Professional Documents
Culture Documents
Content
Contentss
List of Directors 2
Board of Directors 3
Directors’ Report 5
Auditors’ Report 16
Balance Sheet 22
Balance Sheet in US $ 54
Market Share 58
Events 59
SBIGFL
1 Annual Report 2009-2010
SBI Global Factors Ltd.
Li st of Dir
List ector
ectorss
Director
Name Designation
Executive
Shri Sangeet Shukla Vice-Chairman
& C.E.O.
SBIGFL
Annual Report 2009-2010 2
SBI Global Factors Ltd.
Boar
Boardd of Dir ector
ectorss
Director
Shri R. Sridharan Smt. Bharati Rao Shri V. Kannan Shri B.K. Vatsaraj
Director Director Director Director
SBIGFL
3 Annual Report 2009-2010
SBI Global Factors Ltd.
Bankers
State Bank of India
Axis Bank
HDFC Bank
Standard Chartered Bank
Auditors
Contractor Nayak & Kisnadwala
Chartered Accountants
Jash Chambers, 3rd Floor,
7A, Sir P.M.Road, Fort,
Mumbai – 400001
Solicitors
K Ashar & Company
Meadows House, 4th & 5 th Floor,
39, Nagindas Master Road,
Fort, Mumbai – 400023
Registered Office
th
6 Floor, The Metropolitan,
Bandra–Kurla Complex,
Bandra (East),
Mumbai - 400051
SBIGFL
Annual Report 2009-2010 4
SBI Global Factors Ltd.
Dir ector
Director s’ Report
ectors’
For the Financial Year Ended March 31, 2010
Your Directors have a pleasure in presenting the ninth Annual Report of SBI Global Factors Limited
(formerly Global Trade Finance Limited) along with the audited Balance Sheet as at March 31, 2010
and Profit and Loss Account for the year ended on that date.
Financial Performance
(i) During the year, the Company recorded a total turnover of Rs 129.78 billion (US $ 2.89 billion),
export turnover of Rs 11.42 billion (US $ 0.25 billion), import turnover of Rs 0.38 billion (US
$ 8.46 million) and domestic turnover of Rs 117.98 billion (US $ 2.63 billion). As at March
31, 2010, the Company had advances outstanding of Rs 30,298 million (US $ 674.79 million),
of which the export outstandings stood at Rs 1,955 million (US $ 43.54 million), import
outstandings at Rs 99 million (US $ 2.20 million) and domestic outstandings at Rs 28,244
million (US $ 629.04 million). Gross NPAs stand at Rs 6,352 million (US $ 141.47 million)
and Net NPAs stand at Rs 5,068 million (US $ 112.87 million). The amount to be transferred
to Reserve Fund is Rs 13.16 million (US $ 0.29 million).
* (includes figures of SBI Factors and Commercial Services Private Limited for the Year 2008-
09, since merged with the Company)
(ii) The Company recorded a total income of Rs 4,931 million (US $109.82 million)*, posted a
profit before tax of Rs 108 million (US $ 2.41 million) during the current year against a total
income of Rs 6,765 million (US $ 133.28 million) ** and a profit before tax of Rs 1,850 million
(US $ 36.47 million) reported in the previous year.
(i) The Registrar of Companies, Maharashtra, issued a Fresh Certificate of Incorporation consequent
upon Change of Name on March 18, 2010, approving change of the Company’s name from
Global Trade Finance Limited to SBI Global Factors Limited (“SBIGFL”).
(ii) Reserve Bank of India, issued a new NBFC Certificate of Registration dated March 23, 2010 in
the name of the Merged Entity viz., SBI Global Factors Limited.
(iii) From the Appointed Date of the Merger, all the Assets, Properties, Debts, Liabilities (including
Contingent Liabilities) of erstwhile SBI Factors and Commercial Services Private Limited have
been transferred to SBIGFL.
SBIGFL
5 Annual Report 2009-2010
SBI Global Factors Ltd.
International Associations
SBI Global Factors Limited (formerly Global Trade Finance Limited) is a member of Factors Chain
International (FCI), an umbrella Organisation of worldwide Factoring Companies. FCI is a global
network of leading Factoring Companies with a common aim to facilitate international trade through
factoring and related financial services. Currently, the FCI network counts 247 Factors in 66 countries,
actively engaged in more than half of the world’s cross-border factoring volume.
Human Resources
All permanent Employees of erstwhile SBIF have become permanent Employees of SBIGFL.
SBIGFL is a professionally managed Company that constantly innovates and tries to adopt global
best practices in this field. Alignment with the long-term business direction and co-creation of
shared values help each individual meet the Company’s objectives. The Company believes in investing
in people to develop and expand their skill-sets.
(i) Shri Sangeet Shukla took over as the Executive Vice Chairman & C.E.O. in November, 2009.
(ii) Shri K.S. Subramanian has joined as Executive Vice President of the Merged Entity.
Post merger, the staff strength of SBIGFL is 164, including 27 employees on deputation from SBI.
M/s. Ernst & Young (P) Ltd. have been appointed as a Consultant to look into HR integration
process.
Information Technology
In order to bring operations of both the merged Companies on to a common IT platform, the following
activities have been undertaken :
Global Trade Finance Ltd and SBI Factors and Commercial Services Pvt. Ltd. were using two
different domains “sbifactors.com” and “gtfindia.com” for e-mail facility. Post merger, new e-
mail domain “sbiglobal.in” has been registered and e-mail ids of all the users of the merged
entity have been created with access to their old/ archive mails globally over the internet.
A New domain, “www.sbiglobal.in” for the website has been registered and restructuring of
the web-site is under process.
A Technical Evaluation Committee was formed to oversee the system related aspects of the
merger. It was decided to purchase a factoring software “Trade Free Solutions”, which is an
upgraded version of the software “Octopus” used by GTF. SBIF database has been migrated to
“TradeFree” which was commissioned on 1st April 2010. Testing of seamless transfer of data
from “TradeFree” to the accounting platform has been completed.
4 Network:-
The combined entity has migrated to the “SBI Connect” for accessing and transfer of data
through Intranet.
SBIGFL
Annual Report 2009-2010 6
SBI Global Factors Ltd.
Credit Rating
During the year, various Rating Agencies have assigned the ratings to GTF and SBIGFL (post merger)
for its funding requirements as given below :
The ratings indicate the highest degree of safety with regard to timely payment of interest and
principal on the rated instruments.
SBIGFL continues to augment resources from competitive sources and during the year under review,
it has raised Rupee resources by borrowing through debt instruments like Commercial Papers,
NCDs, short-term credit facilities from leading commercial banks and money market instruments. It
has tapped Foreign Currency lines from various domestic and international banks at competitive
interest rates.
NPA Management
Due to economic downturn, accounts of a number of clients of the Company have become Non
Performing. In some cases, irregularities such as fake invoices and undervaluation of securities
were also noticed. The Company has classified these accounts as frauds and reported these cases
for criminal investigation. The Company has adequately provided for these NPAs in its books out
of the Current Year’s profits. The Company has NPAs aggregating Rs. 6352 Mn. in 83 accounts with
provision of Rs. 1284 Mn. as on March 31, 2010. Further, 18 accounts with outstanding of Rs. 1849
Mn. have been technically written off with legal and recovery action continued. Taking into account
a carry forward provision of Rs. 664 Mn. from the previous year, total provision for NPAs made out
of current year’s profits comes to Rs. 2469 Mn. The Company has put a focus on the recovery of
NPAs. The efforts have already started paying dividends.
Dividend
In view of substantial provision for NPAs made during the year as explained above, the Company
has posted Profit after Tax of Rs. 66 Mn. for the year ended March 31, 2010 as against Rs. 1,219 Mn.
during the previous Financial Year. In view of the above, the Directors do not propose payment of
SBIGFL
7 Annual Report 2009-2010
SBI Global Factors Ltd.
