AnnualReport 2011-12

A n n u a l R e p o r t 2011 - 12
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Agriculture Insurance Company of India Limited
CONTENTS
Directors and Management 2
Board of Directors 3
Senior Management Team 4
Team of Regional Managers 5
Chairman’s Speech 6
C & AG Report 9
Auditors’ Report 10
Directors’ Report 13
Management Report 27
Revenue Account 29
Profit & Loss Account 30
Balance Sheet 32
Schedules to the Accounts 33
Significant Accounting Policies and Notes Forming Part of Accounts 42
Summary of Financial Statements 64
Summary of Accounting Ratios 65
Cash Flow Statement 66
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A n n u a l R e p o r t 2011 - 12
DIRECTORS AND MANAGEMENT

Chairman-cum-Managing Director
Mr. Milind A. Kharat
Directors
Mr. R.K. Tiwari Mr. Mukesh Khullar Mr. Shashank Saksena
Mr. K.N. Bhandari Mr. Gopal Naik Mr. S.K. Mitra
Mr. S.K. Chanana Mr. Kuldip Singh Mr. P.J. Joseph
Mr. R.K. Deka Mr. P.K. Bhagat
Deputy General Managers

Mr. R. Alagar Mr. K.N. Rao
Mr. M.K. Poddar Mr. Avinanda Ghosh
Mr. Rajeev Chaudhary Mr. P. Nagarjuna
Appointed Actuary
Mr. S. Chidambram
Company Secretary
Ms. Kanika Sharma Shandil
Auditors
M/s S.C. Vasudeva & Co., Chartered Accounts
M/s K.K. Ghei & Co., Chartered Accountants
Registered Office
“Ambadeep” (13th Floor)
14, Kasturba Gandhi Marg, New Delhi- 110001
Phone : 011-46869800, Fax : 011-46869815
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BOARD OF DIRECTORS
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A n n u a l R e p o r t 2011 - 12
SENIOR MANAGEMENT TEAM
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TEAM OF REGIONAL MANAGERS
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A n n u a l R e p o r t 2011 - 12
CHAIRMAN’S SPEECH
Dear Shareholders,
I have great pleasure in welcoming you all to the 9th Annual General Meeting of Agriculture Insurance Company of
India Limited.
The Annual Report containing the Directors’ Report and the Audited Accounts for the year ended 31st March 2012
has been sent and, I am sure, you have had the opportunity to peruse them.
Crop insurance was introduced by Government of India,in the year 1985, and GIC was the first implementing
agency. Later on with effect from April, 2003, AIC took up the responsibility. Since then AIC has grown multifold,
and provides crop insurance cover to nearly 2.5 crore farmers. Currently, AIC is the implementing agency for the
flagship Government Scheme viz., National Agricultural Insurance Scheme (NAIS). Further, AIC is also implementing
Modified NAIS (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) & Pilot Coconut Insurance Schemes
and other commercial crop insurance scheme.
Internationally crop insurance has many facets. Mexico has a well-defined public-private partnership for agricultural
insurance termed as the National System for Insurance of the Rural Sector. In China insurance is operated as a
social welfare mechanism to protect farmers against natural disasters where as in Brazil the federal government
formed PROAGRO (Guarantee Program for Agriculture and Livestock Activities), a national, individual grower
multi-peril crop insurance (MPCI) program linked to crop credit. There is one common feature internationally that
is the public support for agricultural insurance.
COMPANY’S PERFORMANCE
In the given context, I would like to place the performance of your Company during FY 2011-12. Your Company has
achieved 32% growth in gross direct premium. The management expenses have been reduced to 1.6% from 2.3%
over last financial year. Further annual average yield on investment income increased to 8.98% as compared to
7.85% during 2010-11. The Profit After Tax during the financial year 2011-12 is 502 crore as against 380 crore
of financial year 2010-11, registering a growth of 32%. Your Company has transferred 473.07 crore to the
General Reserve from the balance amount of ‘Profit after Tax and Appropriations’, after recommending a dividend
of 12.5% aggregating to 25 crore (exclusive of dividend tax).
The Company has insured nearly 2.5 crore farmers covering 3.43 crore hectares of land with sum insured of
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50439 crore in the financial year 2011-12.

I would also like to inform you that your Company has successfully completed the mandate given by the Government
of India for completion of Annual Accounts 2011-12 well within the timelimit i.e. on 14th May, 2012.
DIVIDEND
The Company continues to evaluate and manage its dividend policy to build long term Shareholder value. For the
financial year 2011-12, a dividend of 12.5% ( 1.25/- per share) is recommended aggregating to 25 crore
(exclusive of corporate dividend tax) to be approved by the Members of the Company.
DECADE OF PROGRESS
Your Company was incorporated on 20th December, 2002 and has completed a decade of dedicated service to the
farmers of the Country. The progress of your Company is certainly commendable at the completion of the first
decade. The turnover of the Company has increased by more than 7 times, from 369 crore to 2577 crore, and the
net worth increased by 8 times to 1596 crore as on 31st March, 2012. The point which needs to be highlighted here
is that the multifold growth has been achieved over the decade without much addition in infrastructure and HR costs.
NEW INITIATIVES
The Company has taken many new initiatives. The details are as follows:-
Remote Sensing-Based Information and Insurance for Crops in Emerging Economies (RIICE)
Remote Sensing-Based Information and Insurance for Crops in Emerging Economies (RIICE) uses Synthetic
Aperture Radar technology (SAR) and crop modeling tools to gather data related to rice yield and design effective
risk management solutions to support index-based crop insurance products. RIICE is expected to estimate the
yields at village level far more accurately. AIC is partnering RIICE project with GIZ, (German International Coop)
Allianz Re, International Rice Research Institute (IRRI), Philipines & Tamil Nadu Agricultural University. The project
is to commence during 2012-13 in two or three districts of Tamil Nadu where MNAIS is being implemented. RIICE
developed village level yields shall be validated with Crop Cutting Experiments (CCEs) based yield estimates. This
would help to move from the manual CCEs based yield estimation to technology based yield estimation, and thus,
improve the accuracy of yield estimation as well as faster settlement of claims.
Terrestrial Observation and Prediction System (TOPS)
TOPS (Terrestrial Observation and Prediction System) technology, developed by National Aeronautics and Space
Administration (NASA) scientists, integrates surface weather, satellite data with empirical/mechanistic models to
monitor and predict crop growth profiles, crop stress and yields. In order to generate village level historical weather
data of past 15 years as well as future three years, AIC commissioned a pilot in Maharashtra wherein the daily
data will be generated for over 30,000 villages. This data is expected to assist AIC in fine-tuning the WBCIS
products, as also in minimizing the basic risk. If found feasible, TOPS could be used to supplement / complement
the existing weather station network, hugely minimizing the investment in setting up weather stations.
Crop Yield Audit Systems
Currently, more than 1.2 million Crop Cutting Experiments are conducted every season to collect crop yield data
used for both policy purpose and insurance purpose. AIC with assistance from the World Bank started a pilot to
use GPS enabled cellular phones to geo-tag, time-stamp, record, and transmit the data on near real-time basis.
The pilot commenced with deployment of 50 cellular phones in Maharashtra for Rabi 2010-11 season, which was
extended to Rajasthan during Rabi 2011-12 season by deploying additional 50 cellular phones. Re-insurers have
responded positively to the initiatives, indicating the potential benefits if adopted nationally. The project is expected
to (i) create and implement centralized data management system to accept incoming data for all States;
(ii) develop formal data monitoring, auditing, and cleaning techniques; and (iii) provide data to insurance providers
and Government in a standard format as appropriate.
Index-Plus Insurance Products
In order to capture and mitigate the hailstorm risk of apples and grapes, AIC with approval from the Government of
India launched a pilot on ‘index plus’ insurance. The product gives payout based on weather deviations in case of
parametric weather, and on individual loss assessment basis for hailstorm and other localized risks. The pilot is
introduced during Rabi 2011-12 for apple in Shimla (HP) and for grapes in Nasik (Maharashtra).
During the year, we have taken steps towards aligning our processes and systems. We have fine-tuned some of
the accounting policies so that they are better aligned to the exclusive nature of our business. These have
reflected in the results for the financial year 2011-12.
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A n n u a l R e p o r t 2011 - 12
IT IMPLEMENTATION
The Technology enablement Project of the Company, ANNAPOORNA, is in an advanced stage of deployment, and
most of the major Applications have been automated. The Business Operations are live, and so are the Financial
Management System and a host of other Applications. Change Management initiatives have ensured the comfort
of the users in adapting to the new regime and acceptance of the new system by them. The farmers of the country
have been enabled to voice their grievances (if any) directly to the Company from their own place, through the
online facility provided in our Portal. In the coming year, we plan to further empower the farmers by enabling them
to take “anytime-anywhere” online crop insurance coverage, by operationalizing the Online Window in our Portal.
AWARDS
The fundamentals of the Project ANNAPOORNA are strong in terms of connectivity matrix, security architecture
etc. which has received industry recognition by way of the “CISO (Chief Information Security Officer) 2012” Award
for the second consecutive year.
HUMAN RESOURCE MANAGEMENT

