MIRA INFORM REPORT

 

 

Report Date :

04.10.2013

 

IDENTIFICATION DETAILS

 

Name :

LIBERTY VIDEOCON GENERAL INSURANCE COMPANY LIMITED

 

 

Registered Office :

10th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.11.2010

 

 

Com. Reg. No.:

11-209656

 

 

Capital Investment / Paid-up Capital :

Rs.3593.500 Millions

 

 

CIN No.:

[Company Identification No.]

U66000MH2010PLC209656

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing General Insurance Services. 

 

 

No. of Employees :

212 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 14370000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “Videocon Industries Limited”. It is having satisfactory track record.

 

The company has recorded accumulated losses during 2013, but there appear no external borrowings recorded in the books.

 

However, trade relations are fair. Business is active. Payment terms are reported as usually correct.

 

In view of strong holding company and experienced promoters, the subject 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

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

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 DENIED BY

 

Name :

Mr. Vimal Kishor

Designation :

CS

Contact No.:

91-22-67001313

Date :

03.10.2013

 

 

LOCATIONS

 

Registered Office/ Corporate Office :

10th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-67001313

Fax No.:

91-22-67001606

E-Mail :

vimal.kishor@libertyinternational.com

Website :

www.libertyvideocon.com

 

 

Branch Office :

Located at:

·         Karnataka

·         Gujarat

·         Andhra Pradesh

·         Tamilnadu

·         New Delhi

·         Haryana

 

 

DIRECTORS

 

As on: 30.04.2012

 

Name :

Mr. Karunchandra Srivastava

Designation :

Director

Address :

306, Shalaka, Maharshi Karve Marg,  Mumbai- 400021, Maharashtra, India

Date of Birth/Age :

10.02.1944

Date of Appointment :

30.04.2012

DIN No.:

00314951

 

 

Name :

Mr. Radheyshyam Dalchand Agarwal

Designation :

Director

Address :

A-102, Chaitanya TOWERS, Near  Karur Vysya Bank, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

02.10.1942

Date of Appointment :

30.04.2012

DIN No.:

00012594

 

 

Name :

Mr. Chandan Bhattacharya

Designation :

Director

Address :

Flat No. 72, Sunflower Apartment, Ravi Kiran Co-Operative Housing Society,  GD Somani Marg, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

13.01.1945

Date of Appointment :

30.04.2012

DIN No.:

01341570

 

 

Name :

Joe Henry Hamilton

Designation :

Director

Address :

10 Wood Way Rd Wellesley, United State 024827020

Date of Birth/Age :

01.07.1954

Date of Appointment :

30.04.2012

DIN No.:

02135200

 

 

Name :

Mr. Roopam Asthana

Designation :

Whole-Time Director

Address :

D-6/4, 1st Floor Vasant Vihar, New Delhi -110057, India

Date of Birth/Age :

13.06.1965

Date of Appointment :

24.09.2011

DIN No.:

00121261

 

 

Name :

Veena Vikas Mankar

Designation :

Director

Address :

801, Park Heights, 10th Road, Plot - E/656, Khar (West), Near Madhu Park, Mumbai – 400052, Maharashtra, India 

Date of Birth/Age :

24.01.1953

Date of Appointment :

19.07.2013

DIN No.:

00004168

 

 

Name :

Mr. Shripad Shrikrishna Nadkarni

Designation :

Director

Address :

B-45/1332, Adarsh Nagar, Prabhadevi, Mumbai – 400025, Maharashtra, India 

Date of Birth/Age :

19.05.1961

Date of Appointment :

19.07.2013

DIN No.:

00075371

 

 

Name :

Mr. Bhaskaran Natarajan

Designation :

Director

Address :

42 WALNUT ST, BELMONT, MA 024781827

Date of Birth/Age :

05.11.1967

Date of Appointment :

19.07.2013

DIN No.:

06410771

 

 

KEY EXECUTIVES

 

Name :

Mr. Vimal Kishor

Designation :

CS

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.04.2012

 

Names of Shareholders

 

No. of Shares

Saurabh Pradipkumar Dhoot

 

10

Sunil Ramswaroop Samriya

 

10

Vasant Sheshrao Kakade

 

10

Vilas Rambhau Salunke

 

10

Siddharth Madhusudan Somani

 

10

Nikhil Chandrashekhar Yadkikar

 

10

Videocon Industries Limited

 

4959940

 

 

 

Total

 

4960000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 30.04.2012

 

Category

 

Percentage

Bodies corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing General Insurance Services.

