MIRA
INFORM REPORT
|
Report Date : |
16.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
CENTRAL BANK OF INDIA LIMITED |
|
|
|
|
Formerly Known
As : |
16th Floor, Chandermukhi, Nariman Point, Mumbai- 400 021, Maharashtra |
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|
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Registered
Office : |
Maharashtra |
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|
Country : |
India |
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|
Financials (as
on) : |
31.03.2012 |
|
|
|
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Date of
Incorporation : |
21.12.1911 |
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|
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|
Com. Reg. No.: |
11-000337 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.23531.154 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH1911PTC000337 |
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|
Legal Form : |
Nationalised Bank |
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Line of Business
: |
Subject is engaged in all kinds of Banking Business. |
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No. of Employees
: |
35901 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 |
|
Maximum Credit Limit : |
USD 498000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is wholly owned by the government of India until July 2007,
after the Bank’s initial public offering, GOI’S ownership declined to 80.2 per
cent. As on June 30, 2012, GOI’S shareholding was 79.15%. It is a well established and reputed Bank in India having fine track.
It is among the top 10 bank in India It’s asset quality is under pressure as seen in its high level of
gross NAPs and large quantum of restructured advances. However, trade relations are reported as decent. Business is active.
Payments are reported to be regular and as per commitment. The bank can be considered good for 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced controls
on foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of
persistently high inflation and interest rates and little progress on economic
reforms. High international crude prices have exacerbated the government's fuel
subsidy expenditures contributing to a higher fiscal deficit, and a worsening
current account deficit. Little economic reform took place in 2011 largely due
to corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ (Tier – I Perpetual Bond Issue) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
04.10.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+( Rs. 10.0 Billion lower Tier – II Bond Issue) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
04.10.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
16th Floor, Chandermukhi, Nariman Point, Mumbai- 400021, Maharashtra,
India |
|
Tel. No.: |
91- 22-66387818/ 66387777 |
|
Fax No.: |
91- 22-22835198 |
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E-Mail : |
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Website : |
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Zonal Offices: |
Located: ·
Agra ·
Ahmedabad ·
Bhopal ·
Chandigarh ·
Chennai ·
Guwahati ·
Hyderabad ·
Kolkata ·
Lucknow ·
Mumbai Metro Zonal Office ·
Muzaffarpur ·
Nagpur ·
New Delhi ·
Patna ·
Pune ·
Raipur |
DIRECTORS
As on 31.03.2012
|
Name : |
Shri M. V. Tanksale |
|
Designation : |
Director |
|
|
|
|
Name : |
Smt. V. R. Iyer |
|
Designation : |
Director |
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|
|
Name : |
Shri R.K. Dubey |
|
Designation : |
Director |
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|
Name : |
Shri Alok Tandon |
|
Designation : |
Director |
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|
|
|
Name : |
Shri Salim Gangadharan |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri Romesh Sabharwal |
|
Designation : |
Director |
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|
|
|
Name : |
Major (Retd.) Ved prakash |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri Guman Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Prof. N. Balakrishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri Brijlal Kshatriya |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri B. S. Rambabu |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(1) Indian |
|
|
|
Central Government / State Government(s) |
582635426 |
79.15 |
|
Sub Total |
582635426 |
79.15 |
|
(2) Foreign |
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
582635426 |
79.15 |
|
(B) Public
Shareholding |
|
|
|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
186000 |
0.03 |
|
Financial Institutions / Banks |
74756005 |
10.16 |
|
Insurance Companies |
4453915 |
0.61 |
|
Foreign Institutional Investors |
19806475 |
2.69 |
|
Sub Total |
99202395 |
13.48 |
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
8808303 |
1.20 |
|
Individuals |
- |
- |
|
Individual shareholders holding nominal
share capital up to Rs.0.100 Million |
35418184 |
4.81 |
|
Individual shareholders holding nominal
share capital in excess of Rs.0.100 Millions |
7629948 |
1.04 |
|
Any Others
(Specify) |
2421160 |
0.33 |
|
Clearing Members |
1137608 |
0.15 |
|
Non Resident Indians |
1140275 |
0.15 |
|
Directors & their Relatives &
Friends |
1145 |
- |
|
Trusts |
44810 |
0.01 |
|
Hindu Undivided Families |
97322 |
0.01 |
|
Sub Total |
54277595 |
7.37 |
|
Total Public
shareholding (B) |
153479990 |
20.85 |
|
Total (A)+(B) |
736115416 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0 |
|
(1) Promoter and Promoter Group |
0 |
0 |
|
(2) Public |
0 |
0 |
|
Sub Total |
0 |
0 |
|
Total (A)+(B)+(C) |
736115 416 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in all kinds of Banking Business. |
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|
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GENERAL INFORMATION
|
No. of Employees : |
35901 (Approximately) |
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Bankers : |
Reserve Bank of India |
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Facilities : |
Borrowings: (Rs.
in Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M/s Sagar and Associates Chartered Accountants |
|
|
|
|
Name : |
M/s G. S. A. and Associates Chartered Accountants |
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|
|
|
Name : |
M/s D. Rangaswamy and Company Chartered Accountants |
|
|
|
|
Name : |
M/s K. S. Aiyar and Company Chartered Accountants |
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|
|
|
Name : |
M/s Ghiya and Company Chartered Accountants |
|
|
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|
Name : |
M/s Samsand and Associates Chartered Accountants |
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|
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Subsidiaries: |
·
Cent Bank Home Finance Limited ·
Cent Bank Financial and Custodial Services
Limited |
|
|
|
|
Associates - |
Regional Rural Banks - i) Satpura Narmada Kshetriya Gramin Bank, Chhindwara ii) Surguja Kshetriya Gramin Bank, Ambikapur iii) Uttar Bihar Gramin Bank, Muzzaffarpur iv) Vidharbha Kshetriya Gramin Bank, Akola v) Ballia Etawah Gramin Bank, Ballia vi) Hadoti Kshetriya Gramin Bank, Kota vii) Uttarbanga Kshetriya Gramin Bank, Cooch Behar (II) Indo - Zambia Bank Limited |
|
|
|
CAPITAL STRUCTURE
As on
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs.30000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
736115416 |
Equity Shares |
Rs.10/- each |
Rs.7361.154 Millions |
|
1617000000 |
Perpetual non-cumulative Preference
Share capital |
Rs.10/- each |
Rs.16170.000 Millions |
|
|
Total |
|
Rs.23531.154
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
CAPITAL & LIABILITIES |
|
|
|
|
Capital (refer note 1) |
23531.154 |
20211.415 |
17711.415 |
|
Share Application Money |
- |
20256.836 |
- |
|
Reserves and Surplus |
100984.104 |
68265.778 |
59211.055 |
|
Deposits |
1961733.268 |
1793560.153 |
1621074.688 |
|
Borrowings |
129195.961 |
128879.794 |
73266.368 |
|
Other Liabilities and Provisions |
82552.905 |
66399.293 |
55452.712 |
|
TOTAL |
2297997.392 |
2097573.269 |
1826716.238 |
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of India |
131141.772 |
140819.916 |
170119.288 |
|
Balances with Banks and Money at Call and Short Notice |
10124.236 |
12008.097 |
22050.850 |
|
Investments |
592432.651 |
545044.883 |
505628.670 |
|
Advances |
1475128.503 |
1297254.066 |
1053834.857 |
|
Fixed Assets |
24739.090 |
24253.862 |
23432.881 |
|
Other Assets |
64431.140 |
78192.445 |
51649.692 |
|
TOTAL |
2297997.392 |
2097573.269 |
1826716238 |
|
Contingent Liabilities |
593913.114 |
433511.073 |
387400.766 |
|
Bills for Collection |
56771.907 |
35760.905 |
54002.408 |
PROFIT & LOSS
ACCOUNT
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
I. INCOME |
|
|
|
|
Interest Earned |
191494.994 |
152205.661 |
120643.062 |
|
Other Income |
13953.016 |
12650.414 |
17352.453 |
|
TOTAL |
205448.010 |
164856.075 |
137995.515 |
|
II. EXPENDITURE |
|
|
|
|
Interest Expended |
139808.592 |
139808.592 |
95190.129 |
|
Operating Expenses |
37489.952 |
39989.883 |
22220.172 |
|
Provisions and Contingencies |
22819.075 |
13389.804 |
10002.934 |
|
TOTAL |
200117.619 |
152331.974 |
127413.235 |
|
III. PROFIT/ LOSS |
|
|
|
|
Net Profit for the year |
5330.391 |
12524.101 |
10582.280 |
|
Profit brought forward |
14.789 |
11.287 |
11.282 |
|
TOTAL |
5345.180 |
12535.388 |
10593.562 |
|
IV. APPROPRIATIONS |
|
|
|
|
Transfer to : |
|
|
|
|
Statutory Reserve |
1332.598 |
3148.525 |
2645.570 |
|
Investment Reserve |
439.466 |
- |
466.232 |
|
Special Reserve u/s 36(1)(viii) |
- |
1000.000 |
- |
|
Staff Welfare Fund |
150.000 |
150.000 |
150.000 |
|
Revenue Reserve |
205.630 |
5277.293 |
5659.084 |
|
Reserve for Interest on JPY Swap Coupon |
- |
11.155 |
- |
|
Proposed Dividend - Preference Capital |
1285.921 |
1148.706 |
530.940 |
|
Proposed Dividend - Equity Capital |
1472.231 |
1374.051 |
889.111 |
|
Dividend Tax |
444.545 |
410.869 |
241.338 |
|
Balance Carried Over to Balance Sheet |
14.789 |
14.789 |
11.287 |
|
TOTAL |
5345.180 |
12535.388 |
10593.562 |
|
EPS (Basic and Diluted)
(Rs.) |
5.95 |
22.04 |
24.65 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2012 Unaudited |
|
Type |
1st
Quarter |
|
Interest Earned |
53026.200 |
|
Income On Investments |
11228.200 |
|
Interest On Balances With Rbi Other Inter Bank Funds |
7.300 |
|
Interest/ Discount On Advances/ Bills |
