MIRA INFORM REPORT

Report No. :	303990
Report Date :	21.01.2015

IDENTIFICATION DETAILS

Name :	ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Registered Office :	ICICI Prulife Tower, 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.07.2000
Com. Reg. No.:	11-127837
Capital Investment / Paid-up Capital :	Rs. 14292.557 Millions
CIN No.: [Company Identification No.]	U66010MH2000PLC127837
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMI03877G MUMI07366C
PAN No.: [Permanent Account No.]	AAACI7351P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Life Insurance and Pension Services
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects company’s healthy market share among private sector players supported by well diversified distribution channel, decent brand name and adequate financial base of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Claims paying ability : IAAA
Rating Explanation	Highest claim paying ability. Indicates fundamentally strong position. Prospect of meeting policy holder obligations is the best
Date	March, 2014

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (91-22-40391600)

LOCATIONS

Registered Office :	ICICI Prulife Tower 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-66621600
Fax No.:	91-22-24376956
E-Mail :	sanaulla.khan@iciciprulife.com deepak.kinger@iciciprulife.com maruti.naik@iciciprulife.com kalpana.sampat@iciciprulife.com cl.baradhwaj@iciciprulife.com wecoveryou@iciciprulife.com ami.badani@iciciprulife.com
Website :	www.iciciprulife.com

DIRECTORS

As on 31.03.2014

Name :	Ms. Chanda D. Kochhar
Designation :	Chairperson
Address :	CCI Chambers, Flat No.45, 5th Floor, Dinshaw Vacha Road, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	17.11.1961
Date of Appointment :	28.05.2002
DIN No.:	00043617
Name :	Mr. Kannan Shrinivasa Narayanan
Designation :	Director
Address :	Flat No.204, Tower B, Kalpataru Horrizon, S K Ahire Marg, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	30.06.1965
Date of Appointment :	01.05.2009
DIN No.:	00066009
Name :	Mr. Ramkumar Krishnaswamy
Designation :	Director
Address :	101, Phoenix House, 91, Sayani Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	08.08.1961
Date of Appointment :	13.10.2008
DIN No.:	00244711
Name :	Mr. Rajiv Sabharwal
Designation :	Director
Address :	Y, 1301, Chalalilly, Nahar Amrit Shakti, Chandivali, Andheri (East), Mumbai-400072, Maharashtra, India
Date of Birth/Age :	28.09.1965
Date of Appointment :	19.10.2010
DIN No.:	00057333
Name :	Mr. Barry Stowe
Designation :	Director
Address :	11/F, Eva Court, No.36, Macdonnell Road, Hong Kong
Date of Birth/Age :	27.11.1957
Date of Appointment :	06.11.2006
DIN No.:	00953024
Name :	Mr. Adrian O’Connor
Designation :	Director
Address :	House 30, Le Palais 8, Pak Pat Shan Road, Hong Kong
Date of Birth/Age :	29.12.1958
Date of Appointment :	23.07.2008
DIN Nso.:	02417554
Name :	Mr. Keki Dadiseth
Designation :	Director
Address :	8 A, Mane K Building L D Ruparel Marg, Malabar, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	20.12.1945
Date of Appointment :	26.04.2006
DIN No.:	00052165
Name :	Marti G. Subrahmanyam
Designation :	Independent Director
Address :	70, East Tenth Street, #18-S, New York – 10003, USA
Date of Birth/Age :	23.08.1946
Date of Appointment :	26.07.2007
DIN No.:	00306761
Name :	Ms. Rama Bijapurkar
Designation :	Independent Director
Address :	8, C-D Mona Apartments 46 F, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	12.02.1957
Date of Appointment :	17.01.2008
DIN No.:	00001835
Name :	Mr. Vinod Kumar Dhall
Designation :	Independent Director
Address :	Dewan Manohar House, B-88, Sector 51, Noida – 201301, Uttar Pradesh
Date of Birth/Age :	20.02.1944
Date of Appointment :	05.03.2009
DIN No.:	02591373
Name :	Mr. Sridar Venkatesan
Designation :	Independent Director
Address :	303/A, HPCL Employees Co-operative Housing Society, No. NDR – 11, Tilak Nagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	28.07.1947
Date of Appointment :	18.04.2013
DIN No.:	02241339
Name :	Mr. Sandeep Bakhshi
Designation :	Managing Director and Chief Executive Officer
Address :	8B, Tanna Residency, Opp. Siddhivinayak Temple, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	28.05.1960
Date of Appointment :	01.08.2010
DIN No.:	00109206
Name :	Mr. Puneet Nanda
Designation :	Whole time director
Address :	Flat No.11, Victoria Sarojini Road, Santacruz (West), Mumbai – 400054, Maharashtra, India
Date of Birth/Age :	05.02.1969
Date of Appointment :	01.08.2010
DIN No.:	02578795
Name :	Mr. Sandeep Batra
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Sanaulla Khan Mohammed
Designation :	Secretary
Address :	201, Rehna Heights, Chapel Lane, Santacruz (West), Mumbai – 400054, Maharashtra, India
Date of Birth/Age :	13.07.1970
Date of Appointment :	15.12.2008
PAN No.:	ACIPM1846L

