MIRA
INFORM REPORT
|
Report Date : |
14.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
THE KARUR VYSYA BANK LIMITED |
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Registered
Office : |
Post Box No. 21, Erode
Road, Karur - 639 002, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
22.06.1916 |
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Com. Reg. No.: |
001295 |
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Capital
Investment / Paid-up Capital : |
Rs. 544.356
Millions |
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CIN No.: [Company Identification
No.] |
L65110TN1916PLC001295 |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Banking company. |
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No. of Employees
: |
4574 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (72) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 85000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old a well-established and a reputed bank having fine track. The bank is doing well. Financials position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The Bank can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long run. |
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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office / Central Office: |
Post Box No. 21,
Erode Road, Karur – 639 002, |
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Tel. No.: |
91 4324-22520 / 225521-25 |
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Fax No.: |
91 4324-20202 / 225700 |
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E-Mail : |
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Website : |
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Divisional Offices: |
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Disaster
Recovery Site-Hyd: |
01-04 1st Floor Unit-3 Block-I, Cyber Pearl Hi-Tech City,
Madhapur, Hyderabad-500081 |
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International Division: |
No. 37, Whites Road, 2nd Floor , Chennai – 600014,
Tamilnadu, India |
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Tel. No.: |
91- 44-28412090-92 |
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Branch Offices: |
Located at:
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DIRECTORS
As on 31.03.2011
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Name : |
Mr. Athi S Janarthanan |
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Designation : |
Chairman and Director |
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Name : |
Mr. K.P. Kumar |
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Designation : |
Chairman and Director |
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Name : |
Mr. P.T. Kuppuswamy |
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Designation : |
Managing Director and Chief
Executive Officer |
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Name : |
Mr. K. Venkataraman |
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Designation : |
Managing Director and Chief
Executive Officer |
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Name : |
Dr V.G. Mohan Prasad |
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Designation : |
Director |
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Name : |
Mr. M.G.S. Ramesh Babu |
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Designation : |
Director |
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Name : |
Dr. S. Krishna Kumar |
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Designation : |
Director |
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Name : |
Mr. S Ganapathi Subramanian |
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Designation : |
Director |
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Name : |
Mr. K. Parameshwara Rao |
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Designation : |
Director |
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Name : |
Mr. V. Santhanaraman |
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Designation : |
Director |
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Name : |
Mr. G. Rajasekaran |
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Designation : |
Director |
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Name : |
Mr. A.J. Suriyanarayana |
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Designation : |
Director |
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Name : |
Mr. T. M. Lakshmi Kanthan |
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Designation : |
Executive Director |
KEY EXECUTIVES
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Name : |
Mr. R. Kannan |
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Designation : |
Company Secretary and Assistant General
Manager |
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Qualification: |
B.Com., M.B.A., B.G.L.,C.A.I.I.B., A.C.S.,
I.C.W.A.I.(INTER) |
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Name : |
Mr. R. Sukumar |
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Designation : |
Chief General Manager |
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General Manager: |
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Deputy General
Manager: |
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Assistant General Manager: |
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Advances Committee : |
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Risk Management And Asset Liability Management Committee : |
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Nomination Committee : |
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Staff & Development Committee |
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Npa Management And Fraud Monitoring Committee : |
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Compensation Committee : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
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(A) Shareholding
of Promoter and Promoter Group |
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3460700 |
3.23 |
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|
3460700 |
3.23 |
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Total
shareholding of Promoter and Promoter Group (A) |
3460700 |
3.23 |
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(B)
Public Shareholding |
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|
5858852 |
5.47 |
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|
309056 |
0.29 |
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2231627 |
2.08 |
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24420172 |
22.78 |
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Any others (Specify) |
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Foreign
Financial Institutions |
140 |
- |
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Sub Total |
32819847 |
30.62 |
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15060646 |
14.05 |
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26845182 |
25.05 |
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25244115 |
23.55 |
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Any others (Specify) |
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Directors and Their Relatives and
Friends |
418310 |
0.39 |
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Non Resident Indian |
2064274 |
1.93 |
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Clearing Members |
117776 |
0.11 |
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Hindu Undivided Families |
1054258 |
0.98 |
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Foreign Nationals |
784 |
- |
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Trusts |
94514 |
0.09 |
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|
70899859 |
66.15 |
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Total
Public shareholding (B) |
103719706 |
96.77 |
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Total
(A)+(B) |
107180406 |
100.00 |
|
© Shares
held by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
Total
(A)+(B)+(C) |
