|
Report No. : |
349456 |
|
Report Date : |
10.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
THE SARASWAT CO-OPERATIVE BANK LIMITED |
|
|
|
|
Registered
Office : |
Ekanath Thakur Bhavan, 953, Appasaheb Marathe Marg,
Prabhadevi, Mumbai - 400 025, Maharashtra |
|
Tel. No.: |
91-22-66005555 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
14.09.1918 |
|
|
|
|
No. And date of RBI License: |
ACD-MH-220-P-Dated-27.08.1980 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1893.010 Million |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
Commercial Bank in Co-operative Sector. |
|
|
|
|
Line of Business
: |
Banking Activities. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Saraswat Co-operative Bank is an urban co-operative banking
institution based in Maharashtra, India and operating as a co-operative bank
since 1918. In 1988, the bank was conferred with “scheduled” status by Reserve
Bank of India. It is a well-established and reputed bank having good track. The bank is the first co-operative Bank to provide Merchant Banking
Services and had received a permanent license to deal in foreign exchange in
1978. The Bank had gained a strong foundation in terms of its membership,
resources, assets and profit. Further, rating takes into consideration banks long and established
track record of business operations supported by its healthy reserves level
and well spread banking network. Moreover, rating also considers director of the bank to be experienced
and knowledgeable businessmen. Trade relations are fair. Business is active. Payment are reported to
be regular and as per commitments. In view of aforesaid, 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 |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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
31-03-2015.
INFORMATION DENIED
Management non co-operative (91-22-24671162/ 66005555)
LOCATIONS
|
Registered Office : |
Ekanath Thakur Bhavan, 953, Appasaheb Marathe Marg,
Prabhadevi, Mumbai - 400 025, Maharashtra, India |
|
Tel. No.: |
91-22-66005555 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1: |
Mittal Court, 'A'
Wing, First Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
E-Mail : |
|
|
Tel. No.: |
91-22-3682000/ 43682024 |
|
|
|
|
Customer Service
Centre: |
Building No. 2 , Topiwala Wadi, Swami Vivekanand Road, oregaon West, Mumbai – 400062, Maharashtra, India |
|
|
|
|
Microfinance and
SME: |
Phatak Building, 1st floor, 66, Nehru Road, Vile Parle East, Mumbai – 400057, Maharadshtra, India |
|
Tel. No.: |
91-22-24671227 / 26126401 |
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. K. V. Rangnekar |
|
Designation : |
Vice-Chairman |
|
Qualification : |
M.A. |
|
|
|
|
Name : |
Mr. S. K. Banerji |
|
Designation : |
Managing Director |
|
Qualification : |
DBM, LL.M., FIBF |
|
|
|
|
Name : |
Mr. S. S. Shirodkar |
|
Designation : |
Director |
|
Qualification : |
Diploma Indl. Electronics , PGD in Management (w.e.f. 16th May, 2015) |
|
|
|
|
Name : |
Mr. H. M. Rathi |
|
Designation : |
Director |
|
Qualification : |
B. Com |
|
|
|
|
Name : |
Shri. G. E. Thakur |
|
Designation : |
Vice-Chairman (w.e.f. 28th November, 2014) |
|
Qualification : |
B.E (Civil), DFM |
|
|
|
|
Name : |
Shri S. N. Sawaikar |
|
Designation : |
Director |
|
Qualification : |
M.Com., DMA, C.A.I.I.B. |
|
|
|
|
Name : |
Mr. S. S. Sanzgiri |
|
Designation : |
Vice-Chairman upto 26th November, 2014 |
|
Qualification : |
B. A. |
|
|
|
|
Name : |
Mr. A. A. Pandit |
|
Designation : |
Director |
|
Qualification : |
B. Com, FCA, DBF |
|
|
|
|
Name : |
Mr. S. V. Saudagar |
|
Designation : |
Director |
|
Qualification : |
B. Com, FCA, DISA (w.e.f. 28.06.2008) |
|
|
|
|
Name : |
Dr. (Mrs.) Anuradha P. Samant |
|
Designation : |
Director |
|
Qualification : |
MBBS, (w.e.f. 30.08.2008) |
|
|
|
|
Name : |
Shri P. N. Joshi |
|
Designation : |
Director |
|
Qualification : |
M.A. |
|
|
|
|
Name : |
Mr. S. K. Sakhalkar |
|
Designation : |
Chairman (w.e.f. 10th April, 2015) |
|
Qualification : |
M.Com. PGD (IR), PGD (Comp. Sc.) |
|
|
|
|
Name : |
Shri N. G. Pai, |
|
Designation : |
Director ( w.e.f.11th July, 2014) |
|
Qualification : |
B.E. (Elect.) |
|
|
|
|
Name : |
Mrs. Padmashri M. M. Karnik |
|
Designation : |
Director (w.e.f. 24th April, 2015) |
|
|
|
|
Name : |
Shri S. S. Dawra |
|
Designation : |
Director |
|
Qualification : |
M.A., M.B.A., I.A.S. (Retired) |
|
|
|
|
Name : |
