MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	INDUSIND BANK LIMITED
Registered Office :	2401, Gen Thimmayya Road, Contonment, Pune – 411 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.01.1994
Com. Reg. No.:	11-076333
Capital Investment / Paid-up Capital :	Rs.5256.386 millions
CIN No.: [Company Identification No.]	L65191PN1994PLC076333
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMI04657C MUMI03262A PNEI00321G MUMI04217D MUMI04623D MUMI02402B
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Public Limited Liability Bank. The Bank’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Bank operates in four business segments, viz. Treasury, Corporate / Wholesale Banking, Retail Banking and Other Banking Operations.
No. of Employees :	13944 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed bank having fine track record. The bank is progressing well. The overall financial position of the bank is good. Directors are reported as experienced and respectable businessmen. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitment. The bank can be considered good 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Lower Tier II Bonds: AA+
Rating Explanation	Have high degree of safety and carry very low credit risk.
Date	09.10.2014

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 31-03-2014.

INFORMATION DECLINED

Management non-cooperative

(Tel. No.: 91-22-66412200)

LOCATIONS

Registered Office :	2401 Gen Thimmayya Road, Contonment, Pune – 411 001, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	companysecretary@indusind.com
Website :	http://www.indusind.com
Corporate Office :	8^th Floor, Tower 1, One Indiabulls Centre, 841, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400 013, Maharashtra, India
Tel No.:	91-22-66412200
Fax N o.:	91-22-66412224
Branch Network :	Located at Andhra Pradesh Assam Bihar Chandigarh Chattisgarh Dadra and Nagar Haveli Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Mizoram New Delhi Orissa Punjab Rajasthan Sikkim Tamilnadu Tripura Union Territory Uttar Pradesh Uttaranchal West Bengal
Overseas Branch Office :	Lactated at Dubai London

DIRECTORS

AS ON 31.03.2014

Name :	Mr. R. Seshasayee
Designation :	Chairman
Qualification :	B. Com and ACA
Name :	Mr. Ajay Hinduja
Designation :	Director
Name :	Mr. S. C. Tripathi
Designation :	Director
Name :	Mr. Ashok Kini
Designation :	Director
Name :	Mrs. Kanchan Chitale
Designation :	Director
Qualification :	B. Com, FCA, Practicing Chartered Accountant
Name :	Mr. Vijay Vaid
Designation :	Director
Name :	Mr. T. Anantha Narayanan
Designation :	Director
Name :	Mr. Romesh Sobti
Designation :	Managing Director and Chief Executive Officer
Name :	Mr. Y. M. Kale
Designation :	Alternate Director to Mr. Ajay Hinduja

KEY EXECUTIVES

Name :	Mr. Haresh K. Gajwani
Designation :	Company Secretary
Name :	Mr. Paul Abraham
Designation :	Chief Operating Officer
Name :	Mr. Suhail Chander
Designation :	Head - Corporate and Commercial Banking
Name :	Mr. Sumant Kathpalia
Designation :	Head - Consumer Banking
Name :	Mr. K.S. Sridhar
Designation :	Chief Risk Officer
Name :	Mr. Arun Khurana
Designation :	Head - Global Markets Group
Name :	Mr. S.V. Parthasarathy
Designation :	Head - Consumer Finance
Name :	Mr. Ramesh Ganesan
Designation :	Head - Transaction Banking
Name :	Mr. S.V. Zaregaonkar
Designation :	Chief Financial Officer
Name :	Mr. Sanjeev Anand
Designation :	Deputy Head - Corporate and Commercial Banking
Name :	Mr. Zubin Mody
Designation :	Head - Human Resources
Name :	Mr. Sanjay Mallik
Designation :	Head - Investor Relations and Strategy
Name :	Ms. Roopa Satish
Designation :	Head - Corporate, Institutions and Investment Banking

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Category of Shareholder	No. of Shares	Percentage of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	79899984	17.24
Sub Total	79899984	17.24
Total shareholding of Promoter and Promoter Group (A)	79899984	17.24
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	31187824	6.73
Financial Institutions / Banks	1743990	0.38
Central Government / State Government(s)	50	0.00
Insurance Companies	12633184	2.73
Foreign Institutional Investors	228153466	49.23
Sub Total	273718514	59.07
(2) Non-Institutions
Bodies Corporate	66450033	14.34
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	27625325	5.96
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	8465281	1.83
Any Others (Specify)	7252416	1.57
Clearing Members	684280	0.15
Overseas Corporate Bodies	1477100	0.32
Non Resident Indians	4086638	0.88
Trusts	783818	0.17
Directors & their Relatives & Friends	220580	0.05
Sub Total	109793055	23.69
Total Public shareholding (B)	383511569	82.76
Total (A)+(B)	463411553	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	64682364	0.00
Sub Total	64682364	0.00
Total (A)+(B)+(C)	528093917	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total
1	Indusind International Holdings Limited	6,03,99,984	11.44
2	Indusind Limited	1,95,00,000	3.69
	Total	7,98,99,984	15.13