107180406 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
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Line of Business : |
Banking company. |
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Products : |
Banking Company |
GENERAL INFORMATION
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No. of Employees : |
4574 (Approximately) |
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Bankers : |
Reserve Bank of |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
R.K. Kumar and Company Chartered Accountants |
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Address : |
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Legal
Adviser: |
Mr. K.N. Shrinivasan, BA., B.L. |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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200000000 |
Equity Shares |
Rs.10/- each |
Rs. 2000.000 Millions |
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
106760418 |
Equity Shares |
Rs.10/- each |
Rs. 1067.604
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
54435579 |
Equity Shares |
Rs.10/- each |
Rs. 544.356
Millions |
|
21774232 |
Add: Bonus Shares |
Rs.10/- each |
Rs. 217.742
Millions |
|
30462391 |
Add: Right Shares |
Rs. 6/- each |
Rs. 182.774
Millions |
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Total |
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Rs. 944.872 Millions |
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Application Money |
|
Rs. 224.492
Millions |
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Total |
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Rs. 1169.364 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
CAPITAL & LIABILITIES |
|
|
|
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Capital |
1169.364 |
544.356 |
539.516 |
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Reserves & Surplus |
20200.465 |
15655.405 |
12962.144 |
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Deposits |
247218.513 |
192718.537 |
151013.894 |
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Borrowings |
5298.917 |
4758.846 |
230.381 |
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Other Liabilities and Provisions |
8361.133 |
5670.287 |
5861.496 |
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TOTAL |
282248.392 |
219347.431 |
170607.431 |
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ASSETS |
|
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Cash &
Balances with RBI |
16798.375 |
11984.882 |
9638.158 |
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Balances with
Banks and money at Call & Short Notice |
946.245 |
365.733 |
4103.503 |
|
Investments |
77317.560 |
66021.603 |
47159.801 |
|
Advances |
178144.638 |
134469.973 |
104098.805 |
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Fixed Assets |
2105.691 |
1378.135 |
1156.939 |
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Other Assets |
6935.883 |
5127.105 |
4450.225 |
|
TOTAL |
282248.392 |
219347.431 |
170607.431 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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INCOME |
|
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Interest earned |
22176.953 |
17579.454 |
14460.894 |
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Other Income |
2643.333 |
2469.770 |
2652.092 |
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TOTAL |
24820.286 |
20049.224 |
17112.986 |
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Less |
EXPENDITURE |
|
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Interest expended |
14508.411 |
11930.466 |
10356.808 |
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Operating expenses |
4306.034 |
3486.532 |
2575.964 |
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Provisions and Contingencies |
1849.932 |
1271.910 |
1821.799 |
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TOTAL |
20664.377 |
16688.908 |
14754.571 |
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Net Profit for the year |
4155.909 |
3360.316 |
2358.415 |
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Amount Transferred From Investment Reserve |
0.000 |
0.000 |
13.788 |
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|
Amount Transferred From General Reserve |
0.000 |
100.000 |
0.000 |
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|
PROFIT BROUGHT FORWARD |
18.546 |
14.498 |
11.062 |
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Less |
APPROPRIATIONS |
|
|
|
|
|
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|
Transfers to Statutory Reserve |
1250.000 |
1010.000 |
710.000 |
|
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|
Capital Reserve |
0.000 |
52.025 |
411.318 |
|
|
|
Special Reserve |
300.000 |
300.000 |
0.000 |
|
|
|
Revenue & Other Reserves |
1115.000 |
1330.000 |
490.000 |
|
|
|
Proposed Dividend |
1286.335 |
653.227 |
647.420 |
|
|
|
Dividend Tax |
208.676 |
111.016 |
110.029 |
|
|
BALANCE
OF PROFIT |
14.444 |
18.546 |
14.498 |
|
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|
|
|
|
|
|
Earnings Per
Share (Rs.) |
44.90 |
62.23 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Interest
Earned |
6945.200 |
7720.500 |
8563.300 |
9474.700 |
|
Income on investments |
1462.000 |
1754.700 |
1875.500 |
2070.300 |
|
Interest on
Balance with RBI Other Inter Bank Funds |
4.700 |
18.800 |
21.600 |
44.900 |
|
Interest /
Discount on Advances / Bills |
5478.500 |
5946.30 |
6665.500 |
7291.800 |
|
Others |
0.000 |
0.700 |
0.700 |
67.700 |
|
Other
Income |
742.000 |
747.100 |
894.400 |
1118.000 |
|
Total
Income |
7687.200 |
8467.600 |
9457.700 |
10592.700 |
|
Interest
Expended |
4895.300 |
5555.800 |
6216.600 |
6864.800 |
|
Operating
Expenses |
1139.300 |
1335.100 |
1343.800 |
1597.400 |
|
Total Expenditure |
1139.300 |
1335.100 |
1343.800 |
1597.400 |
|
Operating
Profit |
1652.600 |
1576.700 |
1897.300 |
2130.500 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provision
and contingencies |
376.100 |
132.900 |
360.200 |
68.400 |
|
Profit
Before Tax |
1276.500 |
1443.800 |
1537.100 |
2062.100 |
|
Tax |
109.500 |
310.700 |
287.900 |
594.200 |
|
Reported PAT |
1167.000 |
1133.100 |
1249.200 |
1467.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1167.000 |
1133.100 |
1249.200 |
1467.900 |
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
Year of Establishment |
Yes |
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Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
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Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
Yes |
|
No. of Employees |
No |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
--------- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
------------ |
|
Litigations that the firm/ Promoters Involved in |
------------ |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
------------- |
|
Buyer visit details |
------------ |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
BACKGROUND
Subject is
incorporated in Karur, India is a publicly held Banking company engaged in
providing a wide range of banking and financial services including commercial
banking and treasury operations. It is a banking company governed by the
Banking Regulation Act, 1949.
FINANCIAL PERFORMANCE
WITH RESPECT TO OPERATIONAL PERFORMANCE
The operating
profit of the bank for the year ended 31st March 2011 was at Rs. 6005.800
Millions compared to Rs. 4632.200 Millions during the earlier fiscal recording
a growth rate of 29.65%. The net profit of the bank grew by 23.68% to Rs.
4155.900 Millions during the reporting fiscal as against Rs. 3360.300 Millions
recorded in the previous fiscal 2009-10.
The total income
increased by 23.80% to Rs. 24820.300 Millions for the fiscal 2010-11 compared
to Rs. 20049.200 Millions during the year 2009-10. Interest income for the year
2010-11 was at Rs. 22176.900 Millions improved by 26.15% against Rs. 17579.400
Millions (2009-10). Non interest income stood at Rs. 2643.300 Millions during
the fiscal. The interest expended increased to Rs. 14508.400 Millions in
2010-11 from Rs. 11930.500 Millions in the earlier fiscal.
