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Private and Confidential

For Private Circulation Only

For the exclusive use of ________________

For Private Circulation Only For the exclusive use of Serial No: Series No. RGICL F Series A NCD 01 Dated: July 28, 2016

Reliance General Insurance Company Limited (the “Company” or the “Issuer”)

Registered Office: 19, Reliance Centre, Walchand Hirachand Marg, Ballard Estate, Mumbai – 400 001

Phone: 022-33031000, Fax: 022- 33034662, Website: www.reliancegeneral.co.in CIN: U66603MH2000PLC128300

[Contact person: Mohan Khandekar, Company Secretary & Chief Compliance Officer Email: [email protected]]

INFORMATION MEMORANDUM OF PRIVATE PLACEMENT FOR ISSUE OF 1000 RATED, LISTED, UNSECURED, SUBORDINATED, REDEEMABLE NON-CONVERTIBLE DEBENTURES (“OFC NCDs” / “OFC DEBENTURES”), OF FACE VALUE OF RS. 10,00,000 EACH FOR CASH, AGGREGATING TO RS. 100 CRORE WITH AN OPTION TO RETAIN OVERSUBSCRIPTION AGGREGATING TO RS.130.00 CRORE ON A PRIVATE PLACEMENT BASIS (THE “ISSUE”). NEITHER THE ISSUER NOR ANY OF ITS PROMOTERS OR DIRECTORS HAS BEEN DECLARED AS A WILLFUL DEFAULTER.

RISKS IN RELATION TO ISSUE

There has been no formal market for the securities of the Issuer. No assurance can be given regarding an active or sustained trading in the securities of the Issuer or regarding the price at which the securities will be traded after listing.

GENERAL RISKS Investment in the OFC Debentures involves a degree of risk and Investors should not invest any funds in this Issue unless they can afford to take the risk of losing their entire investment if the OFC Debentures are not held till maturity or for any reason have to be sold or redeemed before the Final Redemption Date (as defined below). Before taking an investment decision, Investors must rely on their own examination of the Issuer and the offer including the risks involved. The OFC Debentures have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this document. Specific attention of Investors is invited to the statement of risk factors set out in this disclosure document of private placement in relation to the issue of OFC Debentures on private placement basis (“Information Memorandum”). This Information Memorandum has not been submitted, cleared or approved by SEBI. It should be clearly understood that the Issuer is solely responsible for the correctness, adequacy and disclosure of all relevant information herein.

ISSUER’S ABSOLUTE RESPONSIBILITY The Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that this Information Memorandum contains all information as regards the Issuer and the Issue, which is material in the context of the Issue, that the information contained in this Information Memorandum,




that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which make this Information Memorandum as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. Any person placing reliance on any other source of information would be doing so at their own risk.

CREDIT RATING

CREDIT RATING: [“CARE AA” (DOUBLE A)] by CREDIT ANALYSIS & RESEARCH LIMITED (“CARE”) for borrowings upto on aggregate amount of Rs. 230 crore., ‘’BWR AA’’ (BWR Double A) BY BRICKWORK RATINGS INDIA PRIVATE LIMITED, for borrowings upto an aggregate amount of Rs. 230 crore. The rating(s) of any Series is not a recommendation to buy, sell or hold securities and investors should take their own decisions. CARE’s and BRICKWORK’s ratings are opinions on credit quality and are not recommendations to buy sell or hold any security. CARE and BRICKWORK have based their ratings on information obtained from sources believed by them to be accurate and reliable. CARE and BRICKWORK do not, however, guarantee the accuracy, adequacy or completeness of any information and are not responsible for any errors or omissions or for the results obtained from the use of such information. Most issuers’ securities rated by CARE and BRICKWORK, have paid a credit rating fee, based on the amount and type of securities issued. The rating may be subject to revision or withdrawal at any time by the rating agency on the basis of new information. Each rating should be evaluated independently of any other rating. The rating agency has a right to suspend, withdraw the rating at any time on the basis of new information, etc.

MEMORANDUM OF PRIVATE PLACEMENT

This Information Memorandum is neither a prospectus nor a statement in lieu of a prospectus. This is only an information brochure, in the form of a single initial disclosure document, intended for private use and should not be construed to be a prospectus and/or an invitation to the public for subscription to OFC Debentures under any law for the time being in force. This Information Memorandum is in compliance with the applicable requirements of the regulatory authorities and has been prepared giving details as on March 31, 2016. The Issuer however retains the right, at its sole and absolute discretion, to change the ‘GENERAL TERMS AND CONDITIONS’.

IRDAI DISCLAIMER

The Insurance Regulatory and Development Authority of India (“IRDAI”) does not accept any responsibility or guarantee about the present position as to the financial soundness of the Company or for the correctness of any of the statements or representations made or opinions expressed by the Company and for discharge of liability by the Company.

LISTING

The above OFC NCDs of the Company are proposed to be listed on the Wholesale Debt (“WDM”) Segment of the BSE Limited (“BSE”).




REGISTRAR AND TRANSFER AGENT DEBENTURE TRUSTEE

Karvy Computershare Private Limited Unit: Reliance General Insurance Company

Limited Karvy Selenium, Tower – B

Plot No. 31 & 32, Survey No. 116/22, 115/24, 115/25

Financial District, Nanakramguda, Hyderabad 500 032

Tel : +91 40 6716 1500 Fax: +91 40 6716 1791

Email: [email protected]

IL & FS Trust Company Limited The IL & FS Financial Center,

Plot C-22, G Block, Bandra- Kurla Complex, Bandra East,

Mumbai-400051, Tel : +91 -22 -26533333 Fax : +91 -22 -26533297

RATING AGENCY RATING AGENCY

Credit Analysis and Research Ltd. Office: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai 400 022 Tel: +91 22 6754 3456 Fax: +91 22 6754 3457 Website: www.careratings.com Email: [email protected]

Brickwork Ratings India Pvt. Limited 3rd Floor, Raj Alkaa Park, 29/3 & 32/2 Kalena Agrahara, Bannerghatta Road, Bengluru 560 076 Tel : + 91 8040409940 Website: www.brickworkratings.com Email: [email protected]




ISSUE SCHEDULE

Issue Open Date : July 28, 2016

Issue Close Date : August 26, 2016

Pay-In Date(s) : From July 28, 2016 to August 26, 2016 The Company reserves the right to change the above Issue Schedule, with the understanding that the Issue Close Date / Pay-in Date may be rescheduled, at the sole discretion of the Company. The actual Issue Close Date / Pay-in Date shall be communicated to each investor in the allotment advice (“Allotment Advice”).

GENERAL DISCLAIMER THIS INFORMATION MEMORANDUM IS NEITHER A PROSPECTUS NOR A STATEMENT IN LIEU OF PROSPECTUS. THE ISSUE OF OFC DEBENTURES IN ONE OR MORE SERIES, TO BE LISTED ON THE [WDM] SEGMENT OF THE [BSE] IS BEING MADE STRICTLY ON A PRIVATE PLACEMENT BASIS. MULTIPLE COPIES HEREOF GIVEN TO THE SAME ENTITY SHALL BE DEEMED TO BE GIVEN TO THE SAME PERSON AND SHALL BE TREATED AS SUCH. IT DOES NOT CONSTITUTE AND SHALL NOT BE DEEMED TO CONSTITUTE AN OFFER OR AN INVITATION TO SUBSCRIBE TO THE OFC DEBENTURES TO THE PUBLIC IN GENERAL. APART FROM THIS INFORMATION MEMORANDUM, NO INFORMATION MEMORANDUM OR PROSPECTUS HAS BEEN PREPARED IN CONNECTION WITH THE OFFERING OF THIS ISSUE OR IN RELATION TO THE ISSUER NOR IS SUCH AN INFORMATION MEMORANDUM REQUIRED TO BE REGISTERED UNDER THE APPLICABLE LAWS. ACCORDINGLY, THIS INFORMATION MEMORANDUM HAS NEITHER BEEN DELIVERED FOR REGISTRATION NOR IS IT INTENDED TO BE REGISTERED. THIS INFORMATION MEMORANDUM HAS BEEN PREPARED TO PROVIDE GENERAL INFORMATION ABOUT THE ISSUER TO POTENTIAL INVESTORS TO WHOM IT IS ADDRESSED AND WHO ARE WILLING AND ELIGIBLE TO SUBSCRIBE TO THE OFC DEBENTURES. THIS INFORMATION MEMORANDUM DOES NOT PURPORT TO CONTAIN ALL THE INFORMATION THAT ANY POTENTIAL INVESTOR MAY REQUIRE. NEITHER DOES THIS INFORMATION MEMORANDUM NOR ANY OTHER INFORMATION SUPPLIED IN CONNECTION WITH THE OFC DEBENTURES IS INTENDED TO PROVIDE THE BASIS OF ANY CREDIT OR OTHER EVALUATION AND ANY RECIPIENT OF THIS INFORMATION MEMORANDUM SHOULD NOT CONSIDER SUCH RECEIPT A RECOMMENDATION TO PURCHASE ANY OFC DEBENTURES. EACH POTENTIAL INVESTOR CONTEMPLATING THE PURCHASE OF ANY OFC DEBENTURES SHOULD MAKE ITS OWN INDEPENDENT INVESTIGATION OF THE FINANCIAL CONDITION AND AFFAIRS OF THE ISSUER, AND ITS OWN APPRAISAL OF THE CREDITWORTHINESS OF THE ISSUER. POTENTIAL INVESTORS SHOULD CONSULT THEIR OWN FINANCIAL, LEGAL, TAX AND OTHER PROFESSIONAL ADVISORS AS TO THE RISKS AND INVESTMENT CONSIDERATIONS ARISING FROM AN INVESTMENT IN THE OFC DEBENTURES AND SHOULD POSSESS THE APPROPRIATE RESOURCES TO ANALYSE SUCH INVESTMENT AND THE SUITABILITY OF SUCH INVESTMENT TO SUCH INVESTOR’S PARTICULAR CIRCUMSTANCES.




THE INFORMATION RELATING TO THE COMPANY CONTAINED IN THIS INFORMATION MEMORANDUM IS BELIEVED BY THE COMPANY TO BE ACCURATE IN ALL RESPECTS AS OF THE DATE HEREOF. IT IS THE RESPONSIBILITY OF POTENTIAL INVESTORS TO ALSO ENSURE THAT THEY WILL SELL/TRANSFER THESE OFC DEBENTURES IN STRICT ACCORDANCE WITH THIS INFORMATION MEMORANDUM AND OTHER APPLICABLE LAWS, SO THAT THE SALE DOES NOT CONSTITUTE AN OFFER TO THE PUBLIC WITHIN THE MEANING OF THE COMPANIES ACT. NONE OF THE INTERMEDIARIES OR THEIR AGENTS OR ADVISORS ASSOCIATED WITH THIS ISSUE UNDERTAKE TO REVIEW THE FINANCIAL CONDITION OR AFFAIRS OF THE ISSUER DURING THE LIFE OF THE ARRANGEMENTS CONTEMPLATED BY THIS INFORMATION MEMORANDUM OR HAVE ANY RESPONSIBILITY TO ADVISE ANY INVESTOR OR POTENTIAL INVESTOR IN THE OFC DEBENTURES OF ANY INFORMATION AVAILABLE WITH OR SUBSEQUENTLY COMING TO THE ATTENTION OF THE INTERMEDIARIES, AGENTS OR ADVISORS. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED OR INCORPORATED BY REFERENCE IN THIS INFORMATION MEMORANDUM OR IN ANY MATERIAL MADE AVAILABLE BY THE ISSUER TO ANY POTENTIAL INVESTOR PURSUANT HERETO AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE ISSUER. THE INTERMEDIARIES AND THEIR AGENTS OR ADVISORS ASSOCIATED WITH THIS ISSUE HAVE NOT SEPARATELY VERIFIED THE INFORMATION CONTAINED HEREIN OR ANY OTHER INFORMATION (WRITTEN OR ORAL) TRANSMITTED OR MADE TO ANY POTENTIAL INVESTOR IN THE COURSE OF EVALUATION OF THE ISSUE. ACCORDINGLY, NO REPRESENTATION, WARRANTY OR UNDERTAKING, EXPRESS OR IMPLIED, IS MADE AND NO RESPONSIBILITY OR LIABILITY OR DUTY OF CARE IS OR WILL BE ACCEPTED BY ANY SUCH INTERMEDIARY AND/OR ANY OF ITS AFFILIATES AS TO THE ACCURACY, FAIRNESS OR COMPLETENESS OR OTHERWISE OF THE INFORMATION CONTAINED IN THIS INFORMATION MEMORANDUM OR ANY OTHER INFORMATION PROVIDED BY THE ISSUER. ACCORDINGLY, ALL SUCH INTERMEDIARIES ASSOCIATED WITH THIS ISSUE SHALL HAVE NO LIABILITY IN RELATION TO THE INFORMATION CONTAINED IN THIS INFORMATION MEMORANDUM OR ANY OTHER INFORMATION PROVIDED BY THE ISSUER IN CONNECTION WITH THE ISSUE. NEITHER THE SOLE ARRANGER NOR ANY OTHER INTERMEDIARIES NOR ANY OF THEIR AFFILIATES OR THEIR RESPECTIVE DIRECTORS, EMPLOYEES, OFFICERS OR AGENTS SHALL BE LIABLE FOR ANY DIRECT, INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE SUFFERED BY ANY PERSON AS A RESULT OF RELYING ON ANY STATEMENT IN OR OMISSION FROM THIS INFORMATION MEMORANDUM OR IN ANY OTHER INFORMATION OR COMMUNICATIONS MADE IN CONNECTION WITH THE OFC DEBENTURES OR THE ISSUE. THE CONTENTS OF THIS INFORMATION MEMORANDUM ARE INTENDED TO BE USED ONLY BY THOSE POTENTIAL INVESTORS TO WHOM IT IS DISTRIBUTED. IT IS NOT INTENDED FOR DISTRIBUTION TO ANY OTHER PERSON AND SHOULD NOT BE REPRODUCED OR TRANSMITTED IN ANY MANNER WHATSOEVER BY THE RECIPIENT. EACH COPY OF THIS INFORMATION MEMORANDUM AND THE APPLICATION FORM WILL BE




SERIALLY NUMBERED AND THE PERSON TO WHOM A COPY OF THE INFORMATION MEMORANDUM IS ADDRESSED WOULD ALONE BE ENTITLED TO APPLY FOR THE OFC DEBENTURES. NO INVITATION IS BEING MADE TO ANY PERSONS OTHER THAN THOSE TO WHOM APPLICATION FORMS ALONG WITH THIS INFORMATION MEMORANDUM HAVE BEEN ADDRESSED. ANY APPLICATION BY A PERSON TO WHOM THE INFORMATION MEMORANDUM AND/OR THE APPLICATION FORM HAS NOT BEEN ADDRESSED BY THE ISSUER SHALL NOT BE ELIGIBLE TO INVEST IN THE ISSUE AND SUCH APPLICATION SHALL BE REJECTED WITHOUT ASSIGNING ANY REASON. THE PERSON WHO IS IN RECEIPT OF THIS INFORMATION MEMORANDUM MUST MAINTAIN UTMOST CONFIDENTIALITY REGARDING THE CONTENTS OF THIS INFORMATION MEMORANDUM AND MUST NOT REPRODUCE, REPLICATE, TRANSMIT OR DISTRIBUTE IN WHOLE OR PART OR MAKE ANY ANNOUNCEMENT IN PUBLIC OR TO A THIRD PARTY REGARDING ITS CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT OF THE ISSUER. NOTWITHSTANDING THE FOREGOING, A OFC DEBENTURE HOLDER MAY PROVIDE THIS INFORMATION MEMORANDUM TO A POTENTIAL INVESTOR FOR THE SOLE PURPOSE OF TRANSFERRING THE OFC DEBENTURES. EACH PERSON RECEIVING THIS INFORMATION MEMORANDUM ACKNOWLEDGES THAT: SUCH PERSON HAS BEEN AFFORDED AN OPPORTUNITY TO REQUEST AND TO

REVIEW AND HAS RECEIVED AND REVIEWED THIS INFORMATION MEMORANDUM AND ALL ADDITIONAL INFORMATION CONSIDERED BY SUCH PERSON TO BE NECESSARY TO VERIFY THE ACCURACY OF OR TO SUPPLEMENT THE INFORMATION HEREIN; AND

SUCH PERSON HAS NOT RELIED ON ANY INTERMEDIARY THAT MAY BE ASSOCIATED WITH THE ISSUANCE OF THE OFC DEBENTURES IN CONNECTION WITH ITS INVESTIGATION OF THE ACCURACY OF SUCH INFORMATION OR ITS INVESTMENT DECISION.

THE ISSUER DOES NOT UNDERTAKE TO UPDATE THE INFORMATION MEMORANDUM TO REFLECT SUBSEQUENT EVENTS AFTER THE DATE OF THE INFORMATION MEMORANDUM AND, THUS, IT SHOULD NOT BE RELIED UPON WITH RESPECT TO SUCH SUBSEQUENT EVENTS WITHOUT FIRST CONFIRMING ITS ACCURACY WITH THE ISSUER. NEITHER THE DELIVERY OF THIS INFORMATION MEMORANDUM NOR ANY SALE OF OFC DEBENTURES MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CONSTITUTE A REPRESENTATION OR CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE HEREOF. THIS INFORMATION MEMORANDUM DOES NOT CONSTITUTE, NOR MAY IT BE USED FOR OR IN CONNECTION WITH, AN OFFER OR SOLICITATION BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT AUTHORIZED OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER OR SOLICITATION. NO ACTION IS BEING TAKEN TO PERMIT AN OFFERING OF THE OFC DEBENTURES OR THE DISTRIBUTION OF THIS INFORMATION MEMORANDUM IN ANY JURISDICTION WHERE SUCH ACTION IS REQUIRED. THE DISTRIBUTION OF THIS INFORMATION MEMORANDUM AND THE OFFERING AND SALE OF THE OFC DEBENTURES MAY BE RESTRICTED BY LAW IN CERTAIN JURISDICTIONS.




PERSONS INTO WHOSE POSSESSION THIS INFORMATION MEMORANDUM COMES ARE REQUIRED TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS.

ELIGIBILITY OF THE ISSUER TO COME OUT WITH THE ISSUE THE ISSUER AND ITS DIRECTORS HAVE NOT BEEN PROHIBITED FROM ACCESSING THE CAPITAL MARKET UNDER ANY ORDER OR DIRECTIONS PASSED BY SEBI.

DISCLAIMER CLAUSE OF SEBI AND THE STOCK EXCHANGE AS REQUIRED, A COPY OF THE INFORMATION MEMORANDUM FOR ISSUE OF OFC DEBENTURES PURSUANT TO THIS INFORMATION MEMORANDUM AGGREGATING UP TO RS. 100 CRORE ON PRIVATE PLACEMENT BASIS IS BEING FILED WITH THE WDM SEGMENT OF THE BSE IN TERMS OF SEBI (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008 AS AMENDED BY THE SEBI (ISSUE AND LISTING OF DEBT SECURITIES) (AMENDMENT) REGULATIONS, 2012 AS AMENDED FROM TIME TO TIME; THE COMPANIES ACT, 2013 AND APPLICABLE REGULATIONS ISSUED BY THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA. AS PER THE PROVISIONS OF THE SEBI DEBT REGULATIONS, A COPY OF THIS INFORMATION MEMORANDUM HAS NOT BEEN FILED WITH OR SUBMITTED TO SEBI. HOWEVER, IN COMPLIANCE WITH THE COMPANIES ACT, 2013 AND THE COMPANIES (PROSPECTUS AND ALLOTMENT OF SECURITIES) RULES, 2014, WE WILL SUBMIT A COPY OF THIS INFORMATION MEMORANDUM TO SEBI WITHIN A PERIOD OF 30 DAYS OF ITS CIRCULATION. IT IS DISTINCTLY UNDERSTOOD THAT THIS INFORMATION MEMORANDUM SHOULD NOT IN ANY WAY BE DEEMED OR CONSTRUED TO HAVE BEEN APPROVED OR VETTED BY SEBI. SEBI DOES NOT TAKE ANY RESPONSIBILITY EITHER FOR THE FINANCIAL SOUNDNESS OF ANY SCHEME OR THE PURPOSE FOR WHICH THE ISSUE IS PROPOSED TO BE MADE OR FOR THE CORRECTNESS OF THE STATEMENTS MADE OR OPINIONS EXPRESSED IN THIS INFORMATION MEMORANDUM. IT IS TO BE DISTINCTLY UNDERSTOOD THAT SUBMISSION OF THE INFORMATION MEMORANDUM TO THE BSE SHOULD NOT IN ANY WAY BE DEEMED OR CONSTRUED TO MEAN THAT THE INFORMATION MEMORANDUM HAS BEEN CLEARED OR APPROVED BY BSE; NOR DOES IT IN ANY MANNER WARRANT, CERTIFY OR ENDORSE THE CORRECTNESS OR COMPLETENESS OF ANY OF THE CONTENTS OF THIS INFORMATION MEMORANDUM, NOR DOES IT WARRANT THAT THIS ISSUER’S SECURITIES WILL BE LISTED OR WILL CONTINUE TO BE LISTED ON THE BSE; NOR DOES IT TAKE ANY RESPONSIBILITY FOR THE FINANCIAL OR OTHER SOUNDNESS OF THE ISSUER, ITS PROMOTERS, ITS MANAGEMENT OR ANY SCHEME OR PROJECT OF THE ISSUER. THE ISSUER HAS CERTIFIED THAT THE DISCLOSURES MADE IN THIS INFORMATION MEMORANDUM ARE ADEQUATE AND IN CONFORMITY WITH SEBI DEBT REGULATIONS IN FORCE FOR THE TIME BEING. THIS REQUIREMENT IS TO FACILITATE INVESTORS TO TAKE AN INFORMED DECISION FOR MAKING INVESTMENT IN THE PROPOSED ISSUE.

DISCLAIMER IN RESPECT OF JURISDICTION




ISSUE OF THESE OFC DEBENTURES WILL BE MADE IN INDIA TO INVESTORS AS SPECIFIED UNDER CLAUSE “CATEGORIES OF INVESTORS” OF THIS INFORMATION MEMORANDUM, WHO HAVE BEEN/SHALL BE SPECIFICALLY APPROACHED BY THE ISSUER. THIS INFORMATION MEMORANDUM IS NOT TO BE CONSTRUED OR CONSTITUTED AS AN OFFER TO SELL OR AN INVITATION TO SUBSCRIBE TO OFC DEBENTURES OFFERED HEREBY TO ANY PERSON TO WHOM IT IS NOT SPECIFICALLY ADDRESSED. THE OFC DEBENTURES ARE GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE EXISTING INDIAN LAWS. ANY DISPUTE ARISING IN RESPECT THEREOF WILL BE SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE COURTS AND TRIBUNALS OF MUMBAI. Definitions / Abbreviations/ Terms Used Articles of Association Articles of Association of Reliance General Insurance Company Limited

(RGICL) Board of Directors Board of Directors of RGICL BSE BSE Limited Certificate of Registration

The Certificate of Registration obtained from the Insurance Regulatory and Development Authority of India under Sec. 3 read with section 3A of Insurance Act, 1938

Company / Issuer Reliance General Insurance Company Limited (“RGICL”) Companies Act Companies Act, 1956, as amended (without reference to the sections

thereof that have ceased to have effect upon notification of sections of the Companies Act, 2013) (“Companies Act, 1956”) read with the applicable provisions of the Companies Act, 2013, to the extent notified and in effect (the “Companies Act, 2013”), and together with the Companies Act, 1956, the “Companies Act”)

Subordinated Debt “Subordinated Debt” means Debentures as defined as per Section 2(30) of the Companies Act, 2013. The “debenture” includes debenture stock, bonds or any other instrument of a Company evidencing a debt, whether constituting a charge on the assets of the Company or not; and it shall also satisfy the criteria laid down in the Regulations as prescribed by IRDAI (Other forms of Capital), Regulations, 2015. The claims of the holders of the subordinated debt shall be superior to the claims of the investors in preference shares and equity shares in that order but shall be subordinated to the claims of the policyholders and all other creditors. Further, the subordinated debt shall neither be secured nor covered by a guarantee of the Insurer or other arrangements that legally enhance the seniority of the claims as against the claims of the insurer’s policyholders and creditors

Other forms of Capital Means the following instruments issued by an Insurer as defined in the IRDAI (Other forms of Capital), Regulations, 2015

a. Preference Share Capital b. Subordinated debts

OFC Debentures / OFC Debt Instruments / OFC NCDs

Rated, Listed, Unsecured, Subordinated Redeemable, Non- Convertible Debentures issued / proposed to be issued pursuant to this Information Memorandum

Debenture Holders Persons who are for the time being holders of the Debentures and whose names are last mentioned in the OFC Debentures / Debenture Register




and shall include Beneficiaries. Debenture Trustee Agreement

Shall mean the debenture trustee agreement between the issuer and IL&FS Trust Company Limited (“Debenture Trustee”)

Debenture Trustee IL & FS Trust Company Limited Depository NSDL DP Depository Participant as defined under the Depositories Act, 1956 FY Financial Year GIC General Insurance Companies INR / Rs. / Rupees Currency of Republic of India Investors Those persons who fall under the category of eligibility to whom this

Information Memorandum may be sent with a view to offering the OFC Debentures on private placement basis.

Issue The issue of 1000 Rated, Listed, Unsecured, Subordinated, Redeemable Non Convertible OFC Debentures of Rs. 10,00,000/- (Rupees Ten Lakh Only) each aggregating to Rs. 100 crore on a private placement basis.

Issuer Group The Issuer or any of its affiliate, associate, holding, subsidiary or group entities.

Letter of Allotment Letter addressed by or on behalf of the Issuer to an Investor stating therein, inter-alia that the Investor’s application has been accepted for allotment for the number of OFC Debentures mentioned in such advice and the application money paid by it has been accordingly adjusted towards payment of the allotment money on the number of OFC Debentures being allotted to it.

Memorandum Memorandum of Association of the Company. MCA Ministry of Corporate Affairs, Government of India. NSDL National Securities Depository Limited OFC Other Forms of Capital IRDAI Insurance Regulatory and Development Authority of India IRDAI Directions Insurance Regulatory and Development Authority of India (Other Forms of

Capital) Regulations, 2015 dated 13th November, 2015 RTA Registrar and Transfer Agent SEBI Securities and Exchange Board of India SEBI Debt Regulations SEBI (Issue and Listing of Debt Securities) Regulations, 2008 as

amended by the SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2012 as amended from time to time

Summary Tem Sheet/ Term Sheet

The Term Sheet/ Terms and Conditions of the OFC Debentures/ OFC NCDs as mentioned in point (r) titled “Details of debt securities issued and sought to be listed including face value, nature of debt securities mode of issue i.e private placement” under the heading “Corporate Structure” in this Information Memorandum.

WDM Wholesale Debt Segment of BSE Limited Wilful Defaulter Wilful Defaulter means an issuer who is categorized as a wilful defaulter

by any bank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India and includes an issuer whose director or promoter is categorized as such.




FORM NO. PAS-4 PRIVATE PLACEMENT OFFER LETTER

[Pursuant to Section 42 of Companies Act, 2013 and Rule 14(1) of Companies (Prospectus and Allotment of Securities) Rules, 2014]

The table below sets out the disclosure requirements as provided in PAS-4 and the relevant pages in this Information Memorandum where these disclosures, to the extent applicable, have been provided.

Sr. No.

Particulars Page No.

1. GENERAL INFORMATION

a. Name, address, website and other contact details of the company indicating both registered office and corporate office;

19

b. Date of incorporation of the company; 26

c. Business carried on by the company and its subsidiaries with the details of branches or units, if any;

21

d. Brief particulars of the management of the company; 28 e. Names, addresses, DIN and occupations of the directors; 23 f. Management’s perception of risk factors; 14

g.

Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of –

(i) statutory dues; NIL (ii) debentures and interest thereon; NIL

(iii) deposits and interest thereon; NIL

(iv) loan from any bank or financial institution and interest thereon. NIL

h. Names, designation, address and phone number, email ID of the nodal/ compliance officer of the company, if any, for the private placement offer process;

19

2. PARTICULARS OF THE OFFER

a. Date of passing of board resolution; 30

b. Date of passing of resolution in the general meeting, authorizing the offer of securities;

c. Kinds of securities offered (i.e. whether share or debenture) and class of security;

d. Price at which the security is being offered including the premium, if any, alongwith justification of the price;

e. Name and address of the valuer who performed valuation of the security offered;

f. Amount which the company intends to raise by way of securities; g. Terms of raising of securities:




Sr. No.


(a) duration; (b) rate of dividend; (c) rate of interest; (d) mode of payment; (e) repayment; 30

h. Proposed time schedule for which the offer letter is valid; i. Purposes and objects of the offer;

j. Contribution being made by the promoters or directors either as part of the offer or separately in furtherance of such objects;

k. Principle terms of assets charged as security, if applicable;

3. DISCLOSURES WITH REGARD TO INTEREST OF DIRECTORS, LITIGATION ETC.

a. Any financial or other material interest of the directors, promoters or key managerial personnel in the offer and the effect of such interest in so far as it is different from the interests of other persons.

NIL

b.

details of any litigation or legal action pending or taken by any Ministry or Department of the Government or a statutory authority against any promoter of the offeree company during the last three years immediately preceding the year of the circulation of the offer letter and any direction issued by such Ministry or Department or statutory authority upon conclusion of such litigation or legal action shall be disclosed

64

c. Remuneration of directors (during the current year and last three financial years);

25

d. Related party transactions entered during the last three financial years immediately preceding the year of circulation of offer letter including with regard to loans made or, guarantees given or securities provided

Annexure 6

e.

Summary of reservations or qualifications or adverse remarks of auditors in the last five financial years immediately preceding the year of circulation of offer letter and of their impact on the financial statements and financial position of the company and the corrective steps taken and proposed to be taken by the company for each of the said reservations or qualifications or adverse remark

NIL

f.

Details of any inquiry, inspections or investigations initiated or conducted under the Companies Act or any previous company law in the last three years immediately preceding the year of circulation of offer letter in the case of company and all of its subsidiaries. Also if there were any prosecutions filed (whether pending or not) fines imposed, compounding of offences in the last three years immediately preceding the year of the offer letter and if so, section-wise details thereof for the company and all of its subsidiaries

NIL

g. Details of acts of material frauds committed against the company in the Annexure III




Sr. No.


last three years, if any, and if so, the action taken by the company.

4. FINANCIAL POSITION OF THE COMPANY

a. The capital structure of the company in the following manner in a tabular form-

22

the authorised, issued, subscribed and paid up capital (number of securities, description and aggregate nominal value);

(b) size of the present offer; (c) paid up capital

(A) after the offer; Not Applicable (B) after conversion of convertible instruments (if applicable) Not Applicable

(d) share premium account (before and after the offer) Not Applicable

(ii) a.

the details of the existing share capital of the issuer company in a tabular form, indicating therein with regard to each allotment, the date of allotment, the number of shares allotted, the face value of the shares allotted, the price and the form of consideration

22

Provided that the issuer company shall also disclose the number and price at which each of the allotments were made in the last one year preceding the date of the offer letter separately indicating the allotments made for considerations other than cash and the details of the consideration in each case;

22

b. Profits of the company, before and after making provision for tax, for the three financial years immediately preceding the date of circulation of offer letter;

Annexure VII

c. Dividends declared by the company in respect of the said three financial years; interest coverage ratio for last three years (Cash profit after tax plus interest paid/interest paid)

Not Applicable

A summary of the financial position of the company as in the three audited balance sheets immediately preceding the date of circulation of offer letter;

65

Audited Cash Flow Statement for the three years immediately preceding the date of circulation of offer letter;

66

Any change in accounting policies during the last three years and their effect on the profits and the reserves of the company.

66

DECLARATIONS BY THE DIRECTORS 54 Approval Letter from IRDAI 73




RISK FACTORS

Data contained throughout the Information Memorandum has been supplied by the Company and the same has not been verified from any independent sources (including the original source documents). This data is the responsibility of the Company alone. Its accuracy and completeness cannot be guaranteed and its reliability cannot be assured. Although the legal advisors and all intermediaries associated with this Information Memorandum believe that the data used herein is correct, complete and reliable, in absence of independent verification, neither the Legal Advisors nor any of the intermediaries are or can be held responsible for the correctness, completeness or the adequacy of the data contained herein. The Issuer believes that the following factors may affect its ability to fulfill its obligations under the OFC Debentures issued under the Information Memorandum. All of these factors are contingencies which may or may not occur and the Issuer is not in a position to express a view on the likelihood of any such contingency occurring. In addition, certain factors which are material for the purpose of assessing the market risks associated with OFC Debentures issued under the Information Memorandum are also described below. The Issuer believes that the factors described below represent the principal risks inherent in investing in OFC Debentures issued under the Information Memorandum, but the inability of the Issuer, as the case may be, to pay interest, or other amounts on or in connection with any OFC Debentures may occur for other reasons and the Issuer does not represent that the statements below regarding the risks of holding any OFC Debentures are exhaustive. Prospective investors should also read the detailed information set out elsewhere in this Information Memorandum and reach their own views prior to making any investment decision. The OFC Debentures are sophisticated instruments, can involve a high degree of risk and are intended for sale only to those Investors capable of understanding the risks entailed in such instruments. Potential investors are strongly recommended to consult with their financial, legal, tax and other professional advisors before making any investment decision. The following are the risks envisaged by the management and Investors should consider the following risk factors carefully for evaluating the Company and its business before making any investment decision. Unless the context requires otherwise, the risk factors described below apply to the Company only. The risks have been quantified wherever possible. If any one of the following stated risks actually occur, the Company’s business, financial conditions and results of operations could suffer and therefore the value of the Company’s debt securities could decline. Note: The risk factors herein are not exhaustive and unless specified or quantified in the relevant risk

factors, the Company is not in a position to quantify the financial or other implications of any risk mentioned hereinbelow:




PROSPECTIVE INVESTORS ARE ADVISED TO CAREFULLY READ THESE KEY RISKS ASSOCIATED WITH THE OFC DEBENTURES. THESE RISKS ARE NOT, AND ARE NOT INTENDED TO BE, A COMPLETE LIST OF ALL RISKS AND CONSIDERATIONS RELEVANT TO THE OFC DEBENTURES OR YOUR DECISION TO PURCHASE THE DEBENTURES. THIS INFORMATION MEMORANDUM IS NOT, AND DOES NOT PURPORT TO BE, INVESTMENT ADVICE. (a) Uncertain Trading Markets and liquidity risk

Investors should be prepared to hold the OFC Debentures until maturity as Investors may not be able to liquidate or sell some or all of the OFC Debentures as and when they require or at an amount equal to or more than the invested amount. There is currently no active or liquid secondary trading market for these OFC Debentures. The Company cannot assure Debenture Holders that a trading market for their OFC Debentures will ever develop or be maintained. Many factors independent of the creditworthiness of the Company affect the trading market of the OFC Debentures. These factors include: (i) the complexity and volatility of the formula or other basis of reference applicable to

the OFC Debentures,

(ii) the method of calculating the principal, premium and coupon, if any, or other consideration, if any, in respect of the OFC Debentures,

(iii) the time remaining to the maturity of the OFC Debentures, (iv) the outstanding amount of the OFC Debentures, (v) the redemption features of the OFC Debentures,

(vi) the amount of other debt securities linked to the formula or other basis of reference applicable to the OFC Debentures,

(vii) the general political and economic conditions prevailing in India; (viii) the global macroeconomic scenario; and (ix) the level, direction and volatility of market interest rates generally.

(b) There can be no assurance that anyone intends to make a market in the OFC Debentures, or

that if anyone does so, that they will continue to do so, or that a market-maker in the OFC Debentures (if any) will offer an amount equal to or greater than the invested amount, or that if a market-maker does offer a price for the OFC Debentures which is equal to or greater than the invested amount, that it will continue to do so. Further, the transfer of the OFC Debentures can only be made in accordance with the relevant transfer and selling restrictions set out herein. This may further limit the liquidity of the OFC Debentures. Debenture Holders may not be able to sell such OFC Debentures readily or at prices that will enable them to realize their anticipated yield. Therefore, it may be difficult to liquidate or sell the OFC Debentures before maturity, or if liquidated/sold, investors may only realize an amount that is at a significant discount to the invested amount. As there is no liquid market for the OFC Debentures, it may be difficult to obtain reliable information about the value of the OFC Debentures and the extent of the risks to which it is exposed. While the Company intends under ordinary market conditions to indicate and/or procure indication of prices for any such OFC Debentures there can be no assurance as to the prices that would be indicated or that the Company will offer and/or cause to purchase any OFC Debentures. The price given, if any, will be affected by many factors including, but not limited to, the remaining term and




outstanding Principal Amount of the OFC Debentures and fluctuations in interest rates and/or in exchange rates and credit spreads. No Investor should purchase OFC Debentures unless such investor understands and is able to bear the risk that such OFC Debentures may not be readily saleable, that the value of such OFC Debentures will fluctuate over time.

(c) Leverage Risk Borrowing capital to fund the purchase of the OFC Debentures (leveraging) can significantly increase the risks of the investment such that if the value of the OFC Debentures decreases on a mark to market basis, leveraging will magnify that decrease in value. Any statement on the potential risks and return on the OFC Debentures does not take into account the effect of any leveraging. Investors must factor in and consider the potential impact of, amongst other things, the cost of funding and possibility of margin calls due to a decrease in the daily mark to market value of the OFC Debentures prior to their maturity. Investors considering borrowing capital to leverage their investment in the OFC Debentures should obtain further detailed information as to the applicable risks from their lender.

(d) Interest Rate Risk of the OFC Debentures

Investors are exposed to the movement of interest rates whenever their OFC Debentures are redeemed, tendered or sold prior to maturity. Movements in interest rates will have an impact upon the value of the Debentures. As interest rates move upwards, the value of the OFC Debentures generally falls. Moreover, the longer the tenor of the OFC Debentures, the more sensitive the OFC Debentures will be to interest rate changes.

(e) Compounding of Risks An investment in the OFC Debentures involves multiple risks and such investment should only be made after assessing the direction, timing and magnitude of potential future changes in the value of the applicable interest rates, etc., the risks associated with such investments and the terms and conditions of the OFC Debentures. More than one risk factor may have simultaneous effects with regard to the OFC Debentures such that the effect of a particular risk factor may not be predictable. In addition, more than one risk factor may have a compounding effect, which may not be predictable. No assurance can be given as to the effect that any combination of risk factors may have on the value of the OFC Debentures.

(f) The secondary market for the OFC Debentures may be non-existent or the OFC Debentures may be illiquid. The OFC Debentures may be very illiquid and no secondary market may develop in respect thereof. Even if there is a secondary market for the OFC Debentures, it is not likely to provide significant liquidity. Any such OFC Debenture so purchased may be required to be held or resold or surrendered for cancellation. To the extent that an issue of OFC Debentures becomes illiquid, an Investor may have to hold the OFC Debenture until redemption to realize value.

Under the terms and conditions of the OFC Debentures, the Company or its affiliates may purchase OFC Debentures at such times, in such manner and for such consideration as they may deem appropriate. Such OFC Debentures may be resold or surrendered for cancellation, or held and then resold or surrendered for cancellation, and, if cancelled, may not be reissued by the Company, all at such time and in such manner as it may deem appropriate. Investors




should not therefore make any assumption as to the number of OFC Debentures in issue at any one time or in the future.

Internal Risk Factors (a) Debenture Redemption Reserve Debenture Redemption Reserve shall be created for the present issue of OFC NCDs. (b) Business/ Insurance Risk

The Company is exposed to the risk of incurring business losses as a result of premium rates charged not being sufficient to pay the claims due to adverse changes in morbidity, due to happening of any catastrophic incident/large claims etc. The Company has reliable pricing and reserving mechanism in place based on actuarial assumptions and company further mitigates Insurance risk by implementing adequate reinsurance program.

(c) Credit Risk

The Company is exposed to credit risk as a result of counterparty/ reinsurer failing to meet its contractual obligations. The Company has an investment policy and ensures that all investment guidelines as mandated by IRDAI are adhered to. Further the Company monitors the reinsurer rating migration on regular basis to track the credit worthiness of the reinsurer.

(d) Market Risk Investment portfolio of the Company is exposed to Market Risk resulting from fluctuations in interest rates, market price of investments, & liquidity conditions. The Company has an investment policy in place and all investments are made as mandated by IRDAI. The Company constantly monitors the performance of the Investment Portfolio by tracking key risk indicators like fixed income portfolio duration etc.

(e) Operational and Systems Risk

The Company is faced with operational and systems risks, which may arise as a result of various factors like inadequate internal processes, systems, external events, frauds, lack of training and employee errors. Further, there can also be a strike, lock-out, an obligation of the Company becoming illegal or impossible in whole or in part, or any breakdown, failure or malfunction beyond the control of the Company of any telecommunication or computer system including, without limitation unavailability of any communication system, systems outages breakdowns, breach or virus in the processes or payment and delivery mechanism, security risk in terms of handling information technology related products which involve risks like computer hacking, unauthorised access to computer data and storage devices, computer crashes, data loss, breach of confidentiality, network security, etc. Further to mitigate operational risk the Company has policies for various key & support functions specifically relating to Business Continuity Plan, Outsourcing Policy, Employee Handbook, Information Security Policy, Anti Fraud Policy & Code of Conduct.

(f) Legal/Compliance Risk

Legal/Compliance risk arises from failure to enact appropriate policies, procedures, or controls to ensure it conforms to laws, regulations, contractual arrangements, and other legally binding agreements and requirements. The Company ensure compliance to all regulatory requirements applicable to it.




(g) Contingent Liabilities

Company’s contingent liabilities could adversely affect its financial condition. As on March 31, 2016, Company has contingent liabilities of Rs. 13.11 crore.

(h) Solvency As per the IRDAI Regulation, Issuer is required to maintain solvency of 1.50 times. As on March 31, 2016 the Company has solvency of 1.55 times. The interest/ coupon payable on the OFC Debentures/ OFC NCDs will be in accordance with the provisions contained in the IRDAI (Other forms of Capital), Regulations, 2015

(i) Credit Risk of Issuer While, the repayment of sums due at maturity is provided by the Issuer, Investors should be aware that receipt of any coupon payment and Principal Amount at maturity on the OFC Debentures is subject to the credit risk of the Issuer. Investors assume the risk that the Company will not be able to satisfy their obligations under the OFC Debentures and Investor may or may not recover all or part of the Principal Amount in case of default by the Issuer. Any stated credit rating of the Company reflects the independent opinion of the referenced rating agency as to the creditworthiness of the rated entity but is not a guarantee of credit quality of the Company. Any downgrading of the credit ratings of the Company or its parent or affiliates, by any rating agency could result in a reduction in the value of the OFC Debentures. In the event that bankruptcy proceedings or composition, scheme of arrangement or similar proceedings to avert bankruptcy are instituted by or against the Company, the payment of sums due on the OFC Debentures may be substantially reduced or delayed.

External Risk Factors (i) Regulatory Risk – Material Changes In Regulations To Which The Company Is Subject

Could Cause The Company’s Business To Suffer RGICL is subject to detailed supervision and regulation by the IRDAI. In addition, the Company is subject to changes in Indian law, as well as to changes in government regulations, policies and accounting principles. Any changes in the regulatory framework affecting RGIC as mandated by IRDAI could adversely affect the profitability of the Company or its future financial performance, by requiring a restructuring of its activities, increasing costs or otherwise.

(ii) Competition Risk Despite increasing competition, the Company has already established a strong presence in the General Insurance Industry. Currently, the business operation of the Company focuses on General Insurance Business. The management believes that the Company’s brand equity, reach and strategic alliances along with its resource base would provide the necessary strength to perform well in a competitive market.

(iii) Economic Slowdown in India

The Company’s performance and the quality and growth of its assets are necessarily dependent on the overall growth of the Indian economy. A slowdown in the Indian economy




could adversely affect its business, including its ability to grow its business and market share and its ability to implement its strategy. India’s economy could be adversely affected by a general down trend in the Global economy.

(iv) Catastrophic Risk & other External factors

The Company is in the business of providing General Insurance products. The overall demand for the Company’s products is linked to the macroeconomic parameters like GDP growth, capital markets and liquidity. Any adverse movement on these factors will have an adverse impact on the business of the Company. The performance may also be affected by political and economic developments and natural disasters like earthquakes, flood, drought, act of God, etc. These events may lead to huge claims which may have an impact on its financial results and Solvency margin of the company.

(v) Political instability or changes in the government could delay further liberalization of

the Indian economy and adversely affect economic conditions in India generally, which could impact the Company’s financial results and prospects Since 1991, successive Indian governments have pursued policies of economic liberalization. The role of the central and state governments in the Indian economy as producers, consumers and regulators has remained significant. The leadership of India has changed a number of times since 1991. The current central government, which came to power in May 2014, is led by the Bharatiya Janata Party in coalition with several political parties. Although the current government has announced policies and taken initiatives that support the economic liberalization policies that have been pursued by previous governments, the rate of economic liberalization may be affected by the coalition nature of the government. If there was to be any slowdown in the economic liberalisation, or a reversal of steps already taken, it could have an adverse effect on the Company’s business. Financial difficulties and other problems in certain financial institutions in India could cause the Company’s business to suffer. The Company is exposed to the risks of the Indian financial system, which in turn may be affected by financial difficulties, trends and problems faced by certain Indian financial institutions.

(vi) Terrorist Attacks, Civil Unrest And Other Acts Of Violence Or War Involving India And

Other Countries Could Adversely Affect The Company’s Business Terrorist attacks and other acts of violence or war may negatively affect the Indian markets and may also adversely affect the worldwide financial markets. These acts may also result in a loss of business confidence. In addition, adverse social, economic and political events in India could have a negative impact on the Company. Such incidents could also create a greater perception that investment in Indian companies involves a higher degree of risk and could have an adverse impact on the Company’s business.

(vii) Market Risk (Product Demand) and Force Majeure Events

The Company is in the business of providing General Insurance products and services. The overall demand for the Company’s products is linked to the macroeconomic parameters like GDP growth and other macroeconomic factors. Any adverse movement on these factors will have an adverse impact on the business of the Company. The performance may also be affected by political and economic developments and natural disasters like earthquakes,




flood, drought, act of God, etc. These events may lead to huge claims which may have an impact on its financial results.

(viii) Legality of Purchase

A prospective Investor of the OFC Debentures will be responsible for the lawfulness of the acquisition of the OFC Debentures, whether under the laws of the jurisdiction of its incorporation or the jurisdiction in which it operates or for compliance by that prospective Investor with any law, regulation or regulatory policy applicable to it.

(ix) Taxation

Each Debenture Holder will assume and be solely responsible for any and all taxes of any jurisdiction or governmental or regulatory authority, including, without limitation, any state or local taxes or other like assessment or charges that may be applicable to any payment to it in respect of the OFC Debentures. The Issuer will not pay any additional amounts to Debenture Holders to reimburse them for any tax, assessment or charge required to be withheld or deducted by the Issuer from payments in respect of the OFC Debentures.

i. Other Information about the Issuer 1 Name and address of the registered office of the Issuer Reliance General Insurance Company Limited

Registered Office: 19, Reliance Centre, Walchand Hirachand Marg, Ballard Estate, Mumbai – 400 001Phone: 022-33031000 Fax: 022- 33034662 Website: www.reliancegeneral.co.in

2 Name and address of the corporate office of the Issuer Reliance General Insurance Company Limited

Corporate Office: Reliance Centre, South Wing, 4th Floor, Off. Western Express Highway, Mumbai – 400 055

3 Name and address of Compliance officer of the Issuer Mr. Mohan Khandekar - Company Secretary & Chief Compliance Officer

Reliance Centre, South Wing, 4th Floor, Off. Western Express Highway, Mumbai – 400 055 Phone: 022-33031000 Email: [email protected]

4 Name and address of the CFO of the Issuer Mr. Hemant Jain – Chief Financial Officer

Reliance Centre, South Wing, 4th Floor, Off. Western Express Highway, Mumbai – 400 055 Phone: 022-33031000 Email: [email protected]




5 6

Name and address of the Arrangers of the Issue N.A. Name of the Debenture Trustee of the Issue

IL & FS Trust Company Limited The IL & FS Financial Center, Plot C-22, G Block, Bandra- Kurla Complex, Bandra East, Mumbai-400051.

7 Name of the Registrar of the Issue Karvy Computershare Private Limited

Karvy Selenium, Tower – B, Plot No. 31 & 32, Survey No. 116/22, 115/24, 115/25, Financial District, Nanakramguda, Hyderabad 500 032

8 Name of the Credit Rating Agencies of the Issue Credit Analysis & Research Limited

4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai 400 022 Brickwork Ratings India Private Limited 3rd Floor, Raj Alkaa Park, 29/3 & 32/2, Kalena Agrahara, Bannerghatta Road, Bengluru 560

9 Name of the Auditors of the Issuer a Pathak H.D. & Associates

814-815, Tulsiani Chambers 212 Nariman Point Mumbai 400 020

b Singhi & Co B2, 402B, Marathon Innova, Off Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013




Summary of the business of the Issuer.

Overview of the Company Reliance General Insurance Company Limited (“RGICL”) is a public limited company engaged in the activities of General Insurance Business under IRDAI registration number 103. RGICL is also India’s one of the first insurance company to be awarded the ISO 9001:2000 certification across all functions, processes, products and locations in India. The Company provides risk coverage through insurance covers and offers a plethora of insurance products for both commercial and retail segments viz., fire, aviation, marine, engineering, liability, energy, health, personal accident, travel, motor- private car / two wheeler / commercial vehicle, weather / crop insurance, package policy, burglary insurance and home insurance. The above products are sold through variety of channels such as agents, bancassurance partners, brokers, direct sales team, website and telesales, through its robust network of PAN India branches and offices. The Company has a strong agency base with more than 20,000 agents and over 2,000 employees across PAN India. We have a large customer base which includes individuals, Corporate and SME’s.

The Company mitigates the risk by entering into re-assurance contracts and treaties for insurance premium underwritten. The details of the Company’s branches are given in Annexure I.




iii Corporate Structure

a. Details of Share Capital as on last quarter end i.e. March 31, 2016:- Share Capital (Rs in crore) Authorized Share Capital

20,00,00,000 Equity Shares of Rs. 10 each 200.00

Total 200.00

Issued and Subscribed Share Capital 12,27,74,960 Equity Shares of Rs. 10 each 122.77

Paid-up Share Capital

12,27,74,960 Equity Shares of Rs. 10 each 122.77

Total 122.77

b. Equity Share Capital History of the Company as on last quarter end i.e. March 31, 2016.

Sr. No.

Date of Allotment Particular

Price per

equity share

No. of equity shares

Cumulative Total

Consideration (Cash, other

than cash, etc)

1 17-Aug-00

Shares issued upon incorporation 10 700 700 Cash

2 16-Oct-00 Private Placement 10 102000000 102000700 Cash

3 13-Nov-08 Private Placement 10 4294672 106295372 Cash

4 31-Mar-07 Rights issue 980 1071427 107366799 Cash 5 31-Mar-08 Rights issue 980 4081632 111448431 Cash 6 31-Mar-09 Rights issue 980 1632653 113081084 Cash 7 31-Mar-10 Rights issue 980 2142857 115223941 Cash 8 31-Dec-10 Rights issue 980 1448979 116672920 Cash 9 30-Sep-11 Rights issue 980 1377551 118050471 Cash

10 31-Mar-12 Rights issue 980 3142857 121193328 Cash 11 30-Sep-12 Rights issue 980 1581632 122774960 Cash




c. Details of any Acquisition or Amalgamation in the last 1 year:- The Company has neither acquired any entity nor amalgamated with any entity in the last one

year.

d.Details of any Reorganization or Reconstruction in the last 1 year:- The Company has not entered into any re-organisation or reconstruction in the last one year.

e. Details of the shareholding of the Issuer as on the latest quarter end:-

i. Shareholding pattern of the Company as on last quarter end i.e. March 31, 2016

Please refer Annexure IV

ii. List of top 10 holders of equity shares of the Company as on the latest quarter end i.e. March 31, 2016 Please refer Annexure V

f. Details regarding the directors of the Company:-

Sr. No.

Name of the Director Age Address

Date of Appointment Interest in other entities

1

H. Ansari Independent Director DIN - 02155529 Professional

77 Flat No. 503, Serin Nyati Enclave, Mohammadwadi Pune 411060

8-May-12

L&T General Insurance Company Limited

Insurance Assist India Pvt. Ltd.

2

Rajendra P. Chitale Independent Director DIN – 00015986 Professional

55

131/B, Tanna Residency Bayview, Opp. Siddhi, Vinayak Temple, 392, V.S.Marg, Prabhadevi, Mumbai, 400025, Maharashtra, India

12-Jun-06

JM Financial Asset Management Limited

Hinduja Ventures Limited Intuit Consulting Private Limited

Chitale Advisory Services Private Limited

Reliance Capital Limited Ambuja Cements Limited

Hinduja Global Solutions Limited

Reliance Nippon Life Insurance Company Limited

Chitale Consulting Private Limited




Sr. No.

Name of the Director Age Address

Date of Appointment Interest in other entities

Clearing Corporation of India Limited

Reliance Defence and Engineering Limited

3

Chhaya Virani Independent Director DIN – 06953556 Professional

62 407, Panchsheel, ‘C’ Road, P. M. Shukla Marg, Churchgate, Mumbai – 400 020

31-Mar-15

Reliance Capital Limited Reliance Infratel Limited

4

Soumen Ghosh Director DIN – 01262099 Director

57

1501, Lodha Aria, 6/207, Tokersey Jivraj Rd, Sewree West, Mumbai – 400015

21-Apr-08

Reliance Capital Limited Reliance Nippon Life Asset Management Limited

Reliance Nippon Life Insurance Company Limited

Reliance Home Finance Limited

Reliance Capital Pension Fund Limited

Reliance Exchangenext Limited

Reliance AIF Management Company Limited

Reliance Securities Limited

ANZBAI (Mumbai) Business Forum

Reliance Commercial Finance Limited

5

Rakesh Jain Whole Time Director & Chief Executive Officer DIN - 03645324

46

B-701, Velentine Apts., Pimpli Pada, Gen. A. R. Vaidya Marg, Malad (E), Mumbai, 400097, Maharashtra, India

20-Oct-11 NIL

None of our directors appear in the RBI defaulter list and/or ECGC defaulter list.




g. Details of change in directors since last three years:-

Name of Director Designation DIN

Age Date of Appointment

Date of Cessation

Remarks

Mr. S. P. Talwar Independent Director 00059681

74 29/08/2005 09/08/2013 Death

Mr. Debdatta Sengupta Independent Director 00043289

72 29/08/2005 11/09/2014 Resignation

Mrs. Chhaya Virani Independent Director 06953556

62 31/03/2015 - Appointment

h. Remuneration of directors

(Rs. in ‘000)

Name of Directors 2015-16 2014-15 2013-14 Mr. Rajendra Chitale 360* 360* 126* Mr. H. Ansari 558* 504* 144* Mr. S. P. Talwar (till 23rd April, 2013) - - 72* Mrs. Chhaya Virani 144* 36* - Mr. Soumen Ghosh - - - Mr. Rakesh Jain** 38,400 33,700 30,501 Mr. Debdatta Sengupta (till 30th April, 2014) - 90* 216*

*Sitting Fees **No sitting fees has been paid to Mr. Rakesh Jain. The remuneration paid to Mr. Rakesh Jain includes Salary and perquisites.

i. Key Operational and Financial Parameters (Standalone) for the last three audited years

(Rs. in crore)

Parameters 2015-16 2014-15 2013-14

Networth

1,103

1,020

848 Total Debt of which – - - - - Non Current Maturities of Long Term Borrowing - - - - Short Term Borrowing - - - - Current Maturities of Long Term Borrowing - - - - - -

Net Fixed Assets 34

35 27

Non Current Assets

4,036

3,907

3,057




Cash and Bank balances

101

79 64

Current Investments

1,396

1,171

819

Current Assets

693

436

895

Non-Current Liabilities 1

1 1

Current Liabilities

5,188

4,642

4,038 Assets Under Management - - - Off Balance Sheet Assets - - -

Interest / Finance Income

432

412

403 Interest Expense - - -

Provisioning & Write-offs -2

4 -1

PAT 99

81 64 Gross NPA (%) - - - Net NPA (%) - - - Tier I Capital Adequacy Ratio (%) - - - Tier II Capital Adequacy Ratio (%) - - - Dividend (including interim dividend) - - - Interest Coverage Ratio (Cash profit after tax plus interest paid/interest paid) - - - Combined Ratio 121% 121% 119% Net Retention Ratio 72% 71% 78% Solvency Ratio 1.55 1.53 1.51 Gross Debt: Equity Ratio of the Issuer (Standalone):

Before the issue of the Debentures 0:1 After the issue of the Debentures 0.227:1

* As on March 31, 2016. ** Based on issuances upto March 31, 2016 and proposed issue under this Information Memorandum

j. A brief history of the issuer since its incorporation giving details of its activities including any reorganisation, reconstruction or amalgamation, changes in its capital structure (authorised, issued and subscribed) and borrowings, if any:

History

RGICL is a public limited company was incorporated on 17th August, 2000 and obtained the certificate of commencement of business on 17th August, 2000, is engaged in the activities of General Insurance Business under IRDAI registration number 103. RGICL is also India’s one of the first insurance company to be awarded the ISO 9001:2000 certification across all functions, processes, products and locations in India. The Company provides risk coverage through insurance covers and offers a plethora of insurance products for both commercial and retail




segments viz., fire, aviation, marine, engineering, liability, energy, health, personal accident, travel, motor- private car / two wheeler / commercial vehicle, weather / crop insurance, package policy, burglary insurance and home insurance. The above products are sold through variety of channels such as agents, bancassurance partners, brokers, direct sales team, website and telesales, through its robust network of PAN India branches and offices. The Company has a strong agency base with more than 20,000 agents and over 2,000 employees across PAN India. RGICL has a huge customer base which includes individuals, Corporates and SME’s. The Company mitigates the risk by entering into re-assurance contracts and treaties for insurance premium underwritten. During the Financial Year 2014-15, the Company has an underwritten Gross Direct Premium of Rs. 2791 crore and achieved profit of Rs. 99.08 crore.

l. Brief particulars of the management of the Company

Board of Directors – Profile

Mr. H. Ansari, 77, was former Member (Non-life) of the Insurance Regulatory Development Authority (IRDA). He was Chair Professor (General Insurance) of National Insurance Academy, Pune, and has also worked as an Additional Director at Center for Insurance Studies, National Law University, Jodhpur. Mr. Ansari is a Post-Graduate in Science and has over 40 years experience of the Insurance Industry. Prior to his appointment by the Government and subsequent Joining the Regulatory Authority in March 1999, Mr. Ansari was working as Director and General Manager of "Oriental Insurance" Company at its Corporate Office in New Delhi.

Shri Rajendra P. Chitale, 55, is an eminent Chartered Accountant, is the Managing Partner of M/s M.P.Chitale & Co. He is a Director on the Board of the National Stock Exchange of India (NSC) and other reputed companies. He is also a member of the Advisory Group on Derivatives and the Takeover Panel, Securities and Exchange Board of India as well as the Company Law Advisory Committee of the Government of India.

Shri Soumen Ghosh, 57, holds a BSC (Hons) degree in Mechanical Engineering from the University of London (UK). He is also an Associate Chartered Accountant from the Institute of Chartered Accountants England & Wales. Mr. Ghosh has rich experience in the Insurance domain. Prior to joining Reliance ADA Group, Mr. Ghosh was associated with the Bajaj Allianz Group and was Director of various associate companies. He has also served as the CEO of Bajaj Allianz General Insurance and CEO & Country Manager of Bajaj Allianz Life Insurance.

Smt. Chhaya Virani, 62, is graduated from Mumbai University with a bachelors’ degree in Arts. She also acquired a bachelors’ degree in legislative laws from the Government Law College in 1976. She is a partner in M/s. ALMT Legal Advocates and Solicitors.

Shri Rakesh Jain, 46, a Chartered Accountant and Cost Accountant, has rich and varied work experience of over 20 years in leadership positions in corporate finance, risk management, underwriting, claims, broking and reinsurance functions etc. Prior to taking over the mantle of ED & CEO of Reliance General Insurance, he had worked in the capacity of Director - Corporate Centre & CFO at ICICI Lombard GIC Ltd. During his tenure at ICICI Lombard, he was conferred with 'Best CFO' award in the Financial Services Sector by the Institute of Chartered Accountants Of India.




Key Management Personnel Shri Rakesh Jain, 46, a Chartered Accountant and Cost Accountant, has rich and varied work experience of over 20 years in leadership positions in corporate finance, risk management, underwriting, claims, broking and reinsurance functions etc. Prior to taking over the mantle of ED & CEO of Reliance General Insurance, he had worked in the capacity of Director - Corporate Centre & CFO at ICICI Lombard GIC Ltd. During his tenure at ICICI Lombard, he was conferred with 'Best CFO' award in the Financial Services Sector by the Institute of Chartered Accountants Of India.

Shri Hemant K Jain, 43, FCA from ICAI, has been with the company since May 2008. Prior to Reliance General Insurance, he has worked with Bajaj Allianz General and Satyam Computers

Shri Mohan Khandekar, 51, LLB & ACS, has been with the company since Oct 2005. Prior to Reliance General Insurance, he has worked with Mangalore Refinery & Petrochemicals Ltd.

(m) Details regarding the auditors of the Issuer

1. Details of the auditor of the Issuer

Name Address Auditor since Pathak H.D. & Associates

814-815, Tulsiani Chambers 212, Nariman Point, Mumbai 400 021

July 30, 2012

Singhi & Co

B2, 402B, Marathon Innova, Off Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013

September 19, 2011

2. Details of change in auditor since last three years There has been no change in the Company’s auditors in the last three years.

(n) Details of borrowings of the Issuer, as on the latest quarter end i.e. March 31, 2016:

1. Details of Secured Loan Facilities NIL

2 Details of Unsecured Loan Facilities NIL

3 Details of NCDs NIL

4 List of Top 10 Debenture Holders as on March 31, 2016 NIL




5 The amount of corporate guarantee issued by the Issuer along with name of

the counterparty (like name of the subsidiary, JV entity, group company, etc.) on behalf of whom it has been issued: NIL

6 Details of Commercial Paper

NIL

7 Details of Rest of the borrowing (if any including hybrid debt like FCCB, optionally Convertible Debentures / Preference Shares) as on March 31, 2016 NIL

8 9

Details of all default/s and/or delay in payments of interest and principal of any kind of term loans, debt securities and other financial indebtedness including corporate guarantee issued by the Issuer, in the past 5 years NIL Particulars of any outstanding borrowings taken/debt securities issued where taken/issued (i) for consideration other than cash, whether in whole or part (ii) at a premium or discount, or (iii) in pursuance of an option.

The Company has not issued any debt security for consideration other than cash and/or at a premium or discount. The current NCD issue is at par on private placement basis. No NCDs have been issued in pursuance of an option.

(o) Details of Promoter Holding in the Issuer as on the latest quarter end i.e. March 31, 2016

Please refer Annexure VI (p) ABRIDGED VERSION OF STANDALONE FINANCIAL INFORMATION (LIKE PROFIT &

LOSS STATEMENT, BALANCE SHEET AND CASH FLOW STATEMENT) FOR AT LEAST LAST THREE YEARS AND AUDITOR QUALIFICATIONS, IF ANY.

Please refer Annexure VII, Annexure VII – A and Annexure VII - B

(q) ABRIDGED VERSION OF LATEST LIMITED REVIEW HALF YEARLY STANDALONE

FINANCIAL INFORMATION (LIKE PROFIT & LOSS STATEMENT, AND BALANCE SHEET) AND AUDITORS QUALIFICATIONS, IF ANY. Not Applicable




(r) Details of debt securities issued and sought to be listed including face value, nature of debt securities mode of issue i.e private placement.

Security Name Type I

9.10% Reliance General Insurance Company Limited, August 2026 (RGICL F Series A NCD 01 Type I)

Type II 8.95% Reliance General Insurance Company Limited, August 2031 (RGICL F Series A NCD 01 Type II)

Issuer Reliance General Insurance Company Limited (RGICL) Type of Instrument/ Kind of Security Rated, Listed, Unsecured,

Subordinated, Redeemable, Non-Convertible, OFC Debentures NCDs) (RGICL F Series A NCD 01 Type I)

Rated, Listed, Unsecured, Subordinated, Redeemable, Non-Convertible, OFC Debentures NCDs) (RGICL F Series A NCD 01 Type II)

Board Resolution Dated April 29, 2016 Shareholders’ General Resolution Dated

May 25, 2016

Nature of Instrument Unsecured Seniority Subordinated Mode of Issue Private Placement Eligible Investor As mentioned in category of investors Listing The Issuer proposes to seek listing of OFC

Debentures/NCDs issued under this Information Memorandum on the Wholesale Debt Market (“WDM”) Segment of the BSE Limited (“BSE”) within 15 (fifteen) days of Date of Allotment.

Rating of the Instrument CARE AA (Double A) by CARE & BWR AA (BWR Double A) by Brickwork

Issue Size/ Amount which the company intends to raise

INR 100,00,00,000 (Rupees One Hundred Crore only)

Option to retain oversubscription INR 130,00,00,000 (Rupees One Hundred and Thirty Crore only)

Subscription Amount INR 100,00,00,000 (Rupees One Hundred Crore only)

Objects of the issue/ Purposes and Objects of the Offer

The Series OFC Debentures / NCDs have been issued to raise resources to

(a) augment the Other forms of Capital of the Company &

(b) meet the ongoing funding requirements for the Company’s business activities.




Details of utilization of the Proceeds

The issue proceeds shall be utilized in accordance with the Objects of the Issue.

Coupon Rate Type I 9.10% p.a.

Type II 8.95% p.a.

Step Up /Step Down Coupon Rate Not Applicable

Coupon Payment Frequency Annually and on Maturity

Coupon payment dates Type I Payable Annually on August 26 each year starting with August 26, 2017 and on maturity i.e. August 26, 2026

Type II Payable Annually on August 26 each year starting with August 26, 2017 and on maturity i.e. August 26, 2031

Coupon Type Fixed

Coupon Reset Process Not Applicable

Day Count Basis Actual / Actual Interest on Application Money At coupon rate from the date of credit in

Company’s account till the day prior to the date of allotment

Default Interest Rate Please refer page 38 of the Information Memorandum




Tenor Type I

3,652 Days from the Deemed Date of Allotment

Type I

5,478 Days from the Deemed Date of Allotment

Redemption Date Type I August 26, 2026

Type II August 26, 2031

Redemption Amount 100.00% of Principal Amount (Face Value) Redemption Premium Not Applicable Issue Price per Bond/ Price of the Security & Justification

100.00% of Principal Amount (Face Value) / (the security is being issued at par, with the Coupon Rate and Coupon Payment Frequency as already mentioned above which is in accordance with the prevailing market conditions at the time of the issue)

Discount at which security is issued and the effective yield as a result of such discount

Not Applicable

Name and Address of the Valuer Not Applicable

Put option Date Not Applicable

Put option Price Not Applicable

Call Option Date Type I Not Applicable


Call Option Price Type I Not Applicable

Type II 100.00% of Principal Amount (Face Value)

Put Notification Time Not Applicable

Call Notification Time Type I Not Applicable

Type II Issuer shall notify the Investor/ Holder atleast 15 days prior to the Call Option Date (i.e. by August 11, 2022) in case Issuer wishes to exercise the Call Option

Face Value Rs.10,00,000/- each (Rupees Ten Lakhs Only).

Minimum Application and in multiples of Debt securities thereafter

Minimum Application of 10 OFC Debentures and in multiples of 1 OFC Debentures thereafter




Issue Timing 1. Issue Opening Date 2. Issue Closing Date 3. Pay-in Date 4. Deemed Date of Allotment

July 28, 2016 August 26, 2016 From July 28, 2016 to August 26, 2016 August 26, 2016 The Issue Close Date / Pay-in Date may be rescheduled, at the sole discretion of the Issuer. The actual Issue Close Date / Pay-in Date shall be communicated to each investor in the Allotment Advice.

Issuance mode of the Instrument These OFC Debentures would be issued only in Dematerialized form (Demat) through authorized DP

Trading mode of the Instrument Demat mode only Settlement mode of the Instrument RTGS / NEFT / Fund Transfer to the bank details

as per NSDL records. Depository NSDL Business Day Convention Please refer page 45 of the Information

Memorandum Record Date 15 days prior to each Coupon Payment /

Redemption date. Security Unsecured

Contribution being made by Promoters or directors either as part of the offer or separately in furtherance of such objects

NIL

Transaction Documents Debenture Trustee Agreement Information Memorandum Rating letter from CARE & Brickwork Consent letter of Karvy Computershare Private

Limited to act as Registrar & Transfer Agent for the proposed issue;

Tripartite agreement between the Company, NSDL and the Registrar and Transfer Agent;

Uniform Listing Agreement Conditions Precedent to Disbursement

N.A.

Condition Subsequent to Disbursement

N.A.

Events of Default Please refer page 52 of the Information memorandum

Provisions related to Cross Default Clause

Not Applicable

Role and Responsibilities of Debenture Trustee

Please refer page 51 of the Information memorandum

Governing Law and Jurisdiction Please refer page 53 of the Information




memorandum Payment Details Settlement Bank : HDFC Bank,

Branch : Fort Account No. : 00600350129641 Account Name : Reliance General Insurance Company Limited RTGS / IFSC Code : HDFC0000060

Registrars and Transfer Agents Karvy Computershare Private Limited Trustees IL & FS Trust Company Limited

(s) Illustration of Bond Cash Flows (SEBI Circular CIR/IMD/DF/18/2013 dated October 29, 2013)

Company Reliance General Insurance Company Limited

Face Value (per security) Rs.10,00,000/-

Issue Date July 28, 2016

Date of Allotment August 26, 2016

Date of Redemption Type I August 26, 2026


Coupon Rate Type I 9.10% p.a.

Type I 8.95% p.a.