Dividend to the Equity Shareholders for the Financial Year ended March 31, 2010. However, a
Dividend on Preference Share Capital (Rs. 100 Mn.) at the rate of 9.5 % is being recommended to
the Shareholders for approval.
Share Capital
As per the Scheme of Amalgamation of SBI Factors and Commercial Services Private Limited with
Global Trade Finance Limited, the Shareholders of the Company at their Extraordinary General Meeting
held on February 19, 2010, approved increase in the Authorized Share Capital of the Company from Rs.
2,000,000,000 (Rupees Two Billion Only) divided into 120,000,000 (One Hundred Twenty Million)
Equity Shares of Rs. 10/- each and 80,000,000 (Eighty Million) Preference Shares of Rs. 10/- each to Rs.
3,000,000,000 (Rupees Three Billion) divided into 180,000,000 (One Hundred Eighty Million) Equity
shares of Rs.10/- each and 120,000,000 (One Hundred Twenty Million) Preference shares of Rs.10/-
each.
Subsequently, on March 26, 2010, 4,71,17,510 Equity Shares of the Company were issued/ allotted to
the Equity Shareholders of erstwhile SBI Factors and Commercial Services Private Limited (since merged
with the Company) as on February 11, 2010 (i.e. Record Date), in the proportion of 100 (One Hundred)
fully paid Equity Shares of Rs. 10/- (Rupees Ten) each in the Company for every 111 (One Hundred and
Eleven) Equity Shares of Rs. 10/- (Rupees Ten) each held in SBI Factors and Commercial Services
Private Limited (viz. 3,01,55,207 Equity Shares to State Bank of India, 28,27,050 Equity Shares to State
Bank of Indore, 47,11,751 Equity Shares to Union Bank of India, and 94,23,502 Equity Shares to Small
Industries Development Bank of India (SIDBI)).
Consequently, the Equity Shareholding Pattern of the Merged Entity as on March 31, 2010 is as
under:
Particulars of foreign currency earnings and outgo during the year are given in Schedule 17 to the
Notes to the Accounts forming part of the Annual Accounts.
SBIGFL
Annual Report 2009-2010 8
SBI Global Factors Ltd.
processes and service quality. The half yearly results are also subjected to a limited review by the
Statutory Auditors.
Particulars of Employees
Any Shareholder interested in obtaining a copy of the Statement of Particulars of Employees may
write to the Company Secretary of the Company to obtain the same.
Directors
The Board of Directors of the Company at present consists of eight Directors. During the Financial
Year ended on 31 st March, 2010,
(i) Consequent upon transfer of Shri R. Venkatachalam, CGM (MCG), SBI, as nominated by SBI,
Smt. Bharati Rao, the then Advisor (Mergers & Acquisitions), SBI, was appointed as an
Additional Director of the Company with effect from July 03, 2009, in place of Shri R.
Venkatachalam.
(ii) Shri Sangeet Shukla, Dy. Managing Director, State Bank of India, has joined the Board as Executive
Vice Chairman & C.E.O. with effect from November 06, 2009, in terms of his nomination by the
Chairman of State Bank of India.
(iii) Shri Arvind Sonmale was re-designated as Managing Director as against his earlier designation
as Managing Director & C.E.O. of the Company with effect from November 6, 2009.
(iv) Consequent upon retirement, Shri V.K. Gupta relinquished the Office of the Joint Managing
Director of the Company on March 31, 2010.
Public Deposits
During the Financial Year ended March 31, 2010, the Company has not accepted any deposits from
the public within the meaning of the provisions of the Non-Banking Financial Companies (Reserve
Bank) Directions, 1998.
Auditors
M/s. Contractor, Nayak & Kishnadwala, Chartered Accountants, the present Statutory Auditors of
the Company appointed by the Comptroller & Auditor General of India (“C&AG of India”), will
retire at the close of the 9th Annual General Meeting of the Company. Consequent upon merger of
SBI Factors and Commercial Services Private Limited with Global Trade Finance Limited with effect
from April 01, 2009 (i.e. the Appointed Date), they have conducted the Audit of the merged Entity
for FY 2009-10 with the approval of C&AG of India.
The Statutory Auditors of the Company for the Financial Year 2010-11 would be appointed as and
when and as may be directed/ informed to the Company by the C&AG, pursuant to Section 619 and
other applicable provisions of the Companies Act, 1956.
SBIGFL
9 Annual Report 2009-2010
SBI Global Factors Ltd.
Company for the Financial Year ended 31 st March, 2010, have commented that ‘nothing significant
has come to their knowledge which would give rise to any comment upon or supplement to Statutory
Auditors’ Report under Section 619(4) of the Companies Act, 1956’.
a) in the preparation of the annual accounts, the applicable accounting standards have been duly
followed;
b) the Directors have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Company at the end of the financial year and of the profit or loss of the
Company for that period;
c) the Directors have taken proper and sufficient care for the maintenance of adequate records in
accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities;
d) the Directors have prepared the annual accounts on a ‘going concern’ basis.
Acknowledgements
The Directors thank the Shareholding Banks/Financial Institutions and the Reserve Bank of India,
for their continued support. They are thankful to the Clients and Customers for their continued
patronage. The Directors wish to acknowledge the support of SBI in lending the services of their
experienced Executives/ Managers to the Company. The Directors also wish to convey their
appreciation to employees at all levels for their hard work, dedication and commitment.
SBIGFL
Annual Report 2009-2010 10
SBI Global Factors Ltd.
At the end of Financial Year 2009-10, the Board comprised of nine (9) members, which consisted
of four (4) Non-Executive Directors, two (2) Independent Directors, and three (3) full-time
Executive Directors.
The Board of Directors meets, as often as necessary, in addition to meeting on a quarterly basis
to review the performance and give future directions to the Senior Management Team of the
Company.
The particulars of Directors, their attendance during the financial year 2009 – 2010 and also
other Directorships are as under:
SBIGFL
11 Annual Report 2009-2010
SBI Global Factors Ltd.
2. Audit Committee
Upon the induction of Shri B.K. Vatsaraj as a Member of the Audit Committee of the Board of
Directors w.e.f. April 28, 2009, the Audit Committee, at present, comprises five Members of
which, three are Non – Executive Directors and two are Independent Directors.
During the Financial Year ended on March 31, 2010, the Audit Committee met 4 times viz: on
25/04/2009, 18/07/2009, 22/10/2009, and 19/01/2010.
The attendance of the Audit Committee Members at such meetings is as stated below:
In addition, the Statutory Auditors and Internal Auditors attend and participate in the
deliberations at the meetings of the Audit Committee.
a. With effect from July 03, 2009, Smt. Bharati Rao was appointed as a Member of the Executive
Committee of the Board of Directors, in place of Shri Venkatachalam.
b. With effect from November 06, 2009, Shri Sangeet Shukla, Executive Vice Chairman &
C.E.O. of the Company, was appointed as Member of the Executive Committee of the
Board,
c. With effect from March 19, 2010, Shri B.K. Vatsaraj was appointed as Member of the
Executive Committee of the Board.
d. Upon retirement, Shri V.K. Gupta relinquished the Office of the Joint Managing Director of
the Company on March 31, 2010. Accordingly, he ceased to be a Member of the Executive
Committee of the Board.
SBIGFL
Annual Report 2009-2010 12
SBI Global Factors Ltd.
The Executive Committee of the Board at present consists of the following Members :
1. Shri Sangeet Shukla (Executive Vice Chairman & C.E.O.) (Member),
2. Smt. Bharati Rao (Member),
3. Shri V. Kannan (Member),
4. Shri B.K. Vatsaraj (Member), and
5. Shri Arvind Sonmale, Managing Director (Member)
Seventh (1) Further issue of 66,66,666 Equity Shares of Rs. 10/- each at a premium of Rs. 65-
per Share,
(2) Extension of term of appointment of Managing Director & C.E.O. previously
approved by the Board of Directors.
