MIRA INFORM REPORT

Report Date :

19.08.2013

IDENTIFICATION DETAILS

Name :	ELECTRACARD SERVICES PRIVATE LIMITED
Formerly Known As :	PORTECO PRIVATE LIMITED
Registered Office :	1^st Floor, Building No.4, Commerzone, Samrat Ashok Path, Yerwada, Pune – 411006, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.03.2000
Com. Reg. No.:	25-014585
Capital Investment / Paid-up Capital :	Rs.11.057 Millions
CIN No.: [Company Identification No.]	U72200PN2000PTC014585
TAN No.: [Tax Deduction & Collection Account No.]	PNEE01741F
PAN No.: [Permanent Account No.]	AABCE4413D
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Software Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ [Cash Credit]
Rating Explanation	Moderate risk of default.
Date	18.07.2013

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 :	1^st Floor, Building No.4, Commerzone, Samrat Ashok Path, Yerwada, Pune – 411006, Maharashtra, India
Tel. No.:	91-20-66272100/ 30925100
Fax No.:	91-20-30925399
E-Mail :	sakharam.kumbhar@opussoft.com marketing@electracard.com arjit_sarker@mastercard.com
Website :	http://www.electracard.com
Branch Office :	Located At: · Mumbai · Chennai
Overseas Office :	Located At: · America · Middle East and Africa · Asean

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Madhusudan Nagarur Gopinath

Designation :

Whole-time Director

Address :

C-62, Sunder Apartment, Opposite Diamond, Sion Trombay Road, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

17.07.1959

Date of Appointment :

23.08.2008

DIN No.:

00028272

Other Directorship :

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U72200MH1997PTC107600	OPUS SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	28/04/1997	28/04/1997	Active	NO
2	U72200PN2000PTC014585	ELECTRACARD SERVICES PRIVATE LIMITED	Whole-time director	21/07/2010	23/08/2008	Active	NO

Name :

Mr. Ramesh Laxman Mengawade

Designation :

Managing Director

Address :

Bungalow – 12, Kapil Malhar Baner, Pune – 411007, Maharashtra, India

Date of Birth/Age :

25.03.1961

Date of Appointment :

10.03.2000

DIN No.:

00028319

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200MH1997PTC107600	OPUS SOFTWARE SOLUTIONS PRIVATE LIMITED	Managing director	28/04/1997	28/04/1997	-	Active	NO
2	U72100TN2000PTC044248	SHEBZ DOT COM PRIVATE LIMITED	Director	25/02/2000	25/02/2000	17/03/2010	Active	NO
3	U72200PN2000PTC014585	ELECTRACARD SERVICES PRIVATE LIMITED	Managing director	27/08/2010	10/3/2000	-	Active	NO
4	U72200PN2012PTC141843	ELECTRANET PAYMENTS PRIVATE LIMITED	Director	4/1/2012	4/1/2012	-	Active	NO

Name :

Mr. Prashant Laxman Mengawade

Designation :

Whole-time Director

Address :

C-104, Mantri Kinara, Bhau Patil Road, Bopodi, Pune – 411003, Maharashtra, India

Date of Birth/Age :

04.01.1973

Date of Appointment :

23.08.2008

DIN No.:

01843314

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U72200MH1997PTC107600	OPUS SOFTWARE SOLUTIONS PRIVATE LIMITED	Whole-time director	28/09/2007	2/10/2006	Active	NO
2	U72200PN2000PTC014585	ELECTRACARD SERVICES PRIVATE LIMITED	Whole-time director	21/07/2010	23/08/2008	Active	NO

Name :

Mr. Arijit Ranjan Sarker

Designation :

Director

Address :

E-18B, Windsor Court, Phase 4, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

01.04.1971

Date of Appointment :

29.03.2012

DIN No.:

00249732

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72900DL2003PTC120833	ANALEC INFOTECH PRIVATE LIMITED	Director	10/6/2003	10/6/2003	-	Active	NO
2	U74899DL1993ULL055761	GE CAPITAL SERVICES INDIA	Whole-time director	1/9/2008	1/9/2008	9/10/2009	Active	NO
3	U72200PN2000PTC014585	ELECTRACARD SERVICES PRIVATE LIMITED	Additional director	29/03/2012	29/03/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Mastercard Asia Pacific Pte Limited	150157
Opus Software Solutions Private Limited	955548
TOTAL	1105705

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	13.58
Bodies corporate	86.42
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Providing Software Services.