Shri H. M. Rathi |
|
Designation : |
Director |
|
Qualification : |
B.Com. |
|
|
|
|
Name : |
Shri S. B. Samant |
|
Designation : |
(Chairman upto 10th April, 2015) |
|
Qualification : |
B.Com., LL.M, F.C.A. |
KEY EXECUTIVES
|
Name : |
Mr. A. V. Sabnis |
|
Designation : |
Legal Advisors |
|
Qualification : |
LL.B |
|
|
|
|
Name : |
Mr. K. M. Naik |
|
Designation : |
Legal Advisors |
|
Qualification : |
B.A, LL.B |
|
|
|
|
Name : |
M/S. Little and Company |
|
Designation : |
Legal Advisors |
|
|
|
|
Name : |
Govind Desai Associates |
|
Designation : |
Legal Advisors |
|
|
|
|
Name : |
Shri S. N. Inamdar |
|
Designation : |
Legal Advisors |
|
Qualification : |
B.Com., LL.B |
|
|
|
|
Name : |
Mr. Shekhar Naphade |
|
Designation : |
Legal Advisors |
|
Qualification : |
B.A, LLB |
|
|
|
|
Name : |
Shri D. M. Chandgadkar |
|
Designation : |
Chief Executive Officer and Company Secretary |
|
Qualification : |
M.Com., LL.B., C.A.I.I.B., A.C.S. |
|
|
|
|
Name : |
Mr. A.S. Jain |
|
Designation : |
Chief General Manager |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities. |
|
|
|
|
Products : |
-- |
|
|
|
|
Brand Names : |
Not Divulged |
|
|
|
|
Agencies Held : |
Not Divulged |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
GENERAL INFORMATION
|
Suppliers : |
|
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|
||||||||||||||||||||||
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Customers : |
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||||||||||||||||||||||
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|
||||||||||||||||||||||
|
No. of Employees : |
Information declined by the management |
||||||||||||||||||||||
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|
|
||||||||||||||||||||||
|
Bankers : |
·
State Bank of ·
Bank of ·
HDFC Bank Limited ·
ICICI Bank Limited ·
Standard Chartered Bank Limited ·
Canara Bank ·
Wells Fargo Bank N.A.,
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Facilities : |
|
|
Auditors : |
|
|
Name : |
M/s Kulkarni and Khanolkar Chartered Accountants |
|
|
|
|
Memberships : |
- |
|
|
|
|
Collaborators : |
- |
|
|
|
|
Subsidiary: |
Saraswat Infotech Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 10000.000Million |
|
4,97,67,600 |
Preference Share Capital |
Rs. 10/- each |
Rs. 497.676 Million |
|
|
|
|
|
|
|
Total |
|
Rs.10497.676 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13,95,33,417 |
Equity Shares |
Rs. 10/- each |
Rs. 1395.334 Million |
|
4,97,67,600 |
Preference Share Capital |
Rs. 10/- each |
Rs. 497.676 Million |
|
|
|
|
|
|
|
Total |
|
Rs.
1893.010 Million |
Of the above held by:
|
Particular |
Amount |
|
|
|
|
Individual and other |
Rs. 1395.334 Million |
|
Total |
Rs. 1395.334
Million |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
CAPITAL & LIABILITIES |
|
|
|
|
Capital |
1893.010 |
1676.878 |
1269.093 |
|
Reserves
Fund and Other Reserve |
28445.696 |
24200.441 |
23033.450 |
|
Deposits
and Other Accounts |
271708.405 |
239395.103 |
211443.316 |
|
Borrowings |
6930.409 |
8205.621 |
4069.003 |
|
Bills
for Collection Being Bills Receivable As per contra |
23597.311 |
21613.779 |
19960.399 |
|
Branch
Adjustments |
0.000 |
115.909 |
6.730 |
|
Overdue
Interest Reserve on Loans and Advances |
1195.793 |
1105.785 |
1158.620 |
|
Interests
Payable |
1257.128 |
787.388 |
697.090 |
|
Other
Liabilities |
11346.301 |
11405.840 |
9282.026 |
|
Profit
and Loss |
1909.877 |
1478.927 |
1128.583 |
|
|
|
|
|
|
TOTAL |
348283.930 |
309985.671 |
272048.310 |
|
|
|
|
|
|
Contingent Liabilities |
29368.623 |
21562.623 |
18326.545 |
|
|
|
|
|
|
PROPERTY AND ASSETS |
|
|
|
|
Cash |
13618.584 |
13215.305 |
8699.541 |
|
Balances
with Other Banks |
31622.006 |
23873.897 |
10563.203 |
|
Money
at Call and Short Notice |
1371.918 |
726.215 |
1434.739 |
|
Investment
|
77351.153 |
78047.421 |
64439.983 |
|
Advances |
177981.240 |
154700.502 |
150234.150 |
|
Interests
Receivable |
1195.793 |
1105.785 |
1158.620 |
|
Bills
Receivable being Bills for Collection as per Contra |
23597.311 |
21613.779 |
19960.399 |
|
Branch
Adjustments |
9.805 |
0.000 |
0.000 |
|
Fixed
Assets |
9600.901 |
5412.431 |
5537.826 |
|
Other
Assets |
11846.650 |
11208.958 |
10002.454 |
|
Computer
Software |
88.297 |
80.056 |
0.004 |
|
Deferred
Amortization of Investments |
0.272 |
1.322 |
17.391 |
|
|
|
|
|
|
TOTAL |
348283.930 |
309985.671 |
272048.310 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
