|
Report Date : |
10.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
TATA AIG GENERAL INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Peninsula Corporate Park, Nicholas Pirmal Towers, 9th
Floor, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
24.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128425 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.4500.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U85110MH2000PLC128425 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT07207E |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Insurance Services and Loan Services for Education, Home and
Business |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 17000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Indo-US Joint Venture between Tata Group, It is having satisfactory track record. But there appears huge losses
recorded by the company. However, networth appears to be strong. Trade
relations are reported to be fair. Business is active. Payments are reported
to be usually correct and as per commitment. The company can be considered for business dealing at usual trade
terms and condition. |
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 |
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 (91-22-66930000)
LOCATIONS
|
Registered Office : |
Peninsula Corporate Park, Nicholas Pirmal Towers, 9th
Floor, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013, Maharashtra,
India |
|
Tel. No.: |
91-22-66699761 / 66699701 |
|
Fax No.: |
91-22-66546464 / 67762270 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Customer Services and Claims Address : |
A-501, 5th Floor, Building No. 4, Infinity Park, Dindoshi,
Malad (East), Mumbai – 400 097, Maharashtra, India |
|
|
|
|
Branches : |
Located At: ·
·
Chennai ·
·
Kolkata ·
·
·
Pune |
DIRECTORS
As on 30.05.2012
|
Name : |
Mr. Farrokh Kaikhushru Kavarana |
|
Designation : |
Director |
|
Address : |
CCI, Chambers, 5th Floor, |
|
Date of Birth/Age : |
17.03.1944 |
|
Date of Appointment : |
24.08.2000 |
|
DIN No.: |
00027689 |
|
|
|
|
Name : |
Mr. Ishaat R Hussain |
|
Designation : |
Director |
|
Address : |
No. 222, 22nd Floor, B wing, NCPA Residential Complex, Sir Dorabji
Tata Road, Nariman Point, Mumbai – 400 021, Maharashtra, India |
|
Date of Birth/Age : |
02.09.1947 |
|
Date of Appointment : |
24.08.2000 |
|
DIN No.: |
00027891 |
|
|
|
|
Name : |
Mr. Sunil B Mehta |
|
Designation : |
Director |
|
Address : |
Flat No. 6, 3rd Floor, |
|
Date of Birth/Age : |
22.08.1957 |
|
Date of Appointment : |
17.09.2002 |
|
DIN No.: |
00065343 |
|
|
|
|
Name : |
Mr. Brajdas Shyamdas Banerjee |
|
Designation : |
Director |
|
Address : |
J-503, Satellite Garden II, |
|
Date of Birth/Age : |
14.10.1941 |
|
Date of Appointment : |
26.03.2009 |
|
DIN No.: |
00064354 |
|
|
|
|
Name : |
Mr. Michael John Whitwell |
|
Designation : |
Director |
|
Address : |
Mimbridge House, |
|
Date of Birth/Age : |
23.03.1953 |
|
Date of Appointment : |
30.12.2008 |
|
DIN No.: |
02462812 |
|
|
|
|
Name : |
Mr. Ashok Raghubir Soni |
|
Designation : |
Additional Director |
|
Address : |
Kum Kum, 3rd Floor, 50 A, G. Deshmukh Marg, Mumbai – 400
026, |
|
Date of Birth/Age : |
23.04.1945 |
|
Date of Appointment : |
26.10.2009 |
|
DIN No.: |
00007126 |
|
|
|
|
Name : |
Mr. Farokh Nariman Subedar |
|
Designation : |
Additional Director |
|
Address : |
1, |
|
Date of Birth/Age : |
24.09.1955 |
|
Date of Appointment : |
26.10.2009 |
|
DIN No.: |
00028428 |
|
|
|
|
Name : |
Mr. Gaurav D Garg |
|
Designation : |
Managing Director |
|
Address : |
Kismat, Perry Cross Road, Bandra, Mumbai – 400 050, |
|
Date of Birth/Age : |
20.01.1964 |
|
Qualification : |
B.com, MBA, FIII |
|
Date of Appointment : |
01.07.2007 |
|
DIN No.: |
01578546 |
|
|
|
|
Name : |
Mrs. Janki A. Ballabh |
|
Designation : |
