MIRA INFORM REPORT
|
Report Date : |
25.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CITY UNION BANK LIMITED |
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Formerly Known
As : |
THE KUMBAKONAM BANK LIMITED |
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Registered
Office : |
149, Big Street, Tanjore District, Kunbakonam – 612001, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
31.10.1904 |
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Com. Reg. No.: |
18-001287 |
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Capital Investment
/ Paid-up Capital : |
Rs.408.213 Millions |
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CIN No.: [Company Identification
No.] |
L65110TN1904PLC001287 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEC05180A |
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PAN No.: [Permanent Account No.] |
PANAPPLIED |
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Legal Form : |
Public Limited Liability Bank. The Bank’s Shares are Listed on the
Stock Exchanges. |
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Line of Business
: |
Subject is engaged in Banking Activities. |
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No. of Employees
: |
3347 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 49700000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is one of the oldest private-sector banks in India. It was incorporated
as The Kumbakonam Bank Limited by 20 citizens of Kumbakonam (Tamilnadu) in
1904. It is a well-established and a reputed bank having an excellent track
record. Financial position of the bank appears to be sound and healthy. It
enjoys adequate capitalization, above-average earnings, and comfortable
assets quality. Trade relations are reported as trustworthy. Business is active.
Payment terms are regular and as per commitment. The bank can be considered excellent 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.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global financial
crisis - in large part because of strong domestic demand - and growth exceeded
8% year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
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Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Certificate of Deposits) |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
September 20, 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 DENIED BY
|
Name : |
Mr. Venkatesh |
|
Designation : |
Chief Manager |
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Contact No.: |
91-44-28297035 |
|
Date : |
19.03.2013 |
LOCATIONS
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Registered Office/ Central Office : |
149, Big Street, Tanjore District, Kunbakonam – 612001, Tamilnadu,
India |
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Tel. No.: |
91-435-2431622/ 2431412/ 2432322/ 2431510/
2432367 |
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Fax No.: |
91-435-2431746 |
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E-Mail : |
r.k.viswanathan@cityunionbank.in |
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Website : |
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International
Banking Division/
Service Branch : |
706, Anna
Salai Chennai – 600006, |
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Tel.
No.: |
91-44-28523152/
6535/ 4903 |
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Fax
No.: |
91-44-28520359 |
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Branches : |
Located at:
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DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. S. Balasubramanian |
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Designation : |
Chairman |
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Qualification : |
M.Sc., CAIIB. PGDFM. |
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Name : |
Dr. N. Kamakodi |
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Designation : |
Managing Director and Chief Executive Officer |
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Qualification : |
B. Tech., MBA, CAIIB, Ph.D. |
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Name : |
Mr. K.S. RAMAN |
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Designation : |
Director |
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Qualification : |
M.Sc. |
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Name : |
Mr. S. Bernard |
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Designation : |
Director |
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Qualification : |
B.Com., F.C.A. |
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Name : |
Mr. N. Kantha Kumar |
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Designation : |
Director |
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Qualification : |
B.Com., L.L.B., CAIIB |
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Name : |
Mr. R. G. Chandramogan |
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Designation : |
Director |
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Directorships in
other Companies : |
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Name : |
Mr. T.K. Ramkumar |
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Designation : |
Director |
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Qualification : |
B.Com., B.L. |
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Name : |
Justice S.R. Singharavelu |
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Designation : |
Director |
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Qualification : |
B.Sc., B.L. |
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Name : |
Mr. C.R. Muralidharan |
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Designation : |
Director |
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Qualification : |
B.Sc., CAIIB |
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Directorships in
other Companies : |
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Name : |
Prof. V. Kamakoti |
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Designation : |
Director |
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Qualification : |
B.E., M.S., Ph.D |
KEY EXECUTIVES
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Name : |
Mr. Venkatesh |
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Designation : |
Chief Manager |
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Name : |
Mr. R. Mohan |
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Designation : |
Chief General Manager |
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Name : |
Mr. S. Sekar |
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Designation : |
Senior General Manager |
