MIRA INFORM REPORT

Report Date :

18.07.2013

IDENTIFICATION DETAILS

Name :	IDBI BANK LIMITED
Registered Office :	IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.09.2004
Com. Reg. No.:	11-148838
Capital Investment / Paid-up Capital :	Rs. 12783.817 Millions
CIN No.: [Company Identification No.]	L65190MH2004GOI148838
Legal Form :	It is a Public Limited Liability Bank. The Bank's shares are listed on the Stock Exchanges.
Line of Business :	Providing Banking Services.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 780000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Industrial development bank of India (IDBI) was constituted by government of India under the Industrial Development Bank of India Act 1964. Later IDBI was converted into banking company on October 1, 2004, to undertake commercial banking and development activities. There appears strong deposit and asset base which has strengthened the balance sheet during 2012. The bank has been successful in managing the spread between interest on loans and deposits and earned a healthy profit. Banking relations are fair. Business is active. Payment terms are regular and as per commitments. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Omni bonds: AA+
Rating Explanation	High degree of safety and low credit risk.
Date	19 December 2012

Rating Agency Name	CRISIL
Rating	Certificate of deposits: A1+
Rating Explanation	Strong degree of safety and lowest credit risk
Date	19 December 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.

INFORMATION DECLIEND

Management Non – Cooperative (91-22-66553355)

LOCATIONS

Registered Office / Head Office :	IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400 005, Maharashtra, India
Tel. No.:	91-22-22189111/ 66553355
Fax No.:	91-22-22181294 / 5179/8137
E-Mail :	pro@idbi.co.in sn.baheti@idbi.co.in corporate_office@idbi-bank.com pawan.agarwal@idbi.co.in

DIRECTORS

As on 31.03.2012

Name :	Mr. R. M. Malla
Designation :	Executive Directors
Name :	Mr. B. K. Batra
Designation :	Executive Directors
Name :	Mr. Sunil Soni
Designation :	Government Director
Name :	Mr. P. K. Chaudhery
Designation :	Government Director
Name :	Dr. P. S. Shenoy
Designation :	Independent Directors
Name :	Mr. Subhash Tuli
Designation :	Independent Directors
Name :	Ms. S. Ravi
Designation :	Independent Directors
Name :	Mr. Ninad Karpe
Designation :	Independent Directors

KEY EXECUTIVES

Name :	Mr. P. Sitaram
Designation :	Chief Financial Officer
Name :	Mr. Pawan Agrawal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	955852609	71.72
Sub Total	955852609	71.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	955852609	71.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1631126	0.12
Financial Institutions / Banks	17186301	1.29
Insurance Companies	162970272	12.23
Foreign Institutional Investors	45507216	3.41
Any Others (Specify)	35680	0.00
State Finance Corporation	35680	0.00
Sub Total	227330595	17.06
(2) Non-Institutions
Bodies Corporate	20148112	1.51
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	101902763	7.65
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	20265704	1.52
Any Others (Specify)	7272734	0.55
Trusts	624728	0.05
Non Resident Indians	5482392	0.41
Societies	28960	0.00
Clearing Members	1136654	0.09
Sub Total	149589313	11.22
Total Public shareholding (B)	376919908	28.28
Total (A)+(B)	1332772517	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	1332772517	0.00

BUSINESS DETAILS

Line of Business :

Providing Banking Services

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Reserve Bank of India

Facilities:

BORROWINGS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
I Borrowings in India
Reserve Bank of India	0.000	0.000
Other banks	695.500	6713.000
Other institutions and agencies
Government of India borrowings	0.000	0.000
Tier I bonds issued to Government of India	0.000	21305.000
Tier l (IPDI)	17088.000	17088.000
Upper Tier II Bonds	42862.000	42862.000
Unsecured, Redeemable Bonds (Subordinated for Tier II Capital)	90320.452	68366.803
Bonds guaranteed by Government of India	0.000	11765.000
Others	280169.543	261263.045
II Borrowings outside India	103640.918	86333.677
Total	534776.413	515696.525

Banking Relations :	--
Statutory Auditors :
Name 1 :	Chokshi and Chokshi Chartered Accountants
Address :	Mumbai, Maharashtra, India
Name 2 :	S.P. Chopra and Company Chartered Accountants
Address :	New Delhi, India
Related Party:	IDBI Federal Life Insurance Company Limited

CAPITAL STRUCTURE

As on 06.09.2012

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
1332772517	Equity Shares	Rs.10/- each	Rs. 13327.725 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000000	Equity Shares	Rs.10/- each	Rs. 20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1278381662	Equity Shares	Rs.10/- each	Rs. 12783.817 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars	31.03.2012	31.03.2011	31.03.2010
Capital	12783.817	9845.681	7248.619
Reserve and Surplus	181486.812	135820.247	94383.979
Employees’ Stock Options (Grants) Outstanding	8.536	9.858	15.825
Deposits	2104925.606	1804857.885	1676670.776
Borrowings	534776.413	515696.525	477094.786
Other Liabilities and Provisions	74391.177	67537.732	80313.517
TOTAL	2908372.361	2533767.928	2335727.502
ASSETS
Cash and Bank Balances with Reserve Bank of India	150902.113	195590.467	139034.708
Balances with Banks and money at call and short notice	29674.405	12070.265	6793.646
Investments	831753.635	682691.778	733454.629
Advances	1811584.332	1570980.664	1382018.532
Fixed Assets	30188.081	30373.414	29969.553
Other Assets	54269.795	42061.340	44456.434
TOTAL	2908372.361	2533767.928	2335727.502
Contingent Liabilities	1489200.932	1342420.115	1247557.983
Bills for collection	52773.347	40327.681	32096.364

