Balance Sheet
st
as at 31 March 2012
Financial Year
2011-12
भारतीय नयात ऋण गारं ट
नगम ल मटे ड
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
FORM B - BS
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD
Date of Registration : 27th September,2002
Registration No. 124
BALANCE SHEET AS AT 31ST MARCH 2012
Schedule
I. SOURCES OF FUNDS
Share Capital
Reserves and Surplus
Fair Value Change Account
Borrowings
Deferred Tax Liability
Total
Current Year
(` '000)
5
6
900,00,00.00
1245,15,87.81
22,58,74.93
2167,74,62.74
900,00,00.00
1082,70,90.47
79,51,37.30
2062,22,27.77
8
9
10
3390,43,21.13
147,04,60.75
20,36,43.90
3163,56,15.53
143,19,46.72
4,04,79.65
11
12
902,44,67.50
504,85,39.32
1407,30,06.82
876,86,18.37
443,82,93.84
1320,69,12.21
13
14
2287,81,46.87
509,58,22.99
2797,39,69.86
2087,67,28.24
481,59,98.10
2569,27,26.34
(1390,09,63.04)
-
(1248,58,14.13)
-
7
II. APPLICATION OF FUNDS
Investments
Loans
Fixed Assets
Deferred Tax Assets
Current Assets
Cash and Bank Balances
Advances and Other Assets
Sub Total (A)
Current Liabilities
Provisions
Sub Total (B)
Net Current Assets ( C )= (A-B)
Fair Value Change Account
p
Miscellaneous Expenditure
(to the extent not written off or adjusted)
Debit Balance in Profit & Loss Account
Previous Year
(` '000)
15
-
TOTAL
-
2167,74,62.74
-
SIGNIFICANT ACCOUNTING POLICIES
NOTES FORMING PART OF ACCOUNTS
2062,22,27.77
16
17
(N SHANKAR)
Chairman cum Managing Director
(ARVIND MEHTA)
Director
( V S DAS )
Director
( T C A RANGANATHAN )
Director
(K R KAMATH)
Director
(NEERAJ K VERMA)
Company Secretary
As per our report of even date
For M. B. AGRAWAL & CO.
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
Place : New Delhi
Dated : 21st May 2012
For P. M. DALVI & CO.
Chartered Accountants
(MADHAV NANDGAONKAR)
Partner
FORM B-RA
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD
Registration No. 124
Date of Registration : 27th September,2002
REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2012
Particulars
Schedule
1
Premiums earned (Net)
2
3
4
Current Year
(` '000)
1
Previous Year
(` '000)
766,25,24.95
674,86,24.50
Profit/Loss on Sale/redemption of Investment
1,45,55.95
3,46,23.05
Others
- Fee
- Interest on Claims & Premium
- Exchange Fluctuation Profit (net)
- Miscellaneous Income
87,20.28
1,09,02.62
3,03,78.94
72,20.50
3,44,42.19
1,84,28.08
Interest & Dividend - Gross
189,48,63.48
136,62,49.78
TOTAL (A)
962,19,46.22
820,95,88.10
1
Claims Incurred (Net)
2
679,61,20.58
757,43,86.82
2
Commission
3
(57,92,01.69)
(9,53,21.04)
3
Operating Expenses related to Insurance Business
4
126,69,46.07
151,47,54.17
4
Other - Premium Deficiency
46,86,08.56
(48,19,80.95)
TOTAL (B)
795,24,73.52
851,18,39.00
Operating Profit/(Loss) from Miscellaneous
Business Transfer to Profit & Loss A/c (A-B)
166,94,72.70
(30,22,50.90)
Significant Accounting Policies and Notes to Accounts form integral part of the Revenue Account
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information and explanations
given to us, and as far as it appears from our examination of Company's books of account, all expenses of management, wherever incurred, whether directly
or indirectly in respect of the Export Credit Insurance Business have been fully debited to the Revenue Account as expenses.
(N SHANKAR)
Chairman cum Managing Director
(ARVIND MEHTA)
Director
(K R KAMATH)
Director
( V S DAS )
Director
( T C A RANGANATHAN )
Director
`
(NEERAJ K VERMA)
Company Secretary
As per our report of even date
For M. B. AGRAWAL & CO.
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
Place : New Delhi
Dated : 21st May 2012
For P. M. DALVI & CO.
Chartered Accountants
(MADHAV NANDGAONKAR)
Partner
FORM B-PL
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD
Registration No. 124
Date of Registration : 27th September,2002
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH,2012
Particulars
1
2
3
5
Current Year
(` '000)
Previous Year
(` '000)
OPERATING PROFIT/(LOSS)
(a) Fire Insurance
(b) Marine Insurance
(c) Miscellaneous Insurance
166,94,72.70
(30,22,50.90)
INCOME FROM INVESTMENTS
(a) Interest & Dividends-Gross
(b) Profit on Sale of Investments
Less: Loss on Sale of Investments
161,41,42.96
1,23,99.51
-
136,62,49.78
3,46,23.05
-
47,89.78
5,50.64
77,67.51
59.59
9,97.02
4,63.89
10,52,40.89
330,91,23.10
120,53,83.32
OTHER INCOME
(a) Factoring Income
(b) NEIA Income
(c) Rent & Other receipts
(d) Miscellaneous Income
TOTAL (A)
4
Schedule
PROVISIONS (Other than Taxation)
(a) For diminution in the value of investments
(b) Provision for Factoring
- Standard Asset
- Sub Standard Asset
- Doubtful Asset
(c) Provision for Doubtful Debts
-
-
-
6,00.00
OTHER EXPENSES
(a) Expenses other than those related to Insurance Business
- Expenses towards Investments
- Expenses towards Corporate Social Responsibility
(b) Others - Factoring expenses
83,34.22
2,35,50.00
-
84,71.41
2,00,00.00
48.47
TOTAL (B)
3,18,84.22
2,91,19.88
Profit Before Tax ( A - B)
327,72,38.88
117,62,63.44
Less:
(a) Provision for Taxation
- Deferred Tax
- Current Tax
- MAT Credit Entitlement
(16,31,64.25)
105,66,00.00
12,54,00.00
16,58,38.14
31,85,00.00
(12,54,00.00)
63,04.29
-
(1,74,29.79)
(2,18,90.61)
225,20,98.84
85,66,45.70
(b) Prior Period Adjustments
(c) Tax Adjustments - Earlier years
Profit available for appropriation
Particulars
Schedule
APPROPRIATIONS
(a) Interim Dividends paid during the year
(b) Dividend distribution tax on Interim Dividend
(c) Proposed final Dividend
(d) Dividend distribution tax on Proposed Dividend
(e) Transfer to General Reserve
Balance of profit/loss brought forward from last year
Balance carried forward to Balance Sheet
Current Year
(` '000)
Previous Year
(` '000)
27,00,00.00
4,38,00.75
27,00,00.00
4,38,00.75
162,45,00.00
1,03.32
1,00.66
26,10,00.00
4,23,40.73
55,34,00.00
1,98.35
1,03.32
313,800.75
- sd(N SHANKAR)
Chairman cum Managing Director
- sd (ARVIND MEHTA)
Director
(K R KAMATH)
Director
- sd( V S DAS )
Director
( T C A RANGANATHAN )
Director
`
(NEERAJ K VERMA)
Company Secretary
As per our report of even date
For M. B. AGRAWAL & CO.
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
Place : New Delhi
Dated : 21st May 2012
For P. M. DALVI & CO.
Chartered Accountants
(MADHAV NANDGAONKAR)
Partner
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE -1
PREMIUM EARNED (NET)
Current Year
(` '000)
Particulars
Premium from Direct Business Written
Add : Premium on Reinsurance Accepted
Less: Premium on Reinsurance Ceded
Net Premium
Adjustment for change in Reserve for Unexpired Risks
Total Premium Earned (Net)
Previous Year
(` '000)
1004,83,31.67
243,27,32.73
885,46,69.25
114,52,18.29
761,55,98.94
770,94,50.96
4,69,26.01
(96,08,26.46)
766,25,24.95
674,86,24.50
SCHEDULE -2
CLAIMS INCURRED (NET)
Current Year
(` '000)
Particulars
Claims Paid
Direct
Add : Reinsurance accepted
Less : Reinsurance ceded
Less :
Recovered during the year
Less : Share of reinsurer
Previous Year
(` '000)
713,03,22.70
125,90,93.74
620,52,71.60
160,23,79.61
137,74,97.50
449,37,31.46
136,06,65.06
11,45,77.48
124,60,87.58
335,68,04.41
Add : Claims Outstanding at the end of the year (net of reinsurance)
Minus provision for recovery (net of reinsurance)
(B)
2082,33,96.36
17,86,98.32
2064,46,98.04
1860,17,37.72
25,94,28.80
1834,23,08.92
Less : Claims Outstanding at the beginning (net of reinsurance)
Minus Provision for recovery (net of reinsurance)
(C)
1860,17,37.72
25,94,28.80
1834,23,08.92
1431,75,68.64
19,28,42.13
1412,47,26.51
679,61,20.58
757,43,86.82
Net Claims paid ( A )
Total Claims Incurred ( A + B - C)
168,63,27.28
30,88,29.78
SCHEDULE -3
COMMISSION
Current Year
(` '000)
Particulars
Commission Paid
Direct
Add : Reinsurance Accepted
Less: Commission on Re-insurance Ceded
Net Commission
Previous Year
(` '000)
2,67,28.30
60,59,29.99
4,07,03.59
13,60,24.63
(57,92,01.69)
(9,53,21.04)
SCHEDULE -4
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
Current Year
(` '000)
Particulars
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Employees' Remuneration and Welfare benefits
Travel, Conveyance and Vehicle running expenses
Training expenses
Rent, Rates & Taxes
Repairs
Printing & Stationery
Communication expenses
Legal & Professional charges
Auditors' fees , expenses etc- Statutory Audit Fee
- Tax Audit Fee
- Others
Advertisement and Publicity
Interest and Bank Charges
Concurrent Audit Fee
Consultancy Charges
Electricity Charges
Insurance Premium
Loss on Sale of Asset (net ) & Asset written off
Status Enquiry Expenses
Less: Status Enquiry Fees
Exchange Fluctuation Loss (net)
Berne Union Expenses
Membership and other fees
Operating expenses towards Investments
Wealth Tax
Business Promotion Expenses
Miscellaneous Expenses
Depreciation
Impairment Loss of Fixed Assets
TOTAL
70,71,54.32
6,42,52.68
94,20.94
7,36,13.97
8,55,18.40
1,48,36.82
1,56,41.99
79,83.37
38,87.81
8,56.49
13,09.70
4,52,69.74
8,74.68
25,38.21
40,47.85
2,16,37.02
37,47.11
5,47.37
6,39,23.94
1,54,91.62
4,84,32.32
3,71.44
1,57,83.36
97,83.65
89,63.25
1,34,87.64
3,81,65.70
6,88,20.24
126,69,46.07
Previous Year
(` '000)
99,52,95.93
6,06,38.86
79,62.88
7,60,68.04
7,79,19.16
1,39,93.18
1,48,58.40
78,92.31
34,06.62
7,42.25
22,36.48
5,08,74.49
7,60.05
25,55.17
49,86.23
2,09,92.73
34,10.48
19,93.40
5,95,04.51
1,66,22.01
4,28,82.50
12.35
1,83.06
1,56,58.79
84,71.41
89,53.24
1,61,70.88
3,09,95.46
4,48,39.82
151,47,54.17
SCHEDULE -5
SHARE CAPITAL
Current Year
(` '000)
Particulars
1
2
Authorised Capital
100,000,000 Equity Shares of Rs. 100 each
(Previous Year 100,000,000 Equity Shares of Rs. 100 each)
Issued Capital
90,000,000 Equity Shares of Rs 100 each
(Previous Year 90,000,000 Equity Shares of Rs 100 each)
Previous Year
(` '000)
1000,00,00.00
1000,00,00.00
900,00,00.00
900,00,00.00
3
Subscribed Capital
90,000,000 Equity Shares of Rs 100 each
(Previous Year 90,000,000 Equity Shares of Rs 100 each)
900,00,00.00
900,00,00.00
4
Called up & Paid up Capital
90,000,000 Equity Shares of Rs 100 each
(Previous Year 90,000,000 Equity Shares of Rs 100 each)
900,00,00.00
900,00,00.00
Add : Equity Shares forfeited (Amount originally paid up)
Less : Par Value of Equity Shares bought back
Less : Preliminary Expenses
Expenses including commission or brokerage
on Underwriting or subscription of shares
-
TOTAL
900,00,00.00
900,00,00.00
SCHEDULE -5 A
PATTERN OF SHAREHOLDING
(As Certified by the Management)
Shareholder
Promoters
Indian