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Ga Global Investments Limited	12776391	2.42
2	Bridge India Fund	22263458	4.22
3	Afrin Dia	16165000	3.06
4	Life Insurance Corporationa of India	12756658	2.42
5	Goldman Sachs Investments (Mauritius) I Limited	11705992	2.22
6	IDL Speciality Chemicals Limited	9146000	1.73
7	Franklin Templetion Mutual Fund A/c Franklin India Bluechip Fund	8759577	1.66
8	ICICI Prudential Life Insurance Company Limited	9600829	1.82
9	HDFC Standard Life Insurance Company Limited	7306021	1.38
10	Hinduja Group Limited	7839117	1.48
11	Government of Singapore	6594964	1.25
12	Norwest Venture Partners X FII -Mauritius	6718087	1.27
13	Birla Sun Lifer Trustee Company Private Limited A/c Birla Sun Life Frontline Equity Fund	6203467	1.17
14	DVI Fund Mauritius Limited	6252000	1.18
15	Franklin Templetion Mutual Fund	5700000	1.08
16	Morgan Stanley Asia (Singapore) Pte	7099144	1.34
	Total	156886705	29.71

Details of Depository Receipts (DRs)

Sl. No.	Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying  Outstanding DRs	Shares Underlying Outstanding DRs as % of Total No. of Shares
1	GDRs	6,46,82,364	6,46,82,364	12.25
	Total	6,46,82,364	6,46,82,364	12.25

BUSINESS DETAILS

Line of Business :	The Bank operates in four business segments, viz. Treasury, Corporate / Wholesale Banking, Retail Banking and Other Banking Operations.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS – NOT APPLICABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

13944 (Approximately)

Bankers :

Banker Name	Reserve Bank of India
Branch Address	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
I Borrowings in India
i) Reserve Bank of India	550.000	0.000
ii) Other Banks	42613.042	30359.380
iii) Other Institutions and Agencies	58852.668	31918.459
iv) Unsecured Non-Convertible Redeemable Debentures/Bonds (Subordinated Tier-II Bonds)	7601.000	8101.000
v) Unsecured Non-Convertible Redeemable Non-Cumulative Subordinated Upper Tier II Bonds	3089.000	3089.000
II Borrowings outside India	34913.860	21127.722
Total	147619.570	94595.561

Auditors :
Name :	B S R and Co. LLP Chartered Accountants
Address :	Lodha Excelus, 1^st Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalakshmi, Mumbai – 400 011, Maharashtra, India
Solicitors :
Name :	Crawford Bayley and Company Solicitors and Advocates
Address :	State Bank Building, NGN Vaidya Marg, Mumbai – 400 023, Maharashtra, India
Memberships :	Not Available
Collaborators :	Not Available
Associates :	IndusInd Marketing and Financial Services Private Limited
Subsidiaries :	ALF Insurance Services Private Limited (Under Liquidation)

CAPITAL STRUCTURE

AS ON 27.06.2014

Authorised Capital : Rs.5500.000 millions

Paid-up Capital : Rs.5282.884 millions

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
550000000	Equity Shares	Rs.10/- each	Rs.5500.000 millions

Issued, Subscribed & Called-up Capital :

No. of Shares	Type	Value	Amount
525446484	Equity Shares	Rs.10/- each	Rs.5254.465 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
525446484	Equity Shares	Rs.10/- each	Rs.5254.465 millions
	Add: 384200 Forfeited Equity Shares	Rs.10/- each	Rs.1.921 millions
	Total		Rs.5256.386 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
CAPITAL AND LIABILITIES
Capital	5256.386	5228.698	4677.021
Employee Stock Options Outstanding	110.196	107.119	109.459
Reserves and Surplus	85063.042	70966.719	42630.600
Deposits	605022.853	541167.150	423615.496
Borrowings	147619.570	94595.561	86820.136
Other Liabilities and Provisions	27187.259	20999.907	18107.985
TOTAL	870259.306	733065.154	575960.697
ASSETS
Cash and Balances with Reserve Bank of India	44139.156	32498.445	29035.762
Balances with Banks and Money at Call and Short Notice	23555.261	35988.879	26360.456
Investments	215629.530	196541.657	145719.461
Advances	551018.359	443206.100	350639.514
Fixed Assets	10164.472	7561.418	6567.985
Other Assets	25752.528	17268.655	17637.519
TOTAL	870259.306	733065.154	575960.697
Contingent Liabilities	1478042.644	1349028.880	1031902.885
Bills for Collection	57745.685	63375.073	61509.964

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
INCOME
Interest Earned	82535.344	69832.323	53591.926
Other Income	18905.290	13629.608	10117.827
TOTAL	101440.634	83461.931	63709.753
EXPENDITURE
Interest Expended	53628.213	47503.662	36549.484
Operating Expenses	21852.828	17563.627	13429.956
Provisions and Contingencies	11879.373	7782.814	5704.194
TOTAL	87360.414	72850.103	55683.634
PROFIT
Net Profit for the year	14080.220	10611.828	8026.119
Profit brought forward	17909.295	11875.901	7143.622
TOTAL	31989.515	22487.729	15169.741
APPROPRIATIONS Transfer to
a) Statutory Reserve	3520.055	2652.957	2006.530
b) Capital Reserve	81.754	83.641	86.319
c) Investment Reserve Account	0.745	4.031	5.163
d) Dividend (Proposed)	1840.781	1570.860	1028.913
e) Corporate Dividend Tax	312.840	266.945	166.915
	5756.175	4578.434	3293.840
Balance transferred to Balance Sheet	26233.340	17909.295	11875.901
TOTAL	31989.515	22487.729	15169.741
EARNING PER EQUITY SHARE (Face value of Rs.10/- per share) (Rs.)
Basic	26.85	21.83	17.20
Diluted	26.41	21.40	16.86

