MIRA INFORM REPORT

 

 

Report Date :

05.12.2013

 

IDENTIFICATION DETAILS

 

Name :

THE CLEARING CORPORATION OF INDIA LIMITED

 

 

Registered Office :

CCIL Bhavan, College Lane, Off. S.K. Bole Road, Dadar (West), Mumbai – 400028, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

30.04.2001

 

 

Com. Reg. No.:

11-131804

 

 

Capital Investment / Paid-up Capital :

Rs.1000.000 millions

 

 

CIN No.:

[Company Identification No.]

U65990MH2001PLC131804

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMT07457C

 

 

PAN No.:

[Permanent Account No.]

AABCT4143P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing clearing and settlement system for the transactions in the Money Market, Government Securities Market, Foreign Exchange Market, etc. and carries out related activities.

 

 

No. of Employees :

117 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (74)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 43067000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject was set up at the initiative of RBI.

 

It is the sole player for clearing and settlement of transaction across various instruments including Government Securities, Money Market and Forex Instrument.

 

It is a very well established and reputed company having good track record. Financially the company showed decent performance in the current. Year.

 

The principal promoters of subject are SBI, LIC, HDFC Bank, IDBI Bank. They are the major player in the market. The creditworthiness is good. Liquidity position of the company is strong.

 

Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for any business dealings at usual trade terms and conditions.

 

NOTES :

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

 


 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Non convertible cumulative redeemable preference share AAA (withdraw)

Rating Explanation

Higest degree of safety and carry lowest credit risk.

Date

July 26, 2013

 

Reason for Withdraw (there is no amount outstanding)

 

 

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.

 


 

INFORMATION DENIED BY

 

Name :

Ms. Suma Shetty

Designation :

Finance Department

Contact No.:

91-22-61546200

Date :

04.12.2013

 

 

LOCATIONS

 

Registered Office/ Corporate Office :

CCIL Bhavan, College Lane, Off. S.K. Bole Road, Dadar (West), Mumbai – 400 028, Maharashtra, India

Tel. No.:

91-22-61546200

Collateral and Funds Management: 91-22-61546482

Derivatives: 91-22-61546321 / 61546471 - 78

Forex: 91-22-61546452 - 56

Forex: 91-22-61546312 - 18

Forex: 91-22-61546457 - 61

Information Technology: 91-22-61546223

Membership: 91-22-61546552 - 55

Operations - Fixed Income and Money Market: 91-22-61546492 - 98

Operations - Fixed Income and Money Market: 91-22-61546300 / 61546394 / 61546397 / 61546399

Research: 91-22-61546582

Risk Management: 91-22-61546413 / 61546415 / 61546416 / 61546420 / 61546425

Support Services: 91-22-61546545 / 61546543

Support Services: 91-22-61546564 / 61546562

Support Services: 91-22-24371901

Support Services: 91-22-61546341

Fax No.:

91-22-24326042

E-Mail :

Collateral and Funds Management: cfm@ccilindia.co.in

Derivatives: irs@ccilindia.co.in

Forex: frx@ccilindia.co.in

Forex: fxclearmails@ccilindia.co.in

Forex: cls@ccilindia.co.in

Information Technology: its@ccilindia.co.in

Membership: mcm@ccilindia.co.in

Operations - Fixed Income and Money Market: sec@ccilindia.co.in

Operations - Fixed Income and Money Market: sec@ccilindia.co.in

Research: res_sur@ccilindia.co.in

Risk Management: rmd@ccilindia.co.in

Support Services: ssd@ccilindia.co.in

Support Services: fna@ccilindia.co.in

Support Services: adm@ccilindia.co.in

Support Services: hrd@ccilindia.co.in

Website :

www.ccilindia.com

 

 

Branch Office :

14A and 14B, 4th Floor, Tower -1, Commercial -2, ‘Kohinoor City’, Kirol Road, Off. LBS Road, Kurla (West), Mumbai - 400 070, Maharashtra, India

Tel. No.:

91-22-66639200

 

 

DIRECTORS

 

As on  01.07.2013

 

Name :

Mr. Shyamala Gopinath

Designation :

Nominee Director

Address :

1103, Girnar Heights, B-Wing, Bhakti Park, Wadala (East), Mumbai – 400037, Maharashtra, India

Date of Birth/Age :

20.06.1949

Date of Appointment :

25.07.2012

DIN No. :

02362921

 

 

Name :

Mr. Ranganathan Sridharan

Designation :

Managing director

Address :

Flat No. 1402, Gloriosa, Appts N M Kale Marg Off S K Bole Road, Dadar (West), Mumbai – 400028, Maharashtra, India