President of India & His Nominees
Foreign
Others
Total
Current Year
No. of Shares
% of holding
90,00,00,00
90,00,00,00
1,00.00
1,00.00
Previous Year
No. of Shares
% of holding
90,00,00,00
90,00,00,00
1,00.00
1,00.00
FORM NL-10-RESERVE AND SURPLUS SCHEDULE
SCHEDULE -6
RESERVES AND SURPLUS
Particulars
1
2
3
4
Capital Reserve
Capital Redemption Reserve
Share Premium
General Reserve - Opening Balance
Additions during year
Current Year
(` '000)
Previous Year
(` '000)
1082,69,87.15
162,45,00.00
1027,35,87.15
55,34,00.00
1245,14,87.15
1082,69,87.15
1245,14,87.15
1082,69,87.15
1,00.66
1,03.32
1245,15,87.81
1082,70,90.47
Deduction during year
5
6
7
Catastrophe Reserve
Other Reserves (to be specified)
Balance in Profit & Loss Account
TOTAL
SCHEDULE -7
BORROWINGS
Particulars
1
2
3
4
Current Year
(` '000)
Previous Year
(` '000)
Debentures/Bonds
Banks (unsecured - repayable in less than 12 months)
Financial Institutions
Others
-
-
TOTAL
-
-
SCHEDULE -8
INVESTMENTS
Current Year
(` '000)
Particulars
1
2
3
4
5
1
2
3
4
5
LONG TERM INVESTMENTS
Government securities and Government guaranted bonds including
Treasury Bills
Central Government Securities
State Government Securities
Previous Year
(` '000)
905,33,32.79
516,83,78.95
828,25,83.18
513,03,81.79
Other approved Securities
Approved Investments
a. Shares
aa. Equity
bb. Preference Shares
b. Mutual Funds
c. Derivative Instruments
d. Debentures/Bonds
I . Investment in housing sector Bonds
II . Market sector Bonds
e. Other Securities (to be specified)
f. Subsidiaries
g. Investment Properties-Real Estate
100,19,11.56
100,21,09.29
454,72,11.75
357,82,03.01
343,31,30.08
-
483,20,38.60
297,09,15.48
268,13,69.93
-
Investments in Infrastructure and Social Sector
Other Investments
529,07,07.63
24,13,16.43
548,95,71.88
4,66,43.17
Total
(A)
SHORT TERM INVESTMENTS
Government securities and Government guaranted bonds including
Treasury Bills
Central Government Securities
State Government Securities
Other Approved Securities
Approved Investments
a. Shares
aa. Equity
bb. Preference
b. Mutual Funds
c. Derivative Instruments
d. Debentures/Bonds
I . Investment in housing sector Bonds
II . Market sector Bonds
e. Other Securities
f. Subsidiaries
g. Investment Properties-Real Estate
Investments in Infrastructure and Social Sector
Other Investments
Total
(B)
3231,41,92.20
3043,56,13.32
39,26,16.48
5,00,00.00
59,74,90.00
50,00,00.00
159,01,28.93
10,00,00.74
15,00,00.73
45,00,00.74
50,00,00.00
120,00,02.21
TOTAL
3390,43,21.13
3163,56,15.53
( A + B)
5,00,22.45
-
-
SCHEDULE -9
LOANS
Current Year
(` '000)
Previous Year
(` '000)
SECURITY-WISE CLASSIFICATION
Secured
(a) On mortgage of property
In India
Outside India
Less : Provision for doubtful debts
-
-
(b) On Shares, Bonds, Government Securities
(c) Others
Unsecured
-
-
TOTAL
-
-
(a) Central and State Governments
(b) Banks and Financial Institutions
(c) Subsidiaries
(d) Industrial Undertakings
(e) Others
-
-
TOTAL
-
-
-
-
-
-
TOTAL
-
-
MATURITY -WISE CLASSIFICATION
(a) Short Term
(b) Long Term
-
-
TOTAL
-
-
Particulars
1
2
3
BORROWER-WISE CLASSIFICATION
PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard
In India
Outside India
(b) Non-performing loans less provisions
In India
Outside India
4
15,46,06.47
Leasehold Property
Building
Furniture and Fittings
Information Technology
Equipment
Vehicles
Office Equipment
4
5
6
7
8
9
-
5,36,81.38
1,06,67.09
168,42,65.27
168,62,56.47
30,58,31.84
34,33,85.98
-
-
-
(1.96)
-
(7.95)
9.91
-
-
-
4,48,39.82
6,88,20.24
6,88,20.24
26,30.69
2,26,96.20
1,96,61.85
80,98.22
68,87.24
6,90.11
-
81,55.93
-
For the Year
72,85.67
1,02,27.72
1,02,27.72
16,27.73
6,08.71
71,72.30
8,18.98
-
-
-
-
-
On Sale /
Adjustments
-
34,33,85.98
40,19,78.50
40,19,78.50
2,14,63.43
4,04,11.22
11,69,41.84
8,98,64.15
9,33,82.55
1,06,72.41
-
2,92,42.90
To date
6,21.72
39.18
39.18
37.93
-
-
1.25
-
-
-
-
-
Upto Last
Year
-
-
-
-
-
-
-
-
-
-
-
-
Additional
Impairment
5,82.54
-
-
-
-
-
-
-
-
-
-
-
Reversal
39.18
39.18
39.18
37.93
-
-
1.25
-
-
-
-
-
To date
128,42,38.79
3,21,81.46
2,50,89.41
3,56,30.30
5,28,22.60
32,91,47.57
4,80,91.13
75,21,50.82
91,25.50
-
143,19,46.72
135,67,78.77
143,19,46.72
9,11,06.61
134,08,40.11
3,29,71.03
4,49,32.60
5,01,46.23
5,87,56.95
33,60,34.81
4,87,81.24
75,21,50.82
1,70,66.43
-
As at Year End Previous Year
164,12,50.98
1,11,95.92
34,33,85.98
2,04,62.43
1,83,23.73
10,44,60.24
8,25,75.00
8,64,95.31
99,82.30
-
-
-
Adjustment
Previous Year
1,31,87.13
168,62,56.47
5,36,82.82
6,55,00.63
15,25,72.14
14,26,88.00
42,25,30.12
5,87,63.54
75,21,50.82
2,10,86.97
-
Upto Last
Year
147,04,60.75
(0.01)
1,11,95.92
25,43.74
6,08.71
71,62.13
8,81.34
-
-
-
3,83,68.40
-
Closing
Net Block
168,42,65.27
1,31,87.13
27,63.75
28,53.01
51,40.61
22,14.76
-
-
-
-
-
Deductions
Impairment of Assets
Grand Total
(0.01)
(8.58)
-
(12.81)
21.38
-
-
-
2,15.00
-
Additions
Depreciation
18,62,21.96
168,42,65.27
5,34,71.39
6,32,56.33
42,25,30.12
5,87,63.54
75,21,50.82
-
-
Adjustment
Gross Block
Figures in ` '000
Work in Progress
Total
14,13,33.20
Land - Free Hold
3
3,81,53.40
Intangibles
2
-
Opening
Good Will
Particulars
1
Sl.
No.
FIXED ASSETS
SCHEDULE 10
SCHEDULE -11
CASH AND BANK BALANCES
Particulars
1
2
3
4
Cash (including cheques, drafts and stamps)
Bank Balances
(a) Deposit Accounts
Short Term (due within 12 months):
With Schedule Banks
With Financial Institutions
Others
With Schedule Banks
With Financial Institution
(b) Current Accounts
(c ) Others - Balance with Reserve Bank of India
Money at Call and Short Notice
With Banks
With other Institutions
Others
TOTAL
Current Year
(` '000)
Previous Year
(` '000)
2,90,49.66
4,02,74.63
859,39,14.96
-
812,36,00.00
-
31,31,93.29
8,82,09.59
1,00.00
50,48,14.96
9,98,28.78
1,00.00
902,44,67.50
876,86,18.37
SCHEDULE -12
ADVANCES AND OTHER ASSETS
Current Year
(` '000)
Particulars
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
ADVANCES
Reserve deposits with ceding companies
Application money for investments
Prepayments
Advances to Directors / Officers
Advance Tax paid (Net of provision for taxation)
MAT Credit Entitlement
On account claim payment to Banks
Less: Provision for Doubtful Recovery
5,54,45.53
237,68,60.01
6,00.00
6,00.00
-
Advances to Employees
Advance for Expenses
TOTAL (A)
OTHER ASSETS
Income accrued on Investments
Outstanding Premiums
Agents' Balances
Foreign Agencies Balances
Due from other entities carrying on insurance
business (including reinsurers)
Due from subsidiaries/holding
Deposit with Reserve Bank of India
(Pursuant to section 7 of Insurance Act, 1938)
Interest accrued on Housing Loan
Sundry DebtorsStandard Asset
Less : Provision for Standard Asset
(I)
Sub - Standard Asset
Less : Provision for Sub - Standard Asset
( II )
Doubtful Asset
Less : Provision for Doubtful Asset
( III )
( I + II + III )
10 Provision for recovery of claims preffered/paid
11 Amount Recoverable from others
Less: Provision for Doubtful Recovery
10,84,14.55
27,21.78
254,34,41.87
7,20,53.72
103,20,64.95
12,54,00.00
6,00.00
6,00.00
11,06,03.28
5,65.00
134,06,86.95
95,79,92.26
24,23,17.40
9,95,25.00
86,30,05.22
85,77,27.58
9,95,25.00
3,31,61.01
3,36,33.05
-
7,04,26.80
7,04,26.80
-
Previous Year
(` '000)
-
-
91,08,71.06
25,94,28.80
90,80,48.00
95,11.50
89,85,36.50
8,25,32.40
8,88,94.26
31,43.52
8,57,50.74
TOTAL (B)
250,50,97.45
309,76,06.89
TOTAL (A+B)
504,85,39.32
443,82,93.84
12 Sundry Deposits
Less : Provision for Doubtful Debts
17,86,98.32
7,04,26.80
7,04,26.80
-
92,03,82.56
95,11.50
91,08,71.06
8,56,75.92
31,43.52
8,25,32.40
SCHEDULE -13
CURRENT LIABILITIES
Particulars
1
2
3
4
5
6
7
8
9
10
Agents' Balances
Balances due to other Insurance Companies
Deposits held on re-insurance ceded
Premiums received in advance
Unallocated Premium
Sundry Creditors
Due to subsidiaries/holding company
Claims outstanding
Due to Employees
Due to Others - NEIA
- Factoring
- Miscellaneous
11 Due to Insured - Unclaimed
12 Bank Book Overdraft - Temporary
TOTAL
Current Year
(` '000)
Previous Year
(` '000)
20,56,65.47
167,80,58.87
11,62,09.23
2082,33,96.36
1,18,67.50
1,09,66.91
1,22,79.62
1,97,02.91
-
55,00,14.92
154,43,56.60
11,11,03.03
1860,17,37.72
2,94,21.80
8,32.87
1,58,20.81
2,34,40.49
-
2287,81,46.87
2087,67,28.24
SCHEDULE -14
PROVISIONS
Particulars
1
2
3
4
5
6
7
Reserve for Unexpired Risk
Reserve for Premium Deficiency
Reserve for Corporate Social Responsibility
For Taxation
- Income Tax (Net of Advance Tax)
- Wealth Tax
- Fringe Benefit Tax (Net of Advance Tax)
For Proposed Dividends
For Dividend distribution Tax
For Retirement Benefits
- Earned Leave
- Gratuity
- Pension
TOTAL
Current Year
(` '000)
Previous Year
(` '000)
380,77,99.47
46,86,08.56
3,79,41.50
385,47,25.48
1,53,51.50
89,63.25
27,00,00.00
4,38,00.75
89,53.24
26,10,00.00
4,23,40.73
22,33,23.85
1,10,17.61
22,43,68.00
509,58,22.99
20,37,46.71
1,56,75.44
41,42,05.00
481,59,98.10
SCHEDULE -15
MISCELLANEOUS EXPENDITURE
Particulars
Current Year
(` '000)
Previous Year
(` '000)
1
Discount Allowed in issue of shares/debentures
-
-
2
Others
-
-
TOTAL
-
-
SCHEDULE - 16
SIGNIFICANT ACCOUNTING POLICIES
1. ACCOUNTING CONVENTION
1.1 The financial statements are drawn up in accordance with the Regulatory provisions of
section 11(1) of the Insurance Act 1938; regulations framed under Insurance Regulatory and
Development Authority Act 1999, read with the provisions of sub-sections (1) , (2) and (5)
of section 211 and sub-section (5) of section 227 of the Companies Act 1956. These
financial statements prepared under the historical cost convention and on accrual basis,
comply with The Insurance Regulatory and Development Authority (Preparation of
Financial Statements and Auditors Report of Insurance Companies) Regulation 2002 and are
in conformity with the requirements of Accounting Standards prescribed by Companies
(Accounting Standards) Rules, 2006 and the provisions of The Companies Act, 1956 to the
extent applicable, and conform to practices prevailing in the credit insurance industry unless
otherwise stated.
1.2 USE OF ESTIMATES:
The preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures relating
to contingent liabilities as at the date of financial statements and reported amounts of
revenues and expenses during the reporting period. Actual results could differ from these
estimates. Difference between the actual result and estimates are recognized in periods in
which the results are known / materialised.
2.