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Name : |
Mr. S. Sundar |
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Designation : |
CFO and Senior General Manager |
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Name : |
Mr. T.S. Ramanujam |
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Designation : |
General Manager |
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Name : |
Mr. J. Kumar |
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Designation : |
General Manager |
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Name : |
Mr. R. Venkatasubramanian |
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Designation : |
General Manager |
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Name : |
Mr. R. K. Viswanathan |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S. Balasubramanian |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S. Rajagopalan |
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Designation : |
Deputy General Manager |
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Name : |
Mr. K. Maharajan |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S. Swaminathan |
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Designation : |
Deputy General Manager |
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Name : |
Mr. K.P. Sridhar |
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Designation : |
Deputy General Manager |
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Name : |
Mr. R. Sairam |
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Designation : |
Deputy General Manager |
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Name : |
Mr. R. Krishnan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S. Venkatesan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. R. Subramanian |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S. Mohan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. R. Lakshminarayanan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. P. Varadarajan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V. Ganesan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. K.R.S. Varadhan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V.S. Srinivasan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V. Krishnamoorthy |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V. Suguna |
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Designation : |
Assistant General Manager |
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Name : |
Mr. R. Rajaraman |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S. Arumugam |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S.T. Chandrasekaran |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S. Rajam |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S. Raja |
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Designation : |
Assistant General Manager |
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Name : |
Mr. K. Panchapakesan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. M. Mounisamy |
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Designation : |
Assistant General Manager |
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Name : |
Mr. R. Subramanian |
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Designation : |
Assistant General Manager |
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Name : |
Mr. S. Ramesh |
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Designation : |
Assistant General Manager |
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Name : |
Mr. D.B.V.N. Sarath Chandra Kumar |
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Designation : |
Assistant General Manager |
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Name : |
Mr. P. Thiagarajan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V.V. Kannan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. P. Ravi |
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Designation : |
Assistant General Manager |
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Name : |
Mr. A. Ragothaman |
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Designation : |
Assistant General Manager |
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Name : |
Mr. R. Rengarajan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. R. Sankaran |
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Designation : |
Assistant General Manager |
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Name : |
Mr. J. Rajasekaran |
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Designation : |
Assistant General Manager |
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Name : |
Mr. C. Ganesan |
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Designation : |
Assistant General Manager |
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Name : |
Mr. J. Chandrasekar |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V.S.S. Krishna Prasad |
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Designation : |
Assistant General Manager |
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Name : |
Mr. V. Ramesh |
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Designation : |
Assistant General Manager and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
(1) Indian |
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(B) Public
Shareholding |
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|
8951469 |
2.18 |
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|
1206582 |
0.29 |
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|
20251923 |
4.94 |
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|
96002129 |
23.42 |
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|
126412103 |
30.84 |
|
|
|
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|
44430075 |
10.84 |
|
|
|
|
|
|
133693592 |
32.61 |
|
|
74012448 |
18.05 |
|
|
31403668 |
7.66 |
|
|
677875 |
0.17 |
|
|
81179 |
0.02 |
|
|
18750000 |
4.57 |
|
|
11894614 |
2.90 |
|
|
283539783 |
69.16 |
|
Total Public
shareholding (B) |
409951886 |
100.00 |
|
Total (A)+(B) |
409951886 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
409951886 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Banking Activities. |
GENERAL INFORMATION
|
No. of Employees : |
3347 (Approximately) |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Jagannathan and Sarabeswaran Chartered Accountants |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.1/- each |
Rs.1000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
408212649 |
Equity Shares |
Rs.1/- each |
Rs.408.213 Millions |
|
|
|
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As on: 31.08.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.1/- each |
Rs.1000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
409951886 |