 

 

GENERAL INFORMATION

 

No. of Employees :

212 (Approximately)

 

 

Bankers :

Not Available

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors 1 :

 

Name :

Kirtane and Pandit

Chartered Accountants

Address :

H-16 Saraswat Colony, Shitladevi Temple Road Mahim, Mumbai – 400016, Maharashtra, India

PAN No.:

AACFK3469M

 

 

Auditors 2 :

 

Name :

T. R. Chadha and Company

Chartered Accountants

Address :

1 Smruti Ground Floor, M V Panaloskar Road, Hanuman Cross Road No. 2, Vile Parle, Mumbai – 400057, Maharashtra, India

PAN No.:

AAAFT1655Q

 

 

Holding Company :

Videocon Industries Limited

 

 

CAPITAL STRUCTURE

 

As on: 30.04.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000000

Equity Shares

Rs.10/- each

Rs.4000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4960000

Equity Shares

Rs.10/- each

Rs.49.600 Millions

 

 

 

 

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000000

Equity Shares

Rs.10/- each

Rs.4000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

359350000

Equity Shares

Rs.10/- each

Rs.3593.500 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2013

(15 Months)

31.12.2011

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

3593.500

49.600

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

3593.500

49.600

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

 

(444.436)

(47.841)

 

 

 

 

TOTAL

 

3149.064

1.759

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

228.616

2.278

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

2228.338

0.000

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 
0.000

0.000

 

Sundry Debtors

 
0.000

0.000

 

Cash & Bank Balances

 
638.298

13.355

 

Other Current Assets

 
0.000

0.000

 

Loans & Advances

 
153.624

4.440

Total Current Assets

 
791.922

17.795

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

 
38.163

18.255

 

Other Current Liabilities

 
66.151

0.000

 

Provisions

 
(4.502)

0.059

Total Current Liabilities

 
99.812

18.314

Net Current Assets

 
692.110

(0.519)

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

3149.064

1.759

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

(15 Months)

31.12.2011

 

SALES

 

 

 

 

 

Fire Insurance

 

(47.006)

(15.916)

 

 

Marine Insurance

 

0.000

(15.915)

 

 

Miscellaneous Insurance

 

(499.810)

(15.916)

 

 

Interest, Dividend and Rent- Gross

 

201.728

0.000

 

 

Less: Amortisation of (premium)/discount on securities

 

11.865

0.000

 

 

Other Income

 

0.115

0.000

 

 

TOTAL                                    

 

(333.109)

(47.746)

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

Expenses other than those related to Insurance business

 

35.087

0.095

 

 

Others- Filing fees

 

28.399

0.000

 

 

TOTAL                                    

 

63.486

0.095

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

 

(396.595)

(47.841)

 

 

 

 

 

 

TAX                                                                 

 

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

 

(396.595)

(47.841)

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

(47.842)

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

(444.436)

(47.841)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

6.547

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

(1.58)

(654.90)

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2013

(15 Months)

31.12.2011

PAT / Total Income

(%)

 

119.06

100.20

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

72.53

100.20

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

(38.86)

(238.34)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

(0.11)

(0.96)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

7.93

0.97

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

 

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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last two years

Yes

12]

Profitability for last two 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 is a Joint Venture promoted by one of India’s leading conglomerates, Videocon Group and US insurance major, Liberty Mutual Insurance Group.

 

Subject was incorporated on 1st November 2010 as a Company under the Companies Act 1956 to undertake and carry on the business of general insurance and the Company received the Certificate of Registration from Insurance Regulatory and Development Authority (IRDA) to underwrite all classes of general insurance business, on 22nd May 2012. Pursuant to the same, the Company commenced the issuance of policies from Jan 2013. The IRDA has further renewed the registration for the year 2013-14 vide its certificate of renewal of registration dated 8th Feb 2013.

 

As prescribed under the Insurance Act, 1938, the Company shall follow the financial year basis for the preparation of financial statements. Since the previous audited financial statements were prepared for the period of 14 months ended 31st December 2011 the current financial statements are prepared for a period of 15 months from 1st Jan 2012 to 31st March 2013.

 

 

OPERATIONAL REVIEW:

 

The Company has commenced operations during the year 2012-13 in January 2013 as a soft launch. During the year, the company achieved gross premium of Rs. 21.926 Millions. The Company commenced operations with limited commercial products from 3 branches in Mumbai, New Delhi and Bengaluru. Thereafter, four more branches were commenced in Ahmedabad, Pune, Chennai and Hyderabad. Insurance for private cars was commenced in February 2013 again as a soft launch. Currently the company has introduced limited products in the market and awaits regulatory approval for more products that will be introduced in due course. Substantial efforts of the company are being expended currently in technology implementation of the core platform as well as non-core technology components including accounting software, human resources software, CRM platform and call centre technology. Intermediary and customer portals are also being designed for later roll out. The immediate focus of the Company is in setting up a robust foundation in terms of products, people, processes, technology and customer focused culture to facilitate sensible growth of business in the future.