Frequency of the Interest Payment with specified dates Type I

Payable Annually on August 26 each year starting with August 26, 2017 and on maturity i.e. August 26, 2026


Day Count Convention Actual / Actual

For Type I

Cash Flow Date (of actual payment)

No. of Days in Coupon Period Amount in Rupees

Coupon 1 Saturday, August 26, 2017 365 91,000.00 Coupon 2 Monday, August 27, 2018* 366 91,249.00 Coupon 3 Monday, August 26, 2019 364 90,751.00 Coupon 4 Wednesday, August 26, 2020** 366 91,000.00 Coupon 5 Thursday, August 26, 2021 365 91,000.00 Coupon 6 Friday, August 26, 2022 365 91,000.00 Coupon 7 Saturday, August 26, 2023 365 91,000.00 Coupon 8 Monday, August 26, 2024*** 366 91,000.00 Coupon 9 Tuesday, August 26, 2025 365 91,000.00 Coupon 10 Wednesday, August 26, 2026 365 91,000.00




Principal Redemption Wednesday, August 26, 2026 10,00,000.00 Total 19,10,000.00

* The scheduled coupon payment date is falling on a Sunday, therefore the coupon is paid on the following working day and has been calculated for 366 days ** F.Y. 2020 is a leap year *** F.Y. 2024 is a leap year For Type II



Coupon 1 Saturday, August 26, 2017 365 89,500.00 Coupon 2 Monday, August 27, 2018* 366 89,745.00 Coupon 3 Monday, August 26, 2019 364 89,255.00 Coupon 4 Wednesday, August 26, 2020** 366 89,500.00 Coupon 5 Thursday, August 26, 2021 365 89,500.00 Coupon 6 Friday, August 26, 2022 365 89,500.00 Coupon 7 Saturday, August 26, 2023 365 89,500.00 Coupon 8 Monday, August 26, 2024*** 366 89,500.00 Coupon 9 Tuesday, August 26, 2025 365 89,500.00 Coupon 10 Wednesday, August 26, 2026 365 89,500.00 Coupon 11 Thursday, August 26, 2027 365 89,500.00 Coupon 12 Saturday, August 26, 2028**** 366 89,500.00 Coupon 13 Monday, August 27, 2029***** 366 89,745.00 Coupon 14 Monday, August 26, 2030 364 89,255.00 Coupon 15 Tuesday, August 26, 2031 365 89,500.00 Principal Redemption Tuesday, August 26, 2031 10,00,000.00 Total 23,42,500.00

* The scheduled coupon payment date is falling on a Sunday, therefore the coupon is paid on the following working day and has been calculated for 366 days ** F.Y 2020 is a leap year *** F.Y 2024 is a leap year **** F.Y 2028 is a leap year ***** The scheduled coupon payment date is falling on a Sunday, therefore the coupon is paid on the following working day and has been calculated for 366 days Note: (i) Payment dates are subject to change as per holidays declared in that particular year. Payment convention to be followed as per SEBI Circular CIR/IMD/DF/18/2013 dated October 29, 2013 (t) Issue Size

The Issue of OFC Debentures is Rs. 100 crore (Rupees One Hundred Crore Only) (For details please refer SUMMARY TERM SHEET).




(u) Minimum Subscription Size

The minimum subscription size for this Issue is Rs. 1 crore and in multiples of Rs. 10 lakhs hereafter.

(v) Utilisation of Issue Proceeds / Objects of the issue

To raise resources to (a) augment the Other forms of Capital of the Company (b) meet the ongoing funding requirements for the Company’s business activities.

(w) A statement containing particulars of the dates of, and parties to all material contracts,

agreements involving financial obligations of the Issuer.

By very nature of its business, the Company is involved in large number of transactions involving financial obligations and, therefore it may not be possible to furnish details of all material contracts and agreements involving financial obligations of the Company. However, the contracts/documents referred below (not being contracts entered into in the ordinary course of the business carried on by the Company) which are or may be deemed to be material, have been entered into by the Company. Copies of these contracts /documents shall be available for inspection at the registered office of the Company between 10.00 a.m. and 5.00 p.m. on all days except Saturdays, Sundays and public holidays.

Sr. No.

Material contracts / documents

1) Memorandum and Articles of Association of the Company.

2) Certificate of Registration issued by Insurance Regulatory and Development Authority of India (IRDAI) under Sec. 3 read with section 3A of the Insurance Act, 1938 as amended by the Insurance Laws (Amendment) Act, 2015

3) Certified copy of the Resolution under Section 42, 71 of the Companies Act, 2013 passed by the members of the Company on May 25, 2016.

4) Certified true copy of the resolution of the Board of Directors of the company for raising the debentures in its Meeting held on April 29, 2016.

5) Financial Statements of financial year 2012-13, 2013-14 and 2014-15. 6) Copy of consent letter of IL&FS Trust Company Limited to act as debenture trustee

for the proposed issue.

7) Copy of credit rating letter along with credit rationale of Credit Analysis & Research Limited & Brickwork Ratings India Private Limited




Sr. No.

Material contracts / documents

8) Copy of consent letter of Karvy Computershare Private Limited to act as Registrar & Transfer Agent for the proposed issue.

9) Copies of the Agreement with NSDL. (x) Any material event/development or change having implications on the financials/credit

quality (e.g. any material regulatory proceedings against the Issuer/promoters, tax litigations resulting in material liabilities, corporate restructuring event etc) at the time of issue or subsequent to the issue which may affect the issue or the investor’s decision to invest / continue to invest in the debt securities.

There are no material event/development having an implication on the financials/credit

quality. There are no litigations by or against the Company whose likely outcome will have a material adverse effect on the operations of the Company. Further, there are no outstanding litigations or defaults which pertain to matters which are likely to affect the operations and finances of the Company including disputed tax liabilities, prosecution under any enactment in respect of Schedule V of the Companies Act. There are no penalties that have been imposed on the Company by any statutory authority.

(y) Particulars of any outstanding borrowings taken/debt securities issued where taken/issued (i) for consideration other than cash, whether in whole or part (ii) at a premium or discount, or (iii) in pursuance of an option. The Company has not issued any debt security for consideration other than cash and/or at a premium or discount. The current NCD issue is at par on private placement basis. No NCDs have been issued in pursuance of an option.

(z) An undertaking that the Issuer shall use a common form of transfer. Please refer to the ‘GENERAL TERMS AND CONDITIONS’.

(aa) Redemption amount, period of maturity, yield on redemption. The details of redemption amount, maturity period and yield on redemption are given in the Summary Term Sheet.

(ab) Information relating to terms of offer or purchase

Please refer to ‘Summary Term Sheet’ and ‘GENERAL TERMS AND CONDITIONS’.

(ac) The discount at which such offer is made and the effective price for the investor as a result of such discount.

Please refer to Summary Term Sheet. (ad) Servicing behavior on existing debt securities, payment of due interest on due dates

on term loans and debt securities. There are no outstanding debt liabilities/ existing debt securities of the Issuer. However, the payment of interest & repayment of principal shall be made on the respective due dates.




(ae) The names of the debenture trustee(s) shall be mentioned with a statement to the

effect that debenture trustee(s) has given his consent to the issuer for his appointment under regulation 4(4) and also in all the subsequent periodical communications sent to the holders of debt securities. The debenture trustee for the proposed issue is IL & FS Trust Company Limited. The Company has obtained consent from IL & FS Trust Company Limited for the proposed issuances. The copy of the consent letter from the Debenture Trustee has been annexed at Annexure – 2.

(af) The detailed rating rationale(s) adopted (not older than one year on the date of opening

of the issue)/credit rating letter issued (not older than one month on the date of opening of the issue) by the rating agencies shall be disclosed. Credit Analysis & Research Limited (CARE) having its registered office at 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai – 400 022, Ph:(91 22) 6754 3456, Fax: (91 22) 6754 3457, has assigned “CARE [AA]” rating to these OFC Debentures. Please refer Credit Rating Letter from CARE, attached as Annexure – 1 for rating rational adopted by CARE. Brickwork Ratings India Private Limited having its corporate office at 3rd Floor, Raj Alkaa Park, 29/3 & 32/2, Kalena Agrahara, Bannerghatta Road, Bengaluru - 560076, has assigned “BWR AA” rating to Subordinated Redeemable, Non Convertible Debenture issue of the Company aggregating to Rs. 230 crore. Instruments with this rating are considered to offer best credit quality in terms of timely servicing of debt obligations. Please refer Credit Rating Letter from Brickwork, attached as Annexure – 1 for rating rational adopted by Brickwork.

(ag) Names of all the recognized stock exchanges where the debt securities are proposed to be listed clearly indicating the designated stock exchange and also whether in principle approval from the recognized stock exchange has been obtained. The OFC Debentures are proposed to be listed on the BSE and it would be the designated stock exchange.

(ah) Payment and invocation details if the security is backed by a guarantee or letter of

comfort or any other document / letter with similar intent.

Not Applicable

(ai) Default in payment In case of default in payment of Interest and/or principal redemption on the due, additional interest of at least @ 2% p.a. over the coupon rate (if applicable as per Summary Term Sheet) will be payable by the Company for the defaulting period

(aj) Delay in listing

In case of delay in listing of the debt securities beyond 20 days from the deemed date of allotment, the Company will pay penal interest of at least 1% p.a. over the coupon rate (if applicable as per the Summary Term Sheet) from the expiry of 30 days from the deemed date of allotment till the listing of such debt securities to the investor. The investor should make the necessary claim on the Company for the same.




PART A - GENERAL TERMS AND CONDITIONS

Issue of OFC Debentures The Issuer will issue the OFC Debentures in dematerialised form and has made depository arrangements with NSDL in this respect. The Investors will have to trade the OFC Debentures in dematerialised form and deal with the same as per the provisions of Depositories Act, 1996 /rules as notified by NSDL from time to time. Applicants should mention their Depository Participants name, DP-ID and Beneficiary Account Number in the appropriate place in the Application Form. The Company or the RTA shall take necessary steps to credit the Depository Account of the allottee(s) with the amount of OFC Debentures allotted. The initial credit of the OFC Debentures in the beneficiary account of the Investor will be akin to the Letter of Allotment. Mode of Transfer The OFC Debentures are being issued in dematerialised form and shall be transferable and transmittable in dematerialised form and to the same extent and be subject to the same restrictions and limitations as in the case of the existing equity shares of the Company. The provisions relating to transfer and transmission and other related matters in respect of equity shares of the Company, contained in the Articles of Association of the Company, shall apply mutatis mutandis to the transfer and transmission of the OFC Debentures. Transfer of OFC Debentures would be in accordance with the rules / procedures as prescribed by NSDL/ Depository participant. Nothing provided herein shall prejudice any power of the Company to register as Debenture Holder any person to whom the right to any OFC Debenture of the Company has been transmitted by operation of law. Transfer of OFC Debentures to and from Non-Resident Indians (“NRI”)/ Overseas Corporate Bodies (“OCB”) in case they seek to hold the Debentures and are eligible to do so, will be governed by then prevailing guidelines of RBI. Succession In the event of demise of the sole/first holder of the OFC Debentures, the Company will recognise the executor or administrator of the deceased Debenture Holder, or the holder of succession certificate or other legal representative as having title to the OFC Debentures. The Company shall not be bound to recognise such executor, administrator or holder of the succession certificate, unless such executor or administrator obtains probate or letter or administration or such holder is the holder of succession certificate or other legal representation, as the case may be, from a court in India having jurisdiction over the matter. The Directors of the Company may, in their absolute discretion, where they think fit, dispense with production of probate or letter of administration or succession certificate or other legal representation, in order to recognise such holder as being entitled to the OFC Debentures standing in the name of the deceased Debenture holder on production of sufficient documentary proof or indemnity.




Right to Re-purchase and Re-issue the OFC Debentures The Company may repurchase the OFC Debentures, in the secondary market, at any time and from time to time prior to the specified date of redemption. In the event of the OFC Debentures being bought back, or redeemed before maturity in any circumstances whatsoever, the Company shall be deemed to have always the right to re-issue the OFC Debentures. Terms of Payment The full face value/ subscription amount of OFC Debenture(s) to be paid along with the Application Form. The details specific to the issuance will be communicated to the potential investors through the Summary Term Sheet. Categories of Investors Only persons to whom an offer is specifically made under this Information Memorandum will be eligible to apply. Investors in the following categories, subject to compliance with the Indian Insurance Companies (Foreign Investment) Rules, 2015 are eligible to apply for NCD of the Company under Information Memorandum: Companies, Body Corporate, Financial Institutions, NBFCs, Statutory Corporations Commercial Banks including but not restricted to commercial, private, foreign, co operative

and regional rural banks. Provident funds/ Superannuation funds or gratuity funds, private trusts, as may be permitted

by respective rules and guidelines of such funds/ trusts. Registered Society Partnership firms HUFs High Net worth Individuals Insurance Companies (An insurer may invest in the “OFC Debentures” issued by the issuer

subject to such investments shall only be classified under “Other investments” and such OFC Debentures shall be subject to the exposure norms as specified in IRDA (Investment) Regulations, 2000.

Mutual Funds Portfolio Manager registered with SEBI Application under Power of Attorney SEBI registered FIIs/FPIs Any other investor permitted to invest in OFC Debentures. SEBI vide its circular CIR/IMD/FIIC/18/2010 dated November 26, 2010 had decided that a SEBI registered FIIs/FPIs/sub-accounts of FIIs/ FPIs can now invest in primary issues of non-convertible debentures (NCDs)/ bonds only if listing of such NCDs/bonds is committed to be done within 15 days of such issue. In case the NCDs/bonds issued to the SEBI registered FIIs/FPIs/sub-accounts of




FIIs/FPIs are not listed within 15 days of such issue to the SEBI registered FIIs/FPIs/sub-accounts of FIIs/FPIs, for any reason, then the FII/FPI/sub-account of FII/FPI shall immediately dispose off these NCDs/bonds either by way of sale to a third party or to the Issuer. The Issuer hereby undertakes that in case the OFC Debentures are not listed within 15 days of issuance (the “Listing Period”) to the SEBI registered FIIs/FPIs / sub-accounts of FIIs/FPIs, for any reason, the Issuer shall on the next Business Day on expiry of the Listing Period redeem / buyback the OFC Debentures from the FIIs/FPIs/sub-accounts of FIIs/FPIs. Abundant pre-caution As a matter of abundant caution and although not applicable in the case of OFC Debentures, attention of applicants is specially drawn to any person who: (a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; or (b) makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring or subscribing for its securities; or (c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to him, or to any other person in a fictitious name, shall be liable for action under Section 447 of the Companies Act, 2013. How to apply All applications for the OFC Debenture(s) must be in the prescribed Application Form and be completed in block letters in English. It is presumed that the application is signed and made by persons duly empowered and authorized by the entity on whose behalf the application is made. Application forms must be accompanied by either a Demand Draft or a Cheque, drawn in favour of “Reliance General Insurance Company Limited” and duly crossed “Account payee only” or through Electronic Clearing System (“ECS”), Real Time Gross Settlement (“RTGS”) or National Electronic Funds Transfer (“NEFT”). All cheques/ DDs/Pay orders of banks are to be made payable at Mumbai. Outstation cheques, money orders, postal orders will not be accepted. The Company will not be responsible or accountable in any manner for any instruments or applications lost in transit or mail. It may be noted that a separate application can be made in respect of each scheme of an Indian Mutual Fund/ Asset Management Companies registered with SEBI and such applications would not be treated as multiple applications. The application form, will be made available along with the Summary Term Sheet at the time of offer. The applicant should mention their PAN at the appropriate place in the application form. Applications to be accompanied by bank account details Every application must be accompanied by the bank account details of the applicant and the MICR code of the bank for the purpose of availing direct credit and all other amounts payable to the debenture holder through ECS, RTGS or NEFT. Documents to be provided by Investors 1. Applications by Body Corporates / Companies / Financial institutions / NBFCs /

Statutory Corporations The applications must be accompanied by certified true copies of (i) Memorandum and Articles of Association / constitutional documents / bye-laws; (ii) resolution authorizing




investment and containing operating instructions; (iii) specimen signatures of authorized signatories; (iv) PAN Cards.

2. Application by Scheduled Commercial Banks

The application must be accompanied by certified true copies of (i) Board Resolution authorising investments or letter of authorization or Power of Attorney; (ii) PAN Cards and (iii) specimen signatures of authorized signatories.

3. Application by Co-operative Banks

The application must be accompanied by certified true copies of (i) resolution authorising investment along with operating instructions/power of attorney; (ii) PAN Cards and (iii) specimen signatures of authorised signatories.

4. Application by Regional Rural Banks

The applications must be accompanied by certified true copies of (i) Government notification / Certificate of Incorporation / Memorandum and Articles of Association / other documents governing the constitution; (ii) resolution authorizing investment and containing operating instructions; (iii) specimen signature of authorized signatories (iv) PAN Cards.

5. Applications by Provident Funds, Superannuation Funds and Gratuity Funds The application must be accompanied by certified true copies of (i) trust deed / bye-laws / regulations; (ii) resolution authorising investment; (iii) PAN Cards and (iv) specimen signatures of authorised signatories.

6. Application by Registered Societies The application should be accompanied by certified true copies of (i) Memorandum of Association / deed/any other instrument regulating or governing the constitution of the society, and rules and regulations / bye-laws of the Society; (ii) resolution authorising investment along with operating instructions/power of attorney; (iii) proof of registration with relevant statutory authority; (iv) PAN Cards and (v) specimen signatures of authorised signatories.

7. Application by Partnership Firm

The applications must be accompanied by certified true copies of (i) the PAN Card of the partnership firm; (ii) copy of the partnership deed; and (iii) the photo identity proof like Passport / PAN Card / Driving License, etc. of the partner(s) signing the Application Form and specimen signatures of authorised signatories and (iv) an authority letter from all partners authorising such investment.

8. Application by HUF The applications must be accompanied by certified true copies of the PAN Card of the HUF, the photo identity proof like Passport / PAN Card / Driving License, etc. of the Karta of the HUF, telephone bill/electricity bill/bank account statement, etc. and declaration from the Karta and co-parcenors authorizing such investment also need to be provided to the Company.




9. Application by High Net worth Individuals The applications must be accompanied by certified true copies of photo identity proof like Passport / PAN Card / Driving License, etc.

10. Application by Insurance Companies

The applications must be accompanied by certified true copies of (i) Memorandum and Articles of Association (ii) power of attorney; (iii) resolution authorising investment and containing operating instructions; (iv) specimen signatures of authorised signatories; and (v) copy of PAN.

11. Application by Mutual Funds

A separate application can be made in respect of each scheme of an Indian mutual fund registered with the SEBI and such applications shall not be treated as multiple applications. The applications made by the Asset Management Companies (“AMCs”) or custodians of a Mutual Fund shall clearly indicate the name of the concerned scheme for which application is being made. The applications must be accompanied by certified true copies of (i) SEBI Registration Certificate and trust deed; (ii) resolution authorizing investment and containing operating instructions; (iii) PAN Cards and (iv) specimen signatures of authorized signatories.

12. Application by a Portfolio Manager registered with SEBI The application should be accompanied by certified true copy of (i) resolution of the Board of Director, authorizing, and with all particulars relating to the investment in these OFC Debentures, and the acceptance of the terms of these OFC Debentures alongwith authorized signatory list; (ii) certified copy of registration certificate issued by the SEBI to undertake Portfolio Management activities and (iii) PAN Cards

13. Application under Power of Authority / Relevant Authority In case of an application made under a Power of Attorney or resolution or authority or mandate a certified true copy thereof along with Memorandum and Articles of Association and / or bye laws must be attached to the application at the time of making the application, failing which the Company reserves the full, unqualified and absolute rights to accept or reject any application in whole or in part and in either case without assigning any reasons thereto. Names and specimen signatures of all the authorized signatories must also be lodged along with the completed application forms.

14. Application by SEBI registered FIIs/FPIs The applications must be accompanied by certified true copies of (i) PAN Card of the FII/FPI; (ii) constitutional documents; (iii) resolution authorizing investment and containing operating instructions; and (iv) tax residency certificate.

DISCLAIMER: PLEASE NOTE THAT ONLY THOSE PERSONS TO WHOM THE INFORMATION MEMORANDUM HAS BEEN SPECIFICALLY ADDRESSED ARE ELIGIBLE TO APPLY. HOWEVER, AN APPLICATION, EVEN IF COMPLETE IN ALL RESPECTS, IS LIABLE TO BE REJECTED WITHOUT ASSIGNING ANY REASONS FOR THE SAME. THE LIST OF DOCUMENTS PROVIDED ABOVE IS ONLY INDICATIVE, AND AN INVESTOR IS REQUIRED TO PROVIDE ALL THOSE DOCUMENTS/ AUTHORISATIONS/ INFORMATION, WHICH ARE LIKELY TO BE




REQUIRED BY THE COMPANY. THE COMPANY MAY, BUT IS NOT BOUND TO, REVERT TO ANY INVESTOR FOR ANY ADDITIONAL DOCUMENTS/INFORMATION, AND CAN ACCEPT OR REJECT AN APPLICATION AS IT DEEMS FIT. THE REGULATIONS/NOTIFICATIONS REGARDING INVESTMENT MENTIONED ABOVE ARE MERELY IN THE FORM OF GUIDELINES AND THE COMPANY DOES NOT WARRANT THAT THEY ARE ACCURATE, OR HAVE NOT BEEN MODIFIED. EACH OF THE ABOVE CATEGORIES OF INVESTORS IS REQUIRED TO CHECK AND COMPLY WITH EXTANT RULES/REGULATIONS/ GUIDELINES, ETC. GOVERNING OR REGULATING THEIR INVESTMENTS AS ISSUED BY THEIR RESPECTIVE REGULATORY AUTHORITIES, AND THE COMPANY IS NOT, IN ANY WAY, DIRECTLY OR INDIRECTLY, RESPONSIBLE FOR ANY STATUTORY OR REGULATORY BREACHES BY ANY INVESTOR, NEITHER IS THE COMPANY REQUIRED TO CHECK OR CONFIRM THE SAME. Nomination Facility Debenture Holders can avail the nomination facility as per the provisions of section 72 of the Companies Act, 2013. Right to accept or reject applications The Company is entitled at its sole and absolute discretion, to accept or reject any application in part or in full, without assigning any reason. Incomplete Application Forms are liable to be rejected. The full amount of OFC Debenture(s) has to be submitted along with the Application Form. Also, in case of over subscription, the Company reserves the right to increase the size of the placement subject to necessary approvals/certifications, and the basis of allotment shall be decided by the Company. Payment of Interest on Application Money For applicants whose applications have been rejected or allotted in part, interest on their refundable application money will be dispatched within 21 working days of the Deemed Date Allotment and the Company shall ensure adequate funds for the same. Interest will be computed at applicable rate (to be finalized at the time of the Issue), on refundable application money from the date of realization of cheque/draft/credit in the account. For the successful allottees the interest on application money on the allotted amount will be paid within 21 working days of the Deemed Date Allotment. The interest on application money will be computed on actual/actual basis. Allotment Intimation The Company would make depository arrangements with the NSDL for the issue of these OFC Debentures in Electronic (Dematerialised) Form. The Investors holding these OFC Debentures in the Electronic (Dematerialised) Form will be governed as per the provisions of The Depository Act, 1996, Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, IRDAI Directions, and other rules notified by NSDL from time to time and other applicable laws and rules notified in respect thereof. Investors should mention their NSDL Depository Participant’s name, DP-ID and Beneficiary Account Number (Client Id) at the appropriate place in the Application Form. The Company shall take reasonable steps to credit the Beneficiary Account of the Allotee(s), with the NSDL Depository Participant as mentioned in the Application Form, with the number of OFC Debentures allotted. The applicant is responsible for the correctness of its details given in the Application Form vis-à-vis those with its DP. In case the information is incorrect or insufficient, the Company would not be liable for losses, if any.




The Company shall credit the Letter(s) of Allotment in Electronic Form to the dematerialised account of the Investors as per the details furnished in the Application Form. The Allotment Intimation will be sent to the Allottee(s). This Allotment Intimation should neither be construed as a Letter(s) of Allotment nor as a credit advice; and hence it is non-transferable/non-transmittable and not tradable. The Company will credit the OFC Debentures into the investor(s)’ Demat account with the investor‘s DP within 2 working days from Date of Allotment. Register of Debenture Holder(s) A register of all Registered Debenture Holder(s) containing necessary particulars will be maintained by the Company’s Registrar and Transfer Agent. The Company shall request the Depository to provide a list of beneficial owners as at end of day of the Record Date. This list shall be considered for payment of interest, repayment of principal and amortisation, as the case maybe. The Company shall credit interest on OFC Debentures and/or redemption amount of OFC Debentures as per NSDL records. Debenture Holders are required to keep the records updated with respective Depository with whom they have their accounts Rights of all Debenture Holders The Debenture Holders will not be entitled to any rights and privileges of shareholders other than those available to them under statutory requirements. The OFC Debentures shall not confer upon the Debenture Holders the right to receive notice, or to attend and vote at the general meetings of shareholders of the Company. The Principal Amount and interest, if any, on the Debentures will be paid to the Debenture Holder only, or in the case of joint holders, to the one whose name stands first. The OFC Debentures will be subject to other usual terms and conditions incorporated in the OFC Debenture certificate(s) that will be issued to the allottee(s) of such OFC Debentures by the Company and also in the Debenture Trustee Agreement / Debenture Trust Deed. Modification of Rights The rights, privileges, terms and conditions attached to the OFC Debentures may be varied, modified or abrogated with the consent, in writing, of those holders of the OFC Debentures who hold at least three-fourth of the outstanding amount of the OFC Debentures or with the sanction accorded pursuant to a resolution passed at a meeting of the Debenture Holders, provided that nothing in such consent or resolution shall be operative against the Company where such consent or resolution modifies or varies the terms and conditions of the OFC Debentures, if the same are not acceptable to the Company. Effect of Holidays If any date(s) except the date of allotment, falls on a Sunday or a public holiday, the following working/ business day shall be considered as the effective date(s). In case any Interest Payment Date(s) falls on a Sunday or a public holiday, interest will be paid on the next/ following working/ business day (i.e. a day on which scheduled commercial banks are open for business in the city of Mumbai, Maharashtra). Whereas if the date of redemption/ maturity falls on Sunday or a public holiday, the redemption proceeds alongwith accrued interest (if any) will be paid on the immediately previous working/ business day (i.e. a day on which scheduled commercial banks are open for business in the city of Mumbai, Maharashtra).




Notices All notices required to be given by the Company to the Debenture Holders will be deemed to have been given if published in one English and one regional daily newspaper in the area where the OFC Debentures are listed. Tax Deduction at Source Tax as applicable under the Income Tax Act, 1961, or any other statutory modification or re-enactment thereof will be deducted at source. Tax exemption certificate/document, under the relevant provisions of the Income Tax Act, 1961, if any, must be lodged at the office of the Company, at least 30 days before the payment becoming due. Additional Risk Disclosures The initial subscriber by subscribing to and any subsequent purchaser by purchasing the OFC Debentures shall be deemed to have agreed that and accordingly the Company shall be entitled to presume that each of the initial subscriber and any subsequent purchaser (Debenture Holder, as referred to hereinabove and hereinafter): (a) has (1) sufficient knowledge, experience and expertise as an Investor, to make the investment

in the OFC Debentures; (2) not relied on the Issuer Group or any person acting in its or their behalf (“Agents”) for any information, advice or recommendations of any sort except as regards the accuracy of the specific factual information about the terms of the OFC Debentures as set out in this Information Memorandum; (3) understood that information contained in this Information Memorandum, or any other document issued by the Company is not to be construed as business or investment advice; and (4) made an independent evaluation and judgment of all risks and merits before investing in the OFC Debentures;

(b) has understood that the Issuer Group, including the Company, or any Agents, from time to time may act as an arranger, underwriter and/or distributor of similar instruments securities or transactions, the returns and/or payments on which or performance of which, may be at variance with or asymmetrical to those on the OFC Debentures, and they may engage in other public and private financial transactions (including the purchase of privately placed investments or securities or other assets and entering into over the counter derivatives). The foregoing activities of the Issuer Group, including the Company, or any Agents may affect the value of the OFC Debentures. In particular, the value of the OFC Debentures could be adversely impacted by a movement in the interest rates, or activities in related markets, by any acts or inactions of the Issuer Group, including the Company, or any Agents;

(c) has understood that without prejudice to (a)and(b) above, (1) the method and manner of computation, returns and calculations on the OFC Debentures shall be solely determined by and/or on behalf of the Company, whose decision shall be final and binding; (2) in the event of any discretions to be exercised, in relation to method and manner of any of the above computations including due to any disruptions in any of the financial or other related markets or if for any other reason the calculations cannot be made as per the method and manner originally stipulated or referred to or implied, such alternative methods or approach shall be used as deemed fit by and/or on behalf of the Company, and may include the use of estimates and approximations. All such computations shall be valid and binding on the OFC Debenture Holder, and no liability thereof will attach to the Company and/or the Agents;

(d) has understood that in the event that the OFC Debenture Holder suffers adverse consequences or loss, the OFC Debenture Holder shall be solely responsible for the same and the Company, the Issuer Group and/or the Agents shall not be responsible, in any manner whatsoever, for any adverse consequences or loss suffered by the OFC Debenture Holder including but not limited




to on the basis of any claim that no adequate disclosure regarding the risks involved were made or that the full risks involved were not explained or understood;

(e) has reviewed the terms and conditions applicable to the OFC Debentures as contained in this Information Memorandum and has understood the same, and, on an independent assessment thereof, confirmed the same to be correct and, found the same acceptable for the investment made and has also reviewed the risk disclosures contained herein and has understood the risks, and determined that the OFC Debentures are a suitable investment and that the Debenture Holder can bear the economic risk of that investment, including the possibility of receiving lower than expected or negligible returns;

(f) has received all the information believed to be necessary and appropriate or material in connection with, and for, the investment in the OFC Debentures;

(g) holds the OFC Debentures as an investment, and has not purchased the OFC Debentures on a speculative basis;

(h) as an Investor, is knowledgeable and experienced in making investments similar to the OFC Debentures;

(i) investing in the OFC Debentures:

(i) has obtained such independent and appropriate financial, tax, accounting and legal advice as required and/or deemed necessary, to enable the OFC Debenture Holder to independently evaluate, assess and understand the appropriateness, merits and risks associated with investing in the OFC Debentures, and also as to the OFC Debenture Holders legal competency and ability (including under applicable laws and regulations), to invest in and/or hold (including as to the duration of holding) the OFC Debentures; and

(ii) has not relied on any advice or statements made or rendered by Issuer Group or their Agents, the Company or its Agents or any person acting on its or their behalf, with respect to the OFC Debentures, including as to the nature of returns or any erosion in the value of the OFC Debentures over its life, or on maturity, redemption, sale or disposal, and none of such entities or persons have made any representations to the OFC Debenture Holder, express or implied, with respect to any of the above;

(j) has assumed on the its own account, all risk of loss that may occur or be suffered including as to the returns on and/or the sale value of the OFC Debentures and shall not look directly or indirectly to the Issuer Group or their Agents or the Company or its Agents (or to any person acting on its or their behalf) to indemnify or otherwise hold the OFC Debenture Holder harmless in respect of any such loss and/or damage ;

(k) undertakes that, if the OFC Debenture Holder sells the OFC Debentures to subsequent Investors, the OFC Debenture Holder shall ensure, and it is the OFC Debenture Holder’s obligation in that regard, that (1) the subsequent Investors receive the terms and conditions, risks and representations contained in this Information Memorandum and any other related document, (2) the sale to subsequent Investors will be effected by the OFC Debenture Holder only on such Investors having confirmed the receipt of all of (1) above, (3) the sale and transfer of the OFC Debentures shall be effected only in the manner stipulated;

(l) understands that the Issuer Group or their Agents or the Company or its Agents or any person acting on behalf of the Issuer Group or the Company, may have an interest / position as regards the issue of the OFC Debentures and/or may have an existing banking relationship, financial, advisory or other relationship with them and/or may be in negotiation/discussion with them as to transactions of any kind;




(m) has the legal ability to invest in the OFC Debentures, and the investment does not contravene any provision of any law, regulation or contractual restriction or obligation or undertaking binding on or affecting the OFC Debenture Holder, or its assets;

(n) where the Debenture Holder is a company, it also confirms that: (i) notwithstanding the variable nature of the return on the OFC Debentures, the Debenture

Holder is not precluded under any law, rules, regulations and/ or circular/s issued by any statutory authority/ies including under the Companies Act, 1956 from investing in the OFC Debentures,

(ii) all necessary corporate or other necessary action has been taken to authorize, and that the Debenture Holder has corporate ability and authority, to invest in the OFC Debentures, and

(iii) investment in the OFC Debentures does not contravene any provisions of the Memorandum and the Articles of Association, or any law, regulation or contractual restriction or obligation or undertaking binding on or affecting the Debenture Holder or the Debenture Holder’s assets;

(o) where the Debenture Holder is a partnership firm, it also confirms that:

(i) investing in the OFC Debentures on the terms and conditions stated herein is within the scope of the partnership’s investment policy and does not conflict with the provisions of the partnership deed as currently in force,

(ii) the investment in OFC Debentures is being made by and on behalf of the partners (and binds all the partners jointly and severally), and that the partnership is in force and existing, and the investment has been ratified by all of the partners, jointly and severally,

(iii) the investment in OFC Debentures has been duly authorized by all the partners, and does not contravene any provisions of the partnership deed, or any law, regulation or contractual restriction or obligation or undertaking binding on or affecting the partnership or its assets or any of the partners or their respective assets,

(iv) for any minor as may have been admitted to the benefits of the partnership, the legal guardian of the minor has confirmed that the above applies equally to the minor as if the minor were a partner, and

(v) for any Hindu Undivided Family (“HUF”) that may be partner, the Karta declares that the above equally binds each of the co-parcenors and beneficiaries of the HUF;

(p) where the OFC Debenture Holder is a mutual fund / provident fund / superannuation fund / gratuity funds ( each a “fund”) it also confirms that: (i) investing in the OFC Debentures on the terms and conditions stated herein is within the

scope of the fund’s investment policy and does not conflict with the provisions of the trust deed/bye-laws/regulations as currently in force,

(ii) the investment in OFC Debentures is being made by and on behalf of the fund and that the fund is in force and existing, and the investment has been ratified by appropriate resolutions, and

(iii) the investment in OFC Debentures has been duly authorized and does not contravene any provisions of the trust deed/bye-laws/regulations as currently in force, or any law, regulation or contractual restriction or obligation or undertaking binding on or affecting the fund or its assets;

(q) where the Debenture Holder is a HUF, it also confirms that: (i) the Karta declares that the above equally binds each of the co-parcenors and

beneficiaries of the HUF, and




(ii) the Karta declares that the investment is for the benefit of each of the co-parcenors and beneficiaries of the HUF;

(r) where the Debenture Holder is an individual, also confirms that the investment in OFC Debentures does not contravene any provisions of any law, regulation or contractual restriction or obligation or undertaking binding on or affecting the individual or its assets and he can invest in such OFC Debentures; and

(s) where the Debenture Holder is a Portfolio Manager registered with SEBI, it also confirms that: (i) it is fully in compliance with the laws and regulations applicable to it including the

Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 (“Portfolio Manager Regulations”), the Prevention of Money Laundering Act, 2002 (“PML Act”), the Prevention of Money Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 (“PML Rules”), the requirements of Circular dated 20th March 2006 “Guidelines on Anti-Money Laundering Standards” of the SEBI (“AML Guidelines”) together with the PML Act and the PML Rules, the “AML Laws & Rules”) and all applicable know-your-client norms (“KYC Guidelines”) issued by any relevant regulator,

(ii) the Debenture Holder is appropriately investing in the OFC Debentures on behalf of its clients, (“Clients”) and the investment in the OFC Debentures is within the scope of its authority including pursuant to the agreement entered into by the Debenture Holder with each of the Clients, as provided for by Regulation 14 of the Portfolio Manager Regulations) (the “Agreement”), and accordingly binds each of the Clients. The Debenture Holder has independently satisfied itself (a) as to the suitability and appropriateness of the investment in the OFC Debentures as regards each of the Clients, (b) as to the capacity and authority of each of the Clients to invest in such OFC Debentures including obtaining of any licenses, authorizations, permissions, sanctions, consents or approvals, and (c) that the investment in such OFC Debentures will not contravene any applicable law,

(iii) Should there be any dispute by the Clients or any of them as regards the investment in the OFC Debentures including but not limited to the scope of its authority with regard to such investment, the Debenture Holder shall be deemed to be the principal and any loss or liability arising out of the investment in the OFC Debentures shall be to its own account and/or dealt with entirely by the Debenture Holder with each of the Clients, with no reference to the Issuer,

(iv) the Portfolio Manager has conducted suitability and appropriateness checks on each of its clients pursuant to the PM Regulations (as applicable), and the Portfolio Manager has fully advised each of its clients of the risks relating to investment in the OFC Debentures and of its rights against the Portfolio Manager as its principal and accepts responsibility for such advice,

(v) the Debenture Holder has strictly complied with all applicable AML Laws & Rules and KYC Guidelines in relation to each of the Clients,

(vi) the Debenture Holder consents to the disclosure or provision by the Issuer to any governmental or regulatory authority, or under any requirement of law, any information regarding the Client (to the extent made available to the Issuer by the Portfolio Manager) and the investment in the OFC Debenture, as required of the Issuer under applicable regulations and/or as requested by any governmental or regulatory authority or under a provision of law,




(vii) the Debenture Holder shall ensure that the Client understands the risks involved in investment in the OFC Debentures and is capable of taking the risks posed by such OFC Debentures and shall satisfy itself that the OFC Debentures are suitable to the risk profile of the Client;

(viii) the Debenture Holder shall provide its Clients with a copy of the Offer Document;

(ix) the Debenture Holder shall guide the Clients as to the applicable exit loads/exit options/liquidity support, (if any) etc. being provided by the Company or through the secondary market;

(x) the Debenture Holder further agrees to provide to the Issuer such additional information that the Issuer deems necessary or appropriate in order for the Issuer to comply with any such regulations and/or requests or requirements,

(xi) the Debenture Holder also further agrees (including on the basis of any request made by the Issuer in this regard), to provide, to any governmental or regulatory authority any information regarding any or all of the Clients, the investment in the OFC Debenture as required under regulations and/or as requested by any governmental or regulatory or other authority, and

(xii) the Debenture Holder further agrees that the Debenture Holder is appropriately investing in these OFC Debentures on behalf of their Clients and that the activities of the Portfolio Manager have not violated and will not violate applicable laws as regards private placements. Accordingly, the Debenture Holder confirms and undertakes that the Debenture Holder has not and will not use the name of the Issuer or any of its group entities or any of the words in any of its advertisement or any marketing material and the Debenture Holders has not acted and shall not act in a manner that would render this Issue of OFC Debentures, an offer to the public.

Payment of Interest on Allotted OFC Debenture(s) Interest on the face value of the OFC Debentures outstanding (subject to deduction of Income Tax at the prescribed rate under the Income Tax Act, 1961 or any statutory modification or re-enactment being in force) shall be due from the Date of Allotment up to the Redemption Date as provided in the Summary Term Sheet. Interest amount will be electronically credited to the bank account of those Debenture Holder(s) whose names appear on the list of beneficial owners as on the Record Date, provided to the Company by the Depository. In case of dispute of interest claim, the matter should be settled between the transferor(s) and the transferee(s), and not with the Company. All interest on the OFC Debenture(s) shall cease on the date of re-purchase of the OFC Debenture(s) by or on date of redemption on maturity of OFC Debenture(s), whichever is earlier. In case Debenture holders do not provide their correct bank particulars for electronic credit of interest the same may either be rejected or returned and the issuer shall not be held liable for the same in any manner whatsoever. Book closure / Record Date The Book closure / Record date will be 15 (Fifteen) days prior to the Interest Payment / Final Maturity Date or as may be directed by SEBI from time to time. The list of beneficial owner(s) provided by the Depository as at end of day of Record Date shall be used to determine the name(s) of person(s) to whom the Interest and/or Principal installment is to be paid.




Redemption on Maturity of OFC Debenture(s) Principal shall be credited to the account of Debenture Holders whose names appear in the register of registered Debenture Holder(s)/in the list of beneficial owner(s) provided to the Company by the Depository as on the Record Date. Principal payment will be made on the principal repayment date by crediting the bank account of beneficial owner(s) whose names appear on the list of beneficial owner(s) as on the Record Date, as provided to the Company by the Depository. The payment shall be released only after the OFC Debentures have been discharged by the Debenture Holder by signing the discharge form that shall be sent to the Debenture Holders immediately after the Record Date and after the consequent extinguishment of the OFC Debentures by the Company through the Depository. The Company’s liability towards the beneficial owner(s) for any payment or otherwise shall stand extinguished on the Maturity Date, in all events and upon the Company crediting the redemption amounts to the account of the beneficial owner(s). Further, the Company shall not be liable to pay any interest, income or compensation of any kind from the Maturity Date, or the date of redemption of the OFC Debenture. For this purpose bank details of Debenture Holders registered against their depository account will be used by the Company for payment of interest and redemption of principal amount. The Debenture Holders shall immediately intimate the Depository Participants with whom their depository accounts are maintained, about any change in their address or bank details. Investors may also request for principal payment by way of an ECS/ RTGS fund transfer. In such case, the investor will have to request the Company by way of an application, in formats required. Investors must note that NECS essentially operates on the new and unique bank account number, allotted by banks post implementation of Core Banking Solutions (CBS). Therefore, Debenture Holders are requested to furnish the new bank account number allotted by banks post implementation of CBS. In case Debenture holders do not provide their correct bank particulars for electronic credit of redemption proceeds the same may either be rejected or returned and the issuer shall not be held liable for the same in any manner whatsoever. Future borrowings The Company shall be entitled to make further issue(s) of debentures, raise further loans and/or avail further deferred payment guarantees or other financial facilities from time to time from such persons/banks/financial institutions or body corporate/or any other agency. Debenture Trustees The Company has appointed IL & FS Trust Company Limited as Debenture Trustee for this issue of OFC Debentures. All the rights and remedies of the Debenture Holders will vest in and will be exercised by the trustees without the same having to be referred to the Debenture Holders. The Company and Debenture Trustee has entered/will enter into a Debenture Trust Agreement(s) specifying, inter alia, the powers, authorities and obligations of the Debenture Trustee and Company. No Debenture Holder shall be entitled to proceed directly against the Company, unless Debenture




Trustee having become bound to do so or fail to do so. The Debenture Trustee will endeavor to protect the interest of the Debenture Holders under this Information Memorandum in the event of default in regard to timely payment of interest and principal by the Company. Main events of default and remedies are as under: (A) The occurrence of any one of the following events shall constitute an Event of Default by the

Company:

(i) Default is committed in payment of the principal amount of the OFC Debentures on the due date(s);

(ii) Default is committed in the payment of any interest on the OFC Debentures on the due date(s);

(iii) Default is committed in the performance or observance of any covenant, condition or provision contained in the Debenture Trust Agreement and/or the Financial Covenants and Conditions (other than the obligation to pay principal and interest) and, except where the Debenture Holders/beneficial owners/ Debenture Trustee certify that such default is in its opinion incapable of remedy (in which case no notice shall be required), such default continues for thirty days after written notice has been given thereof by the Debenture Trustee to the Company requiring the same to be remedied;

(iv) Any indebtedness of the Company for borrowed monies, that is, indebtedness for and in respect of monies borrowed or raised (whether or not for cash consideration) by whatever means (including acceptance, credits, deposits and leasing) becomes due prior to its stated maturity by reason of default of the terms thereof or any such indebtedness is not paid at its stated maturity;

(v) Any information given by the Company to the beneficial owner(s)/ Debenture Holder(s) or the Debenture Trustee and the warranties given or deemed to have been given by it to the beneficial owner(s)/Debenture Holder(s) or the Debenture Trustee is misleading or incorrect in any material respect;

(vi) If there is reasonable apprehension that the Company is unable to pay its debts or proceedings for taking it into liquidation, whether voluntarily or compulsorily, may be or have been commenced or any resolution for voluntary winding-up is passed or any petition for winding-up is admitted by a competent Court;

(vii) The Company has voluntarily or involuntarily become the subject of proceedings under any bankruptcy or insolvency law or the Company is voluntarily or involuntarily dissolved;

(viii) The Company is unable to or has admitted in writing its inability to pay its debts as and when the same are due or it is certified by an accountant appointed by the Debenture Trustee that the Company’s liabilities exceed its assets;

(x) The Company has taken or suffered to be taken any action for reorganisation of its capital, without the prior written consent of the Debenture Trustee;

(xi) If any extra-ordinary circumstances have occurred which make it improbable for the Company to fulfil its obligations under the Debenture Trust Agreement and/or the Debentures;

(x) The Company ceases or threatens to cease to carry on its business or gives notice of its intention to do so;

(xi) If the Company is unable to pay its debts within the meaning of section 434 of the




Companies Act

(xi) If the Company enters into amalgamation, reorganisation or reconstruction without the prior consent of the Debenture Trustee in writing;

(xii) If the Company shall, without the prior consent of the Debenture Trustee in writing, make or attempt to make any alteration to its Memorandum and Articles of Association, which affects the interest of the beneficial owner(s)/Debenture Holder(s).

(B) If any Event of Default or any event which, after the notice, or lapse of time, or both, would

constitute an Event of Default has happened, the Company shall, forthwith give notice thereof to the Debenture Trustee in writing specifying the nature of such Event of Default or of such event.

(All capitalized terms used in this section but not defined herein shall have the meanings assigned to, them respectively in the Debenture Trustee Agreement dated June 03, 2016 and Consent Letter dated June 03, 2016) OFC Debentures subject to the Summary Term Sheet, Debenture Trustee Agreement, etc. Over and above the aforesaid terms and conditions, the OFC Debentures, issued pursuant to this Information Memorandum, shall be subject to the terms and conditions incorporated in the Summary Term Sheet, relevant Debenture Trustee Agreement and also be subject to the provisions of the Memorandum and Articles of Association of the Company. In the event of a contradiction between the Summary Term Sheet and this Information Memorandum, the Summary Term Sheet will prevail. Governing Law and Jurisdiction The OFC Debentures are governed by and will be construed in accordance with the Indian Laws. The Issuer irrevocably agrees for the exclusive benefit of each Debenture Holder that the competent courts and tribunals at Mumbai are to have jurisdiction to settle any disputes which may arise out of or in connection with the OFC Debentures and that accordingly any suit, action or proceeding (“Proceedings”) arising out of or in connection with the OFC Debentures may be brought in such courts. The Issuer agrees that the process in connection with Proceedings in the competent courts and tribunals at Mumbai will be validly served on it if served upon it at its registered office. Confidentiality The information and data contained herein is submitted to each recipient of this Information Memorandum on a strictly private and confidential basis. By accepting a copy of this Information Memorandum, each recipient agrees that neither he/she nor any of its employees or advisors will use the information contained herein for any purpose other than evaluating the specific transactions described herein or will divulge to any other party any such information. This Information Memorandum must not be photocopied, reproduced, extracted or distributed in full or in part to any person other than the recipient without the prior written consent of the Company. If at any time any such reproduction or disclosure is made and the Company suffers any loss, damage or incurs liability of any kind whatsoever arising out of or in connection with any such reproduction or disclosure, the recipient of this Information Memorandum breaching the restriction on reproduction or disclosure agrees to hold harmless and indemnify the Company from and against any such loss, damage or liability.




OTHER INFORMATION (A) DECLARATION OF IRDAI ABOUT NON-RESPONSIBILITY FOR FINANCIAL SOUNDNESS OR

CORRECTNESS OF STATEMENTS

It must be distinctly understood, that the issuing of license and granting of approval by IRDAI should not in any way, be deemed or construed to be an approval by IRDAI, to this Information Memorandum nor should it be deemed that IRDAI has approved it nor does IRDAI take any responsibility either for the financial soundness of the Company or for the correctness of the statements made or opinions expressed in this connection.

(B) CONSENTS Consents in writing from the Debenture Trustee, the Rating Agency and the RTA to act in their

respective capacities have been obtained. Consents in writing of: Chief Executive Officer, Chief Compliance Officer, Chief Financial Officer,

have been obtained and such consents have not been withdrawn upto the time of filing this Information Memorandum with the BSE.

(C) DECLARATION BY THE DIRECTORS THAT- a. the company has complied with the provisions of the Act and the rules made thereunder; b. the compliance with the Act and the rules does not imply that payment of dividend or interest or

repayment of OFC Debentures, if applicable, is guaranteed by the Central Government; c. the monies received under the offer shall be used only for the purposes and objects indicated in

the Offer letter; (D) DECLARATION: We, Company Secretary & Chief Compliance Officer and the Chief Financial Officer of the

Company, declare that all the relevant provisions of the Companies Act, 1956 and the Companies Act 2013, the guidelines issued by the Government and the guidelines and circulars issued by SEBI established under Section 3 of the Securities and Exchange Board of India Act, 1992 and Insurance Regulatory and Development Authority of India (Other Forms of Capital) Regulations, 2016 dated 13th November, 2015 have been complied with and no statement made in this Information Memorandum is contrary to the provisions of the Companies Act, 1956 and the notified sections of the Companies Act, 2013 or the Securities and Exchange Board of India Act, 1992 or rules, guidelines and circulars issued thereunder.

We, Company Secretary & Chief Compliance Officer and the Chief Financial Officer of the

Company are authorised by the Board of Directors of the Company vide resolution dated April 29, 2016 to sign this form and declare that all the requirements of Companies Act, 2013 and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. Whatever is stated in this form and in the attachments thereto is true, correct and complete and no information material to the subject matter of this form has been suppressed or concealed and is as per the original records maintained by the promoters subscribing to the Memorandum of Association and Articles of Association.

For Reliance General Insurance Company Limited

Mohan Khandekar Company Secretary & Chief Compliance Officer


Hemant Jain Chief Financial Officer

Place: Mumbai Date : July 28, 2016




Annexure I List of Subsidiaries as on March 31, 2016 NIL List of Branches of Reliance General Insurance Company Limited as on March 31, 2016 Sr. No. Branch Name Branch Address

1 Ahmedabad I 3rd Floor, Zodiac Avenues, Opp. Mayor Bungalow, Nr. SBI Bank, Law Garden Navarpur, Ahmedabad-380009, Gujarat.

2 Ajmer Amar Plaza Complex, 2nd Floor, Amar Plaza, Near Private Bus Stand, J.L.N. Hospital Marg, Ajmer-305001, Rajasthan.

3 Alwar 1st Floor, Jain Eye Care, Vasant Vihar Scheme No. 3, Alwar- 301 001, Rajasthan.

4 Amritsar SCO 3, District Shopping Centre, Ranjeet Avenue, Amritsar-143001, Punjab.

5 Anand 2nd Floor, PM Square, Opposite Cafe Coffee Day, Anand Vidhyanagar Road, Anand-388001, Gujarat.

6 Baroda 3rd Floor, Startrek Building, Opposite ABS Tower, Old Padra Road, Baroda-390007, Gujarat.

7 Bharuch 3rd Floor, Srirang Palace, Zadeshwar Road, Bharuch-392012, Gujarat.

8 Chandigarh SCO-147-148, Second Floor, Sector-9 C, Chandigarh-160009.

9 Dehradun 2nd Floor, S4, NCR Plaza, Dehradun-248001, Uttrakhand.

10 Connaught Place

Flat No 10-15, 14th Floor, Vijaya Building,17, Barakhamba Road, Cannaught Place-110001, New Delhi.

11 Faizabad 1/13/16 A Civil Lines, Faizabad, Uttar Pradesh-224001.

12 Faridabad SCO- 2, 2nd Floor, Sector -16, Shopping Complex, Faridabad-121007, Haryana.

13 Gandhidham BBZ, S41, 12B, Above Shikar Puri Street, Main Market, Ahmedabad-370201, Gujarat.

14 Gandhinagar 501, 5th Floor, Megh Malhar Complex, Sector 11, Gandhinagar-382011, Gujarat.




Sr. No. Branch Name Branch Address

15 Gorakhpur 2nd Floor, Samriddhi International, Baldeva Plaza Lane, Golghar, Gorakhpur-273001, Uttar Pradesh.

16 Gurgaon Palm court Building, 7th Floor, Unit No 701, Sector 14, Gurgaon-122001, Haryana.

17 Haldwani 8/6, Bhutia Padav, Above HDFC Bank, Nainital Road, Haldwani, Uttarakhand - 263139

18 Hoshiarpur 2nd Floor, Booth No.3, Improvement Trust Scheme No.11, HDFC Building, Longowal Nagar, Chandigarh Road, Hoshiarpur-146001, Punjab.

19 Jaipur Man Upasana, Plot No. C-44, 6th Floor, Sardar Patel Marg, C-Scheme, Jaipur - 302001, Rajasthan.

20 Jalandhar SCO-2 Puda Complex, Ladowali Road, Jalandhar-144007, Punjab .

21 Jammu 5th Floor, GMC Building, Hotel TRG Building, Opp. Bahu Plaza, Rail Head Complex, Jammu-180001.

22 Jamnagar 2nd Floor, Avadh complex, Above TVS Parajya Showroom, Pandit Nehru Road., Jamnagar-361008, Gujarat.

23 Janakpuri C-1, Krishna Park, Above Sagar Ratna, Near Metro Station, Janakpuri, New Delhi-110058.

24 Kanpur Sai Square, 45, Bhargava Estate, Civil Lines, Kanpur-208001, Uttar Pradesh.

25 Kota 1st Floor, 10-A Jhalawar Road, Near Hotel Surya Royal, Kota-324007, Rajasthan.

26 Lucknow 1st Floor, A-Block, Suraj Deep Complex, 1 Jopling Road, Lucknow-226001, Uttar Pradesh.

27 Ludhiana 7th Floor, Surya Tower, 108, The Mall, Ludhiana- 141001, Punjab.

28 Mandi 1st Floor, Mangwari, Near Namdhari Gurudwara, Ram Nagar, Mandi-175001, Himachal Pradesh.

29 Ahmedabad II 3rd Floor, Poonam Plaza, Above ICICI Bank, Main Rambaug Road , Maninagar, Ahmedabad-380008, Gujarat.

30 Mehsana Radhe House, 2nd Floor, Opp. Classic Empire, Near Rajkamal Petrol Pump, Mehsana-384002, Gujarat.





31 Noida Waves Silver Tower, 6th Floor, Unit No. 19, Plot No. D-5, Sector 18, Noida-201301, Uttar Pradesh.

32 Nehru Place D-193, Okhla Industrial Estate, Phase 1, New Delhi-110020.

33 Panipat 1st Floor, City Centre, Opposite I B College, G.T Road, Near Bank of Rajasthan, Panipat-132103, Haryana.

34 Patiala SCO No.36,37, 1st & 2nd Floor, New Leela Bhawan, Patiala-147001, Punjab.

35 Rajkot Business Empire, 3rd Floor, Nr. Kathiyawad Gymkhana, Dr. Radhakrishnan Road, Rajkot-360001, Gujarat.

36 Rohtak 2nd Floor, SCO. 400-401-402, HDFC Bank Building, Model Town, Delhi Road, Rohtak-124001, Haryana.

37 Shimla 1st Floor, Kashyap Kutter, Panthagathi, Khasra no. 478/214/1 min, Shimla-171009, Himachal Pradesh.

38 Surat 604-605-606, 6th Floor, 21st Century Business Centre, Ring Road, Surat-395002, Gujarat.

39 Udaipur 2nd Floor, Tanishq, 25 MG collage road, Sardarpura, Udaipur-313001, Rajasthan.

40 Vapi 2nd Floor, Status Building, Near Surat People Bank, Gunjan Char Rasta, Vapi-396195, Gujarat.

41 Varanasi 2nd Floor, D-58/12 A7, Banaras TVS, Sigra, Gandhinagar-221010, Uttar Pradesh.

42 Vikas Marg 2nd Floor, Aditya Tower, Plot No. 5, Laxmi Nagar District Centre, Vikas Marg, Delhi- 110092.

43 Ahmednagar Amber Plaza, A building, 215 to 217, Station Road, Ahmednagar-414001, Maharashtra.

44 Akola 1st Floor, Samruddhi Arcade, Opposite Central Jail, Alsi Plots, Akola-444001 , Maharashtra.

45 Alleppy Kabeer Plaza, Boat Jetty, Alleppy- 688001, Kerala.

46 Anantpur Room No-9, Hari Krupa Towers, 13/191-192 RF Road, Anantapur-5175001, Andhra Pradesh.





47 Andheri 4th Floor, Chintamani Avenue, Off. Western Express Highway, Opp. Hotel Westin, Goregaon ( E), Mumbai-400063, Maharashtra.

48 Aurangabad C-9 & C-10, 2nd Floor, ABC Complex, Adalat Road, Aurangabad- 431001, Maharashtra.

49 Bangalore II SM Towers, II Floor, 11th main, III Block, Jayanagar, Bangalore-560011, Karnataka.

50 Bangalore I Unnati Arcade, 5/111 and 6/112, 1st Floor, 1St Block, Dr.Rajkumar Road, Rajajinagagar (Near Navarang Theatre), Bangalore -560010, Karnataka.

51 Belapur 3rd Floor, Apeejay Express, Plot No. 87, Sector 17, Vashi, Mumbai – 400703, Mahararashtra.

52 Belgaum Mahadev Plaza,CTS No.10719, Syno 1357/A, Near Kolhapur Circle, Nehru Nagar, Belgaum-590010, Karnataka.

53 Bellary No. 40, 1st Floor, SLV Towers, Parvathinagar Main Road, Bellary-583103, Karnataka.

54 Borivali Avirahi Bldg, 2nd Floor, Above Adidas Showroom, S.V. Road, Borivali, Mumbai-400092, Maharashtra.

55 Calicut 2nd Floor, Citadel Arcade, R.C Road, Opposite Tagore Centenary Hall, Kozhikode-673032, Kerala.

56 Chennai NTG Complex, B1, No.14, Ramaswamy Street,West Tambaram,Chennai-600045, Tamil Nadu.

57 Chennai II H Block, 4th Street, Door No 12, H 2035, 15th Main Road, Annanagar west, Chennai-600040, Tamil Nadu.

58 Chitradurga 1st Floor, Maganur Commercial Complex, Near by KSRTC Bus stand, B D Road, Chitradurga-577501, Karnataka.

59 Cochin I 4th Floor, Elizabeth Alexander Memorial Building., Opposite Rainbow Arch Bridge, Marine Drive, Shanmugham Road, Kozhikode-682021, Kerala.





60 Coimbatore 2nd Floor, Sri Abhirami Towers, 43 B, Cowly Brown Road, R S Puram, Coimbatore-641002, Tamil Nadu.

61 Electronic City Sri Balaji Enclave, No. 782, 16th Main, BTM Layout, 2nd Stage, Bangalore-560075, Karnataka.

62 Erode 3rd Floor, 408, Perundurai Road, Erode-638011, Tamil Nadu.

63 Fort Ground Floor, Veena Chambers, Opposite Bombay Stock Exchange, Dalal Street, Mumbai-400001, Maharashtra.

64 Ghatkopar 210, Sai Infotech, RP Mehta Marg, Patel Chowk, Mumbai-400077, Maharashtra.

65 Goa Fourth Floor, Mathias Plaza, 18th June Road, Panaji-403001, Goa.

66 Gulbarga 3rd Floor, Asain Plaza, Timapuri Circle , Main Road, Gulbarga-585102, Karnataka.

67 Hassan 1st Floor, Kruthika Arcade, Near NR Circle, Hassan-573201, Karnataka.

68 Hubli CTS 472-474, V A Kalburgi Square, Desai Cross, Deshpande Nagar, Hubli-580029, Karnataka.

69 Hyderabad II 6/4/8, 1st Floor, Vijeta Sanjeevani Apts, Opposite Gandhi Hospital, Musheerabad-500020, Andhra Pradesh.

70 Hyderabad III 4-1-327 to 337, IV Floor, Sagar Plaza, Abids Road, Hyderabad-500001,

71 Kannur 1st Floor, Aditya Towers, Thavakkara Road, Opposite to RTO Office, Collectrate, Kannur-670002, Kerala.

72 Karimnagar 3rd Floor, Kyass towers, Dr. Ambedkar Road, Court Chowrasta, Hyderabad-505001, Andhra Pradesh.

73 Khammam 83-208, Wyra Road, Khammam - 507001, Andhra Pradesh.

74 Kolhapur Gem Stone, Raobahadur Dajirao Vichare Complex, 517 A/2 E, Near Central S.T. Stand, New Shaupuri, Kolhapur-416002, Maharashtra.





75 Kottayam 2nd Floor, Jacksons Plaza, Manorama Junction, Chelliyozhukkom Road, Kottayam-686001, Kerala.

76 Madurai Sri Meenakshi Plaza, 1st Floor, Plot No. HIG 55, 80 Feet Road, Anna Nagar, Madurai-625020, Tamil Nadu.

77 Mahim 602, 6th Floor, Laxmi Commercial Centre, Senapati Bapat Marg, Dadar (W), Mumbai - 400028, Maharashtra.

78 Mallapuram 2nd Floor, Kozhikode Road, Perithalmanna, Malappuram-679322, Kerala.

79 Mangalore 4th Floor, Maximus commercial complex, Municipal corporation of Manglore-575001, Karnataka.

80 Mysore 1st Floor, Mysore Trade Centre, Opposite KSRTC Bus Stand, Mysore-570001, Karnataka.

81 Nagpur Ayodha Building, 1st Floor, 119, Near Bajaj Nagar Chowk,Behind Akruti Furniture, Bajaj Nagar, Nagpur-440010, Maharashtra.

82 Corporate office & Nariman Point branch

Reliance Centre, South Wing, 4th Floor, Off. Western Express Highway, Santacruz (East), Mumbai-400055, Maharashtra.

83 Nashik 106-107-108, First Floor, Space Cosmos, Ashok Stambh, Nashik-422001, Maharashtra.

84 Nizamabad 2nd Floor, Balaji Bhavan, H.No. 1-1-329, Beside Kalika Devi Kamaan,Vinayak Nagar, Nizamabad-503001, Andhra Pradesh.

85 Palakkad Floor, Mangalam Towers, Opp. Town Bus stand, T B Road,Palakkad - 678014 , Kerala.

86 Pathanmitta Kakkanattu Residential cum commercial Complex, 2nd Floor, St. Peters Junction, Pathanamthitta-689645, Kerala.

87 Pondicherry 1st Floor, No.89, 100 Feet Road, Vivyan Plaza, Ground Floor, Mudaliar Pet, Pondicherry-605004, Tamil Nadu.

88 Pune 1st Floor Pushpam Plaza, Tadiwala Road,Pune-411004, Maharashtra.





89 Kollam ( quilon)

1st Floor, Varinjam Towers, Division XLI, Building No. 108 of kollam Corporation, Residency Road, Kollam-691001, Kerala.

90 Rajahmundry Door No.79-1-6, 2nd Floor, Sowbhagya Nilayam, Corner Of J N Road & Tilak Road, Rajahmundry- 533105, Andhra Pradesh.

91 Salem Shri Laxmi Complex, 1st Floor, Bharti Street, Omalur Main Road, Swarnapuri, Salem-636004, Tamil Nadu.

92 Solapur Son Plaza, 2nd Floor, Murarji Peth, Opposite Hotel Shiv Parvati, Subhash chowk, Lucky Chowk, Solapur-413001, Maharashtra.

93 Chennai Old No:15, New No:29, North Usman Road, T. Nagar, Tambaram-600 017, Tamil Nadu.

94 Thane Kalpataru Prime, Unit no.2, 1st Floor, Plot no. D-3, Road no. 16, Wagle Industrial Estate, Thane (West)-400604, Maharashtra.

95 Tirunevelli 10/4/4. Thaha Plaza, South Bye Pass Road, Vannerpettai, Thirunelveli-627003, Tamil Nadu.

96 Tripur I Floor, Dhanam Towers, No-1, Binny MainRoad, Tirupur-641601, Tamil Nadu.

97 Thrissur 2nd Floor, Global Plaza, Opposite New Railway Platform, Vanchikulam Road, Puthoole P O, Thrissur-680004, Kerala.

98 Trichy No.15 PLA, Kanagu Towers, II Floor, 15A, Thillai Nagar Main Road, Tiruchirappalli-620018, Tamil Nadu.

99 Trivandrum 3rd Floor, 5th Level, Trans Towers, Vazthacadu, Thiruvananthapuram-695014, Kerala.

100 Vashi 3rd Floor, Apeejay Express, Plot No. 87, Sector 17, Vashi, Mumbai – 400703, Maharashtra.

101 Vellore No.73, 1st Floor, Above HDFC Bank, Officer Line, Vellore-632001, Tamil Nadu.

102 Vijayawada 40;1-2-3, 3rd Floor, Surya Towers, M G Road, Labbipet, Vijayawaada-520010, Andhra pradesh.

103 Vizag D.No.47-14-5,403, 3rd Floor, Eshwar Paradise, Dwarka Nagar Main Road, Visakhapatnam-530016, Andhra Pradesh.





104 Warangal 11-25-131/2, 1st Floor, SSS Plaza, M.G. Road, Warangal-506002, Andhra Pradesh.

105 Asansol 2nd Floor, Parbati Shopping Arcade G.T.Road (Mission More) Asansol-713301, West Bengal.

106 Bhillai Plot No.29, Nehru Nagar (East), Commercial Complex, Bhillai-490020, Chattisgarh.

107 Bhopal FF-16, Mansarovar Commercial Complex, Block C, Near Habibganj Railway Station, Hoshangabad Road, Bhopal-462016, Madhya Pradesh.

108 Bhubaneshwar 2nd Floor, 5 Janpath, Unit - 3, Birabarapur-751001, Orissa.

109 Bokaro 3rd Floor, Chandra Kali Bhawan, M-5, City Center, Bokaro Steel City-827004, Jharkhand.

110 Chindwara Hall No. M-2, 1st Floor,Mansarovar Complex, Near Bus Stand, Chhindwara-480001, Madhya Pradesh.

111 Dhanbad Commerce House 2 (Ashoka Bazar Showroom), 1st floor, Shastri Nagar, Dhanbad-826001, Jharkhand.

112 Durgapur Galaxy, 2nd Floor, Shahid Khudiram Sarani, City Centre, Durgapur-713216, West Bengal.

113 Guwahati 5th Floor, Anil Plaza, Besides IDBI Bank , G.S Road, Guwahati-781005, Assam.

114 Howrah 49, Dobson Road, Near A.C. Market, 2nd Floor, Howrah-711101, West Bengal.

115 Indore 301-302, Corporate House , 3rd Floor, Opposite Jhabua Tower, RNT Marg, Indore-452001, Madhya Pradesh.

116 Jabalpur 2nd Floor Khanujaa Complex, 864 Napeir Town, Opp. Maruti Showroom, Jabalpur Hospital Road, Jabalpur-482001, Madhya Pradesh.

117 Jamshedpur Dhiren Tower, Q Road, S. B. Shop area, Bistupur, Jamshedpur-831001, Jharkhand.

118 Kharagpur 1st Floor, MS-Tower, OT Road,India Kharagpur-721305, West Bengal.

119 Kolkata I 38-B, Himalaya House, 8th Floor, Chowrangee Road, Kolkata-700071, West Bengal.





120 Kolkata II Himalaya House, 8th Floor, 38 B, J.L.Nehru Road, Kolkata-700 071, West Bengal.

121 Patna 301- 302, 3rd Floor, Kaushalya Estate Dak Bunglow Chowraha,Bandar Bagicha, Patna-800001, Bihar.

122 Raipur 516, 5th Floor, National Corporate Park, G.E.Road, Raipur- 492099, Chattisgarh.

123 Ranchi JD Corporate No 3, First Floor Opposite Mahavir Towers, Main Road, Ranchi-834001, Jharkhand.

124 Rourkela 2nd Floor, Choudhary Complex, Pamposh Road, Rourkela-769004, Odisha.

125 Siliguri Geetanjali Complex, 3rd Floor, Sevoke Road, Siliguri-734001, West Bengal.

126 Jodhpur 2nd Floor, Plot no 130 A, Patrakar Colony, New Power House Road, Jodhpur-342003, Rajasthan.




Annexure II Details of material litigation

Details of criminal prosecution pending against the Promoter: There is no criminal prosecution pending against Reliance Capital Limited, the promoter of Issuer.

Annexure III Details of acts of material frauds committed against the company in the last three years:

There are no acts of material frauds committed against the company in the last three years

Annexure IV

Shareholding pattern of the Company as on last quarter end i.e. March 31, 2016: Sr. No. Particulars Total No. of

Equity Shares Number of

shares held in dematerialised

Form

Total Shareholding as % of Total No. of equity

shares

(A) Promoter & Promoter Group 122110660 122110655 99.46

(B) Shares held by Employee Trusts 664300 664300 0.54

GRAND TOTAL (A)+(B) 122774960 122774955 100.00

Annexure V

List of top 10 holders of equity shares of the Company as on the latest quarter end i.e. March 31, 2016:- Sr. No.

Name of the Shareholder(s)

Total No. of Equity Shares

No. of shares in demat form

Total Shareholding as % of total no of equity shares

1 Reliance Capital Limited

122110660 122110655 99.46

2 Reliance General Insurance Employees Benefit Trust

664300 664300 0.54

TOTAL 122774960 122774955 100




Annexure VI Details of Promoters of the Issuer:- Details of Promoter Holding in the Issuer as on the latest quarter end i.e. March 31, 2016

Sr. No.

Name of the shareholders

Total No. of Equity Shares

No. of shares in

demat form

Total shareholding as % of total no of equity

shares

No. of Shares

Pledged

% of Shares pledged with

respect to shares owned

1 Reliance Capital Limited 12,21,10,660 12,21,10,655 99.46 NIL NIL

Annnexure VII

Abridged version of Financial Information (like Profit & Loss Statement, Balance Sheet and Cash Flow Statement) for at least three years and auditor qualifications, if any.

Annexure VII - A

Balance Sheet as at March 31, 2016, March 31, 2015 and March 31, 2014

(Rs. in crore)

As at March

31, 2016 As at March

31, 2015 As at March 31, 2014

I EQUITY AND LIABILITIES

1) Shareholders' funds

1,013

930

848

Share Application money Pending

90

90

-

2) Non-current liabilities

1

1

1

3) Current liabilities

5,188

4,642

4,038

Total

6,293

5,663

4,888

II ASSETS

1) Non-current assets

4,103

3,977

3,110

2) Current assets

2,190

1,686

1,778

Total

6,293

5,663

4,888




Statement of Profit and Loss for the year ended March 31, 2016, March 31, 2015 and March 31, 2014

(Rs. in crore)

As at March 31,

2016 As at March 31,

2015 As at March

31, 2014

A Total Revenue 3,530

3,388

2,946

B Total Expenses 3,431

3,307

2,882

C Profit before exceptional items and tax (A-B) 99 81

64

D Exceptional items (net) -

-

-

E Profit before tax (C-D) 99 81

64

F Tax Expenses (net) - -

-

G Profit after tax (E-F) 99 81

64 H Earnings per equity share face value of Rs.

10 each fully paid up (basic/diluted) 8.07/7.78 6.63/6.59 5.22

Annexure VII - B

Cash flow statement for the year ended March 31, 2016, March 31, 2015 and March 31, 2014

(Rs. in crore)

As at March

31, 2016 As at March

31, 2015 As at March 31, 2014

A. Cash flows from operating activities -

31

680

303

B. Cash flows from investing activities

10 -

761 -

271

C. Cash flows from financing activities -

90

-

Net increase / (decrease) in cash and cash equivalents (A + B + C)

-21

9

32

Cash and cash equivalents at the beginning of the year

46

37

5

Cash and cash equivalents at the beginning of the year

25

45

37

There have been no audit qualifications in the last three years.

