|
Report Date : |
16.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED |
|
|
|
|
Branch Office : |
5th Floor, 52/60, Mahatma Gandhi Road, Mumbai-400001,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
01.01.1983 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 44991.660 Millions |
|
|
|
|
FCRN : |
F00947 |
|
|
|
|
Legal Form : |
Foreign Registered Bank. |
|
|
|
|
Line of Business : |
Banking Activities |
|
|
|
|
No. of Employees : |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
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 600000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed bank having fine track
record. Fundamentals are strong and healthy. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The bank can be considered normal 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Certificates of deposit programme: A1+ |
|
Rating Explanation |
Having very strong degree of safety. |
|
Date |
April 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.
INFORMATION DECLINED
Management non co-operative (91-22-40891300)
LOCATIONS
|
Registered Office : |
Located at Hong Kong |
|
|
|
|
Branch Office / (Main Branch): |
5th Floor, 52/60, Mahatma Gandhi Road, Mumbai-400001,
Maharashtra, India |
|
Tel. No.: |
91-22-22685555/ 40891300 |
|
Fax No.: |
91-22-22658309 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
HSBC Group Head Office : |
HSBC Holding PLC, 8, |
|
Tel. No.: |
+ 44-20-79918888 |
|
|
|
|
Corporate Banking : |
Mumbai Telephone : 91-22-22681091 Kolkata Telephone : 91-33-22542063 Telephone : 91-12-44182100 Chennai Telephone : 91-44-43912005 Telephone : 91-80-25002002 Hyderabad Telephone : 91-40-66162233 |
|
|
|
|
Financial Institutional Group : |
Mumbai Telephone : 91-22-22681017 Telephone : 91-11-41592290 Chennai Telephone : 91-44-4391-2016 |
|
|
|
|
Global Market : |
Mumbai Telephone : 91 22 40854235 Toll -free : 1800 229876 |
|
|
|
|
HSBC Securities Services : |
Mumbai Telephone : 91-22-40357563 |
|
|
|
|
|
Located at: ·
Andheri ·
Bandra ·
Borivli ·
Chembur ·
Juhu Vile Parle ·
Lokhandwala ·
Pedder road ·
Powai ·
Thane ·
Ahmedabad ·
Pune ·
Shivaji Nagar ·
Vadodara ·
·
Nagpur ·
Surat ·
Nasik |
|
|
|
|
|
Located at: ·
Kokkata (Main Branch) ·
Gariahat ·
·
Ultadanga ·
·
New Alipore ·
Shakespeare Sarani ·
·
Raipur ·
Guwahati |
|
|
|
|
|
Located at: ·
·
Basans Lok ·
Greater Kailash I ·
South Extension ·
Gurgaon ·
·
Noida ·
Jaipur ·
·
Punjabi Bagh ·
·
|
|
|
|
|
|
Located at: ·
Chennai (Main Branch) ·
Adyar ·
·
·
·
·
·
·
·
|
MANAGEMENT
|
Name : |
Mr. Naina Lal Kidwai |
|
Designation : |
Country Head India, Director HSBC Asia-Pacific |
|
|
|
|
Name : |
Mr. Stuart P Milne |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Devesh Mathur |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Richard Collie |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Stephen O’Leary |
|
Designation : |
Chief Risk Officer |
|
|
|
|
Name : |
Mr. Sunil Sanghai |
|
Designation : |
Managing Director and Head of Global Banking |
|
|
|
|
Name : |
Mr. Hitendra Dave |
|
Designation : |
Managing Director and Head of Global Markets |
|
|
|
|
Name : |
Mr. Sandeep Uppal |
|
Designation : |
Head of Commercial Banking |
|
|
|
|
Name : |
Ms. Gannesh Bharadhwaj |
|
Designation : |
Head of Retail Banking and Wealth Management |
|
|
|
|
Name : |
Mr. Shantanu Ambedkar |
|
Designation : |
Managing Director and Head of Private Bank |
|
|
|
|
Name : |
Mrs. Minari Shah |
|
Designation : |
Head of Group Communications |
|
|
|
|
Name : |
Mr. Ravi Menon |
|
Designation : |
