MIRA INFORM REPORT

Report Date :

28.06.2013

IDENTIFICATION DETAILS

Name :	BANK OF BAHRAIN AND KUWAIT
India Branch Office :	Ground Floor, Jolly Maker, Chambers II 225, Nariman Point, Mumbai – 400021, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2012 (Consolidated)
Date of Incorporation :	01.07.1986
Capital Investment / Paid-up Capital :	BD 85,135,000
FCRN :	F02190
Legal Form :	Foreign Registry Bank.
Line of Business :	Banking Activities.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (61)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well established and reputed bank. Financially the bank appears to be strong. Performance capability is high. The Director appears to be well experienced in this field. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The bank can be considered normal for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	MOODY’S
Rating	Long term rating : Baa3
Rating Explanation	This rating considered to have low credit risk.
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.

LOCATIONS

Registered Office :	43 Government Avenue P.O. Box 597 Manama Kingdom of Bahrain
Tel. No.:	+97317223388
Fax No.:	+97319229822
India Branch Office :	Ground Floor, Jolly Maker, Chambers II 225, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22823698
Mobile No.:
Fax No.:	91-22-22044458 / 22841416
E-Mail :	fincon@bbkindia.com Mumbai@bbkindia.com
Website :	www.bbkindia.com
Overseas Branch :	· Kuwait · Hyderabad
Representative Office :	Creek Tower Office No. 18A P.O. Box 31115 Dubai, UAE
Tel. No.:	+97142210560 / 2210570 / 2237156
Fax No.:	+97142210260

DIRECTORS

As on : 31.12.2012

Name :	Mr. Murad Ali Murad
Designation :	Chairman
Qualification :	Institute of Management Accounting London
Experience :	40 Years
Date of Appointment :	21.03.1999
Name :	Mr. Aref Saleh Khamis
Designation :	Deputy Chairman
Qualification :	Master in Business Administration
Experience :	28 Years
Date of Appointment :	01.04.2003
Name :	Mr. Mohamed Abdulrahman Hussain
Designation :	Chairman of the Executive Committee
Qualification :	Bachelor of Arts, Economics and Finance
Experience :	33 Years
Date of Appointment :	02.03.2008
Name :	Mr. Jassem Hasan Ali Zainal
Designation :	Chairman of the Audit Committee
Qualification :	Master in Civil Engineering
Experience :	22 Years
Date of Appointment :	22.11.1994
Name :	Dr. Zakareya Sultan Al-Abbasi
Designation :	Director
Qualification :	PhD
Experience :	27 Years
Date of Appointment :	22.02.2012
Name :	Mr. Abdulla bin Khalifa Bin Salman Al Khalifa
Designation :	Director
Qualification :	Bachelor of Business Administration
Experience :	12 Years
Date of Appointment :	02.05.2008
Name :	Mr. Khalifa bin Duaij Al Khalifa
Designation :	Director
Qualification :	Master Business Administration, Master in Social and Public Policy.
Experience :	5 Years
Date of Appointment :	27.02.2005
Name :	Dr. Abdulmohsen Medej Mohammed Al Medej
Designation :	Director
Qualification :	PhD
Experience :	35 Years
Date of Appointment :	11.05.2009
Name :	Mr. Mutlaq Mubarak Al Sanei
Designation :	Director
Qualification :	Bachelor of Economics
Experience :	20 Years
Date of Appointment :	06.03.2011
Name :	Ms. Elham Ebrahim Hasan
Designation :	Director
Qualification :	Bachelor of Science in Accountancy
Experience :	27 Years
Date of Appointment :	06.03.2011
Name :	Mr. Yusuf Saleh Khalaf
Designation :	Director
Qualification :	Associate of Chartered Accountants
Experience :	6 Years
Date of Appointment :	06.03.2011
Name :	Mr. Hassan Mohammed Mahmood
Designation :	Director
Qualification :	Bachelor of Commerce
Experience :	15 Years
Date of Appointment :	01.09.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 31.12.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Citizens of the Kingdom of Bahrain and Others	167892533	19.72
Ithmaar Bank	215946187	25.36
Social Insurance Organization (SIO)
-- Pension Fund Commision	159933766	18.79
-- General Organization for social Insurance (GOSI)	113573255	13.34
Kuwait Investment Authority	159173547	18.70
Global Mena Macro Fund Company	25644066	3.01
Global Investment House	9192768	1.08
Total	851356122	100.00

BUSINESS DETAILS

Line of Business :

Banking Activities.