41682.900 |
|
Others |
107.800 |
|
Other Income |
3223.500 |
|
Total Income |
56249.700 |
|
Interest Expended |
39249.700 |
|
Operating Expenses |
9071.900 |
|
Total Expenditure |
9071.900 |
|
Operating Profit Before Provisions and Contigencies |
7928.100 |
|
Exceptional Items |
0.000 |
|
Provisions and Contingencies |
3529.400 |
|
Profit Before Tax |
4398.700 |
|
Tax |
1039.200 |
|
Profit After Tax |
3359.500 |
|
+/-Extraordinary Items |
0.000 |
|
+/-Prior Period Expenses |
0.000 |
|
Net Profit |
3359.500 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
------ |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
------ |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
------ |
|
26] |
Buyer visit details |
------ |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
No |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS;
Case Details
Bench:-Bombay
|
Stamp No.:-CAOST/4759 Filing Date: - 21/02/2012 Reg. No:- CAO/100/2012 Reg. Date:- 13/04/2012 |
|
Main Matter Stamp No:- RPWST/4757/2012
|
|
Peritioner:- JANATA MEN’S WEAR AND
ORS - Respondent:- CENTRAL
BANK OF INDIA AND ORS- Petn. Adv.:- MATHEWS J. NEDUMPARA
AND MRS. ROHII District:- MUMBAI |
|
Bench:- DIVISION Status:- Pre-Admission
Category:- CONDONATION OF
DELAY Next Date:- 20/11/2012
Stage:- FOR ORDERS [CIVIL SIDE MATTERS] Coram:- HON’BLE SHRI JUSTICE DR. D. Y. CHANDRACHUD HON’BLE SHRI JUSTICE A.A.SAYED Last Date:- 08/10/2012
Stage:- FOR ORDERS [CIVIL SIDE MATTERS] Last Coram:- HON’BLE SHRI JUSTICE
DR. D. Y. CHANDRACHUD HON’BLE SHRI JUSTICE A.A.SAYED |
|
Act:- Other Act |
Case Details
Bench:-Bombay
|
Stamp No.:-LPAST/24447/2012 Filing Date:- 04.09.2012 Reg. No:- LPA/174/2012 Reg. Date:- 04.09.2012 |
|
Main Matter Stamp No:- WPST/9593/2011
|
|
Peritioner:- NRC LIMITED-
Respondent:- CENTRAL BANK OF INDIA AND ORS.RES.- Petn.Adv.:- VIGIL JURIS District:- MUMBAI |
|
Bench:- DIVISION Status:- Pre-Admission Next Date:- 16/10/2012
Stage:- FOR ADMISSION - FRESH [CIVIL SIDE MATTERS] Coram:- HON’BLE THE CHIEF JUSTICE HON’BLE SHRI JUSTICE N.M.JAMDAR Last Date:- 08/10/2012 Stage:- FOR
ADMISSION - FRESH [CIVIL SIDE MATTERS] Last Coram:- HON’BLE THE CHIEF
JUSTICE HON’BLE SHRI JUSTICE N.M.JAMDAR |
|
Act:- Constitution of India |
PERFORMANCE
HIGHLIGHTS
• Total Business of
the Bank increased by Rs. 361350.000 Millions to Rs. 3468980.000 Millions from
Rs. 3107630.000 Millions in previous year, registering y-o-y growth of 11.63
per cent.
• Total Deposits increased
by Rs. 168170.000 Millions to Rs. 1961730.000 Millions, registering y-o-y
growth of 9.38 per cent.
• Gross Advance of
the Bank grew by Rs. 193180.000 Millions to Rs. 1507250.000 Millions,
registering y-o-y growth of 14.70 per cent.
• Operating Profit
increased to Rs. 28150.000 Millions from Rs. 25910.000 Millions in 2010-11 ,
registering y-o-y growth of 8.65 per cent
• Net Profit stood
at Rs. 5330.000 Millions in 2011-12 as against Rs. 12520.000 Millions in
2010-11.
• Capital Adequacy
Ratio (as per Basel-II) improved to 12.40 per cent from 11.68 per cent in
previous year.
• Net worth
increased to Rs. 105504.400 Millions from Rs. 69095.400 Millions.
• Gross NPA of the
Bank increased by Rs. 48790.000 Millions to Rs. 72730.000 Millions from Rs.
23940.000 Millions in previous year. In percentage term Gross NPA increased to
4.83 per cent in 2011-12 from 1.82 per cent in last year.
• Net NPA
increased to Rs. 45570.000 Millions from Rs. 8470.000 Millions in previous
year. Net NPA percentage increased to 3.09 per cent from 0.65 per cent in
previous year.
• Net Interest
Margin (NIM) reduced to 2.78 per cent from 3.31 per cent in 2011.
• Average Business
per Employee increased to Rs. 86.200 Millions from Rs. 83.500 Millions in
previous year.
• Net Profit per Employee
reduced to Rs. 0.151 Millions from Rs. 0.396 Millions in March 2011.
• Credit to
Priority Sector increased to Rs. 407490.000 Millions from Rs. 374690.000
Millions in previous year, recording y-o-y growth of 8.76 per cent.
• Agriculture
Advance of the Bank increased to Rs. 189500.000 Millions from Rs. 185450.000
Millions in 2010-11.
• Under the micro
credit (credit up to Rs. 50,000 per borrower), Bank has extended credit of Rs.
2160.000 Millions.
• Advances to
Micro and Small Enterprises (MSE) increased to Rs. 135180.000 Millions during
the year under review from Rs. 109990.000 Millions in previous year.