Date of Birth/Age :

01.07.1951

Date of Appointment :

01.08.2012

DIN No. :

00868787

 

 

Name :

Mr. Venkiteswaran Subramaniam

Designation :

Director

Address :

A/7, 1 and 2, Llyode Garden 7, Floor, Appasaheb Mara- The Marg Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

22.01.1941

Date of Appointment :

11.09.2001

DIN No. :

00006111

 

 

Name :

Mr. Ajay Narottam Shah

Designation :

Director

Address :

Faculty Flat No 3, Niper 18/2, Satsang Vihar Marg, SPL Institutional area, New Delhi – 110067, India

Date of Birth/Age :

07.08.1966

Date of Appointment :

11.09.2001

DIN No. :

01141239

 

 

Name :

Yezdi Hirji Malegam

Designation :

Director

Address :

Goolestan 37, cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

24.09.1933

Date of Appointment :

21.03.2002

DIN No. :

00092017

 

 

Name :

Mr. Nandlal Laxminarayan Sarda

Designation :

Director

Address :

A-5, IIT Powai, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

02.05.1948

Date of Appointment :

20.05.2005

DIN No. :

00147782

 

 

Name :

Mr. Murukkattampoondi Ranganathan Ramesh

Designation :

Director

Address :

Apartment No. 303, Unnathi Citadel 24th, Main J P Nagar 5th Phase, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

13.08.1940

Date of Appointment :

16.11.2005

DIN No. :

00147666

 

 

Name :

Mr. Pundarik Sanyal

Designation :

Director

Address :

401 A, Blue Heaven CHS, Rahehja Vihar Complex, Off Chandi Vali Farm Road, Andheri (East), Mumbai – 400072, Maharashtra, India 

Date of Birth/Age :

28.01.1950

Date of Appointment :

28.12.2007

DIN No. :

01773295

 

 

Name :

Ms. Shilpa Naval Kumar

Designation :

Director

Address :

The Cliff Co-Op Housing Society, 2nd Floor 27 Pochkanwala Road, Worli, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

12.09.1966

Date of Appointment :

28.01.2009

DIN No. :

02404667

 

 

Name :

Mr. Bhavesh C Zaveri

Designation :

Nominee director

Address :

Prabhukuj Co-operative Housing Society Flat No. 202, 2nd Floor, 5 Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

24.12.1965

Date of Appointment :

03.02.2010

DIN No. :

01550468

 

 

Name :

Mr. Swaminathan Sundararajan Mittur

Designation :

Director

Address :

Flat No. 11, 248, Ashwarooda Ambujammal, Street Alwarpet, Ttksalai, Chennai – 600018, Tamilnadu, India

Date of Birth/Age :

15.03.1950

Date of Appointment :

14.05.2011

DIN No. :

00169775

 

 

Name :

Mr. Vivek Hari Thatte

Designation :

Nominee director

Address :

5/78, Dnyanayoga Society, L T Road, Vazira Naka, Borivli (West), Mumbai – 400091, Maharashtra, India

Date of Birth/Age :

25.07.1954

Date of Appointment :

13.03.2012

DIN No. :

02689926

 

 

Name :

Ms. Anjan Barua

Designation :

Nominee director

Address :

Baghorbari Tinali Nilgiri Path House No – 26, Guwahati – 781037, Assam, India

Date of Birth/Age :

29.03.1952

Date of Appointment :

17.08.2012

DIN No. :

01191502

 

KEY EXECUTIVES

 

Name :

Mr. Ravi O.N

Designation :

Secretary

Address :

702, Gloriosa Apartments near agar Bazar, NM Kale Marg, Off S K Bole Road, Mumbai – 400028, Maharashtra, India

Date of Birth/Age :

26.06.1962

Date of Appointment :

25.08.2001

PAN No.:

AAGPO6936M

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 01.07.2013

 

Names of Shareholders (Equity Shares)

No. of Shares

State Bank of India, India

13000000

Bank of Baroda, India

2500000

HDFC Bank Limited, India

2500000

Life Insurance Corporatinon of India, India

5000000

Union Bank of India, India

500000

Andhra Bank, India

500000

Syndicate Bank, India

1000000

Axis Bank Limited, India

2000000

Indusind Bank Limited, India

1000000

Citi Bank N. A. , India

500000

The Hongkong and Shanghai Banking Corporation Limited, India

500000

STCI Finance Limited, India

5000000

SBI DFHI Limited, India

2250000

Canara Bank Securities Limited, India

250000

Corp Bank Securities Limited, India

500000

Central Bank of India, India

2000000

Bank od India, India

500000

IFCI Limited, India

2000000

Oriental Bank of Commerce, India

1000000

Canara Bank, India

500000

Corporation Bank, India

500000

ICICI Bank Limited, India

2750000

IDBI Bank Limited, India

3750000

 

