|
Report Date : |
09.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE GENERAL INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Reliance Centre 19, Walchan and Hirachand Marg, Ballard Estate,
Mumbai-400001, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
17.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128300 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1211.933 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66603MH2000PLC128300 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing General Insurance Service. |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (39) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a part of “RELIANCE GROUP”. It is a well established and reputed company having a moderate track
record. There appears a huge accumulated losses recorded by the company. IRDA has receive several complaint against this company. However, networth of the company appears to be strong. The company
gets strong financial support from its group companies. Trade relations are reported to be fair. Business is active. Payments
are slow but correct. In view of experience promoters the company can be considered for
business dealings with slight caution. |
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 (Tel. No.: 91-22-30327000 / 30479600)
LOCATIONS
|
Registered Office : |
Reliance Centre 19, Walchan and Hirachand Marg, Ballard Estate,
Mumbai-400001, Maharashtra, India |
|
Tel. No.: |
91- 22-30327000 |
|
Fax No.: |
91-22-30327377 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
570, Naigaum Cross Road, Next to Royal Industrial Estate, Wadala
(W), Mumbai - 400 031 |
|
Tel. No.: |
91-22-30479600 |
|
Fax No.: |
91-22-30479650 |
DIRECTORS
As on 30.07.2012
|
Name : |
Mr. Satya Pal Talwar |
|
Designation : |
Director |
|
Address : |
163, 16th Floor, Beach Tower, P B Marg, Prabhadevi,
Mumbai-400025, Maharashtra, India |
|
Date of Birth/Age : |
14.06.1939 |
|
Qualification : |
B.A., LLB, CAIIB |
|
Date of Appointment : |
29.08.2005 |
|
DIN No.: |
00059681 |
|
|
|
|
Name : |
Mr. Debdatta Sengupta |
|
Designation : |
Director |
|
Address : |
Sector-B, Pocket-8, Flat No.6145, Vasant Kunj, New Delhi-110070, India |
|
Date of Birth/Age : |
20.06.1942 |
|
Date of Appointment : |
29.08.2005 |
|
DIN No.: |
00043289 |
|
|
|
|
Name : |
Mr. Rajendra Prabhakar Chitale |
|
Designation : |
Director |
|
Address : |
131B, Tanna Residency, Bay View 392, V.S. Marg, Prabhadevi,
Mumbai-400025, Maharashtra, India |
|
Date of Birth/Age : |
10.04.1961 |
|
Date of Appointment : |
12.06.2006 |
|
DIN No.: |
00015986 |
|
|
|
|
Name : |
Mr. Soumen Ghosh |
|
Designation : |
Director |
|
Address : |
1501, Lodha Aria, 6/207, Tokersey Jiv Raj Road, Sewree, Mumbai-400015,
Maharashtra, India |
|
Date of Birth/Age : |
08.06.1959 |
|
Qualification : |
Chartered Accountant, ICWAI |
|
Date of Appointment : |
21.04.2008 |
|
DIN No.: |
01262099 |
|
|
|
|
Name : |
Mr. Rakesh Jain |
|
Designation : |
Whole-time director |
|
Address : |
B-701, Velentine, Apartment, Pimpli Pada, Malad (East), Mumbai-400097,
Maharashtra, India |
|
Date of Birth/Age : |
17.08.1970 |
|
Qualification : |
Chartered Accountant, ICWAI |
|
Date of Appointment : |
20.10.2011 |
|
DIN No.: |
03645324 |
|
|
|
|
Name : |
Mr. Haris Ansari |
|
Designation : |
Director |
|
Address : |
Flat No.503, Serin Nyati Enclave, Nyati Enclave, Nyati Couty, Mohammadwadi,
Pune-411028, Maharashtra, India |
|
Date of Birth/Age : |
01.04.1939 |
|
Qualification : |