• During the year
13256 new Self Help Groups (SHGs) were formed, out of which 6797 SHGs have been
creditlinked.
• Under the
Government Sponsored Programmes, Bank has provided assistance to 13525 SGSY
beneficiaries,
4137 SJSRY
beneficiaries and 6244 PMEGP borrowers during the year 2011-12.
• Bank has
extended loan of Rs. 132140.000 Millions to the borrowers belonging to the
weaker section of the society.
• Education Loan
grew by 32.95 per cent during the year and the total loan reached to Rs.
20580.000 Millions.
• Bank has
established 46 Rural Self Employment and Training Institute (RSETI) across
India.
• Bank has
sponsored 7 Regional Rural Banks (RRBs) covering 57 districts of 7 states with
1806 branches.
• A target of 3725
villages (having population over 2000) have been allotted under Financial
Inclusion Plan. Bank has covered all the villages by 21st December 2011, well
before the targeted time of 31st March 2012.
• The corporate
credit of the Bank increased to Rs. 1067580.000 Millions from Rs. 849950.000
Millions in previous year registering y-o-y growth of 25.61%.
• The retail
credit grew by 39.72% from Rs. 125220.000 Millions in 2010-11 to Rs. 174960.000
Millions in 2011 12.
• Cent Param –
Salary Account Scheme introduced specially for the armed and para military
force with attractive
features like free
remittances, retail loans at concessional rates, customized credit cards etc.
• During the year
2011-12, Bank has earned commission of Rs. 135.300 Millions in life insurance
and Rs. 63.000 Millions in non-life insurance business.
• Their 67 Regions
have been declared as BIMA Region and 800 branches as BIMA Banks by LIC.
• Bank has introduced
Family Floater Rural Health Insurance Scheme with the tie-up arrangement with
general
insurance partner
Chola MS.
• A new recovery
scheme “Krishak Rahat Yojana” introduced for the recovery in NPA accounts of
Tractor/ Agriculture Loans and Rs. 155.100 Millions has been recovered during
the year.
• During the year,
7303 recovery camps were organized at different locations across the country
and recovered Rs. 7450.000 Millions.
• As on 31st March
2012, Bank has a network of 4011 branches across the country. During the year
283 branches have been opened, which includes 121 extension counters and 5
satellite offices converted to full-fl edged branches.
• Bank has
installed 1682 ATMs till 31st March 2012.
• Under the
organizational re-structuring process, Bank has delegated more powers to the
Regional Managers to ensure decision making faster and Zonal Managers will work
as Business Facilitator for Regional Offices for achieving Corporate Goals.
MANAGEMENT
DISCUSSION AND ANALYSIS
Part A – ECONOMIC
SCENARIO
GLOBAL
DEVELOPMENTS
The after effects
of the financial crisis of the 2008 have continued to impact global economy.
The recovery process which started since then is beginning to freeze and the
sovereign debt crisis in the euro zone area has started threatening the very
survival of the Euro Zone. The global economy grew by 3.9% in 2011 against 5.3%
in 2010 and expected to further fall to 3.5% in 2012 as per the International
Monetary Fund’s (IMF) April 2012 update of the World Economic Outlook (WEO). Gross
domestic product (GDP) growth in advanced economies declined to 1.6 % in 2011
compared to 3.2 % in 2010 and again expected to fall to 1.4% in 2012. Similar
trend is seen in emerging economies as they slowed to 6.2 % in 2011 compared to
7.5 % in 2010 and likely to fall to 5.7% in 2012.
DOMESTIC ECONOMY
Indian Economy in
2011-12 was surrounded by concerns of high inflation, bourgeoning fiscal
deficit and pronouncing current account deficit. The Economic growth moderated
to 6.5% as per revised estimates of CSO against 8.4% seen in 2010-11. The
growth has been disappointing on account of current uncertain global conditions
and one of the worst performances in domestic industrial sector.
All the three
sectors viz. agriculture, industry and services slowed down in 2011-12.
Agriculture and allied agriculture growth fell to 2.8% against a high
achievement of 7% in 2010-11, despite a record food grain production of 250
million tons in 2011-12.The contribution of agriculture and allied activities
to GDP is only 14% but slow-down in agriculture growth has severe impact on the
employment in this sector, that has a share in employment as high as 55%. The
growth in services sector including construction sector is estimated to grow at
8.5 % in 2011-12 as against 9.2% in 2010-11 reflecting the down-turn in
construction growth.
The industrial
growth slackened due to the disappointing performance of mining and
manufacturing. The index of industrial production for the 2011-12 grew at 2.8%
as against 8.2% in 2010-11.This is on account of slow recovery in the US and
Europe and due to tight monetary policy affecting the overall investors’
confidence. The month-wise growth in IIP exhibited high volatility on account
of fluctuation in growth of capital goods. The growth in capital goods declined
from 37% in June 2011 to negative 25% in October 2011. The growth in Index of
eight core industries viz. Coal, Crude oil, Natural gas etc. contributing 38%
to the IIP has also fell to 4.3% during April March 2011-12 compared to 6.6% during
the corresponding period of the previous year. There has also been decline in
capacity utilization in various infrastructure sectors, to name a few like
cement and thermal power during April-November 2011-12.
