MIRA INFORM REPORT

 

 

Report No. :

332169

Report Date :

23.07.2015

           

IDENTIFICATION DETAILS

 

Name :

THE NEW INDIA ASSURANCE COMPANY LIMITED

 

 

Registered Office :

New India Assurance Building 87 M.G. Road, Fort,  Mumbai- 400001, Maharashtra

Tel. No.:

91-22-22708100/22708400/22708220

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

23.07.1919

 

 

Com. Reg. No.:

11-000526

 

 

Capital Investment / Paid-up Capital :

Rs. 2000.000 Million

 

 

CIN No.:

[Company Identification No.]

U99999MH1919GOI000526

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACN4165C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject acts as an Insurance company.

 

 

No. of Employees :

20,000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aaa (86)

 

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

 

Status :

Excellent company

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is India’s largest non-life insurance company. It is the only Indian general insurance company with a strong market position in India and significant reach outside India.

 

New India Assurance was set up in 1919 by Sir Dorab Tata and nationalised in 1973. It is well-established company having excellent track record.

 

The rating reflect the company’s leadership position in the Indian general insurance industry, its healthy capitalisation, sound asset quality, and comfortable liquidity. The rating also factors in New India Assurance’s 100 per cent ownership and its strategic importance to the Government of India (GoI).

 

Trade relations are trustworthy. Business is active. Payments are reported to be regular as per commitment.

 

The company can be considered excellent for any business dealings with its usually 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.

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term bank facilities “AAA”

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

September, 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 31-03-2013.

 

INFORMATION PARTED BY

 

Name :

Mr. Anil Jadhav

Designation :

Administrative officer

Contact No.:

91-9821360377

Date :

20.07.2015

 

LOCATIONS

 

Registered/Corporate/ Head office :

New India Assurance Building 87 M.G. Road, Fort,  Mumbai- 400001, Maharashtra, India

Tel. No.:

91-22-22708100/22708400/22708220

Mobile No.:

91-9821360377 (Mr. Anil Jadhav)

Fax No.:

91-22-22814719/22652811

E-Mail :

Jadhav.anil@newindia.co.in

cmd.nia@newindia.co.in

Website :

http://www.newindia.co.in

Locality :

Commercial

 

 

Domestic Offices :

·         Ahmedabad

·         Bangalore

·         Baroda

·         Bhopal

·         Bhubaneshwar

·         Chandigarh

·         Chennai

·         Coimbatore

·         Dehradun

·         Delhi RO I

·         Delhi RO II

Ernakulam

·         Guwahati

·         Hubli

·         Hyderabad

·         Jaipur

·         Kanpur

·         Kolkata

·         Ludhiana

·         Madurai

·         Mumbai RO I

·         Mumbai RO II

·         Mumbai RO III

·         Mumbai RO IV

·         Mumbai RO V

·         Nagpur

·         Patna

·         Pune

·         Raipur

·         Surat

·         Vishakhapatnam

 

 

Overseas offices:

·         United Kingdom

·         United Arab Emirates

·         Japan

·         Kuwait

·         Bahrain

·         Saudi Arabia

·         Hong Kong

·         Oman

·         Curacao

·         Trinidad & Tobago

·         Sierra Leone

·         Nigeria

·         Kenya

·         Thailand

·         Philippines

·         Myanmar

·         Malaysia

·         Singapore

·         Mauritius

·         Australia

·         Fiji

·         Aruba

·         New Zealand

 

 

Claims Hubs :

·         Ahmedabad

·         Aurangabad

·         Bangalore

·         Baroda

·         Bhopal

·         Bhubaneshwar

·         Chandigarh

·         Chennai

·         Coimbatore

·         DRO-I

·         DRO-II

·         Ernakulam

·         Guwahati

·         Hyderabad

·         Indore

·         Jaipur

·         Kanpur

·         Karnal

·         Kolkata

·         Lucknow

·         Ludhiana

·         Madurai

·         MRO-I

·         MRO-II

·         MRO-IV

·         Nagpur

·         Panjim

·         Patna

·         Pune

·         Surat

·         Salem

·         Thrissur

·         Trivandram

·         Vijayawada

·         Vizag

 

 

DIRECTORS

 

As on 19.06.2014

 

Name :

Mr. Gopalan Srinivasan

Designation :

Chairman-cum-Managing Director

Address :

Flat No. 5, Mayfair House, Little, Gibbs Road, Malabar Hills, Mumbai-400006, Maharashtra, India

Date of Birth/Age:

19.07.1958

Qualification :

B.Com, FIII, ACMA

Date of Appointment :

18.10.2010

DIN No.:

01876234

Other Directorship:

1. GIC Housing Finance Limited

2. Prestige Assurance Plc, Lagos Nigeria

3. The New India Assurance Company (Trinidad and Tobago) Limited, Port of Spain.

4. India International Pte, Singapore

5. National Insurance Academy Pune

6. Insurance Information Bureau.

7. GIC Re

8. Health Insurance TPA Limited

 

 

Name :

Mr. Rajesh Khullar, IAS (from 05/06/2014)

Designation :