QUARTERLY RESULTS

PARTICULARS	30.06.2014	30.09.2014
Unaudited	1^stQuarter	2^nd Quarter
Interest Earned	22973.100	23787.600
Income On Investments	4113.300	4112.700
Interest On Balances With RBI Other Inter Bank Funds	484.600	583.700
Interest / Discount On Advances / Bills	18373.800	19089.200
Others	1.400	2.000
Other Income	5763.700	5582.700
Total Income	28736.800	29370.300
Interest Expended	14966.500	15456.500
Operating Expenses	6278.300	6667.100
Total Expenditure	6278.300	6667.100
Operating Profit Before Provisions and Contingencies	7492.000	7246.700
Exceptional Items	0.000	0.000
Provisions and contingencies	1104.000	732.000
Profit Before Tax	6388.000	6514.700
Tax	2177.400	2212.700
Profit After Tax	4210.600	4302.000

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	63709.753	83461.931	101440.634
		31.003	21.541

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	63709.753	83461.931	101440.634
Profit	8026.119	10611.828	14080.22
	12.60%	12.71%	13.88%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT: NOT AVAILABLE

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	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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

Case Details

Bench:-Bombay

Presentation Date:-				25/08/2014
Lodging No.:-	NMSL/1960/2014	Filing Date:-	25/08/2014

Main Matter

Lodging No.:-			ARBPL/1174/2014	Reg No.:-	ARBP/1088/2014
Petitioner:-			GARA AUTOZONE PRIVATE LIMITED	Respondent:-	THE INDUSIND BANK LIMITED
				Resp. Adv.:-	Dave and Girish and Company (0)
	District:-	OUTSIDE MAHARASHTRA

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	NOTICE OF MOTION (ARBITRATION PETITION)

Next Date:-

16/12/2014

Stage:-

FIRST ON BOARD [ORIGINAL SIDE MATTERS]

Coram:-

HON'BLE SHRI JUSTICE S.J. KATHAWALLA

Last Date:-

03/12/2014

Stage:-

FOR DISMISSAL [ORIGINAL SIDE MATTERS]

Last Coram:-

HON'BLE SHRI JUSTICE S.J. KATHAWALLA

Act :-

Arbitration and Conciliation Act 1996

FINANCIAL PERFORMANCE

The operating environment in the Indian economy witnessed significant turbulence throughout the year, incorporating worsening liquidity conditions and inflationary pressures coupled with volatility in currency exchange rates. During the year, RBI increased Repo Rate to 8.00% from 7.50% and CRR was kept constant at 4.00%.

During the year 2013-14, the Bank continued to leverage its business on the three performance planks of Productivity, Profitability and Efficiency and focused on scalability, which helped to significantly improve its profitability.

The Bank's Total Income grew by 21.54% to Rs.101440.600 millions from Rs.83461.900 millions, backed by improved business.

The sharp rise in profitability was the result of a healthy increase in core earnings of the Bank through Net Interest Income (NII) and robust growth in Non-Interest Income streams. Net Interest Income improved by 29.46% to Rs.28907.100 millions from Rs.22328.600 millions while Non-Interest Income rose to Rs.18905.300 millions from Rs.13629.600 millions, a rise of 38.71%.

The year 2013-14 has been one of sustained hardening of interest rates and shrinking of lending margins. The Yield on Advances dropped marginally to 13.56% during the year, the Cost of Deposits reduced to 8.17% as against 8.49% in the previous year (decrease of 32 basis points). The Net Interest Margin (NIM) increased to 3.71% during the year, as compared with 3.43% in 2012-13, owing to reduction in the total cost of funds.

Fee and Miscellaneous Income at Rs.18905.300 millions showed sustained annual growth. Core Fee Income such as Commission, Exchange, Fees on distribution of third-party products and earnings from foreign exchange business, etc. grew by 29.89% to Rs.16097.200 millions from the level of Rs.12393.400 millions last year.

The Bank expanded its branch network rapidly to reach 602 branches, as against 500 branches at the beginning of the year. Revenue per employee during the year remained steady at Rs.3.100 millions.

Quality of the Bank's assets remained stable, with Net Non-Performing Assets (Net NPAs) at 0.33% as at March 31, 2014 from 0.31% last year. The Provisioning Coverage Ratio (PCR) stood at 70.35%, as compared to 70.13% in the previous year.

On the liabilities side, the emphasis continued to be on broadbasing the deposit franchise. This task was accomplished by leveraging the expanded branch network and the pan-India marketing set-up, offering innovative products and service propositions, sustained promotional campaigns, and enabling customers with alternate channels like ATMs, Internet Banking, etc.

The Bank introduced several new products and services for its chosen client segments through its Transaction Banking Group and Global Markets Group. Deeper understanding of client requirements and the ability to put technology to efficient use formed the bedrock on which new products and service propositions were created.

The Bank kept up its focus on deepening as well as strengthening the fee-based income streams, resulting in a smart growth in non-interest income. Going forward, the Bank plans to upscale the growth momentum through further enhancements in diverse revenue streams such as Foreign Exchange business, Investment Banking, structured Trade and Treasury products, distribution of third party products like Mutual Funds and Insurance, international remittances, Bullion operations and Transaction Banking activities, including the Depository business and the Commodity Market business.

