MIRA
INFORM REPORT
|
Report Date : |
17.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
INDUSIND BANK LIMITED |
|
|
|
|
Registered Office : |
2401, Gen. Thimmayya Road,
(Cantonment), Pune – 411001, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
31.01.1994 |
|
|
|
|
Com. Reg. No.: |
76333 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L65191MH1994PLC076333 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI06277F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACI1314G |
|
|
|
|
Legal Form : |
a Public Limited
Liability Bank. The banks shares are
listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Corporate Banking
Consisting of Working Capital Finance, Trade Service and Cash Management
Treasury. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed bank having satisfactory
track. 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. The bank can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
2401, Gen. Thimmayya Road,
(Cantonment), Pune – 411001, Maharashtra, India |
|
Tel. No.: |
91-9520-6343201 |
|
Fax No.: |
91-9520-6343241 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
701, Solitaire Corporate Park,
167 Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400093, India |
|
Tel. No.: |
91-22-66412200 |
|
Fax No.: |
91-22-66412224 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Retail Banking Division (Chennai) : |
Sudarshan Building, Old No.
86, New No. 92, Chamiers Road, Chennai – 600018 |
DIRECTORS
|
Name : |
Mr. R. J. Seshasayee |
|
Designation : |
Chairman |
|
Qualification : |
B. Com, ACA |
|
Experience : |
Accountancy and Finance |
|
Date of Appointment : |
03.05.2007 |
|
Name of
companies in which director : |
·
Ashok Leyland Limited, Managing Director ·
Ashley Holdings Limited ·
Ashley Investments Limited ·
Ashley Transport Services Limited, Chairman ·
Ennore Foundries Limited ·
Irizar TVS Limited ·
Hinduja Group (India) Limited ·
Ashley Airways Limited Chairman |
|
|
|
|
Name : |
Mr. T. Anantha Narayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Ram Buxani |
|
Designation : |
Director |
|
Qualification : |
Ph. D. |
|
Experience : |
International Business |
|
Date of Appointment : |
14.01.2000 |
|
Name of
companies in which director : |
·
Cosmos- ·
Sanjay Weaving Mills Private Limited ·
Sanjay-Gulf Industries Private Limited |
|
|
|
|
Name : |
Mr. R. Sundararaman |
|
Designation : |
Director |
|
Date of Birth/Age : |
63 Years |
|
Qualification : |
M.Com, CAIIB, Former Dy. |
|
Experience : |
40 Years |
|
Date of Appointment : |
30.10.2002 |
|
Name of
companies in which director : |
Bangalore Stock Exchange Limited |
|
|
|
|
Name : |
Mrs. Kanchan U. Chitale |
|
Designation : |
Director |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
B.Com, FCA, Practising Chartered Accountant |
|
Experience : |
29 Years |
|
Date of Appointment : |
31.01.2003 |
|
Name of
companies in which director : |
·
Harkan Management Consultancy Services Private Limited |
|
|
|
|
Name : |
Dr. T. T. Ram Mohan |
|
Designation : |
Director |
|
Date of Birth/Age : |
52 Years |
|
Qualification : |
B. Tech (NT Mumbai), PGDM (MM Calcutta) Ph. D (Sterns School, New
York, Professor, Finance and Accounting, MM Ahmedabad |
|
Experience : |
27 Years |
|
Date of Appointment : |
16.01.2006 |
|
Name of
companies in which director : |
·
Brics Securities Limited ·
Gujarat Narmada Valley Fertilizers Company Limited ·
Marwar Hotels Limited ·
Rail Vikas Nigam Limited ·
International Asset Reconstruction Company Private Limited |
|
|
|
|
Name : |
Mrs. Pallavi S. Shroff |
|
Designation : |
Director |
|
Date of Birth/Age : |
50 Years |
|
Qualification : |
B.A. [Economics Hons.], M.M.S. LLB, Practising Lawyer |
|
Experience : |
24 Years |
|
Date of Appointment : |
13.06.2006 |
|
Name of
companies in which director : |
·
Abhishek Industries Limited ·
Juniper Hotels Private Limited ·
Kotak Mahindra Old Mutual ·
Life Insurance Limited ·
BAG Films Limited ·
Maruti Udyog Limited |
|
|
|
|
Name : |
Mr. Bhaskar Ghose |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S. Nagarajan |