Director

Address :

300, Sector 16, Chandigarh-160016, India

Date of Birth/Age:

31.08.1963

Date of Appointment :

24.03.2011

Qualification :

PG in Physics and Public Policy International Economics

 

 

Name :

Mrs. Vijayalaksmi Rajaram Iyer

Designation :

Director

Address :

C 1, Goodwill, CHS Limited Opposite Jankalyan Sahkari Bank, J B Nagar, Andheri (East), Mumbai-400059, Maharashtra, India

Qualification :

M.Com, CAIIB

Date of Birth/Age:

01.06.1955

Date of Appointment :

22.01.2013

DIN No.:

05242960

Other Directorship:

1. Bank of India

2. Export Import Bank of India

3. BOI Shareholding Limited

 

 

Name :

Mr. S. Ganapathim Subramanian

Designation :

Director

Qualification :

Chartered Accountant

DIN No.:

02738182

Other Directorship:

1.The Karur Vysya Bank Limited

2. Price Patt and Company

 

 

Name :

Mr. Prakash Chand Bakliwal

Designation :

Director

Address :

Anaj Lane, Hatri Bazar Durg-491001, Chhattisgarh, India

Date of Birth/Age :

18.01.1950

Qualification :

B.Com, LLBB.

Date of Appointment :

24.03.2011

DIN No.:

03626250

Other Directorship:

1. SIDBI

 

 

Name :

Mr. Sanath Kumar Kochunni Nair

Designation :

Director

Address :

5C Harbour Point, Kurisupally Road Ravipuram, Ernakulam-682015, Kerala, India

Date of Birth/Age :

04.04.1958

Qualification :

BSC, LLB, Diploma in Insurance Law and Associate of FIII

Date of Appointment :

06.09.2012

DIN No.:

03444096

 

 

Name :

Mr. Salamat Ullah

Designation :

Director

Address :

A3, Hazrat Nizamuddin West, New Delhi-110013, Delhi, India

Date of Birth/Age :

20.05.1953

Qualification :

B.Com

Date of Appointment :

16.01.2013

DIN No.:

06475742

 

KEY EXECUTIVES

 

Name :

Mrs. Jayashree Anil Nair

Designation :

Secretary

Address :

Shiv Co-Operative HSG Society Limited, Flat No. 13 RDP-4, Sector - 7 Charkop, Kandivali (W), Mumbai-400067, Maharashtra, India

Date of Birth/Age :

14.08.1969

Date of Appointment :

25.10.2012

PAN No.:

ABLPN3552A

 

 

Name :

Mr. V. Hari Srinivas (from 01/04/2014)

Designation :

Financial Advisor

 

 

Name :

Lalit Kumar Vaid

Designation :

Chief Vigilance Officer

 

 

Name :

S.N. Rajeswari

Designation :

Chief Financial Officer

 

 

Name :

Mr. K.L.R. Babu

Designation :

General Manager

 

 

Name :

Mr. N. Tobdan *

Designation :

General Manager

 

 

Name :

Mr. P. Nayak

Designation :

General Manager

 

 

Name :

Mr. Segar Sampathkumar

Designation :

General Manager

 

 

Name :

Rafi Ahmed

Designation :

General Manager

 

 

Name :

Mr. Aswathanarayan*

Designation :

General Manager

 

 

Name :

Mr. Rafi Ahmed

Designation :

General Manager

 

 

Name :

Mr. Rajasekharan

Designation :

General Manager

 

 

Name :

Mr. Rakesh Kumar

Designation :

General Manager

 

 

Name :

Mr. Anil Kumar

Designation :

General Manager

 

 

Name :

Mr. K. Surya Rao *

Designation :

General Manager

 

 

Name :

Mr. V. Hari Srinivas

Designation :

General Manager

 

 

Name :

Mr. K. Surya Rao *

Designation :

General Manager

 

 

Name :

Mohd. Zafir Alam

Designation :

General Manager

 

 

Name :

Mr. C. Narambunathan

Designation :

Deputy General Manager

 

 

Name :

Mr. N. Toppo

Designation :

Deputy General Manager

 

 

Name :

Mr. Surjit Singh Hira

Designation :

Deputy General Manager

 

 

Name :

Mr. Girish Radhakrishnan*

Designation :

Deputy General Manager

 

 

Name :

Mr. A.P. Mittal*

Designation :

Deputy General Manager

 

 

Name :

Mr. Narinder Kumar

Designation :

Deputy General Manager

 

 

Name :

Mr. C.J. Philip

Designation :

Deputy General Manager

 

 

Name :

Mrs. Mita Bhattacharjee*

Designation :

Deputy General Manager

 

 

Name :

Mr. G.C. Sharma

Designation :

Deputy General Manager

 

 

Name :

Mr. A.N. Jha

Designation :

Deputy General Manager

 

 

Name :

Mr. K.V. Krishna

Designation :

Deputy General Manager

 

 

Name :

Mr. Dinesh Waghela

Designation :

Deputy General Manager

 

 

Name :

Mr. K.P. Dash

Designation :

Deputy General Manager

 

 

Name :

