MIRA INFORM REPORT

Report Date :

15.05.2013

IDENTIFICATION DETAILS

Name :	EXPORT IMPORT BANK OF INDIA
Registered Office :	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Year of Establishment :	1982
Capital Investment / Paid-up Capital :	Rs.22999.919 Millions
Legal Form :	Bank
Line of Business :	Providing Finance to the Company for Export and Import Activities.
No. of Employees :	200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Aa (71)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	Large
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is wholly owned by “Government of India” It is a well established Export Finance Institution having an excellent track record. General financial position is good. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. Subject 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

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	CRISIL
Rating	AAA [Long Term]
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	13.03.2013

Rating Agency Name	CRISIL
Rating	A1+ [Commercial Paper Programme]
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	13.03.2013

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 / Corporate Office :	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, Maharashtra, India
Tel. No.:	91-22-22172600
Fax No.:	91-22-22182572
E-Mail :	cag@eximbankindia.in
Website :	http://www.eximbankindia.in
Domestic Offices :	Located At : Ahmedabad Bangalore Chandigarh Chennai Guwahati Hyderabad Kolkata Mumbai New Delhi Pune
Overseas Offices :	Located At : Addis Ababa Dakar Dubai Durban London Singapore Washington D.C. Johannesburg

DIRECTORS

AS ON 31.03.2012

Name :	Mr. T.C.A. Ranganathan
Designation :	Chairman & Managing Director [Export Import Bank of India ]
Name :	Mr. R. M. Malla
Designation :	Chairman & Managing Director [IDBI Bank Limited]
Name :	Mr. Pratip Chaudhary
Designation :	Chairman [State Bank of India]
Name :	Mr. N. Shankar
Designation :	Chairman cum Managing Director [Export Credit Guarantee Corporation of India Limited]
Name :	Mr. G. Padmanabhan
Designation :	Executive Director [Reserve Bank of India]
Name :	Mr. S.S. Mundra
Designation :	Chairman and Managing Director [Bank of Baroda]
Name :	Mrs. V.R. Iyer
Designation :	Chairperson and Managing Director [Bank of India]
Name :	Dr. Biswajit Dhar
Designation :	Director General [Research and Information System For Developing Countries]
Name :	Mr. David Rasquinha
Designation :	Executive Director

KEY EXECUTIVES

Name :	Dr. Raghuram G. Rajan
Designation :	Chief Economic Adviser [Ministry of Finance]
Name :	Mr. Rajiv Takru
Designation :	Secretary [Department of Financial Services Ministry of Finance]
Name :	Mr. S.R. Rao
Designation :	Secretary [Ministry of Commerce and Industry, Department of Commerce]
Name :	Mr. Pinak R. Chakravarty
Designation :	Secretary (ER) [Ministry of External Affairs]
Name :	Mr. Saurabh Chandra, IAS
Designation :	Secretary [Government of India, Ministry of Commerce and Industry]
Name :	Prof. A.M. Bhattcharjea
Designation :	Professor [Economics, Delhi School of Economics]
Name :	Mr. C.P. Ravindranath Menon
Designation :	Legal
Name :	Mr. Mukul Sarkar
Designation :	Corporate Banking
Name :	Mr. Samuel Joseph
Designation :	Corporate banking/ SME/ Agri Business
Name :	Mr. David Sinate
Designation :	Research and Planning / EMS
Name :	Mr. Prahalathan Iyer
Designation :	Research and Planning/ Export Services
Name :	Ms. Sunita Sindwani
Designation :	System and Processes
Name :	Ms. Sangeeta Sharma
Designation :	Risk Analysis and Credit Management
Name :	Mr. Nadeem Panjetan
Designation :	Human Resource Management / Administration / IT Infrastructure
Name :	Ms. Daya Chandrahas
Designation :	Project Finance
Name :	Mr. S. Srinivas
Designation :	Corporate Affairs
Name :	Ms. Madhulika Verma
Designation :	Internal Audit Group
Name :	Ms. Geeta Poojary
Designation :	Lines of Credit
Name :	Ms. Rima Marphatia
Designation :	Corporate Finance Group
Name :	Mr. Sudatta Mandal
Designation :	Member
Name :	Ms. Harsha Bangari
Designation :	Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

BUSINESS DETAILS

Line of Business :

Providing Finance to the Company for Export and Import Activities.

GENERAL INFORMATION

No. of Employees :

200 [Approximately]

Bankers :

Reserve Bank of India

Facilities :

Borrowings	31.03.2012	31.03.2011
	Rs. in Millions
From Reserve Bank of India :
Against Trustee Securities	0.000	0.000
Against Bills of Exchange	12750.000	0.000
From Other Sources :	0	0
(a) In India	26788.597	47221.089
(b) Outside India	144229.540	120246.525
TOTAL	183768.137	167467.614

Banking Relations :	--
Auditors :
Name :	Ummed Jain and Company Chartered Accountant
Joint Venture :	Global Procurement Consultants Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital : Rs.100000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.22999.919 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
LIABILITIES
1] Share Capital	22999.919	19999.919	16999.919
2] Reserves & Surplus	37002.682	32301.675	28315.630
3] Profit & Loss Account	2050.000	1850.000	1500.300
4] Notes, Bonds & Debentures	331211.593	272039.838	242893.652
5] Bills Payable	0.000	0.000	0.000
6] Deposits	31566.107	32410.010	29382.681
7] Borrowings	183768.137	167467.614	132810.932
8]Current Liabilities & Provisions for contingencies	24435.980	19188.062	16853.129
9] Other Liabilities	3695.455	2250.413	1958.576
TOTAL	636729.873	547507.531	470714.819
ASSETS
1] Cash & Bank Balances	38296.747	33341.610	30753.682
2] Investments	32117.235	28255.649	23610.174
3] Loans & Advances	535897.824	447968.000	386106.825
4] Bills of Exchange and Promissory Notes Discounted/Rediscounted	3000.000	8590.000	4250.000
5] Fixed Assets	909.846	859.905	907.640
6] Other Assets	26508.221	28492.367	25086.499
TOTAL	636729.873	547507.531	470714.819