Eighth (1) Appointment of Statutory Auditors for the Financial Year 2009-10, as directed
by the Comptroller & Auditor General of India,
(2) Extension of term of appointment of Managing Director & C.E.O., previously
approved by the Board of Directors
SBIGFL
13 Annual Report 2009-2010
SBI Global Factors Ltd.
Management Di scu
Discu ss
scuss ion and Analy
ssion Analyssis
Global Economic Scenario:
Past two years were the most volatile years for the world economy since great depression of 1929.
Though the domestic economies of India and China were relatively less impacted, their exports
substantially declined as a result of global recession. However, with the sign of revival in the global
economy specially the US economy from the third quarter of the year (Fourth quarter GDP growth of
5.6%), the growth has started showing signs of pick up. Although the outlook for the current and
the coming quarters may be marginally better than that of the previous year, the recent turbulence
due to poor fiscal discipline of some of the European countries has unsettled the Euro and drawn
attention to the divergence in growth potential and fiscal health of various countries in Europe and
as a result, the confidence is impacted.
However, the stimulus packages while sustaining growth have triggered the inflationary pressures
and the inflation is now a matter of concern. Oil prices have started increasing and crossed the
USD90 per barrel and are a major cause of concern. WPI rose by 9.9% in March 2010. To tame the
inflation, RBI has initiated measures in its annual policy and announced hike in CRR and also
raised the key rates.
The Company has appointed leading consultant Ernst & Young to prepare a new HR policy. Both
the merged Companies operated on different software platforms developed by different vendors.
For the merged entity, a new software has been commissioned and developed, which has since
been successfully implemented in the Company.
SBIGFL
Annual Report 2009-2010 14
SBI Global Factors Ltd.
SBIGFL
15 Annual Report 2009-2010
SBI Global Factors Ltd.
Auditors’ Report
Auditors’
To,
The Board of Directors,
SBI GLOBAL FACTORS LIMITED
(Formerly Known as GLOBAL TRADE FINANCE LIMITED)
Mumbai.
We have audited the accounts of SBI GLOBAL FACTORS LIMITED (formerly known as GLOBAL
TRADE FINANCE LIMITED) for the year ended 31st March, 2010.
As required by the Non Banking financial Companies Auditor’s Report (Reserve Bank) Directions,
2008 dated 18th September 2008, we give below our report on the matters specified in the above
mentioned directions and state that:
1. The Company is engaged in the business of non-banking financial Institution and has obtained
a Certificate of Registration (N-13.01518) on the 28th April 2001 from Reserve Bank of India
2. The company is entitled to continue to hold such Certificate of Registration in terms of its
assest / income pattern as on 31st March, 2010
3. The Board of Directors had passed a resolution for non acceptance of any public deposit in
their meeting held on 28th April, 2009
4. The Company has not accepted any public deposits during the relevant year 2009-2010.
5. The Company has complied with the prudential norms relating to Income Recognition,
accounting standards, asset classification and provisioning for the bad and doubtful debts as
specified to it in terms of Non-Banking Financial (Non Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007.
6. The capital adequacy ratio as disclosed in the return submitted to the Bank on 10th June,
2009, In Form NBS-7, has been correctly arrived at and such ratio is in compliance with the
minimum CRAR prescribed by the Reserve Bank of India;
7. The company has furnished to the Reserve Bank of India the annual statement of capital funds
risk assets/exposures and risk asset ratio (NBS-7) on 10th June, 2009, within the stipulated
period.
(G.S. Nayak)
Partner
M.No. 38127
Firm Registration No.101961 W
Place: Mumbai
Date: 27th April, 2010
SBIGFL
Annual Report 2009-2010 16
SBI Global Factors Ltd.
Auditors’ Report
Auditors’
To
The Members,
SBI Global Factors Limited
(formerly known as Global Trade Finance Limited)
We have audited the attached Balance Sheet of SBI Global Factors Limited (formerly known as Global
Trade Finance Limited) (‘the Company’), as at 31st March 2010 and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date, including the accounts of erstwhile SBI
Factors and Commercial Services Private Limited for the year ended 31st March 2010 consequent to its
amalgamation with the Company with effect from 1st April 2009, annexed thereto.
These financial statements are the responsibility of the Company’s management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards generally accepted in India. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Audit also includes assessing the
accounting principles used and significant estimates made by management as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
We report that:
1. We have obtained all the information and explanations, which to the best of our knowledge and
belief were necessary for the purposes of our audit;
2. In our opinion, proper books of account, as required by law, have been kept by the company in so
far as appears from our examination of those books;
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are
in agreement with the books of account;
4. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by
this report comply with the Mandatory Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
5. On the basis of written representations received from directors as on 31st March 2010, and taken on
record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956;
6. In our opinion and to the best of our information and according to the explanations given to us, the
said accounts read together with notes forming part of it, give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010, and
b) In the case of the Profit and Loss Account, of the profit for the year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
7. As required by the Companies’ (Auditors’ Report) Order, 2003, as amended by the Companies
(Auditor’s Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 and according to the information and
explanations given to us during the course of the audit and on the basis of such checks as were
considered appropriate, we report that:
The Company is engaged in the business of factoring of debts/receivables and the requirements of
clauses (ii), (viii) and (xiii) of paragraph 4 of the order are not applicable to the company.
SBIGFL
17 Annual Report 2009-2010
SBI Global Factors Ltd.
i) (a) The Company has maintained proper records showing full particulars including quantitative
details and situation of the fixed assets;
(b) As per the information and explanations given to us, the management has carried out the
physical verification of some of the fixed assets during the year, in accordance with a program
of verification, which in our opinion provides physical verification of all assets at reasonable
intervals. The discrepancies noticed on such verification, which were not material, have been
appropriately dealt with in the accounts.
(c) The Company has not disposed of significant part of fixed assets during the year and the
question of effect on the going concern of the Company does not arise.
ii) (a) As per the information and explanations given to us, the Company has not granted nor taken
unsecured loans to/from Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence sub clauses (b), (c), (d), (e), (f) & (g) are
not applicable to the Company.
iii) In our opinion and according to the information and explanations given to us, there are adequate
internal control procedures commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and sale of services. There are no transactions of
purchase of inventory and for sale of goods. During the course of our audit, no major weakness
has been noticed in the internal control system and there is no continuing failure for the same.
iv) In our opinion and according to the information and explanations given to us, there are no contracts
or arrangements referred to in Section 301 of the Companies Act, 1956. Accordingly the provisions
of the clause (v) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.
v) The Company has not accepted deposits from the public and therefore the question of compliance
with the provisions of Section 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and rules made thereunder for the deposits accepted from the public does not arise.
vi) In our opinion, the Company generally has an internal audit system commensurate with the size
and nature of its business.
vii) (a) According to the information and explanations given to us and the records examined by us,
the Company is regular in depositing with appropriate authorities undisputed statutory dues
including provident fund, investors education and protection fund, or employees’ state
insurance, income tax, sales tax, wealth tax, excise duty, custom duty, service tax, cess and
other statutory dues applicable to it and there are no undisputed statutory dues outstanding
as at 31st March 2010, for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are no dues of sales tax,
customs duty, excise duty, wealth tax and cess which have not been deposited on account of
any dispute. According to the information and explanation given to us, the details of Income
tax and service tax dues which have not been deposited on account of disputes are as follows:
Name of the Statute Amount Rs. Period for Forum where dispute is
which the pending
amount relates
In case of the company:
Income Tax Act, 1961 500,000 FY 2002-03 Income Tax Appellate Tribunal
Income Tax Act, 1961 8,455,754 FY 2003-04 Commissioner of Income Tax (Appeals)
Income Tax Act, 1961 19,402,183 FY 2004-05 Commissioner of Income Tax (Appeals)
Income Tax Act, 1961 13,254,175 FY 2006-07 Commissioner of Income Tax (Appeals)
Service Tax under 10,157,247 2004-2009 Commissioner of Excise &
Finance Act 1994 Service Tax (Appeals)
In case of erstwhile SBI Factors and Commercial Services Pvt. Ltd.