PROFIT & LOSS ACCOUNT

Particulars	31.03.2012	31.03.2011	31.03.2010
INCOME
Interest earned	233699.299	185412.396	152613.186
Other Income	21187.782	21432.301	23017.339
TOTAL	254887.081	206844.697	175630.525
EXPENDITURE
Interest expended	188250.823	142719.265	130052.169
Operating Expenses	26074.522	22546.934	18314.253
Provision and contingencies	20245.624	25075.304	16952.768
TOTAL	234570.969	190341.503	165319.190
Net profit for the year	20316.112	16503.194	10311.335
Profit brought forward	6150.179	4791.213	711.951
TOTAL	26466.291	21294.407	11023.286
APPROPRIATIONS
Less:
Transfer to statutory reserve	5079.028	4130.000	2580.000
Transfer to Capital Reserve	170.472	15.500	0.000
Transfer to General Reserve	7500.000	6000.000	1000.000
Transfer to Special Reserve under section 36(1)(viii) of the Income Tax Act, 1961	2500.000	100.000	250.000
Proposed dividend	1917.572	3445.988	2174.586
Tax on proposed dividend	283.879	552.740	314.686
Interim Dividend paid	1969.241	0.000	4704.014
Tax on Interim dividend	319.460	0.000	0.000
Dividend on ESOPs	0.189	0.000	0.000
Balance carried over to balance sheet	6726.450	6150.179	0.000
TOTAL	26466.291	20394.407	11023.286
Earnings per share
· Basic	20.58	18.37	NA
· Diluted	20.58	18.36	NA

QUARTERLY RESULTS

Particulars	30.06.2012 (1^st Quarter)	30.09.2012 (2^nd Quarter)	31.12.2012 (3^rd Quarter)	31.03.2013 (4^th Quarter)
Audited / UnAudited
Interest Earned	62698.100	61972.300	62003.600	63968.900
Income On Investments	13269.800	13159.200	13150.200	13772.200
Interest On Balances With Rbi Other Inter Bank Funds	152.000	313.800	461.900	633.400
Interest / Discount On Advances / Bills	49262.100	48497.200	48335.100	49398.500
Others	14.200	2.100	56.400	164.800
Other Income	5170.000	6827.800	8698.300	11468.900
Total Income	67868.100	68800.100	70701.900	75437.800
Interest Expended	49992.000	49479.100	47871.800	49569.100
Operating Expenses	6585.600	7525.100	7305.500	9927.400
Total Expenditure	6585.600	7525.100	7305.500	9927.400
Operating Profit Before Provisions and Contingencies	11290.500	11795.900	15524.600	15941.300
Exceptional Items	0.000	0.000	0.000	0.000
Provisions and contingencies	5068.200	4945.800	9629.500	8691.200
Profit Before Tax	6222.300	6850.100	5895.100	7250.100
Tax	1948.900	2014.800	1727.500	1705.600
Profit After Tax	4273.400	4835.300	4167.600	5544.500
+/- Extraordinary Items	0.000	0.000	0.000	0.000
+/- Prior period items	0.000	0.000	0.000	0.000
Net Profit	42734.000	48353.000	41676.000	55445.000

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	Yes
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	Yes

LITIGATION DETAILS

Bench: - Bombay

Stamp: CAWST/9044/2013 Filing Date: 19.03.2013

Stamp No.: WPST/12518/2010 Main Matter Reg No.: WP/5675/2010

Petitioner: IDBI Officers Organisation Respondent: IDBI Bank Limited And Ors.

Petn. Adv: L.M. Acharya

District: Astara

Bench: Division

Status: Pre – Admission

Last Date: 26.03.2013

Last Coram: Registar (Judicial)

Act: Service Matter

PROFIT AND APPROPRIATIONS

During the financial year April 2011 - March 2012, gross income of The Bank increased to Rs.2548870.000 Millions with contribution of interest income at Rs.233699.000 Millions and other income at Rs.21188.000 Millions. Interest expenses of Rs.188251.000 Millions and operational expenses of Rs.26075.000 Millions, led to total expenditure, excluding provisions and contingencies, of Rs.214325.000 Millions during FY 2011-12. Total provisions during the year were at Rs.20246.000 Millions, which includes Rs.5919.000 Millions towards provision for bad and doubtful debts and investments, Rs.2637.000 Millions towards restructured assets, Rs.2319.000 Millions towards incremental prudential provisions for standard assets, and Rs.5981.000 Millions towards tax. The Profit before Tax (PBT) of The Bank during the FY 2011-12 stood at Rs.26297.000 Millions. After making a provision of Rs.5981.000 Millions towards taxation, Profit after Tax (PAT) amounted to Rs.20316.000 Millions. For each share with face value of Rs.10, Earning Per Share (EPS) during the year stood at Rs.20.6 and Book Value Per Share stood at Rs.137.24 as at end-March 2012. The Directors have pleasure in recommending dividend at 35% (including 20% paid on interim basis) on the fully paid-up equity share capital for the financial year 2011-12.

KEY BUSINESS INITIATIVES

The Bank continued to target a progressively larger retail business portfolio to facilitate a more balanced business mix, in keeping with its intended positioning as a full-service new generation commercial bank. Further, in order to build a strong foundation for sustainable growth on long term basis, as also ensure compliance with regulatory norms, The Bank took initiatives to build up its priority sector lending portfolio. The Bank has been a pioneer in the field of Corporate Finance for the last nearly five decades. The Bank has maintained its focus on corporate banking and laid specific emphasis on cross-selling of The Bank’s diverse range of products and services. The Bank increased substantially its presence in government business and enabled higher direct and indirect tax collections.