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
INCOME
Interest and Discount	42018.963	33181.044	28560.766
Exchange, Commission, Brokerage and Fees	2030.913	1360.847	639.824
Other Income	1467.881	957.180	682.110
TOTAL	45517.757	35499.071	29882.700
Profit brought down	10126.347	8676.959	7724.025
Excess Income/Interest tax provision of earlier years written back	0.000	0.000	0.000
	10126.347	8676.959	7724.025
EXPENSES
Interest	29370.792	23247.423	20713.240
Credit Insurance, fees and charges	400.649	262.892	231.698
Staff Salaries, Allowances etc. and Terminal Benefits	237.406	265.935	176.241
Directors’ and Committee Members’ Fees and Expenses	0.000	0.000	0.050
Audit Fees	0.455	0.455	0.455
Rent, Taxes, Electricity and Insurance Premia	95.762	76.116	76.314
Communication expenses	18.734	20.382	20.677
Legal Expenses	8.445	22.509	19.428
Other Expenses	332.096	291.096	627.018
Depreciation	127.517	94.743	77.644
Provision for loan losses/contingencies depreciation on investments	4799.553	2540.561	215.910
Profit carried down	10126.347	8676.959	7724.025
TOTAL	45517.756	35499.071	29882.700
Provision for Income Tax [including Deferred tax credit]	3375.341	2840.914	2589.029
Balance of profit transferred to Balance Sheet	6751.007	5836.045	5134.996
	10126.347	8676.959	7724.025

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	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

REVIEW OF OPERATIONS:

Loan disbursements during FY 2011-12 were Rs. 370.45 billion as against Rs. 344.23 billion during 2010-11, while loan repayments during FY 2011-12 amounted to Rs. 314.22 billion, as against Rs. 274.46 billion in FY 2010-11. Gross loan assets as on March 31, 2012 were Rs. 545.30 billion, registering an increase of 18 per cent over the previous year. The Bank approved loans aggregating to Rs. 444.12 billion under various lending programmes during FY 2011-12 as against Rs. 477.98 billion during FY 2010-11. During the year, the Bank sanctioned guarantees aggregating to Rs. 27.55 billion as against Rs. 32.16 billion in 2010-11. Guarantees issued during 2011-12 amounted to Rs. 13.61 billion as against Rs. 11.53 billion in 2010-11. Guarantees in the books of the Bank as on March 31, 2012 were Rs. 32.41 billion as against Rs. 30.56 billion as on March 31, 2011 and Letters of Credit as on March 31, 2012 amounted to Rs. 18.29 billion as against Rs. 12.06 billion as on March 31, 2011. Rupee loans and advances accounted for 45 per cent of the total loan assets as on March 31, 2012 while the balance 55 per cent were in foreign currency. Short-term loans accounted for 18 per cent of the total loans and advances as on March 31, 2012.

Total borrowings of the Bank at Rs. 546.55 billion as on March 31, 2012, were higher by 16 per cent compared to total borrowings of Rs. 471.92 billion as on March 31, 2011.

The Bank registered profit before tax of Rs. 10.13 billion on account of General Fund during 2011-12 as against a profit of Rs. 8.68 billion for the year 2010-11. After providing for income tax of Rs. 3.38 billion, profit after tax amounted to Rs. 6.75 billion during 2011-12 as against Rs. 5.84 billion during 2010-11. Out of this profit, an amount of Rs. 3.49 billion is transferred to Reserve Fund. In addition, the Bank has transferred Rs. 0.11 billion to Sinking Fund and Rs. 1.10 billion to Special Reserve u/s 36(1)(viii) of the Income Tax Act, 1961. The balance of Rs. 2.05 billion will be transferred to Government of India (GOI) as provided in the Exim Bank Act.

Profit before tax of the Export Development Fund during 2011-12 was Rs. 43.01 million as against Rs. 28.47 million during 2010-11. After providing for tax of Rs. 13.95 million, the post tax profit amounted to Rs. 29.06 million as against Rs. 18.97 million during 2010-11. The profit of Rs. 29.06 million is carried forward to next year.

BUSINESS OPERATIONS:

Review of Bank’s business operations is presented below under the following heads:

• Projects, Products and Services Exports

• Building Export Competitiveness and Financing Overseas Investments

• Joint Venture

• New Initiatives

• Financial Performance

• Information and Advisory Services

• Institutional Linkages

• Information Technology

• Research and Analysis

• Human Resources Management

• Progress in Implementation of the Official Language Policy

• Representation of Scheduled Castes, Scheduled Tribes and Other Backward Classes.

JOINT VENTURE:

The Bank’s joint venture, Global Procurement Consultants Limited (GPCL), has clocked another year of satisfactory performance. The company recorded a turnover of Rs. 22.200 millions in 2011-12 with a pre-tax profit of Rs. 5.100 millions. GPCL is a joint venture between Exim Bank and 11 other reputed private and public sector companies with expertise in diverse fields. GPCL provides a range of product related advisory services, with particular focus on procurement and capacity building, primarily for projects funded by multilateral agencies in various developing countries.

FINANCIAL PERFORMANCE:

RESOURCES:

During the year, the Bank received capital of Rs. 3 billion from the Government of India. As at March 31, 2012, the Bank’s total resources including paid-up capital of Rs. 23 billion and reserves of Rs. 37 billion, aggregated to Rs. 606.55 billion. Exim Bank’s resource base includes bonds, certificates of deposit, commercial paper, term deposits, term loans and foreign currency deposits/borrowings/long-term swaps. The Bank’s domestic debt instruments continued to enjoy the highest rating viz. ‘AAA’ rating from the rating agencies, CRISIL and ICRA. During the year, the Bank raised borrowings of varying maturities aggregating to Rs. 276.30 billion comprising rupee resources of Rs. 142.97 billion and foreign currency resources of US$ 2.62 billion equivalent. Foreign currency resources of US$ 1.65 billion equivalent were raised through bonds, bilateral/club/syndicated loans and US$ 0.97 billion by way of Buy-Sell swaps/onshore deposits. As on March 31, 2012, the Bank had a pool of foreign currency resources equivalent to US$ 6.16 billion and outstanding Rupee borrowings including bonds and commercial paper of Rs. 293.87 billion. Market borrowings as on March 31, 2012 constituted 97 per cent of the total borrowings and 88 per cent of the total resources of the Bank.

