MIRA INFORM REPORT

 

 

Report Date :

23.02.2011

 

IDENTIFICATION DETAILS

 

Name :

THE THANE JANATA SAHAKARI BANK LIMITED

 

 

Registered Office :

1st Floor, Madhukar Bhavan, Road No. 16, Wagle Estate, Thane- 400 604, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Year of Establishment:

1972

 

 

Legal Form :

A Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Banking Activities

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Large

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a multi state schedule bank in the country. It is a well established bank having fine track. General financial position is good. Trade relations are fair. Payment are reported to be regular and as per commitments.

 

The bank can be considered normal for any business dealings at usual trade terms and conditions.  

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

1st Floor, Madhukar Bhavan, Road No. 16, Wagle Estate, Thane- 400 604, Maharashtra, India

Tel. No.:

91-22-25838500

Fax No.:

91-22-25838550

E-Mail :

response@thanejanata.co.in

Website :

www.thanejanata.co.in

 

 

Branches :

Located At:

 

·         Thane Region

·         Navi Mumbai

·         Nashik

·         Mumbai

·         Pune

·         Satara

 

 

Administrative office:

Prestige Complex, Acharya Anand Rishiji Marg, Chinchwad, Pune- 411 019

Tel No.:

91-20-27474522/27476398

Fax No.:

91-20-27461229

 

 

DIRECTORS

 

Name :

Mr. V. A. Vaishampayan

Designation :

Chairman

Qualification :

M. Tech (Prod.) Chartered Engg.

 

 

Name :

Mr. B. V. Date

Designation :

Vice-chairman

Qualification :

B.Sc., D. Tech (paints)

 

 

Name :

Mrs. A. R. Apte

Designation :

Director

Qualification :

B.Sc., L.L.B

 

 

Name :

Mr. R. K. Agarwal

Designation :

Director

Qualification :

B.Sc.

 

 

Name :

Mrs. P. B. lyer

Designation :

Director

Qualification :

B.Com., A.C.A

 

 

Name :

Mr. R. K. Kanani

Designation :

Director

Qualification :

Diploma in Mech. Engineering

 

 

Name :

Mr. M. D. Khutade

Designation :

Director

 

 

Name :

Mr. N. D. Mandge

Designation :

Director

Qualification :

M. Sc., DHE

 

 

Name :

Mr. C. N. Menon

Designation :

Director

Qualification :

B.A., B.G.L

 

 

Name :

Mr. V. M. Patki

Designation :

M.Com., L.L.B., A.I.C.W.A, F.C.A

Qualification :

Director

 

 

Name :

Mr. P. D. Thakur

Designation :

Director

Qualification :

B.Com., L.L.B.

 

 

Name :

Mr. R. G. Karve

Designation :

Chief Executive Officer

Qualification :

B.Com

 

 

KEY EXECUTIVES

 

Name :

Mr. S.R. Utekar

Designation :

Chief General Manager

Qualification :

B. Com, LLB, CAIIB- I

 

 

Name :

Mr. S. P. Sathe

Designation :

General manger

Qualification :

B. Com. CAIIB, ICWA, CS

 

 

Name :

Mr. S. B. Nagvekar

Designation :

General Manager

Qualification :

B. Com, DBM, CS

 

 

Name :

Mr. S. V. Pathak

Designation :

B. Com, CAIIB, BGl

Qualification :

Deputy General Manager

 

 

Name :

Mr. V. R. Namjoshi

Designation :

Deputy General Manager

Qualification :

B.Com, CAIIB

 

 

Name :

Mr. S. V. Mahskar

Designation :

Deputy General Manager

Qualification :

M. Com, LLB, CAIIB

 

 

Name :

Mr. D. D. Velankar

Designation :

B. Com

Qualification :

Assistance General Manager

 

 

Name :

Mr. H. N. Kulkarni

Designation :

B. Com

Qualification :

Assistance General Manager

 

 

Name :

Mr. S. H. Koranne

Designation :

Assistance General Manager

Qualification :

B. Com, LLB, CAIIB

 

 

 

 

Name :

Mr. V. G. Navare

Designation :

Assistance General Manager

Qualification :

B. Com, CAIIB

 

 

Name :

Mr. S. B. Purohit

Designation :

Assistance General Manager

Qualification :

B. Com, CAIIB, DTIRM

 

 

Name :

Mr. G.A. Gangal

Designation :

Assistance General Manager

Qualification :

B. Com, JAIIB

 

 

Name :