Equity Shares |
Rs.1/- each |
Rs.409.952 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
CAPITAL AND
LIABILITIES |
|
|
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|
Share Capital |
408.213 |
405.031 |
399.596 |
|
Reserves and Surplus |
12022.756 |
9661.198 |
7856.764 |
|
Deposits |
163407.562 |
129142.851 |
102845.895 |
|
Borrowings |
3487.027 |
1861.548 |
400.632 |
|
Other Liabilities & Provisions |
4181.021 |
4844.560 |
4091.512 |
|
|
|
|
|
|
Total |
183506.579 |
145915.188 |
115594.399 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of India |
8146.661 |
10522.380 |
8685.308 |
|
Balances with Banks & Money at Call and Short Notice |
3214.432 |
2340.809 |
2316.663 |
|
Investments |
45861.924 |
36162.275 |
32104.298 |
|
Advances |
121374.603 |
92554.603 |
68334.595 |
|
Fixed Assets |
977.338 |
685.326 |
630.394 |
|
Other Assets |
3931.621 |
3649.795 |
3523.141 |
|
|
|
|
|
|
Total |
183506.579 |
145915.188 |
115594.399 |
|
|
|
|
|
|
Contingent Liabilities |
97016.961 |
41622.199 |
24285.542 |
|
Bills for Collection |
3688.528 |
2896.770 |
4310.922 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
|
I |
INCOME |
|
|
|
|
|
Interest Earned |
16967.736 |
12184.076 |
9566.080 |
|
|
Other Income |
2071.344 |
1574.036 |
1434.997 |
|
|
Total |
19039.080 |
13758.112 |
11001.077 |
|
|
|
|
|
|
|
II |
EXPENDITURE |
|
|
|
|
|
Interest Expended |
11970.229 |
7983.792 |
6784.658 |
|
|
Operating Expenses |
2798.323 |
2164.008 |
1658.511 |
|
|
Provisions and Contingencies |
1468.010 |
1459.770 |
1030.260 |
|
|
Total |
16236.562 |
11607.570 |
9473.429 |
|
|
|
|
|
|
|
III |
PROFIT / LOSS |
|
|
|
|
|
Net Profit |
2802.518 |
2150.542 |
1527.648 |
|
|
Profit brought forward |
55.613 |
55.547 |
50.078 |
|
|
Total |
2858.131 |
2206.089 |
1577.726 |
|
|
|
|
|
|
|
IV |
APPROPRIATIONS |
|
|
|
|
|
Statutory Reserves |
710.000 |
560.000 |
390.000 |
|
|
Capital Reserve |
0.006 |
0.020 |
57.349 |
|
|
General Reserve |
1400.000 |
984.000 |
670.000 |
|
|
Investment Reserve Account |
7.296 |
0.000 |
0.000 |
|
|
Special Reserve under IT Act, 1961 |
200.000 |
205.000 |
55.000 |
|
|
Proposed Dividend |
408.213 |
344.276 |
300.000 |
|
|
Dividend Tax thereon |
66.595 |
57.180 |
49.830 |
|
|
Balance carried over to Balance Sheet |
66.021 |
55.613 |
55.547 |
|
|
|
|
|
|
|
|
Total |
2858.131 |
2206.089 |
1577.726 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st
Quarter |
30.09.2012 2nd
Quarter |
31.12.2012 3rd
Quarter |
|
Interest Earned |
5042.100 |
5315.400 |
5555.800 |
|
Income On Investments |
881.600 |
917.900 |
932.700 |
|
Interest On Balances With RBI Other Inter Bank Funds |
7.400 |
11.600 |
8.900 |
|
Interest / Discount On Advances / Bills |
4153.100 |
4385.900 |
4614.100 |
|
Others |
0.000 |
0.000 |
0.000 |
|
Other Income |
626.900 |
645.000 |
658.900 |
|
Total Income |
5669.000 |
5960.300 |
6214.700 |
|
Interest Expended |
3662.700 |
3822.100 |
3921.400 |
|
Operating Expenses |
864.800 |
855.200 |
980.100 |
|
Total Expenditure |
864.800 |
855.200 |
980.100 |
|
Operating Profit Before Provisions and Contingencies |
1141.500 |
1283.000 |
1313.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
177.600 |
278.800 |
311.000 |
|
Profit Before Tax |
963.900 |
1004.200 |
1002.300 |
|
Tax |
225.000 |
200.000 |
150.000 |
|
Profit After Tax |
738.900 |
804.200 |
852.300 |
|
+/- Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
+/- Prior period items |
0.000 |
0.000 |
0.000 |
|
Net Profit |
7388.900 |
8042.400 |
8522.500 |
LOCAL AGENCY FURTHER INFORMATION
|
LITIGATION DETAILS |
|
|
CHENNAI COURT CASE STATUS INFORMATION SYSTEM |
|
|
Case Status: |
Pending |
|
Status Of: |
FIRST APPEAL |
|
Case No.: |
19 |
|
Year : |
2011 |
|
Petitioner : |
M/S KARUR YARN LINKS LIMITED |
|
Respondent : |
CITY UNION BANK LIMITED |
|
Pet's Advocate : |
M/S.M.RAJENDIRAN |
|
Res's Advocate : |
M/S.R.SIVARAMAN |
|
Category : |
NO CATEGORY MENTIONED |
|
Case Updated on : |
October 29, 2011 |
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
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 |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
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 |
FINANCIAL RESULTS:
2011-12
It is gratifying to report
that the Bank's high growth pattern was sustained in succession for the year
ended 2011- 2012 also. The net profit increased to Rs. 2800.000
Millions from Rs. 2150.000
Millions in the previous year registering a growth of 30.23% during the
financial year 2011-12.
DEPOSITS
The total deposits of the Bank increased by Rs. 34270.000 Millions to reach Rs. 163410.000 Millions as on 31.03.2012 which is 27% higher than the previous year. The low cost Current Accounts and Savings Bank (CASA) deposits increased by 18% to Rs. 29720.000 Millions on account of sustained efforts and measures initiated by the bank. The year witnessed an increasing interest rate scenario in which our cost of deposits too rose higher to 8.11% when compared to 6.94% prevailed in the previous year.
ADVANCES
The advances portfolio of the Bank increased by 31% from Rs. 93290.000 Millions to Rs. 122220.000 Millions. Corresponding with the increase in the cost of deposits, the Bank could enhance the yield on advances by 1.09% to 13.56% from 12.47%.
The prime focus of the bank remained towards growth in advances without compromising on the quality. The strict monitoring of advances portfolio coupled towards with early identification of potential slippages and aggressive recovery of bad loans helped the bank achieve a remarkable improvement in its quality of advances portfolio by bringing down the Gross NPA by 20 basis points to 1.01% from 1.21%. The percentage of Net NPA at 0.44% and the provision coverage ratio of 76.81% at the end of March, 2012 may be regarded as very good performance by the bank.
The Bank's priority sector advances stood at 47% and its agricultural finance reached 17% of the adjusted net bank credit.
TREASURY OPERATIONS:
Domestic Treasury
The gross investments increased from Rs. 36250.000 Millions at the end of last year to Rs. 45940.000 Millions. Out of these, the investments in Government Bonds alone amounted to Rs. 38530.000 Millions to maintain statutory reserve requirements on enlarged resources. The bond market was bearish during most part of the year with steady rise in market interest rates offering limited opportunities to trade and earn profits. The Yield to Maturity (YTM) on the 10 year Government of India bond stood higher at 8.57% as on 31.03.2012 as against 7.98% as on 31.03.2011. The equity market also reflected similar sentiments. Despite such difficult trading conditions, the treasury desk handled the trading functions efficiently and earned a profit of Rs. 77.700 Millions, which is 17.55% higher over the previous year.