Mr. Renjit Gangadharan

Designation :

Deputy General Manager

 

 

Name :

Mr. S.L. Khosa

Designation :

Deputy General Manager

 

 

Name :

Mr. B. Rajamohan

Designation :

Deputy General Manager

 

 

Name :

Mr. S. Pradhan*

Designation :

Deputy General Manager

 

 

Name :

Ms. Sushmita Mukherjee

Designation :

Deputy General Manager

 

 

Name :

Mr. Tajinder Mukherjee

Designation :

Deputy General Manager

 

 

Name :

S.N. Rajeswari

Designation :

Deputy General Manager

 

 

Name :

K. Ravishankar

Designation :

Deputy General Manager

 

 

Name :

Mr. D.S. Sarma

Designation :

Deputy General Manager

 

 

Name :

Mr. S. Venkatachari

Designation :

Deputy General Manager

 

 

Name :

Mr. P.K. Sinha

Designation :

Deputy General Manager

 

 

Name :

Mr. J.K. Garg

Designation :

Deputy General Manager

 

 

Name :

Mr. V.R. Bhailume

Designation :

Deputy General Manager

 

 

Name :

Mr. R.M. Singh

Designation :

Deputy General Manager

 

 

Name :

Mr. J.S. Dahiya

Designation :

Deputy General Manager

 

 

Name :

Mr. G. Shobha Reddy

Designation :

Deputy General Manager

 

 

Name :

Mr. Athiappan Raman

Designation :

Deputy General Manager

 

 

Name :

Mr. Sanjiv Singh

Designation :

Deputy General Manager

 

 

Name :

Mr. I.V. Amaladoss

Designation :

Deputy General Manager

 

 

Name :

Mr. R.K. Purohit

Designation :

Deputy General Manager

 

 

Name :

Mr. BallaSwamy

Designation :

Deputy General Manager

 

 

Name :

Mr. G.K. Patil

Designation :

Deputy General Manager

 

 

Name :

Mr. S. Shankar

Designation :

Deputy General Manager

 

*On deputation to other companies / foreign offices

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 19.06.2014

 

Names of Shareholders

 

No. of Shares

Government of India

 

199999960

Gopalan Srinivasan

 

4

A R Sekar

 

4

Sadasiv Mishra

 

4

P Nayak

 

4

V Hari Srinivas

 

4

Sanathkumar Kochunni Nair

 

4

S Ramabhadran

 

4

Rafi Ahmed

 

4

Rakesh Kumar

 

4

S Segar

 

4

Total

 

200000000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 19.06.2014

 

Category

Percentage

Government [Central and State]

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject acts as an Insurance company.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Cash / Cheque

 

 

Purchasing :

Cash / Cheque

 

PRODUCTION STATUS NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Tata Consultancy Services 

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

Reference :

TVS

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Roche Product India Private Limited

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

Reference :

ONGC

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

20,000 (Approximately) 

 

 

Bankers :

Bank Name

Bank of India

Branch

Electric House, Orminston Road, Post Box No. 10135, Mumbai – 400001, Maharashtra, India

Person Name (With Designation)

Mr. Rajendra Bilani (Manager)

Contact Number

91-22-22831476

Name of Account Holder

The New India Assurance Company Limited

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

April 2003

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Very Good

Remarks (If any)

Banker gave us positive response about subject company they are satisfied with their banking transaction.

 

 

 

Banking Relations :

--

 

 

Auditors 1 :

 

Name :

S R Goyal and Company

Chartered Accountants

Address :

SRG House, 2, M. I. Road, Opposite Ganpati Plaza, Jaipur – 302001, Rajasthan, India

PAN N Income-tax PAN of auditor or auditor's firm :

AAMFS7620N

 

 

Auditors 2 :   

JCR and Company

Chartered Accountants

Address :

Level II, Raval House, 18th Road, Khar West, Mumbai-400052, Maharashtra, India

 

 

Auditors 3 :   

J. Singh and Associates

Chartered Accountants

Address :

505/506/507, Hubtown viva, Western Express Highway, Andheri (East), Mumbai-400060, Maharashtra, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiaries :

·         The New India Assurance Company (T & T) Limited – Port of Spain, Trinidad and Tobago

·         The New India Assurance Company (S.L.) Limited – Free Town, Sierra Leone

·         Prestige Assurance Plc. – Nigeria

 

 

Associates :

·          India International Insurance Private Limited, Singapore

·          KenIndia Assurance Company Limited, Kenya

·          United Insurance Company Limited, Jordan

·          Saudi Indian Company for Co Operative Insurance, Riyadh

 

 

 

 

Entities over which control exist :

·          The New India Assurance Company (Employees) Pension Fund

·          The New India Assurance Company Limited Employee Gratuity Fund

·          The New India Assurance Company Limited Staff Provident Fund

 

 

CAPITAL STRUCTURE

 

As on 19.06.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

300000000

Equity Shares

Rs.10/- each

Rs. 3000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200000000

Equity Shares

Rs.10/- each

Rs. 2000.000 Million

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2000.000

2000.000

2000.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

94934.231

83227.452

75312.971

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

96934.231

85227.452

77312.971

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

Fair Value Change Account

177783.311

157617.551

154451.957

 