CAPITAL ADEQUACY:

The Capital to Risk Assets Ratio (CRAR) was 16.44 per cent as on March 31, 2012, as compared to 17.04 per cent as on March 31, 2011, as against a minimum 9 per cent norm stipulated by RBI. The Debt-Equity Ratio as on

March 31, 2012 was 9.02:1 as compared to 8.92:1 as on March 31, 2011.

AWARD FOR EXCELLENCE:

The Bank had instituted the CII-Exim Bank Award for Business Excellence’ in 1994 for best Total Quality Management practices adopted by an Indian company. The Award is based on the European Foundation for Quality Management (EFQM) model which has undergone revisions recently and has been published as EFQM Excellence Model 2010.

The annual award is a prestigious and befitting industry recognition given to a company after being assessed through a transparent and rigorous methodology based on the EFQM Model. In 2011, there were 60 companies that participated for the Award. Though there were no winners for the CII-Exim Bank Award for Business Excellence for 2011, 45 large business organizations and their operating units were commended by the jury for significant achievement (12 companies), and strong commitment to excel (33 companies), in their journey towards business excellence. Recognizing good management practices among organizations, 2 large business organizations, viz. Godrej and Boyce Mfg. Co. Limited (Appliances Division), and Bharat Electronics Limited (Bangalore Unit) were commended by the jury for people management and resource management respectively. Acknowledging the growing significance of Small and Medium Businesses (SMBs) in the growth of Indian industry and economy, the assessment process has been simplified to promote the adoption of Excellence framework among the SMBs and to derive benefits to enhance their competitiveness. Two SMBs (Moonlight Engineering Co. and PSG Institute of Management) were commended for significant achievement and 4 SMBs (Humming Bird Corporate Travel and Stay Private Limited, Satish Injecto-Plast Private Limited, Shreekripa Enterprises, and Wendt (India) Limited) were commended for strong commitment to excel.

EXIM BANK GETS ADFIAP AWARD:

In 2012, the Bank was conferred the “Trade Development Award” by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) for its Buyer’s Credit Programme under the National Export Insurance Account (NEIA) for Financing Project Exports from India. The 2012 Award is in recognition of Exim Bank’s “Buyers Credit Programme”, a unique financing mechanism under which the Bank finances and facilitates project exports from India by way of extending credit facility to overseas sovereign governments and government owned entities for import of goods and services from India on deferred credit terms.

GLOBAL ECONOMY:

Global recessionary trends had significant fallout in 2011, as global economic activity grew by 3.9 per cent as against 5.3 per cent in 2010. According to the International Monetary Fund (IMF)’s World Economic Outlook (WEO), April 2012, the global economy has suffered a setback in 2011 due to deepening of the Eurozone crisis in the fourth quarter of 2011. Growth in advanced economies moderated to 1.6 per cent in 2011 as against 3.2 per cent in 2010, while growth in emerging and developing economies eased to 6.2 per cent in 2011 as compared to 7.5 per cent in the previous year.

Reacceleration of activity during the course of 2012 is expected to push up global growth in 2013. Economic activity in emerging and developing economies is forecast to grow at a modest pace of 5.7 per cent in 2012 and 6 per cent in 2013, because of the worsening external environment and weakening of internal demand, while advanced economies are forecast to grow at 1.4 per cent in 2012 and 2 per cent in 2013.

The financial sectors of most advanced economies are still vulnerable to shocks mainly due to the delay of recovery in the US economy, financial turbulence in the Eurozone, and major sell-off of risky assets in global markets. Against this backdrop, the global economy faced further shocks as a devastating earthquake and tsunami hit Japan, and some oil producing countries in the Middle East and North Africa (MENA) region faced unrests.

The US economy grew by 1.7 per cent in 2011, as compared to 3 per cent in 2010, as business confidence in the US economy fell and market volatility increased significantly with the downgrade in the US sovereign credit rating.

Supply disruptions, from Japan and the MENA region, also had adverse impact on the US economy. Prospects for 2012 and 2013 are expected to improve, with the US economy projected to grow by 2.1 per cent and 2.4 per cent, respectively, partly reflecting a modest increase in employment.

Growth in Advanced Europe moderated to 1.4 per cent in 2011 as compared to 1.8 per cent in 2010, mainly due to increased public deficits and debt and mounting market tensions in the Eurozone. The Eurozone also grew at similar pace. Economic performance across Euro area in 2011 was widely varied. In 2011, growth in Germany was a little above the pre-crisis level at 3.1 per cent, but France and Italy had a subdued growth at 1.7 per cent and 0.4 per cent, respectively. Greece and Portugal witnessed a contraction in output since they continued to be engulfed in deep sovereign debt crises. In 2012, the Advanced Europe region is forecast to contract by 0.1 per cent, as the crisis is expected to further deepen and affect the less impacted economies in the region.

In the Newly Industrialised Asian Economies, growth slowed down to 4 per cent in 2011, as against 8.5 per cent in 2010. Output of the region had positive contribution from net exports mainly due to limited appreciation of real effective exchange rates. Growth is forecast to moderate further at 3.4 per cent in 2012 and 4.2 per cent in 2013.

Japan’s economy contracted by 0.7 per cent in 2011, owing to supply constraints from the earthquake and tsunami in March 2011. Japan’s economy is forecast to recover with growth of 2 per cent in 2012 and 1.7 per cent in 2013, supported by reconstruction activity.