Forex Treasury
During the year there were two way movements of appreciation and depreciation for the rupee against major currencies. The rupee opened at 44.53 against US dollar to touch a high/low of 43.85/54.30 during the year and closed at 50.87 to a US dollar on. The currency market was volatile for most part of the year. The forex treasury made full use of the two way movements and market volatility in its proprietary trading deals and the profit from forex treasury operations touched Rs.152.200 Millions registering a steep growth of 44% compared to the previous year.
FINANCIAL RESULTS
The higher yield on advances coupled with a growth in advances and investments has resulted in bank's total income rising by 38% to Rs. 19040.000 Millions. Similarly the total expenses increased to Rs. 14770.000 Millions on higher deposit interest and other operating expenses.
The expansion in the balance sheet size and improved efficiency of core banking operations culminated in the Net Interest Income (NII) attaining a mile stone of Rs. 5000.000 Millions, a significant mile stone for the Bank translating into a growth of 19% over the previous year.
The non interest income of the Bank increased by 32% from Rs. 1570.000 Millions to Rs. 2070.000 Millions. The Bank continues to maintain its top position in the Southern Zone in its bancassurance partnership with the Life Insurance Corporation of India.
The Bank achieved an operating profit of Rs. 4270.000 Millions against Rs. 3610.000 Millions recorded in the previous year recording a growth of 18%. The net profit too increased by 30% from Rs. 2150.000 Millions to Rs. 2800.000 Millions. The return on average assets for the year was also higher at 1.71% when compared to 1.67% last year reflecting better utilization of assets.
NETWORTH AND CRAR
The Bank's paid-up capital was Rs. 408.200 Millions as on 31 March, 2012 and the Net worth improved from Rs. 10066.200 Millions as on 31 March, 2011 to Rs. 12430.900 Millions as on 31 March, 2012. During the year the bank allotted 3181,646 shares to employees who have exercised their options under the Employees' Stock Option Scheme, 2008. The Capital Adequacy Ratio as at 31 March, 2012 stood at 12.57% as per BASEL-II norms well above the regulatory norm of 9%.
BRANCH EXPANSION
As one of the key planks for business growth and customer acquisition, the bank continued to enlarge its distribution network. Widening geographical reach is critical for extending service delivery and for tapping growth opportunities in newer markets, especially in the areas of low cost CASA deposits, lending to borrowers in the retail segment, agriculture and cross selling of financial related products. This year the Bank has added 54 branches to its network by opening new branches at various centers and the distribution network now covers 300 branches as on 31st March 2012. Of these 149 branches are in semi-urban and rural areas and 151 branches are in Metropolitian and Urban areas covering a total of 15 states in India.
FINANCIAL INCLUSION
PROGRAMME
The Bank has complied with RBI direction of financial inclusion of covering all the 42 villages having population of over 2000 by introducing ICT (Information, Communication and Technology) based services within the stipulated time frame.
The Bank has also covered 26 villages having population over 1000 and below 2000 by introducing ICT based services during the financial year 2011-12.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
ECONOMIC SCENARIO
GLOBAL ECONOMY
In the financial year 2012, the global economy continued to muddle with slow but positive growth avoiding economic crisis. In contrast the emerging economies registered better growth performance.
The situation is unusual and unprecedented in the European Union (EU). This can be gauged from the fact that the yield on the two year German bonds declined during the course of the year and touched even below zero towards end of May 2012. The government of Spain is borrowing from the market at 7% yield. The unemployment in the 17 country euro zone was at the highest ever level of 11% in April and May 2012. The government deficits stood high at 4.1% for the EU.
In the USA however the unemployment rate recorded was still high at 8.2% though improving from the previous higher levels. The fiscal deficit was 9.7% in the USA. The World Trade Organization has forecast slowdown in global trade with growth estimate of 3.7% in 2012 compared with 5% in 2011 against the robust growth of 13.8% recorded in 2010. In the first ever down grade the sovereign rating of the US was revised down from AAA to AA+ by Standard and Poor in Aug 2011.The yield on the US treasury bonds has hit a sixty year low with the yield on the 10 year bonds falling to a historic low of 1.5%.
The BRICs countries constitute 42% of the world's population and a quarter of its landmass. They are also responsible for 20% of the Global GDP and own a whopping 75% of the foreign reserve worldwide. Among the four India is reporting a dismal growth rate. Another Asian growth engine China is expected to report sub 8% growth in 2012.
The good news however is that in the absence of a European meltdown, most of the global economy has been improving. The most recent measures indicate that growth in the U.S., other developed countries and emerging markets is stabilizing, albeit at a below trend level.