Mr. N. N. Arekar

Designation :

Assistance General Manager

Qualification :

B. Com, JAIIB

 

 

Name :

Mr. S. M. Mayekar

Designation :

Assistance General Manager

Qualification :

B. Com, JAIIB

 

 

BUSINESS DETAILS

 

Line of Business :

Banking Activities

 

 

GENERAL INFORMATION

 

Bankers :

·         Reserve Bank of India

·         State Bank of India

·         State Co- operative Bank

·         Central Co- operative Bank

 

 

 

Banking Relations :

-

 

 

Auditors :

 

Name :

Joshi and Karandikar

Chartered Accountants

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

Authorised Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

Rs.50/- Each

Rs.500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8017794

Equity Shares

Rs.50/- Each

Rs.400.890 Millions

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

CAPITAL AND LIABILITIES

 

31.03.2010

31.03.2009

31.03.2008

 

 

 

 

CAPITAL

400.890

275.708

182.671

RESERVE FUND AND OTHER RESERVES

2909.338

2811.397

2506.047

DEPOSITS AND OTHER ACCOUNTS

27997.289

23470.549

20391.709

BORROWINGS

1927.530

1331.724

676.354

BILLS FOR COLLECTION BEING BILLS FOR RECEIVABLE (as per Contra)

125.728

161.802

55.576

BRANCH ADJUSTMENTS

0.000

0.000

7.954

OVERDUE INTEREST RESERVE

540.287

796.279

738.786

INTEREST PAYABLE

124.506

92.320

61.085

OTHER LIABILITIES

1281.821

1151.994

1082.642

AMORTISATION RESERVE

203.587

139.540

69.798

PROFIT & LOSS

441.929

243.552

243.019

GRAND TOTAL

35952.905

30474.865

26015.641

 

 

 

 

PROPERTY AND ASSETS

 

 

 

 

 

 

 

CASH AND BANK BALANCES

1990.078

1557.785

1740.679

BALANCES WITH OTHER BANKS

3209.164

1942.369

1222.268

MONEY AT CALL & SHORT NOTICEICBLO

0.000

0.000

149.932

INVESTMENTS

11002.772

9038.210

7608.879

ADVANCES

16790.797

15066.161

12854.632

 

 

 

 

INTEREST RECEIVABLE
 
 
 

a) on Investments and Staff Loan
462.481
347.304

283.006

b)on Advances (considered bad & doubtful of recovery) (as per Contra)
540.287
796.279

738.786

 

 

 

 

BRANCH ADJUSTMENTS

3.951

4.602

0.000

BILLS RECEIVABLE

125.728

161.802

55.576

BEING BILLS FOR COLLECTION (as per Contra)

0.000

83.384

72.873

FIXED ASSETS

480.980

54.407

47.388

CAPITALWORKIN PROGRESS

17.922

101.018

69.801

OTHER ASSETS

989.434

972.695

822.833

COST OF ACQUISITION

339.311

348.849

348.988

TOTAL

35952.905

30474.865

26015.641

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

EXPENDITURE

 

 

 

 

 

Interest on Deposits & Borrowings

1858.762

1533.755

1116.160

 

 

Salaries and allowances

252.465

234.105

190.868

 

 

Directors and local committee members fees

0.265

0.296

0.307

 

 

Rent, Rate, Taxes, Insurance and Lighting

96.831

80.719

63.313

 

 

Legal and Professional Charges

3.529

5.258

4.279

 

 

Postage, Telegrams and Telephone Charges

13.006

13.668

9.437

 

 

Travelling and Conveyance

4.799

3.822

3.767

 

 

Audit Fees

6.888

5.605

5.970

 

 

Repairs and Maintenance

15.702

19.075

13.147

 

 

Depreciation on Fixed Assets

75.046

53.469

47.928

 

 

Amortisation of Premium on Securities

50.096

23.400

25.043

 

 

Loss on sale of Securities

0.000

2.748

0.000

 

 

Printing and Stationery

9.660

6.330

8.428

 

 

Advertisement

32.062

26.298

22.952

 

 

Loss on sale of Assets

0.230

0.554

0.099

 

 

Bank charges

5.785

1.199

1.418

 

 

Clearing & Encoding Charges

4.331

4.724

5.253

 

 

Security Charges

10.251

7.689

6.490

 

 

Contractual Expenses

8.155

5.683

3.533

 

 

Other Expenses

27.662

21.228

18.136

 

 

Bad debts Written Off

149.842

11.267

0.000

 

 