The senior officials of Ministry of Finance headed by Chief Liaison Officer & Director appointed for review of
implementation of policies in respect of SC/ST & OBC employees and Persons with Disabilities have appreciated
the implementations by the Company.
The FY 2011-12 witnessed completion of the promotion exercise in accordance with the HR Consultants Report.
The Company promoted 47 Officers in various cadres of Class I. Apart from this, I would like to share with you that
Companyhas booked 6 flats in CWG DDA flats and further,we are in the process of recruiting Scale I Officers,
which we hope to complete by September, 2012.
I hope you will appreciate the good financial performance on both growth and profitability fronts during 2011-12.
However, there is huge scope for increasing coverage as out of 120 million farmers only 25 millions are insured
under crop insurance schemes. Majority of the farmers, nearly 90% are loanee farmers where as penetration of
non-loanee farmers are abysmally low at 10%.Your Company therefore,would be utilizing agency network of
GIPSA Companies to solicit crop insurance from non-loanee farmers. The Government of India has a plan to
double the farmers’ coverage during 12th plan from 25 million to 50 million.
CHALLENGES
Competition in the crop insurance is hotting up through the entry of more and more private company players. For
our Company the absence of country wide distribution network has been one of the obstacles in reaching out to
farmers/banks/co-operatives for business expansion and increasing farmers’ coverage. Availability of wide spread
network of Automated Weather Station (AWS) is required for WBCIS. Another major challenge is continuation of
farmers’ participation in crop insurance schemes on sustained basis.
Shortage of the staff at Regional Office level has been a hindrance in the customer service. There is also need for
training & continuous up-gradation of skills of the staff. Delay in full scale IT implementation is also hindering the
progress of the Company.
Further, I would like to inform that the risk sharing pattern under NAIS has been modified with effect from Kharif
2011 whereby your Company will be liable for entire claims wherever actuarial premium is charged. Henceforth
your Company will be liable for (i) all additional claims arising out of additional coverage/ higher indemnity level
opted under the provisions of the scheme and also for (ii) all claims arising under Annual Commercial & Horticultural
Crops. Your Company has taken adequate measure to mitigate this additional risk and accordingly amended the
pricing methodology under NAIS and also has arranged for adequate reinsurance protection.
ACKNOWLEDGEMENTS
I would like to thank the outgoing Board members for their contribution and support and welcome the new members
of the Board. I would also like to thank all of our stakeholders- Clients, Business partners, Bankers, Center / State
Government(s) and various Government Authorities for the constant encouragement and support throughout the
year. I also like to record the appreciation for the efforts of all the AIC’ites- for their total dedication and hard work.
I am sure the future holds some of the best and brightest moments for the Company.
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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE
COMPANIES ACT, 1956 ON THE ACCOUNTS OF AGRICULTURE INSURANCE COMPANY OF INDIA LIMITED,
NEW DELHI FOR THE YEAR ENDED 31ST MARCH 2012
The preparation of financial statements of Agriculture Insurance Company of India Limited, for the year ended 31st
March 2012 in accordance with the financial reporting framework prescribed under the Insurance Act,1938 read
with the Insurance Regulatory and Development Authority (Preparation of Financial Statement and Auditor’s Report
of Insurance Companies) Regulation, 2002 and the Companies Act, 1956, is the responsibility of the management
of the Company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under section
619(2) of the Companies Act, 1956 are responsible for expressing opinion on these financial statements under
section 227 of the Companies Act,1956 based on independent audit in accordance with the auditing and assurance
standards prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to
have been done by them vide their Audit Report dated 14th May 2012.
I, on behalf of the Comptroller and Auditor General of India, have decided not to review the report of the Statutory
Auditors on the accounts of Agriculture Insurance Company of India Limited, for the year ended 31st March 2012
and as such have no comments to make under section 619(4) of Companies Act, 1956.
for and on behalf of the

Comptroller and Auditor General of India
Sd/-
(Naina A.Kumar)
Principal Director of Commercial Audit & Ex-Officio Member, Audit Board-II
New Delhi
Place: New Delhi
Date: 20-June-2012
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A n n u a l R e p o r t 2011 - 12
M/s S. C. Vasudeva & Co., M/s. K. K. Ghei & Co.,

Chartered Accountants, Chartered Accountants,
B-41, Panchsheel Enclave, 806, Hemkunt House, 6
New Delhi – 110017 Rajendra Place, New Delhi-110008
AUDITORS’ REPORT
To the Members of
AGRICULTURE INSURANCE COMPANY OF INDIA LIMITED
1. We have audited the attached Balance Sheet of AGRICULTURE INSURANCE COMPANY OF INDIA
LIMITED as at 31st March 2012, the annexed Revenue Account and Profit and Loss Account in respect of
crop insurance business and Cash Flow Statement for the year ended on that date, in which are incorporated
the returns of seventeen Regional Offices audited by the other firms of Chartered Accountants, which have
been taken into consideration by us. These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these financial statements based on our
audit.
2. The Balance Sheet, Profit and Loss Account and Revenue Account have been prepared in accordance
with the provisions of Section 11(1) of the Insurance Act, 1938, read with the provisions of sub sections
(1), (2) and (5) of Section 211 and sub section (5) of Section 227 of the Companies Act, 1956, to the extent
applicable and also as per the provisions of the Insurance Regulatory and Development Authority (IRDA)
Act, 1999.
3. We conducted our audit in accordance with the auditing standards generally accepted in India.Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the management, as well as
evaluating the overall financial statement presentation.We believe that our audit provides a reasonable
basis for our opinion.
4. We report that:
(a) During the Financial Year 2009-10, the company has paid an amount of 200,00,00 thousands
to the Consolidated Fund of India in terms of Govt. letter Ref. F.No.C-13014/16/2004-Ins.I dated
23.12.2009 as a prelude to the recasting of the National Agricultural Insurance Scheme and the
same is continued to be shown as ‘Advances and Other Assets’ in the Balance Sheet. This
amount has not been adjusted against the retained profits / reserves, pending recasting of the
said scheme. This has resulted in overstatement of Advances and Other Assets and Reserves of
the company to that extent. (Refer Note 4.12 of Annexure 2)
(b) The company’s accounting policy (Accounting Policy No. 3.1) in respect of recognizing premium
of Government Schemes being implemented by the Company upon remittance received from the
Nodal Banks out of such premium collected by them and assumption of risk despite not receiving
such premium is not in accordance with the accrual concept of accounting (Fundamental
Accounting Assumptions) as laid down in Accounting Standard 1 “Disclosure of Accounting Policies”
and Accounting Standard 9 “Revenue Recognition’ as prescribed under ‘The Companies (Accounting
Standard) Rules, 2006’ and not compliant with Section 64 VB of the Insurance Act, 1938.
Accordingly, the non accounting of balance of NAIS Premium receivable for Rabi 2011-12 as
current year income (as referred in Note 4.14 of Annexure-2) & non adjustment for corresponding
figures for the previous year has resulted in understatement (or overstatement) of current year
premium. The monetary impact of the same is not ascertainable.
Similarly, the non accounting of the claims relating to the above stated premium receivable (as
referred in Note 4.14 of Annexure-2) & non adjustment for corresponding figures for the previous
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year’s claims has resulted in understatement (or overstatement) of current year claims.The monetary
impact of the same is not ascertainable.
(c) Assets and liabilities relating to crop insurance business taken over from GIC are subject to
approval of the Government of India (refer Note No. 2 of Notes on Accounts – Annexure -2).
5. We further report that:
a. We have obtained all the information and explanations, which, to the best of our knowledge and
belief, were necessary for the purpose of our audit and found them satisfactory.
b. In our opinion, proper books of accounts as required by law have been kept by the Company so
far as it appears from our examination of those books.
c. In our opinion proper returns from the Regional Offices have been received and are adequate for
the purpose of our audit. We relied upon the work of Branch Statutory Auditors for information
contained in such returns.
d. The Company’s Balance Sheet, Revenue Account and Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of account and returns.
e. The actuarial valuations of liabilities as at the year-end are duly certified by the Appointed Actuary.
We have relied upon such certification for forming our opinion on the financial statement of the
Company.
f. All the directors of the company are nominees of public financial institutions or Government of
India and as per General Circular No. 8/2002 dated 22/08/2002 of the Department of Company
Affairs, the nominee directors appointed on the Board of the Company by public financial institutions,
within the meaning of section 4A of the Companies Act, 1956, and Central Government are
exempt from the applicability of the provisions of Section 274 (1) (g) of the Companies Act, 1956.
g. In our opinion, the Balance Sheet, Revenue Account and Profit & Loss Account comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, to the extent
applicable to the Company and are also in conformity with the accounting principles as prescribed
in the IRDA (Auditor’s Report) and IRDA (Preparation of Financial Statements) Regulations or any
order or direction issued by IRDA in this behalf.
h. In our opinion, the investments have been valued in accordance with the provisions of the Insurance
Act, 1938 and the applicable IRDA Regulations, 2002.
i. In our opinion and to the best of our information and according to the explanations given to us, the
said accounts read with the Significant Accounting Policies and Notes thereon are prepared and
give the information as required by the Insurance Act, 1938; the Insurance Regulatory and
Development Authority Act, 1999, and the Companies Act, 1956, to the extent applicable and in
the manner so required and, subject to our observations and the possible effects of the matters
stated above in Paragraph 4(a), 4(b), and 4(c), having consequential effect on the Revenue
Account, Profit & loss account, Assets, Liabilities and Reserves and Surplus as on 31.03.2012
to the extent as quantified as above and to the extent not ascertainable give a true and fair view
in conformity with the accounting principles generally accepted in India.
(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March,
2012;
(ii) in the case of the Revenue Account, of the surplus in Crop Insurance business for the
year ended on 31st March, 2012;
(iii) in the case of the Profit & Loss Account, of the Profit of the Company for the year ended
on 31st March, 2012; and
(iv) in the case of Cash Flow Statement, of the cash flow for the year ended on 31st March,
2012.
6. Further on the basis of our examination, we certify that:
(a) We have reviewed the management report and there is no apparent mistake or material
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A n n u a l R e p o r t 2011 - 12
inconsistency with the financial statements.