Changes in Accounting Policies – During the Last 3 Years

A) There is no change in Accounting Policies in FY 2013-14 as compared to FY 2012-13.

B) There are following changes in Accounting Policies in FY 2014-15 as compared to FY 2013-14

a. Allocation of Operating Expenses relating to Insurance business:- In FY 2014-15, Company had changed the method of allocation of Operating expenses relating to Insurance business as under:-




Expenses which are attributable and identifiable to the business segments, are directly charged to relevant business segment. This is determined by the management, based on the nature of the expenses and their relationship with various business segments, wherever possible.

Other expenses, that are not identifiable to a segments, are allocated on the basis of ratio of net written premium in each business class

Till FY 2013-14, All the expenses are directly allocated on the basis of ratio of net written premium in each business class without any identification of expenses that are directly attributable to respective business segments.

b. Allocation of Investment Income:- In FY 2014-15, Company had changed the method of allocation of Investment Income as under:-

Allocation of Investment Income between revenue and profit and loss account on the basis of the ratio of average policyholders funds to average shareholders funds respectively; average being balance at the beginning of the year and at the end of the year.

Further, Investment income between policyholders is allocated on the basis of the ratio of average policyholders funds comprising reserves for unexpired risks, IBNR, IBNER and Outstanding Claims.

Till FY 2013-14, Investment Income between policyholders are allocated on the basis of Gross Direct Premium.

c. Method of depreciation on Fixed Assets:- In FY 2014-15, Company had changed the method of providing depreciation on straight line method using useful lives of the assets on all tangible fixed assets as required as per Part C of Schedule II of the Companies Act, 2013.

Till FY 2013-14, Depreciation on fixed assets were provided using written down value method for tangible fixed assets other than certain office equipment and computer for which Company was following straight line method.

d. Creation of Reserve for Unexpired Risk (URR):- In FY 2014-15, Company had computed URR on the basis of 1/365 method i.e. actual number of days left in the policy period divided by total number of days of policy period.

Till FY 2013-14, URR was subject to a minimum of 100% in case of marine hull business and 50% in case of other business, of net written premium, of unexpired policies as on the balance sheet date ( i.e. those policies are not considered, where policy period has lapsed during the year itself based on IRDAI circular no. IRDA/F&A/CIR/FA/126/07/2013) as required by Section 64V (1)(ii)(b) of the Insurance Act, 1938. In FY 2014-15, the same is not considered for the purpose of URR calculation based on IRDAI circular no. IRDA/F&A/CIR/FA/126/07/2013.

C) There is no change in Accounting Policies in FY 2015-16 as compared to FY 2014-15.




Credit Rating Letter Annexure 1




Letter from the Debenture Trustee Annexure 2




IRDAI Approval Letter Annexure 3




Annexure 4 Shareholders Resolution dated May 25, 2016 Certified true copy of the resolution alongwith the statement passed by the Members of Reliance General Insurance Company Limited on May 25, 2016. “RESOLVED THAT pursuant to the provisions of Sections 23, 42, 71 and all other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force) read with the rules made thereunder, as may be amended from time to time, and pursuant to the provisions of Securities and Exchange board of India (SEBI) (Issue and Listing of Debt Securities) Regulations, 2008, as amended, the Insurance Act, 1938 (as amended from time to time) read with rules and regulations made thereunder including the Insurance Regulatory and Development Authority of India (Other Forms of Capital) Regulations, 2015, the Insurance Regulatory and Development Authority Act, 1999 (as amended from time to time), and other applicable SEBI regulations and guidelines, the provisions of the Memorandum and Articles of Association of the Company and subject to such other applicable laws, rules and regulations and guidelines, and subject to necessary approvals, permissions, consents and sanctions of Insurance Regulatory and Development Authority of India (IRDAI) and concerned statutory and other authorities and subject to such conditions and modifications as may be prescribed by any of them while granting such approvals, permissions, consents and sanctions, which may be agreed to by the Board of Directors of the Company approval of the Members of the Company be and is hereby accorded to the Board of Directors of the Company (hereinafter referred to as “the Board” which term shall be deemed to include any Committee which the Board may constitute to exercise its powers, including the powers conferred by this Resolution) for making offer(s) or invitation(s) to subscribe to Unsecured / Redeemable Non-Convertible Debentures (NCDs) including but not limited to subordinated Debentures, bond, and/or other debt securities, etc., on a private placement basis, in one or more tranches upto Rupees Two Hundred Thirty Crore, as may be approved by the Members. RESOLVED FURTHER THAT for the purpose of giving effect to this resolution, the Board/Committee be and is hereby authorised to determine the terms of issue including the class of investors to whom NCDs are to be issued, time, securities to be offered, the number of NCDs, tranches, issue price, tenor, interest rate, premium / discount, listing and to do all such acts and things and deal with all such matters and take all such steps as may be necessary and to sign and execute any deeds/documents/ undertakings/ agreements/ papers/ writings, as may be required in this regard.” Certified to be true For Reliance General Insurance Company Limited Sd/- Mohan Khandekar Company Secretary & Chief Compliance Officer




Annexure 5 Board Resolution dated April 29, 2016 Certified true copy of the resolution passed by the Board of Directors of Reliance General Insurance Company Limited at their meeting held on April 29, 2016. "RESOLVED THAT pursuant to the provisions of Section 23, 42, 71 and 179(3)(d) of the Companies Act, 2013 and Companies (Meetings of Board and its Powers) Rules, 2014 as amended from time to time and in accordance with and subject to the provisions of the Articles of Association of the Company, and Insurance Regulatory and Development Authority of India (Other Forms of Capital) Regulations 2015, the Company do borrow monies by issuing from time to time, Unsecured, Redeemable, Subordinated Non Convertible Debentures (“Debentures”) upto an outstanding amount of Rs. 230 crore in one or more tranches on Private Placement basis, on the terms and conditions to be mutually agreed upon with the respective allottees. RESOLVED FURTHER THAT any two of Mr. Soumen Ghosh, Director, Mr. Rakesh Jain, Executive Director & CEO, Mr. Mohan Khandekar, Company Secretary & Chief Compliance Officer and Mr. Hemant Jain, Chief Financial Officer of the Company be and are hereby jointly authorised to allot the debentures to the eligible applicants and make necessary entries in the register of debentureholders. RESOLVED FURTHER THAT the said Debentures be credited in demat form and necessary application(s) be made to National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), the Depositories, to hold the debentures in demat form and any two of Mr. Soumen Ghosh, Director, Mr. Rakesh Jain, Executive Director & CEO, Mr. Mohan Khandekar, Company Secretary & Chief Compliance Officer and Mr. Hemant Jain, Chief Financial Officer of the Company, be and are hereby jointly authorised to take necessary steps to induct the said Debentures into the Depository System. RESOLVED FURTHER THAT applications, if required, be made to the National Stock Exchange of India Limited and/or the BSE Limited for seeking permission to deal in and for official quotation of the said Debentures and that any two of Mr. Soumen Ghosh, Director, Mr. Rakesh Jain, Executive Director & CEO, Mr. Mohan Khandekar, Company Secretary & Chief Compliance Officer and Mr. Hemant Jain, Chief Financial Officer of the Company, be and are hereby jointlyy authorised to sign application forms/other documents and comply with all other formalities and requirements as may required by the Stock Exchange(s) in connection with the said enlistment and that the Common Seal of the Company be affixed, if necessary, in terms of the Articles of Association of the Company. RESOLVED FURTHER THAT any two of Mr. Soumen Ghosh, Director, Mr. Rakesh Jain, Executive Director & CEO, Mr. Mohan Khandekar, Company Secretary & Chief Compliance Officer and Mr. Hemant Jain, Chief Financial Officer of the Company be and is hereby jointly authorised to appoint Trustees and finalise and settle various documents in consultation with the subscribers / holders / trustees / solicitors of the Company, and to do all such acts and things and deal with all such matters and take all such steps as may be necessary to give effect to this resolution including to delegate authorities to executives of the Company/others to take steps to sign and execute any deeds/ documents/ agreements/ papers/ writings/ Information memorandum, as may be required in this regard under the Common Seal of the Company or otherwise.” RESOLVED FURTHER THAT for the purpose of putting into effect the proposed special resolution, the Extra-Ordinary General Meeting of the shareholders of the Company be called on the 25th May, 2016 at 11.00 a.m. RESOLVED FURTHER THAT the Extra-Ordinary General Meeting of the shareholders of the Company be convened at a shorter notice and the draft notice of such Extra-Ordinary General Meeting as placed before this meeting be and is hereby approved and that Mr. Soumen Ghosh, Director, Mr. Rakesh Jain, Executive Director & CEO, and Mr. Mohan Khandekar, Company




Secretary and Chief Compliance Officer, Mr. Hemant Jain, Chief Financial Officer and / or any other person of the Company as may be nominated by the Board of Directors of the Company, be and are hereby severally authorized to make such corrections, alterations to the draft notice as may be necessary and issue the said notice to the members of the Company.

Certified to be true For Reliance General Insurance Company Limited Sd/- Mohan Khandekar Company Secretary & Chief Compliance Officer




Annexure 6

The Financials for the year ended March 31, 2015, March 31, 2014 and March 31, 2013

Annual Report 2014 - 2015

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BOARD OF DIRECTORSMr. Rajendra P. Chitale Director

Mr. H. Ansari Director

Mrs. Chhaya Virani Director

Mr. Soumen Ghosh Director

Mr. Rakesh Jain Executive Director & CEO

Mr. D. Sengupta Director (ceased to be a Director w.e.f. 11th September, 2014)

COMPANY SECRETARYMr. Mohan Khandekar

CHIEF FINANCIAL OFFICERMr. Hemant K. Jain

BANKERSHDFC Bank limited

ICICI Bank limited

HSBC

Citi Bank

SBI

IDBI Bank

Yes Bank

AUDITORSM/s. Singhi & Co.

M/s. Pathak H.D. & Associates

REGISTERED OFFICE19, Reliance Centre,

Walchand Hirachand Marg,

Ballard Estate, Mumbai - 400 001.

CORPORATE OFFICE570, Rectifier House,

Naigaum Cross Road,

Next to Royal Industrial Estate,

Wadala (W), Mumbai - 400 031.

Tel. : +91 - 22 - 30479600

Fax : +91 - 22 - 30479650

www.reliancegeneral.co.in

LONDON REPRESENTATIVE OFFICEC/o Reliance Globalcom limited,

Sovereign Court, 1st Floor,

635, Sipson Road, Sipson, West Drayton,

Middlesex - UB7 OJE.

Tel.: 020 82824665

15th Annual Report

INDEx

Index & Company information 1

Directors' Report 2

Report on Corporate Governance 21

Management Report 28

Auditors' Report 34

Revenue Accounts 37

Profit & Loss Account 40

Balance Sheet 41

Schedules annexed to Balance Sheet, Revenue Account and Profit & Loss Account

42

Receipts and Payment Accounts 53

Accounting policies and Notes to Accounts 54

Reliance General Insurance Company Limited

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DIRECTORS’ REPORTTo the Members,

Your Directors present the Fifteenth Annual Report together with the Audited Statement of Accounts for the Financial Year ended 31st March, 2015.

Financial Results(` in crore)

Particulars Year ended 31st March, 2015 Year ended 31st March, 2014Gross Direct Premium 2,715.83 2,388.83Insurance Profit/(Loss) 6.67 (23.37)Investment Income on Shareholders fund 95.71 87.41Profit/(Loss) before Tax 81.39 64.08Income tax-earlier year tax - -Provision for Deferred Tax - -Profit/(Loss) after Tax 81.39 64.08

DividendYour Directors do not recommend any dividend for the Financial Year ended 31st March, 2015.

OperationsYour Company in the current year has underwritten Gross Direct Premium of ` 2,715.83 crore as against ` 2,388.83 crore in the previous year registering an increase by 13.69%. The main focus during the year was again to improve the profitability of the Company.

The income from Investments for the year under review is ` 503.72 crore as against ` 426.16 crore in the previous year. The Profit Before Tax earned during the Financial Year 2014-15 is ` 81.39 crore as against Profit of ` 64.08 crore during the previous year.

Your Company had issued 43.54 lac policies during the Financial Year as compared to 36.75 lac in the previous year.

Allotment of SharesReliance Capital limited (RCl) has infused capital ` 90 crore (` 15 crore on 30th September, 2014, ` 35 crore on 31st December, 2014 and ̀ 40 crore on 31st March, 2015) during the Financial Year 2014-15. RCl has made an application to its Regulator – The Reserve Bank of India (RBI) for approval to infuse capital in Reliance General Insurance Company limited. The Company has not allotted shares to RCl due to approval pending from RBI to infuse capital in RGICl. The Company shall allot the shares to RCl on rights basis post receipt of approval from RBI.

Industry DevelopmentsAs per the figures released by Insurance Regulatory and Development Authority of India (IRDAI), the Gross Premium Underwritten by the industry for the Financial Year ended 31st March, 2015 was ` 84,802.29 crore as against ` 77,538.25 crore during the previous year showing growth rate of 9.37%.

Insurance Laws (Amendment) Act, 2015 - New Regulatory ChangesThe Insurance laws (Amendment) Act, 2015 was passed by lok Sabha on 4th March, 2015 and by Rajya Sabha on 12th March, 2015. It was notified in the Official Gazette of India on 23rd March, 2014 and comes into effect from 26th December, 2014. The passage of the Act thus paved the way for major reform related amendments in the Insurance Act, 1938, the General Insurance Business (Nationalization) Act, 1972 and the Insurance Regulatory and Development Authority (IRDA) Act, 1999. The Insurance laws (Amendment) Act, 2015 enacted, seamlessly replaces the Insurance laws (Amendment) Ordinance, 2014, which came into force on 26th December, 2014. The amendment Act removes archaic and redundant provisions in the legislations and incorporates certain provisions to provide Insurance Regulatory and Development Authority of India (IRDAI) with the flexibility to discharge its functions more effectively and efficiently.

Corporate GovernanceIRDAI has issued comprehensive guidelines on Corporate Governance for adoption of the Insurance Companies. These guidelines are effective from 1st April, 2010. The objective of these guidelines is to ensure that the structure, responsibilities and functions of the Board of Directors and senior management of the Company fully recognize the expectations of all stakeholders as well as those of the Regulator. The Company’s philosophy on Corporate Governance envisages the attainment of highest


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levels of transparency, accountability and equity, in all facets of its operations and in all interactions with its stakeholders, including shareholders, employees, the Government and the society. A separate Corporate Governance Report is presented in a separate section which forms part of the Annual Report. As required under the Corporate Governance Guidelines certificate from the Compliance Officer of the Company certifying that the Company has complied with the Corporate Governance Guidelines, also forms the part of the Annual Report.

ReinsuranceThe Company has a well structured Reinsurance Program supported by Insurance Regulatory and Development Authority of India (IRDAI) approved securities with a valid UIN for 2015-16 spread across the globe. The Reinsurance Programme has been renewed and placed completely with reinsurers with approved credit rating as acceptable by IRDAI. The Reinsurance Program has an optimum mix of proportional treaties to enhance Company’s automatic underwriting capacity and non proportional treaties to protect the Company’s net retentions.

Based on the Company’s Net Worth, Business Plans, Portfolio Mix and detailed analysis of Company’s historical data retention levels have been optimally fixed to ensure a healthy Solvency Margin, stability in financial results, minimum volatility in earnings and generate value to stakeholders. The Company would also like to emphasize on it’s preparedness for catastrophic events by regular monitoring of exposures, assessing accumulations through statistical CAT modeling tools and having adequate protection in place.

Information TechnologyIn today’s world, Technology is the Key! One of the essential foundations of creating a successful Company over the long term is to be innovative and to be on the continuous lookout for the potential prospects to launch and implement novel programs and ideas. Timely identification of new technological trends and exploiting those opportunities through process automation also help achieve the Company’s vision to attain efficiency, effectiveness and delight the customers at all touch points. It not only helps the Company to improve the quality of services catered to the employees but also increases their satisfaction and engagement levels.

During the Financial Year, Information Technology delivered on following areas:

1) The Company launched a Revamped retail IRPAS system to facilitate Motor, Health and Travel Booking process. Refreshed Application had capacity to do Product Configuration with Rule & Underwriting Controls.

2) The Company strengthened Commercial lines booking on Genisys Configurator by automating Mega Risk, Stand-Alone Terrorism & Fire Loss of Profit Policies. Core Admin Module was build for controls on Underwriting Complex Policies with Reinsurance management for Treaty and Facultative lines.

3) Motor Plus (M+) application was launched to take Custom Servicing to next level with real time assessment, claim allocation based on loss location and document sync. This application enabled services team to create delight factor for customer in claims settlement process.

4) Fresh look and Revamped Customer website was launched with real time chat screen sharing and social integration.

5) Filed Force was enabled for conducting Risk Inspection for Fire Products on Mobility enhancing and bringing new experience to field Underwriting process.

6) With the Objective of monitoring Key Business Parameters, Business Intelligence (BI) platforms were strengthened from Operational and Business Dimensions to have better control on process.

PersonnelThe Company won Special Recognition for “Best HR Technology (Insurance)” from the first Inspiring Work Place Awards 2014 conducted by Banking Frontiers magazine (Knowledge Partner – Deloitte). HR Team was felicitated for meeting the customers’ needs by automating most of the processes internally.

Employee Satisfaction and Growth plays the most pivotal role in order to become an organization of world standards. Thus, it is imperative that the Company create a nurturing environment which has a good mix of effective and appropriate training programs, self-learning and career opportunities, employee recognition and a work place which is fun, vibrant and interactive. Healthy employees build healthy organization. The Company takes many initiatives to promote health and wellness at work place. The Company is also committed to take initiatives towards environment protection and sustenance and to do its bit for the society for the better tomorrow as being a good corporate citizen is a part of the core values.

a) Training

The Company firmly believes that the sheer dynamism of global influence and competition today demands the workforce to be more agile and adaptable than ever before. Hence, this changing scenario and fluctuating economy calls for substantial


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soft skills as well as technical, functional and product training for the people to be equipped enough to deal with it. Hence, for this Financial Year, the Company tried not going by the conventional mode of training like "Talk & Chalk" model or the mundane power point presentation but instead it created numerous platforms for knowledge sharing and knowledge transfer.

The Flagship Programs are as follows:

1) Commercial line training for Sales Managers (CAST) - A continuous learning platform for the Sales Managers to help them gain better understanding of Commercial-line products which would in turn help them to have a better portfolio-mix.

2) Product Knowledge Enhancement Program (PKEP) - This aims at effective engagement with the Company’s intermediaries in order to continually garner their incremental mindshare.

3) Train The Trainer (TTT) – The Company have introduced a concept of Knowledge Champion (KC) where a set of Commercial Underwriter experts are identified and they go through 2 days of rigorous training to sharpen their skill as “TRAINER”.

4) I-lEAD – A leadership Program for Mid Management which is a 2 days workshop conducted for the learning leaders of the company to make them more sensitive to the needs of the teams.

b) Reward & Recognition

Employees are the Force and their contribution deserves to be rewarded! To encourage Meritocracy and reward employee’s significant and exceptional accomplishments, "V-Celebrate Careers", first of its kind Reward & Recognition platform in the history of the Company was launched in August 2014 to showcase the “High Flyers” of the organization. Covering all the departments under single umbrella, the aim was to encourage excellence and reward the Company’s Super Achievers to make them feel special and proud.

The Company’s six core DNAs form its central philosophy and Performance across the key parameters is the base as per which winners are decided and felicitated on an organization wide platform. The goal is to recognize the High-Flyers for their outstanding performance and reward them in a manner which is beyond monetary and thereby promote employees to work even harder towards achievement of exceptional performance.

c) Employee Referral

It is always fun to be with friends, and when the employees get a chance of getting friends on board and share the workplace, the pleasure doubles! More than 75% of the hiring in the Financial Year 2014-15 has been done through Employee Referral.

d) Kwench Online library

In the strive to ensure holistic and multi-faceted growth of the employees, the Company had launched the Kwench Online library Services, initially as a pilot in Mumbai Region, where employees could use library services free of cost. Based on the tremendous positive response received from employees, the Library services have been extended to five more cities i.e. New Delhi, Chennai, Bengaluru, Hyderabad and Pune, w.e.f. 15th December 2014

e) Corporate Social Responsibility and Grow Trees

Birthday celebration is not confined to bouquet and cakes but it is much more. On these lines, the ‘Grow Trees’ initiative was undertaken in association with Pangea Econet Asset, wherein a tree is planted for all of employees of the Company on their birthday. The Company has planted close to 5,000 trees as a part of this initiative.

To contribute towards improving the quality of life for society at large, at least one corporate social initiative is undertaken in each quarter per zone. Also, numerous old age homes and children homes have been visited across the zones and food, groceries, clothes, meals etc. are donated. Blood donation drives are being conducted in many cities every year.

The Company has also associated with GiveIndia for Payroll Giving Program wherein employees can contribute a little part of their payroll for the empowerment of underprivileged for various causes as they deem fine. The Company encourages the culture of giving among its employees as even the smallest of contributions can bring huge joy and significant change to an underprivileged’s life!

f) Wellness and Health

Wellness and Health activities form core part of the Company’s initiatives towards Proactive Health Management of employees. Healthy lifestyle makes a healthy employee and thus a more efficient and productive employee. In the last 2 years, the Company has conducted almost 50 on-site wellness activities like health talks, health camps, and health campaigns. They are well communicated through mailers, social networking sites and also through an in-house health magazine “R-Care”.


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Also, to stress upon the holistic significance of all the aspects of healthy living, in partnership with wellness team, a unique week long Wellness Carnival was organized in Mumbai. It covered multi-faceted activities ranging from expert talks on Diet Management, Skin & Hair care, Stress Management etc. to vibrant workshops like Power Yoga, Zumba, and Self Defense etc.

g) Corporate Sports

In the Company’s endeavor to promote team spirit and fitness, the Company promotes employees’ participation in various sport activities. Internally the Company organizes events like Reliance Champions Cricket League, Reliance Football league and externally the Company encourages its employees to take part in external events like Corporate Indoor Games. Such events create camaraderie and team bonding and are good platform to come together and indulge in a healthy competition. Also, the Company encourages employees to its participate in marathon runs being organized in different cities and reimburse the entire fee to all participating employees.

InvestmentsThe investment portfolio of the Company as on 31st March, 2015 is ` 5,046.86 crore (` 3,842.01 crore). The market value of the same is ` 5,124.97 crore (` 3,770.54 crore). The asset allocation among Debt and Equity is 98.32% (98.38%) and 1.68% (1.62%) respectively. The modified duration of the Debt portfolio stands at 3.19 years (3.51years). The Debt portfolio comprised 33.96% (36.46%) in Sovereign Bonds – approved securities, 36.87% (32.85%) in AAA, 12.13% (12.57%) in AA+, 4.68% (7.18%) in AA/AA- rated and the remaining 12.36% (10.94%) in money market instruments and Fixed Deposits.

The income for the whole year stood at ` 490.08 crore (` 337.03 crore). The income from overall portfolio translated into a return of 10.52% from average total assets of ` 4,592 crore debt and ` 68.02 crore equity. The MTM gain in debt has gone to a positive ` 76.73 crore from a negative ` 72.17 crore last year, a substantial improvement in the market conditions and portfolio performance. The MTM appreciation in equity moved up to ` 1.38 crore from ` 0.70 crore previous year.

Claims handlingMotor Continuing with the Company’s endeavor on customer satisfaction as a focal point, the motor claims team has been working on building efficiency in:

Customer Experiencea) The Company have introduced M+, a Mobility solution for loss assessment through tablets which shall result in faster

settlement of claims.

b) 60% of claim intimations are done through the Cashless garage portal allowing repairers to facilitate faster claim intimation.

c) Liability confirmation letter can now be downloaded by the Company’s cashless network garages online thereby bringing transparency and faster delivery of vehicle.

Network Managementa) The Motor Claims team continued to focus more on improving the provider network in order to reach more customer and the

count of cashless garages stands at 2,642 as on 31st March, 2015 as 30% more garages added over previous year.

b) The improved network has helped to increase cashless claims settlement which stands at 77% in Private Car category as on 31st March 2015, 4% improvement over previous year.

Disaster Managementa) The Company has formed Reliance Claims Action Team (CAT), a special team for effective management of claims and the

Company has also adopted a Disaster Management Program.

b) 92% of the claims reported under the J&K floods and 98% of the claims reported under Hudhud cyclone are settled. The balance claims are pending for completion of repairs or submission of documents.

Training and Knowledge Management a) Specialized Motor Claims Technical Training- 'Aarush- First ray towards Success' continues to focus on competency based

learning with inclusion of imminent external faculty and technical team of manufacturers and OEM.

b) The Company has initiated a customer education series on Company’s Facebook page covering safety on road, vehicle maintenance tips and go green initiative.

Health With a vision of being the “FIRST CHOICE” of Customers, Financial Year 2014-15 landmarks a plethora of initiatives revolving around customer empowerment.


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Initiatives aiding towards Customer empowerment:1) Onsite Health concierge for key corporate encompassing case management and claim assistance.2) launch of Corporate web portal with dedicated HR and Employee log-in along with facilitation of pre policy enrolment.3) Online wellness solutions through Doctor on Call/ Chat and Super specialist opinion through Mobile App.4) Post claim care calling – A step towards Customer care and delight.5) “Health Care at Home” (Metro cities) - Doctor/ Nurse/ Medicines at Home6) Publishing of Organizational risk indexing and Corporate benchmarking post a comprehensive Health Risk Assessment

(HRA).The service architecture is strengthened by constant tuning of claims processes in compliance with Regulatory framework.1) Technology enriched systems to help in streamlining the processes and improve turnaround time for claim settlement.

a) E claims processing (Paperless) at Cashless level.b) Multiple benefit validation at member/ claim level with respect to policy terms and conditions.c) Integrated investigation tools to control frauds – Real time system based investigation referrals and evidence capturing.d) Workflow based claims processing with multiple Quality check parameters built in to ensure seamless and efficient

claims processing.2) Launch of pre-approved Cashless authorization at select Hospitals in Mumbai aiming at zero discharge wait time.3) Network strength of 4300+ Hospitals, 1500+ Outpatient tie ups and 2500+ wellness partners.4) Assessment of disability of Third Party Injury claims on factual medical grounds by Medical experts in the team.5) Development of knowledge management program for care and case management.Commercial Lines:The Company managed about 5,000 Commercial line claims in Financial Year 2014-15 through a dedicated team of trained & experienced professionals and a panel of surveyors carefully selected based on the skill set, experience and service quality.The focus continues to be on customer delight. Thrust is on immediate visit to the site of loss by senior team members in maximum high value claims as a gesture of assurance to client. This also enhances learning to the team. The two catastrophic events, J&K Floods and Hud-hud cyclone brought in about 125 claims of varied severity. Team made multiple visits to the loss sites and ensured ease of documentation. Immediate succor was offered to small clients by quick settlement on the basis of site inspection and policy copy. There is enhanced emphasis on regular structured meeting with Sales teams and Corporate clients. This has facilitated better understanding of the risk and helped speedy claim settlement. Increased interaction has fostered healthy relationships with clients. Increased collaboration with in-house Risk Containment Unit team has brought in better salvage realization in most cases. Recovery from transporters has been stepped up, which directly impacts the bottom line positively.Grievances/complaints, which are negligible, have been expeditiously handled. It is also relevant to mention that the number of cases lodged in various consumer fora during the Financial Year 2014-15 represent around 0.5% of the claims handled.In order to equip the team, training programs have been arranged both for the technical skills as well as soft skills.Process and CertificationThe Company has been successfully re-certified third time for complying with the requirements of Quality Management Systems as per ISO 9001:2008 standard. The certificate has been awarded by Det Norske Veritas (DNV), one of the leading ISO certifying bodies. The initial certification had been achieved in July 2007. The certification is valid until July 2016.Awards and RecognitionThe Company has won awards throughout the year. The Company was conferred “Order of Merit” at the SKOCH Financial Inclusion & Deepening Awards in the Innovation and Technology category. The Company won the “Indian Insurance Awards 2014” for Best Product Innovation, Best Technology Innovation and the Company of the Year Award. The Company was also declared as “Best General Insurance Company” by lokmat BFSI Awards. The Company was selected as winner for Asia Insurance Technology Awards 2014 in the category of “Best Insurer: Technology Award”. The Company was awarded “Product Innovation” Award at the Finnoviti Awards 2015. The Company was also given special recognition for HR Technology at IWP Awards. The Company won “Health Insurance Initiative of the Year” award by Elets Technomedia Pvt. ltd. along with HealthCare leaders’ Forum.


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Customer Service and Grievances Redressal CellThe Company’s fidelity to the new logo to “lIVE SMART” can be seen from the dwindling customer complaints and increasing positive reviews and awards. The Company at the end of Financial Year 2014-15 maintains its position as one of the lowest contributor to customer complaints in the General Insurance Industry, from a figure of 2623 in the Financial Year 2013-14 to 1759 in Financial Year 2014-15, registering a 33% drop.

Technology remains the core of all developments, keeping end customers as focal point and beneficiary of all positive changes in the Financial Year 2014-15. New website with enhanced features and easy interface was launched towards the end of the Financial Year. To further enhance customer experience with payment gateway and bridge the gap between a third party payment gateway and individual banks, existing payment gateway was replaced with “CC avenue”, allowing for multiple attempts with bank system in case of failure, reducing rejection ratio and building auto refunds for failure cases.

To summarize some of the initiatives undertaken this year to enhance customer service are:

a) launch of 3 major Systems: Motor Plus, IRPAS and HCS for faster and comprehensive processing of motor claims, policy issuance and Health Claims respectively.

b) Anywhere assist: Roadside assistance for customer was launched. Services includes tyre puncture, towing services, battery jump start, etc. at free of cost to the customer having four wheeler motor vehicle policy.

c) Simplified Interactive Voice Response (IVR) – IVR simplified customer can reach customer care executive faster in less than three selections on IVR.

d) Regional languages on IVR – IVR self help extended to four regional languages i.e. in Tamil, Telegu, Kannada and Malayalam.

e) IVR Renewal Calling – Auto IVR renewal calling extended to PAN India for two wheeler and private car.

f) Integrated Customer Engagement (ICE) – ICE, the CRM system, is now integrated with logistic Control Unit system. ICE to throw pop up for cases where policy has returned undelivered thereby enabling faster action initiation by the customer care executive while on call with the customer.

g) Auto IVR feedback – Auto IVR is send in batches to customers to obtain their feedback for service availed.

h) Missed Call Feedback – Pilot run to source customer feedback on branch experience initiated at 4 branches. Customer to give a miss call on the number displayed at branch to express satisfaction/dissatisfaction for the services offered at branch.

i) Third Party Auditor – “Celtycs” has been partnered as third party auditor to monitor and improve quality of interaction at front end.

j) Exclusive Helpdesk for Group Employee – Exclusive helpdesk made live at call center for Reliance Capital Group Company employees.

k) FAQs related to Complaints – FAQ section under every product have a tab to detailed procedure on complaint resolution.

l) E-mailing Soft copy of the Policy – Customer log-in enabled with the functionality of sending policy soft copy to his/her own e-mail id.

m) Updated List of Ombudsman Offices on Website – The Company’s website is linked with website of GBIC having the updated list of Ombudsman Offices and address.

n) Alert message for online customer – An alert message is send to the customer to check spam folder for policy soft copy, displayed after completion of online transaction. This has helped in reducing request and complaints for policy soft copy.

o) Change of online payment gateway vendor – The existing online payment gateway vendor has been changed to “CC Avenue” which tries multiple times for payment before rejection and initiates auto refunds for failure cases.

Directors Responsibility StatementPursuant to the Directors’ Responsibility Statement as required under Section 134(5) of the Companies Act, 2013, it is hereby confirmed that:

a) in the preparation of the accounts for the Financial Year ended 31st March, 2015 the applicable accounting standards have been followed along with proper explanation relating to material departures;

b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 Profit of the Company for the year under review;


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c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 and Insurance Act, 1938 as amended for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the accounts for the Financial Year ended 31st March, 2015 on a ‘Going Concern’ basis;

e) an internal audit system commensurate with the size and nature of the business exists and is operating effectively;

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Directors and Key Managerial PersonnelMr. Soumen Ghosh, Director of the Company retires by rotation and being eligible offers himself for re-appointment at the ensuing Annual General Meeting. Mr. H. Ansari and Mr. Rajendra Chitale were appointed as Independent Director for five years in Annual General Meeting held on 29th September, 2014. The terms and conditions of appointment of Independent Directors are as per Schedule IV of the Companies Act, 2013. Mrs. Chhaya Virani was appointed as Additional Director (Independent) with effect from 31st March, 2015. Mr. D.Sengupta ceased to be director with effect from 11th September, 2014. Board places on record its deep sense of appreciation for the valuable services rendered by Mr. D. Sengupta during his tenure as Director.

The Company has received the declaration from its Independent directors that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013.

The present term of Mr. Rakesh Jain, as Executive Director and CEO would expire on 19th October, 2015. Pursuant to the recommendations of the Nomination and Remuneration Committee and subject to the approval of Insurance Regulatory and Development Authority of India (IRDAI) and Members of the Company, the Board of Directors at its meeting held on 29th July, 2015, re-appointed Mr. Rakesh Jain as the Executive Director and CEO of the Company for a period of 5 (Five) years w.e.f. 20th

October, 2015 and also approved the terms and conditions of the re-appointment including remuneration.

Pursuant to the provisions of Section 203 of the Companies Act, 2013, Mr. Rakesh Jain, Chief Executive Officer, Mr. Hemant Jain, Chief Financial Officer and Mr. Mohan Khandekar, Company Secretary are appointed as Key Managerial Personnel of the Company.

Number of Meetings of the BoardDuring the year five meetings of the Board of Directors were held. The details of the meeting of the Board are given in the Annexure to the Corporate Governance Report.

Board EvaluationThe Board of Directors has carried out an annual evaluation of its own performance and individual directors pursuant to the provisions of the Companies Act, 2013. The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of the criteria such as the Board composition and structure, effectiveness of board processes, information and functioning, etc.

In a separate meeting of Independent Directors, performance of non-independent directors, performance of the Board as a whole, taking into account the views of Executive Director and Non-Executive Directors was evaluated.

Policy on Director’s Appointment and Remuneration and other detailsThe Company’s policy on Directors’ appointment and remuneration and other matters provided in Section 178(3) of the Act has been annexed herewith as “Annexure I”.

Particulars of Loans, Guarantees or Investments under Section 186In terms of the provisions of sub-section 11 of Section 186 of the Act, as amended by the Companies (Removal of Difficulties) Order, 2015 dated February 13, 2015, issued by the Ministry of Corporate Affairs, the provisions of Section 186, except sub-section 1 is not applicable to the Company.

Transfer to ReservesThe Company does not propose to carry any amount to its reserves during the year under review.

Material changes and commitments, affecting the financial positionThere were no material changes or commitments, affecting the financial position of the Company between 31st March, 2015 and the date of this report.

Particulars of EmployeesAs required under the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the name and other particulars of the employees are set out in the Annexure to the Directors’ Report. The Directors’


9

Report is being sent to the shareholders excluding the Annexure. Any shareholder interested in obtaining a copy of the Annexure may write to the Company Secretary at the Registered Office of the Company.

Extract of Annual returnThe details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as “Annexure II”.

Secretarial AuditorPursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. Aashish K. Bhatt & Associates, a firm of Company Secretaries in Practice, to undertake the Secretarial Audit of the Company.

Auditor’s Report and Secretarial Auditor’s ReportThe auditor’s report and secretarial auditor’s report does not contain any qualifications, reservations or adverse remarks. Report of the secretarial auditor is annexed herewith as “Annexure III”.

Related Party TransactionsAll related party transactions entered during the year were in ordinary course of the business and at arm’s length basis. No material related party transactions were entered during the year by the Company. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3) (h) of the Companies Act, 2013 in Form AOC 2 is not applicable.

The Conservation of energy, technology absorption, foreign exchange earnings and outgoParticulars required to be furnished under the Companies (Accounts) Rules, 2014 are as follows:-

1) Part A and B pertaining to conservation of energy and technology absorption are not applicable to the Company.

2) Foreign exchange inflow and outflow: (` in crore)

Total Inflow: On ReinsuranceOn ClaimsOn Premium On Others

8.33Nil27.01Nil

Total Outflow: On ReinsuranceOn ClaimsOn Premium On Others

39.875.14Nil0.85

Risk ManagementAs a strategy, the Company established Risk Management function manned by personnel with necessary skill sets and has adopted a Risk Management Policy based on the Committee of Sponsoring Organisation of Treadway Commission (COSO) framework and duly approved by the Board. The risk management framework of the Company is overseen by the Risk Management Committee (RMC). The Company has a Chief Risk Officer who is responsible for the implementation and monitoring of the framework.

Enterprise Risk Management (ERM) at the Company encompasses practices relating to identification, assessment, monitoring and mitigation of various risks to the business objectives. It also seeks to minimize adverse impact of risks on the business objectives and enables the Company to leverage market opportunities effectively. Further, the risk management practices seek to sustain and enhance the long-term competitive advantage of the Company.

The Company has identified enterprise wide risks which are categorised under five broad categories viz. Credit risk, Market risk, Business (or Insurance) Risk, Operational risk and Compliance risk. It has a risk management framework in place to identify measure and mitigate various risks. Besides, the framework also ensures that the policy, procedures and standards are established to address these risks for appropriate response and strict adherence.

ERM team monitors Key Risk Indicators (KRIs) in each category of risk against the risk appetite of the Company and submits quarterly risk report to the management. It also provides risk based audit inputs to the internal audit team. The Risk Management Committee regularly monitors and reviews risks to enhance their impact on an enterprise-wide basis. The implementation of formulated mitigation plans is monitored along with the relevant risk and control owners from time to time.

Corporate Social Responsibility

The Corporate Social Responsibility (CSR) Committee comprises of Mr. H. Ansari, Mr. Soumen Ghosh and Mr. Rakesh Jain. The policy is available on the website of the company www.reliancegeneral.co.in. Annual Report on CSR Activities is annexed herewith as “Annexure IV” as per the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.


10

Public Deposits

The Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposits from public was outstanding as on the date of the balance sheet.

Significant and material orders passed by the Regulators, Courts or Tribunals

No significant or material orders are passed by the Regulators or Courts or Tribunals which may impact the going concern status and Company’s operation in future.

Internal financial control systems and their adequacy

The Company has designed its internal financial control system to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, executing transactions with proper authorisation and ensuring compliance of corporate policies. The Company has a well defined delegation of power with authority limits for approving revenue as well as expenditure. Internal auditor’s findings and recommendations are reported to Audit Committee. The Audit Committee actively monitors and reviews audit reports submitted by the internal auditors and keeps the Board of Directors informed. The Audit Committee assures the adequacy and effectiveness of the internal financial control system as laid down.

Audit Committee

The details pertaining to composition of audit committee are included in the Corporate Governance Report.

The names of Companies which have become or ceased to be its Subsidiaries, joint ventures or associate Companies during the year

No Companies became or ceased to be subsidiary, joint venture or associate Company during the Financial Year 2014-15.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

The Company has in place an Anti Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

The following is a summary of sexual harassment complaints received and disposed off during the year 2014-15

No. of complaints received: 01

No. of complaints disposed off: 01

Auditors and Auditors’ Report:

M/s. Pathak H.D. & Associates, Chartered Accountants, and M/s. Singhi & Company, Chartered Accountants, Joint Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting.

The Company has received letters from M/s. Pathak H.D. & Associates and Singhi & Company, Chartered Accountants, to the effect that their appointment, if made, would be in accordance with the provisions of Section 139 and 141 of the Companies Act, 2013.

The notes to the accounts referred to in the Auditors’ Report are self-explanatory and, therefore do not call for any comments.

Acknowledgement

Your Directors wish to place on record their immense appreciation for the assistance and cooperation received from Insurance Regulatory and Development Authority of India, Reserve Bank of India and other statutory authorities.

Your Directors appreciate the support received from Policyholders and Intermediaries and Reinsurers.

Your Directors wish to place on record their sincere appreciation for the sustained and dedicated efforts put in by employees at all levels.

For and on behalf of the Board of Directors

Rajendra Chitale Chairman

Place: MumbaiDated: July 29, 2015


11

Annexure – I

Policy on appointment and remuneration of Directors, Key Managerial Personnel and Senior Management Employees

1. Introduction

1.1 Reliance General Insurance Company limited (“the Company”) considers human resources as its invaluable assets. This policy aims to harmonize the aspirations of the directors / employees with the goals of the Company.

1.2 Human capital is a strategic source of value creation. As part of our progressive HR philosophy, it is necessary to have in place a comprehensive Compensation Policy, which is in line with the industry trend and is employee friendly.

2. Objectives

2.1 Ensuring that the quantum and composition of remuneration is reasonable and sufficient to attract, retain and motivate, employees to run the Company successfully.

2.2 Ensuring that relationship of remuneration to performance is clear and meets the performance benchmarks.

2.3 Ensure that annual compensation review considers industry/ business outlook and strategies adopted by industry peers, differentiates employees based on their performance/ skill sets and also protects employees, particularly those in junior cadre, against inflationary pressures;

2.4 Retention of high performers at all levels and those playing critical roles.

3. Scope

The Board has constituted the "Nomination and Remuneration Committee" in line with the requirements under the provisions of the Companies Act, 2013. This Policy sets out the broad guiding principles for the Committee for recommending to the Board the appointment and remuneration of the directors, key managerial personnel, senior managerial personnel of the Company.

4. Definitions

4.1 "Director" means a director appointed to the Board of the Company.

4.2 "Key Managerial Personnel" means

(i) the Chief Executive Officer or the Managing Director of the Manager;

(ii) the Company Secretary;

(iii) the Whole-time Director;

(iv) the Chief Financial Officer;

(v) such other officer as may be prescribed under the Companies Act, 2013.

5. Policy

5.1 Appointment of Directors/ Key Managerial/ Senior Management personnel

The Nomination and Remuneration Committee, inter alia, considers qualifications, positive attributes, areas of expertise and number of Directorships and Memberships held in various committees of other companies by such persons contributing to the Company's business and policy decisions.

5.2 Remuneration to Directors/ Key Managerial Personnel

5.2.1 The remuneration of the Directors/ Managing Directors/ Whole Time Directors and Managers etc. will be governed as per provisions contained in the Companies Act, 2013 and rules made therein from time to time and/or provisions under Insurance Act, 1938 as amended by the Insurance laws (Amendment) Act, 2015.

5.2.2 Non - Executive Directors shall be entitled to sitting fees for attending the meetings of the Board and the Committees thereof as approved by the Board of Directors from time to time. The Non Executive Directors shall also be entitled to profit related Commission, if approved by the Board, in addition to the sitting fees.

5.2.3 The Board, on the recommendation of the Nomination and Remuneration Committee, shall review and approve the remuneration payable to the Directors /Key Managerial Personnel/ Senior Management Personnel of the Company within the overall limits, if any, approved by the shareholders.


12

5.2.4 The remuneration structure shall include the following components:

(i) Basic Pay

(ii) Perquisites and Allowances

(iii) Stock Options, if any.

(iv) Commission ( Applicable incase of Executive Directors/ Directors)

(v) Retiral Benefits

(vi) Performance linked Incentives

5.0.5 The Annual Plan, objectives, financial results of the Company shall be reviewed by the Nomination and Remuneration Committee and performance incentives, increment, revision in remuneration etc. will be proposed based on the achievements.

5.3 Remuneration to the other employees

Employees shall be assigned grades/ bands according to their qualifications and work experience, competencies as well as their roles and responsibilities in the organization. Individual remuneration shall be determined within the appropriate grade/ bands and shall be based on various factors such as job profile, skill sets, seniority, experience, performance and prevailing remuneration levels for equivalent jobs.

6. Retention Features as part of Compensation Package

Based on the organizational need for retaining performing employees and those in critical roles, certain retention features may be rolled out as part of the overall compensation package. These may take form of Retention Bonus (RBs); Special Monetary Programs (SMPs), long term Incentives (lTIs), Employees Stock Options, etc.

7. Modification and Amendment

The policy is subject to modification, amendment and alterations by the management at any time without assigning any reasons.


13

Annexure 'II'

Form No. MGT-9ExTRACT OF ANNUAL RETURN

as on the financial year ended on March 31, 2015

[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS

i) CIN: U66603MH2000PlC128300

ii) Registration Date: August 17, 2000

iii) Name of the Company: Reliance General Insurance Company limited

iv) Catogory/ Sub-Category of the Company: Public Company limited by Shares/Indian Non Government Company

v) Address of the Registered office and contact details: Reliance Centre 19, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400001 Tel. No. 022-3047 9600

vi) Whether listed company: No

vii) Name, Address and Contact details of Registrar and Transfer Agent, if any: N.A

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the Company shall be stated:

Sl. No.

Name and Description of main products / services NIC Code of the Product/ service

% to total turnover of the Company

1 General Insurance 6512 100

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. No.

Name and Address of the Company

CIN/GLN Holding/ Subsidiary/ Associate

% of shares held

Applicable Section

1 Reliance Capital limited'H' Block,1st Floor,Dhirubhai Ambani Knowledge City, Navi Mumbai - 400 710

l65910MH1986PlC165645 Holding Company 99.46 2(46)

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-wise Share Holding

Category of Shareholders

No. of shares held at the beginning of the year No. of shares held at the end of the year % Change during the

yearDemat Physical Total % of total

sharesDemat Physical Total % of total

sharesA. Promoters(1) Indiana) Individual / HUF – – – – – – – – –b) Central Govt – – – – – – – – –c) State Govt (s) – – – – – – – – –d) Bodies Corp. 118,480,288 – 118,480,288 96.50 122,110,660 – 122,110,660 99.46 2.96e) Bank / FI – – – – – – – – –f) Others - Trust – – – – – – – – –Sub-total (A) (1):- 118,480,288 – 118,480,288 96.50 122,110,660 – 122,110,660 99.46 2.96(2) Foreigna) NRIs - Individuals – – – – – – – – –b) Other – Individuals – – – – – – – – –c) Bodies Corp. – – – – – – – – –d) Banks / FI – – – – – – – – –


14

Category of Shareholders

No. of shares held at the beginning of the year No. of shares held at the end of the year % Change during the

yearDemat Physical Total % of total

sharesDemat Physical Total % of total

sharese) Any Other…. – – – – – – – – –Sub-total (A) (2):- – – – – – – – – –Total shareholding of

Promoter(A) = (A)(1) + (A)(2) 118,480,288 – 118,480,288 96.50 122,110,660 – 122,110,660 99.46 2.96B. Public Shareholding1 Institutionsa) Mutual Funds – – – – – – – – –b) Banks / FI – – – – – – – – –c) Central Govt – – – – – – – – –d) State Govt(s) – – – – – – – – –e) Venture Capital Funds – – – – – – – – –f) Insurance Companies – – – – – – – – –g) FIIs – – – – – – – – –h) Foreign Venture

Capital Funds– – – – – – – – –

i) Others (specify) – – – – – – – – –Sub- total (B) (1) – – – – – – – – –2. Non-Institutions – – – – – – – – –a) Bodies Corp. – – – – – – – – –i) Indian – – – – – – – – –ii) Overseas – – – – – – – – –b) Individuals – – – – – – – – –i) Individual

shareholders holding nominal share capital upto ` 1 lakh

– – – – – – – – –

ii) Individual shareholders holding nominal share capital in excess of ` 1 lakh

– – – – – – – – –

c) Others (trust) 4,294,672 – 4,294,672 3.50 664,300 – 664,300 0.54 2.96Sub-total (B)(2):- 4,294,672 – 4,294,672 3.50 664,300 – 664,300 0.54 2.96Total Public Shareholding (B) = (B)(1) + (B)(2)

4,294,672 – 4,294,672 3.50 664,300 – 664,300 0.54 2.96

C Shares held by Custodian for GDRs & ADRs

– – – – – – – – –

Grand Total (A+B+C) 122,774,960 – 122,774,960 100 122,774,960 – 122,774,960 100 –

ii) Shareholding of Promoters

Sl No.

Shreholder's Name Shareholding at the beginning of the year

Shareholding at the end of the year % change in Shareholding

during the yearNo. of Shares

% of total Shares of the

company

%of Shares Pledged /

encumbered to total shares

No. of Shares

% of total Shares of the

company

%of Shares Pledged /

encumbered to total shares

1 Reliance Capital limited 118,480,288 96.50 NIl 122,110,660 99.46 NIl 2.96

Total 118,480,288 96.50 NIL 122,110,660 99.46 NIL 2.96

iii) Change in Promoters’ Shareholding (please specify, if there is no change)Sl No

Shareholding at the beginning of the year Cumulative Shareholding during the year

No. of shares % of total shares of the company

No. of shares % of total shares of the company

Reliance Capital Limited

122,110,660 99.46

At the beginning of the year 118,480,288 96.50Transfer of shares on 08.04.2014 3,630,372 2.96At the End of the year 122,110,660 99.46


15

iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Sl No

For Each of the Top 10 Shareholders Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares % of total shares of the

company


companyReliance General Insurance Employees Benefit Trust At the beginning of the year

4,294,672 3.5

664,300 0.54

Transfer of shares on 08.04.2014 3,630,372 2.96

At the End of the year 664,300 0.54

v) Shareholding of Directors and Key Managerial Personnel:

Sl. No.

For Each of the Directors and KMP Shareholding at the beginning of the year

Cumulative Shareholding during the year


company


companyAt the beginning of the year

NIl

Date wise Increase /Decrease in Share holding during the year specifying the reasons for increase /decrease (e.g. allotment/ transfer bonus/ sweat equity etc):

At the End of the year

V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment:

Secured loans excluding deposits

Unsecured loans

Deposits Total Indebtedness

Indebtedness at the beginning of the financial year

NIl

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i + ii + iii )Change in Indebtedness during the financial year

* Addition

* Reduction

Net ChangeIndebtedness at the end of the financial year

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total ( I + ii + iii)


16

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNELA. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Sl. No.

Particulars of Remuneration Name of MD/WTD/Manager

Total Amount

Mr. Rakesh JainExecutive Director

& CEO1 Gross Salary

a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961

33,700,000 33,700,000

b) Value of perquisites u/s 17(2) Income-tax Act, 1961 40,000 40,000

c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - -

2 Stock Option - -

3 Sweat Equity - -

4 Commission - -

- as % of profit - -

- others, specify… - -

5 Others, please specify - -

Total (A) 33,740,000 33,740,000Ceiling as per the Act N.A. N.A.

B. Remuneration to other directors:

Sl. No.

Particulars of Remuneration Name of Directors Total AmountMr. Rajendra

ChitaleMr. H. Ansari Ms. Chhaya

ViraniMr. D.

Sengupta1 Independent Directors

* Fee for attending board committee meetings

400,000 560,000 40,000 100,000 1,100,000

* Commission - - - - -

* Others, please specify - - - - -

Total (1) 400,000 560,000 40,000 100,000 1,100,000

2 Other Non-Executive Directors Mr. Soumen Ghosh* Fee for attending board

committee meetings

NIl

NIl

* Commission NIl

* Others, please specify NIl

Total (2) NIl

Total (B)=(1+2) 1,100,000

Total Managerial Remuneration Ceiling as per the Act

N.A.


17

C. Remuneraion to Key managerial personnel other than MD / Manager / WTD

Sl. No.

Particulars of Remuneration Key Managerial PersonnelCEO CFO Company

SecretaryTotal

1 Gross salarya) Salary as per provisions contained in

Section 17(1) of the Income-tax Act, 196133,700,000 7,274,330 4,468,149 45,442,479

b) Value of perquisites u/s 17(2) Income-tax Act, 1961

40,000 - - 40,000

c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961

- - - -

2 Stock Option - - - -3 Sweat Equity - - - -4 Commission - - - -

- as % of profit - - - -- others, specify… - - - -

5 Others, please specify - - - -Total 33,740,000 7,274,330 4,468,149 45,482,479

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:

There were no penalties / punishment / compounding of offences for breach of any section of Companies Act against the Company or its Directors or other officers in default, during the year.


Rajendra Chitale Chairman

Place: MumbaiDated: July 29, 2015


18

Annexure III

Secretarial Audit Report[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014]

for the financial year ended 31st March, 2015

To, The Members, Reliance General Insurance Company Limited Mumbai

Dear Sir(s)/ Madam,

We have conducted the secretarial audit of the compliance of applicable statutory provisions as agreed and the adherence to good corporate governance practice by Reliance General Insurance Company Limited (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minutes books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the financial year ended 31st March, 2015, complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

1. We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company, for the financial year ended on 31st March, 2015, according to the provisions of:

i. The Companies Act, 2013 (the Act) and the rules made thereunder;

ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder - Not Applicable;

iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder – Not Applicable;

iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment; Not Applicable

v. The following regulations and guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) are not applicable :-

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;

d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;

e) The Securities and Exchange Board of India (Issue and listing of Debt Securities) Regulations, 2008; and

f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, regarding the Companies Act and dealing with client;

g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;

h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;

vi. Further we report that, having regard to the compliance system prevailing in the Company and on examination of the relevant documents and records in pursuance thereof, on test-check basis, the Company being a general insurance company, has complied with the Insurance Act, 1938 and regulations, guidelines and directions issued by the Insurance Regulatory & Development Authority of India (IRDAI). The Company has its compliance system, which is subject to monitoring and reporting to IRDAI.


19

We have not been required to examine compliances with applicable clauses of:

i. Secretarial Standards issued by the Institute of the Company Secretaries of India – as same has not been notified

ii. listing Agreement – Not Applicable

During the financial year under report, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above. The Company is in process of filing form MGT-14 pertaining to Board resolution for approval of Board’s report for the financial year ended 31st March, 2014.

We further report that:

The Board of Directors of the Company was required to be constituted in accordance with Articles of Association of the Company with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the year under review were carried out in compliance with the provisions of the Act.

Adequate notice, agenda and detailed notes have been given to all Directors to schedule the Board Meetings at least seven days in advance and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

As per the minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were unanimous and no dissenting views, have been recorded

We have relied on the representation made by the Company and its Officers for adequate systems and processes in the company commensurate with its size & operation to monitor and ensure compliance with applicable laws.

We further report that during the year under report, the Company has undertaken event / action having a major bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above viz.

(i) Appointment of Independent and Woman Director(s)

(ii) Resignation of Director

(iii) Constitution and Reconstitution of various Committees

(iv) Appointment of Key Managerial Personnel(s)

(v) Transfer of Equity Shares

For Aashish K. Bhatt & Associates Company Secretaries (ICSI Unique Code S2008MH100200)

Aashish Bhatt Proprietor ACS No.: 19639, COP No.: 7023

Place: MumbaiDated: 28/07/2015


20

Annexure IV

ANNUAL REPORT ON CSR ACTIVITIES1. A brief outline of the Company's CSR policy, including overview of projects or programs proposed to be undertaken

and a reference to the web-link to the CSR policy and projects or programs:

The Company follows an integrated multi-stakeholder approach towards CSR covering all social, environmental and economic aspects. The framework enables business heads to put in place policies and practices in line with this policy.

2. The Composition of the CSR Committee:

The CSR Committee comprises of Mr. H. Ansari, Mr, Soumen Ghosh and Mr. Rakesh Jain.

3. Average net profit of the company for last three financial years:

Company has incurred average net loss of ` 123.96 crore for last three financial years

4. Prescribed CSR Expenditure (two per cent. of the amount as in item 3 above): NA

5. Details of CSR spent during the financial year.

(a) Total amount to be spent for the financial year: NIL

(b) Amount unspent, if any; NIl

(c) Manner in which the amount spent during the financial year is detailed below:

S.No. CSR project or activity identified.

Sector in which the project is covered

Projects or programs

1) Local area or

2) Specify the State and projects or

programs was undertaken

Amount outlay

(budget) project or programs

wise

Amount spent on the projects

or programs Sub-heads: (1) Direct

expenditure on projects or

programs (2) Overheads:

Cumulative expenditure

upto the reporting

period

Amount spent: Direct or through

implementing agency

1. N.A N.A N.A N.A N.A N.A N.A TOTAL - - - -

6. In case the company has failed to spend the two per cent of the average net profit of the last three financial years or any part thereof, the company shall provide the reasons for not spending the amount in its Board report:

The Company has incurred average net loss of ` 123.96 crore for last three Financial Year, hence the Company did not contribute for CSR.

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the company.

We hereby declare that implementation and monitoring of the CSR policy are in compliance with CSR objectives and policy of the Company.

Rakesh Jain (Executive Director and CEO)

H. Ansari(Chairman of CSR Committee)


21

Report on Corporate Governance1. Philosophy on Corporate Governance

The Company has always maintained the highest standards of Corporate Governance. The principles which are set in corporate governance policy are disclosure, fairness, independence, transparency, accountability, responsibility, social responsibility, compliances and ethical standards. The Company strives to achieve its mission in the light of these corporate governance principles. These principles are not just words but are strictly followed in its true and strict sense in day to day working of the Company. The Company has also framed a strong whistle blowing mechanism where employees without hesitation can raise concern or report a possible breach of law or regulation with appropriate measures to protect against retaliation against reporting employees. Timely disclosure on all material matters regarding the Company, including the financial situation, performance, ownership and governance arrangements, is part of a corporate governance framework. It also includes Compliance with legal and regulatory requirements. The presence of an active group of Independent Directors on the Board contributes a great deal towards ensuring confidence of the customers and stakeholders. The Company has laid emphasis on the cardinal values of fairness, transparency and accountability for performance at all levels, thereby enhancing the shareholders’ value and protecting the interest of the stakeholders.

In our commitment to achieve sound Corporate Governance practices, the Company is guided by the following core principles:

1. To maintain the highest standards of transparency in all aspects of our interactions and dealings.

2. To comply with all the laws and regulations applicable to the Company.

3. To conduct the affairs of the Company in an ethical manner.

4. To promote the interest of all stakeholders including customers, shareholders, employees, lenders, vendors and the community.

5. To improve brand and reputation.

6. Strengthen internal controls and improve risk management.

7. To ensure highest level of responsibility and accountability.

8. Ensure timely dissemination of material information and matters of interest of Stakeholders.

2. Board of Directors

The composition of Board of Directors of the Company is as follows;

1. Mr. Rajendra Chitale

2. Mr. H. Ansari

3. Mrs. Chhaya Virani

4. Mr. Soumen Ghosh

5. Mr. Rakesh Jain (Executive Director & CEO)

During the year, Mr. D. Sengupta, ceased to be a Director of the Company w.e.f. 11th September, 2014. Out of the five Directors, three Directors are Independent Directors. As per the Corporate Governance guidelines issued by IRDAI, your Company has constituted the Mandatory Committees viz. Audit Committee, Investment Committee, Policyholders Protection Committee, Risk Management Committee, Nomination and Remuneration Committee and Corporate Social Responsibility Committee

3. Audit Committee

Your Company has constituted an Audit Committee pursuant to the provisions of Section 177 of the Companies Act, 2013 and IRDAI Corporate Governance regulations. The Audit Committee comprises of Mr. Rajendra P. Chitale, Director and Mr. Soumen Ghosh, Director, Mr. H. Ansari, Director. Mr. D. Sengupta ceased to be a Member of the Committee w.e.f. 11th September, 2014. Audit Committee inter alia advises the management on the areas where systems, process, internal audit, risk management can be improved. The minutes of the meeting of the Audit Committee are placed before the Board for review. Audit Committee recommends to the Board, appointment and remuneration of Auditors of the Company. Audit Committee had discussions with Statutory Auditors before the audit commences about the nature & scope of audit as well as post audit discussions for addressing areas of concern.


22

4. Investment Committee

Your Company has constituted an Investment Committee pursuant to the requirement of Corporate Governance Guidelines of IRDAI. Presently the Committee consists of Mr. H. Ansari, Mr. Soumen Ghosh, Mr. Rakesh Jain, Mr. Hemant Jain, Mr. K. Ramkumar & Ms. Kirti Kothari. The Investment Committee decides on the Investment Policy of the Company and reviews the Investment decisions taken by the Company. Report on Investment performance and Investment Portfolio is also placed before the Board for review.

5. Policyholders Protection Committee

Your Company has also constituted Policyholders Protection Committee as required under Corporate Governance Guidelines of IRDAI. At present the Committee consists of Mr. H. Ansari, Mr. Soumen Ghosh, Mr. Rakesh Jain, & Mr. Mukul Kishore. The Committee reviews and monitors customer grievances on regular basis. Report of the Policyholders Protection Committee is also placed before the Board of Directors for review. The Company has Grievance Redressal Policy which is approved by the Board of Directors.

6. Risk Management Committee

Your Company has also constituted Risk Management Committee for monitoring all the risks across the various lines of business of the Company. Presently the Committee consists of Mr. H. Ansari, Mr. Soumen Ghosh, Mr. Rakesh Jain, Mr. Mukul Kishore, Mr. Mohan Khandekar, Mr. Hemant Jain, Mr. K. Ramkumar and Mr. Sudip Banerjee.

7. Nomination and Remuneration Committee

Your Company has also constituted Nomination and Remuneration Committee which comprises of Mr. Rajendra Chitale, Mr. H. Ansari and Mr. Soumen Ghosh.

8. Corporate Social Responsibilty

Your Company has also constituted Corporate Social Responsibility Committee which comprises of Mr. H. Ansari, Mr. Soumen Ghosh and Mr. Rakesh Jain.

In addition to the above, the Company has also constituted Non Mandatory Committees viz. Committee of Executives (Investment), Asset liability Management Committee, Ethics Committee.

As required under clause 5.4 of the Corporate Governance guidelines dated 5.8.2009, details of number of meetings held of the Board of Directors and Committees in the Financial Year and details of composition of the Board & Committees and meetings attended by the Directors etc. are enclosed as Annexure I & II forming part of this report.

9. Compliance Officer

Mr. Mohan Khandekar, Company Secretary, is the Compliance Officer of the Company for complying with the requirements of IRDAI regulations.

Certification for compliance of the Corporate Governance Guidelines

I, Mohan Khandekar, hereby certify that the Company has complied with the Corporate Governance Guidelines for Insurance Companies as amended from time to time and nothing has been concealed or suppressed.

Mohan Khandekar Company Secretary


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ANNExURE I FORMING PART OF CORPORATE GOVERNANCE REPORTDETAILS OF NUMBER OF MEETINGS HELD, ATTENDED, COMPENSATION PAID ETC. DURING FINANCIAL YEAR 2014-15

BOARD MEETING

Date of Meeting 30.04.2014, 04.08.2014, 31.10.2014, 03.02.2015, 31.03.2015Name of the Director Meeting held during

FY 2014-15Meetings attended Compensation paid

Gross (Sitting fees)Mr. Rajendra Chitale 5 5 2,00,000

Mr. H. Ansari 5 5 2,00,000

Mrs. Chhaya Virani (appointed as a Director w.e.f. 31.03.2015)

5 1 40,000

Mr. Soumen Ghosh 5 5 Nil

Mr. Rakesh Jain (Executive Director & CEO) 5 5 Nil

Mr. D. Sengupta (ceased to be Director w.e.f. 11.09.2014)

5 1 40,000

POLICYHOLDER PROTECTION COMMITTEE

Date of Meeting 29.04.2014, 04.08.2014, 31.10.2014, 03.02.2015Name of the Director Meeting held during


Gross (Sitting fees)Mr. H. Ansari 4 4 80,000Mr. Soumen Ghosh 4 4 NilMr. Rakesh Jain (Executive Director & CEO) 4 4 NilMr. Mukul Kishore 4 4 Nil

INVESTMENT COMMITTEE



Gross (Sitting fees)Mr. H. Ansari 4 4 80,000Mr. Soumen Ghosh 4 4 NilMr. Rakesh Jain (Executive Director & CEO ) 4 4 NilMr. Hemant Jain 4 4 NilMr. K. Ramkumar 4 4 NilMs. Kirti Kothari 4 4 Nil

AUDIT COMMITTEE



Gross (Sitting fees)Mr. H. Ansari (appointed as a member w.e.f. 31.10.2014)

4 2 80,000

Mr. Rajendra Chitale 4 4 1,60,000


Mr. D. Sengupta (ceased to be a member w.e.f 11.09.2014)

4 1 40,000


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RISK MANAGEMENT COMMITTEE



Gross (Sitting fees)Mr. H. Ansari (appointed as a member w.e.f. 31.10.2014)

4 2 40,000


Mr. Rakesh Jain (Executive Director & CEO ) 4 4 Nil

Mr. Mukul Kishore 4 4 Nil

Mr. Mohan Khandekar 4 4 Nil

Mr. Hemant Jain 4 4 Nil

Mr. Sudip Banerjee (appointed as a member w.e.f. 31.10.2014)

4 2 Nil

Mr. K. Ramkumar 4 4 Nil

Mr. D. Sengupta (ceased to be member w.e.f 11.09.2014)

4 1 20,000

Mr. Sudarshanam Sundararajan (ceased to be a member w.e.f. 31.10.2014)

4 2 Nil

COMMITTEE OF ExECUTIVES (INVESTMENT)

Date of Meeting 10.04.2014, 29.05.2014, 23.06.2014, 23.07.2014, 25.08.2014, 15.09.2014, 22.10.2014, 18.11.2014, 11.12.2014, 15.01.2015,

27.02.2015, 17.03.2015Name of the Director/Member Meeting held during


Gross (Sitting fees)Mr. Rakesh Jain (Executive Director & CEO ) 12 12 Nil




12 10 Nil


Mr. Sudarshanam Sundararajan (ceased to be a member w.e.f. 23.06.2014)

12 2 Nil

ASSET – LIABILITY MANAGEMENT COMMITTEE

Date of Meeting 12.05.2014, 29.07.2014, 13.08.2014, 11.11.2014, 10.02.2015Name of the Director/Member Meeting held during


Gross (Sitting fees)Mr. Soumen Ghosh 5 5 Nil





5 3 Nil



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Ms. Kirti Kothari 5 5 Nil

Mr. Sudarshanam Sundararajan (ceased to a member w.e.f. 13.08.2014)

5 2 Nil

CORPORATE SOCIAL RESPONSIBILTY COMMITTEE

Date of Meeting 04.08.2014, 31.03.2015Name of the Director/Member Meeting held during


Gross (Sitting fees)Mr. H. Ansari 2 2 40,000


Mr. Rakesh Jain (Executive Director & CEO ) 2 2 Nil

NOMINATION AND REMUNERATION COMMITTEE

Date of Meeting 04.08.2014, 31.03.2015Name of the Director/Member Meeting held during


Gross (Sitting fees)Mr. H. Ansari 2 2 40,000

Mr. Rajendra Chitale 2 2 40,000



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ANNExURE II FORMING PART OF CORPORATE GOVERNANCE REPORTPolicyholders Protection Committee

Name Qualification Field of Specialization CategoryMr. H. Ansari Post Graduate in Science General Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, Fellow of Insurance

Institute of IndiaUnderwriting Employee

Investment Committee

Name Qualification Field of Specialization CategoryMr. H. Ansari Post Graduate in Science General Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Hemant Jain Chartered Accountant Finance EmployeeMr. K. Ramkumar B.Sc (Chemistry), Diploma in

Business Finance from ICFAI, Hyderabad, ICWAI

Investments Employee

Ms. Kirti Kothari FIAI Appointed Actuary Appointed Actuary

Audit Committee

Name Qualification Field of Specialization CategoryMr. H. Ansari** Post Graduate in Science General Insurance Independent DirectorMr. Rajendra Chitale Chartered Accountant Finance & Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. D. Sengupta* B.Sc, Post Graduate Diploma

in MarketingInsurance Independent Director

*ceased to be a Member w.e.f. 11th September, 2014**appointed w.e.f. 31st October, 2014

Board of Directors

Name Qualification Field of Specialization CategoryMr. H. Ansari Post Graduate in Science Insurance Independent DirectorMr. Rajendra Chitale Chartered Accountant Finance & Insurance Independent DirectorMrs. Chhaya Virani** BA, llB. legal Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. D. Sengupta* B.Sc, Post Graduate Diploma


*ceased to be a Director w.e.f. 11th September, 2014** appointed as a Director w.e.f. 31st March, 2015

Nomination and Remuneration Committee

Name Qualification Field of Specialization CategoryMr. Rajendra Chitale Chartered Accountant Finance & Insurance Independent DirectorMr. H. Ansari Post Graduate in Science Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive Director


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Ethics Committee

Name Qualification Field of Specialization CategoryMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting Employee

Risk Management Committee

Name Qualification Field of Specialization CategoryMr. H. Ansari Post Graduate in Science Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Mohan Khandekar M.Com, llB, ACS Company Secretarial and

legal MattersEmployee

Mr. Hemant Jain Chartered Accountant Finance EmployeeMr. Sudip Banerjee B-Tech, IIT Kharagpur and

MBA, IIM KolkataIT and Risk Management Employee

Mr. K. Ramkumar B.Sc (Chemistry), Diploma in Business Finance from ICFAI, Hyderabad, ICWAI


Mr. D. Sengupta* B.Sc, Post Graduate Diploma in Marketing

Insurance Independent Director

*ceased to be a Director w.e.f. 11th September, 2014

Committee of Executive (Investments)Name Qualification Field of Specialization Category

Mr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Hemant Jain Chartered Accountant Finance EmployeeMr. Sudip Banerjee B-Tech, IIT Kharagpur and

MBA, IIM KolkataIT and Risk Management Employee



Asset Liability Management CommitteeName Qualification Field of Specialization Category

Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Hemant Jain Chartered Accountant Finance EmployeeMr. K. Ramkumar B.Sc (chemistry), Diploma in



Mr. Sudip Banerjee B-Tech, IIT Kharagpur and MBA, IIM Kolkata

IT and Risk Management Employee


Corporate Social Responsibility CommitteeName Qualification Field of Specialization Category

Mr. H. Ansari Post Graduate in Science Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEO


28

MANAGEMENT REPORT ATTACHED TO THE FINANCIAL STATEMENT AS ON 31ST MARCH 2015

1) We confirm that the validity of the registration granted by Insurance Regulatory & Development Authority on India has not expired.