BOARD COMMITTEES :
BOARD AUDIT COMMITTEE :	· Mr. Keki Dadiseth, Chairman · Mr. K. Ramkumar · Mr. Adrian O’Connor · Mr. V. Sridar
BOARD NOMINATION AND REMUNERATION COMMITTEE* :	· Ms. Rama Bijapurkar, Chairperson · Prof. Marti G. Subrahmanyam · Mr. Vinod Kumar Dhall · Mr. K. Ramkumar · Mr. Adrian O’Connor
BOARD CORPORATE SOCIAL RESPONSIBILITY COMMITTEE**:	· Mr. Vinod Kumar Dhall, Chairman · Mr. K. Ramkumar · Mr. Adrian O’Connor
WITH PROFITS COMMITTEE :	· Mr. V. Sridar, Chairman · Mr. N. S. Kannan · Mr. Adrian O’ Connor · Mr. N. M. Govardhan · Mr. Sandeep Bakhshi · Mr. Satyan Jambunathan
BOARD CUSTOMER SERVICE & POLICYHOLDERS’ PROTECTION COMMITTEE :	· Mr. Vinod Kumar Dhall, Chairman · Mr. K. Ramkumar · Mr. Adrian O’Connor
BOARD RISK MANAGEMENT COMMITTEE :	· Prof. Marti G. Subrahmanyam, Chairman · Ms. Rama Bijapurkar · Mr. N. S. Kannan · Mr. Adrian O’Connor
BOARD INVESTMENT COMMITTEE :	· Prof. Marti G. Subrahmanyam, Chairman · Mr. N. S. Kannan · Mr. Adrian O’Connor · Mr. Sandeep Bakhshi · Mr. Sandeep Batra · Mr. Satyan Jambunathan · Mr. Manish Kumar · Mr. Binay Agarwala
SHARE TRANSFER COMMITTEE:	· Mr. Vinod Kumar Dhall, Chairman · Mr. Keki Dadiseth · Mr. Sandeep Bakhshi

NOTE

* Board Compensation & Nominations Committee renamed as Board Nomination & Remuneration Committee with effect from April 22, 2014.

** Board Corporate Social Responsibility Committee constituted on April 22, 2014

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.06.2013

SHAREHOLDERS AND DETAILS FILE ATTACHED

As on 20.06.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Nationalised or other banks	73.85
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	25.95
Other	0.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing Life Insurance and Pension Services
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information denied by management

Bankers :

Banker Name	Not Divulged
Branch Address	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	S. R. Billimoria and Company Chartered Accountants
Address :	Indiabulls Finance Centre, Tower 3, 32nd Floor, Senapati Bapat Marg, Elphistone (west), Mumbai – 400013, Maharashtra, India
PAN No.:	AAAFS7376P
Name :	S. R. Batliboi and Company LLP Chartered Accountants
Address :	12th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (west), Mumbai – 400028, Maharashtra, India
Tel. No.:	91-22-61920000
Fax.	91-22-61921000
PAN No.:	AALFS0506L
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	ICICI Bank Limited
Substantial interest :	Prudential Corporation Holdings Limited
Subsidiary :	ICICI Prudential Pension Funds Management Company Limited
Fellow subsidiaries and entities jointly controlled by holding company :	· ICICI Securities Limited · ICICI Securities Inc. · ICICI Securities Holding Inc. · ICICI Securities Primary Dealership Limited · ICICI Venture Funds Management Company Limited · ICICI Home Finance Company Limited · ICICI Trusteeship Services Limited · ICICI Investment Management Company Limited · ICICI International Limited · ICICI Bank UK PLC. · ICICI Bank Canada · ICICI Bank Eurasia Limited Liability Company · ICICI Lombard General Insurance Company Limited · ICICI Prudential Asset Management Company Limited · ICICI Prudential Trust Limited
Consolidated under AS-21 by holding company :	· ICICI Equity Fund · ICICI Strategic Investments Fund · ICICI Kinfra Limited · I-Ven Biotech Limited
Significant Influence :	· ICICI Prudential Life Insurance Company Limited (Employees’ Group Gratuity Cum Life Insurance Scheme) · ICICI Prudential Life Insurance Company Limited (Employees’ Provident Fund) · ICICI Prudential Life Insurance Company Limited (Superannuation Scheme)

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000,000	Equity Shares	Rs.10/- each	Rs. 15000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,429,255,687	Equity Shares	Rs.10/- each	Rs. 14292.557 Millions