Additional Director |
|
Address : |
605, Versova Vinayak CHS, Mumbai – 400053, Maharashtra, India |
|
Date of Birth/Age : |
24.10.1942 |
|
Date of Appointment : |
02.04.2012 |
|
DIN No.: |
00011206 |
KEY EXECUTIVES
|
Name : |
Mr. Kurush Jal Daruwalla |
|
Designation : |
Executive Vice President - Company Secretary and General Counsel |
|
Address : |
A, Wassiamal Building |
|
Date of Birth/Age : |
07.03.1960 |
|
Qualification : |
B.Com, LLM, FCS, AIIA |
|
Date of Appointment : |
01.12.2000 |
|
PAN No.: |
AFNPD1987K |
|
|
|
|
Name : |
K.K. Mishra |
|
Designation : |
Executive Vice President |
|
|
|
|
Name : |
M. Ravichandran |
|
Designation : |
Senior Vice President - Commercial Lines |
|
|
|
|
Name : |
Ramesh Ramani |
|
Designation : |
Senior Vice President - Consumer Lines |
|
|
|
|
Name : |
Madhukar Sinha |
|
Designation : |
National Head - Underwriting - Personal Lines |
|
|
|
|
Name : |
Subramanian Suryanarayanan |
|
Designation : |
National Head - Human Resources |
|
|
|
|
Name : |
Ramakrishnan Raman |
|
Designation : |
National Head - Energy |
|
|
|
|
Name : |
Miranjit Mukherjee |
|
Designation : |
Senior Vice President Finance and Chief Executive Officer |
|
|
|
|
Name : |
Atri Chakraborty |
|
Designation : |
National Head –Operations and Systems |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.05.2012
|
Names of Shareholders |
|
No. of Shares |
|
Tata Sons Limited, |
|
332999400 |
|
Tata Sons Limited, |
|
100 |
|
Tata Sons Limited, |
|
100 |
|
Tata Sons Limited, |
|
100 |
|
Tata Sons Limited, |
|
100 |
|
Chartis Memsa Holding INC, UAE
|
|
117000000 |
|
Tata Sons Limited, |
|
100 |
|
Tata Sons Limited, |
|
100 |
|
Total |
|
450000000 |
As on 28.06.2012
|
Names of Allottee |
|
No. of Shares
Alloted |
|
Tata Sons Limited, |
|
40700000 |
|
Chartis Memsa Holding INC, UAE
|
|
14300000 |
|
Total |
|
55000000 |
As on 30.05.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
26.00 |
|
Bodies corporate |
74.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Insurance Services and Loan Services for Education, Home and
Business. |
|
|
|
|
Services : |
·
Business Loan Services ·
Insurance Services ·
Education Loan Services ·
Loan Services ·
Home Loan Services |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountant |
|
Address : |
Kalpataru Heritage, |
|
PAN No.: |
AAAFK7554R |
|
|
|
|
Fellow Subsidiaries : |
· Advinus Therapeutics Limited · Computational Research Laboratories Limited · Drive India Enterprise Solutions Limited · E-Nxt Financials Limited · Ewart Investments Limited · Indian Rotorcraft Limited · Infiniti Retail Limited (Formerly Value Electronics Limited) · Niskalp Energy Limited · Panatone Finvest Limited . · Tata Advanced Systems Limited (VY.E.F. 26.O9.08) · Tata AIG Life Insurance Company Limited · Tata Asset Management Limited · Tata Autocomp Systems Limited · Tata Business Support Services Limited · Tata Capital Limited · Tata Consultancy Services Limited · Tata Consulting Engineers Limited (Formerly TCE Consulting Engineers Limited) · Tata Housing Development Company Limited (Formerly THDC Limited) · Tata Industries Limited · Tata international AG, Zug · Tata International Limited · Tata Investment Corporation Limited · Tata Limited · Tata Petrodyne Limited · Tata Realty And Infrastructure Limited · Tata Sky Limited · Tata Tele Services Limited · Tata Teleservices (Maharashtra) Limited · Tata Trustee Company Limited ·
TS Investments Limited |
|
|
|
|
Joint Venture Promotors : |
· Tata Sons Limited ·
Chartis Memsa Holding Inc |
|
|
·
|
|
Company having
Substantial Interest |
CHARTIS MEMSA Holdings inc. - (Formerly known as AIG MEMS A Holdings Inc) |
CAPITAL STRUCTURE
After 30.05.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
750000000 |
Equity Shares |
Rs.10/- each |
