MIRA INFORM REPORT

Report Date :

13.12.2012

IDENTIFICATION DETAILS

Name :	BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED
Registered Office :	Great Eastern Plaza, 1st Floor, Airport Road, Yerawada, Pune – 411006, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.09.2000
Com. Reg. No.:	015329
Capital Investment / Paid-up Capital :	Rs. 1102.273 Millions
CIN No.: [Company Identification No.]	U66010PN2000PLC015329
TAN No.: [Tax Deduction & Collection Account No.]	PNEB02323G
PAN No.: [Permanent Account No.]	AABCB5730G
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Subject is in the business of underwriting general insurance policies relating to fire, marine and miscellaneous segments.
No. of Employees :	Information declined by management

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 38400000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between Bajaj Finserv Limited and Allianz SE. It has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the country. It is a well established and highly reputed company having excellent track. Financial position of the company is sound and healthy. Trade relations are reported as praiseworthy. Business is active. Payments terms are regular and as per commitments. The company can be considered 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	iAAA
Rating Explanation	Highest claims paying ability. It indicates fundamentally strong positions.
Date	March 28, 2012

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 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON CO-OPERATIVE (91-22-66026777)

LOCATIONS

Registered/ Head Office :	Great Eastern Plaza, 1st Floor, Airport Road, Yerawada, Pune – 411006, Maharashtra, India
Tel. No.:	91-20-66026777/ 6666
Fax No.:	91-20-66026789/ 6667
E-Mail :	info@bajajallianz.co.in milind.choudhary@bajajallianz.co.in nitin.satarkar@bajajallianz.co.in websaleslife@bajajallianz.co.in websales@bajajallianz.co.in
Website :	http://www.bajajallianz.co.in http://www.bajajallianz.com

DIRECTORS

AS ON 13.07.2012

Name :	Mr. Rahul Bajaj
Designation :	Chairman [Also Chairman, Bajaj Auto Limited, Bajaj Finserv Limited, Bajaj Holdings and Investments Limited]
Name :	Tapan Singhel
Designation :	Managing Director and CEO (w.e.f. 1st April 2012)
Name :	Mr. Niraj Bajaj
Designation :	Director [Also Chairman and MD, Mukund Limited]
Name :	Mr. Sanjiv Bajaj
Designation :	Director [Also MD, Bajaj Finserv Limited, Bajaj Holdings and Investment Limited]
Name :	Mr. Ranjit Gupta
Designation :	Director [Also President (Insurance), Bajaj Finserv Limited]
Name :	Mr. Manuel Bauer
Designation :	Director [Also Member of the Board of Management, Growth Markets, Allianz SE]
Name :	Mr. David Fried
Designation :	Director (w.e.f 12th May 2012) [Chief Executive Officer, Asia Pacific Allianz SE Insurance Management Asia Pacific]
Name :	Mr. Dipak Poddar
Designation :	Director [Also Executive Chairman, Poddar Developers Limited]
Name :	Mr. Sanjay Asher
Designation :	Director [Also Partner, Crawford Bayley and Company]
Name :	Mr. Suraj Mehta
Designation :	Director [Also Former CEO, Nabil Bank Limited]
Name :	Mr. S. H. Khan
Designation :	Director [Also Former Chairman, IDBI Limited]
Name :	Mr. Manu Tandon
Designation :	Director [Also Former MD, Elantas Beck India Limited]

KEY EXECUTIVES

Name :	V. Jeyaraman
Designation :	Chief Financial Officer
Name :	Dr. (Mrs.) Asha Joshi
Designation :	Appointed Actuary
Name :	Mr. Onkar Kothari
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Not Divulged

BUSINESS DETAILS

Line of Business :

Subject is in the business of underwriting general insurance policies relating to fire, marine and miscellaneous segments.