After 23.06.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000,000	Equity Shares	Rs.10/- each	Rs. 15000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,430,267,800	Equity Shares	Rs.10/- each	Rs. 14302.678 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
SOURCES OF FUNDS
SHAREHOLDERS FUND:
Share Capital	14292.557	14289.392	14288.491
Share Application Money	0.984	0.000	0.000
Reserves & Surplus	33663.847	33645.103	35023.689
Credit/[debit] fair value change account	1860.657	477.588	207.604
Sub – Total	49818.045	48412.083	49519.784
Borrowings	0.000	0.000	0.000
POLICYHOLDERS FUND
Fair value change Account – Net	4794.024	2478.035	2203.143
Revaluation Reserve – Investment Property	668.879	704.479	704.479
Policy Liabilities	138124.872	110276.000	83379.998
Provision for linked liability	591373.652	569584.031	574185.927
Funds for discontinued polices	11280.677	4301.825	665.190
Sub – Total	746242.104	687344.370	661138.737
Funds for future appropriations
Linked	449.992	1322.418	3322.628
Non Linked	4590.399	3760.126	4269.540
TOTAL	801100.540	740838.997	718250.690
APPLICATION OF FUNDS
Investment
-Shareholders	53527.703	49199.607	34770.112
-Policy Holders	144567.076	112869.878	91107.635
Asset held to cover linked liabilities	603104.321	575208.274	578173.746
Loans	119.076	87.469	95.740
Fixed Assets	2015.439	1722.384	1802.306
Deferred Tax Assets	15.295	78.197	1053.361
Current Assets
Cash and Bank Balance	1934.384	3247.600	2840.640
Advances and Other assets	9642.058	9846.435	6700.182
Sub – Total (A)	11576.442	13094.035	9540.822
Sundry Creditors	144.237	191.123	278.550
Other Current Liabilities	15922.198	18239.929	16185.465
Provisions	3646.186	1753.150	1296.012
Sub – Total (B)	19712.621	20184.202	17760.027
Net Current Assets (C) = (A-B)	(8136.179)	(7090.167)	(8219.205)
Miscellaneous expenditure	0.000	0.000	0.000
Debit Balance in Profit and Loss Account	5887.809	8763.355	19466.995
TOTAL	801100.540	740838.997	718250.690

REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2014

POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Premium Earned – Net
a) Premium	124286.495	135382.380	140215.780
b) Reinsurance Ceded	(1459.968)	(1210.008)	(936.980)
c) Reinsurance accepted	0.000	0.000	0.000
Sub-total	122826.527	134172.372	139278.800
Income from investments
a) interest, Dividend and Rent – Gross	31693.174	27992.314	22363.985
b) Profit on sale / Redemption of investments	43201.547	35302.915	36223.608
c) (Loss) on sale / Redemption of investments	(15048.276)	(16547.510)	(18819.123)
(d) Transfer/gain on revaluation/change in fair value	29126.386	11980.043	(45060.607)
(e) Accretion of discount/(amortisation of premium) (net)	3194.606	3175.361	3898.341
(f) Appropriation/expropriation adjustment account	--	--	(24.288)
Sub-Total	9267.437	61903.123	(1418.084)
Other Income
Contribution from the shareholders account	946.523	5412.458	3498.006
Others (interest etc.)	56.378	36.925	62.522
Miscellaneous income	116.093	203.775	76.575
Sub-Total	1118.994	5653.158	3637.103
Total (A)	216112.958	201728.653	141497.819
Commission	6274.850	7654.168	6054.687
Operating expenses related to insurance business	16168.605	17131.074	20034.728
Provision for Doubtful debts	(51.202)	53.589	(55.795)
Bad debts written off	81.844	16.707	109.519
Provision (other than taxation)	--	--	--
a) for diminution in value of investments (net)	84.991	98.743	--
b) others	--	--	--
Service tax charge on linked charges	3066.114	3181.135	--
Total (B)	25625.202	28135.416	26143.139
Benefits paid (Net)	120739.625	132878.583	84543.802
Interim Bonus Paid	93.770	48.692	29.831
Change in valuation of policy liabilities
(a) Policy liabilities (non-unit/ mathematical reserves) (gross)	29319.789	28321.293	19014.533
(b) Amount ceded in reinsurance	(1470.917)	(1425.291)	(1988.699)
(c) Amount accepted in reinsurance	--	--	--
(d) Fund reserve	21789.620	(4601.896)	--
(e) Funds for discontinued policies	6978.852	3636.635	--
Total (C)	177450.739	158858.016	101599.467
Surplus / (Deficit) (D)= (A)-(B)-(C)	13037.017	14735.221	13755.213
Provision for taxation
(a) Current tax credit/(charge)	--	--	-
(b) Deferred tax credit/(charge)	(437.367)	(238.458)	(435.567)
Appropriations
Transfer to shareholders account	12641.803	17006.388	15449.503
Transfer to other reserves	--	--	--
Balance being funds for future appropriation	(42.153)	(2509.625)	(2129.857)
Total	12599.650	14496.763	13319.646
Details of surplus before tax
(a) Interim bonuses paid	93.770	48.692	29.831
(b) Allocation of bonus to policyholders	2642.159	2241.686	1949.294
(c) Surplus shown in the Revenue Account	13037.017	15581.315	14302.033
Total surplus	15772.946	17871.693	16281.158
Funds for future appropriations
Opening Balance as at April 1, 2012	5082.544	7592.169	9722.026
Add: Current year appropriations	(42.153)	(2509.625)	(2129.857)
Balance carried forward to Balance Sheet	5040.391	5082.544	7592.169