SHARE CAPITAL

During the year, the Bank allotted 27,68,778 shares pursuant to the exercise of Options under its Employees Stock Option Scheme, 2007.

Pursuant to the above, the Paid-up Share Capital and Share Premium Account increased by Rs.27.700 millions and Rs.323.900 millions respectively.

As at March 31, 2014, the Paid-up Equity Capital of the Bank consisted of 52,54,46,484 shares of Rs.10/- each, excluding forfeited shares.

TIER II CAPITAL

The Bank did not raise any Tier II Capital during the year.

SUBSIDIARY COMPANY

ALF Insurance Services Private Limited, the Bank's subsidiary company which was set up to do the business of Insurance Corporate Broking, is currently under voluntarily winding up, and the process is expected to be completed soon.

MANAGEMENT DISCUSSION AND ANALYSIS

Macroeconomic Scenario and Banking Environment

Global economic activity remained subdued during the first half of the financial year as a consequence of tapering of the asset purchase programme by the US Federal Reserve, and sluggish growth in developed markets. This, coupled with weaker economic output in Emerging Market Economies (EMEs), resulted in portfolio outflows from EMEs, including India, contributing to currency volatility

Demand from advanced economies registered a marked improvement in the latter half of the financial year, leading to a pick-up in EMEs growth to clock 4.7% in 2013. With the uncertainty arising from the US tapering having diminished, focus of policy makers globally has shifted to tackling the residual risks to growth and inflationary pressures faced mainly by EMEs.

On the domestic front, the economy was confronted with structural headwinds in the form of the 'twin deficits' (Fiscal and Current Account) and elevated inflation levels. In order to curb volatility in forex markets, RBI announced exceptional policy measures in July 2013. These measures included restricting access to funds under the Liquidity Adjustment Facility (LAF) while simultaneously increasing the Marginal Standing Facility (MSF) rate by 200 bps. These steps led to tightening of liquidity with an overnight spurt in rates, and rise in interest rates across the short and long end of the curve by 200 - 300 bps. The measures succeeded in immediately calming the markets. The RBI announced new measures on September 4, 2013 to further the soothing-effect on the market. These included concessional Swap Windows for FCNR Deposits and Foreign Currency Loans raised by Indian banks. These measures eased pressure on liquidity and strengthened the Rupee.

During the year, the Government continued its fiscal consolidation process, resulting in lowering of FY14 Fiscal Deficit at 4.6% of GDP against the targeted 4.8%. Broader structural issues such as addressing the subsidy burden and augmenting revenue receipts would have to be addressed by the political formation brought to office in General Elections 2014. Unless these broad issues are addressed, fiscal consolidation would have to be undertaken through ad hoc cuts to spending, which may impair the productivity of the economy in the long-run.

With the 'twin-deficits' (Fiscal and Current Account) under control, the RBI adopted the recommendations of Dr. Urjit Patel Committee Report in January 2014. The recommendations included adopting headline Consumer Price Index (CPI) as the nominal anchor for Monetary Policy regime and suggested a disinflationary 'glide-path' (bringing down inflation to 8% by January 2015 and 6% by January 2016). The operative framework to ensure consistency with the broad policy theme included introduction of Term Repos of varying maturities and Open Market Operations (OMOs) being linked solely to liquidity management. CPI inflation which was above 10% (y-o-y) till November 2013 finally fell below its double digit mark to 9.87% (y-o-y) for the month of December 2013 and continued to ease thereafter, and core CPI inflation had trended down to below 8% in February 2014.

Against such a backdrop, most banks have had to manage productivity and efficiency levels through liquidity and resource mobilisation strategies that proactively factor in the changing market conditions.

Given weak growth, manageable Current Account Deficit, reasonably stable currency and moderating inflation as indicated by data over the last couple of months, no significant tightening is expected over the next few quarters. With the Government of India's commitment to contain Fiscal Deficit below 4.6%, low GDP growth (4.7% for FY 2013-14), coupled with possible achievement of a disinflationary glide path, the macro-economic environment may provide headroom for policy action with a focus on stimulating growth.

BANK'S PERFORMANCE DURING 2013-2014

Business Performance

Despite the tough operating environment that prevailed through most part of the financial year, the Bank's Net Profit, after considering all expenses and necessary Provisions and Contingencies, rose by 32.68% to Rs.14080.200 millions, as against Rs.10611.800 millions in the previous year. The Operating Profit (before Depreciation and Provisions and Contingencies) was higher at Rs.26941.100 millions as against Rs.19128.900 millions in the previous year, a rise of 40.84%.

Core earnings of the Bank through Net Interest Income improved by 29.46% to Rs.28907.100 millions from Rs.22328.600 millions. Yield on Advances dropped by 21 bps at 13.56%, but Cost of Deposits showed a sharper decrease of 32 bps at 8.17%, helping enhance the margins. Net Interest Margin (NIM) improved to 3.71% during the year, as compared with 3.43% in 2012-13.

Fee and Miscellaneous Income during the year was Rs.18905.300 millions, as compared to Rs.13629.600 millions in the previous year, showing a strong growth of 38.71% on a y-o-y basis. Increase in Core Fee Income such as Commission, Exchange, Fees on distribution of third-party products and earnings from Foreign Exchange business, etc. was equally robust at Rs.16097.200 millions as against Rs.12393.400 millions, registering 29.89% growth.