Post Graduate in Science |
|
Date of Appointment : |
08.05.2012 |
|
DIN No.: |
02155529 |
KEY EXECUTIVES
|
Name : |
Mr. Mohan Bhalchandra Khandekar |
|
Designation : |
Secretary |
|
Address : |
F503, Gokul Horizon, Thakur Village, Kandivali (East), Mumbai-400101,
Maharashtra, India |
|
Date of Birth/Age : |
02.05.1965 |
|
Date of Appointment : |
20.10.2005 |
|
PAN No.: |
AAFPK1139F |
|
|
|
|
Name : |
Mr. Mohan Khandekar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.07.2012
|
Names of Shareholders |
|
No. of Shares |
|
Reliance Capital Limited, India |
|
116898651 |
|
Reliance Capital Limited, India jointly with Mr. Hasit Shukla |
|
1 |
|
Reliance Capital Limited, India jointly with Mr. Hari Nair |
|
1 |
|
Reliance Capital Limited, India jointly with Mr. Venkat Rao Ponnada |
|
1 |
|
Reliance Capital Limited, India jointly with Mr. Surendra Pipara |
|
1 |
|
Reliance Capital Limited, India jointly with Mr. Ramesh Shenoy |
|
1 |
|
Reliance General Insurance Employees Benefit Trust, India |
|
4294672 |
|
Total |
|
121193328 |
List of Allottee as on 30.09.2012
|
Names of Allottee |
|
No. of Shares |
|
Reliance Capital Limited, India |
|
1581630 |
|
Total |
|
1581630 |
Equity Share Break up (Percentage of Total Equity)
As on 30.07.2012
|
Category |
Percentage |
|
Bodies corporate |
96.46 |
|
OtherS |
3.54 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing General Insurance Service. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|
|
|
|
Bankers : |
·
HDFC Bank limited ·
ICICI Bank Limited ·
HSBC ·
Citi Bank ·
The Royal Bank of
Scotland ·
Deutsche Bank ·
Axis bank |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1 : |
Chaturvedi and Shah Chartered Accountants |
|
Address : |
714-715 Tulsani Chambers, 212 Nariman Point, Mumbai- 400021,
Maharashtra, India |
|
PAN No.: |
AAAFC0662N |
|
|
|
|
Name 2 : (As on 31.03.2011) |
V. Soundararajan and Company Chartered Accountants |
|
|
|
|
Name 3 : |
Singhi and Company |
|
Address : |
B2, 402B, Marathon Innova, Off. Ganpatrao kadam marg, lower parel,
mumbai-400013, Maharashtra, India |
|
PAN No.: |
AASFS9578D |
|
|
|
|
Holding Company : (As on 31.03.2011) |
Reliance Capital Limited |
|
|
|
|
Subsidiary of Holding
Co. (including fellow subsidiary) : (As on 31.03.2011) |
· Reliance Capital Asset Management Limited · Reliance Capital Trustee Company Limited · Reliance Capital Services Private Limited · Reliance Equity Advisors (India) Limited · Medybiz Private Limited · Reliance Home Finance Private Limited · Reliance Equities International Private Limited · Reliance Money Express Limited · Reliance Consumer Finance Private Limited · Reliance Securities Limited · Reliance Communications Limited · Reliance Infocomm Infrastructure Private Limited · Reliance Infrastructure Limited · Reliance Natural Resources Limited · Reliance Power Transmission Limited · Delhi Airport Metro Express Private Limited · Campion Properties Limited · DS Toll Road Limited · Bses Kerala Power Limited · Reliance Spot Exchange Infrastructure Limited · Reliance Telecom Limited · Reliance Webstore Limited · Reliance Innoventures Private Limited · Reliance Globalcom Limited · Reliance Coal Resources Private Limited · Reliance Energy Generation Limited · Sasan Power Limited · Siyom Hydro Power Private Limited · Tato Hydro Power Private Limited · Coastal Andhra Power Limited · Kalai Power Private Limited · Net Logistics · Quant Broking Private Limited · Reliance Cementation Private Limited · Reliance Tech Service Private Limited · Western Region Transmission Gujarat Private Limited · Western Region Transmission Maharashtra Private Limited · Reliance Share and Stock Broker Private Limited · Reliance Communication Infrastructure Limited · Reliance Energy Limited · Reliance Infratel Limited · Reliance Power Limited · Quant Capital Private Limited · Rosa Power Supply Company Limited · Reliance Capital Partners · Mumbai Metro One Private Limited |