Corporate and Retail Products :

Fire and Engineering Ø Fire (including Consequential Loss) Ø Engineering-Projects (includes EAR, CAR and ALOP) Ø Enginseering-Operational (includes Contractor’s Plant and Machinery, Electronic Equipment, Loss of Profts, Boiler Explosion, Ø Machinery Breakdown, Deterioration of Stocks) • Industrial All Risk Motor Ø Private Cars • Two Wheelers • Commercial Vehicles • Drive Assure Health Insurance Ø Personal Guard • Hospital Cash • Health Guard • Critical Illness • Silver Health • e-Opinion • Health Ensure • Star Package Ø Premium Personal Guard • Extra Care • Insta Insure Travel Insurance Travel Companion •Travel Elite • Students Travel • Corporate Plan •Swades Yatra • Pravasi Bhartiya Bima Yojana Asset Insurance Ø Householders Package • Shopkeepers Package • Office Package • Motor Dealers Package • Plate Glass Speciality Lines Ø Marine Cargo • Marine Hull • Aviation • Credit Insurance • Sports Insurance •Film Insurance • Wedding Insurance Ø Golf Insurance Liability Insurance Ø Commercial General Liability • Directors & Officers Liability • Public Offering of Securities Insurance Ø Public Liability/Public Liability Act • Product Liability • Professional indemnity Rural Insurance Ø Farmers Package • Cattle Insurance Miscellaneous Ø Money • Fidelity Guarantee • Burglary • Workmen’s Compensation

GENERAL INFORMATION

No. of Employees :	Information declined by management
Bankers :	Ø Axis Bank Ø Citibank Ø Deutsche Bank Ø HDFC Bank Ø Standard Chartered Bank

Banking Relations :	--
Statutory Auditors	Ø Dalal and Shah Chartered Accountants Ø Kirtane and Pandit Chartered Accountants
Holding Company :	Ø Bajaj Finserv Limited Ø Bajaj Finserv House Owners Association
Group Company :	Ø Bajaj Auto Limited Ø Bajaj Holdings and Investments Limited Ø Bajaj Allianz Financial Distributors Limited Ø Bajaj Electricals Limited Ø Bajaj Finance Limited Ø Bajaj Allianz Life Insurance Company Limited Ø Bajaj Financial Soluations Limited Ø Allianz Insurance Management Asia Pacific Ø Allianz Investment Management Singapore Pte Ø Allianz Global Corporate and Speciality AG, US Ø Allianz Global Corporate and Speciality AG, Canada Ø Allianz Global Corporate and Speciality AG, Spain Ø Allianz Global Corporate and Speciality AG, UK Ø Allianz Global Corporate and Speciality AG, Netherlands Ø Allianz Global Corporate and Speciality AG, Italy Ø Allianz Global Corporate and Speciality AG, Australia Ø Allianz Global Corporate and Speciality AG, Swtzerland Ø Allianz Global Corporate and Speciality Denmark - Nordic Region Ø Allianz Global Corporate and Speciality – Malaysia Ø Insurance Joint Stock Company Group Allianz Russia Ø Allianz Global Corporate and Speciality AG, Munich Ø Allianz AG Reinsurance, branch Asia Pacific Ø Allianz Marine and Aviation Versicherungs AG Ø Allianz Hongkong - Name changed from Allianz China Ø Allianz Ins Company of Singapore – PTE Ø Allianz Belgium Ø Allianz Elementar Versicherungs – Austria Ø Allianz Global Corporate and Speciality – France Ø Euler Hermes Cr Insurance (S) Limited Ø Allianz CP General Ins Company Limited Ø PT ASURANSI Allianz Life Indonesia Ø Allianz Risk Consultants, LLC Ø Allianz Services (UK) Limited Ø Allianz Global Corporate and Speciality AG Singapore Ø Allianz Managed Operations and Services SE Ø AGA Assistance (India) Private Limited
Enterprise where key mgmt personnel is having significant influence :	Ø Mukand Engineers Limited Ø Mukand Limited Ø Mukund Bekaert wire Industries Private Limited Ø Hind Musafir Agency Limited Ø Allianz Insurance Company Lanka Limited
Subsidiary of Joint Venture Partner :	Ø Allianz SE India Liaison Office