The Bank offers a bouquet of Liability, Asset, Capital Market and Third Party products aimed at meeting the customized needs of customers in the Retail Banking segment. The Bank introduced a number of products in the pre-paid cards arena during the year. The Bank has initiated a project on facilitating usage of ATM network to Co-operative Banks and RRBs on National Financial Switch (NFS) network in association with National Payments Corporation of India (NPCI). This would enable Co-operative Banks and RRBs to issue ATM cards to their account holders and get connected to the NFS network to have access to more than 84,000 ATMs across India.

The Bank entered into MOUs with several reputed educational institutions across India for granting educational loans to eligible students during the year. The Bank is also offering additional concessions to girl students from SC/ST and Minority communities.

The Bank had launched its Internet Banking services way back in October 2001. Since then, the ambit of this channel has progressively broadened to include several value-added services. Keeping in view the need to secure online shopping/e-commerce based transactions initiated through the internet banking channel from phishing related frauds, an Online Shopping Password (OSP) security feature has been introduced by the Bank from December 2011. The Bank also introduced an online password-generation facility for the Retail Net Banking customer, to instantly create their own login and transaction password and also set their access profile.

As part of a Financial Inclusion project in four Talukas of Gujarat, The Bank has, inter alia,launched a specially designed Co-branded Photo ATM Card on ‘Rupay’ Platform. The Card can be used for ATM transactions at The own as well as other Bank ATMs that are members of National Payment Corporation of India (NPCI).

The Bank has constantly endeavored to cater to the diverse needs of its MSE clients and has continuously been developing customized MSE products. During FY 2011-12, The Bank introduced a new product, viz., “Line of Credit to Vendors of Corporates” that augments the liquidity position of MSE vendors. Considering the growing importance of credit rating for MSE clients, which enhances the confidence in MSEs while dealing with financial institutions, banks and corporates for their financial needs and business opportunities, The Bank signed an MoU with Credit Analysis and Research Limited. (CARE) for credit rating of the MSE customers at preferential rate.

The Bank has put in place a state-of-the-art Technology Platform which is supporting the Government’s dual objective of improvement of tax collection efficiency and e-governance. The Bank had gone live in January 2012 in providing online duty payment services in respect of Customs Duty for all the 103 Electronic Data Interchange (EDI) locations across the country. With this development, taxpayers are now in a position to route all of their Central Taxes and Duties payments through IDBI Bank, making The Bank an important Agent in its pursuit of partnering the Government of India in enabling online tax payments and enhancing the tax contribution to the Exchequer.

The Bank became the first ever Bank in the country to launch an internet based portal dedicated to retail investors in Government Securities. The portal, named “IDBI Samriddhi G-Sec” has been received favourably by the investor class. This trend setting initiative by The Bank offers retail investors the opportunity to benefit from the safety, liquidity and risk free returns that Government Securities offer.

The Bank became the first entity from India as also other emerging markets to access foreign currency funds in the Dim Sum Market. In November 2011, The Bank raised Renminbi (RMB) 650 million 4.5% fixed rate Dim Sum Bonds for 3 year maturity. This issue provides testimony to the faith reposed by global fixed income investors in The Bank.

ORGANIZATIONAL STRUCTURE

The Bank has continued its thrust on improving organizational structure, which places customer relationship and service at the centre of all banking initiatives. Accordingly, The Bank is currently organized on the lines of “customer focused vertical” model, capable of delivering improved services. The model has achieved significant success in enhancing customer relationship management, improving credit delivery and bringing sharper focus to business lines which are sustainable and remunerative.

With the addition of 157 branches during FY 2011-12, including Specialized Corporate Branches, the total number of domestic branches went up to 972 as on March 31, 2012 in addition to one overseas branch at DIFC, Dubai. Of the domestic branch network, 264 are located in metropolitan centres, 377 in urban centres, 236 in semi-urban centres and 95 in rural centres.

BUSINESS ENVIRONMENT

GLOBAL ECONOMIC SCENARIO

Growth prospects in the global economy remained muted, with considerable downside risks, reflecting the fragile nature of economic revival. While economic recovery gained momentum in the USA and Japan, high level of deficits continue to persist in advanced economies. Intensifying of the sovereign debt crisis and mild recession in the Euro Zone area has adversely impacted economic outlook in advanced as well as developing markets through trade, finance and confidence channels. Political turmoil in the Middle East and North Africa has led to a spike in international energy prices, fuelling the rise in global food prices. Escalating inflationary pressures in emerging and developing markets has led to moderation in their pace of growth.

Global financial markets remained subdued as a consequence of tightening of credit conditions, deleveraging of European banks, emergence of refinancing risks and global financial stability risks. Emerging and developing economies faced sharp reversals in international capital inflows and rise in funding costs on account of monetary policy tightening aimed towards taming inflationary pressures. The protracted recovery also affected world trade considerably. The phasing out of fiscal stimulus measures and fiscal austerity measures adopted by developed economies are expected to further impact growth prospects in the medium to long term.

DOMESTIC ECONOMIC ENVIRONMENT

Real GDP growth decelerated sharply to 6.5% during FY 2011-12 after having attained stellar growth rate of 8.4% in each of the preceding two years. High and persistent pressures, which moderated to some extent by the end of the financial year, necessitated tightening of monetary policy thereby adversely impacting investment and industrial production in the economy. Decline in savings and investment rates are a major factor resulting in slow recovery of growth. Widening of current account balance and diminishing capital flows have led to sharp depreciation of the rupee. Fiscal health deteriorated with the fiscal deficit burgeoning to 5.9% of GDP owing to rise in revenue expenditure and rise in subsidy burden.