 

Total

50000000

 

 

Names of Shareholders (Preference Shares)

No. of Shares

The Kalupur Commercial Co-operative Bank Limited

19000000

RNCPS – I / 002

1000000

The Karur Vysya Baml Limited

5000000

Karanataka Bank Limited

2000000

The Federal Bank Limited

5000000

RNCPS – I / 006

5000000

Kotak Mahindra Bank Limited

8000000

Yes Bank Limited

5000000

 

 

Total

50000000

 

As on 01.07.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Public financial companies

21.50

Nationalised or other banks

60.50

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

2.00

Bodies corporate

16.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing clearing and settlement system for the transactions in the Money Market, Government Securities Market, Foreign Exchange Market, etc. and carries out related activities.

 

 

Products :

Item Code No. (ITC Code)

Product Description

99715930

Financial and Related Services

 

 

GENERAL INFORMATION

 

No. of Employees :

117 (Approximately)

 

 

Bankers :

Reserve Bank of India

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalyaniwalla and Mistry

Chartered Accountants

Address :

Kalpataru Heritage, 127 Mahatma Gandhi Road, Mumbai – 400001, Maharashtra, India

PAN No. :

AAAFK7554R

 

 

Subsidiaries :

Clearcorp Dealing Systems (India) Limited

 

 

Parties having substantial interest :

State Bank of India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.10/- each

Rs.500.000 millions

50000000

8% Redeemable, Non Convertible, Cumulative Preference Shares

Rs.10/- each

Rs.500.000 millions

 

Total

 

Rs.1000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.10/- each

Rs.500.000 millions

50000000

8% Redeemable, Non Convertible, Cumulative Preference Shares

Rs.10/- each

Rs.500.000 millions

 

Total

 

Rs.1000.000 millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

 

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1000.000

1000.000

1000.000

(b) Reserves & Surplus

9766.800

7255.200

5600.000

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

10766.800

8255.200

6600.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

22.100

6.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

37.400

33.600

39.700

Total Non-current Liabilities (3)

59.500

39.600

39.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

24.300

30.200

22.100

(c) Other current liabilities

45086.400

40905.300

37763.900

(d) Short-term provisions

100.300

150.700

156.800

Total Current Liabilities (4)

45211.000

41086.200

37942.800

 

 

 

 

TOTAL

56037.300

49381.000

44582.500

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1533.800

1571.900

574.100

(ii) Intangible Assets

56.800

32.200

32.600

(iii) Capital work-in-progress

0.300

0.000

50.000

(iv) Intangible assets under development

29.800

35.800

44.200

(b) Non-current Investments

100.000

100.000

130.000

(c) Deferred tax assets (net)

0.000

0.000

6.300

(d)  Long-term Loan and Advances

20.700

9.500

685.400

(e) Other Non-current assets

19351.000

17748.900

601.200

Total Non-Current Assets

21092.400

19498.300

2123.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

22856.300

20996.000

16908.100

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

282.100

164.000

121.800

(d) Cash and cash equivalents

10697.600

7863.000

24621.300

(e) Short-term loans and advances

3.100

7.500

79.200

(f) Other current assets

1105.800

852.200

728.300

Total Current Assets

34944.900

29882.700

42458.700

 

 

 

 

TOTAL

56037.300

49381.000

44582.500

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

 

SALES

 

 

 

 

 

Income

3989.800

2891.000

1308.300

 

 

Other Income

763.700

529.900

1312.800

 

 

TOTAL                                    

4753.500

3420.900

2621.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit expense

256.900

243.900

205.600

 

 

Other expenses

320.300

291.700

266.500

 

 

TOTAL                                    

577.200

535.600

472.100

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

4176.300

2885.300

2149.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

85.300

77.700

61.200

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

4091.000

2807.600

2087.800

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

162.700

159.400

112.700

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

3928.300

2648.200

1975.100

 

 

 

 

 

Less

TAX                                                                 

1281.800

859.300

654.700

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

2646.500

1788.900

1320.400

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

132.000

176.800

390.100

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

650.000

400.000

100.000

 

 

Dividend

115.500

115.000

115.000

 

 

Tax on Dividend

19.400

18.700

18.700

 

 

Settlement Reserve Fund

1700.000

1300.000

1300.000

 

BALANCE CARRIED TO THE B/S

293.600

132.000

176.800

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

51.99

34.85

25.48

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

 

