MIRA
INFORM REPORT
|
Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
BANK OF |
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|
|
Representative Office : |
Express Towers, Nariman Point, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
06.04.1964 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.9853.492 Millions |
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FCRN No.: |
F00689 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB08227C |
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|
Legal Form : |
Foreign Registry Bank |
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Line of Business
: |
Subject engaged in Treasury and Corporate Banking. |
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|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
|
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 180000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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|
Comments : |
Subject is a well-established and reputed Bank having fine track
record. The rating take into consideration Banks strong financial risk profile
and strong liquidity position of the bank. Trade relations are reported as fair. Business is active. Payments 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund manager
Jim Chanos has been keenly following the political and economic development in
the dragon economy and has figured out something that is quite worrying. He is
of the view that the Chinese economy could be heading toward trouble on account
of new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period with
an annualized return of 20 % ! Equities came in second with annualized return
of 15.5 % ! However, while these returns may seem mouthwatering, the fact is
that the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long term issuer rating: AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest credit risk. |
|
Date |
08.11.2013 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON CO-OPERATIVE (91-22-66323000 / 22852882)
LOCATIONS
|
Registered Office : |
Located at United State of America |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
|
|
|
Representative Office : |
Express Towers, Nariman Point, P. O. Box 11506, Mumbai – 400021,
Maharashtra, India |
|
Tel. No.: |
91-22-66323000 / 22852882 |
|
E-Mail : |
|
|
|
|
|
Branch Office: |
Prestige Meredian, M.G. Road, Bangalore – 560001, Karnataka, India |
MANAGEMENT
As on 31.03.2013
|
Name : |
Mr. Kaku Nakhate |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Kumar Shah |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Subject engaged in Treasury and Corporate Banking. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|
|
|
|
Bankers : |
Reserve Bank of India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
|
|
|
Ultimate Controlling
Enterprise * : |
· Bank of America Corporation |
|
|
|
|
Subsidiaries : |
·
Banc
of America Securities (India) Private Limited (BASIL) ·
Bank
of America Singapore Limited · Banc of America Securities Asia Limited |
|
|
|
|
Fellow Subsidiaries : |
·
BA
Continuum India Private Limited ·
DSP
Merrill Lynch Limited · DSP Merrill Lynch Capital Limited · Merrill Lynch, Pierce, Fenner and Smith incorporated |
|
Note: *
In accordance with RBI Master Circular (DBOD.BP.BC.No.14/21.04.018/2012-13
dated July 2, 2012) on 'Disclosure in Financial Statements – Notes to Accounts', where
there is only one entity/person in any category of related parties, the Bank
has not disclosed any details pertaining to that related party other than the
relationship with that related party. |
|
CAPITAL STRUCTURE
As on 31.03.2013
CAPITAL
|
|
Particulars |
31.03.2013 Rs. In Millions |
|
|
|
|
|
I |
Amount
of deposit kept with Reserve Bank of India under Section 11(2)(b)(ii) of the
Banking Regulation Act, 1949 |
9070000 |
|
|
|
|
|
II |
Amount brought in as start-up capital |
2.000 |
|
|
Tier
I Capital augmented by Head Office |
9851.492 |
|
|
TOTAL |
9853.492 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
(INDIA
BRANCH)
|
CAPITAL AND LIABILITIES |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Capital |
9853.492 |
9853.492 |
9853.492 |
|
Reserves and Surplus |
35306.073 |
30612.753 |
25358.165 |
|
Deposits |
73779.951 |
59648.638 |
59689.055 |
|
Borrowings |
57133.353 |
53143.704 |
19402.077 |
|
Other Liabilities and Provisions |
8298.607 |
8520.449 |