REAL SECTOR

GROSS DOMESTIC PRODUCT (GDP)

As per the revised estimate of Central Statistical Organization (CSO), growth momentum of the Indian economy has shown deceleration, with Real GDP recording its slowest pace in nine years. The GDP growth contracted to 6.5% during FY 2011-12, as compared to 8.4% during the previous two years, largely due to global uncertainties coupled with domestic structural and cyclical factors. The Indian economy was fairly resilient to the global meltdown but could not shield itself completely from the downturn. The sectoral break-up of GDP has undergone significant change overtime. The current figures exhibit a growing contribution of service sector to the overall GDP. The share of service sector ascended from 58% in FY 2010-11 to 59% in FY 2011-12. Whereas, the share of Industrial Output shrunk to 27% and that of Agriculture sector stood at 14% of GDP. The Service Sector, with an increasing share to the overall GDP, remained the key growth driver. But the sector though buoyant, still witnessed a slowdown in the pace of growth. The monetary tightening measures undertaken by the RBI have resulted in subdued economic growth, dented the local demand and reduced the investment and industrial activity in the economy. However, the focus of the policy makers in the ensuing fiscal would be to bring back the economy to the pre-crisis high growth trajectory.

INDUSTRIAL SCENARIO

Industrial growth, measured in terms of Index of Industrial Production (IIP), demonstrated fluctuating trends through the post-crisis period. Fragile economic recovery in the US and European countries and passive domestic business sentiments affected the growth of the industrial sector in the current year. The Industrial production remained sluggish on account of the monetary tightening measures, rising input costs, supply-side bottlenecks particularly in the mining sector, and moderation in investment demand. Overall, growth during April-March 2012 was 2.8% compared to 8.2% in the corresponding period of the previous year. The overall performance in the use-based category highlights the muted business sentiments indicated by the Capital Goods Sector and a depressed demand in the economy because of reluctance on the part of the consumers to spend as reflected by the Consumer Goods Sector.

INFLATION

The Indian economy has been battling high inflationary pressures since the last two years. All major policy stances have been aligned towards reining in inflation which has been well above the comfort level of the RBI. The herculean task before the Government and the Reserve Bank of India has been to strike a balance between growth and inflation dynamics. The WPI inflation was mainly driven by food inflation which constitutes a 14.3% weightage in the total WPI inflation. The problem compounded when the food inflation spilled over to non food inflation (core inflation), calling for major policy actions. RBI has played a proactive role by effective monetary policy intervention. There have been thirteen rounds of monetary tightening since March 2010, with a 375 basis point hike in policy interest rate. The lagged impact of the monetary tightening was felt in December 2011 and January 2012 when the WPI inflation decelerated, after hovering around near-double digits for nearly 24 months. The headline inflation fell in the month of March 2012 to 6.89% as compared to 9.68% n the corresponding period last fiscal. Nevertheless, the risks from high crude oil prices and the impact of the lagged pass-through of rupee depreciation, suppressed inflation in energy and fertilizers and possible fiscal slippage, continues to pose significant threat. Also inflationary pressures can re-ignite, with the increase in the excise duty and service tax and rationalization of the fuel and fertilizer subsidies. The volatile international crude oil prices also pose a major risk to the domestic inflation.

FOREIGN EXCHANGE RESERVES AND EXCHANGE RATES

As at March 31, 2012, India’s foreign exchange reserves stood at USD 294.4 billion, which were lower by USD 10.4 billion compared to end-March 2011. Decline in foreign exchange reserves can be attributed to sharp depreciation of the rupee in the foreign exchange market and pressure on the balance of payments due to widening of the current account deficit and decline in capital inflows. The foreign exchange market witnessed considerable volatility emanating from external economies. While the USD – NR movement was generally stable in the beginning of the year, as the Euro zone crisis intensified, inducing risk aversion amongst the investor overseas, pull-out of capital from the Indian economy was witnessed. Uncertainties over oil supplies, falling export numbers, rigid inflation and lower factory productions saw the Rupee depreciating at a rapid pace.

FUTURE OUTLOOK

The growth dynamics of the Indian economy were severely impacted by the renewed global economic meltdown. The international factors especially the Euro-Zone crisis, slowdown in US coupled with bearish domestic fundamentals have adversely affected the rebound of the growth of Indian economy. Inflation management has been at the centre of all the policy measures of the government. This resulted in a tight monetary environment and was a major setback for the industrial sector which was already reeling under high interest rate and raw material prices. Higher food prices, supply constraints, hardening of interest rates, rising input costs including cost of basic raw materials and oil and weakening capital market are expected to restrict the scope of investment activities.

The continuing stress in the advanced economies is expected to further dampen the growth prospects of the Indian economy. Even the scope of extending further fiscal support is limited due to growing fiscal burden and limited prospects of revenue collections. The Union Budget 2012-13 has laid out an ambitious plan to restrict the fiscal deficit by augmenting resource mobilization through increased taxes and duties. Though this could add up to the finances of the government, it has the potential to re-ignite inflationary pressures. This, in turn, will affect the savings rate in the economy which has witnessed a setback in the previous year. Any deviation from the budgeted plan would have negative repercussions for the real sectors of the economy.

Even with the gloomy outlook, India still remains one of the fastest growing economies in the world. With measures being taken to remove supply-side bottlenecks to ease inflationary pressures and progress on fiscal consolidation, conditions could be conducive for a more favorable growth-inflation dynamics. However, inflationary pressures, though moderating, could re-emerge if the upside risks materialize. In the ensuing financial year, one of the key concerns for the Indian economy is to return to the high growth trajectory. This is contingent upon various economic factors with foremost importance to taming inflationary pressures in the economy, effective supply-side management of inflation and fiscal consolidation. Focus on these aspects would lead to a reversal of monetary policy cycle and elevate investment expenditure and business sentiment, boost industrial production and attract foreign investment and capital flows in the economy, and thereby lay the foundation for revival of economic growth.