|
Designation : |
Joint Managing Director |
|
Qualification : |
B. Com, ACA, ACS |
|
Experience : |
Accountancy and Finance |
|
Date of Appointment : |
28.08.2004 |
|
Name of
companies in which director : |
·
Induslnd
Information Technology Limited |
|
|
|
|
Name : |
Mr. Premchand Godha |
|
Designation : |
Director |
|
Qualification : |
B. Com, ACA |
|
Experience : |
Finance and SSI (Practical Experience) |
|
Date of Appointment : |
31.10.2006 |
|
Name of
companies in which director : |
·
Ipca Laboratories Limited ·
Vasant Investments
Corporation Limited ·
Brescon Corporate Advisors Limited ·
Kaygee Investments Private Limited ·
Gudakesh Investments and Traders Private Limited ·
Paranthapa Investments and Traders Private Limited. ·
Kaygee - Loparex India Private Limited |
|
|
|
|
Name : |
Mr. Ajay Hinduja |
|
Designation : |
Director |
|
Qualification : |
Degree in Economics |
|
Experience : |
Banking and Finance |
|
Date of Appointment : |
31.11.2006 |
|
Name of
companies in which director : |
Hinduja Group (India) Limited |
|
|
|
|
Name : |
Mr. S C Tripathi |
|
Designation : |
Director |
|
Qualification : |
M. Sc., LIB, P.
G. Diploma in Development (Cantab), AIMA Diploma in Management |
|
Experience : |
Rural Economy and
Cooperation |
|
Date of Appointment : |
|
|
Name of
companies in which director : |
·
IL and FS
Infrastructure Development Corporation ·
Reliance
Capital Asset Management Co. Limited ·
Modi Rubber
Limited (BIFR Special Nominee Director) |
KEY EXECUTIVES
|
Name : |
Mr. Haresh Gajwani |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Suresh T. Viswanathan |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. S.V. Zaregaonkar |
|
Designation : |
Exec. Vice President and CFO |
|
|
|
|
Name : |
Mr. N. Suresh Pai |
|
Designation : |
Exec. Vice President - Non-Finance Support Services |
|
|
|
|
Name : |
Mr. J. Moses Harding |
|
Designation : |
Exec. Vice President & Head - Wholesale Banking |
|
|
|
|
Name : |
Mr. N. Sampath Kumar |
|
Designation : |
Exec. Vice President - Retail Assets Division |
|
|
|
|
Name : |
Mr. S.V. Parthasarathy |
|
Designation : |
Exec. Vice President - Retail Operations |
SHAREHOLDING
PATTERN
(As on 31.03.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Foreign |
|
|
|
Bodies Corporate |
90999984 |
31.34 |
|
|
|
|
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ Axis |
4650712 |
1.60 |
|
Financial Institutions / Banks |
58482 |
0.02 |
|
Insurance Companies |
3215182 |
1.11 |
|
Foreign Institutional Investors |
60826228 |
20.95 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies Corporate |
57369993 |
19.76 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.1 Millions |
41824945 |
14.41 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.1
Millions |
13459125 |
4.64 |
|
Any Other (specify) |
|
|
|
i) Clearing member |
768758 |
0.26 |
|
ii) Non-
Executive Directors |
680 |
0.00 |
|
iii) Non-
Executive Directors (Non-resident & Foreign national) |
83900 |
0.03 |
| iv) Overseas Corporate Bodies |
6854193 |
2.36 |
|
v) Non Resident Indians |
10205454 |
3.52 |
|
Others |
29490300 |
0.00 |
|
Total |
319807936 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Corporate Banking
Consisting of Working Capital Finance, Trade Service and Cash Management
Treasury. |
GENERAL
INFORMATION
|
No. of Employees: |
2613 |
|
|
|
|
Bankers : |
Reserve Bank of India |
|
Banking Relations
: |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
Address : |
Express Towers, 6th Floor,
Nariman Point, Mumbai – 400021, Maharashtra, India |
|
|
|
|
Associates : |
·
Ashley Holdings Limited ·
Ashley Investments Limited ·
Induslnd Information Technology Limited. ·
Allfin Services and Solutions Private Limited ·
Ashley Transport Services Private Limited ·
Allfin Marketing Services Private Limited ·
Allfin Insurance Specialities Private Limited ·
Allfin Distribution Private Limited ·
IBL Services and Solutions Private Limited |
|
|
|
|
Subsidiaries : |
·
ALF Insurance Services Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs.4000.000 Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
319807936 |
Equity Shares |
Rs.10/- each |
Rs.3198.079
Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
319807936 |
Equity Shares |
Rs.10/- each |
Rs.3198.079
Millions |
|
384200 |
Add :Forfeited Equity Shares |
Rs.5/- each |
Rs.1.921
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.3200.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
Capital
|
3200.000 |
2905.097 |
2905.097 |
|
Reserves
and Surplus |
7367.881 |
5755.492 |
5387.315 |
|
Deposits
|
176448.048 |
150063.014 |
131142.762 |
|
Borrowings
|
5925.076 |
5349.498 |
6106.199 |
|
Other
Liabilities & Provisions |
16330.401 |
12152.096 |
10678.679 |
|
TOTAL
|
209271.406 |
176225.197 |
156220.052 |
|
|
|
|
|
|
|
|
|
|
|
Cash
& Balances with RBI |
10211.690 |
6040.893 |
6360.839 |
|
Balances
with Banks & money at Call & Short Notice |
15742.280 |
8764.150 |
5185.101 |
|
Investments
|
58916.550 |
54099.043 |
40691.708 |
|
Advances
|
110841.997 |
93104.622 |
89997.530 |
|
Fixed
Assets |
3695.699 |
3395.879 |
3244.957 |
|
Other
Assets |
9863.190 |
10820.610 |
10739.917 |
|
TOTAL
|
209271.406 |
176225.197 |
156220.052 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Interest
Earned |
15002.507 |
11882.800
|
11343.900
|
|
Other
Income |
2441.324 |
2304.400
|
2570.800
|
|
TOTAL
|
17443.831 |
14187.200 |
13914.700 |
|
|
|
|
|
|
Interest
expended |
12288.469 |
8731.900
|
7188.900
|
|
Operating
Expenses |
3439.562 |
3209.700
|
2713.500
|
|
Provisions
& Contingencies |
1033.633 |
1877.500
|
1910.800
|
|
TOTAL
|
16761.664 |
13819.100 |
11813.200 |
|
|
|
|
|
|
Net
Profit for the year |
682.000 |
368.100
|
2101.500
|
|
Prior
Year Adjustments |
(10.000) |
00.000
|
(46.300)
|
|
Profit
brought forward |
1858.900 |
808.100
|
537.500
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
|
|
|
|
|
Sales
Turnover |
4318.400 |
4604.800 |
5016.000 |
|
Other
Income |
637.600 |
649.900 |
645.300 |
|
Total
Income |
4956.000 |
5254.700 |
5661.300 |
|
Total
Expenditure |
1008.900 |
1168.000 |
1274.600 |
|
Operating
Profit |
3947.100 |
4086.700 |
4386.700 |
|
Interest |
3744.400 |
3747.500 |
4020.400 |
|
Gross
Profit |
202.700 |
339.200 |
366.300 |
|
Depreciation |
0.000 |
0.000 |
0.000 |
|
Tax |
70.500 |
115.800 |
115.900 |
|
Reported
PAT |
132.200 |
223.400 |
250.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Credit
Deposit Ratio |
62.46 |
65.11 |
67.04 |
|
Investment
Deposit Ratio |
34.61 |
33.71 |
35.17 |
|
Cash
Deposit Ratio |
4.98 |
4.41 |
8.11 |
|
Interest
Expended/Interest Earned |
81.91 |
73.48 |
63.37 |
|
Other
Income/Total Income |
17.39 |
16.24 |
18.48 |
|
Operating
Expense/Total Income |
22.67 |
22.62 |
19.50 |
|
Interest
Income/Total Funds |
7.78 |
7.15 |
7.41 |
|
Interest
Expended /Total Funds |
6.38 |
5.25 |
4.69 |
|
Net
Interest Income/Total Funds |
1.41 |
1.90 |
2.71 |
|
Non
Interest Income/Total Funds |
1.64 |
1.39 |
1.68 |
|
Operating
Expense/Total Income |
2.14 |
1.93 |
1.77 |
|
Profit
Before Provisions/Total Funds |
1.00 |
1.35 |
2.62 |
|
Net
Profit/Total Funds |
0.35 |
0.22 |
1.37 |
|
Return
On Net Worth(%) |
8.92 |
4.34 |
26.96 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Subject was incorporated in Jan. 1994. It was promoted by IndusInd Enterprises and Finance (IEFL) and five Mauritius based company’s viz. IndusInd International Holdings (IIHL), IndusInd (Mauritius) Holdings (IMHL), IndusInd (IL), IndusInd Investments (IIL) and DeFive Mauritius Holdings (DFMHL).