Products :

Products Description	Item Code No.
Software Services	8524

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited, 1262-B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411004, Maharashtra, India

· Corporation Bank, Industrial Finance Branch, 14, Pune Mumbai Road, Wakdeadi, Pune – 411003, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Cash Credit Facilities From Banks	45.734	43.840
TOTAL	45.734	43.840

Banking Relations :	--
Auditors :
Name :	BBSR and Company Chartered Accountant
Address :	703, 7^th floor, Godrej Castlemaine, Next to Ruby Hall Clinic, Bund Garden Road, Pune – 411001, Maharashtra, India
PAN No:	AAKFB4397F
Holding Company :	Opus Software Solutions Private Limited, India CIN No.: U72200MH1997PTC107600
Subsidiaries :	· ElectraCard Service Inc. · ElectraCard Services FZ LLC · ElectraCard Services PTE Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1105705	Equity Shares	Rs.10/- each	Rs.11.057 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		11.057	11.057	0.869
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		300.849	372.528	101.485
4] (Accumulated Losses)		0.000	0.000	(41.315)
NETWORTH		311.906	383.585	61.039
LOAN FUNDS
1] Secured Loans		45.734	43.840	5.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		45.734	43.840	5.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		357.640	427.425	66.039
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		109.780	42.305	37.882
Capital work-in-progress		0.810	0.000	10.929
INVESTMENT		32.592	1.153	0.000
DEFERREX TAX ASSETS		9.012	4.864	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	143.400	143.948	67.901
	Cash & Bank Balances	72.228	84.419	6.910
	Other Current Assets	108.027	211.398	13.033
	Loans & Advances	90.239	60.409	26.619
Total Current Assets		413.894	500.174	114.463
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	131.974	54.897	31.081
	Other Current Liabilities	59.836	53.565	63.866
	Provisions	16.638	12.609	2.303
Total Current Liabilities		208.448	121.071	97.250
Net Current Assets		205.446	379.103	17.213
MISCELLANEOUS EXPENSES		0.000	0.000	0.015
TOTAL		357.640	427.425	66.039

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	535.384	544.220	414.857
		Other Income	32.898	9.043	3.999
		TOTAL (A)	568.282	553.263	418.856
Less	EXPENSES
		Employees Benefit Expenses	296.884	363.369	345.721
		Other Expenses	324.900	269.133
		TOTAL (B)	621.784	632.502	345.721
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(53.502)	(79.239)	73.135
Less	FINANCIAL EXPENSES (D)		9.157	3.963	6.619
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(62.659)	(83.202)	66.516
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.283	23.709	13.591
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(86.942)	(106.911)	52.925
Less	TAX (H)		3.293	(4.306)	8.528
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(90.235)	(102.605)	44.397
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(143.920)	(41.315)	(85.712)
	BALANCE CARRIED TO THE B/S		(234.155)	(143.920)	(41.315)
	EARNINGS IN FOREIGN CURRENCY		NA	262.376	82.646
	Earnings / (Loss) Per Share (Rs.)		(81.60)	(98.20)	46.46

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(15.87)	(18.55)	10.60
Net Profit Margin (PBT/Sales)	(%)	(16.23)	(19.64)	12.76
Return on Total Assets (PBT/Total Assets}	(%)	(16.60)	(19.70)	34.74
Return on Investment (ROI) (PBT/Networth)		(0.27)	(0.27)	0.87
Debt Equity Ratio (Total Debt/Networth)		0.15	0.11	0.08
Current Ratio (Current Asset/Current Liability)		1.99	4.13	1.18

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	Yes
8]	No. of employees	No
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	--
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	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The Registered Offices of the company has been shifted from 201/202 Mayfair Towers, A Wing, II Floor, Pune-411005, Maharashtra, India, to the present address w.e.f. 14.08.2008.

BACKGROUND:

The company was incorporated on 10^th March 2000 and started its operations of processing from June 2006. The company is a subsidiary of the Opus Software Solutions Private Limited (Opus) and was established with the objective to aggregate the business of software products from other software business of Opus. The company has acquired “product Business” from Opus Via a business transfer agreement dated 22^nd September, 2008.

The company provides third party processing services and solutions for credit, debit and prepaid card, EFT switching and internet payment gateway solutions to Banks. The company has suite of produces with an IPR under the name of ‘Electra™’. The company gives its customers the choice and flexibility to either license the Electra products suite or benefit through an end-to-end hosted solutions.