The Bank expanded its branch network rapidly to reach 602 branches, as against 500 at the beginning of the year. Revenue per employee during the year remained steady at Rs.3.100 millions.

Quality of the Bank's assets was stable, with Net Non-Performing Assets (Net NPAs) at 0.33% at March 31, 2014 as against 0.31% the previous year. Provisioning Coverage Ratio (PCR) was maintained at a satisfactory level of 70.35%, compared with 70.13% in the previous year.

During the year, the Bank allotted 27,68,778 shares, pursuant to the exercise of Options under its Employees Stock Option Scheme, 2007. An aggregate of 3,10,18,700 Options, comprising 5.90% of the Bank's equity capital, have been granted under the Scheme.

During the year, the Bank has received the IBA Award for 'Best Use of Technology in Training and eLearning' amongst Private Sector Banks, ACI Excellence Award 2014 for Operational Excellence, Top Green IT Enterprise Award 2013, Top 100 CISO Award 2014, Infosec Maestros Award 2014 in recognition of the Information Security projects implemented by the Bank, Customer Management and, Business Intelligence Award in the Small Banks category and the VMWARE Award for virtualization of critical business applications.

Financial Restructuring and Reconstruction Group

All activities relating to recovery of non-performing loans and restructuring of stressed assets are handled by the Financial Restructuring and Reconstruction Group (FRRG). The role of FRRG has assumed importance, given the challenging credit environment faced by banks in India during the past few years.

The Bank has actively utilized the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for recovering its dues, wherever considered appropriate. The Bank is now a permanent member of the Corporate Debt Restructuring

Forum, so as to efficiently handle restructuring of viable businesses in coordination with other lenders.

During the year, the Bank recovered an amount of Rs.357.200 millions in written-off accounts (Previous Year: Rs.148.000 millions). The Bank's Provision Coverage Ratio is now at 70.35% (Previous Year 70.13%). The Net NPAs of the Bank stood at 0.33% of the Total Advances (Previous Year: 0.31%), while the ratio of Gross NPAs as percentage of Total Advances is 1.12% (Previous Year: 1.03%).

BANKING OPERATIONS

The Bank has strengthened the policy framework on 'Know Your Customer' (KYC) norms and 'Anti Money Laundering' (AML) measures from time to time, in line with the policies of Reserve Bank of India. The Bank has implemented a simplified procedure of 'Know Your Customer' which will benefit lower income group persons to open accounts with minimal documentation.

The Bank had implemented a state-of-the-art Workflow and Imaging System during the year 2009-10. The System has been implemented in the Account Opening process, automate the Fixed Deposits opening and renewals, Trade Finance-related processing, Third Party products sales operations and centralisation of Branch Expenses processing. The plan is to migrate further processes on to the platform as per the operational needs.

The System enables faster turnaround times, movement of work from branch locations across the country to the Central Operations Unit in real time, thus reducing the time it took for physical forms to arrive through courier. This has helped in freeing up manpower at the branches to tend to customer service as well as help provide online status of processing of customer requests / new applications.

As mandated in RBI directives, the Bank has undertaken review of risk categorisation of all customers' accounts.

The Bank is a member of Banking Codes and Standard Board of India (BCSBI), which was set up to ensure that banks in India adhere to a voluntary Code, which sets minimum standards for fair treatment to customers availing of banking services. The Bank has made a commitment to adhere to all the provisions of the Code prescribed by BCSBI. The Bank has taken steps to implement the provisions of the Code of Commitment to the Customers (Individuals). The Code is displayed at all the branches and the same is also posted on Bank's website in thirteen languages.

The Bank similarly has also adopted the 'Code of Commitment to Micro and Small Enterprises' (MSE code) issued in June, 2008 for customers belonging to Micro and Small Enterprises segment. This Code was further revised in 2012 by BCSBI and duly approved by the Board of Directors. The MSE Code sets the minimum standards of banking practices and explains how to deal with these customers in day to day operations and in times of financial difficulty.

The Bank has also formulated the Policy on 'Financing to Micro, Small and Medium Enterprises', and the same is made available on the Bank's website.

Centralized clearing has been implemented in Ahmedabad, Bengaluru, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Delhi, Goa, Hyderabad, Jaipur, Jodhpur, Kochi, Kolkata, Lucknow, Ludhiana, Mumbai, Nagpur, Pune, Salem, Surat, Thiruvananthapuram, Udaipur, Vadodara and Vishakhapatnam for quicker and efficient processing. It will be the Bank's constant endeavour to bring more centres under Centralised Clearing.

The Bank has also started participating in NACH (National Automated Clearing House) transactions both for Debit and Credit (ECS) at Mumbai, as also Aadhar-Based Payment System (ABPS) transactions through NPCI.

Cheque Truncation System (CTS), which was implemented in New Delhi by RBI, was operationalised in March 2008 and has been fully stabilised and the Bank is participating in clearing through CTS. In FY 2011-12, the Bank had stabilised CTS operations in Chennai, Bengaluru and Coimbatore through National Payment Corporation of India (NPCI). During the year 2012-13, the Bank successfully implemented CTS operations in Chandigarh, Kolkata and Ludhiana. During 2013-14, the Bank successfully implemented CTS operations in Mumbai and also operationalized grid clearing for 18 locations connected to Mumbai grid. 102 locations are covered under grid clearing through their three CTS centers at Mumbai / Chennai / Delhi, as on March 31, 2014.