Retail Finance

The Bank continues to target a progressively larger retail business portfolio to facilitate a more balanced business mix, in keeping with its intended positioning as a full-service new generation commercial bank. Pursuant to the same, The Bank currently offers a bouquet of Liability, Asset, Capital Market and Third Party products primarily aimed at meeting the customized needs of customers in the Retail Banking segment. Liability products include Savings Accounts, Current Accounts, Retail Term Deposit, Recurring Deposits, etc. Asset products on offer include Housing Loans, Mortgage Loans, Personal Loans, Education Loans, Vehicle Loans, among others. The Bank also offers many card products such as International Debit Card, Gift Card, Cash Card and World Currency Card. Capital Market and Third Party products/services such as Demat Account, Mutual Funds, Insurance Products (both Life and General), Government/RBI Bonds, IPO through Application Supported by Blocked Account (ASBA) process, Investment Advisory, Merchant Acquisition business, New Pension Scheme, Public Provident Fund (PPF) and Government of India Senior Citizen Saving Scheme 2004 (SCSS) are also rolled out through The Bank’s retail banking channel. The Bank also offers exclusive products for NRIs like NRE/NRO/FCNR Bank Accounts, Remittance Services, Portfolio Investment Scheme (PIS) and Investment Related Products. The products are periodically reviewed and modifications/ innovations/customization of existing products, as well as introduction of new products are carried out on a regular basis.

Business initiatives in the retail banking space are appositely complemented by supportive infrastructure in terms of branch network and skilled manpower. At the end of the fiscal, The Bank’s domestic footprint encompassed 972 branches, comprising 264 at metropolitan centres, 377 at urban centres, 236 at semi-urban centres, 95 at rural centres. Besides, The Bank had one fully operational overseas Branch at DIFC, Dubai. The Bank added 151 new brick and mortar branches during the financial year. The Bank, mindful of customer convenience, continued to bolster alternate delivery channels by expanding its ATM network from 1351 as on March 31, 2011 to 1542 as on March 31 2012.

In the retail liability product segment, The Bank continued to formulate new products customized to emerging customer needs and increase the complement of low cost funds. In the CASA category, The Bank added three new products during the financial year, viz. “Being Me“, “Royale Plus” and “Non - Farmers and Landless Labourers - Saving Bank account cum OD facility”. “Being Me”, a youth savings account with an international debit card, was launched on World Youth Day to foster financial independence, essence of individuality and responsibility among today’s youth.

With a view to demonstrating The Bank’s appreciation for customers maintaining a relatively higher balance in their Savings Account, a new “Royale Plus” Savings Account sub-segment was carved out from within the broader IDBI Royale Account category for customers maintaining an Average Quarterly Balance (AQB) of Rs.0.500 Million with preferential/value-additive facilities.

In keeping with The Bank’s pursuit of more inclusive banking, The Bank launched a product “Non – Farmers and Landless Labourers – Savings Bank account cum OD facility”, which gives the benefit of Savings account with overdraft facility up to Rs.10,000/- to address the credit needs and contingencies of relatively disadvantaged sections of society.

In the Term Deposit segment, The Bank added three new offerings to its existing bouquet of products viz: Fixed

Deposit for Motor Accident Tribunals, Suvidha Suraksha Recurring Deposit (SSRD) and Godhuli Fixed Retail Term Deposit (GRTD).

Fixed Deposit for Motor Accident Tribunals was launched to capture the compensation money awarded by the Motor Accident Tribunal by offering the highest interest rate under FD for such funds. The welfare and convenience of Senior citizens continue to be a priority area for The Bank. Reflecting the same, a new product “Godhuli Fixed Retail Term Deposit (GRTD)” was launched exclusively for prospective Senior citizens aged between 55 and above to less than 60 years, whereby the depositor would automatically get additional rate of interest as applicable for Senior Citizens, without breaking the FD prematurely, on attaining the age of 60 years. This segment would also benefit from an additional interest of 50 basis points over and above the normal rate of interest accorded on Recurring Deposits maintained by them with The Bank.

In the recurring Deposit space, a new variant, ‘Suvidha Suraksha Recurring Deposit’ was launched, which invests the Term Deposit with added protection of life insurance cover.

The Bank greatly values its relationship with the NRI Clients and undertook various initiatives to increase its market share in this segment and deepen existing relationships, with a fair measure of success. The Bank has entered into an arrangement with certain forex service providers to facilitate remittances, in association with Western Union. The Bank has extended its tie-up under Portfolio Investment Scheme (PIS) to several leading stockbrokers by entering into MOUs with them for providing PIS Services to their NRI Clientele. The Bank has entered into an MOU with different Exchange houses for routing remittances from Gulf countries. The Bank has operationalised a scheme to place Bank officials in Exchange Houses in the “GLOBAL CURRENCY CARD” (GCC) Countries to source NRI Business. Consequent to de-regulation of interest rates on NRE FDs, The Bank competitively positioned its NRE FD rates to enlarge the NRI Customer base of The Bank.

AGRICULTURE AND RURAL DEVELOPMENT

Agriculture continues to be the most important sub-sector of Indian Economy. Agriculture provides employment to large number of their rural population and has its own importance in food security of their country. Agriculture sector, therefore, finds important place in their National agenda. One of the challenges before their country is to improve productivity of agriculture sector to meet ever-increasing need of quality food for nourishing their growing population. The Bank, therefore, believes that agriculture lending is not merely a business process but an opportunity to participate in the rural and agricultural development of their country.

The Bank has established a network of officers under a dedicated ‘Agri Business Group’ across the country to provide knowledge-based credit to their farming community to improve farm productivity and quality of life of their rural population. Agri business, in The Bank, is presently handled at 334 branches, which are attached to 21 Agri Processing Centers, reporting to seven dedicated regional offices for speedy disposal and quick decisions.