2) We certify that all the dues payable to the statutory authorities have been duly paid.

3) We confirm that shareholding pattern is in accordance with the statutory and regulatory requirements.

4) We declare that the management has not directly or indirectly invested outside India the funds of the holders of policies issued in India.

5) We confirm that the required solvency margins have been maintained.

6) We certify that the values of all the assets have been reviewed on the date of the Balance Sheet and that in the best of our belief, the assets set forth in the Balance sheet are shown in the aggregate at amounts not exceeding their realisable or market value under the headings “Investments other than debt securities”, “Agents balances”, “Outstanding Premium”, "Interest and Dividends accrued but not due", "Balances due from other entities carrying on insurance business", "Other Advances”, “Advances to Staff”, “Deposits” and “ Cash”.

7) The company is exposed to various risks related to its insurance operations and financial risks related to its investment portfolio. The operational & financial risks are being closely monitored and being actively managed. The exposure to the insurance operations is managed by implementing underwriting controls and risk transfer through adequate reinsurance arrangements. Catastrophe risk exposure has been analyzed and accumulation is being monitored. Risk models have been also been used on our accumulation to get an estimate and the reinsurance protection has taken to limit our exposure to any one event to an acceptable limit.

In addition to our regular internal audits and technical audits, an important step was taken by establishing an independent Enterprise Risk Management team to oversee all the varied risk exposures and to take steps to mitigate these exposures.

8) We have no operations in any country outside India, except representative office at London.

9) The Company has a separate internal audit team which audits the operations at its offices.

10) We certify that the investments have been valued as per the Accounting Regulations of the IRDAI and shown in the Balance Sheet. The market value of investments has been arrived at as per the guidelines given by the Insurance Regulatory and Development Authority of India based on quoted market price wherever available and based on the market yield for rated securities not quoted and at book value for securities which do not have rating. The investment portfolio is also diversified within limits set under the IRDAI regulations.

11) Ageing analysis of claims outstanding and average claims settlement time for the five years.

Ageing of Claim Outstanding

FY 2014-15

(` in ‘000)

Period / Class Fire Marine Cargo Marine Hull Motor ODAgeing Count Amount Count Amount Count Amount Count Amount

30 days 51 58,252 58 10,792 - - 5,448 208,86231 days to 6 Months 131 410,928 112 90,519 - - 5,264 576,1316 Months to 1 Year 134 251,899 60 55,454 2 3,250 918 190,0591 Year to 5 Years 202 887,535 166 442,666 2 1,474 2,812 299,4605 Years and Above 4 14,231 8 3,318 - - 4 233Grand Total 522 1,622,844 404 602,750 4 4,724 14,446 1,274,745


29

(` in ‘000)

Period / Class Motor-TP Engineering Liability Public LiabilityAgeing Count Amount Count Amount Count Amount Count Amount

30 days 1,428 292,681 42 23,882 15 1,729 9 97231 days to 6 Months 6,627 1,307,423 125 200,043 58 5,404 28 5,7186 Months to 1 Year 6,495 1,312,630 152 368,167 16 4,127 35 8,6931 Year to 5 Years 46,858 9,012,841 517 672,807 47 12,879 95 29,2015 Years and Above 8,841 1,379,224 6 643 8 1,323 5 2,715Grand Total 70,249 13,304,799 842 1,265,542 144 25,463 172 47,299

(` in ‘000)

Period / Class Health Aviation Personal Accident All Other Misc TotalAgeing Count Amount Count Amount Count Amount Count Amount Count Amount

30 days 11,437 237,730 - - 247 30,158 69 43,140 42,496 1,085,29131 days to 6 Months 9,918 206,794 - - 691 86,294 98 652,796 14,351 3,467,3696 Months to 1 Year 3,383 91,708 2 496 503 51,511 136 307,624 8,736 2,618,4671 Year to 5 Years 12,504 131,036 18 722,657 1,702 88,309 793 509,200 53,857 12,740,9045 Years and Above 2 203 1 12 9 12,108 25 2,097 8,881 1,410,005Grand Total 37,244 667,470 21 723,165 3,152 268,379 1,121 1,514,857 128,321 21,322,036

FY 2013-14*(` in ‘000)


30 days 89 350,690 117 22,743 - - 5,183 285,04531 days to 6 Months 154 376,372 121 88,609 1 1,369 5,711 756,2766 Months to 1 Year 76 425,842 50 12,759 1 90 1,326 288,1851 Year to 5 Years 138 303,817 170 124,004 3 2,202 2,733 401,8335 Years and Above - - - - - - 3 250Grand Total 457 1,456,721 458 248,115 5 3,660 14,956 1,731,588

(` in ‘000)


30 days 1,359 257,981 106 97,577 19 2,311 8 1,20531 days to 6 Months 6,271 1,223,010 224 664,329 48 10,180 18 5,5536 Months to 1 Year 7,511 1,512,317 168 419,291 26 8,814 18 4,4141 Year to 5 Years 49,553 8,837,251 276 269,423 44 10,537 63 22,3135 Years and Above 4,696 654,793 1 325 4 774 3 1,534Grand Total 69,390 12,485,351 775 1,450,944 141 32,615 110 35,019

(` in ‘000)


30 days 48,252 427,092 1 85 205 16,720 77 18,932 55,416 1,480,38031 days to 6 Months 9,157 205,272 - - 651 48,890 258 107,387 22,614 3,487,2476 Months to 1 Year 8,222 58,043 4 1,576 476 27,537 102 91,228 17,980 2,850,0961 Year to 5 Years 1,426 83,886 15 728,755 1,477 95,350 680 193,464 56,578 11,072,8345 Years and Above 1 117 - - 1 370 19 1,839 4,728 660,000Grand Total 67,058 774,411 20 730,417 2,810 188,867 1,136 412,850 157,316 19,550,557


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FY 2012-13*(` in ‘000)


30 days 102 233,153 81 23,645 1 762 4,846 294,08631 days to 6 Months 94 239,330 128 41,628 - - 6,723 874,7866 Months to 1 Year 57 360,188 49 16,432 - - 1,735 330,8281 Year to 5 Years 105 401,783 104 173,743 4 7,174 2,846 376,4585 Years and Above - - - - - - - -Grand Total 358 1,234,454 362 255,448 5 7,936 16,150 1,876,158

(` in ‘000)


30 days 1,479 264,018 46 27,291 23 1,768 8 1,82131 days to 6 Months 8,281 1,485,066 144 152,770 47 13,716 35 5,5666 Months to 1 Year 9,595 1,789,199 175 217,270 9 2,561 2 3161 Year to 5 Years 47,354 7,182,245 115 224,215 36 6,304 25 9,4045 Years and Above - - - - - - 2 1,536Grand Total 66,709 10,720,528 480 621,545 115 24,348 72 18,643

(` in ‘000)Period / Class Health Aviation Personal Accident All Other Misc Total

Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 55,104 233,044 - - 197 16,627 75 26,469 61,962 1,122,68331 days to 6 Months 205,613 150,497 1 2,328 719 50,991 248 91,165 222,033 3,107,8426 Months to 1 Year 32,752 77,816 7 1,506 486 31,610 242 97,502 45,109 2,925,2271 Year to 5 Years 1,822 64,789 8 729,697 906 61,512 525 104,674 53,850 9,341,9985 Years and Above - - - - - - - - 2 1,536Grand Total 295,291 526,146 16 733,531 2,308 160,740 1,090 319,809 382,956 16,499,286

FY 2011-12(` in ‘000)


30 days 60 60,988 142 14,741 1 25 5,159 293,92531 days to 6 Months 117 454,117 151 71,287 2 549 6,469 773,1106 Months to 1 Year 79 356,185 58 140,275 4 1,299 1,160 203,9351 Year to 5 Years 61 331,333 22 34,238 2 5,408 218 67,9685 Years and Above 1 2,735 - - - - - -Grand Total 318 1,205,358 373 260,541 9 7,281 13,006 1,338,937

(` in ‘000)


30 days 1,012 129,022 39 31,165 12 1,665 - -31 days to 6 Months 3,840 499,643 109 204,529 35 6,567 12 3,8256 Months to 1 Year 3,568 338,949 86 195,178 17 9,562 13 2,9311 Year to 5 Years 12,292 915,131 54 220,807 29 6,245 21 2,8965 Years and Above - - - - - - - -Grand Total 20,712 1,882,745 288 651,679 93 24,038 46 9,652


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Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 84,530 99,634 9 1,623 228 29,590 127 33,691 91,319 696,06931 days to 6 Months 74,289 74,012 - - 479 43,117 418 134,397 85,921 2,265,1526 Months to 1 Year 81 7,341 2 100 86 9,864 20 14,777 5,174 1,280,3951 Year to 5 Years 24 1,745 10 924,177 13 12,047 49 22,879 12,795 2,544,8735 Years and Above - - - - - - - - 1 2,735Grand Total 158,924 182,731 21 925,900 806 94,618 614 205,744 195,210 6,789,225

FY 2010-11(` in ‘000)


30 days 70 30,486 67 8,516 - - 6,432 198,15331 days to 6 Months 203 284,975 201 78,684 4 68 5,351 419,7706 Months to 1 Year 125 294,164 114 26,403 1 38 1,190 177,2721 Year to 5 Years 74 275,798 50 50,921 1 17,062 406 104,3405 Years and Above - - - - - - - -Grand Total 472 885,423 432 164,524 6 17,168 13,379 899,536

(` in ‘000)


30 days 964 119,642 70 25,212 15 875 - -31 days to 6 Months 3,672 322,787 184 134,673 46 2,733 1 836 Months to 1 Year 3,927 204,117 130 270,031 41 6,570 2 521 Year to 5 Years 12,215 685,914 110 184,026 24 3,414 10 2,8505 Years and Above - - - - - - - -Grand Total 20,778 1,332,460 494 613,942 126 13,593 13 2,984

(` in ‘000)


30 days 3,308 67,100 1 20 191 11,617 125 11,854 11,243 473,47431 days to 6 Months 2,932 80,011 7 6,562 420 35,408 233 26,077 13,254 1,391,8316 Months to 1 Year 524 41,663 5 1,243,360 87 8,009 99 20,491 6,245 2,292,1701 Year to 5 Years 510 18,355 - - 19 11,841 76 49,422 13,495 1,403,9435 Years and Above - - - - - - - - - -Grand Total 7,274 207,129 13 1,249,941 717 66,875 533 107,843 44,237 5,561,418

* Based on revised logic related to claims count to be considered for Claims IRDAI reporting, the outstanding counts of March 2013 & March 2014 are revised.


32

Average claims settlement time

Product/Class FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

Fire 853 130 653 119 808 110 1,060 136 1,440 126Marine Cargo 1,134 68 1,098 63 884 64 1,011 95 1,604 82Marine Hull 1 1,659 1 859 4 154 9 38 13 313Motor OD 143,801 31 137,263 33 124,713 38 174,492 34 231,934 43Engineering 430 171 505 113 575 148 828 148 1,302 120Liability 159 147 117 176 75 211 88 209 103 156Public Liability 1 173 21 89 18 200 13 159 23 26Health 648,735 57 1,041,290 126 896,690 129 152,771 99 74,654 57Aviation 2 878 2 494 8 434 1 431 4 158Public Accident 2,106 134 1,394 119 1948 96 2,024 65 2,826 77All Other Misc 1,220 147 1,147 82 1141 78 2,613 63 2,132 75Total 798,442 1,183,491 1,026870 334,710 316,035

Notes: 1. The above ageing does not include Motor Third Party claims which have to be settled through MACT and other judicial bodies.

12) A majority of the Company’s investment is in fixed income securities. The Fixed Income portion is invested mainly in Government securities and AAA or AA+ rated bonds. The primary objective when investing is Safety, liquidity and Return. The Company monitors the cash position daily and seasonal liquidity needs are considered while planning maturities of investments. None of the fixed income investments have had any delays in servicing of interest or principal amounts. Based on the past track record, the Management has reasonable confidence in the quality and expected performance of the investments, in line with the objectives.

13) We also confirm:

a) in the preparation of financial statements, the applicable accounting standards, principles and policies have been followed along with proper explanations relating to material departures, if any;

b) the management has adopted accounting policies and applied them consistently and made judgements 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 or loss and of the profit of the company for the year;

c) 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) / Companies Act, 1956 (1 of 1956) / Company Act, 2013 (to the extent notified), for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d) the management has prepared the financial statements on a going concern basis;

e) the management has ensured that an internal audit system commensurate with the size and nature of the business exists and is operating effectively.


33

14) Details of payments during the financial year to individuals, firms, companies and organisations in which Directors are interested, including reimbursement- (` in ‘000)

Sr No.

Name Of Director Entity in which Director is Interested

Interested As Nature Of Payment Amount

1 Mr. Rajendra P. Chitale

Reliance Capital limited

Director Claim Paid 95 Reimbursement paid for expenses (Rent, Communication, Electricity, Professional fees, Maintenance Charges)

7,665

Management fees 60,000Reimbursement paid for IT services 27,374

Reliance life Insurance Company limited

Director Claim Paid 167Gratuity 28,788Term Insurance policy 7,672

2 Mr. Soumen Ghosh Reliance life Insurance Company limited

Director Claim Paid 167Gratuity 28,788Term Insurance policy 7,672

Reliance Capital Asset Management limited

Director Claim Paid 143

3 Mrs. Chhaya Virani Reliance Capital limited

Director Claim Paid 95 Reimbursement paid for expenses (Rent, Communication, Electricity, Professional fees, Maintenance Charges)

7,665

Management fees 60,000Reimbursement paid for IT services 27,374


Rajendra Chitale H. Ansari Director (DIN No.: 0015986) Director (DIN No.: 2155529)

Chhaya Virani Soumen Ghosh Director (DIN No.: 6953556) Director (DIN No.: 1262099)

Rakesh Jain Hemant K. Jain Executive Director and CEO Chief Financial Officer (DIN No.: 3645324)

Mohan Khandekar Company Secretary (Membership No. A8515)

Place : Mumbai

Date : May 05, 2015


34

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RELIANCE GENERAL INSURANCE COMPANY LIMITEDReport on the Financial Statements1. We have audited the accompanying financial statements of RELIANCE GENERAL INSURANCE COMPANY LIMITED (the

“Company”) which comprise the Balance Sheet as at March 31, 2015, the Revenue Accounts, the Profit and Loss Account and the Receipts and Payments Account for the year then ended, and a summary of significant accounting policies and other explanatory information, annexed thereto.

Management’s Responsibility for the Financial Statements 2. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the

Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and receipts and payments of the Company in accordance with the requirements of the Insurance Act, 1938 (the “Insurance Act”), read with Insurance Regulatory and Development Act, 1999 (the “IRDA Act”), Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (“the Regulations”), order/ directions, circulars, guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) in this regard and in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent applicable and in the manner so required. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility3. Our responsibility is to express an opinion on these financial statements based on our audit.4. We have taken into account the provisions of the Insurance Act, the IRDA Act, the Regulations, the Companies Act and the

Rules made there under including the accounting standards to the extent applicable and auditing standards and matters which are required to be included in the audit report.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial

statements are prepared in accordance with the requirements of the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999, the Regulations and the Companies Act 2013, to the extent applicable and in the manner so required, and give a true and fair view in conformity with the accounting principles generally accepted in India, as applicable to insurance companies:(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;(b) in the case of the Revenue Accounts, of the net surplus/deficit for the year ended on that date;(c) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and(d) in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.


35

Other Matters9. The actuarial valuation of liabilities with respect to claims Incurred But Not Reported (IBNR) and claims Incurred But Not

Enough Reported (IBNER) as on March 31, 2015 is the responsibility of the Company’s Appointed Actuary (the “Appointed Actuary”). The Appointed Actuary has certified to the Company that the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority (“IRDA”) and the Institute of Actuaries of India in concurrence with IRDA. We have relied on the Appointed Actuary’s certificate in this regard for forming our opinion on the financial statements of the Company.

Report on Other Legal and Regulatory Requirements10. As required by the Regulations, we have issued a separate certificate dated May 5, 2015 certifying the matters specified in

paragraphs 3 and 4 of Schedule C to the IRDA Financial Statement Regulations.11. Further, to our comments in the Certificate referred to in Paragraph 10 above, as required under the Regulations, read with

Section 143 (3) of the Act, we report that:(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were

necessary for the purposes of our audit and have found them to be satisfactory;(b) In our opinion and to the best of our information and according to the explanations given to us, proper books of account

as required by law have been kept by the Company so far as it appears from our examination of those books;(c) As the Company’s financial accounting system is centralized at Head Office, no returns for the purposes of our audit

are prepared at the branches and other offices of the Company; (d) The Balance Sheet, the Revenue Accounts, the Profit and Loss Account and the Receipts and Payments Account dealt

with by this Report are in agreement with the books of account;(e) In our opinion and to the best of our information and according to the explanations given to us, investments have been

valued in accordance with the provisions of the Insurance Act, 1938 and the Regulations and / or orders / directions/circulars/guidelines issued by the IRDAI in this behalf;

(f) In our opinion and to the best of our information and according to the explanations given to us, the accounting policies selected by the Company are appropriate and are in compliance with the Accounting Standards referred to in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent they are not inconsistent with the accounting principles prescribed in the Regulations and orders / directions issued by the IRDAI in this behalf;

(g) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, the Revenue Accounts, the Profit and Loss Account and the Receipts and Payments Account dealt with by this report comply with the Accounting Standards referred to in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent they are not inconsistent with the accounting principles prescribed in the Regulations and orders/directions issued by IRDAI in this regard; and

(h) On the basis of the written representations received from the directors as on March 31, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as

referred to in Note 1 of Schedule 17 to the financial statements;ii. The Company has made provision, as required under the applicable laws or accounting standards, for material

foreseeable losses, wherever applicable, on long-term contracts. Further, the Company does not have any derivative contracts.

iii. There are no amounts which are required to be transferred, to the Investor Education and Protection Fund by the Company for the year ended March 31, 2015.

For Pathak H.D. & Associates, For Singhi & Co.,Chartered Accountants Chartered AccountantsFirm Registration No.107783W Firm Registration No. 302049E

Mukesh Mehta Nikhil SinghiPartner PartnerMembership No. 043495 Membership No. 061567

Place : MumbaiDate : May 5, 2015


36

INDEPENDENT AUDITORS’ CERTIFICATE

To the Members of Reliance General Insurance Company Limited

(Referred to in paragraph 10 of our Report on Other legal and Regulatory Requirements forming part of the Independent Auditors’ Report dated May 5, 2015)

This certificate is issued to comply with the provisions of paragraphs 3 and 4 of Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations 2002, (the “Regulations”) read with regulation 3 of the Regulations.

The Company’s Board of Directors is responsible for complying with the provisions of The Insurance Act, 1938 (the “Insurance Act”), the Insurance Regulatory and Development Authority Act, 1999 (the “IRDA Act”), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “Regulations”), orders/directions issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”). This includes collecting, collating and validating data and designing, implementing and monitoring of internal controls suitable for ensuring compliance as aforesaid.

Our responsibility, for the purpose of this certificate, is limited to certifying matters contained in paragraphs 3 and 4 of Schedule C of the Regulations. We conducted our examination in accordance with the Guidance Note on Audit Reports and Certificates for Special Purposes issued by the Institute of Chartered Accountants of India (the ‘ICAI’).

In accordance with the information and explanations given to us and to the best of our knowledge and belief and based on our examination of the books of accounts and other records maintained by RELIANCE GENERAL INSURANCE COMPANY LIMITED (the “Company”) for the year ended March 31, 2015, we certify that:

1) We have reviewed the Management Report attached to the financial statements for the year ended March 31, 2015 and have found no apparent mistake or material inconsistency with the financial statements;

2) Based on management representations and the compliance certificate submitted to the Board of Directors by the officers of the Company charged with compliance and the same being noted by the Board, nothing has come to our attention that causes us to believe that the Company has not complied with the terms and conditions of registration as per sub section 4 of section 3 of the Insurance Act, 1938;

3) We have verified the cash balances, to the extent considered necessary and securities relating to Company’s loans and investments as at March 31, 2015, by actual inspection and on the basis of certificates/confirmations received from the third parties/Custodians and/Depository Participants appointed by the Company, as the case may be;

4) The Company is not a trustee of any trust; and

5) No part of the assets of the Policyholders’ Funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, 1938 relating to the application and investments of the Policyholders’ Funds.





37

REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2015Fire Insurance Business

Registration No & Date of Registration with the IRDA : Regn. No. 103 dated 23.10.2000(` in '000)

Particulars Schedule 2014-15 2013-14Premium Earned (Net) 1 483,880 410,893 Profit / (loss) on sale/redemption of Investments (Net) 15,440 9,912 Interest, Dividend & Rent – Gross 70,021 157,534 Exchange Gain / (loss) (21) - TOTAL (A) 569,320 578,339 Claims Incurred (Net) 2 364,984 365,492 Commission 3 (120,356) (133,628)Operating Expenses related to Insurance Business 4 166,514 117,596 Reserve for Premium Deficiency - - TOTAL (B) 411,142 349,460 Operating Profit/(Loss) from Fire Business C=(A)-(B) 158,178 228,879 AppropriationsTransfer to Shareholders' Accounts 158,178 228,879 Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL (C) 158,178 228,879 Significant accounting policies and notes to accounts to the Financial Statements 16 & 17

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, all expenses of management, wherever incurred, whether directly or indirectly in respect of general insurance business have been fully debited in the revenue accounts as expenditure. The Schedules referred to above form an integral part of the Financial Statements.As per our Audit Report of even date attached For and on behalf of the BoardFor Singhi & Co. Rajendra Chitale H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director (DIN No.: 0015986) Director (DIN No.: 2155529)

Nikhil Singhi Chhaya Virani Soumen GhoshPartner, Membership No. 061567 Director (DIN No.: 6953556) Director (DIN No.: 1262099)

For Pathak H. D. & Associates Rakesh Jain Hemant K. JainChartered Accountants (Firm Registration no. 107783W)

Executive Director & CEO (DIN No.: 3645324)

Chief Financial Officer

Mukesh Mehta Mohan KhandekarPartner, Membership No. 043495 Company Secretary (Membership No. A8515)



38

REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2015Marine Insurance Business

Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000(` in '000)

Particulars Schedule 2014-15 2013-14Premium Earned (Net) 1 218,674 193,096 Profit / (loss) on sale/redemption of Investments (Net) 5,727 2,253 Interest, Dividend & Rent – Gross 25,970 35,802 Exchange Gain / (loss) 57 - TOTAL (A) 250,428 231,151 Claims Incurred (Net) 2 186,055 179,780 Commission 3 15,135 24,574 Operating Expenses related to Insurance Business 4 63,529 53,655 Reserve for Premium Deficiency - (20,900)TOTAL (B) 264,719 237,109 Operating Profit/(Loss) from Marine Business C=(A)-(B) (14,291) (5,958)AppropriationsTransfer to Shareholders' Accounts (14,291) (5,958)Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL (C) (14,291) (5,958)Significant accounting policies and notes to accounts to the Financial Statements 16 & 17










39

REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2015Miscellaneous Insurance Business

Registration No & Date of Registration with the IRDAI : Regn. No. 103 dated 23.10.2000

(` in '000)Particulars Schedule 2014-15 2013-14

Premium Earned (Net) 1 18,482,070 16,793,592 Profit / (loss) on sale/redemption of Investments (Net) 715,971 148,742 Interest, Dividend & Rent – Gross 3,247,020 3,033,232 Exchange Gain / (loss) 7,584 (13,113)Misc Income 6,885 4,393 TOTAL (A) 22,459,530 19,966,846 Claims Incurred (Net) 2 17,492,003 15,490,948 Commission 3 (101,983) 505,417 Operating Expenses related to Insurance Business 4 5,146,702 4,427,086 Reserve for Premium Deficiency - - TOTAL (B) 22,536,722 20,423,451 Operating Profit/(Loss) from Miscellaneous Business C= (A)-(B) (77,192) (456,605)AppropriationsTransfer to Shareholders' Accounts (77,192) (456,605)Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL (C) (77,192) (456,605)Significant accounting policies and notes to accounts to the Financial Statements 16 &17










40

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2015Registration No & Date of Registration with the IRDAI : Regn. No. 103 dated 23.10.2000

(` in'000)Particulars 2014-15 2013-14

Operating Profit / (Loss) a. Fire Insurance 158,178 228,879 b. Marine Insurance (14,291) (5,958)c. Miscellaneous Insurance (77,192) (456,605)

66,695 (233,684)Income from Investments Interest, Dividend & Rent – Gross 784,163 822,343 Profit on sale/redemption of investments 174,410 75,346 Less: loss on sale/redemption of investment (1,501) (23,603)

957,072 874,086 Other IncomeProfit/(Loss) on sale/discard of assets (1,071) (3,132)Miscellaneous Income 8,744 17,936 Excess Provision Written Back 36,481 43,499

44,154 58,303 TOTAL (A) 1,067,921 698,705 Provisions (Other than Taxation)(a) For diminution in the value of investment - - (b) For doubtful debts 76,156 34,085 (c) Others :- Interest on refunds (refer note no. 20 of sch 17) 148,050 - Standard Assets w/back (186) (1,017)

224,020 33,068 Other ExpensesExpenses other than those related to Insurance Business 30,000 24,810 Exchange Gain / (loss) - - TOTAL (B) 254,020 57,878 Profit / (Loss) Before Tax 813,901 640,827 Provision for Taxation Current Tax 34,700 - Deferred Tax (Refer Note No.11 of Sch 17) - - MAT Credit (34,700) - Net Profit /(Loss) After Tax 813,901 640,827 Appropriations:(a) Interim dividends paid during the year - - (b) Proposed final dividend - - (c) Dividend Distribution Tax - - (d) Transfer to any reserve or other accounts (to be specified): - - - - Profit / (Loss) After appropriations 813,901 640,827 Balance of Profit / Loss brought forward from last year (8,993,804) (9,634,626)Adjustment on account of Schedule II of the Companies Act, 2013 (Refer Note No. 21 of Sch 17)

(8,178) -

Balance carried forward to Balance Sheet (8,188,081) (8,993,799)Basic Earning Per Share (Refer Note No.36 of Sch 17) 6.63 5.22 Diluted Earning Per Share (Refer Note No.36 of Sch 17) 6.59 5.22

Significant accounting policies and notes to accounts form an integral part of the Financial Statements refer schedule 16 & 17The Schedules referred to above form an integral part of the Financial Statements.As per our Audit Report of even date attached For and on behalf of the BoardFor Singhi & Co. Rajendra Chitale H. AnsariChartered Accountants (Firm Registration no. 302049E)









41

BALANCE SHEET AS AT 31ST MARCH, 2015Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000

(` in'000)Particulars Schedule 31.03.2015 31.03.2014

Sources of funds Share Capital 5&5A 1,227,750 1,227,750Reserves and Surplus 6 16,242,881 16,242,881Share Application Money Pending Allotment 900,000 -Fair Value Change Account (Refer Note No.8 of Sch 17) 14,664 6,955

Borrowings 7 - -TOTAL 18,385,295 17,477,586Application of funds Investments 8 50,483,263 38,427,155loans 9 - 46,315Fixed Assets 10 349,270 265,990Deferred Tax Assets (Refer Note No.11 of Sch 17) 372,735 372,735Current Assets Cash and Bank Balances 11 785,878 644,135 Advances and Other Assets 12 4,637,434 9,122,566Sub-Total (A) 5,423,312 9,766,701Current liabilities 13 37,426,523 31,295,618Provisions 14 9,004,843 9,099,491Sub-Total (B) 46,431,366 40,395,109Net Current Assets (C = A - B) (41,008,054) (30,628,408)Miscellaneous Expenditure 15 - -(to the extent not written off or adjusted) Debit Balance in Profit & Loss Account 8,188,081 8,993,799TOTAL 18,385,295 17,477,586Significant accounting policies and notes to accounts form an integral part of the Financial Statements refer schedule.

16 &17

The Schedules referred to above form an integral part of the Financial Statements.As per our Audit Report of even date attached For and on behalf of the BoardFor Singhi & Co. Rajendra Chitale H. AnsariChartered Accountants (Firm Registration no. 302049E)









42

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015Schedule – 1

Premium Earned (Net of Service Tax) (` in'000)

Particulars Financial year

Premium from direct business written

Premium on reinsurance

accepted


ceded

Net Premium(3+4-5)

Change in reserve for unexpired

risks

Net Premium Earned (6+7)

1 2 3 4 5 6 7 8Fire 2014-15 1,893,182 296,825 1,628,339 561,668 (77,788) 483,880

2013-14 1,779,633 304,838 1,607,947 476,524 (65,631) 410,893Marine Cargo 2014-15 415,588 1,093 188,728 227,953 (10,947) 217,006

2013-14 389,274 1,230 174,140 216,364 (25,291) 191,073Marine Hull 2014-15 44,297 - 43,268 1,029 639 1,668

2013-14 15,174 - 14,116 1,058 965 2,023Marine Total 2014-15 459,885 1,093 231,996 228,982 (10,308) 218,674

2013-14 404,448 1,230 188,256 217,422 (24,326) 193,096Motor OD 2014-15 7,581,450 27 1,540,924 6,040,553 468,985 6,509,538

2013-14 7,690,118 80 444,759 7,245,439 (256,742) 6,988,697Motor TP 2014-15 8,843,908 (23,635) 1,758,875 7,061,398 (268,300) 6,793,098

2013-14 6,756,332 167,871 466,703 6,457,500 (863,352) 5,594,148Motor Total 2014-15 16,425,358 (23,608) 3,299,799 13,101,951 200,685 13,302,636

2013-14 14,446,450 167,951 911,462 13,702,939 (1,120,094) 12,582,845Employer's liability 2014-15 79,857 - 5,818 74,039 (1,503) 72,536

2013-14 79,912 - 6,047 73,865 4,210 78,075Public liability 2014-15 261,232 5,010 223,353 42,889 3,859 46,748

2013-14 275,231 3,331 240,006 38,556 (13,099) 25,457Engineering 2014-15 674,531 81,628 596,100 160,059 (7,975) 152,084

2013-14 723,357 42,148 616,659 148,846 6,132 154,978Aviation 2014-15 31,081 - 30,256 825 165 990

2013-14 29,554 - 28,880 674 617 1,291Personal Accident 2014-15 376,090 9,131 35,624 349,597 (89,040) 260,557

2013-14 286,699 8,485 89,788 205,396 (15,473) 189,923Health* 2014-15 4,820,914 - 629,587 4,191,327 40,767 4,232,094

2013-14 4,709,475 - 1,175,909 3,533,566 50,025 3,583,591Other Misc. 2014-15 2,136,191 2,029 1,765,874 372,346 42,079 414,425

2013-14 1,153,490 692 922,356 231,826 (54,394) 177,432Misc Total 2014-15 24,805,254 74,190 6,586,411 18,293,033 189,037 18,482,070

2013-14 21,704,168 222,607 3,991,107 17,935,668 (1,142,076) 16,793,592

Total 2014-15 27,158,321 372,108 8,446,746 19,083,683 100,941 19,184,6242013-14 23,888,249 528,675 5,787,310 18,629,614 (1,232,033) 17,397,581

*Note:-

1. Refer Note no. 20 of Sch 17

2. Premium from direct business written includes ` 38,689 thousands pertaining to earlier years. Previous Year NIl.


43

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

Schedule – 2Claims Incurred (Net) (` in'000)


Claims Paid from direct business written

Claims Paid on

reinsurance Accepted

Claims Recovered

on reinsurance

ceded

Net Claims Paid

(3+4-5)

Out-standing Claims at the year

end


beginning

Net Claims Incurred (6+7-8)

1 2 3 4 5 6 7 8 9Fire 2014-15 1,024,161 71,401 801,998 293,564 482,256 410,836 364,984

2013-14 869,199 37,348 648,864 257,683 410,836 303,027 365,492Marine Cargo 2014-15 370,020 1,268 225,141 146,147 210,778 170,956 185,969

2013-14 208,377 2,637 100,155 110,859 170,956 101,723 180,092Marine Hull 2014-15 1,914 - 1,842 72 651 637 86

2013-14 295 - 30 265 637 1,214 (312)Marine Total 2014-15 371,934 1,268 226,983 146,219 211,429 171,593 186,055

2013-14 208,672 2,637 100,185 111,124 171,593 102,937 179,780Motor OD 2014-15 4,504,593 - 465,175 4,039,418 1,333,521 1,722,057 3,650,882

2013-14 4,305,196 - 373,519 3,931,677 1,722,057 1,892,076 3,761,658Motor TP 2014-15 4,897,669 79,496 253,552 4,723,613 20,501,493 16,747,101 8,478,005

2013-14 3,817,581 1,198,620 170,032 4,846,169 16,747,101 13,872,071 7,721,199Motor Total 2014-15 9,402,262 79,496 718,727 8,763,031 21,835,014 18,469,158 12,128,887

2013-14 8,122,777 1,198,620 543,551 8,777,846 18,469,158 15,764,147 11,482,857Employer's liability 2014-15 32,577 - 2,431 30,146 40,643 38,757 32,032

2013-14 21,674 - 2,170 19,504 38,827 29,412 28,919Public liability 2014-15 2,354 - 235 2,119 47,225 26,945 22,399

2013-14 3,247 - 379 2,868 26,874 13,077 16,665Engineering 2014-15 640,202 23,998 556,706 107,494 242,096 204,121 145,469

2013-14 530,784 17,804 441,456 107,132 204,121 137,135 174,118Aviation 2014-15 9,014 - 8,770 244 2,125 1,713 656

2013-14 10,651 432 10,289 794 1,713 443 2,064Personal Accident 2014-15 437,946 6,906 221,396 223,456 238,352 152,505 309,303

2013-14 199,075 210 49,897 149,388 152,505 139,800 162,093Health 2014-15 4,993,052 286 689,375 4,303,963 1,166,690 950,880 4,519,773

2013-14 4,323,384 - 1,106,848 3,216,536 950,880 637,499 3,529,917Other Misc. 2014-15 489,848 - 381,996 107,852 372,904 147,272 333,484

2013-14 323,919 (2) 219,371 104,546 147,273 157,504 94,315Misc Total 2014-15 16,007,255 110,686 2,579,636 13,538,305 23,945,049 19,991,351 17,492,003

2013-14 13,535,511 1,217,064 2,373,961 12,378,614 19,991,351 16,879,017 15,490,948Total 2014-15 17,403,350 183,355 3,608,617 13,978,088 24,638,734 20,573,780 18,043,042

2013-14 14,613,382 1,257,049 3,123,010 12,747,421 20,573,780 17,284,981 16,036,220


44


Schedule – 3Commission (Net)

(` in'000)

Particulars Financial year Commission PaidCommission paid

on reinsurance accepted

Commission received from

reinsurance ceded

Net commission (3+4-5)

1 2 3 4 5 6Fire 2014-15 101,363 14,552 236,271 (120,356) 2013-14 96,469 11,247 241,344 (133,628)Marine Cargo 2014-15 33,200 15 11,900 21,315 2013-14 35,845 12 10,004 25,853Marine Hull 2014-15 65 - 6,245 (6,180) 2013-14 359 - 1,638 (1,279)Marine Total 2014-15 33,265 15 18,145 15,135 2013-14 36,204 12 11,642 24,574Motor OD 2014-15 661,175 - 306,874 354,301 2013-14 729,673 - 66,136 663,537Motor TP 2014-15 10,885 - 312,958 (302,073) 2013-14 5,764 - 21,097 (15,333)Motor Total 2014-15 672,060 - 619,832 52,228 2013-14 735,437 - 87,233 648,204Employer's liability 2014-15 7,216 - 603 6,613 2013-14 7,262 - 1,442 5,820Public liability 2014-15 9,797 125 8,994 928 2013-14 7,974 83 12,497 (4,440)Engineering 2014-15 36,420 4,896 123,954 (82,638) 2013-14 37,385 1,703 127,403 (88,315)Aviation 2014-15 81 - 2,808 (2,727) 2013-14 160 - 1,873 (1,713)Personal Accident 2014-15 23,759 91 2,210 21,640 2013-14 22,578 85 16,921 5,742Health 2014-15 177,815 - 82,204 95,611 2013-14 190,092 - 189,241 851Other Misc. 2014-15 27,945 1 221,584 (193,638) 2013-14 25,676 - 86,408 (60,732)Misc Total 2014-15 955,093 5,113 1,062,189 (101,983) 2013-14 1,026,564 1,871 523,018 505,417Total 2014-15 1,089,721 19,680 1,316,605 (207,204)

2013-14 1,159,237 13,130 776,004 396,363

Schedule 3 ACommission Paid - Direct

(` in '000)

Particulars Paid in India Paid Outside India2014-15 2013-14 2014-15 2013-14

Agents 716,850 767,180 - - Brokers 318,273 351,581 - - Corporate agency 54,598 40,476 - - Other - - - - Total 1,089,721 1,159,237 - -


45


Schedule – 4

Operating Expenses related to insurance business

(` in'000)Particulars 2014-15 2013-14

Employees’ remuneration & welfare benefits 1,671,270 1,371,198Company's contribution to Provident fund and others 113,890 72,006Travel, conveyance and vehicle running expenses 109,547 65,704Rents, rates & taxes 189,038 266,454Repairs 298,606 273,586Printing & Stationery 47,784 50,910Communication expenses 102,875 93,301Postage expenses 52,643 41,292legal & professional charges 140,730 182,729Auditors Fees, expenses, etc. a. As auditor 4,548 3,969 b. As advisor or in any other capacity, in respect (i) Taxation matters - - (ii) Insurance matters - - (iii) Management services; and - - c. In any other capacity - 4,548 - 3,969Advertisement and Publicity 1,905,380 1,687,377Interest & Bank Charges 28,132 32,317Service Tax Expenses 137,834 52,824Others : Directors' Sitting fees 1,100 620Entertainment Expenses 7,303 6,133Office Maintenance Expenses 157,688 147,376Training & Recruitment Expenses 122,447 57,220Depreciation (Refer Note No. 21 of Sch 17) 134,347 113,504Office Management Expenses 60,000 56,000Subscriptions and Membership Fees 30,602 26,433Coinsurance Expenses (net) 34,028 10,524Miscellaneous expenses 56,953 11,670TOTAL 5,406,745 4,623,147Allocation:Fire Revenue Account 166,514 117,596Marine Revenue Account 63,529 53,655Miscellaneous Revenue Account 5,146,702 4,427,086Expenses not relating to Insurance Business taken in Profit & loss A/c 30,000 24,810

TOTAL 5,406,745 4,623,147


46


Schedule – 5

Share Capital

(` in'000) Particulars 2014-15 2013-14

Authorized Capital 20,00,00,000 (Previous Year 20,00,00,000) Equity Shares of ` 10 each 2,000,000 2,000,000

Issued Capital 12,27,74,960 (Previous Year 12,27,74,960) Equity Shares of ` 10 each 1,227,750 1,227,750

Subscribed Capital 12,27,74,960 (Previous Year 12,27,74,960) Equity Shares of ` 10 each 1,227,750 1,227,750

Called Up Capital 12,27,74,960 (Previous Year 12,27,74,960) Equity Shares of ` 10 each 1,227,750 1,227,750

less : Calls Unpaid - -Add : Equity Share forfeited (Amount originally paid up) - -less : Par value of Equity shares bought back - -less : (i) Preliminary Expenses to the extent not written off - -

(ii) Expenses including commission or brokerage on underwriting or subscription of shares - -

Total 1,227,750 1,227,750Note: Of the above 12,21,10,660 shares are held by Holding Company, Reliance Capital limited (previous period 11,84,80,288 Equity shares).

Schedule – 5A Pattern of Share Holding (As certified by the Management)

(` in'000) Shareholder 2014-15 2013-14

No. of Shares

% of Holding

No. of Shares

% of Holding

Promoters- Indian Holding Company- Indian 122,110,660 99.46% 118,480,288 96.50%

Holding Company- Foreign - - - -

Others Reliance General Insurance Employees Benefit Trust 664,300 0.54% 4,294,672 3.50%

Total 122,774,960 100.00% 122,774,960 100%


47


Schedule – 6

Reserves and Surplus

(` in'000) Particulars 2014-15 2013-14

Capital Reserve - -

Capital Redemption Reserve - -

Share Premium 16,242,881 16,242,881

General Reserve - -

Catastrophe Reserve - -

Other Reserves - -

Balance in Profit and Loss Account - -

Total 16,242,881 16,242,881

SCHEDULE – 7 Borrowings

(` in'000) Particulars 2014-15 2013-14

Debentures/ Bonds - -

Banks - -

Financial Institutions - -

Others - -Total - -


48


SCHEDULE – 8

Investments(` in'000)

Particulars 2014-15 2013-14 LONG TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills 16,126,270 12,236,993

Other Approved Securities 704,848 1,545,371Other Investments : (a) Shares (aa) Equity 628,319 505,038 (bb) Preference - -(b) Mutual Funds - -(c) Derivative Instruments - -(d) Debentures/ Bonds 12,047,660 7,984,220(e) Other securities - -(f) Subsidiaries - -(g) Investment Properties-Real Estate - -Investments in Infrastructure and social sector 8,705,315 7,288,629Other than Approved Investments 558,170 675,964Total Long Term Investments 38,770,582 30,236,215SHORT TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills - -

Other Approved Securities 19,930 -Other Investments : (a) Shares (aa) Equity - - (bb) Preference - -(b) Mutual Funds 1,049,043 -(c) Derivative Instruments - -(d) Debentures/ Bonds 7,131,744 6,333,046(e) Other securities - -(f) Subsidiaries - -(g) Investment Properties-Real Estate - -Investments in Infrastructure and social sector 3,260,452 1,847,206Other than Approved Investments 251,512 10,688Total Short Term Investments 11,712,681 8,190,940Total 50,483,263 38,427,155

1. The value of Investment Other than listed equity shares is as follows: (` in'000)

Particulars Current Year Previous YearBook Value 49,619,807 37,799,373 Market Value 50,387,096 37,077,566

2. Government Securities includes 8.24% Government of India Securitites with Maturity 22nd April, 2018 for ` 129,075 thousands as at 31st March 2015 (as at 31st March 2014 ` 131,731 thousands) as deposit u/s 7 of the Insurance Act, 1938. The above Investments are held in the Constituent Subisidary General ledger Account with HDFC Bank.

3. All the above investments are performing assets.

4. The company has not segregated the investments separately between policyholder's funds and shareholders funds, due to pratical difficulty and the same has been approved by the Board of Directors as per requirement of Master circular on Preparation of Financial Statements vide circular no. IRDA-F&I-CIR-F&A-231-10-2012.


49


SCHEDULE – 9

Loans

(` in'000) Particulars 2014-15 2013-14

SECURITY-WISE ClASSIFICATION

Secured

(a) On mortgage of property

(aa) In India - -

(bb) Outside India - -

(b) On Shares, Bonds, Govt. Securities - -

(c) Others (to be specified) - -

Unsecured - 46,315

Total - 46,315BORROWER-WISE ClASSIFICATION

(a) Central and State Governments - -

(b) Banks and Financial Institutions - -

(c) Subsidiaries - -

(d) Industrial Undertakings - -

(e) Others - Trustees of Reliance General Insurance Employee's Benefit Trust - 46,315

Total - 46,315PERFORMANCE-WISE ClASSIFICATION

(a) Loans classified as standard

(aa) In India - 46,315


(b) Non-performing loans less provisions

(aa) In India - -


Total - 46,315MATURITY-WISE ClASSIFICATION

(a) Short Term - -

(b) long Term - 46,315

Total - 46,315

* Net of Provision of Nil (Previous Year ` 186) (` in '000)


50

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51


Schedule – 11 Cash and Bank Balances

(` in'000) Particualrs 2014-15 2013-14

Cash (including cheques, drafts and stamps on hand) 50,698 86,786Bank Balances (a) Deposit Accounts (aa) Short - term (due within 12 months) 74,735 1,400 (aa) Others - -(b) Current Accounts* 440,195 329,149(c) Cheques on Hand 220,250 735,180 226,800 557,349 Money at Call and Short Notice (a) With Bank - - (b) With other Institutions - - - -Others - -Total 785,878 644,135Balances with non-scheduled banks included in (Current Accounts) above - -

Total 785,878 644,135Short term deposit represents fixed deposit given to bank for bank guarantee. *` 196 009 thousand is earmarked for specified purpose in a separate bank account (refer note no. 20 of sch 17)

Schedule – 12 Advances and Other Assets

(` in'000) Particualrs 2014-15 2013-14

Advances Reserve deposits with Ceding Companies - -Application money for investments - -Prepayments 46,374 34,571Advances to Directors/ Officers - -Advance tax paid and taxes deducted at source (Net of provision for taxation) 78,021 7,510

MAT Credit Entitlement 34,700 -Others - Rental & Other Deposits 299,468 198,635- Advances to Staff 1,957 1,494- Unutilised Service Tax Credit and VAT 42,590 202,593- Other Advances & Deposits 78,340 422,355 184,954 587,676Other Assets Income accrued on investments 1,880,825 1,545,911Outstanding Premiums 529,200 200,421Agents' Balances 714 719Foreign Agency Balances - -Due from subsidiaries/holding cos. - -Repossessed Stock 0 15Due from other entities carrying on insurance business 1,981,006 7,117,986less Provision for doubtful debts (335,761) (372,243)Motor Pool Translition liabilities (Unamortised losses) - 4,055,984 - 8,492,809Deposit with Reserve Bank of India (Pursuant to Section 7 of Insurance Act,1938) - -

Total 4,637,434 9,122,566


52


Schedule – 13

Current Liabilities

(` in'000) Particualrs 2014-15 2013-14

Agent's Balances 91,793 80,573Balances due to other insurance companies 2,429,694 226,916Premium received in Advance 84,530 45,965Unallocated Premium 505,602 1,071,194Sundry Creditors 1,127,389 1,264,596Claims Outstanding 31,859,612 27,746,457Add : Provision for Doubtful Reinsurance Recoveries 137,330 31,996,942 135,125 27,881,582Due to Officers / Directors - -Others : - Unclaimed amount of policyholders 746,482 367,327- Environmental Relief Fund Payable (Refer Note No. 18

of Schedule 17) 51 61

- Temporary Book Overdraft as per accounts 322,495 269,742- Employee Related Payables 19,230 13,837- Statutory Dues 85,995 61,683- Service Tax & VAT liability 16,320 1,190,573 12,142 724,792Total 37,426,523 31,295,618

Schedule – 14 Provisions

(` in'000) Particualrs 2014-15 2013-14

Reserve for Unexpired Risk 8,883,956 8,984,897For Taxation (less advance tax paid and Tax deducted at source) - -

Provision for doubtful debts - -For Proposed Dividends - -For Dividend distribution tax - -Reserve for Premium Deficiency - -Others : - For Grautity 4,179 -- For leave Encashment 16,708 14,594- For Risk Reserves 100,000 120,887 100,000 114,594Total 9,004,843 9,099,491

SCHEDULE – 15 Miscellaneous Expenditure

(` in'000) Particualrs 2014-15 2013-14

Discount Allowed in issue of shares/ debentures - -Others (to be specified) - -Total - -


53

RECEIPTS AND PAYMENTS ACCOUNT FOR YEAR ENDED 31ST MARCH, 2015 Registration No. and Date of Registration with the IRDA : Regn. No. 103 dated 23.10.2000

(` in'000) Particualrs Current Period Previous Period

Cash flows from operating activities :Direct Premiums received 27,196,885 23,577,329Payment to re-insurers, net of commissions and claims 3,541,607 (218,539)Payment to co-insurers, net claims recovery 481,199 (274,184)Direct Claims Paid (17,306,508) (15,086,786)Direct Commission / Brokerage Payments (1,065,413) (1,180,744)Payment of other operating expenses (5,523,995) (4,342,189)Preliminary and pre-operating expenses - -Deposits, Advances, and Staff loans (490,968) 660,118Service Tax (Net) 56,435 (94,734)Income tax paid (Net) (105,043) (1,702)Wealth tax paid - -Misc Receipts/payments 14,510 (8,725)Cash flow before extraordinary items 6,798,709 3,029,844Cash flow from extraordinary operations - -Cash flow from operating activities 6,798,709 3,029,844Cash flows from investing activities :Purchase of investments (46,918,212) (28,035,131)Sale of Investments (Including gain/ loss) 39,452,906 21,544,160Purchase of fixed Assets (237,274) (138,495)Proceeds from sale of fixed assets 10,484 6,277Rent/ Interest/ Dividends received 3,655,873 2,845,638Investment in money market instruments and in liquid mutual funds (Net) (3,589,995) 838,282

Repayment received on loan Given 46,501 254,126Expenses related to investments (30,000) (24,810)Net Cash flow from investing activies (7,609,718) (2,709,953)Cash flows from financing activities :Proceeds from Issuance of Share Capital - -Share Application Money Received 900,000Proceeds from borrowings - -Repayment of borrowings - -Interest/ Dividend Paid - -Cash flow from financing activities 900,000 -Net increase in cash & cash equivalents 88,991 319,891Cash and cash equivalents at the beginning of the year 374,393 54,502Cash and cash equivalents at the end of the period including Bank Overdraft 463,383 374,393

Cash and cash Equivalent at the end of the period: Cash & Bank balance as per schedule* 785,878 644,135 less: Temporary book over draft as per schedule 322,495 269,742Cash and Cash Equivalent at the end including Bank Overdraft 463,383 374,393

*` 196,009 thousand is earmarked for specified purpose in a separate bank account (refer note no. 20 of sch 17)Significant accounting policies and notes to accounts form an integral part of the Financial Statements refer schedule 16 & 17As per our Audit report of even date attached. For and on behalf of the BoardFor Singhi & Co. Rajendra Chitale H. AnsariChartered Accountants (Firm Registration no. 302049E)









54

SCHEDULE – 16

Significant accounting policies forming part of the financial statements as at 31st March 2015

1. Background

Reliance General Insurance Company limited (“the Company”) was incorporated on August 17, 2000 as a Company under the Companies Act, 1956 (“the Act”). The Company is a subsidiary of Reliance Capital limited. The Company obtained regulatory approval to undertake General Insurance business on October 23, 2000 from the Insurance Regulatory and Development Authority of India (“IRDAI”) and has also obtained its certificate of renewal of registration with validity until March 31, 2016.

2. Basis of Preparation of Financial Statements

The accompanying financial statements are drawn up in accordance with the Insurance Regulatory and Development Authority Act, 1999, the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations 2002, and orders and directions issued by IRDAI in this behalf and the Regulations framed there under read with relevant provisions of the Insurance Act, 1938 and the Companies Act, 2013 to the extent applicable. The financial statements have been prepared under historical cost convention and on accrual basis in accordance with the generally accepted accounting principles, in compliance with the Accounting Standard (AS) to the extent applicable and conform to the statutory provisions in regard to general insurance operations in India.

3. Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Actual results may differ from those estimates and assumptions. The estimates and assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant facts and circumstances as on the date of the financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.

4. Revenue Recognition

a. Premium income

Premium (net of service tax) is recognized as income over the contract period or the period of risk whichever is appropriate. Any subsequent revisions to or cancellations of premium are recognised in the year in which they occur.

b. Income from reinsurance ceded

i. Commission income on reinsurance ceded is recognized as income in the period in which reinsurance premium is ceded.

ii. Profit commission under reinsurance treaties, wherever applicable, is recognized on accrual basis. Any subsequent revisions of profit commission are recognized in the year in which final determination of the profits are intimated by reinsurers.

c. Income earned on investments

Interest income is recognized on accrual basis. Accretion of discount and amortization of premium relating to debt securities is recognized over the holding / maturity period on constant yield to maturity method. Dividend is recognized when right to receive dividend is established.

Realised profit or loss on sale/redemption of securities is recognized on trade date basis. In determining the realised profit and loss, the cost of securities is arrived at on weighted average cost basis. Further, in case of listed equity shares and mutual funds the profit and loss also includes accumulated changes in the fair value previously recognized in the fair value change account under the equity and includes effects on accumulated fair value changes, previously recognized, for specific investments sold/redeemed during the year.


55

5. Premium Received in Advance

Premium received in advance represents premium received in respect of policies issued during the year, where the risk commences subsequent to the balance sheet date.

6. Reinsurance Premium

i. Insurance premium ceded is accounted in the year in which the risk commences and recognized over the Contract period. Any subsequent revision to refunds & cancellation of policies are recognized in the year in which they occur.

ii. Reinsurance inward is accounted to the extent of the returns received from the reinsurer.

7. Reserve for Unexpired Risk

Reserve for unexpired risk is made on the amount representing that part of the net premium written which attributable to, and to be allocated to the succeeding accounting period using 1/365 method.

8. Claims Incurred

Claims incurred comprises of claims paid (net of salvage and other recoveries), estimated liability for outstanding claims made following a loss occurrence reported and estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported (‘IBNER’). Further, claims incurred also include specific claim settlement costs such as survey / legal fees and other directly attributable costs.

Salvaged vehicles are recognized on realization basis.

Claims (net of amounts receivable from reinsurers/coinsurers) are recognised on the date of intimation on management estimates of ultimate amounts likely to be paid on each claim based on the past experience. These estimates are progressively revalidated on availability of further information.

IBNR represents that amount of claims that may have been incurred during the accounting period but have not been reported or claimed. The IBNR provision also includes provision, if any, required for claims IBNER. Estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported (‘IBNER’) is based on actuarial estimate duly certified by the appointed actuary of the Company.

9. Acquisition Cost

Acquisition costs are costs that vary with and are primarily related to acquisition of insurance contracts and are expensed in the period in which they are incurred.

10. Loans

loans are stated at historical cost, subject to provision as per master circular IRDA/F&I/CIR/F&A/231/10/2012 dated October 5th, 2012 and impairment, if any.

11. Premium Deficiency

Premium deficiency is recognized if the ultimate amount of expected net claim costs, related expenses and maintenance costs exceeds the sum of related premium carried forward to subsequent accounting period as the reserve for unexpired risk. Premium deficiency is recognised for the Company as a whole, on an annual basis as per IRDAI circular IRDA/F&A/CIR/FA/126/07/2013.The Company considers maintenance cost as relevant costs incurred for ensuring claim handling operations.

12. Investments

i. Investments maturing within twelve months from the Balance Sheet date are classified as short term investments. Investments other than short term investments are classified as long term investments

ii. Investments are carried at cost on weighted average basis. Cost includes brokerage, securities transactions tax, stamp duty and other charges incidental to transactions.

iii. Investment in debt securities is shown in the Balance sheet at historical cost subject to amortisation/accretion of the premium/discount over the maturity period based on constant yield to maturity method.


56

iv. Investment in equity shares as at the Balance Sheet date is stated at fair value and fair value is the last quoted closing price on the National Stock Exchange. However, in case of any stock not being listed in National Stock Exchange, then the last quoted closing price in Bombay Stock Exchange is taken as fair value. Unrealized gains/losses are credited / debited to fair value change account.

v. Investment in Mutual Funds units is stated at latest available Net Asset Value (NAV) at the time of valuation at Balance Sheet date. Unrealized gains/losses are credited / debited to fair value change account.

vi. In accordance with the regulations, unrealized gain/loss arising due to changes in fair value of listed equity shares is taken to the fair value change account. This balance in the fair value change account is not available for distribution, pending crystallizations.

13. Impairment of Investments

The Company assesses at each Balance Sheet date whether there is any indication that any investment in equity or units of mutual funds is impaired. If any such indication exists, the carrying value of such investment is reduced to its recoverable amount and the impairment loss is recognized in the revenue(s)/profit and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and investment is restated to that extent.

14. Employee Stock Option Plan

The company follows the intrinsic method for computing the compensation cost, for options granted under the Plan. The difference, if any, between the intrinsic value and the exercise price, being the compensation cost is amortized over the vesting period of the options.

15. Fixed Assets & Depreciation/Amortisation

i. Fixed assets are stated at cost less accumulated depreciation.

ii. Depreciation on Fixed Assets is provided on useful life basis at the rates and the manner provided in Schedule II of the Companies Act, 2013.

iii. Lease Hold Improvements, is amortized over the primary period of lease.

iv. Assets purchased for value not exceeding ` 5000/- is fully depreciated in the year of purchase.

v. Intangible assets are stated at cost of acquisition less accumulated amortization. The same is amortized over a period of four years on straight line basis as per technical advice.

vi. Based on the technical advice, the use lives for Mobile Handset, Camera, Tablet PC are amortized over a period of two years on straight line basis.

16. Impairment of Assets

The Company assesses at each Balance Sheet Date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the impairment loss is recognized in the profit and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that extent.

17. Operating Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating lease payments of assets/premises taken on operating lease are recognised as an expense in the revenue and profit and loss account over the lease term on straight-line basis.

18. Employee Benefits

I. Short Term Employee Benefits

All employee benefits payable within 12 months of rendering of services are classified as short term employee benefits. All Short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.


57

II. Long Term Employee Benefits

All employee benefits other than short term employee benefits are classified as long term employee benefits. The Company has both defined contribution and defined benefits plan.

A. Defined Contribution Plan

Provident fund

Each eligible employee and the Company make an equal contribution at a percentage of the basic salary specified under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no further obligations under the plan beyond its periodic contributions. The Company contribution towards this fund is charged to profit and loss account and revenue accounts as applicable.

Superannuation

The Company has incorporated a superannuation trust. The superannuation contribution is based on a percentage of basic salary payable to eligible employees for the period of service. The Company contribution towards this trust is charged to profit and loss account and revenue accounts as applicable.

B. Defined Benefit Plan

The Company has incorporated a gratuity trust. Gratuity, which is a defined benefit scheme is accounted for on projected credit unit method on the basis of an actuarial valuation done at the year end and is charged to the profit and loss account and revenue accounts as applicable.

III. Other Long Term Employee Benefits

Accrued leave is a long term employee benefit. Compensated absences are provided based on actuarial valuation as at Balance Sheet date and is recognized in the profit and loss account and revenue accounts as applicable.

19. Foreign Currency Transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year end are reinstated at the year end rates. Non-monetary foreign currency items are carried at cost. Any gain or loss on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account and Revenue Accounts as applicable.

20. Forward Contract Transaction

In case of forward exchange contracts entered into, to hedge the foreign currency exposure in respect of monetary items, the difference between the exchange rate on the date of such contracts and the period end rate is recognized in the Statement of Profit and Loss. Any profit / loss arising on cancellation of forward exchange contract is recognized as income or expense of the year.

21. Provision for Taxation

The Company provides for Income Tax in accordance with the provisions of Income Tax Act 1961. Provision for Income Tax is made on the basis of estimated taxable income for the year at current rates. Tax expenses comprises of both Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current tax represents the amounts of Income Tax payable/recoverable in respect of the taxable income/loss for the reporting period.

Deferred Tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation and carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty backed by the convincing evidence of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and are appropriately adjusted to reflect the amount that is reasonably or virtually certain to be realized.

In accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India and in accordance with the provisions of the Income tax Act, 1961, Minimun Alternative Tax (MAT) credit is recognized as an asset to the extent there is convincing evidence that the Company will pay normal income tax in future by way of a credit to the profit and loss account and shown as MAT credit entitlement.


58

22. Allocation of Expenses

Operating expenses relating to insurance business are allocated to specific classes of business on the following basis:

• Expenses, which are attributable and identifiable to the business segments, are directly charged to relevant business segment. This is determined by the management, based on the nature of the expenses and their relationship with various business segments, wherever possible

• Other expenses, that are not identifiable to a segments, are allocated on the basis of ratio of net written premium in each business class

Expenses relating to investment activities are charged to profit and loss account.

23. Allocation of Investment Income

Investment Income has been allocated between revenue accounts and profit and loss account on the basis of the ratio of average policyholders funds to average shareholders funds respectively; average being the balance at the beginning of the year and at the end of the year. Further, investment income between policyholders is allocated on the basis of the ratio of average policyholders’ funds comprising reserves for unexpired risks, IBNR, IBNER and outstanding claims.

24. Earnings per share (EPS)

The earnings considered in ascertaining the Company’s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises of weighted average number of shares considered for deriving basic EPS and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion of equity shares would decrease the net profit per share from continuing ordinary operations.

25. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

SCHEDULE – 17

Notes forming part of the Accounts as on 31st March 2015

1. Contingent Liabilities:

(` in ‘000)Particulars At March 31, 2015 At March 31, 2014

Partly paid up investments - -Underwriting commitments outstanding - -Claims, other than under policies, not acknowledged as debt (Net) 14,706 12,612Guarantees given by or on behalf of the company 75,285 1,050Statutory demands/liabilities in dispute, not provided for (Amount paid under dispute ` 2,310 thousand ,see note below) 3,172 2,310

Reinsurance obligations to the extent not provided for in accounts - -Others - -

Note:- The company had disputed the demand raised by the Income tax department for non deduction of tax at source and penalty for A. Y. 2009-10 for ` 1,238 thousands and ` 1,072 thousands respectively (Previous ` 1,238 thousands and ` 1,072 thousands respectively). Also during the current financial year, Company has received two new demands for ` 495 thousands u/s 271(1)(c) relating to Assessment Year 2012-13 and ` 367 thousands u/s 143(3) read with section 148 relating to Assessment Year 2007-08. We have filed an appeal with CIT(A) and filed a rectification letter against the demands received u/s 271(1)(c) and u/s 143(3) for Assessment year 2012-13 and 2007-08 respectively.


59

2. The management is continuously in the process of identifying enterprises which have been provided goods and services to the Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly the disclosure in respect of the amount payable to such Micro, Small and Medium enterprises as at 31st March, 2015 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

3. There are no encumbrances to the assets of the company in and outside India.

4. The company has not invested any amount in real estate in the current financial year.

5. Commitments:

i. There are no commitments made and outstanding for Loans in the current financial year (Previous year Nil).

ii. The commitments made and outstanding for Investments are Nil (Previous year ` 3,129 thousands).

iii. Estimated amount of commitment pertaining to contracts remaining to be executed in respect of fixed assets(net of advances) is ` 11,434 thousands (Previous year ` 57,509 thousands).

6. Premium:

i. All premiums net of reinsurance are written and received in India.

ii. Premium income recognised on “Varying Risk Patten” is Nil. (Previous year: Nil)

7. Claims:

i. Claims net of reinsurances are incurred and paid to claimants in/outside India as under:(` in ‘000)

Particulars For the Year ended March 31, 2015

For the Year ended March 31, 2014

In India 13,926,699 12,709,414Outside India 51,389 38,007

ii. There are no claims which are settled and unpaid for a period of more than six months as on the Balance Sheet date.

iii. Ageing of gross claims outstanding is set out in the table below:(` in ‘000)



More than six months 16,871,789 14,582,930Others 4,450,247 4,967,627

iv. Claims where the claim payment period exceeds four years is Nil. (Previous year Nil)

8. Investments:

i. Value of contracts in relation to investments for:(` in ‘000)



Purchases where deliveries are pending - 3,129Sales where payment are overdue - -Sales where deliveries are pending - 86,181

ii. Historical cost of investments valued at fair value on Balance Sheet date is ` 1,988,592 thousands (Previous year ` 620,824 thousands).


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9. Reserve for unexpired risk :

Reserve for unexpired risk (URR) for the current year has been computed on the basis of 1/365 method i.e. actual number of days left in the policy period divided by total number of days of policy period.

In the previous year, the above URR was subject to a minimum of 100% in case of marine hull business and 50% in case of other business, of net written premium, of unexpired policies as on the balance sheet date (i.e. those policies are not considered, where policy period has lapsed during the year itself based on IRDAI circular no. IRDA/F&A/CIR/FA/126/07/2013) as required by Section 64V (1)(ii)(b) of the Insurance Act, 1938. This change in the previous year had resulted in decrease in URR creation amount of ` 645,304 thousand with consequential impact in respective revenue accounts and accordingly previous year figures are not comparable to the current year.

During the current year, the minimum of 100% in case of marine hull business and 50% in case of other business, of net written premium, of unexpired policies as on the balance sheet date is not considered for the purpose of URR calculation based on IRDAI circular no. IRDA/F&A/CIR/FA/126/07/2013. Had the Company continued accounting on the basis of the minimum requirement, it would have resulted in creation of additional unexpired risk reserve amounting to ` 586 thousands with consequential impact on the respective revenue accounts.

10. Employee Benefits:

i. Defined Contribution Plan: During the year, Company has recognized ̀ 43,991 thousands as expenses (Previous year ` 38,616 thousands)

ii. Defined Benefit Plan: The disclosure required under the define benefit plan as per AS 15 for gratuity fund is as follow:

(` in ‘000)

Gratuity For the Year ended March 31, 2015


I. Assumptions Discount Rate 8.08% 9.31% Rate of Return on Plan Assets 8.08% 9.31% Salary Escalation 6.00% 5.00%II. Table Showing Change in Benefit Obligation liability at the beginning of the Year 45,727 43,795 Interest Cost 4,257 3,612 Current Service Cost 10,167 11,048 Benefit Paid (12,591) (14,140) Actuarial Gain/(loss) on Plan Obligation 31,750 1,412 liability at the end of the Year 79,310 45,727III. Tables of Fair value of Plan Assets Fair Value of Plan Assets at the beginning of the Year 49,595 39,117 Expected Return on Plan Assets 4,617 3,403 Contributions 28,788 20,924 Benefit Paid (12,591) (14,140) Actuarial Gain/(loss) on Plan Assets 4,722 291 Fair Value of Plan Assets at the end of the Year 75,131 49,595 Total Actuarial Gain/(loss) to be recognised 27,028 1,121IV. Actual Return on Plan Assets Expected return on Plan Assets 4,617 3,403 Actuarial Gain/(loss) on Plan Assets 4,722 291 Actual return on Plan Assets 9,339 3,694


61

(` in ‘000)



V. Amount Recognised in the Balance Sheet liability at the end of the Year 79,310 45,727 Fair Value of Plan Assets at the end of the Year 75,131 49,595 Difference 4,178 (3,868) Amount Recognised in the Balance Sheet 4,178 (3,868)VI. Expenses Recognised in the Income Statement Current Service Cost 10,167 11,048 Interest Cost 4,257 3,612 Expected Return on Plan Assets 4,617 3,403 Net Actuarial Gain/(Loss) to be recognized 27,028 1,121 Expense Recognised in P&l 36,835 12,378VII. Amount Recognised in the Balance Sheet Opening Net liability (3,868) 4,678 Expense as above 36,835 12,378 Employers Contribution Paid (28,788) 20,924 Closing Net liability 4,178 (3,868)

Experience adjustments

Year ended March

31,2015

Year ended March

31,2014

Year ended March

31,2013

Year ended March

31,2012

Year ended March

31,2011Defined benefits obligations 79,310 45,727 43,795 35,090 30,300Plan assets 75,131 49,596 39,117 30,097 33,533Surplus/ (Deficit) (4,178) 3,869 (4,678) (4,993) 3,233Experience adjustment for plan liabilities (Gain)/ losses

15,910 670 828 (538) (6,110)

Experience adjustment for plan liabilities (losses)/Gains

4,722 291 -111 (1,454) (753)

As the gratuity fund is managed by Reliance life Insurance Company, details of its investments are not available with the Company.

11. Deferred Taxes:

The deferred tax assets and liabilities arising due to timing differences have been recognized in the financial statements as under:

(` in ‘000)



Deferred Tax AssetRelated to Fixed Assets 7,181 35,833Related to leave Encashment Provision 5,421 4,733Unabsorbed Depreciation 360,134 332,169Total 372,735 372,735Deferred Tax Asset/(Liability)(Net) 372,735 372,735Deferred Tax Expense/(Income) recognised in Profit and Loss A/c - -


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12. Employee Stock Option Plan (ESOP):

The company had introduced the Employee Stock Option Plan during the F. Y. 2008-09 under which options were granted to the employees of the Company on the basis of their performance and other eligibility criteria. During the year the Company granted Nil equity shares (Previous year Nil) to Reliance General Insurance Employees’ Benefit Trust. These options are planned to be settled in cash or equity at the time of exercise and have maximum period of 7 years from the date of respective grants. The plan existing during the year is as follows:

Exercise PeriodOn completion of 3 years 30%On completion of 4 years 30%On completion of 5 years 40%

The information covering stock options granted, exercised, forfeited and outstanding at the year end is as follows:

Particulars

For the Year ended March 31, 2015 For the Year ended March 31, 2014No. of Stock

Options

Weighted Average Exercise Price (`)

Weighted Average

remaining Contractual Life (Years)

No. of Stock

Options


Weighted Average


Outstanding at the beginning of the year

414,900 70 0.42 414,900 70 1.42

Granted - - - - - -Exercised - - - - - -lapsed/Forfeited/Surrended 414,900 - - - - -Outstanding at the end of the year - - - 414,900 70 -Exercisable at the end of the year - - - 414,900 70 -

As there are no exercisable options as at the year end there is no requirement of valuation or accounting of the same.

13. Premium Deficiency:

In accordance with circular no IRDA/F&A/CIR/FA/126/07/2013 there is no premium deficiency for the Company as a whole, on an annual basis.

14. Details of Outsourcing, Business Development and Marketing Support Expenses:

(` in ‘000)



Outsourcing Expenses 958,742 827,006Business Development 1,564,644 1,306,529Marketing Support 340,735 380,849

15. Terrorism Pool:

In accordance with the requirements of IRDAI, the company together with other insurance companies participates in the Terrorism Pool. This pool is managed by the General Insurance Corporation of India (GIC). Amount collected as terrorism premium in accordance with the requirements of the Tariff Advisory Committee (TAC) are ceded at 100% of the terrorism premium collected to the Terrorism Pool.

In accordance with the terms of the agreement, GIC retrocedes to the company, terrorism premium to the extent of the company’s share in the risk which is recorded as reinsurance accepted. Such reinsurance accepted is recorded based on quarterly statements received from GIC. The reinsurance accepted on account of terrorism pool has been recorded in accordance with the last statement received from GIC

The Company has created liability to the extent of 50% of premium retroceded to the company through reserve for unexpired risks.