(b) As per information and explanations given by the management, the terms and conditions as laid
down in Section 3(4) of the Insurance Act, 1938 regarding registration have been complied with.
(c) To the best of our information and explanations given to us and representations made by the
Company, the Company is not a trustee of any trust.
(d) We have verified the cash and bank balances, investments on the following basis:
Cash: Physical verification and Branch Auditors’ report.
Bank Balance: Bank certificate and Branch Auditors’ report.
Investments: Custodian certificate and Management certificate.
(e) To the best of our information and explanations given to us and on the basis of representations
made by the Company, 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’ fund.
For M/s. S. C. Vasudeva & Co. For M/s. K. K. Ghei & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No. 00235N Firm Regn. No. 01342N
Abhinav Khosla D. S. Sobti

Partner Partner
M. No. 087010 M. No. 016416
Place: New Delhi

Date:14th May 2012
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Directors’ Report
To
The Shareholders of the Agriculture Insurance Company of India Limited
Your Directors take pleasure inpresenting the 9th Annual Report of the Company, along with the Audited Statement
of Annual Accounts for the financial year ended on March 31, 2012.
FINANCIAL PERFORMANCE
SN PARTICULARS Current Year Previous Year
2011-12 2010-11
REVENUE ACCOUNT ( in crore)
1 Gross Direct Premium 2577 1950
2 Net Premium (net of re-insurance) 1357 1283
3 Net Premium Earned 1320 1276
4 Net Incurred Claims 1026 950
5 Commission Earned (Net) (244) (137)
6 Operating Expenses 41 45
7 Net Investment Income apportioned to Revenue A/c 150 128
8 Revenue Profit/(Loss) 648 520
PROFIT & LOSS ACCOUNT
8 Net Investment Income apportioned to P&L A/c 94 52
9 Other Incomes 5 0.65
10 Prior Period Expenses & Adjustments 0 0
11 Other Expenses & Provisions (2.12) (0.59)
12 Profit Before Tax 745 573
13 Provision for Taxes 242 193
14 Profit After Tax 502 380
15 Previous year set-off & adjustments NIL NIL
16 Proposed Dividend 25 20
17 Dividend Distribution Tax 4 3
18 Transfer to General Reserve 473 357
19 Balance of Profit c/f NIL NIL
The Board approved & adopted Annual Accounts for the year 2011-12 at its 49th Meeting held on 14.05.2012 along
with Statutory Auditors’ Report.
BUSINESS OPERATIONS & OPERATING RESULTS
The Gross Direct Premium (GDP) during 2011-12 is 2577 crore, as against 1950 crore during the previous
year, registering an accretion of 627 crore, with the growth rate of 33%. The Gross Premium booked under NAIS
was 950 crore in comparison to 1012 crore in 2010-11. Though NAIS along with M NAIS contributed 11%
growth, WBCIS recorded a phenomenal increase of 58% over the last financial year. The Company’s net retention
is 30% as per last year. Net Earned Premium (Net of Reinsurance) during 2011-12 is 1320 crore (previous year
1276 crore). RUR provisioning during 2011-12 has been increasedto 678.55 crore being 50% of the Net
Premium (previous year 641.66crore). Gross Incurred Claims ratio during 2011-12 is 80% (NAIS 80%,MNAIS
73%& WBCIS 80%), as against 73% (NAIS 73.2 % & non-NAIS 73 %), during the previous year. Management
Expenses during 2011-12 are 1.6% of GDPI. Investment portfolio of the Company as on 31stMarch, 2012 stands at
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A n n u a l R e p o r t 2011 - 12
3224 crore (previous year 2653crore). Investment Income during 2011-12 is 244 crore (average rate of return
8.98%). Net Worth of the Company as on 31stMarch, 2011 is 1396 crore without considering 200 crore adhoc
payment to Government of India(previous year 1123 crore). The Net Profit as on 31st March, 2012 502 crore in
comparison to 381 crore as on 31st March, 2011.
The Monsoon 2011
For the Country as a whole, cumulative rainfall during year 2011 (up to 14 September 2011) was been 3% above
Long Period Average. Out of 36 in 24 and deficient in 04 (mainly over east & northeast India) sub-divisions. In area-
wise distribution, 91% area of the Country received excess/normal rainfall. 466 (77%) out of 603 districts of the
Country received normal to excess rainfall.
National Agricultural Insurance Scheme
The National Agricultural Insurance Scheme (NAIS) is being implemented in the country from Rabi 1999-2000 with
the objective of providing a comprehensive insurance solution to the farmers in the event of failure of or damage to
any of the notified crops as a result of natural calamities or widespread incidence of pests and diseases.
The Scheme is available to all the farmers (both loanee and non-loanee) irrespective of their size of holding and
operates on the basis of “Area Approach”, wherein a particular area, viz., Tehsil or block or Gram Panchayat or
even Village is treated as unit of insurance. The states viz. Andhra Pradesh, Bihar, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Sikkim, Andaman & Nicobar Islands, Tamil Nadu, Uttarakhand, Uttar Pradesh, West
Bengal, Puducherry, Odishahave reduced the insurance unit to Gram Panchayat level from the initially adopted
level of Mandal/Block/Tehsil/Taluka/ District.
The Scheme envisages coverage of all the Food Crops (cereals, millets and pulses), Oilseeds and other Annual
Commercial/Horticultural crops in respect of which the past yield data is available for adequate number of years.
At present, 35 different crops in Kharif and an equal number of different crops in Rabi season are being covered.
Though as per the Scheme provisions, small and marginal farmers are eligible for 10% premium subsidy but some
State Governments have decided to extend additional premium subsidy to their farmers in select areas/ crops to
all farmers/ small & marginal farmers. State Government of West Bengal decided to bear 100% premium apart
from usual premium subsidy in Rabi 2011-12, while Andaman & Nicobar Islands administration decided to follow
the same in Kharif 2011 and Rabi 2011-12 seasons.
Efforts are being made to cover the gap between the insurable loan disbursed by the financial institutions and the
loans being insured through regular liaison with the banks. NABARD Inspection reports in respect of regional rural
banks and cooperative banks are also helpful to AIC to identify the gaps.
Government of India has modified the risk sharing pattern under NAIS with effect from Kharif 2011 whereby your
Company will be liable for entire claims wherever actuarial premium is charged, i.e., henceforth your Company will
be liable for (i) all additional claims arising out of additional coverage/ higher indemnity level opted under the
provisions of the scheme and also for (ii) all claims arising under Annual Commercial & Horticultural Crops. Your
Company has taken adequate measure to mitigate this additional risk and accordingly amended the pricing
methodology under NAIS and also has arranged for adequate reinsurance protection.
During the past 24 seasons, beginning from Rabi 1999-2000 till Kharif 2011 seasons (till 15th May 2012) 18.76
crore farmers have been covered for a sum insured of 244680 crore and cultivating area of 28.39 crore hectares;
the total amount of claims of 23187 crore have been reported at a claim ratio of 317.42% benefiting 4.92 crore
farmers. Under the Scheme, 26% of the insured farmers have received claims. During this period, Kharif seasons
have accounted for 76% of insured farmers, 74% sum insured, 79% premium, 77% claims, 309% claim ratio and
74% of benefited farmers. The share of non loanee farmers in Kharif 2011 season was 25%. During this season,
Maharashtra, Andhra Pradesh and Karnataka accounted for 90% of insured non- loanee farmers while Maharashtra,
Andhra Pradesh, Madhya Pradesh, Odisha, Uttar Pradesh and Chattisgarh accounted for 77% of insured farmers.
Andhra Pradesh, Gujarat, Madhya Pradesh, Odisha and Maharashtra accounted for 78% premium for the season.
The disbursement of claims has been expedited as claims are being disbursed without waiting for both Government
of India and State Government share in claims to be received.
Non-NAIS Portfolio
The Non-NAIS segment reported improved coverage in terms of the number of locations, number of crops insured,
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farmers covered and gross premium under different schemes/products. AIC also implemented the Modified National
Agricultural Insurance Scheme (MNAIS) on pilot basis during 2011-12.
Weather Based Crop Insurance Scheme
WBCIS was implemented by the Company in 14 States in Kharif 2011 and 13 States in Rabi 2011-12, covering, in
all, more than 35 different crops, including perennial crops like apple, citrus crops, grapes, mango, pomegranate,
cashew nut, Oil palm etc. WBCIS intends to provide insurance protection to farmers against adverse weather
incidence, such as deficit and excess rainfall, long dry spells, fluctuations in minimum and/or maximum temperature,
relative humidity, wind speed etc. which deem to impact the crop production adversely. It has the advantage to
process claims within a short time of occurrence of adverse weather incidence. WBCIS is based on actuarial
rates of premium, but to make the Scheme attractive, premium actually charged from farmers in respect of food
and oilseed crops is capped “at par” with NAIS, and for annual commercial and horticultural crops, the same has
been capped at 6 percent.
Your Company insured about 75.96 lakh hectares of cultivable land in respect of 52.63 lakh farmers for a sum
insured of 8341 crore, earning a premium of 837.01 crore during Kharif 2011 and about 38.49 lakh hectares of
land sown by about 31.10 lakh farmers for a sum insured of 6684 crore, for a premium of 564.22 crore during
Rabi 2011-12. The reported claims,as on date of preparing this report, for Kharif 2011 is at 338.83 crore and the
same for Rabi 11-12 is 338.84 crore.
Modified National Agricultural Insurance Scheme (MNAIS)
Modified National Agricultural Insurance Scheme (MNAIS) was approved for its implementation on pilot basis in 50
districts from Rabi 2010-11. During Kharif 2011, AIC implemented MNAIS in 31 districts in 13 States insuring 4.17
lakh farmers for a sum insured of 1127.90 crore against premium of 111.30 crore and during Rabi 2011-12 in 37
districts in 16 States insuring 5.97 lakh farmers for a sum insured of 1531 crore against premium of 144.57
crore.So far total claims reported in respect of Kharif 2011 are 59.14 crore. The Pilot MNAIS is being continued
during 2012-13 as well.
Coconut Palm Insurance Scheme (CPIS)
CPIS, covering death / loss of coconut bearing palms was approved by the Govt. of India, on pilot basis for 8 States
viz. Andhra Pradesh, Maharashtra, Goa, Karnataka, Kerala, Orissa, Tamilnadu and West Bengal. The pilot, supported
by the Coconut Development Board, was implemented in six States, viz. Maharashtra, Karnataka, Kerala, Orissa,
Tamilnadu and West Bengal during 2011-12. CDB provides 50 percent subsidy in premium, while the concerned
State to the extent of 25%, and the grower bears the balance 25% of the premium. Under CPIS 2011, about 0.08
lakh farmers’ plantations were insured for a sum insured of 45.92 crore, earning a premium of 0.23 crore during
the year.
Other Products
Apart from the above, AIC also implemented various in-house products, including Rainfall / Varsha Bima, Coffee,
Bio fuel, Rubber etc.
PRODUCT DEVELOPMENT
Your Company continued its efforts to study design and fine-tune various farmer-friendly products to cater to the
specific insurance needs of the farming community. The Company made effort to ensure that these products,
while conforming to sound actuarial (commercial) principles, are also affordable to the farmers.
REINSURANCE
For the financial year 2011-12, the Company retained only 30% of its risk based premium and ceded 70% to
reinsurance on quota share basis in the local and the international market. Our net retention is further protected by
stop-loss cover.
INVESTMENTS
Investment portfolio of the Company as on 31st March, 2012 stands at 3224 crore (previous year 2653 crore).
The investible funds are placed in accordance with the Investment Policy 2011-12 under the supervision of the
Investment Committee of the Board. During 2011-12, the Company was able to earn an investment income of
244 crore (previous year 182 crore) at an annual average yield of 8.98% as compared to 7.85% during 2010-11.
The investment in government and other securities is made on ‘held to maturity’ basis; therefore, the market
16
A n n u a l R e p o r t 2011 - 12
fluctuations do not have any impact on the yield.

