MIRA
INFORM REPORT
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Report Date : |
06.10.2007 |
IDENTIFICATION DETAILS
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Name : |
BANK OF |
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Registered Office : |
Lokmangal, 1501, Shivajinagar, Pune - 411 005, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1935 |
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Legal Form : |
A Government of India Bank. |
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Line of Business : |
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 : |
Large |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a reputed Bank of the Government of India engaged in all kinds of banking activities. The Bank is making steady progress in its performance. The Bank’s trade relations are fair. Payments are correct and as per commitments. It can be considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Lokmangal, 1501, Shivajinagar, Pune - 411 005, |
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Tel. No.: |
91-20–2553731/2322733/2322735/28/32 /25511360 |
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Fax No.: |
91-20-2553246/2323924/2322581/ 25513122 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. M D Mallya |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. P. N. Deshpande |
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Designation : |
Officer Director |
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Name : |
Mr. A. V. Dugade |
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Designation : |
Executive Director |
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Name : |
Mr. A Ali Azizi |
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Designation : |
Director(PartTime NonOfficial) |
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Name : |
Mr. A L Patil |
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Designation : |
Director |
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Name : |
Mr. Anand Kamalnayan Pandit |
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Designation : |
Director |
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Name : |
Mr. S C Bhargava |
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Designation : |
Director |
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Name : |
Mr. Rajiv Madhok |
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Designation : |
Executive Director |
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Name : |
Mr. Tarun Bajaj |
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Designation : |
Govt. Nominee Director |
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Name : |
Mr. S.K. Gogia |
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Designation : |
R.B.I. Nominee Director |
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Name : |
Mr. D.R. Tuljapurkar |
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Designation : |
Workman Employee Director |
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Name : |
Ms. P. Bolina |
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Designation : |
Govt. Nominee Director |
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Name : |
Mr. H.R. Khan |
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Designation : |
RBI Nominee Director |
KEY EXECUTIVES
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General Manager : |
Mr. R.D. Velankar Mr. A. S. Banerjee Mr. B. K. Piparaiya Mr. M.A. Sardesai Mrs. Mr. V. Kannan Mr. M. S. Joshi Mr. K. H. Waze Mr. V.E. Dalvi Mr. A.T. Halasgikar Mr. V. Y. Chhapekar Mr. K. Parthsarthy (Upto 29-04-2006) Mr. V.V. Karandikar (Upto 31-07-2006) Mr. M.P. Kale (Upto 31-12-2006) Mr. S.R. Joshi (Upto 31-01-2007) |
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Name : |
Mr. S. Mohanty |
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Designation : |
Chief Vigilance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Government of |
330520000 |
76.77 |
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Banks, FIs and Insurance companies |
18626120 |
4.33 |
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Mutual funds |
1100000 |
0.26 |
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FIIs, NRIs and OCBs |
31244548 |
7.26 |
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Domestic companies |
4677662 |
1.09 |
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Indian Public |
44351670 |
10.29 |
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Total |
430520000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Banking activities |
GENERAL INFORMATION
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No. of Employees : |
13893 [4,291 officers, 6,674 clerks and
2,928 sub staff] |
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Bankers : |
Reserve Bank of |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
M.
Mittal & Aggarwal Chartered
Accountants Jagdish
Chand & Company Chartered
Accountants S.K.
Mehta & Company Chartered
Accountants C.