Rs.7500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
505000000 |
Equity Shares |
Rs.10/- each |
Rs.5050.000
Millions |
|
|
|
|
|
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
750000000 |
Equity Shares |
Rs.10/- each |
Rs.7500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
450000000 |
Equity Shares |
Rs.10/- each |
Rs.4500.000
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 |
|
|
|
|
|
4500.000 |
3650.000 |
3000.000 |
||
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves
& Surplus |
127.448 |
413.268 |
459.106 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Fair Value
Change Account |
(134.903) |
(36.205) |
110.675 |
|
|
NETWORTH |
4492.545 |
4027.063 |
3569.781 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4492.545 |
4027.063 |
3569.781 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
298.616 |
328.532 |
293.258 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
18868.741 |
13624.056 |
8559.692 |
|
|
DEFERREX TAX ASSETS |
283.595 |
118.868 |
98.791 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000
|
|
|
Cash & Bank Balances |
1071.891
|
532.311
|
641.729
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2138.972
|
2271.899
|
3209.625
|
|
Total
Current Assets |
3210.863
|
2804.210
|
3851.354
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
527.986
|
428.413
|
446.761
|
|
|
Other Current Liabilities |
10919.558
|
7951.490
|
5759.545
|
|
|
Provisions |
6721.726
|
4468.700
|
3027.008
|
|
Total
Current Liabilities |
18169.270
|
12848.603
|
9233.314
|
|
|
Net Current Assets |
(14958.407)
|
(10044.393)
|
(5381.960)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4492.545 |
4027.063 |
3569.781 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Profit/ Loss |
(764.130) |
(490.222) |
(151.722) |
|
|
|
Income From Investment |
317.664 |
281.154 |
265.711 |
|
|
|
Other Income |
79.182 |
5.738 |
4.000 |
|
|
|
TOTAL |
(367.284) |
(203.330) |
117.989 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Provisions for (Other than taxation) |
13.150 |
6.451 |
0.141 |
|
|
|
Other Expenses |
70.113 |
0.724 |
0.036 |
|
|
|
Prior Period Adjustment |
0.000 |
0.000 |
70.000 |
|
|
|
TOTAL |
83.263 |
7.175 |
70.177 |
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
(450.547) |
(210.505) |
47.812 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(164.727) |
(164.667) |
(19.145) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
(285.820) |
(45.838) |
66.957 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
262.031 |
307.869 |
240.912 |
|
|
|
|
|
|
|
|
|
|
BALANCE / (LOSS)
CARRIED TO THE B/S |
(23.789) |
262.031 |
307.869 |
|
|
|
|
|
|
|
|
|
|
Basic/ Diluted
Earnings Per Share (Rs.) |
(0.75) |
(0.15) |
0.22 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
77.82
|
22.54 |
56.75
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
122.69
|
99.10 |
40.52
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(12.84)
|
(6.72) |
1.15
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.10)
|
(0.05) |
0.01
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.04
|
3.19 |
2.59
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.18
|
0.22 |
0.42
|
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Sundry Creditors |
527.986
|
428.413
|
446.761
|
|
Total |
527.986
|
428.413
|
446.761
|
|
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 |
No |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
BACKGROUND
Subject was incorporated on August 24, 2000, as a Company under the Companies Act, 1956 (the 'Act'). The shareholders of the Company are Tata Sons Limited (74%) and Chartis MEMSA Holdings Inc (26%) The Company is registered with the Insurance Regulatory and Development Authority ('IRDA') and has obtained regulatory approval from IRDA to undertake General Insurance business on January 22, 2001.