EXPENSES OF MANAGEMENT
During financial year 2011-12, the Expenses of Management of the Company amounted to 41.18 crore (previous
year 44.80 crore), resulting in ME ratio of 1.6%(previous year 2.3%).
DIVIDEND
Based on the Company’s performance, the Directors are pleased to recommend for approval of the Members a
dividend of 1.25/- per share on 20,00,00,000 Equity Shares of 10/- each of the Company for the financial year
2011-12 aggregating to 25 crore (exclusive of corporate dividend tax). The dividend, if approved, will be paid to the
eligible members well within the stipulated period.
TRANSFER TO GENERAL RESERVES
The Company has transferred 473.07 crore to the General Reserve from the balance amount of ‘Profit after Tax
and Appropriations’.
SOLVENCY MARGIN
Your Company has been able to maintain Solvency Ratio much above the stipulated requirement of 1.5. The
Solvency Ratio of your Company as on 31st March, 2012 stands at 3.18 (previous year 3.71). This solvency has
been arrived at without considering 200 crore ad-hoc payment made to the Government of India as per their letter
no. F. No. C-13014/16/2004- Ins. I dated 23.12.2009, although the same, pending recasting of the National
Agricultural Insurance Scheme, has been accounted for as ‘Other Advances’ in the Annual Accounts as on 31st
March 2012
MATERIAL CHANGES AND COMMITMENTS
No material changes and commitments affecting the financial position of the Company has occurred between April
1, 2011 and the date on which this Report has been signed.
PUBLIC DEPOSITS
During the year under review, the Company has not accepted any deposit from the public under Sections 58A and
58AA of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, 1975.
ADDITIONAL INFORMATION REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN
THE REPORT TO THE BOARD OF DIRECTORS) RULES, 1988
Your Company is registered for crop insurance activity only and as such, there are no particulars to be disclosed
under the Companies (Disclosure of Particulars in the Report to the Board of Directors) Rules, 1988 with regard to
conservation of energy / technology absorption.
The particulars of Foreign Exchange earnings/outgo as required by the Companies Act under Section 217(1) (e)
are as given below:-
Foreign Exchange earnings : NIL
Foreign Exchange outgo : NIL
STATUTORY AUDITORS AND SUPPLEMENTARY AUDIT BY C&AG
The Statutory Audit Report by the Joint Statutory Auditors, namely, M/s S. C.Vasudeva & Co, Chartered Accountants,
New Delhi & M/s K. K. Ghei & Co, Chartered Accountants, New Delhi, as appointed by the Comptroller and
Auditor General of India [C&AG], is annexed to the Financial Statements for the year ended on 31st March 2012.
The Board of Directors wishes to place on record its appreciation for the services rendered by the Statutory
Auditors. The observations of Statutory Auditors in their report, read with the relevant notes to accounts, are self-
explanatory and, therefore, do not require any further explanation.
It is pertinent to mention here that as per the provisions of Section 619 (3) of the Companies Act, 1956, the
Company’s Annual Accounts 2011-12 were also subjected to supplementary audit by the C & AG and they have
decided not to review the report of the Statutory Auditors on the accounts of the Company for the year ended 31st
March 2012 and as such have no comments to make under Section 619(4) of the Companies Act, 1956.
The Joint Statutory Auditors named above shall retire, and being eligible, offer themselves for re-appointment as
the Joint Statutory Auditors of the Company before the Annual General Meeting. The Company being subject to
17
the provisions of Section 619B of the Companies Act, 1956, wherein more than 51% of the Subscribed and Paid-
up Share Capital is held by Government Companies, the appointment of Auditors and the payment of remuneration
to them is required to be approved by a special resolution, pursuant to Section 224-A of the Companies Act, 1956.
Accordingly, the shareholders are requested to appoint the Auditors and fix their remuneration.
MARKETING OF VARIOUS INSURANCE PRODUCTS BY OUR COMPANY & THROUGH INTERMEDIARIES-
BANKS, BROKERS AND MI AGENTS
Awareness and capacity building is done through various modes of advertisement – Newspaper, Television, Radio,
etc., and also by distributing leaflets, pamphlets, & wall posters among the farmers. Moreover, the Company
conducts District level awareness programmes in selected districts among the farmers, Banking & State Government
Officials for coverage of more and more farmers.
Our Company continues to focus on capacity building and detailed sensitization of all channel partners before
engaging them for marketing activities under WBCIS, MNAIS and our own Products the Company empanels only
IRDA approved intermediaries and provides them the requisite training and product literature. The intermediaries
are trained on the various aspects of the government schemes, in-house products, financial compliances, policy
holder servicing regulations, etc. The grass root level Brokers, Micro-insurance agents have managed to maintain
growth in terms of farmers covered, policies issued and premium collected for the year 2011-12.
Our officers in the Regional Offices, District one man Offices and Krishi Bima Sahayaks are actively involved in the
marketing of various insurance products
The major contribution to the Company’s insurance portfolio continues to come from the rural financial institutions
i.e. Branches of Cooperative Banks, Commercial Banks and Regional Rural Banks
INFORMATION TECHNOLOGY
During this fiscal, the IT System Solution Project of the Company, ANNAPOORNA, has reached a level of maturity.
The core Business Application has gone live for the flagship scheme, NAIS.
The Financial Management System is already in operation.
Other Applications, like Human Resource Management System, Legal Management System, Administration
Application and Knowledge Management System have also been made live during this year.
The users have been given training in the usage of the systems and have thereafter started to work on the new
systems with hand-holding and support from the Annapoorna team.
The farmers and general public have been empowered to lodge their Grievances from the comfort of their homes
through the Online Grievance Registration facility afforded in our Portal.
Total Connectivity has been achieved across our Offices and other support centers like DC/DR.
The state-of-the-art Security Infrastructure & strategy envisioned in ANNAPOORNA has been accorded recognition
by the award of “CISO 2012” (Chief Information Security Officer) conferred on the Company for the second consecutive
year.
PARTICULARS OF EMPLOYEES
None of the employees of the Company was in receipt of remuneration in excess of the limits prescribed
under Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules,
1975, as amended.
PERSONNEL AND INDUSTRIAL RELATIONS
Your Company is an organization with very lean manpower strength. Therefore, conversion of this scarce human
resource strength into a mechanism for meeting Company’s constant growth rate of more than 30% over a period
of nine years always remained a challenge for AIC & its HR Department. This challenge could be tackled by
effective Human Resource Policy incorporating AIC specific Cadre-strength norms, Recruitment Policy, Promotion
Policy, Training Policy etc. In this back-drop, the Company appointed HR consultant & on his submission of the
report, the Company has adopted five of the modules submitted namely Manpower/Cadre Strength, Recruitment
Policy, Promotion Policy, Training Policy & Career Planning/Succession Planning for the next five Financial
Years.
18
A n n u a l R e p o r t 2011 - 12
As per the terms of the Human Resource Report, the Company has initiated the process of recruitment of 46
Officers for the financial year 2011-12 in various specialist disciplines in the entry cadre of Administrative Officers.
On the basis of Human Resources Report, the Company undertook Promotion Exercise 2011-12 by promoting 47
Officers in various cadres of Class I.
Believing in consistent improvement in the skills of the employees, the Company has an effective training programme
in different areas of work. Under which 37 officers were nominated to different technical & professional training
programmes in prestigious institutions like National Insurance Academy at Pune, Administrative Staff College of
India at Hyderabad & other institutes of repute during the financial year 2011-12.
Industrial relations remained cordial throughout the year and the Company continued to receive unstinted cooperation