FIXED ASSETS AND DEPRECIATION
2.1
Fixed Assets are stated at cost of acquisition less depreciation.
2.2
Depreciation is provided on straight-line method at the relevant rates as per Schedule XIV
to the Companies Act 1956, except for Vehicles and IT hardware for which the
depreciation rate has been changed to 20% with effect from 01st April 2011. Assets
added/disposed off during the year are depreciated on a pro-rata basis with reference to the
date of addition/disposal.
2.3
Assets costing less than Rs. 5,000.00 and mobile hand sets are fully depreciated in the year
of purchase.
2.4
Leased Assets are amortised over the period of lease.
2.5
The computer software forming integral part of hardware which comprises pre-loaded
software and the software procured for loading in the newly bought-out hardware is
capitalized along with the hardware.
2.6
The Software development and acquisition costs which meet the recognition criteria of AS
– 26 – Intangible Assets issued by Companies Accounting Standard Rules 2006 are
capitalised under the head “Intangibles” and amortised on a straight-line basis over the
useful life of the Asset subject to a maximum period of 5 years.
2.7
Projects under commissioning are carried forward at cost as Capital Work in Progress
(CWIP) and represents payments made to contractors including advances and directly
attributable cost.
3. IMPAIRMENTS
The carrying amounts of assets are reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any indications exist, the assets
recoverable amount is estimated. An impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount.
4.
INVESTMENTS
4.1
Short Term Money Market Instruments such as Commercial Papers and Certificate of
Deposit, are shown at their discounted value and the difference between the acquisition cost
and the redemption value is apportioned on time basis and recognised as accrued income.
4.2
Contracts for purchase and sale of shares, bonds, debentures etc. are accounted for as
“Investments” as on date of Transaction.
4.3
The cost of investments include premium on acquisition, expenses like brokerage, transfer
stamps, transfer charges etc. and is net of incentive/fee if any, received thereon.
4.4
Dividend is accounted for as income in the year of declaration. Dividend on shares/interest
on debentures under objection/pending delivery is accounted for on realisation. Interim
dividend is accounted where the warrants are dated 31st March or earlier.
4.5
Profit/Loss on realisation of investments is computed by taking Weighted Average Book
Value as cost of investments except Government Securities which are held to maturity and
profit/loss on such investments are worked out on First In First Out Basis (FIFO).
4.6
Investment in Government Securities, debt securities and redeemable preference shares are
considered as held till maturity and valued at cost. However, in terms of Insurance
Regulatory and Development Authority Regulations the premium paid at the time of
acquisition of securities is amortised over the residual period of maturity.
4.7
a)
Investments in Mutual Fund/s are valued at Net Asset Value (NAV) at the year-end and
the difference between cost/book value and NAV is accounted in Fair Value Change
Account. However, if there is impairment in value, the same is charged to Revenue and
the book value of investment is reduced accordingly. Any reversal of impairment loss
earlier recognised, shall be taken to revenue to the extent of reduction in impairment
recognised earlier.
b) In case of non-availability of NAV as at the Balance Sheet date, investment is shown at
cost.
4.8
a) Investment Portfolio in respect of Equity/Equity related instruments are segregated into
Actively Traded and Thinly Traded as prescribed by Insurance Regulatory and
Development Authority Regulations. The shares are treated as Thinly traded by taking
into consideration transactions in the month of March on both NSE and BSE.
b) Actively Traded Equity/Equity related instruments are valued at lowest of the last quoted
closing price at NSE or the BSE in March. If the shares are traded/listed only on either of
the stock exchanges then the quotation available on the respective stock exchanges is
considered. The difference between weighted average cost and quoted value is accounted
in Fair Value Change Account
4.9
Investment in thinly traded Equity shares and unlisted Equity shares are shown at cost.
However, difference between cost and break-up value is provided for as diminution in
value. Further if the published accounts of an unlisted Company are not available for last
three accounting Years ending on or immediately preceding the date of working out
provision for thinly/unlisted shares or if the break-up value is negative then the provision is
made for the entire cost.
4.10
Investment in Listed Equity/Equity related instruments/Preference shares made in those
companies, which are making losses continuously for last three years and where capital is
eroded, are considered to have Impairment in value. Further, if the published accounts of a
company are not available for last three accounting Years ending on or immediately
preceding the date of working out Impairment in value, it is presumed that the value of
investments is fully impaired and is written off to a nominal value of Re 1/- per company.
4.11 A) Valuation of investments considered to have impairment in value is done as under:
a)
In respect of Actively Traded Equity shares: - Least of Cost Price, Market Price
or Break-up Value provided Break-up Value is positive. However, if the Breakup Value is negative the nominal value is taken at Rs. 1/- per company.
b)
In respect of Other Than Actively Traded Equity Shares: - Lower of Cost
Price or Break-up Value provided Break-up Value is positive. However, if
Break-up Value is negative the nominal value is taken at Rs. 1/- per company.
c)
In respect of preference shares, if the dividend is not received for the last three
years: - The preference shares are written down to a value which will bear to its
face value, the same proportion as Value taken/which would have been taken
for writing down equity shares bears to the face value of the equity shares.
However, if the equity shares are written off to Re.1/- per company, Preference
shares also will be written off to a nominal value of Re. 1/- per company.
B)
Once the value of investment in listed equity/equity related instruments/preference
shares is impaired in accordance with the above mentioned policy, the reversal of such
impairment losses are recognised in revenue/profit & loss account only when the
accumulated loses of such investee companies are completely wiped out and capital is
fully restored as per the latest available published accounts on or immediately
preceding the date of working out the reversal.
4.12
REVERSE REPO Transactions are treated as secured lending transactions and accordingly
disclosed in the financial statements. The difference between total consideration at the 1st
and 2nd leg of the transaction is treated as income.
4.13
“Collateralised Borrowing and Lending Obligation“(CBLO), which is issued at Discount to
the Face Value, is treated as Money Market Instrument as per Reserve Bank of India
Notification. Discount earned at the time of lending through CBLO is shown as income,
which is apportioned on time basis.
4.14
a) Unrealised gain, losses arising due to changes in the fair value of listed equity shares are
taken under the head “Fair Value Change Account” and on realisation reported in profit
and loss account.
b) Pending realisation, the credit balance in the “Fair Value Change Account” is not
available for distribution.
5.
PREMIUM INCOME
5.1
Premium Income in respect of Transfer Guarantees, Export Credit Insurance for Banks
(Export Performance), Short Term Policies, Export Credit Insurance for Banks and
Domestic Credit insurance policies and Domestic Credit insurance for banks, received upto
the end of the year is accounted for after verification of the relevant declaration
forms/documents received from exporter/bank and on receipt of premium due for the risk
undertaken.
5.2
Premium Income in respect of Long Term policies/ Export Credit Insurance for Banks
relating to Project and Term Exports, Lines of Credit and Overseas Investment Insurance,
is apportioned over the period of policy/guarantee on the basis of the schedule of
payments/exports as and when drawn up from time to time.
6. RESERVE FOR UNEXPIRED RISKS
Reserve for unexpired risks is created at 50% of net premium income for the year.
7. PREMIUM DEFICIENCY
Premium deficiency is recognised when the sum of expected claim costs and related expenses
exceed the reserve for un-expired risks.
8.
LIABILITY ON ACCOUNT OF CLAIMS AND ACCOUNTING OF ESTIMATED
RECOVERIES.
8.1
Liability towards outstanding claims comprises of claims preferred and outstanding at the
year end. Further the provision for Claims Incurred But Not Reported (IBNR), Provision
for Claims Incurred But Not Enough Reported (IBNER) are accounted for as per actuarial
valuation as at end of the year.
8.2
The estimated recoveries (other than transfer delay recoveries) in respect of claims paid or
provided are accounted for on the basis of assessment of each case.
However, the
recoveries in respect of claims paid and outstanding for recovery for more than three years
as on the Balance Sheet date are estimated at Rs 100 (Rupees one hundred only) even if
higher recovery provision is permissible on such assessments. The estimated recoveries on
account of transfer delay claim, paid or provided for, is accounted on the basis of the
Corporation's current perceptions based on the available information and past experience.
8.3
No provision is made for following Claims which are treated as Contingent Liability:
(i)
Claims rejected by the Corporation and not acknowledged as debts in respect of
which legal action and/or arbitration has been initiated except cases where there
have been adverse ruling. Such cases have been provided under claims in the
financial statements
(ii) Claims preferred by Banks where, as confirmed by them, compromise proposals
for recovery of dues are under negotiation.
Interest claimed, if any, in respect of cases referred to (i) & (ii) is not considered either for
the purpose of contingent liability or for provision.
9.
9.1
REINSURANCE
Insurance premium on ceding of the risk is recognised in the year in which the risk
commences. Any subsequent revision to premium ceded is recognised in the year of such
revision. Adjustment to reinsurance premium arising on cancellation of policies is
recognised in the year in which it is cancelled
9.2
Commission received on reinsurance ceded is recognized as income in the period in which
reinsurance premium is ceded.
9.3
Profit commission under re-insurance treaties, wherever applicable, is recognized in the
year of final determination of the profits and as intimated by re-insurer.
9.4
Amounts received/receivable from the re-insurers, under the terms of the reinsurance
arrangement, are recognized together with the recognition of the claim.
10.
EXPENSES OF MANAGEMENT
10.1
Management expenses, other than those directly related to other businesses of the
Corporation, incurred by the Corporation are considered as expenses relating to the
insurance business and are therefore charged to revenue account. Expenses relating to
investment are apportioned between Revenue and Profit & Loss Account in the same
proportion as stated in Significant Accounting Policy No.10.2.
10.2
The income from interest and dividends is apportioned between Profit and Loss Account
and Revenue Accounts in the ratio of Shareholders’ Fund and Policyholder’s Fund
respectively at the beginning of the financial year. Shareholders fund consists of Share
Capital and Free Reserves including Borrowings. Policyholders Fund consists of provisions
for outstanding claims and reserves for unexpired risks.
10.3
Printing and Stationery items are treated as consumed in the year of purchase.
11. EMPLOYEE BENEFITS:
11.1
The Corporation provides for gratuity, a defined benefit plan covering all eligible
employees. The plan provides a lump sum payment to eligible employees on retirement or
on termination of employment based on the salary of the respective employee and the years
of employment with the Corporation. The Corporation contributes to a gratuity fund
maintained by Insurance Company. The amount of contribution is determined based upon
actuarial valuations as at the year end. Such contributions are charged off to the Revenue
Account.
11.2
Provision is made for the shortfall between the actuarial valuation as per Projected Unit
Credit Method and the funded balance with the Insurance Company as at the Balance Sheet
date.
11.3
As per Corporation’s policy, employees are eligible to encash leave standing to the credit
of employees at the time of resignation/retirement subject to terms and conditions.
Provision for short-term compensated absences is made on the basis of an estimate of
availment of the leave balance to the credit of the employees as at the Balance Sheet date.
Long-term compensated absences are provided for based on actuarial valuation as at
Balance Sheet date.
11.4. Provident Fund is a Defined Benefit Plan. Corporation’s contribution towards the fund is
charged to the Revenue Account. In case the return of the Provident Fund Trust’s corpus is
below the Statutory Prescribed Minimum, the Corporation will have to fund the shortfall.
11.5. Employees are eligible to receive Provident Fund benefits through a defined benefit plan in
which employees make monthly contributions to the plan, @ 10%, of the covered
employees’ basic salary. The Corporation contributes an equal amount in case of the
eligible employees who have joined the Corporation on or after 01/01/2004, and eligible
employees who have joined the Corporation on or before 31/12/2003 and have not opted
for pension benefit. The Corporation has established a Provident Fund Trust to which
contributions towards provident fund are made contributions towards Provident Fund are
charged to the Revenue Account on an accrual basis. The Corporation guarantees a
specified rate of return on such contributions on a periodical basis. The Corporation will
meet the shortfall in the return, if any, which is provided for based on actuarial valuation as
on the date of Balance Sheet.
11.6
Employees are eligible to receive Pension benefits through a defined benefit plan to which
the Corporation contributes to the plan, @ 10%, of the covered employee’s basic salary.
Employees who have joined the Corporation on or before 31/03/2010, and have opted to
receive Pension benefit are covered under the Pension Plan. The Corporation has
established a Pension Fund Trust to which contributions towards Pension are made each
month. Contributions towards Pension Fund are charged to the Revenue Account on an
accrual basis. The Corporation will evaluate the net liability based on an actuarial valuation
of the Obligation and the Fair Value of the Assets to meet the obligation and provides for
the same as on the date of Balance Sheet.
11.7
All other Long Term Benefits are provided for on Actuarial Basis.
11.8
The actuarial gains/losses on the employee benefits are immediately recognized in the
Revenue Account.
12.
INCOME TAX
12.1
Provision for Tax is made on the basis of taxable profits computed for the current
accounting period in accordance with the Income Tax Act, 1961. MAT paid in accordance
with the Tax Laws, which gives raise to future economic benefits in form of tax credit
against future Income Tax liability, is recognised as an asset in the balance sheet if there is
convincing evidence that the Corporation will pay normal tax in future years and the
resulting asset can be measured reliably.
