MIRA INFORM REPORT

Report Date :

02.06.2011

IDENTIFICATION DETAILS

Name :	L AND T GENERAL INSURANCE COMPANY LIMITED
Registered Office :	L and T House, Ballard Estate, Mumbai-400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.12.2007
Com. Reg. No.:	11-177117
Capital Investment / Paid-up Capital :	Rs.290.000 Millions
CIN No.: [Company Identification No.]	U66030MH2007PLC177117
TAN No.: [Tax Deduction & Collection Account No.]	MUML07225B
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Providing Insurance Related Services.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 830000
Status :	Moderate
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Larsen and Toubro Limited. It is a relatively new company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. In view of strong holding, company can be considered normal for 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.

INFORMATION DECLINED BY

Name :	Mr. Chettan
Designation :	Accountant
Contact No.:	91-22-61230000
Date :	31.05.2011

LOCATIONS

Registered Office :	L and T House, Ballard Estate, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-67525656
Fax No.:	91-22-67525893
E-Mail :	vinaytripathi@ltfinance.com krishnakumar@ltfinance.com

DIRECTORS

As on 23.08.2010

Name :	Mr. Yeshwant Moreshwar Deosthalee
Designation :	Director
Address :	1001, Prabhu Kutir, 15, Alta Mount Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	06.09.1946
Date of Appointment :	27.12.2007
Name :	Mr. Sivaraman Narayanaswami
Designation :	Director
Address :	43, Kalpataru Residency, Tower A, Near Cine Planet, Sion (East), Mumbai-400022, Maharashtra, India
Date of Birth/Age :	12.04.1958
Date of Appointment :	27.12.2007
Name :	Mr. Ramamurthi Shankar Raman
Designation :	Director
Address :	Kalpataru Royale, Flat No. 123, 12^th Floor, Plot No. 110, Road No. 29, Off Sion Circle, Sion (East), Mumbai-400022, Maharashtra, India
Date of Birth/Age :	20.12.1958
Date of Appointment :	27.12.2007
Name :	Mr. Mukund Manohar Chitale
Designation :	Director
Address :	4/46, Vishnuprasad Society, Shahaji Raje Marg, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	16.11.1949
Date of Appointment :	26.05.2010
Name :	Mr. Haris Ansari
Designation :	Director
Address :	Flat No. 503, Serin Nyati Enclave, Nyati County Mohammadwadi, Pune-411028, Maharashtra, India
Date of Birth/Age :	01.04.1939
Date of Appointment :	26.05.2010
Name :	Mr. Joydeep Kumar Roy
Designation :	Whole Time Director
Address :	33, Plot-212, ‘A’ Wing, Guldev Sagar CHS Limited, R. K. Patkar Marg, Bandra (W), Near Bank of Punjab, Mumbai-400050, Maharashtra, India
Date of Birth/Age :	26.03.1967
Date of Appointment :	26.05.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.08.2010

Names of Shareholders	No. of Shares
Larsen and Toubro Limited, India	175139994
Jagdish Pandurang Nayak	1
Y.M. Deosthalee	1
Narayanaswami Sivaraman	1
Ramamurthi Shankar Raman	1
Narayanaswami Hariharan	1
R. Govindran	1
Total	175140000

As on 23.08.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Insurance Related Services.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

Not Available

Facilities :

Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Fro Related Parties:
From L and T Finance Limited	0.000	2.000
Total	0.000	2.000

Banking Relations :	--
Auditors :
Name :	Sharp and Tannan Chartered Accountant
Address :	Ravindra Annexe, 194, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22047722/23 / 66338343/47
Fax No.:	91-22-66338352
E-Mail :	sharp@bom3.vsnl.net.in
Holding Company:	Larsen and Toubro Limited (L99999MH1946PLC004768)
Fellow Subsidiary Company:	L and T Finance Limited

CAPITAL STRUCTURE

As on 23.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
175140000	Equity Shares	Rs.10/- each	Rs.1751.400 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29000000	Equity Shares	Rs.10/- each	Rs.290.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		290.000	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(80.864)	(7.723)	0.000
NETWORTH		209.136	(7.223)	0.500
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	2.000	0.000
TOTAL BORROWING		0.000	2.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		209.136	(5.223)	0.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.852	0.000	0.000
Capital work-in-progress		192.950	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	0.313	0.485	0.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.887	0.000	0.000
Total Current Assets		44.200	0.485	0.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.314	5.708	0.185
	Other Current Liabilities	7.650	0.000	0.000
	Provisions	0.902	0.000	0.006
Total Current Liabilities		29.866	5.708	0.191
Net Current Assets		14.334	(5.223)	0.309
MISCELLANEOUS EXPENSES		0.000	0.000	0.191
TOTAL		209.136	(5.223)	0.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	0.000	0.000
		Other Income	0.333	0.000
		TOTAL	0.333	0.000
Less	EXPENSES
		Personal Expenses	34.762	3.051
		Administrative and Others Expenses	38.564	4.480
		TOTAL	73.326	7.531
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(72.993)	(7.531)
Less/ Add	DEPRECIATION/ AMORTISATION		0.149	0.000
	PROFIT BEFORE TAX		(73.142)	(7.531)
Less	TAX		0.000	0.000
	PROFIT AFTER TAX		(73.142)	(7.531)
Less/ Add	PRELIMINARY EXPENSES		0.000	(0.191)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(7.722)	0.000
	BALANCE CARRIED TO THE B/S		(80.864)	(7.722)
	Earnings Per Share (Rs.)		(26.05)	(150.63)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(21964.56)	(0.00)	NA
Net Profit Margin (PBT/Sales)	(%)	(0.00)	(0.00)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(158.82)	(1552.78)	NA
Return on Investment (ROI) (PBT/Networth)		(0.35)	1.04	NA
Debt Equity Ratio (Total Liability/Networth)		0.14	(1.07)	0.38
Current Ratio (Current Asset/Current Liability)		1.48	0.08	2.62