The Bank has improved internal controls and compliance through the following:

• Separate and independent Compliance function has been set up for Bank-wide compliance,

• Instituting of the Vigilance function,

• Expenses management software has been deployed at all branches for facilitating cost control,

• Standard Operating Procedures have been defined for processes at branches to ensure consistency of delivery with expanding branch network,

• Branch Monitoring Unit is operative for regular monitoring of branch operations,

• Voucher verification process has been operationalised for checking all the entries posted by the branches, and

• The Process Adherence and Quality function has been operationalised for attaining uniformity in processes followed by branches, to minimise operational risk.

The Bank has revised and adopted a 'Comprehensive Policy', in pursuance of RBI advices, on settlement of claims in respect of deceased depositors. The policy covers all types of deposits, and has simplified the procedure for settlement and forms are provided on Website.

The Bank has adopted the 'Best Practice Code', relating to transaction processing, with the objective of documenting the procedures in line with national and international best practices.

The Bank has put in place a 'Deposit Policy' and a 'Fair Practice Code'. While the former outlines the guiding principles in respect of various products of the Bank, the terms and conditions governing the operations of the accounts and the rights of depositors, the Fair Practice Code is a voluntary code establishing standards to be followed by all their branches in their dealings with the customers.

The Bank has framed the 'Citizen's Charter' to promote fair banking practices and to give information in respect of various activities relating to customer service.

The Bank has put in place 'Compensation Policy' as part of the commitment to customers to compensate them in case of the Bank being unable to meet the service levels committed to the customers. The main objective of the policy is to establish a system whereby the Bank shall compensate the customer for any direct and actual loss by way of internal loss / payment of charges by customer due to deficiency in service, to the extent mentioned in the policy. The policy is based on principle of transparency and fairness in dealings with customers.

The Bank has framed the 'Unclaimed Deposit Policy' based on RBI guidelines with objective of classification of unclaimed deposits and setting up the grievance redressal mechanism for quick resolution of complaints and record-keeping

Corporate and Global Markets Operations (CGMO)

Corporate and, Global Market Operations (CGMO), which manages the operations related to Trade Services, Cross Border Remittances, Supply Chain Finance, Global Markets, Cash Management Services, Payments, Depository and Capital Markets and servicing of all clients across both the Corporate and Retail segments, continued to increase its focus on operational efficiency, proactive risk management and client-focused initiatives.

CGMO led transformational process re-engineering in Global Remittances, Bank Guarantees and Client Servicing, in addition to consolidation and centralization of complex functions. The Bank is among the market leaders in handling assignments of Bankers to the Issue, Tea Trade Settlements, and has seen significant growth in volumes relating to Depository Operations. In all, over 100 change projects were successfully implemented to support business initiatives and increase operational efficiency, all of which also improved the client experience.

CGMO continued in its journey towards 'Continuous Improvement' with the objective of building a mindset of continuous improvement, and to deliver year-on-year efficiency benefits. This program focuses on increasing 'Client Delight', 'Empowerment' and 'Rewards and, Recognition'. As part of this initiative, 5S has been implemented across its processing centers, over 450 process improvements were initiated and implemented by staff themselves and a training program on continuous improvement was rolled out for all staff.

CGMO focuses on managing Risk proactively and conducts regular risk reviews across all its processing centres. Risk monitoring activities were also centralized, providing better visibility and control. Advanced Risk Awareness sessions were conducted for all staff, keeping them updated on the latest trends in Risk.

CGMO is currently leading projects to re-platform the Treasury and Market Risk Management Systems for the Global Markets Group, the Trade System and Currency Derivative Systems. State-of-the-art systems have been identified after a detailed evaluation process.

The Treasury System, which will be capable of handling high volumes of complex Global Market products, is under implementation. Further, commensurate with the Bank's plans to grow its Treasury and Derivatives products, and with a view to control and manage related risks effectively, a suitable Market Risk Management system has also been finalized for implementation. All these systems will significantly boost capabilities in these product segments and offer clients with world class products and services.

KEY HIGHLIGHTS:

• Hired quality manpower (leaders and achievers) to lead the Bank's business growth. The Bank used diversified hiring sources, namely, Employee Referral schemes, Job Portals, Placement Agencies, Campus Hiring and Tie-ups with agencies to work on Hire-Train-Deploy model to identify and hire appropriate talent. The Bank also employed assessment tests and multi-layered interviews to recruit the right resources. In line with the business objectives, the manpower strength increased to 15,590 employees from 11,502 employees a year ago.

• The Bank's learning interventions aimed at equipping employees with desired functional / behavioral competencies to enhance business success. During FY14, the Bank conducted 430,000 learning man-hours for over 70,000 participants through well-designed classroom and e-learning initiatives. Several learning programs in areas of Performance Management, Leadership Development, Managerial Effectiveness, Sales Processes, Communication and Negotiation Skills, Banking Products and Operational Processes were conducted during the year. E-learning initiatives comprising online course modules and assessment tests offered standardized and cost-effective learning solutions to the employees.