Agriculture business of The Bank comprises direct lending to the farmers or group of farmers, assistance to corporate or co-operatives engaged in processing of agriculture produce and entities involved in supporting agriculture sectors. During FY 2011-12, The Bank introduced simplified documentation process; stream lined sanction and delivery systems with desired flexibility and control in retail agriculture lending. This has helped The Bank to broaden its retail agriculture base. The Bank has tied up with select corporates and co-operatives engaged in agro and food processing activities to reach out to a large number of farmers and deepen its retail base across the country. To reach large number of farmers, particularly those in remote part of the country, The Bank has appointed Business Facilitators at such locations.

The Bank continued to encourage formation of Farmers’ Clubs in the villages covered by their rural branches. The Bank considers the members of Farmers’ Clubs as true grass root level agriculture extension workers and supports them in all activities that involve sharing of their knowledge amongst fellow farmers.

IDBI Rural Self Employment Training Institute, Satara

The Bank established its first Rural Self Employment Training Institute (IDBI-RSETI) at Satara District of Maharashtra as per the guidelines issued by the Ministry of Rural Development, Government of India. With effect from October 31, 2011 the institute has commenced conducting free residential training programs for rural unemployed youth in this district. Training courses focus on skill and entrepreneurship developments so that they could set up their own small enterprise. IDBI-RSETI has conducted eight training programmes for 224 youth in 2011-12.

IDBI Agriculture and Rural Development Trust

The Bank has established a Trust named as “IDBI Agriculture and Rural Development Trust” mainly to manage IDBI-RSETI as required under the guidelines issued by the Ministry of Rural Development, Government of India. Apart from this the Trust would also undertake development and research activities in rural and agriculture sector. The Trust would help The Bank to discharge duties under its Corporate Social Responsibility.

Corporate Finance

The Bank has been a pioneer in the field of Corporate Finance for the last nearly five decades and has been supporting the diversified needs of Corporate sector in its growth process. During the FY 2011-12, The Bank opened one more dedicated specialized Corporate Branch at Bandra Kurla Complex in Mumbai. With this the total number of Specialised Corporate Branches across the country stands at 33. The Bank’s Corporate Business has grown by about 20% during the last year. The Bank also meets the foreign exchange needs of Corporate Clients through its Dubai Branch which went operational in the year 2010.

The Bank offers tailor made structured products, both asset as well as liability, depending on the needs of the Corporates. The Bank has also carved out a niche for itself in the Transaction Banking segment like the Cash Management Services, Government Agency Tax Collection and Trade Finance Products. The Bank also offers treasury and loan syndication services to its corporate clients. During the year, The Bank facilitated a cross border deal by sanctioning financial assistance in Foreign Currency to one of the large Indian Corporate Groups for acquiring a company based in Europe. The acquisition transaction was typical in nature and involved various processes to handle issues relating to cross border regulatory norms, taxation, due diligence, valuation of the company, environmental due diligence issues, creation of cross-border security, etc. and reflects the wide expertise available in The Bank for addressing the needs of the Indian corporate sector.

Trade Finance

The Bank continued to post high growth rates in Trade Finance (TF) Business. During the FY 2011-12, the non-fund based business of The Bank, comprising of Letter of Credit (LCs) and Bank Guarantees (BGs) segment grew by 17% crossing Rs.700000.000 Millions. Trade Finance related fee income also recorded robust growth of 37% during the year. The Bank has earned Trade Finance related fee income of Rs.6400.000 Millions out of total fee income of Rs.17150.000 Millions earned during the year. The Bank has entered into Whole Turnover Packing Credit ECIB (WT-PC) and Whole Turnover Post Shipment ECIB (WT-PS) with effect from April 1, 2012 with ECGC for Export Credit Insurance Cover for Bank. During the year, The Bank opened two new TF Centres at Faridabad and Ghaziabad, thereby increasing the total number of TF locations from 37 at the beginning of the year to 39. During the year, the Bank has put in place specialized Sales Teams exclusively for TF products at the metros with a special focus on Retail Trade Business which will enhance the Bank’s TF Business, inter alia, in the Retail Segment.

Strengthening collaborative relationship with leading foreign banks continues to be The Bank’s priority towards enhancement of Trade Finance Business as well as Fee Income for The Bank.

Government Business

The Bank has placed strong focus on Government Business and collects direct and indirect taxes of Central Government and various State Governments. During the FY 2011-12, The Bank had crossed a major milestone in collection of tax of Rs.1 lakh crore to achieve total tax collection of Rs.1.24 lakh crore. Further, The Bank added another feather in its cap by collecting more than Rs.1.12 lakh crore in respect of Central Taxes during FY 2011-12. The tax collection is facilitated mostly through e-payment besides physical mode. During the year, The Bank operationalised collection of commercial taxes in the states of Assam, Bihar and Puducherry. With this The Bank is now authorized to collect Commercial Tax in the states of Assam, Andhra Pradesh, Bihar, Gujarat, Maharashtra, Punjab (Phagwara), Rajasthan, Uttarakhand and in the Union Territory of Delhi and Puducherry. The Bank also got clearance from the states of Karnataka, Tamilnadu, West Bengal and Sikkim for commercial tax collection and is expected to commence tax collection in these states during the first half of FY 2012-13.

The Bank had gone live on January 16, 2012 in providing online duty payment services in respect of Customs Duty for all the 103 Electronic Data Interchange (EDI) locations across the country. With this development, taxpayers are now in a position to route all of their Central Taxes and Duties payments through IDBI Bank, making The Bank an important Agent in its pursuit of partnering the Government of India in enabling online payments and enhancing the tax contribution to the Exchequer.