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2014

SHAREHOLDERS' ACCOUNT (NON-TECHNICAL ACCOUNT)

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Amount transfer from Policyholders account (Technical account)	12641.803	17006.388	11951.497
Income from investments
(a) Interest, Dividend and Rent - Gross	3592.152	3003.955	1628.246
(b) Profit on sale/redemption of investments	1432.038	1061.218	558.014
(c) Loss on sale/redemption of investments	(1218.724)	(162.617)	(426.516)
(d) Accretion of discount/ amortization of premium) (net)	169.417	253.310	437.539
Other Income	99.067	4.764	5.617
Total	16615.753	15754.560	14154.397
Expenses other than those directly related to the insurance business	114.134	58.462	17.171
Bad Debts Written Off	0.000	0.000	0.000
Provisions (other than taxation)
(a) For diminution in value of investments (net)	263.006	0.000	0.000
(b) Provision for doubtful debts	0.000	0.000	0.000
Contribution to Policyholders’ account (Technical account)	946.523	5412.458	--
Total	1323.663	5470.920	17.171
(Less) Profit Before Tax	15292.090	15696.098	14137.226
Provision for taxation
(a) Current tax credit/(charge)	--	--	--
(b) Deferred tax credit/(charge)	374.465	(736.706)	(295.489)
Profit / (Loss) after tax	15666.555	14959.392	13841.737
Appropriation
(a) Balance of the beginning for the year	(11643.468)	(19466.995)	(27108.690)
(b) Interim dividends paid during the year	7931.517	3429.335	3142.777
(c) Proposed final dividend	3001.437	1413.959	1000.885
(d) Dividend distribution Tax	1858.055	796.632	672.206
(c) Transfer to reserve / other income	1566.656	1495.939	1384.174
Profit / (Loss) carried to Balance Sheet	(10334.578)	(11643.468)	(19466.995)
Earning Per shares (Rs.)
Basic	10.96	10.47	9.69
Diluted	10.94	10.44	9.66

LOCAL AGENCY FURTHER INFORMATION

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	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	Yes

LITIGATION DETAILS

HIGH COURT OF BOMBAY
CASE DETAILS
BENCH:- BOMBAY
LODGING NO:- ITXAL/291/2013		FAILING DATE:- 18/02/2013		REG. NO.: ITXA/818/2013		REG. DATE: 16/04/2013
PETITIONER:-	COMMISSIONER OF INCOME TAX-6		RESPONDENT:-		ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
PETN.ADV:-	SURESH KUMAR (0)		RESP. ADV.:		S.P. MEHTA (0)
DISTRICT:-	MUMBAI
BENCH:-	DIVISION
STATUS:-	PRE-ADMISSION		CATEGORY:-		TAX APPEALS
LAST DATE:-	28/01/2015		STAGE:-		FOR ADMISSION
LAST CORAM:-	HON’BLE SHRI JUSTICE S. C. DHARMADHIKARI HON’BLE SHRI JUSTICE A. A. SAYED
ACT:-	INCOME TAX ACT, 1961

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LIMITED		SEBI	DID NOT COMPLY WITH ALL PROVISIONS OF THE GUIDELINES, CIRCULARS IN MATTER OF ADVERTISEMENT THROUGH NEWSPAPERS AND HOARDINGS AS REQUIRED UNDER REGULATION 25(6A) OF SEBI (MUTUAL FUNDS) REGULATIONS, 1996	DIRECTED TO ABIDE STRICTLY BY STIPULATIONS ON ADVERTISEMENTS BY MUTUAL FUNDS, ISSUED BY SEBI 17-MAR-2010
ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LIMITED		IRDA	PERMITTED VARIOUS UNLICENSED INDIVIDUALS TO SOLICIT AND PROCURE BUSINESS ENTERED IN REFERRAL AGREEMENTS WITH NON-BANKING ENTITIES INCLUDING INDIVIDUALS APART FROM REFERRAL FEE, INCURRED OTHER EXPENSES ON REFERRAL PARTNERS PAID NON-COMPETE FEE APART FROM COMMISSION TO CORPORATE AGENTS MADE OTHER PAYOUTS APART FROM COMMISSIONS IN THE NAME OF BRANCH LEVEL MARKETING, PROMOTIONAL ACTIVITIES, CUSTOMER AWARENESS PROGRAMMES, MARKET FEEDBACK AND OTHER RELATED ACTIVITES TO INSURANCE BROKER REMUNERATED MASTER POLICYHOLDERS IN THE NAME OF “MARKET SUPPORT FEE” OR “ADMINISTRATIVE FEE”	IMPOSED PENALTY RS.11.800 Millions ADVISED INSURANCE COMPANIES TO STRICTLY ADHERE TO IRDA GUIDELINES 24-MAY-2012

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CORPORATE INFORMATION

The Company, a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, was incorporated on July 20, 2000 as a Company under the Companies Act, 1956 (`the Act’). The company is licensed by the Insurance Regulatory and Development Authority (`IRDA’) for carrying life insurance business in India. The license has been renewed annually and is in force as at March 31, 2014.