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16. Indian Motor Third Party Insurance Pool (IMTPIP):

(a) In accordance with the directions of IRDAI, the Company, together with other insurance companies, had participated in the Indian Motor Third Party Insurance Pool (IMTPIP). The IMTPIP was a multilateral reinsurance arrangement, in which all member companies were compulsorily required to participate. The IMTPIP was administered by the General Insurance Corporation of India (‘GIC’). The IMTPIP had covered reinsurance of third party risks of specified motor vehicles (“Specified Risks”). Amounts collected as premium in respect of Specified Risks were ceded at 100% of such premium, 100% of claims incurred against risks ceded being recoverable from the pool.

In accordance with the terms of the agreement, each participant company was compulsorily required to share in the revenues, expenses, assets and liabilities of the IMTPIP, including Unexpired Risks Reserve, in the proportion that the company’s Gross Direct Premium written in India (GDPI), bears to the total GDPI of all participant companies. The Company’s share as specified above had been recorded based on the returns submitted by GIC, under the respective heads.

(b) IRDAI through its Orders dated December 23, 2011, January 3, 2012 and March 22, 2012 had directed the dismantling of the Pool on a clean cut basis and advised recognition of the Pool liabilities as per loss ratios estimated by Government’s Actuary Department UK (“GAD Estimates”) at 159%, 188%, 200%, 213% and 145% for underwriting year 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 respectively with the option to recognise the additional liabilities for the period 2009-10, 2010-11 and 2011-12 over a three year period, The company had exercised this option and IMTPIP liability relating to underwriting years 2009-10, 2010-11, 2011-12 is being recognized based on straight line basis over three years beginning with financial year 31st March, 2012. Accordingly, the profit of the company for the financial year 2013-14 was lower by ` 792,765 thousands pursuant to recognition of the liability pertaining to the dismantling of IMTPIP.

(c) During the year 2013-14, Company had also accounted investment income of ` 786,461 thousands (including ` 472,898 thousands pertaining to earlier period) as interest income from IMTPI Pool as per IRDAI Order No. IRDA/F&A/ORD/MTPP/070/03-2012 dated March 22, 2012 read with IRDAI Order No. IRDA/Nl/ORD/MPl/100/03/2014. In the current year, The pool account is settled with the receipt of payment on account of dismantling of pool.

Accordingly figures of the current year are not comparable to the previous year to the above extent.

17. Indian Motor Third Party Decline Risk Pool (IMTPDRP):

In accordance with the directions of IRDAI, the Company, together with other insurance companies, is participating in the Indian Motor Third Party Decline Risk Pool (IMTPDRP). The IMTDRP is a multilateral reinsurance arrangement, in which all member companies are compulsorily required to participate. The IMTDRP is administered by the General Insurance Corporation of India (GIC).

The Authority vide Order dated January 03, 2012 has created IMTPDRP for Act only Commercial Vehicle third party risks i.e. Act only policies.

Under this arrangement, any business relating to Act only policies of Commercial Vehicles which does not fall within the underwriting parameters of insurers shall be ceded to IMTPDRP. This arrangement is called the Declined Risk Pool.

IRDAI has mandated that every insurer has to comply with the obligation to underwrite a minimum percentage of such policies that is calculated as an average of insurer’s total gross premium percentage share in the industry and gross motor premium percentage share in the industry.

The insurers are required to retain 20% of such risk, while 5% is ceded to GIC under obligatory cession and remaining 75% ceded to IMTPDRP.

The Company has received its share of premium, claims and expenses of the pool, which is recorded as inward reinsurance business, based on the statement received from GIC. Accordingly the Company has recognized pool retrocession up to 9 month period ended 31st December 2014, the accounts for which statement received.

Company has accounted for its share in Decline Risk Pool for the 3 months period January 2015 to March 2015 on provisional basis based on management estimate and recorded the net amount if any under claims incurred. Unexpired risks reserve is provided for at 50% of net premium of such inward business.


64

18. Contribution to Environment Relief Fund:

During the year, Company had collected ` 1,443 thousand (Previous year ` 6,123 thousand) towards Environment Relief Fund (ERF) for public liability policies, Out of which an amount of ` 1,392 thousand (Previous year ` 6,062 thousand) transferred to “United India Insurance Company Limited, Environment Fund Ac. count” as per Notification of ERF scheme under the public liability Insurance Act, 1991 as amended, balance amount of ` 51 thousand (Previous year ` 61 thousand) is shown under current liabilities in schedule 13.

19. Contribution to Solatium Fund:

In accordance with the requirements of the IRDAI circular dated March 18, 2003 and based on recommendations made at the General Insurance Council meeting held on February 4, 2005, the Company has provided 0.1% of gross written premium on all motor third party policies (excluding reinsurance premium accepted on motor third party for commercial vehicles) towards contribution to the solatium fund.

20. The Company had in February 2006 obtained Regulatory approval for a health product titled “Reliance Health Care Insurance Policy” which was launched as a retail product in December 2006 under the name “Reliance HealthWise Policy”.

Based on the review of product performance, the Company has effected increase in premium w.e.f. 1st December 2007. IRDAI in May 2008 raised the issue concerning the change in name and pricing of the product. IRDAI has subsequently issued show cause notice to the Company and had imposed a penalty of ` 2,000 thousands on the Company in the year 2009-10. The Company had subsequently remitted the penalty amount of ` 2,000 thousands to IRDAI.

Based on further inquiry in the matter in the current year, it came to notice that excess premium was charged by the company which based on advice from the IRDAI vide its letter dated 16th October, 2014, is to be refunded to the policyholder and the letter directed the Company to take following actions:

1. Open a separate bank account and deposit the now declared excess premium charged during the year 2007-08 and 2008-09.

2. Identify each and every policyholder from whom excess amount has been received and refund the same along with appropriate interest at 2% above the current Bank rate.

3. Issue advertisements in the media to draw the attention of the policyholders regarding refund due to them as a result of the excess collection.

Accordingly the Company has taken the following actions:

1. The Company has reversed premium amounting to ` 196,023 thousand as per the directions of the IRDAI vide letter dated 16th October, 2014 and has transferred equivalent amount of ` 196,023 thousand to a separate bank account towards the base premium refund amount.

2. During the year, the Company has also provided ` 148,050 thousand (including ` 10 thousand paid during the year) towards interest liability upto the period 31st March 2015 on the unpaid cases. Thus a total impact of ` 344,073 thousand including premium reversal has been charged to Profit & Loss Account and respective Revenue Account for the period.

3. The Company has issued several advertisements & taken various other steps to draw attention of various policyholder & to expedite refunds due to them as a result of such excess collection.

21. Effective April 1, 2014, pursuant to and in line with the requirements of Part C of Schedule II of the Companies Act, 2013 during the year ended March 31, 2015; the Company has reviewed its policy of providing for depreciation on its tangible fixed assets and also reassessed their useful lives. On and from April 1, 2014, the straight line method is being used to depreciate all classes of tangible fixed assets. Previously, straight line method was used for deprecating certain office equipment and computer while other tangible fixed assets were depreciated using written down value method.

As a result following changes with respect to provision for depreciation have been effected.


65

a) In respect of assets where remaining useful life as on April 1, 2014 is ‘Nil’, their carrying amounts after retaining the residual value, if any, aggregating to ` 8,178 thousands, has been adjusted against the opening balance of retained earnings as on that date.

b) In respect of other assets, depreciation is provided under the Straight line Method (SlM). Their carrying amount as at April 1, 2014 is depreciated over their useful lives. Pursuant to this, the depreciation for the year ended March 31, 2015 is higher by ` 25,696 thousands. There has also been a change of method of charging depreciation from Written Down Value (WDV) to SlM, in respect of certain assets. The depreciation on such assets has been re-computed retrospectively and the resultant surplus as at April 1, 2014 of ` 5,981 thousands has been credited to the profit of the Company for the year ended March 31, 2015.

c) During the year, the Company had changed the useful life of the intangible assets from 3 years to 4 year based on management estimates. Pursuant to above change in estimates, the profit of the Company is higher by ` 26,477 thousand

22. The MAT credit entitlement amounting to ̀ 34,700 thousand has been recognised as an asset based on the future economic benefits associated with it that will flow to the Company.

23. Leases:

In respect of premises taken on operating lease, the lease agreements are generally mutually renewable/ cancellable by the lessor/lessee except for some premises.

Non Cancellable Operating Lease

The total of future minimum lease rent payable under operating lease for premises & assets for each of the following periods:

(` in ‘000)



Not later than one year 22,967 52,841

Later than one year and not later than five years 17,529 28,110

Later than five years - -

lease payment debited to the Revenue account during the year ̀ 178,064 thousands (Previous year ̀ 231,275 thousands).

24. Sector wise business based on Gross Direct Premium (GDP):

Particulars



GDP(` in ‘000) % of GDP GDP

(` in ‘000) % of GDP

Rural 2,844,865 10.48 2,110,538 8.84

Urban 24,313,456 89.52 21,777,711 91.16

Total 27,158,321 100.00 23,888,249 100.00

Particulars



GDP(` in ‘000) No. of lives GDP

(` in ‘000) No. of lives

Social Sector 19,538 212,087 24,971 296,439


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25. Extent of risk retained and reinsured is set out below (excluding excess of loss and catastrophe reinsurance)

ParticularsFor the Year ended

March 31, 2015For the Year ended

March 31, 2014% of business written % of business written

Risk Retained 71% 78%Risk Reinsured 29% 22%

26. Managerial Remuneration:

(` in ‘000)



Salaries 29,791 27,557

Contribution to Provident Fund and Superannuation 2,524 1,901

Provision for Gratuity and leave Encashment 1,385 1,043

The managerial remuneration is in accordance with the approval accorded by a resolution of the Board of Directors, which has been approved by IRDAI as required under Section 34A of the Insurance Act, 1938.

The managerial remuneration in excess of ` 15,000 thousands for each managerial personnel has been charged to Profit & loss Account.

27. Basis used by Actuary for determining IBNR / IBNER:

The liability for IBNR and IBNER as at 31st March 2015 has been estimated by the Appointed Actuary as per IRDAI circular Ref: 11/IRDA/ACTl/IBNR/2005-06 dated 8th June 2005.

For lines of business other than motor third party, the estimation was carried out using past trends in claims experience as indicated by paid claims chain ladder approach. Bornhuetter-Ferguson method of estimation was also applied for some lines as considered appropriate by the Appointed Actuary.

For motor third party line of business, the estimations were done using ultimate loss ratio method. For liabilities relating to erstwhile motor third party pool and declined risk pool, the ultimate loss ratios as specified in regulatory circulars were referred to in determining the estimates.

28. Till last year, the Company was allocating operating expenses relating to insurance business on net written premium and investment income on gross direct premium in each business class. During the last quarter of the current year, the Company has reviewed and refined the basis of allocation of operating expenses and investment income (refer point no. 22 & 23 of schedule 16) to the shareholders and various revenue accounts. The consequent impact of changes in the basis of allocation on the operating results for revenue accounts and Profit & Loss Account for the year ended March 31, 2015 is as under:

Operating profit of Fire account is lower by ` 155,473 thousand

Operating loss of Marine account is higher by ` 23,844 thousand

Operating loss of Miscellaneous account is lower by ` 276,056 thousand

Allocation to shareholder account in the Profit and loss account is lower by ` 96,738 thousand


67

29. As per IRDAI Circular No 005/IRDA/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of the penalty imposed by various regulators and Government authorities:

(` in ‘000)

SI No. Authority Non-Compliance/Violation Penalty

AwardedPenalty

Paid

Penalty Waived/Reduced

1 Insurance Regulatory and Development Authority Non Compliance in respect of IMTPDRIP for 2012-13.

Nil(500)

Nil(500)

Nil(Nil)

2 Service Tax Authorities None Nil(Nil)

Nil(Nil)

Nil(Nil)

3 Income Tax Authorities None Nil(Nil)

Nil(Nil)

Nil(Nil)

4 Any other Tax Authorities None Nil(Nil)

Nil(Nil)

Nil(Nil)

5 Enforcement Directorate/Adjudicating Authority/Tribunal or any Authority under FEMA

None Nil(Nil)

Nil(Nil)

Nil(Nil)

6 Registrar of Companies/NClT/ClB/Department of Corporate Affairs or any Authority under Companies Act, 1956

None Nil(Nil)

Nil(Nil)

Nil(Nil)

7 Penalty awarded by any Court/Tribunal for any matter including claim settlement but excluding compensation

None Nil(Nil)

Nil(Nil)

Nil(Nil)

8 Securities and Exchange Board of India None Nil(Nil)

Nil(Nil)

Nil(Nil)

9 Competition Commission of India None Nil(Nil)

Nil(Nil)

Nil(Nil)

10 Any other Central/State/local Government/Statutory Authority

None Nil(Nil)

Nil(Nil)

Nil(Nil)

30. As per IRDAI Master Circular IRDA/F&I/CIR/F&A/231/10/2012 dated October 5th, 2012 and Corrigendum on Master Circular IRDA/F&I/CIR/F&A/126/07/2013 dated July 3rd, 2012, below table mention the age-wise analysis of unclaimed amount of the policyholders as on 31st March, 2015:

(` in ‘000)Particulars Total 4-12

Months13-18

Months19-24

Months25-30

Months31-36

MonthsBeyond

36 Monthsa. Claim Settled but not paid to the

policy holders/insured due to any reason except under litigation from the insured/policyholders.

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

b. Any other sum due/payable to the insured/policyholder on completion of the policy terms or otherwise.

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

c. Any excess collection of premium/tax or any other charges which is refundable to the policyholders either as per the terms of the conditions of the policy or as per law or as per the direction of the authority but not refunded so far.

383,592(35,664)

154,888**(5,585)

2,880(2,288)

2,090(2,895)

2,219(4,763)

2,895(2,450)

218,620*(17,683)

Cheques Issued by the company under “a”, “b” or “c” above & cheques have not been encashed by the policyholders/Insured.

362,890(331,663)

68,940(61,019)

20,793(31,085)

17,895(18,428)

21,548(23,114)

17,412(18,353)

216,302(179,664)

*Includes ` 196,009 thousands with respect to refund endorsement passed in Q3 FY 2014-15 on account of Healthwise Policies issued in 2007-08 and 2008-09 (refer note no. 20 above).

**This includes ` 148,040 thousand with respect to interest payable till 31st March, 2015 on Healthwise Policies refund mentioned above.


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31. As per the requirement of Accounting Standard 18 ‘Related Party Disclosures’ as notified by the Companies (Accounting Standard) Rules, 2006, following are the list of related parties with the relationship.

1. list of related parties relationships, where control exists.

Ultimate Holding CompanyReliance Innoventures Private limited (RIPl) (Up to March 26,2015)Holding CompanyReliance Capital limitedSubsidiaries of Holding Company1. Reliance Capital Asset Management limited2. Reliance Equity Advisors (India) limited (ceased w.e.f. July 2, 2014)3. Reliance Money Express limited4. Reliance Home Finance limited5. Reliance Securities limited6. Reliance Spot Exchange Infrastructure limited7. Transasia Composite Insurance Broking limited (ceased w.e.f. June 30, 2014)8. Quant Capital Private Limited9. Reliance Capital Trustee Co. ltd.10. Reliance Wealth Management limited11. Reliance Money Solutions Private limited12. Reliance Commodities limited13. Reliance Money Precious Metals Private limited14. Reliance Capital Pension Fund limited15. Reliance Financial limitedSubsidiaries of Ultimate Holding Company (Up to March 26,2015)16. Reliance Infratel limited17. Reliance Infocomm Infrastructure Private limited18. Big Animation (India) Private limited19. Reliance Communications Infrastructure limited20. Zapak Mobile Games Private limited (Formerly Jump Games Private limited)21. Zapak Digital Entertainment limited22. Reliance Telecom limited23. Big Flicks Private limited24. Reliance Big Broadcasting Pvt ltd25. Reliance Big Entertainment Pvt ltdPerson Having ControlShri Anil D. AmbaniKey managerial personnelRakesh Jain (Executive Director & CEO)

2 Transaction during the period with related parties:

(` in ‘000)S. No.

Name of the Related Party

Relationship Nature of transaction For the Year ended March

31, 2015

For the Year ended March

31, 20141 Reliance Capital ltd. Holding

CompanyPremium Received 28,081 3,874Claim Paid 95 309


69

(` in ‘000)S. No.



31, 2015


31, 2014Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

5,306 13,644

Reimbursement paid for expenses:-Rent, Communication, Electricity, Professional fees, Maintenance Charges

7,665 18,835

Reimbursement paid for IT services 27,374 36,723Management fees Paid 60,000 60,000Interest Accrual on Debenture 100,494 90,479Share Application Money Received 900,000 -Outstanding balance in Customer Deposit (CD) A/c

1,324 1,464

Debtors 564 4582 Reliance Capital Asset

Management ltd.Fellow Subsidiary

Premium Received 10,468 7,680Claim Paid 143 445Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

753 1,418

Outstanding balance in CD A/c 3,374 1,087Debtors 202 73

3 Reliance Equity Advisor (India) ltd.

Fellow Subsidiary

Premium Received 626 478Outstanding balance in CD A/c 15 15

4 Reliance Home Finance ltd.

Fellow Subsidiary

Premium Received 1,714 1418Outstanding balance in CD A/c 158 25

5 Reliance Money Express ltd.

Fellow Subsidiary

Premium Received 1,380 24Foreign Currency Purchased 3,548 1,778Outstanding balance in CD A/c 554 434

6 Reliance Securities ltd. Fellow Subsidiary

Premium Received 4,279 37Claim Paid -- 10Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

1,935 1,770

Brokerage paid for stock exchange trading

91 31

Outstanding balance in CD A/c 8 -Debtors 181 500

7 Reliance Spot Exchange Infrastructure ltd.

Fellow Subsidiary

Outstanding balance in CD A/c 22 22

8 Reliance Innoventures Pvt. ltd. (RIPl)(Up to March 26, 2014)

Ultimate Holding Company

Premium Received3,250 2,645

9 Transasia Composite Insurance Broking limited (ceased w.e.f June 30, 2014)

Fellow Subsidiary

Premium Received 415 -Brokerage 22,220 20,635Creditors - 62

10 Quant Capital Pvt. Ltd. Fellow Subsidiary

Premium Received 37 449


70

(` in ‘000)S. No.



31, 2015


31, 201411 Reliance Capital Trustee

Co. ltd.Fellow Subsidiary

Premium Received 10,674 32,643

12 Reliance Wealth Management limited

Fellow Subsidiary

Premium Received 82 -

Outstanding balance in CD A/c 1 -13 Reliance Big

Broadcasting Private limited

Fellow Subsidiary

Premium Received - 35

Debtors 474 47414 Reliance Infratel limited Fellow

SubsidiaryPremium Received 35 205

15 Reliance Big Entertainment Private limited

Fellow Subsidiary


16 Reliance Communication Infrastructure limited *

Fellow Subsidiary


Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses

391 716

Payments towards Information and Technology Services

27,883 20,445

Reimbursement paid for expenses:-

Rent, Communication, Electricity, Professional fees, Maintenance Charges

520 520

Purchase of Fixed Asset (Tablet) 1,560 2,198Creditors 22 78

17 Reliance Infocomm Infrastructure Private limited

Fellow Subsidiary


Claim Paid 61 -Reimbursement paid for expenses:-

Rent, Communication, Electricity, Professional fees, Maintenance Charges

8,939 2,970

Creditors 923 13,67918 Reliance Money

Solutions Private limitedFellow Subsidiary

Premium Received 180 -Outstanding balance in CD A/c 136 -

19 Big Animation (India) Private limited

Fellow Subsidiary


20 Zapak Mobile Games Private limited (Formerly Jump Games Private limited)

Fellow Subsidiary

Premium Received 135 -

21 Zapak Digital Entertainment limited

Fellow Subsidiary


22 Reliance Commodities limited

Fellow Subsidiary



71

(` in ‘000)S. No.



31, 2015


31, 201423 Reliance Money Precious

Metals Private limitedFellow Subsidiary


24 Reliance Telecom limited Fellow Subsidiary


25 Reliance Financial limited

Fellow Subsidiary


26 Reliance Capital Pension Fund limited

Fellow Subsidiary


27 Reliance BPO Private limited

Fellow Subsidiary

Premium Received 1,875 -

28 Big Flicks Private limited Big Flicks Private limited

Outstanding balance in CD A/c 25 -

29 Shri Anil D. Ambani Person having control


30 Rakesh Jain Key Managerial Personnel

Remuneration 33,700 30,501Premium Received 32 14

* Expenses incurred towards public utilities services such as telephone and electricity charges have not been considered for related party transaction.

* Claim paid to employees against Group Medical Policy have not been considered for related party transaction.

32. Segment Information for the year ended on 31st March, 2015

a. Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment. Revenue and expenses, which relate to enterprise as a whole and are not allocable to a segment on reasonable basis, have been disclosed as “Unallocable”.

b. Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

(` in ‘000)

Particulars

Fire

Marin

e Car

go

Marin

e Hul

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Moto

r

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oyer

Liab

ility

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Segment Revenues:Premium2014-15 483,880 217,006 1,668 13,302,636 72,536 46,748 152,084 990 260,557 4,232,094 414,425 19,184,6242013-14 410,893 191,073 2,023 12,582,845 78,075 25,457 154,978 1,291 189,923 3,583,591 177,432 17,397,581Investment Income2014-15 85,461 31,554 143 3,601,314 7,551 7,206 32,078 235 37,851 222,705 54,051 4,080,1492013-14 167,446 36,627 1,428 2,499,094 7,519 25,897 68,061 2,781 26,236 442,310 110,076 3,387,475Misc. Income2014-15 (21) (6) 63 404 - (113) 6,104 (21) 111 - 7,984 14,5052013-14 - - - - - - - - - - (8,720) (8,720)Total Segment Revenues


72

(` in ‘000)

Particulars

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2014-15 569,320 248,554 1,874 16,904,354 80,087 53,841 190,266 1,204 298,519 4,454,799 476,460 232,79,2782013-14 578,339 227,700 3,451 1,5081,939 85,594 51,354 223,039 4,072 216,159 4,025,901 278,788 20,776,336Segment Expenses:Claims2014-15 364,984 185,969 86 12,128,887 32,032 22,399 145,469 656 309,303 4,519,773 333,484 18,043,0422013-14 365,492 180,092 (312) 11,482,857 28,919 16,665 174,118 2,064 162,093 3,529,917 94,315 16,036,220Commission2014-15 (120,356) 21,315 (6,180) 52,228 6,613 928 (82,638) (2,727) 21,640 95,611 (193,638) (207,204)2013-14 (133,628) 25,853 (1,279) 648,204 5,820 (4,440) (88,315) (1,713) 5,742 851 (60,732) 396,363Premium Deficiency2014-15 - - - - - - - - - - - -2013-14 - (20,900) - - - - - - - - - (20,900)Management Expenses2014-15 166,514 63,103 426 3,638,149 20,249 11,789 46,461 240 96,606 1,153,123 180,086 5,376,7462013-14 117,596 53,394 261 3,382,530 18,228 9,515 36,732 166 48,921 870,330 60,657 4,598,337Total Segment Expenses2014-15 411,142 270,387 (5,668) 15,819,264 58,894 35,116 109,292 (1,831) 427,549 5,768,507 319,932 23,212,5842013-14 349,460 238,439 (1,330) 15,513,597 52,967 21,740 122,535 517 216,756 4,401,099 94,240 21,010,020Net Profit/(Loss)2014-15 158,178 (21,833) 7,542 1,085,090 21,193 18,725 80,974 3,035 (129,030) (1,313708) 156,528 66,6942013-14 228,879 (10,739) 4781 (431,658) 32,627 29,614 100,504 3,555 (597) (375,198) 184,548 (233,684)Unallocated itemsInvestment Income2014-15 957,0722013-14 874,086Provision/(Other Income)2014-15 179,8662013-14 (25,235)Expenses2014-15 30,0002013-14 24,810Net Profit before tax2014-15 813,9002013-14 640,827Income tax2014-15 34,7002013-14 -MAT Credit2014-15 (34,700)2013-14 -Net Profit after tax2014-15 813,9002013-14 640,827Assets:Segment Assets


73

(` in ‘000)

Particulars

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2014-15 -2013-14 -Unallocated Assets2014-15 56,628,5812013-14 48,878,896Total Assets2014-15 56,628,5812013-14 48,878,896Liabilities:Segment liabilities2014-15 891,508 327,854 1,048 35,963,295 73,935 80,658 329,351 2,362 464,088 2,222,453 608,876 40,965,4282013-14 740,555 275,262 1,672 32,762,784 70,606 60,722 283,432 2,116 257,513 2,037,727 449,797 36,935,066Unallocated liabilities2014-15 5,465,9392013-14 3,460,043Shareholders Fund2014-15 10,197,2142013-14 8,483,787Total2014-15 56,628,5812013-14 48,878,896

Notes:

a. Segment Reporting is made as per the modification prescribed by the Insurance Regulatory and Development Authority Regulations wherein details are to be given for fire, marine cargo, marine hull and eight classes of miscellaneous insurance

b. Since the company’s entire business is conducted within India, there are no reportable geographical segments for the year.

33. Summary of Financial Results:

(` in ‘000)Particulars FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11

Operating ResultsGross Direct Premiums 27,158,321 23,888,249 20,100,052 17,125,473 16,554,261Net Earned Premium 19,184,624 17,397,581 13,598,151 11,630,872 12,938,039Income From Investment 4,080,149 3,387,475 1,931,993 1,427,425 1,091,724Other Income 14,469 (8,720) (2,110) 4,829 1,045Total Income 23,279,242 20,776,336 15,528,034 13,063,126 14,030,808Commission (Net) including Brokerage (207,204) 396,363 449,007 412,724 (225,156)Operating Expenses 5,376,745 4,598,337 3,895,361 3,833,566 4,468,708Net Incurred Claims 18,043,042 16,036,220 12,607,931 12,658,686 13,313,814Change in unexpired risk reserve (100,941) 1,232,033 1,809,743 208,497 (1,390,034)Operating Profit/(Loss) 66,695 (233,684) (1,442,201) (3,844,814) (3,526,558)Non Operating ResultsTotal Income under Shareholder’s Account 1,001,226 932,389 828,948 647,571 573,841Profit/(Loss) before tax 813,901 640,827 (927,692) (3,415,993) (3,097,593)Provision for tax 34,700 - - 16,000 18,424Profit/(Loss) after tax 813,901 640,827 (927,692) (3,431,993) (3,116,017)


74

(` in ‘000)Particulars FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11

MiscellaneousPolicyholders’ AccountTotal Funds 40,286,049 29,943,368 25,061,691 20,180,364 15,544,875Total Investments 40,286,049 29,943,368 25,061,691 20,180,364 15,544,875Yield on Investments 10.52% 9.26% 8.92% 8.65% 7.35%Shareholders’ AccountTotal Funds 10,197,214 8,483,787 7,783,003 7,138,051 6,218,547Total Investments 10,197,214 8,483,787 7,783,003 7,138,051 6,218,547Yield on Investments 10.52% 9.26% 8.92% 8.65% 7.35%Paid up Equity Capital 1,227,750 1,227,750 1,227,750 1,211,933 1,166,729Net Worth 10,197,214 8,483,787 7,783,003 7,138,051 6,218,547Total Assets 56,628,581 48,878,896 43,468,654 30,749,895 25,416,341Yield on total Investments 10.52% 9.26% 8.92% 8.65% 7.35%Earnings Per Share (`) 6.63 5.22 (7.61) (29.24) (26.80Book Value Per Share (`) 83.06 69.10 63.82 59.52 53.27Total Dividend - - - - -Dividend Per Share (`) - - - - -

34. Financial Ratios:

Particulars Financial Year

Gross Direct Premium Growth

Rate

Net Retention Ratio

Net Commission Ratio

Underwriting Balance Ratio

(Gross direct premium for the

current year divided by Gross direct premium for the previous year)

(Net premium divided by

gross written premium)

(Gross commission paid net of

reinsurance commission divided

by net premium)

(Underwriting profit divided

by net premium)

Fire 2014-15 6% 26% -21% 0.152013-14 6% 23% -28% 0.15

Marine Cargo 2014-15 7% 55% 9% -0.252013-14 40% 55% 12% 0.36

Marine Hull 2014-15 192% 2% -600% 4.402013-14 131% 7% -121% 1.66

Motor 2014-15 14% 80% 0.4% -0.192013-14 12% 94% 5% 0.22

Employer Liability 2014-15 0% 93% 9% 0.192013-14 4% 92% 8% 0.32

Public Liability 2014-15 -5% 16% 2% 0.252013-14 -4% 14% -12% 0.15

Engineering 2014-15 -7% 21% -52% 0.282013-14 -15% 19% -59% 0.21

Aviation 2014-15 5% 3% -331% 2.852013-14 30% 2% -254% 0.60

Personal Accident 2014-15 31% 91% 6% -0.642013-14 25% 70% 3% -0.15

Health 2014-15 2% 87% 2% -0.362013-14 59% 75% 0% 0.23

Other Miscellaneous 2014-15 85% 17% -52% 0.232013-14 46% 21% -24% 0.49

Total 2014-15 14% 69% -1% -0.212013-14 19% 76% 2% -0.20


75

35. Other Ratios:

Ratio Basis For the Year ended March 31, 2015


Gross Direct Premium to Net worth Ratio

Gross direct premium for current year divided by paid up capital & free reserve

2.66 2.82

Growth Rate of Net worth

Change in Net Worth during the period divided by net worth as at previous balance sheet date

20% 9%

Expenses of Management to Gross Direct Premium

Expenses of Management(operating expenses related to insurance business plus direct commission paid divided by gross direct premium)

24% 24%

Expenses of Management to Net written premium ratio

Expenses of Management(operating expenses related to insurance business plus direct commission paid divided by Net written premium)

34% 31%

Net Incurred Claims to Net Earned Premium

Net Incurred Claims divided by Net Earned Premium

94% 92%

Combined Ratio Net Incurred Claims divided by Net Earned Premium plus expenses of management (including net commission) divided by Net written premium

121% 119%

Technical Reserves to Net Premium Ratio

Reserve for un-expired risks plus premium deficiency reserve plus reserve for outstanding claims(including IBNR and IBNER) divided by net premium

2.13 2.12

Operating Profit Ratio Underwriting profit/loss divided by net premium

0.3% 0%

liquid Assets to liabilities Ratio (times)

liquid assets(short term investment plus short term loan plus cash and bank balances of the insurer) divided by policyholders liabilities(claims outstanding plus reserve for unexpired risk and premium deficiency)

0.31 0.24

Net Earnings Ratio Profit after tax divided by net premium 4% 3%Return on net worth ratio

Profit after tax divided by net worth 8% 8%

Available Solvency Margin (ASM) to Required Solvency Margin (RSM) ratio

Ratio of Available Solvency Margin (ASM) at the end of the Quarter to the Required Solvency Margin (RSM)

1.53 1.51

NPA Ratio - -

Note: The above ratios have been calculated as per IRDAI Master Circular IRDA/F&I/CIR/F&A/231/10/2012 dated October 5th, 2012 and Corrigendum on Master Circular IRDA/F&I/CIR/F&A/126/07/2013 dated July 3rd, 2012

36. Earnings per share information:



Profit/(Loss) available to equity shareholders (` in ‘000) 813,901 640,827Weighted Average number of equity shares outstanding during the year 122,774,960 122,774,960Basic earning per share (`) 6.63 5.22Diluted earning per share (`)* 6.59 5.22

*Considering the diluitive potential of the share application money at the proposed value of ` 200 per share


76

37. Forward contracts entered and outstanding as on March 31,2015 is ` Nil (Previous year - ` 4,692 thousand)

38. Prior year figures have been reclassified, wherever necessary, to conform to current year’s presentation.

For the Year ended March 31, 2014 Regrouped in For the Year ended March 31, 2015 ` In ‘000Schedule Old grouping Schedule New grouping

Schedule- 4 Training & Recruitment Expenses Schedule- 4 Advertisement & Publicity 25,201

We have also reclassified and regroup following product code in reportable class as compared to previous year.

Product Regrouped in For the Year ended March 31, 2015


JPA Individual Personal Accident Other MiscJPA Group Personal Accident Other MiscReliance Home loan Protect Policy Health Other MiscReliance Personal loan Care Insurance Policy Health Other MiscReliance Auto loan Care Insurance Policy Health Other Misc

For and on behalf of the Board of DirectorsRajendra Chitale H. AnsariDirector (DIN No.: 0015986) Director (DIN No.: 2155529)

Chhaya Virani Soumen GhoshDirector (DIN No.: 6953556) Director (DIN No.: 1262099)

Rakesh Jain Hemant K. JainExecutive Director & CEO (DIN No.: 3645324)


Mohan KhandekarCompany Secretary (Membership No. A8515)



1

BOARD OF DIRECTORSMr. Rajendra P. Chitale Director

Mr. D. Sengupta Director




Mr. S. P.Talwar Director (ceased to be a Director w.e.f. 09th August, 2013)



BANKERSHDFC Bank Limited

ICICI Bank Limited

HSBC

Citi Bank

SBI

IDBI Bank

Yes Bank


M/s Pathak H.D. & Associates




CORPORATE OFFICE570, Rectifi er House,

Naigaum Cross Road,



Tel. : +91 - 22 - 30479600

Fax : +91 - 22 - 30479650


LONDON REPRESENTATIVE OFFICEC/o Reliance Globalcom Limited,



Middlesex - UB7 OJE,

Tel.: 020 82824665

14th Annual Report

INDEX Page No.(s)


Directors' Report 2



Auditors' Report 20

Revenue Accounts 23

Profi t & Loss Account 26

Balance Sheet 27

Schedules annexed to Balance Sheet, Revenue Account and Profi t & Loss Account

28


Accounting policies and Notes to Accounts 40


2


Your Directors present the Fourteenth Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2014.

Financial Results (` in crore)

Particulars Year ended 31st March, 2014 Year ended 31st March, 2013Gross Direct Premium 2,388.83 2,010.01Insurance Profi t/(Loss) (23.37) (144.22)Investment Income on Shareholders fund 87.41 80.02Profi t/(Loss) before Tax 64.08 (92.77)Income tax- earlier year tax - -Provision for Deferred Tax - -Profi t/(Loss) after Tax 64.08 (92.77)

DividendYour Directors do not recommend any dividend for the year ended 31st March, 2014.

OperationsYour Company in the current year has underwritten Gross Direct Premium of ` 2,388.83 crore as against ` 2,010.01 crore in the previous year registering an increase by 19%. The main focus during the year was again to improve the profi tability of the Company.

The income from investments for the year under review is ` 426.16 crore as against ` 273.22 crore in the previous year. The profi t before tax earned during the Financial Year 2013-14 is ` 64.08 crore as against loss of ` 92.77 crore during the previous year.

During the year, the Company has undertaken various initiatives to improve its performance. The key initiatives implemented are reduction in usage of manual covernotes, recruitment of agents, implementation of in house health claims management for retail health claims, revision in the premium pricing based on analytics, signifi cant increase in commercial line portfolio etc. All these initiatives will also help the Company in long run.

Your Company had issued 36.75 Lac policies during the year as compared to 28.96 Lac in the previous year.

Industry DevelopmentsAs per the fi gures released by Insurance Regulatory and Development Authority (IRDA), the Gross Premium Underwritten by the industry for the Financial Year ended 31st March, 2014 was ` 77,538.25 crore as against ` 69,088.69 crore during the previous year showing growth rate of 12.23%.

As a part of efforts to improve services to policyholders and insurance penetration, IRDA has taken a pioneering initiative by launching Insurance Repository System. It will help insurers to bring effi ciency in dealing with the requirements of the policyholders and at the same time cut down their costs.

In order to increase awareness of General Insurance Products across India, the General Insurance Industry launched a nationwide awareness campaign through Radio, TV and Print media. This campaign had greater impact on rural areas and achieved its objective of having a positive impact on the minds of the people. Insurance Companies are also advised to carry on insurance awareness amongst the people which shall increase the penetration of insurance in the country.

IRDA had advised all the insurers to display information about any unclaimed amount of policyholders on their respective website to bring better governance, transparency and smooth transfer of the amount due to the policyholders.

In order to enhance and develop bancassurance business, IRDA has facilitated banks to sell insurance policies.

Online selling of insurance policies to discerning customers, who access Internet has gained momentum. Typically motor, travel and health policies are being sold more online. The interplay of technology and telecom will be a major factor determining the growth of the industry in future.

The premium rates in case of Motor Third Party have been increased. The increased premium rates were applicable from 1st April, 2014. Increase in the premium has been done to reduce the losses suffered by the Insurance Companies.


3

Corporate GovernanceIRDA has issued comprehensive guidelines on Corporate Governance for adoption of the Insurance Companies. These guidelines are effective from 1st April, 2010. The objective of these guidelines is to ensure that the structure, responsibilities and functions of the Board of Directors and senior management of the Company fully recognize the expectations of all stakeholders as well as those of the regulator. Your Company’s philosophy on Corporate Governance envisages the attainment of highest levels of transparency, accountability and equity, in all facets of its operations and in all interactions with its stakeholders, including shareholders, employees, the Government and the society. A Corporate Governance Report is presented in a separate section which forms part of the Annual Report. As required under the Corporate Governance Guidelines, a certifi cate from the Compliance Offi cer of the Company certifying that the Company has complied with the Corporate Governance Guidelines, also forms part of the Annual Report.

ReinsuranceYour Company has a well structured Reinsurance Program supported by various leading reinsurers (with strong credit ratings) spread across the globe, in accordance with the guidelines laid down by Insurance Regulatory and Development Authority. The Reinsurance Programme has been renewed and placed completely with reinsurers with approved credit rating. The Reinsurance Program has an optimum mix of proportional treaties to enhance the Company’s automatic underwriting capacity and non proportional treaties to protect the Company’s net retentions.

Based on the Company’s net worth, business plans, portfolio mix and detailed analysis of Company’s historical data retention levels have been optimally fi xed to ensure a healthy solvency margin, stability in fi nancial results, minimum volatility in earnings and generate value to stakeholders. Your Company would also like to emphasize on the Company’s preparedness for catastrophic events by regularly monitoring of exposures, assessing accumulations through various statistical CAT modeling tools and having adequate protection in place.

Information TechnologyIn this Financial Year, Information Technology delivered on following areas:

Strengthening health claims service – Health Claims System (HCS) was launched to facilitate centralized health claims processing for entire Retail policies and a few Group policies. Key functions in the software include setting up benefi ts confi guration for policies, managing network of health care providers, smooth process fl ow for cashless and reimbursement claims and an effi cient communications module to intimate status on claims and various MIS.

Operations Hub-n-spoke – Policy processing operations for many branches was centralized into an Operation’s Hub using scanning, indexing and workfl ow software. This resulted in higher employer productivity while maintaining strict TAT for policy delivery to customers.

Focus on Agent Portal – More products and self-service options were added to the Agent Portal. This resulted in maximum retail policy transactions moving out from branches to agents.

Mobile site – An easy to use mobile site was developed as many transactions are originating from internet enabled mobile phones. Customers can easily locate information on their policies and claims and search the Company’s network of branches and service providers. A one-click, quick renewal process based on QR code embedded in Renewal Notices was launched.

Government Health schemes like RSBY was aided with new IT solutions for managing faster enrollments and effi cient handling of large volumes of claims. Mobile apps were introduced for fi eld applications.

Lean IT infrastructure – Emails and messaging were moved to public cloud services from Microsoft. Old desktop assets were completely replaced with VDI (virtualized) devices. Critical offi ce locations have been provided with alternate network connectivity resulting in better system uptimes.

PersonnelIt is the Company’s constant Endeavour to make offi ce a great place to work and keep the employees happy and satisfi ed. To augment employee's personal growth, the Company has focused upon effective and appropriate training programs and encouraged employees to continuously pursue their learning curve. The Company also believes in promoting internal talent by giving suitable career moves through role enhancement & job rotation. Technology is the key to effectiveness & effi ciency. Through automation & various quality projects it is the Company’s vision to achieve this goal and delight its customers at all touch points. Parallelly, in today's hectic times Company understands the importance of fun @ work through various engagement initiatives. Healthy employees make healthy organization. In partnership with the Company’s wellness team, numerous on-site health programs have been carried out across the offi ces. Being a good corporate citizen is an integral part of our core values. These go hand-in-hand with care for the environment and improvement of quality of life for the society at large and strive to take it forward through several social initiatives:


4

1. Employee Referral It is always fun to be with friends, and when the employees get a chance of getting friends on board & share the workplace,

the pleasure doubles!! More than 75% of the hiring in the FY 2013-14 has been done through Employee Referral.2. LEAP Policy With an aim for motivate self directed learning, the Company launched the Learn Earn And Perform (LEAP) program.

The objective of this program is to encourage employees to undertake certifi cation examinations conducted by Insurance Institute of India (III) and give them rewards on successful completion. Since the inception of this program, the Company has taken 380 LEAPS towards self directed learning. On Similar lines in order to encourage the employees from Actuarial team to clear papers, the Company has introduced a Policy for the employees in the Actuarial Department. As per the policy, employees clearing papers are given incentives along with study leave and their entire fee is borne by the Company.

3. Grow Trees Celebrating employees birthday with an overwhelming feeling of giving back to mother nature! As part of the employee

engagement initiatives and Corporate Social Responsibility the Company has tied up with Grow Trees who is planting trees. They have taken up various projects across the country to plant trees. So far, Grow trees have planted over 2,500 trees for the Company. It is a unique gift for the employees that will live for several decades and signifi cantly benefi t the planet and Company is proud to be a part of this project.

4. Wellness Workplace health and wellness programs should be a part of the overall Company strategy for a healthy workplace. Health

and safety legislation and other workplace policies or programs can provide a basis for a workplace health (or health promotion) program. In the last 2 years, Company conducted almost 50 on-site wellness activities like health talks, health camps, health campaigns.

One of our unique health camps was Slimpossible, the weight loss program for encouraging employees to be more health conscious and move towards a healthy lifestyle. More than 50% of the employees were ready to take up this thinspiring challenge.

5. Library Services Bringing a paradigm shift to the concept of corporate libraries, the Company has launched online library services in

partnership with Kwench. It was launched on pilot basis in Mumbai, wherein employees could avail library services free of cost, paving a way for employees to be more aware and quench their knowledge thirst. Since the Company has received good response post the launch, the said service shall now be extended to more cities this year.

6. Corporate Sports In the Company’s endeavor to promote team spirit, fi tness and fun through healthy competition the Company encouraged

employees to participate on numerous sport activities. Reliance Football League and Reliance Champions Cricket League are two yearly activities where employees across LOB’s come together and form a team. The league matches are conducted at zonal level and the winners across zones come to Mumbai to play the fi nals. This event creates team bonding and is good platform to come together and indulge in a healthy competition. Also, marathon runs being organized in different cities has seen good participation from RGICL.

InvestmentsThe Investment portfolio of the company as on 31st March, 2014 is ` 3842.02 crore (` 3257.80 crore). The market value of the same is ` 3770.53 crore (` 3271.24 crore). The asset allocation among Debt and Equity is 98.38% (97.93%) and 1.62% (2.07%) respectively. The modifi ed duration of the Debt portfolio stands at 3.51 years (3.47 years). The Debt portfolio comprised 36.38% (31.45%) in Sovereign Bonds – approved securities, 32.78% (35.37%) in AAA, 12.54% (8.14%) in AA+, 7.16% (4.44%) in AA/AA-/A+ rated and the remaining 11.13% (20.59%) in money market instruments and Fixed Deposits.The income for the whole year was at ̀ 337.03 crore (` 272.32 crore). The income from overall portfolio translated into a return of 9.26% from average total assets of ` 3570.18 crore debt and ` 70.77 crore equity. The MTM gain in debt has gone to a negative ` 72.18 crore, an improvement from negative ` 87.71 crore a quarter earlier but worse from positive ` 18.75 crore a year earlier. However, the MTM in equity moved to a surplus of ` 0.70 crore from a negative 1.12 crore a quarter earlier and negative ` 5.30 crore a year earlier.

Claims handlingMotor: 1. Operating Effi ciency:

(a) The Motor Claims team had focused more on improving the provider network and the strength at the end of March 2014 stands at 2,025 spread over 313 cities.


5

(b) The improved network has helped to increase cashless claims settlement which stands at 73% in Private Car category as on March 2014.

(c) The Company has ensured a good network of privilege garages across products providing quality repairs and value added services.

(d) 99% of the claims settlement is being done on NEFT mode.(e) 53% of claim intimations is done through website allowing Cashless network garages to facilitate a faster claim intimation.(f) Claim status available through SMS.

2. Team empowerment: The team had embarked on various initiatives towards empowering the claim managers to ensure faster settlement of

claims.(a) Specialised Motor Claims Technical Training- 'Aarush- First ray towards Success' has been initiated. The training

includes classroom and practical sessions on collision theory and repair technology with imminent external faculty also being a part.

(b) Maintenance of parts repository of various makes and models to help claim managers assess loss better.(c) Professional Pointers carrying updates on latest in repair technology and(d) Sharing of case studies featuring interesting aspects of motor claims management.

Health:FY 2013-14 has been one of considerable change in the space of health care service delivery to our valued customers leaving behind remarkable milestone achievements in the entire insurance industry.The service architecture is strengthened by means of:� Launch of Robust and dynamic claims application system (HCS) for claims processing of Corporate and Retail Health

policies.� Largest cashless Hospital network in the industry- 4200+ hospitals, 150+ Diagnostic Centers, 2500+ Pharmacies, 400+

Lifestyle partners.� Claims application for RSBY upgraded towards universal module with an ability to service complex scenarios in Govt.

healthcare space including Critical Illness.� Dedicated Customer Relationship team focused on Customer Experience Enrichment (CEE).� Customized wellness programmes – focusing on Disease Management a step towards "Preventive Health Care" of

customers.Our goal remains constant to keep customers as focal point for all operations. A few initiatives that have aided….� A successful completion of Six Sigma Project towards increase in NEFT, optimization in cashless utilization, optimization of

claim settlement TAT.� Introduction of Corporate CRM Team for smooth and effi cient claim servicing of Corporate clients.� Launch of Preventive Care and Health gadget as a part of Wellness offering.� Performance benchmarking of TPAs initiated to optimize service standards towards end customers.� CRM Tool integration for Hospital correspondences - offering TAT effi ciency and tracking of communication with hospitals.� Health Education via Knowledge sharing mailers across 150 common health and wellness topics with dedicated web page.� Launch of R Healthbeat – a quarterly wellness magazine.� Launch of "EVIDENS", Android based application - Integrated mobility solution for fi eld investigation.� Stakeholders Updates via Monthly updates and Newsletters. For E.g.; Issue of CHIAK newsletter – a monthly status update

of Kerala RSBY policy.� Introduction of Enrolment Manager Software to manage the Enrolment in Govt. Health Policies; with updated features

enabling beat planning and comprehensive data and MIS management.Commercial:The Company managed about 5400 Commercial line claims in FY 2013-14 through a dedicated team of trained & experienced professionals and a panel of surveyors carefully selected based on the skill set, experience and service quality.

The focus is on customer delight by promptly attending to all the claims. Complaints, if any, are promptly attended to with an appropriate escalation matrix.


6

Process & Certifi cation

The Company has been successfully re-certifi ed for a second time to ISO 9001:2008 standard for its conformance to the Quality Management Systems requirements. The certifi cate has been awarded by DNV (Det Norske Veritas), one of the leading ISO certifying bodies. The initial certifi cation had been achieved in July 2007. The certifi cation is valid until July 2016.

Awards and Recognition

The Company has won 1st prize in RCAP's Best Lean Six Sigma Award contest in Category A - Service Quality Improvement for Customers / Distributors held in February 2013. This is the 3rd consecutive year for winning an award in this category. The Company has also won RCAP's Company level award for most "Innovative Idea" in H1.

The Company was also nominated fi nalist at SCMHRD Lean Six Sigma Excellence Awards Contest. The Company has won two awards in HealthCare Leadership Awards category by Stars of the Industry Award 2014 – by CMO Asia for Innovation in Quality of Service Delivery and Product Innovations. The Company has also won the prestigious D L Shah National Quality Award by Quality Council of India, Government of India in the Financial Service Category.

The Company is the only Company from India nominated for the award “Insurance Provider of the Year” by Continuity Insurance & Risk (CIR), UK. This was in recognition of best risk management services conducted by RGICL. CIR is the leading Risk Management Journal from United Kingdom.

Customer Service and Grievances Redressal Cell

IRDA had introduced Integrated Grievance Management System (IGMS), an online portal for the customers to register complaints against Insurance Companies and made it mandatory for the Insurance Companies to integrate their complaints management system for real time fl ow of complaints from one system to another. Since then our complaints management system, Integrated Customer Engagement (ICE) is also linked to IGMS on real time basis.

To capture the customers experience the Company has built feedback mechanism on the portal. This information is shared with the vertical heads for analysis and corrective action.

Towards Customer Grievance Handling for Financial Year 2013-14, the number of customer complaints has come down from 7,451 to 2,623 registering a 65% drop. All the causes of complaints witnessed decrease in the numbers in FY 2013-14 as compared to FY 2012-13.

Some of the new initiatives undertaken this year to enhance customer service are:

� Revamped IVR with myriad of service options for the customer

� Shortened the contact center number from twelve digit to eight digit

� Dedicated contact center based at Bangalore for our customer from southern India to assist them in local languages

� Points of precaution in the form of Do's and Don’ts for customers displayed at our operating offi ces

� Self services section on website for customers to view policy details, create service request, set reminders for policy renewals, view policy dispatch details etc

� Online request facility for vehicle inspection

� Launched RGICL mobile application (same features as website)

Fixed deposit

The Company has not accepted any public deposit during the year.

Insurance Regulatory and Development Authority (IRDA) Registration

The certifi cate of Registration from the Insurance Regulatory and Development Authority was renewed for the year 2014-15. The Company has received certifi cate Registration number 103 dated 25th February, 2014 from IRDA.

Directors

Mr. Soumen Ghosh, Director of the Company retires by rotation and being eligible offers himself for re-appointment at the ensuing Annual General Meeting. During the year Mr. S. P. Talwar ceased to be Director of the Company w.e.f. 09.08.2013 due to sad demise. Board places on record its deep sense of appreciation for the valuable services rendered by Mr. S. P. Talwar during his tenure as Director.

Directors’ Responsibility Statement

Pursuant to the Directors’ Responsibility Statement as required under Section 217(2AA) of the Companies Act, 1956 and Insurance Regulatory and Development Authority Act, 1999, it is hereby confi rmed that:


7

1. in the preparation of the accounts for the Financial Year ended 31st March, 2014 the applicable accounting standards have been followed along with proper explanation relating to material departures;

2. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 Profi t of the Company for the year under review;

3. the Directors have taken proper and suffi cient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 and Insurance Act, 1938 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the Directors have prepared the accounts for the Financial Year ended 31st March, 2014 on a ‘Going Concern’ basis.5. an internal audit system commensurate with the size and nature of the business exists and is operating effectively. Auditors and Auditors’ ReportM/s. Pathak H.D. & Associates, Chartered Accountants, and M/s. Singhi & Company, Chartered Accountants, Joint Statutory Auditors of the Company hold offi ce until the conclusion of the ensuing Annual General Meeting. The Company has received letters from M/s. Pathak H.D. & Associates and Singhi & Company, Chartered Accountants, to the effect that their appointment, if made, would be in accordance with the provisions of Section 139 and 141 of the Companies Act, 2013. The notes to the accounts referred to in the Auditors’ Report are self-explanatory and, therefore do not call for any comments.Particulars of EmployeesAs required by the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (particular of Employees) Rules, 1975 as amended up to date, the name and other particulars of the employees is set out in the annexure to the Directors Report.Conservation of Energy, Technology Absorption and Foreign Exchange earnings and OutgoParticulars required to be furnished by the Companies (Disclosure of particulars in the report of the Board of Directors) Rules, 1988 are as follows:-1. Part A and B pertaining to conservation of energy and technology absorption are not applicable to the Company.

2. Foreign exchange infl ow and outfl ow : (` in crore)

Total Infl ow : On Reinsurance 8.29On Claims NilOn Premium 42.78On Others Nil

Total Outfl ow : On Reinsurance 49.62On Claims 4.28On Premium NilOn Others 0.10

Acknowledgement

Your Directors wish to place on record their immense appreciation for the assistance and co-operation received from Insurance Regulatory and Development Authority, Reserve Bank of India and other statutory authorities.

Your Directors appreciate the support received from policyholders and intermediaries and reinsurers.



Rajendra ChitaleChairman

Place : MumbaiDate : April 30, 2014


8

Report on Corporate Governance

1. Philosophy on Corporate Governance

The Company has always maintained the highest standards of Corporate Governance. The principles which are set in corporate governance policy are disclosure, fairness, independence, transparency, accountability, responsibility, fairness, social responsibility, compliances and ethical standards. The Company strives to achieve its mission in the light of these corporate governance principles. These principles are not just words but are strictly followed in its true and strict sense in day to day working of Company. The Company has also framed a strong whistle blowing mechanism where employees without hesitation can raise concern or report a possible breach of law or regulation with appropriate measures to protect against retaliation against reporting employees. Timely disclosure on all material matters regarding the Company, including the fi nancial situation, performance, ownership and governance arrangements, is part of a corporate governance framework. It also includes Compliance with legal and regulatory requirements. The presence of an active group of Independent Directors on the Board contributes a great deal towards ensuring confi dence of the customers and stakeholders. The Company has laid emphasis on the cardinal values of fairness, transparency and accountability for performance at all levels, thereby enhancing the shareholders’ value and protecting the interest of the stakeholders.





4. To promote the interest of all stakeholders including customers, shareholders, employees, lenders, vendors & the community.






The composition of Board of Directors of the company is as follows;

1. Mr. D. Sengupta


3. Mr. H. Ansari

4. Mr. Soumen Ghosh


Mr. S. P. Talwar, ceased to be a Director of the Company w.e.f. 09.08.2013. Out of the fi ve Directors, three Directors are Independent Directors. As per the Corporate Governance guidelines issued by IRDA, your Company has constituted the Mandatory Committees viz. Audit Committee, Investment Committee, Policyholders Protection Committee & Risk Management Committee.

3. Audit Committee

Your Company has constituted an Audit Committee pursuant to the provisions of Section 292A of the Companies Act, 1956 & IRDA Corporate Governance regulations. The Audit Committee comprises of Mr. D. Sengupta, Director, Mr. Rajendra P. Chitale, Director and Mr. Soumen Ghosh, Director. Mr. S. P. Talwar, ceased to be a Member of the Committee w.e.f. 09.08.2013. Audit Committee inter alia advises the management on the areas where systems, process, internal audit, risk management can be improved. The minutes of the meeting of the Audit Committee are placed before the Board for review. Audit Committee recommends to the Board, appointment and remuneration of Auditors of the Company. Audit Committee had discussions with Statutory Auditors before the audit commences about the nature & scope of audit as well as post audit discussions for addressing areas of concern.


9


Your Company has constituted an Investment Committee pursuant to the requirement of Corporate Governance Guidelines of IRDA. Presently, the Committee consists of Mr. H. Ansari, Mr. Soumen Ghosh, Mr. Rakesh Jain, Mr. Hemant Jain, Mr. K. Ramkumar & Ms. Kirti Kothari. Mr. S. P. Talwar ceased to be a Member of the Committee w.e.f. 09.08.2013. The Investment Committee decides on the Investment Policy of the Company and reviews the Investment decisions taken by the Company. Reports on Investment performance and Investment Portfolio is also placed before the Board for review.


Your Company has also constituted Policyholders Protection Committee as required under Corporate Governance Guidelines of IRDA. At present the Committee consists of Mr. H. Ansari, Mr. Soumen Ghosh, Mr. Rakesh Jain, & Mr. Mukul Kishore. Mr. S. P. Talwar ceased to be a Member of the Committee w.e.f. 09.08.2013. The Committee reviews and monitors customer grievances on regular basis. Report of the Policyholders Protection Committee is also placed before the Board of Directors for review. The Company has Grievance Redressal Policy which is approved by the Board of Directors.


Your Company has also constituted Risk Management Committee for monitoring all the risks across the various lines of business of the Company. Presently, the Committee consists of Mr. D. Sengupta, Mr. Soumen Ghosh, Mr. Rakesh Jain, Mr. Mukul Kishore, Mr. Mohan Khandekar, Mr. Hemant Jain, Mr. K. Ramkumar & Mr. Sudarshanam Sundararajan.

In addition to the above, the Company has also constituted Non Mandatory Committees viz. Committee of Executives (Investment), Asset Liability Management Committee, Nomination Committee, Ethics Committee.

As required under clause 5.4 of the Corporate Governance guidelines dated 5.8.2009, details of number of meetings held of the Board of Directors & Committees in the Financial Year & details of composition of the Board & Committees and meetings attended by the Directors etc. are enclosed as Annexure I & II forming part of this report.

7. Compliance Offi cer

Mr. Mohan Khandekar, Company Secretary, is the Compliance Offi cer of the Company for complying with the requirements of IRDA regulations.

Certifi cation for compliance of the Corporate Governance Guidelines


Mohan KhandekarCompany Secretary


10

ANNEXURE I FORMING PART OF CORPORATE GOVERNANCE REPORTDETAILS OF NUMBER OF MEETINGS HELD, ATTENDED, COMPENSATION PAID ETC. DURING FINANCIAL YEAR 2013-14

BOARD MEETING

Name of the Director Meeting held during FY 2013-14

Meetings attended Compensation paid Gross (Sitting fees)

Mr. D. Sengupta 4 4 80000

Mr. Rajendra Chitale 4 4 80000

Mr. H. Ansari 4 4 80000



Mr. S. P. Talwar (ceased to be Director w.e.f. 09.08.2013)

4 1 20000




Mr. H. Ansari (appointed as a Member w.e.f. 29.10.2013)

4 2 40000




Mr. S. P. Talwar (ceased to be Member w.e.f. 09.08.2013)

4 1 20000




Mr. H. Ansari (appointed as a Member w.e.f. 29.10.2013)

4 2 40000





Ms. Kirti Kothari (appointed as a member w.e.f. 25.07.2013)

4 3 Nil

Mr. Gopalkrishnan Pai (ceased to be Member w.e.f. 24.04.2013)

4 1 Nil

Mr. S. P. Talwar (ceased to be Member w.e.f. 09.08.2013)

4 1 20000


11

AUDIT COMMITTEE




Mr. Rajendra Chitale (appointed as a member w.e.f. 23.04.2013)

4 3 60000


Mr. S. P. Talwar (ceased to be member w.e.f. 09.08.2013)

4 1 20000










Mr. Sudarshanam Sundararajan 4 4 Nil


COMMITTEE OF EXECUTIVES (INVESTMENT)

Name of the Director/Member Meeting held during FY 2013-14







ASSET – LIABILITY MANAGEMENT COMMITTEE









Ms. Kirti Kothari (appointed as a Member w.e.f. 13th August, 2013)

4 3 Nil


12

ANNEXURE II FORMING PART OF CORPORATE GOVERNANCE REPORT

POLICYHOLDERS PROTECTION COMMITTEEName Qualifi cation Field of Specialization Category

Mr. H. Ansari# Post Graduate in Science Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, Fellow of Insurance


Mr. S. P. Talwar* B.A., LLB, CAIIB Banking & Finance Independent Director*ceased to be a Member w.e.f. 09th August, 2013#appointed as a Memer w.e.f. 29th October, 2013

INVESTMENT COMMITTEEName Qualifi cation Field of Specialization Category

Mr. H. Ansari# Post Graduate in Science Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Hemant Jain Chartered Accountant Finance EmployeeMr. K. Ramkumar B.Sc (Chemistry), Diploma in



Ms. Kirti Kothari FIAI Appointed Actuary Appointed ActuaryMr. S. P. Talwar* B.A., LLB, CAIIB Banking & Finance Independent Director

*ceased to be a Member w.e.f. 09th August, 2013#appointed as a Member w.e.f. 29th October, 2013

AUDIT COMMITTEEName Qualifi cation Field of Specialization Category

Mr. D. Sengupta B.Sc, Post Graduate Diploma in Marketing


Mr. Rajendra Chitale# Chartered Accountant Finance & Insurance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. S. P. Talwar* B.A., LLB, CAIIB Banking & Finance Independent Director

*ceased to be a Member w.e.f. 09th August, 2013#Appointed as a Member w.e.f. 23rd April, 2013

BOARD OF DIRECTORSName Qualifi cation Field of Specialization Category

Mr. H. Ansari Post Graduate in Science Insurance Independent DirectorMr. D. Sengupta B.Sc, Post Graduate Diploma


Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rajendra Chitale Chartered Accountant Finance & Insurance Independent DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. S. P. Talwar* B.A., LLB, CAIIB Banking & Finance Independent Director

*ceased to be a Director w.e.f. 09th August, 2013


13

NOMINATION COMMITTEEName Qualifi cation Field of Specialization Category

Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. S. P. Talwar* B.A., LLB, CAIIB Banking & Finance Independent Director

*ceased to be a Member w.e.f. 09th August, 2013

ETHICS COMMITTEEName Qualifi cation Field of Specialization Category

Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting Employee

Risk Management CommitteeName Qualifi cation Field of Specialization Category



Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Mohan Khandekar M.Com, LLB, ACS Company Secretarial and

Legal MattersEmployee

Mr. Hemant Jain Chartered Accountant Finance EmployeeMr. Sudarshanam Sundararajan

B.E. (Mech), AIII Project Insurance, Risk Management

Employee



COMMITTEE OF EXECUTIVES (INVESTMENT)Name Qualifi cation Field of Specialization Category

Mr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Hemant Jain Chartered Accountant Finance EmployeeMr. Sudarshanam Sundararajan


Employee



ASSET LIABILITY MANAGEMENT COMMITTEEName Qualifi cation Field of Specialization Category

Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWAI Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Hemant Jain Chartered Accountant Finance EmployeeMr. K. Ramkumar B.Sc (chemistry), Diploma in



Mr. Sudarshanam Sundararajan

B.E. (Mech) AIII Project Insurance, Risk Management

Employee



14

MANAGEMENT REPORT ATTACHED TO THE FINANCIAL STATEMENT AS ON 31ST MARCH 2014

1) We confi rm that the validity of the registration granted by Insurance Regulatory & Development Authority has not expired.


3) We confi rm that shareholding pattern is in accordance with the statutory and regulatory requirements.


5) We confi rm that the required solvency margins have been maintained.

6) We certify that the values of all the assets have been reviewed on the date of the Balance Sheet and that in the best of our belief, the assets set forth in the Balance sheet are shown in the aggregate at amounts not exceeding their realisable or market value under the headings “Investments other than debt securities”, “Agents balances”, “Outstanding Premium”, "Interest and Dividends accrued but not due", "Balances due from other entities carrying on insurance business", "Other Advances”, “Advances to Staff”, “Deposits” and “ Cash”.

7) The company is exposed to various risks related to its insurance operations and fi nancial risks related to its investment portfolio. The operational & fi nancial risks are being closely monitored and being actively managed. The exposure to the insurance operations is managed by implementing underwriting controls and risk transfer through adequate reinsurance arrangements. Catastrophe risk exposure has been analyzed and accumulation is being monitored. Risk models have been also been used on our accumulation to get an estimate and the reinsurance protection has taken to limit our exposure to any one event to an acceptable limit.


8) We have no operations in any country outside India, except representative offi ce at London.

9) The Company has a separate internal audit team which audits the operations at its offi ces.

10) We certify that the investments have been valued as per the Accounting Regulations of the IRDA and shown in the Balance Sheet. The market value of investments has been arrived at as per the guidelines given by the Insurance Regulatory and Development Authority based on quoted market price wherever available and based on the market yield for rated securities not quoted and at book value for securities which do not have rating. The investment portfolio is also diversifi ed within limits set under the IRDA regulations.

11) Ageing analysis of claims outstanding and average claims settlement time for the fi ve years.

Ageing of Claim Outstanding FY 2013-14

(` in ‘000)Period / Class Fire Marine Cargo Marine Hull Motor OD

Ageing Count Amount Count Amount Count Amount Count Amount30 days 88 350,691 116 22,743 - - 5,129 285,04531 days to 6 Months 149 376,370 113 88,609 1 1,370 4,784 756,2776 Months to 1 Year 64 425,842 47 12,759 1 90 932 288,1851 Year to 5 Years 139 303,817 165 124,004 2 2,200 2,747 401,8355 Years and Above - - - - - - 2 250Grand Total 440 1,456,720 441 248,115 4 3,660 13,594 1,731,588


15

(` in ‘000)Period / Class Motor-TP Engineering Liability Public Liability

Ageing Count Amount Count Amount Count Amount Count Amount30 days 1,360 257,981 121 97,577 17 2,311 2 1,20531 days to 6 Months 6,299 1,223,010 224 664,329 42 10,180 12 5,5536 Months to 1 Year 7,666 1,512,315 161 419,291 22 8,814 8 4,4141 Year to 5 Years 54,994 8,837,251 268 269,426 48 10,615 32 22,2345 Years and Above 5,368 654,793 1 325 5 774 2 1,534

Grand Total 75,687 12,485,350 775 1,450,944 134 32,694 56 34,940


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 48,245 427,361 1 85 207 16,276 99 20,777 55,385 1,482,05031 days to 6 Months 10,485 212,869 - - 612 45,536 300 110,644 23,021 3,494,7456 Months to 1 Year 7,090 54,306 4 1,576 437 24,849 140 93,741 16,572 2,846,1831 Year to 5 Years 1,325 79,907 10 728,752 1321 77,954 1,013 210,100 62,064 11,068,0955 Years and Above - - - - - 0 20 1,839 5,398 659,515Grand Total 67,145 774,443 15 730,417 2,577 164,615 1,572 437,101 162,440 19,550,588

FY 2012-13(` in ‘000)


30 days 102 233,153 81 23,645 1 762 4,838 295,02331 days to 6 Months 95 239,330 128 41,628 - - 6,597 874,4166 Months to 1 Year 58 360,188 49 16,432 - - 1,672 330,6311 Year to 5 Years 110 401,783 109 173,743 4 7,174 2,864 376,0885 Years and Above - - - - - - - -Grand Total 365 1,234,454 367 255,448 5 7,936 15,971 1,876,158


Ageing Count Amount Count Amount Count Amount Count Amount30 days 1,313 264,018 48 27,691 22 1,661 9 1,92831 days to 6 Months 7,758 1,485,066 142 152,370 45 13,209 38 6,0796 Months to 1 Year 9,550 1,789,199 175 217,270 6 1,551 4 1,3201 Year to 5 Years 51,572 7,182,245 116 224,215 - - 70 15,7085 Years and Above - - - - - - 2 1,536Grand Total 70,193 10,720,528 481 621,546 73 16,421 123 26,571


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 57,081 185,704 - - 174 14,513 103 28,885 63,772 1,076,98331 days to 6 Months 208,609 145,578 1 2,328 640 45,288 331 96,829 224,384 3,102,1216 Months to 1 Year 28,729 64,449 7 1,506 413 25,099 333 103,749 40,996 2,911,3941 Year to 5 Years 927 60,617 7 729,697 644 39,382 875 126,804 57,298 9,337,4565 Years and Above - - - - - - - - 2 1,536Grand Total 295,346 456,348 15 733,531 1,871 124,282 1,642 356,267 386,452 16,429,490


16

FY 2011-12(` in ‘000)


30 days 60 60,988 142 14,741 1 25 5,159 293,92531 days to 6 Months 117 454,117 151 71,287 2 549 6,469 773,1106 Months to 1 Year 79 356,185 58 140,275 4 1,299 1,160 203,9351 Year to 5 Years 61 331,333 22 34,238 2 5,408 218 67,9685 Years and Above 1 2,735 - - - - - -Grand Total 318 1,205,358 373 260,541 9 7,281 13,006 1,338,937


Ageing Count Amount Count Amount Count Amount Count Amount30 days 1,012 129,022 39 31,165 12 1,665 - -31 days to 6 Months 3,840 499,643 109 204,529 35 6,567 12 3,8256 Months to 1 Year 3,568 338,949 86 195,178 17 9,562 13 2,9311 Year to 5 Years 12,292 915,131 54 220,807 29 6,245 21 2,8965 Years and Above - - - - - - - -Grand Total 20,712 1,882,745 288 651,679 93 24,038 46 9,652


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 84,530 99,634 9 1,623 228 29,590 127 33,691 91,319 696,06931 days to 6 Months 74,289 74,012 - - 479 43,117 418 134,397 85,921 2,265,1526 Months to 1 Year 81 7,341 2 100 86 9,864 20 14,777 5,174 1,280,3951 Year to 5 Years 24 1,745 10 924,177 13 12,047 49 22,879 12,795 2,544,8735 Years and Above - - - - - - - - 1 2,735Grand Total 158,924 182,731 21 925,900 806 94,618 614 205,744 195,210 6,789,225

FY 2010-11(` in ‘000)




Ageing Count Amount Count Amount Count Amount Count Amount30 days 964 119,642 70 25,212 15 875 - -31 days to 6 Months 3,672 322,787 184 134,673 46 2,733 1 836 Months to 1 Year 3,927 204,117 130 270,031 41 6,570 2 521 Year to 5 Years 12,215 685,914 110 184,026 24 3,414 10 2,8505 Years and Above - - - - - - - -Grand Total 20,778 1,332,460 494 613,942 126 13,593 13 2,984


17


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 3,308 67,100 1 20 191 11,617 125 11,854 11,243 473,47431 days to 6 Months 2,932 80,011 7 6,562 420 35,408 233 26,077 13,254 1,391,8316 Months to 1 Year 524 41,663 5 1,243,360 87 8,009 99 20,491 6,245 2,292,1701 Year to 5 Years 510 18,355 - - 19 11,841 76 49,422 13,495 1,403,9435 Years and Above - - - - - - - - - -Grand Total 7,274 207,129 13 1,249,941 717 66,875 533 107,843 44,237 5,561,418

FY 2009-10(` in ‘000)


30 days 170 78,697 112 19,878 4 619 15,158 310,57831 days to 6 Months 262 419,602 240 41,028 6 7,333 17,670 529,0706 Months to 1 Year 125 132,266 122 46,945 3 945 2,856 166,1501 Year to 5 Years 107 188,666 37 65,175 4 51,976 91 17,4045 Years and Above - - - - - - - -Grand Total 664 819,231 511 173,027 17 60,872 35,775 1,023,202


Ageing Count Amount Count Amount Count Amount Count Amount30 days 836 12,087 131 35,056 21 3,162 - -31 days to 6 Months 4,227 97,049 353 258,829 52 6,436 6 1,5656 Months to 1 Year 4,409 170,531 109 179,678 30 3,854 2 2111 Year to 5 Years 10,740 676,286 43 100,113 9 863 30 2,4285 Years and Above - - - - - - - -Grand Total 20,212 955,954 636 573,675 112 14,316 38 4,204


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 5,898 135,692 3 177 146 47,885 192 16,394 22,671 660,22531 days to 6 Months 4,595 80,310 1 27,675 398 94,442 374 126,837 28,184 1,690,1776 Months to 1 Year 1,347 17,015 3 130,000 55 12,543 99 13,190 9,160 873,3291 Year to 5 Years 1,580 95,299 - - - - 52 163,921 12,693 1,362,1315 Years and Above - - - - - - - - - -Grand Total 13,420 328,316 7 157,852 599 154,871 717 320,342 72,708 4,585,862


18


Product/Class FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10

No. of Claims

Average Settlement Time (Days)

No. of Claims


No. of Claims


No. of Claims


No. of Claims

Average Settlement

Time (Days)

Fire 653 119 808 110 1,060 136 1,440 126 1,631 80

Marine Cargo 1,098 63 884 64 1,011 95 1,604 82 3,418 32

Marine Hull 1 859 4 154 9 38 13 313 9 96

Motor OD 137,263 33 124,713 38 174,492 34 231,934 43 252,397 34

Engineering 505 113 575 148 828 148 1,302 120 1,386 90

Liability 117 176 75 211 88 209 103 156 144 94

Public Liability 21 89 18 200 13 159 23 26 16 130

Health 1,041,290 126 896,690 129 152,771 99 74,654 57 96,323 93

Aviation 2 494 8 434 1 431 4 158 5 125

Public Accident 1,394 119 1948 96 2,024 65 2,826 77 2,461 69

All Other Misc 1,147 82 1141 78 2,613 63 2,132 75 2,327 44

Total 1,183,491 1,026870 334,710 316,035 360,117

Notes: The above ageing does not include Motor Third Party claims which have to be settled through MACT and other judicial bodies.