Head of Corporate Strategy and Planning |
|
|
|
|
Name : |
Mrs. Vikram Tandon |
|
Designation : |
Head of Human Resources |
|
|
|
|
Name : |
Mr. Tarun Balram |
|
Designation : |
Managing Director and Head of Client Management |
|
|
|
|
Name : |
Mr. Abadaan Viccaji |
|
Designation : |
Head of Compliance |
|
|
|
|
Name : |
Mr. Jasmine Batliwalla |
|
Designation : |
General Counsel |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
Reserve Bank of |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B S R and Company Chartered Accountants |
|
|
|
|
Parent Company : |
The Hongkong and Shanghai Banking Corporation Limited, Hongkong |
|
|
|
|
Ultimate Holding Company: |
HSBC Holding Plc |
|
|
|
|
Fellow Subsidiaries : |
·
HSBC Holdings plc ·
HSBC Bank plc ·
Hang Seng Bank Limited ·
HSBC Bank Brasil S.A – Banco Multiplo ·
HSBC Global Resourcing (UK) Limited ·
HSBC Securities and Capital Markets (India)
Private Limited ·
HSBC Asset Management (India) Private Limited ·
HSBC Professional Services (India) Private
Limited ·
HSBC Electronic Data Processing India Private
Limited ·
HSBC Operations and Processing Enterprise (India)
Private Limited ·
HSBC Private Equity Management (Mauritius)
Limited (Liaison office) ·
HSBC Software Development (India) Private Limited ·
HSBC Global Shared services (India) Private
Limited ·
HSBC Bank of Middle East, HSBC Bank Canada ·
HSBC Private Banking Holdings (Suisse) SA ·
HSBC Republic Bank (UK) Limited ·
HSBC Bank Malaysia Berhad ·
HSBC Trinkaus and Burkhardt AG ·
British Arab ·
Commercial Bank Limited ·
HSBC Bank Mauritius Limited ·
HSBC Bank Australia Limited ·
HSBC Bank Argentina S.A. ·
HSBC Bank Egypt S.A.E. ·
SB HSBC Bank Kazakhstan JSC ·
HSBC Bank International Limited ·
HSBC France, HSBC InvestDirect (India) Limited ·
HSBC InvestDirect Securities (India) Limited ·
Investsmart Financial Services Limited ·
HSBC InvestDirect Distribution Services (India)
Limited ·
IL and FS Investsmart Asia Pacific Private
Limited ·
HSBC InvestDirect Academy for Insurance and
Finance (India) Limited ·
Investsmart Insurance Agency Private Limited ·
HSBC Bank USA |
CAPITAL STRUCTURE
CAPITAL ACCOUNT
As on 31.03.2012
|
Particulars |
Rs. In Millions |
|
I. Amount of deposit kept with the Reserve
Bank of |
19734.036 |
|
II. Capital |
|
|
Opening Balance |
44991.660 |
|
Total |
44991.660 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Capital |
44991.660 |
44991.660 |
44991.660 |
|
Reserve and Surplus |
104545.247 |
91883.062 |
76360.692 |
|
Deposits |
614233.213 |
541067.115 |
557478.247 |
|
Borrowings |
104774.729 |
50263.098 |
59208.139 |
|
Other Liabilities and Provisions |
223697.929 |
183279.813 |
166297.148 |
|
TOTAL |
1092242.778 |
911484.748 |
904335.886 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and Bank Balances with
Reserve Bank of |
39295.649 |
48578.316 |
39716.165 |
|
Balances with Banks and money at call and short notice |
76178.823 |
33543.694 |
41823.856 |
|
Investments |
403238.487 |
372790.845 |
412890.656 |
|
Advances |
355122.822 |
274006.211 |
234747.670 |
|
Fixed Assets |
8420.477 |
8744.309 |
8928.756 |
|
Other Assets |
209986.520 |
173821.373 |
166228.783 |
|
TOTAL |
1092242.778 |
911484.748 |
904335.886 |
|
|
|
|
|
|
Contingent Liabilities |
10096856.027 |
9913198.080 |
8509535.228 |
|
Bills for collection |
128621.115 |
93972.841 |
89817.220 |
PROFIT & LOSS
ACCOUNT
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
INCOME |
|
|
|
|
Interest earned |
61962.603 |
51949.586 |
51658.815 |
|
Other Income |
22007.660 |