 

 

 

TOTAL

274717.542

242845.003

231764.928

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1778.264

1528.633

1547.211

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

352973.373

311733.531

282032.202

DEFERREX TAX ASSETS

1615.644

1372.442

1323.298

 

 

 

 

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000
0.000

 

Sundry Debtors
0.000

0.000
0.000

 

Cash & Bank Balances

89650.037

74079.933
71421.744

 

Loans

4011.550

3857.036
4233.085

 

Advances and Other Current Assets

80079.682

61183.667
61069.897

Total Current Assets
173741.269
139120.636
136724.726

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors
0.000

0.000
0.000

 

Other Current Liabilities

178546.840

145076.589
134709.519

 

Provisions

77187.288

66519.890
56182.350

Total Current Liabilities
255734.128
211596.479
190891.869

Net Current Assets
(81992.859)
(72475.843)
(54167.143)

 

 

 

 

MISCELLANEOUS EXPENSES

343.120

686.240

1029.360

 

 

 

 

TOTAL

274717.542

242845.003

231764.928

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

 

 

 

1. Operating profit/loss

 

 

 

 

a. Fire Insurance

(1060.563)

640.881

(6718.263)

 

b. Marine Insurance

1881.889

1347.244

(188.907)

 

c. Miscellaneous Insurance

1052.936

(1735.712)

(888.645)

 

 

 

 

 

 

2. Income from Investments

 

 

 

 

a. Interest Dividend and Rent (Gross) - Share Holders

6895.234

6040.086

5701.916

 

b. Profit on Sale of Investment - Share Holders

3713.556

3265.922

2640.723

 

Less: Loss on sale of investment – Share Holders

0.000

0.000

0.000

 

3. Other Income Misc. Receipts - Credit Balances Written Back

193.112

137.171

10.110

 

Total (A)=1+2+3

12676.164

9695.592

556.934

 

 

 

 

 

 

4. Provisions(other than taxation)

 

 

 

 

a. Others - Amortisation Provision For Thinly Traded Shares - Shareholders

42.840

18.239

38.862

 

b. For Doubtful Debts - Investments(Shareholders)

9.246

(48.765)

(115.102)

 

c. For Doubtful Debts - Operations

(65.455)

(68.869)

(996.755)

 

d. For Dimunition In Value of Investments (Shareholders)

21.666

26.903

41.662

 

 

 

 

 

 

5. Other expenses (other than those related to insurance business)

 

 

 

 

a. Others - Interest on Income/Service Tax

(275.954)

(340.577)

30.389

 

b. (Profit)/Loss On Sale Of Assets

(0.353)

(4.067)

(5.375)

 

c. Penalty For Breach Of Tariff

0.000

0.500

1.600

 

Total (B)=(4+5)

(268.010)

(416.636)

(1004.719)

 

 

 

 

 

 

Profit Before Tax (A-B)

12944.174

10112.229

1561.653

 

 

 

 

 

 

Provision for taxation - Current tax

2283.986

1709.256

60.792

 

Deferred tax

(243.202)

(49.145)

(304.734)

 

Wealth tax

13.576

15.526

12.427

 

 

 

 

 

 

Profit After Tax

10889.814

8436.592

1793.168

 

 

 

 

 

 

Transfer from General Reserves for Equalization/Contingency Reserve for Foreign Branches

25.834

290.756

508.285

 

Transfer from Contingency Reserves for Unexpired Risk (created in 2009-10)

449.500

0.000

0.000

 

 

 

 

 

 

Appropriations

 

 

 

 

a. Proposed Final Dividend

(2200.000)

(1700.000)

(400.000)

 

b. Dividend Distribution Tax

(373.890)

(288.915)

(64.890)

 

c. Contingency Reserves for Unexpired Risks

(8765.424)

(6035.328)

(1328.278)

 

d. Transfer to General Reserves

(25.834)

(703.105)

(508.285)

 

 

 

 

 

 

Profit/loss (-) carried forward to the balance sheet

0.000

0.000

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

54.45

42.18

8.97

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

Net Cash Flow from Operating Activities After Tax

8091.449

2804.842

5974.470

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

85.91

87.01

321.97

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.45

2.24

0.37

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.05

0.04

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.04

2.11

2.17

 

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

2000.000

2000.000

2000.000

Reserves & Surplus

75312.971

83227.452

94934.231

Net worth

77312.971

85227.452

96934.231

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.000

0.000

Debt/Equity ratio

0.000

0.000

0.000

 

 

 

YEAR-ON-YEAR GROWTH

 

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Total Income

556.934

9695.592

12676.164

 

 

1,640.887

30.742

 

 

 

NET PROFIT MARGIN

 

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Total Income

556.934

9695.592

12676.164

Profit

1793.169

8436.592

10889.814

 

321.97%

87.01%

85.91%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of establishment

Yes

2]

Constitution of the entity -Incorporation details

Yes

3]

Locality of the entity

Yes

4]

Premises details

No

5]