12.2
Deferred Tax is calculated at the tax rates and laws that have been enacted or substantially
enacted as of the Balance Sheet date and is recognized on timing difference that originate
in one period and are capable of reversal in one or more subsequent periods. Where there
is unabsorbed carry forward business losses or depreciation, deferred tax assets are
recognized only if there is virtual certainty of realisation of such assets. Other deferred tax
assets are recognised only to the extent that there is a reasonable certainty of realisation in
future.
13.
PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
13.1
A provision is recognised when an enterprise has a present obligation as a result of past
event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on management estimate required
to settle the obligation at the balance sheet date. These are reviewed at each balance sheet
date and adjusted to reflect the current management estimates.
13.2
Contingent Liabilities are disclosed when the Corporation has a possible obligation or a
present obligation and it is probable that a cash outflow will not be required to settle the
obligation.
13.3
14.
Contingent assets are neither recognised nor disclosed in the financial statements.
FACTORING
14.1
Factoring Service Charges including interest are accounted as and when accrued.
14.2
Debts Factored are included under the head Current Assets as Sundry Debtors. Such
debtors are classified as performing and non-performing assets, based on the guidelines
issued by the IRDA. Performing debtors are classified as Standard assets, Non-Performing
debtors are classified into sub-standard, doubtful and loss assets, based on the classification
criteria stipulated by IRDA
14.3
The unpaid balances of the price of debts factored and due to the clients on collection are
included under Current Liabilities and are reflected in the form of Factoring Margin
Account.
14.4
Gain and loss arising on account of differences in foreign exchange rates on
settlement/translation of monetary assets and liabilities are charged to clients
14.5
Provision for factoring debts is made as per IRDA norms notified from time to time. Such
provision includes provision at the rate of 0.40% on standard assets. Provisions are made
for NPAs as per the guidelines prescribed by the regulatory authorities, subject to minimum
provisions as prescribed below by the IRDA :
Substandard Assets:
i. A general provision of 10%
ii. Additional provision of 10% for exposures
which are unsecured ab-initio (where realisable
value of security is not more than 10 percent abinitio)
Doubtful Assets:
-Secured portion:
i. Upto one year – 20%
ii. One to three years – 30%
iii. More than three years – 100%
-Unsecured portion
100%
Loss Assets:
100%
15. NATIONAL EXPORTS INSURANCE ACCOUNT (NEIA) TRUST ACCOUNT:
The administrative charges received from NEIA is being allocated equally throughout the
Cover period
16.
FOREX TRANSACTIONS:
16.1
Initial Recognition – Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between the reporting
currency and the foreign currency approximately at the date of the transaction.
16.2
Conversion – Foreign currency monetary items are reported using the closing rate. Nonmonetary items, which are carried in terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at the date of the transaction.
16.3
Exchange Differences – Exchange differences arising on the settlement or conversion of
monetary items, are recognized as income or as expenses in the period in which they arise
and are charged to revenue account excepted as stated under:
Foreign exchange gain or loss on recoveries of claims paid/provided are accounted under
the head “Claims incurred (net)” and are included under the head “recovered during the
year”.
SCHEDULE 17
NOTES ANNEXED TO AND FORMING PART OF ACCOUNTS:
1.
PREPARATION OF FINANCIAL STATEMENTS
The accompanying financial statements have been prepared as per the provisions of The
Insurance Regulatory and Development Authority (Preparation of Financial Statements
and Auditors’ Report of Insurance Companies) Regulation, 2002 and other applicable
provisions of the Companies Act, 1956 and the Insurance Act, 1938, pursuant to the
permission granted to the Corporation by the Insurance Regulatory and Development
Authority (IRDA).
2.
REALISABILITY OF STATED AMOUNTS
In the opinion of the Management, the items under the Current Assets, Loans and
Advances have value on realization in the ordinary course of business, at least equal to the
amount at which they are stated in the balance sheet and provision for all known liabilities
and doubtful assets have been made.
3. FIXED ASSETS
3.1 “Buildings” under Fixed Assets include certain properties costing Rs.650.76 thousands
(Previous year Rs. 650.76 thousands) where stamp duty has been paid and registration
formalities are pending. Further it includes, properties costing Rs.5,75,11.06 thousands
(Previous year Rs. 5,75,11.06 thousands), where stamped agreements are lost / presently
not available with the Corporation. However the Corporation is in the possession of the
share certificates of the Cooperative institution in respect of these properties.
3.2 Intangible under Fixed Assets include perpetual licences purchased for use of software.
Amount capitalised during the year in relation to acquisition of such licenses is Rs.2,15.00
thousands (previous year Rs. 26,48.56 thousands). As per the terms of agreement with the
supplier, the ownership of such licences would pass to the Corporation on payment for
such licences. Since the Corporation has “put to use” such licenses, the total value of such
licenses have been capitalised under the head Intangible and would be amortised over a
period of 5 years from the date of asset put to use.
3.3 Capital Work in Progress includes :
i)
On account of Consultancy and related charges for construction of Office building
Rs. 10,05,86.06 thousands (Previous Year Rs. 70,31.57 thousands)
ii)
Advance for Capital Expenses Rs. 8,56,35.90 thousands (Previous year Rs.
8,40,75.04 thousands)
iii)
4.
Assets not put to use Rs. Nil (Previous Year Rs. Nil )
IMPAIRMENT
During the year the Corporation has provided for impairment loss amounting to Rs. Nil
(previous year Rs. Nil ) on fixed assets. On sale of the impaired assets, the Corporation
has reversed Impairment loss of Rs. Nil (previous year 5,82.55 thousands). The Balance
of Impairment loss as on 31/03/2012 is Rs.39.18 thousands (Previous year Rs.39.18
thousands). In the opinion of the management no further provision for impairment loss is
considered necessary.
5.
ADVANCES AND OTHER ASSETS:
5.1
Advances and other assets includes:
a. Rs. 17,86,98.32 thousands (Previous year Rs. 25,94,28.80 thousands) (net of reinsurance) being the estimated amount of recovery expected out of the claims
paid/payable
by the Corporation, which has been recognized on individual
assessment/estimate basis as per the accounting practice followed by the
Corporation.
b. An amount of Rs.1,16,04.73 thousands (Previous year Rs. 1,45,42.29 thousands)
deposited in the Court of Law in pursuance of Court Order for claim suits filed
against the Corporation and in respect of which final decisions are awaited. The
same is disclosed under Sundry Deposits.
5.2
Interest on Housing loans to employees is accounted for on accrued basis.
Adjustments required, if any, are carried out at the time of final settlement.
5.3
Deposit in terms of the provisions of Section 7 of the Insurance Act, 1938 invested in
the Government Securities of face value Rs. 10,00,00.00 thousands [Cost & Book
value Rs. 9,95,25.00 thousands (previous year Rs. 9,95,25.00 thousands)], are kept in
Constituent Subsidiary General Ledger (CSGL) Account with Canara Bank. These
deposits are intended to be held till maturity and therefore no provision for diminution
in the market value, if any, is considered.
6.
CURRENT LIABILITIES:
6.1
Current Liabilities includes Rs.68,94.00 thousands (previous year Rs. 9,993.43
thousands) towards Productivity Linked Lump sum Incentive (PLLI) payable to the
employees which has been accounted for based on the provisional rating of the
Corporation as on 31-03-2012 under the Annual Memorandum of Understanding
(MoU) with the Administrative Ministry, pending final rating to be conveyed by the
Administrative Ministry.
6.2
Premium received in advance includes amounts of premium remaining to be adjusted
on account of incomplete information. As per the accounting policy followed by the
Corporation, the said amounts are recognized as income only after completion of
necessary formalities.
6.3
As per the Accounting practice followed by the Corporation, liability towards claims
preferred and outstanding is provided for based on the assessment of individual
claims, liabilities towards such claims has been recognized based on information
available up to the year end. In the opinion of management the impact if any, of the
above has been considered during the year while assessing the overall provision of
unreported and not enough reported (IBNR & IBNER) claims and additional
provision for outstanding losses/claims which is arrived at based on actuarial
valuation by Appointed Actuary. Accordingly an amount of Rs.1450,00,00.00
thousands (Previous year Rs. 690,00,00.00 thousands) has been recognized as
estimated liability towards unreported and not enough reported claims (IBNR &
IBNER) and additional provision for outstanding losses/claims.
7.
REINSURANCE:
The Corporation has ceded obligatory cession of 10% (Previous year 10%) of the
entire business of the Corporation (short term as well as medium and long term
business) as required under the IRDA guidelines to General Insurance Corporation of
India. Quota share cession is 13% (previous year Nil) with General Insurance
Corporation of India, United India Insurance Company Ltd., Oriental Insurance
Company Ltd., and New India Assurance Ltd. The Corporation has Excess of Loss
(XOL) Treaty cession for Short Terms (ST) covers with GIC.(Previous year no top up
cover was available) was entered into during the year.
The re-insurance programme for the earlier years was as under:
Financial Year
Quota Share
XOL (ST)
Obligatory
Treaty (ST)
15%
20%
No XOL available
2008-09
10%
10%
XOL available
2009-10
10%
15%
XOL available
2010-11
10%
Nil
No XOL available
2007-08 (only
ST)
The Corporation has also made risk sharing arrangement for some high value
exposures with the NEIA Trust on quota share basis with the approval of Committee
of Directions, NEIA. The total premium paid to NEIA trust is Rs.1,61,63.01
thousands. (Previous year Nil)
8.
FACTORING:
A Provision of Rs. Nil thousands (Previous year Rs. Nil thousands) is made at the rate
of 0.40% of the standard factoring dues outstanding based on IRDA norms. The
Corporation has made a provision of Rs. Nil (Previous year Nil thousands) on account
of sub-standard assets and Rs.7,04,26.80 thousands (Previous year 7,04,26.80) on
account of doubtful assets factoring dues in line with the IRDA norms.
9. NATIONAL EXPORTS INSURANCE ACCOUNT (NEIA) TRUST ACCOUNT:
The Income received by the Corporation is Rs.47,89.78 thousands (Previous year Rs.
9,97.02 thousands) is included in Other Income. Administrative charges received in
advance are Rs.1,09,66.91 thousands (Previous year Rs. 8,19.05 thousands). The same
is included in Current Liabilities – Others – NEIA.
10. PREMIUM INCOME:
As per the consistent practice followed by the Corporation, premium income is
accounted for at the time of its receipt along with necessary declarations, irrespective of
the date of shipment / date of advance/accounting year to which it relates.
11.
‘Sundry Creditors’ under ‘Schedule 13 - Current Liabilities’ includes an amount of Rs.
3,45,94.20 thousands (Previous Year Rs. 3,64,27.95 thousands) on account of premium
received from various banks, towards extension of cover to be given by Corporation to
various banks on account of guarantees provided by the banks to an exporter - borrower.
The Corporation has not accepted the said amount and has communicated to the banks
about its inability to extend the cover. The Corporation has tried to return the amount to
the said bankers who have not accepted the Corporation’s stand. Accordingly the
Corporation has reflected the said amount under the head ‘Sundry Creditors’. Further in
view of the Corporation the said amount is not unclaimed amount in terms of circular
no. IRDA/F&A/CIR/CMP/174/11/2010 dated November 4, 2010 issued by IRDA.
12. The Corporation on an ongoing basis recovers claims paid/provided in earlier
years/current year. Such recoveries may be in foreign currency. As stated in accounting
policy (Schedule 16) 16.3 the Exchange difference on such recoveries are accounted
under the head “Claims incurred (net)” and are included under the head “Recovered
during the year”. In view of the voluminous transactions the Corporation is unable to
ascertain the amount of exchange gain/loss on such transactions.
13.
Balances under Sundry Debtors, Sundry Creditors and deposits, other liabilities, Loans,
Advances and other Assets including amount recoverable, Sundry Deposits including
personal ledger balances of insured, minimum premium account, deposit premium
accounts, reinsurance accounts are subject to confirmation and consequential
adjustments, if any.
14.
Pursuant to the provisions of Section 441A of the Companies Act 1956, the Corporation
has provided an amount of Rs. 5,02.41 thousands (Previous year Rs. 442.73 thousands)
towards cess payable to the Central Government. The actual payment thereof shall be
made once the relevant rules for such payment are announced.
15.
As per Standard practice followed by the Corporation, claims are settled by the various
officials of the Corporation including the Board of Directors by using the discretionary
powers to condone various lapses in the claims preferred. All these claims settled are
considered to have been settled in the normal course of business of the Corporation.
16. The Corporation is in the process of streamlining the Information Technology System
regarding the flow of data so that precise data is available for business applications.
17.
The remuneration of Chairman and Managing Director included in Employees’
Remuneration and other Benefits is as under:
(` in ‘000)
Shri A V Muralidharan (upto 28/02/2011)
Chairman cum Managing Director.
Particulars *
Current
Year
Salaries
0.00
Previous
Year
12,80.80
Contribution to PF
0.00
88.00
Leave Travel Concession
0.00
41.12
Medical Expenses
0.00
34.73
Total
0.00
14,44.65
* Does not include Actuarial Valuations.