R. Sagdeo & Company Chartered
Accountants Shah
Baheti Chandak & Company Chartered
Accountants |
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Associates/Subsidiaries : |
Magic e-money Limited 46, Gurukripa, Mukundnagar, Pune – 411 037 Tel No. 91-20-5653024 / 34 / 44 E Mail : magicemoney@vsnl.com Website : http://www.magicemoney.com Subject is incorporated on 23rd November, 2000
and commenced business on 03.01.2001. It
is a joint venture company floated by Bank of Maharashtra in association with
Magic Software Enterprises ( Subsidiaries The Maharashtra Executor & Trustee Company Limited - It was incorporated in the year 1946. The bank not only deals with deposits and advances but with persons and it is closely associated with the clients affairs as a friend and guide. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000000 |
Equity Shares |
Rs. 10/- each |
Rs. 15000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
330520000 |
Equity Shares |
Rs. 10/- each |
Rs. 3305.200
Millions |
|
100000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1000.000
Millions |
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Total |
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Rs. 4305.200 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
CAPITAL AND LIABILITIES |
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Share Capital |
4305.200 |
4305.200 |
4305.200 |
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Reserves and Surplus |
13113.660 |
11416.238 |
11119.000 |
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Deposits |
339193.385 |
269061.875 |
288441.700 |
|
Borrowings |
2009.008 |
4883.804 |
7211.400 |
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Other Liabilities and Provisions |
31473.474 |
22478.020 |
17903.600 |
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GRAND TOTAL
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390094.727 |
312145.137 |
328980.900 |
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ASSETS |
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Cash and balances with Reserve bank of |
22702.036 |
18733.285 |
21293.200 |
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Balances with banks and Money at call and short notice |
10711.805 |
5154.047 |
17440.200 |
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Investments |
112983.955 |
113542.619 |
14479.500 |
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Advances |
229193.849 |
164697.255 |
130616.400 |
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Fixed Assets |
2148.990 |
1842.147 |
1829.000 |
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Other assets |
12354.092 |
8175.784 |
13006.600 |
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GRAND TOTAL |
390094.727 |
312145.137 |
328980.900 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Interest Earned |
27220.400 |
24744.500 |
23676.900 |
|
Other Income |
4342.100 |
3100.000 |
4401.500 |
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TOTAL
|
31562.500 |
27844.500 |
28078.400 |
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Interest expended |
16278.400 |
15028.900 |
14860.300 |
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Operating Expenses |
9114.300 |
9149.400 |
7269.200 |
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Provisions & Contingencies |
3451.400 |
3158.300 |
4177.700 |
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TOTAL
|
28844.100 |
27336.600 |
26307.200 |
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Net Profit for the year |
2718.400 |
507.900 |
1771.200 |
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Prior Year Adjustments |
0.000 |
0.000 |
0.000 |
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Profit brought forward |
408.400 |
312.300 |
4.700 |
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TOTAL
|
3126.800 |
820.200 |
1775.900 |
QUARTERLY RESULTS
|
PARTICULARS |
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30.06.2007 |
|
Type |
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1st
Quarter |
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Sales Turnover |
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|
8187.100
|
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Other Income |
|
|
541.100
|
|
Total Income |
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|
8728.200
|
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Total Expediture |
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2363.000
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Operating Profit |
|
|
6365.200
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Interest |
|
|
5122.400
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Gross Profit |
|
|
1242.800
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Depreciation |
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0.000
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Tax |
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|
427.000
|
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Reported PAT |
|
|
815.800
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Credit Deposit Ratio |
64.76 |
52.97 |
44.84 |
|
Investment Deposit Ratio |
37.24 |
46.34 |
51.68 |
|
Cash Deposit Ratio |
6.81 |
7.18 |
12.06 |
|
Interest Expended/Interest Earned |
59.80 |
60.74 |
62.76 |
|
Other Income/Total Income |
13.76 |
11.13 |
15.68 |
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Operating Expense/Total Income |
28.88 |
32.86 |
25.89 |
|
Interest Income/Total Funds |
7.76 |
7.72 |
7.28 |
|
Interest Expended /Total Funds |
4.64 |
4.69 |
4.57 |
|
Net Interest Income/Total Funds |
3.12 |
3.03 |
2.71 |
|
Non Interest Income/Total Funds |
1.24 |
0.97 |
1.35 |
|
Operating Expense/Total Income |
2.60 |
2.86 |
2.23 |
|
Profit Before Provisions/Total Funds |
1.76 |
1.14 |
1.83 |
|
Net Profit/Total Funds |
0.77 |
0.16 |
0.54 |
|
Return On Net Worth(%) |
16.68 |
3.32 |
12.14 |
LOCAL AGENCY FURTHER INFORMATION
Business
The Bank undertakes all types of banking business. The bank
is entrusted with the lead responsibility of six districts in the state of
The bank has fine tuned its services to cater to the needs of the comman man and incorporated the latest technology in banking offering a variety of services.