The earning per
share (EPS) of the Bank was Rs. 44.90 as on 31.03.2011.
Average credit
deposit ratio stood at 71.53% as on 31.03.2011 compared to 70.99% recorded in
the earlier fiscal.
The Net Interest
Margin of the bank was 3.39% as on 31.03.2011 as against 3.23% as at the end of
the previous fiscal 2009-10.
The Return on
Assets was 1.71% at the end of the fiscal under report.
OUTLOOK
As at the end of
March 2011, the bank has crossed Rs. 427740.000 Millions business and has set a
target of Rs. 550000.000 Millions for the current fiscal. With the roll out of
the various modules as recommended by the BCG, the Bank would be able to reach
the targeted levels. The bank has been devising various strategies to march
ahead its growth plans. The bank would pursue segmented growth keeping in view
the demands of the economy, asset quality and profitability. Regarding asset
creation, the bank would focus mainly on retail, small enterprises and mid
corporate. On the liability side continued focus will be on low cost deposit
mobilization.
The various
business strategies include the following:
1. Leveraging the
technology to the optimum and deployment of open scaleable systems to deliver
more products to more customers, while controlling costs.
2. To develop
innovative products and services to attract targeted customers
3. To have focus
on healthy earnings growth with low volatility
4. To provide high
quality customer service and at the same time ensuring volumes to have
disciplined growth
5. Opening branches
so as to have pan
The bank looks
forward to an exciting future and as per tradition to bring greater benefits to
all its stake holders.
SHARE CAPITAL
During the year
under report the Board announced Bonus shares to the shareholders in the ratio
of 2 bonus shares for every five shares held on the record date. The Bonus
shares were allotted on 20.09.2010. With the allotment of Bonus shares, the
paid up share capital which stood at Rs. 5444.400 Millions as at 31st March 2010 stood increased to Rs.
762.100 Millions. The Board also announced Rights shares in the ratio of 2
rights shares for every five shares held on the record date inclusive of the
Bonus shares. The rights shares were issued and allotment of the said shares
were made on 30.03.2011. With the allotment of Rights shares, the paid up share
capital stands increased to Rs. 944.900 Millions. Further the bank has received
in advance towards First call money a sum of Rs. 224.500 Millions.
DIVIDEND
Limited bank's
policy of declaring the dividend is to reward the shareholders as well as to
plough back profit for maintaining a healthy capital adequacy ratio and for
supporting future growth. Accordingly the Directors are pleased to propose a
total dividend of 120% (i.e Rs.12/- per share of Rs.10/-) for the year ended 31st
March 2011. However the proposed dividend is on the enhanced capital on account
of Bonus and Rights shares allotted during the fiscal 2010-11. The payment on
account of dividend would be Rs.1495.000 Millions including dividend tax. Board
takes pleasure to mention here that this is 4th year in succession that a
dividend of 120% is paid.
NET OWNED FUNDS
AND CAPITAL ADEQUACY
The net owned
funds of the Bank crossed Rs.20000.000 Millions and stood at Rs.21369.800
Millions. The Capital to Risk weighted Assets Ratio (CRAR) as per
INVESTMENTS
The treasury is
responsible for compliance with reserve requirements, management of liquidity
and interest rate risk on the Bank's Balance Sheet. Bank holds government
securities in order to comply with the regulatory requirements to meet the
statutory liquidity ratio (SLR).
The aggregate
investments of the Bank increased to Rs.77763.100 Millions at the end of the
financial year 2010-11 as against Rs.66494.400 Millions in the FY 2009-10, an
increase of 16.95%. Net investments rose by Rs.11296.000 Millions as on
31.03.2011, ie. from Rs.66021.600 Millions to Rs.77317.600 Millions registering
a growth of 17.11%. Incomes on investment stood at Rs.5235.600 Millions as on
31.03.2011, registering a rise of Rs. 1272.900 Millions (32.12%) compared to
the previous year fiscal of Rs.3962.700 Millions.
The average yield
on investments improved to 7.20% during the year against previous fiscal of
7.00%. Liquidity position of the Bank was comfortable through out the year.
FOREX TRANSACTIONS
The bank achieved
a merchant turnover of Rs.80790.000 Millions during the fiscal 2010-11 as
against Rs.69090.000 Millions recorded in the previous fiscal.
The gross income
earned from the forex operations was Rs.1088.300 Millions. The export credit of
the bank stood at Rs.8377.200 Millions as on March 31, 2011 as against
Rs.6347.400 Millions as on 31.03.2010, thus registering a growth of 31.98%.
BRANCH NETWORK AND
EXPANSION
During the fiscal
2010-11, 34 branches were added by the Bank including 1 satellite branch that
was upgraded as a full fledged branch, taking the total branch network of the
bank to 369.
During the fiscal
2010-11, 112 ATMs were brought into the network taking the total to 488 (364 on
site and 124 offsite).
The Board
continues to give thrust for opening brick-and-mortar branches covering all the
parts of the country in order to have a wider pan
TECHNOLOGICAL
INITIATIVES
The bank's
emphasis on technology deployment as an instrument for enhancing service
quality continued during the year. A wide gamut of services has been provided
under Internet banking facility.
The year saw the
implementation of additional security using RSA technology for internet banking
users, both corporate and retail. There has been a steady increase in number of
customers using the facility as also in the volume of transactions.
The bank has also
launched on line bill payments of Tamil Nadu Electricity Board. Also soft
launched mobile banking payment services and inter-bank mobile payment service.
The bank implemented NEFT payments through internet banking services.