Developing Asia continued to record strong growth and remains the fastest growing region in the world. However, real GDP growth of the region moderated to 7.8 per cent in 2011 from 9.7 per cent recorded in the previous year, and is expected to moderate further to 7.3 per cent in 2013 mainly reflecting emerging capacity constraints and weaker external demand. China and India were the main growth drivers of the region. China’s real GDP growth moderated to 9.2 per cent in 2011 as compared to 10.4 per cent in 2010, but continued to remain the fastest growing economy in the region. The moderation in growth in China was mainly due to policy tightening measures and a fall in net external demand. Investment growth slowed with unwinding of the fiscal stimulus, but continued to be a principal contributor to China’s growth. China’s economic growth is expected to ease further at 8.2 per cent in 2012.

The Latin America and Caribbean (LAC) region grew by 4.5 per cent in 2011, as compared to 6.2 per cent in 2010. Growth was mainly driven by the region’s commodity exporters, but the slack was mainly due to the easing of domestic demand growth in response to less accommodative macroeconomic policies, and weakening external demand. Argentina, Chile, Peru, and Uruguay, the commodity exporters of the region, grew at an average level of above 6 per cent in 2011. Real GDP growth of Brazil, the largest economy in the region, declined to 2.7 per cent in 2011, as against 7.5 per cent growth recorded in 2010, owing to the monetary policy tightening and weakening external demand. Mexico’s real GDP increased by 4 per cent in 2011, as compared to 5.5 per cent in the preceding year, a result of the sluggish U.S. recovery. Growth in the Central American region in 2011 was constrained by a sluggish recovery in remittances and tourism, and challenges of high public debt in most Caribbean countries. Growth in the LAC region is expected to ease further at 3.7 per cent in 2012, before picking up to 4.1 per cent in 2013.

Real GDP of the Sub-Saharan Africa region grew at 5.1 per cent in 2011, as against the 5.3 per cent growth recorded in the preceding year, underpinned by a robust private and public consumption. Though growth in the region was not significantly affected by the global slowdown, the downside risks in the region have increased with greater global integration of the middle income economies (MICs). Average growth for the low-income countries (LIC) group was at 5.8 per cent in 2011, on the back of strong domestic demand and accelerating exports. South African economy grew by 3.1 per cent in 2011 as compared to 2.9 per cent in 2010, supported by rise in private consumption and investment, resulting from a low interest rate environment and a return to the issuance and renewal of mining licenses.

Commodity price movements and social unrest hampered the growth in the Middle East and North African (MENA) region, with real GDP growing at 3.5 per cent in 2011, as compared to 4.9 per cent recorded in the preceding year. Growth was mainly driven by oil-exporting economies, such as Qatar, Iraq, and Saudi Arabia, while growth of oil-importing economies in the region, mainly Egypt, Lebanon, and Tunisia, was subdued. The region’s economy is projected to expand further by 4.2 per cent in 2012 and moderate to 3.7 per cent in 2013.

Growth in Commonwealth of Independent States (CIS) in 2011 was supported by high commodity prices. Real GDP of the region grew by 4.9 per cent in 2011, as compared to 4.8 per cent in 2010, and is forecast to grow by

4.2 per cent in 2012. The Russian economy maintained a growth rate of 4.3 per cent in 2011, underpinned by the high value of exports from the CIS region. The economy of rest of the CIS region grew by 6.2 per cent in 2011 and is forecast to moderate at 4.6 per cent in 2012.

Average growth in Central and Eastern Europe region strengthened at 5.3 per cent in 2011 as compared to 4.5 per cent in 2010, mainly driven by the energy exporting economies.

INDIAN ECONOMY:

After witnessing robust real GDP growth of 8.4 per cent in two consecutive years, the Indian economy had witnessed a lower growth of 6.5 per cent in 2011-12, reflecting lower global demand, domestic policy uncertainties and the cumulative impact of monetary tightening. As evident from the good performance in services sector, moderation in real GDP growth in 2011-12 can be mainly attributed to lower agricultural output and weakening industrial growth.

AGRICULTURE:

Agriculture and allied activities registered a 2.8 per cent growth in 2011-12, as against 7 per cent registered in the previous year, with the slowdown mainly attributed to base effect and structural impediments. With this growth, the average annual growth in agriculture and allied sectors realised during the Eleventh Plan Period was 3.3 per cent, lower than the targeted growth rate of 4 per cent. As per the third advance estimates for 2011-12, production of food grains is estimated higher at 252.6 million tonnes, as against the target of 245 million tonnes, mainly due to increased rice production in major rice producing states, namely, Assam, Bihar, West Bengal, Jharkhand and Uttar Pradesh. The share of agriculture and allied activities in GDP in 2011-12 stood lower at 14 per cent, as compared to a share of 14.5 per cent in 2010-11.

INDUSTRY:

According to the Central Statistical Organisation (CSO), industrial growth slowed down sharply during 2011-12, to 3.4 per cent, from 7.2 per cent in 2010-11, led by contraction in mining, and poor performance of the manufacturing sector. Mining and quarrying sub-sector recorded a negative growth of 0.9 per cent in 2011-12, from 5 per cent growth recorded in the previous year. Both construction and manufacturing sub-sectors witnessed slowdown in their growth rates in 2011-12, to 5.3 per cent and 2.5 per cent, respectively, as against growth of 8 per cent and 7.6 per cent, respectively, witnessed in 2010-11. Only electricity, gas and water supply sub-sector picked up sharply at a higher growth of 7.9 per cent in 2011-12, as compared to a growth of 3 per cent in the previous year. The share of industry in GDP in 2011-12 stood marginally lower at 27 per cent, as compared to a share of 27.8 per cent in 2010-11.