 

 

PRODUCTS OVERVIEW:

 

The Company has received approval in respect of 24 products in the Commercial and Motor Lines of Business from the Insurance Regulatory and Development Authority (IRDA). A number of additional products have been filed with the IRDA and are currently pending approval.

 

 

FUTURE OUTLOOK

 

The Company has an objective of profitable growth and risk based underwriting, with high level of customer service. While the business operations have commenced recently, the company has been well received in the market by the intermediaries and ultimate consumers and the prospects of the company remain attractive.

 

 

Note:  No Charges Exist for Company

 

 

FIXED ASSETS

 

·         Goodwill

·         Information Technology Software

·         Land-Freehold

·         Leasehold Property

·         Buildings

·         Furniture and Fittings

·         Information Technology Equipment

·         Vehicles

·         Office Equipment

·         Improvements to lease hold premises

 

 

 

AS PER WEBSITE DETAILS

 

NEWS

 

LIBERTY VIDEOCON GENERAL INSURANCE COMMENCES OPERATIONS IN INDIA

 

February 26, 2013

 

Liberty Videocon General Insurance has commenced business with an initial capital of Rs. 3500.000 Millions, one of the highest for a start-up company in the General Insurance industry.

 

Liberty Videocon General Insurance Company Limited, a joint venture between the Videocon Industries Limited and Liberty Citystate holdings PTE Limited, part of US-based Liberty Mutual Insurance group, announced the start of operations in India with plans to launch a comprehensive portfolio of retail and commercial products.

 

Headquartered in Mumbai, Liberty Videocon General Insurance has commenced business with an initial capital of Rs. 3500.000 Millions, one of the highest for a start-up company in the General Insurance industry.

 

The company received license to operate in the general insurance industry from Insurance Regulatory Development Authority (IRDA) in May 2012. With 26% stake, Liberty Citystate Holding Pte Limited will provide the Indian arm inputs on technical functions and extend expertise on managing emerging markets. On the other hand, Videocon Industries with its 74% stake will provide access to extensive distribution network across India and share knowledge on consumer behaviour.

 

The move marks the entry of Boston-based Liberty Mutual Insurance – the third largest property and casualty insurer in the US and the sixth largest in the world, and Videocon Industries into India’s fast-growing financial services space. Liberty Mutual Insurance ranks 84th on the Fortune 100 list of largest corporations in the US, based on 2011 revenue. In 2011, Liberty Mutual registered revenues of over USD 34bn 

 

With USD 8.6 bn in international business, Liberty Mutual Insurance is one of the leading players in several emerging economies, including Venezuela, Brazil, Colombia, Thailand, China and Vietnam. With more than 45,000 employees and 900 offices worldwide, the Group has expanded its presence globally through acquisitions.

 

Bhasker Natarajan, Executive Vice President, Liberty International; Chief Operating Officer – India Region; and General Manager – Global Best Practices and Global Safety , said, “Strong growth in emerging economies has not only triggered higher demand for financial services; but also altered customer attitudes to products and service expectations.

 

They are increasingly demanding simplicity, transparency and right assessment of risk. Increasingly more insurance products are ‘bought’ rather than ‘sold’, marking a fundamental shift in customer behavior. This has led insurance players to re-visit the value chain and their portfolio mix. India is not an exception to these developments. There is tremendous unfulfilled potential in this area.”

 

“Liberty Mutual Insurance brings to India a compelling combination of a differentiated approach to service, aligned with proven, disciplined underwriting philosophy and strong actuarial capability. We believe this will position Liberty Videocon extremely well in the Indian insurance space,” he added.

 

Liberty Mutual’s experience in emerging markets, best-in-class products, technological expertise and management competence - coupled with Videocon’s extensive reach – is a distinctive proposition in the category, Natarajan said.

 

Speaking on the Indian general insurance market, Mr Roopam Asthana, CEO, Liberty Videocon, said, “At a robust CAGR of over 15%, Indian general insurance market is poised to cross $ 50 bn in Gross Written Premium (GWP) by 2020.

 

By 2014-15, motor and health insurance categories are likely to grow to 40% and 28%, respectively. Initiatives on the regulatory front like dismantling of the Motor Third Party Pool, de-tariffication of pricing combined with freedom in wordings, proposed changes in bancassurance and proposed amendments in Motor Vehicle (MV) Act, will enable the sector to grow in depth and scale.”