Balance C/F

2625.367

2060.892

1546.528

 

 

 

 

 

 

INCOME

 

 

 

 

 

Interest on Advances

1892.422

1663.716

1265.410

 

 

Interest on Investment

1131.880

892.015

678.913

 

 

Dividend on shares

0.004

0.009

0.001

 

 

Commission, Exchange and Brokerage

59.210

60.926

55.619

 

 

Rent on Safe Deposit Lockers

8.158

7.732

6.043

 

 

Income from sale of securities

5.955

0.000

0.236

 

 

Other Income

90.428

79.966

61.145

 

 

Written off Bad Debts recovered

6.905

0.000

0.000

 

 

BDDR Written Back

149.842

11.267

0.000

 

 

Balance C/F

3344.804

2715.631

2067.367

 

 

 

 

 

 

PROVISIONS AND CONTINGENCIES

 

 

 

A

 

Bad & Doubtful Debts

 

 

 

 

 

i) Amount Provided for Bad and Doubtful Debts

42.500

111.646

40.000

 

 

ii) Contingent Provision against Standard Assets

0.000

0.000

12.200

 

 

iii) Expenditure Provision & Contingencies

0.000

584.708

0.000

B

 

Special Reserve u/s 36(1) (viii)

23.000

17.500

0.000

C

 

Amortisation of Cost of Acquired Banks

 

 

 

 

 

Navjeevan Nagari Sahakari Bank Limited

6.109

6.208

6.010

 

 

Shree Sadguru Jangli Maharaj Sahakari Bank Limited

57.938

63.534

63.788

 

 

 

 

 

 

PROFIT BEFORE TAX

589.890

401.143

384.041

 

Income Tax

153.500

160.000

147.500

 

Fringe Benefit Tax

0.000

1.301

0.963

 

Deferred Tax

(5.529)

(3.701)

(7.433)

 

NET PROFIT

441.919

243.543

243.011

 

 

 

 

 

 

TOTAL

3344.804

2715.631

2067.367

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Economic scenario and outlook

 

In the ongoing economic scenario, where recession has played spoil sport and thereby halted many countries' economic prosperity, their country by and large withstood this turmoil. India has now entered a revolutionary phase and is standing shoulder to shoulder with the industrially advanced countries. Simultaneously, there are abundant and unending growth opportunities in the domestic market as well.

 

 The global economy continues to recover amidst ongoing policy support and improving financial market conditions. The recovery process is led by Emerging Market Economies (EME), especially those in Asia as growth remains weak in advanced economies. The global economy continues to take several challenges such as high levels of unemployment, which are close to 10 percent in the US and Euro zone. Despite signs of renewed activity in manufacturing and initial improvement in retail sales, the prospects of economic recovery in Europe are clouded by the acute fiscal strains in some countries. Core measures of inflation in major advanced economies are still moderating as the output gap persists and unemployment remains high. Inflation expectations also remain well anchored. In contrast, core measures of inflation in EMEs, especially in Asia, have been rising. This has prompted central banks in some EMEs to begin phasing out their accommodative monetary policies.

 

In its world economic outlook update for January 2010, the International Monetary Fund (IMF) projected that global growth will recover from (-) 0 .8 percent in 2009 to 3.9 percent in 201 0 and further to 4.3 percent in 201 1. Organization for Economic Cooperation and Development's (OECD) composite leading indicators in February 2010 continued to signal an improvement in economic activity for the advanced economies. Three major factors that have contributed to improved global outlook are the massive monetary and fiscal support, improvement

in confidence and a strong recovery in EMEs.

 

Amongst EMEs, China continues to grow at rapid pace, led mainly by domestic demand. Malaysia and Thailand have recovered to register positive growth in the second half of 2009. Indonesia recorded positive growth throughout 2009.

 

Globally, headline inflation rates rose between November 2009 and January 2010, softened in February 2010 on account of moderation in metal and crude prices and rose marginally in some major economies in March 2010. Core inflation continued to decline in the US on account of substantial resource slack. Inflation expectations in advanced countries also remain stable. Though inflation has started rising in several EMEs, lndia is a significant

outlier with inflation rates much higher than in other EMEs.

 

The Reserve Bank of India had projected the real GDP growth for 2009-2010 at 7.5 percent. The advance estimates released by the Central Statistical Organization (CSO) in early February 2010 placed the real GDP growth during 2009-201 0 at 7.2 percent.