Interests on deposits, Borrowings etc. |
21039.623 |
17546.655 |
16160.264 |
|
Salaries and Allowances, Bonus, Gratuity, Provident Fund
Contribution etc. |
3161.750 |
2354.662 |
2175.114 |
|
Directors Sitting Fees |
3.555 |
4.265 |
1.750 |
|
Rent, Taxes, Insurance, Lighting etc. |
812.651 |
743.657 |
525.333 |
|
Law Charges |
4.767 |
4.395 |
3.744 |
|
Postage, Telegram and Telephone Charges |
59.218 |
52.312 |
51.820 |
|
Audit Fees (Statutory, Internal and Concurrent Auditors) |
35.488 |
31.809 |
32.185 |
|
Depreciation/ Amortization of Assets |
298.711 |
260.739 |
216.987 |
|
Printing, Stationery and Advertisements |
0.000 |
0.000 |
0.000 |
|
- Printing and Stationery |
42.293 |
45.155 |
41.455 |
|
- Advertisements |
82.687 |
82.026 |
66.219 |
|
|
|
|
|
|
Other Expenditure |
|
|
|
|
Repairs and
Maintenance of Assets |
98.212 |
80.028 |
68.576 |
|
IT Infrastructures Maintenance |
0.000 |
64.712 |
322.701 |
|
Banker’s Indemnity Insurance |
5.539 |
3.974 |
2.901 |
|
Premium Paid to DICGC |
246.972 |
212.763 |
194.832 |
|
Premium Paid to ECGC |
19.845 |
19.447 |
169.371 |
|
Cheque Processing Charges |
12.289 |
16.175 |
19.329 |
|
Leased Line Expenditure |
36.596 |
24.570 |
17.559 |
|
Travelling and Conveyance |
22.369 |
22.886 |
19.215 |
|
Security Services Charges |
197.280 |
156.852 |
115.546 |
|
Amortization of Investment |
236.383 |
239.207 |
213.843 |
|
Professional Fees |
28.146 |
21.279 |
25.358 |
|
Bank Charges |
6.883 |
6.727 |
101.681 |
|
Card issue and operating expenses |
221.016 |
148.939 |
66.362 |
|
Card Expenses |
12.082 |
13.093 |
10.910 |
|
Housekeeping Charges |
19.381 |
18.381 |
16.793 |
|
Sundries |
196.836 |
176.685 |
138.382 |
|
|
|
|
|
|
Provisions |
|
|
|
|
Provision for Depreciation on Investments |
327.018 |
50.760 |
0.000 |
|
Bad and Doubtful Debts Reserve |
108.969 |
2279.710 |
3163.171 |
|
Provision for Restructured Assets |
0.000 |
34.900 |
114.700 |
|
Contingent Provision
against Standard Assets |
112.630 |
5.165 |
16.531 |
|
|
|
|
|
|
Income Tax Expenses |
|
|
|
|
Current Tax |
362.500 |
841.000 |
1282.500 |
|
Deferred Tax |
427.930 |
(568.290) |
(970.679) |
|
Excess Provision for Tax of earlier years |
0.000 |
(2.523) |
0.000 |
|
Short Provision of Tax for earlier year |
82.757 |
0.000 |
0.000 |
|
|
|
|
|
|
Total
Expenses |
28322.375 |
24992.114 |
24294.010 |
|
|
|
|
|
|
Net Profit After
Tax and Before Exceptional Items |
1901.771 |
1475.724 |
1217.345 |
|
|
|
|
|
|
Exceptional Items |
0.000 |
4.787 |
96.434 |
|
|
|
|
|
|
Net Profit After Tax and Exceptional Items |
1901.771 |
1470.937 |
1120.911 |
|
|
|
|
|
|
Total
|
30224.147 |
26467.838 |
25511.355 |
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
Interest and Discount |
26876.066 |
23795.909 |
22905.072 |
|
Commission |
385.704 |
381.269 |
435.866 |
|
Exchange |
361.435 |
250.420 |
183.016 |
|
Profit on |
1480.083 |
1160.534 |
941.073 |
|
Dividend |
4.298 |
47.363 |
47.606 |
|
Other
Receipts |
|
|
|
|
Processing Fees |
288.779 |
251.115 |
294.925 |
|
Service Charges |
395.364 |
343.842 |
351.853 |
|
Recovery of Expenses |
11.304 |
11.444 |
11.681 |
|
Profit on Sale of Assets |
4.533 |
23.745 |
2.950 |
|
Acquirer's Fees and ATM Charges |
92.158 |
64.789 |
59.093 |
|
Miscellaneous Income |
72.056 |
57.595 |
28.070 |
|
|
|
|
|
|
Total
|
29971.780 |
26388.025 |
748.572 |
|
|
|
|
|
|
Excess Provision of Earlier Years Written Back |
20.046 |
14.448 |
1.259 |
|
Bad Debts Earlier Written Off, Now Recovered |
146.820 |
65.366 |
83.353 |
|
Excess Provision for Restructured Assets written back |
85.500 |
0.000 |
90.538 |
|
Excess Special Reserve Reversed |
0.000 |
0.000 |
75.000 |
|
|
|
|
|
|
Total
|
30224.147 |
26467.838 |
25511.355 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net Cash flows from operating activities |
6889.129 |
39.527 |
(1186.972) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
No |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
--- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATION
|
CASE DETAILS BENCH: BOMBAY PRESENTATION DATE: 19.01.2015 STAMPNO.:
CAFST/1582/2015
FILING DATE: 20.01.2015 REG. NO.: CAF/2506/2015
REG. DATE: 30.07.2015 Lodging No.:
APPL/358/2015 MAIN MATTER STAMPNO.:
FAST/4053/2012
REG. DATE: FA/353/2012
Act: C.P.C. –
(NON INTERLOCUTORY ORDER) |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
|
Letters of Credit |
7849.266 |
|
Guarantees |
4230.591 |
|
Forward
Sale/Purchase Contracts |
16936.920 |
