|
Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
RBS BUSINESS SERVICES PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Empire Complex,
414, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
04.10.2001 |
|
|
|
|
Com. Reg. No.: |
11-133558 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 50.100
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72900MH2001PTC133558 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA15068E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCA1780D |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Information Technology Enabled and Back Office
Processing Services. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 21180000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a good track record.
Financially company seems to be performing well. Liquidity position is good. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitments. The company can be considered for normal 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.
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in investment
as well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE [91-22-66647000]
LOCATIONS
|
Registered Office : |
Empire Complex,
414, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India |
|
Tel. No.: |
91-22-66647000 |
|
Fax No.: |
91-22-66647890 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Mumbai Office : |
Mafatlal Chambers, B Wing, N. M. Joshi Marg, Lower Parel (East),
Mumbai - 400013, Maharashtra, India |
|
Tel. No.: |
91-22-67548000 |
|
Fax No.: |
91-22-67548420 |
|
|
|
|
Corporate Centre
: |
6th Floor, Corporate Centre, Andheri Kurla Road, Opposite
Trade Star Building, Andheri (East), Mumbai - 400059, Maharashtra, India |
|
Tel. No.: |
91-22-30438600 |
|
Fax No.: |
91-22-67258117 |
|
|
|
|
Branch Offices : |
Located at: · Guindy, Chennai · Anna Salai, Chennai · Gurgaon · Cyber Greens, Gurgaon |
DIRECTORS
AS ON 24.09.2012
|
Name : |
Mr. Pankaj Padmasen Phatarphod |
|
Designation : |
Managing director |
|
Address : |
Guruprasad Opposite Bhagwati M Hospital, Mandapehwar Road, Borivali
(West), Mumbai – 400103, Maharashtra, India |
|
Date of Birth/Age : |
20.06.1972 |
|
Date of Appointment : |
01.04.2010 |
|
DIN No.: |
03031289 |
|
|
|
|
Name : |
Mrs. Meera Hiranandani Sanyal |
|
Designation : |
Director |
|
Address : |
32, Hill Park, AG Bell Marg, Malabar Hill, Mumbai – 400006,
Maharashtra, India |
|
Date of Birth/Age : |
15.10.1961 |
|
Date of Appointment : |
01.01.2006 |
|
DIN No.: |
00422545 |
|
|
|
|
Name : |
Mr. William Gordon Brogan Higgins |
|
Designation : |
Director |
|
Address : |
125 Thurleigh Road, London SW12 8TY |
|
Date of Birth/Age : |
20.04.1959 |
|
Date of Appointment : |
22.02.2007 |
|
DIN No.: |
01385325 |
|
|
|
|
Name : |
Mr. Sunil Govind Prabhu |
|
Designation : |
Director |
|
Address : |
Flat No. 2, Building No. 1, Vijayashree Co-operative Housing Society, St.
Anthony Road, Mumbai – 400071, Maharashtra, India |
|
Date of Birth/Age : |
24.09.1964 |
|
Date of Appointment : |
11.09.2012 |
|
PAN No.: |
AAIPP6952C |
|
Voter ID No.: |
MT/07/046/0348335 |
|
DIN No.: |
06400601 |
KEY EXECUTIVES
|
Name : |
Mr. Sunil Govind Prabhu |
|
Designation : |
Secretary |
|
Address : |
Flat No. 2, Building No. 1, Vijayashree Co-operative Housing Society,
St. Anthony Road, Mumbai – 400071, Maharashtra, India |
|
Date of Birth/Age : |
24.09.1964 |
|
Date of Appointment : |
13.09.2002 |
|
PAN No.: |
AAIPP6952C |
|
Voter ID No.: |
MT/07/046/0348335 |
|
|
|
|
Name : |
Mr. Puneet Molhotra |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 24.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
The Royal Bank of Scotland NV, Netherlands |
|
5000000 |
|
Breschou B.V., Netherlands |
|
10000 |
|
|
|
|
|
Total |
|
5010000 |
AS ON 24.09.2012
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
100.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Information Technology Enabled and Back Office
Processing Services. |
||||
|
|
|
||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Heritage, 3rd Floor, Near Gujarat Vidyapith,
Off Ashram Road, Ahmedabad – 380014, Gujarat, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AABFD7919A |
|
|
|
|
Holding company : |
Royal Bank of
Scotland NV |
|
|
|
|
Ultimate holding
company : |
Royal Bank of Scotland Group Plc. |
|
|
|
|
Fellow Subsidiary company : |
· DIBU Administratie en Consultancy BV · RBS Asia Pacific Pte Limited · RBS Citizens NA · RBS Equities (India) Private Limited · RBS Financial Services India Private Limited · RBS Foundation India · RBS India Development Centre Private Limited · RBS Management Services (UK) Limited · RBS NB Uzbekistan CJSC · Isle Bank of Ireland Limited · Ulster Bank Limited ·
RBS Securities Japan Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,010,000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.100
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
50.100 |
50.100 |
|
(b) Reserves & Surplus |
|
5245.839 |
4333.093 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
5295.939 |
4383.193 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c)
Other long term liabilities |
|
42.099 |
0.000 |
|
(d)
long-term provisions |
|
309.701 |
369.443 |
|
Total
Non-current Liabilities (3) |
|
351.800 |
369.443 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
0.000 |
0.000 |
|
(b)
Trade payables |
|
863.960 |
204.770 |
|
(c)
Other current liabilities |