The bank excels in social banking.
It has a good share of priority sector lending having 48% of its branches in
rural areas.
MANAGEMENT
DISCUSSION AND ANALYSIS:
MACRO ECONOMIC ENVIRONMENT:
Gross Domestic Panel (GDP):
The DIDP registered a growth of 9.2 per cent in 2006-07 as per the advance
estimates of CSO, as against 9.0 per cant for the previous year. The overall
macroeconomic fundamentals are robust, particularly with tangible progress
towards fiscal consolidation and a strong balance of payments position. With an
upsurge to investment, the outlook is distinctly upbeat The performance of
The industry grew at 10.2 per cent as against 8.0 per cent in the previous
year. The manufacturing sector remained the key driver or Industrial growth dad
contributed the must with a growth of 11.3 per cent coupled by an impressive
growth in the electricity, gas and water supply sectors. The services sector
also achieved higher growth of 11.0 per cent compared to 10.3 per cent in the
previous year.
The agriculture sector saw a decrease in growth in the year at the rate of 27
per cent in comparison to the earlier figure of 6.0 per cent, But the
production of food grains during 2006-07 is likely to be 211.8 million tones
showing an increase of 15 per cent over the previous year.
The share of agriculture sector, industry rector and services sector in the
real GDP have been 18.5 per cent, 19.6 Per cent and 61.9 per cent
consecutively.
Gross Domestic Sewing PODS), as par cent of GDP at current market prices, to
road to 32.4 per coal in 2005-06 from 31.1 per cent in 2004-05. The GDS of
house hold sector has been 223 per cent during 2005-06. The rate of investment
increased by 23 per cent to reach 33.8 per cent of GDP in 2005-06.
Inflation:
The 52 weeks average of WPI inflation rare increased as 5.4% which is higher
than the year before figure of 4.4%. The year on year WPI was 5.7 per cant as
on 31st March 2007. The inflation figures were dominated by the rise in prices
of the primary products, with the prices of the manufactured products also
along with the customary price movements of petroleum products.
Among the major groups, prices of primary articles led by wheat, pulses, milk,
oilseeds and raw colon posed upward pressures on inflation during 2006-07.
Manufactured products inflation increased to 5.8 per cent as on 31st March 2007
from 1.9 Per cent a year ago.
Inflation at the global level was a can, sc of concern for major economies
which got reflected in the hardening of the lending rates by their Central
Banks. However, the level remains relatively modest in several economies in
Bank Credit:
As on the last
reporting Friday of March 07, bank credit stood at Rs.19231920 Millions spore,
reflecting a rise of Rs.4161150 Million civic during the year.
The CD ratio
stood at 74.13 per cent. The credit expansion which was anvil 31% at the start
of the year moderated during the later part of the year.
As regards
credit, the SCBs registered a growth of 27.6 per cent as against 30.8 per cent
a year ago. About 35 per cent of incremental non-food credit was absorbed by
industry and another 12 per cent by agriculture. 29 per cent of the incremental
a lead credit was taken up as Personal loans, mainly as loans to the housing
sector and 'other retail loans'. The note worthy thing is that the loans to
commercial real estate, which increased by 663 per cent, on year on year bass
absorbed 4.1 per cent of incremental non-food credit.
Pool Credit:
Food Credit
recorded a rise of Rs. 58300 Millions as on 30.03.07 over the corresponding
period last year and the outstanding level reached to Rs. 465200
Millions.
Non-food Credit:
The non-food
credit stood at Rs.18766720 Millions as on 30.03.07 as against Rs.14663870
Millions a year ago. The growth rate was 28 per cent during 2005-06 as against
31.8 per cent during the previous year.