GENERAL INFORMATION

No. of Employees :	250 (Approximately)
Bankers :	Not Available
Facilities :	--

Auditors :	Not Available
Associates/Subsidiaries :	AL Janabeya Company

CAPITAL STRUCTURE

SHARE CAPITAL : BD 85,135,000

FINANCIAL DATA

ABRIDGED BALANCE SHEET

(BD’000)

SOURCES OF FUNDS	31.12.2012 (Consolidated)	31.12.2011 (Consolidated)
ASSETS
Cash and balances with central banks	262,741	227,973
Treasury bills	165,168	215,286
Financial assets at fair value through statement of income	346	--
Deposits and amounts due from banks and other financial institutions	349,850	243,480
Loans and advances to customers	1,498,745	1,406,719
Non-trading investment securities	717,325	563,915
Investment in associated company and joint venture	54,566	51,127
Interest receivable and other assets	30,947	27,949
Premises and equipment	27,873	28,605
TOTAL ASSETS	3,107,561	2,321,795
LIABILITES AND EQUITY
Liabilities
Deposits and amounts due to banks and other financial institutions	255,079	142,361
Borrowings under repurchase agreement	47,913	1,067
Term borrowings	238,059	236,615
Customers' current, savings and other deposits	2,204,793	2,076,214
Interest payable and other liabilities	72,050	70,778
Total Liabilities	2,817,894	2,527,035
EQUITY
Share Capital	85,135	85,135
Treasury Stock	(3,561)	(4,445)
Share Premium	39,919	39,919
Statutory reserve	42,568	42,568
General reserve	39,500	36,000
Cumulative changes in fair values	15,515	(16,192)
Foreign currency translation adjustments	(2,112)	(561)
Retained earnings	49,840	29,306
Appropriations	22,361	25,938
ATTRIBUTABLE TO THE OWNERS OF THE BANK	289,165	237,668
Non-controlling interest	502	351
Total equity	289,667	238,019
TOTAL LIABILITIES AND EQUITY	3,107,561	2,765,054

PROFIT & LOSS ACCOUNT

(BD’000)

PARTICULARS	31.12.2012 (Consolidated)	31.12.2011 (Consolidated)
Interest and similar income	104,465	92,353
Interest and similar expense	38,713	33,444
Net interest income	65,752	58,909
Share of profit of associated companies and joint venture	5,634	3,340
Other Income	37,247	43,551
Total operating income	108,633	105,800
Staff costs	32,429	29,375
Other expenses	14,626	15,104
Depreciation	3,498	3,447
Net provision for impairment on loans and advances to customers	8,964	16,462
Net provision for impairment on non-trading investment securities	6,034	9,048
Total operating expenses	65,551	73,436
PROFIT BEFORE TAXATION	43,082	32,364
Net tax provision	(573)	(505)
PROFIT FOR THE YEAR	42,509	31,859
Attributable to:
Owners of the Bank	42,358	31,789
Non-controlling interest	151	70
	42,509	31,859
Basic earnings per share (BD)	0.050	0.038
Diluted earnings per share (BD)	0.050	0.038

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	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	No
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	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CASE DETAILS :

DCIT Vs. Bank of Bahrain and Kuwait (ITA) Mumbai Special Bench

August 19^th, 2010

Exchange Fluctuation loss on pending forward contracts is an “accrued” loss

 The assessee, a foreign bank carrying on business in India, entered into forward contracts with its clients to buy or sell foreign exchange at an agreed price on a future date. On the date of maturity, the contract was executed which resulted in either profits or losses to the assessee. There was no dispute that the loss was on revenue account and that loss arising on execution of the contracts in the same year were allowable as a deduction. With respect to contracts where the date of maturity fell beyond the accounting period, the assessee valued the forward contracts on the last day of the accounting period on the basis of rate of foreign exchange prevailing on that date and accounted for the loss or profit, as the case may be. The AO taxed the profits on such contracts though he disallowed the losses on the ground that they were “notional”. The Special Bench had to consider whether the loss was a “notional” or “contingent” loss or whether it was an “accrued” loss. HELD deciding in favour of the assessee:

(i) The Act allows a deduction in respect of crystallized liabilities. While as per commercial principles of policy of prudence, all anticipated liabilities have to be accounted for, as per the Act only “accrued” liabilities are allowable. While anticipated liabilities which are contingent in nature are not allowable, an anticipated liability coupled with a present obligation can be said to be a crystallized liability. A contingent liability depends purely on the happening or not happening of an event whereas if an event has already taken place, such as the entering into the contract and undertaking of an obligation to meet the liability, and only consequential effect of the same is to be determined, then, the liability is not a contingent liability (Woodward Governor 312 ITR 254 (SC) and Bharat Earth Movers 245 ITR 428 (SC) followed, Principles of law on accrual of income & loss summarized);

(ii) Accounting Standard -11 (AS-11) issued by the ICAI is mandatory and provides that if foreign exchange transactions are not settled in the same accounting period, the effect of exchange difference has to be recorded on 31st March;

(iii) On facts, the foreign currency was the assessee’s stock-in-trade and the forward foreign exchange contracts entered into by it created a continuing binding obligation on the date of contract against the assessee to fulfill the same on the date of maturity. The assessee has consistently followed the same method of accounting in regard to recognition of profit and loss. The AO, having assessed the profits, could not have disallowed the loss;

(iv) Accordingly, where a forward contract is entered into by the assessee to sell foreign currency at an agreed price at a future date falling beyond the last date of accounting period, a loss is incurred by the assessee on account of valuation of the contract on the last date of the accounting period and before the date of maturity of the forward contract.

ECONOMIC AND MARKET BACKGROUND :

Sentiment in the financial markets continued to be affected by the Eurozone sovereign debt crisis throughout 2012. With economic growth under pressure in major economies the ripples from this continue to be felt locally.

Some of the sectors of Bahrain’s economy which are most closely linked to investor confidence, such as construction and financial services, slowed in 2012, yet since the start of the internal disturbances in early 2011, heavy spending by the Government has helped offset weaker private sector confidence. The local disquiet continued throughout 2012 and the Bahrain Bourse All Share Index fell by 6.8 per cent. However, Government spending during the year was a record US$ 9.8 billion and Bahrain’s economy is expected to have grown in excess of 3 per cent in 2012. The local economy continues to gain from higher oil prices as well as external aid from other GCC states.

Despite a slowdown in some parts of the world, the Gulf region has some definite success stories, with both Qatar and the United Arab Emirates continuing to develop at a robust rate. It is our belief that the fundamentals of both Bahrain and the wider GCC region remain strong and we are therefore confident that when global economic activity begins to pick up again Bahrain will be well placed to capitalise on new business opportunities

BBK’s record of sustained growth :

For the past 20 years BBK has demonstrated a solid and reliable track record of profit growth and an uninterrupted dividend payment history. This growth has not only been substantial, but it has also been steady. The fact that the Bank has been able to produce consistent, rather than volatile, profit growth, against a backdrop of sometimes challenging market conditions both internationally and domestically, speaks volumes for BBK’s conservative and prudent approach towards business development.

Cost optimisation review :

Much has been achieved under the 2010-2012 Strategic Plan. Going forward, there is considerable scope to develop and grow BBK’s business and the Board will resolve to navigate the current economic environment safely and continue to play a key role in guiding the Bank’s future expansion plans. The Board is also keenly aware of its duty to ensure that costs are carefully controlled. In this regard we have engaged the highly respected consulting firm, Booz and Company, to undertake a Cost Optimisation Review of all our businesses. As we pursue new business opportunities within the framework of the new 2013-2015 Strategic Plan, we will also be addressing the recommendations made by Booz and Company to improve internal efficiencies in the Bank.

A Board Cost Optimization Committee (COC) comprising of seven members, three of which are from the Board of Directors and four from BBK’s Executive Management team, has been formed to steer the work in this respect. Abdul Hussain Bustani, formerly Assistant General Manager – Human Resources and Administration at BBK, has been appointed to head the Project Management Office (PMO) and will oversee the implementation of these recommendations under the supervision and guidance of the COC, which will report progress to the Board which in turn will closely monitor the achievements in this area.