|
Unclaimed Liabilities
under Depositor Education and Awareness Fund (DEAF) Scheme |
351.846 |
FIXED ASSETS:
· Leasehold Improvement
· Plant and Machinery
· Furniture and Fixture
· Computers
· Motor Cars
Background:
The company was incorporated in 1918 and provides a complete suite of corporate and retail banking products.
THE GLOBAL ECONOMY:
Global growth continued to be in a sluggish phase during FY 2014-15. Compared to the rest of the world, the US economy did well in terms of growth during the calendar year 2014. However, the US GDP contracted 0.7 per cent in the first quarter of 2015, owing to shipping delays, dollar dominance and a harsh winter. A stronger labor market and falling unemployment rate could result in healthier wage growth and inflation. However, the latest GDP data and signs of only a tepid rebound in the current quarter indicate that the timing of normalization of US Monetary Policy seems to have been pushed back.
As regards Eurozone, most of the Euro countries have showed contraction or a standstill in terms of growth. Overall growth stood at 0.3 per cent in the last quarter of 2014 and 0.4 per cent in Q1 of 2015. In order to spur the economy, the European Central Bank (ECB) has committed itself to a Quantitative Easing Program (QE) worth Euro 1.1 trillion through September 2016.
China is witnessing a gradual transition from an export to a domestic consumption driven economy, leading to a slowdown. With slowing economic growth, China has relaxed the amount of cash reserves that the banks are required to hold, thereby pumping money for its banks to lend.
Overall, it is an increasingly challenging scenario for the global economy. Concerns about the future of the European Union, increased uncertainty related to Middle East conflicts and oil price movements will also determine the course of the global economy in the coming year. As regards India, the overall macro-economic scenario makes it the preferred investment destination in emerging markets. Expected rating upgrade for India sometime in the future and paucity of investment opportunities in other emerging markets will keep the inflows robust. On the domestic front, lower Government borrowings and fiscal management efforts will keep the overall economy in good shape.
Indian Economy in FY
2014-15:
The GDP in India expanded by 7.3 per cent for FY 2014-15, in line with the initial forecast and marginally higher than the 6.9 per cent recorded in the previous year. Overall, the economy is seen recovering at a gradual pace. According to the numbers, the highest growth rate was reported for services at 10.1 per cent. The manufacturing sector expanded to 7.1 per cent, while the agriculture and allied sectors registered growth of only 0.2 per cent.
The financial year 2014-15 largely saw the macroeconomic fundamentals improving for the better on several rents viz. consumer inflation, Current Account Deficit (CAD), foreign portfolio flows, etc. On the global front too, they witnessed a sharp drop in the prices of crude oil and other commodities.
The key
macro-economic factors that impacted the Indian economy during FY 2014-15 were:
Sharp Decline in crude oil prices: Exploration of shale gas by countries like US and Canada as also weaker demand from Asian and European economies coupled with no production cuts from OPEC countries led to crude prices plummeting from as high as US $ 107.20 per barrel in the first quarter to below US $ 50 per barrel by the fourth quarter of FY 2014-15.
Moderation in inflation numbers: Lower international crude oil prices as well as reduction in food prices led to easing of inflation. Consumer Price Index (CPI), which was in the 9-10 per cent range in the preceding year has moderated to 4.87 per cent at present, while Wholesale Price Index (WPI) numbers which remained in the 6-9 per cent range have moved to negative territory.
Shift in Monetary
Policy stance: With consistent data readings pointing towards disinflationary
trends and slowing growth, the Reserve Bank of India shifted to an
accommodative Policy stance and cut the repo rate by 25 bps on two occasions
during the last quarter of FY 2014-15. The latest Policy statement i.e. during
June 2015 saw another 25 bps repo rate cut. However, the view remained hawkish
with RBI insisting that future course of action will be data dependent thereby
indicating a long pause on rate cut front from RBI.