12) A Majority of the Company’s investment is in fi xed income securities. The Fixed Income portion is invested mainly in Government securities and AAA or AA+ rated bonds. The primary objective when investing is Safety, Liquidity and Return. The Company monitors the cash position daily and seasonal liquidity needs are considered while planning maturities of investments. None of the fi xed income investments have had any delays in servicing of interest or principal amounts. Based on the past track record, the Management has reasonable confi dence in the quality and expected performance of the investments, in line with the objectives.

13) We also confi rm:

a) in the preparation of fi nancial statements, the applicable accounting standards, principles and policies have been followed along with proper explanations relating to material departures, if any;

b) the management has adopted accounting policies and applied them consistently and made judgements 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 fi nancial year and of the operating profi t or loss and of the profi t or loss of the company for the year;

c) the management has taken proper and suffi cient care for the maintenance of adequate accounting records in accordance with the applicable provisions of the Insurance Act 1938 (4 of 1938) / Companies Act, 1956 (1 of 1956), for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d) the management has prepared the fi nancial statements on a going concern basis;



19

14) Details of payments during the fi nancial year to individuals, fi rms, companies and organisations in which Directors are interested, including reimbursement-

(` in ‘000)

Sr No.

Name Of Director Entity in which Director is Interested

Interested As Nature Of Payment Amount

1 Mr. Rajendra P. Chitale Reliance Capital Limited


Reimbursement paid for expenses (Rent, Communication, Electricity, Professional fees, Maintenance Charges)

18,835

Management fees 60,000

Reimbursement paid for IT services 36,723

Reliance Life Insurance Company Limited


Gratuity 20,924

Term Insurance policy 5,111

2 Mr. Soumen Ghosh Reliance Life Insurance Company Limited


Gratuity 20,924


Reliance Securities Limited

Director Claim Paid

Brokerage Paid for Stock Exchange Trading

10

31

Reliance Capital Asset Management Limited



D. Sengupta H. AnsariDirector Director

Rajendra Chitale Soumen Ghosh Director Director

Rakesh Jain Hemant K. Jain Executive Director and CEO Chief Financial Offi cer


Place: MumbaiDate: April 30, 2014


20

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OFRELIANCE GENERAL INSURANCE COMPANY LIMITED

Report on the Financial Statements

1. We have audited the accompanying fi nancial statements of RELIANCE GENERAL INSURANCE COMPANY LIMITED (the “Company”) which comprises of the Balance Sheet as at March 31, 2014, the Revenue Account, the Profi t and Loss Account and the Receipts and Payments Account for the year then ended and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.

Management’s Responsibility for the Financial Statements

2. The Company’s Management is responsible for the preparation of these fi nancial statements that give a true and fair view of the Balance Sheet, the Revenue Account, the Profi t and Loss Account and the Receipts and Payments Account of the Company in accordance with the accounting principles generally accepted in India, the provisions of section 11 of the Insurance Act 1938, the Insurance Regulatory and Development Authority Act, 1999, the ‘Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial Statements Regulation”) and the Companies Act, 1956 read with General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013, to the extent applicable and in the manner so required. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider the internal controls relevant to the Company’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion

4. In our opinion and to the best of our information and according to the explanations given to us, the fi nancial statements have been prepared in accordance with the requirements of the Insurance Act, the IRDA Act, the IRDA Financial Statements Regulations and the Companies Act 1956, to the extent applicable and in the manner so required, and give a true and fair view in conformity with the accounting principles generally accepted in India, as applicable to insurance companies:

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;ii. in the case of the Revenue Account, of the surplus / (defi cit), as the case maybe for the year ended on that date; iii. in the case of the Profi t and Loss Account, of the Profi t of the Company for the year ended on that date; andiv. in the case of the Receipts and Payments Account, of the Receipts and Payments for the year ended on that date.

Emphasis of Matter and Other Matters

Emphasis of Matter

5. Without qualifying our opinion, we draw attention to Note 16 in Schedule 17 to the fi nancial statement, regarding Insurance Regulatory and Development Authority Order no. IRDA/F&A/ORD/MTAP/070/03/2012 dated 22nd March 2012 relating to IMTPIP liability for underwriting years 2009-10, 2010-11, 2011-12, wherein the Company has opted to amortise the transitional liability on straight line basis over three years beginning with fi nancial year 31st March, 2012. Accordingly, the balance of ` 792,765 thousand has been charged to Revenue Account during the current fi nancial year.


21

Other Matters

6. The actuarial valuation of liabilities with respect to claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER) is the responsibility of the Company’s Appointed Actuary (the “Appointed Actuary”). The Appointed Actuary has certifi ed to the Company that the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority (“IRDA”) and the Actuarial Society of India in concurrence with IRDA. We have relied on the Appointed Actuary’s certifi cate in this regard for forming our opinion on the fi nancial statements of the Company.

Report on Other Legal and Regulatory Requirements

7. As required under Schedule C of IRDA Financial Statements Regulations, read with section 227 of the Companies Act 1956, we report that :

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory;

b. in our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Company so far as appears from our examination of those books;

c. the fi nancial accounting systems of the Company are centralized and therefore accounting returns are not required to be submitted by branches and other offi ces;

d. the Balance Sheet, Revenue Account, Profi t and Loss Account and Receipts and Payments account referred to in this report are in agreement with the books of account;

e. in our opinion and to the best of our information and according to the explanations given to us, investments of the Company have been valued in accordance with the provisions of the Insurance Act, 1938 and the regulations/directions issued by the IRDA in this behalf;

f. in our opinion and to the best of our information and according to the explanations given to us, the accounting policies selected by the Company are appropriate and in compliance with applicable accounting standards notifi ed under the Companies Act, 1956 read with General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013 to the extent they are not inconsistent with the accounting principles prescribed in the IRDA Financial Statements Regulations and orders or directions issued by the IRDA in this behalf;

g. the Balance Sheet, Revenue Account, Profi t and Loss Account and Receipts and Payments Account referred to in this report are in compliance with the accounting standards notifi ed under the Companies Act, 1956 read with General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013, except as stated in para 5 above, to the extent they are not inconsistent with the accounting principles prescribed in the IRDA Financial Statements Regulations and orders or directions issued by the IRDA in this behalf; and

h. Based on the written representations received from the Directors of the Company, as on March 31, 2014, and taken on record by the Board of Directors, we report that none of the directors are disqualifi ed as on March 31, 2014 from being appointed as a Director in terms of Section 274 (1) (g) of the Companies Act, 1956.

8. As required by the IRDA Financial Statements Regulations, we have issued a separate certifi cate of even date on the matters specifi ed in paragraph 3 and 4 of Schedule C to the IRDA Financial Statements Regulations.





22

INDEPENDENT AUDITORS’ CERTIFICATE(Referred to in paragraph 8 of our Report on Other Legal and Regulatory Requirements forming part of the Independent Auditors’ Report dated April 30, 2014)

This certifi cate is issued to comply with the provisions of paragraphs 3 and 4 of Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations 2002, (the “Regulations”) read with regulation 3 of the Regulations.

Management of the Company is responsible for complying with the provisions of The Insurance Act, 1938 (the “Insurance Act”), the Insurance Regulatory and Development Authority Act, 1999 (the “IRDA Act”), the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial Statements Regulations”), orders/directions issued by the Insurance Regulatory and Development Authority (the “IRDA”). This includes collecting, collating and validating data and designing, implementing and monitoring of internal controls suitable for ensuring compliance as aforesaid.

Our responsibility, for the purpose of this certifi cate, is limited to certifying matters contained in paragraphs 3 and 4 of Schedule C of the Regulations We conducted our examination in accordance with the Guidance Note on Audit Reports and Certifi cates for Special Purposes issued by the Institute of Chartered Accountants of India (the ‘ICAI’).

In accordance with the information and explanations given to us and to the best of our knowledge and belief and based on our examination of the books of accounts and other records maintained by Reliance General Insurance Company Limited (the “Company”) for the year ended March 31, 2014, we certify that:

1) We have reviewed the Management Report attached to the fi nancial statements for the year ended March 31, 2014 and have found no apparent mistake or material inconsistency with the fi nancial statements;

2) Based on management representations and the compliance certifi cate submitted to the Board by the offi cers of the Company charged with compliance and the same being noted by the Board, nothing has come to our attention which causes us to believe that the Company has not complied with the terms and conditions of registration as per sub-section 4 of section 3 of the Insurance Act, 1938;

3) We have verifi ed the cash balances, to the extent considered necessary and securities relating to Company’s loans and investments as at March 31, 2014, by actual inspection or on the basis of certifi cates/ confi rmations received from the Custodians/Depository Participants appointed by the Company, as the case may be;







23


Registration No and Date of Registration with the IRDA : Regn. No. 103 dated 23.10.2000(` in '000)

Particulars Schedule 2013-14 2012-13Premium Earned (Net) 1 410,893 355,667 Profi t / (loss) on sale/redemption of Investments (Net) 9,912 10,769 Interest, Dividend & Rent – Gross 157,534 113,760 TOTAL ( A ) 578,339 480,196 Claims Incurred (Net) 2 365,492 207,203 Commission 3 (133,628) (62,387)Operating Expenses related to Insurance Business 4 117,596 105,373 Reserve for Premium Defi ciency - - TOTAL ( B ) 349,460 250,189 Operating Profi t/(Loss) from Fire Business C= (A) - (B) 228,879 230,007 AppropriationsTransfer to Shareholders' Accounts 228,879 230,007 Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL ( C ) 228,879 230,007 Signifi cant accounting policies and notes to accounts to the Financial Statements 16 & 17

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, all expenses of management, wherever incurred, whether directly or indirectly in respect of general insurance business have been fully debited in the revenue accounts as expenditure.The Schedules referred to above form an integral part of the Financial Statements.As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director Director

Nikhil Singhi Rajendra Chitale Soumen GhoshPartner, Membership No. 061567 Director Director


Executive Director & CEO Chief Financial Offi cer

Mukesh Mehta Mohan KhandekarPartner, Membership No. 043495 Company Secretary



24



Particulars Schedule 2013-14 2012-13Premium Earned (Net) 1 193,096 86,911 Profi t / (loss) on sale/redemption of Investments (Net) 2,253 1,820 Interest, Dividend & Rent – Gross 35,802 19,227 TOTAL (A) 231,151 107,958 Claims Incurred (Net) 2 179,780 110,210 Commission 3 24,574 13,624 Operating Expenses related to Insurance Business 4 53,655 29,463 Reserve for Premium Defi ciency (20,900) 17,936 TOTAL (B) 237,109 171,233 Operating Profi t/(Loss) from Marine Business C= (A) - (B) (5,958) (63,275)AppropriationsTransfer to Shareholders' Accounts (5,958) (63,275)Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL ( C ) (5,958) (63,275)Signifi cant accounting policies and notes to accounts to the Financial Statements 16 & 17

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, all expenses of management, wherever incurred, whether directly or indirectly in respect of general insurance business have been fully debited in the revenue accounts as expenditure. The Schedules referred to above form an integral part of the Financial Statements.As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director Director







25



Particulars Schedule 2013-14 2012-13Premium Earned (Net) 1 16,793,592 13,155,573 Profi t / (loss) on sale/redemption of Investments (Net) 148,742 141,829 Interest, Dividend & Rent – Gross 3,033,232 1,644,588 Exchange Gain / (loss) (13,113) (5,883)Misc Income 4,393 3,773 TOTAL (A) 19,966,846 14,939,880 Claims Incurred (Net) 2 15,490,948 12,290,518 Commission 3 505,417 497,770 Operating Expenses related to Insurance Business 4 4,427,086 3,760,525 Reserve for Premium Defi ciency - - TOTAL (B) 20,423,451 16,548,813 Operating Profi t/(Loss) from Miscellaneous Business C= (A) - (B) (456,605) (1,608,933)AppropriationsTransfer to Shareholders' Accounts (456,605) (1,608,933)Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL ( C ) (456,605) (1,608,933)Signifi cant accounting policies and notes to accounts to the Financial Statements 16 & 17

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, all expenses of management, wherever incurred, whether directly or indirectly in respect of general insurance business have been fully debited in the revenue accounts as expenditure.The Schedules referred to above form an integral part of the Financial Statements.As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director Director







26

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2014Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000

(` in'000)Particulars 2013-14 2012-13

Operating Profi t / (Loss) a. Fire Insurance 228,879 230,007 b. Marine Insurance (5,958) (63,275)c. Miscellaneous Insurance (456,605) (1,608,933)

(233,684) (1,442,201)Income from Investments Interest, Dividend & Rent – Gross 822,343 731,028 Profi t on sale/redemption of investments 75,346 103,283 Less: Loss on sale/redemption of investment (23,603) (34,083)

874,086 800,228 Other IncomeProfi t/(Loss) on sale of assets (3,132) (10,031)Miscellaneous Income 17,936 38,751 Excess Provision Written Back 43,499 -

58,303 28,720 TOTAL (A) 698,705 (613,253)Provisions (Other than Taxation)(a) For diminution in the value of investment - - (b) For doubtful debts 34,085 305,106 (c) Others :-Risk reserve - - Standard Assets (1,017) 1,203

33,068 306,309 Other ExpensesExpenses other than those related to Insurance Business 24,810 8,130 Exchange Gain / (loss) - - TOTAL (B) 57,878 314,439 Profi t / (Loss) Before Tax 640,827 (927,692)Provision for TaxationCurrent Tax - - Deferred Tax - - Net Profi t /(Loss) After Tax 640,827 (927,692)Appropriations:(a) Interim dividends paid during the year - - (b) Proposed fi nal dividend - - (c) Dividend Distribution Tax - - (d) Transfer to any reserve or other accounts (to be specifi ed): - - Profi t / (Loss) After appropriations 640,827 (927,692)Balance of Profi t / Loss brought forward from last year (9,634,626) (8,706,934)Balance carried forward to Balance Sheet (8,993,799) (9,634,626)Basic & Diluted Earning Per Share 5.22 (7.61)

Signifi cant accounting policies and notes to accounts form an integral part of the Financial Statements refer schedule 16 & 17As per our Report of even date attached For and on behalf of the Board

For Singhi & Co. D. Sengupta H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director Director







27


(` in'000)Particulars Schedule 31.03.2014 31.03.2013

Sources of funds Share Capital 5&5A 1,227,750 1,227,750 Reserves and Surplus 6 16,242,881 16,242,881 Fair Value Change Account 6,955 (53,002) Borrowings 7 - - Total 17,477,586 17,417,629 Application of funds Investments 8 38,427,155 32,524,961 Loans 9 46,315 299,424 Fixed Assets 10 265,990 250,407 Deferred Tax Assets 372,735 372,735 Current Assets Cash and Bank Balances 11 644,135 545,783 Advances and Other Assets 12 9,122,566 9,475,344 Sub-Total (A) 9,766,701 10,021,127 Current Liabilities 13 31,295,618 27,795,034 Provisions 14 9,099,491 7,890,617 Sub-Total (B) 40,395,109 35,685,651 Net Current Assets (C = A - B) (30,628,408) (25,664,524) Miscellaneous Expenditure 15 - - (to the extent not written off or adjusted) Debit Balance in Profi t & Loss Account 8,993,799 9,634,626 Total 17,477,586 17,417,629 Signifi cant accounting policies and notes to accounts to the Financial Statements

16 & 17

The Schedules referred to above form an integral part of the Financial Statements.As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director Director







28


Schedule – 1

Premium Earned (Net of Service Tax) (` in'000)




accepted


ceded

Net Premium(3+4-5)


risks


1 2 3 4 5 6 7 8Fire 2013-14 1,779,633 304,838 1,607,947 476,524 (65,631) 410,893

2012-13 1,684,248 287,830 1,555,176 416,902 (61,235) 355,667 Marine Cargo 2013-14 389,274 1,230 174,140 216,364 (25,291) 191,073

2012-13 278,105 1,297 164,107 115,295 (29,800) 85,495 Marine Hull 2013-14 15,174 - 14,116 1,058 965 2,023

2012-13 6,557 - 5,283 1,274 142 1,416 Marine Total 2013-14 404,448 1,230 188,256 217,422 (24,326) 193,096

2012-13 284,662 1,297 169,390 116,569 (29,658) 86,911 Motor OD 2013-14 7,690,118 80 444,759 7,245,439 (256,742) 6,988,697

2012-13 7,484,862 48 773,171 6,711,739 (250,645) 6,461,094 Motor TP 2013-14 6,756,332 167,871 466,703 6,457,500 (863,352) 5,594,148

2012-13 5,431,906 294,383 602,149 5,124,140 (1,192,490) 3,931,650 Motor Total 2013-14 14,446,450 167,951 911,462 13,702,939 (1,120,094) 12,582,845

2012-13 12,916,768 294,431 1,375,320 11,835,879 (1,443,135) 10,392,744 Employer's Liability 2013-14 79,912 - 6,047 73,865 4,210 78,075

2012-13 76,689 - 7,824 68,865 (8,025) 60,840 Public Liability 2013-14 275,231 3,331 240,006 38,556 (13,099) 25,457

2012-13 285,426 153 256,847 28,732 (2,975) 25,757 Engineering 2013-14 723,357 42,148 616,659 148,846 6,132 154,978

2012-13 848,941 62,427 762,600 148,768 (2,660) 146,108 Aviation 2013-14 29,554 - 28,880 674 617 1,291

2012-13 22,801 - 24,120 (1,319) 5 (1,314)Personal Accident 2013-14 278,838 8,485 89,085 198,238 (14,160) 184,078

2012-13 222,814 2,756 25,718 199,852 8,700 208,552 Health 2013-14 4,700,920 - 1,174,166 3,526,754 55,470 3,582,224

2012-13 2,955,306 2,663 499,730 2,458,239 (275,320) 2,182,919 Other Misc. 2013-14 1,169,906 692 924,802 245,796 (61,152) 184,644

2012-13 802,397 13 667,003 135,407 4,560 139,967 Misc Total 2013-14 21,704,168 222,607 3,991,107 17,935,668 (1,142,076) 16,793,592

2012-13 18,131,142 362,443 3,619,162 14,874,423 (1,718,850) 13,155,573

Total 2013-14 23,888,249 528,675 5,787,310 18,629,614 (1,232,033) 17,397,581 2012-13 20,100,052 651,570 5,343,728 15,407,894 (1,809,743) 13,598,151


29


Schedule – 2Claims Incurred (Net) (` in'000)


Claims Paid from direct business written

Claims Paid on


Claims Recovered

on reinsurance

ceded

Net Claims Paid

(3+4-5)


end


beginning


1 2 3 4 5 6 7 8 9Fire 2013-14 869,199 37,348 648,864 257,683 410,836 303,027 365,492

2012-13 728,771 140,529 676,217 193,083 303,027 288,907 207,203 Marine Cargo 2013-14 208,377 2,637 100,155 110,859 170,956 101,723 180,092

2012-13 216,939 12,079 141,643 87,375 101,723 78,667 110,431 Marine Hull 2013-14 295 - 30 265 637 1,214 (312)

2012-13 386 - 39 347 1,214 1,782 (221)Marine Total 2013-14 208,672 2,637 100,185 111,124 171,593 102,937 179,780

2012-13 217,325 12,079 141,682 87,722 102,937 80,449 110,210 Motor OD 2013-14 4,305,196 - 373,519 3,931,677 1,722,057 1,892,076 3,761,658

2012-13 3,724,843 - 386,738 3,338,105 1,892,076 1,459,119 3,771,062 Motor TP 2013-14 3,817,581 1,198,620 170,032 4,846,169 16,747,101 13,872,071 7,721,199

2012-13 3,483,145 366,453 121,016 3,728,582 13,872,071 11,597,898 6,002,755 Motor Total 2013-14 8,122,777 1,198,620 543,551 8,777,846 18,469,158 15,764,147 11,482,857

2012-13 7,207,988 366,453 507,754 7,066,687 15,764,147 13,057,017 9,773,817 Employer's Liability 2013-14 21,674 - 2,170 19,504 38,827 29,412 28,919

2012-13 21,496 - 2,269 19,227 29,412 21,460 27,179 Public Liability 2013-14 3,247 - 379 2,868 26,874 13,077 16,665

2012-13 3,147 - 1,550 1,597 13,077 8,177 6,497 Engineering 2013-14 530,784 17,804 441,456 107,132 204,121 137,135 174,118

2012-13 523,178 31,373 429,559 124,992 137,135 148,976 113,151 Aviation 2013-14 10,651 432 10,289 794 1,713 443 2,064

2012-13 218,651 183 211,580 7,254 443 6 7,691 Personal Accident 2013-14 174,296 210 39,829 134,677 140,182 122,037 152,822

2012-13 202,112 - 47,120 154,992 122,037 94,697 182,332 Health 2013-14 4,323,384 - 1,106,848 3,216,536 950,880 637,499 3,529,917

2012-13 2,091,227 - 285,861 1,805,366 637,499 377,568 2,065,297 Other Misc. 2013-14 348,698 (2) 229,439 119,257 159,596 175,267 103,586

2012-13 105,052 - 44,023 61,029 175,267 121,742 114,554 Misc Total 2013-14 13,535,511 1,217,064 2,373,961 12,378,614 19,991,351 16,879,017 15,490,948

2012-13 10,372,851 398,009 1,529,716 9,241,144 16,879,017 13,829,643 12,290,518 Total 2013-14 14,613,382 1,257,049 3,123,010 12,747,421 20,573,780 17,284,981 16,036,220

2012-13 11,318,947 550,617 2,347,615 9,521,949 17,284,981 14,198,999 12,607,931


30



(` in'000)




reinsurance ceded


1 2 3 4 5 6Fire 2013-14 96,469 11,247 241,344 (133,628) 2012-13 100,177 16,103 178,667 (62,387)Marine Cargo 2013-14 35,845 12 10,004 25,853 2012-13 27,667 19 13,945 13,741 Marine Hull 2013-14 359 - 1,638 (1,279) 2012-13 277 - 394 (117)Marine Total 2013-14 36,204 12 11,642 24,574 2012-13 27,944 19 14,339 13,624 Motor OD 2013-14 729,673 - 66,136 663,537 2012-13 694,040 - 112,744 581,296 Motor TP 2013-14 5,764 - 21,097 (15,333) 2012-13 - - 80,551 (80,551)Motor Total 2013-14 735,437 - 87,233 648,204 2012-13 694,040 - 193,295 500,745 Employer's Liability 2013-14 7,262 - 1,442 5,820 2012-13 6,808 - 1,150 5,658 Public Liability 2013-14 7,974 83 12,497 (4,440) 2012-13 6,632 2 13,129 (6,495)Engineering 2013-14 37,385 1,703 127,403 (88,315) 2012-13 34,684 3,646 146,888 (108,558)Aviation 2013-14 160 - 1,873 (1,713) 2012-13 (547) - 2,479 (3,026)Personal Accident 2013-14 21,389 85 16,882 4,592 2012-13 18,825 27 2,275 16,577 Health 2013-14 189,818 - 189,177 641 2012-13 176,388 27 65,218 1,11,197 Other Misc. 2013-14 27,139 - 86,511 (59,372) 2012-13 37,279 - 55,607 (18,328)Misc Total 2013-14 1,026,564 1,871 523,018 505,417 2012-13 974,109 3,702 480,041 497,770 Total 2013-14 1,159,237 13,130 776,004 396,363

2012-13 1,102,230 19,824 673,047 449,007 Schedule 3 ACommission Paid - Direct

(` in '000)


Agents 767,180 749,828 - - Brokers 351,581 309,406 - - Corporate agency 40,476 42,996 - - Referral - - - - Total 1,159,237 1, 102,230 - -


31


Schedule – 4

Operating Expenses related to insurance business(` in'000)

Particulars 2013-14 2012-13 Employees’ remuneration & welfare benefi ts 1,371,198 1,189,717

Company's contribution to Provident fund and others 72,006 61,820 Travel, conveyance and vehicle running expenses 65,704 66,986 Rents, rates & taxes 266,454 387,021 Repairs 273,586 248,813 Printing & Stationery 50,910 48,118 Communication expenses 93,301 85,154 Postage expenses 41,292 40,426 Legal & professional charges 182,729 147,316 Auditors Fees, expenses, etc. a. As auditor 3,969 3,568 b. As advisor or in any other capacity, in respect (i) Taxation matters - - (ii) Insurance matters - - (iii) Management services; and - - c. In any other capacity - 3,969 - 3,568

Advertisement and Publicity 1,687,377 1,165,923 Interest & Bank Charges 32,317 33,969 Service Tax Expenses 52,824 19,576 Others : Directors' Sitting fees 620 580 Entertainment Expenses 6,133 2,593 Offi ce Maintenance Expenses 147,376 143,290 Training & Recruitment Expenses 57,220 42,147 Depreciation 113,504 106,304 Offi ce Management Expenses 56,000 60,253 Subscriptions and Membership Fees 26,433 24,097 Coinsurance Expenses (net) 10,524 13,137 Miscellaneous expenses 11,670 12,683 TOTAL 4,623,147 3,903,491 Allocation: Fire Revenue Account 117,596 105,373 Marine Revenue Account 53,655 29,463 Miscellaneous Revenue Account 4,427,086 3,760,525 Expenses not relating to Insurance Business taken in Profi t & Loss A/c

24,810 8,130

TOTAL 4,623,147 3,903,491


32


Schedule – 5 Share Capital

(` in'000) Particulars 2013-14 2012-13

Authorized Capital20,00,00,000 (Previous Year 20,00,00,000) Equity Shares of `10 each

2,000,000 2,000,000

Issued Capital12,27,74,960 (Previous Year 12,27,74,960) Equity Shares of `10 each

1,227,750 1,227,750

Subscribed Capital12,27,74,960 (Previous Year 12,27,74,960) Equity Shares of `10 each

1,227,750 1,227,750

Called Up Capital12,27,74,960 (Previous Year 12,27,74,960) Equity Shares of `10 each

1,227,750 1,227,750

Less: Calls Unpaid - -Add : Equity Share forfeited (Amount originally paid up) - -Less: Par value of Equity shares bought back - -Less:(i) Preliminary Expenses to the extent not written off

- -

(ii) Expenses including commission or brokerage on underwriting or subscription of shares

- -

Total 1,227,750 1,227,750

Note: Of the above 11,84,80,288 shares are held by Holding Company, Reliance Capital Limited (previous year 11,84,80,288 Equity shares).

Schedule – 5A

Pattern of Share Holding (As certifi ed by the Management)(` in'000)

Shareholder 2013-14 2012-13 No. of Shares

% of Holding

No. of Shares

% of Holding

Promoters- Indian Holding Company- Indian 118,480,288 96.50% 118,480,288 96.50% Holding Company- Foreign - - - - Others Reliance General Insurance Employees Benefi t Trust 4,294,672 3.50% 4,294,672 3.50% Total 122,774,960 100.00% 122,774,960 100%


33


Schedule – 6 Reserves and Surplus

(` in'000)

Particulars 2013-14 2012-13 Capital Reserve - - Capital Redemption Reserve - - Share Premium 16,242,881 16,242,881 General Reserve - - Catastrophe Reserve - - Other Reserves - - Balance in Profi t and Loss Account - - Total 16,242,881 16,242,881


(` in'000)

Particulars 2013-14 2012-13


Banks - -


Others - -

Total - -


34


SCHEDULE – 8 Investments

(` in'000) Particulars 2013-14 2012-13

LONG TERM INVESTMENTSGovernment securities and Government guaranteed bonds including Treasury Bills

12,236,993 7,998,452

Other Approved Securities 1,545,371 2,005,494 Other Investments :(a) Shares (aa) Equity 505,038 495,110 (bb) Preference - - (b) Mutual Funds - - (c) Derivative Instruments - - (d) Debentures/ Bonds 7,984,220 7,622,541 (e) Other securities - - (f) Subsidiaries - - (g) Investment Properties-Real Estate - - Investments in Infrastructure and social sector 7,288,629 6,737,392 Other than Approved Investments 675,964 353,539 Total Long Term Investments 30,236,215 25,212,528

SHORT TERM INVESTMENTSGovernment securities and Government guaranteedbonds including Treasury Bills

- 47,220

Other Approved Securities - - Other Investments :(a) Shares (aa) Equity - - (bb) Preference - - (b) Mutual Funds - - (c) Derivative Instruments - - (d) Debentures/ Bonds 6,333,046 6,257,267 (e) Other securities - - (f) Subsidiaries - - (g) Investment Properties-Real Estate - - Investments in Infrastructure and social sector 1,847,206 757,895 Other than Approved Investments 10,688 250,051 Total Short Term Investments 8,190,940 7,312,433 Total 38,427,155 32,524,961

1. The value of Investment Other than listed equity shares is as follows: (` in'000)

Particulars Current Year Previous YearBook Value 37,799,373 31,903,742 Market Value 37,077,566 32,091,212

2. Government Securities include ` 1,31,731 thousand as at 31st March, 2014 (as at 31st March, 2013 ` 134,247 thousand), deposit u/s 7 of the Insurance Act, 1938.


4. The company has not segregated the investments separately between policyholder's funds and shareholders funds, due to pratical diffi culty and the same has been approved by the Board of Directors as per requirement of Master circular on Preparation of Financial Statements vide circular no. IRDA-F&I-CIR-F&A-231-10-2012.


35


SCHEDULE – 9 Loans

(` in'000)

Particulars 2013-14 2012-13 SECURITY-WISE CLASSIFICATION

Secured


(aa) In India - -



(c) Others (to be specifi ed) - -

Unsecured 46,315 299,424

TOTAL 46,315 299,424

BORROWER-WISE CLASSIFICATION





(e) Others - Trustees of Reliance General Insurance Employee's Benefi t Trust

46,315 299,424

TOTAL 46,315 299,424

PERFORMANCE-WISE CLASSIFICATION

(a) Loans classifi ed as standard

(aa) In India 46,315 299,424



(aa) In India - -


TOTAL 46,315 299,424

MATURITY-WISE CLASSIFICATION

(a) Short Term - -

(b) Long Term 46,315 299,424

TOTAL 46,315 299,424

* Net of Provision of ` 186/- (` in 000) (Previous Year 1,203/- (Rs in 000))


36

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37



(` in'000) Particualrs 2013-14 2012-13

Cash (including cheques, drafts and stamps on hand) 86,786 59,102 Bank Balances (a) Deposit Accounts (aa) Short - term (due within 12 months) 1,400 1,400 (aa) Others - - (b) Current Accounts 329,149 292,721 (c') Cheques on Hand 226,800 557,349 192,560 486,681 Money at Call and Short Notice (a) With Bank - - (b) With other Institutions - - - - Others - - Total 644,135 545,783 Balances with non-scheduled banks included in (Current Accounts) above

- -

Total 644,135 545,783 Short term deposit represents fi xed deposit given to bank for bank guarantee.


(` in'000) Particulars 2013-14 2012-13

Advances Reserve deposits with Ceding Companies - - Application money for investments - - Prepayments 34,571 32,021 Advances to Directors/ Offi cers - - Advance tax paid and taxes deducted at source (Net of provision for taxation)

7,510 5,808

Others- Rental & Other Deposits 198,635 185,868 - Advances to Staff 1,494 1,359 - Unutilised Service Tax Credit and VAT 202,593 45,286 - Other Advances 184,954 427,179 Less : Provision - 587,676 (219,176) 440,516 Other Assets Income accrued on investments 1,545,911 1,233,849 Outstanding Premium 200,421 247,184 Agents' Balances 719 1,288 Foreign Agency Balances - - Due from subsidiaries/holding cos. - - Repossessed Stock 15 - Due from other entities carrying on insurance business 7,117,986 7,094,119 Less Provision for doubtful debts (372,243) (372,206)Motor Pool Translition Liabilities (Unamortised Losses) - 8,492,809 792,765 8,996,999 Deposit with Reserve Bank of India(Pursuant to Section 7 of Insurance Act,1938)

- -

Total 9,122,566 9,475,344


38


Schedule – 13 Current Liabilities

(` in'000)

Particulars 2013-14 2012-13 Agent's Balances 80,573 77,862 Balances due to other insurance companies 226,916 369,338 Premium received in Advance 45,965 356,885 Unallocated Premium 1,071,194 372,452 Sundry Creditors 1,264,596 1,257,136 Claims Outstanding 27,746,457 24,279,579 Add : Provision for Doubtful Reinsurance Recoveries 135,125 27,881,582 103,406 24,382,985 Due to Offi cers / Directors - 12 Others : - Unclaimed amount of policyholders 367,327 335,386 - Environmental Relief Fund Payable 61 116 - Temporary Book Overdraft as per accounts 269,742 491,281 - Employee Related Payables 13,837 21,197 - Statutory Dues 61,683 73,070 - Service Tax & VAT Liability 12,142 724,792 57,314 978,364 Total 31,295,618 27,795,034


(` in'000)

Particulars 2013-14 2012-13Reserve for Unexpired Risk 8,984,897 7,752,864 For Taxation (less advance tax paid and Tax deducted at source)

- -

Provision for doubtful debts - - For Proposed Dividends - - For Dividend distribution tax - - Reserve for Premium Defi ciency - 20,900 Others :- For Leave Encashment 14,594 16,853 - For Risk Reserves 100,000 114,594 100,000 116,853 Total 9,099,491 7,890,617

SCHEDULE – 15 Miscellaneous Expenditure (` in'000)

Particulars 2013-14 2012-13Discount Allowed in issue of shares/ debentures - -Others (to be specifi ed) - - Total - -


39

RECEIPTS AND PAYMENTS ACCOUNT FOR YEAR ENDED 31ST MARCH, 2014Registration No. and Date of Registration with the IRDA : Regn. No. 103 dated 23.10.2000

(` in '000)Particulars Current Year Previous Year

Cash fl ows from operating activities :Direct Premiums received 23,577,329 20,329,699 Payment to re-insurers, net of commissions and claims (218,539) (2,271,151)Payment to co-insurers, net claims recovery (274,184) (85,559)Direct Claims Paid (15,086,786) (11,318,948)Direct Commission / Brokerage Payments (1,180,744) (1,096,720)Payment of other operating expenses (4,342,189) (3,363,052)Preliminary and pre-operating expenses - - Deposits, Advances, and Staff loans 660,118 (366,468)Service Tax (Net) (94,734) 24,800 Income tax paid (Net) (1,702) 7,318 Wealth tax paid - - Misc Receipts/payments (8,725) (2,110)Cash fl ow before extraordinary items 3,029,844 1,857,809 Cash fl ow from extraordinary operations - - Cash fl ow from operating activities 3,029,844 1,857,809 Cash fl ows from investing activities :Purchase of investments (28,035,131) (41,295,279)Sale of Investments (Including gain/ Loss) 21,544,160 32,924,066 Purchase of fi xed Assets (138,495) (98,782)Proceeds from sale of fi xed assets 6,277 2,583 Rent/ Interest/ Dividends received 2,845,638 2,134,095 Investment in money market instruments and in liquid mutual funds (Net)

838,282 2,945,121

Repayment received - - Loan Given 254,126 - Expenses related to investments (24,810) (8,130)Net Cash fl ow from investing activies (2,709,953) (3,396,326)Cash fl ows from fi nancing activities :Proceeds from Issuance of Share Capital - - Share Application Money Received' 1,549,999 Proceeds from borrowings - - Repayment of borrowings - - Interest/ Dividend Paid - - Cash fl ow from fi nancing activities - 1,549,999 Net increase in cash & cash equivalents 319,891 11,482 Cash and cash equivalents at the beginning of the year 54,502 43,020 Cash and cash equivalents at the end of the period including Bank Overdraft

374,393 54,502

Cash and cash Equivalent at the end of the period: Cash & Bank balance as per schedule 644,135 545,783 Less: Temporary book over draft as per schedule 269,742 491,281 Cash and Cash Equivalent at the end including Bank Overdraft 374,393 54,502

As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta H. AnsariChartered Accountants (Firm Registration no. 302049E)

Director Director







40

SCHEDULE – 16

Signifi cant accounting policies forming part of the fi nancial statements as at 31st March 2014

1. Background

Reliance General Insurance Company Limited (“the Company”) was incorporated on August 17, 2000 as a Company under the Companies Act, 1956 (“the Act”). The Company obtained regulatory approval to undertake General Insurance business on October 23, 2000 from the Insurance Regulatory and Development Authority (“IRDA”) and has also obtained its certifi cate of renewal of registration with validity until March 31, 2015.


The accompanying fi nancial statements are drawn up in accordance with the Insurance Regulatory and Development Authority Act, 1999, the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations 2002, and orders and directions issued by IRDA in this behalf and the Regulations framed there under read with relevant provisions of the Insurance Act, 1938 and the Companies Act, 1956 to the extent applicable. The fi nancial statements have been prepared under historical cost convention and on accrual basis in accordance with the generally accepted accounting principles, in compliance with the Accounting Standard (AS) as prescribed in the Companies (Accounting Standard) Rules 2006 to the extent applicable and conform to the statutory provisions in regard to general insurance operations in India.

3. Use of Estimates

The preparation of the fi nancial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the fi nancial statements. Actual results may differ from those estimates and assumptions. The estimates and assumptions used in the accompanying fi nancial statements are based upon management’s evaluation of the relevant facts and circumstances as on the date of the fi nancial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.


a. Premium income

Premium net of service tax is recognized as income over the contract period or the period of risk whichever is appropriate. Any subsequent revisions to or cancellations of premium are recognised in the year in which they occur.



ii. Profi t commission under reinsurance treaties, wherever applicable, is recognized on accrual basis. Any subsequent revisions of profi t commission are recognized in the year in which fi nal determination of the profi ts are intimated by reinsurers.


Interest income is recognized on accrual basis. Accretion of discount and amortization of premium relating to debt securities is recognized over the holding / maturity period on constant yield method. Dividend is recognized when right to receive dividend is established.

Realised profi t or loss on sale/redemption of securities is recognized on trade date basis. In determining the realised profi t and loss, the cost of securities is arrived at on weighted average cost basis. Further, in case of listed equity shares and mutual funds the profi t and loss also includes accumulated changes in the fair value previously recognized in the fair value change account under the equity and includes effects on accumulated fair value changes, previously recognized, for specifi c investments sold/redeemed during the year.


41





ii. Reinsurance inward is accounted to the extent of the returns received from the reinsurers.


Reserve for unexpired risk is made on the amount representing that part of the net premium written which attributable to, and to be allocated to the succeeding accounting period (applied 1/365 method), subject to a minimum of 100% in case of marine hull business and 50% in case of others business, based on net premium written (for unexpired risk) during the year as required by Section 64V (1) (ii) (b) of the Insurance Act, 1938.

8. Claims Incurred

Claims incurred comprise claims paid, estimated liability for outstanding claims made following a loss occurrence reported and estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported (‘IBNER’). Further, claims incurred also include specifi c claim settlement costs such as survey / legal fees and other directly attributable costs.

Claims (net of amounts receivable from reinsurers/coinsurers) are recognised on the date of intimation based on estimates from surveyors/insured in the respective revenue accounts.

Estimated liability for outstanding claims at Balance Sheet date is recorded net of claims recoverable from/payable to co-insurers/reinsurers and salvage to the extent there is certainty of realisation.

Estimated liability for outstanding claims is determined by management on the basis of ultimate amounts likely to be paid on each claim based on the past experience. These estimates are progressively revalidated on availability of further information.

IBNR represents that amount of claims that may have been incurred during the accounting period but have not been reported or claimed. The IBNR provision also includes provision, if any, required for claims IBNER. Estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported (‘IBNER’) is based on actuarial estimate duly certifi ed by the appointed actuary of the Company.

9. Acquisition Cost


10. Loans

Loans are stated at historical cost, subject to provision as per master circular IRDA/F&I/CIR/F&A/231/10/2012 dated October 5th, 2012 and impairment, if any.

11. Premium Defi ciency

Premium defi ciency is recognized if the ultimate amount of expected net claim costs, related expenses and maintenance costs exceeds the sum of related premium carried forward to subsequent accounting period as the reserve for unexpired risk. Premium defi ciency is recognised for the Company as a whole, on an annual basis as per IRDA circular IRDA/F&A/CIR/FA/126/07/2013.The company considers maintenance cost as relevant costs incurred for ensuring claim handling operations.

12. Investments

i. Investments are carried at cost on weighted average basis. Cost includes brokerage, securities transactions tax, stamp duty and other charges incidental to transactions.


42

ii. Investment in debt securities is shown in the Balance sheet at historical cost subject to amortisation/accretion of the premium/discount over the maturity period based on constant yield method.

iii. Investment in equity shares as at the Balance Sheet date is stated at fair value and fair value is the last quoted closing price on the National Stock Exchange. However, in case of any stock not being listed in National Stock Exchange, then the last quoted closing price in Bombay Stock Exchange is taken as fair value. Unrealized gains/losses are credited / debited to fair value change account.

iv. Investment in Mutual Funds units is stated at previous day’s Net Asset Value (NAV) at the Balance Sheet date. Unrealized gains/losses are credited / debited to fair value change account.

v. In accordance with the regulations, unrealized gain/loss arising due to changes in fair value of listed equity shares is taken to the fair value change account. This balance in the fair value change account is not available for distribution, pending crystallizations.


The Company assesses at each Balance Sheet date whether there is any indication that any investment in equity or units of mutual funds is impaired. If any such indication exists, the carrying value of such investment is reduced to its recoverable amount and the impairment loss is recognized in the revenue(s)/profi t and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and investment is restated to that extent.


The company follows the intrinsic method for computing the compensation cost, for options granted under the Plan. The difference, if any, between the intrinsic value and the exercise price, being the compensation cost is amortized over the vesting period of the options.



ii. Depreciation on Fixed Assets is provided on Written down Value basis at the rates and the manner provided in Schedule XIV to the Companies Act, 1956.



v. Intangible assets are stated at cost of acquisition less accumulated amortization. The same is amortized over a period of three years on straight line basis.

vi. Based on the management’s estimate of use lives for Mobile Handset, Camera, Tablet PC are amortized over a period of two years on straight line basis.


The Company assesses at each Balance Sheet Date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the impairment loss is recognized in the profi t and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that extent.

17. Employee Benefi ts

I. Short Term Employee Benefi ts

All Short term employee benefi ts are accounted on undiscounted basis during the accounting period based on services rendered by employees.

II. Defi ned Contribution Plan

Provident fund

Each eligible employee and the Company make an equal contribution at a percentage of the basic salary specifi ed under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no further obligations


43

under the plan beyond its periodic contributions. The company contribution towards this fund is charged to profi t and loss account and revenue accounts as applicable.

Superannuation

The Company has incorporated a superannuation trust. The superannuation contribution is based on a percentage of basic salary payable to eligible employees for the period of service. The company contribution towards this trust is charged to profi t and loss account and revenue accounts as applicable.

III. Defi ned Benefi t Plan

The Company has incorporated a gratuity trust. Gratuity, which is a Defi ned Benefi t Scheme is accounted for on the basis of an actuarial valuation done at the year end and is charged to the profi t and loss account and revenue accounts as applicable.

IV. Other Long Term Employee Benefi ts

Accrued Leave is a Long Term Employee Benefi t. Compensated absences are provided based on actuarial valuation as at Balance Sheet date and is recognized in the profi t and loss account and revenue accounts as applicable.


Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year end are reinstated at the year end rates. Non-monetary foreign currency items are carried at cost. Any gain or loss on account of exchange difference either on settlement or on translation is recognized in the Profi t and Loss account and Revenue Accounts as applicable.

19. Forward Contract Transaction

In case of forward exchange contracts entered into, to hedge the foreign currency exposure in respect of monetary items, the difference between the exchange rate on the date of such contracts and the period end rate is recognized in the Statement of Profi t and Loss. Any profi t / loss arising on cancellation of forward exchange contract is recognized as income or expense of the year.



Deferred Tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation and carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty backed by the convincing evidence of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and are appropriately adjusted to refl ect the amount that is reasonably or virtually certain to be realized.


Expenses relating to insurance business are allocated on the basis of net premium written to the Revenue Accounts.

Expenses relating to investment activities are charged to the Profi t and Loss Account.

22. Earnings per share

Earnings per share is calculated by dividing the profi t after tax in the profi t and loss account by the weighted average number of equity shares outstanding during the year.


Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outfl ow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the fi nancial statements.


44

SCHEDULE – 17


1. Contingent Liabilities: (` in '000)

Particulars At March 31, 2014 At March 31, 2013Partly paid up investments - -Underwriting commitments outstanding - -Claims, other than under policies, not acknowledged as debt (Net) 12,612 11,415Guarantees given by or on behalf of the company 1,050 1,400Statutory demands/liabilities in dispute, not provided for (Amount paid under dispute Rs 2,310 thousand ,see note below)

2,310 2,310

Reinsurance obligations to the extent not provided for in accounts - -Others - -

Note:- The company has disputed the demand raised by the income tax department for non deduction of tax at source and penalty for A. Y. 2009-10 for ` 1,238 thousands and 1,072 thousands respectively (Previous ` 1,238 thousands and 1,072 thousands respectively).

2. The management had sent confi rmation letters to the vendors asking for their registrations under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED). However, no confi rmations have been received by management and therefore no provision has been made for the same. In view of the management, the impact of interest, if any, that may be payable in accordance with Provisions of the Act is not expected to be material.

3. There are no encumbrances to the assets of the company in and outside India.

4. The company has not invested any amount in real estate in the current fi nancial year.

5. Commitments:i. There are no commitments made and outstanding for Loans in the current fi nancial year (Previous year Nil).

ii. The commitments made and outstanding for Investments are Rs 3,129 thousands. (Previous year Rs 102,177 thousands).

iii. Estimated amount of commitment pertaining to contracts remaining to be executed in respect of fi xed assets(net of advances) is ` 57,509 thousands (Previous year Rs 76,402 thousands).

6. Premium: i. All premiums net of reinsurance are written and received in India.


7. Claims: i. Claims, less reinsurance paid to claimant in/outside India are as under: (` in '000)





iii. Ageing of gross claims outstanding is set out in the table below: (` in '000)






45

8. Investments:

i. Value of contracts in relation to investments for: (` in '000)



Purchases where deliveries are pending 3,129 102,177Sales where payment are overdue - -Sales where deliveries are pending 86,181 162,125

ii. Historical cost of investments valued at fair value on Balance Sheet date is ` 620,824 thousands (Previous year Rs 674,220 thousands).

iii. Investment Income has been allocated between revenue accounts and profi t and loss account on the basis of the ratio of average policyholders funds to average shareholders funds respectively; average being the balance at the beginning of the year and at the end of the year. Further, investment income between policyholders is allocated on the basis of Gross Direct Premium.

9. Reserve for unexpired risk :

Reserve for unexpired risk have been computed on the basis of 1/365 method i.e actual number of days left in the policy period divided by total number of days of policy period, subject to a minimum of 100% in case of marine hull business and 50% in case of other business, based on net premium written during the year as required by Section 64V (1) (ii) (b) of the Insurance Act, 1938. In current year while computing the same, those policies are not considered where policy period has lapsed during the year itself based on IRDA circular number IRDA/F&A/CIR/FA/126/07/2013. Had the Company continued with the earlier method, it would have resulted in creation of additional unexpired risk reserve amounting to Rs 645,304 thousands with consequential impact in respective revenue accounts

10. Employee Benefi ts:

i. Defi ned Contribution Plan: During the year company has recognized Rs 38,616 thousands as expenses (Previous year ` 31,567 thousands)

ii. Defi ned Benefi t Plan: The disclosure required under the defi ne benefi t plan as per AS 15 for gratuity fund is as follow:(` in '000)



I. Assumptions Discount Rate 9.31% 8.25% Rate of Return on Plan Assets 9.31% 8.70% Salary Escalation 5.00% 5.00%II. Table Showing Change in Benefi t Obligation Liability at the beginning of the Year 43,795 35,090 Interest Cost 3,612 2,983 Current Service Cost 11,048 8,906 Benefi t Paid (14,140) (7,602) Actuarial Gain/(Loss) on Plan Obligation 1,412 4,418 Liability at the end of the Year 45,727 43,795III. Tables of Fair value of Plan Assets Fair Value of Plan Assets at the beginning of the Year 39,117 30,097 Expected Return on Plan Assets 3,403 2,558 Contributions 20,924 14,175 Benefi t Paid (14,140) (7,602) Actuarial Gain/(Loss) on Plan Assets 291 (111)


46



Fair Value of Plan Assets at the end of the Year 49,595 39,117 Total Actuarial Gain/(Loss) to be recognised 1,121 (4,529)IV. Actual Return on Plan Assets Expected return on Plan Assets 3,403 2,558 Actuarial Gain/(Loss) on Plan Assets 291 (111) Actual return on Plan Assets 3,694 2,447V. Amount Recognised in the Balance Sheet Liability at the end of the Year 45,727 43,795 Fair Value of Plan Assets at the end of the Year 49,595 39,117 Difference (3,868) 4,678 Amount Recognised in the Balance Sheet (3,868) 4,678VI. Expenses Recognised in the Income Statement Current Service Cost 11,048 8,906 Interest Cost 3,612 2,983 Expected Return on Plan Assets 3,403 2,558 Net Actuarial Gain/(Loss) to be recognized 1,121 (4,529) Expense Recognised in P&L 12,378 13,860VII. Amount Recognised in the Balance Sheet Opening Net Liability 4,678 4,994 Expense as above 12,378 13,859 Employers Contribution Paid 20,924 14,175 Closing Net Liability (3,868) 4,678

Experience adjustments Year ended

March 31,2014

Year ended March

31,2013

Year ended March

31,2012

Year ended March

31,2011

Year ended March

31,2010Defi ned benefi ts obligations 45,727 43,795 35,090 30,300 29,817Plan assets 49,596 39,117 30,097 33,533 35,904Surplus/ (Defi cit) 3,869 (4,678) (4,993) 3,233 6,087Experience adjustment for plan liabilities (Gain)/ Losses 670 828 (538) (6,110) (171)

Experience adjustment for plan liabilities (losses)/Gains 291 (111) (1,454) (753) 3,190

11. Deferred Taxes:

The deferred tax assets and liabilities arising due to timing differences have been recognized in the fi nancial statements as under:

(` in '000)Particulars For the Year ended

March 31,2014For the Year ended

March 31, 2013Deferred Tax AssetRelated to Fixed Assets 35,833 19,215Related to Leave Encashment Provision 4,733 5,468Unabsorbed Depreciation 332,169 348,052Total 372,735 372,735Deferred Tax Asset/(Liability)(Net) 372,735 372,735Deferred Tax Expense/(Income) recognised in Profi t and Loss A/c - -


47


The company had introduced the Employee Stock Option Plan during the F. Y. 2008-09 under which options were granted to the employees of the Company on the basis of their performance and other eligibility criteria. During the year the Company granted Nil equity shares (Previous year Nil) to Reliance General Insurance Employees’ Benefi t Trust. These options are planned to be settled in cash or equity at the time of exercise and have maximum period of 7 years from the date of respective grants. The plan existing during the year is as follows:



Particulars


OptionsWeighted Average Exercise Price (`)

Weighted Average


No. of Stock Options


Weighted Average



414,900 70 1.42 459,900 70 2.42

Granted - - - - - -Exercised - - - - - -Lapsed/Forfeited - - - 45,000 - -Outstanding at the end of the year

414,900 70 - 414,900 70 -

Exercisable at the end of the year

414,900 70 - 414,900 70 -

The Company has chosen to account for the plan by Intrinsic Value Method. The total expense recognized for the year arising from stock option plan as per intrinsic value method is ̀ Nil (Previous Year Nil) The net results and Earning Per Share (EPS) for the year, had the Company adopted the fair value method, would have been unchanged.

13. Premium Defi ciency:

In accordance with circular no IRDA/F&A/CIR/FA/126/07/2013 there is no premium defi ciency for the Company as a whole, on an annual basis.

14. Details of Outsourcing, Business Development and Marketing Support Expenses:(` in '000)



Outsourcing Expenses 827,006 766,933Business Development 1,306,529 936,520Marketing Support 380,849 205,300

15. Terrorism Pool:

In accordance with the requirements of IRDA, the company together with other insurance companies participates in the Terrorism Pool. This pool is managed by the General Insurance Corporation of India (GIC). Amount collected as terrorism premium in accordance with the requirements of the Tariff Advisory Committee (TAC) are ceded at 100% of the terrorism premium collected to the Terrorism Pool.

In accordance with the terms of the agreement, GIC retrocedes to the company, terrorism premium to the extent of the company’s share in the risk which is recorded as reinsurance accepted. Such reinsurance accepted is recorded based on quarterly statements received from GIC. The reinsurance accepted on account of terrorism pool has been recorded in accordance with the last statement received from GIC


48

The Company has ensured that it has created liability to the extent of premium retroceded to the company through reserve for unexpired risks.


(a) In accordance with the directions of IRDA, the Company, together with other insurance companies, had participated in the Indian Motor Third Party Insurance Pool (IMTPIP). The IMTPIP was a multilateral reinsurance arrangement, in which all member companies were compulsorily required to participate. The IMTPIP was administered by the General Insurance Corporation of India (‘GIC’). The IMTPIP had covered reinsurance of third party risks of specifi ed motor vehicles (“Specifi ed Risks”). Amounts collected as premium in respect of Specifi ed Risks were ceded at 100% of such premium, 100% of claims incurred against risks ceded being recoverable from the pool.

In accordance with the terms of the agreement, each participant company was compulsorily required to share in the revenues, expenses, assets and liabilities of the IMTPIP, including Unexpired Risks Reserve, in the proportion that the company’s Gross Direct Premium written in India (GDPI), bears to the total GDPI of all participant companies. The Company’s share as specifi ed above had been recorded based on the returns submitted by GIC, under the respective heads.

(b) IRDA through its Orders dated December 23, 2011, January 3, 2012 and March 22, 2012 had directed the dismantling of the Pool on a clean cut basis and advised recognition of the Pool liabilities as per loss ratios estimated by Government’s Actuary Department UK (“GAD Estimates”) at 159%, 188%, 200%, 213% and 145% for underwriting year 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 respectively with the option to recognise the additional liabilities for the period 2009-10, 2010-11 and 2011-12 over a three year period, The company had exercised this option and IMTPIP liability relating to underwriting years 2009-10, 2010-11, 2011-12 is being recognized based on straight line basis over three years beginning with fi nancial year 31st March, 2012. Accordingly, the profi t of the company would have been higher by Rs 792,765 thousands pursuant to recognition of the said liability in the year of dismantling of IMTPIP.

(c) Trans itional Liabilities (TL) recognized in current year is as follow:(` in '000)

Particulars Unrecognised as on March 31, 2013

Accounted during the year

Recognized during the year

Unrecognised as on March 31, 2014

Opening 792,765 - 792,765 -

(d) The company has accounted investment income of Rs 786,461 thousands (including Rs 472,898 thousands pertaining to earlier period) as interest income from IMTPI Pool as per IRDA Order No. IRDA/F&A/ORD/MTPP/070/03-2012 dated March 22, 2012 read with IRDA Order No. IRDA/NL/ORD/MPL/100/03/2014


In accordance with the directions of IRDA, the Company, together with other insurance companies, is participating in the Indian Motor Third Party Decline Risk Pool (IMTPDRP). The IMTDRP is a multilateral reinsurance arrangement, in which all member companies are compulsorily required to participate. The IMTDRP is administered by the General Insurance Corporation of India (GIC).


Under this arrangement, any business relating to Act only policies of Commercial Vehicles which does not fall within the underwriting parameters of insurers shall be ceded to IMTPDRP. This arrangement is called the Declined Risk Pool

IRDA has mandated that every insurer has to comply with the obligation to underwrite a minimum percentage of such policies that is calculated as an average of insurer’s total gross premium percentage share in the industry and gross motor premium percentage share in the industry.

The insurers are required to retain 20% of such risk, while 5% (Previous year 10%) is ceded to GIC under obligatory cession and remaining 75% (Previous year 70%) ceded to IMTPDRP.


49

The Company has received its share of premium, claims and expenses of the pool, which is recorded as inward reinsurance business, based on the statement received from GIC. Accordingly the Company has recognized pool retrocession up to 9 month ended 31st December 2013, the accounts for which statement received.

Company has accounted for its share in Decline Risk Pool for the 3 months period January 2014 to March 2014 on provisional basis based on management estimate and recorded the net amount if any under claims incurred. Unexpired risks reserve is provided for at 50% of net premium of such inward business, being the minimum rate specifi ed in Section 64V(1)(ii) of the Insurance Act, 1938.


In accordance with the requirements of the IRDA circular dated March 18, 2003 and based on recommendations made at the General Insurance Council meeting held on February 4, 2005, the Company has provided 0.1% of gross written premium on all motor third party policies towards contribution to the solatium fund.

19. Leases:

In respect of premises taken on operating lease, the lease agreements are generally mutually renewable/ cancellable by the lessor/lessee except for some premises.

Non Cancellable Operating Lease


(` in '000)Particulars For the Year ended


March 31, 2013Not later than one year 52,841 67,666Later than one year and not later than fi ve years 28,110 80,636Later than fi ve years - -

Lease payment debited to the Profi t and Loss account during the year Rs 231,275 thousands (Previous year Rs 244,617 thousands).

20. Sector wise business based on Gross Direct Premium (GDP):

Particulars For the Year ended March 31, 2014 For the Year ended March 31, 2013GDP

(Rs in ‘000)% of GDP

GDP(Rs in ‘000)

% of GDP

Rural 2,110,538 8.84 1,705,576 8.49Urban 21,777,711 91.16 18,394,476 91.51Total 23,888,249 100.00 20,100,052 100.00



GDP(Rs in ‘000)

No. of lives GDP(Rs in ‘000)

No. of lives

Social Sector 24,971 296,439 22,897 240,556

21. Extent of risk retained and reinsured is set out below (excluding excess of loss and catastrophe reinsurance)



% of business written % of business writtenRisk Retained 78% 74%Risk Reinsured 22% 26%


50

22. Managerial Remuneration:(` in '000)



Salaries 27,557 13,388Contribution to Provident Fund and Superannuation 1,901 2,304Provision for Gratuity and Leave Encashment 1,043 308

The managerial remuneration is in accordance with the approval accorded by a resolution of the Board of Directors, which has been approved by IRDA as required under Section 34A of the Insurance Act, 1938.

The managerial remuneration in excess of Rs 15,000 thousands for each managerial personnel have been charged to Profi t & Loss Account.


The liability for IBNR and IBNER as at 31st March 2014 has been estimated by the Appointed Actuary as per IRDA circular Ref: 11/IRDA/ACTL/IBNR/2005-06 dated 8th June 2005.

For lines of business other than motor third party, the estimation was carried out using past trends in claims experience as indicated by paid claims chain ladder approach. Bornhuetter-Ferguson method of estimation was also applied for some lines as considered appropriate by the Appointed Actuary.

For motor third party line of business, the estimations were done using ultimate loss ratio method. For liabilities relating to erstwhile motor third party pool and declined risk pool, the ultimate loss ratios as specifi ed in regulatory circulars were referred to in determining the estimates.

24. As per IRDA Circular No 005/IRDA/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of the penalty imposed by various regulators and Government authorities:

(` in '000)SI No. Authority Non-

Compliance/Violation

Penalty Awarded

Penalty Paid


1 Insurance Regulatory and Development Authority 500(Nil)

500(Nil)

500(Nil)

Nil(Nil)

2 Service Tax Authorities Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

3 Income Tax Authorities Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

4 Any other Tax Authorities Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

5 Enforcement Directorate/Adjudicating Authority/Tribunal or any Authority under FEMA

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

6 Registrar of Companies/NCLT/CLB/Department of Corporate Affairs or any Authority under Companies Act, 1956

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)


Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

8 Securities and Exchange Board of India Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

9 Competition Commission of India Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

10 Any other Central/State/Local Government/Statutory Authority

Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)


51

25. As per IRDA Master Circular IRDA/F&I/CIR/F&A/231/10/2012 dated October 5th, 2012 and Corrigendum on Master Circular IRDA/F&I/CIR/F&A/126/07/2013 dated July 3rd, 2012, below table mention the age-wise analysis of unclaimed amount of the policyholders as on 31st March, 2014:

(` in '000)Particulars Total 4-12

Months13-18

Months19-24

Months25-30

Months31-36

MonthsBeyond

36 Monthsa. Claim Settled but not paid to the policy holders/insured due to any reason except under litigation from the insured/policyholders.

Nil(1,392)

-(1,392)

--

--

--

--

--

b. Any other sum due/payable to the insured/policyholder on completion of the policy terms or otherwise.

--

--

--

--

--

--

--

c. Any excess collection of premium/tax or any other charges which is refundable to the policyholders either as per the terms of the conditions of the policy or as per law or as per the direction of the authority but not refunded so far.

35,664(31,235)

5,585(6,315)

2,288(4,783)

2,895(2,450)

4,763(3,017)

2,450(3,505)

17,683(11,165)

Cheques Issued by the company under “a”, “b” or “c” above & cheques have not been encashed by the policyholders/Insured.

331,663(302,759)

61,019(67,198)

31,085(26,119)

18,428(21,715)

23,114(34,448)

18,353(31,952)

179,664(121,327)

26. As per the requirement of Accounting Standard 18 ‘Related Party Disclosures’ as notifi ed by the Companies (Accounting Standard) Rules, 2006, following are the list of related parties with the relationship.

1. List of related parties relationships, where control exists.

Ultimate Holding CompanyReliance Innoventures Private LimitedHolding CompanyReliance Capital LimitedSubsidiary of Holding Company1. Reliance Capital Asset Management Limited2. Reliance Capital Trustee Co. Limited3. Reliance Equity Advisors (India) Limited4. Reliance Money Express Limited5. Reliance Home Finance Limited 6. Reliance Securities Limited7. Reliance Composite Insurance Broking Limited 8. Reliance Wealth Management Limited9. Reliance Spot Exchange Infrastructure Limited10. Quant Capital Private Limited11. Quant Broking Private Limited12 Reliance Big Broadcasting Private Limited


52

Subsidiary of Ultimate Holding Company 13. Reliance Big Entertainment Private Limited14. Big Animation (India) Private Limited15. Reliance Communication Infrastructure Limited16. Reliance Infratel Limited17. Reliance Infocomm Infrastructure Private LimitedPerson Having ControlShri Anil D. AmbaniKey managerial personnelRakesh Jain

2 Transaction during the period with related parties: (` in '000)

S.No. Name of the Related Party

Relationship Nature of transaction For the Year ended March 31,

2014

For the Year ended March 31,

2013 1 Reliance Capital Ltd. Holding

Company Premium Received 3,874 4,471Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

13,644 12,788

Claim Paid 309 463Reimbursement paid for expenses:-Rent, Communication, Electricity, Professional fees, Maintenance ChargesReimbursement paid for IT services

18,83536,723

10,50928,358

Management fees Paid 60,000 82,441Advertisement Charges paid - 548Share Capital Received - 15,816Share Premium Received - 1,534,183Interest Accrual on Debenture 90,479 73,163Outstanding balance in Customer Deposit (CD) A/c

1,464 948

Debtors 458 355 2 Reliance Capital Asset

Management Ltd. Fellow Subsidiary

Premium Received 7,680 13,523Claim Paid 445 138Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

1,418 2,473

Outstanding balance in CD A/c 1,087 649Debtors 73 219

3 Reliance Capital Trustee Co. Ltd.

Fellow Subsidiary


4 Reliance Equity Advisor (India) Ltd.

Fellow Subsidiary

Premium Received 478 19Outstanding balance in CD A/c 15 15

5 Reliance Home Finance Ltd.

Fellow Subsidiary

Reimbursement paid for expenses (Market Intelligent & Feedback)

- 17

Outstanding balance in CD A/c 25 25 6 Reliance Money Express

Ltd. Fellow Subsidiary

Premium Received 24 14Foreign Currency Purchased 1,778 625Outstanding balance in CD A/c 434 434

7 Reliance Securities Ltd. Fellow Subsidiary

Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

1,770 1,859

Premium Received 37 60Brokerage paid for stock exchange trading 31 40Claim Paid 10 -Debtors 500 155


53

S.No. Name of the Related Party

Relationship Nature of transaction For the Year ended March 31,

2014

For the Year ended March 31,

2013 8 Reliance Spot Exchange

Infrastructure Ltd. Fellow Subsidiary

Outstanding balance in CD A/c 22 22

9 Reliance Composite Insurance Broking Limited (w.e.f. October 18, 2011)

Fellow Subsidiary

Premium Received - 21Brokerage 20,635 14,847Creditors 62 972

10 Reliance Innoventures Pvt. Ltd.



11 Quant Capital Pvt. Ltd. Fellow Subsidiary


12 Quant Broking Private Limited

Fellow Subsidiary

Premium Received - 22Brokerage paid for stock exchange trading - 52

13 Reliance Wealth Management Limited

Fellow Subsidiary

Premium Received - 38

14 Reliance Big Broadcasting Private Limited

Fellow Subsidiary

Premium Received 35 -Debtors 474 474

15 Reliance Big Entertainment Private Limited

Fellow Subsidiary


16 Big Animation (India) Private Limited

Fellow Subsidiary


17 Reliance Communication Infrastructure Limited *

Fellow Subsidiary

Premium Received 98 603Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses

716 -

Payments towards Information and Technology Services

20,445 21,723


520 -

Purchase of Fixed Asset (Tablet) 2,198 383Creditors 78 793

18 Reliance Infratel Limited Fellow Subsidiary


19 Reliance Infocomm Infrastructure Private Limited

Fellow Subsidiary


2,970 1,043

Creditors 13,679 9,386 20 Shri Anil D. Ambani Person

having control



Remuneration 30,501 16,000Premium Received 14 17

Note: Related Party relationship is as identifi ed by the management and relied upon by the auditors.

* Expenses incurred towards public utilities services such as telephone and electricity charges have not been considered for related party transaction.


54

27. Segment Information for the year ended on 31st March 2014

a. Revenue and expenses have been identifi ed to a segment on the basis of relationship to the operating activities of the segment. Revenue and expenses, which relate to enterprise as a whole and are not allocable to a segment on reasonable basis, have been disclosed as “Unallocable”.


(` in '000)

Particulars Fire

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Segment Revenues:Premium2013-14 410,893 191,073 2,023 12,582,845 78,075 25,457 154,978 1,291 184,078 3,582,224 184,644 17,397,5812012-13 355,667 85,495 1,416 10,392,744 60,840 25,757 146,108 (1,314) 208,552 2,182,919 139,967 13,598,151Investment Income2013-14 167,446 36,627 1,428 2,499,094 7,519 25,897 68,061 2,781 26,236 442,310 110,076 3,387,4752012-13 124,529 20,562 485 1,400,882 5,665 21,104 62,768 1,686 16,477 218,507 59,328 1,931,993Misc. Income2013-14 - - - - - - - - - - (8,720) (8,720)2012-13 - - - - - - - - - - (2,110) (2,110)Total Segment Revenues2013-14 578,339 227,700 3,451 15,081,939 85,594 51,354 223,039 4,072 210,314 4,024,534 286,000 20,776,3362012-13 480,196 106,057 1,901 11,793,626 66,505 46,861 208,876 372 225,029 2,401,426 197,185 15,528,034Segment Expenses:Claims2013-14 365,492 180,092 (312) 11,482,857 28,919 16,665 174,118 2,064 152,822 3,529,917 103,586 16,036,2202012-13 207,203 11,0431 (221) 9,773,817 27,179 6,497 113,151 7,691 182,332 2,065,297 114,554 12,607,931Commission2013-14 (133,628) 25,853 (1,279) 648,204 5,820 (4,440) (88,315) (1,713) 4,592 641 (59,372) 396,3632012-13 (62,387) 1,3741 (117) 500,745 5,658 (6,495) (108,558) (3,026) 16,577 111,197 (18,328) 449,007Premium Defi ciency2013-14 - (20,900) - - - - - - - - - (20,900)2012-13 - 17,936 - - - - - - - - - 17,936Management Expenses2013-14 117,596 53,394 261 3,382,530 18,228 9,515 36,732 166 48,921 870,330 60,657 4,598,3372012-13 105,373 29,141 322 2,992,524 17,406 7,262 37,602 (333) 50,513 621,327 34,224 3,895,361Total Segment Expenses2013-14 349,460 238,439 (1,330) 15,513,597 52,967 21,740 122,535 517 206,335 4,400,889 104,871 21,010,0202012-13 312,576 157,508 101 12,766,341 44,585 13,759 150,753 7,358 232,845 2,686,624 148,778 16,521,228Net Profi t/(Loss)2013-14 228,879 (10,739) 4,781 (431,658) 32,627 29,614 100,504 3,555 3,979 (376,355) 181,129 (233,684)2012-13 230,007 (65,192) 1,917 (1,473,460) 16,262 39,597 166,681 (3,960) (24,393) (396,395) 66,735 (1,442,201)Unallocated itemsInvestment Income2013-14 874,0862012-13 800,228Provision/(Other Income)2013-14 (25,235)2012-13 277,589Expenses2013-14 24,8102012-13 8,130Net Profi t before tax2013-14 640,8272012-13 (927,692)Income tax


55

Particulars Fire

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Moto

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2013-14 -2012-13 -Net Profi t after tax2013-14 640,8272012-13 (927,692)Assets:Segment Assets2013-14 -2012-13 -Unallocated Assets2013-14 48,878,8962012-13 43,468,654Total Assets2013-14 48,878,8962012-13 43,468,654Liabilities:Segment Liabilities2013-14 740,555 275,262 1,672 32,762,784 70,606 60,722 283,432 2,116 257,513 2,030,607 449,797 36,935,0662012-13 571,914 181,609 24,114 29,021,124 65,374 33,517 225,403 1,463 228,653 1,787,572 372,892 32,513,635Unallocated Liabilities2013-14 3,460,0432012-13 3,172,016Shareholders Fund2013-14 8,483,7872012-13 7,783,003Total 2013-14 48,878,8962012-13 43,468,654

Notes:

a. Segment Reporting is made as per the modifi cation prescribed by the Insurance Regulatory and Development Authority Regulations wherein details are to be given for fi re, marine cargo, marine hull and eight classes of miscellaneous insurance

b. Since the company’s entire business is conducted within India, there are no reportable geographical segments for the year.