At all the bank's
Currency Chests, Bio-metric and Proximity Card based access control system was
implemented.
OTHER INITIATIVES
Members are aware
that the Bank appointed Boston Consulting Group (BCG) with the mandate to
assist the bank in the areas such as attaining the target of total business of
Rs.1250000.000 Millions by the centenary year 2016, restructuring the
organization, Business re-engineering process, innovation of Products and
services, study the recruitment and promotion policies etc. The recommendation
of the said Group is being implemented under "Golden Vision
Initiatives". While the bank has implemented some of the important modules
suggested by them, the roll out of other modules is under study and will be
implemented in stages during the current fiscal. The modules that are rolled
out under the Golden Vision Initiatives are encouraging.
The bank launched
sale of Gold Coins during the year under report and the income earned is quite
encouraging.
The bank has also
launched the following products during the FY2010-11:
(a) KVB Gift Card
(b) KVB Travel
Card
(c) KVB Prestige -
an SB product for High Networth Individuals
On the assets portfolio
the following new products have been introduced:
(a) KVB Rice Plus
- to finance the Rice Mills
(b) KVB Timber
Plus- to finance Timber merchants
FINANCIAL
INCLUSION:
With a view to
provide banking facilities to the sections of society which are so far deprived
from the formal financial sector, the bank implemented financial inclusion
policy. SLBC, Tamilnadu had allotted 36 villages to the bank for implementation
of the financial inclusion scheme. The bank has adopted Business Development
Model and has rolled out the scheme in 34 villages taking the implementation to
very impressive rate of around 95%. As a part of the financial inclusion drive,
the bank formulated a special no frills savings bank product known as "KVB
Grama Jyoti”. Distribution of smart cards has also begun.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Banking industry
is said to be a mirror of an economy's health. A sound banking system serves as
a significant trade enabler to the country. In the British period the banks
established in the country prioritized trading and commercial transactions and
were concentrated in urban areas of the country. Money lenders and chit funds
were providing informal banking services to the common people. Post
independence in 1955, the State nationalized the Imperial Bank of
BANKING DURING THE
FISCAL 2010-11
Aggregate deposits
grew by 15.8% as against 17.2% growth registered during the last fiscal. The
slow down in deposits growth may be attributed to the performance of equity
market in the first half of 2010-11. The time deposits with the banks went up
by 18.2% as against the growth of 16.3% witnessed during the previous year.
Demand deposits
saw a marginal decrease. Growth in deposits in 2010-11 has not only lagged when
compared to the growth seen in overall bank credit and non-food credit but it
has also fallen behind the growth in deposits that was witnessed in the previous
year. When the credit growth gathered pace, banks started facing a tight
liquidity situation. Call money market data reveals that borrowing and lending
rates started moving up in second half of 2010-11. As liquidity situation
tightened, banks were forced to increase the interest rates. The increase in
interest rates started in July 2010 and picked up pace with hikes being
particularly aggressive from December 2010 onwards. Banks benefited by
garnering deposits in the last quarter. Total bank credit registered a growth
of 21.4%. Non-food credit also saw a similar rise of 21.2%. The bank credit to
infrastructure and NBFCs witnessed a sharp rise.
ECONOMIC OVERVIEW
The global
economic recovery is broadly on track and continues to move rapidly though
there are large output gaps in advanced economies and closing gaps in emerging
and developing markets. International Monetary Fund has projected world real
GDP to slow down to 4.4% in 2011 from 5% in 2010. The key to downslide was
primarily on account of oil prices.
Indian economy
continued its good performance than most emerging markets during the fiscal
2010-11 and it retained its position as the second largest growing economy
amongst the G20 countries. According to the Central Statistical Organization
(CSO) GDP factor cost at constant prices is expected to register a growth of
8.6% in FY 2010-11 while it grew by 8% in the previous fiscal. Agriculture, aided by normal monsoon,
provided the impetus to growth. The agricultural production rebounded in
2010-11 after suffering drought conditions in the preceding year. With good
Kharif and Rabi crops, food grains production reached a new record. A
satisfactory North-East Monsoon following normal South-West monsoon, favourable
reservoir positions etc., led to the improved agricultural production. Higher
agricultural production and significant rise in the outputs of key agricultural
products would help in reducing the pressure on food prices. The agricultural
growth may also lead to better rural incomes and thus benefit the demand for
other sectors.
The growth in
industrial sector was moderated mainly on account of high base effect and sharp
deceleration in capital and intermediate goods. Except consumer goods almost
all sectors exhibited slowdown. Higher private consumption demand led to the
higher growth in both durables and non-durables segment.
The services
sector growth was robust notwithstanding some deceleration in government
spending related services. Exports improved during 2010-11. The exports grew by
37.5%, fastest since independence and totalled US $ 246 billion. Imports also
showed an increase of 21.2% and totalled US $ 350 billion. Strong growth
performance facilitated moderation of the current account deficit to a certain
extent.
STATEMENT OF STANDALONE AUDITED RESULTS
FOR THE QUARTER AND YEAR ENDED 31ST
MARCH, 2012
RS.