PAT / Total Income

(%)

55.67

52.29

50.37

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

98.46

91.60

1502.97

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.03

5.38

4.45

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.36

0.32

0.30

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.77

0.73

1.12

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE: Current Maturities of Long Term Debts is Not Available

 

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

Ys

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

No

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]

Date of Birth of Proprietor/Partner/Director, if available

Yes

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

No

 

 

NOTE:

 

The registerd address of the company has been shifted from 14A and 14B, 4th Floor, Tower-1, Commercial-2, 'Kohinoor City', Kirol Road,Off. LBS Road,Kurla (Wwst) Mumbai -  400070, Maharashtra, India to the Present address w.e.f. 21.05.2012

 

 

INDEX OF CHARGES

 

No Charges Exist for Company

 

 

NATURE OF OPERATIONS :

 

The Company provides clearing and settlement system for the transactions in the Money Market, Government Securities Market, Foreign Exchange Market, etc. and carries out related activities. The Company acts as a central counterparty for the trades executed by its members and extends settlement guarantee in terms of the Bye-laws, Rules and Regulations for various types of operations. The Company is authorized as a Payment System under, The Payment and Settlement Systems Act, 2007? by Reserve Bank of India.

 

 

FINANCIAL PERFORMANCE

 

The Company has created a Settlement Reserve Fund by setting aside part of the profits to ensure that there are sufficient assigned financial resources for meeting claims in relation to any settlement default, operational failure or any loss on account of Settlement Bank failure. Last year an amount of Rs. 1300.000 millions was appropriated to Settlement Reserve, taking the balance lying to the credit of the Settlement Reserve Fund to Rs. 4700.000 millions For the current year, the Company has transferred further Rs. 1700.0000 millions to Settlement Reserve Fund making . the balance lying to the credit of the Settlement Reserve Fund to Rs. 6400.000 millions.

 

 

OPERATIONAL PERFORMANCE :

 

The Financial Year (FY) 2012-13 was the 12 completed business year of the Company. The highlights of the operational performance th of various segments are as follows:

 

·         CBLO

 

As of March 31, 2013, the CBLO segment had 232 active members. There has been a marginal shift in the preference for the repo market during 2012-13 as compared to the CBLO market due to Cash Reserve Ratio (CRR) requirement on CBLO transactions whereas Repo deals are treated as Buy/Sell back deals without any CRR requirement. The average market share of CBLO in short term market stood at about 54 percent in comparison to 24 percent and 22 percent of Repo and Call markets, respectively. During the year, 1,56,099 trades for aggregate amount of Rs. 12.028 millions were received for settlement. The highest volume of Rs. 0.93 millions in this segment was recorded on March 5, 2013.The daily average number of trades was 538 as against 495 for the FY 2011-12. CBLO average daily trades registered a marginal increase to Rs. 0.041 millions in 2012-13 against Rs. 0.038 millions in 2011-12. This segment registered a netting factor of 81.07 percent during FY 2012-2013.

 

·         GOVERNMENT SECURITIES SEGMENT

 

The buoyancy in the government securities market has resulted in an increase in the share of the securities segment in the overall business of CCIL. The share of the outright and repo settlement volumes has increased to 31 per cent in FY 2012-13 from 25 per cent in 2011-12. The major contribution came from higher outright settlements as market participants expected a lower interest rate regime going forward.

As of March 31, 2013, 184 members were active in Securities Settlement segment. During the year, 7,41,196 trades (Outright and Repo including 2 nd leg) were settled aggregating a total face value of Rs. 17.396 millions, depicting an increase of 57.09% in number of trades and 57.96% in the volumes in Face Value

 

The Company registered a peak volume of Rs. 0.081 millions for outright trades on January 04,2013. Table 2 compares the transactions of this market in 2012-13 with that of the previous fiscal i.e. 2011-12

 

Governement Securities Table 2

 

Types of Trades

Financial Year 2012-2013

Financial Year 2011-12

Variance (%)

 

Volume (Rs. in

Millions)

No. of

Trades

Volume (Rs. In Millions)

No. of

Trades

Volume (Rs. In Millions)

No. of

Trades

Outright

6.592

658055

3.488

412266

889.800

59.62

Repo (1 st leg and 2 nd leg)

10.804

83141

7.525

59573

435.800

39.56

 

 

 

 

 

 

 

Total

17.396

741196

11.013

471839

599.600

57.09

 

Outright settlement registered a growth of 58 per cent in daily average number of trades and 87 per cent in daily average settlement value. The average daily number of trades settled was 2,731 (1,732 in 2011-12) and the average daily settlement volume was Rs. 0.027 millions (Rs. 0.014 millions in 2011-12).