28. Summary of Financial Results:(` in '000)

Particulars FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10Operating ResultsGross Direct Premiums 23,888,249 20,100,052 17,215,473 16,554,216 19,796,515Net Earned Premium 17,397,581 13,598,151 11,630,872 12,938,039 13,992,484Income From Investment 3,387,475 1,931,993 1,427,425 1,091,724 1,030,071Other Income (8,720) (2,110) 4,829 1,045 1,180Total Income 20,776,336 15,528,034 13,063,126 14,030,808 15,023,735Commission (Net) including Brokerage 396,363 449,007 412,724 (225,156) (351,876)Operating Expenses 4,598,337 3,895,361 3,833,566 4,468,708 4,806,330Net Incurred Claims 16,036,220 12,607,931 15,658,686 13,313,814 11,856,942Change in unexpired risk reserve 1,232,033 1,809,743 208,497 (1,930,034) 294,736Operating Profi t/(Loss) (233,684) (1,442,201) (3,844,814) (3,526,558) (1,262,261)Non Operating Results


56

Particulars FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10Total Income under Shareholder’s Account

932,389 828,948 647,571 573,841 498,280

Profi t/(Loss) before tax 640,827 (927,692) (3,415,993) (3,097,593) (905,470)Provision for tax - - 16,000 18,424 (401,200)Profi t/(Loss) after tax 640,827 (927,692) (3,431,993) (3,116,017) (504,270)MiscellaneousPolicyholders’ AccountTotal Funds 29,943,368 25,061,691 20,180,364 15,544,875 9,064,638Total Investments 29,943,368 25,061,691 20,180,364 15,544,875 9,064,638Yield on Investments 9.26% 10.07% 11.39% 10.57% 8.34%Shareholders’ Account Total Funds 8,483,787 7,783,003 7,138,051 6,218,547 7,822,890Total Investments 8,483,787 7,783,003 7,138,051 6,218,547 7,822,890Yield on Investments 9.26% 10.07% 11.39% 10.57% 8.34%Paid up Equity Capital 1,227,750 1,227,750 1,211,933 1,166,729 1,152,239Net Worth 8,483,787 7,783,003 7,138,051 6,218,547 7,822,890Total Assets 48,878,896 43,468,654 30,749,895 25,416,341 26,003,787Yield on total Investments 9.26% 10.07% 11.39% 10.57% 8.34%Earnings Per Share (`) 5.22 (7.61) (29.24) (26.80) (4.46)Book Value Per Share (`) 69.10 63.82 59.52 53.27 68.66Total Dividend - - - - -Dividend Per Share (`) - - - - -



Gross Direct Premium Growth Rate

Net Retention Ratio



(Gross direct premium for the

current year divided by Gross direct premium for the previous year)

(Net premium divided by gross written premium)

(Gross commission paid net of

reinsurance commission divided

by net premium)

(Underwriting profi t divided by net

premium)

Fire 2013-14 6% 23% -28% 15%2012-13 45% 21% -15% 30%

Marine Cargo 2013-14 40% 55% 12% -36%2012-13 -30% 41% 12% -79%

Marine Hull 2013-14 131% 7% -121% 166%2012-13 -19% 19% -9% 101%

Motor 2013-14 12% 94% 5% -22%2012-13 14% 90% 4% -28%

Employer Liability 2013-14 4% 92% 8% 32%2012-13 30% 90% 8% 17%

Public Liability 2013-14 -4% 14% -12% 15%2012-13 104% 10% -23% 72%

Engineering 2013-14 -15% 19% -59% 21%2012-13 -6% 16% -73% 71%

Aviation 2013-14 30% 2% -254% 60%2012-13 -38% -6% 229% 430%

Personal Accident 2013-14 25% 69% 2% -12%2012-13 -13% 89% 8% -20%


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Gross Direct Premium Growth Rate

Net Retention Ratio



Health 2013-14 59% 75% 0% -23%2012-13 31% 83% 5% -28%

Other Miscellaneous 2013-14 46% 21% -24% 43%2012-13 44% 17% -14% 7%

Total 2013-14 19% 76% 2% -20%2012-13 17% 74% 3% -25%

30. Other Ratios:



Gross Direct Premium to Net worth Ratio

Gross direct premium for current year divided by paid up capital & free reserve

2.82 2.58

Growth Rate of Net worth Change in Net Worth during the period divided by net worth as at previous balance sheet date

9% 9%

Expenses of Management to Gross Direct Premium

Expenses of Management(operating expenses related to insurance business plus direct commission paid divided by gross direct premium)

24% 25%

Expenses of Management to Net written premium ratio

Expenses of Management(operating expenses related to insurance business plus direct commission paid divided by Net written premium)

31% 32%

Net Incurred Claims to Net Earned Premium

Net Incurred Claims divided by Net Earned Premium

92% 93%

Combined Ratio Net Incurred Claims divided by Net Earned Premium plus expenses of management (including net commission) divided by Net written premium

119% 121%


Reserve for un-expired risks plus premium defi ciency reserve plus reserve for outstanding claims(including IBNR and IBNER) divided by net premium

2.12 2.36

Operating Profi t Ratio Underwriting profi t/loss divided by net premium 0% -10%Liquid Assets to Liabilities Ratio (times)

Liquid assets(short term investment plus short term loan plus cash and bank balances of the insurer) divided by policyholders liabilities(claims outstanding plus reserve for unexpired risk and premium defi ciency)

0.24 0.25

Net Earnings Ratio Profi t after tax divided by net premium 3% -6%Return on net worth ratio Profi t after tax divided by net worth 8% -12%Available Solvency Margin (ASM) to Required Solvency Margin (RSM) ratio

Ratio of Available Solvency Margin (ASM) at the end of the Quarter to the Required Solvency Margin (RSM)

1.51 1.62

NPA Ratio - -

Note: The above ratios have been calculated as per IRDA Master Circular IRDA/F&I/CIR/F&A/231/10/2012 dated October 5th, 2012 and Corrigendum on Master Circular IRDA/F&I/CIR/F&A/126/07/2013 dated July 3rd, 2012


58




Profi t/(Loss) available to equity shareholders (Rs in ‘000) 640,827 (927,692)Weighted Average number of equity shares outstanding during the year 122,774,960 121,981,977Basic earning per share (`) 5.22 (7.61)Diluted earning per share (`) 5.22 (7.61)

32. Forward contracts entered and outstanding as on March 31, 2014 is Rs 4,692 thousand (Previous year Nil)

33. Prior year fi gures have been reclassifi ed, wherever necessary, to conform to current year’s presentation.


D. Sengupta H. AnsariDirector Director

Rajendra Chitale Soumen GhoshDirector Director

Rakesh Jain Hemant K. JainExecutive Director and CEO Chief Financial Offi cer




59

Notes


60

Notes

Prin

ted

by: w

ww.

wes

tern

pres

s.in


1

BOARD OF DIRECTORSMr. S. P.Talwar Director

Mr. D. Sengupta Director

Mr. Rajendra P. Chitale Director






BANKERSHDFC Bank limited

ICICI Bank Limited

HSBC

Citi Bank

SBI

IDBI Bank

Yes Bank


M/s Pathak H. D. & Associates




CORPORATE OFFICE570, Rectifier House,

Naigaum Cross Road,



Tel. : +91 - 22 - 30479600

Fax : +91 - 22 - 30479650


LONDON REPRESENTATIVE OFFICEC/o Reliance Globalcom Limited,



Middlesex - UB7 OJE,

Tel.: 020 82824665

13th Annual Report

INDEx Page No.(s)


Directors' Report 2



Auditors' Report 20

Revenue Accounts 23

Profit & Loss Account 26

Balance Sheet 27

Schedules annexed to Balance Sheet, Revenue Account and Profit & Loss Account

28


Accounting policies and Notes to Accounts

40


2


Your Directors present the Thirteenth Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2013.

Financial Results (` in crore)Particulars Year ended 31st March, 2013 Year ended 31st March, 2012

Gross Direct Premium 2,010.01 1,712.55Insurance Profit/(Loss) (144.22) (384.48)Investment Income on Shareholders fund 80.02 62.82Profit/(Loss) before Tax (92.77) (341.60)Provision for Deferred Tax - (1.60)Profit/(Loss) after Tax (92.77) (343.20)

Dividend

Your Directors do not recommend any dividend for the year ended 31st March, 2013, in view of loss incurred during the year.

Operations

Your Company in the current year has underwritten Gross Direct Premium of ` 2,010.01 crore as against ` 1,712.55 crore in the previous year registering an increase by 17.37%. The main focus during the year was again to improve the profitability of the Company.

The income from investments for the year under review is ` 273.22 crore as against ` 201.58 crore in the previous year. The Net Loss before tax earned during the Financial Year 2012-13 is ` 92.77 crore as against ` 341.60 crore during the previous year. The Net Loss after tax stands at ` 92.77 crore during the period under review as against loss of ` 343.20 crore during the previous year. Indian Motor Third Party Insurance Pool losses accounted in the current year is ` 95.28 crore as against ` 216.97 crore in the previous year.

During the year the Company has undertaken various initiatives to improve its performance. The key initiatives implemented are reduction in usage of manual covernotes, recruitment of agents, implementation of in house health claims management for retail health claims, revision in the premium pricing based on analytics, significant increase in commercial line portfolio etc. All these initiatives will help the Company in long run.

Your Company had issued 28.96 Lac policies during the year as compared to 26.14 Lac in the previous year.

Industry Developments

As per the figures released by Insurance Regulatory and Development Authority (IRDA), the Gross Premium Underwritten by the industry for the Financial Year ended 31st March, 2013 was ` 69,081 crore as against ` 58,120 crore during the previous year showing growth rate of 19%.

Despite there being large number of players, the market is still under penetrated. The urban market is the major contributor for general insurance. Though the rural market does not have any significant contribution to this sector, it is growing rapidly over the past few years and is slowly becoming a huge potential market for general insurance in India. To capture the rural market, industry is adopting strategies to increase awareness levels among the people. This can be achieved through increasing the distribution levels and access points. Business generation through multiple distribution channels is the main agenda for these Companies.

On the property and liability insurance segments niche marketing and competition for small and medium size Companies would be the challenge. Project-insurance sector will continue to be the major work-horse; with continued economic development spurring investment in power sector, manufacturing and other industries, roads and buildings. Insurers with right technical support and adequate capacity would be able to benefit from this segment.

Health insurance is poised to record a significant growth in India in the coming years. Large number of the country’s population is expected to come under the health insurance umbrella in the next few years.

Another area of opportunity is the government initiatives in health and Personal Accident covers for the populace. Rashtriya Swasthya Bima Yojana (RSBY) schemes and Group Personal Accident covers sponsored by State and Central Governments are providing huge opportunities to insurers.


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Online selling of insurance policies to discerning customers, who access the Internet has gained momentum. Typically motor, travel and health policies are being sold more online. Many insurers have already realised this and are creating separate verticals to exploit this segment. The interplay of technology and telecom will be a major factor determining the growth of the industry in future.

The Honorable Finance Minister in his budget speech for the year 2013-14 has made an announcement that Banks will be permitted to act as Insurance Brokers so that the entire network of Bank Branches will be utilized to increase penetration. The Rashtriya Swasthiya Bima Yojana covers 34 million families below the poverty line. It will now be extended to other categories such as rickshaw, auto-rickshaw and taxi drivers, sanitation workers, rag pickers and mine workers.

The premium rates in case of Motor Third Party have been increased. The increased premium rates were applicable from 1st April, 2013. Increase in the premium has been done to reduce the losses suffered by the Insurance Companies.

Corporate Governance

IRDA has issued comprehensive guidelines on Corporate Governance for adoption by the Insurance Companies. These guidelines were effective from 1st April, 2010. The objective of these guidelines is to ensure that the structure, responsibilities and functions of the Board of Directors and senior management of the Company fully recognize the expectations of all stakeholders as well as those of the regulator. Your Company’s philosophy on Corporate Governance envisages the attainment of highest levels of transparency, accountability and equity, in all facets of its operations and in all interactions with its stakeholders, including shareholders, employees, the Government and the society. A separate Corporate Governance Report is presented in a separate section which forms part of the Annual Report. As required under the Corporate Governance Guidelines certificate from the Compliance Officer of the Company certifying that the Company has complied with the Corporate Governance Guidelines, also forms the part of the Annual Report.

Reinsurance

Your Company has a well structured Reinsurance Program supported by various leading reinsurers (with strong credit ratings) spread across the globe, in accordance with the guidelines laid down by Insurance Regulatory and Development Authority. The Reinsurance Programme has been renewed and placed completely with reinsurers with approved credit rating. The Reinsurance Program has an optimum mix of proportional treaties to enhance Company’s automatic underwriting capacity and non proportional treaties to protect Company’s net retentions.

Based on Company’s net worth, business plans, portfolio mix and detailed analysis of Company’s historical data retention levels have been optimally fixed to ensure a healthy solvency margin, stability in financial results, minimum volatility in earnings and generate value to stakeholders. Your Company would also like to emphasize on the Company’s preparedness for catastrophic events by regularly monitoring exposures, assessing accumulations through various statistical CAT modeling tools and having adequate protection in place.

Information Technology

Last Financial Year witnessed rapid developments in IT to facilitate all aspects of business, from Retail and Commercial Underwriting and Claims, Distribution, Risk & Compliance, HR and Employee engagement. On the IT infrastructure side, technology refresh projects were run to weed out old desktops and laptops. The e-mailing solution and employee productivity applications were moved to cloud based solutions from Google.

Main IT objectives lined up at the start of the Financial Year and the achievements are as highlighted below:

Paper-based to Paper-less policy issuance: Usage of Covernotes for Motor was drastically reduced by moving Agents and other Channel partners to use Portal and POS systems. Electronic Covernotes or Policies are issued on-the-spot and can also be emailed to Customers. The policies come with security features like Digital Signature and 2-Dimensional barcodes which make them difficult to tamper with. Apart from generating policies, Agents get a rich set of reports and alerts on their business sourcing, renewal notices and claim status checks. Another new initiative was to use Mobile devices (Tablets) to issue Retail policies on the field, including collection of online payment using a Credit / Debit card swipe dongle which can be attached to the Tablets. This was first piloted in the Direct Sales team and roll-outs to Agents in under progress.

Commercial Underwriting, Claims & Reinsurance: Genisys Configurator from CMC is being implemented. Engineering, IAR and Fire SFSP products has been rolled out. Treaty program for the Financial Year is setup and Reinsurance apportionments are carried out in this application.

CRM, Business Intelligence (BI): A new CRM application ICE (Integrated Customer Engagement) was launched to provide multi-channel customer servicing capabilities to Call Center and Branches. Several BI dashboards were added for tracking key business metrics.


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Technology refresh: Old Desktops are getting replaced using a Virtual Desktop technology whereby all user data and applications will be stored in a centralized data center. This helps in giving better application performance, up to date applications and antivirus controls and reduces the risk of data leakage.

Personnel

In 2012-13 through 273 Training Programs, there were 3,341 participation from our employees, clocking about 3723.41 man days of training. This was achieved through a paradigm shift in analyzing training needs of our employees. Apart from attending specialized training programs at training institutes our employees attended both at the product as well as soft skill programs conducted in-house and at various locations. Focus was more on Non Motor Training and training to agents over and above our employees. Programs such as LITE (Learn, Implement, Train & Enhance Productivity) and KEP’s (Knowledge Enhancement Programs) were conducted for Sales Managers and BSM’s to strengthen their Non-motor subject knowledge and give them the winning edge in today’s competitive market. For women employees a two day program called Fempower was facilitated to assist fine tune their balance between work and home. Leadership workshop was conducted for the zonal level team leaders in various functions to help them visit and share best practices and effective leadership skills required in the current environment. For our office Managers and Agency Development Managers a two day program ACE (Achieving Comprehensive Excellence) was specially designed to groom their skills on Non-Motor products & on Behavioral Skills. To help employees in the E1 to E4 grade get answers to their questions on – Business Etiquettes, E-mail Etiquettes, Time Management & Effective Communication, BET (Business Etiquettes & Time Management) program was conducted. For the new agents, WIN (Welcome & Induction) a special induction program was created to induct the new agent into Company’s fold and expose them to RGI as a brand and train them on Company’s wide range of product baskets. Over 1400 Agents were trained through various programs including WIN. For effective communication among the employees in their team, PowerTalk a one day Customized Communications Skills enhancement program catering to Sales, Operations teams and non sales employees was conducted. To help an employee manage himself best according to any situation a special workshop on Emotional Intelligence (EI) called EEM (Effective Emotion Management) was conducted.

Investments

The investment portfolio of the Company as on 31st March, 2013 is ` 3,257.80 crore (` 2,709.70 crore). The market value of the same is ` 3,271.24 crore (` 2,651.63 crore). The asset allocation among Debt and Equity is 97.93% (98.10%) and 2.07% (1.90%) respectively. The modified duration of the Debt portfolio stands at 3.47 years (3.02 years). The Debt portfolio comprises 31.45% (31.14%) in Sovereign Bonds – approved securities, 35.37% (37.39%) in AAA, 8.14% (3.05%) in AA+, 4.44% (0.76%) in AA/AA- rated and the remaining 20.59% (27.66%) in money market instruments and Fixed Deposits.

The income for the whole year was at ` 272.31 crore. The income from overall portfolio translated into a return of 8.91% from average total assets of ` 2997 crore debt and ` 59.79 crore equity. The MTM gain in debt has improved to positive ` 18.74 crore from ` 6.14 crore a quarter earlier and (-) ` 50.49 a year earlier. Similarly the MTM deficit in equity improved from (-) ` 5.29 crore against (-) ` 7.58 crore a year earlier.

Claims handling

Motor:

In the year 2012-13, the Motor Claims Department have disposed 140,602 claims against an intimation of 138,770 .

The Company has achieved a disposal ratio of 101.32% in the year.

The various initiatives taken in the claim process and settlement are as detailed below:

1. Provider Management:

The Company has added 211 garages to cashless list spreading the network to 2399 which would help a customer get a cashless claim leading to more satisfaction in claim settlement.

2. OperatingEfficiency:

(a) Claim status tracker and Claim Procedure are available on Interactive Voice Response [IVR] at our toll free number.

(b) Direct claim intimation through website allowed to Cashless network garages to facilitate a faster claim intimation.

(c) Claim cheque dispatch details and detailed breakup of claim amount have been added to the website view.

(d) Call centre bandwidth has been efficiently redistributed to serve other customer’s requests due to reduced dependence on them on account of the three initiatives listed above.

(e) The Company has initiated joint efforts with police authorities and other agencies and has recovered 596 stoles vehicles this year.


5

Health:

FY 2012-13 has been extremely eventful in terms of extending the Health Service umbrella and bolstering the consistent service delivery to our valued Health Insurance Customers.

The service architecture is strengthened by means of:

a. Centralization of the Health & Accident Claims Team at Hyderabad in July 2012.

b. Dedicated Customer Relationship team focused on Customer engagement, guidance and education.

c. Extensive and widely spread provider network with more than 3800 Hospitals, 65 Diagnostics Centers, 2000+ retail pharmacies and comprehensive Health & allied services network.

d. Exclusive team venturing into various Wellness programs for Corporate.

e. TPA Management & Corporate Relationship team – with zonal presence, ensuring Controls at the TPA operations and Corporate Client servicing.

A few initiatives that have aided….

a. A successful completion of Six Sigma Project towards Optimization of Health Claims TAT.

b. Enhanced and Proactive Customer Connect across Claims Cycle in form of SMS/E-Mails and Personalized Calling.

c. Special Monitoring of all deficient cases supported with guidance towards timely resolution.

d. End to End tracking of Claims payments.

e. Dedicated team to channelize the provider contracts repository & analyzing the provider tariffs.

Process&Certification

The annual periodic audits by DNV (Det Norske Veritas) were conducted in July 2012 to verify the adherence to the Quality Management System (QMS) requirements as per ISO 9001:2008 standard. Annual internal Business Process Management Systems audits have been completed between January 2013 to March 2013.

The Company has also won 1st prize in RCAP’s Best Lean Six Sigma Award contest in Category A - Service Quality Improvement for Customers / Distributors held in February 2013. This is the 2nd consecutive year for winning an award in this category. The Company has also won RCAP’s Company level award for most “Innovative Idea” in H1.

The Company was also nominated finalists at SCMHRD Lean Six Sigma Excellence Awards Contest and were called for a presentation to Quality Council of India (QCI) for D.L.Shah National Awards on Economics of Quality.

Awards and Recognition

The Company has won the prestigious award of “Risk Management – Service Provider of the Year” as part of Global Risk Awards, 2013, by The Institute of Risk Management, UK. The Company is the only Indian Company amongst various award categories that has won the award. Competitors in the grand finale for the above award were AON-UK, Marsh Risk Consulting-UK, Stratex Systems-UK & Zurich Risk Engineering- UK. The award was given in recognition of the best in service delivery among those that supply any risk management services to the industry i.e. best in class in providing risk management services to customers.The organizer, The Institute of Risk Management (IRM) is the world’s leading enterprise-wide risk education Institute. The IRM is an independent, well-respected advocate of the risk profession, owned by practising risk professionals operating internationally, with members and students in over 100 countries, drawn from a variety of risk-related disciplines and a wide range of industries.The Institute of Risk Management’s Global Risk Awards are among the most prestigious in the profession. They recognise and reward excellence in risk management, and enable the organisation to celebrate outstanding achievements. The awards provides an excellent platform for organisations to showcase achievements. The leading international education body in risk management, IRM is uniquely placed to recognise and reward risk management excellence across the globe.Eminent experts from various parts of the World have involved in finalizing the winners. Their main criterion was focused on the range of practical qualities required for risk management excellence in today’s world. A panel of 29 leading risk management professionals from 16 countries across five continents judged the finalists.

Customer Service and Grievances Redressal Cell

To capture the customers experience the Company has built a pop up window on the main page of our portal that gives us approximately 250 feedbacks on a monthly basis. This information is shared on a real time basis with the vertical heads for analysis and corrective action.


6

This page also provides for customer survey which enables them to rate the Company. This website has received 1000 surveys with 76% of customers giving a positive response. The Company has acted on this survey rating and have taken necessary corrective steps.

The website portal is now integrated with CRM (Customer Relationship Management) now called as ICE (Integrated Customer Engagement) to enable customers to create service requests and also view their policy and claim details online.

Towards Customer Grievance Handling for Financial Year 2012-13, the Company had invested in the new CRM (Customer Relations Management) system called ICE. This was seamlessly integrated with the Integrated Grievance Management. Our processes and controls have significantly improved with the result. The number of customer complaints has come down from 10,226 (to 7,451 registering a 27% drop). On resolution of grievances the Company has been consistently operating with lower resolution time as compared with the Industry and on 31st March, 2013 as per data extracted from the Integrated Grievance Management Systems (IGMS) of IRDA the average resolution time for the industry stood at 5.74 days and the Company has recorded 4.29 days.

Some of the new initiatives undertaken this year to enhance customer service are:

1) SMS on dispatch of policy.

2) Increase utilization of NEFT transfer for claim cheque to avoid loss in transit.

3) Addition log in/Channel for workshop/garages who as a service provider can intimate claims.

4) The Company had undertaken a substantial number of projects to increase overall efficiency and customer satisfaction. In this regard the Company has closed 37 Six Sigma projects and an additional number of 49 projects are ongoing for the current Financial Year.

Allotment of Shares

During the year under review your Company has allotted on rights basis to Reliance Capital Limited, the holding Company 1,581,632 Equity shares of ` 10/- each at a premium of ` 970 per share, aggregating to ` 155 crore.

Fixed deposit

The Company has not accepted any public deposit during the year.

Insurance Regulatory and Development Authority (IRDA) Registration

The certificate of Registration from the Insurance Regulatory and Development Authority was renewed for the year 2013-14. The Company has received certificate Registration number 103 dated 8th February, 2013 from IRDA.

Directors

Mr. S. P. Talwar and Mr. Soumen Ghosh, Directors of the Company retires by rotation and being eligible offers them self for re-appointment at the ensuing Annual General Meeting. During the year Mr. Vijay Pawar ceased to be Director of the Company w.e.f. 31.10.2012. Board places on record its deep sense of appreciation for the valuable services rendered by Mr. Vijay Pawar during his tenure as Director.

Directors’ Responsibility Statement

Pursuant to the Directors’ Responsibility Statement as required under Section 217(2AA) of the Companies Act, 1956 and Insurance Regulatory and Development Authority Act, 1999, it is hereby confirmed that:

1. in the preparation of the accounts for the Financial Year ended 31st March, 2013 the applicable accounting standards have been followed along with proper explanation relating to material departures;

2. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 loss of the Company for the year under review;

3. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 and Insurance Act, 1938 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the Directors have prepared the accounts for the Financial Year ended 31st March, 2013 on a ‘Going Concern’ basis.

5. an internal audit system commensurate with the size and nature of the business exists and is operating effectively.


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Auditors and Auditors’ Report

M/s. Pathak H.D. & Associates, Chartered Accountants, and M/s. Singhi & Company, Chartered Accountants, Joint Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting.

The Company has received letters from M/s. Pathak H.D. & Associates and Singhi & Company, Chartered Accountants, to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1-B) of the Companies Act, 1956 and also that they are not otherwise disqualified within the meaning of subsection (3) of Section 226 of the Companies Act, 1956, for such appointment.

The notes to the accounts referred to in the Auditors’ Report are self-explanatory and, therefore do not call for any comments.

Particulars of Employees

As required by the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (particular of Employees) Rules, 1975 as amended up to date, the name and other particulars of the employees is set out in the annexure to the Directors Report.

Conservation of Energy, Technology Absorption and Foreign Exchange earnings and Outgo

Particulars required to be furnished by the Companies (Disclosure of particulars in the report of the Board of Directors) Rules, 1988 are as follows:-

1. Part A and B pertaining to conservation of energy and technology absorption are not applicable to the Company.

2. Foreign exchange inflow and outflow : (` in crore)

Inflow : On Reinsurance 16.94On Claims NilOn Premium 20.99On Others Nil

Outflow : On Reinsurance 58.92On claims 3.66On Premium NilOn Others 0.37

Acknowledgement

Your Directors wish to place on record their immense appreciation for the assistance and cooperation received from Insurance Regulatory and Development Authority, Reserve Bank of India and other statutory authorities.

Your Directors appreciate the support received from policyholders and intermediaries and reinsurers.



S. P. Talwar Chairman

Place: MumbaiDated: May 3, 2013


8

Report on Corporate Governance

1. Philosophy on Corporate Governance

The Company has always maintained the highest standards of Corporate Governance. The principles which are set in corporate governance policy are disclosure, fairness, independence, transparency, accountability, responsibility, social responsibility, compliances and ethical standards. The Company strives to achieve its mission in the light of these corporate governance principles. These principles are not just words but are strictly followed in its true and strict sense in day to day working of Company. The Company has also framed a strong whistle blowing mechanism where employees without hesitation can raise concern or report a possible breach of law or regulation with appropriate measures to protect against retaliation against reporting employees. Timely disclosure on all material matters regarding the Company, including the financial situation, performance, ownership and governance arrangements, is part of a corporate governance framework. It also includes Compliance with legal and regulatory requirements. The presence of an active group of Independent Directors on the Board contributes a great deal towards ensuring confidence of the customers and stakeholders. The Company has laid emphasis on the cardinal values of fairness, transparency and accountability for performance at all levels, thereby enhancing the shareholders’ value and protecting the interest of the stakeholders.





4. To promote the interest of all stakeholders including customers, shareholders, employees, lenders, vendors & the community.






The composition of Board of Directors of the Company is as follows;

1. Mr. S. P. Talwar

2. Mr. D. Sengupta


4. Mr. H. Ansari

5. Mr. Soumen Ghosh


Mr. Vijay Pawar, ceased to be a Director of the Company w.e.f. 31.10.2012. Out of the six Directors, four Directors are Independent Directors. As per the Corporate Governance guidelines issued by IRDA, your Company has constituted the Mandatory Committees viz. Audit Committee, Investment Committee, Policyholders Protection Committee & Risk Management Committee.

3. Audit Committee

Your Company has constituted an Audit Committee pursuant to the provisions of Section 292 A of the Companies Act, 1956 & IRDA Corporate Governance regulations. The Audit Committee comprises of Mr. S. P. Talwar, Director, Mr. D. Sengupta, Director and Mr. Soumen Ghosh, Director. Audit Committee inter alia advises the management on the areas where systems, process, internal audit, risk management can be improved. The minutes of the meeting of the Audit Committee are placed before the Board for review. Audit Committee recommends to the Board, appointment and remuneration of Auditors of the Company. Audit Committee had discussions with Statutory Auditors before the audit commences about the nature & scope of audit as well as post audit discussions for addressing areas of concern.


9


Your Company has constituted an Investment Committee pursuant to the requirement of Corporate Governance Guidelines of IRDA. Presently the Committee consists of Mr. S. P. Talwar, Mr. Soumen Ghosh, Mr. Rakesh Jain, Mr. Hemant Jain, Mr. K. Ramkumar & Mr. Gopalkrishna Pai. The Investment Committee decides on the Investment Policy of the Company and reviews the Investment decisions taken by the Company. Report on Investment performance and Investment Portfolio is also placed before the Board for review.


Your Company has also constituted Policyholders Protection Committee as required under Corporate Governance Guidelines of IRDA. At present the Committee consists of Mr. S. P. Talwar, Mr. Soumen Ghosh, Mr. Rakesh Jain, & Mr. Mukul Kishore. The Committee reviews and monitors customer grievances on regular basis. Report of the Policyholders Protection Committee is also placed before the Board of Directors for review. The Company has Grievance Redressal Policy which is approved by the Board of Directors.


Your Company has also constituted Risk Management Committee for monitoring all the risks across the various lines of business of the Company. Presently the Committee consists of Mr. D. Sengupta, Mr. Soumen Ghosh, Mr. Rakesh Jain, Mr. Mukul Kishore, Mr. Mohan Khandekar, Mr. Hemant Jain, Mr. K. Ramkumar & Mr. Sudarshanam Sundararajan.

In addition to the above, the Company has also constituted Non Mandatory Committees viz. Committee of Executives (Investments), Asset Liability Management Committee, Nomination Committee, Ethics Committee.

As required under clause 5.4 of the Corporate Governance guidelines dated 5.8.2009, details of number of meetings held of the Board of Directors & Committees in the Financial Year & details of composition of the Board & Committees and meetings attended by the Directors etc. are enclosed as Annexure I & II forming part of this report.

7. ComplianceOfficer

Mr. Mohan Khandekar, Deputy Vice-President & Company Secretary, is the Compliance Officer of the Company for complying with the requirements of IRDA regulations.

CertificationforcomplianceoftheCorporateGovernanceGuidelines


Mohan Khandekar Deputy Vice President & Company Secretary


10

ANNEXURE I FORMING PART OF CORPORATE GOVERNANCE REPORTDETAILS OF NUMBER OF MEETINGS HELD, ATTENDED, COMPENSATION PAID ETC. DURING FINANCIAL YEAR 2012-13

BOARD MEETING



Mr. S. P. Talwar 4 4 80,000

Mr. D. Sengupta 4 1 20,000

Mr. Rajendra Chitale 4 4 80,000

Mr. H. Ansari 4 4 80,000



Mr. Vijay Pawar (ceased to be Director w.e.f. 31.10.2012)

4 2 40,000




Mr. S. P. Talwar 4 4 80,000







Mr. S. P. Talwar 4 4 80,000




Mr. Gopalkrishna Pai 4 4 Nil

Mr. K. Ramkumar 4 4

AUDIT COMMITTEE



Mr. S. P. Talwar 4 4 80,000




11












COMMITTEE OF EXECUTIVES ( INVESTMENT)








ASSET - LIABILITY MANAGEMENT COMMITTEE










12

ANNEXURE II FORMING PART OF CORPORATE GOVERNANCE REPORT

POLICYHOLDERS PROTECTION COMMITTEE

Name Qualification Field of Specialization CategoryMr. S. P. Talwar B.A., LLB, CAIIB Banking & Finance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, Fellow of Insurance


INVESTMENT COMMITTEEName Qualification Field of Specialization Category

Mr. S. P. Talwar B.A., LLB, CAIIB Banking & Finance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. Hemant Jain Chartered Accountant Finance EmployeeMr. K. Ramkumar B.Sc (Chemistry), ICWA,

Diploma in Business Finance from ICFAI, Hyderabad


Mr. Gopalkrishna Pai FIAI Appointed Actuary Appointed Actuary

AUDIT COMMITTEEName Qualification Field of Specialization Category

Mr. S. P. Talwar B.A., LLB, CAIIB Banking & Finance Independent DirectorMr. D. Sengupta B.Sc, Post Graduate Diploma


Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive Director

BOARD OF DIRECTORSName Qualification Field of Specialization Category

Mr. S. P. Talwar B.A., LLB, CAIIB Banking & Finance Independent DirectorMr. D. Sengupta B.Sc, Post Graduate Diploma


Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rajendra Chitale Chartered Accountant Finance & Insurance Independent DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. H. Ansari Post Graduate in Science Insurance Independent Director

NOMINATION COMMITTEEName Qualification Field of Specialization Category

Mr. S. P. Talwar B.A., LLB, CAIIB Banking & Finance Independent DirectorMr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEO


13

ETHICS COMMITTEEName Qualification Field of Specialization Category

Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting Employee

RISK MANAGEMENT COMMITTEEName Qualification Field of Specialization Category



Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Mohan Khandekar M.Com, LLB, ACS Company Secretarial and

Legal MattersEmployee

Mr. Hemant Jain Chartered Accountant Finance EmployeeMr. Sudarshanam Sundararajan


Employee

Mr. K. Ramkumar B.Sc (Chemistry), Diploma in Business Finance from ICFAI, Hyderabad, ICWA


COMMITTEE OF EXECUTIVE (INVESTMENTS)Name Qualification Field of Specialization Category

Mr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Hemant Jain Chartered Accountant Finance EmployeeMr. Sudarshanam Sundararajan


Employee

Mr. K. Ramkumar B.Sc (Chemistry), Diploma in Business Finance from ICFAI, Hyderabad, ICWA


ASSET LIABILITY MANAGEMENT COMMITTEEName Qualification Field of Specialization Category

Mr. Soumen Ghosh Chartered Accountant Finance & Insurance Non - Executive DirectorMr. Rakesh Jain Chartered Accountant, ICWA Insurance, Finance Executive Director & CEOMr. Mukul Kishore B.Tech, FIII Underwriting EmployeeMr. Hemant Jain Chartered Accountant Finance EmployeeMr. K. Ramkumar B.Sc (chemistry), Diploma in

Business Finance from ICFAI, Hyderabad, ICWA


Mr. Sudarshanam Sundararajan

B.E. (Mech) AIII Project Insurance, Risk Management

Employee


14

MANAGEMENT REPORT AS ON 31ST MARCH, 2013 1) We confirm that the validity of the registration granted by Insurance Regulatory & Development Authority has not

expired.


3) We confirm that shareholding pattern is in accordance with the statutory and regulatory requirements.


5) We confirm that the required solvency margins have been maintained.

6) We certify that the values of all the assets have been reviewed on the date of the Balance Sheet and that in the best of our belief, the assets set forth in the Balance sheet are shown in the aggregate at amounts not exceeding their realisable or market value under the headings “Investments other than debt securities”, “Agents balances”, “Outstanding Premium”, “Interest and Dividends accrued but not due”, “Balances due from other entities carrying on insurance business”, “Other Advances”, “Advances to Staff”, “Deposits” and “ Cash”.

7) The Company is exposed to various risks related to its insurance operations and financial risks related to its investment portfolio. The operational & financial risks are being closely monitored and being actively managed. The exposure to the insurance operations is managed by implementing underwriting controls and risk transfer through adequate reinsurance arrangements. Catastrophe risk exposure has been analyzed and accumulation is being monitored. Risk models have been also been used on our accumulation to get an estimate and the reinsurance protection has taken to limit our exposure to any one event to an acceptable limit.


8) We have no operations in any country outside India, except representative office at London.

9) The Company has a separate internal audit team which audits the operations at its offices.

10) We certify that the investments have been valued as per the Accounting Regulations of the IRDA and shown in the Balance Sheet. The market value of investments has been arrived at as per the guidelines given by the Insurance Regulatory and Development Authority based on quoted market price wherever available and based on the market yield for rated securities not quoted and at book value for securities which do not have rating. The investment portfolio is also diversified within limits set under the IRDA regulations.

11) Ageing analysis of claims outstanding and average claims settlement time for the five years.

Ageing of Claim Outstanding:-

FY 2012-13

(` in 000)Period / Class Fire Marine Cargo Marine Hull Motor OD

Ageing Count Amount Count Amount Count Amount Count Amount30 days 102 233,153 81 23,645 1 762 4,838 295,02331 days to 6 Months 95 239,330 128 41,628 - - 6,597 874,4166 Months to 1 Year 58 360,188 49 16,432 - - 1,672 330,6311 Year to 5 Years 110 401,783 109 173,743 4 7,174 2,864 376,0885 Years and Above - - - - - - - -Grand Total 365 1,234,454 367 255,448 5 7,936 15,971 1,876,158


15

(` in 000)

Period / Class Motor-TP Engineering Liability Public LiabilityAgeing Count* Amount Count Amount Count Amount Count Amount

30 days 573 264,018 48 27,691 22 1,661 9 1,92831 days to 6 Months 2,779 1,485,066 142 152,370 45 13,209 38 6,0796 Months to 1 Year 2,807 1,789,199 175 217,270 6 1,551 4 1,3201 Year to 5 Years 15,653 7,182,245 116 224,215 - - 70 15,7085 Years and Above - - - - - - 2 1,536Grand Total 21,812 10,720,528 481 621,546 73 16,421 123 26,571

(` in 000)Period / Class Health Aviation Personal Accident All Other Misc Total

Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 57,081 185,704 - - 174 14,513 103 28,885 63,032 1,076,98331 days to 6 Months 208,609 145,578 1 2,328 640 45,288 331 96,829 219,405 3,102,1216 Months to 1 Year 28,729 64,449 7 1,506 413 25,099 333 103,749 34,253 2,911,3941 Year to 5 Years 927 60,617 7 729,697 644 39,382 875 126,804 21,379 9,337,4565 Years and Above - - - - - - - - 2 1,536Grand Total 295,346 456,348 15 733,531 1,871 124,282 1,642 356,267 338,071 16,429,490

(*Excluding Claim Count on Motor Pool Policies)FY 2011-12

(` in 000)Period / Class Fire Marine Cargo Marine Hull Motor OD

Ageing Count Amount Count Amount Count Amount Count Amount30 days 60 60,988 142 14,741 1 25 5,159 293,92531 days to 6 Months 117 454,117 151 71,287 2 549 6,469 773,1106 Months to 1 Year 79 356,185 58 140,275 4 1,299 1,160 203,9351 Year to 5 Years 61 331,333 22 34,238 2 5,408 218 67,9685 Years and Above 1 2,735 - - - - - -Grand Total 318 1,205,358 373 260,541 9 7,281 13,006 1,338,937

(` in 000)

Period / Class Motor-TP Engineering Liability Public LiabilityAgeing Count Amount Count Amount Count Amount Count Amount30 days 1,012 129,022 39 31,165 12 1,665 - -31 days to 6 Months 3,840 499,643 109 204,529 35 6,567 12 3,8256 Months to 1 Year 3,568 338,949 86 195,178 17 9,562 13 2,9311 Year to 5 Years 12,292 915,131 54 220,807 29 6,245 21 2,8965 Years and Above - - - - - - - -Grand Total 20,712 1,882,745 288 651,679 93 24,038 46 9,652

(` in 000)Period / Class Health Aviation Personal Accident All Other Misc TotalAgeing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 84,530 99,634 9 1,623 228 29,590 127 33,691 91,319 696,06931 days to 6 Months 74,289 74,012 - - 479 43,117 418 134,397 85,921 2,265,1526 Months to 1 Year 81 7,341 2 100 86 9,864 20 14,777 5,174 1,280,3951 Year to 5 Years 24 1,745 10 924,177 13 12,047 49 22,879 12,795 2,544,8735 Years and Above - - - - - - - - 1 2,735Grand Total 158,924 182,731 21 925,900 806 94,618 614 205,744 195,210 6,789,225


16

FY 2010-11(` in 000)



(` in 000)Period / Class Motor-TP Engineering Liability Public Liability

Ageing Count Amount Count Amount Count Amount Count Amount30 days 964 119,642 70 25,212 15 875 - -31 days to 6 Months 3,672 322,787 184 134,673 46 2,733 1 836 Months to 1 Year 3,927 204,117 130 270,031 41 6,570 2 521 Year to 5 Years 12,215 685,914 110 184,026 24 3,414 10 2,8505 Years and Above - - - - - - - -Grand Total 20,778 1,332,460 494 613,942 126 13,593 13 2,984


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 3,308 67,100 1 20 191 11,617 125 11,854 11,243 473,47431 days to 6 Months 2,932 80,011 7 6,562 420 35,408 233 26,077 13,254 1,391,8316 Months to 1 Year 524 41,663 5 1,243,360 87 8,009 99 20,491 6,245 2,292,1701 Year to 5 Years 510 18,355 - - 19 11,841 76 49,422 13,495 1,403,9435 Years and Above - - - - - - - - - -Grand Total 7,274 207,129 13 1,249,941 717 66,875 533 107,843 44,237 5,561,418

FY 2009-10(` in 000)


30 days 170 78,697 112 19,878 4 619 15,158 310,57831 days to 6 Months 262 419,602 240 41,028 6 7,333 17,670 529,0706 Months to 1 Year 125 132,266 122 46,945 3 945 2,856 166,1501 Year to 5 Years 107 188,666 37 65,175 4 51,976 91 17,4045 Years and Above - - - - - - - -Grand Total 664 819,231 511 173,027 17 60,872 35,775 1,023,202

(` in 000)Period / Class Motor-TP Engineering Liability Public Liability

Ageing Count Amount Count Amount Count Amount Count Amount30 days 836 12,087 131 35,056 21 3,162 - -31 days to 6 Months 4,227 97,049 353 258,829 52 6,436 6 1,5656 Months to 1 Year 4,409 170,531 109 179,678 30 3,854 2 2111 Year to 5 Years 10,740 676,286 43 100,113 9 863 30 2,4285 Years and Above - - - - - - - -Grand Total 20,212 955,954 636 573,675 112 14,316 38 4,204


17


Ageing Count Amount Count Amount Count Amount Count Amount Count Amount30 days 5,898 135,692 3 177 146 47,885 192 16,394 22,671 660,22531 days to 6 Months 4,595 80,310 1 27,675 398 94,442 374 126,837 28,184 1,690,1776 Months to 1 Year 1,347 17,015 3 130,000 55 12,543 99 13,190 9,160 873,3291 Year to 5 Years 1,580 95,299 - - - - 52 163,921 12,693 1,362,1315 Years and Above - - - - - - - - - -Grand Total 13,420 328,316 7 157,852 599 154,871 717 320,342 72,708 4,585,862

FY 2008-09 (` in 000)

Period / Class Fire Marine Cargo Marine Hull MotorAgeing Count Amount Count Amount Count Amount Count Amount

30 days 128 204,697 76 20,557 76 8,313 7,139 748,36831 days to 6 Months 152 142,901 217 108,471 107 59,840 10,274 447,6696 Months to 1 Year 31 160,859 40 32,639 8 54,843 3,867 438,1431 Year to 5 Years 19 195,596 6 19,491 2 1,095 4,151 538,7065 Years and Above 0 0 0 0 - - - -Grand Total 330 704,053 339 181,157 193 124,091 25,431 2,172,887

(` in 000)Period / Class Engineering Liability Public Liability Health

Ageing Count Amount Count Amount Count Amount Count Amount30 days 112 108,749 16 1,160 8 25,697 6,611 110,77931 days to 6 Months 203 246,438 45 4,287 33 9,846 2,572 28,0116 Months to 1 Year 64 189,579 11 1,793 0 - 3 1921 Year to 5 Years 5 13,948 - - 2 383 - -5 Years and Above - - - - 0 - - -Grand Total 384 558,714 72 7,241 43 35,925 9,186 138,982

(` in 000)Period / Class Aviation Personal Accident All Other Misc Total

Ageing Count Amount Count Amount Count Amount Count Amount30 days - - 157 25,766 114 30,325 14,437 1,284,41131 days to 6 Months 1 40,181 178 27,747 233 30,065 14,015 1,145,4566 Months to 1 Year - - 14 1,221 10 147,599 4,048 1,026,8681 Year to 5 Years - - 1 100 - - 4,186 769,3195 Years and Above - - - - - - - -Grand Total 1 40,181 350 54,834 357 207,990 36,686 4,226,055


18


Product/Class FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10 FY 2008-09

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

No. of Claims

Average Settlement

Time (Days)

Fire 808 110 1,060 136 1,440 126 1,631 80 2,056 79Marine Cargo 884 64 1,011 95 1,604 82 3,418 32 5,061 25Marine Hull 4 154 9 38 13 313 9 96 5 36Motor OD 124,718 38 174,492 34 231,934 43 252,397 34 236,998 30Engineering 575 148 828 148 1,302 120 1,386 90 1,926 58Liability 75 211 88 209 103 156 144 94 310 50Public Liability 18 200 13 159 23 26 16 130 76 51Health 896,690 129 152,771 99 74,654 57 96,323 93 NA NAAviation 8 434 1 431 4 158 5 125 - -Public Accident 1,949 96 2,024 65 2,826 77 2,461 69 3,862 41All Other Misc 1,141 78 2,613 63 2,132 75 2,327 44 6,414 33Total 1,026,870 334,710 316,035 360,117 256,708

Notes: The above ageing does not include Motor Third Party claims which have to be settled through MACT and other judicial bodies.

12) A Majority of the Company’s investment is in fixed income securities. The Fixed Income portion is invested mainly in Government securities and AAA or AA+ rated bonds. The primary objective when investing is Safety, Liquidity and Return. The Company monitors the cash position daily and seasonal liquidity needs are considered while planning maturities of investments. None of the fixed income investments have had any delays in servicing of interest or principal amounts. Based on the past track record, the Management has reasonable confidence in the quality and expected performance of the investments, in line with the objectives.

13) We also confirm:

a) in the preparation of financial statements, the applicable accounting standards, principles and policies have been followed along with proper explanations relating to material departures, if any;

b) the management has adopted accounting policies and applied them consistently and made judgements 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 or loss and of the profit or loss of the Company for the year;

c) 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) / Companies Act, 1956 (1 of 1956), for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the management has prepared the financial statements on a going concern basis;



19

14) Details of payments during the financial year to Individuals, Firms, Companies and Organisations in which Directors are interested, including reimbursement

( ` In ‘000)

Sr No.

Name Of Director

Entity in which Director is Interested

Interested As

Nature Of Payment Amount

1 Mr. S. P. Talwar Reliance Life Insurance Company Limited


Gratuity 14,122


Reimbursement paid for Rent and Office Maintenance 1,594

Reliance Communications Limited

Director Claim Paid 26,135

Marketing Expenses 1,050


Reimbursement paid for Software Maintenance 19,152

Telephone Expenses 43,448

Kalpatru Power Transmission Limited


Uttam Galva Steels Limited


2 Mr. Rajendra Chitale

Reliance Capital Limited


Reimbursement paid for expenses (Rent, Communication, Electricity, Professional fees, Maintenance Charges)

10,509

Management fees 82,441

Reimbursement paid for IT services 28,358

Advertisement Hoarding Charges paid 548



Gratuity 14,122



3 Mr. Soumen Ghosh



Gratuity 14,122



Reliance Capital Asset Management Limited


Reliance Home Finance Limited

Director Reimbursement paid for expenses (Market Intelligent & Feedback)

17


D. Sengupta S. P. Talwar H. AnsariDirector Director Director

Rajendra Chitale Soumen Ghosh Rakesh Jain Director Director Executive Director and CEO Hemant K. Jain Mohan Khandekar Chief Financial Officer Company Secretary



20

AUDITORS’ REPORT

To the Members ofReliance General Insurance Company Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of RELIANCE GENERAL INSURANCE COMPANY LIMITED (the “Company”) which comprises of the Balance Sheet as at March 31, 2013, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account for the year then ended and a summary of significant accounting policies and other explanatory information, annexed thereto.

Management’s Responsibility for the Financial Statements

2. The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and receipts and payments of the Company in accordance with the requirements of the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999, the ‘Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial Statements Regulation”) and the Companies Act, 1956, to the extent applicable and in the manner so required. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider the internal controls relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

4. In our opinion and to the best of our information and according to the explanations given to us, the financial statements have been prepared in accordance with the requirements of the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999, the IRDA Financial Statements Regulation and the Companies Act 1956, to the extent applicable and in the manner so required, and give a true and fair view in conformity with the accounting principles generally accepted in India, as applicable to Insurance Companies:

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

ii. in the case of the Revenue Account, of the surplus / (deficit), as the case maybe for the year ended on that date;

iii. in the case of the Profit and Loss Account, of the Loss of the Company for the year ended on that date; and

iv. in the case of the Receipts and Payments Account, of the Receipts and Payments for the year ended on that date.

Emphasis of Matter and Other Matters

Emphasis of Matter

5. Without qualifying our opinion, we draw attention to Note 16 in Schedule 17 to the financial statement, regarding Insurance Regulatory and Development Authority Order no. IRDA/F&A/ORD/MTAP/070/03/2012 dated 22nd March 2012 relating to IMTPIP liability for underwriting years 2009-10, 2010-11, 2011-12, wherein the Company has opted to amortise the transitional liability on straight line basis over three years beginning with financial year 31st March, 2012. Accordingly, ` 952,789 thousand has been charged to Revenue Account and the unamortised transitional liability amounting to ` 792,765 thousand has been carried forward as per the Order.


21

Other Matters

6. The actuarial valuation of liabilities with respect to claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER) is the responsibility of the Company’s Appointed Actuary (the “Appointed Actuary”). The Appointed Actuary has certified to the Company that the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory and Development Authority (“IRDA”) and the Actuarial Society of India in concurrence with IRDA. We have relied on the Appointed Actuary’s certificate in this regard for forming our opinion on the financial statements of the Company.

7. Audit of the previous year figures presented as comparatives was carried out by M/s Singhi & Co., Chartered Accountants, M/s Chaturvedi & Shah, Chartered Accountants, and M/s Haribhakti & Co., Chartered Accountants, being the auditors of the Company for that year.

Report on Other Legal and Regulatory Requirements

8. As required under Schedule C of IRDA Financial Statements Regulations, read with section 227 of the Companies Act, 1956, we report that :

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory;

b. in our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Company so far as appears from our examination of those books;

c. the financial accounting systems of the Company are centralized and therefore accounting returns are not required to be submitted by branches and other offices;

d. the Balance Sheet, Revenue Account, Profit and Loss Account and Receipts and Payments account referred to in this report are in agreement with the books of account;

e. in our opinion and to the best of our information and according to the explanations given to us, investments of the Company have been valued in accordance with the provisions of the Insurance Act, 1938 and the regulations/directions issued by the IRDA in this behalf;

f. in our opinion and to the best of our information and according to the explanations given to us, the accounting policies selected by the Company are appropriate and in compliance with applicable accounting standards referred to in Section 211(3C) of the Companies Act, 1956 and the Rules framed there under, except as stated in para 5 above, to the extent they are not inconsistent with the accounting principles prescribed in the IRDA Financial Statements Regulations and orders or directions issued by the IRDA in this behalf;

g. the Balance Sheet, Revenue Account, Profit and Loss Account and Receipts and Payments Account referred to in this report are in compliance with the accounting standards referred to in Section 211(3C) of the Companies Act, 1956 and the Rules framed there under, except as stated in para 5 above, to the extent they are not inconsistent with the accounting principles prescribed in the IRDA Financial Statements Regulations and orders or directions issued by the IRDA in this behalf; and

h. Based on the written representations received from the Directors of the Company, as on March 31, 2013, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on March 31, 2013 from being appointed as a Director in terms of Section 274 (1) (g) of the Companies Act, 1956.

9. As required by the IRDA Financial Statements Regulations, we have issued a separate certificate of even date on the matters specified in paragraph 3 and 4 of Schedule C to the IRDA Financial Statements Regulations.

For Pathak H.D. & Associates For Singhi & Co.Chartered Accountants Chartered AccountantsFirm Registration No.107783W Firm Registration No. 302049E




22

AUDITORS’ CERTIFICATE

In accordance with the information and explanations given to us and to the best of our knowledge and belief and based on our examination of the books of accounts and other records maintained by Reliance General Insurance Company Limited (the “Company”) for the year ended March 31, 2013, we certify that:

1) We have reviewed the Management Report attached to the financial statements for the year ended March 31, 2013 and have found no apparent mistake or material inconsistency with the financial statements;

2) Based on management representations and the compliance certificate submitted to the Board by the officers of the Company charged with compliance and the same being noted by the Board, nothing has come to our attention which causes us to believe that the Company has not complied with the terms and conditions of registration as per sub-section 4 of section 3 of the Insurance Act, 1938;

3) We have verified the cash balances, to the extent considered necessary and securities relating to Company’s loans and investments as at March 31, 2013, by actual inspection or on the basis of certificates/ confirmations received from the Custodians/Depository Participants appointed by the Company, as the case may be;



The compliance with conditions stated in the regulations is the responsibility of the Company’s management. Our responsibility is to perform the above-mentioned procedures on the particulars and state our findings. We performed the above-mentioned procedures, in accordance with the Guidance Note on Audit Reports and Certificates for Special Purposes issued by the Institute of Chartered Accountants of India (“ICAI”). The above-mentioned procedures include examining evidence supporting the particulars on a test basis. We have not performed an audit, the objective of which would be the expression of an opinion on the financial statements, specified elements, accounts or items thereof, for the purpose of this certificate. Accordingly, we do not express such opinion.

This certificate is issued to comply with Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002 read with the Regulation 3 of the Regulations and may not be suitable for any other purpose.

For Pathak H.D. & Associates For Singhi & Co.Chartered Accountants Chartered AccountantsFirm Registration No.107783W Firm Registration No. 302049E




23


Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000(` in 000)

Particulars Schedule 2012-13 2011-12Premium Earned (Net) 1 355,667 302,292 Profit / (loss) on sale/redemption of Investments (Net) 10,769 9,772 Interest, Dividend & Rent – Gross 113,760 73,513 TOTAL ( A ) 480,196 385,577 Claims Incurred (Net) 2 207,203 264,308 Commission 3 (62,387) (54,492)Operating Expenses related to Insurance Business 4 105,373 117,775 Reserve for Premium Deficiency - - TOTAL ( B ) 250,189 327,591 Operating Profit/(Loss) from Fire Business C= (A) - (B) 230,007 57,986 AppropriationsTransfer to Shareholders' Accounts 230,007 57,986 Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL ( C ) 230,007 57,986 Significant accounting policies and notes to accounts to the Financial Statements 16 & 17

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, all expenses of management, wherever incurred, whether directly or indirectly in respect of general insurance business have been fully debited in the revenue accounts as expenditure.The Schedules referred to above form an integral part of the Financial Statements.As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta S. P. TalwarChartered Accountants (Firm Registration no. 302049E)

Director Director

Nikhil Singhi H. Ansari Rajendra ChitalePartner, Membership No. 061567 Director Director

For Pathak H. D. & Associates Soumen Ghosh Rakesh JainChartered Accountants (Firm Registration no. 107783W)

Director Executive Director & CEO

Mukesh Mehta Hemant K. Jain Mohan KhandekarPartner, Membership No. 043495 Chief Financial Officer Company Secretary



24


Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000

(` in 000)Particulars Schedule 2012-13 2011-12

Premium Earned (Net) 1 86,911 98,656 Profit / (loss) on sale/redemption of Investments (Net) 1,820 3,401 Interest, Dividend & Rent – Gross 19,227 25,590 TOTAL (A) 107,958 127,647 Claims Incurred (Net) 2 110,210 102,894 Commission 3 13,624 (6,902)Operating Expenses related to Insurance Business 4 29,463 31,396 Reserve for Premium Deficiency 17,936 2,964 TOTAL (B) 171,233 130,352 Operating Profit/(Loss) from Marine Business C= (A) - (B) (63,275) (2,705)AppropriationsTransfer to Shareholders' Accounts (63,275) (2,705)Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL ( C ) (63,275) (2,705)Significant accounting policies and notes to accounts to the Financial Statements 16 & 17


Director Director







25


Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000(` in 000)

Particulars Schedule 2012-13 2011-12Premium Earned (Net) 1 13,155,573 11,229,924 Profit / (loss) on sale/redemption of Investments (Net) 141,829 152,159 Interest, Dividend & Rent – Gross 1,644,588 1,162,990 Exchange Gain / (loss) (5,883) 2,231 Misc Income 3,773 2,598 TOTAL (A) 14,939,880 12,549,902 Claims Incurred (Net) 2 12,290,518 12,291,484 Commission 3 497,770 474,118 Operating Expenses related to Insurance Business 4 3,760,525 3,684,395 Reserve for Premium Deficiency - - TOTAL (B) 16,548,813 16,449,997 Operating Profit/(Loss) from Miscellaneous Business C= (A) - (B) (1,608,933) (3,900,095)AppropriationsTransfer to Shareholders' Accounts (1,608,933) (3,900,095)Transfer to Catastrophe Reserve - - Transfer to Other Reserves - - TOTAL ( C ) (1,608,933) (3,900,095)Significant accounting policies and notes to accounts to the Financial Statements 16 & 17


Director Director







26

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2013Registration No. & Date of Registration with the IRDA:- Regn no.103 dated 23.10.2000

(` in 000)Particulars 2012-13 2011-12

OperatingProfit/(Loss)a. Fire Insurance 230,007 57,986 b. Marine Insurance (63,275) (2,705)c. Miscellaneous Insurance (1,608,933) (3,900,095)

(1,442,201) (3,844,814)Income from Investments Interest, Dividend & Rent – Gross 731,028 554,475 Profit on sale/redemption of investments 103,283 76,840 Less: Loss on sale/redemption of investment (34,083) (3,136)

800,228 628,179 Other IncomeProfit/(Loss) on sale of assets (10,031) (6,070)Miscellaneous Income 38,751 25,462

28,720 19,392 TOTAL (A) (613,253) (3,197,243)Provisions (Other than Taxation)(a) For diminution in the value of investment - - (b) For doubtful debts (305,106) (170,506)(c) Others :-Provision related to control account - 58,824 Risk reserve - (100,000)Standard Assets (1,203) -

(306,309) (211,682)Other ExpensesExpenses other than those related to Insurance Business (8,130) (7,068)Exchange Gain / (loss) - - TOTAL (B) (314,439) (218,750)Profit/(Loss)BeforeTax (927,692) (3,415,993)Provision for TaxationCurrent Tax - - Deferred Tax - (16,000)NetProfit/(Loss)AfterTax (927,692) (3,431,993)Appropriations:(a) Interim dividends paid during the year - - (b) Proposed final dividend - - (c) Dividend Distribution Tax - - (d) Transfer to any reserve or other accounts (to be specified): - - - -Profit / (Loss) After appropriations (927,692) (3,431,993)BalanceofProfit/Lossbroughtforwardfromlastyear (8,706,934) (5,274,941)Balance carried forward to Balance Sheet (9,634,626) (8,706,934)Basic & Diluted Earning Per Share (7.61) (29.24)

Significant accounting policies and notes to accounts form an integral part of the Financial Statements refer schedule 16 & 17As per our Report of even date attached For and on behalf of the Board

For Singhi & Co. D. Sengupta S. P. TalwarChartered Accountants (Firm Registration no. 302049E)

Director Director







27


(` in 000)Particulars Schedule 31.03.2013 31.03.2012

Sources of funds Share Capital 5&5A 1,227,750 1,211,933 Reserves and Surplus 6 16,242,881 14,708,698 Fair Value Change Account (53,002) (75,646) Borrowings 7 - - Total 17,417,629 15,844,985 Application of funds Investments 8 32,524,961 27,021,327 Loans 9 299,424 300,627 Fixed Assets 10 250,407 251,205 Deferred Tax Assets 372,735 372,735 Current Assets Cash and Bank Balances 11 545,783 621,031 Advances and Other Assets 12 9,475,344 2,182,970 Sub-Total (A) 10,021,127 2,804,001 Current Liabilities 13 27,795,034 17,549,673 Provisions 14 7,890,617 6,062,171 Sub-Total (B) 35,685,651 23,611,844 Net Current Assets (C = A - B) (25,664,524) (20,807,843) Miscellaneous Expenditure 15 - - (to the extent not written off or adjusted) Debit Balance in Profit & Loss Account 9,634,626 8,706,934 Total 17,417,629 15,844,985 Significant accounting policies and notes to accounts to the Financial Statements

16 & 17

The Schedules referred to above form an integral part of the Financial Statements.As per our Report of even date attached For and on behalf of the BoardFor Singhi & Co. D. Sengupta S. P. TalwarChartered Accountants (Firm Registration no. 302049E)

Director Director







28


Schedule – 1

Premium Earned (Net) (` in 000)




accepted


ceded

Net Premium(3+4-5)


risks


1 2 3 4 5 6 7 8Fire 2012-13 1,684,248 287,830 1,555,176 416,902 (61,235) 355,667

2011-12 1,163,250 337,995 1,136,628 364,617 (62,325) 302,292 Marine Cargo 2012-13 278,105 1,297 164,107 115,295 (29,800) 85,495

2011-12 396,806 1,151 302,814 95,143 2,600 97,743 Marine Hull 2012-13 6,557 - 5,283 1,274 142 1,416

2011-12 8,117 - 6,062 2,055 (1,142) 913 Marine Total 2012-13 284,662 1,297 169,390 116,569 (29,658) 86,911

2011-12 404,923 1,151 308,876 97,198 1,458 98,656 Motor OD 2012-13 7,484,862 48 773,171 6,711,739 (250,645) 6,461,094

2011-12 6,984,737 - 767,749 6,216,988 160,285 6,377,273 Motor TP 2012-13 5,431,906 294,383 602,149 5,124,140 (1,192,490) 3,931,650

2011-12 4,365,237 1,807,176 3,499,463 2,672,950 (248,090) 2,424,860 Motor Total 2012-13 12,916,768 294,431 1,375,320 11,835,879 (1,443,135) 10,392,744

2011-12 11,349,974 1,807,176 4,267,212 8,889,938 (87,805) 8,802,133 Employer's Liability 2012-13 76,689 - 7,824 68,865 (8,025) 60,840

2011-12 59,182 - 5,997 53,185 225 53,410 Public Liability 2012-13 285,426 153 256,847 28,732 (2,975) 25,757

2011-12 139,601 33 116,304 23,330 (1,425) 21,905 Engineering 2012-13 848,941 62,427 762,600 148,768 (2,660) 146,108

2011-12 906,987 80,079 827,800 159,266 (39,700) 119,566 Aviation 2012-13 22,801 - 24,120 (1,319) 5 (1,314)

2011-12 36,487 2,647 53,231 (14,097) (1,025) (15,122)Personal Accident 2012-13 222,814 2,756 25,718 199,852 8,700 208,552

2011-12 256,090 - 41,997 214,093 (42,600) 171,493 Health 2012-13 2,955,306 2,663 499,730 2,458,239 (275,320) 2,182,919

2011-12 2,252,848 257 356,611 1,896,494 47,200 1,943,694 Other Misc. 2012-13 802,397 13 667,003 135,407 4,560 139,967

2011-12 556,131 52 400,838 155,345 (22,500) 132,845 Misc Total 2012-13 18,131,142 362,443 3,619,162 14,874,423 (1,718,850) 13,155,573

2011-12 15,557,300 1,890,244 6,069,990 11,377,554 (147,630) 11,229,924

Total 2012-13 20,100,052 651,570 5,343,728 15,407,894 (1,809,743) 13,598,151 2011-12 17,125,473 2,229,390 7,515,494 11,839,369 (208,497) 11,630,872


29


Schedule – 2Claims Incurred (Net) (` in 000)


Claims Paid from

direct business written

Claims Paid on


Claims Recovered

on reinsurance

ceded

Net Claims

Paid (3+4-5)


end


beginning


1 2 3 4 5 6 7 8 9Fire 2012-13 728,771 140,529 676,217 193,083 303,027 288,907 207,203

2011-12 869,645 30,046 680,085 219,606 288,907 244,205 264,308 Marine Cargo 2012-13 216,939 12,079 141,643 87,375 101,723 78,667 110,431

2011-12 186,564 - 99,003 87,561 78,667 64,200 102,028 Marine Hull 2012-13 386 - 39 347 1,214 1,782 (221)

2011-12 1,807 - 902 905 1,782 1,821 866 Marine Total 2012-13 217,325 12,079 141,682 87,722 102,937 80,449 110,210

2011-12 188,371 - 99,905 88,466 80,449 66,021 102,894 Motor OD 2012-13 3,724,843 - 386,738 3,338,105 1,892,076 1,459,119 3,771,062

2011-12 4,503,658 - 446,866 4,056,792 1,459,119 1,337,823 4,178,088 Motor TP 2012-13 3,483,145 366,453 121,016 3,728,582 13,872,071 11,597,898 6,002,755

2011-12 3,538,379 1,522,076 2,547,454 2,513,001 11,597,898 8,131,114 5,979,785 Motor Total 2012-13 7,207,988 366,453 507,754 7,066,687 15,764,147 13,057,017 9,773,817

2011-12 8,042,037 1,522,076 2,994,320 6,569,793 13,057,017 9,468,937 10,157,873 Employer's Liability 2012-13 21,496 - 2,269 19,227 29,412 21,460 27,179

2011-12 16,399 - 1,839 14,560 21,460 13,530 22,490 Public Liability 2012-13 3,147 - 1,550 1,597 13,077 8,177 6,497

2011-12 2,159 - 812 1,347 8,177 3,493 6,031 Engineering 2012-13 523,178 31,373 429,559 124,992 137,135 148,976 113,151

2011-12 458,673 78 304,841 153,910 148,976 195,266 107,620 Aviation 2012-13 218,651 183 211,580 7,254 443 6 7,691

2011-12 333,942 - 325,316 8,626 6 1,919 6,713 Personal Accident 2012-13 202,112 - 47,120 154,992 122,037 94,697 182,332

2011-12 213,905 - 111,043 102,862 94,697 40,944 156,615 Health 2012-13 2,091,227 - 285,861 1,805,366 637,499 377,568 2,065,297

2011-12 2,054,392 - 280,731 1,773,661 377,568 484,034 1,667,195 Other Misc. 2012-13 105,052 - 44,023 61,029 175,267 121,742 114,554

2011-12 389,657 - 285,995 103,662 121,742 58,457 166,947 Misc Total 2012-13 10,372,851 398,009 1,529,716 9,241,144 16,879,017 13,829,643 12,290,518

2011-12 11,511,164 1,522,154 4,304,897 8,728,421 13,829,643 10,266,580 12,291,484 Total 2012-13 11,318,947 550,617 2,347,615 9,521,949 17,284,981 14,198,999 12,607,931

2011-12 12,569,180 1,552,200 5,084,887 9,036,493 14,198,999 10,576,806 12,658,686


30



(` in 000)




reinsurance ceded


1 2 3 4 5 6Fire 2012-13 100,177 16,103 178,667 (62,387) 2011-12 65,347 12,514 132,353 (54,492)Marine Cargo 2012-13 27,667 19 13,945 13,741 2011-12 21,325 53 28,192 (6,814)Marine Hull 2012-13 277 - 394 (117) 2011-12 517 - 605 (88)Marine Total 2012-13 27,944 19 14,339 13,624 2011-12 21,842 53 28,797 (6,902)Motor OD 2012-13 694,040 - 112,744 581,296 2011-12 522,543 - 104,152 418,391 Motor TP 2012-13 - - 80,551 (80,551) 2011-12 - - - - Motor Total 2012-13 694,040 - 193,295 500,745 2011-12 522,543 - 104,152 418,391 Employer's Liability 2012-13 6,808 - 1,150 5,658 2011-12 4,752 - 883 3,869 Public Liability 2012-13 6,632 2 13,129 (6,495) 2011-12 3,439 - 9,043 (5,604)Engineering 2012-13 34,684 3,646 146,888 (108,558) 2011-12 52,053 4,263 153,512 (97,196)Aviation 2012-13 (547) - 2,479 (3,026) 2011-12 1,343 383 1,327 399 Personal Accident 2012-13 18,825 27 2,275 16,577 2011-12 20,357 - 3,197 17,160 Health 2012-13 176,388 27 65,218 111,197 2011-12 172,665 3 46,317 126,351 Other Misc. 2012-13 37,279 - 55,607 (18,328) 2011-12 31,563 1 20,816 10,748 Misc Total 2012-13 974,109 3,702 480,041 497,770 2011-12 808,715 4,650 339,247 474,118 Total 2012-13 1,102,230 19,824 673,047 449,007

2011-12 895,904 17,217 500,397 412,724 Schedule 3 ACommission Paid - Direct

(` In 000)


Agents 749,828 567,737 - - Brokers 309,406 297,666 - - Corporate agency 42,996 30,501 - - Referral - - - - Total 1,102,230 895,904 - -


31


Schedule – 4

Operating Expenses related to insurance business(` in 000)

Particulars 2012-13 2011-12Employees’ remuneration & welfare benefits 1,189,717 1,022,840Company's contribution to Provident fund and others 61,820 54,488Travel, conveyance and vehicle running expenses 66,986 47,911Rents, rates & taxes 387,021 565,007Repairs 248,813 240,706Printing & Stationery 48,118 151,622Communication expenses 85,154 126,917Postage expenses 40,426 164,540Legal & professional charges 147,316 156,332Auditors Fees, expenses, etc.a. As auditor 3,568 4,500b. As advisor or in any other capacity - -c. In any other capacity - 3,568 - 4,500Advertisement and Publicity 1,165,923 631,911Interest & Bank Charges 33,969 31,947Others :Directors' Sitting fees 580 720Entertainment Expenses 2,593 2,263Office Maintenance Expenses 143,290 146,952Training & Recruitment Expenses 42,147 20,529Depreciation 106,304 115,059Office Management Expenses 60,253 311,471Subscriptions and Membership Fees 24,097 23,074Coinsurance Expenses (net) 13,137 (844)Service Tax Expenses 19,576 15,172Miscellaneous expenses 12,683 7,517TOTAL 3,903,491 3,840,634Allocation:Fire Revenue Account 105,373 117,775Marine Revenue Account 29,463 31,396Miscellaneous Revenue Account 3,760,525 3,684,395

Expenses not relating to Insurance Business taken in Profit & Loss A/c

8,130 7,068

TOTAL 3,903,491 3,840,634


32


Schedule – 5 Share Capital

(` in 000)

Particulars 2012-13 2011-12Authorized Capital20,00,00,000 (Previous Year 20,00,00,000) Equity Shares of `10 each

2,000,000 2,000,000

Issued Capital12,27,74,960 (Previous Year 12,11,93,328) Equity Shares of `10 each

1,227,750 1,211,933

Subscribed Capital12,27,74,960 (Previous Year 12,11,93,328) Equity Shares of `10 each

1,227,750 1,211,933

Called Up Capital12,27,74,960 (Previous Year 12,11,93,328) Equity Shares of `10 each

1,227,750 1,211,933

Less: Calls Unpaid - -Add : Equity Share forfeited (Amount originally paid up) - -Less: Par value of Equity shares bought back - -Less:(i) Preliminary Expenses to the extent not written off

- -

(ii) Expenses including commission or brokerage on underwriting or subscription of shares

- -

Total 1,227,750 1,211,933

Note: Of the above 11,84,80,288 shares are held by Holding Company, Reliance Capital Limited (previous year 116,898,656 Equity shares).