from its Employees and Officers.
WELFARE OF SC/ST & OBC
The Company ensures that the instructions with regard to the implementation of policies in respect of SC/ST &
OBC employees & Persons with Disabilities received from the Government from time to time are executed without
any lapse. Further the reservation policy with regard to SC, ST & OBC in respect of recruitment is implemented
strictly as per norms and this fact has been corroborated in the in-depth inspection of the Company’ Implementation
of Reservation Policy carried out on 20th May, 2011 by senior officials of Ministry of Finance headed by Chief
Liaison Officer & Director. Chief Liaison Officers have been appointed separately for SC/ ST and OBC employees.
SC/ST cell has been created in the HR department at Head Office, for redressal of the complaints if any from SC/
ST/OBC employees & complaint Registers are maintained for them. Cadre-wise Rosters for recruitment are
maintained and updated strictly as per the terms and conditions prescribed in this regard. Similarly, the interests
of SC/ST employees in cases of promotion are protected by implementation of Protection Clause in case of Class
I Officers & by application of specified percentage of the vacancies available for Class III and Class IV employees.
OFFICIAL LANGUAGE
The Company is committed to implement the provisions of Official Language Act. During 2011-12, the Company
has complied with the targets set by Department of Official Language, Ministry of Home Affairs, Government of
India. The Company submits all the mandatory reports to Ministry of Finance & Hindi Salahkar Samiti well in time.
The Company has been enrolled under Section 10(4) of the Official Language Act of Government of India which
signifies that 80 percent of the work force of the Company has working knowledge of the Official Language.
GRIEVANCES
We have a well-defined Grievance Redressal Policy in place. In the current financial year we have received
390 grievances and all stands redressed to the satisfaction of the complainants. All out efforts are being made to
adhere to the turnaround time prescribed by IRDA while redressing the grievances. Highest standards of
courteousness are being observed while handling grievances. Complainants approaching in person or through
phone are extended sympathetic hearing and their grievances are redressed as swiftly as possible.
RIGHT TO INFORMATION ACT
As per the RTI Act, 2005, the Company appointed Central Public Information Officer, First Appellate Authority and
Transparency Officer at Head Office and Assistant Central Public Information Officers at all the RegionalOffices.
Mandatory information under Sec 4(1) has been uploaded on the website. In the current financial year 2011-12, the
Company received 136 applications and stands disposed off with in the time limits set by the Act against which we
have received only five first appeals. We have received not even a single notice or direction arising out of second
appeal from Central Information commission during the current financial year. We have submitted quarterly returns
for the year 2011-12 on line to Ministry of Finance.
REPORT ON CORPORATE GOVERNANCE
Under Corporate Governance the management of the Company assumes the role of a trustee for all others. The
set of systems, principles and processes by which the Company is governed provides guidelines as to how the
Company can be directed or controlled such that it can fulfill its goals and objectives in a manner that adds to the
value of the Company and is also beneficial for all its stakeholders.
BOARD OF DIRECTORS
The Board of Directors consists of 12 Directors, with one Director nominated by each Promoter Company and one
19
by the Ministry of Finance, two by Ministry of Agriculture and other 3 Director who shall be experts in the relevant
field are nominated by the Government of India including the Chairman-cum-Managing Director (CMD)of the Company.
The Company has only one Executive Director on its’ Board in the form of its CMD.
The Directors appointed by Government of India are considered in the category of ‘independent director’, thereby
contributing 50% of the Board towards independent category of director.
To bring professional expertise in insurance field, the Board is represented by Mr. K. N. Bhandari and for management
expertise the Company has Mr. Gopal Naik on its Board from Indian Institute of Management, Bangalore. The
agriculture competences are represented by the Ministry of Agriculture and finance proficiency are represented by
Ministry of Finance, the Banking savvy is on the Board from NABARD and reinsurance capacity is better understood
by representative from GIC Re.
There are no conflicts of interest between shareholders, policyholders and management. No one is holding two
positions in the Company, may it be Auditors, Appointed Actuary, Directors and Senior Officers.No family member
or a close relative (of any Director) as defined in the Companies Act or their associate (partner, director etc.) is on
the Board of the Company.
The Company is paying sitting fee to its Non-Executive Directors and no other pecuniary relationship or transaction
exists between them and the Company. The CMD is paid a salary as fixed by the Government of India, in addition
to the Performance Linked Incentive (PLI) upon achievement of broad quantitative and qualitative performance
parameters based on the Statement of Intent of Annual Goals fixed by the Ministry of Finance, Govt. of India, with
due approval of the Remuneration Committee of the Board.
The different annual and other policies/programmes of the Company related with various issues of the Company
are reviewed from time to time is assure inclusion of changed economic, legal and other related issues. The
provisions of Companies Act, 1956, Insurance Act, 1938 and IRDA Regulations along with other statutory requirements
applicable to the Company are complied with.
Consequent upon superannuation of Mr. M Parshad, ex-CMD, on 30.11.2011, as per the nomination given by the
Government of India, Mr. A. K. Roy, General Manager, General Insurance Corporation Limited served the Company
as Officiating CMD during December, 2011, thereafter Mr. Milind A Kharat, Director & General Manager, United
India Insurance Company Limited is the Officiating CMD of the Company since 2nd January, 2012.
Mr. Mukesh Khullar, Mr K N Bhandari and Mr S K Chanana, rotational Directors who have held office for the longest
period, will retire by rotation at the ensuing AGM and are eligible to offer themselves for re-appointment.
Mr. Kuldip Singh, Mr. R. K. Deka and Mr. P. K. Bhagat were appointed as Additional Directors on the Board in
place of Mr. Sujit Das, Mr. I. S. Phukela and Ms. BhagyamRamani who have relinquished the office of Director on
their superannuation from their respective organization.
Also, consequent upon transfer of Mr. P. C. James as the Chair Professor, NIA, Pune who have been representing
United India Insurance Company Limited on the Board of the Company, has been substituted with Mr. P. J.
Joseph, General Manager, United India Insurance Company Limited as Additional Director in his place.
Upon change in the nomination from Government of India Mr. Arvind Kumar, Joint Secretary, Department of Financial
Services, Govt. of India, Ministry of Finance has been substituted by Mr. Shashank Saksena, Director (BO II &
PR), Department of Financial Services, Government of India, Ministry of Finance as Additional Director.
The vacancy in the Board followed due to expiry of tenure of Mr. Lalit Kumar was filled up by the nomination made
by Government of India by the introduction of Prof. Gopal Naik from Indian Institute of Management, Bangalore.
The above named Additional Directors will relinquish their office on the date of AGM under the provisions of Section
253 of the Companies Act, 1956 and being willing and eligible, offer themselves for re-appointment. The Company
has received nomination letters from Members for their appointment.
The Board of Directors wishes to place on record its appreciation for the valuable contribution made by the ex-
CMD; Ex-Officiating CMD and the other retired / outgoing Directors.
COMPOSITION OF BOARD
The composition of the Board of Directors and the number of other Directorships and Committee positions held by
20
A n n u a l R e p o r t 2011 - 12
the Directors during the year ended 31st March, 2012 are:
Name (Mr./Ms.) Executive / Non-executive / Other Directorships held
Independent
M. Parshad Executive/ Independent Nil