Subject started as a central forum through which the Non-Resident Indian
community could collectively contribute to India's economic and social
development. It was the first private sector bank to write cross currency
options and has already set up a forex advisory desk to give corporate advice
to its clients. It has also entered into a tie-up with Kredietbank, NV,
Brussels. The banks cost of funds is high because of its network restricted
only to urban areas and dependence on FCNR deposits on which the interest rate
is very high.
Subject has been successfully catering to the needs of a discerning public. As
a high-tech bank, it offers an entire gamut of banking services tailored to
meet the varying requirements. All the branches of the bank are linked via
V-SAT allowing customer’s instant access to all its branches. This also helps
the banks to offer various products such as IndusReach (Anywhere Banking),
Indus Instant (Instantaneous Electronic Transfer of Funds), Access to Money
(online access to ATM's countrywide) and Internet Banking.
The bank has recently acquired clearing bank status for Mumbai Stock Exchange
apart from National and Kolkata Stock Exchange. More-over the bank has set up a
retail banking department to give a boost to the retail activities.
Further the board of directors of the bank in Feb. 2001 approved a scheme of
amalgamation of IEFL with the bank with effect from March 2001. SBI Capital
Markets Limited was appointed to conduct the feasibility study on the merger by
the company and based on their recommendation the merger was approved with
IEFL. Pursuant to the amalgamation the erstwhile shareholder of IEFL Limited is
to be given shares in the ratio of 1:1. During 2001-02 the bank has entered
into a money transfer agreement with Moneygram Internal Limited, Colorado USA.
Indusind Information Technology Limited became subsidiary of the bank. The bank
is taking steps to reduce its stake to 30% from the present holding of 80% as
per the RBI guidelines.
Financial
Performance:
The business of the Bank grew during the year both in deposits and
advances. This year the focus of the Bank was on improving the fee-based income
for which various initiatives have been taken by the Bank.
The operating profit was, however, lower at Rs.2056.700 Millions the
year under review as against Rs.2232.900 Millions in the previous year mainly
due to hardening of interest rates, the Bank's decision not to undertake
securitisation business (in the previous year Bank booked a profit of Rs.418.400
Millions on account of securitisation), and higher operating expenses on
expanded branch network which rose to 170 branches with the opening of 33 new
branches.
The Bank's Net Profit after considering necessary provisions and
contingencies and all expenses was higher at Rs.682.200 Millions as against
Rs.368.200 Millions previous year (an increase of 85.28%) on account of lower
provisions and contingencies in the current year as against previous year. The
Return on Assets (ROA) for the year was 0.34% as compared to 0.22% in the
previous year.
Future
Outlook:
The year 2006-07 the Bank continued its endeavours for
strengthening its network and infrastructure. There are already indications of
benefits arising from the improved infrastructure. In the ensuing year, while
the Bank will endeavour to retain its leadership position in vehicle finance
(wherein higher yield loans are replacing lower yield ones), the thrust will be
on higher growth in other business segments like retail liabilities, other retail
assets and SME sector.
The organizational efforts will be directed towards
achieving high growth in current accounts and savings accounts for meeting the
objective of increasing the share of and broad basing the retail deposit
franchise and thus reducing the overall cost of deposits. This task will be
accomplished by leveraging on the expanded branch network, the pan-India
marketing setup, and through alternate channels like ATMs, Internet Banking,
etc. This strengthened infrastructure will help in tapping the opportunities
for cross-selling and up-selling available with the expanded customer base. For
optimal realization of this potential, the Bank has introduced and has in
pipelined various new products and services.
The Bank's focus on fee-based income has paid dividends.
Moving ahead, the Bank plans to upscale non-interest income through lucrative
revenue streams like foreign exchange business, investment banking, high-end
treasury products, distribution of third-party products like mutual funds and insurance,
international remittances, depository business, commodity business, bullion
operations, etc. For this purpose the Bank is looking at several avenues like
alliances and tie-ups with other service providers, setting up of subsidiaries,
etc.