• A robust Online Performance Management System based on 'SMART Goal-setting' continues to run successfully across the Bank. The Performance Management processes (Goal-setting, Mid-year Review, Annual Performance Review) help to accurately outline employee performance objectives, engage with employees, review performance, recognize and reward based on tangible performance, identify and nurture leaders to spearhead business growth. The annual performance appraisal for FY13 was executed in alignment with the Bank's objective of rewarding performance against goal achievements. Mid-year Performance Review for FY14 was used as a platform by the Line Managers and HR to analyze performance, provide developmental feedback and develop performance road-maps for employees to facilitate achievement of their annual 'SMARTs'.

• The Bank's Compensation Policy is based on the philosophy of 'Pay-for-Performance'. Compensation policies of the Bank are completely aligned to the regulatory compensation guidelines. The key objectives include benchmarking employee compensation with market salaries for various job positions, paying for 'position, performance and, person', maintaining an optimal balance between fixed and variable pay, building long-term employee ownership and association through Employee Stock Options.

• Several Employee engagement initiatives were pursued to connect and bond with employees, understand employee problems and seek remedials. Quarterly webcasts by the MD and, CEO, Branch visits by HR and Line Managers, Skip-level meetings across the Business Units, Annual Reward and Recognition programs helped to connect with employees. Employee recreation programs as business off-sites, team get-togethers, sports, festivals, etc. helped to build enthusiasm and creativity at the work-place. Skip-level CET meeting was initiated to involve functional heads to collect business insights for developing the Bank's business plans. 'My idea' an ideation platform, continues to generate innovative ideas for business process improvement and enhancing customer delight. The Bank also launched a 'Workplace health and safety policy' for building a safe and secure work environment.

• Technology drives HR Operational Processes. There was seamless management of all Employee life cycle HR processes relating to Onboarding, Attendance, Leave, Payroll, Confirmations, Loans, Mediclaim, Gratuity, Exits, F&,F, etc. The focus has been on responsiveness towards end-user needs by ensuring better TATs, error-free and proactive service delivery.

• The Bank pursues values of 'Discipline and Compliance' to create an amiable workplace where employees can actualize their potential. The Bank espouses an adherence to the Code of Conduct, which clearly outlines the desired employee professional and personal conduct. Any deviation from the acceptable norms pertaining to breach of employee integrity and non- conformance to the Bank's Code of Conduct is treated as a deviation resulting in an appropriate action.

The Bank realizes the importance of its human capital in achieving its business ambition. In pursuance of the Bank's growth imperatives, HR's strategic agenda remains to delight employees by offering a fulfilling career, work-life balance, market-linked compensation and, employee development through several benchmark HR practices.

CONTINGENT LIABILITIES

Particulars	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Claims against the Bank not acknowledged as debts	5358.256	4308.911
Liability on account of outstanding Forward Exchange Contracts	784912.124	794386.551
Liability on account of outstanding Derivatives Contracts	453916.266	295401.471
Guarantees given on behalf of constituents
- In India	185023.314	193810.090
- Outside India	--	--
Acceptances, Endorsements and Other Obligations	48832.684	43621.857
Other Items for which the Bank is contingently liable	--	17500.000
Total	1478042.644	1349028.880

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED SEPTEMBER 30, 2014

(Rs. In Millions)

Sr. No.	Particulars	Quarter ended 30.09.2014 (Unaudited)	Quarter ended 30.06.2014 (Unaudited)	Half year 30.09.2014 (Unaudited)
1.	Interest Earned	23787.600	22973.100	46760.700
	(a)+(b)+(c)+(d)
(a)	Interest / Discount on Advances / Bills	19089.200	18373.800	37463.000
(b)	Income on Investments	4112.700	4113.300	8226.000
(c)	Interest on balances with Reserve Bank of India and other interbank funds	583.700	484.600	1068.300
(d)	Others	2.000	1.400	3.400
2.	Other Income	5582.700	5763.700	11346.400
3.	Total Income (1+2)	29370.300	28736.800	58107.100
4.	Interest Expended	15456.500	14966.500	30423.000
5.	Operating Expenses	6667.100	6278.300	12945.400
(i)	Employees Cost	2393.100	2202.500	4595.600
(ii)	Other Operating Expenses	4274.000	4075.800	8349.800
6.	Total Expenditure (4+5) Excluding Provisions and Contingencies	22123.600	21244.800	43368.400
7.	Operating Profit Before Provisions and Contingencies (3-6)	7246.700	7492.000	14738.700
8.	Provisions (other than tax) and Contingencies	732.000	1104.000	1836.000
9.	Exceptional items	--	--	--
10.	Profit(+) / Loss(-) from Ordinary Activities before Tax (7-8-9)	6514.700	6388.000	12902.700
11.	Tax Expense	2212.700	2177.400	4390.100
12.	Net Profit (+) / Loss (-) from Ordinary Activities after Tax (10-11)	4302.000	4210.600	8512.600
13.	Extraordinary items (net of tax expense)	--	--	--
14.	Net Profit for the period (12-13)	4302.000	4210.600	8512.600
15.	Paid up Equity Share Capital (Face Value: Rs.10/- each)	5282.900	5263.400	5282.900
16.	Reserves excluding revaluation reserves	--	--	--
17.	Analytical Ratios	--	--	--
(i)	Percentage of shares held by Government of India	Nil	Nil	Nil
(ii)	Capital Adequacy Ratio (%)
	Basel III	12.96	13.11	12.96
(iii)	Earnings per share - (Basic and Diluted) (Rs.)
a)	Basic EPS before / after Extraordinary items (not annualized)	8.16	8.01	16.16
b)	Diluted EPS before / after Extraordinary items (not annualized)	8.02	7.88	15.89
(iv)	NPA Ratios
a)	Gross NPA	6545.400	6544.200	6545.400
	Net NPA	1959.000	1955.600	1950.000
b)	Gross NPA (%)	1.08	1.11	1.08
	Net NPA (%)	0.33	0.33	0.33
c)	Return on Assets (%) (annualized)	1.88	1.92	1.90
18.	Public Shareholding
	- No. of Shares	448193933	446252676	448193933
	- Percentage of Shareholding	84.87	84.81	84.87
19.	Promoters and Promoter Group Shareholding
a)	Pledged / Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of total share capital)	Nil	Nil	Nil
b)	Non-encumbered
	- Number of Shares	79899984	79899984	79899984
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
	- Percentage of Shares (as a % of total share capital)	15.13	15.19	15.13