EXTERNAL DEVELOPMENTS:
Exports:
India's merchandise exports (in US dollar terms and on customs basis), which
have been growing continuously at a high pace of more than 20 percent since
2002-03, continued its momentum and grew by 23.4 par cent to cross the US$100
billion mark in 2005-06. exports during 2006-07, which gained momentum after a
slow start, reached US$89.5 billion with growth of 36.3 per cent on provisional
to provisional (POP) basis.
Imports:
In the current year, imports to grow, though at a slightly decelerated pace due
to the fall in gold and silver imports. The 36.3 per cent growth in imports in
April-December 2006 was substantially contributed by the growth in petroleum
imports at 39.2 per cent due to high erode oil prices. While the trend of
negative growth of gold and silver imports, which started in December 2005,
continued even in the first few months of the current year, there has been a
reversal in this mend from August 2006 with a very high growth of around 182
per cent in September 2006. This as due to the softening of international gold
prices which fell from a high of $675.4 per troy ounce in May 2006 to $598.2
per troy ounce in September 2006, coupled with the festival demand both for
domestic consumption said for exports.
With gold and
silver import growth at 15.5 per cent in April-December 2006, non-POL import
growth also picked up to 18.7 per cent.
Trade Deficit:
Trade deficit
reached a record high of US$46 billion (as per customs data) in 2005-06 and
US$41.7 billion in the first nine months of the current year. With rapid growth
in non- POL imports, even the dam. POL trade balance turned negative to
US$(-)5.3 billion in 2004-05, made more than doubled to 2005-06 to US$(-)14.0
billion. Non-POL trade deficit in the first seven months of the current year al
Forex Reserves:
PERFORMANCE OF THE BANK:
During the year
the Bank has been able to show a good account of inch on all the business
parameters. There has been a robust growth in overall business aided by a
strong growth both on deposit and the credit front as well as non-interest
income and high recoveries, As a consequence, the bottom line has improved
considerably both at the operating and net levels resulting into better
efficiency ratios. An analysis of the performance of the Bank during the year
is given hereunder.
FINANCIAL PERFORMANCE:
Capital and Reserves:
The capital of
the Bank stood at Rs. 4305.200 Millions as an 31.03.07 and there was no change
in the capital during the year.
The net worth
of the Bank increased to Rs.17156.100 Millions as on 31.03.07 as against
Rs.15445.100 Millions as on 31.03 06 due to plough back of profits.
During the
year, the Bank issued by way of private placement, Unsecured Redeemable
Non-Convertible Subordinate Tier-II Bonds of Rs.2250 Millions for a period of
10 years and Upper Tier-II Bands of Rs.6500 Millions in three tranches for a
period of 15 years to augment capital funds.
Capital Adequacy Ratio (CAR):
As on 31.03.07,
the CAR of the Bank stood at 12.06 per cent as against 11.27 per cent for last
year. The minimum stipulated norm by RBI is 9 per cent. The Tier I capital was
6.03 per cent.
Income and Expenditure:
There has been
a significant increase in the income level due to growth in core operations, an
increase of Rs.4603.900 Millions which translates into a growth of 18.22 per
cent.
The credit book
has witnessed an impressive growth of 37.36 per cent and hence the interest on
loans and advances has reflected a growth 44.04 per cent over the pension,
year. The interest income has increased to Rs.17047.900 Millions during the
year compared to Rs.11835.400 Millions during previous year.
The low cost
deposits have shown an impressive growth which constitute 43.16% of total
deposits and as a consequence the cost of deposits has bean low at 5.12 per
cent as against 5.16 per cent last year. Yield on Advances has improved to 8.89
per cent as against 8.27 par cent previous year. Yield on investments was 8.55
per cent during the year as against 8.94 per cent during the previous
year.
Non-interest
income excluding treasury gains also showed a substantial growth of 407.37 per
cent over persons year.
The total expenditure was Rs.27152.500 Millions as against Rs.24759 Millions
during the previous year.