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
125,000,000	Equity Shares	Rs. 10/- each	Rs. 1250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
110,227,250	Equity Shares	Rs.10/- each	Rs. 1102.273 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
Share Capital	1102.273	1102.273	1102.273
Reserves and Surplus	8499.988	7263.447	6830.724
Fair Value Change Account	(15.007)	(9.666)	(5.094)
Borrowings	--	--	--
Total	9587.254	8356.054	7927.903
APPLICATION OF FUNDS
Investments	38656.891	33094.874	25314.595
Loans	--	--	--
Fixed Assets
Gross Block	3351.292	2826.456	2496.177
Less:- Accumulated Depreciation	1454.846	1367.694	1227.583
Net Block	1896.446	1458.762	1268.594
Capital Work In Progress including Capital advances	184.379	101.971	264.964
	2080.825	1560.733	1533.558
Deferred Tax Asset	376.010	417.520	378.480
Current Assets
Cash and Bank Balances	8926.625	6655.917	2964.880
Advances and Other Assets	3749.648	2736.575	7132.312
Sub-Total (A)	12676.273	9392.492	10097.192
Current Liabilities	29084.245	23104.101	18008.031
Provisions	15118.500	13005.464	11387.891
Sub-Total (B)	44202.745	36109.565	29395.922
Net Current Assets (C) = (A - B )	(31526.472)	(26717.073)	(19298.730)
Miscellaneous Expenditure	--	--	--
Total	9587.254	8356.054	7927.903

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2012	31.03.2011	31.03.2010
	Operating Profit/ (Loss), as per Revenue Accounts of
	(a) Fire Insurance Business	542.760	372.386	396.395
	(b) Marine Insurance Business	152.611	99.468	(26.753)
	(c) Miscellaneous Insurance Business	480.513	(493.357)	857.751
		1175.884	(21.503)	1227.393
	Income From Investments
	(a) Interest, Dividends and Rent -Gross	722.120	626.032	565.028
	(b) Amortisation of Discount/(Premium)	25.391	2.572	(10.957)
	(c) Profit on sale/redemption of investments	5.624	15.211	26.963
	Less:- (Loss) on sale/redemption of investments	(7.508)	(10.795)	(3.462)
		745.627	633.020	577.572
	Other Income - Miscellaneous Income	32.110	26.003	21.113
	Total(A)	1953.621	637.520	1826.078
	Provisions (Other than taxation)
	(a) For diminution in the value of investments	--	--	--
	(b) For doubtful debts	(0.669)	3.282	3.138
	( c) Others (to be specified)	--	--	--
	Other Expenses
	(a) Expenses other than those directly related to the insurance business	14.398	15.104	16.701
	(b) Bad debts written off	--	--	8.198
	(c) Preliminary Expenses written off	--	--	--
Less	Total (B)	13.729	18.386	28.037
	Profit before tax	1939.892	619.134	1798.041
Less	Provision for taxation
	Current Tax	661.841	225.451
	Fringe Benefit Tax	--	--
	Deferred Tax expense	41.510	(39.040)
		703.351	186.411	589.763
	Profit after	1236.541	432.723	1208.278
	Profit available for appropriation	1236.541	432.723	1208.278
	Appropriations	--	--	--
	Balance of Profit brought forward last year	5597.250	5164.527	3956.249
	Balance carried forward to Balance Sheet	6833.791	5597.250	5164.527
	Earnings per Share: Basic	11.22	3.93	10.96

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	1382.727	1150.590	1289.200

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BACKGROUND

Subject ('the Company') was incorporated on 19th September 2000, as a company under the Companies Act, 1956 ('the Act'). The Company is registered with Insurance Regulatory and Development Authority ('IRDA') and is in the business of underwriting general insurance policies relating to fire, marine and miscellaneous segments. The IRDA renewed the Company's certificate of registration to sell general insurance policies in India for the year 2012-13 vide its certificate of Renewal of Registration dated 16 March 2012. The renewal certificate is with effect from 1 April 2012 and is valid upto 31 March 2013.