Buyer visit details

--

6]

Contact numbers

Yes

7]

Name of the person contacted

Yes

8]

Designation of contact person

Yes

9]

Promoter’s background

Yes

10]

Date of Birth of Proprietor / Partners / Directors

Yes

11]

Pan Card No. of Proprietor / Partners

No

12]

Voter Id Card No. of Proprietor / Partners

No

13]

Type of business

Yes

14]

Line of Business

Yes

15]

Export/import details (if applicable)

No

16]

No. of employees

Yes

17]

Details of sister concerns

Yes

18]

Major suppliers

Yes

19]

Major customers

Yes

20]

Banking Details

Yes

21]

Banking facility details

No

22]

Conduct of the banking account

--

23]

Financials, if provided

Yes

24]

Capital in the business

Yes

25]

Last accounts filed at ROC, if applicable

Yes

26]

Turnover of firm for last three years

Yes

27]

Reasons for variation <> 20%

--

28]

Estimation for coming financial year

No

29]

Profitability for last three years

Yes

30]

Major shareholders, if available

Yes

31]

External Agency Rating, if available

Yes

32]

Litigations that the firm/promoter involved in

--

33]

Market information

--

34]

Payments terms

Yes

35]

Negative Reporting by Auditors in the Annual Report

No

 

 

PERFORMANCE REVIEW (GLOBAL)

 

A

Particular

 

 (2013-14)

(Rs. In Million)

 (2012-13)

(Rs. In Million)

 

Gross Direct Premium (India)

115400.600

100379.600

 

% change over previous year

149.600

175.000

 

Gross Premium (Foreign)

27637.900

24666.300

 

% change over previous year

120.400

176.000

 

Gross Global Premium

143038.500

125045.800

 

Gross Direct Premium (GDP) in India has increased from Rs. 100379.600 Million in 2012-13 to Rs. 115400.600 Million in 2013-14 recording a good growth of 14.96% in 2013-14. The company continues to be the market leader in India and is scaling new heights. Both Indian and foreign offices have performed very well during the year. Good growth has been achieved by all the regions. Motor, Fire and Health segments have recorded substantial growth apart from growth in other segments too. The company crossed Rs. 110000.000 Million in Indian market itself in 2013-14.

 

B

Net Premium

120786.100

102741.700

 

% change over previous year

175.600

171.400

 

 

 

 

 

The net premium income of the company grew by Rs. 18044.400 Million from Rs. 102741.700 Million to Rs. 120786.100 Million. The retention ratio of the company almost remains the same.

 

C

Additional Un-expired Risk Reserves

8465.5

748.69

 

% change over previous year

0.100

72.900

 

 

 

 

D

Incurred Claims (Net)

93809.500

81430.700

 

Percentage to earned premium

835.200

854.900

 

 

 

 

 

Global net incurred claims has shown an increase of Rs. 12378.800 Million. Incurred loss ratio on earned premium for 2013-14 is 83.52% compared to 85.49% of 2012-13 recording a significant reduction during current year.

 

 

 

 

 

E

Commission (Net)

11726.100

8431.700

 

Percentage to earned premium

104.400

88.500

 

Operating Expenses

26303.600

23740.900

 

Percentage to earned premium

234.200

249.200

 

 

 

 

 

During the year, the company’s operating expenses ratio to net earned premium has come down to 25.12% against 26.23% of 2011-12

 

 

 

 

 

F

Underwriting Results

(19518.600)

(18348.500)

 

Percentage to earned premium

(173.800)

(192.600)

 

 

 

 

 

I Investment Income (Less Provision)

 

 

 

Apportioned to policyholders

21392.700

18600.900

 

Apportioned to Shareholders

10535.00

9309.600

 

Total

927.700

27910.500

 

 

 

 

G

Revenue (Policyholders) Account Results

1874.100

252.400

 

Percentage to earned premium

 

 

 

The company has made an operating profit of Rs. 1870.000 Million during the year as against an operating loss of Rs. 252.400 Million in the previous year

 

H

Other Income/Outgo

534.900

550.200

 

Profit Before Tax (PBT)

12944.000

10112.200

 

Profit After Tax (PAT)

10889.600

8436.600

 

Proposed Final Dividend

2200.000

1700.000

 

Dividend Tax

373.900

288.900

 

Paid-up Capital

2000.00

2000.000

 

Reserves and Surplus

94934.200

83227.500

 

Total Assets

530108.600

453755.200

 

Investments (at cost)

210110.000

178820.000

Q

Solvency Margin

 

 

 

Required sovency margin under IRDA regulations (Global)

28220.200

23495.600

 

Available solvency margin (Global)

73558.200

58660.200

 

Required solvency margin under IRDA regulations (Indian)

26160.000

19693.300

 

Available solvency margin (Indian)

93100.000

65957.700

The company’s Global solvency ratio is 2.61 times (PY 2.50 times) and Indian solvency ratio is 3.56 times (PY.3.35 times)

 

 

 

 

U

Compliance with Section 40C

 

 

 

Expenses prescribed under the act (excluding commission)

22724.900

19741.800

 