Profitability:
The Bank was able to exhibit a robed growth in its business working which grew
by 30.46 per cent and as a result the operating profit increased to Rs.6132
Millions as against Rs.3650.700 Millions for the previous year. This increase
has been possible due to a substantial increase to credit, non-interest income
and recoveries.
The net profit
after making all the provisions registered a growth of 435.22 per cent to
Rs.2718.900 Millions as against Rs.507.900 Millions for the last year.
The improved
earnings have also had a positive impact on the various efficiency parameters.
Return on Assets (ROA) has increased to 0.76 per cent compared 0.16 per cent
during previous year. The Earnings Per Share (EPS) has increased to Rs.631 as
against Rs.1.18 during previous year.
The book value
per share has gone upto Rs.34.81 as compared to Rs.31.34 during the previous
year.
BANKS
OPERATIONS:
Business:
The total business of the Bank has increased to Rs.573820 Millions, registering
a substantial growth of 30.46 per cent from the level of Rs.439860 Millions as
on 31.03.06.
Resources:
The total deposits have action to Rs.339190 Millions as against Rs.269060
Millions. The demand deposits have risen to Rs.146390 Millions from Rs.115250
Millions as on 31.03.06, recording a growth of 27.02 per cent no key feature
has been that the share of demand deposits to total deposits continues to be
over 43 per cent.
Credit Deployment:
Credit
deployment is undertaken in conformity with the various directives and
guidelines issued by the Reserve Bank of
The Bank has a
flexible lending policy, which provides for meeting changes in economic
scenario, competitive element in banking and reforms introduces from time to
time. The policy enunciates thrust areas, risk factors and also sets out credit
exposure limits. The credit policy was last reviewed in July 2006.
The Bank has
maintained a diversified credit portfolio and has provided credit to the major
sectors such as industry, agriculture, exports, etc.
The Bank continued
its efforts in financing manufacturing and infrastructure projects.
There has been
a strong growth in credit portfolio, an increase of 37.37 per cent over the
last year, attaining a gross advances figure of Rs.234620 Millions from
Rs.170800 Millions as of 31.03.06.
The net
advances also increased from Rs.164697.200 Millions as on 31.03.06 to
Rs.229193.800 Millions recording a growth of 39.16 per cent.
The credit
deposit ration has improved to 69.17 per cent from 63.48 per cent.
Retail financing:
The Bank has
been focussing on retail credit has been providing an array of products to the
customers. During the year new products were also introduced and suitable
changes were incorporated on the existing loan schemes so as to make them
customer friendly as well as competitive. The retail grew by 60.74 per cent to
Rs.36827.600 Millions which constitutes 15.7 per cent of the total
advances.
Housing Loans:
To promote the
housing in rural and urban areas, the Bank has considered housing loans. The
Bank has also tied up with a few builders and developers to market the product.
The Bank has also been participating in various exhibitions conducted on real
estate. Housing loans are also made available to NRIs. The Bank is also
implementing Golden Jubilee Rural Housing Finance Scheme in rural areas with a
population not exceeding 50,000 (as per 1991 census). The Bank's retail housing
loans increased from Rs.15274.400 Millions to Rs. 21658.900 Millions,
registering a growth of 41.80 per cent over the previous year.
Educational Loan Scheme:
Under the
educational loan scheme the Bank has been proactive and giving loans to the
student community and has entered into tie ups with educational institutions.
Total loans disbursed were to the extent of Rs.1684.600 Millions as on
31.3.07.
Borrowings:
The borrowings of the Bank as on 31.3.07 stood at Rs.1223.500 Millions,
which included refinance of Rs.2019 Millions, availed from NABARD, SIDBI and
NHB.
The total
borrowings as on 31.03.06 were Rs.4883.800 Millions.
Investments:
Since the Bank's focus was to increase credit port folio, the investments have
registered a marginal decline over previous year. The Bank has also shifted its
securities at the beginning of the year from Available For Sale (AFS) category to
Held To Maturity (HTM) category. As on 31.3.07, the HTM category formed 79.29
per cent of total investments. The Investments of the Bank as on 31.03.07 stood
at Rs.112980 Millions against Rs.113540 Millions during the previous
year.