BUSINESS REVIEW :

Despite a slowdown in the corporate banking sector locally, BBK has continued to perform well. Throughout 2012, Relationship Managers worked closely with their colleagues in other areas of the Bank to maximise product cross-selling opportunities. Revenue targets were exceeded and provisions were in line with forecast.

BBK Cashlink, the Bank’s market-leading payments and cash management platform, was further upgraded and now provides both enhanced customer convenience and improved levels

of efficiency. As a result of increasing transaction volumes, Transactional Banking has seen growth in revenues this year.

International Banking had a good year, with some new lending opportunities in India and the expansion of our presence in Kuwait, where business is developing well. There was continued focus on building bilateral corporate relationships and providing working capital facilities to clients in the GCC region. This approach resulted in further successes in Saudi Arabia, Qatar and Oman.

The Retail Banking business continued to make steady progress and has effectively leveraged investments made in new technology and new distribution channels. The retail component of the Bank’s lending grew in 2012 and several important new product and service initiatives were completed, including the launch of our new Al Wajaha account.

Some excellent decisions were made during the year in respect of BBK’s Treasury and Investment portfolio, particularly in the case of fixed income opportunities, and this area of the Bank has once again performed strongly.

2012 financial highlights

BBK was able to achieve net profits of BD 42.4 million in 2012, up 33.3 per cent on the previous year’s profit of BD 31.8 million. Net interest income rose 11.6 per cent to BD 65.8 million. Fees and commissions stood at a healthy level of BD 29.0 million with growth of 10.3 per cent over 2011, mainly due to additional business generated by the corporate and retail banking businesses.

Fuelled by a strong growth in customer deposits, total assets grew by BD 343 million to BD 3,108 million. This increase resulted in business growth in retail, corporate, investments and international business. Customer deposits increased by 6.2 per cent to reach BD 2,205 million, a reflection of the high level of customer confidence and trust in BBK. Non-trading investments also increased, by 27.2 per cent, with the Bank continuing its policy of seeking out and investing only in high quality opportunities. The portfolio is both well diversified and well hedged to limit risk.

This very satisfactory financial performance was achieved despite the Bank making higher general provisions for possible impairments. The adoption of a conservative provisioning policy is aimed at ensuring that BBK is well-cushioned against the impact of further turbulence in the markets. Net provisions for the year amounted to BD 15.0 million.

At the close of business on 31 December 2012, the Bank’s market capitalisation stood at BD 331 million (or 394 fils per share).

FUTURE OUTLOOK :

Bahrain receives strong financial support from other GCC countries, and, over the course of 2012, spending by the Government has been the main driver of the local economy. The Government budget is expected to rise further in 2013 and beyond, and there will be increased levels of activity in the infrastructure development sector, mainly in projects such as roads, power plants, housing and schools. BBK intends to play a greater role in the future development of Bahrain’s infrastructure, and we expect this to be a catalyst for more activity in the corporate, trade and contracting sectors.

Retail and consumer activity is likely to increase in 2013, providing further room for growth on this side of our business. We believe that there will be more activity for BBK in India as well, and there are good prospects for us to get involved in new financing opportunities in Kuwait, where a number of major projects will be starting soon.

OPERATING RESULTS :

The Bank achieved a net profit, attributable to the owners of the Bank, of BD 42.4 million for the year ended 31 December 2012, being 33.3 per cent higher than last year. The net result for the year was largely impacted by the boost in the Bank’s core operating activities stemming mainly from the net interest income, commercial services fees and FX and investment activities income. In continuation of the BBK’s prudent approach to risk management and provisioning, the Bank has conservatively provided for adequate provisioning levels in 2012 to cater for unexpected losses caused by market turbulences including the changes in the fair market value for certain available-for-sale investments.

PRESS RELEASES :

BBK INAUGURATES A NEW BRANCH IN INDIA

06.06.2013

BBK, Bahrain pioneer in retail and commercial banking announced the opening of its third branch in India, at Aluva, in Kochi (Kerala) on May 24TH 2013.