7619.785 |
|
|
|
|
|
|
TOTAL |
184371.476 |
161779.036 |
121922.574 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and balances with Reserve Bank of India |
4241.056 |
4196.962 |
5148.245 |
|
Balances with banks and money at call and short notice |
7288.155 |
2424.095 |
291.662 |
|
Investments |
88335.084 |
82258.155 |
48605.942 |
|
Advances |
76230.005 |
62053.674 |
58591.405 |
|
Fixed Assets |
489.626 |
422.786 |
310.970 |
|
Other Assets |
7787.550 |
10423.364 |
8974.350 |
|
|
|
|
|
|
TOTAL |
184371.476 |
161779.036 |
121922.574 |
PROFIT & LOSS
ACCOUNT
(INDIA
BRANCH)
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
|
INCOME |
|
|
|
|
|
Interest earned |
13351.642 |
11131.212 |
7252.873 |
|
|
Other income |
4735.116 |
5078.777 |
5809.858 |
|
|
TOTAL |
18086.758 |
16209.989 |
13062.731 |
|
|
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
|
Interest expended |
5731.336 |
4238.846 |
1975.332 |
|
|
Operating expenses |
4306.690 |
4054.998 |
3585.313 |
|
|
Provisions and Contingencies |
3355.412 |
2661.557 |
3275.732 |
|
|
TOTAL |
13393.438 |
10955.401 |
8836.377 |
|
|
|
|
|
|
|
|
PROFIT |
|
|
|
|
|
Net profit for the year |
4693.320 |
5254.588 |
4226.354 |
|
|
Profit/(loss) brought forward |
3940.941 |
0.000 |
0.000 |
|
|
TOTAL |
8634.261 |
5254.588 |
4226.354 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to Statutory Reserves Amount retained in India for meeting Capital to Risk-weighted Asset ratio |
1173.330 |
1313.647 |
1056.589 |
|
|
(CRAR) |
27.456 |
0.000 |
0.000 |
|
|
Transfer to Revenue and Other Reserves |
179.440 |
0.000 |
3169.765 |
|
|
Balance carried over to Balance Sheet |
7254.035 |
3940.941 |
0.000 |
|
|
TOTAL |
8634.261 |
5254.588 |
4226.354 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
9853.492 |
9853.492 |
9853.492 |
|
Reserves & Surplus |
25358.165 |
30612.753 |
35306.073 |
|
Net
worth |
35211.657 |
40466.245 |
45159.565 |
|
|
|
|
|
|
long-term borrowings |
19402.077 |
53143.704 |
57133.353 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
19402.077 |
53143.704 |
57133.353 |
|
Debt/Equity
ratio |
0.551 |
1.313 |
1.265 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Interest earned |
7252.873 |
11131.212 |
13351.642 |
|
|
|
53.473 |
19.948 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Interest earned |
7252.873 |
11131.212 |
13351.642 |
|
Profit |
4226.354 |
5254.588 |
4693.32 |
|
|
58.27% |
47.21% |
35.15% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
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 |
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 |
Yes |
|
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:- |
07/04/2014 |
|
|
||||||
|
|
Lodging No.:- |
ITXAL/771/2014 |
Filing Date:- |
07/04/2014 |
Reg. No.:- |
ITXA/840/2014 |
Reg. Date:- |
29/04/2014 |
|
|
|
Petitioner:- |
DIRECTOR OF INCOME TAX(IT)-II |
Respondent:- |
BANK OF AMERICA N.A |
|
|
|
Petn.Adv.:- |
TEJVEER SINGH MASTAN SINGH (I3678) |
|
|
|
District:- |
MUMBAI |
|
|
|
Bench:- |
DIVISION |
|
|
|
|
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|
|
|
Next Date:- |
04/08/2014 |
Stage:- |
|
|
|
|
Coram:- |
ACCORDING TO SITTING LIST |
|
|
|
|
ACCORDING TO SITTING LIST |
|
|
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
BACKGROUND
The
financial statements for the year ended March 31, 2013 comprise the accounts of
the India branches of subject which is incorporated in the United States of
America with limited liability.
CONTINENT
LIABILITY:
(Rs.
In Millions)
|
PARTICULARS
|
31.03.2013 |
31.03.2012 |
|
|
|
|
|
Claims against the Bank not acknowledged as Debts (including tax related matters) |
854.806 |
458.116 |
|
Liability for partly paid investments |
0.000 |
0.000 |
|
Liability on account of outstanding forward exchange contracts |
1738.719 |
2123994.203 |
|
Liability on account of outstanding derivative contracts |
2479.169 |
3304274.652 |
|
Guarantees
given on behalf of constituents (a)
in India (b) outside India |
11729.204 10727.648 |
10286.182 3153.301 |
|
Acceptances, endorsements and other obligations |
7242.682 |
9533.517 |
|
Other
items for which the Bank is contingently liable |
|
|
|
–
Committed Lines of credit |
8587.050 |
7968.633 |
|
– Bills
re-discounted |
0.000 |
3695.563 |
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.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
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.