Improvement in Fiscal Situation: The provisional numbers show the fiscal deficit at 4 per cent of GDP in FY 2014-15, an improvement over the revised estimate of 4.1 per cent of the GDP during FY 2014-15. The Government aims to achieve a 3 per cent medium term target by FY 2017-18.
Improvement in Current Account Deficit (CAD): The CAD numbers further improved during the year 2014-15, with latest CAD figure at 0.2 per cent of GDP in Q4 of FY 2014-15.
Shoring up of Foreign Exchange Reserves: Surge in financial inflows in excess of the financing requirement of CAD resulted in accretion of foreign exchange reserves (US $ 341.38 billion by March 2015).
Financial Markets:
Mirroring the improvement in various macro indicators and the euphoria of a newly elected reform oriented Central Government, equity markets touched an all-time high during FY 2014-15. The BSE and Nifty Sensex scaled to a peak of 30,000 and 9,000 respectively in March 2015.
Aided by low crude prices, CPI dropped sharply and remained in the comfort corridor of RBI projections. Lower Inflation numbers led RBI to cut the benchmark repo rate twice in the last quarter of FY 2014-15. This along with the Government’s resolve to contain fiscal deficit resulted in a drop in the fixed income yields. The 10-year benchmark ended at 7.74 per cent as on 31st March, 2015 vis-à-vis 8.80 per cent as on 31st March, 2014.
With huge inflow of Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII), particularly in the debt markets, the Rupee remained largely stable to close at 62.50 per US Dollar as on 31st March, 2015.
Overall Assessment:
The Indian macro-indicators are in much better shape than they were two years ago. Further positives are in the form of:
1. RBI’s resolve to maintain inflation within the targeted numbers.
2. The Government’s success in clearing key bills in the Parliament viz. Insurance Laws (Amendment) Bill, Companies (Amendment) Bill, Coal Mines (Special Provisions) Bill, Mines and Minerals Amendment Bill.
3. Clearing the initial hurdles for passing the Goods and
Services Tax (GST) Bill and some progress made in the Land Acquisition Bill.
The worrying factors include the uncertainties regarding the monsoon as also
the ability of Scheduled Commercial Banks to extend credit against the backdrop
of huge NPAs in their books. Data points out that credit growth in the banking
sector continues to be tepid in India. The March 2015 credit growth numbers are
the lowest in the past two decades. Global uncertainties viz. changing
expectations around the US Federal Reserve's (FED’s) future guidance and sharp
movements in crude prices will also impact the Indian economy.
MAJOR DEVELOPMENTS IN
THE BANKING AND FINANCIAL SECTOR IN INDIA
During the past year, several new policies and reforms have been introduced in the banking and financial sector which are as follows:
Agreement on Monetary
Policy Framework on Inflation Targeting: In a significant development, the
Government of India and the Reserve Bank of India, signed an agreement on
Monetary Policy framework, which is aimed at targeting inflation. Under the new
framework, the Consumer Price Index (CPI) has been targeted at 6 per cent by
January 2016, and further to 4 per cent with a band of +/- 2 per cent for FY
2016-17.
Setting up of Payment Banks and Small Finance Banks, to further financial inclusion by providing small saving accounts and payments/ remittance services, especially to the unorganized sector. The first set of bank licenses is expected to be issued by RBI, by the end of August 2015. bring most of the population under the insurance/ pension cover, that too in an affordable manner, the Government has announced affordable Insurance/ Pension Cover Schemes, as under:
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for Life Insurance Cover. Pradhan Mantri Suraksha Bima Yojana (PMSBY) for Accident /Accidental Death Cover. Atal Pension Yojana (APY) – Pension Scheme for individuals in the age group of 18-40 years.
Enactment of the Payment and Settlement Systems (Amendment) Bill 2014, with a view to providing sound legal basis for the regulation and supervision of payment systems in India.
Addressing Capital requirement of Public Sector Banks (PSBs) through approval of proposal allowing PSBs to raise capital from public markets by diluting of Government of India stake up to 52 per cent in a phased manner.
Effecting Liquidity Management Framework, under which banks are assured of access to liquidity of up to 1 per cent of Net Demand and Time Liabilities (NDTL) at fixed/ variable rates through overnight/term repos. Banks can also deploy surplus funds, if any, under fixed/variable rate reverse repos.
Strengthening of liquidity norms by introduction of Basel III norms for Scheduled Commercial Banks such as Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards and intra-day liquidity management tools.
Initiation of customer-friendly steps on operational front such as KYC simplification, guidelines for mobile banking transactions, Digital Life Certificates for pensioners, extension of time for RTGS as also steps for speedy credit
Dissemination and check on NPAs such as improving
procedures, setting timelines as well as monitoring mechanisms.