|
421.369 |
368.428 |
|
(d)
Short-term provisions |
|
347.477 |
268.640 |
|
Total
Current Liabilities (4) |
|
1632.806 |
841.838 |
|
|
|
|
|
|
TOTAL |
|
7280.545 |
5594.474 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
1411.090 |
401.688 |
|
(ii)
Intangible Assets |
|
20.950 |
17.572 |
|
(iii)
Capital work-in-progress |
|
0.000 |
694.378 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
|
192.911 |
146.322 |
|
(d) Long-term Loan
and Advances |
|
918.898 |
703.182 |
|
(e)
Other Non-current assets |
|
0.000 |
0.000 |
|
Total
Non-Current Assets |
|
2543.849 |
1963.142 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
200.000 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c)
Trade receivables |
|
1420.938 |
1919.542 |
|
(d)
Cash and cash equivalents |
|
2201.235 |
1073.393 |
|
(e)
Short-term loans and advances |
|
190.629 |
180.319 |
|
(f)
Other current assets |
|
923.894 |
258.078 |
|
Total
Current Assets |
|
4736.696 |
3631.332 |
|
|
|
|
|
|
TOTAL |
|
7280.545 |
5594.474 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
50.100 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
3346.308 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
3396.408 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3396.408 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
759.097 |
|
|
Capital work-in-progress |
|
|
10.065 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERRED TAX ASSETS |
|
|
135.518 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
1145.671 |
|
|
Cash & Bank Balances |
|
|
1694.152 |
|
|
Other Current Assets |
|
|
123.808 |
|
|
Loans & Advances |
|
|
741.295 |
|
Total
Current Assets |
|
|
3704.926 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
241.606 |
|
|
Other Current Liabilities |
|
|
171.872 |
|
|
Provisions |
|
|
799.720 |
|
Total
Current Liabilities |
|
|
1213.198 |
|
|
Net Current Assets |
|
|
2491.728 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3396.408 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
7961.650 |
6969.410 |
5678.110 |
|
|
|
Other Income |
457.280 |
205.310 |
73.360 |
|
|
|
TOTAL |
8418.930 |
7174.720 |
5751.470 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefit Expenses |
3643.870 |
3058.990 |
2655.380 |
|
|
|
Other Expenses |
3047.160 |
2746.440 |
1620.720 |
|
|
|
TOTAL |
6691.030 |
5805.430 |
4276.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1727.900 |
1369.290 |
1475.370 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
8.060 |
1.640 |
1.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1719.840 |
1367.650 |
1474.370 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
354.800 |
305.440 |
291.850 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL ITEMS |
0.000 |
0.000 |
369.950 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1365.040 |
1062.210 |
1552.470 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
452.290 |
75.420 |
522.340 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
912.750 |
986.790 |
1030.130 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
4333.090 |
3346.310 |
2316.180 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
5245.840 |
4333.090 |
3346.310 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
6259.000 |
6115.000 |
5057.000 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
182.18 |
196.96 |
NA
|
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
10.84
|
13.75 |
17.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.15
|
15.24 |
27.34 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.26
|
22.34 |
34.78 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.24 |
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.90
|
4.32 |
3.05 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
31.03.2010 (Rs.
In Millions) |
|
|
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
0.000 |
0.000 |
NA |
|
|
|
|
|
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
Yes |
|
34] |
External Agency Rating,
if available |
No |
NATURE OF OPERATIONS
Subject was incorporated as a private limited company on 4 October,
2001 to carry on the business of providing information technology enabled
services primarily to Royal Bank of Scotland N.V. The Company has facilities in
the states of Maharashtra, Tamilnadu, Delhi and Haryana. A part of facility in
Maharashtra located in Mumbai, facility in Tamilnadu located in Chennai,
facility in Delhi and facility in Haryana located in Gurgaon are registered
with Software Technology Park of India (STPI).
CONTINGENT
LIABILITIES [AS ON 31.03.2012]:
i. Bank Guarantee in favour of Commissioner of Customs/ Central Excise for the import of the goods, under the STPI scheme of Rs 14.698 Millions (Previous year: Rs. 11.256 Millions).
ii. The company has received claims amounting to Rs 8.365 Millions (Previous year: Rs. 7.130 Millions) which have not been acknowledged as debts. The Company is in receipts of claims from RBS N.V., which may not be recognized till such time RBS N.V. provides adequate documents and supporting to validate the claim.
iii. Income Tax
Assessment Year
2007-08:
During the financial year 2010-11, Deputy Commissioner of Income Tax has issued order for the Assessment Year (AY) 2007-08. The transfer pricing (TP) and corporate tax adjustments of Rs. 1056.749 Millions have been made in the assessment order for AY 2007-08 with a corresponding tax demand of Rs. 511.167 Millions.