INDIAN ECONOMY
During the financial year ended March 2012, the domestic economy which enjoyed a near double digit growth during 2004-2008, decelerated with growth dropping from 7.7% in the first quarter to 5.3% in the last quarter with the annual growth rate estimated to be 6.5% as against 8.4% in the previous year. The investment to GDP ratio has touched a seven year low of 29.5%. Asian Development Bank's flagship annual economic publication, Asian\ Development outlook 2012, says the gross domestic product growth of their country should edge up to 7% in 2012 13 and to 7.5% the year there after. The Reserve Bank of India in its monetary policy for the current year has projected the growth at 7.3%.
Moving to inflation, the headline WPI which remained above 9% during April-November moderated to 6.9% in March 2012 which was consistent with RBI's indicative projection of 7%. Looking ahead, based on an assessment of the domestic demand-supply balance, global commodity prices and the likely demand scenario, the projection for current year end is placed at 6.5% by RBI.
Managing growth and price stability emerged as key concerns in India. The major risk to the growth and inflation projections stems from the outlook for global commodities prices especially crude. The crude price has started coming down and is at 18 months low. The upside risks to oil prices are limited from the demand side as most of economies of the world are struggling to grow or record negative growth. The geo-political tensions are a concern. The reduced level of growth accompanied by elevated fiscal deficit estimated at 5.9% in the Financial Year 2011 12 is expected to remain close to 5.1% for the current year. The gross domestic borrowing of Rs. 5100 billion is expected to rise to Rs. 5,700 billion in the current year. The higher level of state borrowing crowding out the private borrowers will certainly add pressure to inflation. The record trade deficit at $184.9 billion for the year 2011-12 with import outpacing exports by a huge margin is another area of concern. At this level, the trade deficit is about 10.6% of the GDP.
The rupee is under twin attacks of global uncertainty and domestic despair. On December 2011 the rupee was under pressure and touched an all time low of Rs. 54.30 against US dollar but bounced back to Rs. 48.60 in February 2012 to fall and breach the level of Rs. 54.00 again in May 2012. Since early 2011 the rupee has plunged by 20%. Rupee is one of the worst performing currencies in the world against US dollar and is presently trading close to Rs. 57.00 a US dollar.
The silver lining lies in the recent decline in commodity prices. As concerns around the global economy rise, commodity prices have fallen as well. So crude oil prices have slipped to their lowest levels in 18 months. This comes as a relief to a country like India which is grappling with a wide current account deficit. A large chunk of their import bill is on account of oil imports and even a marginal decrease in oil prices is positive for India. Unfortunately some of the benefits of lower oil prices are taken away by the weaker currency. Still lower commodity prices are perhaps the only silver lining in an otherwise worrying global scenario.
BANKING SCENARIO
The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seem to be on the strong fundamental base and well insulated from the financial turbulence emerging from the western economies.
The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture have favored the banking industry in India in the recent global financial turmoil.
With India experiencing a cycle of growth, the Rs. 64 trillion (US$ 1.25 trillion)-Indian Banking industry is poised to grow exponentially as the sector reflects the health of an economy. Indian banks have proved their mettle time and again as their regulations align with international standards, while they remain conventional in their approach. Reserve Bank of India (RBI), the banking regulator, continuously monitors the macroeconomic environment to formulate its policies and directions.
The Indian banking sector has come a long way from serving through traditional approach to the online genre. According to a survey by online survey company Ipsos, 57% of Indians prefer to use the Internet for banking and other financial holdings rather than shopping online. Things have been made much easier by eliminating hefty paper processes and introducing customer-friendly online banking facility with robust security features. Such changes have not only facilitated access to several banking products, but have also improved customer loyalty and money transfer mechanism.
Transactions in mobile banking are also on an upsurge as more than 2800000 transactions (worth about Rs. 196.12 Millions [US$ 38.37 million]) were conducted during February 2012. The figure indicated a 300 per cent increase in terms of volume and over 200 per cent increase in terms of value.
According to an IBA-FICCI-BCG report titled 'Being five star in productivity - road map for excellence in Indian banking', India's gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025. According to the report, the domestic banking industry is set for an exponential growth in coming years with its assets size poised to touch USD 28,500 billions by the turn of the 2025 from the asset size of USD 1,350 billions (2010)".
Currently, there are many challenges before Indian Banks such as improving capital adequacy requirement, managing non-performing assets, enhancing branch sales and services, improving organisation design; using innovative technology through new channels and working on lean operations. Apart from this, frequent changes in policy rates to maintain economic stability, various regulatory requirements, etc. are additional key concerns. Despite these concerns, the Indian banking industry will grow through leaps and bounds looking at the huge growth potential of Indian economy. The Indian economy will require additional banks and expansion of existing banks to meet its credit needs.
Recently, the RBI took a few important steps to make the Indian Banking industry more robust and healthy. This includes de-regulation of savings rate, guidelines for new banking licenses and implementation of Basel Norm III.
The banking sector witnessed a slowdown in deposit growth in fiscal 2011-12 primarily due to liquidity pressures and lower financial savings. While the credit off take was also lower than the estimated the subdued deposit growth has resulted in an increase in the interest rates at the shorter end of the yield curve.
Money supply (M3) growth, which was 17% at the beginning of the financial year 2011-12, moderated during the course of the year to about 13% by end March 2012, lower than the Reserve Bank's indicative growth of
15.5%.