PERFORMANCE

INDUSTRY IN FY2014

The life insurance industry registered a decline of 3.4% in retail weighted new business premium (RWRP) terms for FY2014. The private sector declined by 3.4%. Some of the key trends in the industry are as follows:

The new product regulations for linked and non-linked products came into effect from January 1, 2014. This has meant a significant transition for the industry with players having to re-build their product suite.

The decline in the number of individual agents for the industry was arrested in FY2014 with number of agents increasing marginally from 2.17 million as at December 31, 2012 to 2.20 million as at December 31, 2013. For Private industry also the number of individual agents increased from 0.96 million in December 2012 to 1.00 million

in December 2013. The percentage of business from agency for private players as of December 2013 was similar to December 2012.

COMPANY IN FY2014

The Company registered a decline of 1.7% in RWRP FY2014. The Company’s market share based on RWRP is expected to be around 7.2% in FY2014. Among private players, the Company maintained its leadership position with market share of 18.9% in FY2014. However, the Company increased its gap vis-à-vis its nearest private competition from 1.06 to 1.16 times.

Total premium collected by the Company declined by 8.2% from Rs. 135.38 billion in FY2013 to Rs. 124.29 billion in FY2014 primarily on account of decline in group premium. Retail premium was flat with new business declining marginally from Rs. 36.39 billion in FY2013 to Rs. 35.85 billion in FY2014 and renewal premium increasing marginally from Rs. 80.55 billion in FY2013 to Rs. 81.00 billion in FY2014. This increase in retail renewal premium arrests the two year trend of declining renewal premiums.

The Company registered 4.7% growth in profit after tax from Rs. 14.96 billion in FY2013 to Rs. 15.67 billion in FY2014. The solvency ratio for the Company remained healthy at 372.3% for FY2014. The assets under management (AUM) increased from Rs. 741.64 billion as at March 31, 2013 to Rs. 805.97 billion as at March 31, 2014. For its unit-linked funds, the Company delivered superior fund performance and 97% of the funds have outperformed their respective internal benchmarks since inception.

The Company continued its focus on efficiency of operations. Cost to RWRP, declined from 75.4% in FY2013 to 69.3% in FY2014. Total nonunit expenses registered a decline of Rs. 2.41 billion from Rs. 24.96 billion in FY2013 to Rs. 22.55 billion in FY2014. The digitization initiatives of the Company to facilitate customer acquisition and on-boarding continues to gain momentum. Capability to issue policies in less than three hours is first of its kind in the industry. For FY2014, 80% of new business applications were initiated using the online platform. In addition, 41% of the retail renewal premium was collected through electronic mode.

The Company has been strengthening mechanisms to improve persistency including ensuring higher attachment of ECS or standing instructions at the time of sale and changes in performance management and compensation design to better align distributor and sales management to focus on persistency. These have led to increase in retail renewal premium after two years and improvement in Year 1 persistency.

OUTLOOK FOR THE INDUSTRY AND THE COMPANY

They believe that given strong structural advantages like India’s favourable demographics, high rate of financial savings and improving insurance product propositions, the life insurance industry would continue to be one of the preferred instruments for longer term savings and protection.

The Company would continue to focus on its strategic priorities, specifically:

Enhance market leadership: The Company would continue to focus on growth opportunities in the market with a customised regional strategy to strengthen relative position in every geography.

Providing superior value proposition to customers: The Company would continue to focus on providing superior customer value proposition through product design and service architecture.

Strengthen multi-channel architecture: The Company would strengthen its multichannel distribution by non-linear scale up of agency and proprietary sales force, leveraging the bancassurance franchise and focussing on quality third party distribution.

Continued focus on efficiency of operations: The Company would focus on cost efficiency and in particular would leverage the digital platform to improve customer experience and efficiency of operations.

Customer retention: The Company would strengthen mechanisms to improve the AUM growth by increasing renewal premium and curtailing surrenders.

Superior risk adjusted fund performance: The Company has in place a robust risk and investment management framework to deliver superior risk adjusted returns to customers.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY AND BUSINESS REPORT

ECONOMIC AND INDUSTRY OVERVIEW

Indian economy and impact on life insurance industry

Indian Gross Domestic Product (GDP)1 grew by 4.6% in FY2014 (advance estimates) as compared to 4.7% in FY2013. The growth in the last two years is significantly lower than that witnessed in the preceding 5 years. The compounded annual growth rate of GDP for the five year period from FY2007 to FY2012 was 7.8%.