The Index of Industrial Production (IIP) growth during 2011-12 moderated significantly at 2.8 per cent, as compared to 8.2 per cent growth recorded during 2010-11, mainly due to deceleration in growth of mining and manufacturing sectors. Mining sector contracted by 1.9 per cent during 2011-12 as compared to 5.2 per cent growth during 2010-11. Manufacturing sector growth slowed down to 3 per cent during 2011-12 as compared to

8.9 per cent growth during 2010-11. Only electricity sector registered a higher growth of 8.2 per cent during 2011-12, as compared to 5.5 per cent growth recorded during the previous year. As per the use-based classification, the growth of basic goods moderated to 5.5 per cent during 2011-12 as compared to 6 per cent growth witnessed during the previous year. Growth of capital goods has recorded a sharp decline of 4 per cent during 2011-12, as compared to a growth of 14.8 per cent witnessed during 2010-11. Growth in intermediate goods also declined by 0.9 per cent during 2011-12, as compared to a growth of 7.4 per cent witnessed during 2010-11. Growth in consumer goods also moderated to 4.4 per cent during 2011-12, compared to 8.5 per cent growth recorded during 2010-11, mainly due to weak demand for consumer durables. Growth in consumer durables segment slowed down from 14.2 per cent during 2010-11 to 2.6 per cent during 2011-12 while growth in consumer nondurables increased from 4.2 per cent in 2010-11 to 5.9 per cent during 2011-12.

Of the twenty two industrial sub-groups in the manufacturing sector, sixteen sub-sectors registered positive growth rates during 2011-12. These sixteen sub-sectors were publishing, printing and reproduction of recorded media (29.6 per cent); food products and beverages (15 per cent); other transport equipments (12 per cent); fabricated metal products, except machinery and equipments (11.1 per cent); medical, precision and optical instruments, watches and clocks (10.9 per cent); motor vehicles, trailers and semi-trailers (10.8 per cent); basic metals (8.7 per cent); tobacco products (5.7 per cent); other non-metallic mineral products (4.8 per cent); paper and paper products (4.7 per cent); radio, TV and communication equipment and apparatus (4.2 per cent); luggage, handbags, saddlery, harness and footwear, tanning and dressing of leather products (3.6 per cent); coke, refined petroleum products and nuclear fuel (3.2 per cent); wood and products of wood and cork except furniture, articles of straw and plating materials (1.5 per cent) office, accounting and computing machinery (1.3 per cent) and rubber and plastic products (0.2 per cent). The remaining six sub-sectors which recorded decline in their growth rates were electrical machinery and apparatus; wearing apparel, dressing and dyeing of fur; machinery and equipment; furniture; textiles; and chemicals and chemical products.

SERVICES:

Services sector witnessed a growth of 8.9 per cent in 2011-12 as against 9.3 per cent in the previous year, reflecting acceleration in the growth rates of community, social, and personal services from 4.5 per cent in 2010-11 to 5.8 per cent in 2011-12. Growth in GDP originating from ‘trade, hotels, transport and communication’ and ‘financing, insurance, real estate and business services’ sub-sector continued to remain strong at 9.9 per cent and

9.6 per cent respectively during 2011-12, though lower than 11.1 per cent and 10.4 per cent growth recorded in 2010-11.

INFRASTRUCTURE:

The eight infrastructure and core industries, viz. coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity, registered an average growth rate of 4.4 per cent during 2011-12 as compared to a growth of 6.6 per cent during the previous year. Lower growth rate in 2011-12 was mainly due to negative growth recorded by natural gas sector, and significant slowdown in crude oil and steel sectors. Crude oil witnessed a marginal growth of 1 per cent during 2011-12 compared to a growth of 11.9 per cent recorded during 2010-11. Steel production slowed down to 7 per cent in 2011-12 compared to a growth of 13.2 per cent witnessed during 2010-11. Natural gas production contracted by 8.9 per cent during 2011-12 as compared to a growth of 10 per cent witnessed during 2010-11.

Growth has been especially robust in the two sectors, namely, electricity and cement. Electricity generation grew by 8.1 per cent during 2011-12, as compared to 5.6 per cent growth during 2010-11. Cement production registered a growth of 6.7 per cent during 2011-12 compared to 4.5 per cent growth during 2010-11. Petroleum refinery production grew by 3.2 per cent during 2011-12 compared to a growth of 3 per cent during 2010-11. Production of coal recovered in 2011-12, registering a growth of 1.2 per cent from a negative growth of 0.2 per cent witnessed during 2010-11. Fertilisers witnessed a moderate growth of 0.4 per cent during 2011-12, as compared to a zero growth recorded in 2010-11.

OUTLOOK FOR SELECT SECTORS:

AUTOMOTIVES:

The automotive industry (automobiles and auto components) in India has come of age and is today one of the key industries in the country with strong backward and forward linkages. India today boasts of the sixth largest automobile industry after China, the US, Germany, Japan and Brazil. The performance of the industry in recent years has been robust and is likely to remain buoyant, riding on the back of favourable demand and supply side factors. The spurt in the number of MNCs foraying into the Indian market bears testimony not only to the potential of the domestic market but also to the capability of the country to act as a manufacturing hub to serve the overseas market.

The automotive industry exhibited remarkable resilience post-crisis with production of 20.3 million vehicles and exports of 2.9 million vehicles during 2011-12 (a year-on-year increase of 13.8 per cent and 25.4 per cent, respectively). With exports consistently exhibiting increasing dynamism, the export orientation of the sector witnessed an increase from 7.3 per cent in 2004-05 to 14.2 per cent in 2011-12, indicating the increasing international competitiveness of domestically manufactured vehicles.

Two wheelers remained the largest segment in terms of volume, with a production level of 15.4 million units, followed by passenger vehicles at 3.1 million units during 2011-12. Exports also replicated production trends with two wheeler exports numbering 1.9 million and passenger vehicles aggregating 0.4 million units during the same period. Together, these two segments accounted for 84.3 per cent of the total automobile exports in volume terms.