 

The uptrend in industrial activity continues. The index of industrial production (IIP) recorded a growth of 17.6 percent in December 2009, 16.7 percent in January 2010 and 15.1 percent in February 2010. The sharp pick up in the growth of the capital goods sector, in double digits since September2009, points to the revival of investment activity. The acceleration in non-oil imports since November 2009 further evidences recovery in domestic demand. After contracting for twelve straight months, exports have turned around since October 2009 reflecting revival of external demand. Various lead indicators of service sector activity also suggest increased economic activity. On the whole, the economic recovery, which began around the second quarter of 2009-10, has since shown sustained improvement. A sharp recovery of growth during 2009-1 0 despite the worst south west monsoon since 1972 attests to the resilience of the Indian economy. The monetary and fiscal stimulus measures initiated in the wake of the global financial crisis played an important role, first in mitigating the adverse impact from contagion and then in ensuring that the economy recovered quickly.

 

However, the developments on the inflation front are worrisome. The headline inflation, as measured by year on year variation in wholesale price index (WPI), accelerated from 0.5 percent in September 2009 to 9.9 percent in March 2010 exceeding the Reserve Bank's baseline projection of 8.5 percent for March 2010. Clearly WPI inflation is no longer driven by supply side factors alone. The contribution of non food items to overall WPI inflation which was negative at (-) 0.4 percent in November 2009 rose sharply to 53.3 percent by March 2010. Thus inflationary pressures have accentuated since December 2009 what was initially a process driven by food prices has now become more generalized.

 

The Indian economy is firmly on the recovery path. Exports have been expanding since October 2009, a trend that is expected to continue. The industrial sector is increasingly becoming broad based and is expected to take firmer hold going forward on the back of rising domestic and external demand.

 

Highlights of Reserve Bank of India's annual policy statement for 2010-2011.

 

> GDP growth projected at 8.0 percent with upside biasfor2010-11;

 

> March 2011 end inflation projected at 5.5 percent;

 

> Aggregate deposits of banks estimated to grow by 18 percent and credit growth by 20 percent;

 

> Repo rate and Reverse Repo rate increased by 25 bps to 5.25 percent 3.75 percent respectively;

 

> CRR increased by 25 bps to 6 percent;

 

> Well managed UCBs allowed to set up off site ATMs.

 

Performance of the bank for the financial year 2009-201 0

 

Since its inception, the Bank has been scaling heights of excellence as evidenced by the ever increasing accolades of glory bestowed upon it every year. Now TJSB has become the numerouno, among its peers and competitors. It was yet another successful year for the Bank. The overall performance of the Bank in the year gone by was commendable. The business mix of the Bank reached Rs.44788.100 millions. The consistent growth story of the Bank placed it in a coveted position in co-operative banking sector. The overall performance coupled with the challenges ahead makes them more vibrant and dynamic.

 

 

Advances

 

The advances portfolio recorded an increase of Rs.1724.700 millions at a growth rate of 11.45 percent.  he credit deposit ratio stood at 59.97 percent.

 

Profitability

 

The bank, despite slowdown in economy, has posted good gross and net profit for the year ended 31.03.20 0.  The net profit has jumped because of recovery in NPA accounts and also lesser requirement of provisions.

 

Expansion

 

During the year 2009-2010, the bank opened 9 branches at Panvel, Indiranagar, Chembur, Charkop, Bhandup, Ambernath, Satara, Mira Road and Kalyan. To offer better customer service, the Bank relocated Kudalwadi branch to Wanawadi and shifted Dehu Road, Pimpri and Chakan branches to the new premises.

 

The Bank inaugurated its 50th Branch at Kalyan at the hands of Chief Guest, Shri. Achyut Godbole, an Eminent personality in Information Technology and Guest of Honour, Shri. Jaikumar Pathare the founder of VIP hosiery brand. 

 

The interior work at the newly acquired Head Office premises located behind Aplab Limited, Wagle Estate, Thane has begun and expected to be completed by September 201 0. All departments other than I.T. presently located at Madhukar Bhavan will be shifted to new premises. The bank plans to open 5 new branches at Thane, Andheri - Mumbai, Nashik, Navi Mumbai, Alibaug – Raigad Dist., for which RBI approval is received.