MAJOR DEVELOPMENTS IN
THE URBAN CO-OPERATIVE BANKING SECTOR
Several measures were
taken by the Reserve Bank of India during the year to address the issues/
challenges faced by the Urban Co-operative Banking (UCB) sector, details of
which are as under:
Setting up of a High Powered Committee, chaired by Shri R. Gandhi, Deputy Governor of RBI, to review the overall position of the Urban Co-operative Banking Sector and to delve upon the following issues:
Lines of businesses for UCBs that commercial banks undertake appropriate size up to which UCB can grow, without undue risk to the system
Criteria for allowing conversion by a UCB into a joint stock bank (both voluntary as well as mandatory) when enabling legal framework is in place Licensing of new UCBs as per the Malegam Committee Considering majority of voting in the hands of contributor of funds (Malegam Committee recommendations that 50 per cent in value of deposits should be held by voting members)
The Bank’s Managing Director, Shri S. K. Banerji, is also a member of this Committee.
Reduction in mandatory Statutory Liquidity Ratio (SLR) for Primary UCBs (scheduled as well as non-scheduled) from the extant 25 per cent to 21.5 per cent i.e. at par with Scheduled Commercial Banks.
· Permitting scheduled UCBs, fulfilling specified eligibility criteria, to participate in Liquidity Adjustment Facility (LAF).
· Permitting UCBs, which are financially Sound and Well Managed (FSWM) and CBS-enabled, to install onsite /offsite / mobile ATMs.
· Permitting FSWM UCBs to issue credit cards.
· Permitting Scheduled UCBs to provide online trading facility to their demat account holders.
· Permitting Scheduled UCBs to undertake Points of Presence (POP) services under National Pension System (NPS).
· Increasing quantum of gold loans that can be extended to customers with bullet repayment option, from the present Rs 0.100 million to Rs 0.200 million. On the other hand, RBI also issued certain regulatory norms for UCBs as below:
· Introduction of Information System (IS) audit.
· Direction to constitute a Special Committee of the Board of Directors for monitoring and following up fraud cases involving amounts of Rs 10.000 million and above exclusively. Creation of Deferred Tax Liability (DTL) on Special Reserve and inclusion of the entire Special Reserve for the purpose of computing Tier-I Capital.
· Instructions on membership of credit information companies by Co-operative Banks.
KEY ACHIEVEMENTS OF
THE BANK DURING FY 2014-15
The financial year 2014-15 was a challenging year for the banking industry, with stagnant credit growth and increased slippages. Against this tough scenario, the key achievements of the Bank during FY 2014-15 are as follows:
· The total business of the Bank increased from Rs 394095.600 million as on 31st March, 2014 to Rs 449689.600 million as on 31st March, 2015, an increase of Rs 55594.000 million i.e. 14.11 per cent.
· The deposit figures increased from Rs 239395.100 million as on 31st March, 2014 to Rs 271708.400 million as on 31st March, 2015, a rise of 13.50 per cent. This includes increase in CASA deposits from Rs 59232.400 million to Rs 67201.600 million i.e. 13.45 per cent.
· Advances rose from Rs 154700.500 million as on 31st March, 2014 to Rs 177981.200 million as on 31st March, 2015, a rise of 15.05 per cent.
· The deposit as well as credit growth rate of the Bank is much higher than the banking industry average, which stands at 11.85 per cent for deposits and 10.16 per cent for credit for FY 2014-15.
· The profit before tax and exceptional items of the Bank increased from Rs 1745.900 million in FY 2013-14 to Rs 2775.000 million in FY 2014-15 i.e. a rise of 58.94 per cent.
· The net profit after tax and exceptional items of the Bank increased from Rs 1470.900 million in FY 2013-14 to Rs 1901.800 million in FY 2014-15 i.e. a rise of 29.29 per cent. Own funds of the Bank have risen from Rs 21418.100 million as on 31st March, 2014 to Rs 22468.700 million as on 31st March, 2015, i.e. a rise of 4.91 per cent. The Capital Adequacy Ratio also improved from 12.11 per cent as on 31st March, 2014 to 12.57 per cent as on 31st March, 2015.
· The ratio of gross NPA to gross advances of the Bank reduced from 4.69 per cent as on 31st March, 2014 to 4.02 per cent as on 31st March, 2015. In absolute terms, the gross NPAs have reduced from Rs 7262.000 million as on 31st March, 2014 to Rs 7148.200 million as on 31st March, 2015.
SEGMENT-WISE
PERFORMANCE
SBU-RETAIL BANKING:
Multiple Delivery
Channels:
VISA Debit Card:
The Bank introduced two variants under Visa Debit Card during the year viz. Classic Visa EMV Chip Debit Card and Platinum Visa EMV Chip Debit Card. The Bank’s Debit Card has advantages like usage at domestic as well as at international ATMs and at POS machines bearing VISA logo. The total number of VISA Debit Cards issued has increased to 1400300 during FY 2014-15 as against 850582 Debit Cards during the preceding year. The Bank also launched Ru Pay Classic Chip Debit Card facility to customers during the year. A total of 32,123 customers are presently using Ru Pay Classic Chip Debit Card.