MANAGEMENT
DISCUSSION AND ANALYSIS
Macro
Economic Scenario - National
The Indian economy maintained its strong performance for the
fourth successive year, recording a real GDP growth rate of 9.2% in 2006-07,
the second highest growth rate achieved since independence. This growth was
largely driven by buoyancy in the industry and services sectors, which grew by
10% and 11% respectively. The services sector continued to contribute almost
three-fourths of the overall GDP growth during the year. The growth in agricultural
sector was, however, lower at 2.7%. The exports sector that grew by 20.9% also
had a significant contribution in the growth momentum. The broad based nature
of the growth points towards the sustainability of the growth rate. The
increase in the savings and investment rate also reinforces the sustainability
of this growth level. The Indian
economy swelled to one trillion US dollars, only the twelfth nation to reach
the milestone.
Inflation, with its roots in supply-side factors, especially
in respect of primary articles and manufactured goods, was accompanied by
buoyant growth of money and credit in the last two years. Liquidity conditions
were largely comfortable upto November 2006. the Wholesale Price Index (WPI)
breaching the 6.5% level. However, RBI measures to quell inflationary
expectations and to contain credit growth succeeded in reining in inflation at
5.74% by the end of the year.
Bank deposit rates increased by 100-300 basis points during
the year across different maturities in tandem with rising interest rates
following several measures taken by RBI to check inflation and regulate credit
flow to sensitive sectors without disrupting credit support for investment.
Capital markets remained buoyant during the year, with
benchmark stock indices touching their all-time highs and the market
capitalization rising to 91% of GDP.
Macro Economic Scenario – Global
The world economy expanded strongly for the fourth year, and
in a broad based manner. While the US economy showed signs of slowing down, the
momentum of growth in Europe and Japan continued unabated. Robust growth in
China and India led the strong macroeconomic performance of Asia and other
emerging and developing countries.
Availability of financial resources, generally benign crude
oil prices, strong commodity prices and abundant global liquidity were the
major factors that pushed growth in the emerging market economies.
Monetary policy authorities the world over are, by and
large, inclined to regard inflation as a major global risk, and remain watchful
about the emergence of excessive volatility in asset prices, underpricing of
risks (including geopolitical risks) and disturbed conditions in currency
markets.
The structure of Indian Banking Industry and recent
developments
Banks in India are dependent, for their resource
requirements, largely on domestic deposits that are predominantly at fixed
rates. Credit expansion continued to be broad based during the year. While the
industrial sector fuelled the credit demand, agriculture also received a higher
share in credit growth reflecting various policy initiatives to enhance the
flow of credit to this sector.
Year-on-year growth in bank credit was robust at 28% on top
of 31.8% in the previous year, while year-on-year deposit growth of scheduled
commercial banks rose to 23% as against 18.1% in the previous year.
Commercial banks' investments in bonds / debentures of
public sector undertakings and the private sector and in commercial paper (CP)
registered an increase of Rs.40020.000
Millions during 2006-07 in contrast to a decline of Rs.132370.000 Millions in
the previous year. Commercial banks invested Rs.74706.000 Millions in
Government paper in contrast to a decline of Rs.2280.000 Millions in 2005-06.
Banking Industry Outlook:
Banks have been able to finance the credit boom by managing
their capital requirements, and have a CRAR of 12% that is considerably higher
than the 9% level stipulated by RBI. The rapid growth prevailing in bank credit
would necessitate further capitalization of banks.
The high degree of business optimism and continuing
investment demand are pointers to prospects of substantial growth in bank
credit. The buoyant performance of businesses has led to significant increase
in incomes of individuals and more employment avenues. Thus, the growth
prospects in retail segment are also expected to be high.
As per the schedule for implementation of Basel II
provisions, foreign banks operating in India and Indian banks having presence
outside India are required to migrate to the standardised approach for credit
risk and the basic indicator approach for operational risk under Basel II with
effect from March 31, 2008. All other scheduled commercial banks are encouraged
to migrate to these approaches under Basel II in alignment with them, but in
any case not later than March 31, 2009.
Bank's Performance during 2006-2007
Business Performance
The performance during the year reflected a significant
improvement of over 85% in the net profit of the Bank at Rs.682.2000 Millions as
compared to Rs.368.200 Millions last year. The operating profit however was
lower at Rs.2056.700 Millions as compared to Rs.2232.900 Millions last year,
even though there has been significant improvement in the fee-based income of
the Bank. This was mainly due to absence of profit on securitisation business
during the year (profit booked last year on account of securitisation was
Rs.418.400 Millions). Besides, operating expenses increased during the year to
Rs.3098.600 Millions from Rs.2806.400 Millions, mainly due to expanded branch
network. In line with the overall increase in interest rate, there was higher
outgo on account of interest expenses. The interest expenditure at Rs.12288.500
Millions as against Rs.8731.900 Millions in the previous year showed an
increase of 41%. Interest spreads were under pressure as interest income did
not pick up in tandem, due to the lag effect.
Operational / Product Performance
Retail Banking
Retail Banking Segment has shown substantial growth during
the current financial year. This has been achieved by adopting customer
segmentation and mapping the products and services to appropriate segments, to
ensure delivery of value-added services.
Retail liability customer base of the Bank has expanded by
31% during the year to Rs.0.605 Million from Rs.0.480 Million customers. Retail
deposits have moved to Rs.60060.000 Millions from Rs.40450.000 Millions, a
growth rate of 48.47%. Retail Advances also grew by 43.3% to Rs.15840.000
Millions from Rs.11050.000 Millions. In respect of fee-based income, the retail
segment recorded an excellent performance, with growth rate of 300%. This was
mainly from initiatives like its Wealth Management activities, distribution of
Mutual Fund and Insurance products and retail sale of 999.9 purity certified
Gold Coins (Suvarna Mudra).