Schedule – 5A

PatternofShareHolding(AscertifiedbytheManagement)(` in 000)

Shareholder 2012-13 2011-12 No. of Shares

% of Holding

No. of Shares

% of Holding

Promoters- Indian Holding Company- Indian 118,480,288 96.50% 116,898,656 96.46% Holding Company- Foreign - - - - Others Reliance General Insurance Employees Benefit Trust 4,294,672 3.50% 4,294,672 3.54% Total 122,774,960 100.00% 121,193,328 100%


33


Schedule – 6 Reserves and Surplus

(` in 000)

Particulars 2012-13 2011-12 Capital Reserve - - Capital Redemption Reserve - - Share Premium 16,242,881 14,708,698 General Reserve - - Catastrophe Reserve - - Other Reserves - - Balance in Profit and Loss Account - - Total 16,242,881 14,708,698


(` in 000)

Particulars 2012-13 2011-12


Banks - -


Others - -

Total - -


34


SCHEDULE – 8 Investments

(` in 000)

Particulars 2012-13 2011-12LONG TERM INVESTMENTSGovernment securities and Government guaranteed bonds including Treasury Bills

7,998,452 7,186,897

Other Approved Securities 2,005,494 587,512Other Investments :(a) Shares (aa) Equity 495,110 345,940 (bb) Preference - -(b) Mutual Funds - -(c) Derivative Instruments - -(d) Debentures/ Bonds 7,622,541 3,081,264(e) Other securities - -Investments in Infrastructure and social sector 6,737,392 6,213,191Other than Approved Investments 353,539 50,997Total Long Term Investments 25,212,528 17,465,801

SHORT TERM INVESTMENTSGovernment securities and Government guaranteedbonds including Treasury Bills

47,220 405,672

Other Approved Securities - 64,302Other Investments :(a) Shares (aa) Equity - - (bb) Preference - -(b) Mutual Funds - 170,053(c) Derivative Instruments - -(d) Debentures/ Bonds 6,257,267 7,541,732(e) Other securities - -Investments in Infrastructure and social sector 757,895 1,177,375Other than Approved Investments 250,051 196,392Total Short Term Investments 7,312,433 9,555,526Total 32,524,961 27,021,327

1. The value of Investment Other than listed equity shares is as follows: (` in 000)

Particulars Current Year Previous YearBook Value 31,903,742 26,581,358Market Value 32,091,212 26,076,450

2. Government Securities include ` 134,247 thousand as at 31st March, 2013 (as at 31st March, 2012 ` 136,629 thousand), deposit u/s 7 of the Insurance Act, 1938.



35


SCHEDULE – 9 Loans

(` in 000)

Particulars 2012-13 2011-12 SECURITY-WISE CLASSIFICATION

Secured


(aa) In India - -



(c) Others (to be specified) - -

Unsecured 299,424 300,627

TOTAL 299,424 300,627

BORROWER-WISE CLASSIFICATION





(e) Others - Trustees of Reliance General Insurance Employee's Benefit Trust

299,424 300,627

TOTAL 299,424 300,627

PERFORMANCE-WISE CLASSIFICATION

(a) Loans classified as standard - -

(aa) In India 299,424 300,627



(aa) In India - -


TOTAL 299,424 300,627

MATURITY-WISE CLASSIFICATION

(a) Short Term - -

(b) Long Term 299,424 300,627

TOTAL 299,424 300,627

* Net of Provision of ` 1,203/- ( ` in 000) (Previous Year Nil)


36

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37



(` in 000)

Particualrs 2012-13 2011-12 Cash (including cheques, drafts and stamps on hand) 59,102 27,790 Bank Balances (a) Deposit Accounts (aa) Short - term (due within 12 months) 1,400 2,608 (aa) Others - - (b) Current Accounts 292,721 433,441 (c') Cheques on Hand 192,560 486,681 157,192 593,241 Money at Call and Short Notice (a) Within Bank - - (b) With other Institutions - - - - Others - - Total 545,783 621,031 Balances with non-scheduled banks included in (Current Accounts) above

- -

Short term deposit represents fixed deposit given to bank for bank guarantee.


(` in 000)

Particulars 2012-13 2011-12AdvancesReserve deposits with Ceding Companies - -Application money for investments - -Prepayments 32,021 27,560Advances to Directors/ Officers - -Advance tax paid and taxes deducted at source (Net of provision for taxation)

5,808 12,324

Others- Rental & Other Deposits 185,868 206,916- Advances to Staff 1,359 682- Unutilised Service Tax Credit and VAT 45,286 27,050- Other Advances 427,179 366,456Less : Provision (219,176) 440,516 (219,176) 381,928

Other AssetsIncome accrued on investments 1,233,849 867,962Outstanding Premium 247,184 3Agents' Balances 1,288 3,080Due from other entities carrying on insurance business 7,094,119 1,060,619Less Provision for doubtful debts (372,206) (170,506)Motor Pool Transitional Liabilities (Unamortised Losses) 792,765 8,996,999 - 1,761,158Deposit with Reserve Bank of India(Pursuant to Section 7 of Insurance Act,1938)

- -

Total 9,475,344 2,182,970


38


Schedule – 13 Current Liabilities

(` in 000)

Particulars 2012-13 2011-12 Payable to Agents' 77,862 80,391 Balances due to other insurance companies 369,338 702,911 Premium received in Advance 356,885 127,239 Unallocated Premium 372,452 619,306 Sundry Creditors 1,257,136 906,934 Claims Outstanding 24,279,579 14,198,999 Add : Provision for Doubtful Reinsurance Recoveries 103,406 24,382,985 - 14,198,999 Due to Officers / Directors 12 12 Others : - Unclaimed amount of policyholders 335,386 270,153 - Environmental Relief Fund Payable 116 247 - Temporary Book Overdraft as per accounts 491,281 578,011 - Employee Related Payables 21,197 15,065 - Service Tax & VAT Liability 57,314 14,277 - Other Statutory Dues 73,070 978,364 36,128 913,881 Total 27,795,034 17,549,673


(` in 000)

Particulars 2012-13 2011-12Reserve for Unexpired Risk 7,752,864 5,943,121For Taxation (less advance tax paid and Tax deducted at source)

- -

Provision for doubtful debts - -For Proposed Dividends - -For Dividend distribution tax - -Reserve for Premium Deficiency 20,900 2,964Others :- For Leave Encashment 16,853 16,086- For Risk Reserves 100,000 116,853 100,000 116,086 Total 7,890,617 6,062,171

SCHEDULE – 15 Miscellaneous Expenditure (To the extent not written off or adjusted)

(` in 000)

Particulars 2012-13 2011-12Discount Allowed in issue of shares/ debentures - -Others (to be specified) - - Total - -


39

RECEIPTS AND PAYMENTS ACCOUNT FOR YEAR ENDED 31ST MARCH, 2013

Registration No. and Date of Registration with the IRDA : Regn. No. 103 dated 23.10.2000(` in 000)

Particulars Current Year Previous YearCash and cash equivalents at the beginning of the year 43,020 (295,479)Cashflowsfromoperatingactivities:Direct Premiums received 20,329,699 17,123,573 Payment to re-insurers, net of commissions and claims (2,271,151) (393,966)Payment to co-insurers, net claims recovery (85,559) 4,213 Direct Claims Paid (11,318,948) (12,569,180)Direct Commission / Brokerage Payments (1,096,720) (815,048)Payment of other operating expenses (3,363,052) (3,280,879)Preliminary and pre-operating expenses - - Deposits, Advances, and Staff loans (366,468) (99,845)Service Tax (Net) 24,800 (20,594)Income tax paid (Net) 7,318 113 Wealth tax paid - - Misc Receipts/payments (2,110) 4,868 Cashflowbeforeextraordinaryitems 1,857,809 (46,745)Cash flow from extraordinary operations - - Cashflowfromoperatingactivities 1,857,809 (46,745)Cashflowsfrominvestingactivities:Purchase of investments (41,295,279) (19,461,026)Sale of Investments (Including gain/ Loss) 32,924,066 17,417,499 Purchase of fixed Assets (98,782) (74,853)Proceeds from sale of fixed assets 2,583 4,750 Rent/ Interest/ Dividends received 2,134,095 1,405,701 Investment in money market instruments and in liquid mutual funds (Net)

2,945,121 (3,329,758)

Repayment received - - Loan Given - - Expenses related to investments (8,130) (7,068)NetCashflowfrominvestingactivies (3,396,327) (4,044,755)Cashflowsfromfinancingactivities:Proceeds from Issuance of Share Capital 1,549,999 4,430,000 Proceeds from borrowings - - Repayment of borrowings - - Interest/ Dividend Paid - - Cashflowfromfinancingactivities 1,549,999 4,430,000 Cash and cash equivalents at the end of the year including Bank Overdraft

54,502 43,020

Cash and cash Equivalent at the end of year: Cash & Bank balance as per schedule 545,783 621,031 Less: Temporary book over draft as per schedule 491,281 578,011 Cash and Cash Equivalent at the end 54,502 43,020

As per our Report of even date attached For and on behalf of the Board

For Singhi & Co. D. Sengupta S. P. TalwarChartered Accountants (Firm Registration no. 302049E)

Director Director







40

SCHEDULE – 16

Significantaccountingpoliciesformingpartofthefinancialstatementsasat31st March, 2013

1. Background

Reliance General Insurance Company Limited (“the Company”) was incorporated on August 17, 2000 as a Company under the Companies Act, 1956 (“the Act”). The Company obtained regulatory approval to undertake General Insurance business on October 23, 2000 from the Insurance Regulatory and Development Authority (“IRDA”) and has also obtained its certificate of renewal of registration with validity until March 31, 2014.


The accompanying financial statements are drawn up in accordance with the Insurance Regulatory and Development Authority Act, 1999, the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002, and orders and directions issued by IRDA in this behalf and the Regulations framed there under read with relevant provisions of the Insurance Act, 1938 and the Companies Act, 1956 to the extent applicable. The financial statements have been prepared under historical cost convention and on accrual basis in accordance with the generally accepted accounting principles, in compliance with the Accounting Standard (AS) as prescribed in the Companies (Accounting Standard) Rules, 2006 to the extent applicable and conform to the statutory provisions in regard to general insurance operations in India.

3. Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Actual results may differ from those estimates and assumptions. The estimates and assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant facts and circumstances as on the date of the financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.


a. Premium income

Premium net of service tax is recognized as income over the contract period or the period of risk whichever is appropriate. Any subsequent revisions to or cancellations of premium are recognised in the year in which they occur.



ii. Profit commission under reinsurance treaties, wherever applicable, is recognized on accrual basis. Any subsequent revisions of profit commission are recognized in the year in which final determination of the profits are intimated by reinsurers.


Interest income is recognized on accrual basis. Accretion of discount and amortization of premium relating to debt securities is recognized over the holding / maturity period on constant yield method. Dividend is recognized when right to receive dividend is established.

Realised profit or loss on sale/redemption of securities is recognized on trade date basis. In determining the realised profit and loss, the cost of securities is arrived at on weighted average cost basis. Further, in case of listed equity shares and mutual funds the profit and loss also includes accumulated changes in the fair value previously recognized in the fair value change account under the equity and includes effects on accumulated fair value changes, previously recognized, for specific investments sold/redeemed during the year.


41





ii. Reinsurance inward is accounted to the extent of the returns received from the reinsurers.


i. Reserve for unexpired risk is made on the amount representing that part of the net premium written which is attributable to, and to be allocated to the succeeding accounting periods, subject to a minimum of 100% in case of marine hull business and 50% in case of other business except in health business, based on net premium written during the year as required by Section 64V (1) (ii) (b) of the Insurance Act, 1938.

ii. In case of Health segment, the Reserve for Unexpired Risks is created at the end of the Accounting period based on the 1/365 method as per IRDA Circular No. IRDA/F&A/CIR/49/Mar-09 dated 24th March, 2009 and IRDA/F&I/CIR/F&A/015/02/2011 dated 2nd February, 2011.

8. Claims Incurred

Claims incurred comprise claims paid, estimated liability for outstanding claims made following a loss occurrence reported and estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported (‘IBNER’). Further, claims incurred also include specific claim settlement costs such as survey / legal fees and other directly attributable costs.

Claims (net of amounts receivable from reinsurers/coinsurers) are recognised on the date of intimation based on estimates from surveyors/insured in the respective revenue accounts.

Estimated liability for outstanding claims at Balance Sheet date is recorded net of claims recoverable from/payable to co-insurers/reinsurers and salvage to the extent there is certainty of realisation.

Estimated liability for outstanding claims is determined by management on the basis of ultimate amounts likely to be paid on each claim based on the past experience. These estimates are progressively revalidated on availability of further information.

IBNR represents that amount of claims that may have been incurred during the accounting period but have not been reported or claimed. The IBNR provision also includes provision, if any, required for claims IBNER. Estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough Reported (‘IBNER’) is based on actuarial estimate duly certified by the appointed actuary of the Company.

9. Acquisition Cost


10. Loans

Loans are stated at historical cost, subject to provision for impairment, if any.

11. PremiumDeficiency

Premium deficiency is recognized if the ultimate amount of expected net claim costs, related expenses and maintenance costs exceeds the sum of related premium carried forward to subsequent accounting period as the reserve for unexpired risk. Premium deficiency is calculated by line of business as per IRDA circular F&A/ CIR/ 017/ May-04 dated 18th May, 2004. The Company considers maintenance cost as relevant costs incurred for ensuring claim handling operations.


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12. Investments

i. Investments are carried at cost on weighted average basis. Cost includes brokerage, securities transactions tax, stamp duty and other charges incidental to transactions.

ii. Investment in debt securities is shown in the Balance sheet at historical cost subject to amortisation/accretion of the premium/discount over the maturity period based on constant yield method.

iii. Investment in equity shares as at the Balance Sheet date is stated at fair value and fair value is the last quoted closing price on the National Stock Exchange. However, in case of any stock not being listed in National Stock Exchange, then the last quoted closing price in Bombay Stock Exchange is taken as fair value. Unrealized gains/losses are credited / debited to fair value change account.

iv. Investment in Mutual Funds units is stated at previous day’s Net Asset Value (NAV) at the Balance Sheet date. Unrealized gains/losses are credited / debited to fair value change account.

v. In accordance with the regulations, unrealized gain/loss arising due to changes in fair value of listed equity shares is taken to the fair value change account. This balance in the fair value change account is not available for distribution, pending crystallizations.


The Company assesses at each Balance Sheet date whether there is any indication that any investment in equity or units of mutual funds is impaired. If any such indication exists, the carrying value of such investment is reduced to its recoverable amount and the impairment loss is recognized in the revenue(s)/profit and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and investment is restated to that extent.


The Company follows the intrinsic method for computing the compensation cost, for options granted under the Plan. The difference, if any, between the intrinsic value and the exercise price, being the compensation cost is amortized over the vesting period of the options.



ii. Depreciation on Fixed Assets is provided on Written down Value basis at the rates and the manner provided in Schedule XIV to the Companies Act, 1956.



v. Intangible assets are stated at cost of acquisition less accumulated amortization. The same is amortized over a period of three years on straight line basis.

vi. Based on the management’s estimate of use lives for Mobile Handset, Camera, Tablet PC are amortized over a period of two years on straight line basis.


The Company assesses at each Balance Sheet Date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the impairment loss is recognized in the profit and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that extent.


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17. EmployeeBenefits

I. ShortTermEmployeeBenefits

All Short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

II. DefinedContributionPlan

Provident fund

Each eligible employee and the Company make an equal contribution at a percentage of the basic salary specified under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no further obligations under the plan beyond its periodic contributions. The Company contribution towards this fund is charged to profit and loss account and revenue accounts as applicable.

Superannuation

The Company has incorporated a superannuation trust. The superannuation contribution is based on a percentage of basic salary payable to eligible employees for the period of service. The Company contribution towards this trust is charged to profit and loss account and revenue accounts as applicable.

III. DefinedBenefitPlan

The Company has incorporated a gratuity trust. Gratuity, which is a Defined Benefit Scheme is accounted for on the basis of an actuarial valuation done at the year end and is charged to the profit and loss account and revenue accounts as applicable.

IV. OtherLongTermEmployeeBenefits

Accrued Leave is a Long Term Employee Benefit. Compensated absences are provided based on actuarial valuation as at Balance Sheet date and is recognized in the profit and loss account and revenue accounts as applicable.


Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year end are reinstated at the year end rates. Non-monetary foreign currency items are carried at cost. Any gain or loss on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account and Revenue Accounts as applicable.



Deferred Tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation and carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty backed by the convincing evidence of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and are appropriately adjusted to reflect the amount that is reasonably or virtually certain to be realized.


Expenses relating to insurance business are allocated on the basis of net premium written to the Revenue Accounts.

Expenses relating to investment activities are charged to the Profit and Loss Account.


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21. Earnings per share

Earnings per share is calculated by dividing the profit after tax in the profit and loss account by the weighted average number of equity shares outstanding during the year.


Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

SCHEDULE – 17


1. Contingent Liabilities: (` in 000)

Particulars At March 31, 2013 At March 31, 2012

Partly paid up investments - -

Underwriting commitments outstanding - -

Claims, other than under policies, not acknowledged as debt 11,415 10,338

Guarantees given by or on behalf of the Company 1,400 2,608

Statutory demands/liabilities in dispute, not provided for(see note below)

2,310 1,238

Reinsurance obligations to the extent not provided for in accounts - -

Others - -

Note:- The Company has disputed the demand raised by the income tax department for non deduction of tax at source and penalty for A. Y. 2009-10 for ` 1,238 thousand and 1,072 thousand respectively (Previous year ` 1,238 thousand).

2. The management has sent confirmation letters to the vendors asking for their registrations under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED). However, no confirmations have been received by management and therefore no provision has been made for the same. However, in view of the management, the impact of interest, if any, that may be payable in accordance with provisions of the Act is not expected to be material.

3. There are no encumbrances to the assets of the Company in and outside India.

4. The Company has not invested any amount in real estate in the current financial year.

5. Commitments:

i. There are no commitments made and outstanding for Loans in the current financial year (Previous year Nil).

ii. The commitments made and outstanding for Investments are ̀ 102,177 thousand. (Previous year ̀ 161,440 thousand).

iii. Estimated amount of commitment pertaining to contracts remaining to be executed in respect of fixed assets(net of advances) is ` 76,402 thousand (Previous year ` 6,855 thousand).

6. Premium:

i. All premiums net of reinsurance are written and received in India.



45

7. Claims:

i. Claims, less reinsurance paid to claimant in/outside India are as under:

(` in 000)





iii. Ageing of gross claims outstanding is set out in the table below:

(` in 000)





8. Investments:

i. Value of contracts in relation to investments for:

(` in 000)



Purchases where deliveries are pending 102,177 161,440Sales where payment are overdue - -Sales where deliveries are pending 162,125 52,663

ii. Historical cost of investments valued at fair value on Balance Sheet date is ` 674,220 thousand (Previous year ` 881,912 thousand).

iii. Investment Income has been allocated between revenue accounts and profit and loss account on the basis of the ratio of average policyholders funds to average shareholders funds respectively; average being the balance at the beginning of the year and at the end of the year. Further, investment income between policyholders is allocated on the basis of Gross Direct Premium.

9. Reserve for unexpired risk on health:

In respect of Health segment, the Unexpired Risk Reserve (URR) has been created on the basis of 1/365 method which is less than as provided under Section 64V(1)(ii)(b) of the Act, due to which it is resulting in an accounting surplus amounting to ` 100,999 thousand (Previous Year ` 95,447 thousand) and as per circular the said amount needs to be transferred to the Contingency Reserve and such accounting surplus shall not be available for distribution to the shareholders without the explicit approval of the Authority. Due to unavailability of profits, the said reserve has not been created.

10. EmployeeBenefit:

i. Define Contribution Plan: During the year Company has recognized ` 46,446 thousand as expenses (Previous year ` 45,709 thousand)


46

ii. Define Benefit Plan: The disclosure required under the define benefit plan as per AS 15 for gratuity fund is as follow:

(` in 000)



I. Assumptions Discount Rate 8.25% 8.50%Rate of Return on Plan Assets 8.70% 8.50%Salary Escalation 5.00% 5.00%II.TableShowingChangeinBenefitObligationLiability at the beginning of the Year 35,090 30,300Interest Cost 2,983 2,500Current Service Cost 8,906 8,844Benefit Paid (7,602) (4,752)Actuarial Gain/(Loss) on Plan Obligation 4,418 (1,802)Liability at the end of the Year 43,795 35,090III. Tables of Fair value of Plan AssetsFair Value of Plan Assets at the beginning of the Year 30,097 33,533Expected Return on Plan Assets 2,558 2,767Contributions 14,175 -Benefit Paid (7,602) (4,752)Actuarial Gain/(Loss) on Plan Assets (111) (1,454)Fair Value of Plan Assets at the end of the Year 39,117 30,097Total Actuarial Gain/(Loss) to be recognised (4,529) 345IV. Actual Return on Plan AssetsExpected return on Plan Assets 2,558 2,767Actuarial Gain/(Loss) on Plan Assets (111) (1,454)Actual return on Plan Assets 2,447 1,313V. Amount Recognised in the Balance SheetLiability at the end of the Year 43,795 35,090Fair Value of Plan Assets at the end of the Year 39,117 30,097Difference 4,678 4,993Amount Recognised in the Balance Sheet 4,678 4,993VI. Expenses Recognised in the Income StatementCurrent Service Cost 8,906 8,844Interest Cost 2,983 2,500Expected Return on Plan Assets 2,558 (2,767)Net Actuarial Gain/(Loss) to be recognized (4,529) (345)Expense Recognised in P&L 13,860 8,226VII. Amount Recognised in the Balance SheetOpening Net Liability 4,994 (3,233)Expense as above 13,859 8,226Employers Contribution Paid 14,175 -Closing Net Liability 4,678 4,993


47

11. Deferred Taxes:

The deferred tax assets and liabilities arising due to timing differences have been recognized in the financial statements as under:

(` in 000)

Particulars For the Year ended March 31,2013


Deferred Tax AssetRelated to Fixed Assets 19,215 13,404Related to Leave Encashment Provision 5,468 5,219Unabsorbed Depreciation 348,052 326,648Carry Forward Losses - 46,841Total 372,735 392,112Deferred Tax LiabilityReserve for Unexpired Risk - 19,377Total - 19,377Deferred Tax Asset/(Liability)(Net) 372,735 372,735DeferredTaxExpense/(Income)recognisedinProfitandLossA/c - 16,000


The Company had introduced the Employee Stock Option Plan during the F. Y. 2008-09 under which options were granted to the employees of the Company on the basis of their performance and other eligibility criteria. During the year the Company granted Nil equity shares (Previous year Nil) to Reliance General Insurance Employees’ Benefit Trust. These options are planned to be settled in cash or equity at the time of exercise and have maximum period of 7 years from the date of respective grants. The plan existing during the year is as follows:



Particulars


OptionsWeighted Average Exercise Price (`)

Weighted Average


No. of Stock Options


Weighted Average



459,900 70 2.42 524,600 70 4.46

Granted - - - - - -Exercised - - - - - -Lapsed/Forfeited 45,000 - - 64,700 - -Outstanding at the end of the year

414,900 70 - 459,900 70 -

Exercisable at the end of the year

414,900 70 - 459,900 70 -

The Company has chosen to account for the plan by Intrinsic Value Method. The total expense recognized for the year arising from stock option plan as per intrinsic value method is ̀ Nil (Previous Year Nil) The net results and Earning Per Share (EPS) for the year, had the Company adopted the fair value method, would have been unchanged.


48

13. PremiumDeficiency:

In accordance with circular no F&A/ CIR/ 017/ May-04 dated 18th May 2004, there is no premium deficiency in the miscellaneous segment in current year, however there was premium deficiency under following sub segments of miscellaneous segment in previous year.

(` in 000)



Miscellaneous - 28,286Rural - 11,340Energy - 9,659

14. Details of Outsourcing, Business Development and Marketing Support Expenses:

(` in 000)



Outsourcing Expenses 766,933 448,086Business Development 936,520 615,796Marketing Support 205,300 12,987

15. Terrorism Pool:

In accordance with the requirements of IRDA, the Company together with other insurance Companies participates in the Terrorism Pool. This pool is managed by the General Insurance Corporation of India (GIC). Amount collected as terrorism premium in accordance with the requirements of the Tariff Advisory Committee (TAC) are ceded at 100% of the terrorism premium collected to the Terrorism Pool.

In accordance with the terms of the agreement, GIC retrocedes to the Company, terrorism premium to the extent of the Company’s share in the risk which is recorded as reinsurance accepted. Such reinsurance accepted is recorded based on quarterly statements received from GIC. The reinsurance accepted on account of terrorism pool has been recorded in accordance with the last statement received from GIC

The Company has ensured that it has created liability to the extent of premium retroceded to the Company through reserve for unexpired risks.


(a) In accordance with the directions of IRDA, the Company, together with other insurance Companies, had participated in the Indian Motor Third Party Insurance Pool (IMTPIP). The IMTPIP was a multilateral reinsurance arrangement, in which all member Companies were compulsorily required to participate. The IMTPIP was administered by the General Insurance Corporation of India (‘GIC’). The IMTPIP had covered reinsurance of third party risks of specified motor vehicles (“Specified Risks”). Amounts collected as premium in respect of Specified Risks were ceded at 100% of such premium, 100% of claims incurred against risks ceded being recoverable from the pool.

In accordance with the terms of the agreement, each participant Company was compulsorily required to share in the revenues, expenses, assets and liabilities of the IMTPIP, including Unexpired Risks Reserve, in the proportion that the Company’s Gross Direct Premium written in India (GDPI), bears to the total GDPI of all participant Companies. The Company’s share as specified above had been recorded based on the returns submitted by GIC, under the respective heads.


49

(b) IRDA through its Orders dated December 23, 2011, January 3, 2012 and March 22, 2012 had directed the dismantling of the Pool on a clean cut basis and advised recognition of the Pool liabilities as per loss ratios estimated by Government’s Actuary Department UK (“GAD Estimates”) at 159%, 188%, 200%, 213.00% and 145% for underwriting year 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 respectively with the option to recognise the additional liabilities for the period 2009-10, 2010-11 and 2011-12 over a three year period, The Company had exercised this option and IMTPIP liability relating to underwriting years 2009-10, 2010-11, 2011-12 is being recognized based on straight line basis over three years beginning with financial year 31st March, 2012. Accordingly, the profit of the Company would have been higher by ` 472,713 thousand pursuant to recognition of the said liability in the year of dismantling of IMTPIP.

(c) Transitional Liabilities (TL) recognized in current year is as follow:

(` in 000)

Particulars Unrecognised as on March

31, 2012

Accounted during the year

Recognized during the year

Unrecognised as on March

31, 2013Opening 1,265,477 - 632,738 632,739Based on audited statement for the month of March, 2012

- 66,159 44,106 22,053

Net Loss on Earned Premium released on unexpired risk reserve during the year

413,917 275,945 137,973

Total 1,265,477 480,076 952,789 792,765


In accordance with the directions of IRDA, the Company, together with other insurance Companies, is participating in the Indian Motor Third Party Decline Risk Pool (IMTPDRP). The IMTDRP is a multilateral reinsurance arrangement, in which all member Companies are compulsorily required to participate. The IMTDRP is administered by the General Insurance Corporation of India (GIC).


Under this arrangement, any business relating to Act only policies of Commercial Vehicles which does not fall within the underwriting parameters of insurers shall be ceded to IMTPDRP. This arrangement is called the Declined Risk Pool

IRDA has mandated that every insurer has to comply with the obligation to underwrite a minimum percentage of such policies that is calculated as an average of insurer’s total gross premium percentage share in the industry and gross motor premium percentage share in the industry.

The insurers are required to retain 20% of such risk, while 10% is ceded to GIC under obligatory cession and remaining 70% ceded to IMTPDRP.

The Company has received its share of premium, claims and expenses of the pool, which is recorded as inward reinsurance business, based on the statement received from GIC. Accordingly the Company has recognized pool retrocession up to 9 month ended 31st December, 2012, the accounts for which statement received.

Company has accounted for its share in Decline Risk Pool for the 3 months period January 2013 to March 2013 on provisional basis based on management estimate and recorded the net amount under claims incurred. Unexpired risks reserve is provided for at 50% of net premium of such inward business, being the minimum rate specified in Section 64V(1)(ii) of the Insurance Act, 1938.


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In accordance with the requirements of the IRDA circular dated March 18, 2003 and based on recommendations made at the General Insurance Council meeting held on February 4, 2005, the Company has provided 0.1% of gross written premium on all motor third party policies towards contribution to the solatium fund.

19. Leases:

In respect of premises taken on operating lease, the lease agreements are generally mutually renewable/ cancelable by the lessor/lessee except for three premises.

Non Cancelable Operating Lease


(` in 000)



Not later than one year 49,331 40,256

Later than one year and not later than five years 35,086 62,886

Later than five years - -

Lease payment debited to the Profit and Loss account during the year ` 244,617 thousand (Previous year ` 322,426 thousand).

20. Sectorwise business based on Gross Direct Premium (GDP):



GDP (` in 000)

% of GDP GDP(` in 000)

% of GDP

Rural 1,705,577 8.49 1,508,536 8.81

Urban 18,394,476 91.51 15,616,937 91.19

Total 20,100,053 100.00 17,125,473 100.00



GDP(` in 000)

No. of lives GDP(` in 000)

No. of lives

Social Sector 22,897 240,556 21,224 410,964

21. Extent of risk retained and reinsured is set out below (excluding excess of loss and catastrophe reinsurance)Particulars For the Year ended


March 31, 2012% of business written % of business written

Risk Retained 74% 60%

Risk Reinsured 26% 40%


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22. Managerial Remuneration:

(` in 000)



Salaries 13,388 10,543Perquisites - -Contribution to Provident Fund and Superannuation 2,304 812Provision for Gratuity and Leave Encashment 308 235

The managerial remuneration is in accordance with the approval accorded by a resolution of the Board of Directors, which has been approved by IRDA as required under Section 34A of the Insurance Act, 1938.

The managerial remuneration in excess of `15,000 thousand for each managerial personnel have been charged to Profit & Loss Account.


The liability for IBNR claims including IBNER for the year ending 31st March, 2013 has been estimated by the Appointed Actuary in compliance with guidelines issued by IRDA vide Circular no. 11/IRDA/ACTL/IBNR/2005-06.

The Appointed Actuary has adopted the basic paid claims chain ladder method for all line of business except for Motor Third Party for which ultimate loss ratio method has been followed. Under the basic paid claims chain ladder method, the trends from past claims development are referred to for determining the future claims development.

24. As per IRDA Circular No 005/IRDA/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of the penalty imposed by various regulators and Government authorities:

(` in 000)

SI No.

Authority Non-Compliance/

Violation

Penalty Awarded

Penalty Paid


1 Insurance Regulatory and Development Authority Nil - - -2 Service Tax Authorities Nil - - -3 Income Tax Authorities Nil - - -4 Any other Tax Authorities Nil - - -5 Enforcement Directorate/Adjudicating Authority/

Tribunal or any Authority under FEMANil - - -

6 Registrar of Companies/NCLT/CLB/Department of Corporate Affairs or any Authority under Companies Act, 1956

Nil - - -


Nil - - -

8 Securities and Exchange Board of India Nil - - -9 Competition Commission of India Nil - - -

10 Any other Central/State/Local Government/Statutory Authority

Nil - - -


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25. As per IRDA Circular No. IRDA/F&I/CIR/CMP/174/11/2010 dated 4th November, 2010, below table mention the age-wise analysis of unclaimed amount of the policyholders as on 31st March, 2013:

(` in 000)

Particulars Total0-30 Days

1-6 Months

7-12 Months

13-18 Months

19-24 Months

25-30 Months

31-36 Months

Beyond 36

MonthsClaim Settled but not paid to the policy holders/insured due to any reason except under litigation from the insured/policyholders.

1,392 789 603 - - - - - -

Any other sum due/payable to the insured/policyholder on completion of the policy terms or otherwise.

- - - - - - - - -

Any excess collection of premium/tax or any other charges which is refundable to the policyholders either as per the terms of the conditions of the policy or as per law or as per the direction of the authority but not refunded so far.

31,235 1,197 2,154 2,964 4,783 2,450 3,017 3,505 11,165

Cheques Issued by the Company under “a”, “b” or “c” above & cheques have not been encashed by the policyholders/Insured.

*(Stale Cheques)

302,759 - 35,389 31,809 26,119 21,715 34,448 31,952 121,327

*Cheques issued within validity period of financial instruments but not presented for payment amounting to ` 724,521 thousand are not included under unclaimed amount of policy holders as on March 31, 2013.

26. As per the requirement of Accounting Standard 18 ‘Related Party Disclosures’ as notified by the Companies (Accounting Standard) Rules, 2006, following are the list of related parties with the relationship.

1. List of related parties relationships, where control exists.

Ultimate Holding CompanyReliance Innoventures Private LimitedHolding CompanyReliance Capital LimitedSubsidiary of Holding Company (Including Fellow Subsidiary)1. Reliance Capital Asset Management Limited2. Reliance Asset Management (Singapore) Pte. Limited3. Reliance Asset Management (Mauritius) Limited4. Reliance Capital Asset Management (UK) Plc.5. Reliance Asset Management (Malaysia) SDN. BHD.


53

6. Reliance Capital Pension Fund Limited7. Reliance Capital Trustee Co. Limited8. Reliance Gilts Limited9. Reliance Equity Advisors (India) Limited10. Reliance Consultants (Mauritius) Limited11. Reliance Money Express Limited12. Reliance Money Precious Metals Private Limited13. Reliance Venture Asset Management Private Limited14. Reliance Equities International Private Limited15. Reliance Home Finance Limited16. Reliance Capital (Singapore) Pte. Limited17. Reliance Securities Limited18. Reliance Composite Insurance Broking Limited19. Reliance Investment Banking Services Limited20. Reliance Commodities Limited21. Reliance Financial Limited22. Reliance Alternative Investments Services Private Limited23. Reliance Wealth Management Limited24. Reliance Exchangenext Limited25. Reliance Spot Exchange Infrastructure Limited26. Indian Agri Services Private Limited (w.e.f April 30, 2012)27. Quant Capital Private Limited28. Quant Broking Private Limited29. Quant Securities Private Limited30. Quant Commodities Private Limited31. Quant Commodity Broking Private Limited32. Quant Capital Advisors Private Limited33. Quant Capital Finance and Investments Private Limited34. Quant Investments Services Private Limited35. QOPPA Trading Private Limited36. QCAP Trade Private Limited37. Quant Alternative Asset Management Private Limited (w.e.f. October 12, 2012)38. Emerging Money Mall Limited (w.e.f. February 20, 2013)Person Having ControlShri Anil D. AmbaniKey managerial personnelRakesh Jain


54

2. Transaction during the period with related parties:

(` in 000)

S. No.



31, 2013


31, 2012 1 Reliance Capital

LimitedHolding Company

Share Capital Received 15,816 45,205Share Premium Received 1,534,183 4,384,795Claim Paid 463 498Premium 4,471 3,179Reimbursement paid for expenses (Rent, Communication, Electricity, Professional fees, Maintenance Charges)

10,509 40,201

Management fees 82,441 64,777Reimbursement paid for IT services 28,358 35,988Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

12,788 10,181

Advertisement Hoarding Charges paid 548 -Interest Due on Debenture 73,214 78,549Outstanding balance in CD A/c 948 832Debtors 355 1,151

2 Reliance Capital Asset Management Limited

Fellow Subsidiary

Premium 13,523 11,389Claim Paid 138 -Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

2,473 1,536

Outstanding balance in CD A/c 649 212Debtors 219 237

3 Reliance Capital Trustee Co. Limited

Fellow Subsidiary

Premium 41,266 9,432

4 Reliance Equity Advisor (India) Limited

Fellow Subsidiary

Premium 19 50Outstanding balance in CD A/c 15 15

5 Reliance Home Finance Limited

Fellow Subsidiary

Reimbursement received for expenses (Rent, Communication, Electricity, Canteen exp)

- 130

Reimbursement paid for expenses (Market Intelligent & Feedback)

17 -

Outstanding balance in CD A/c 25 25 6 Reliance Money

Express LimitedFellow Subsidiary

Return on Foreign Exchange - -Premium 14 76Foreign Currency Purchased 625 23Outstanding balance in CD A/c 434 434

7 Reliance Securities Limited

Fellow Subsidiary

Reimbursement received for expenses (Rent, Communication, Electricity, Canteen expenses)

1,859 2,603

Premium 60 136Brokerage paid for stock exchange trading 40 111Claim Paid - 5Debtors 155 196

8 Reliance Spot Exchange Infrastructure Limited

Fellow Subsidiary

Premium - 71Outstanding balance in CD A/c 22 22


55

S. No.



31, 2013


31, 2012 9 Reliance Composite

Insurance Broking Limited (w.e.f. October 18, 2011)

Fellow Subsidiary

Premium 21 16Brokerage 14,847 15,894Debtors - 14,032Creditors 972 -

10 Reliance Innoventures Pvt. Limited


Premium 4,793 2,391

11 Quant Capital Pvt. Limited

Fellow Subsidiary

Premium 23 329

12 Quant Broking Private Limited

Fellow Subsidiary

Premium 22 -Brokerage paid for stock exchange trading 52 -

13 Reliance Wealth Management Limited

Fellow Subsidiary

Premium 38 -

14 Shri Anil D. Ambani Person having control

Premium 120 126


Remuneration 16,000 6,546

16 Vijay Pawar Key Managerial Personnel

Remuneration - 5,044

Note: Related Party relationship is as identified by the management and relied upon by the auditors.

27. Segment Information for the year ended on 31st March, 2013

a. Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment. Revenue and expenses, which relate to enterprise as a whole and are not allocable to a segment on reasonable basis, have been disclosed as “Unallocable”.


(` in 000)

Particulars Fire

Marin

e Car

go

Marin

e Hull

Moto

r

Emplo

yer

Liabil

ity

Publi

c Liab

ility

Engin

eerin

g

Aviat

ion

Pers

onal

Accid

ent

Healt

h

Othe

r Mi

scell

aneo

us

Total

Segment Revenues:Premium2012-13 355,667 85,495 1,416 10,392,744 60,840 25,757 146,108 (1,314) 208,552 2,182,919 139,967 13,598,1512011-12 302,292 97,743 913 8,802,133 53,410 21,905 119,566 (15,122) 171,493 1,943,694 132,845 11,630,872Commission2012-13 (62,387) 13,741 (117) 500,745 5,658 (6,495) (108,558) (3,026) 16,577 111,197 (18,328) 449,0072011-12 (54,492) (6,814) (88) 418,391 3,869 (5,604) (97,196) 399 17,160 126,351 10,748 412,724Investment Income2012-13 124,529 20,562 485 1,400,882 5,665 21,104 62,768 1,686 16,477 218,507 59,328 1,931,9932011-12 83,285 28,410 581 1,013,919 4,237 9,995 64,937 2,613 18,335 161,297 39,817 1,427,426


56

Particulars Fire

Marin

e Car

go

Marin

e Hull

Moto

r

Emplo

yer

Liabil

ity

Publi

c Liab

ility

Engin

eerin

g

Aviat

ion

Pers

onal

Accid

ent

Healt

h

Othe

r Mi

scell

aneo

us

Total

Misc. Income2012-13 - - - - - - - - - - (2,110) (2,110)2011-12 - - - - - - - - - - 4,829 4,829Total Segment Revenues2012-13 542,583 92,316 2,018 11,292,881 60,847 53,356 317,434 3,398 208,452 2,290,229 215,513 15,079,0272011-12 440,069 132,967 1,582 9,397,661 53,778 37,504 281,699 (12,908) 172,668 1,978,640 166,743 12,650,403Segment Expenses:Claims2012-13 207,203 110,431 (221) 9,773,817 27,179 6,497 113,151 7,691 182,332 2,065,297 114,554 12,607,9312011-12 264,308 102,028 866 10,157,873 22,490 6,031 107,620 6,713 156,615 1,667,195 166,947 12,658,686Premium Deficiency2012-13 - 17,936 - - - - - - - - - 17,9362011-12 - 2,964 - - - - - - - - - 2,964Management Expenses2012-13 105,373 29,141 322 2,992,524 17,406 7,262 37,602 (333) 50,513 621,327 34,224 3,895,3612011-12 117,775 30,732 664 2,880,866 17,180 7,536 51,445 (4,553) 69,154 612,589 50,179 3,833,567Total Segment Expenses2012-13 312,576 157,508 101 12,766,341 44,585 13,759 150,753 7,358 232,845 2,686,624 148,778 16,521,2282011-12 382,083 135,724 1,530 13,038,739 39,670 13,567 159,065 2,160 225,769 2,279,784 217,126 16,495,217Net Profit/(Loss)2012-13 230,007 (65,192) 1,917 (1,473,460) 16,262 39,597 166,681 (3,960) (24,393) (396,395) 66,735 (1,442,201)2011-12 57,986 (2,757) 52 (3,641,078) 14,108 23,937 122,634 (15,068) (53,101) (301,144) (50,383) (3,844,814)Unallocated itemsInvestment Income2012-13 800,2282011-12 628,179Provision/(Other Income)2012-13 277,5892011-12 192,290Expenses2012-13 8,1302011-12 7,068Net Profit before tax2012-13 (927,692)2011-12 (3,415,993)Income tax2012-13 -2011-12 (16,000)


57

Particulars Fire

Marin

e Car

go

Marin

e Hull

Moto

r

Emplo

yer

Liabil

ity

Publi

c Liab

ility

Engin

eerin

g

Aviat

ion

Pers

onal

Accid

ent

Healt

h

Othe

r Mi

scell

aneo

us

Total

Net Profit after tax2012-13 (927,692)2011-12 (3,431,993)Assets:Segment Assets2012-13 -2011-12 -Unallocated Assets2012-13 43,468,6542011-12 30,735,618Total Assets2012-13 43,468,6542011-12 30,735,618Liabilities:Segment Liabilities2012-13 571,914 181,609 24,114 29,021,124 65,374 33,517 225,403 1,463 228,653 1,787,572 372,892 32,513,6352011-12 533,066 128,053 3,924 17,596,921 49,316 31,220 236,948 1,031 230,001 1,238,011 220,869 20,269,360Unallocated Liabilities2012-13 10,955,0192011-12 10,466,258Total Liabilities2012-13 43,468,6542011-12 30,735,618Notes:

a. Segment Reporting is made as per the modification prescribed by the Insurance Regulatory and Development Authority Regulations wherein details are to be given for fire, marine cargo, marine hull and eight classes of miscellaneous insurance

b. Since the Company’s entire business is conducted within India, there are no reportable geographical segments for the year.


58

28. Summary of Financial Results:

(` in 000)

Particulars FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10 FY 2008-09

Operating Results

Gross Premium Written 2,0751,622 19,354,863 18,182,817 21,559,099 20,753,212

Net Premium Written 15,407,894 11,839,369 11,548,005 14,287,220 13,995,608

Income from Investment 1,931,993 1,427,425 1,091,724 1,030,071 981,582

Other Income (2,110) 4,829 1,045 1,180 320

Total Income 17,337,777 13,271,623 12,640,774 15,318,471 14,977,510

Commission and Brokerage Net 449,007 412,724 (225,156) (351,876) (315,457)

Operating Expenses 3,895,361 3,833,566 4,468,708 4,806,330 5,410,421

Claims and Increase in Unexpired Risk Reserve and Other Outgo

14,435,610 12,870,147 11,923,780 12,126,278 10,868,938

Operating Profit/(Loss) (1,442,201) (3,844,814) (3,526,558) (1,262,261) (986,390)

Non Operating Results

Total Income under Shareholder’s Account

514,509 428,821 428,965 356,791 484,708

Profit/(Loss) before tax (927,692) (3,415,993) (3,097,593) (905,470) (501,682)

Provision for tax - 16,000 18,424 (401,200) 21,500

Profit/(Loss) after tax (927,692) (3,431,993) (3,116,017) (504,270) (523,182)

Miscellaneous

Policyholder’s Account

Total Funds 25,061,691 20,180,364 15,544,875 9,064,638 7,323,751

Total Investments 25,061,691 20,180,364 15,544,875 9,064,638 7,323,751

Yield on Investments 10.07% 11.39% 10.57% 8.34% 9.75%

Shareholder’s Account

Total Funds 7,463,270 6,840,959 5,826,954 7,501,972 6,315,974

Total Investments 7,463,270 6,840,959 5,826,954 7,501,972 6,315,974

Yield on Investments 10.07% 11.39% 10.57% 8.34% 9.75%

Paid up Equity Capital 1,227,750 1,211,933 1,166,729 1,152,239 1,130,811

Net Worth 7,783,003 7,138,048 6,218,545 7,822,890 5,620,133

Total Assets 43,468,654 30,735,618 25,416,339 26,000,255 21,297,597

Yield on total Investments 10.07% 11.39% 10.57% 8.34% 9.75%

Earnings Per Share (`) (7.61) (29.24) (26.80) (4.46) (4.81)

Book Value Per Share (`) 63.82 59.52 53.27 68.66 55.85

Total Dividend - - - - -

Dividend Per Share (`) - - - - -


59


ParticularsFinancial

YearGross Direct Premium

Growth RateNet Retention

RatioNet Commission

RatioUnderwriting Balance Ratio

(Gross direct premium for the current year divided by Gross

direct premium for the previous year)

(Net premium divided by gross direct premium)

(Gross commission paid net of reinsurance

commission divided by net premium)

(Underwriting profit divided by net

premium)

Fire2012-13 45% 25% -15% 25%2011-12 9% 31% -15% -7%

Marine Cargo2012-13 -30% 41% 12% -59%2011-12 79% 24% -7% -30%

Marine Hull2012-13 -19% 19% -9% 112%2011-12 -5% 25% -4% -26%

Motor2012-13 14% 92% 4% -24%2011-12 6% 78% 5% -52%

Employer Liability2012-13 30% 90% 8% 15%2011-12 -5% 90% 7% 19%

Public Liability2012-13 104% 10% -23% 64%2011-12 17% 17% -24% 60%

Engineering2012-13 -6% 18% -73% 70%2011-12 56% 18% -61% 36%

Aviation2012-13 -38% -6% 229% 428%2011-12 -92% -39% -3% 125%

Personal Accident2012-13 -13% 90% 8% -20%2011-12 -16% 84% 8% -33%

Health2012-13 31% 83% 5% -25%2011-12 -11% 84% 7% -24%

Other Miscellaneous2012-13 44% 17% -14% 7%2011-12 25% 28% 7% -61%

Total2012-13 17% 77% 3% -22%2011-12 3% 69% 3% -45%

30. Other Ratios:



Gross Premium to Shareholder’s Fund ratio

Gross direct premium for the current year divided by paid up capital plus free reserves

258% 240%

Growth Rate of Shareholder’s Fund

Shareholder’s Funds as at current balance sheet date divided by Shareholder’s Funds as at previous balance sheet date.

9% 15%

Expenses of Management to Gross Premium

Expenses of Management (operating expenses related to insurance business plus direct commission paid divided by gross direct premium)

25% 28%

Combined Ratio Claims plus expenses of management (operating expenses related to insurance business plus direct commission paid) divided by gross direct premium

81% 101%


Reserve for Unexpired risks plus premium deficiency reserve plus reserve for outstanding claims(including IBNR and IBNER) divided by net premium

209% 170%

Operating Profit Ratio Underwriting profit/loss plus investment income divided by net premium

-4% -27%


60



Liquid Assets to Liabilities Ratio

Liquid assets(short term investment plus short term loan plus cash and bank balances of the insurer) divided by policyholders liabilities(claims outstanding plus reserve for unexpired risk and premium deficiency)

24% 51%

Net Earnings Ratio Profit after tax divided by net premium -6% -29%Return on net worth ratio Profit after tax divided by net worth -12% -48%NPA Ratio - -

Note: The above ratios have been calculated as per IRDA Circular IRDA/F&I/CIR/F&A/012/01/2010 dated January 28, 2010.




Profit/(Loss) available to equity shareholders (` in 000) (927,692) (3,431,993)Weighted Average number of equity shares outstanding during the year

121,981,977 117,371,131

Basic earning per share (`) (7.61) (29.24)Diluted earning per share (`) (7.61) (29.24)

32. Prioryearfigureshavebeenreclassified,wherevernecessary,toconfirmtocurrentyear’spresentation.

(` in 000)

Previous Year Grouping Regrouped in Current YearSchedule Description Schedule Description Amount

Schedule-4 Rents, rates and taxes Schedule-4 Service Tax Expenses 15,172Schedule-12 Unutilised Service Tax Credit

and VATSechedule-13 Service Tax and VAT Liability 14,277

Schedule-13 Reserve for Premium Deficiency Schedule-14 Reserve for Premium Deficiency 2,964Schedule-13 Sundry Creditors Schedule-13 Unallocated Premium 398,341Schedule-13 Sundry Creditors Schedule-13 Employee Related 15,065Schedule-13 Sundry Creditors Schedule-13 Statutory Liabilities 36,128


D. Sengupta S. P. TalwarDirector Director

H. Ansari Rajendra ChitaleDirector Director

Soumen Ghosh Rakesh JainDirector Executive Director and CEO

Hemant K. Jain Mohan KhandekarChief Financial Officer Company Secretary




For the Exclusive use of ________________

For Private Circulation Only For the exclusive use of

Dated: August 12, 2016

Addendum to Information Memorandum of Private Placement for Issue of Listed, Unsecured, Subordinated, Redeemable Non-Convertible Debentures vide RGICL F Series A NCD 01 Pursuant to the Information Memorandum dated July 28, 2016 for the issue of Rated, Listed, Unsecured, Subordinated, Redeemable, Non-Convertible Debentures (“OFC NCDs” / “OFC DEBENTURES”) vide RGICL F Series A NCD 01 (the “Series”), the Company has changed the Issue Schedule, Redemption Date, Tenor, Coupon payment dates, Call Option Date and Call Notification time. The revised date(s)/ information is as below: Series RGICL F Series A NCD 01

Issue Closing Date Tuesday, August 16, 2016

Pay-in Date(s) From Thursday, July 28, 2016 to Tuesday, August 16, 2016

Deemed Date of Allotment Tuesday, August 16, 2016

Tenor Type I 3,653 Days from the Deemed Date of Allotment

Type II 5,478 Days from the Deemed Date of Allotment

Redemption Date / Final Maturity Date

Type I Monday, August 17, 2026

Type II Saturday, August 16, 2031

Coupon payment dates Type I Payable Annually on August 16 each year starting with August 16, 2017 and on maturity i.e. August 17, 2026


Call Option Date Type I N.A.

Type II Tuesday, August 16, 2022

Call Notification Time Type I N.A.

Type II Issuer shall notify the Investor/ Holder atleast 15 days prior to the Call Option Date (i.e. by Monday, August 01, 2022) in case Issuer wishes to exercise the Call Option

Note: If any of the above dates fall on a public holiday, then Modified Following Business Day shall be considered.




Consequently the Illustration of Bond Cash Flows (SEBI Circular CIR/IMD/DF/18/2013 dated October 29, 2013) also stands amended accordingly and is as below: Company Reliance General Insurance Company Limited Series RGICL F Series A NCD 01

Face Value (per security) Rs.10,00,000/- Issue Date July 28, 2016 Date of Allotment August 16, 2016 Date of Redemption Type I

August 17, 2026 Type II August 16, 2031

Coupon Rate 9.10% p.a. 8.95% p.a. Frequency of the Interest Payment Type I

Payable Annually on August 16 each year starting with August 16, 2017 and on maturity i.e. August 17, 2026


Day Count Convention Actual / Actual Day Count Convention Actual / Actual

For RGICL F Series A NCD 01 Type I



Coupon 1 Wednesday, August 16, 2017 365 91,000.00

Coupon 2 Thursday, August 16, 2018 365 91,000.00

Coupon 3 Friday, August 16, 2019 365 91,000.00

Coupon 4 Monday, August 17, 2020* 367 91,249.00

Coupon 5 Monday, August 16, 2021 364 90,751.00

Coupon 6 Tuesday, August 16, 2022 365 91,000.00


Coupon 8 Friday, August 16, 2024** 366 91,000.00

Coupon 9 Saturday, August 16, 2025 365 91,000.00




Coupon 10 Friday, August 17, 2026*** 366 91,249.00

Principal Redemption Monday, August 17, 2026 10,00,000.00

Total 19,10,249.00

* F.Y. 2020 is a leap year. Also, the scheduled coupon payment date is falling on a Sunday, therefore the coupon is paid on the following working day and has been calculated for 367 days ** F.Y. 2024 is a leap year *** The scheduled coupon payment date is falling on a Sunday and the previous day is also a Public Holiday on account of being Independence Day (Saturday, August 15, 2026), therefore the coupon is paid on the following working day which incidentally is the maturity date i.e. Monday August 17, 2026 and thus has been calculated for 366 days For RGICL F Series A NCD 01 Type II






Coupon 4 Monday, August 17, 2020* 367 89,745.00


Coupon 6 Tuesday, August 16, 2022 365 89,500.00


Coupon 8 Friday, August 16, 2024** 366 89,500.00


Coupon 10 Monday, August 17, 2026*** 366 89,745.00


Coupon 12 Wednesday, August 16, 2028**** 366 89,500.00







Principal Redemption Saturday, August 16, 2031 10,00,000.00

Total 23,42,500.00

* F.Y 2020 is a leap year. Also, the scheduled coupon payment date is falling on a Sunday, therefore the coupon is paid on the following working day and has been calculated for 367 days ** F.Y 2024 is a leap year *** The scheduled coupon payment date is falling on a Sunday, therefore the coupon is paid on the following working day and has been calculated for 366 days **** F.Y 2028 is a leap year Note: (i) Payment dates are subject to change as per holidays declared in that particular year. Payment convention to be followed as per SEBI Circular CIR/IMD/DF/18/2013 dated October 29, 2013 Please note that all the other terms and conditions, other than the changes as specified vide this Addendum, for the series RGICL F Series A NCD 01 remain as per the Information Memorandum dated July 28, 2016 issued for such series. For Reliance General Insurance Company Limited

Mohan Khandekar Hemant Jain Company Secretary & Chief Compliance Officer Chief Financial Officer



For the exclusive use of

Dated: August 12, 2016

Supplementary Letter to Information Memorandum of Private Placement for Issue of Listed, Unsecured, Subordinated, Redeemable Non-Convertible Debentures vide RGICL F Series A NCD 01 Dear Sir,

Please refer to the Information Memorandum dated July 28, 2016 issued in your favour for the issuance

of Rated, Listed, Unsecured, Subordinated, Redeemable Non Convertible Debentures on a private

placement basis vide RGICL F Series A NCD 01.

We hereby confirm, that the aforementioned issue is covered under the “CARE AA” & “BWR AA Outlook:

Stable” ratings accorded to Reliance General Insurance Company Limited by Credit Analysis & Research

Limited (CARE) and Brickwork Ratings India Pvt. Ltd. (BWR/ Brickwork) respectively and their respective

rationales dated June 20, 2016 and June 27, 2016 evidencing ratings assigned as mentioned above are

attached in Annexure I which forms an integral part of this letter.

This letter shall be considered as an integral part of the Information Memorandum dated July 28, 2016 for

RGICL F Series A NCD 01.

We request you to take the aforementioned information on record.

Thanking you.

Yours faithfully,


Mohan Khandekar Hemant Jain

Company Secretary & Chief Compliance Officer Chief Financial Officer

Brief Rationale

JUNE 20, 2016 CARE REAFFIRMS RATING TO THE PROPOSED SUBORDINATED DEBT ISSUE OF

RELIANCE GENERAL INSURANCE COMPANY LTD. FOR ENHANCED LIMIT

Ratings

Facilities Amount (Rs. crore) Ratings1 Remarks

Subordinated Debt 230 (enhanced from Rs.100 crore)

CARE AA (Double A)

Reaffirmed

Total 230 (Rs. Two hundred & thirty crore only)

CARE has rated the aforesaid Subordinated debt considering the regulatory conditions and in view of their sensitiveness

to the company’s solvency ratio and profitability due to the regulatory covenants during the long tenure of the

instrument.

Interest payable on Subordinated debt shall be subject to the following:

The Solvency of the issuer remains as per regulatory stipulation,

Where the impact of such payment may result in net loss or increase the net loss, prior approval of Authority for

such payment shall be obtained

Any delay in payment of interest/principal (as the case may be) following the invocation of aforementioned covenants,

would constitute an event of default as per CARE’s definition of default and as such these instruments may exhibit

sharper migration of rating.

Rating Rationale The rating factors in strong parentage (RGIC is wholly owned subsidiary of Reliance Capital Ltd., rated CARE AAA (under

Credit Watch) and demonstrated parent track record of regular capital infusions. The rating further factors in RGIC’s

market share, experienced management, diversified revenues and product profile, improved financial performance,

strong systems and processes as well as geographical diversification of business. The rating also takes into account

moderate solvency ratio of the company. Continued parentage and support, solvency ratio, achieving scale while

maintaining quality of portfolio as well as improvement in financial performance are RGIC’s key rating sensitivities.

Background Reliance General Insurance Company Ltd. (RGIC), incorporated on 17th August 2000, is a wholly owned subsidiary of

Reliance Capital Ltd., rated CARE AAA (Credit Watch). RGIC offers complete bouquet of general insurance products like

fire, marine, health, personal accident, liability, motor etc. As on March 31, 2016, RGIC had branch network and agency

strength of 126 and around 20,500 respectively. The company sources business largely through the network of agents

who are associated with the sales managers.

During 2013-2015, the company’s gross direct premium (GDP) and net premium written (NPW) registered CAGR of

16.24% and 11.29% respectively. However, during FY16, the y-o-y GDP and NPW growth moderated to 2.79% and 5.90%

respectively given the management intend to curtail loss making third party motor portfolio. Motor, health and fire

insurance are major revenue contributing segments for RGIC. During FY16 and FY15, these three segments collectively

1 Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications

Brief Rationale

contributed 88.00% and 85.20% of the total GDP respectively. Since FY14, the company has been making profits on

account of improvement in combined ratio.

The company has moderate solvency position. As on March 31, 2016, RGIC’s solvency margin stood at 1.55x [P.Y.: 1.53x]

as against the regulatory requirement of 1.50x.

Analyst Contact Name: Anuj Jain Tel # 022-67543451 Mobile # 9892209428 Email: [email protected]

**For detailed Rationale Report and subscription information, please contact us at www.careratings.com CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications. Disclaimer: CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments.

In case of partnership/proprietary concerns, the rating assigned by CARE is based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors.

Brief Rationale

CONTACT Head Office Mumbai

Mr. Saikat Roy Mr. Amod Khanorkar Mobile: + 91 98209 98779 Mobile: + 91 98190 84000 E-mail: [email protected] E-mail: [email protected]

CREDIT ANALYSIS & RESEARCH LIMITED Corporate Office: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022

Tel: +91-22-6754 3456 | Fax: +91-22-6754 3457 | E-mail: [email protected] AHMEDABAD Mr. Mehul Pandya 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad - 380 015 Cell: +91-98242 56265 Tel: +91-79-4026 5656 E-mail: [email protected] BENGALURU Mr. Deepak Prajapati Unit No. 1101-1102, 11th Floor, Prestige Meridian II, No. 30, M.G. Road, Bangalore - 560 001. Cell: +91-9099028864 Tel: +91-80-4115 0445, 4165 4529 E-mail: [email protected] CHANDIGARH Mr. Sajan Goyal 2nd Floor, S.C.O. 196-197, Sector 34-A, Chandigarh - 160 022. Cell: +91 99888 05650 Tel: +91-172-5171 100 / 09 Email: [email protected] CHENNAI Mr. V Pradeep Kumar Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769, Anna Salai, Chennai - 600 002. Cell: +91 98407 54521 Tel: +91-44-2849 7812 / 0811 Email: [email protected] COIMBATORE Mr. V Pradeep Kumar T-3, 3rd Floor, Manchester Square Puliakulam Road, Coimbatore - 641 037. Tel: +91-422-4332399 / 4502399 Email: [email protected] HYDERABAD Mr. Ramesh Bob 401, Ashoka Scintilla, 3-6-502, Himayat Nagar, Hyderabad - 500 029. Cell : + 91 90520 00521 Tel: +91-40-4010 2030 E-mail: [email protected]

JAIPUR Mr. Nikhil Soni 304, Pashupati Akshat Heights, Plot No. D-91, Madho Singh Road, Near Collectorate Circle, Bani Park, Jaipur - 302 016. Cell: +91 – 95490 33222 Tel: +91-141-402 0213 / 14 E-mail: [email protected] KOLKATA Ms. Priti Agarwal 3rd Floor, Prasad Chambers, (Shagun Mall Bldg.) 10A, Shakespeare Sarani, Kolkata - 700 071. Cell: +91-98319 67110 Tel: +91-33- 4018 1600 E-mail: [email protected] NEW DELHI Ms. Swati Agrawal 13th Floor, E-1 Block, Videocon Tower, Jhandewalan Extension, New Delhi - 110 055. Cell: +91-98117 45677 Tel: +91-11-4533 3200 E-mail: [email protected] PUNE Mr.Pratim Banerjee 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune - 411 015. Cell: +91-98361 07331 Tel: +91-20- 4000 9000 E-mail: [email protected] CIN - L67190MH1993PLC071691


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APPLICATION FORM

Series No.RGICL F Series A 01

RELIANCE GENERAL INSURANCE COMPANY LIMITED

(Regd. Office: 19, Reliance Centre, Walchand Hirachand Marg, Ballard Estate, Mumbai 400 001)

DEBENTURE/NCD SERIES A APPLICATION FORM SERIAL NO.

ISSUE OF RATED UNSECURED SUBORDINATED REDEEMABLE NON CONVERTIBLE OFC DEBENTURES/NCDs OF Rs. 10,00,000/- (Rupees Ten Lakhs Only) EACH.

SERIES FIXED–A/01 Type _____ DEBENTURES APPLIED FOR: (Minimum Application of 10 (Ten) Series Debenture(s) and in multiples of 01 (one) thereafter) Number of Series Debentures _____________ In words _____________________________ Amount Rs. _____________________ In words Rupees _______________________________ DETAILS OF PAYMENT: Subscribers’ Bank A/c No._____________________Bank Name__________________________________ Cheque / Demand Draft No. _________________ Drawn on____________________________ Funds transferred to Reliance General Insurance Company Limited, HDFC Bank, A/c Nos. 00600350129641 Dated ____________ Total Amount Enclosed (In Figures) ______________________________________________ (In words) _________________________________________________ I/We the undersigned, confirm that the payment/ remittance made for subscription to securities vide this application form has been made as per the details of payment as mentioned above and that the Bank A/c from which such payment/ remittance has been made belongs to the Sole/ First Applicant/ Subscriber. FIRST/SOLE APPLICANT’S NAME IN FULL (CAPITALS) SECOND APPLICANT’S NAME IN FULL (CAPITALS) THIRD APPLICANTS NAME IN FULL (CAPITALS) FIRST/SOLE APPLICANT’S ADDRESS ADDRESS STREET CITY PIN PHONE FAX OCCUPATION E-mail


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FIRST/SOLE APPLICANT’S OCCUPATION ---------------------------------------------------------------------------------- FIRST/SOLE APPLICANT’S PAN. ____________ IT CIRCLE/WARD/DISTRICT _____ SECOND APPLICANT’S PAN. ____________ IT CIRCLE/WARD/DISTRICT _____ THIRD APPLICANT’S PAN. ____________ IT CIRCLE/WARD/DISTRICT _____ I/WE ARE BANK ( ) FINANCIAL INSTITUTION ( ) COMPANY ( ) SEBI REGISTERED FII/FPI ( )

OTHERS ( ) SPECIFY ______ RESIDENTIAL STATUS INDIAN ( ) NON INDIAN ( ) TAX RESIDENTIAL STATUS RESIDENT ( ) NON-RESIDENT ( ) TAX STATUS NON EXEMPT ( ) EXEMPT ( ) (IF EXEMPT PLEASE SPECIFY) ____________ (IF EXEMPT, PLEASE PROVIDE SUPPORTING DOCUMENTS FROM INCOME TAX AUTHORITIES) I/We have read and understood the Terms and Conditions of the issue of Series. I/We bind ourselves to these Terms and Conditions and wish to apply for allotment of these Series. I/We confirm that I/we are not a Non-Resident Indian and/or an Overseas Corporate Body. We request you to please place our name(s) on the Register of Debenture Holders. I/We confirm that unless expressly set out in the Application Form, I/We are applying to the Series as Investors and not as distributors. TO BE FILLED IN ONLY IF THE APPLICANT IS AN INSTITUTION / COMPANY / BODY CORPORATE (INCLUDING SOCIETY)

Name of the Authorised Signatory (ies)

Designation Signature

Unless otherwise requested, the Series will be issued in dematerialised form. Applicant(s) are required to fill up the following particulars for such issuance: REQUEST FOR SERIES IN DEMATERIALISED FORM TOTAL NUMBER OF SERIES I/We the undersigned, want to hold the Series of the Company in the dematerialised form. Details of my/our Beneficiary Account are given below: DEPOSITORY PARTICIPANT NAME DP-ID CLIENT –ID NAME OF THE APPLICANT(S)____________

I/We understand that: i) in case of allotment of Series to me/us, my/our Beneficiary Account as mentioned above would get credited to the extent of allotted Series, (ii) the Applicant must ensure that


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the sequence of names as mentioned in the Application Form matches the sequence of name held with our Depository Participant, iii) if the names of the Applicant(s) in this application are not identical and also not in the same order as the Beneficiary Account details with the above mentioned Depository Participant or if the OFC Debentures cannot be credited to my/our Beneficiary Account for any reason whatsoever, the Company shall be entitled at its sole option to reject the application. I/We understand that in case of allotment of Series to me/us, the Applicant must ensure that the sequence of names as mentioned in the Application Form matches the sequence of name in the debenture certificate. I/We the undersigned, request you to credit all remittances including redemption proceeds of principal and coupon/ interest as well as all periodic coupon/ interest payments as per the below mentioned bank details for the beneficiary BANK NAME BANK BRANCH BENEFICIARY ACCOUNT NAME BENEFICIARY ACCOUNT NUMBER The details mentioned above would be used for all correspondence with the applicants including mailing of Allotment Letters and printing of bank particulars on the refund/interest order (if any). By signing the Application Form, the applicant would have deemed to have authorized the depositories to provide, upon request, to the Registrar to the Issue these relevant details. Applicant may note that delivery of Refund Orders/Allotment of Series in the Demat Account/Allotment Letters may get delayed if the details provided by the applicant are incorrect. Please note that any such delay shall be at the applicant’s sole risk and neither Company nor the Registrars shall be liable to compensate the applicant for any losses caused to the applicant due to any such delay or liable to pay any interest for such delay. I / We understand that the Issuer may communicate to or intimate me / us only by e-mail or facsimile message and I / we undertake to accept the same as a valid communication or intimation as if such communication or intimation had been otherwise hand delivered or delivered by registered post or courier. I / We undertake that upon sale or transfer to subsequent investor or transferee (“Transferee”), I / We shall convey all the terms and conditions contained herein and in the Shelf Disclosure Document (including the fact that these Series cannot be sold to a Non-Resident Indian and/or an Overseas Corporate Body) to such Transferee. I / We undertake that we shall not sell or transfer the Series to a Non-Resident Indian and/or an Overseas Corporate Body. In the event of any Transferee (including any intermediate or final holder of the Series) suing the Issuer (or any person acting on its or their behalf) we shall indemnify the Issuer (and all such persons acting on its or their behalf) and also hold the Issuer and each of such person harmless in respect of any claim by any Transferee. I / We confirm that there are no litigation or legal action pending or taken by any Ministry or Department of the Government or a statutory authority against any promoter of the offeree company during the last three years immediately preceding the year of the circulation of the offer letter. Sole/First Applicant’s Second Applicant’s Third Applicant’s Signature Signature Signature


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FOR OFFICE USE ONLY DATE OF RECEIPT ______________________ DATE OF CLEARANCE _________________ (Note: Cheque and Drafts are subject to realisation)