IN MILLIONS
|
Sr. No. |
Particulars |
Quarter Ended |
Year Ended |
|
|
|
|
31.03.2012 (Audited) |
31.12.2011 (Reviewed) |
31.03.2012 (Audited) |
|
1. |
Interest Earned/Net Income from sales/services |
9474.700 |
8,563.300 |
32,703.700 |
|
|
Interest / discount on Advances / bills |
7291.800 |
6,665.500 |
25,382.100 |
|
|
Income
on Investments |
2070.300 |
1,875.500 |
7,162.500 |
|
|
Interest on Balances with RBI & other inter bank funds |
44.900 |
21.600 |
90.000 |
|
|
Others |
67.700 |
0.700 |
69.100 |
|
|
Other Income |
1118.000 |
894.400 |
3,501.500 |
|
|
Total Income |
10592.700 |
9,457.700 |
36,205.200 |
|
|
Interest Expended |
6864.800 |
6,216.600 |
23,532.500 |
|
|
|
|
|
|
|
2. |
Operating Expenses |
1597.400 |
1,343.800 |
5,415.600 |
|
|
a) Employee Cost |
735.200 |
682.000 |
2,644.100 |
|
|
b) Other operating expenses |
862.200 |
661.800 |
2,771.500 |
|
|
Total Expenditure excluding provision and contingencies |
8462.200 |
7,560.400 |
28,948.100 |
|
|
|
|
|
|
|
3. |
Operating Profit Before Provisions and Contingencies |
2130.500 |
1,897.300 |
7,257.100 |
|
|
|
|
|
|
|
4. |
Provisions (other than tax) and Contingencies |
68.400 |
360.200 |
937.600 |
|
|
|
|
|
|
|
5. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
6. |
Profit (+)/ Loss (-) from Ordinary Activities before Tax |
2062.100 |
1,537.100 |
6,319.500 |
|
|
|
|
|
|
|
7. |
Tax expenses |
594.200 |
287.900 |
1,302.300 |
|
|
|
|
|
|
|
8. |
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax |
1467.900 |
1,249.200 |
5,017.200 |
|
|
|
|
|
|
|
9. |
Extraordinary Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
10. |
Net Profit for the period |
1467.900 |
1,249.200 |
5,017.200 |
|
|
|
|
|
|
|
11. |
Paid up Equity Capital |
1,071.800 |
1,071.800 |
1,071.800 |
|
|
|
|
|
|
|
12. |
Reserves excluding Revaluation reserve (as per balance sheet of previous
accounting year) |
26,010.400 |
20,200.400 |
26,010.400 |
|
|
|
|
|
|
|
13. |
Percentage of Share held by Govt |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
14. |
Capital Adequacy Ratio |
14.33% |
13.25% |
14.33% |
|
|
|
|
|
|
|
16. |
Basic and
Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
13.69 |
11.66 |
46.81 |
|
|
b) Basic and diluted EPS after extraordinary items |
13.69 |
11.66 |
46.81 |
|
|
|
|
|
|
|
17. |
Gross/Net NPA |
|
|
|
|
|
Amount of Gross NPA |
32099 |
32212 |
32099 |
|
|
Amount of Net NPA |
7878 |
6434 |
7878 |
|
18. |
Percentage of Gross/Net NPA |
|
|
|
|
|
% of Gross NPAs |
1.33 |
1.45 |
1.33 |
|
|
% of Net NPAs |
0.33 |
0.29 |
0.33 |
|
|
Return on Assets |
1.63 |
1.49 |
1.56 |
|
|
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
-Number of Shares |
103719706 |
103690273 |
103719706 |
|
|
- Percentage of Shareholding |
96.77% |
96.74% |
96.77% |
|
|
|
|
|
|
|
19. |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
850343 |
842443 |
850343 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
24.57% |
24.14% |
24.57% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
0.79% |
0.79% |
0.79% |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of Shares |
2610357 |
2647690 |
2610357 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter
and Promoter Group) |
75.43% |
75.86% |
75.43% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
2.44% |
2.47% |
2.44% |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Year Ended |
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
||
|
|
(Audited) |
(Unaudited) |
(Audited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
a)
Treasury Operations |
2454.600 |
2058.400 |
7891.600 |
|
|
|
b)
Corporate / Wholesale Banking Operations |
2835.100 |
3064.300 |
10950.000 |
|
|
|
c)
Retail Banking Operations |
5270.500 |
4287.200 |
17219.600 |
|
|
|
d)
Other Banking Business |
32.500 |
47.800 |
144.000 |
|
|
|
Total |
10592.700 |
9457.700 |
36205.200 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Treasury
Operations |
92.200 |
360.300 |
881.800 |
|
|
|
b)
Corporate / Wholesale Banking Operations |
824.600 |
746.900 |
2661.200 |
|
|
|
c)
Retail Banking Operations |
1883.200 |
1354.500 |
5886.400 |
|
|
|
d)
Other Banking Business |
31.400 |
47.000 |
140.300 |
|
|
|
Total |
2831.400 |
2508.700 |
9569.700 |
|
|
|
|
|
|
|
|
|
|
Unallocated Income / Expenses |
700.900 |
611.400 |
2312.600 |
|
|
|
Operating Profit |
2130.500 |
1897.300 |
7257.100 |
|
|
|
Income Taxes |
594.300 |
287.900 |
1302.300 |
|
|
|
Other Provisions |
68.300 |
360.200 |
937.600 |
|
|
|
Net Profit |
1467.900 |
1249.200 |
5017.200 |
|
|
|
|
|
|
|
|
|
|
Segment Assets |
|
|
|
|
|
|
a)
Treasury Operations |
105614.300 |
94441.100 |
105614.300 |
|
|
|
b)
Corporate / Wholesale Banking Operations |
100810.200 |
101295.400 |
100810.200 |
|
|
|
c)
Retail Banking Operations |
138681.700 |
118874.600 |
138681.700 |
|
|
|
d)
Other Banking Business |
0.000 |
0.000 |
0.000 |
|
|
|
e) Unallocated Assets |
31242.700 |
35037.600 |
31242.700 |
|
|
|
|
|
|
|
|
|
|
Total |
376348.900 |
349648.700 |