On-line General Insurance policies and On-line Investment
options in mutual funds are some of the facilities now provided to the
customers. The Bank has tied up with a large financial services company so as
to extend Portfolio Management Services to customers. Fee income from Retail
Banking alone has gone up by 174.7% to Rs.611.200 Millions from Rs.222.500
Millions. Under the cards segment, the Bank has introduced Indus Remit Card
aiming at the NRIs and for their dependents for quick remittance. Indus Gift
Card, Their Bank's first Prepaid Card has well been accepted in the market.
Indus Tax Saver Deposit, Indus Premium Deposit and 100-Day deposit scheme have
received good response from the customers.
With a view to enhancing the convenience of retail
customers, several steps were taken to strengthen the channels. Mobile Banking
with Request Alerts and Automatic Alerts added one more channel to their
customers. Delivery through ATMs was made wider with additional services
including Mobile Top-ups and VISA Money Transfer facility.
Vehicle
Finance:
Vehicle Finance Division (VFD) of the Bank extends
asset-backed financing for a wide range of vehicles spanning across heavy
commercial Vehicles, three wheelers, cars, two wheelers, etc. Besides,
specialty construction equipments like tippers, cranes, excavators, and loaders
are also financed. The thrust product during the year was three-wheelers, as
this product line yielded high returns.
The total disbursements made during the year 2006-07 were
Rs.51410.000 Millions to incremental loan accounts numbering 3,36,000. The
focus during the year was to optimize the product mix to maximize yields and at
the same time maintain portfolio quality.
Disbursement for commercial vehicles was of the order of
Rs.32430.000 Millions as against Rs.27720.000 Millions in 2005-06, an increase
of 17% over the previous year. Construction equipment loans disbursement
increased by 33% to Rs.7170.000 Millions from Rs.5390.000 Millions in the
previous year. Two wheeler loans disbursements showed an increase of about 6%
to Rs.71050.000 Millions as against Rs.6730.000 Millions in 2005-06.
Disbursements for cars were strategically kept lower in 2006-07 at Rs.4710.0000
Millions as against Rs.6590.000 Millions in the previous year, due to lower
yield from it.
VFD also earned fee-based income of about Rs.200.000
Millions, primarily through distribution of third-party insurance products. VFD
operations are efficiently supported by state-of-the-art document storage and
retrieval facility at Karapakkam unit that handles loan document processing and
record maintenance.
VFD's data centre, also located at Karappakam, and has
state-of-the-art facilities in terms of data / equipment protection mechanisms
and access rights with sensors to monitor movement within the data centre.
Priority Sector Lending:
The Bank has attained the RBI-prescribed target for total
priority sector advances. Priority Sector advances aggregated Rs.44583.200
Millions at the end of March 2007 and represented 41.52% of The Bank's Net Bank
Credit (NBC) as compared to 35.13% at the end of March 2006. The Bank financed
over 63000 agriculturists, and direct agricultural advances represented 9.36%
of the Bank's NBC at the end of March 2007 compared to 7.34% at the end of
March 2006. Other priority sector advances such as finance to Small Road
Transport Operators and Individual Housing Loans represented 19.77% of the
Bank's NBC at the end of March 2007 as compared to 16.28% at the end of March
2006.
Wholesale
Banking:
With the twin objectives of meeting growing market
competition as well as improving customer profitability, the Bank has
structured its wholesale banking operations into four vertical business lines,
consisting of four Strategic Business Units (SBUs), viz., Corporate Banking
Division, Capital and Commodities Market Division, Treasury and Investments
Division and International Division.
Corporate Banking Division (CBD):
This division caters to the banking and financial needs of
Corporates and Institutions, Small and Medium Enterprises, Cooperative Banks
and Financial Institutions. The objective of the division is to service the
full value chain of customer requirements. The division offers a wide range of
banking and finance solutions to derive the maximum value and earnings from
each customer. The aim is to build a holistic, long-term and mutually
beneficial relationship with its customers through cost-effective and efficient
services, utilising technology solutions where possible.
The structural changes brought into the division by placing
a dedicated manpower structure of Relationship Managers and Product Specialists
has brought in a conspicuous shift in methods of customer acquisition. This has
enabled a significant increase in corporate customer base. The customer base of
the division grew by 26% during the year.
The Liabilities and Transaction Banking Desk focused on
granulation and garnering low cost deposits. Due to persistent efforts, the low
cost deposits of the division grew from Rs.5680.000 Millions to Rs.7080.000
Millions on YOY basis, registering a growth of 25%. The core deposits of the
division grew by 31%, increasing to Rs.93110.000 Millions from Rs.71210.000
Millions. On the transaction banking front, the customer base increased by 129%
with total throughput from these customers registering a growth of 56% over the
previous year's throughput.
The Asset Desk focussed on continuous churning of advances
portfolio so as to exit low yielding relationships and enter into high yielding
relationships. While the full impact of this churning will be witnessed in the
next financial year, the process has improved the yield on advances of the
division. The Asset Desk also focused on building off-balance sheet non-funded
business. The efforts yielded encouraging results and the non-interest income
of the division grew by 75%.
Treasury and Investment Division (TID):
Treasury continued with its significant market presence
during the year under review. The Bank has a fully integrated Dealing Room that
redefined its focus from market segment-based to function-based. This measure
has started yielding results as functional expertise across various markets has
been put to optimal use.
The TID has three distinct functional segments viz.
(a) Corporate Desk, catering to the nefeds of customers and
branches
(b) Trading Desk, engaged in trading in Foreign Exchange,
Fixed Income, Derivatives and Capital Markets
(c) Balance Sheet Desk, managing the liquidity, ALM
functions and resources to meet statutory requirements of maintaining of CRR /
SLR.