(` in ‘000)
Shri N. Shankar (from 19/10/2011 )
Chairman cum Managing Director.
Particulars *
Current
Year
6,13.00
Previous
Year
0.00
38.80
0.00
Leave Travel Concession
0.00
0.00
Medical Expenses
0.00
0.00
6,51.80
0.00
Salaries
Contribution to PF
Total
* Does not include Actuarial Valuations.
18. Prior period adjustments include:
Debits:
(` in ‘000)
Particulars
Premium
Agency commission
Sundry Deposit
Rates & Taxes
Travel exp
Others
Current Year
52,55.31
6,29.17
1,34.24
1,24.56
86.88
77.07
Previous
Year
3,73.32
18.93
98.90
50.15
Reinsurance
General chg
Depreciation
Recovery
29.00
0.60
0.00
0.00
63,36.83
Credits:
21,68.58
94.56
34.56
3,86.21
32,25.21
(` in ‘000)
Particulars
Previous
Year
Current Year
Depreciation
Sundry Deposit
Others
Rent
Membership fee
Commission
Repair & Maintenance
Net Debit / (Credit) in prior
16.46
12.95
3.12
0.00
0.00
0.00
0.00
32.53
1.01
3,70.06
35.29
1,96,66.8
4,04.89
1,44.47
32.5
2,06,55.01
63,04.30
(1,74,29.80)
Period Adjustments
19.
Earnings and Expenditure in Foreign Exchange:
(` in ‘000)
Earnings
Claims Recovered
Expenditure
Current
Year
8,68,30.72
Previous
Year
8,70,81.11
Membership Fees and other expenses
34,70.16
Previous
Year
37,01.58
Travelling expenses
22,80.12
17,37.76
Status Enquiry Fees
1,87,50.63
1,38,73.83
3,10.07
3,47.35
Factoring Service Charges
22,15.52
3,63.96
Re-insurance
67,43.67
1,36,38.99
0.00
4,55.34
3,37,70.17
3,41,18.81
Books and periodicals
Others
Total
Current Year
20.
Segmental Reporting is given in Annexure – 1 attached.
21.
Related Party Disclosures pursuant to Accounting Standard no 18:
a.
Key management Personnel:
i) Shri Arvind Mehta, IAS
Chairman and Managing Director (upto 18/10/2011)
ii) Shri N. Shankar
Chairman and Managing Director (from 19/10/2011)
b.
Corporation’s related parties:
i) Associates
a)
National Export Insurance Account Trust (NEIA)
ii) Entities over which Control Exists
a)
The ECGC Employees Pension Fund
c. Remuneration paid to Key Management Personnel:
Shri A. V. Muralidharan, Chairman cum Managing Director (upto
28/02/2011)
(` in ’000)
Particulars*
2011-12
2010-11
Salaries
0.00
12,80.80
Contribution to PF
0.00
88.00
Leave Travel Concession
0.00
41.12
Medical Expenses
0.00
34.73
Total
0.00
14,44.65
* Does not include Actuarial Valuations.
(` in ‘000)
Shri N. Shankar (from 19/10/2011 )
Particulars *
Current
Year
6,13.00
Previous
Year
0.00
38.80
0.00
Leave Travel Concession
0.00
0.00
Medical Expenses
0.00
0.00
6,51.80
0.00
Salaries
Contribution to PF
Total
* Does not include Actuarial Valuations.
d. Transactions during the year with related parties:
(` in ‘000)
Sl.
No.
1
Nature of Transactions
National Export The
ECGC Total
Insurance
Employees
Account Trust
Pension Fund
Administrative Charges
47,89.78
0.00
47,89.78
Received for the Year
2
4
(9,97.02)
(0.00)
(9,97.02)
1,09,66.91
0.00
1,09,66.91
received in advance
(8,19.05)
(0.00)
(8,19.05)
Recovery made on a/c
12,78.87
0.00
12,78.87
of claims paid under
(13.81)
(0.00)
(13.81)
1,61,63.01
0.00
1,61,63.01
(0.00)
(0.00
(0.00)
1,21,28.21
0.00
1,21,28.21
Debit
(3,64.87)
(0.00)
(3,64.87)
of
0.00
24,32,46.75
24,32,46.75
(0.00)
(45,14,02.37)
(45,14,02.37)
Administrative Charges
stimulus package
5
Risk Sharing Premium
with NEIA
6
Outstanding Dues as at
year
end
–
Balance
7.
Contribution
Employer’s share.
Note : Figures in bracket represents previous year’s amount.
22.
Deferred Tax Accounting:
During the year the Corporation has accounted for the Deferred Tax in accordance with
the Accounting Standard 22. This has resulted in a Net Deferred Tax Credit during
the year amounting to Rs. 16,31,64.25 thousands (Previous year Debit Rs. 16,58,38.14
thousands). The net deferred tax asset at the end of the year amounts to
Rs.20,36,43.90 thousands (Previous year deferred tax asset Rs. 4,04,79.65 thousands).
The break up of deferred tax assets and deferred tax liabilities is as under:
( ` in ’000)
Opening at
Charge/Credit
Closing at
01.04.2011
during the year
31.03.2012
Liability
Depreciation
5,95,21.05
(93,54.45)
5,01,66.60
Total
5,95,21.05
(93,54.45)
5,01,66.60
Assets
Provision for leave
encashment
Provision for doubtful
debts
Provision for gratuity
Provision for CSR
PLLI
Long Service liability
Cess u/s. 441A of
Companies Act
Provision for Premium
Deficiency
Total
5,79,20.07
50,29.62
6,29,49.69
2,67,56.42
(6,22.24)
2,61,34.18
52,06.99
50,99.38
33,19.57
14,16.18
34,53.57
(50,99.38)
(10,82.81)
(57.74)
86,60.56
22,36.76
13,58.44
2,82.09
1,56.45
4,38.54
0.00
15,20,32.33
15,20,32.33
10,00,00.70
15,38,09.80
25,38,10.50
4,04,79.65
16,31,64.25
20,36,43.90
Deferred Tax Asset /
(Liability)
23.
Earnings Per Share is calculated as under:
Current Year
a)
Previous Year
Numerator :
Net Profit as per Profit & Loss
225,20,98.84
85,66,45.69
9,00,00,000
9,00,00,000
25.02
9.52
100.00
100.00
A/c (` in ‘000)
b)
Denominator:
Weighted Average Number of
Shares
Outstanding during
the year
c)
Earnings per share:
d)
Nominal Value of Shares (`)
Basic (`)
The Corporation does not have any outstanding dilutive potential equity shares.
Consequently the basic and diluted earnings per share of the Corporation remain the
same.
24.
Other additional information required under paras 3, 4A, 4C and 4D of Part II of
Schedule VI of the Companies Act, 1956 is not given as the same is not applicable to
the Corporation.
25.
( ` in ‘000)
CONTINGENT LIABILITIES
Sl.
Particulars
Current year
No.
Previous
Year
1.
Partly paid up investments
NIL
Nil
2.
Claims, other than against policies, not
1,27,78.00
2,17,59.00
Corporation not acknowledged as debt 1005,20,30.47
422,99,61.50
acknowledged
as
debts
by
the
Corporation
3.
Policies and ECIB claims against the
and not provided for
4.
Guarantees given by or on behalf of the
Corporation
5.
Capital Commitments
Nil
Nil
207,30,78.53
207,59,15.72
26. Premium Deficiency has been identified as on 31.03.2012 of Rs. 46,86,08.56 thousands
(Previous year Rs. Nil) as required by IRDA vide circular no. F & A/CIR/017/May-04
dated 18th May, 2004.
(` in’000)
Segment
Relevant
Premium
1
Miscellaneous
380,77,99.47
Expected Claim Expected
Cost and related Maintenance
expenses(Based cost
on
incurred
claim ratio of
preceding
3
years)
2
3
Deficiency
383,29,27.94
(46,86,08.56)
44,34,80.09
4 = 1-2-3
27. Provision for Corporate Social Responsibility
Government of India – Ministry of Heavy Industries and Public Enterprises (Department
of Public Enterprises) vide their Circular No. F.No.15(3)/2007-DPE(GM) dated April 9,
2010 have issued the guidelines to the Public Sector Enterprises to expend money on
account of Corporate Social Responsibility. The Corporation has made a provision of Rs.
2,35,50.00 thousands (Previous Year Rs. 1,53,51.50 thousands) on account of money to
be expended on Corporate Social Responsibility as per the terms of the said circular.
28. Disclosures as required under The Insurance Regulatory and Development Authority
(preparation of Financial Statements and Auditors’ Report of Insurance Companies)
Regulation, 2002 are enclosed herewith as per Annexure-2A & 2B.
29. Short Term deposits with Scheduled banks (Schedule 11) includes deposits of Rs.
35,14.96 thousands (Previous year deposits of Rs.95,14.96 thousands.) which have been
pledged with National Stock Exchange of India and Bombay Stock Exchange of India as
a cash margin.
Long Term deposits with Scheduled banks (Schedule 11) includes deposits of Rs. 68,93.29
thousand (Previous year Nil) which have been pledged with National Stock Exchange of
India and Bombay Stock Exchange of India as a cash margin.
Short Term Deposits with Scheduled Banks (Schedule 11) includes Rs. 40,00,00.00
thousand (Previous Year Nil) pledged with Corporation Bank.
30. Investment in Central Government Securities (Schedule 8) includes
i. 8.26% 2027 Government of India bonds having book value of Rs. 4,97,51.25
thousands (Previous year Rs. 4,98,60.00 thousands 7.99% 2017 Government of
India bonds) charged to Clearing Corporation of India Limited towards margin for
secondary market transactions entered into by the Corporation.
ii. 8.24% 2027 Government of India bonds having book value of Rs. 93,17.00
thousands (Previous year Rs. 93,17.00 thousands 8.24% 2027 Government of India
bonds) charged to Clearing Corporation of India Limited towards margin for
collateral borrowing and lending obligations by the Corporation.”
31.
EMPLOYEE BENEFITS:
31.1
Provision for Leave Travel Concession is based on Actuarial Valuation.
31.2
The Defined Benefit Pension Scheme is to be extended to include all employees who
joined the Corporation on or before 31/03/2010 as per letter given by the Ministry of
Commerce, Government of India. The Employees who had joined the Corporation
between 01/01/2004 and 31/03/2010 have an option to continue with the Provident
Fund scheme. Employees joining the Corporation on or after 01/04/2010 shall be
covered by a Defined Contribution Pension Scheme to be framed by the Corporation.
Accordingly the Corporation has made a provision of Rs. 8,93,55.99 thousands
(Previous year Rs. 7,62,27.00 thousands) assuming that all 85 employees who have
joined between 01/01/2004 and 31/03/2010 would opt for switching to Defined
Benefit Pension Scheme.
31.3
In case of employees who are eligible for pension, the Corporation remits the
contribution to the Pension Fund. For the other employees, the Corporation remits the
Corporations share to the Provident Fund Trust.
31.4
The Guidance note on implementing AS 15 (Revised 2005), issued by ICAI, states
that provident funds set-up by employers, which require interest shortfall to be met by
the employer, need to be treated as a defined benefit plan.
31.5
As the corpus of the Provident fund and earnings there on are sufficient to meet the
requirement of the Interest payable on the provident fund, no provision for the same
and specific disclosure on account of provision is made in the account.
31.6
The details of employee benefits for the period on account of gratuity superannuation
which are funded defined employee benefit plans are as under.
( ` in ‘000)
Pension
Category
1
2011-12
2010-11
Change in benefit Obligations
Projected benefit obligations at the beginning of the
132,39,82.00
87,94,00.00
10,92,29.00
7,03,52.00
5,18,08.00
3,50,81.00
0.00
8,39,04.00
Benefits paid
(7,22,00.00)
(8,87,00.00)
Actuarial (Gain) / Loss
19,53,78.00
34,39,45.00
year
Interest Cost
Current Service Cost
Liability Transferred in*
Projected benefit obligations at the end of the
160,81,97.00
132,39,82.00
90,97,77.00
80,29,00.00
7,27,82.00
6,42,32.00
43,31,00.00
11,37,00.00
24,29.00
76,77.00
(7,22,00.00)
(8,87,00.00)
3,79,41.00
99,68.00
Plan assets at the end of the year, at fair value
138,38,29.00
90,97,77.00
3 Present Value Of The Defined Benefit Obligation
1,60,81,97.00
132,39,82.00
Plan Assets at the end of the year at fair value
138,38,29.00
90,97,77.00
Liability recognised in the Balance Sheet
(22,43,68.00) (41,42,05.00)
year
2 Change in Plan Assets
Plan assets at the beginning of the year at fair value
Expected return on plan assets
Contributions
Assets Transferred in*
Benefits paid
Actuarial Gain / (Loss)
4 Cost for the year
Current Service Cost
5,18,08.00
3,50,81.00
Interest Cost
10,92,29.00
7,03,52.00
Expected return on plan assets
(7,27,82.00)
(6,42,32.00)
Acturial (Gain) / Loss
15,74,37.00
33,39,77.00
Expense Recognised in the Revenue account
24,56,92.00
37,51,78.00
* Note: Liability and Assets transferred in refers to amount of additional obligation on
Corporation on account of assumption that 85 employees who joined between 01/01/2004 and
31/03/2010 will opt for Defined Benefit Pension Scheme.