A. K. Roy Executive/ Independent Anglo French; GIC Housing Finance
Milind A Kharat Executive/ Independent United India Insurance Company Limited
Arvind Kumar Non-executive/Independent United India Insurance Company Limited; ICICI Bank
(from Aug. 2011
to Nov. 2011)
R. K. Tiwari Non-executive/Independent Agriculture Finance Corporation
Mukesh Khullar Non-executive/Independent Food Corporation of India
Shashank Non-executive/Independent Allahabad Bank, Deposit Insurance Credit Guarantee
Saksena Corporation, Industrial Investment Bank of India Limited
(from Dec. 2011)
K. N. Bhandari Non-executive/Independent Andhra Cements Ltd., Secunderabad; Hindalco Industries
Ltd.; Su-Rai Diamonds and Jewellery Ltd.; Saurashtra
Cement Ltd.; Shristi Infrastucture Development Corporation
Ltd.; Magma Fincorp Limited; Magma HDI General Insurance
Co. Ltd.; NRC Ltd., KSL Industries Ltd.; Jay Bharat & Real
Estate Ltd. & Ken bee Consultants Ltd.
Gopal Naik Non-executive/Independent Foretell Business Private Limited;Edubridge Private Limited
(from Dec. 2011)
Bhagyam Ramani Non-executive General Insurance Corporation of India; IDBI Trusteeship
(from April 2011 Services Ltd; National Stock Exchange of India Ltd.;
to Jan 2012) Milestone Capital Advisors (P) Ltd.; L&T Ltd.
S. K. Mitra Non-executive Agri Business Finance (AP) Ltd.; NABCONS Mumbai
I. S. Phukela Non-executive Kesar Enterprises Ltd.; Prestige Assurance Plc., Nigeria;
(from April 2011 The New India Assurance (Sierra Leone) Ltd.; The New
to Feb 2012) India International (UK) Limited; The New India Assurance
Co. Ltd., Mumbai
S. K. Chanana Non-executive The Oriental Insurance Co. Ltd., The Industrial Credit Co.
Ltd.
P. C. James Non-executive Nil
(from April 2011
to Jan 2012)
Kuldip Singh Non-executive United India Insurance Co. Ltd.
(from Nov. 2011)
P. J. Joseph Non-executive Nil
(from Feb. 2011)
R. K. Deka Non-executive Nil
(from Apr. 2012)
P. K. Bhagat Non-executive Nil
(from May 2012)
The detail of the attendance of the Board Members in the Board Meetings held during the financial year 2011-12 is
21
given here in below:-

Name of Date of Meetings
Directors
(Mr./Ms.) 11.04.2011 21.06.2011 11.08.2011 26.11.2011 20.01.2012 14.02.2012
M. Parshad Yes Yes Yes Yes - -
(from April 2011
to Nov.2011)
Milind A. Kharat - - - - Yes Yes
(from Jan. 2012
to March 2012)
Tarun Bajaj LOA Yes - - - -
(from April 2011
to August 2011)
Arvind Kumar - - Yes Yes - -
(from August 2011
to Nov. 2011)
Shashank Saksena - - - - Yes Yes
(from Dec. 2011)
R. K. Tiwari LOA LOA Yes Yes Yes LOA
Mukesh Khullar LOA LOA LOA LOA LOA Yes
K. N. Bhandari Yes Yes Yes Yes Yes Yes
Gopal Naik - - - - Yes LOA
Bhagyam Ramani Yes Yes Yes Yes Yes -
S. K. Mitra Yes Yes LOA Yes LOA Yes
I. S. Phukela Yes Yes LOA LOA LOA Yes
S. K. Chanana LOA LOA Yes Yes LOA LOA
P.C. James Yes LOA Yes LOA Yes -
(from April 2011
to Jan 2012)
Kuldip Singh - - - - Yes Yes
(from Nov. 2011)
P. J. Joseph - - - - - Yes
(from Feb. 2012)
INFORMATION PLACED BEFORE THE BOARD OF DIRECTORS