The strong and robust performance across various segments of the automobile industry has benefited auto component manufacturers. The turnover in value terms for the auto component industry increased from US$ 26.5 billion in 2007-08 to US$ 39.9 billion in 2010-11, recording an impressive compound annual growth rate (CAGR) of 14.6 per cent during this period. Revenues increased due to strong increase in auto component production, which is projected to nearly double to US$ 40 billion by 2015-16.

This could result in the country’s share in global production reaching 3 per cent from the current level of 1 per cent. Besides strong underlying demand, the dynamism in the auto component industry can also be attributed to the sector’s export performance. Auto component exports witnessed a healthy increase during the period 2003-04 to 2010-11 to touch US$ 5.2 billion in 2010-11 and are projected to cross US$ 12 billion by 2015-16. A perceptible aspect of India’s exports of auto components is that almost two-thirds of export goes to the twin big markets of Europe and North America which corroborates the sector’s increasing competitiveness. In addition, the industry has also been amply supported by the spate of new models launched recently by original equipment manufacturers (OEMs) as well as entry of several new OEMs into the Indian market which has provided a fillip to the demand, bolstering the order book position and growth prospects of component suppliers. Investments into the sector also remained euphoric with the total investment nearly touching US$ 5 billion during the period 2006-07 to 2010-11, while the fiscal 2011-12 anticipated an investment to the tune of US$ 2.5 billion.

India’s auto component industry today has the capability to manufacture the entire range of auto-components such as engine parts, drives, transmission parts, suspension and braking parts, electrical parts, and body and chassis parts. Engine parts is the largest sub-segment accounting for more than 31 per cent of the sector’s production, followed by drive transmission and steering parts (share of 19 per cent) and body and chassis and suspension and braking parts (share of 12 per cent each).

Besides, the quality standards in the sector are in line with global standards, corroborated by the fact that nine Indian companies in the automotive sector have received the coveted Deming Prize – the largest number outside Japan. With an impressive growth momentum in the automobile sector coupled with increasing disposable income and road development in the country, the automotive industry is expected to grow significantly in the foreseeable future.

CHEMICALS:

The chemical industry forms the backbone of the industrial and agricultural development in India and also provides building blocks for downstream industries. This industry is a significant contributor to India’s national economic growth. The size of the Indian chemical industry (excluding pharmaceuticals and petrochemicals) is estimated to have reached around US$ 60.3 billion. In terms of total value added (at constant 2000 prices), the Indian chemical industry was the 5th largest in the world, and second largest in Asia after China. The industry accounts for about 10 per cent of the output of the Indian manufacturing sector, 13 per cent of India’s total exports, and 9 per cent of total imports of the country. In terms of segmentation, basic chemicals was the largest sector with total revenues of US$ 43.3 billion, equivalent to more than two-third of the industry’s overall value in 2010.

The volume of major chemicals produced in India amounted to 8 million metric tonnes (MTs) in 2010-11. Though high in absolute terms, the growth during recent times has not been as emphatic. The production of the Indian chemical industry increased only at an average annual rate of 1.0 per cent – from 7.7 million MT in 2005-06 to 8.0 million MT in 2010-11. This near flat performance was primarily as a result of stagnant growth in alkalis (which includes soda ash, caustic soda and liquid chlorine) – the segment which, by far, accounts for the largest share of the output of the Indian chemical industry in volume terms. Matters were made worse by negative average annual rate of growth in organic chemicals, which recorded average annual declines of (-) 2.4 per cent during the 2005-06 to 2010-11 period, pulling down the overall growth of the industry.

The positive and encouraging fact among the various segments of the Indian chemical industry has been the performance of specialty chemicals, primarily dyes and dyestuffs. The average annual growth in production of dyes and dyestuff amounted to a healthy 11.8 per cent, increasing from 30,000 MT in 2005-06 to 47,000 MT in 2010-11. This high growth could partly be attributed to the low base and low absolute volumes of dyes and dyestuffs, but more significantly, it implies a consistent increase in market demand of such products. Given that specialty chemicals are knowledge oriented, the per unit price realisation is far higher than most other segments of the chemical industry. Hence, in value terms, it is likely to be far greater than what is evidenced in volume terms.

Although India is a net importer of chemicals, of late, the gap between imports and exports has been narrowing down. Growth in exports of chemicals and related products for 2010-11 stood at almost 27 per cent as compared to a meagre growth of 1.4 per cent witnessed last year. The export growth figures have also witnessed a remarkable increase of 34 per cent during April-December 2011-12 to reach US$ 30 billion for overall chemicals and related products, as against the country’s total export growth of 28.5 per cent during the same period.

The share of basic chemicals in the country’s overall exports has exhibited a gradual upward trend, indicating that the growth in their exports has outperformed India’s total exports. Exports of basic chemicals (excluding petro-chemicals and pharmaceuticals) and related products from India increased from US$ 6.2 billion in 2006-07 to around US$ 11.2 billion in 2010-11, thereby witnessing a CAGR of 15.7 per cent. As regards 2011-12 (April-December), the share of basic chemicals and related products (excluding petrochemicals and pharmaceuticals) in India’s total exports stood at 4.5 per cent with exports having touched US$ 9.9 billion.

Chemicals industry in India is increasingly becoming a globalized industry. Foreign direct investment (FDI) in the chemical industry and trade between parent firms and their subsidiaries is increasingly becoming significant for the sector. FDI has had a positive impact on growth, development, productivity and competitiveness for the Indian chemical industry. The country has benefited from the transfer and use of technology and the associated benefits of FDI inflows, which has increased over the last few years due to the several incentives that have been provided by the Government of India. The policy now allows for 100 per cent FDI in chemicals under the automatic route. The Indian chemical industry attracted cumulative FDI inflows worth US$ 3.3 billion during the period April 2000 – February 2012, with a share of over2 per cent in total FDI inflows (US $162.3 billion) into India.