( ` in ‘000)
Gratuity
Category
2011-12
2010-11
24,04,13.87
17,66,34.36
1,98,34.14
1,41,30.75
82,63.87
75,86.84
1 Change in benefit Obligations
Projected benefit obligations at the beginning of the
year
Interest Cost
Current Service Cost
Past Service Cost – Vested Benefit
Benefits paid
Actuarial (Gain) / Loss
Projected benefit obligations at the end of the
0.00
(1,07,35.53)
(65,18.42)
1,10,95.74
4,85,80.34
26,88,72.09
24,04,13.87
year
2 Change in Plan Assets
Plan assets at the beginning of the year at fair value
22,47,38.43
8,73,09.07
Expected return on plan assets
1,79,79.07
69,84.73
Contributions
2,14,77.83
13,10,68.95
Benefits paid
(1,07,35.53)
(65,18.42)
43,94.67
58,94.10
Plan assets at the end of the year, at fair value
25,78,54.47
22,47,38.43
3 Present Value Of The Defined Benefit Obligation
26,88,72.09
24,04,13.87
Plan Assets at the end of the year at fair value
25,78,54.47
22,47,38.43
Liability recognised in the Balance Sheet
(1,10,17.63) (1,56,75.44)
Actuarial Gain / (Loss)
4 Cost for the year
Current Service Cost
82,63.87
75,86.84
1,98,34.14
1,41,30.75
(1,79,79.07)
(69,84.73)
67,01.07
4,26,86.25
0.00
0.00
1,68,20.01
5,74,19.11
Category
Pension
Gratuity
Interest rate for Discounting (%)
8.50%
8.50%
(8.25%)
(8.25%)
8.60%
8.60%
(8.00%)
(8.00%)
Interest Cost
Expected return on plan assets
Acturial (Gain) / Loss
Past Service Cost – Vested Benefit
Expense Recognised in the Revenue account
5 Assumptions
Estimated rate of return on plan assets (%)
Basis used to determine the The expected rate of return on plan assets is based
6 expected rate of return on on the current portfolio of the assets, investment
plan assets.
strategy and the Market scenario, in order to
protect capital and optimize returns within
acceptable risk parameters; the plan assets are well
diversified.
32.
OPERATING LEASES
The Corporation has operating leases for office premises and residential flats at
various locations that are renewable on a periodic basis and are cancellable by giving
a notice period ranging from one month to six months. Rent escalation clauses vary
from contract to contract.
Rent expenses included in Revenue Account towards operating leases is Rs.
6,38,28.93 thousands (Previous year Rs.6,65,06.29 thousands)
33.
The Corporation does not have any exposure in derivative contracts and forward
contracts. The Corporation has no exposure in foreign currency (un-hedged)
a) in the form of loan from IDBI Bank for its full-fledge Factoring Scheme. The
details are as under :
Sr.
Particulars
Foreign Currency
Indian Rupees
No.
i
(‘000)
IDBI Loan Account
Euro – 0.00
0.00
Euro - (0.00)
(0.00)
Note : Figures in bracket represents previous year’s amount.
ii) Sundry Creditors:
Foreign
As on 31st March 2012
As on 31st March 2011
USD 0.00
USD 0.00
0.00 thousands
0.00 thousands
Currency
Indian Rupees
34.
Information required under Part IV of Schedule VI of the Companies Act, 1956 is
given in Annexure – 3 attached.
35.
The details to be disclosed as per the provisions of the MSMED Act, 2006 are as under:
Particulars
As at March
As at March
31, 2012
31, 2011
Amount outstanding
Nil
Nil
Delayed Payments made through-out the year
Nil
Nil
Interest payable where principal dues are settled
Nil
Nil
after due date
36.
Pursuant
to
the
regulatory
requirement
vide
IRDA
circular
no.
067/IRDA/F&A/CIR/MAR-08 dt. 28/03/2008 the additional disclosure is given as
under:
Sr. No
i.
Outsourcing Expenses
Expenses in
Current Year
(` ’000)
Nil
ii.
Business Development
1,34,87.64
1,61,70.88
iii.
Marketing Support
7,19,98.04
9,15,78.07
Particulars
37.
Expenses in
Previous Year
(` ’000)
Nil
The recoveries of claims paid in earlier years (Schedule 2) are accounted net of
expenses such as recovery commission, bank charges, service tax etc incurred on such
recoveries as per the practice consistently followed by the corporation.
The details of recoveries made during the year and the expenses incurred are as under:
(` in ’000)
Particulars
Current year
Total recovery
Previous year
176,15,22.24
142,76,36.06
7,51,94.96
6,69,71.00
168,63,27.28
136,06,65.06
Expenses incurred on such recovery
including Recovery Commission, service
tax etc
Net recovery shown in the books of
accounts.
38. RATIOS FOR NON – LIFE COMPANIES
Information in respect of ratios are as per Annexure – 4 attached.
39. Extent of risk retained and reinsured is set out below (excluding excess of loss and
catastrophe reinsurance)
Premium Statistics for the Period April 2010 to March 2011
Premium
Premium
Retention
%
2011-12
1004,83,31.67
761,55,98.94
75.79%
2010-11
885,46,69.25
770,94,50.96
87.07%
RI Ceding
%
24,27,32.73 24.21%
114,52,18.29 12.93%
40. Statement showing Age-wise Analysis of un-claimed Amount of the policy-holders as per
IRDA Circular no. IRDA/F&I/CIR/CMP/174/11/2010 dated 04/11/2010 is given in
Annexure 5.
41.Pursuant
to
the
regulatory
requirement
vide
IRDA
circular
no.
005/IRDA/F&A/CIR/MAY-09 dt. 07-05-2009 the additional disclosure is given as under:
Sl.
Authority
No
1.
Amount in ` ’000
Non-
Insurance Regulatory and
Development Authority
Compliance
Penalty
Penalty
/ Violation
Awarded
Paid
Waived/
Reduced
NIL
2.
Service Tax Authorities
NIL
3.
Income Tax Authorities
NIL
4.
Any other Tax Authorities
NIL
5.
Enforcement Directorate/
Adjudicating Authority/ Tribunal
Penalty
NIL
or any Authority under FEMA
6.
Registrar of Companies/
NCLT/CLB/ Department of
Corporate Affairs or any
NIL
Authority under Companies Act,
1956
7.
Penalty awarded by any Court/
Tribunal for any matter
including claim settlement but
NIL
excluding compensation
8.
Securities and Exchange Board
of India
9.
Competition Commission of
India
Not Applicable as the Corporation is not a Listed
Entity
NIL
10.
Any other Central/State/Local
Government / Statutory
NIL
Authority
*As certified by the management
Signatories to Schedule 1 to 17
(N SHANKAR)
Chairman cum Managing Director
( ARVIND MEHTA )
Director
(K R KAMATH)
Director
(V S DAS)
Director
( T C A RANGANATHAN)
Director
(NEERAJ K VERMA)
Company Secretary
As per our Report of even date
For M. B. Agrawal & Co.
For P. M. Dalvi & Co.
Chartered Accountants
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
(MADHAV NANDGAONKAR)
Partner
Place: New Delhi
Dated: 21st May 2012
225,20,98.84
Profit After Tax
100,16,50.39
00, 6,50.39
729,14,57.43
0.00
0.00
46,86,08.56
2,67,28.30
679,61,20.57
829,31,07.82
0.00
4,69,26.01
63,04.29
0.00
(16,31,64.25)
105,66,00.00
12,54,00.00
1,00,56.65
,00,56.65
758.92
0.00
0.00
0.00
0.00
7,58.92
1,08,15.57
0.00
(6,84.28)
87,20.28
1,11,42.82
47,89.78
60,59,29.99
761,55,98.94
Total
Less: Prior Period Items & Tax adjustment earlier years
Provision for Fringe Benefit Tax
Provision for Deferred Tax
Provision for Tax
Less : MAT Credit Set off / ( Receivable )
47,89.78
7,89.78
0.00
0.00
0.00
0.00
0.00
0.00
47,89.78
0.00
0.00
43.00
0.00
0.00
5,37.88
1,09,18.97
DCIE
327,72,38.88
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
47,89.78
0.00
NEIA
Profit Before Tax
229,60,74.80
9,60,7 .80
275,95,29.02
0.00
0.00
29,52,23.39
0.00
246,43,05.63
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Current Year
Factoring
227,64,63.18
0.00
8,74.69
((130,92,70.85)
30,9 ,70.85)
453,11,69.50
0.00
0.00
17,33,85.17
2,67,28.30
433,10,56.02
505,56,03.82
0.00
67,06.00
0.00
4,09,04.29
322,18,98.65
16,11.12
1,09,02.62
0.00
39,29,66.88
464,34,17.20
ECIB
70,66.16
2,40.20
0.00
21,24,25.23
296,12,62.77
Policy
Add : Unallocable Income net of Unallocable Expenditure
Less : Provision for Doubtful Debts
Less : Interest & Finance charges
Segment
Seg
e t Result
esu t
(Profit before Interest, Tax and Exceptional Items)
Total
Factoring expenses
Provision for Standard , Sub standard & Doubtful As
Provision for Premium Deficiency
Commission Paid Direct
Claims (Net of Recoveries)*
Segment Expenditure
Total Segment Revenue
Fees & Other receipts
Interest & Claims & premium & Other receipts
NEIA Adminstrative Income
Ceding Commission
Inter segment Revenue
Factoring income
Change in Reserve for Unexpired Risks
Premium Income from external customers
(Net of Refund / Reinsurance Premium)
Segment Revenue
PRIMARY BUSINESS SEGMENT
338,45,53.84
338, 5,53.8
(66,50,60.64)
0.00
6,00.00
(14,45,94.29)
4,07,03.59
(56,17,69.95)
271,94,93.20
0.00
(38,96,61.83)
64,31.48
4,37.11
0.00
5,92,15.09
304,30,71.35
Policy
SEGMENT DISCLOSURES PURSUANT TO ACCOUNTING STANDARD -17
(360,52,10.91)
(360,5
, 0.9 )
780,05,65.87
0.00
0.00
(33,73,86.67)
0.00
813,79,52.54
419,53,54.96
0.00
(57,30,23.30)
7,23.02
3,43,27.60
0.00
7,64,98.44
465,68,29.20
ECIB
50,06.60
(49,47.01)
48.47
0.00
0.00
0.00
(49,95.48)
59.59
59.59
0.00
0.00
0.00
0.00
0.00
0.00
9,97.02
9,97.0
0.00
0.00
0.00
0.00
0.00
0.00
9,97.02
0.00
0.00
0.00
0.00
9,97.02
0.00
0.00
Previous Year
Factoring
NEIA
Annexure - 1 to Schedule 17
85,86.47
85,86. 7
31,99.71
0.00
0.00
0.00
0.00
31,99.71
1,17,86.18
0.00
18,58.67
66.00
0.00
0.00
3,11.10
95,50.41
DCIE
85,66,45.70
(3,93,20.40)
0.00
16,58,38.14
31,85,00.00
(12,54,00.00)
117,62,63.44
138,30,90.46
0.00
7,60.05
((20,60,66.97)
0,60,66.97)
713,37,57.92
48.47
6,00.00
(48,19,80.96)
4,07,03.59
757,43,86.82
692,76,90.95
59.59
(96,08,26.46)
72,20.50
3,47,64.71
9,97.02
13,60,24.63
770,94,50.96
Total
Figures in ` '000
Packing Credit
Post-Shipment Credit
Export Performance Guarantee
Investment Guarantee
Standard Policy
Small Exporter's Policy
Specific Policy
Turnover Policy
Buyerwise Policy
Transfer Guarantee
Factoring Services
Buyerwise Exposure Policy
Consigment Export Policy
Software Project Policy
IT - Enabled Services Policy
NEIA
DCIB - Individual Packing Credit
DCIB - Individual Post Shipmentt
DCIE - Standard Policy
National Export Insurance Account
DCIE - Single Buyer Exposure Policy
DCIE - Multi Buyer Exposure Policy
0.00
4965,14,32.60
370,90,67.12
2,98,17.14
1645,11,94.70
22,96,11.36
* As per management Estimates , Provision for IBNR & Premium Deficiency has been taken as 35% for Policy-ST, 60% for ECIB-ST, 2% for Policy- LT and 3% for ECIB- LT in the ratio of Gross premium Income during the year.
Provision for IBNR & Premium Deficiency has been taken as 30% for Policy & 70% for ECIB in previous years.