The Corporate Desk provides advisory services to Bank's
customers having multi-currency balance sheet exposure by way of risk products
such as Interest and Currency swaps and options. Besides, International Trade
Finance, Letters of Credit, Export Finance and Bullion Consignment business
continued to be the mainstay of the corporate business of Treasury. Your Bank
also continued with Investment Advisory Services for Government and Corporate
Debt through Constituent SQL accounts. The foreign exchange turnover witnessed
substantial growth of 84% to Rs.415500.000 Millions from Rs.226050.000
Millions. The Bank continued to be among the lead players in Bullion
Consignment segment, registering a turnover of around Rs.28150.000 Millions.
The hardening interest scenario limited the scope for
trading in fixed income securities; however, opportunities in Interest Rate
Swaps (IRS) were effectively utilised. The volumes and the profit under IRS
registered significant growth in this year. The Trading Desk clocked good
results in currency trading and corporate cover operations.
The Balance Sheet Desk ably and efficiently managed the
liquidity and ALM positions even during phases of tight liquidity in the
market. The Desk managed market borrowings at average cost of 6.85% through a
slew of money market instruments, thereby reducing the average cost of funds.
The Investment portfolio of the Bank is de-risked from the
hardening of interest rates. While dated securities are parked in HTM category,
the AFS category comprises Treasury Bills, which bear minimal risks. The
overall yield on investments was maintained at around 7.10% during the year.
Capital and Commodities Market Division (CCMD):
The Bank's Fort (Mumbai) Branch focuses on serving Capital
and Commodities market players, and is the nodal branch for this business line.
The Bank has the Clearing and Settlement Bank status with five principal stock
and commodity exchanges of the country viz. NSE, BSE, NCDEX, MCX and NMCE.
Besides, the Bank is an empanelled Depository Participant for NSDL and CDSL and
is also empanelled with NCDEX and MCX, thereby offering DP services to both
securities and commodities segments, a distinction shared by only a few select
banks in the country. The Bank has a comprehensive array of products covering
fund-based credit, non-fund based credit and end-to-end collection / payment
solution to members and participants of the exchanges, thus meeting their total
business needs.
The Bank is offering e-broking through Payment Gateway
technology with select brokers to facilitate provision of three-in-one account
facility to the retail investors and to enable them to undertake on-line
trading in equity market.
The Bank has also concluded arrangement with ten mutual
funds offering direct credit facility for redemption and income distribution.
This arrangement, besides enhancing Bank's ability to cross-sell mutual fund
schemes, greatly adds to customer convenience.
International Division (ID):
The International Division of the Bank covers all
cross-border business flows of the Bank. The Bank has correspondent
relationships with 332 banks spread across the globe.
The Bank continued to maintain its growth momentum in
international trade business with a rise of 21% in turnover and 57% in
revenues. The Bank continued to be an active player in inward remittance
business. There are tie-up arrangements with 16 Exchange Houses under Rupee
Drawing Arrangement and with two Money Transfer companies as principal agents
under Money Transfer Service Scheme. The Bank is in the process of appointing
sub-agents to increase the volumes through partnership with other domestic
banks and financial institutions.
To enhance overseas business and leverage NRI relationships,
the Bank has adopted the "Regional Alliance" model of partnering with
strong regional overseas banks that do not have branch presence in India.
During the year, alliances were established with two banks having coverage in
United Arab Emirates and Qatar. Your Bank proposes to establish similar
alliances in other geographical regions like South East Asia, United Kingdom,
the United States, etc.
Branch
Network:
The current year, 33 branches were opened and 41 off-site
ATMs were set up by the Bank. As at March 31, 2007, the Bank had a total of 170
branches spread across 141 geographical locations and 99 off-site ATMs. The
Bank now has presence in 27 States and Union Territories. In addition, your
Bank has Representative Offices in London and Dubai.
Banking
Operations:
The Bank has strengthened the policy framework on "Know
the Customer" (KYC) norms and "Anti Money Laundering" (AML)
measures from time to time, in line with the policies of Reserve Bank of India.
The Bank has implemented a simplified procedure of "Know the
Customer" which will benefit lower income group persons to open accounts
with minimal documentation.
The Bank has also become a member of Banking Codes and
Standards Board of India (BCSBI), which was set up to ensure that banks in
India adhere to a voluntary code, which sets minimum standards for fair
treatment of customers availing bank services. The Bank has made a commitment
to adhere to all the provisions of the Code prescribed by BCSBI. The Bank has
implemented almost all provisions of the Code and the rest are in the final
stages of implementation. The Code is displayed at all the branches of the Bank
and the same is also posted on the Bank's website in thirteen languages.
The clearing process at New Delhi and Mumbai has been
centralized for quicker and efficient operations. The Bank has commenced
image-based processing of clearing at these locations so as to be ready with
participation in RBI's Cheque Truncation System (CTS), which would help faster
and error- free processing of cheques.
The Bank has revised and adopted a comprehensive policy, in
pursuance of RBI advices, on settlement of claims in respect of deceased
depositors. The policy covers all types of deposits, and has simplified the
procedure for settlement.
The Bank has adopted the "Best Practice Code",
relating to transaction processing, with the objective of documenting the
procedures in line with national and international best practices.
The Bank has also put in place a "Deposit Policy"
and a "Fair Practice Code". While the former outlines the guiding
principles in respect of various deposit products of the Bank, terms and
conditions governing the operations of these accounts and the rights of
depositors, the Fair Practice Code is a voluntary code establishing standards to
be followed by all their branches in their dealings with the customers.
The Bank has also framed a "Citizen's Charter" to
promote fair banking practices and to provide information in respect of various
activities relating to customer service.
Credit Risk:
The Bank manages credit risk comprehensively, both at
Transaction and at Portfolio levels. The Bank uses a robust risk rating
framework for evaluating credit risk of the borrowers. The Bank uses
segment-specific rating models which are equipped with transition matrix
capabilities. Risks on various counter-parties such as corporate and banks are
monitored through counter-party exposure limits, governed by country risk
exposure limits also in case of international trades. The Bank manages risk at
the portfolio level too, with prudential exposure limits to mitigate
concentration risk. The Bank has a well-diversified portfolio across various
industries and segments, as illustrated by the following data:
·
Retail exposures (which provide wider diversification
benefits) account for as much as 58% of the total advances.