FIXED ASSETS:

• Office Equipments
• Computer Hardware
• Furniture and Fixtures
• Vehicles
• Electrical and Networking Installation

WEBSITE DETAILS:

OVERVIEW:

Subject offers solutions that transcend the typical ‘one size fits all’ third party processing offerings which pervade the market today.

They provide solutions across the Acquiring, Issuing and Risk management domain that are highly scalable and customizable to suit rapidly changing business and technology environments.

Company utilizes proven technology and a low cost business model to gain competitive advantage over traditional companies working in this domain.

The multi-currency and multi-lingual platform, together with their innovative business model, supports the needs of multi-national organizations worldwide.

PRESS RELEASE:

AFTER ATM PAYMENT CARD FRAUD VIA ELECTRACARD SERVICES, ENSTAGE, INDIA'S IT SECTOR TAKES OUTSOURCING HIT

MAY 15, 2013

A breach of security at two payment card processing companies in India that led to heists at cash machines around the world has reopened questions on the risks of outsourcing sensitive financial services to the Asian nation.

Global banks that ship work to be processed in India, either in-house or to big IT services vendors, were already under pressure to step up oversight of back-office functions after a series of scandals last year.

Last week, U.S. prosecutors said a global criminal gang stole $45 million from two Middle Eastern banks by breaking into the two card processing companies based in India and raising the balances and withdrawal limits.

"India is exposed in two ways: The threat that the same theft could happen in India and the fact that the outsourcing industry will also get affected," said Arpinder Singh, partner and national director for fraud investigation and dispute services at consultancy Ernst and Young.

The episode is reopening debate on banks sending work requiring a high degree of confidentiality to offshore locations.

"It is the weakest link," said Shane Shook, an expert with U.S. cyber-security firm CylanceInc who has helped financial firms conduct investigations into some major cyber crimes.

"I think the lesson is they need to pull back on what they've outsourced. When you're giving a third party, the outsourced entity, the ability to access credit limits or cash limits of the consumers you're managing the finances for, you're giving up control that is your fundamental responsibility."

India's $108 billion IT services industry is the world's

E-REVENUE GATEWAY PARTNERS WITH ELECTRACARD SERVICES TO INTRODUCE CONTACTLESS ELECTRONIC PAYMENTS IN WEST AFRICA

PROMOTES CASHLESS TAX PAYMENTS ACROSS THE COUNTRY

PUNE, AUGUST 01, 2013: ElectraCard Services (ECS), a leading provider of software and processing solutions for electronic payment systems, powers e-Revenue Gateway (e-RG), a payment processing and electronic transaction switching company, to launch contactless electronic payments in Nigeria.  ECS’ PA-DSS compliant platform will help e-RG to launch programs with multiple financial institutions and channels like ATM/ POS/ Internet/ Mobile on the same platform. Contactless, otherwise commonly known as “tap and go” payment cards, are more convenient to use and perfectly aligns to “Cashless Nigeria” initiative of Central bank of Nigeria (CBN). 

The eRG payment cards offer consumers a choice of debit or prepaid Smart Cards with the first NFC (Near Field Communication) capabilities in the country. e-RG’s platform is meant to better serve clientele in making and accepting payments, tax remittances and utility bill payments. This is the next generation payment technology that enables the customers to make payments without swiping their card.

The launch of this card by e-RG enables all card users to pay their bills in a safe, secure and seamless environment along with the use of the card for personal requirements. The electraiTx suite of products will assist e-RG in its plans to increase the card base to 50 Million users in the next five years. The CBN’ Cashless Policy is a vision of a world beyond cash and believes that electronic payments can enable economic growth and create a more financially inclusive economy.

Mr. Ramesh Mengawade, CEO, ElectraCard Services said, “We are extremely proud to implement the electra suite of products for e-RG as it is the first-of-its-kind project in Nigeria. The electra suite offers customers the flexibility to implement innovative payment solutions and empowers them to deploy new services in the market quickly. We are certain that this project will be a trendsetter and will raise productivity and provide widespread benefits to consumers.” 

Mr. Benjamin Adebajo, CEO, e-Revenue Gateway said, “We are very happy with our choice in ECS, as they have been able to provide us with end-to-end solutions for our payment requirement. The ECS suite is scalable and provides enhanced security, ease of integration and their expertise in working with MasterCard PayPass makes them the ideal choice.”

ABOUT E-REVENUE GATEWAY

E-Revenue Gateway (e-RG) is a payment processing and electronic transaction switching company. The company is setup to handle revenue collection across all e-payment channels with online, real time reporting with volume processing of prepaid, debit, credit card and EFT POS transactions.