On external front,
the merchandise exports in 2011-12 has increased by 21% amounting to $304
billion, thereby surpassing the indicative target of $300 billion set for the
year. The imports however too increased by 32% amounting to $488 billion
resulting in trade deficit of $184 billion. This has widened current account
deficit (CAD) to US$ 53.7 billion (4.0% of GDP) from US$ 39.6 billion (3.3 % of
GDP) in April-December 2010.
The major concern
during FY 2012 has been the inflation. For the whole year headline WPI
Inflation remained high at around 9%, although it showed some moderation toward
the end of the financial year. It started with 9.7% in April 2011 reached its
peak at 10% in September 2011 and then declined to 6.9% in March 2012. The
major contributors to the high level of inflation are crude oil, primary
articles, metal and chemical prices.
The Rupee against
dollar has fallen sharply during the year. In beginning of the financial year
the exchange rate was at Rs. 44.37 /$ fell to Rs. 52.68/$ in December11 rose
moderately to Rs. 51.76 /$ in March12. This has been primarily because of the
large current account deficit and balance of payments deficit.
MONETARY
DEVELOPMENTS
For the FY
2011-12, the main focus of Monetary Policy was to curb inflation and anchoring inflationary
expectation. It was reflected in strong anti-inflation stance, RBI raised the
repo rate 13 times since March 2010. The overall liquidity position during the
year has remained in a squeezed mode. Average net injection of liquidity under
the daily liquidity adjustment facility (LAF) surged from a low Rs. 40000.000
Millions at the beginning of financial year to Rs. 50 thousand crore in
September 2011 to around Rs. 1.4 Lakh crore during February 2012 and further to
Rs. 1.6 Lakh crore during March 2012. To ease liquidity deficit, the RBI
conducted Open Market Operations (OMOs) and cut CRR from 6% to 5.5% in Third
Quarter Monetary Policy Review to further 4.75% i.e. by 75 bps on March 10,
2012.
Money supply (M3)
growth moderated to 13 % at end-March 2012, lower than the Reserve Bank’s
indicative trajectory of 15.5 % resulting in slower deposit growth.
BANKING
The Aggregate
deposit growth for the financial year has been 17.4%,that is marginally above
the 17% indicative target set by the RBI. The main reasons behind the slow
deposits growth were high inflation and depositors moving their funds to better
avenues like gold and real estate. The credit growth was 19.4%, that surpassed
the indicative target of 16% (revised downward from 18% set earlier in the
year). However, the credit growth has slowed in comparison to last year due to
slowdown in economic growth and battered sector of industries like textile,
steel, mining, infrastructure etc.
The RBI has
unveiled the guidelines on Basel III .These guidelines would become effective
from January 1, 2013 in a phased manner and will be fully implemented by March
31, 2018. As per these guidelines, Banks have to maintain a minimum overall
capital adequacy of 11.5% (against the current 9%) by March 31, 2018.
Part B –
PERFORMANCE OF THE BANK
BUSINESS
As on 31st March
2012, the total business of the Bank was Rs. 3468980.000 Millions, registering
a growth of 11.63% from the previous year figure of Rs. 3107630.000 Millions.
The operating profit reached to Rs. 28150.000 Millions from previous year
figure of Rs. 2591 crore, marking a growth of 8.65%. The Bank has posted net
profit of Rs. 5330.000 Millions in 2011-12 as against Rs. 12520.000 Millions in
previous year.
RESOURCE
MOBILISATION
The total deposits
as on March 31, 2012 stood at Rs. 1961730.000 Millions, registering a growth
rate of 9.38 % over previous year. Savings Bank Deposits increased to Rs.
525950.000 Millions in 2011-12 from Rs. 476450.000 Millions in last year.
Current Deposits declined from Rs. 154310.000 Millions in 2010-11 to Rs.
126800.000 Millions in 2011-12. The share of CASA deposits to total deposits
was 33.27 per cent. Term Deposits increased to Rs. 1308980.000 Millions with
y-o-y growth of 12.57 per cent from Rs. 1162800.000 Millions in 2010-11.
CREDIT
As of 31.03.2012,
the gross credit of the Bank stood at Rs. 150725 crore as against Rs. 131407
crore in the previous year, registering y-o-y growth of 14.70%. The growth in
credit is diversified in all segments with higher growth in retail lending and
industries viz. Iron and Steel, All Engineering, Other Textiles etc.
CREDIT MONITORING
DEPARTMENT
Bank has
introduced a well-defined Monitoring Policy, containing detailed guidelines on
SMA (Special Mention
Accounts) Management
which encompasses all areas of SMA management, Early Warning Signals,
Monitoring and Follow-up Measures and Reporting System.
The policy was
approved by the Board in May 2011 and implemented across the Bank with effect
from 1st July 2011. The policy will be reviewed annually.
An independent
vertical under an independent charge of Chief General Manager has been created
for Credit
Monitoring w.e.f.
1st August 2011.
As per Monitoring
Policy guidelines, Monitoring Committee is formed at Central Office level as
well as at the field level to review and monitor SMA accounts periodically.
Meetings were
also conducted at different locations at Regional Offices and Zonal Offices to
have one-to-one
interaction with
the SMA borrowers to chalk out strategies for recovery/up-gradation of the
accounts.