CAPITAL STRUCTURE
After 30.07.2012
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 |
|
|
|
|
|
|
122774960 |
Equity Shares |
Rs.10/- each |
Rs. 1227.750 Millions |
|
|
|
|
|
As on 30.07.2012
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 |
|
|
|
|
|
|
121193328 |
Equity Shares |
Rs.10/- each |
Rs. 1211.933 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
SUMMARY OF
FINANCIAL RESULTS
|
Particulars |
31.03.2012 |
|
OPERATING RESULTS |
|
|
Gross Premium Written |
17125.473 |
|
Net Premium Income |
11839.369 |
|
Income From Investment |
1427.425 |
|
Other Income |
4.829 |
|
Total Income |
13271.623 |
|
Commission |
115.058 |
|
Brokerage |
297.666 |
|
Operating Expenses |
3833.566 |
|
Claims and Increase in Unexpired Risk Reserve and other outgo |
12870.147 |
|
Operating Profit/(Loss) |
(3844.814) |
|
NON OPERATING RESULTS |
|
|
Total Income under Shareholders account |
428.821 |
|
Profit/ (Loss) before Tax |
(3415.993) |
|
Provision of tax |
16.000 |
|
Profit/ (Loss) after Tax |
(3413.993) |
|
MISCELLANEOUS |
|
|
Policy holder’s Account |
|
|
Total Funds |
20180.364 |
|
Total Investment |
20180.364 |
|
Yield on Investment |
11.39% |
|
Share holders Account |
|
|
Total Funds |
6840.959 |
|
Total Investments |
6840.959 |
|
Yield on Investments |
11.39% |
|
Paid up Equity Capital |
1211.933 |
|
Net Worth |
7138.048 |
|
Total Assets |
30735.614 |
|
Yield on total investment |
11.39% |
|
Earning Per Share |
(29.24) |
|
Book Value Per Share |
59.52 |
|
Total Dividend |
-- |
|
Dividend Per Share |
-- |
BALANCE SHEET
|
Particulars |
31.03.2011 |
31.03.2010 |
||
|
Sources of funds |
|
|
|
|
|
Share Capital |
|
1166.729 |
|
1152.239 |
|
Reserves and Surplus |
|
10323.902 |
|
8918.392 |
|
Fair Value Change Account |
|
2.857 |
|
(88.817) |
|
Borrowings |
|
- |
|
- |
|
Total |
|
11493.488 |
|
9981.814 |
|
Application of funds |
|
|
|
|
|
Investments |
|
21371.830 |
|
16566.610 |
|
Loans |
|
300.627 |
|
300.627 |
|
Fixed Assets |
|
302.230 |
|
475.067 |
|
Deferred Tax |
|
388.735 |
|
409.735 |
|
Current Assets |
|
|
|
|
|
Cash and Bank Balances |
672.196 |
|
824.256 |
|
|
Advances and Other Assets |
2380.723 |
|
7427.492 |
|
|
Sub-Total (A) |
3052.919 |
|
8251.748 |
|
|
Sundry Creditor |
1040.655 |
|
686.451 |
|
|
Other Current Liabilities |
12403.440 |
|
10342.135 |
|
|
Provisions |
5753.699 |
|
7152.311 |
|
|
Sub-Total (B) |
19197.794 |
|
18180.897 |
|
|
Net Current Assets (C = A - B) |
|
(16144.875) |
|
(9929.149) |
|
Miscellaneous Expenditure |
|
- |
|
- |
|
(to the extent not written off or adjusted) |
|
|
|
|
|
Debit Balance in Profit & Loss Account |
|
5274.941 |
|
2158.924 |
|
Total |
|
11493.488 |
|
9981.814 |
|
Significant Accounting Policies and Notes to |
|
|
|
|
|
Financial Statements |
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
Particulars |
31.03.2011 |
31.03.2010 |
||
|
Operating Profit / (Loss) transferred from Revenue Account |
|
|
|
|
|
a. Fire Insurance |
155.868 |
|
189.818 |
|
|
b. Marine Insurance |
22.158 |
|
(0.164) |
|
|
c. Miscellaneous Insurance |
(3704.584) |