Slowdown in growth, persistent high inflation and interest rates, and volatile equity markets have adversely impacted the environment for the life insurance industry. There has been a reduction in household savings as a percentage of GDP from 25.2% in FY2010 to 21.9% in FY2013. There is also a fall in financial savings from 12.0% in FY2010 to 7.1% of GDP in FY2013.

Within financial savings there has been a shift toward term deposits and fall in share of insurance. Total new business premium (based on retail weighted received premium (RWRP)) has declined from Rs. 550 billion in FY2010 to Rs. 4542 billion in FY2014. This has led to a reduction in insurance penetration3 from 4.6% in FY2010 to

2.8% in FY2013.

Structurally the Indian economy remains strong owing to solid fundamentals in the form of favorable demographics and a high savings and investment rate. In the medium to long term, there should be some upward movement in GDP growth rates from the current level and a shift back to financial savings. A stable government would accelerate the movement towards higher GDP growth rates and financial saving rates. This increase in income levels and financial savings will provide an impetus for the growth of the life insurance market in the future.

INSURANCE INDUSTRY OVERVIEW

COMPETITIVE LANDSCAPE

The Indian Life Insurance industry has 24 players including Life Insurance Corporation of India (LIC). LIC continues to be a strong player with a market share of more than 60%. Top 7 private players contribute to around 75% of the private market.

SHIFT IN PRODUCT MIX

Overall, the trend of shift from ULIPs to traditional products continued. For private players, traditional mix moved from 59% in FY2012 to 65% in FY2013 and to 72% as at December 31, 2013 of total new business received premium. Bigger private players have a more balanced mix between linked and traditional products.

DISTRIBUTION TRENDS

Agency channel continues to be the predominant channel for LIC, however the share of agency for private insurers has reduced from 51% in FY2010 to 40% in FY2013 (refer chart below). This stems from the transition triggered by the ULIP regulations of FY2011 and the economic slowdown in last few years, which impacted the individual agents more because of the lead time required by them to get used to the new product suite. Linking of commission to the premium paying term in FY2014 has also impacted the earning pattern of agents putting further downward pressure on the agency channel. The number of agents engaged by the industry has fallen to 2.20 million as at December 31, 2013 from 2.89 million as at March 31, 2010. For FY2014, the share of agency has remained flat for the industry as well as for private players after three years of continuous decline.

Bancassurance as a distribution channel has seen rapid growth in the last few years. The share of this channel4 among private players has increased from 25% in FY2010 to 42% in 9m-2014. Direct sales through proprietary sales force or through internet is also becoming increasingly important.

INDUSTRY OUTLOOK

The value proposition of life insurance products has improved over the last few years, making it more competitive vis-à-vis other financial products. The long term growth prospects of the industry remain positive on the back of structural advantages of the Indian economy. However, the industry would need to concentrate on a few near term challenges to be able to fully leverage its growth potential.

PERFORMANCE OVERVIEW AND KEY

INITIATIVES: FY2014

MARKET SHARE

In FY2014, the Company maintained its leadership position and increased its market share11 amongst private players from 18.5% in FY2013 to 18.9% in FY2014. The Company increased its lead over the next private player and was 1.16 times on Retail Weighted Premium basis in FY2014 as against 1.06 times in FY2013 as compared to the next private player. With respect to total market, the share has improved from 7.0% in FY2013 to 7.2% in FY2014.

BALANCED CHANNEL MIX

The Company continued its focus on strengthening its multi-channel distribution. For FY2014, 54.2% of RWRP was from bancassurance channel followed by 28.2% of RWRP from Agency, 9.6% from third party distribution comprising Corporate agents and brokers and 8.0% from other distribution channels including direct channels. Bancassurance has been an important growth driver. In the Corporate agent and Broker channel, the Company has reviewed its portfolio in line with its strategy to work with partners having long term outlook and quality focus.

PRODUCT MIX

During the year, the Company revamped its entire portfolio of products to ensure adherence to the new product regulations issued by IRDA. These regulations covered product design of all retail and group products. The transition to the new product regulations was managed smoothly and the Company got approvals for 19 new products across all lines of business in FY2014.The Company currently offers a range of products across unit linked and traditional platforms to meet specific customer needs. The Company has introduced life and pension products that offer equity participation with capital guarantee. In FY2014, the Company had a balanced product mix with traditional products contributing to 33.5% of the RWRP.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Partly-paid up investments
Claims, other than those under policies, not acknowledged as debts comprising of:
- Claims made by vendors for disputed payments	101.258	101.038
- Claims for damages made by landlords (of premises taken on lease)	43.675	35.731
- Claims made by employees and advisors for disputed dues and compensation	4.086	2.955
Underwriting commitments outstanding (in respect of shares and securities)	--	--
Guarantees given by or on behalf of the Company	--	--
Statutory demands/liabilities in dispute, not provided for (refer note 1)	--	1.590
Reinsurance obligations to the extent not provided for	--	--
Policy related claims under litigation in different consumer forums:
- Claims for service deficiency	155.220	155.916
- Claims against repudiation	146.586	137.984
Others (refer note 2)	1536.996	1350.000

NOTES:

1. Rs. 1.590 Millions pertains to a demand from Profession Tax authority, West Bengal which was settled in the Company’s favour during the year ended March 31, 2014.