Actual expenses (excluding commission)

23666.700

21372.400

 

Difference

941.800

1630.600

 

 

PREVAILING ECONOMIC CONDITIONS VIS-À-VIS PERFORMANCE OF GENERAL INSURANCE INDUSTRY

 

In 2013-14, the country’s growth was not as robust as that of the previous years and there has been a visible slowing down due to various domestic and global factors. The final growth rate for the year 2013-14 is expected to be below 5 % as indicated in Q3 and Q4 of the fiscal. The industrial growth slipped into the negative zone once again with output contracting by 1.9 per cent in February 2014 compared to year-ago level. Production fell in spite of the mining and the electricity sector performing well. A major reason for the industrial fall was the manufacturing sector, which suffered a 3.7 per cent year-on-year fall in output.

 

The road infrastructure services sector witnessed announcement of 83 new projects worth Rs. 117 billion during the year ended 2013-14, recording a steep decline from 129 projects worth Rs. 322 billion proposed in 2012-13.

 

However stalling of projects during the quarter ended March 2014 at Rs. 1 trillion dropped by 38 per cent over its year ago level. It was also significantly lower than the quantum of projects scrapped in the preceding two quarters ending September 2013 and December 2013.

 

Automobile Industry also was impacted in 2013-14. Passenger vehicles (including cars, utility vehicles and vans) grew almost 6 % lower than previous year. While passenger cars suffered a drop of 4.65 %, it was 5.01% for utility vehicles segment. Sales of trucks and buses declined about a fifth in the year due to a weak economy and high interest rates. Almost 43 % of the premium for general insurance industry comes from Motor Insurance creating cascading effect.

 

The general insurance business grew at 18.86 % in 2012-13. In the current fiscal, the growth rate, which started with 22.01 % in April 2013, started going down and ending up with 13 % for the year. The reduction in the growth is clearly linked to the slowness, seen in the economy as a whole and especially in automobile and other manufacturing sectors.  The Industry completed Rs. 728530.000 Million (without specialized insurers – ECGC and AIC) and public sector companies mopped up a share of 53 %, which was lower than 54.14 %. One new general insurance company, started functioning in 2013-14, in the stand alone health insurance segment.

 

The health insurance segment grew at 14.84 %, constituting 23 % of the total premium, while motor insurance which accounts for 43 % of the business grew at 13.75 %. These two segments continued to be the major drivers of the Industry.

 

New India Assurance Company, could buck the trend of slowing growth and grew at 15 %, above the market and increased its market share.

 

 

OVERVIEW OF COMPANY’S OPERATIONS

 

INDIAN OPERATIONS:

 

Gross direct premium in India has increased from Rs. 100379.500 Million in 2012-13 to Rs. 115400.600 Million in 2013-14 recording a growth of 14.96% during 2013-14. The growth is observed in all geographical segments as well as all classes of business.

 

 

INDIAN OPERATIONAL RESULTS

 

Sr.

No

PARTICULARS

2013-14

(Rs. In Million)

 

 

Amount

%

 

Gross premium

115400.600

14.96

 

Net premium

98660.100

18.39

 

Increase in unexpired risk reserve

7038.800

--

 

Net earned premium

91621.300

--

 

Commission

5806.900

6.37

 

Incurred claims

80592.300

87.96

 

Management expenses

24765.000

27.03

 

U/W (loss)

(19542.900)

(21.33)

 

Other income (net of outgo)

439.200

0.48

 

Investment income

30667.000

33.47

 

Profit before tax (PBT)

11563.300

12.62

 

 

FOREIGN OPERATIONS:

 

Armed with the reiteration of the AM Best A- Excellent (Stable outlook) from AM Best, the premier global Insurance rating agency, New India’s foreign operations continued its growth story and generated profits. The Company has equity holdings, of various levels, at Asia Reinsurance Corporation, Bangkok, United Insurance Co, Jordan, Oriental Capital Assurance, Malaysia, Ken India Insurance co, Nairobi, India International Insurance, Singapore, Prestige Assurance Limited, Lagos, Nigeria, Wafa Insurance (Forency SICCI), Riyadh, New India Assurance Co Limited, Sierra Leone and New India Assurance (Trinidad and Tobaggo).

 

The Company had received regulatory approvals for its entry into Qatar, Myanmar and Canada. In Oman, New India Assurance, was selected as the best non-life insurance company in 2013, by World Finance, Insurance   awards. We have a desk at Lloyds, the citadel of global Insurance, for about 10 years now, manned by senior underwriters. Our operations in London date back to 1920.

 

The Gross Underwritten premium from all direct foreign operations, other than subsidiaries and associates, grew by 12.04% to Rupee equivalent of Rs. 27637.900 Million in 2013-14 from Rs. 24666.300 Million in previous fiscal.

 

The Company’s foreign operations have commenced decades back and today it operates in 22 countries through subsidiaries, agency operations and direct branches. The Operations could also down the ICR from 95.20 % to 60.40 %. Company is looking at the markets of Myanmar, Qatar and Canada for entry. New India intends to significantly increase the extent and spread of its foreign operations in future

 

 

OVERSEAS OPERATIONAL RESULTS

 

Sr.