·
The Bank's corporate exposure is fully diversified across
over 85 industries, thus insulating the Bank from industry cycles.
Market Risk:
The key sources of Market Risk are Liquidity Risk, Interest
Rate Risk, Price Risk and Foreign Exchange Risk. The Bank has implemented a
state-of-the-art Treasury system 'OPICS' acquired from Misys, London, which
supports robust risk management capabilities and facilitates Straight through
Processing. OPICS supports tailoring of products to customers' needs.
Market Risk is effectively managed through comprehensive
policy framework which provides various tools such as Mark-to-Market, Duration
Analysis, Value-at-Risk, besides through operational limits such as stop-loss
limits, exposure limits, deal-size limits, maturity ladder, etc. Investment
portfolio is constantly re-jigged, in line with market movements and
expectations, so as to ensure minimum risk in the portfolio.
Operational Risk:
Operational risk is managed by addressing people risk,
process risk, systems risk as well as risks arising out of external
environment. The Bank is the only Indian commercial bank to receive
ISO-9001:2000 certification for all branches. The Bank has an efficient audit
mechanism, involving periodical on-site audit, concurrent audits on the spot
and off-site surveillance enabled by the Bank's advanced technology and core
banking system.
The Bank has initiated the process of putting in place
Operational Risk Management Framework using sophisticated tools, such as:
·
Key Risks Indicators
·
Score Cards
·
Risk Events
·
Loss Data
·
Near Miss Events
The framework would help in mitigation of operational risks
and optimization of capital requirement towards operational risks under Basel
II norms.
Systems Risk:
As part of Systems-related Operational Risk Management
initiatives, the Bank has formulated and implemented a comprehensive Business
Continuity Plan (BCP) to ensure continuity of its critical business functions
and extension of banking services to its customers. The Bank has established an
effective Disaster Recovery site at a geographically distant location, with
online real-time replication of data. Comprehensive IT security framework has
been put in place to ensure complete data security and integrity. The Bank has
housed its data center in a professionally managed environment, with
sophisticated and fool-proof security features and assured supply of utilities.
Internal Control Systems and their adequacy
Operational Controls
The Bank has laid down the policy framework on "Know
the Customer" (KYC) norms and "Anti Money Laundering Measures"
(AML). The policy has been framed on the basis of recommendations of the
Financial Action Task Force and the paper issued on Customer Due Diligence for
Banks by the Basel Committee on Banking Supervision. The AML software that has
been implemented has effectively brought the operations risk under control.
In accordance with RBI's recommendations, a Committee on
Procedures and Performance Audit on Public Service in Banks (CPPAPS),
comprising senior functional heads of the Bank and a few customers, have been
established. The Bank has also constituted a Customer Service Committee of the
Board of Directors (CSCB) to review the performance of the CPPAPS.
Business Achievements
|
Year |
Business Achievements |
|
|
|
|
2005-06 |
Ř
Ranked among the top ten banks in the country in the ET500 list
of leading companies in India. Ř
Rated as “The best among the top 10 private-sector banks” in a
survey covering 79 banks conducted by Business Standard in its November 2005
issue. Ranked sixth in the overall list, the Bank was also identified the
“Most Efficient Bank” among all banks in India. Ř
Bestowed “India’s Most
Productive Bank” status by a Business Today- KPMG Survey Ř
Presented “Outstanding Achiever of the Year 2005- Corporate”
(Runner up- Banking Technology Award) by IBA, Finacle (from Infosys) and TFCI
(Trade Fair and Conference International). Ř
Honoured with the “Award for Corporate Social Responsibility
(CSR)” at the India Brand Summit 2005, Mumbai. |
|
|
|
|
2004-05 |
Ř
Business Turnover crossed Rs.220000 millions Ř
Network grew to 115 branches, 9 extension counters and 195 ATMs,
spread over 95 geographical locations. Ř
Bestowed with highest
ratings for deposits from reputed rating agencies §
Highest rating “P1+”
- on Fixed Deposits from CRISIL §
Highest rating “P1+”
- on Certificate of Deposits from CRISIL §
Highest rating “F1+”
- on Certificate of Deposits from Fitch Ratings India Private Limited |
|
|
|
|
2003-04 |
Ř
Total business volume touches Rs.19,0000 Millions. Ř
Completes 10 years of banking excellence. Ř
Ashok Leyland Finance merges with the Bank. Ř
The first Indian Commercial Bank to achieve certification for
its “Entire Network of Branches” under the ISO 9001:2000 Quality Management
System. Ř
Launch of Debit Card- International Power Card. Ř
Bank’s first International Representative Office in Dubai. Ř
One of the first banks to go live on RTGS platform. |
|
|
|
|
2002-03 |
Ř
One of the first banks to implement the RBI- Electronic Funds
Transfer scheme. |
|
|
|
|
2001-02 |
Ř
Total business volume touches Rs.14,0000 Millions. Highest
productivity in the Indian banking sector with Rs.160 Millions of business
per employee. |
|
|
|
|
2000-01 |
Ř
Total business volume crosses Rs.10,0000 Millions. |
|
|
|
|
1998-99 |
Ř
IndusInd again rated as one of the Top Performing Banks in
various survey reports, for the second year in succession. |
|
|
|
|
1997-98 |
Ř
IndusInd rated as one of the Top Performing Banks in various
survey reports. |
|
|
|
|
1996-97 |
Ř
Pioneer in launching Internet Banking |
|
|
|
|
1994-95 |
Ř
IndusInd Bank comes into existence. Completes first profitable
year of operations. |
AS PER WEBSITE
Press Release
Romesh
Sobti New MD & CEO of IndusInd Bank
Mumbai,
07 December 2007: IndusInd Bank has announced the appointment of Romesh Sobti
as Managing Director & CEO of the Bank, subject to approval of the Reserve
Bank of India. The announcement comes in the wake of Bhaskar Ghose, MD
submitting his resignation to the Board of Directors of the Bank. However
Bhaskar Ghose will continue to be in office until the new incumbent takes over.