(3526.558) |
(1451.915) |
(1262.261) |
|
Income from Investments |
|
|
|
|
|
Interest, Dividend & Rent - Gross |
481.902 |
|
395.473 |
|
|
Profit on sale/redemption of investments |
138.176 |
|
105.803 |
|
|
Less: Loss on sale/redemption of investment |
(87.462) |
532.616 |
(16.537) |
484.739 |
|
Other Income |
|
|
|
|
|
Profit on sale of fixed assets |
1.213 |
|
(0.209) |
|
|
Miscellaneous Income |
40.012 |
41.225 |
13.750 |
13.541 |
|
TOTAL (A) |
|
(2952.717) |
|
(763.981) |
|
Provisions (Other than Taxation) |
|
|
|
|
|
(a) For diminution in the value of investment |
|
- |
|
- |
|
(b) For doubtful debts |
|
- |
|
- |
|
(c') Others (Refer schedule 17 note 19) |
|
(140.400) |
|
(137.600) |
|
Other Expenses |
|
|
|
|
|
Expenses other than those related to Insurance Business |
|
(4.476) |
|
(3.889) |
|
Exchange Gain / (loss) |
|
- |
|
- |
|
TOTAL (B) |
|
(144.876) |
|
(141.489) |
|
Profit / (Loss) Before Tax |
|
(3097.593) |
|
(905.470) |
|
Provision for Taxation |
|
|
|
|
|
Current Tax |
|
- |
|
- |
|
Deferred Tax (Refer schedule 17 note 12) |
|
(21.000) |
|
401.200 |
|
Fringe Benefit Tax |
|
- |
|
- |
|
Income Tax earlier year tax |
|
2.576 |
|
- |
|
Net Profit /(Loss) After Tax |
|
(3116.017) |
|
(504.270) |
|
Appropriations: |
|
|
|
|
|
(a) Interim dividends paid during the year |
|
- |
|
- |
|
(b) Proposed final dividend |
|
- |
|
- |
|
(c) Dividend Distribution Tax |
|
- |
|
- |
|
(d) Transfer to any reserve or other accounts (to be specified): |
|
- |
|
- |
|
Profit / (Loss) After appropriations |
|
(3116.017) |
|
(504.270) |
|
Balance of Profit / Loss brought forward from last year |
|
(2158.924) |
|
(1654.654) |
|
Balance carried forward to Balance Sheet |
|
(5274.941) |
|
(2158.924) |
|
Significant Accounting Policies and Notes to Financial |
|
|
|
|
|
Statements (Refer Schedule 16 & 17). |
|
|
|
|
|
Basic & Diluted Earning Per Share |
|
(26.80) |
|
(4.46) |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditor |
NA |
1040.655 |
686.451 |
|
|
|
|
|
|
Total |
NA |
1040.655 |
686.451 |
|
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
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 |
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 |
LITIGATION DETAILS
Case
Details
Bench:-
Bombay
|
Stamp No.:- FAST/725/2012
Filing Date:- 10/01/2012 Reg.
No.:- FA/860/2012 Reg. Date:- 18.05.2012 |
|
Petitioner:- THE NEW INDIA ASSURANCE CO. LTD- Respondent:- 3.RELIANCE GENERAL INSURANCE
CO. Petn. Adv.:- DEVENDRANATH S. JOSHI District:- Pune |
|
Bench:- Single Status:-Admitted (Unready) Last Date:- 07/09/2012
Stage:- APPEALS FOR ADMISSION – FRESH
[CIVIL
SIDE MATTERS] Last Coram:- HON’BLE SHRI JUSTICE
K.K.TATED |
|
Act:- Motor Vehicles Act, 1939 Under
Section:- 166 |
FIXED ASSETS
· Furniture and Fittings
· Leasehold Improvements
· Information Technology Equipment
· Intangible Asset (Computer Software)
· Vehicles
· Office Equipment
· Plant and Machinery
· Capital WIP
PRESS RELEASE
RELIANCE GEN INSURANCE TO PAY RS 0.410 MILLIONS FOR DENYING CLAIM
NEW DELHI, SEP 26:
Reliance General Insurance Co Ltd has been ordered by a consumer forum here to pay over Rs 4.11 lakh to a policy holder for first denying him the cashless hospitalisation facility and then avoiding to reimburse his expenses on treatment.
The New Delhi District Consumer Disputes Redressal Forum asked Reliance General Insurance to pay the compensation, rejecting its contention that the medical history of the patient / policy holder had been manipulated by the hospital.