The Branch was inaugurated by the Prof. K.V. Thomas, Minister of foods and Consumer Affairs, Govt. of India and Mr. Anwar Sadath, MLA, Mr. V.D. Satheesam, MLA, Mr. Jacob Moothedan, Chairman Aluva Municipality in the presence of members, of the BBK Executive Committee as well as the senior management, headed by Mr. A.Karim Bucheery, BBK Chief Executive and Mr. Mallikarjun Kota, Country Head – BBK India

BBK’s presence in India dates back to 1985 with the opening of its first branch in Mumbai, followed by a second one in Hyderbad. Then in 2012, the Reserve Bank of India granted BBK the license to operate the
third branch in the country, in Kochi.

During the press conference  held on this occasion, Mr A.Karim Bucheery commented: “We are very pleased to strengthen our presence  in India considering the strong ties between the Kingdom of Bahrain and the Republic of India, built over long decades. Even before entering the India market, BBK has always focused on offering products and services to the NRI (Non Resident Indians)  community from its Bahrain, Kuwait and UAE branches”

Like the other BBK branches in India, the Cochin branch is equipped with full fledged NRI desk that cater to a variety of needs of Non-Resident Indians like personalized banking, equity broking and wealth management. It offers full-fledged services and facilities to Corporate customers including small to medium enterprises |(SMEs), while it will further widen the base of resident customers.

 “Our commitment to growing our business in India, in line with our overall expansion strategy, is ongoing and we have already applied for a license to establish a fourth branch in one of the main cities of the country. India has
enormous growth potential and we anticipate new opportunities to leverage our GCC presence there and to capitalise on trade flows and money transfers between India and the GCC” added Mr. Bucheery.

NEW APPOINTMENTS IN BBK’S EXECUTIVE MANAGEMENT TEAM

05.06.2013

BBK, Bahrain pioneer in retail and commercial banking announced new appointments in its Executive management team. These come in line with the Bank's new strategy for the years 2013-2015, developed with the ultimate goal of optimising performance and increasing efficiency through exploiting growth opportunities and capitalising on the Bank's solid pillars. The new appointments are part of the reorganisation structure, approved recently by the Board of Directors, as one of the BBK's initiatives.

As BBK's Chief Executive Mr. A.Karim Bucheery stated, this reorganization of the higher management structure aims at ensuring continued growth for all the stakeholders of the Bank. Through business development and by maintaining the Bank's pioneering position locally and regionally, constantly offering the most innovative products and services, the Bank will enhance its performance and profitability.

A new Business Development department has been created, covering the Group (the Bank and its subsidiaries) and some divisions have merged to ensure better performance and focus on the goals set in the new strategic cycle.

Mr. Reyadh Yousif Sater has been appointed as Deputy Chief Executive - Business Group, Mr. Jamal Hijris, General Manager - Support Group, Mr. Khalil El Meer, General Manager - Corporate Banking, Dr. A.Rahman Saif, General Manager – Treasury, Investment and Offshore Banking and Mr. Mohammed Malik, General Manager, Retail Banking.

On this occasion, Mr. A.Karim Bucheery expressed his joy with these new appointments by saying: “BBK has always capitalized on the competencies and leadership skills of the Bahrain nationals and given Bahraini talents opportunities in leading positions to take the Bank forward. We are very pleased with the new appointments and confident that the new team will contribute to achieve the Bank’s vision and set goals”

As a successor to Sh. Rashed bin Salman Al Khalifa, retiring on June 23rd, Mr Reyadh Sater, currently General Manager - Support group, has over 35 years banking experience, during which he headed various divisions and committees in the Bank.He is also board member in BBK's subsidiaries and affiliate companies such as  Benefit, Capinnova Islamic Bank and CrediMax. On the occasion of his appointment, Mr. Reyadh Sater commented:" I highly value the decision of the Board and greatly appreciate the trust that the board members have granted me and I look forward to contribute to the success of the Bank and to achieve the set objectives." Mr Sater also expressed his gratitude to the Bank whose policies have always been to develop the Bahraini pool of talents, giving them the opportunity to demonstrate their capabilities and positioning the Bank as the "employer of choice" amongst Bahrainis.