No

PARTICULARS

2013-14

(Rs. In Million)

 

 

Amount

%

 

Gross premium

27637.900

12.04

 

Net premium

22126.100

14.01

 

Increase in unexpired risk reserve

1426.700

--

 

Net earned premium

20699.400

--

 

Commission

13217.200

63.85

 

Incurred claims

5919.300

26.80

 

Management expenses

1538.600

7.43

 

U/W (loss)

24.300

0.12

 

Other income (net of outgo)

95.700

0.46

 

Investment income

1260.800

5.70

 

Profit before tax (PBT)

1310.800

5.90

 

 

ORGANISATION STRUCTURE

 

The Company has entered a phase of consolidation and restructuring of offices and have 64 specialized offices to take care of bancassurance, brokers and auto tie-ups.

 

To have deeper penetration in the unexplored rural areas the company has opened 486 Micro Offices in this financial year, totaling to 1041 Micro Offices opened by the Company upto 31st March 2014.

 

As on 31.03.2014, the company has a network of 28 Regional Offices, 4 Large Corporate Offices, 412 Divisional Offices, 583 Branch Offices, 27 Direct Agents Branches and 1041 Micro Offices, totaling 2097.

 

The company operates in 22 countries.

 

 

REINSURANCE

 

The International Reinsurance market in 2013-14 was relatively stable in absence of any major catastrophe events. On the domestic side, except Uttarakhand Floods, there was no other major catastrophic event. New India was least effected due to Uttarakhand Floods. Further the losses are recoverable from our proportional and Non-proportional treaties. No major Risk losses were reported during 2013-14. The Reinsurance capacity was adequate and no significant change was observed in pricing of Reinsurance renewals.

 

The renewal of all treaties was completed as per schedule. This year several reinsurers’ evinced keen interest in re-entering the Indian market in anticipation of improved economic and Insurance Industry. The company has underwritten and completed the placement of Reinsurance of the prestigious Satellites, GSAT 7 and Insat 3D.

 

We have continued our Inward Reinsurance acceptances on Treaty and Facilitative basis selectively and this portfolio is growing steadily.

 

Overall, the year saw reinsurance capacities maintained with adequate capital from well rated markets, from all over the world.

 

 

AWARDS AND ACCOLADES

 

New India has been showered with awards and recognitions in the year 2013-14, as many organizations and selection forums recognized the best in class performance of the company.

  • Indian Insurance Award for Technology Innovation
  • IPE BFSI Award for Underwriting Initiative of the Year
  • IPE BFSI Award for Best Insurance Company in Public Sector
  • IPE BFSI Award for Claims Initiative of the year
  • CMO Asia Star Award for Premium Online Payment Brand
  • IBN Lokmat and Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) for Exemplary
  • Achievement in Financial Services- General Insurance (Large Enterprise) and for Noteworthy
  • Contribution to the State of Maharashtra
  • 33rd SKOCH Consultancy Award for Digital Inclusion Technology
  • Golden Peacock Award 2013 for Excellence in Corporate Governance
  • ABP News Brand Excellence Award in Insurance Sector (supported by World Brand Congress)
  • Hyundai Vendor Convention Award 2014 for outstanding Performance
  • ABP BFSI Award for Best General Insurer of the year
  • ABP BFSI Award for Best Underwriting Initiative of the Year

Overall Outstanding performance in General Insurance (PSU) for 2013 from Dalal Street Investment

Journal.

 

These rich recognitions has increased company’s determination to excel in its operations and customer service.

 

 

PLANS FOR 2014-15

 

Domestic:

 

The core theme of New India’s business strategy is ‘Leadership and Beyond’. The company has drawn an action plan for the financial year 2014-15 to improve its performance in all parameters. New India is strong in retaining its large corporate customers by following sound underwriting practices and strong technical support built over a period of time. Customer service is the top most priority of the company in underwriting the Business, prompt issuance of policies and settlement of claims through various claims hubs. The company has planned to tap the vast retail business available by bringing out new products, effectively utilising all business channels.

 

Company’s core strength remains the Brand Image built over many years. Added to this the company has a strong network of offices, dedicated manpower, in addition to huge underwriting capacity. Company plans to make use of this capacity to spread its wings and with the support of its business partners, will retain the undisputed leadership status for years to come. With the active support of stabilised CWISS, Company plans to leverage the software to establish good support systems to its business partners by providing web portals to intermediaries like Brokers, Bancassurance, corporate and individual agents. In the changing scenario, company will also utilize web aggregators to host its products with competitive premium rates and reach to the present day web savvy customers.

 

Under financial inclusion project of Government of India, company has planned to open Micro Offices to cater to the citizens, who are living in Tier III and Tier IV Cities and canvass more personal lines of insurance policies. Company is also in the process of converting Banking Business correspondents as their Micro agents and canvass its 16 Micro products.

 

Foreign:

 

Company plans to achieve Rs.31000.000 Million gross premium for 2014-15.

