas come down from 61% to 42%.
It has also made a preferential allotment in 2002-03 to the extent of
3,83,62,834 equity shares @ of Rs.42.75 per share to LIC, Citicorp Banking
Corporation, Chryscapital I,LLC, Mauritius and KVB Ltd.
The bank has launched pre-paid Dollar denominated card which is useful
for outbound travellers and has tied up with 14 major full-fledged
moneychangers to market the cards. It is also palnning to laaunch the Euro and
Pound Sterling variants.
The bank is the first private sector bank to be authorised for collection
of Commercial Taxes in twin cities of Hyderabad & Secunderabad.
The bank was authorised to handle Government transactions from October
2003 for collection of Government taxes, to handle the expenditure related
payments of Central Government Ministries and Departments and pension payments
on behalf of Civil and Non-civil Ministries such as defence, posts, telecom and
railways. Further the bank also provide mobile banking services and mobile
refill facilities for Airtel,Hutch, Orange and Idea cellular service
providers.
The bank has won award 'Oustanding Achievement Award' for the year 2005
from Indian Banks Association for IT Infrastructure, delivery Capabilities and
innovative solutions.
As per web site:
Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (BANK- I), Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. and other four PSU companies, i.e. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 2814.600 Millions with the
public holding (other than promoters) at 56.86 %.
The Bank's Registered Office is at Ahmedabad and its Central Office is located
at Mumbai. Presently the Bank has a very wide network of more than 510 branch
offices and Extension Counters. The Bank has a network of over 2200 ATMs
providing 24hrs a day banking convenience to its customers. This is one of the
largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve
excellence.
Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, bank.Bank was set up with a capital of Rs. 115 Millions, with BANKcontributing Rs. 1000.000 Millions, LIC - Rs. 75.000 Millions and GIC and its four subsidiaries contributing Rs. 15.000 Millions each.
SUUTI - Shareholding 27.44%
SUUTI is the largest mutual fund in India. SUUTI presently occupies a special position in Indian capital market. With a servicing and distribution network of more than 53 branch offices, 320 Chief Representatives and about 90,000 agents, BANKprovides the complete range of services to its investors.
Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.
Core Values
Customer Satisfaction through Providing quality service effectively and efficiently Smile, it enhances the face value" is a service quality stressed on Periodic Customer Service Audits Maximisation of Stakeholder value
Success through Teamwork, Integrity and People Their Policy
Policy on Collection of
Local and Outstation Cheques
Code of Bank's Commitment to Customers
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The Draft Red Herring Prospectus has been hosted on this website as prescribed under Clause 5.6.2(ii) of the SEBI (Disclosures and Investor Protection) Guidelines, 2000 ("SEBI DIP Guidelines"). Bank Limited, the Book Running Lead Managers has taken all necessary steps to ensure that the contents of the Draft Red Herring Prospectus as appearing on this site are identical to the Draft Red Herring Prospectus filed with SEBI in accordance with SEBI (DIP) Guidelines. You are reminded that documents transmitted in electronic form may be altered or changed during the process of transmission and consequently Bank Limited nor any of its affiliates accept any liability or responsibility whatsoever in respect of alterations or changes which have taken place during the course of transmission of electronic data. Bank Limited will not be responsible for any loss or damage that could result from interception and interpretation by any third parties of any information being made available to you through this site.
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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.41.73 |
|
UK Pound |
1 |
Rs.83.11 |
|
Euro |
1 |
Rs.56.50 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|