E-RG was formed by leading and experienced world-class IT firms with the aim of promoting secure payments across multiple payment channels, Recurring Billing System, Remittances and Reporting in Nigeria and Africa as a whole. E-RG provides support to automate transactions through these channels and provides links to Banks via multiple interfaces. For more information, please visit: http://e-revenuegateway.com/ 

ABOUT ELECTRACARD SERVICES

ElectraCard Services, a subsidiary of Opus Software Solutions, is a leading provider of software solutions and processing services for electronic cards and payment systems across the globe. ElectraCard Services facilitates banks and financial institutions, retailers, exchange houses and telcos to electronically process, in real-time, card transactions, online transactions, mobile payments and services, and contactless payments. ECS is a PCI-DSS certified Third Party Processor (TPP) for MasterCard® and VISA® across the issuing and acquiring space. ECS’ extensive global experience with deep domain knowledge and a comprehensive and robust solution enables the company to provide cost effective solutions that address the flexibility challenges of today’s financial market.

AB BANK SELECTS ELECTRACARD SERVICES FOR ATM NETWORK EXPANSION

ECS TO POWER PAYMENT TRANSACTIONS FOR DOMESTIC CBL NETWORK

PUNE, JULY 23, 2013: ElectraCard Services (ECS), a leading provider of software solutions and processing services for electronic payment systems, announced that AB Bank, the first private sector bank in Bangladesh, has chosen ECS’s electra iTx series - the latest version of the electra payment suite to run their ATM network and process credit and debit cards. ECS has provided AB Bank with their PA-DSS certified electraSWITCH®, electraDEBIT® and electraCREDIT® solutions from the product suite.

AB Bank runs a domestic network of 230 ATMs and is looking to rapidly expand their services within the country and expects to double their card users by 2015. They are leveraging ECS solutions to implement a safe, secure and convenient platform for enabling all their payment requirements. The electra solutions will enable the bank to seamlessly integrate with leading payment associations like VISA® and MasterCard®. This is also the first time AB Bank is launching a complete suite of credit cards for their customers. ECS offers maximum flexibility, scalability and quick turnaround on customizations to meet Bangladesh’s banking standards and ensures the credit cards are compliant in all respects.

electraSWITCH® will also be implemented for managing the switching solutions of the Cashlink Bangladesh Limited (CBL) Network, which is being managed by AB Bank. Bangladesh’s leading banks form a part of the CBL network and is presently used by major local banks as a shared network for ATM switching as well as managed service provider. With the ECS product solutions AB Bank will be able to grow their network, increase the number of ATMs and cardholders.

Mr. Reazul Islam, Head of eBiz and IT, AB Bank said, “We were in need of a platform that was highly scalable and flexible which could be implemented quickly and meet our specifications. We chose ECS because they have proven installations across the globe and a faster go-to-market strategy that fits into our expectations. The product is extremely user friendly and easy to adapt to. We are confident that our partnership with ECS is in tandem with our business objectives.”

“We are pleased to be associated with AB Bank a pioneer in the Bangladesh banking industry,” said Mr. Ramesh Mengawade, CEO, ElectraCard Services. “AB Bank has always been successfully implementing new and innovative ideas in the country. ECS will provide them with the technology solution necessary to help take Bangladesh to becoming a cashless society.”

The electra iTx series platform is a next generation PA-DSS certified secure transaction platform, built from the ground-up on open standards and industry best-practices to support the service oriented architectures (SOA) that are fast becoming the technology backbone of today’s leading organizations. This platform drastically reduces the time to market for integration and to roll out new services. 

ABOUT AB BANK

During the last 31 years AB Bank has extended services at home and abroad. Presently AB Bank has 86 local branches; one foreign branch in Mumbai, India; 6 subsidiary companies including one exchange company in UK, Off-shore Banking Unit and Custodial services; one Representative Office at Yangon, Myanmar and the other at London, UK extending its foreign operations. The Bank continues to remain updated with the latest products and services considering the ever changing needs of the market. AB Bank has a long tradition of being the first of many firsts in the banking arena of Bangladesh. The Bank is committed to lead the industry not only through strong financial position but also through product innovation and value creation. With a view to provide better access to banking services the Bank has focused to bring services at the doorstep of its customers by reaching out to the underserved population of the country. Innovative products and services were introduced in the field of Small and Medium Enterprises, Women's Entrepreneur, Consumer Loans, Debit and Credit Cards (Local and International), ATMs, Internet and SMS Banking, Remittance Services, Treasury Products and Services, Structured Finance for Corporate, strengthening and expanding its Islamic Banking activities, Investment Banking, specialized products and services for NRBs, Priority Banking, and Customer Care. For more information, please visit: http://abbl.com/index.html