Appeal with Commissioner of Income Tax (Appeals) has been filed against the aforesaid order in the month of March 2011.
In the month of April 2012, Commissioner of Income Tax (Appeals) has issued order giving partial relief reducing the transfer pricing (TP) and corporate tax adjustments to Rs. 519.243 Millions with a corresponding tax demand of Rs.251.167 Millions. Appeal with the Appellate Tribunal has been filed against the aforesaid order in the month of June 2012.
Assessment Year
2008-09:
During the financial year 2011-12, Assistant Commissioner of Income Tax has issued order for the Assessment Year (AY) 2008-09. The transfer pricing (TP) and corporate tax adjustments of Rs. 961.186 Millions have been made in the assessment order for AY 2008-09 with a corresponding tax demand of Rs. 392.946 Millions. Appeal with Commissioner of Income Tax (Appeals) has been filed against the aforesaid order in the month of March 2012.
FIXED ASSETS:
· Furniture and fixtures
· Office equipment
· Computer equipments
· Other equipments
· Leasehold improvements
·
Computer software
PRESS RELEASE:
RATNAKAR BANK TO BUY
PART OF RBS' BUSINESSES IN INDIA
RBS's business banking, credit cards and mortgage portfolio
has been acquired
Mumbai August
10, 2013
Kolhapur-based Ratnakar Bank on Friday said it had agreed to buy Royal Bank of Scotland’s (RBS’) business banking, credit cards and mortgage portfolios in India.
The private lender did not disclose the price at which it will buy these
businesses. The deal is subject to approvals from the Competition Commission of
India (CCI).
The move comes after RBS failed to close a deal involving sale of its retail
and commercial banking assets in India to Hongkong and Shanghai Banking
Corporation (HSBC). The transaction between HSBC and RBS was called off towards
the end of 2012, after the lenders negotiated for almost two-and-a-half years.
Other private lenders, including YES Bank and IndusInd Bank, were also in the
race to acquire these businesses. In November 2012, RBS had said its India
retail and commercial banking operations accounted for less than 0.5 per cent
of its remaining non-core assets.
Ratnakar Bank said it believes the transaction will complement well with its
businesses and help it add strength in the desired product and customer
segments. “We are happy to acquire this business as it fits very well with our
growth strategy,” Rajeev Ahuja, head of strategy and markets at Ratnakar Bank,
said in a statement. “Over the last three years, the bank has been building
scale and this transaction enables us to fast-track our growth on multiple
counts.”
About 120,000 customers of RBS India, across business banking, credit cards and
mortgage business, will form part of the deal. Ratnakar Bank also plans to
absorb the employees of RBS associated with these businesses. Ratnakar Bank
currently has around 1,900 employees.
The acquisition is expected to expand Ratnakar Bank’s low-cost current account
savings account deposit base, as RBS India’s business banking comprises of
several current account depositors.
The transaction is not believed to be capital intensive and Ratnakar Bank is
expected to finance the purchase through internal accruals. The private lender
had strengthened its capital base by raising Rs 3240.000 Millions from a group
of global and domestic investors in April 2013.
The foreign lender’s customers will have access to Ratnakar Bank’s 131 branches
and will continue to enjoy all existing services and facilities. “Over the next
few weeks we will be writing to all our clients who are affected, and working
closely with Ratnakar Bank to ensure a seamless transition for our customers,”
Derek Nazareth, head of retail and commercial banking operations at RBS in
India, said.
It is learnt that the transaction did not involve transfer of any of RBS’ India
branches.
Earlier this year, RBS said it will close 23 of its 31 branches in the country
as part of its plan to consolidate retail and commercial banking operations.
The foreign lender now aims to maintain presence across 10 locations in India
by the end of 2013.
“There is no impact on RBS’ corporate and institutional business (market and
international banking) or its private banking businesses in India. RBS will
continue to offer financing, risk management, wholesale and investment banking,
cash, payments, trade finance and a comprehensive range of wealth management
solutions to its clients,” the foreign lender said.
PricewaterhouseCoopers advised Ratnakar Bank, while Morgan Stanley and RBS
M&IB Asia Pacific were the advisors to RBS.
DEAL DETAILS
* Ratnakar Bank to absorb RBS’ employees involved in three businesses
* Over 120,000 customers of RBS India will bank with Ratnakar
* The transaction does not involve transfer of RBS’ India branches
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. 62.48 |
|
|
1 |
Rs. 99.66 |
|
Euro |
1 |
Rs. 83.50 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.