Jamal Hijris, who’s rejoining the Bank as General Manager – Support Group, also enjoys over 35 years experience in conventional and Islamic banking for both retail and corporate. He occupied leading positions in the industry, and is currently heading Capinnova Islamic Bank as Chief Executive.

In the Banking Group, Mr. Khalil Al Meer, appointed as General Manager – Corporate Banking, has twenty seven years banking experience. The division will be incorporating Small to Medium Enterprises (SMEs) businesses, Islamic Banking as well as Trade Finance.

On the Treasury and Investment side, Dr. A.Rahman Saif will be heading the division as General Manager and will be taking onto his responsibilities Offshore Banking. Dr Saif’s career in banking expands to over thirty years and has worked at both Central Bank of Bahrain and BBK.

On the Retail front, Mr. Mohammed Malik, appointed as General Manager – Retail Banking has over twenty eight years banking experience. He has been appointed for his extensive expertise in retail, and his contribution to the success of CrediMax, BBK wholly-owned subsidiary.

He was dedicated to constantly improve the company’s product offering and maintain its dominant position in the Credit Card issuing and acquiring business.

AWARDS :

BBK Wins Middle East e-Government and e-Service Excellence Award 2011 for e-Banking

As part of the 16th Middle East e-Government and e-Services Excellence Awards 2011, BBK, Bahrain pioneer in retail and commercial banking, won the e-Banking Excellence Award from the Middle East Excellence Awards Institute (MEEAI).

This prestigious award has been granted to BBK in light of its innovative and comprehensive web-based solutions catering to both retail as well as business customers. Mr. Rashad Akbari, Assistant General Manager- Transactional Banking Division, BBK was presented with the award at the ceremony held by MEEAI on Wednesday 25th May, 2011 at Burj Al Arab Hotel in Dubai, in the presence of decision makers, e-Government projects managers, media representatives and other invited guests.

MEEAI was established as a platform to recognize and honor the outstanding achievements of leaders and organizations who have contributed to the remarkable growth and development of the regional and global economy. The institute conducts field research and studies in government and private institutions in the Middle East to identify the best social, technological, economical, media, financial and leadership achievements based upon the modern knowledge economy and leadership culture to recognize their significant role played in the region. Recognition is also received by individuals who are able to bring about change and to consolidate the necessary leadership principles and qualities and to contribute to building the region’s future based on the international standards of competitiveness.

Upon receiving the Award, Mr. Rashad Akbari said: “After BBK won in 2011 the Bahrain e-Government e-Content award for the fourth consecutive year in the Kingdom of Bahrain, we are proud on winning also the e-Banking Excellence Award for the Middle East. BBK is always keen on achieving the highest levels of quality and to provide the best banking solutions that meet the customers’ needs, being one of the leading banks that offers the latest and best quality technologies.”

He added: “We have recently developed and enhanced the Bank’s website and launched our latest Corporate Cash Management Platform BBKCashlink which qualified the Bank to win such prestigious award and win our customers’ satisfaction. Winning this award is considered one of the Bank’s significant achievements, which motivates us to continue to use the latest and most sophisticated technologies for the convenience of our customers. We seek to win the MEEAI recognition yet again and wish to thank them for their appreciation.”

Meanwhile, Mr. Ali Al Kamali, Datamatex & MEEAI General Manager said the Award seeks to develop a climate of competition based upon the quality standards among individuals, government and business organizations throughout the region according to the international assessment standards. This will have a significant impact upon the growth of the IT industry and its growth in the region. The event coincides with new economic and technological developments in the region that will bring about a fundamental change in the regional and international technological and economic map, which will certainly help achieve economic development goals.”

Al Kamali added information technology and telecommunications have elements of power that can bring about change in work and management patterns in government agencies to enhance performance and to save money and efforts. They also provide an electronic boom that involves citizens and civil society organizations in discussing policies through direct dialogue and support to the decision making process and drawing up policies that provides better understanding of individuals and the economy.