BUSINESS PERFORMANCE DURING THE YEAR

The focus of the Company continued to be on growth with profitability during the year 2011-12 as well. The Company's gross written premiums, excluding inward business from the IMTPIP, grew from Rs. 29,055 Million in 2010-11 to Rs. 33,376 Million in 2011-12, which is an increase of 14.9%. The combined ratio, excluding losses from the IMTPIP, stood at 96.1% as against 98.6% recorded in 2010-11 and, including the Pool losses, the ratio decreased from 110.2% in 2010-11 to 107.2% in 2011-12. In a market where combined ratios are in excess of 110%, this is a creditable achievement and a vindication of the Company's strong underwriting focus and cost management skills.

The Net Earned Premium during the year excluding the premiums from motor pool was Rs. 21,955 Million as against Rs. 19,309 Million in the previous year, a growth of 13.7%.

The Company continued to retain the second position in the Private Sector with a market share of 6.3%. They continue to pursue their efforts to improve their renewal business, which stands for better risk and translates into better profitability, while reinforcing the customer's faith the Company's service. During the year, the Company sold over 5.9 Million Policies. The number of claims reported in 2011-12 was 547,464 as against 561,720 reported for the previous year.

RECOGNITION AND AWARDS

The Company continues to be at forefront of setting benchmarks in customer service. “Customer First Always” continues to be the most important core value of the Company, which is exemplified by the three prestigious Awards received by them, namely the "General Insurer of the Year" award for 2012 presented by Bloomberg UTV Financial Leadership Award, the "Best Leading Private Player-Non Life” in the CNBC TV18 Best Bank and Financial Institution Awards FY 2010-11 and the “Best Travel Insurance Company” by CNBC Awaaz Travel Awards, 2011.

MANAGEMENT REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012

With respect to the operations of Bajaj Allianz General Insurance Company Limited (“the Company”) for the year ended 31 March 2012 and results thereof, the management of the Company confirms and declares that:

1. The registration certificate granted by Insurance Regulatory and Development Authority (IRDA) is valid and the same has been renewed for the year 2012-13.

2. We certify that all dues payable to the statutory authorities have been duly paid except where the Company has preferred appeals.

3. The shareholding pattern is in accordance with the statutory and regulatory requirements. No shares have been transferred during the year.

4. The Management has not invested any funds of holders of policies in India, directly or indirectly outside India.

5. The required solvency margins under the Insurance Act, 1938 have been maintained.

6. We certify that the values of all the assets have been reviewed on the date of Balance Sheet and in management's belief, the assets set forth in the Balance Sheet are shown in the aggregate at amounts not exceeding their realizable or market value.

7. As a general insurer, the Company is exposed to a variety of risks. The primary risks are that of frequency of claims as measured by the number of claims in relation to number of policies outstanding and severity of claims as measured by the average amount per claim. The frequency and severity risks vary according to the lines of business.

The Company has a multi layer reinsurance program which seeks to optimize the retention of risk at each policy level as well as at the level of lines of business. The Company's retention of risks varies according to lines of business and is decided after considering relevant factors such as capital and solvency position, available reinsurance capacity and adequacy of reinsurance terms. The automatic reinsurance program of the Company is designed as multi-layer treaties combining proportional reinsurance (where the Company and the reinsurer share the premiums and claims in an agreed proportion) and non-proportional reinsurance. The limits under the treaties are set based on accumulation of risks by location and category, after considering the exposure based on Probable Maximum Loss, where applicable, and the expected frequency of claim events. The Company is exposed to catastrophe risk, which is mitigated by a separate non-proportional reinsurance treaty, which limits the Company's exposure to any single covered event. In addition to treaties, the Company also purchases, where required, on a case-to-case basis, facultative reinsurance for specific policies, where either treaty limits are inadequate or the risk is not covered by the terms of the reinsurance treaties.