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Due to Larsen and Toubro Limited (Holding Company)	0.400	0.000	0.178
Due to Larsen and Toubro Limited ( Ultimate Holding Company)	0.000	0.000	0.007
Due to Others	20.914	5.708	0.000
Total	21.314	5.708	0.185

PERFORMANCE OF THE COMPANY

The Company is yet to commence its commercial operations.

RESOURCES

During the year, the Company had allotted 2, 89, 50,000 Equity Shares of Rs.10/- each, for cash at par, aggregating to Rs.289.500 millions to Larsen and Toubro Limited, the holding company. This resulted in increase of paid-up equity share capital by Rs.289.500 millions.

AS PER WEBSITE DETAILS:

BOARD OF DIRECTORS:

Y. M. Deosthalee, Whole-time Director and CFO of L and T Group

Mr. Deosthalee joined Larsen and Toubro Limited (L and T) in 1974 and held positions at various offices of the company all over the Country until assuming charge as General Manager (Finance) in 1990. In addition to assuming total responsibility of the Finance portfolio, he also oversees the Personnel and HR functions in the Company.

In March 1995, Mr. Deosthalee was appointed as whole-time Director on the Board of the Company and designated Sr. Vice President (Finance). Currently, he is the Chief Financial Officer of L and T and on the Boards of various L and T Group of Companies. He was instrumental in setting up L and T Finance Limited in 1994, a wholly-owned subsidiary of Land T and continues to nurture its operations and provide strategic direction. He also plays an important role in Larsen and Toubro Infotech Limited, the IT arm of Land T, which offers software solutions to clients globally. As a Trustee of the newly formed L and T Public Charitable Trust, a major CSR initiative of the Company, he takes a keen interest in its various welfare activities.

A member of the Western Regional Council and the National Council on Corporate Governance of the Confederation of Indian Industry (CII), Mr. Y. M. Deosthalee has chaired a number of meetings including CFO Summits organized by CII. He is a member of the Bombay Management Association and member of the Managing Committee of Bombay Chamber of Commerce and Industry.

N. Sivaraman, Head of Land T Financial Services

Mr. Sivaraman is a seasoned Chartered Account with 28 years of rich experience; has been with Land T since 1982. Presently, he serves as a director in L and T’s various subsidiaries, even as he oversees the entire financial services business.

Mr. Sivaraman has led several critical initiatives of L and T such as the demerger of the Cement Business of the Company, advising on first ever ‘BOOT’ power project, right from its conception to execution. Adding more firsts to the armoury, he also piloted the structuring of a bid on Build-Own-Lease-Transfer basis, and pioneered its finance through capital market instruments. He has held a variety of roles within Land T Group including Treasury, Project Finance, Investor Relations and Corporate Finance.

R. Shankar Raman, Sr. Vice President - Finance and Legal of Larsen and Toubro Limited

Mr. R. Shankar Raman, is a Chartered Accountant, who brings with him extensive professional experience of 28 years, wherein he has served leading corporations in various capacities in the financial domain. Presently, he oversees a broad spectrum of Land T’s crucial activities such as Finance and Treasury, Corporate Accounts, Taxation, Insurance, Risk Management, Legal and Investor Relations. Besides, he is also on the management board of several companies including international subsidiaries of the L and T Group. A member of the Western Indian Regional Council of Confederation of Indian Industries, Mr. Shankar Raman has participated and presented papers in several conventions/seminars both in India and abroad.

M. M. Chitale, Independent Director

Mr. M. M. Chitale, a fellow member of the Institute of the Chartered Accountants of India is a renowned professional having standing of more than 35 years and is a partner of Mukund. M. Chitale and Company The said firm provides services in the area of auditing tax consultancy and management consultancy to various banking insurance and manufacturing firms.

Mr. Chitale is holding directorship in many renowned Companies viz. Larsen and Toubro Limited, Shriram Transport Finance Company Limited, ONGC Mangalore Petrochemicals Limited , etc. Mr. Chitale is also associated as the Member of Governing Council of Banking Codes and Standards Board of India. He is also the Chairman of the Ethics Committee of the Stock Exchange, Mumbai. He is a member of Advisory Board on Bank, Commercial and Financial Frauds, of the group for Amalgamation of Urban Co-operative Banks and also of Supervision of NABARD.