The IRDA has renewed the Company's Certificate of Registration to sell general insurance products for the financial year 2012-13 vide its certificate of renewal of registration dated March 16, 2012
INDUSTRY OVERVIEW
The financial year 2011-2012 saw a slow down in the economy The Gross Domestic Product (GDP) is expected to grow at 6.9% for the current financial year as compared to 8.5% in the previous year. The slow down was driven by interest rates being increased by Reserve Bank of India to curb inflation While the WPI based inflation came down from 9.68% in March 2011 to 6 89% in March .2012 the collateral impact saw a slow down of the economy
Against this backdrop, the General Insurance Industry grew by 23 6% with the Gross Premium Income rising from Rs 472000.000 Millions in 2010-2011 to Rs 583000.000 Millions in the current year. The market share of private insurers (including monoline health insurers) increased marginally from 40.7% in the previous year ended 31s1 March 2011 to 41.5% for the year ended 311 March 2012. The Company's market share of India s general insurance market stood at 2.9% and amongst the general insurance companies in the private sector stood at 7 0%
In spite of the growth in the top Sine the insurance Industry did not show underwriting profits during the year. The desire to gamer market share through price cuts has resulted in the industry unable to move to an underwriting profit environment the third party motor pool losses has further added to the woes of the general insurers
OPERATIONAL REVIEW
The Gross Premium Written of Rs.16070.000 Millions in the year represents a 40% increase over the 2010-2011 Gross Premium Written of Rs.12140.000 Millions The Net premium written for the year was Rs 1122 Millions compared to Rs.7860.000 Millions in the previous year. The increase of 43% was on account of the increase in business, change in business mix and higher retention* The total incurred chums for the year stood at Rs 5460.000 Millions as against Rs.3740.000 Millions in the previous year. In spite of the increase in business, the loss ratios of the Company were maintained ac 58% The Company's focus on quality underwriting held it in good stead It also ensured that that the quality of the Company's portfolio remained one of the best amongst the general insurance companies
The Company generated a profit on its own portfolio of Rs 1130.000 Millions as compared to Rs 560.000 Millions in the previous year However the Company had to take a charge of Rs. 1580.000 Millions on account of the retroceded motor pool portfolio resulting in a loss before tax for the year of Rs 450.000 Millions
MOTOR POOL
The Indian Motor third Party Insurance Pool (LMTPIP) came into existence form 1st April 2007. The Company together with other direct general insurance companies participates in the Indian Motor Third Party Insurance Pool (LMTPIP) through a multilateral reinsurance arrangement, executed by all direct insurers. The IMTFIP covers reinsurance of the entire third part;- risks of specified commercial motor vehicles (specified Tasks). Amounts collected as premium in respect of specified risks are ceded at 100% of such premium, to the 1MTPIP
The IRDA issued an order on 23rd December 2011 dismantling the pool with effect from 31st March 2012 and replaced the same with an "Act only Declined Risk Pool" from 1st April 2012 The new arrangement requires general insurers to complete a quota of business of stand alone. Third Party Commercial Vehicle business and cede business not falling within its underwriting parameters to the Declined Pool. This initiative by IRDA is laudable and brings to an end die Motor Pool arrangement which made the general insurance industry unviable as a whole and put pressure on the bottom-line of companies
The IRDA issued guidelines for closure of the Motor Pool. The guidelines required all general insurers (excluding health insurers) to record losses for all years based on an ultimate loss ratio ranging from 159% for the year 2007-2008 to 213% for the year 2010-2011. For the underwriting year 2011-2012 the ultimate loss ratio prescribed was 145%. This is on the back of an increased premium of 68°A The IRDA also gave an option for recording the incremental Josses for the years 2009-2010 to 2011 -2012 upfront or over a period of three year*, carting from financial year 2011-2012 The Company has exercised the option of recording complete incremental losses Tor the motor poof period in the current financial year
PRODUCT MIX