The reinsurance program of the Company is filed with the IRDA.

The Company has an offsite disaster recovery center for its data backups.

The Company has in place a risk management process which, inter alia, identifies major risks that the Company is exposed to and sets out action plans for mitigation of such risks.

The Company has a separate Internal Audit Department which audits the operations of its offices. Key operational risks and compliances are audited according to an audit plan approved by the Audit Committee of the Board of Directors.

The Company has an Anti Money Laundering Policy and a Whistle Blower mechanism in place, duly approved by the Board of Directors. The investment portfolio is also diversified within limits set under the IRDA Regulations. The Company has appointed an independent firm of Chartered Accountants to undertake the concurrent audit of Company's investment transactions and related processes, report of which is submitted to the Audit Committee on a quarterly basis. During the year, the Investment Risk Management Systems and Processes were also audited by another independent firm of Chartered Accountants as required by IRDA, the report of which was presented to the Audit Committee of the Board of Directors.

The Company has a Risk Management Committee of the Board of Directors which advises the Board on the risk exposures and the actions taken to manage the same. In addition, the Company also has an internal Risk Committee consisting of various departmental representatives, chaired by the Chief Risk Officer, which reviews the risks as well as the risk processes and compliance with the Risk Management Policy of the Company.

The Company also has a Policyholders' Protection Committee of the Board of Directors.

8. The Company does not have insurance operations in any other country.

9. The settlement time for claims depends on various factors pertinent to various lines of business, such as cause of loss, the nature of claim, etc. Typically, claims which result in total or partial destruction of assets or (such as those caused by Acts of God), those where adequate documentation to assess the claims are awaited and those which are the subject matter of judicial processes (such as Motor Third Party claims) tend to have longer settlement times, which are beyond the control of the Company. The Company has internal processes for regular review of such claims paid and outstanding. The average claims settlement time during the preceding 5 years is given in Annexure I and ageing analysis of claims registered and not settled (excluding provision for IBNR / IBNER and claims relating to inward re-insurance from terrorism pool and the Indian Motor Third Party Insurance Pool).

10. We certify that the values, as shown in the Balance Sheet, of the investments which consists of fixed income securities, equity shares and mutual fund units have been valued as per accounting policies prescribed by IRDA. For fixed income securities, the market value is based on procedure issued by Fixed Income and Money Market and Derivative Dealers Association (FIMMDA). The investment in equity shares is valued at market value. The investments in the Mutual Funds are valued at the Net Asset Values (NAV) of these Mutual Funds as on the Balance Sheet date, if any.

11. Most of the Company's investments are in fixed income securities and deposits. The fixed income securities are mainly approved Government securities and bonds rated AA and above. The primary aim while investing is to generate adequate return while minimizing risk. The emphasis is also on the liquidity of investments to ensure that the Company meets all its obligations related to Claims and other operations. The Company monitors the cash position daily and seasonal liquidity needs are considered while planning maturities of investments. None of the fixed income investments have had any delays in servicing of interest or principal amounts. Based on the past track record, the Management has reasonable confidence in the quality and expected performance of the investments, in line with the objectives.

12. The management of the Company certifies that:

a) The financial statements of the Company have been prepared in accordance with the applicable Accounting Standards and principles and policies with no material departures;

b) The management has adopted 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 the affairs of the Company at the end of the financial year and of the operating profit and of the profit of the Company for the year;

c) The management has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the applicable provisions of the Insurance Act, 1938 (4 of 1938) and Companies Act, 1956 (1 of 1956), for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The financial statements have been prepared on a going concern basis;

e) The management has set up an internal audit system commensurate with the size and nature of the business and the same was operational throughout the year.