In the past, Mr. Chitale has also served on boards of ONGC, IDBI Bank Ltd, LIC Housing Finance Limited , SBI Mutual Funds Trustee Co. Pvt. Limited , etc. Mr Chitale has held various positions in professional bodies such as President of The Institute of Chartered Accounts of India in the year 1997-98, member of The International Auditing Practices Committee of The International Federation of Accountants from January 1998 to June 2000, etc.

In addition to the above, Mr. Chitale has served in various committees such as Member of The Committee for Collective Investment Schemes appointed by SEBI (Dr. S.A. Dave Committee), Member of Working Group on Restructuring of Weak Public Sector Banks appointed by RBI (Verma Committee), Member of Committee on Procedures and Performance Audit of Public Services appointed by RBI (Dr. Tarapore Committee).

He has presented papers on subjects such as accounting, auditing, Corporate Governance, banking, Quality Controls at various seminars and conferences held at national and international levels.

H. Ansari, Independent Director

Mr. Ansari is a former Member (Non-life) of the Insurance Regulatory Development Authority (IRDA), India and has over four decades of experience in the insurance industry. He started his career in insurance as a Direct Recruit Officer with LIC and has subsequently held various positions at Oriental Insurance and General Insurance Corporation of India.

During his tenure with the Regulatory Authority, Mr. Ansari assisted in establishing an independent and transparent regulatory mechanism in the country and in preparing prudent regulations which paved the way for the opening up of the insurance sector in India.

He was associated with the Tariff Advisory Committee in various Capacities and was also on its Board. He was also a member of the Board of Education of the Insurance Institute of India and a member of the FICCI committee on Insurance and Pensions.

Mr. Ansari was Chairman of the Motor Committee appointed by the TAC Board in 2001 to review and rationalize the India Motor Tariff. He is also a director on the board of Cholamandalam MS General Insurance Company Limited Mr. Ansari has contributed articles to Asia Insurance Post, FORTE Insurance Journal and the IRDA Journal. He is also on the Editorial Board of Asia Insurance Post.

Joydeep Roy, Chief Executive and Whole-time Director, Land T Insurance

Joydeep Roy is the Chief Executive and Whole-time Director of Land T General Insurance Company Limited. He has been the founding employee of the Company and has been instrumental in getting the Company formed and licensed right from the beginning. His focus on customer service and drive in building technological solutions has led to the extensive technology deployment in the Company particularly in making it easy for customers to deal with various aspects with the Company.

Prior to joining Land T, he spent close to 7 years in Tata AIG Life where his responsibilities spanned across 3rd party distribution to running the day to day operations in the Branches and Zones of the Company. His passion for rural and micro insurance business saw him setting up a separate rural division for the Company which has emerged as a sustainable business across many states and won accolades from various international bodies across the world. He was also selected and certified as a Global General Manager of AIG and was involved in several live projects across the Globe. Prior to that he has spent many years in Standard Chartered Bank, Wipro Infotech, Compaq Asia and Godrej and Boyce.

He has been a regular speaker at many national and international conferences on insurance and has been part of subcommittees in CII and FICCI. He is a mechanical engineer and an MBA from IIM Calcutta and has a close to 20 year professional career behind him.

BALANCE SHEET FOR THE YEAR ENDED MARCH 31, 2011

Rs. in Millions

PARTICULAR	31.03.2011
SOURCES OF FUNDS:
Share Capital	2000.000
Reserves and Surplus	0.000
Fair Value Change Account	0.173
Borrowings	0.000
(Accumulated Losses)	(674.068)
Total	1326.105
APPLICATION OF FUNDS:
Investment	762.070
Loans	0.000
Fixed Assets (Net) Including Capital Work in Progress	713.966
Current Assets:
Cash and Bank Balances	47.661
Advances and Other Assets	118.360
Total (A)	166.021
Current Liabilities
Sundry Creditors	98.969
Other Current Liabilities	122.839
Provisions	94.144
Total (B)	315.952
Net Current Assets (A-B)	(149.931)
Miscellaneous Expenditure	0.000
Total	1326.105

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011

Rs. in Millions

PARTICULAR	31.03.2011
OPERATING PROFIT / LOSS
Fire Insurance	(87.311)
Marine Insurance	(17.869)
Miscellaneous Insurances	(519.985)
Total	(625.165)
Income for Investments
Interest, Dividend and Rent-Gross	37.023
Profit on Sale of Investment	1.225
Less: Loss on Sale of Investments	(4.740)
Other Income	0.700
Total (A)	(591.650)
Provision (Other than taxation)
For diminution in the value of investments	0.000
For doubtful debts	0.000
Others (to be specified)	0.000
Other Expenses
Expenses other than those related	1.274
Bad debts written off	0.000
Directors fees	0.280
Total (B)	1.554
Profit / Loss Before Tax	(593.204)
Provision for Taxation	0.000
Profit / Loss After Tax	(593.204)
Balance of Profit / Loss Brought Forward From Last Year	(80.864)
Balance Carried Forward to Balance Sheets	(674.068)

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records 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.44.89
UK Pound	1	Rs.73.85
Euro	1	Rs.64.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.