During 2011-12, the modal deposit rates of major Scheduled Commercial Banks increased by 45 basis points and modal base rates by 125 basis points.
Liquidity conditions remained in a deficit mode throughout 2011-12. The situation aggravated from November
2011 and the liquidity deficit went beyond the regulator's comfort level of 1% of net demand and time liabilities of banks.
To ease the liquidity the Reserve Bank took steps to inject primary liquidity of a more durable nature. It conducted open market operations aggregating around Rs. 1.3 trillions between November 2011 and March 2012. The cash reserve ratio (CRR) was reduced by 125 basis points.
After raising the policy rate by 375 basis points during March 2010 - October 2011 to contain inflation and anchor inflation expectations, the Reserve Bank paused the rate hikes subsequent to its mid quarter review of December 2011 as growth inflation dynamics prompted the Reserve Bank to indicate that no further tightening was required and that future actions would be towards lowering the rates. As on 31.03.2012, the policy repo rate under the Liquidity Adjustment Facility remained at 8.50%.
The yield on the 10- year Government of India security yield closed firmly at 8.57% as on 31.03.2012.
RBI's policy stance for 2012-13 released on 17th April, 2012 has been guided by two major considerations namely slow growth and moderated inflation.
In the light of the above, the stance of monetary policy of the Reserve Bank of India was to
Adjust policy rates to levels consistent with the current growth moderation.
Guard against risks of demand - led inflationary pressures re - emerging and
Provide a greater liquidity cushion to the financial system.
Accordingly the repo rate under the LAF was reduced by 50 basis points to 8%.
The reverse repo rate under LAF and Marginal Standing Facility (MSF) rate were accordingly adjusted to 7% and 9% respectively while adjusting the Bank Rate to 9%
The Cash Reserve Ratio was retained at 4.75%.
The borrowing limit under MSF was raised from 1% to 2% of the Net Demand and Time Liabilities
The policy actions taken are expected to:
Stabilize growth around its current post crisis trend
Contain risks of inflation and inflation expectations re-surging and
Enhance the liquidity cushion available to the system
OUTLOOK
The growth of the economy has slowed down to 6.5% and the inflation numbers are offering no cheers. The RBI has indicated that the growth of deposit and advances of the banking system will be muted.
The equity market is stuttering but the bond market brought some cheers with reduction in bond yield. The bench mark 10 year paper carried a coupon of 8.15% indicating softening of yield if the inflation is tamed. China and fellow Asian emerging economies face slower economic growth in 2012-13 on weak external demand. The Indian economy is expected to grow at 7.3%. The bank has an ambitious plan of adding 100 more branches and 200 more ATMs aimed to garner a higher percentage of growth of over 25% which was achieved in last few years.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Claims against Bank not acknowledged as debts |
13.612 |
11.792 |
|
Liability for partly paid Investments |
0.000 |
19.908 |
|
Liability on account of outstanding Forward Exchange Contracts |
82831.884 |
33562.443 |
|
Guarantees given on behalf of constituents - In India |
7977.180 |
4927.593 |
|
- Outside India |
94.247 |
0.000 |
|
Acceptances, endorsements and other obligations |
6100.038 |
3100.463 |
AUDITED FINANCIAL
RESULTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2012
(Rs. In Millions)
|
|
Particulars |
Quarter ended |
Half Year ended |
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
||
|
|
|
Audited |
Reviewed |
Audited |
|
1. |
Interest earned (a+b+c+d) |
5315.383 |
5042.107 |
10357.490 |
|
a) Interest/Discount on Advances/Bills |
4385.929 |
4153.115 |
8539.044 |
|
|
b) Income on Investments |
917.862 |
881.638 |
1799.500 |
|
|
c) Interest on balances with RBI and other Inter Bank funds |
11.592 |
7.354 |
18.946 |
|
|
d) Others |
0.000 |
0.000 |
0.000 |
|
|