Romesh Sobti, joins IndusInd Bank with
33 years of banking experience in large state owned and
multinational banks, including ANZ Grindlays Bank and the State Bank of India.
His last assignment has been with ABN Amro Bank as Executive Vice President -
Country Executive, India and Head, UAE & Subcontinent. His responsibilities
included consumer and commercial businesses in India, Pakistan and UAE support.
About
IndusInd Bank
IndusInd Bank Ltd. is one of the leading new-generation
private-sector banks in India which commenced its operations in 1994. The Bank
recently had a successful GDR issue and its net worth touched Rs. 1092 crores
as on September 30, 2007. The Bank posted a total business turnover of
Rs.29,714 crores (as on September 30, 2007) and is poised for greater growth in
the years ahead. Its network expansion received a fillip with the Bank
securing 40 authorizations from Reserve Bank of India for new branches and 100
offsite ATMs in the last calendar year. The Bank currently has a network of 172
branches, spread over 141 geographical locations in 27 states and union
territories across the country. The
remaining 8 authorisation will be used shortly and the total number of branches
would reach 180. In addition, IndusInd Bank also has a representative office
each in Dubai and London.
Driven by technology, IndusInd constantly upgrades its
support systems for the introduction of retail banking products and alternative
delivery channels. The Bank continues to display its commitment to global
benchmarks in technology, as testified by its winning the prestigious IBA Award
for the year 2006 (Runner Up) for the Overall Implementation of Straight
through Processing between various systems. Since the merger of Ashok Leyland
Finance in June 2004, the Bank has expanded its retail portfolio. It is a large
player in the financing of commercial vehicles, utility vehicles, 2/3-wheelers
and construction equipment. It is one of the first banks to go live on
the Real Time Gross Settlement (RTGS) initiative of RBI. It enjoys
clearing bank status for both major stock exchanges - BSE and NSE and three
major commodity exchanges in the country – MCX, NCDEX, and NMCE. It also offers
DP facilities for stock and commodity segments.
IndusInd Bank has been awarded the highest A1+ rating for
its Certificates of Deposits by ICRA and the highest P1+ rating for its FDs by
CRISIL, which has also assigned the highest safety ratings to the Bank’s Pass
through Certificates for securitized assets.
IndusInd
Bank opens its 1st branch in Karur, Tamil Nadu
Karur, November 22, 2007:
IndusInd Bank, a fast-growing new-generation private-sector bank, today
inaugurated its 1st branch in Karur, Tamil Nadu. Mr. M. Nachimuthu, Executive Director, Karur
Textile Park Ltd. and Treasurer, Karur Textile Manufacturer Exporter’s Association was the Chief Guest. Mr. P. Gopalakrishnan, Secretary, Karur
Textile Manufacturer Exporter’s Association inaugurated the on-site ATM.
Speaking at the inauguration, Mr. N. Suresh Pai, Executive Vice President,
IndusInd Bank said, “Karur is one of
the oldest towns in Tamil Nadu and has played a very significant role in the
history and culture of India. Against this backdrop, IndusInd Bank, the new
generation bank with its cutting edge technology and service-oriented staff,
brings in new-age banking to suit the financial requirement of the region.
Karur is also a renowned centre for bus building industry and has number of
stitching, tailoring, dying & bleaching units that serve the giant home
textile export industry. This gives us immense opportunity to target SMEs and
export oriented units (EOU).”
Further, the Bank has 19 branches in
the state of Tamil Nadu including Karur and considering the potential of the
State, the Bank proposes to open new outlets shortly.
IndusInd Bank recently announced its Q2 and H1 results for
the financial year 2007-08 and the performance
highlights are as under:
·
Total Business touches Rs.29,714 crores
·
Networth crosses Rs. 1092 crores
·
Overseas inward remittance number doubles in the last
twelve months
·
Gold sales turnover under consignment touch Rs. 1613 crores
·
Forex Merchant turnover (FMT) is at Rs. 17,100 crores
·
Total Income crosses Rs. 1000 crores at Rs. 1021 .07 crores
·
Capital Adequacy Ratio is at 11.77 %
·
NIM improves to 1.35%
·
Operating profit moves to Rs.79.95 crore and Net Profit
is at 35.56 crore
·
Number of Branches -172 branches, and 316 ATMs
·
Newly opened Contact Centre enhances customer satisfaction
·
Insurance tie-up with AVIVA (for life insurance) and
Cholamandalam MS (for general insurance).
As part of its expanding bouquet of retail products and
services, IndusInd Bank has also announced its strategic tie-up with Religare
Securities, offering a value-added 3-in-1 savings accounts-linked package to
customers – comprising a savings bank account, a depository account, and an
Internet trading account powered by Religare, thereby completing an array of
products for Wealth Management Services.
The Bank also provides a full suite of products and services
meeting the needs of retail, corporate and NRI clients. Recently, the
Bank has appointed Mr. R. Seshasayee as the Non-Executive Chairman for a period
of two years. Mr. Seshasayee is currently the Managing Director of Ashok
Leyland, a leading manufacturer of commercial vehicles, and, was also until
recently President of Confederation of Indian Industry (CII).
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.39.96 |
|
UK Pound |
1 |
Rs.78.66 |
|
Euro |
1 |
Rs.63.31 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
59 |
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 |
|