ABOUT ELECTRACARD SERVICES

ElectraCard Services, a subsidiary of Opus Software Solutions, provides software and third party processing services for card and payments management across the world. ECS is a PCI DSS certified Third Party Processor (TPP) for MasterCard® and VISA® across the issuing and acquiring side. Its deep domain knowledge, extensive global experience and cost effective solutions address the speed to market and flexibility challenges of today’s market.

ElectraCard Services enables financial institutions, retailers, finance companies and corporations to electronically process, in real-time, any type of payment transaction, including credit, debit, pre-paid, smart cards, and ACH. In addition to typical back office processing, ECS also offers ecommerce gateway and switching solutions. Its solutions support multiple institutions, multiple currencies, and varying processing requirements on a single platform. By providing comprehensive and flexible solutions that can be deployed to a market of one, ElectraCard Services offers unmatched services and solutions.

ECS NOT IMPACTED IN THE $40 MILLION ATM HEIST

With regard to the recent media reports highlighting $ 45 million global cyber heist, ElectraCard Services (ECS) would like to clarify:-

ECS was not impacted in the $40 million ATM heist in February 2013 as wrongly reported in certain publications. As already reported in the media earlier this year, there were fraud attacks which affected several institutions worldwide, including ECS, in December 2012 and yesterday's reports shed more light on the incidents because of the recent arrests. ECS has engaged external agencies such as Verizon in its forensic and other investigations. Through these investigations, there is a now a better understanding of how this has been perpetrated - however as the investigation has revealed, the PIN and Magnetic stripe data seem to have been compromised outside the ECS processing environment (these bits of data are essential to make ATM withdrawals). ECS has also been in touch with the US Secret Service who confirmed these attacks being committed by a large international syndicate. They have also advised ECS on the initial arrests in the US and ECS will continue to work with them to bring this to an acceptable closure for all its stakeholders.

As part of the standard process under such circumstances in the 3rd party payments processing industry, ECS is in the process of re-certifying and re-listing itself for compliance with the PCI-DSS standards of the PCI Security Standards Council (whose certifications are recognized by international payment associations such as Visa and MasterCard). ECS has already taken several measures to further strengthen its processing environment and is confident of being re-certified and re-listed over the next couple of months.

SBI SELECTS ECS FOR ATM NETWORK EXPANSION

JANUARY 08, 2013

Pune based electronic payments solution provider company ElectraCard Services (ECS)   has announced accomplishment of a big milestone with State Bank of India (SBI) with over 10,000 ATMs and Kiosks and processing 10 million transactions on a single day on electra platform. 

SBI, with the largest ATM network in India, had selected ElectraCard Services' electra payment platform to strengthen and support its plans to significantly grow its ATM and debit card base.

Commenting on this, Ashok Kumar, vice president, ECS said, “When SBI chose the electra suite they were looking for a powerful and flexible payments platform with the capability to adapt products to markets while coping with rapid growth in processing volumes. We’re delighted that SBI's Implementation of our products has enabled them to achieve such business success in this area.”

He added, "The SBI has plans to increase its network to 60,000 ATMs in the near future, and already has over 50 million debit cards on electra platform – making it one of the largest payments EFT switch installation in the world. Bank is rolling out all new cards and ATMs on electraplat form. Transaction volumes have increased as SBI consolidated its entire acquiring business for domestic and international card networks resulting in significant cost savings." 

ElectraSWITCH at SBI is one of the first active –active implementation in the region providing continuous transaction processing services for their customers. SBI has leveraged other ECS solutions from the electra suite as well.

These include ECS’s internet payment gateway and 3-D secure authentication software for SBI’s e-commerce acquiring needs. 

Since the implementation of the electra suite, SBI has also launched several value added services including ‘Green Channel Counter’ at its branches to do away with queues and to introduce paperless banking, At these counters, instead of a bank executive you get a hand-held swipe machine linked to a computer and can be handled by customers themselves for depositing/withdrawing cash, fund transfers and for dispensing pay-in slips and withdrawal forms.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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.61.82
UK Pound	1	Rs.96.57
Euro	1	Rs.82.45

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		13

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	-

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