Income Tax Act, 1961 8,186,253 FY 2004-05 Commissioner of Income Tax (Appeals)
Income Tax Act, 1961 3,163,485 FY 2007-08 Commissioner of Income Tax (Appeals)
SBIGFL
Annual Report 2009-2010 18
SBI Global Factors Ltd.
viii) The company has no accumulated losses as on 31st March 2010 and no cash losses in the
immediately preceding financial year. The Company has not incurred any cash loss during
the financial year.
ix) Based on the information and explanations given to us, the Company has not defaulted in the
repayment of dues to financial institutions or banks or debenture holders.
x) Based on our examination of the records and the information and explanations given to us,
the Company has maintained adequate documents and records where the Company has granted
any loans and/or advances on the basis of security by way of pledge of shares, debentures
and other securities.
xi) Based on the information and explanation provided to us, on our examination of the records
and documents and our evaluation of the related internal controls, the Company has maintained
proper records and timely entries are being made in respect of its dealing in units of mutual
funds. All investments including units of mutual funds and bonds have been held by the
Company in its own name. There are no transactions in shares or other investments.
xii) According to the information and explanations given to us, the Company has not given any
guarantees for loans taken by others from banks or financial institutions other than credit
protection in the case of import factoring and guarantee to banks for letters of credit issued by
banks for the Company's clients, the terms and conditions of which are not prejudicial to the
interest of the company.
xiii) In our opinion and according to the information and explanations given to us, the funds
raised through term loans have been applied for the purpose for which they were obtained.
xiv) According to the information and explanations given to us and on an overall examination of
the balance sheet of the Company, we report that funds raised for short-term basis during the
year have been prima facie not utilised for long term investment.
xv) According to the information and explanation given to us, the Company has not made any
preferential allotment of shares, during the year, to parties and companies covered in the
register maintained under section 301 of the Act, and accordingly the question of the price
being prejudicial to the interest of the Company does not arise.
xvi) The Company has issued unsecured debentures, and therefore the question of creation of
security does not arise.
xvii) The Company has not raised any money by public issues during the year covered by our
report and therefore the question of end use thereof does not arise.
xviii) According to the information and explanation given to us, no fraud by the Company has been
noticed or reported during the year. As regards frauds on the Company during the year, the
Company is investigating 8 cases of fraud in respect of documents submitted by clients,
involving principal of Rs.1,704,940 thousand, which is written off in the books of the
Company.
SBIGFL
19 Annual Report 2009-2010
SBI Global Factors Ltd.
Comment
Commentss of the Comptr oller and Auditor
Comptroller
Gener al of India Under Section 6
General 19(4) of the
619(4)
Companies Act, 1956 on The Account
Accountss Of SBI
Global Factor
Factorss Limited for the Year Ended 3
Year 311
Mar ch 20
March 10.
201
The preparation of financial statements of SBI Global Factors Limited for the year ended 31 March
2010 in accordance with the financial reporting framework prescribed under the Companies Act,
1956 is the responsibility of the management of the company. The statutory auditor appointed by
the Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 is
responsible for expressing opinion on these financial statements under Section 227 of the Companies
Act, 1956 based on independent audit in accordance with the auditing and assurance standards
prescribed by their professional body the Institute of Chartered Accountants of India. This is stated
to have been done by them vide their Audit Report dated 27 April 2010.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit
under Section 619(3)(b) of the Companies Act, 1956 of the financial statements of SBI Global Factors
Limited for the year ended 31 March 2010. This supplementary audit has been carried out
independently without access to the working papers of the statutory auditor and is limited primarily
to the inquiries of the statutory auditor and Company personnel and a selective examination of
some of the accounting records. On the basis of my audit nothing significant has come to my
knowledge which would give rise to any comment upon or supplement to Statutory Auditors’
report under Section 619(4) of the Companies Act, 1956.
(Alka. R. Bhardwaj)
Principal Director of Commercial Audit and
Ex-Officio Member, Audit Board-I, Mumbai
Place: Mumbai
Date :11 June, 2010
SBIGFL
Annual Report 2009-2010 20
SBI Global Factors Ltd.
Comment
Commentss of the Comptr oller and Auditor
Comptroller
Gener al of India Under Section 6
General 19(4) of the
619(4)
Companies Act, 1956 on the Account
Accountss Of SBI
Factor
Factorss And Commer cial Services Private Limited
Commercial
for the Y ear Ended 3
Year 311 Mar ch 2008
March
The preparation of financial statements of SBI Factors and Commercial Services Private
Limited for the year ended 31 March 2008 in accordance with the financial reporting
framework prescribed under the Companies Act, 1956 is the responsibility of the
management of the Company, The Statutory Auditor appointed by the Comptroller and
Auditor General of India under Section 619(2) of the Companies Act 1956 is responsible
for expressing opinion on these financial statements under Section 227 of the Companies
Act, 1956 based on independent audit in accordance with the auditing and assurance
standards prescribed by their professional body the institute of Chartered Accountants
of India. This is stated to have been done by them vide their Audit Report dated
17.4.2008.
I on behalf of the Comptroller and Auditor General of India, have decided not to review
the report of the Statutory Auditor on the accounts of SBI Factors and Commercial
Services Private Limited for the year ended 31 March 2008 and as such have no
comments to make under Section 619 (4) of the Companies Act, 1956.
(Alka. R. Bhardwaj)
Principal Director of Commercial Audit and
Ex-Officio Member, Audit Board-I, Mumbai
Place: Mumbai
Date :4 March 2010
SBIGFL
21 Annual Report 2009-2010
SBI Global Factors Ltd.
(Formerly known as Global Trade Finance Limited)
Balance Sheet
As At March 31, 2010
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 1,542,604 1,071,429
Reserves and Surplus 2 4,209,107 2,815,125
5,751,711 3,886,554
Loan Funds
Unsecured Loans 3 25,666,098 29,451,223
Total 31,417,809 33,337,777
APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 290,917 242,326
Less: Depreciation / Amortisation 161,070 107,711
Net Block 129,847 134,615
Capital Advances 510 2,974
130,357 137,589
Investments 5 189,360 -
Deferred Tax Asset (Net) 6 434,533 209,762
Current Assets, Loans and Advances
Sundry Debtors 7 30,298,262 30,173,367
Cash and Bank Balances 8 240,224 3,289,110
Other Current Assets 9 9,559 13,426
Loans and Advances 10 334,258 57,493
30,882,303 33,533,396
Less: Current Liabilities and Provisions 11
Current Liabilities 202,771 303,323
Provisions 15,973 239,647
218,744 542,970
Net Current Assets 30,663,559 32,990,426
Total 31,417,809 33,337,777
Significant Accounting Policies 18
and Notes to Accounts
Schedules 1 to 18 referred to herein above form an integral part of the Balance Sheet.
As per our attached report of For and on behalf of the Board of Directors
even date
Mumbai Mumbai
Dated : April 27, 2010 Dated : April 27, 2010
SBIGFL
Annual Report 2009-2010 22
SBI Global Factors Ltd.
(Formerly known as Global Trade Finance Limited)
Profit And Loss Account
For The Year Ended March 31, 2010
Year Ended Year Ended
March 31, 2010 March 31, 2009
Schedule Rs. ‘000) (Rs. ‘000)
INCOME
Income from Factoring 12 4,336,883 4,611,372
Interest Income 13 51,725 130,195
Profit on Sale of Current Investments (Net) 475,167 328,945
Other Income 14 67,015 51,281
Total 4,930,790 5,121,793
EXPENDITURE
Employee Costs 15 114,473 112,135
Operating and Other Expenses 16 2,695,645 826,763
Interest and Financial Charges 17 1,980,324 2,948,380
Depreciation / Amortisation 32,475 33,781
Total 4,822,917 3,921,059
PROFIT BEFORE TAXATION 107,873 1,200,734
Provision for Taxation
-Current Taxation 245,000 583,000
-Excess Provision for Taxation for Earlier Years Written Back (12,660) -
-Deferred Taxation (190,342) (174,511)
-Wealth Tax 63 65
-Fringe Benefits Tax - 1,300
42,061 409,854
PROFIT AFTER TAXATION 65,812 790,880
Profit and Loss Account Balance 921,615 606,418
Brought Forward from Previous Year
Add : On account of amalgamation of erstwhile
SBI Factors & Commercial Services Pvt. Ltd.