376348.900 |
|
|
|
|
|
|
|
|
|
|
Segment Liabilities |
|
|
|
|
|
|
a)
Treasury Operations |
107826.300 |
98393.600 |
107826.300 |
|
|
|
b)
Corporate / Wholesale Banking Operations |
89902.200 |
88941.000 |
89902.200 |
|
|
|
c)
Retail Banking Operations |
123676.000 |
104376.200 |
123676.000 |
|
|
|
d)
Other Banking Business |
0.000 |
0.000 |
0.000 |
|
|
|
e)Unallocated Assets |
27862.200 |
30764.300 |
27862.200 |
|
|
|
|
|
|
|
|
|
|
Capital Employed |
27862.200 |
27173.600 |
27862.200 |
|
|
|
Total
Liabilities |
376348.900 |
349648.700 |
376348.900 |
STATEMENT OF
ASSETS AND LIABILITIES AS ON 31 MARCH 2012
Rs. in Millions
|
Particular |
As on 31.03.2012 |
|
|
Audited |
|
|
|
|
Shareholders Funds |
|
|
Share Capital |
1071.800 |
|
Reserve and Surplus |
26010.400 |
|
|
|
|
Share Application Money |
0.000 |
|
Loan Funds |
|
|
Secured Loan |
321115.900 |
|
Unsecured Loan |
19725.600 |
|
Deferred Tax Liabilities (Net) |
0.000 |
|
Total |
367923.700 |
|
|
|
|
Fixed Assets |
2448.500 |
|
Investment |
105060.900 |
|
Deferred Tax Assets (Net) |
0.000 |
|
|
|
|
Current Assets, Loans and Advances |
|
|
Inventories |
0.000 |
|
Sundry Debtors |
0.000 |
|
Cash and Bank Balances |
20354.500 |
|
Loans and Advances |
239491.900 |
|
Other Current Assets |
8993.100 |
|
Total |
268839.500 |
|
|
|
|
Less: Current Liabilities and Provision |
|
|
Current Liabilities |
|
|
Provision |
|
|
Total |
8425.200 |
|
|
|
|
Net Current Assets / Liabilities |
260414.300 |
|
|
|
|
Total |
367923.700 |
Notes:
1. The above financial results for the year ended March
31,2012 have been reviewed by the Audit Committee of the Board and approved by
the Board of Directors at their meeting held on May 25, 2012.
2. There has been no change in the accounting policies followed during the year ended March 31, 2012 as compared to those followed in the preceding financial year ended 31st March 2011.
3. The figures for the quarter ended 31st March 2012 and the
corresponding quarter ended in the previous year as reported in these finance!
results are the balancing figure between audited figures in respect of the full
financial year and the year to date figures upto the end of the third quarter
of the relevant financial year.
4. The working results for the
year ended 31 st March 2012 have been arrived at after making provisions for
Non-performing Assets, Standard Assets, Depreciation on Investments, Taxes on
Income and other usual and necessary provisions.
5. The terms of the Reserve Bank of
7. The Board of Directors recommend Dividend of 140% i.e.,Rs.14/- per equity shares for the year 2011-12
8. Details of Investor Complaints for the quarter
ended 31st March 2012
|
i) Pending at the beginning of the quarter |
0 |
ii) Received during the quarter |
7 |
|
iii) Redressed during the quarter |
7 |
iv) Pending at end of the quarter |
0 |
9. Provision Coverage Ratio is 75.46% as on 31st March 2012
10. Figures of the
corresponding period have been re-classified/regrouped wherever considered
necessary.
FIXED ASSETS:
- Premises
- Building
CONTINGENT LIABILITIES:
|
Particulars |
Rs. in Millions
31.03.2011 |
Rs. in Millions
31.03.2010 |
|
Claims against the Bank not acknowledged as debts |
71.003 |
52.163 |
|
Liability on account of outstanding a)
Forward Exchange Contracts b) Derivatives |
31703.786 Nil |
33846.614 2000.000 |
|
Guarantees given on behalf of Constituents in |
17459.635 |
12993.138 |
|
Acceptances, Endorsements and other Obligations |
12366.630 |
9730.623 |
|
Other items for which the Bank is contingently liable |
Nil |
Nil |
AS PER WEBSITE DETAILS
PROFILE
Commercial banking in
The Karur Vysya Bank Limited, popularly known as KVB, one such endeavour, was set up in 1916 by two great visionaries and illustrious sons of Karur, the Late Shri M A Venkatarama Chettiar and the Late Shri Athi Krishna Chettiar to inculcate the habit of savings and provide financial assistance to traders and small agriculturists in and around Karur, a textile town in Tamil Nadu.
Though the bank started with a seed capital of Rs.0.100
Million, it has withstood innumerable changes and challenges in the past few
decades and has profitably emerged as one of the leading banks in
The bank is professionally managed and guided by the Board of Directors drawn from different fields with vision, experience, and knowledge and business acumen.
Shedding its inherent regional flavour, the bank has now
spread its wings far and wide with over 320 branches in 13 States and 3
KVB has consistently maintained strong fundamentals with a higher percentage of Capital Adequacy Ratio than mandated by the RBI. KVB has also been generating profits and rewarding its stakeholders with handsome dividends since inception.
BOARD OF DIRECTORS
Shri Katta Pradyumna
Kumar, Chairman
Shri K P Kumar is
the Non-Executive (Part - Time) Chairman of the Board. He graduated in Arts and
Law from
Shri K.
Venkataraman, Managing Director and Chief Executive Officer
Sri K.