13. The schedule of payments which have been made to individuals, firms, companies and organizations in which the Directors of the Company are interested.

FIXED ASSETS:

Ø Goodwill

Ø Computer Software

Ø Land-Freehold

Ø Leasehold Improvements

Ø Freehold Improvements

Ø Building

Ø Furniture and fixtures

Ø Information Technology Equipment

Ø Vehicles

Ø Office Equipment

PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED 30TH SEPTEMBER 2012

(Rs. in millions)

Particulars	Schedule	For the quarter ended 30^th September 2012	For the half year ended 30^th September 2012
OPERATING PROFIT/(LOSS)
(a) Fire Insurance		294.574	564.712
(b) Marine Insurance		45.200	123.636
(c ) Miscellaneous Insurance		518.721	905.666
Total		858.495	1594.014
INCOME FROM INVESTMENTS
(a) Interest, Dividend & Rent – Gross		212.724	408.112
(b) Profit on sale of investments		2.292	6.775
(b) Amortisation of Discount/(Premium)		6.775	14.307
Less: Loss on sale of investments		(4.248)	(18.002)
OTHER INCOME (To be specified)		44.777	44.777
TOTAL (A)		1120.815	2049.983
PROVISIONS (Other than taxation)
(a) For diminution in the value of investments		--	--
(b) For doubtful debts		1.696	8.011
(c) Others (to be specified)		--	--
OTHER EXPENSES
(a) Expenses other than those related to Insurance Business		2.793	5.174
(b) Bad debts written off			--
(c) Preliminary Expenses written off			--
TOTAL (B)		4.489	13.185
Profit Before Tax		1116.326	2036.798
Provision for Taxation		340.309	616.190
Profit After Tax		776.017	1420.608
APPROPRIATIONS		--	--
Balance of profit/ loss brought forward from last year		--	6833.791
Balance carried forward to Balance Sheet		776.017	8254.399

BALANCE SHEET AS AT 30TH SEPTEMBER 2012

(Rs. in millions)

SOURCES OF FUNDS	Schedule	As at 30th September 2012
Share Capital	NL-8-Share Capital Schedule	1102.273
Share Application Money Pending Allotment		--
Reserves And Surplus	NL-10-Reserves and Surplus Schedule	9920.596
Fair Value Change Account		--
Borrowings	NL-11-Borrowings Schedule	--
TOTAL		11022.869
APPLICATION OF FUNDS
Investments	NL-12-Investment Schedule	43983.774
Loans	NL-13-Loans Schedule	--
Fixed Assets	NL-14-Fixed Assets Schedule	2560.542
Deferred Tax Asset		497.480
Current Assets
Cash and Bank Balances	NL-15-Cash and bank balance Schedule	9669.367
Advances and Other Assets	NL-16-Advancxes and Other Assets Schedule	3300.427
Sub-Total (A)		12969.794
Current Liabilities	NL-17-Current Liabilities Schedule	31245.144
Provisions	NL-18-Provisions Schedule	17743.577
Deferred Tax Liability		--
Sub-Total (B)		48988.721
Net Current Assets (C) = (A - B)		(36018.927)
Miscellaneous Expenditure (to the extent not written off or adjusted)	NL-19-Miscellaneous Expenditure Schedule	--
Debit Balance In Profit And Loss Account		--
TOTAL		11022.869

WEBSITE DETAILS:

PROFILE:

Subject is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Subject received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 1100.000 Millions. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs. 1800.000 Millions and has become the only private insurer to cross the Rs.100 crore mark in profit before tax in the last four years. The profit after tax was Rs. 1210.000 Millions, 27% higher than the previous year.

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. 54.27
UK Pound	1	Rs. 87.43
Euro	1	Rs. 70.55

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	9
--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		73

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.