Full-fleged factoring scheme
Factoring
ECIB
POLICIES
Types of Products/ Services in each Business Segment
Secondary Segment - Not Applicable
Total Liablities
Domestic Credit Insurance
1245,15,87.81
Reserve & Surplus
22,58,74.93
900,00,00.00
Share Capital
Fair Value Change Account
2797,39,69.86
4,06.02
Total
1,09,38.85
597,54,41.09
0.00
2199,85,28.77
1608,59,49.05
17,86,98.32
Unallocated Liablities
(Not allocable to any specific segment)
590,12,34.85
1.20
Carrying Amount of Segment Liablities
0.00
4965,14,32.60
0.00
Total Assets
17,17,13.19
4947,27,34.28
69,83.93
Unallocated Assets including Fixed Assets
(Not allocable to any specific segment)
Carrying Amount of Segment Assets
0.00
0.00
8,19.05
0.00
9,12.02
0.00
0.00
4631,49,54.11
79,51,37.30
1082,70,90.46
900,00,00.00
2569,27,26.34
553,07,33.45
2016,19,92.89
4631,49,54.11
4605,55,25.61
25,94,28.50
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Annexure - 2 (a) to Schedule 17
DISCLOSURES FORMING PART OF FINANCIAL STATEMENTS
1
3
Previous
Year
(` '000)
(` '000)
The details of encumbrances to the assets of the
Corporation are as under
a)
2
Current
Year
In India
Outside India
Commitments Outstanding
(as per the data provided by the management)
a)
Commitments made and outstanding for
loans and investments
b)
Commitments made for Fixed Assets (Net of advances)
9,95,25.00
Nil
9,95,25.00
Nil
Nil
207,30,78.53
Nil
207,59,15.71
587,12,28.96
Nil
460,28,91.99
Nil
Claims, less reinsurance, paid to claimants
a)
b)
In India
Outside India
4
There are no claim liabilities where claim payment
period exceeds four years
5
Claims outstanding for more than six months
(Gross - Indian)
Number of Claims
Amount
13
84,51,49.78
91
533,99,34.90
Claims outstanding for less than six months
(Gross - Indian)
Number of Claims
Amount
313
777,91,95.84
314
1033,20,53.62
Total Number of Claims outstanding (Gross - Indian)
Amount
326
862,43,45.62
405
1567,19,88.52
761,55,98.94
Nil
770,94,50.96
Nil
380,77,99.47
385,47,25.48
6
Nil
Nil
Premiums, less reinsurance, written from business
In India
Outside India
7
Premium is recognised as Income as per the declared
accounting policy. A reserve for un-expired risks is created
at 50% of net premium.
8
Details of contracts in relation to investments for,
a)
b)
Purchase where deliveries are pending
Sales where payments are due
21,05.01
6,94.07
Nil
Nil
9
The entire operating expenses pertain to credit insurance
business.
10
Investments are valued in accordance with the
declared accounting policy.
11
Computation of Managerial Remuneration: The Corporation
is exempted vide notification: GSR 235, dated 31st
January 1978 u/s 620 of the Companies Act, being a
Government Company.
12
Basis of amortisation of debt securities
Provision for diminution in the value of the investments
Current
Year
Previous
Year
(` '000)
(` '000)
Nil
Nil
22,58,74.93
79,51,37.30
22,58,74.93
79,51,37.30
Nil
Nil
Nil
Nil
9,95,25.00
Nil
9,95,25.00
Nil
3390,43,21.13
Nil
3390,43,21.13
3163,56,15.54
Nil
3163,56,15.54
13
a)
b)
14
Unrealised gains and losses due to changes in fair
value of listed equity shares under Fair value change a/c
Pending realisation,credit balance in Fair value
change a/c not available for distribution.
The Corporation does not have investment in 'Real Estate
Investment Property.'
15
A
Claims settled and remaining unpaid for a
period more than six months as on balance
sheet date are as under
Number of claims
Amount
B
C
1
All Significant accounting policies forming
part of the financial statements are disclosed
separately.
Deposits made in accordance with statutory
requirements are as under
a) In India- under Section 7 of the Insurance
Act 1938 ( Face Value 1000.00 lacs)
b) Outside India
2
Segregation of Investments into performing
and non-performing investments is as under
Performing(Standard) Investments
Non Performing Investments
Total Book Value(Closing Value)
3
Percentage of business sectorwise
As the corporation caters to exporters only, no such
sectors are specifically identifiable.
4
A summry of financial statements for 5 years is enclosed.
As per Annexure 2b As per Annexure 2b
5
Current
Year
Previous
Year
(` '000)
(` '000)
Various Financial Ratios (as compiled by the management)
(in the absence of specific ratios prescribed by the
authority, some of the important ratios are given.)
(Year-end unless otherwise stated)
Gross Premium
Net Premium
Net Retention Ratio (%)
(Net Premium/Gross Premium)
Growth %
1004,83,31.67
885,46,69.25
13.48%
761,55,98.94
770,94,50.96
-1.22%
75.79%
87.07%
-12.95%
Profit before Tax to Share Capital (%)
36.41
13.07
165.19%
Profit before Tax to Networth (%)
15.12
5.70
153.68%
Profit after Tax to Networth (%)
10.39
4.15
139.76%
Expenses of Management to Gross Premium (%)
13.19
17.90
-26.31%
58,20.75
21,24.98
161.03%
380,77,99.47
2082,33,96.36
2463,11,95.83
761,55,98.94
3.23
385,47,25.48
1860,17,37.73
2245,64,63.21
770,94,50.96
2.91
PBDIT to Total Employment
Technical Reserves to Net Premium
Unexpired Risks Reserve
Outstanding Claims
Total Technical Reserves
Net Premium
Ratio
-1.22%
12.79%
10.39%
-1.22%
11.04
11
12
13
14
15
16
17
18
19
20
21
22
9
10
1
2
3
4
5
6
7
8
Operating Results
Gross Premium Written
Net Premium Income
Income from Investments (Net)
Other Income
Total Income
Commission
Brokerage
Operating Expenses
Claims, Increase in Un-expired
Risk Reserve and other outgos
Profit / (Loss) before tax
Prior Period Adjustments and
Deffred tax Adjustment
Profit / (Loss) after above adjustment.
Provision for tax
Net Profit / (Loss) after tax
Paid up Equity Capital
Net Worth (End of year)
Total Assets
Yield on Total Investments (%)
Earnings Per Share
Book Value per share (Rs.)
Total Dividend ( Inclu. Div.Tax)
Dividend per share (Rs.)
(15,68,59.96)
343,40,98.83
118,20,00.00
225,20,98.83
900,00,00.00
2167,74,62.74
2167,74,62.74
8.69
25.02
2,40.86
62,76,01.50
6.00
327,72,38.87
1004,83,31.67
761,55,98.94
353,59,61.90
6,31,09.76
1121,46,70.60
(57,92,01.69)
Nil
129,88,30.30
721,78,03.12
2011-12
12,65,17.73
104,97,45.69
19,31,00.00
85,66,45.70
900,00,00.00
2062,22,27.75
2062,22,27.77
7.78
9.52
2,29.14
30,33,40.73
2.90
117,62,63.43
885,46,69.25
770,94,50.96
280,17,45.66
16,68,52.16
1067,80,48.79
(9,53,21.04)
Nil
154,38,74.08
805,32,32.32
20010-11
(34,25,55.11)
99,73,47.12
46,00,00.00
53,73,47.12
900,00,00.00
1958,94,26.87
1959,21,45.70
8.62
5.97
2,17.66
12,57,33.85
1.19
65,47,92.00
812,99,64.48
578,77,98.05
277,41,09.81
16,10,74.93
877,29,82.78
(31,56,94.54)
Nil
112,38,41.59
(677,96,08.92)
2009-10
DISCLOSURES FORMING PART OF FINANCIAL STATEMENTS
1,04,35.44
437,24,40.34
153,85,51.16
283,38,89.18
900,00,00.00
1886,21,72.23
1917,54,73.46
9.72
31.49
2,09.58
210,59,10.00
20.00
438,28,75.78
744,67,67.85
573,21,00.10
287,18,49.36
55,71,60.68
916,11,10.14
(24,76,45.11)
Nil
99,41,42.25
(403,17,37.22)
2008-09
(` '000)
21,05,06.58
750,69,90.18
271,26,84.98
479,43,05.20
900,00,00.00
1813,41,93.05
1821,90,29.22
9.83
59.31
2,01.49
192,50,19.00
18.00
771,74,96.76
668,36,62.08
477,32,79.14
277,35,61.94
4,01,37.37
758,69,78.45
(34,07,99.17)
Nil
104,47,55.53
52,45,54.48
2007-08
Annexure - 2 (b) to Schedule 17
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD
I.
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
AS PER SCHEDULE VI, PART (IV) OF THE COMPANIES ACT,1956
Annexure – 3 to Schedule 17
( ` in ‘ 000 )
Registration Details
1
0
9
1
8
Registration Number
1
State Code
Balance Sheet Date
II.
3
1
0
1
3
2
0
Capital Raised During the Year
Public Issue
N
I
L
Rights Issue
N
I
L
Bonus Issue
N
I
L
Private Placement (Govt. of India)
N
I
L
1
2
III. Position of Mobilisation and Deployment of funds
Total Liabilities
4
9
6
5
1
4
3
3
4
9
6
5
1
4
3
3
Paid up Capital
9
0
0
0
0
0
0
Reserves & Surplus*
1
2
6
7
7
4
6
Secured Loans
N
I
L
Unsecured Loans
N
I
L
0
4
Total Assets
3
Application of Funds
Net Fixed Assets
1
4
7
Investments
3
3
9
0
4
3
2
1
Net Current Assets
-
1
3
9
0
0
9
6 3
Deferred Tax Asset
2
0
Loans
IV. Performance of the Company
3
6
6
N
I
1
4
4
L
Total Income
1
1
2
6
1
5
9
Total Expenditure
7
9
8
4
3
5
8
Profit Before Tax
3
2
7
7
2
3
9
7
Profit After Tax
2
2
5
2
0
Earning Per Share (Rs.)
2
5
.
0
Dividend Rate (%)
6
.
0
0
9
9
2
V. Generic Names of Principal Products/
Services of the Company
Item Code No.
N
A
Product Description
N
A
* Includes balance in Fair Value Change Account.
(N SHANKAR)
Chairman cum Managing Director
(ARVIND MEHTA)
Director
(K R KAMATH)
Director
(V S DAS)
Director
(T C A RANGANATHAN)
Director
(NEERAJ K VERMA)
Company Secretary
As per our report of even date
For M. B. AGRAWAL & CO.
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
Place : New Delhi
Dated : 21st May 2012
For P. M. DALVI & CO.
Chartered Accountants
(MADHAV NANDGAONKAR)
Partner
INFORMATION IN RESPECT OF RATIOS FOR NON LIFE COMPANIES
Annexure 4 to Schedule 17
(Amount in ` ' 000)
Sl. No
Particular
1
Gross premium growth Rate
Total Gross Premium
Growth
Gross Premium to shareholders’ fund ratio:
31st March 2012
2
3
4
5
6
7
8
9
10
Gross Premium
Share Holders Fund (Opening)
Ratio
Growth rate of shareholders’ funds:
Share Holder Fund at the beginning of the
Year
Share Holder Fund at the end of the Year
Ratio
Net retention ratio (Net premium divided
by gross premium)
Net Premium
Gross Premium
Retention Ratio
Net commission ratio
Net Commission
Net Premium
Ratio
Expenses of Management to gross direct
premium ratio
Expenses of Management
Gross Direct Premium
Ratio
Combined ratio:
Gross Incurred Claims
Expenses of Management
Total
Gross Direct Premium
Ratio
Technical reserves to net premium ratio
Reserve for Outstanding Claims
Reserve for Un-expired Risks
Reserve for Premium Deficiency
Total
Net Premium
Ratio
Underwriting balance ratio
Underwriting Profit
Net Premium
Ratio
Operating profit ratio
Underwriting Profit
Investment Income
Others
Operating Profits
Net Premium
Ratio
31st March 2011
1004,83,31.67
13.48%
885,46,69.25
8.91%
1004,83,31.67
2062,22,27.77
885,46,69.25
1958,94,26.88
45.20%
2062,22,27.77
2167,74,62.74
1958,94,26.88
2062,22,27.77
5.27%
761,55,98.94
1004,83,31.67
770,94,50.96
885,46,69.25
48.73%
5.12%
75.79%
87.07%
(57,92,01.69)
761,55,98.94
-7.61%
(9,53,21.04)
770,94,50.96
-1.24%
132,55,58.60
1004,83,31.67
13.19%
158,45,77.64
885,46,69.25
17.90%
713,03,22.70
132,55,58.60
845,58,81.30
1004,83,31.67
620,52,71.60
158,45,77.64
778,98,49.24
885,46,69.25
84.15%
87.97%
2082,33,96.36
380,77,99.47
46,86,08.56
2509,98,04.39
761,55,98.94
329.58%
1860,17,37.72
385,47,25.48
2245,64,63.20
770,94,50.96
291.28%
17,86,59.99
761,55,98.94
(224,51,95.45)
770,94,50.96
-29.12%
17,86,59.99
353,59,61.90
6,31,09.77
377,77,31.66
761,55,98.94
(224,51,95.45)
280,17,45.66
16,68,52.16
72,34,02.37
770,94,50.96
9.38%
2.35%
49.61%
11
12
13
14
15
Liquid assets to liabilities ratio (Liquid
assets of the insurer divided by the policy
holders’ liabilities)
Liquid Assets*
Policy Holder Liabilities**
Ratio
Net Earnings Ratio:
Profit After Tax
Net Premium
Ratio
Return on net worth
Profit After Tax
Net Worth
Ratio
Actual Solvency to Required Solvency
margin Ratio
Actual Solency Margin
Required Solvency Margin
Ratio (Times)
NPA ratio
Investment:
Factoring
1061,44,96.43
2509,98,04.39
996,85,20.58
2245,64,63.20
44.39%
225,20,98.84
761,55,98.94
85,66,45.70
770,94,50.96
42.29%
29.57%
11.11%
225,20,98.84
2167,74,62.74
85,66,45.70
2062,22,27.77
4.15%
2058,36,20.00
203,88,36.30
2056,55,81.40
227,23,16.10
10.39%
10.1
9.05
0%
100%
0%
100.00%
*
Cash & Bank Balances, Short term loans & ST Investments and advances and deposits except RBI deposits
**
Reserve for un-expired risks, Provision for claims on hand, Liability towards re-insurance & Premium received in
advance
(N SHANKAR)
Chairman cum Managing Director
(ARVIND MEHTA)
Director
(K R KAMATH)
Director
( V S DAS )
Director
( T C A RANGANATHAN )
Director
`
(NEERAJ K VERMA)
Company Secretary
As per our report of even date
For M. B. AGRAWAL & CO.