As per covenants contained in the Corporate Governance Guidelines of IRDA, all the relevant and necessary
information is presented before the Board of the Company at their meetings and as stipulated under the Companies
Act, 1956 and other enactments as applicable. No penalty was imposed on it by any Statutory Authority during
2011-12. Your Company has complied with all the requirements of Regulatory Authority.
In accordance with the IRDA (Preparations of Financial Statements) Regulations, 2002, the Company had disclosed
in its financial statements the information on the following, including the basis, methods and assumptions on
which the information is prepared and the impact of any changes therein are also disclosed in the annual accounts:
Quantitative and qualitative information on the Company’s financial and operating ratios, namely, incurred
claim, commission and expenses ratios;
Actual solvency margin details vis-à-vis the required margin;
Financial performance including growth rate and current financial position of the Company
Any other matter, which has material impact on the insurer’s financial position.
AUDIT COMMITTEE
22
A n n u a l R e p o r t 2011 - 12
In compliance with Section 292(A) of the Companies Act, 1956, the Company has an Audit Committee which is headed
by an independent director who is also an expert of the insurance industry. Audit Committee is an important component
of effective accountability and governance of the Company. The Audit Committee is overseeing the financial reporting,
and related processes on an annual, half-yearly and quarterly basis. The Committee also oversees the functioning of
the internal controls and whether the control environment and procedures are accomplishing its objectives. The Committee
reviews Auditor’s reports on internal controls and compliance with laws and regulation. It reviews and suggests
improvements to internal controls and following up to correct the weaknesses in internal controls.
The Committee is responsible for the recommendation of the appointment, remuneration, performance and oversight
of the work of the auditors (internal/statutory/concurrent).The detail of members of the Committee and their attendance
in the meetings held during the financial year 2011-12 are given here in below:-
Name of Date of Committee Meetings
Members
(Mr./Ms.) 11.04.2011 21.06.2011 11.08.2011 26.11.2011 20.01.2012 13.02.2012
R. K. Tiwari LOA LOA LOA - - -
(was member from
April 2011 to
August 2011)
Bhagyam Ramani Yes Yes Yes Yes Yes -
S. K. Mitra Yes Yes LOA Yes LOA Yes
S. K. Chanana LOA LOA Yes Yes LOA LOA
P.C. James Yes LOA Yes LOA Yes -
I.S. Phukela - - - LOA LOA LOA
(was member from
Nov. 2011 to
Feb. 2012)
The meetings of the audit committee are attended by the members and the invitees viz., Chief Executive Officer of
the Company i.e. CMD, Deputy General Manager (Finance), Appointed Actuary, Internal & Statutory Auditors.
Company Secretary acts as the Secretary to the Committee. Members of the audit committee have accounting /
related financial management / insurance expertise.
The Statutory Auditors have access to the Board of Directors through the Audit Committee.
INVESTMENT COMMITTEE
The Investment Committee of the Company consists of the CMD, 3 non-executive directors.
The Committee oversees the investment policies and strategies; reviewing performance of investment transactions;
reviewing the Company’s strategy, market scenario, risk mitigating tools and providing guidance to the Board on
significant investment policies and matters, and overseeing the treasury management.
The detail of members of the Committee and their attendance in the meetings held during the financial year 2011-
12 are given here in below:-
Name of Members Date of Committee Meetings
(Mr./Ms.) 11.04.2011 11.08.2011 26.11.2011 20.01.2012
M. Parshad Yes Yes Yes -
(from April 2011 to Nov.2011)
Milind A. Kharat - - - Yes
(from Jan. 2012 to March 2012)
Bhagyam Ramani Yes Yes Yes Yes
S. K. Mitra Yes LOA Yes LOA
23
S. K. Chanana LOA Yes LOA LOA

RISK MANAGEMENT COMMITTEE
As per Corporate Governance Regulation of IRDA, the Company has a Risk Management Committee which is
headed by an independent director who is an expert of the insurance industry along with CMD and other non-
executive directors as detailed below assisted by the Chief Risk Officer (CRO) of the Company. The Committee
assists the Board in effective operation of the risk management system and follow-up on management action
plans, identify and evaluate new strategic risks; review the risk score card and determine the risks to be escalated
to the Board on regular basis.
(Mr.)
21.06.2011 11.08.2011 22.09.2011 26.011.2011 20.01.2012 14.02.2012
(from April 2011
to Nov.2011)
(from Jan. 2012
to March 2012)
R. K. Tiwari LOA LOA - - - LOA
(was member Apr-
Aug 2011 & again
w.e.f. Feb 2012)
I. S. Phukela LOA LOA LOA LOA LOA Yes
P C James - - Yes LOA Yes -
(was member from
April 2011 to
Jan 2012)
POLICYHOLDERS’ PROTECTION COMMITTEE
As per Corporate Governance Regulation of IRDA, the Company has a Policyholders’ Protection Committee which
is headed by an independent director who is an expert of the insurance industry along with CMD and other non-
executive directors as detailed below. The Policyholders’ Protection Committee ensures that policyholder’s
complaints and grievances are addressed through proper procedures and an effective mechanism. The Committee
oversees compliance with the statutory requirements as laid down in the regulatory framework along with the
review of the mechanism at periodic intervals.
(Mr.) 21.06.2011 11.08.2011 26.11.2011 20.01.2012
M. Parshad Yes Yes Yes -
(from April 2011
to Nov.2011)
Milind A. Kharat - - - Yes
(from Jan. 2012 to
March 2012)
Mukesh Khullar LOA LOA LOA LOA
K. N. Bhandari Yes Yes Yes Yes
24
A n n u a l R e p o r t 2011 - 12
S. K. Mitra LOA LOA Yes LOA

REMUNERATION COMMITTEE
The Remuneration Committee is formed as in accordance with the guidelines issued by Department of Financial
Services, Ministry of Finance, Government of India in this regard.
The detail of members of the Remuneration Committee and their attendance in the meeting held during the
financial year 2011-12 is given here in below:-
Name of Members Date of Committee Meeting
(Mr.) 11.08.2011
Arvind Kumar Yes
K. N. Bhandari Yes
S. K. Mitra
INFORMATION TECHNOLOGY COMMITTEE