 

Company is looking at the markets of Myanmar, Qatar and Canada for entry. New India intends to significantly increase the extent and spread of its foreign operations in coming years.

 

 

COMPANY OVERVIEW

 

Subject is a 100 % Government owned multinational general insurance company operating in 27 countries and headquartered at Mumbai, India. Our global business crossed Rs.160000.000 Million. Founded by Sir Dorabji Tata in 1919, they have been market leaders in India in non-life business for more than 40 years. Our Indian business touched Rs 132090.000 Million in 2014-15. They are the only direct insurer in India rated A-(Excellent – Stable outlook) by AM Best. "CRISIL has reaffirmed its ' AAA/STABLE ' rating on the New India Assurance Company Limited indicating that the company has the highest degree of financial strength to honor its Policyholders obligations"

 

INDIAN OPERATIONS

 

They have been leading the market, apart from premium, in reserves and net worth for many years. In 2014-15, they also have recorded the highest profit in India among all general insurers. Our Indian operations, today span across all territories through 2097 offices, including more than 1041 micro offices. They have 19,000 employees and around 50,000 tied agents providing insurance services to our customers. They have over 170 products catering to almost all segments of general insurance business. They have provided cover to Petrochemical, oil and energy industries, power and steel plants, aviation fleets, satellites, large projects and infrastructures, SMEs and are present in all forms of commercial sector. Our retail business is offered through commercial and personal lines of business and they also have range of products in rural, social sector and micro insurance segments. They operate through many B2B avenues including banc assurance, motor vehicle manufacturers and dealers, MFI and NGOs, Common Service Centers and through affinity programmes with corporates and brokers. They also have significant participation in government run mass insurance schemes.

 

New India Assurance is on a robust core insurance platform, with a central data base and have an integrated grievance management system synchronized with that of the regulator. Our Customer Care department is positioned at all Regional offices. They offer multiple options for the customers to renew the policies and have put in place SMS and E Mail alerts and information at various trigger points. Our Indian operations have earned many awards and recognitions in 2014-15.

 

FOREIGN OPERATIONS

 

The Company’s foreign operations have commenced decades back and today it operates in 27 countries through subsidiaries, agency operations, direct branches and associate companies. In addition, New India has also equity participation in Insurance companies in Singapore, Kenya, Saudi Arabia and Jordan. London Branch has been in operations for past 95 years and has a desk at Lloyds and operations in many countries like Japan, Mauritius etc. are more than 50 years old. They have a subsidiary company in Trinidad and Tobago, New India Assurance Co Limited, Port of Spain and another in Nigeria, Prestige Assurance Plc, based out of Lagos. They have equity participation in Kenindia Assurance Company Limited, Nairobi, WAFA Insurance (SICCI) in Saudi Arabia, India International Insurance Pte. Limited in Singapore and Asian Reinsurance Corporation, Bangkok.

 

OTHER PROMOTED COMPANIES

 

They are the co promoters of Agriculture Insurance Company of India and GIC Housing Finance Limited. They are also in the process of setting up a common TPA in the Health insurance support services segment jointly, with other Government owned insurers.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10566257

09/04/2015

2,819,091,600.00

Pembroke Aircraft Leasing 4 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C52099587

2

10563017

23/03/2015

3,114,395,000.00

CALC 10 - Aircraft Limited

6th Floor, Pinnacle 2, Eastpoint Business Park, Clontarf, Dublin, - 3, IRELAND

C50726926

3

10560037

26/02/2015

1,300,729,500.00

AVAP Leasing (Asia) Limited

2nd Floor, Beaux Lane House, Mercer Street Lower, 
Dublin, - 2, IRELAND

C49452592

4

10560848

26/02/2015

1,300,729,500.00

AVAP Leasing (Asia) Limited

2nd Floor, Beaux Lane House, Mercer Street Lower, 
Dublin, - 2, IRELAND

C49788284

5

10561783

05/02/2015

2,588,670,700.00

Pembroke Aircraft Leasing 2 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C50217868

6

10550853

29/01/2015

2,764,655,200.00

Pembroke Aircraft Leasing 4 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C44464428

7

10554046

22/01/2015

2,764,655,200.00

Pembroke Aircraft Leasing 4 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C46133005

8

10549631

29/12/2014

2,664,021,805.00

Pembroke Aircraft Leasing 3 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C43856756

9

10549401

23/12/2014

2,659,061,800.00

Pembroke Aircraft Leasing 4 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C43761162

10

10549645

28/11/2014

2,709,710,270.00

Pembroke Aircraft Leasing 2 Limited

33/41 Lower Mount Street, Dublin, - 2, IRELAND

C43860493

 

 

 

FIXED ASSETS

 

  • Land Freehold
  • Leasehold Property
  • Buildings #
  • Furnitures and Fittings
  • Vehicles
  • Office Equipments
  • Information and Technology Equipments

 

 

CMT REPORT (Corruption, Money Laundering and 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.63.53

UK Pound

1

Rs.99.19

Euro

1

Rs.69.60

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

JYTK

 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

10

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

10

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILITY

1~10

10

--LIQUIDITY

1~10

10

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

86

 

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 and 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.