(Refer Note 2 of Schedule 18) 10,000 -
BALANCE AVAILABLE FOR APPROPRIATION 997,427 1,397,298
APPROPRIATIONS:
Dividend Paid
- Equity - -
- Preference - -
Proposed Dividend
- Equity - 194,286
- Preference 9,500 9,500
Corporate Tax on Dividend 1,615 34,633
Transfer to General Reserve - 79,088
Transfer to Reserve Fund 13,163 158,176
Transfer to Contingency Reserve 150,537 -
Profit and Loss Account Balance 822,612 921,615
Carried to the Balance Sheet
Earnings per Share - Basic (Rs.) 0.38 8.45
Earnings per Share - Diluted (Rs.) 0.38 8.45
(Nominal Value of Share Rs. 10 each)
(Refer Note 6 of Schedule 18)
Significant Accounting Policies and Notes to Accounts 18
Schedules 1 to 18 referred to herein above form an integral part of the Profit and Loss Account.
As per our attached report of even date For and on behalf of the Board of Directors
For Contractor, O.P. Bhatt Sangeet Shukla
Nayak & Kishnadwala Chartered Accountants Chairman Executive Vice Chairman & CEO
G. S. Nayak
Partner
M. No. 38127 Amita Joshi
ICAI Firm Registration No.101961W Company Secretary
Mumbai Mumbai
Dated : April 27, 2010 Dated : April 27, 2010
SBIGFL
23 Annual Report 2009-2010
SBI Global Factors Ltd.
(Formerly known as Global Trade Finance Limited)
Adjustments in:
Depreciation / Amortisation 32,475 33,781
(Profit) / Loss on sale of fixed assets 1,420 1,688
Liabilities No Longer Required, Written Back (30,656) (1,007)
Provision No Longer Required, Written Back - (131,323)
Provision for doubtful debts & advances 786,783 631,901
Bad Debts written off 1,681,728
Share Issue Expenses written off - 750
Interest income on Fixed Deposits (51,707) (129,926)
Provision for Leave Encashment (1,258) (676)
Interest income (18) (269)
Profit on sale of current investments (475,167) (328,945)
Interest cost (1,954,780) (2,930,405)
(11,180) (2,854,431)
Operating profit before working capital changes 2,051,473 1,276,708
Increase / (Decrease) in secured loans 0
Increase / (Decrease) in unsecured loans (16,495,345) (432,665)
(Increase) / Decrease in trade and other receivables 12,139,659 1,291,082
Change in unexpired discount of Commercial Paper (2,270) -
Increase / (Decrease) in trade and other payables (367,931) 24,134
(4,725,887) 882,551
Cash (used)/generated in and from operations (2,674,414) 2,159,259
Direct taxes paid (net) (449,083) (605,358)
Net cash (used)/generated in and from operating activities (A) (3,123,497) 1,553,901
Cash flow from Investing Activities:
Purchase of fixed assets (19,656) (22,288)
Sale of fixed assets 1,242 634
Interest Income Received 57,862 170,578
Purchase in current investments (1,390,305,155) (805,020,907)
Sale of current investments 1,390,780,322 805,349,850
Net cash from investing activities (B) 514,615 477,867
Cash flow from financing activities:
Fresh Issue of Equity Share Capital - 750,000
Share issue expenses - (750)
Dividend paid (Final) (431,461) (131,072)
Net cash generated from financing activities ( C) (431,461) 618,178
As per our attached report of even date For and on behalf of the Board of Directors
For Contractor,
Nayak & Kishnadwala Chartered Accountants O.P. Bhatt Sangeet Shukla
G. S. Nayak Chairman Executive Vice Chairman & CEO
Partner
M. No. 38127 Amita Joshi
ICAI Firm Registration No.101961W Company Secretary
Mumbai Mumbai
Dated : April 27, 2010 Dated : April 27, 2010
SBIGFL
Annual Report 2009-2010 24
SBI Global Factors Ltd.
SBIGFL
25 Annual Report 2009-2010
SBI Global Factors Ltd.
SBIGFL
Annual Report 2009-2010 26
SBI Global Factors Ltd.
25,666,098 29,451,223
SBIGFL
27 Annual Report 2009-2010
Schedules Annexed To And Forming Part of The Balance Sheet
As At March 31, 2010
SCHEDULE 4
FIXED ASSETS
SBIGFL
[Refer Notes 2(iii) and 2(iv) of Schedule 18] (Rs. ‘000)
28
Building * 94,284 113 4,782 - 99,179 10,089 1,617 - 373 12,079 87,100 84,195
Office Equipment 16,001 2,390 4,401 1,904 20,888 7,904 3,442 1,490 3,588 13,444 7,444 8,097
Computers - Hardware 35,349 2,594 12,966 1,327 49,582 29,232 5,485 1,200 11,157 44,674 4,908 6,117
Furniture and Fixtures 27,504 1,646 10,120 3,548 35,722 18,890 4,383 3,163 8,901 29,011 6,711 8,614
Vehicles 12,081 1,116 - 537 12,660 7,098 2,684 337 - 9,445 3,215 4,983
Leasehold Improvements 36,207 11,026 - 4,491 42,742 18,532 11,358 2,955 - 26,935 15,807 17,675
Intangible Assets
Computers - Software 20,900 3,235 6,009 - 30,144 15,966 3,506 - 6,010 25,482 4,662 4,934
Total 242,326 22,120 38,278 11,807 290,917 107,711 32,475 9,145 30,029 161,070 129,847 134,615
Previous Year 222,637 27,464 - 7,775 242,326 79,383 33,781 5,453 - 107,711
* Includes Rs. 500 being the value of shares in Co-operative Housing Society
SBI Global Factors Ltd.
INVESTMENTS
Long Term Unquoted trade Investments
189,360 -
SCHEDULE 6
DEFERRED TAX (LIABILITY)/ASSET
Deferred Tax Asset arising on account of
timing differences in:
- Provision for Doubtful Debts 410,721 212,928
- Provision for Doubtful Investments 15,725
- Disallowances U/s 43B 203 380
- Depreciation 1,238 (3,546)
- Allowability of Amalgamation expenses 6,646 -
434,533 209,762
434,533 209,762
SCHEDULE 7
SUNDRY DEBTORS
(Secured)
Debts Factored (Considered Good)
Debts outstanding for a Period Exceeding Six Months* 1,818,157 318,080
Other Debts 10,223,256 4,870,093
12,041,413 5,188,173
(Unsecured)
Debts Factored
Debts outstanding for a Period Exceeding Six Months
- Considered Good * 6,232,998 5,650,299
- Considered Doubtful 1,23,461 626,442
7,469,459 6,276,741
Other Debts (Considered Good)
- Considered Good 12,023,851 19,334,895
- Considered Doubtful - -
12,023,851 19,334,895
19,493,310 25,611,636
31,534,723 30,799,809
Less: Provision for Doubtful Debts 1,236,461 626,442
30,298,262 30,173,367
* These debts include debts which are either not due or not overdue for a period of more than six months
and, hence, do not require a provision as at March 31, 2010 in accordance with the Company policy as
stated in Note 2(vii) on Schedule 18.
SBIGFL
29 Annual Report 2009-2010
SBI Global Factors Ltd.