“We have gone through opposite party’s (Reliance General Insurance) written statement, in which it has taken a plea that Escorts Hospital manipulated the history, which clearly indicates the malafide intention and harassing attitude of the opposite party to torture consumers arbitrarily.
“It has also been noticed that the insurance company has deliberately avoided making the payment to complainant (Anil Kumar Gupta) from day one when he had contacted its agent for cashless facility which is totally unlawful. Opposite party is directed to make the payment of Rs 3,61,945 as per bills. We also award Rs 50,000 to the complainant as harassment and litigation cost,” the bench presided by C.K Chaturvedi said.
In his complaint, Delhi resident Anil Kumar Gupta had said he had bought a cashless mediclaim policy for June 16, 2009 to June 15, 2010 from the firm through its agent.
He was admitted to Escorts Heart Institute on October 10, 2009 for chest pains, said Anil Kumar Gupta adding that as he had the cashless mediclaim policy, he also contacted the insurance company’s agent for approval of the cashless facility.
He added that despite providing all necessary documents, the insurance company denied the cashless facility and later when he filed a claim for reimbursement of his treatment expenses, it too was rejected on the ground of pre-existing disease without any evidence, Anil Kumar Gupta had said.
NON-LIFE INSURERS PREMIUM RISES 18 PER CENT IN APRIL-AUGUST
SEPTEMBER 30, 2012
NEW DELHI: Non-life insurance companies reported a 18 per cent growth in premium collections in the April-August period, reflecting an upturn in business environment.
The premium income of the general insurance industry, comprising 21 private and four public sector insurers, stood at Rs 279420.000 millions in the first five months of the current fiscal, 18 per cent higher than Rs 237480.000 millions in the corresponding period last year.
The four public sector players, which dominate about 60 per cent of the total industry, saw their premium income rising by 17 per cent Rs 162720.000 millions, as per the data available with the Insurance Regulatory and Development Authority (IRDA).
Of the private sector players, HDFC Ergo registered a premium growth of 26 per cent at Rs 9725.200 millions. Besides, premium income of ICICI-Lombard grew by 10.56 per cent to Rs 23500.000 millions in the first five months of the current fiscal.
The premium income of Reliance General Insurance rose by 12.8 per cent to Rs 8826.400 millions, while that of Tata AIG rose 26 per cent to Rs 9204.300 millions in the April-August period.
Earlier this month, IRDA came out with an exposure draft for non-life insurance companies planning to come out with initial public offering (IPO) in which it had mandated insurers to have a 10 year track record for hitting the capital market.
The draft norms -- IRDA (Issuance of Capital by General Insurance Companies) Regulations, 2012 -- states that the regulator would take into account the insurer's financial position, its capital structure and regulatory record before permitting them to come out with the share sale.
RELIANCE GENERAL INSURANCE OFFERS RS 5000.000 MILLIONS THIRD-PARTY
COVER FOR FORMULA 1 RACE
OCTOBER 3, 2012
MUMBAI: Jaypee Sports International Limited (JPSL), the company that hosts Formula 1 race in India, is seeking an insurance cover for Rs 7500.000 millions to protect it against event cancellation and loss or injury to spectators.
Reliance General Insurance will underwrite the Rs 5000.000 millions cover for third-party eventualities, and the Rs 2500.000 millions cover for maritime transit and event cancellation is yet to be finalised, said a person familiar with the matter.
Insurance cover for this year's event, to be held in Noida near New Delhi on October 26 and 28, is at least 50 per cent higher than last year when Formula 1 debuted in India. The insurance doesn't cover individual teams, which are covered by policies in their home country.
Formula 1 is becoming popular in India. McLaren driver and former world champion Lewis Hamilton has been participating in promotional shows in India recently. Hamilton promotes Vodafone, while former champion and one of the greats of the sport Michael Schumacher endorses luxury carmaker Mercedes Benz.
Indeed, Kingfisher Airlines' Vijay Mallya, along with the Sahara group, own a team named Force India.
On the insurance front, one policy covers both JPSL and Formula 1 in the country. Income from selling tickets and food forms the revenue for JPSL, which is expected to be $5 million.
Under the Rs 5000.000-millions third-party liability, players and spectators are covered against any injury or loss. Insurance broker ACE was the arranger of the third-party cover, for which the premium payment is said to be around Rs 100.000 millions, said one of the persons in the know of the deal.