 

This segment registered a netting factor of 82.36 percent and 62.24 percent on Funds and Securities settlements, respectively, during FY 2012-2013.

 

FOREX SEGMENT

 

As of March 31, 2013, there were 80 active members in the INR-USD segment. A total of 27,92,276 deals representing an aggregate volume of USD 4.83 trillion were settled in FY 2012-13 reflecting an increase of 4 per cent over the previous financial year. The segment settled the highest number of 1,37,716 trades in January 2013 and the highest gross volumes of USD 459.76 billion in the month of May 2012. The daily average settlement was 6,018 trades with a value of USD 21 billion. Spot market continued to dominate settlement volumes followed by Forwards. An average netting factor of 95.39 per cent was achieved in the Forex segment during FY 2012-13 as compared with 95.37 per cent in FY 2011-12.

 

-         Continuous Linked Settlement (CLS)

 

As on March 31, 2013 the segment had an approved membership of 27 banks out of which 23 banks are settling their cross currency deals through the CCIL-CLS arrangement. During FY 2012-13, 5,70,308 deals aggregating a gross volume of USD 724.12 billion was settled in the CLS segment. CLS settlement volumes increased by 12 per cent in comparison to the previous fiscal. The CLS segment recorded the highest number of deals settled with 58,717 deals in January 2013. The netting factor in the CLS settlement has increased to 92 per cent in 2012-13 compared to 88 per cent in 2011-12.

 

-         Forex Forward Settlement

 

The settlement of Forex Forward trades with guarantee from the trade date commenced from December 1, 2009. Participants in this segment increased from 45 to 59 in 2012-13. The segment has been gradually gaining acceptance in the market with the outstanding deals increasing from 34,400 deals as of end March 2012 to 40,838 deals at the end of FY 2012-13. Outstanding volumes have also increased from USD 202 billion in 2011-12 to USD 246 billion as of March 31, 2013.

 

Average volume cleared was USD 252.10 billion during FY 2012-13 as compared to USD 174.75 billion during FY 2011-12.

 

·         OTC DERIVATIVES TRADE REPOSITORY (TR)

 

CCIL has been running a trade repository (TR) for OTC Interest Rate Swaps (IRS) and Forward Rate Agreement (FRA) trades of the market makers from August 2007. Initially, the OTC derivatives like IRS and FRA were part of the reporting structure. However, following the emergence of the concept of Trade Repository recently, the reporting services are now provided under the umbrella of the Trade Repository Services which CCIL had started last year. This TR also supports life-cycle processing for these trades.

 

In Dec 2011, RBI allowed market to trade in Credit Default Swaps, and made it mandatory for the market makers to report transaction data to CCIL. CCIL currently operates the TR for CDS. There has been negligible trading in the instrument. As of 31 March 2013, there are 4 CDS trades outstanding for a gross value of Rs 20 crores.

 

At present, data relating to IRS and CDS is published on CCIL website.

 

In 2012, RBI notified that, all inter-bank OTC foreign exchange derivative transactions and all/selective trades in OTC foreign exchange and interest rate derivatives between the AD category banks/market makers (banks/PDs) and their clients should be reported on a platform to be developed by the CCIL. The first phase of reporting covering inter-bank OTC USD-INR forwards, FX swaps and FCYINR options was launched on July 9, 2012. Dr.Subir Gokarn, Deputy Governor of Reserve Bank of India inaugurated the launch by initiating the first TR reports. The second phase covering all FCY INR and FCY FCY Forwards and Swaps and FCY FCY Options was operationalised with effect from November 5, 2012.

 

Reporting arrangement covering OTC foreign exchange derivative trades between ADs and their clients has been operationalised with effect from April 02, 2013.CCIL has executed a confidentiality protocol with all the reporting members to ensure absolute confidentiality of client information reported. The threshold limit for reporting the trades is currently USD 1 million and equivalent thereof in other currencies. The trades with the value equal to or exceeding the threshold limit in FCY FCY and FCY INR Forwards and Options are reported to CCIL.

 

 

FIXED ASSETS

 

Tangible Assets

 

v      Freehold Land

v      Buildings – Residential

v      Buildings – Office

v      Leasehold Improvements

v      Computer Systems – Hardware

v      Furniture and Fixtures

v      Office and Other Equipment

 

Intangible Assets

 

v      Computer Software

 

 

 

 


 

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 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.62.33

UK Pound

1

Rs.102.18

Euro

1

Rs.84.66

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

ANK

 


 

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

9

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

74

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

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

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