Venkataraman assumed charge as the Managing Director and Chief Executive
Officer of the bank on 6th June, 2011. He holds a post graduate degree in
science and is a certified associate of Indian Institute of Bankers. He has
rich experience of over three decades in the field of banking. Prior to joining
KVB, he was the MD and CEO of SBI Global Factors Limited, Mumbai.
Shri M.G.S.Ramesh
Babu
Shri M.G.S.Ramesh
Babu, a graduate in Mathematics, is a Director on the Board of the Bank since
25th Aug 2006. Hailing from the texcity of Karur, he is running three SSI units.
He is a leading exporter of Home Textiles. He is representing SSI Sector.
Shri S. Ganapathi
Subramanian
CA S Ganapathi
Subramanian, aged 66, is a Commerce graduate and a Fellow member of the
Institute of Chartered Accountants of India. He is a partner in M/s Price Patt
and Company, Chartered Accountants, Chennai. He has over 20 years of experience
in audit of Banks including as Central Statutory Auditor for many Public Sector
banks. He has also been associated with the audit of Public sector undertakings.
He has over fand decades of experience in Income Tax matters and appearing
before Tribunals. He had also served as an Arbitrator appointed by the High
Candt of Madras. He is an Independent
Director in terms of Clause 49 of the Listing Agreement and represents the
majority sector ‘Accountancy’ (special knowledge). He holds agricultural lands
and is cultivating the same. He has ‘practical experience’ in Agriculture.
Shri K P Rao
Shri K
Parameshwara Rao is a Director of the bank since 25th September 2009. Shri K
Parameshwara Rao, is a Post graduate in Commerce. He had joined as a Scale 1
officer in Corporation Bank in February 1976 and was elevated to various
positions and finally as a General Manager of the Bank in the year 2005. He had
served as the Branch Manager of the said Bank at various centres and later
headed the banks’ zonal office at Mumbai and
Shri
V.Santhanaraman
Shri
V.Santhanaraman is a graduate in Commerce and a Certified Associate of the
Indian Institute of Bankers. He started his career as an Officer in Indian Bank
in 1970 and rose through various Officer and Executive level positions in that
Bank. He was appointed as an Executive Director of the Bank of Baroda in
October 2006, a post which he held up to his retirement in August 2009.
As ED of Bank of
Baroda, he led the Corporate Banking, Treasury, Risk Management, Balance Sheet
Management, and Information Technology, Inspection and Audit and Corporate
Planning activities of the bank. He also headed and was the Chairman of the
BOB’s international subsidiaries in
Shri G.
Rajasekaran
Shri G.
Rajasekaran, aged 59 years, belongs to the promoter family. He has served as a
director of the bank for two terms of 8 years each, viz., from 14.02.1990 till
13.02.1998 and 14.06.2000 to 08.06.2008. He has rich experience in textile
business. He represents minority sector ‘Business and Finance’ on the Board of
the bank.
Shri A J
Suriyanarayana
Shri A J
Suriyanarayana is a Director of the Bank since 27.10.2010. He is aged 38 years
and a graduate in Economics and a Master of Business Administration. Hailing
from the promoter family he is a dealer in petroleum products. He was on the
Board of the bank earlier for a short period from 04.12.1997 till 29.08.2000.
Shri K. Ramadurai
Shri K Ramadurai,
aged 67 years was co-opted as an Additional Director in the Board of the Bank.
He is a Commerce graduate and a Fellow Member of the Institute of Chartered
Accountants of India. He has over fand decades of experience in audit of Banks.
He was on the Board of the Bank as an Independent Director from 07.08.2001 to
06.08.2009. He represents Majority sector "Accountancy"
Shri K. K.Balu
Shri K K Balu aged
67 years was Co opted as an additional Director on the Board of the Bank. He is
a Graduate in Arts and Law. His other qualifications are PGDTL and DCBP. He has
started his career as an advocate practicing civil and criminal law at Erode in
March 1968 and practiced there till November 1978.Joined Syndicate Bank in
November 1978 as Law Officer, he got himself elevated to the rank of Divisional
Manager and worked in that bank till March 1989. He left Syndicate Bank to join
as an AGM in National Housing Bank,
After demitting
office of the Vice-Chairman of the CLB in September 2009 he is engaged in
consultancy work for corporate law and is an arbitrator. He is currently on the
panel of Council for National and International Commercial Arbitration,
He represents
majority sector “Law and credit recovery”
PRESS REALESE:
KVB’S BUSINESS
CROSSES RS 560000.000 MILLIONS AND NET PROFIT CROSSES RS. 5000.000 MILLIONS
Karur Vysya Bank
reported results for the year ended and three months ended March 2012.
Year-end Results:
Operating and Net
Profit:
The operating
profit of the bank crossed the figure of Rs.7000.000 Millions and stood at
Rs.7257.100 Millions for year ended 31st March 2012 as against Rs.6005.800
Millions for the corresponding period of previous fiscal, posting a growth of
20.83%.
The Bank also
recorded a net profit above the level of Rs.5000.000 Millions. Net Profit was
up 20.72% at Rs.5017.200 Millions against Rs.4155.900 Millions. The bank has
more than doubled the net profit figure from the level of Rs. 2358.400 Millions
within three years.
Net Interest
Income (NII):
Net Interest
Income (NII) for the year ended 31st March 2012 grew by 19.60% to Rs. 9171.200
Millions (Rs. 7668.500 Millions year ended 31st March 2011) on account of
growth in advances & investments. Net Interest Margin (NIM) fell marginally
to 3.08% as against 3.39% in the corresponding period of the previous year.