Reliance General Insurance is looking for reinsurance support for the third-party insurance in the international market. A Reliance General Insurance spokesperson declined to comment for the story. India does not have the capacity to reinsure such a large cover.
GIC has reinsured 60 per cent of the terrorism liability, the person said.
The organiser is yet to initiate the demand for an event cancellation cover of 200 crore. Another component of the insurance policy is marine transit of the racing vehicles and equipment, which is to the tune of Rs 500.000 millions. Jaypee Group is the main sponsor of the event. The three-day event includes two practice sessions on day 1, one practice and one qualifying session on day 2 and the final race on day 3. The 60-lap race will start on October 26 in the 1,20,000-capacity racing circuit.
RELIANCE CAPITAL IN TALKS FOR STAKE SALE IN GENERAL INSURANCE ARM
NOV 20, 2012
MUMBAI: Financial services major Reliance Capital group has begun talks to sell 26 per cent equity in its general insurance arm to a foreign partner, and is open to selling further stake in life insurance and mutual fund units.
"We are in talks for sale of 26 per cent stake in general insurance business to a foreign strategic partner," Reliance Capital CEO Sam Ghosh told in an interview here.
Without disclosing any names or potential deal size for Reliance General Insurance stake sale, Ghosh said that nothing has been finalised as yet and talks are still continuing.
Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, has already sold 26 per cent stake in each of its mutual funds and life insurance units to Japanese financial services major Nippon Life.
Reliance Capital chief said the group is open to the idea of selling further stake in its life insurance unit, Reliance Life, as also in mutual funds arm, Reliance Capital Asset Management Company, at an appropriate time and the understanding with Nippon Life in this regard is "open-ended".
Nippon Life, one of the world's largest financial services group with assets under management of over $600 billion (more than Rs 30 lakh crore), is a major player in life insurance and asset management businesses in Asia, but is not present in general insurance segment.
Currently, foreign investment is capped at 26 per cent in the insurance business in India, but there are no such caps in the mutual funds segment. However, the government is considering increasing the foreign investment limit in the insurance sector to 49 per cent.
Asked whether the group would be open to the idea of Nippon having a higher stake in Reliance Life when government hikes insurance FDI cap to 49 per cent, Ghosh said: "The two companies have an understanding that if the market is opened up further, they would discuss the issue at that time."
"Any decision in that regard will be taken only after the government further opens the sector and current understanding between the two partners is open-ended," he said.
Asked whether Reliance Cap would consider higher stake for Nippon Life in its mutual fund business as well, Ghosh said that the understanding was same for Reliance Capital Asset Management Company as well.
"Currently, there are no discussions underway for a hike in Nippon's stake in RCAM (Reliance Capital Asset Management Company), although there is no FDI cap in this business, but the understanding is open-ended between the two partners on this front," he said.
Nippon holds 26 per cent stake in RCAM, which it acquired for about Rs 14500.000 millions. Besides, Nippon has also purchased a 26 per cent stake in Reliance Life for over Rs 30000.000 millions.
TAX NOTICES TO RELIANCE LIFE, SAHARA AND 6 OTHER INSURERS
DECEMBER 13, 2012
Eight private insurance companies, including Reliance Life and Sahara India Life have been served show-cause notices by the Revenue department for alleged tax violation, Parliament was informed today.
The other insurance companies on which the Tax department has served show-cause
notices are Aviva Life, DLF Pramerica Life, Sri Ram Life, IFFCO-TOKIO General
Insurance, Apollo DKV and Bharat Reinsurance.
This was stated by Minister of State for Finance S S Palanimanickam in a
written reply to the Rajya Sabha.
Out of the eight companies, Reliance Life, DLF Pramerica, IFFCO TOKIO General
and Bharat Reinsurance have submitted their replies to the government, he said.
Palanimanickam said: "In cases where the companies have submitted the
reply, a personal hearing will be held and adjudication orders (will be)
passed".
In cases wherein reply is yet to be submitted, the Minister said, personal
hearings will be conducted after receipt of the replies of the companies.
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 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.54.40 |
|
|
1 |
Rs.81.52 |
|
Euro |
1 |
Rs.71.24 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
39 |
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.