The Bank has also put in place state-of-the-art Technology Platform which is supporting the Government›s dual objective of improvement of tax collection efficiency and e-governance.

Cash Management Services

Cash Management Services, which are one of the major avenues for Current account mobilisation, continued to be one of the thrust areas of The Bank during the year. The Bank has a marked presence in this business segment and has bagged some of the prestigious mandates for dividend servicing. Also, The Bank has earned market recognition as Bankers to Issue for IPO /FPO /Bond Collection assignments. The Bank is focussing on providing customized e-solutions including technological integrations with client systems in tune with the evolving market requirements. The Bank is constantly upgrading its systems towards this end.

Infrastructure Finance

The Bank continues to remain a prominent player in infrastructure financing, which typically involve long gestation period and have a distinct risk and return profile requiring innovative structuring. The Bank has been in the forefront in structuring and financing of infrastructure projects in the areas of power, telecom, roads, airports, seaports, railways and logistics, as well as Special Economic Zones (SEZs), ever since the infrastructure sector was opened to private investment, and a significant share of its aggregate assistance goes to infrastructure sector.

Investment in infrastructure assumes greater importance in today’s economic scenario. Several new projects have been lined up in the road, port, airport, power and other infrastructure sectors. Recognising the critical role of infrastructure development in the growth of national economy and also the huge investment required in the sector, focused approach was followed to provide end-to-end solutions to the infrastructure companies viz. corporate advisory, syndication of debt/equity, financial structuring, term loans, working capital, securitization and other related services.

The Bank has also taken initiatives in funding urban infrastructure projects, renewable energy projects (solar, wind and bio mass based power projects), seaports and airports under the Public-Private Partnership (PPP) route. Through its overseas branch, The Bank is also in a position to extend, selectively, foreign currency denominated loans to infrastructure projects.

An extensive and efficient infrastructure network is critical for the effective functioning of the economy and is a major requirement for sustainable and inclusive economic growth. Over the years, the Government has taken various initiatives to accelerate the pace of infrastructure development and reduce the infrastructure deficit in the country. While presenting the Union Budget for 2011-12, the Hon’ble Union Finance Minister announced a proposal to create Special Vehicles in the form of notified Infrastructure Debt Funds in order to augment the flow of long-term, low-cost foreign funds for the infrastructure sector. The Bank has been a pioneer in infrastructure financing and has provided financial support to a number of infrastructure projects across the spectrum of industries. Given the growing need of funds to meet the requirements of projects in the infrastructure sector, The Bank has decided to set up an Infrastructure Debt Fund in the form of an NBFC, viz., IDBI Infrafin Limited (IIL). The NBFC (IIL) was incorporated on February 27, 2012 with an Authorised Capital of Rs.10000.000 Millions. As the sponsor of the company, The Bank would have equity holding of 30% in the company; the other strategic investors would be leading Public Sector Banks/Financial Institutions. In order to be compliant with RBI Guidelines, the initial Paid-up Capital has been set at Rs.3000.000 Millions, of which The Bank would be initially subscribing Rs.900.000 Millions (30%).

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012	31.03.2011
Claims against the Bank not acknowledged as debts	1074.130	3756.288
Liability for partly paid investments	0.000	0.000
Liability on account of outstanding forward exchange contracts	363946.378	320577.075
Guarantees given on behalf of constituents	0	0
in India	538365.763	461207.613
outside India	38453.744	25358.966
Acceptances, endorsements and other obligations	259549.645	259631.660
Currency Swaps	84545.721	60341.097
Options	25920.993	15305.465
Interest Rate Swaps	166540.529	185011.110
Credit Default Swaps	100.000	0.000
On account of disputed Income tax, Interest Tax, penalty and interest demands	10700.998	11227.058
Others	3.031	3.783
Total	1489200.932	1342420.115

PRESS RELEASES

OPPORTUNITY FOR RETAIL INVESTORS TO INVEST IN INFLATION INDEXED BONDS (IIBS) THROUGH IDBI BANK PORTAL

Opportunity for Retail Investors to invest in

Inflation Indexed Bonds (IIBs) through IDBI Bank Portal

Mumbai, July 12, 2013: Shri H R Khan, Deputy Governor, Reserve Bank of India formally launched IDBI Bank's initiative of retailing Government's Inflation Indexed Bonds (IIBs) through the newly revamped IDBI Samriddhi Portal on July 12, 2013, at an event held at IDBI Bank's Head Office at Mumbai. While launching this facility, Shri H R Khan, Deputy Governor, Reserve Bank of India appreciated the efforts of IDBI Bank in taking such a path- breaking initiative to facilitate retail/mid-segment investors in G-Sec, particularly in the newly launched IIBs by leveraging user friendly technologies. He particularly lauded the Bank's efforts to harness the power of ubiquitous mobile phones for the purpose. The portal based solution will provide ease of entry and exit by the retail/mid-segment investors, a major irritant for their investment in G-sec market. He also mentioned about the measures taken by the Reserve Bank of India to expand the base of retail/mid-segment investors in government bond market. Shri Khan also stressed on the positive features of IIBs which had potential to wean small investors towards financial savings.

Commenting on the occasion, Shri M S Raghavan, Chairman and Managing Director, IDBI Bank stated that the Bank is committed to the various initiatives of the Government and RBI. He said that IDBI Bank has always been at the forefront of financial innovation and leveraging Technology to deliver superior customer service. He also said that the selling of IIBs to retail customers through the Portal is another example of this.
Shri B K Batra, Deputy Managing Director, IDBI Bank, while speaking at the event, said that the effective use of Technology by way of this portal offering has enabled IDBI Bank to reach out far and wide and has opened up, an otherwise wholesale centric market, to the retail individual investor of this country.