2. Rs. 1536.996 Millions is on account of objections raised by office of the Commissioner of Service tax, Mumbai (through the Service Tax audit under EA-2000) on certain positions taken by the Company).

FIXED ASSETS

Tangible Assets

· Freehold Land

· Improvements to Leasehold Property

· Office buildings on Freehold Land

· Furniture and Fixtures

· Information Technology Equipment

· Motor Vehicles

· Office Equipment

· Communication Networks

Intangible Assets

· Goodwill

· Software

REVENUE ACCOUNT FOR THE HALF ENDED 30^th SEPTEMBER 2014

POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)

.

(Rs. in Millions)

PARTICULARS	September 30, 2014
	Total	Non Linked			Linked
		Individual		Group	Individual		Group
		Life	Pension		Life	pension
Premium Earned – Net
a) Premium	61336.400	16039.900	1049.800	29.700	34782.100	4764.100	4670.800
b) Reinsurance Ceded	(754.900)	(417.600)	--	--	(336.400)	--	(0.900)
c) Reinsurance accepted	--	--	--	--	--	--	--
Sub-total	60581.500	15622.300	1049.800	29.700	34445.700	4764.100	4669.900
Income from investments
a) interest, Dividend and Rent – Gross	18519.600	3872.200	1032.300	450.900	7232.600	3941.900	1989.700
b) Profit on sale / Redemption of investments	31725.200	330.900	101.500	5.400	18608.700	11163.700	1515.000
c) (Loss) on sale / Redemption of investments	(3714.100)	(270.800)	(29.100)	(10.600)	(2225.800)	(1014.100)	(163.700)
(d) Transfer/gain on revaluation/change in fair value	63352.900	--	--	--	36542.900	26096.800	713.200
(e) Accretion of discount/(amortisation of premium) (net)	2593.800	42.400	26.900	122.900	1298.700	627.000	475.900
Sub-Total	112477.400	3974.700	1131.600	568.600	61457.100	40815.300	4530.100
Other Income
Contribution from the shareholders account --	162.200	--	162.200	--	--	--	--
Others (interest etc.)	43.200	42.300	0.500	--	0.400	--	--
Miscellaneous income	21.600	6.800	0.100	--	13.000	1.400	0.300
Sub-Total	227.00	49.100	262.800	--	13.400	1.400	0.300
Total (A)	173285.900	19646.100	2344.200	598.300	95916.200	45516.200	9200.300
Commission	2252.100	1115.400	2.600	--	1088.700	47.400	--
Operating expenses related to insurance business	7656.900	2366.500	34.600	12.100	4662.800	481.200	99.700
Provision for Doubtful debts	15.600	(13.400)	(0.300)	--	26.700	2.400	0.200
Bad debts written off	2.700	1.900	--	--	2.600	(1.800)	--
Provision (other than taxation)	28.600	28.600	--	--	--	--	--
Service tax charge on linked charges	1502.000	--	--	--	972.800	479.200	50.000
Total (B)	11457.900	3499.00	36.900	12.100	6751.600	1008.400	149.900
Benefits paid (Net)	62710.700	1773.700	692.900	908.100	26393.600
Interim Bonus Paid	53.400	53.000	0.400	--	--	--	--
(a) gross amount	13637.100	12610.300	1384.800	(364.900)	(30.200)	(186.900)	224.00
(b) Amount ceded in reinsurance	(594.500)	(594.500)	--	--	--	--	--
(c) Amount accepted in reinsurance	--	--	--	--	--	--	--
(d) Fund reserve	72871.700	--	--	--	55752.100	13359.700	3759.900
(e) Funds for discontinued policies	5813.000	--	--	--	5640.300	172.700	--
Total (C)	154491.400	13842.500	2078.100	543.200	87755.800	4139.900	8951.900
Surplus / (Deficit) (D)= (A)-(B)-(C)	7336.600	2304.600	229.200	43.000	1408.800	3252.500	98.500
Provision for taxation
(a) Current tax credit/(charge)	(165.600)	(164.900)	--	(0.700)	--	--	--
(b) Deferred tax credit/(charge)	(12.600)	--	--	-	(13.600)	--	--
Surplus / (Deficit) after tax	7158.400	2139.700	229.200	43.000	1408.800	3252.500	985.000
Appropriations
Balance previous year	5040.400	2842.300	1284.200	(152.600)	449.400	917.100	--
Transfer to shareholders account	5403.700	301.200	--	--	1620.00	3434.000	48.500
Reserve for lased linked policies unlikely to be reviewed	53.400	--	--	--	19.300	34.100	--
Fund for future appropriation	6774.700	4680.800	1513.400	(110.300)	206.300	401.500	500.00

PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED 30^th SEPTEMBER 2014

SHAREHOLDERS' ACCOUNT (NON-TECHNICAL ACCOUNT)

(Rs.in Million)

PARTICULARS	30.09.2014
Amount transfer from Policyholders account (Technical account)	5403.700
Income from investments
(a) Interest, Dividend and Rent - Gross	1858.000
(b) Profit on sale/redemption of investments	695.900
(c) Loss on sale/redemption of investments	(166.900)
(d) Accretion of discount/ amortization of premium) (net)	208.700
Other Income	3.300
Total	8002.700
Expenses other than those directly related to the insurance business	193.300
Bad Debts Written Off	--
Provisions (other than taxation)
(a) For diminution in value of investments (net)	--
(b) Provision for doubtful debts	--
Contribution to Policyholders’ account (Technical account)	162.200
Total	355.000
(Less) Profit Before Tax	7647.200
Provision for taxation
(a) Current tax credit/(charge)	165.600
(b) Deferred tax credit/(charge)	--
Profit / (Loss) after tax	7812.800
Appropriation
(a) Balance of the beginning for the year	(30334.600)
(b) Interim dividends paid during the year	2644.600
(c) Proposed final dividend	0.300
(d) Dividend distribution Tax	992.600
(c) Transfer to reserve / other income	(4446.700)
(f) Interim Dividend	2716.500
Profit / (Loss) carried to Balance Sheet	(4429.100)
Earning Per shares (Rs.)
Basic earnings per equity shares	5.47
Diluted earnings per equity shares	5.46
Nominal Value per shares	10.00

BALANCE SHEET

PARTICULARS	30.09.2014
SOURCES OF FUNDS
SHAREHOLDERS FUND:
Share Capital	14297.500
Share Application Money	0.100
Reserves & Surplus	33701.200
Credit/[debit] fair value change account	3526.700
Sub – Total	51525.500
Borrowings	--
POLICYHOLDERS FUND
Fair value change Account – Net	9331.400
Revaluation Reserve – Investment Property	668.900
Policy Liabilities	151167.500
Provision for linked liability	664245.300
Funds for discontinued polices	17093.700
Sub – Total	842506.800
Funds for future appropriations
Linked	53.400
Non Linked	6741.700
TOTAL	900827.400
APPLICATION OF FUNDS
Investment
-Shareholders	54722.300
-Policy Holders	165371.300
Asset held to cover linked liabilities	681392.400
Loans	131.100
Fixed Assets	1964.300
Deferred Tax Assets	2.700
Current Assets
Cash and Bank Balance	743.500
Advances and Other assets	10770.800
Sub – Total (A)	11514.300
Current Liabilities	15329.900
Provisions	3370.200
Sub – Total (B)	18700.100
Net Current Assets (C) = (A-B)	(7185.800)
Miscellaneous expenditure	--
Debit Balance in Profit and Loss Account
Account (Shareholders account)	4429.100
TOTAL	900827.400

ANALYTICAL RATION

PARTICULARS	30.09.2014
New business premium income growth
-No Linked Life	(45.6%)
-No Linked Pension	9.1%
-No Linked Group	(100.0%)
-Linked Life	74.1%
-Linked Pension	38.3%
-Linked Group	649.6%
Net retention ratio	98.8
Ratio of expenses of management	16.2%
Commission Ratio	3.7%
Ratio of policyholders liabilities to shareholders funds	1803.3%
Growth rate of shareholders fund	11.6%
Ratio of surplus to policyholders liability	0.8%
Change in networth (Rs. in Million)	0.049
Profit after tax / Total income	4.4%
(Total Real Estate + Loans) / Cash & invested assets	0.2%
Total Investment / (Capital + Surplus)	1914.1%
Total Affiliated Investment / (Capital+Surplus)	7.5%
Investment Yield (Gross and Net)
A. Without unrealised gains
Shareholders' Fund	6.8%
Policyholders' Fund
-Non Linked	8.8%
-Non Linked Non Par	7.7%
-Linked Par	15.0%
B. With unrealised gains
Shareholders' Fund	19.7%
Policyholders' Fund
-Non Linked	20.5%
-Non Linked Non Par	19.6%
-Linked Par	37.2%
Conservation Ratio
-Non Linked Life	86.7%
-Non Linked Pension	91.8%
-Non Linked Group	3.7%
-Linked Life	83.8%
-Linked Pension	64.1%
-Linked Group	72.8%
Persistency Ratio
13th month	73.0%
25th month	63.9%
37th month	63.8%
49th month	16.9%
61st month	11.8%
NPA Ratio	Nil

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 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.61.85
UK Pound	1	Rs.93.26
Euro	1	Rs.71.57

INFORMATION DETAILS

Information Gathered by :	PRA
Analysis Done by :	KAR
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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		68

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.