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
Place : New Delhi
Dated : 21st May 2012
For P. M. DALVI & CO.
Chartered Accountants
(MADHAV NANDGAONKAR)
Partner
Total
Cheques issued but not encashed by
the policyholder/ insured
Any excess collection of the
premium / tax or any other charges
which is refundable to the
policyholders either as terms of
conditions of the policy or as per
law or as may be directed by the
Authority but not refunded so far
Sum due to the insured /
policyholders on maturity or
otherwise
Claims settled but not paid to the
policyholders / insureds due to any
reasons except under litigation from
the insured / policyholders
Particulars
1,97,02.91
29,94.45
69,40.67
97,67.79
-
Total Amount
-
42,73.44
23,74.36
3,28.75
15,70.33
1-6 months
2,245.99
2,17.15
5,83.55
14,45.29
-
7-12 months
20,37.63
1,88.36
3,96.81
14,52.46
-
13-18 months
28,76.79
33.71
13,49.47
14,93.61
-
25,66.52
21.56
10,60.46
14,84.50
-
19– 24 months 25 – 30 months
AGE-WISE ANALYSIS
1,707.54
0.61
1,46.34
15,60.59
-
31 – 36 months
39,95.01
33.35
12,68.76
26,92.90
-
Beyond 36
Months
Amount in ` ' 000
Annexure 5 to Schedule 17
Note : Cheques issued but not encashed under point no 4 above includes only the amount on account of cheques issued whose validity has expired. In respect of other cheques issued but not cleared,
the management is of the opinion that the policyholder is legally entiltled to encash the cheque anytime till the validity of cheque. Accordingly the amount of such cheques need not be
classified as unclaimed.
4
3
2
1
Sl. No
Due to Insured - Unclaimed as on 31 03 2012
Export Credit Guarantee Corporation of India Limited
Receipts & Payments Account / (Cash Flow Statement) for the year ended 31st March 2012
Registration No 124
Date of registration: 27th September 2002
(Amount in ` ‘ 000)
Particulars
A. CASH FLOW FROM OPERATING ACTIVITY
Current Year
Previous Year
1016,74,54.79
910,91,77.17
2,12,49.71
4,32,18.03
(58,57,18.06)
83,61,69.44
Income from Factoring Activity (Net)
-
21.85
Amount given to Factoring debtors
-
(8,52.10)
Amount received from Factoring debtors
-
35,73.67
(713,03,22.70)
(620,52,71.60)
(2,67,28.30)
(4,07,03.59)
(133,01,91.03)
(117,01,74.12)
Deposits, Advances & Staff Loan
1,05,80.12
2,17,22.68
Service Tax Paid
(94,75.66)
(93,65.10)
Income Tax Paid
(240,13,97.04)
(50,01,32.93)
-
-
(1,65,33.04)
(86,26.05)
169,63,59.46
137,05,17.04
39,52,78.25
344,92,74.39
Addition to Fixed Assets (including Advance payment)
(10,82,90.49)
(12,28,06.62)
Income from Investment
341,37,84.79
254,47,99.49
1933,98,80.60
1971,10,76.14
4,48.02
13,88.01
Premium received from Policyholder including Advance receipts
Other Receipts
Payments to Reinsurers net of commission and claims
Payments of Claims
Payments of Commission & Brokerage
Payments of Other Operatingexpenses
Refund of Income Tax
Other Payments/Collection (net)
Recoveries
Net Cash Flow from Operating Activities (A)
B. CASH FLOW FROM INVESTING ACTIVITIES
Sale of Investment
Sale of Assets
Purchase of Investments
(2216,81,10.66) (2460,76,37.22)
47,77,12.27
(247,31,80.21)
Receipt on issue of Share capital
-
-
Loan accepted during the year
-
8,46.68
Net Cash Flow from Investing Activities (B)
C. CASH FLOW FROM FINANCING ACTIVITIES
-
(35,65.50)
Dividend Paid
(53,10,00.00)
(10,74,69.42)
Dividend Tax
(8,61,41.48)
(1,82,64.43)
(61,71,41.48)
(12,84,52.68)
25,58,49.04
84,76,41.50
Current Year
Previous Year
Loan repaid during the year
Net Cash Flow from Financing Activities(C)
Net Cash Flow(A+B+C)
Cash and Cash equivalent
-- At the beginning of the year
As per Balance Sheet
Total (A)
876,86,18.46
792,09,76.95
876,86,18.46
792,09,76.95
902,44,67.50
876,86,18.46
902,44,67.50
876,86,18.46
(25,58,49.04)
(84,76,41.50)
-- At the end of the year
As per Balance Sheet
Total (B)
Change in Cash and Cash equivalent (A-B)
(N SHANKAR)
Chairman cum Managing Director
(ARVIND MEHTA)
Director
(K R KAMATH)
Director
(V S DAS)
Director
(T C A RANGANATHAN)
Director
(NEERAJ K VERMA)
Company Secretary
As per our report of even date
For M. B. AGRAWAL & CO.
Chartered Accountants
(HARSHAL AGRAWAL)
Partner
Place: New Delhi
Dated: 21st May 2012
For P. M. DALVI & CO.
Chartered Accountants
(MADHAV NANDGAONKAR)
Partner
MANAGEMENT REPORT AS REQUIRED IN PART IV OF SCHEDULE 'B’ OF
INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (PREPARATION OF
FINANCIAL STATEMENTS AND AUDITOR’S REPORT INSURANCE COMPANIES)
REGULATION 2002.
1. We confirm that the registration granted by the Insurance Regulatory & Development
Authority is valid during the year. The same was renewed for the year 2011-12, vide their
certificate no: 355 dated 28/02/2011.
2. We confirm that all dues payable to the statutory authorities have been duly paid / provided
for.
3. We confirm that the shareholding pattern and transfer of shares are in accordance with
statutory and regulatory requirements.
4. We confirm that the funds of the holders of policies issued in India have not been directly or
indirectly invested outside India.
5. We confirm that required solvency margins have been maintained.
6. We certify that the value of all the assets have been reviewed on the date of the Balance
Sheet and in the best of our belief the assets set forth in Balance Sheet are shown in the
aggregate amounts not exceeding their realisable or market value under several headings –
“Loans’, ‘Investments’, ‘Sundry Debtors’, ‘Cash’, and the several items specified under
‘Current Assets’.
7. The overall exposure of the Corporation is Rs. 78296,87,00.00 thousands against the
enhanced Maximum Liability of Rs 100000,00,00.00 thousands by Ministry of Commerce
vide letter dated 20.04.2009. Risk exposure of the Corporation is well within the relevant
limits stipulated by IRDA in this regard for general insurance companies.
8. We have no overseas operations.
9. Ageing of claims indicating the trend in average claims settlement time during the preceding
five years is as per details below :
Year
2011-2012
2010-2011
2009-2010
2008-2009
2007-2008
Number of Days
91
70
50
47
42
Ageing of claims outstanding during the preceding 5 years is as per details below:
Claims Pending As on 31/03/2012, FY 11 12
Period
NO
30 Days
110
30 Days to 6 Months 62
6 Months to 1 Year
6
1 year to 5 years
5 years & above
Total
178
ECIB
Amount
Involved
No
388,73,88.25 76
270,40,92.04 65
80,19,37.09
7
- - 739,34,17.38 148
Policy
Amount
Involved
No
34,71,20.02 186
84,05,95.53 127
4,32,12.69 13
123,09,28.24 326
(Rs in ‘000)
Total
Amount
Involved
423,45,08.27
354,46,87.57
84,51,49.78
862,43,45.62
Claims Pending As on 31/03/2011, FY 10 11
ECIB
Amount
Involved
No
Policy
Amount
Involved
No
(Rs in ‘000)
Total
Amount
Involved
Period
NO
30 Days
30 Days to 6
Months
6 Months to 1 Year
1 year to 5 years
5 years & above
Total
52
212,06,55.05 125
50,23,32.76 177
262,29,87.81
106
65
26
249
743,80,37.51 31
394,56,69.16 0
139,42,65.73 0
1489,86,27.45 156
27,10,28.30 137
- 65
- 26
77,33,61.06 405
770,90,65.81
394,56,69.16
139,42,65.73
1567,19,88.51
Claims Pending As on 31/03/2010, FY 09 10
Period
30 Days
30 Days to 6
Months
6 Months to 1
Year
1 year to 5 years
5 years & above
Total
NO
ECIB
Amount
Involved
70
144,93,59.43 122
59,20,43.04 192
204,14,02.47
96
457,39,34.69
70
29,46,87.52 166
486,86,22.21
166
- 22
- 9
- 602,32,94.12 223
89,81,33.51 22
48,48,27.18 9
- 226,99,91.25 389
89,81,33.51
48,48,27.18
829,29,85.37
No
Policy
Amount
Involved
(Rs in ‘000)
Total
Amount
Involved
No
Claims Pending As on 31/03/2009, FY 08 09
(Rs in ‘000)
Period
30 Days
30 Days to 6
Months
6 Months to 1
Year
1 year to 5 years
5 years & above
Total
ECIB
Policy
Total
Amount
Amount
Amount
NO Involved
No Involved
No Involved
41
73,91,56.53 135
159,50,92.11 176
233,42,48.63
78
221,79,36.33
49
49,73,08.94 127
271,52,45.28
1
120
12,68,10.00 2
- - 1
308,39,02.86 187
1,60,14.88 3
- 1,72,82.95 1
212,56,98.88 307
14,28,24.88
1,72,82.95
520,96,01.73
Claims Pending As on 31/03/2008 , FY 07 08
Period
30 Days
30 Days to 6
Months
6 Months to 1
Year
1 year to 5 years
5 years & above
Total
No
100
186,31,45.94
88
45
126,71,11.01
26
9,46,76.97
71
136,17,87.98
11
21,10,27.77
7
1,97,63.65
18
23,07,91.41
1
-
10,33.14
-
1
-
1,57.27
-
2
-
11,90.41
-
157
334,23,17.86 122
Policy
Amount
Involved
(Rs in ‘000)
Total
Amount
Involved
ECIB
Amount
NO Involved
No
33,60,63.62 188
45,06,61.50 279
219,92,09.56
379,29,79.37
10. We certify that the Investments have been valued according to the guidelines issued by
Insurance Regulatory & Development Authority.
11. All Investment assets are reviewed periodically and we confirm that there are no nonperforming assets as per Reserve bank of India Prudential Norms.
12. We hereby confirm:
a. That in preparation of financial statements, the applicable accounting standards,
principles and policies has been followed.
b. That the management has adopted accounting policies and applied them consistently,
apart from changes made as per IRDA Regulations, and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the
state of affairs of the company at the end of the financial year and of the operating
profit and net profit of the company for the year.
c. That the management has taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the applicable provisions of the
Insurance Act 1938(4 of 1938) and Companies Act 1956( 1 of 1956) for
safeguarding the assets of the company and for preventing and detecting fraud and
other irregularities.
d. That the management has prepared the financial statements on a going concern basis.
e. That the management has ensured that the internal audit system commensurate with
the size and nature of business exists and is operating effectively.
13. There are no payments made to individual firms, companies and organizations in which
directors of the company are interested except the transactions carried out in the ordinary
course of business.
For Export Credit Guarantee Corporation of India Limited
(N SHANKAR)
Chairman cum Managing Director
(K R KAMATH)
Director
Place : New Delhi
Dated : 21st May 2012
(ARVIND MEHTA)
Director
(V S DAS)
Director
(T C A RANGANATHAN)
Director