The Bank is also
implementing Centralized Loan Appraisal System and Supervision (CLASS) software
for monitoring Corporate, SME, Retail and Priority Sector advances on real-time
basis.
The Bank has also
submitted point-wise compliance to all the earlier Annual Financial Inspection
(AFI) Reports and the AFI Reports up to 2010 are closed and all the
observations of AFI 2011 have been replied to.
SELF HELP GROUPS
During the year
13256 groups were formed under the scheme by the Bank. Out of which 6797 groups
have been credit linked. Since inception of the scheme the Bank has formed
152190 SHGs out of which 95128 groups are credit-linked with outstanding
balance of Rs. 7665.700 Millions at the end of the year. Out of the
credit-linked groups, 76953 are women SHGs with total sanctioned limits of Rs.
6032.600 Millions which comes to 80.90% of total credit linked groups.
PERFORMANCE UNDER
LEAD BANK:
Their Bank is
shouldering the responsibility of Lead Bank in 48 districts of the country.
Their Lead Bank officers are coordinating with other banks in the district.
Particularly in matters like branch expansion and credit planning. They are
also coordinating with Govt. offices.
AGRICULTURAL DEBT
WAIVER AND DEBT RELIEF SCHEME 2008
Bank has lodged
the claim under Debt Waiver and Debt Relief scheme 2008 separately with RBI for
their reimbursement, the position is as under :-
(Rs. in Millions)
|
Debt Waiver
scheme |
Debt Relief
Scheme |
Total |
|||
|
A/cs |
Amount |
A/cs |
Amount |
A/cs |
Amount |
|
447000 |
97.854 |
67072 |
14.777 |
514072 |
112.631 |
RBI/Government of
India reimbursed the full amount of Rs. 1126.31 crore to Bank.
STATE LEVEL
BANKER’S COMMITTEE (SLBC)
Bank is convener of
SLBC in the state of Madhya Pradesh. During the year 2011-12, four SLBC
meetings were held to review and monitor the progress made in the State under
various parameters including Government sponsored programmes by different
development agencies.
GOVERNMENT
SPONSORED PROGRAMME (2011-12)
During the year,
the Bank has sanctioned loan under different Government sponsored programme as
under :
(Rs. in Millions)
|
Sr.No. |
Scheme |
Disbursement
during 2011-12 |
|
|
1 |
SGSY |
13525 |
13.418 |
|
2 |
SJSRY |
4137 |
2.601 |
|
3 |
PMEGP |
6244 |
18.597 |
ADVANCES TO WEAKER
SECTIONS
During the year,
the Bank has extended loans of Rs. 132142.200 Millions to various categories of
weaker sections which constitutes 10.07% of ANBC, which is above the target (10%)
envisaged by Government.
ADVANCE TO
MINORITY COMMUNITIES
Govt. of India in
its new Prime Minister’s 15 point programme for welfare of Minorities has
envisaged a target of 15% of priority sector lending to minority communities. Bank
has extended various loan facilities amounting to Rs. 61795.400 Millions to
541224 beneficiaries, belonging to different Minority communities which
accounts for 15.16% of Priority Sector lending as on 31.03.2012.
ADVANCES TO WOMEN
BENEFICIARIES
Credit
disbursement to women beneficiaries, has improved over the past year resulting
the outstanding credit to women as on 31st March 2012 at Rs. 65851.400
Millions. This is 5.02 % of ANBC as against the stipulated RBI norms of 5% of
ANBC.
DIFFERENTIAL RATE OF
INTEREST (DRI)
Advances under DRI
scheme were Rs. 351.800 Millions on 31st March 2012.
CENTRAL KISAN
CREDIT CARD (CKCC)
Bank has issued
Kisan Credit Cards to 1369858 beneficiaries till 31st March 2012, amounting to
Rs. 84280.500 Millions.
SOCIAL SECURITY
SCHEMES
1. JANSHREE BIMA
YOJANA
The scheme is
operated in association with LIC of India to provide life insurance cover to
rural and urban poor women, who are below or marginally above the poverty line
and who are members of credit linked women SHGs of their Bank. Bank has already
covered 21267 women beneficiaries with premium amounting to Rs. 212.600
Millions during the year 2011-12.
2. RASHTRIYA
KRISHI BIMA YOJANA
Under the scheme,
cover is extended to the farmers for the losses due to non-preventable risks
like natural calamities etc. The above scheme is available throughout the
country for cereals, oilseeds in the notified states / areas.
3. CENT JANATA
CREDIT CARDS (CJCC)
Bank has issued 34261
cards (including Overdraft accounts) amounting to Rs. 347.500 Millions to
beneficiaries residing in the rural and semi urban areas to meet their
requirements.
4. RURAL GODOWNS
AND WAREHOUSES / COLD STORAGES
Bank has extended
advances for construction of rural godowns and warehouses / cold storages to
362 accounts
amount is Rs.
6857.800 Millions so that farmers are not compelled to make distress sale of
their produce during peak season. Bank has extended advance for warehouse and
cold storage in various accounts and farmers are taking benefits of these
schemes. This does not include advance against warehouse receipts.