Foreign Exchange Business and Export
Finance:
The Bank
achieved a Merchant Turnover of Rs.151410 Millions during 2006-07, registering
a rise of 30 per cent over the previous year. While Exports & inward
Remittances accounted for Rs.77890 Millions i.e., 51.44 per cent of the total
merchant business, Imports & Outward Remittances accounted as on 31.3.07
was Rs.73520 Millions of the turnover. Export Credit outstanding as on 31.03.07
was Rs.8900 Millions as against Rs.5190 Millions as on 31.03.06 registering a
growth rate of 71 per cent over the previous year. The demand for foreign
currency funds from customers was met by Bank from its own sources. 25 branches
are handling foreign exchange business and all these branches are provided with
SWIFT connectivity.
With a view to
providing update to exporters and importers the Bank organized customer meets
and exporter seminars at various centres. A weekly forex news letter providing
market update to forex clients has also been introduces by the Bank. Forex
income during the year was Rs.580 Millions and income from commission business
was Rs.160 Millions.
Asset Performance:
The Bank has a
Recovery Management Policy which lays down the broad guidelines for effective
management of non-performing advances. The policy was reviewed on 7th July,
2006.
The Bank has
implemented provisions of enforcement of security under SARFAESI Act by issuing
2134 notices to defaulting borrowers involving an amount of Rs.3540.300
Millions, expedited recovery process with Debt Recovery Tribunals, conducted 1774
recovery camps across the country. The Bank has also conducted Seminars for
effective implementation of recovery tools to speed up the recovery of
Rs.3511.300 Millions in NPAs during the year as against Rs.1780 Millions during
the previous year. The cash recovery includes Rs.1917.900 Millions in ledger
balance of NPAs during the year as against Rs.1279.900 Millions during the
previous year. This performance resulted in reduction of gross NPAs from
Rs.9440.800 Millions to Rs.8202.800 Millions as on 31.03.07 and net percentage
terms, the gross NPA ratio has come down to 3.50 per cent (against 5.53 per
cent of last year) and net NPA ratio has come down to 1.21 per cent (against
2.03 per cent of last year).
Non-interest income:
The
non-interest income has been a key focus area for the Bank. During the year,
the non-interest income went up by Rs. 2128.100 Millions translating into a
growth of 407.37 per cent. Even after taking out the treasury profit the income
has grown by 44 per cent. The Bank has been looking at new avenues to shore up
the income and has entered into banassurance and mutual fund distribution. The
non-interest income comprises 8.87 per cent of total income which has gone up
from 2.07 per cent during the previous year.
Merchant Banking:
The Bank handled 30 issues of Commercial Papers during the year and acted as
Collecting Bankers for 1 Rights Issue and for 1 Private Placement Bond Issue. A
new activity related to Merchant Banking. 'Fair Valuation of equity Shares' has
been started for the first time. The Bank successfully completed two
assignments in this activity.
Depository Services:
The Bank has
been a depository participant (DP) of Central Depository Services Limited
(CDSL) since September 1999. During the year, 2,827 new Demat accounts were
opened. Total number of Demat accounts opened till 31.03.07 was 23,272. With
the establishment of MAHANET, direct processing of debit instructions are
accepted through 114 branches. The Bank has initiated steps to offer the
services through all the 500 branches under WAN.
Banassurance:
The Bank entered into Banassurance Business in tie up with United India
Insurance Company Limited, for Non-Life and Life Insurance Corporation of
Branch
Network and Expansion:
With the opening of 45 new branches including conversion of 16 extension
counters during 2006-07, the total branch network as on 31.03.07 comprised of
1,345 branches and 13 extension counters spread over 22 states and 2 union
territories.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.39.49 |
|
|
1 |
Rs.80.41 |
|
Euro |
1 |
Rs.55.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
55 |
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. |
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 |
|