Total Income:
Total Income of
the bank stood at Rs. 36205.200 Millions for the period ended 31st March 2012
as against Rs.24820.300 Millions during the previous year, clocking an
impressive growth of 45.87%.
Business Level:
The bank recorded
an increase of 31.66% in its business mix and the total business stood at Rs. 563160.000
Millions during the year, up from the 427740.000 Millions recorded during the
previous year.
ROA:
Return on Average
Assets of the bank stood at 1.56% as for the year ended 31st March 2012.
Growth in deposits
and advances:
Total deposits
grew by 29.89% to Rs. 321110.000 Millions as at March 31, 2012 from Rs.
247210.000 Millions as at March 31, 2011. Gross advances grew by 34.08% on YoY
basis to Rs. 242050.000 Millions from Rs. 180520.000 Millions. The Balance
Sheet size grew by 33.34% on YoY basis to Rs. 376340.000 Millions from Rs.
282240.000 Millions.
Q4 Results: Net
profit gone up by 27.32%
Q4 net profit of
the Bank increased by 27.32% to Rs.1467.900 Millions from Rs.1152.900 Millions
earned during Q4 of previous fiscal. The operating profit went up by 46.03% to
Rs. 2130.500 Millions against Rs.1458.900 Millions earned during the
corresponding period of the previous fiscal. Net Interest Income grew by 23.49%
from Rs.2113.500 Millions to Rs.2609.900 Millions.
Capital Adequacy:
Capital Adequacy
of the Bank as per Basel II stood at 14.33% against the regulatory minimum
level of 9%.
Proposed Dividend:
The Board has
recommended a dividend of Rs.14/- per share (140%) for FY12. The
proposed dividend is higher than 120% declared in the previous year and
maintains the Bank’s track record of continuous dividends year after year.
Asset Quality:
The ratio of Gross
NPAs to Gross Advances has increased to 1.33% from 1.26% while the Net NPA has
increased from 0.07% to 0.33%. The Provision Coverage Ratio stood at 75.46%
Awards
- Bloomberg UTV Financial Leadership
Awards, 2012 – Best Private Sector Bank
- CNBC-TV18 Best Banks & Financial
Institutions Award, 2011 by CNBC-TV 18 – MCX – Best Old Private Sector Bank
- Business World – Price Waterhouse
Coopers Best Bank Awards, 2011 – Best
Small Bank & The Fastest Growing Small Bank -2011
- Financial Express India’s Best Bank
Award, 2011 – Best Old Private
Sector Bank – Runner up
- SFBC Kerala Excellence Award, 2010-11 –
Best Private Sector Bank
- FIBAC Best Bank Award, 2011 by FICCI -
IBA – Best Cost Efficient Bank
Private Sector Bank
- Business Today – KPMG Best bank Awards,
2011 – Best Mid-sized Bank in
Asset Quality & Best Mid-sized Bank – Runner up.
- IDRBT Banking Technology Excellence
Award, 2010-11 by Institute for Development and Research in Banking
Technology,
New initiatives
taken up by the bank during FY 2011 – 12:
· KVB transport
plus loan product introduced for financing transport operators for Term loan
and Working capital limits.
·
· Image based
account opening implemented
· Launched Anmol
Rewards programme for POS/Ecommerce transactions
· Door step
banking for cash pickup introduced.
· Opening of term
deposit account through net banking introduced.
· KVB - SBI Co
branded Credit card launched
· Integration with
payment Gateway Aggregator Tech process
· Direct Tax payment through Net Banking
Expansion
Initiatives:
During the year
the Bank undertook a massive expansion drive and added 82 branches to its
network, taking the total branches to 451. Further the Bank also added 337 ATMs
taking the total count of ATMs to 825. Employee strength increased from 4574 to
5673 as on March 31, 2012
Growth and
Prospects:
The Bank has
targeted a business level of Rs. 720000.000 Millions by March 2013. The bank
has also set up a robust online platform for customers to transact without
coming to the branch. These measures are expected to move the customers to
alternate channels of delivery. The Bank has also increased the number of
branches authorized to sell gold coins and/or silver bars. Further thrust is
being given to improve its performance in selling third party products.
The Bank has been
striving to offer its customers superior banking experience by maintaining high
standards of service quality backed by personal touch and operational
excellence. It has a long term vision of becoming a bank offering high quality
services across the entire range of financial solutions to its customers.
KARUR VYSYA IN TIE-UP WITH M&M TO PROVIDE VEHICLE FINANCE
April 10, 2012
MUMBAI: Private
sector lender, Subject has signed a preferred financier agreement with
automotive major Mahindra and Mahindra for providing auto finance to its
customers.
Under the
agreement, M and M customers will be able to avail of vehicle finance from any
of the 450-plus branches of KVB," a bank release said today.
Chief Executive
Officer and Managing Director of Karur Vysya, K Venkataraman, said, "KVB
is expanding its operations in commercial and passenger vehicle financing.
Customers of KVB will be benefited out of this tie-up since they will have
privileged access to the specialised services of M and M along with provision
of loans for purchase of vehicles at a comparatively low EMI."
M and M said that
they expect good response from dealers and customers post this arrangement.
"KVB's
specialised rates for bus operators, educational institutions and medium and
small enterprises will help Mahindra BOP and CV product range customers. With
highly competitive schemes for car loans and commercial vehicles, we are
hopeful of a good response from our dealers and customers," Senior Vice
President, Sales and Customer Care (Automotive Division) of M and M, Arun
Malhotra said.
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. 55.79 |
|
|
1 |
Rs. 86.37 |
|
Euro |
1 |
Rs. 70.07 |
INFORMATION DETAILS
|
Report Prepared
by : |
ACH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.