ATMs:
During the year 2014-15, fourteen new ATM centers were
opened making a total number of 219 ATM centers as on 31st March, 2015. The
Bank is also providing ATM access to its customers across India through the
National Financial Switch (NFS), network of National Payments Corporation of
India (NPCI). Now their customers have access to more than 194203 ATMs of
ninety one member banks and 335 sub-member banks under this arrangement. The
Bank had participated in the tender process of Konkan Railway Corporation
Limited for installation and operation of ATMs at specified railway stations
falling under its jurisdiction. They are glad to inform that seven railway
stations, viz. Chiplun, Ratnagiri, Kankavli, Kudal, Thivim, Karmali and Udupi
in the Konkan and Karwar region have been allotted to us. The Bank will be installing
and operating ATMs at these railway stations very shortly.
Internet Banking:
During the year, the Bank added new features in Internet Banking such as View and Pay Bills, Statement of Account on registered e-mail id and online generation of transaction password. The Internet Banking facility users saw a rise of 24 per cent y-o-y to reach 231672 as on 31st March, 2015.
SMS Banking:
SMS alerts facility is of utmost importance for receipt of transactional alerts. This facility is offered free of charge to all the customers. They have 936055 customers availing SMS Banking facility as on 31st March, 2015. New initiatives include,
· Blocking of Debit Card through SMS;
· Transfer of Funds through Immediate Payment Service (IMPS) on SMS Banking;
·
Stop payment of Cheque through SMS.
Mobile Banking:
RBI has emphasized the importance of mobile banking and the need to understand that mobile banking helps in reducing transactional costs. The Bank has launched the Mobile Banking facility under the name “Go-Mo” during FY 2013-14.
Sub-Membership model:
It is inevitable for co-operative banks to get equipped with
latest technology and provide a wider range of facilities to their customers.
Their Bank, being the principal member of NPCI, under the Sponsorship Model,
has issued RuPay ATM cards to customers of fifteen Sub-Member Banks and
RTGS/NEFT services to five Sub- Member Banks. To name a few, Chembur Nagarik
Sahakari Bank Limited, Kurla Nagarik Sahakari Bank Limited, Shikshak Sahakari
Bank Limited, Bhadradri Co-operative Urban Bank Limited, etc.
The Sub- Membership model enables such Sub-Member Banks to offer the following services to their customers:
RuPay Debit-cum-ATM cards
2. Cheque Truncation System (CTS)
3. Aadhaar Based Payment System (ABPS)
4. IMPS -Mobile Banking
5. RTGS/NEFT Services
6. E-KYC (the Bank is in implementation process)
Awards:
The Bank has received three awards from National Payments Corporation of India (NPCI) for excellent performance in 1) National Automated Clearing House (NACH), 2) Cheque Truncation System (CTS) and 3) Immediate Payment Service (IMPS). The Bank was also felicitated by the Institute of Development and Research in Banking Technology (IDRBT) for being the 'Best IT Enabled Co-operative Bank'. Further, National Securities Depository Limited (NSDL) awarded the Bank with the NSDL 'Star Performer Runner-up' award for opening of new demat accounts.
RTGS/ NEFT:
Were streamlined during the year, so that inward/outward messages as well as debits/ credits to customer accounts go through seamlessly. With many of the customers using electronic format, the volumes in RTGS/ NEFT have increased manifold. The Bank’s volume on RTGS/ NEFT platform reached a level of Rs 6911222.900 million during FY 2014-15.
Distribution of third party products:
During the year 2014-15, the Bank mobilized a premium of Rs 254.000 million and earned revenue of Rs 68.800 million from sale of third party products.
Demat Accounts:
The Bank is providing depository services through the two depositories – NSDL and CDSL. During the year, the Bank supported Initial Public Offer (IPO) issues through ASBA (Applications Supported by Blocked Amount) for twenty-five debt market and nineteen equity rights issues. The total revenue earned from demat services during the year was Rs 25.600 million. More than 2,000 new demat accounts were opened during the year. The Bank will shortly be offering online broking services to their demat account holders through tie up with M/s Religare Securities Limited
Retail Loan
Portfolio:
The Bank has always emphasized the importance of retail advances in the Bank’s business. The retail loan portfolio of the Bank increased from Rs 38034.100 million as on 31st March, 2014 to Rs 40947.400 million as on 31st March, 2015 i.e. an absolute growth of Rs 2913.300 million
Retail Deposits:
The low cost deposits i.e. current and saving accounts (CASA) form an integral part of the Bank’s deposit portfolio. The Bank provides a bouquet of products under CASA ranging from regular to elite as also zero balance accounts. During the year, the Bank launched ‘My Money Savings Account’, which is a self-operating account for minors above the age of 10 years. Overall, 321320 new CASA accounts were opened during FY 2014-15, of which 313763 are Saving accounts and 7,557 are Current accounts. The CASA balances as on 31st March, 2014 stood at Rs 59232.400 million which increased to Rs 67201.600 million as on 31st March, 2015 i.e. an increase of Rs 7969.200 million in absolute terms. In percentage terms, CASA balances increased by 13.45 per cent on a y-o-y basis. The ratio of CASA deposits to total deposits stood at 24.73 per cent as on 31st March, 2015, largely at the same level as on 31st March, 2014.