2. |
Other Income |
644.959 |
626.933 |
1271.892 |
|
3. |
Total Income ( 1 +
2 ) |
5960.342 |
5669.040 |
11629.382 |
|
4. |
Interest Expended |
3822.106 |
3662.700 |
7484.806 |
|
5. |
Operating Expenses (i) + (ii) |
855.215 |
864.833 |
1720.048 |
|
(i) Employees Cost |
287.087 |
382.315 |
669.402 |
|
|
(ii) Other Operating expenses |
568.128 |
482.518 |
1050.646 |
|
|
6. |
Total Expenditure
(4) + (5) excluding provisions and contingencies |
4677.321 |
4527.533 |
9204.854 |
|
7. |
Operating Profit
before provisions and contingencies |
1283.021 |
1141.507 |
2424.528 |
|
8. |
Provisions (other than tax) and contingencies |
278.786 |
177.614 |
456.400 |
|
9. |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
10. |
Profit / (Loss) from Ordinary Activities before tax (7)-(8)-(9) |
1004.235 |
963.893 |
1968.128 |
|
11. |
Tax Expenses |
200.000 |
225.000 |
425.000 |
|
12. |
Net Profit / (Loss)
from Ordinary Activities after tax (10) - (11) |
804.235 |
738.893 |
1543.128 |
|
13. |
Extra ordinary items (Net of Tax Expense) |
0.000 |
0.000 |
0.000 |
|
14. |
Net Profit / (Loss) for the period (12) + (13) |
804.235 |
738.893 |
1543.128 |
|
15. |
Paid up equity share Capital (Face value of Re.1/- each) |
409.952 |
408.213 |
409.952 |
|
16. |
Reserves excluding revaluation reserves |
|
|
|
|
17. |
Analytical ratios |
|
|
|
|
i) % of shares held by Government of India |
Nil |
Nil |
Nil |
|
|
ii) Capital Adequacy Ratio (%) - Basel II |
13.26% |
12.01% |
13.26% |
|
|
iii) Earning Per Share (EPS) |
|
|
|
|
|
|
Basic EPS - before/after extra ordinary items (Not annualised) (Rs.) |
1.97 |
1.81 |
3.78 |
|
|
Diluted EPS - before/after extra ordinary items (Not annualised) (Rs.) |
1.95 |
1.79 |
3.74 |
|
iv) NPA Ratios |
|
|
|
|
|
(a) Gross NPA |
16607.31 |
13716.02 |
16607.31 |
|
|
(b) Net NPA |
8066.74 |
6360.55 |
8066.74 |
|
|
(c) % of Gross NPA |
1.24 |
1.07 |
1.24 |
|
|
(d) % of Net NPA |
0.60 |
0.50 |
0.60 |
|
|
v) Return on Assets - Annualised |
1.62% |
1.57% |
1.60% |
|
|
18. |
Public Shareholding |
|
|
|
|
- No. of shares |
409951886 |
408212649 |
409951886 |
|
|
- % of shareholding |
100% |
100% |
100% |
|
|
19. |
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of Shares |
- |
- |
- |
|
|
|
- % of shares (as a % of the total shareholding |
|
|
|
|
|
of promoter and promoter group) |
- |
- |
- |
|
|
- % of shares (as a % of the total share capital of |
|
|
|
|
|
the company) |
- |
- |
- |
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
- |
- |
- |
|
|
|
- % of shares (as a % of the total shareholding |
|
|
|
|
|
of promoter and promoter group) |
- |
- |
- |
|
|
- % of shares (as a % of the total share capital of |
|
|
|
|
|
the company) |
- |
- |
- |
|
Summarized Balance
Sheet |
(Rs. In Millions) |
|
|
30.09.2012 |
|
Capital and Liabilities |
(Audited) |
|
|
|
|
Capital |
409.952 |
|
Reserves & Surplus |
13584.887 |
|
Deposits |
176885.910 |
|
Borrowings |
4966.481 |
|
Other Liabilities & Provisions |
4663.526 |
|
Total |
200510.756 |
|
Assets |
|
|
Cash & Balance with RBI |
10447.100 |
|
Balances with Banks and Money at Call |
3837.665 |
|
Investments |
47316.723 |
|
Advances |
133300.436 |
|
Fixed Assets |
1139.919 |
|
Others Assets |
4468.913 |
|
Total |
200510.756 |
Notes:
- The above audited financial results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on 03.11.2012.
- The working results for the half year ended 30th September 2012 have been arrived at after making provisions for Standard Assets, Non Performing Assets, Depreciation on Investments, Employee benefits, taxes and other usual and necessary provisions.
- During the quarter ended 30.09.2012 the bank has allotted 1739237 fully paid shares to some of its employees pursuant to the exercise of stock options granted to them.
- Provision Coverage Ratio as at 30th September 2012 stands at 70.77%.
- The figures of previous year / period have been regrouped, wherever necessary to conform to the classification in the current period.
- There has been no material change in the accounting policies adopted during the year as compared to those followed in the previous year.