About IDBI Bank

IDBI Bank is the youngest, new generation, public sector universal bank that rides on a cutting edge core banking Information Technology platform. This enables the Bank to offer personalized banking and financial solutions to its clients through its 1111 branches and 1821 ATMs. The Bank had an aggregate balance sheet size of Rs. 3227690.000 Millions and total business of Rs 4234230.000 Millions as on March 31, 2013. IDBI Bank's operations during the financial year ended March 31, 2013 resulted in a net profit of Rs. 18820.000 Millions.

Shri H R Khan, Deputy Governor, Reserve Bank of India along with Shri M S Raghavan, Chairman and Managing Director, IDBI Bank [R] and Shri B K Batra, Deputy Managing Director, IDBI Bank [L] at the launch of Inflation Indexed Bonds through 'IDBI Samriddhi Portal' for the retail investors. Also seen standing [L-R] are Shri Melwyn Rego, Executive Director, IDBI Bank [L] and Shri N S Venkatesh, Chief General Manager, IDBI Bank [R] All representatives of Print, Wire and Electronic Media.

TWO IDBI BANK ENTITIES LOSE CHIEF EXECUTIVES

MUMBAI JUNE 24, 2013

There is churning at the top in IDBI Bank's two group entities.

IDBI Federal Life Insurance managing director (MD) and chief executive officer (CEO) G V Nageswara Rao is leaving at the end of this month.

Sanjay Sharma, chief executive and managing director of IDBI Intech Limited, has decided to end his innings at the information technology services arm of IDBI Bank.

Senior IDBI Bank executives confirmed the developments. The shortlisting process for selecting a new CEO at the insurance company is underway.

Sharma is serving his notice period. His successor would be from within the IDBI. Rao would be joining the National Securities Depository Limited, sources said.

Earlier this month, IDBI Federal Life announced it had achieved breakeven in 2012-13, its fifth year of operations. The company reported a maiden profit of Rs 92.400 Millions in 2012-13. Life insurers, on an average, take eight to 10 years to break even.

IDBI Federal started its operations in March 2008 and has a range of trademarked insurance products including Wealth-surance, Income-surance and Retiresurance.

Before this assignment, Rao was CEO of the commercial banking strategic business unit of IDBI Limited. Rao was earlier MD and CEO of IDBI Bank Limited, which merged with parent institution IDBI. He once headed IDBI Capital Markets. IDBI Federal's new business premium grew 23 per cent in 2012-13, which compares with a fall of 15 per cent posted by the sector. It saw a 44 per cent increase in the number of new business policies sold over 2011-12.

More assets under management

The company's assets under management moved up 24 per cent, from Rs 22080.000 Millions to Rs 27320.000 Millions during the current year. IDBI Federal has a paid-up share capital of Rs 8000.000 Millions. IDBI Fortis is a joint venture of IDBI Bank, Federal Bank and Fortis Insurance International, with shareholding of 48 per cent, 26 per cent and 26 per cent, respectively.

IDBI BANK TO HIRE 2,000 PEOPLE NEXT FISCAL

MUMBAI, MARCH 7:

IDBI Bank plans to open about 150 branches and add about 2,000 employees in fiscal 2013-14.

Of the 2,000 recruits, 500 would be for replacement and attrition while 1,500 would be for staffing its new branches.

“We have an advantage of being a young organisation with very few about to retire,” said R. K. Bansal, Executive Director, IDBI Bank.

The average age of IDBI Bank’s employees is 30 years, which, he said, was lower than its peer set.

An attrition rate of 5-6 per cent for a PSU bank such as IDBI is definitely on the higher side, he said, but pointed out that a significant number of its employees were on contract.

With a predominant presence in urban areas, the bank now looks to open more branches in rural and semi-urban areas to facilitate financial inclusion and priority sector lending.

As of end-December, 63 per cent (645 of its 1,019 branches) was in the urban areas. As of March 31, 2012, the bank’s total staff strength was 15,435.

ADVANCES

IDBI Bank sees advances growing at 15 per cent and deposits at 13 per cent in the next fiscal, said Bansal.

The bank logged Rs 1.86-lakh crore in deposits and Rs 1.71-lakh crore in advances with a balance-sheet size of Rs 2.73-lakh crore as of December 31, 2012.

“We are in the process of realigning our business mix of wholesale versus retail loans (agriculture/personal and SME) from 67:33 to 60:40,” said Bansal.

The bank is on course to end FY13 with a CASA (ratio of current account savings account to total deposits) at about 26 per cent. Last December, its CASA was at 22 per cent.

BANK LICENCE

On new entrants after the recent bank licensing norms put out by the RBI, Bansal said it would take them close to two years to receive approvals and begin operations.

Here, he felt existing private sector banks would see more attrition than public sector banks.

BASEL III

Most Indian banks would more than meet the Basel-III norms. It is just a matter of substituting their Tier-1 debt by equity. The banking sector’s return on equity (ROE) will dip from the existing levels of 14-18 per cent. However, an ROE of 12 per cent for a Basel-III compliant bank is good enough, he felt.

NON-PERFORMING ASSETS

NPA levels in the industry have bottomed out given the fact that there are no big cases in corporate debt restructuring.

Recovery however will take time, he said, as there are policy changes in most sectors. This would reflect only after the second quarter of FY14 as there were chances of delayed projects being revived.

Pick up of infra projects is taking time and export-related sectors such as gem and jewellery are under pressure, he concedes.

Bansal sees credit pick up in power, roads, telecom, steel, cement and textiles, especially from the private sector in the coming quarters.

IDBI Bank’s net NPA was Rs 33020.000 Millions (1.93 per cent) last December on higher provisioning.

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.59.36
UK Pound	1	Rs.89.69
Euro	1	Rs.77.99

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	KVT

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	7
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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.