5. “CENTRAL BANK
OF INDIA SAMAJIK UTTHAN AVAM PRASHIKSHAN SANSTHAN” (CBI-SUAPS)
Bank has opened 49
FLCCs. FLCCs to provide free Financial Literacy to the villagers on the various
banking products and counseling to distressed farmers / borrowers, irrespective
of clientele.
6. RURAL SELF
EMPLOYMENT AND TRAINING INSTITUTE (RSETI)
Bank has
established 46 RSETIs (44 in lead districts and two in non lead district
allotted under SLBCs). Under this 715 training programmes conducted and 23289
candidates were trained.
7. INDIRA AWAS
YOJANA
Bank has extended
loan of Rs. 10.115 Millions to 509 beneficiaries under the scheme for
construction of dwelling units.
FINANCIAL
INCLUSION
3725 villages
having population more than 2000 have been allotted to the Bank to cover under
Financial Inclusion Plan by March 2012. Bank has covered all these villages by
21 December 2011, 3629 villages have been covered through Business
Correspondent model and 96 villages have been covered through brick and mortar
branches.
A total of 8012
villages, including villages with population less than 2000, have been covered
under financial inclusion and 4701 Business Correspondents were appointed. They
have issued 30.93 lacs Smart Cards in these villages. All the accounts have
been migrated to their CBS.
They have
developed fi ve tailor made products exclusively to be delivered through BC
Model.
Cent Bachat
khata - No Frill Account for making and receiving remittances.
Cent Vikas
khata - SB a/c with limited OD facility up to Rs. 2500/-
Cent Smart
Kisan Credit Card - Entrepreneurial/consumption credit to farmers up to Rs.
25000.
Cent Smart
General Credit Card - Entrepreneurial/consumption credit to
non-agriculturist up to Rs.10000.
Cent Variable
Recurring Deposit Scheme - Pure deposit product for term up to 3 years with
variable installments.
Bank has also
launched an urban inclusion project at Delhi and NCR.
All 3662 villages,
with population above 2000, allotted to their 7 sponsored RRBs under Financial
Inclusion Plan have also been covered.
OPERATIONS
Customer Grievance
Bank has
introduced many new concepts during this fi nancial year for improving Customer
Services.
A customer can
open an account in their bank without introduction from existing customer.
Bank has started
issuing ATM card to minors also.
Their Bank has
introduced new policy for “Senior Citizens/Disabled/ Incapacitated Account Holders-2012”
.
Their bank has
implemented recommendations of Damodaran Committee on Customer Service.
Customer
Grievances
Their Bank has
started 24x7 hours Call Center with Toll Free Number 1800 200 1911 for
providing a better avenue for redressal of grievances to Customers. The
Customer Grievances Redressal Mechanism has been made fully on-line for quick
disposal of grievances. Their Grievances Redressal Mechanism has been adjudged
as the best in the Customer Satisfaction survey conducted by Outlook Financial.
IBR
Consequent upon
brining all the branches under Core Banking Platform, a new IBR System
‘C2C’(Core-to-Core) implemented w.e.f. 01.02.2012. The new System has
One-to-One matching of entries (Auto Reconciliation) which was not available in
the old system and many other features regarding issue and payment of Demand
Drafts, Inter Branch Transactions and Inter - Bank Cash Transfer.
RAJBHASHA
Bank has been
awarded with ‘Indira Gandhi Rajbhasha
Shield’ for the best implementation of Official Language Policy of
Government by Official Language Department, Ministry of Home Affairs,
Government of India during the financial year. The Shield was received by Shri
Mohan V.Tanksale, Chairman and Managing Director from the Hon’ble President
Smt. Pratibha Devisingh Patil in a grand function organized at Vigyan Bhawan,
New Delhi.
Their Bank has
also received an award shields/prizes meant for Banks and Financial
Institutions by Reserve Bank of India under the ‘Reserve Bank of India Governor Shield Competition’ for the
best Implementation of Official Language in Linguistic Region ‘A’ and ‘B’.
Further, in this
year their Bank has been awarded for the best performance in implementation of
Official Language Policy in Maharashtra by Maharashtra State Level Bankers
Committee and in Gujarat by Gujarat State Level Bankers Committee.
During financial
year, various Town Official Language Implementation Committee (TOLIC) working
under the Government of India, Ministry of Home Affairs, Official Language
Department have given in all 30 awards/prizes to their various Regional
Offices, Zonal Offices and Branches. Town Official Language Implementation
Committee, Bhopal and Town Official Language Implementation Committee Raipur,
for which their Bank is convener, have been awarded by Government of India,
Ministry of Home Affairs, Official Language Department.
Committee of
Parliamentary on Official Language inspected their Kalimpong Branch and
Kursiang Branch under Zonal Office, Kolkata and Manali Branch under Zonal
Office, Chandigarh in respects Implementation of Official Language, this year.
The efforts and steps for implementing Official Language Policy by their Bank
were very well appreciated.
Their Bank has
also provided facilities to work in Hindi under Core Banking Solutions. Their
Bank is providing passbook, draft, fixed deposit receipts and statements in
Hindi to their customers on their demand. Their Bank sending the SMS in Hindi
as well as in 7 different regional languages to their esteemed customers.
During this year,
Bank has organized Rajbhasha Seminar in Bhopal, Delhi and Mumbai in the month
of August, September and October, 2011 respectively. Besides this, three 2 days
Special Seminar were arranged in Bhopal and Mumbai for all their Rajbhasha
Officers. Further, Special Rajbhasha Seminar was organized for Rajbhasha
Officers in Mumbai on 27th January, 2012.