 

The Company plans to introduce all major retail (Motor and Health) and commercial (Fire, Engineering and Group Health) products. “Liberty Videocon will focus on a balanced mix of commercial and retail products. We intend to expand business by following a ‘Set-up, Stabilize, Study and Expand’ model.

 

The company plans to take up the number of branches to over 25 next year. To ensure efficient distribution of products, the company will create a wide network of ‘affinities’ and also leverage bancassurance opportunities,” Mr Asthana added. He also stated that , the company is focused on building its business through the intermediaries.

 

In order to ensure speedy processing of insurance policies right from underwriting of the risk to claim processing the Company will focus on ‘owning’ processes. It is setting up in-house call center to cater to all customer needs. For better customer life cycle management and retention, the Company is contemplating to create strong data analytics capabilities. 

 

Currently, the Company has a team of 150 professionals and is soon set to hire 200 more in near future. Besides Mumbai, the Company has operations in Delhi and Bangalore. In the near future the company will add another 5 branches.’

 

 

LIBERTY VIDEOCON GEN LAUNCHES GROUP PERSONAL ACCIDENT PRODUCT

 

Private insurer Liberty Videocon General Insurance Company today launched a group personal accident product aimed mainly at group, corporates, associations and institutions.

 

"This product supports the growing focus on employee benefits by corporates and inherently fulfils their commitment towards enhancing employee engagement. It enables corporates or groups to provide a safety net to their stakeholders in case of an emergency," Liberty Videocon CEO Roopam Asthana said in a release.

 

With affordable premiums, this product will enhance the risk mitigating capacity of the insured and help ensure financial stability in the unfortunate event of an accident, he added.

 

"We will shortly bring more products, which will cater to various other needs of our customers," he said.

 

Liberty Videocon General Insurance is a joint venture between Videocon Industries and Liberty Citystate Holdings, part of US-based Liberty Mutual Insurance Group.

 

 

LIBERTY VIDEOCON GENERAL INSURANCE GETS IRDA NOD TO START BIZ

 

June 26, 2012

 

New entrant in the private space Liberty Videocon General Insurance Company today said it has received the final approval from the regulator, which enables the company to commence operations.

 

"We have received the mandatory clearance from IRDA and are gearing up to launch Liberty Videocon General Insurance operations in India," company Chief Executive Officer - Designate and Director Roopam Asthana said in a release issued here.

 

"Supported by a strong and experienced leadership team, which is already in place and market expertise of our parent companies in their respective domains, we are looking forward to making a substantial difference in the Indian Non-Life Insurance market," Asthana said.

 

Headquartered in Mumbai, the company will start operations with an initial capital of Rs 3000.000 Millions.

 

"With the R3 approval in place, we are now getting ready to file documents with the IRDA for approval of our proposed products. We intend to build a customer focused business, which will address the distinct needs of individual and corporate customers through both direct and intermediary relationships backed by a prudent and disciplined underwriting philosophy and strong actuarial capability. We are in the process of implementing a technology platform for seamless and speedy experience," Asthana said.

 

The partnership between Videocon Industries and US-based Liberty Mutual Insurance Group, a leading global property and casualty group, Liberty Videocon General Insurance is geared to provide multi-line insurance underwriting capabilities nationally, with an emphasis on personal insurance products, it said.

 

Having completed its capitalisation, the company is now in the process of finalising its products and service delivery blue print, it added.

 

"India's rapidly rising personal income levels mean more and more Indians will be buying insurance to protect their property and possessions," Liberty Mutual's president and CEO David Long said.

 

 

LIBERTY VIDEOCON GENERAL INSURANCE ADDS OFFICES IN FOUR CITIES

 

April 2, 2013

 

Mumbai headquartered, Liberty Videocon General Insurance Company has opened offices in Ahmedabad, Hyderabad, Pune and Chennai for its business operations.

 

The opening of these new offices are an integral part of the company's strategy to mark its presence in major metros and to reach out to commercial and retail audiences in the metro cities, said Liberty Videocon in a press release.

 

Mr. Roopam Asthana, CEO and Whole Time Director of Liberty Videocon General Insurance said, "These are key markets for both our retail as well as commercial line products. Our presence in these locations would help us in augmenting our relationships with leading brokers, auto dealers, agents and other partners. With the opening of these branches, Liberty Videocon General Insurance has increased its presence to seven metro cities in India".

 

The company commenced business with an initial capital of Rs 3500.000 Millions.

 

Liberty Videocon General Insurance Company received its licence to operate in the general insurance company from the Insurance Regulatory Development Authority (IRDA) in May 2012. It launched its operation in India recently.


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 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 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.61.93

UK Pound

1

Rs.100.44

Euro

1

Rs.84.24

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

4

--CREDIT LINES

1~10

5

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

46

 

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.