BBK brings the operational convenience of banking to the door step of its customers. It enables both individuals and businesses to manage their finances effortlessly. Primarily any customer, be it a Retail or Corporate entity, can benefit from BBK’s wide range of secure, customized, cost effective and timely 24X7 Internet banking services. Striving to be at the financial forefront for all our customers’ needs, BBK has recently revamped its website www.bbkonline.com and launched the new release of Internet Retail Banking; it has been redesigned to incorporate better functionality and more advanced features to deliver customers a faster, safer and more convenient service than ever before. Further BBK has recently launched its suite of Cash Management products and services designed to cater to the needs of Corporate Customers through its latest offering BBK Cashlink. The platform allows the customer to access a host of features and functionality from anywhere around the world and is built on robust technology, leveraging the highest possible security standards.

BBK awarded and recognized for excellent corporate governance practices at the “Hawkamah Bank Corporate Governance Awards 2012” ceremony

Bahrain’s pioneer in Retail and Commercial Banking- was awarded and recognized for excellent corporate governance practices at the “Hawkamah Bank Corporate Governance Awards 2012” ceremony held on 12th June 2012 during Banker Middle East’s Industry Awards held in Dubai. Mr. Mahmood A.Aziz Al Meer, Assistant General Manager Operations – BBK, received the award on behalf of the Bank.

For the third consecutive year, BBK has received the Corporate Governance award and the recognition. This year it competed with banks from 9 countries in the MENA region. Hawkahmah’s Bank Corporate Governance Award recognizes banks for exhibiting high levels of commitment to good corporate governance practices and ongoing enhancements in the area.

Dr. Nasser Saidi, Executive Director of Hawkamah Institute congratulated the winning banks and thanked them for entering a very competitive selection process. The criteria on which the jury based its decision included evaluating responses to extensive questionnaire, interviews with Senior Management and the quality of the winners’ annual reports.

On this occasion, Mr. Murad Ali Murad, Chairman – BBK expressed his pleasure at this achievement by saying, “BBK strongly believes that distinguished corporate governance practices is a key element for trust with all its stakeholders. This award illustrates once more the commitment of the Bank to apply modern, transparent and effective governance principles with its customers, employees, shareholders and the general public. We would like to thank Hawkamah Institute for recognizing our approach to corporate governance. We will continue to strive for attaining higher standards and to set new benchmarks in this important area”

“We are very proud to receive such an honorable recognition consecutively for the past 3 years and to be appreciated for maintaining the highest levels of commitment to corporate governance. BBK practices high governance standards and transparency in conduct of its activities at all levels throughout the Bank.” added Mr. Abdulkarim Bucheery, CE – BBK.

This year’s international jury panel comprised: Mr. Charles Freeland, Retired Deputy Secretary General of the Basel Committee on Banking Supervision at the Bank for International Settlements in Basel, Switzerland. Prof. Andrew D. Chambers, the Specialist Advisor to the House of Lords’ Economic Affairs Select Committee’s Inquiry into Auditors: market concentration and their role. Andrew has been a member of the UK FRC’s Auditing Practices Board (2006-9). He is Deputy Chair of Fédération des Experts Comptables Européen’s (FEE’s) Corporate Governance and Company Law standing Working Party (Brussels). Dr. Grant Kirkpatrick, Deputy Head of the Corporate Affairs Division of the Organisation for Economic Co-operation and Development (OECD) Directorate for Financial and Enterprise Affairs and Dr. Rainer Geiger, Professor of International Economic Law, and Ex -Senior Regional Advisor, Organisation for Economic Co-operation and Development (OECD).

BBK Awarded for distinguished Corporate Governance practise

Bahrain’s pioneer in retail and commercial banking, was honored for “Distinguished Corporate Governance” at the “Hawkamah-UAB 2010 Bank Corporate Governance Award” ceremony held in Muscat on 1st November, 2010. BBK’s commitment for Corporate Governance best practices have been recognized for the second consecutive year as it was the winner of last year’s 1st prize “2009 Bank Corporate Governance Award”. Mr. Reyadh Sater, General Manager Shared Services Group – BBK, attended the ceremony and accepted the award on behalf of the Bank.

In announcing the award, Professor Andrews, the chairman of the jury panel, lauded the commitment displayed by BBK in furthering the Corporate Governance practices, always ahead of the regulatory standards, as the Bank continues to be proactive in taking initiatives to enhance the Corporate Governance standards.