SCHEDULE 9
OTHER CURRENT ASSETS
Interest Receivable 7,289 13,426
Unexpired discount on issue of Commercial Papers 2,270 -
(Refer Note 2[xiv] on Schedule 18)
9,559 13,426
SCHEDULE 10
LOANS AND ADVANCES
(Unsecured and Considered Good)
Advances Recoverable in Cash or in Kind
or for Value to be Received 4,484 1,764
Import Factor Commission Receivable - 300
Prepaid Expenses 3,267 2,668
Deposits 45,921 22,118
Advance Tax and Tax Deducted at Source
(Net of Provision for Tax Rs. 1,927,776
thousands [Previous Year Rs. 1,267,600 thousands]) 280,078 30,597
Advance Fringe Benefit Tax (Net of Provision for
Tax Rs. 5,839 thousands [Previous
Year Rs. 4,415 thousands]) 508 46
334,258 57,493
SBIGFL
Annual Report 2009-2010 30
SBI Global Factors Ltd.
SBIGFL
31 Annual Report 2009-2010
SBI Global Factors Ltd.
Schedules Annexed To And Forming Part of The Profit & Loss Account
For The Year Ended March 31, 2010
SCHEDULE 13
INTEREST INCOME
Interest on Balances with Banks 11 269
Interest on Fixed Deposits with Banks - Gross 51,707 129,926
(Tax Deducted at Source Rs. 13,820 thousand;
Previous Year Rs. 26,327 thousand)
Other Interest Income 7 -
51,725 130,195
SCHEDULE 14
OTHER INCOME
Income on Foreign Exchange Transactions 24,218 43,766
Exchange Gain (net) 2,467 1,938
Liabilities No Longer Required, Written Back 1,703 1,007
Provision for Earlier Years Written Back 28,953 -
Miscellaneous 9,674 4,570
67,015 51,281
SCHEDULE 15
EMPLOYEE COSTS
Salaries * 95,010 72,922
Contribution to Provident Fund 4,805 3,372
Staff Welfare 7,727 5,340
Gratuity 2,189 494
Compensatory Absenses (1,258) 7
Bonus and Exgratia 6,000 30,000
114,473 112,135
*- Includes prior period expenditure of Rs. 282 thousand (Previous Year Nil)
SBIGFL
Annual Report 2009-2010 32
SBI Global Factors Ltd.
Schedules Annexed To And Forming Part of The Profit & Loss Account
For The Year Ended March 31, 2010
SCHEDULE 17
FINANCIAL EXPENSES
Interest on :
- Non-Convertible Redeemable Debentures 699,806 745,009
- Short Term Loans (including Overdraft) 915,718 2,024,492
- Others - 60
Bank Charges 10,234 9,878
Credit Rating Fees 8,684 6,318
Discount on Issue of Commercial Papers 339,256 160,904
Brokerage on Market Borrowing 2,780 -
Stamp Duty 3,846 1,719
1,980,324 2,948,380
SBIGFL
33 Annual Report 2009-2010
SBI Global Factors Ltd.
Schedule Annexed To And Forming Part of The Balance Sheet As At March 31, 2010 And Profit
And Loss Account For The Year Ended March 31, 2010
i) Basis of Accounting
The Accounts are prepared under historical cost convention from the books of account
maintained on accrual basis, and comply in all material respects with the accounting standards
notified by the Companies Accounting Standard Rules, 2006 as amended and the relevant
provisions of the Companies Act, 1956, of India (the Act).
SBIGFL
Annual Report 2009-2010 34
SBI Global Factors Ltd.
(b) In addition to II (a) above, the portion of advance/ asset covered by value of tangible
security will be provided for cumulatively as under:
Provision %
Sub-Standard Asset 20%
Period for which the advance remains doubtful
Period for which the advance remains doubtful Provision %
Upto 1 year 20%
More than 1 year and upto 3 years 50%
More than 3 years – full loan will migrate to Loss Asset 100%
viii) Investments
Current Investments are valued at lower of cost and fair value.
SBIGFL
35 Annual Report 2009-2010
SBI Global Factors Ltd.
x) Revenue Recognition
(i) Discount charges and interest on advances are accrued on time basis on the balances in
the prepayment accounts at the applicable discount/ interest rates.
(ii) Factoring charges are accrued on factoring of debts at the applicable rates.
(iii) Processing charges are accrued at the time of sanction of the factoring/ financing limits
by the Company.
(iv) Revenue excludes Service Tax, wherever recovered.
SBIGFL
Annual Report 2009-2010 36
SBI Global Factors Ltd.
Rs. ‘000
Assets taken over at book values:
Fixed Assets 12,567
Current Assets, Loans & Advances 16,357,694
Less: Liabilities taken over at book value:
Reserves & Surplus (after conversion of the preference shares)* 1,241,486
Secured Loans 8,454,714
Unsecured Loans 4,255,506
Current Liabilities and provisions 1,895,551
Net assets taken over 523,004
* In accordance with the Scheme of Amalgamation the balances in the following Reserves as at
the appointed date have been transferred to the Company at their book values:
Reserves & Surplus Rs. ‘000
Share Premium (after conversion of the preference shares) 486,996
General Reserve 518,062
Profit & Loss Account 10,000
Contingency Reserve 20,910
Statutory Reserve u/s 45IC of RBI Act. 205,518
1,241,486
SBIGFL
37 Annual Report 2009-2010
SBI Global Factors Ltd.
In accordance with the Scheme of Amalgamation, an amount of Rs. 51,829 thousands, being the
difference in the aggregate of the net assets of SBIF and the aggregate face value of the new shares
issued to the transferor company, pursuant to this scheme has been credited to the General
Reserve.
Pursuant to the scheme of amalgamation, the company has decided to change the policy of
providing depreciation on assets of the erstwhile SBIF (which was written down value method)
so as to make it consistent with the policy of providing depreciation in case of the company
(which is straight line method). As a result of the above, as per the scheme of amalgamation, an
amount of Rs. 4,268 thousands, being the difference in the carrying value of fixed assets as on
1st April 2009 (the appointed date) because of this change has been debited to General Reserve.
Pursuant to the scheme of amalgamation, the company has decided to change the policy of
provisioning norms on assets of the erstwhile SBIF so as to make it consistent with that of the
company. As a result of the above, as per the scheme of amalgamation, an amount of Rs. 50,237
thousands, being the difference in the provision for doubtful debts as on 1st April 2009 (the
appointed date) on account of this change has been credited to General Reserve.
In view of aforesaid amalgamation with effect from 1April, 2009, the figures for the current year
are strictly not comparable to those of the prior year.
3 Contingent Liabilities :
a) No provision has been made in respect of certain disputed demands of Income Tax/Service
Tax pending disposal of appeals/rectification filed by the company with the appellate authorities
amounting to Rs. 71,839 Thousand (As at March 31, 2009 Rs. 24,023 Thousand).
b) Contingent liability not provided for in respect of credit protection provided by the company
as an Import Factor amounted to Rs. 2,563 Thousand (as at 31st March, 2009 Rs. 11,985
Thousand). In case of the credit protection being enforced, the company has insured itself to the
extent of 90% of the liability which amounts to NIL (as at 31st March, 2009 Rs. 10,787 Thousand).
c) Contingent liability not provided for in respect of credit protection provided by the company
on Bank Letter of Credit (LCs) opened for the clients amounting to NIL (as at 31st March 2009 -
Rs. 11,485 Thousand).
SBIGFL
Annual Report 2009-2010 38
SBI Global Factors Ltd.
5 The company has a defined benefit gratuity plan for its employees and is funded in a separate gratuity
trust. Where as for employees of erstwhile SBI Factors it is a defined contribution plan and is funded
with an insurance company in the form of a group gratuity policy.