Notes:

1. There has been no material change in the accounting policies adopted during the quarter and half year ended September 30, 2014 as compared to those followed for the year ended March 31, 2014.

2. The working results for the quarter and half year ended September 30, 2014 have been arrived at after considering provision for standard assets including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions.

3. The above financial results for the quarter and half year ended September 30, 2014 were subjected to a "Limited Review" by the Statutory Auditors of the Bank. A clean report has been issued by them thereon. These financial results were reviewed by the Audit Committee and subsequently have been taken on record and approved by the Board of Directors at its meeting held on October 13, 2014.

4. RBI master circular dated July 01, 2014 on Basel III Capital Regulations contains guidelines on certain Pillar 3 disclosure requirements that are to be made along with the publication of financial results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link:
http://www.indusind.com/content/home/important-links/regulatory-disclosures-section.html

The Pillar III disclosures have not been subjected to the “Limited Review”.

5. During the quarter and half year ended September 30, 2014, the Bank allotted 19,41,257 shares and 26,47,433 shares respectively pursuant to the exercise of stock options by certain employees.

6. Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period / year classification.

SUMMARISED BALANCE SHEET

(Rs. In Millions)

	As on 30.09.2014 (Unaudited)
CAPITAL AND LIABILITIES
Capital	5282.900
Employee Stock Options Outstanding	124.400
Reserves and Surplus	93916.100
Deposits	659960.900
Borrowings	133188.300
Other Liabilities and Provisions	30422.900
TOTAL	922895.500
ASSETS
Cash and Balances with Reserve Bank of India	33210.200
Balances with Banks and Money at Call and Short Notice	37599.300
Investments	214605.600
Advances	599313.400
Fixed Assets	10871.300
Other Assets	27295.700
TOTAL	922895.500

SEGMENT REPORTING FOR THE QUARTER ENDED SEPTEMBER 30, 2014

(Rs. In Millions)

Particulars	Quarter ended 30.09.2014 (Unaudited)	Quarter ended 30.06.2014 (Unaudited)	Half year 30.09.2014 (Unaudited)
(a) Segment Revenue
i) Treasury Operations	6417.500	6343.900	12761.400
ii) Corporate / Wholesale Banking	9952.700	9927.200	19879.900
iii) Retail Banking	15838.700	15585.100	31423.800
iv) Other banking Business	70.500	61.700	132.200
Total	32279.400	31917.900	64197.300
Less : Inter-segment Revenue	(2909.100)	(3181.100)	(6090.200)
Total Income
(b) Segment Results
i) Treasury Operations	619.200	795.800	1415.000
ii) Corporate / Wholesale Banking	2128.300	2101.200	4229.500
iii) Retail Banking	4783.600	4854.400	9638.000
iv) Other banking business	21.300	19.200	40.500
Total	7552.400	7770.600	15323.000
Unallocated Revenue	--	--	--
Unallocated Expenses	(305.700)	(278.600)	(584.300)
Operating Profit	7246.700	7492.000	14738.700
Less: Provisions & Contingencies	(732.000)	(1104.000)	(1836.000)
Net Profit before tax	6514.700	6388.000	12902.700
Taxes including deferred Taxes	(2212.700)	(2177.400)	(4390.100)
Extraordinary Profit / loss	--	--	--
Net Profit	4302.000	4210.600	8512.600
c) OTHER INFORMATION:
Segment Assets
I) Treasury Operations	238355.300	236594.000	238355.300
ii) Corporate / Wholesale Banking	253870.500	228324.300	253870.500
iii) Retail Banking	399360.800	410747.500	399360.800
iv) Other banking business	--	--	--
Unallocated assets	31308.900	27883.100	31308.900
Total Assets	922895.500	903548.900	922895.500
Segment Liabilities
I) Treasury Operations	136929.400	145240.100	136929.400
ii) Corporate / Wholesale Banking	358705.700	350161.300	358705.700
iii) Retail Banking	310320.000	295766.000	310320.000
iv) Other banking business	--	--	---
Unallocated liabilities	17617.000	17606.200	17617.000
Capital & Other Reserves	99323.400	94775.300	99323.400
Total Liabilities	922895.500	903548.900	922895.500

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.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
-- PROFITABILITY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		68

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.