Since products of the chemicals industry are used in a diverse range of manufacturing applications, its performance is generally correlated with the trends in the overall economy, as also the linkages with the rest of the world in terms of trade, investment and technology transfer. On the domestic front, with the reduction in tariffs, Indian chemical companies with strong systems and organised operations are likely to be benefited further. Companies with competitive advantages, like those having competence in the areas of high value added chemicals, conforming to international quality standards, could translate their capabilities and establish a dominant presence in both international and domestic markets.

With per-capita consumption of chemical products in India being only a fraction of the global average, the opportunities for the domestic industry are enormous. In dyes, for example, India’s per capita consumption is 50 grams, as against a world average of 425 grams. In case of polymers, the per capita consumption is 5.2 kilograms in India, compared to the world average of 25 kilograms. Keeping in view the size of the domestic market and the growth of end user segments, the potential for growth for the Indian chemical industry is immense.

PETROLEUM PRODUCTS:

The petroleum industry has been instrumental in fuelling the growth of the Indian economy. The petroleum and natural gas sector, which includes exploration, refining and marketing of petroleum products and gas, constitutes over 15 per cent of India’s GDP. According to the provisional production data released by the Ministry of Petroleum and Natural Gas, production of crude oil aggregated to 38.1 million metric tonnes (MMT) in 2011-12, as compared to 37.7 MMT in 2010-11; Natural Gas production was 47.5 billion cubic metres (BCM) during 2011-12, a decline of 8.9 per cent over the previous year’s production of 52.2 BCM; Refinery production amounted to

170.1 MMT in 2011-12 compared to 164.8 MMT of oil refined during 2010-11. Indian petroleum refinery sector has established its ability to excel in international markets with export of petroleum products growing at a significant pace in recent years. The country exported 59.1 MMT of petroleum products against imports of 26.3 MMT (including 8.9 MMT of LNG) during 2010-11. With India’s refining capacity witnessing consistent increase, this figure is likely to touch about 70 MMT by 2014, making India one of the world’s major exporters of petroleum products. In value terms, exports of petroleum products witnessed an appreciable growth of 48.1 per cent during the period April-January 2011-12, to reach a level of US$ 48.3 billion as compared to US$ 32.6 billion during the corresponding period of the previous year. The share of petroleum products exports in total exports has also been witnessing a significant increase from 11.2 per cent in 2005-06 to the current (April- January 2011-12) level of 19.9 per cent. The domestic demand for oil and gas is also on the rise. According to the Ministry of Petroleum and

Natural Gas, Government of India, oil consumption in India is projected to increase by 4-5 per cent per annum by 2015, indicating a demand of 4.01 million barrels per day (bpd) by 2015. According to the Approach Paper for the 12th Five Year Plan, import dependence on oil is expected to increase from 76 per cent in 2010-11 to 80 per cent by 2016-17. Import dependence on natural gas is projected to increase from 19 per cent to 28.4 per cent during the same period. Much of the growth would be contributed by the demand for transport energy, as the stock of vehicles is expected to expand with rising economic activity. The medium-term outlook for refining industry looks positive, due to stretched utilisation levels and new capacity build-up in the domestic market. The steady growth in the demand for petroleum products and the policies taken by Government to deregulate and decontrol the marketing of these products are likely to help in generating more opportunities for this sector.

TEXTILES AND GARMENTS:

The textiles and garments industry has an overwhelming influence on the economic development of India, being the second largest employer after agriculture. Through its contribution to industrial output, employment and exports, the industry plays a critical role in the Indian economy. The industry is estimated to account for 9 per cent of industrial production, 4 per cent of national GDP and 9.5 per cent of the country’s exports, and provides direct employment to more than 35 million people. The textile industry in India is very diverse, comprising the hand-spun and hand-woven sector as also the capital intensive, sophisticated mill sector. The decentralized power looms/ hosiery and knitting sectors form the largest section of the textiles industry in India.

Exports of readymade garments and manmade textiles witnessed a growth of 3.8 per cent and 16.8 per cent, respectively. Cotton yarn and fabrics witnessed an impressive growth in exports of 48.6 per cent over the previous year. During the period April-January 2011-12, exports of textiles and clothing (including carpets) from

India amounted to US$ 23 billion showing an impressive growth of 22 per cent over the corresponding period of the previous year. The Union Budget 2012-13 had imposed mandatory excise duty of 12 per cent on branded garments and textile-made ups. This would exert further pressure on the margins of companies manufacturing readymade garments and made-ups; the manufacturers are already struggling with an unprecedented rise in input costs. In order to support large number of employees involved in the handloom industry, Union Budget 2012-13 announced a financial package of Rs. 38.84 billion for waiver of loans of handloom weavers and their cooperative societies. Apart from this, Rs. 5 billion pilot schemes have also been announced for promotion and application of Geo-textiles in the North Eastern Region.

While the short term outlook for the textile and clothing sector may pose a few challenges, in the long term, with adequate policy stimulation, the sector is expected to bounce back strongly from the sluggishness it has been witnessing, primarily due to slowdown in demand in the two largest export markets for India, viz., the USA and the EU. The policy support to infuse modernization/new technology and to diversify India’s export markets would help support the industry and take it to a higher growth trajectory. Indian exporters are also focusing on domestic market in addition to new and discerning export markets such as UAE, Saudi Arabia, South Africa, and Australia. The large textile manufacturing base, availability of raw materials and labour, vast domestic market, and supportive Government policies, would strengthen the competitive position of Indian textile and clothing industry.