Disclosure for Gratuity in case of employees of the company, as per revised Accounting Standard 15
on “Employee Benefits”, (AS 15) is as follows:
Table 1
Amount to be Recognized in Balance Sheet
Year Ended 31/03/2010 Year Ended 31/03/2009
(in Rs. ‘000) (in Rs. ‘000)
Table 2
Expense Recognized in Statement of Profit & Loss Account
Year Ended 31/03/2010 Year Ended 31/03/2009
(in Rs. ‘000) (in Rs. ‘000)
Table 3
Reconciliation of Benefit Obligations & Plan Assets for the Period
SBIGFL
39 Annual Report 2009-2010
SBI Global Factors Ltd.
Table 4
Asset Information
Category of Assets Year Ended 31/03/2010 Year Ended 31/03/2009
% %
Government of India Securities 0% 0%
Corporate Bonds 0% 0%
Special Deposit Scheme 0% 0%
Equity Shares of Listed Companies 0% 0%
Property 0% 0%
Insurer Managed Funds 0% 0%
Others; Bank Deposits 100% 100%
Total 100% 100%
The approximate market value of the assets as at 31 March 2010 was Rs. 2,257 thousand a break up of the
same is as follows:
Category of Assets (Rs. ‘000) (Rs. ‘000)
Government of India Securities - -
Corporate Bonds - -
Special Deposit Scheme - -
Equity Shares of Listed Companies - -
Property - -
Insurer Managed Funds - -
Others; Bank Deposits 2.257 1,694
Total 2,257 1,694
Table 5
Summary of Actuarial Assumptions
Financial Assumptions at the Valuation Date:
March 31, 2010 March 31, 2009
Discount Rate 8.00% 8.00%
Expected Rate of Return on Plan Assets 8.00% 8.00%
Salary Escalation Rate 5% 5%
Disclosure for Gratuity in case of employees of erstwhile SBI Factors and Commercial Services Pvt. Ltd.,
as per revised Accounting Standard 15 on “Employee Benefits”, (AS 15) is as follows:
Changes in the present value of the defined benefit obligation are as follows:
31-Mar-10
(Rs. ‘000)
Opening defined benefit obligation 1942
Interest cost 175
SBIGFL
Annual Report 2009-2010 40
SBI Global Factors Ltd.
31-Mar-10
%
Investments with insurer 100%
The overall expected rate of return on assets is determined based on the market prices prevailing on that
date, applicable to the period over which the obligation is to be settled.
The principal assumptions used in determining gratuity and post-employment medical benefit obligations
for the Company’s plans are shown below:
31-Mar-10
%
Discount rate 8%
Expected rate of return on Plan assets 8%
Salary Escalation Rate 5%
SBIGFL
41 Annual Report 2009-2010
SBI Global Factors Ltd.
8 Disclosure on Derivatives
The Foreign Currency Exposures that have not been hedged by a derivatives instrument or otherwise as
on 31st March, 2010 are as follows:
Currency Amount
Currency Amount ‘000 Rs. ‘000
(a) Assets (Receivables)
USD 47,397 2,139,510
(52,058) (2,652,368)
EUR 138 8,333
(1,191) (80,364)
GBP 322 21,931
(9) (665)
(b) Liability (Payables)
USD 16 733
(160) (8,175)
EUR 9 523
(3) (172)
GBP 3 172
(2) 163
(c) Loans Payable
USD 50,052 2,259,354
(52,309) (2,665,157)
EUR 137 8,302
(1,155) (77,939)
GBP 495 33,671
- -
As the Company has Foreign Currency outstanding Receivables & Payables which offset each other, the net foreign
currency exposure is minimal.
The above disclosure have been made consequent to an announcement by the Institute of Chartered Accountant of
India in December, 2005, which is applicable to the financial period ending on or after 31st March, 2006.
SBIGFL
Annual Report 2009-2010 42
SBI Global Factors Ltd.
SIDBI
Allotted on Conversion of 7.5% 14,601
Compulsorily Convertible Preference Shares #
SBIGFL
43 Annual Report 2009-2010
SBI Global Factors Ltd.
SBI London
Opening balance 2,124,506
(759,984)
Loans taken during the 12,879,329
existence of relationship (7,035,600)
Loans repaid during the 12,814,043
existence of relationship (5,681,684)
Closing Balance 2,189,792
(2,124,506)
SBIGFL
Annual Report 2009-2010 44
SBI Global Factors Ltd.
3 BANK BALANCE
State Bank of India (Admin) CC A/c
Closing Balance -7,101
(-)
State Bank of Mysore (INR Loan)
Opening balance 647,442
(725,908)
Loans taken during the 5,142,835
existence of relationship (6,292,052)
Loans repaid during the 5,790,577
existence of relationship (6,370,517)
Closing Balance (290)
(647,452)
SBIGFL
45 Annual Report 2009-2010
SBI Global Factors Ltd.
4 INTEREST PAYABLE
SBI International - Mauritius -
(1,380)
SBI - London 1,349
(2,738)
State Bank of India ODD A/c 732
(-)
SBI London - FC Line of credits 1,180
(-)
5 INTEREST EXPENSES
SBI International - Mauritius 27,370
(42,691)
State Bank of Hyderabad 53,932
(106,952)
State Bank of Mysore 11,833
(93,524)
State Bank of Patiala 17,611
(97,698)
State Bank of Travancore 135,175
(16,374)
State Bank of India ODD A/c 5,184
(181,916)
SBI - London 21,935
(25,263)
SBI Commercial Paper 50,474
(-)
State Bank of India 178,507
(234,861)
6 SBI Capital Market Ltd 4,413
(-)
SBICAP Securities Ltd 2
(-)
7 GIFTS & PRESENATAION
State Bank of India 460
(499)
SBIGFL
Annual Report 2009-2010 46
SBI Global Factors Ltd.
8 RENT PAID
SBIGFL
47 Annual Report 2009-2010
SBI Global Factors Ltd.
11 Managerial Remuneration
12 Auditors’ Remuneration:
SBIGFL
Annual Report 2009-2010 48
SBI Global Factors Ltd.