The Company has increased its presence in the Auto market. Further its has launched its Health insurance product to take make its presence fell in the growing Health insurance segment. While embarking on these focused initiatives the Company has ensured that it maintained leadership position m Liability and Marine cargo insurance business the Accident and Heath business saw a slight dip in the current year However the company would make all efforts to regain its premier position in This segment in the coming year,
BALANCE SHEET FOR THE QUARTER ENDED JUNE 30, 2012
|
SOURCES OF FUNDS |
|
30.06.2012 |
30.06.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
5050.000 |
3650.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
395.332 |
538.058 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
5] Fair Value Change Account |
|
(137.372) |
(98.331) |
|
|
NETWORTH |
|
5307.960 |
4089.727 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.0000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
5307.960 |
4089.727 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
289.763 |
337.352 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
21406.643 |
15737.397 |
|
|
DEFERREX TAX ASSETS |
|
180.217 |
59.217 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.000 |
0.000 |
|
|
Sundry Debtors |
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
|
(189.372) |
(155.666) |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
2582.002 |
2204.779 |
|
Total
Current Assets |
|
2392.630 |
2049.113 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
11849.472 |
9122.165 |
|
|
Other Current Liabilities |
|
0.000 |
0.000 |
|
|
Provisions |
|
7111.821 |
4971.187 |
|
Total
Current Liabilities |
|
18961.293 |
14093.352 |
|
|
Net Current Assets |
|
(16568.663) |
(12044.239) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
5307.960 |
4089.727 |
|
PROFIT AND LOSS ACCOUNT FOR THE QUARTER ENDED JUNE
30, 2012
|
|
PARTICULARS |
|
30.06.2012 |
30.06.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Profit/ Loss |
|
286.092 |
108.524 |
|
|
|
Income From Investment |
|
113.567 |
75.048 |
|
|
|
Other Income |
|
1.545 |
0.989 |
|
|
|
TOTAL |
|
401.204 |
184.561 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Other Expenses |
|
(0.058) |
0.150 |
|
|
|
TOTAL |
|
|
0.150 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
|
401.262 |
184.411 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
133.378 |
59.651 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
|
267.884 |
124.760 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
(23.789) |
262.061 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
244.095 |
386.821 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.06.2012 |
30.06.2011 |
|
PAT / Total Income |
(%) |
|
61.04 |
67.60 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
100.01 |
99.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
14.96 |
7.73 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.08 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
3.57 |
3.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
0.13 |
0.15 |
CONTINGENT LIABILITY
Rs. in Millions
|
Sr. No. |
Particular |
31.03.2012 |
31.03.2011 |
|
1 |
Partly paid-up investments |
-- |
-- |
|
2 |
Claims, other than against policies, not acknowledged as debts by the Company |
-- |
-- |
|
3 |
Underwriting commitments outstanding (in respect of shares and securities) |
-- |
-- |
|
4 |
Guarantees given by, or on behalf of the Company |
-- |
-- |
|
5 |
Statutory demands / liabilities in dispute, not provided for |
105.828 |
105.828 |
|
6 |
Re-insurance obligations, to the extent not provided for in accounts |
-- |
-- |
|
7 |
Insurance Claims disputed by the Company, to the extent not provided / reserved |
17.678 |
13.207 |
|
|
TOTAL |
123.506 |
119.035 |
FIXED
ASSETS
·
Land – Freehold
·
Leasehold Improvements
·
Buildings
·
Furniture and Fittings
·
Information Technology Equipment
·
Vehicles
·
Office Equipment
·
Others
AS
PER WEBSITE DETAILS
PROFILE
Subject is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG General combines the Tata Group's pre-eminent leadership position in India and AIG's global presence as the world's leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, provides insurance solutions to individuals and corporates. It offers a complete range of general insurance products including insurance for automobile, home, personal accident, travel, energy, marine, property and casualty as well as several specialized financial lines. The Company believes in offering innovative and relevant insurance solutions in the retail and commercial space. Each product offering is backed by expertise and an unparalleled claims service. The Company's products are available through various channels of distribution like agents, brokers, banks (through banc assurance tie ups) and direct channels like Tele Marketing, Digital Marketing, worksite etc.