- Number of investor complaints pending at the beginning of the quarter- Nil. Received during the period - Nil : Disposed of during the period - Nil : Pending complaints as on 30.09.2012 : Nil
SEGMENTWISE RESULTS
(Rs. In Millions)
|
Particulars |
Quarter ended |
Half Year ended |
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Audited |
Reviewed |
Audited |
|
Segment Revenue |
|
|
|
|
a) Treasury |
1011.200 |
957.400 |
1968.600 |
|
b) Corporate / wholesale banking |
1676.200 |
1736.400 |
3412.600 |
|
c) Retail Banking |
3243.000 |
2951.200 |
6194.200 |
|
d) Other Banking Operations |
29.900 |
24.000 |
53.900 |
|
Total |
5960.300 |
5669.000 |
11629.300 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
a) Treasury |
246.400 |
160.800 |
407.200 |
|
b) Corporate / wholesale banking |
546.000 |
457.000 |
1003.000 |
|
c) Retail Banking |
465.100 |
504.900 |
970.000 |
|
d) Other Banking Operations |
25.500 |
18.800 |
44.300 |
|
Total |
1283.000 |
1141.500 |
2424.500 |
|
|
|
|
|
|
Operating Profit |
1283.000 |
1141.500 |
2424.500 |
|
|
|
|
|
|
Other Provisions
& Contingencies |
278.800 |
177.600 |
456.400 |
|
|
|
|
|
|
Profit Before Tax |
1004.200 |
963.900 |
1968.100 |
|
|
|
|
|
|
Taxes including Deferred Tax |
200.000 |
225.000 |
425.000 |
|
|
|
|
|
|
Net Profit |
804.200 |
738.900 |
1543.100 |
|
|
|
|
|
|
Segmental Assets: |
|
|
|
|
a) Treasury |
55175.100 |
55237.200 |
55175.100 |
|
b) Corporate / wholesale banking |
48050.700 |
49683.200 |
48050.700 |
|
c) Retail Banking |
93001.600 |
84011.500 |
93001.600 |
|
d) Unallocated |
4283.400 |
3925.700 |
4283.400 |
|
Total |
200510.800 |
192857.600 |
200510.800 |
|
|
|
|
|
|
Segmental Liabilities: |
|
|
|
|
a) Treasury |
54703.100 |
54127.800 |
54703.100 |
|
b) Corporate / wholesale banking |
44066.900 |
45664.000 |
44066.900 |
|
c) Retail Banking |
85291.100 |
77215.100 |
85291.100 |
|
d) Unallocated |
2454.900 |
2680.700 |
2454.900 |
|
Total |
186516.000 |
179687.600 |
186516.000 |
|
|
|
|
|
|
Capital Employed: |
|
|
|
|
Segment Assets - Segment Liabilities |
|
|
|
|
a) Treasury |
472.000 |
1109.400 |
472.000 |
|
b) Corporate / wholesale banking |
3983.800 |
4019.200 |
3983.800 |
|
c) Retail Banking |
7710.500 |
6796.400 |
7710.500 |
|
d) Unallocated |
1828.500 |
1245.000 |
1828.500 |
|
Total |
13994.800 |
13170.000 |
13994.800 |
AS PER WEBSITE DETAILS:
PROFILE
The bank, 'The Kumbakonam Bank Limited' as it was then called was incorporated as a limited company on 31st October, 1904. The first Memorandum of Association was signed by twenty devoted and prominent citizens of Kumbakonam including Sarvashri R. Santhanam Iyer, S. Krishna Iyer, V. Krishnaswami Iyengar and T.S. Raghavachariar. T.S. Raghavachariar was the First Agent of the Bank. In 1908, he was succeeded by Mr. R. Santhanam Iyer who became the Secretary of the bank under the amended Articles of Association which created the office of a Secretary to be in charge of the Bank's Management in the place of the Agent, which post he held till his death in 1926. He was succeeded by Mr. S. Mahalinga Iyer as Secretary who subsequently became the First full-time Managing Director of the bank in tune with the amendment of Articles in 1929. He held the position of Secretary from 1926 to 1929 and that of Managing Director from 1929 to 1963.
The bank in the beginning preferred the role of a regional bank and slowly but steadily built for itself a place in the Delta District Thanjavur. The first Branch of the Bank was opened at Mannargudi on 24th January 1930. Thereafter, branches were opened at Nagapattinam, Sannanallur, Ayyampet, Tirukattupalli, Tiruvarur, Manapparai, Mayuram and Porayar within a span of twenty five years. The Bank was included in the Second Schedule of Reserve Bank of India Act, 1934, on 22nd March 1945.
The Bank celebrated its Golden Jubilee on 14th November, 1954 at Kumbakonam under the Presidentship of Mr..C.R.Srinivasan, Editor, 'Swadesmitran' and Director, Reserve Bank of India.
In 1957, the bank took over the assets and liabilities of the Common Wealth Bank Limited and in the process annexed to it the five Branches of Common Wealth Bank Limited at Aduthurai, Kodavasal, Valangaiman, Jayankondacholopuram and Ariyalur.
In 1963, Mr. R. A. Venkataramani Iyer took charge as the Chairman of the Bank which position he held up to 1969.
Press Release
EXPECT FY13 LOAN
GROWTH TO BE AROUND 25%: CITY UNION BANK
December 17, 2012,
09.02 PM IST
Private sector lender City Union Bank is looking to raise Rs 2580.000 Millions through the rights issue route. The issue, which would offer a total of 12.89 crore equity shares opened today and will close on December 31, 2012.
Speaking to CNBC-TV18, N Kamakodi, MD and CEO, City Union, said that the total application money is expected to be around Rs 1285.00 Millions. For financial year ending March 31, 2013 the company's capital adequacy ratio would be between 14-14.5 percent.
Further, the company may require another Rs 9000.000-10000.000 Millions capital infusion over the next three-four years. "We currently have loan book size of Rs 120000.000 to Rs 130000.000 Millions and it is expected to increase to about Rs 300000.000 Millions by 2015-2016, so we need money to support that," he elaborated.
City Union Bank is expected to clock a loan growth of around 25 percent in FY13. Meanwhile, Kamakodi is not very hopeful that the RBI will cut rates tomorrow.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
|
1 |
Rs.82.56 |
|
Euro |
1 |
Rs.70.10 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYN |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
71 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.