Rajbhasha
Department, Central Office has played an important role in publishing their
Bank’s ‘History Book’ in Hindi. This book was released by Dy. Governor, Shri
Anand Sinha, Reserve Bank of India on 29th March, 2012 at the function
organized at the Chandermukhi auditorium.
Some of the
important points to be implemented during this financial year are as under:
1. On-line
submission of Quarterly Progress Report under web base reporting.
2. Extant
facilities of printing the Passbook, Demand Draft, Fixed Deposit Receipt and
Statements in Hindi to be
extended in most
of the branches so that maximum number of their customers can utilize this
facility.
3. To win maximum
prizes awarded by Rajbhasha Department, Ministry of Home Affairs, Government of
India and
Reserve Bank of
India.
4. To increase potentiality
and enhancement in performance, training will be imparted to all the Rajbhasha
Officers.
CORPORATE
COMMUNICATIONS
During the year,
under their corporate branding exercise through national and regional
newspapers in absolute terms, they have reached to a circulation of 2013.60
lacs with an expenditure of Rs. 81.956 Millions providing us a minimum recall
value of Rs. 0.40. For creating and enforcing brand equity among executives and
businessman, niche publications were used as a media of communications time to
time during the review yearly period ended March 2012.
Looking to their
Centenary Year Corporate Publicity for creating continuous awareness about
their brand, services and products through Print, Electronic and Outdoor Media
has been carried out by the corporate office. During the process, both budgeted
and non-budgeted campaigns/ publicity were carried out for achieving the
marketing objective of the Bank. To increase the visibility during Centenary
year all their office premises have been illuminated and they have taken prime
hoarding sites for display of their Centenary journey.
During the
Centenary year different programmes were organized at all the centres.
Concluding programme was organized at New Delhi and Mumbai. The programme held
on 21.12.2011 at Delhi was graced by Shri Pranab Mukherjee, Honourable Finance
Minister, GOI, Shri Namo Narain Meena, MOS, GOI, Shri D.K.Mittal (IAS),
Secretary, Dept. of Financial Services, MOF, GOI . Their History Book was
released during this auspicious event. The programme held in Mumbai on
26.12.2011 was graced by Chief Minister of Maharasthra, Shri Prithviraj Chavan
and during the event Unsung Heroes, Valued VIP customers and Ex-Top Executives
were felicitated.
During the year
Bank has telecasted TVC showcasing a 100 years journey of their Bank coinciding
with the progress of the nation. This TVC has created buzz in the market. It
was liked by every viewer. They have telecasted following TVCs during the year:
Three products
viz. Cent Home, Cent Vehicle, Cent Jewel
TVC on Centenary
Year – Bank’s Corporate film 45 seconds
CMD’s Speech on
Radio on 21st Dec. 2011
Vignette of their
Bank on TV on 26th Dec. 2011
They have their
presence on following websites:
www.legalera.in –
for providing information on legal matters
www.eaclubdelhi.in - information of various things in and around Delhi
Their branding
efforts during the year has shown a marked progress in its brand performance in
Brand Finance’s Top 500 Global Financial Brands, Bank has moved up from its
ranking of 390 in 2011 to 329 in 2012 , a jump of 61 places in overall ranking
CONTINGENT
LIABILITIES
(Rs. in Millions)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
I. (a) Claims against the Bank not acknowledged as Debts |
1556.441 |
1815.342 |
|
(b) Disputed income tax demands under appeals, revisions, etc |
14245.860 |
6016.360 |
|
II. Liability for partly paid Investments |
0.000 |
0.579 |
|
III. Liability on account of outstanding forward exchange contracts |
416474.984 |
288054.433 |
|
IV. Guarantees given on behalf of constituents |
|
|
|
|
76150.102 |
66749.394 |
|
b) Outside India |
|
|
|
V. Acceptances, Endorsements and Other Obligations |
85062.529 |
61796.895 |
|
VI. Other item for which the bank is contingently liable |
423.198 |
8500.000 |
PRESS RELEASE
Central Bank of India raises Rs 5000.000 Millions through bond offer
Friday, September 28, 2012, 23:45
Mumbai: Central Bank of India Friday said it has raised Rs 5000.000 Millions by issuing bonds via private placement basis.
"...The Bank on September 28, 2012 has raised Rs 5000.000 Millions by issue
and allotment of 5000 unsecured Perpetual Tier-I Bonds (Series II) of face
value of Rs 1.000 Millions each on private placement basis," it said in a
BSE filing.
It, however, did not provide further details.
The leading public sector bank had posted a profit of Rs 3360.000 Millions and
total income of Rs 56250.000 Millions in the April-June quarter.
Besides, its deposits were Rs 1969770.000 Millions in the June quarter, while
its gross NPAs in the quarter had stood at Rs 75100.000 Millions.
FIXED ASSETS:
·
Premises
·
Furniture, Lifts, Safe Vaults
·
Vehicles
·
Air conditioners, Coolers, Typewriters etc.
·
Computers including Systems Software
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 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.53.12 |
|
|
1 |
Rs.85.15 |
|
Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.