PRESS RELEASE
Tata AIG General Insurance Company Limited
wins awards at Indian Insurance Awards
Mumbai, June 9th, 2011: At an awards ceremony organized by
India Insurance Review, Tata AIG bagged 2 prestigious awards, 1 each in the
health and general insurance category.
India Insurance
Review and Celent presented the India Insurance Awards 2011 - the awards were
presented to the Indian insurance industry in a glittering ceremony held at the
Intercontinental Hotel in Mumbai this evening.
The jury consisted
of Mr. S B Mathur, Secretary General, Life Insurance Council; Mr S L Mohan,
Secretary General, General Insurance Council; and Mr Vepa Kamesam, Managing
Director, Institute of Insurance and Risk Management (jointly promoted by IRDA
and AP Government).
Tata AIG General
Insurance Company was awarded the following awards for the year 2010-2011
Company of the Year
Award 2011 for Health Insurance and Best Product Innovation Award 2011 in the
general insurance category
TAGIC was awarded
the Company of the Year Award 2011 for Health Insurance segment during the
Indian Insurance Awards. This award was to recognize the company that stood out
amongst its peers in terms of Revenue growth, Profitability, Innovation and
Customer service.
Mr. Gaurav Garg, MD
of Tata AIG General Insurance Company said, “The award reinforces our
perception as a strong health insurance company as evidenced also by the HT
MaRs Customer Satisfaction Survey (results published in March, 2011) which
ranked us as No.1 in customer service satisfaction and No.2 in claims
settlement satisfaction. This perception is likely to be buttressed by our
imminent entry into the mediclaim space as we await IRDA’s approval for the
Mediprime product. It is a testament to our wide and strong product range of
benefit based secondary medical insurance products that have not only delivered
a profitable business line but also awards from the industry and a high degree
of customer satisfaction. Our dominating presence in the Overseas Travel
Insurance which is perceived as an Overseas Mediclaim also contributes in no
small bit to our position.”
Tata AIG’s current
health insurance portfolio consists of the following products
1.
Wellsurance
(Executive, Family and Woman version) – A comprehensive, fixed benefit
hospitalization, surgical and critical illness plan that offers guaranteed
insurability at renewal for whole life.
2.
Accident
and Sickness Hospitalization Cash Plan – pays a fixed daily hospitalization
cash benefit based on number of days of hospitalization
3.
CritiCare
– Pays a fixed lump sum benefit in the event of diagnosis of any of the select
critical illnesses.
TAGIC was also
recognized with the Best Product Innovation award amongst General Insurance
players in the Indian Insurance Awards. The recognition was for Private Client
Group Home secure Policy that was launched in August 2009. It is a unique
product catering exclusively to the High Net Worth client’s need of insuring
their high value possessions such as paintings, valuables, work of art,
jewelry, collectibles etc. It offers packaged cover for the entire home
contents including above items with first in the market covers such as hole in
one expenses, loss in value for fine art, pairs and sets, etc.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.49 |
|
Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
|
Information Gathered
by : |
PJA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
|
42 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.