 

International Business Department

 

During the year, the Bank has got Authorized Dealer Category - I license from R.B.I. With this Bank has become one of the select Forex dealers in Cooperative sector. To start the business on its own, Bank has initiated various processes like getting FEDAl and CClL membership, opening of Nostro Accounts in various currencies, SWIFT connectivity, setting up Category -A and B Centres to handle the business. Initially, bank intends to have dealing in 5 major currencies viz. USD, EURO, GBP, .IPY and AUD. The process of opening accounts with overseas banks is in final stages with SBI, Bank of India, New York Branch, Barclays Bank, London Standard Chartered Bank. They have received A/c numbers for EURO and GBP from Barclays Bank London. Bank has received SWIFT code, which will get operational shortly. During the year Bank has done forex business turnover of Rs.3677.200 millions. The business under the Category – I is expected to be started by first week of July 2010. With this facility Bank will be able to offer all types of Foreign Exchange services directly to the customers like Opening of Import UCs, collection and negotiation of Export Documents, Pre-shipment I Post-shipment finance at concessional rates, processing of all Inward/Outward Remittances, maintenance of NRE/NRO/FCNR/EEFC/RFC deposits. Bank feels privileged to offer all types of financial products under one roof.

 

Bank has got the SWIFT code number to facilitate the forex transactions with bankers and customers. The Nostro account in USD is opened with Bank o f India, New York. The process with respect to State Bank Of lndia and Standard Chartered is in final stages. The Nostro Accounts in ELlRO and GBP (Pound Sterling) are opened with Barclays Bank London. The Nostro Account opening for JPY and AUD is in final stages.

 

 

 

Membership

 

The total membership of the Bank as on 31st March 201 0 stood at 28204 against 33328 of the previous year.

 

Award and Accolades conferred on the bank

 

During the year, Bank has won the prestigious award "Technology Bank of the Year for 2009" from Indian Banks' Association.

 

WEBSITE DETAILS:

 

History:

 

With the modest beginning in 1972 in the co-operative field, the dynamism infused by the Board of Directors, unflinching loyalties of clientele and devotion of staff has propelled the sound foundation of Subject and has emerged as one of the leading multi state scheduled co-operative Bank in the country.


Subject presently is catering to the needs of society through a close network of 53 Branches and 1 Extension Counters spread all over the city of Thane, Mumbai, Navi Mumbai, Nasik, Pune and Satara. All these Branches have made remarkable progress on all fronts in all these years.


Subject believes that "customer delight" is the ultimate goal and has a strong belief that Customers and all Stakeholders wholehearted support, absolute faith and their patronage has largely been responsible for its enviable growth. Subject is committed to provide banking with speed, comfort and convenience.

Subject feels proud to acknowledge the growth of large number of successful industrialists, traders and professionals who have grown leaps and bound due to timely assistance and support of the Bank.


Subject has set before a Visionary Growth Plan focusing all business strategies solely on creation of Stakeholders value.
 

 Technology Initiatives :


Subject, a Techno-savvy Bank has implemented successfully the Core Banking Solution (CBS). This has helped the Bank to migrate the Branches from being the processing centers to marketing customer centric outfits. It will also extend the Bank’s reach to its customers by multiple delivery channels such as ATM, Internet, Mobile etc. This has brought the Bank on par with the leading Banks. Bank has network of 57 ATM’s across Thane, Mumbai, Navi Mumbai, Pune and Nashik.


Subject is the first Bank in Co-operative sector to install Cheque Depository Machines at 43 branches, which are operational 24 X 7.


Subject has put in place Real Time Gross Settlement System (RTGS) transactions. With Core Banking Solution in place the Bank is Providing RTGS facility to all its customers.


Subject has initiated process for strategic alliance with other Banks for the usage of their delivery channels by which nearly 60000 ATMs will be available to Bank ’s customers across the country.

 

 

 

 

 

Profile:   

 

  • Professional Board and Pragmatic decision making
  • Consistent profit and growth for last 39 Years
  • Equilibrium in Growth and profits
  • Strong Internal Reserves and CRAR at 15.47%
  • Balanced Credit Portfolio and focus on Retail /SME Segment
  • Strong Focus on Recovery and NPA Management
  • First Co-op Bank to offer Bancassurance Product in association with Max New York Life Insurance Co. Limited
  • Anywhere Any Branch Banking facility in all Branches
  • 57 ATM’s installed in Branches at Thane, Mumbai, Pune, Nashik and Satara
  • 24x 7 Cheque Issuance Machine at e-Lobby at Naupada Branch
  • 24x 7 Cheque Depository machine at 43 branches
  • Value Added services for Customers

 

 

 

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.45.20

UK Pound

1

Rs.73.07

Euro

1

Rs.61.41

 

 

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

5

--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

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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

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

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.