On this occasion, Mr. Murad Ali Murad, Chairman – BBK shared his perspective by saying, “Recognizing the Bank’s distinguished Corporate Governance practices for this year shows BBK continuous commitment to the core values of Corporate Governance. It is one of our priorities to abide by accountable and fair policies that govern the functionality of the Bank and we look forward to maintaining this excellence in the coming years.”

BBK wins first place for excellence in Corporate Governance practices

Bahrain’s pioneer in retail and commercial banking, BBK, was recently awarded with the industry’s most prestigious Bank Corporate Governance Award at a ceremony held in Dubai on the 9th November 2009. The Bank secured first place in a major regional survey on corporate governance conducted by the Hawkamah Institute for Corporate Governance and the Union of Arab Banks (UAB). Mr Reyadh Sater, General Manager Shared Services Group – BBK, attended the ceremony and accepted the award on behalf of the Bank.

On the joyous occasion, Mr Murad Ali Murad, Chairman – BBK shared his perspective by saying, “At BBK we have always given utmost priority to the core values of Corporate Governance. It is a way of life for us to maintain complete accountability and fairness through our policies that govern the basic functionality of the Bank. We are very happy to be recognized for the Banks excellence in abiding by its Corporate Governance codes and look forward to maintaining this honor in the coming years.”

Launched in 2007 by Hawkamah and UAB, the ‘Bank Corporate Governance’ Award seeks to identify and honor regional banks that show leadership and initiative in enhancing good corporate governance. The award has become a prestigious, competitive and highly coveted bank award that highlights the industry’s strong commitment to good corporate governance.

“A prime factor of being the pioneers of commercial and retail banking in Bahrain for the last 35 years for us is our diligence in complying with the policies laid down by the regulatory authorities. We have ensured that at all levels through out the Bank a high level of transparency is maintained where each employee understands the role they play in making certain our Corporate Governance code is adhered to and we are very glad that we have won such a principle award that recognizes our effort,” said Mr Abdulkarim Bucheery, CE – BBK, who together with Dr Mukund Ballal, head of Compliance and MLRO at BBK attended the panel interview for the final selection.

From his side, Mr. Reyadh Sater, General Manager Shared Services Group – BBK, conveyed his joy at the award ceremony expressing BBK’s longstanding leading position and strong commitment to good corporate governance, being amongst the first Banks in the Kingdom of Bahrain to form an Internal Audit Committee, long before it became a regulatory requirement by the CBB.

The 2009 Bank Corporate Governance Award attracted 30 applications from banks in 11 Middle East countries including UAE, Bahrain, Iraq, Kuwait, Lebanon, Oman, Morocco, Qatar, Sudan, Syria and Tunisia. An independent jury of international banking and corporate governance experts that included Professor Andrew Chambers, who has extensive experience in corporate governance, risk management and internal auditing; Alan McIntyre, Financial Services Sector Leader for the Middle East Region for PricewaterhouseCoopers; and Charles Freeland, a well-respected international banking consultant and former Deputy Secretary General, Basel Committee on Banking ,reviewed all the applications and conducted.

BBK wins Bahrain eContent Award

Proving to be the pioneers in retail and commercial banking yet again, we won the Bahrain eContent Award under the e-Business category for the third year in a row for our innovative and comprehensive website. Our CE, Abdulkarim Bucheery, was presented with the award at a ceremony hosted at the Sheraton Hotel on the 16th of March 2009. The Bahrain Content Award is organized by the eGovernment Authority in Bahrain along with the Bahrain Internet Societyand inspired by WSA - the World Summit Award in order to select quality eContent and promote creativity and innovation in the development of new media applications in Bahrain. Being described as a portal that provides a wide range of online services and allows its customers to carry out their most required daily transactions online by the jury, our website has achieved the aim of providing ‘anytime, anywhere, anyhow’ 24x7 banking services to customers. On accepting the award, Mr. Bucheery expressed his gratitude by saying, “Our focus at BBK is to ensure complete customer satisfaction and we have been at the forefront in incorporating the latest technologies to provide the finest of services to our customers. Our eBanking service is one such example and I am very pleased to see the acceptance it has received through out our customer base and now with our esteemed jurors of the Bahrain eContent Award.”

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. 60.59
UK Pound	1	Rs. 92.92
Euro	1	Rs. 78.94

INFORMATION DETAILS

Report Prepared by :

NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		61

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.