DRUGS AND PHARMACEUTICALS:

The global pharmaceutical industry is estimated to have grown by 5 per cent to 7 per cent in 2011 to reach a market size of US$ 880 billion, compared to the growth level of 4 per cent to 5 per cent achieved in 2010. There is growing divergence in the pace of growth of the pharmaceutical market size among major markets. The 17 pharma - emerging countries (China, Brazil, Russia, India, Mexico, Turkey, Venezuela, Poland, Argentina, Indonesia, Ukraine, Thailand, South Africa, Egypt, Romania, Pakistan and Vietnam) were forecasted to have grown at 15 per cent to 17 per cent in 2011, to reach a cumulative market size of US$ 170 billion to US$ 180 billion. Greater government spending on healthcare and broader public and private healthcare funding are likely to be the key drivers of growth for many of the pharma-emerging markets. China, the world’s third-largest pharmaceutical market is predicted to have grown by 25 per cent to 27 per cent, to reach a level of over US$ 50 billion in 2011. The five major European markets (Germany, France, Italy, Spain, and the UK) collectively are estimated to have grown at 1 per cent to 3 per cent, while the USA is estimated to have grown at 3 per cent to 5 per cent.

The global exports of pharmaceuticals aggregated US$ 461 billion in 2010, a growth of 6.2 per cent over the previous year’s figure of US$ 434 billion. Germany, Belgium, Switzerland, USA and France were the major exporters, together accounting for more than half of the world’s exports of pharmaceutical products in 2010. India, with a share of 1.5 per cent was ranked the 17th largest exporter during the same year. Overall, the share of pharmaceutical products in world exports has grown over the years, from a level of 2.6 per cent in 2006 to 3 per cent in 2010.

Indian pharmaceutical companies have not been affected much by the global slowdown, largely because of cost advantages in production, and due to many of them holding long-term contracts as preferred suppliers. Notwithstanding this, performance on the export front has been rather modest; exports of pharmaceutical products (ITC HS Code 30) increased by a mere 1.8 per cent in 2009-10 over the previous year to aggregate US$ 5.2 billion. However, exports witnessed a complete turnaround during 2010-11, growing by a healthy 26 per cent to aggregate to US$ 6.5 billion. During the period April-June 2011-12, exports of pharmaceutical products (ITC HS Code 30) stood at US$ 1.80 billion growing by 22 per cent over the corresponding period of the previous year. The major export destinations for India’s pharmaceutical products were: USA with a share of 27.1 per cent in the total pharmaceutical exports to world, followed by Russia (7.9 per cent), UK (4.3 per cent), South Africa (4.2 per cent) and Nigeria (3 per cent). Indian pharmaceutical industry is in the process of developing many potential new pharmaceutical products for world markets. While some of them are in early stages of development, others are well on their way to commercialization. Many pharmaceuticals companies have altered their drug portfolios from primary care driven blockbusters towards specialties such as oncology, immunology and inflammation, where the medical need is so high that prices are more easily accepted by the regulators.

Furthermore, a ‘Pharma Vision 2020’ has been prepared by the Department of Pharmaceuticals, for making India one of the leading destinations for end-to-end drug discovery and innovation, with the Government committed to provide requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharmaceutical R and D, venture fund for research in the public and private domain and such other measures.

CAPITAL GOODS:

The capital goods industry forms the backbone of India’s manufacturing sector. Some of the prominent capital goods produced in India include heavy electrical machinery, textile machinery, machine tools, earthmoving and construction equipment including mining equipment, road construction equipment, printing machinery, dairy machinery, industrial refrigeration, industrial furnaces etc. During 2010-11 the capital goods industry grew significantly by 15 per cent compared to a very low growth of 1 percent during 2009-10. However, this performance could not be sustained in the year 2011-12; the growth in the capital goods industry actually declined by (-) 4.1 per cent.

Machine tools production in India increased to Rs. 24.2 billion during 2010-11 from a level of Rs. 16.6 billion in 2009-10, registering a growth rate of 46 per cent. The export of machine tools aggregated to US$ 313.8 million during 2010-11, exhibiting an increase of 12.8 per cent. During the period April-January 2011-12, export of machine tools witnessed a year-on-year increase (y-o-y) of 17 per cent, and amounted to US$ 280.4 million. Imports during this period amounted to US $ 2495 million showing an increase of 35 per cent over the corresponding period of the previous year.

As far as textile machinery is concerned, India’s production was valued at Rs. 61.5 billion in 2010-11. While exports aggregated to US$ 201 million recording a growth of 63 per cent over the previous year, imports aggregated to US$ 1.8 billion during 2010-11 showing a growth of 32 per cent over the previous year. During the period April-June 2011-12, exports of textile machinery were valued at US$ 71 million and exhibited a growth rate of 89 per cent over the corresponding period of the previous year. Imports during this period were valued at US$ 601 million and registering a y-o-y growth of 63 per cent.

During the period 2010-11, India’s export of construction machinery was valued at US$ 358 million and imports stood at US$ 2 billion. Exports and imports during this period showed a decline of 25.2 per cent and 3.8 per cent respectively. However exports and imports revived during the period April-June 2011-12, showing a y-o-y growth of 86 per cent and 46 per cent, respectively. Exports and imports of construction and mining machinery during this period were valued at US$ 123 million and US$ 637 million, respectively.

The process plant machinery and components sector in India is a heterogeneous segment of capital goods industry. During the period 2010-11, India exported process plant/ machinery worth US$ 1.8 billion which showed an increase of 31 per cent over the previous year, and imported plant/machinery worth US$ 3.2 billion, recording a growth of 8 per cent. During the period April-June 2011-12, exports of process plant machinery and components sector were worth US$ 419 million, registering a y-o-y growth of 55 per cent while imports amounted to US$ 1.1 billion growing by 45 per cent over the corresponding period of the previous year.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]
Acceptances, Guarantees, endorsements and other obligations	32406.987	30556.876
On outstanding forward exchange contracts	4338.170	5556.188
On underwriting commitments
Uncalled Liability on partly paid investments	69.450	62.870
Claims on the Bank not acknowledged as debts	3124.700	3124.700
Other monies for which the Bank is contingently liable	18329.300	12362.324
TOTAL	58268.607	51662.958

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.54.63
UK Pound	1	Rs.83.67
Euro	1	Rs.70.02

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--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	-

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.