17886.488 |
21354.836 |
|
TOTAL |
83970.263 |
69836.074 |
73013.651 |
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
Interest expended |
24505.025 |
18591.228 |
19146.572 |
|
Operating Expenses |
24182.963 |
21909.495 |
19501.215 |
|
Provision and contingencies |
15405.573 |
14059.416 |
26266.735 |
|
TOTAL |
64093.561 |
54560.139 |
64914.522 |
|
|
|
|
|
|
Net profit for the year |
19876.702 |
15275.935 |
8099.129 |
|
Profit brought forward |
18616.495 |
15468.006 |
9264.515 |
|
TOTAL |
38493.197 |
30743.941 |
17363.644 |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
Less: |
|
|
|
|
Transfer to statutory reserve |
4969.176 |
3818.984 |
2024.782 |
|
Transfer to investments reserve |
704.987 |
297.636 |
(335.667) |
|
Transfer to specific reserve |
237.204 |
213.348 |
206.523 |
|
Transfer to remittable surplus retained in India for capital to risk-weighted
assets ratio (CRAR) requirements |
3790.834 |
7797.478 |
-- |
|
Profit remitted to Head Office |
7670.528 |
-- |
-- |
|
Transfer to capital reserve – surplus on sale of immovable properties |
236.150 |
-- |
-- |
|
Balance carried over to balance sheet |
20884.318 |
18616.495 |
15468.006 |
|
TOTAL |
38493.197 |
30743.941 |
17363.644 |
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] |
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 |
Yes |
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY
CHARGES |
REGULATORY ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED,THE |
|
RBI |
DID NOT ADHERE TO INSTRUCTIONS ISSUED BY RBI IN RESPECT OF DERIVATIVES,SUCH AS FAILURE TO CARRY OUT DUE DILIGENCE IN REGARD TO SUITABILITY OF PRODUCTS,SELLING DERIVATIVE PRODUCTS TO USERS NOT HAVING RISK MANAGEMENT POLICIES AND NOT VERIFYING UNDERLYING/ADEQUACY OF UNDERLYING AND ELIGIBLE LIMITS UNDER PAST PERFORMANCE ROUTE |
IMPOSED PENALTY RS.5,00,000 |
|
BACKGROUND
The
financial statements for the year ended 31 March 2012 comprise the accounts of the
India branches of subject (‘the Bank’), which is incorporated and registered in
Hong Kong Special Administrative Region (‘SAR’). The Bank’s ultimate holding
company is HSBC Holdings plc, which is incorporated in the United Kingdom.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2012 Rs.
In Millions |
31.03.2011 Rs.
In Millions |
|
I. Claims against the bank not acknowledged as debts (including tax
matters) |
3340.173 |
3357.697 |
|
II. Liability for partly paid investment |
0.500 |
0.500 |
|
III. Liability on account of outstanding forward exchange and
derivative contracts |
|
|
|
i) Forward contracts |
4067384.917 |
2373890.362 |
|
ii) Currency Options |
425479.567 |
498424.118 |
|
iii) Derivative Contracts |
5253539.874 |
6731215.046 |
|
Total
(III) |
9746404.358 |
9603529.526 |
|
IV. Guarantees given on behalf of constituents |
|
|
|
i) In |
82095.098 |
74941.027 |
|
ii) Outside |
19947.187 |
16961.594 |
|
Total
(IV) |
102042.285 |
91902.621 |
|
|
|
|
|
V. Acceptances, endorsements and other obligations |
199222.216 |
174405.885 |
|
VI. Bills rediscounted |
0.001 |
0.001 |
|
VII. Other items for which the bank is contingently liable |
45846.494 |
40001.820 |
|
TOTAL
(I+II+III+IV+V+VI+VII) |
10096856.027 |
9913198.050 |
FIXED ASSETS
·
Freehold Land
·
Premises
·
Leasehold Improvement
·
Computers and 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 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.60.05 |
|
|
1 |
Rs.90.71 |
|
Euro |
1 |
Rs.78.47 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
80 |
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.