15 Details of Purchase and Sale of Investments during the year ended March 31, 2010
Mutual Funds
Name of Scheme Amount of Purchase Quantity
(Rs. ‘000) Purchased/Sold
ABN/Fortis Money Plus Inst.Growth 1,700,149 125,566,937
ABN/Fortis Overnight -Inst.Plus Growth 1,700,000 152,040,422
Birla Cash Plus Inst.Premium Growth 153,000,000 10,595,415,469
BOB Pioneer Liquid IP Growth 79,850,000 7,803,326,675
BOB Pioneer Treas.Advantage Fund -Inst.Growth 850,099 84,027,591
Canbank Liquid plus Inst Growth 6,000,000 559,077,791
Canbank Liquid Super Inst Growth 107,822,000 9,870,244,482
Canbank MF Floating Rate STP Instt.Growth 100,000 7,346,891
DBS Chola Freedom Income STP Inst.-Cum-Org 6,200,663 429,086,510
DBS Chola Liquid Super Inst.Plan-Growth 13,952,537 1,121,825,192
DWS Insta Cash Plus Fund-Super Inst.Plan Growth 109,000,000 9,376,057,554
Fidelity MF Cash Fund Super I.P. Growth 6,900,000 566,721,502
Fidelity Ultra Short Term Debt Super IP Growth 3,150,313 272,299,389
HDFC Cash Management Fund savings Plan Growth 12,100,000 641,752,377
HDFC Cash Mgt.- Treasy.Adv. Wholesale Growth 8,501,103 433,992,173
HDFC MF Liquid Fund Premium-Growth 61,602,758 3,395,485,568
IDFC Cash Fund Super IP Growth 49,513,000 4,502,227,283
IDFC Money Manager -Treasury SIP Plan Growth 7,300,885 689,654,527
ING Vysya Liquid Super Inst.Plan Growth 11,560,095 869,923,862
ING Vysya Treasury Adv.Fund-Inst.Growth 200,025 16,571,972
J.P.Morgan India Liquid Fund Growth Plan 850,000 74,632,654
J.P.Morgan India Liquid Fund Super Inst .Growth Plan 2,450,000 210,258,614
J.P.Morgan India Treas.Fund Super Inst- Growth 150,014 12,615,652
J.P.Morgan India Treasury Fund Super Inst- Growth 2,550,319 220,200,333
JM High Liquidity Fund Super Ins.Plan-Growth 24,152,784 1,719,193,982
JM Money Manager Fund Super Plus Plan -Growth 8,250,981 654,475,687
Kotak Liquid Institutional Prem.Growth 140,950,000 7,692,029,945
LIC MF Floating Rate -Short Term Growth Plan 29,483,590 2,027,175,816
LIC MF Liquid Fund-Growth 45,281,824 2,761,860,019
Lotus MF-Liquid Inst.Premium Growth 5,820,000 480,516,346
Lotus Ultra Short Term Fund.Inst.Growth 2,550,376 209,956,445
Principal Cash Mangt.Inst.Premium -Growth 22,321,000 1,592,153,546
Pru ICICI Liquid Inst. Cum-P31INP 8,100,000 621,698,143
Pru ICICI Liquid Inst. Plus SIP Growth 171,550,000 7,828,624,021
Reliance Floating Rate Fund - Growth 50,515,000 3,534,345,367
Reliance Liquid Fund-Treasury Plan- Growth 1,690,000 75,536,691
Reliance Liquidity Fund -Growth 4,190,000 310,462,968
Reliance Liquidity Fund -Treasury Plan Inst.-Growth 41,459,000 1,904,807,857
Reliance Money Manager Fund Int.-Growth 3,650,425 2,970,595
Religare Liquid Fund Inst.Grwth 39,622,000 3,151,533,177
Religare Liquid Fund.Super Inst.Growth 39,211,789 3,172,078,156
Religare Ultra Short Term Fund.Inst.Growth 4,250,467 343,402,388
SBI Magnum Insta Cash Fund-Cash Option 3,450,000 172,085,380
SBI MF Inst.Cash Plan-Growth 1,500,000 78,767,943
SBI MF Magnum Insta Cash Option 657,000 33,277,676
SBI MF Premier Liquid Super IP Growth 1,230,000 87,508,551
SBI-SHF-Ultra Short Term Fund-Int.Plan Growth 2,450,225 209,437,379
Sundaram Money Fund Super IP Growth 9,679,610 512,225,986
Sundaram Ultra ST Fund Super Inst.Growth 6,350,696 528,608,461
Tata MF Floating Rate Short Term Inst.Growth 2,000,000 143,227,893
Tata MF Liquid Super High Inv.Dividend Appreciation 3,120,000 1,892,520
Tata MF Liquid Super High Invest.Plan Growth 19,600,000 11,834,432
TATA Treasury Manager Super High Inv.Plan-Growth 1,650,182 1,606,679
Templeton India TMA Super IP Growth 7,750,000 5,819,104
Templeton India Ultra Short Bond Fund SIP Growth 2,550,306 220,808,271
Templeton MF Floating Rate ST IP Growth 2,050,000 154,285,989
UTI Liquid Cash Plan Institutional Growth 2,300,000 1,563,145
UTI Liquid Inst.Cash Plan Growth 3,650,000 2,494,927
UTI Money Market Fund Institutional Growth Plan 850,000 84,768,582
UTI Money Market Fund Growth Plan 19,512,734 327,080,732
UTI Treasury Advantage Fund IP- Growth 9,901,206 8,157,304
Total 1,390,305,155 92,698,623,519
Note 1: No loss has been incurred on any sale during the year.
SBIGFL
49 Annual Report 2009-2010
SBI Global Factors Ltd.
Amount Outstanding
ASSETS SIDE: Current Year Previous Year
Rs. ‘000 Rs. ‘000
2 Break-up of Loans and Advances including bills
receivables [other than those included
in (3) below: ] #
(a) Secured - -
(b)Unsecured 53,672 26,851
(Excludes Advance Payment of Tax)
Current Investments: - -
1. Quoted : - -
(i) Shares : (a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - -
(iv) Government Securities - -
(v) Others (please specify) - -
2. Unquoted :
(i) Shares : (a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - -
SBIGFL
Annual Report 2009-2010 50
SBI Global Factors Ltd.
Amount Outstanding
2. Unquoted :
(i) Shares : (a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds 189,360 -
(iii) Units of mutual funds - -
(iv) Government Securities - -
(v) Others (please specify) - -
5 Borrower group-wise classification of all leased assets, stock-on-hire and loans and advances:
1. Related Parties
(a) Subsidiaries
(b) Companies in the same group
(c) Other related parties - - -
SBIGFL
51 Annual Report 2009-2010
SBI Global Factors Ltd.
6 Investor group-wise classification of all investments (current and long term) (both quoted and
unquoted):
7 Other Information
Current Year Previous Year
Rs. ‘000 Rs. ‘000
Particulars
(i) Gross Non Performing Assets
(a) Related Party - -
(B) Other than Related Parties 6,351,920 3,132,211
17 Disclosures as per circular No. DNBS (PD). CC. No. 125/03.05.002/2008-2009 dated August 1, 2008,
relating to guidelines for NBFC-ND-SI as regards to Capital Adequacy, Liquidity and disclosure norms.
A) CRAR
SBIGFL
Annual Report 2009-2010 52
SBI Global Factors Ltd.
* Exposure is unsecured
18. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever
necessary. Accordingly, amounts and other disclosures for the preceding year are included as an
integral part of the current year financial statements and are to be read in relation to the amounts and
other disclosures relating to the current year.
As per our attached report of even date For and on behalf of the Board of Directors
For Contractor,
Nayak & Kishnadwala
Chartered Accountants O.P. Bhatt Sangeet Shukla
G. S. Nayak Chairman Executive Vice Chairman & CEO
Partner
M. No. 38127 Amita Joshi
ICAI Firm Registration No.101961W Company Secretary
Mumbai Mumbai
Dated : April 27, 2010 Dated : April 27, 2010
SBIGFL
53 Annual Report 2009-2010
SBI Global Factors Ltd.
Balance Sheet In US $
Balance Sheet As At March 31, 2010
* 1 US $ = Rs. 44.90
** 1 US $ = Rs. 50.72
Note: Previous year’s figures have been regrouped / recast / reworked / rearranged / reclassified
wherever necessary
SBIGFL
Annual Report 2009-2010 54
SBI Global Factors Ltd.
SBIGFL
55 Annual Report 2009-2010
SBI Global Factors Ltd.
Additional information pursuant to Part IV of Schedule VI to the Companies Act, 1956, of India
Balance Sheet Abstract and Company’s General Business Profile
I Registration Details
Registration No. U 6 5 9 2 9 M H 2 0 0 1
P T C 1 3 1 2 0 3
State Code 1 1
V Generic Names of three Principal Products/Services of the Company (as per monetary terms)
Item Code No.(ITC Code) Product Description
N A F A C T O R I N G O F
D E B T S
For and on behalf of the Board of Directors
SBIGFL
Annual Report 2009-2010 56
SBI Global Factors Ltd.
Chandigarh Indore
SCO 51-52, Sector 8C, Madhya Marg, LG-1&2, Starlit Towers, YN Road,
Chandigarh - 160 018 Indore 452 003
Tel: +91-172-4668752 Tel: 0731 4280025
Fax: +91-172-4668751 Fax: 0731 4280023
SBIGFL
57 Annual Report 2009-2010
SBI Global Factors Ltd.
Shar
Sharee of MSME
MSMEss in number of SBIGFL
SBIGFL’’s Client Account
Accountss
as on March 31, 2010
MSME
Non-MSME
43%
57%
SBIGFL
SBIGFL’’s International Factoring Market Shar
Sharee
SBIGFL
Competitors 30%
70%
SBIGFL
SBIGFL’’s Domestic Factoring Market Shar
Sharee
SBIGFL
20 %
Competitors
80 %
SBIGFL
Annual Report 2009-2010 58