Financial performance
of new branches opened in the last few years:
To keep the shareholders informed about the viability of new branches, each year they report the progress of new branches in the Annual Report i.e. branches opened since July 2008 till the balance sheet date. In last year’s Annual Report, they had informed that the Bank will be focusing on consolidation of business growth. During FY 2014-15, a pause was taken in the opening of new branches and instead emphasis was given to reduction of loss-making branches opened during the past few years. With consistent and sustained efforts, the Bank was able to turnaround thirteen loss-making branches into profit.
SBU-WHOLESALE
BANKING:
During the financial year, the Bank has extended credit to the mid and large corporate segment having investment-grade rating by joining in syndication/consortium led by major reputed banks and financial institutions. The Bank’s commercial credit portfolio mainly comprised loans to Micro, Small and Medium Enterprises (MSMEs) and a few large mid corporate borrowers. The Bank has focused on Small and Medium Enterprises (SMEs) with moderate ticket size advances up to Rs 25 million with investment-grade rating. During the year under report, the commercial advances portfolio has shown a rise from Rs 101095.900 million as on 31st March, 2014 to Rs 116900.000 million as on 31st March, 2015, thereby showing growth of 13.51 per cent.
The Bank has a well-diversified commercial credit portfolio spread over a large number of industries from various sectors. Credit concentration on any particular industry has been consciously avoided as a policy. Based on their experience and the overall economic scenario of various industries, the Bank has identified a negative and a caution list of industries. As a prudent measure, the Bank’s exposure to any particular industry is generally restricted to 10 per cent of the total advances. Sector-wise highest exposure was 9.48 per cent of total credit, which was extended to the ‘Auto and Auto Components Industry’, as on 31st March, 2015. NPAs in this segment were negligible. Total advances sanctioned but pending for disbursement as on 31st March, 2015 were to the tune of Rs 9700.000 million.
FOREX BUSINESS:
The Bank has a RBI license for foreign exchange business since 1979. The Bank caters to the foreign exchange requirements of its customers through its well-established Forex Centers and Overseas Branch at Mumbai. During the FY 2014-15, the foreign exchange merchant turnover and interbank turnover stood at Rs 17,532.57 million and Rs 320026.200 million respectively. On the income side, the Bank has generated an operating income of Rs 867.700 million from foreign exchange operations. Out of this, the fee based income from foreign exchange business amounted to 45 per cent. The Bank is also having refinance facility of USD 5 million under Technology & Innovation Enhancement and Infrastructure Development Fund (TIEID) from EXIM Bank of India. The Bank offers travel-related services to customers of the Bank travelling abroad by providing foreign currencies and travel cards at competitive exchange rates. The Bank also handles foreign exchange business of customers of select co-operative banks which do not have RBI license to deal in foreign exchange, under lines of credit sanctioned to them. During FY 2014-15, lines of credit for foreign exchange business extended / renewed for sixteen co-operative banks stood at an aggregate level of Rs 1405.000 million.
Wells Fargo Global Payment Services, United States has conferred the Bank with “The Wells Fargo Global Currency Award” for financial institutions for the year 2014, for utilizing their multi-currency accounts to execute international payments and maintenance of various currency accounts across countries. This Award recognizes the Bank’s utilization of Wells Fargo Banks’ multi-currency accounts across the globe. The Bank has received a certificate from Wells Fargo Bank, N.A. in recognition of its commitment to excellence in customer service and for being an important and valued banking partner.
SBU–TREASURY
OPERATIONS:
The Bank’s Treasury function handles both Fixed income/ Money market and foreign exchange dealing operations. The Bank’s investment portfolio comprises wide ranging financial instruments viz. Government securities, Treasury Bills, non- SLR bonds as also short-term instruments like fixed deposits and Certificates of Deposit. Diversification across instruments enables the Bank to avoid concentration risk and maintain sufficient liquidity. SBU–Treasury is instrumental in the maintenance of CRR and SLR prescribed by the Reserve Bank of India and undertaking trading in debt markets/fixed income instruments. The G-sec yields which opened for the year at 8.80 per cent remained elevated for a substantial period with inflation concerns and RBI maintaining status quo on interest rates. However, positives like a new stable Government at the Centre, steps taken to curb fiscal deficit, sharp fall in the global crude prices and RBI adopting an accommodative Policy during Q4 of FY 2014-15, led to yields softening to 7.74 per cent at the end of the year. SBU-Treasury actively churned the G-sec portfolio during the year in order to generate trading profits and contributed significantly to the bottom line of the Bank. SBU–Treasury, despite a lower yield scenario, was able to manage the income yield on its total portfolio at near about 8 per cent.
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 records 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.66.34 |
|
|
1 |
Rs.100.03 |
|
Euro |
1 |
Rs.71.45 |
INFORMATION DETAILS
|
Information
Gathered by : |
KMN |
|
|
|
|
Analysis Done by
: |
HAN |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
60 |
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.