(Mr./Ms.) 19.09.2011 10.02.2012
M. Parshad Yes -
(from April 2011 to Nov.2011)
Milind A. Kharat - Yes
(from Jan. 2012 to March 2012)
Mukesh Khullar Yes Yes
S. K. Chanana Yes Yes
PERSONNEL COMMITTEE
(Mr./Ms.) 11.04.2011 21.06.2011 11.08.2011 22.09.2011 20.01.2012 13.02.2012
(from April 2011
to Nov.2011)
(from Jan.2012
to March 2012)
Bhagyam Ramani Yes Yes Yes LOA Yes -
(from April 2011
to Jan.2012)
S. K. Chanana LOA LOA Yes LOA LOA LOA
ETHICS COMMITTEE
Besides the above Committees, an Ethics Committee has been constituted comprising of an independent Director
(Chairperson); Director (BO II & PR), Ministry of Finance, Govt. of India; Director & GM, National Insurance & GM,
United India Insurance. Meeting(s) of the Committee is held if so required. No meeting was required to be held
during financial year 2011-12.
25
GENERAL MEETINGS
Annual General Meetings
Mr.Mukesh Khullar, Mr. K N Bhandari and Mr. S K Chanana who are rotational Directors and have held office for the
longest period, will retire by rotation at the ensuing 9thAnnual General Meeting, and being eligible for re-appointment
have offered themselves for re-appointment.
The dates and venues of the last three Annual General Meetings of the Companyare:
Date of AGM Venue of AGM
th th
25 September, 2009 ‘Amba Deep’ (13 Floor), 14, Kasturba Gandhi Marg, New Delhi
th
28 December 2010 ‘Amba Deep’ (13th Floor), 14, Kasturba Gandhi Marg, New Delhi
11thAugust, 2011 ‘Amba Deep’ (13th Floor), 14, Kasturba Gandhi Marg, New Delhi
CAPITAL STRUCTURE
The Authorized Share Capital of the Company is 1500 crore, with the Paid-up Equity Share Capital of 200
crore being held as under:-
S. No. Shareholders of the Company Holding Percentage
( ) Holding
1. General Insurance Corporation of India 700000000 35.00
2. National Bank for Agriculture and Rural Development 600000000 30.00
3. National Insurance Company Limited & its nominee 175000000 8.75
4. The New India Assurance Company Limited & its nominee 175000000 8.75
5. The Oriental Insurance Company Limited 175000000 8.75
6. United India Insurance Company Limited 175000000 8.75
TOTAL 2000000000 100.00
The Issued, Subscribed and Paid-up Share Capital of the Company is 200 crore as there was no further issue of
shares during 2011-12.
SUBSIDIARY COMPANIES
The Company does not have any subsidiary.
RENEWAL OF CERTIFICATE OF REGISTRATION ISSUED BY INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY OF INDIA (IRDA)
The Company has obtained the Certificate of Renewal of Registration for the year 2012-13 from IRDA on 20th
March, 2012.The Annual Accounts of the Company are drawn-up as per the IRDA (Preparation of Financial Statements
and Auditor’s Report) Regulations, 2002. The Company’s existing Paid-up EquityShareCapital of 200 crore
conforms to the minimum capital requirement prescribed by IRDA.
PUBLIC DISCLOSURE OF ACCOUNTS OF THE COMPANY
The quarterly/ half yearly and annual results are displayed on the website of the Company viz., www.aicofindia.com,
though the limited reviewed half yearly and audited annual results were published in the newspapers well within the
time-limit stipulated under IRDA Regulation.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to section 217(2AA) of the Companies Act, 1956, the Directors hereby confirm that:
i in preparation of Annual Accounts for the year ended on 31st March 2012, the applicable Accounting
Standards have been followed along with proper explanations relating to material departures, if
any;
ii appropriate Accounting Policies have been selected and have been applied consistently, and that
26
A n n u a l R e p o r t 2011 - 12
the judgments and estimates made are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company as at the end of the financial year, and the Profit of the
Company for the year ended on 31st March, 2012;
iii proper and sufficient care has been taken for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the
Company, and for prevention and detection of fraud and other irregularities;
iv Annual Accounts have been prepared on a “going concern” basis.
ACKNOWLEDGEMENTS
In conclusion, the Board wishes to thank the Central and the State Governments, financial institutions, public and
private sector banks, government agencies and non-government institutions who have extended their support in
the development and growth of your Company. We acknowledge the significant role played by the employees of
the Company in contributing to the growth of the Company’s business. The Board would also like to thank all the
shareholders for their support, faith and confidence reposed by them in the Company.
For & on behalf of the Board
Sd/-
(Milind A. Kharat)
Chairman-cum-Managing Director
“Certification for Compliance of the Corporate Governance Guidelines”

I Kanika Sharma Shandil, Company Secretary, AIC of India Limited 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.
Sd/-
KANIKA SHARMA SHANDIL
Company Secretary
AIC of India Limited
27
Annexure 3
MANAGEMENT REPORT
In accordance with Part IV of Schedule B of the Insurance Regulatory and Development Authority (Preparation of
Financial Statements and Auditor’s Report of Insurance Companies) Regulations 2002, the management of the
Company hereby:
1. Confirms that the registration number 126 granted by the IRDA continues to be valid.
2. Certifies that all dues payable to the statutory authorities have been duly paid.
3. Confirms that the shareholding pattern and any transfer of shares during the year are in accordance with
the statutory or regulatory requirements.
4. Declares that the management has not directly or indirectly invested outside India the funds of the holders
of policies issued in India.
5. Confirms that the company has maintained the required solvency margin.
6 Certifies that the value of all the assets have been reviewed on the date of the Balance Sheet and that, in
our belief, the assets set forth in the Balance Sheet are shown in the aggregate at amounts not exceeding
their realizable or market value under the several headings – “Loans”, “Investments”, “Agents balances”,
“Outstanding Premium”, “Interest, Dividends and Rent outstanding”, “Interest, Dividends and Rent accruing
but not due”, “Amounts due from other persons or Bodies carrying on insurance business”, “Sundry
Debtors”, “Bills Receivable”, “Cash”, and the several items specified under “Other Accounts”.
7. Confirms that the company’s risk exposure under “National Agricultural Insurance Scheme (NAIS)” is
adequately limited by the provisions of the scheme which restricts the company’s liability to 100% of the
premium for food crops & oilseeds, for all normal coverage as per the provision of the Scheme. Adequate
provision in respect of the company’s share of claims has been made in the accounts as per the actuarial
certificate. Appropriate reinsurance has been arranged in respect of Weather Based Crop Insurance Scheme
(WBCIS), Modified National Agricultural Insurance Scheme (MNAIS), Company’s own products and Annual
Commercial & Horticulture crops & additional coverage of Food Crops and Oilseeds under NAIS.
8. Certifies that the company does not operate outside India.
9. Ageing of claims indicating the trends in average claim settlement (in respect of total liability as per the
provision of the Scheme including Company’s and Central & State/UTs Government’s liability) time during
the preceding five years is presented below:-
Particulars No. of Claims Amount Involved
(No. of farmers) ( in lakh)
30 days 6619202 247995.74
30 days to 6 months 1069327 43822.52
6 months to 1 year 127933 23047.11
1 year to 5 years 1303 184.15
5 years and above 0 0.00
Total 7817765 315049.53
10. Certifies that the value of investments, stocks and shares, as shown in the Balance Sheet, have been
arrived at as stated in the “Significant Accounting Policies” (No. 5).
11. Certifies that the review of quality and performance of investments is as mentioned in the “Notes forming
part of Accounts” (No. 8). No loans, except loans to staff members, have been granted by the company
12. Confirms that:-
(i) In the preparation of financial statements, the applicable accounting standards, principles and
policies have been followed along with proper explanations for material departures, if any;
(ii) The management has adopted accounting policies and applied them consistently (including those
28
A n n u a l R e p o r t 2011 - 12
specifically required by various IRDA Regulations) and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the company at
the end of the financial year and of the profit of the company for the year;
(iii) 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;
(iv) The management has prepared the financial statements on a “going concern” basis;
(v) The management has ensured that an internal audit system commensurate with the size and
nature of the business exists and is operating effectively;
(vi) Certifies that no payment has been made to individuals, firms, companies and organizations in
which the Directors of the company are interested.
(Kanika Sharma Shandil) (K. K. Gupta) (M. K. Poddar)

Company Secretary Manager Dy. Gen. Manager
(K.N. Bhandari) (S. K. Mitra) (Milind A. Kharat)

Director Director Chairman-cum-Managing Director
DIN 00191219 DIN 00760048 DIN 02502200
Date: 14.05.2012
Place: New Delhi
29
REGISTRATION NO. 126

DATE OF REGISTRATION WITH IRDA: OCTOBER 30, 2003
REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2012

CROP INSURANCE BUSINESS
SN PARTICULARS Schedule Current Year Previous year
31.03.12 31.03.11
( ‘000) ( ‘000)
1 Premium Earned (Net) 1 13202136 12759164
2 Profit/Loss on Sale/Redemption of Investments 36 15186
3 Others 0 0
4 Interest, Dividend & Rent -Gross 1501627 1284843
TOTAL (A) 14703799 14059193
1 Claims Incurred (Net) 2 10257502 9501464

2 Commission 3 (2461462) (1310760)
3 Operating Expenses related to Insurance Business 4 411821 448041
4 Expenses related to Investments :
a) Amortization of Premium on Investments 10406 16662
b) Stock Holding Charges 854 866
c) Bank Interest & Charges 1680 113
d) Cenvat Credit Input Claimed 0 200000
TOTAL (B) 8220801 8856386
Operating Profit from Crop Insurance Business C=(A-B) 6482998 5202806

APPROPRIATIONS
Transfer to Shareholders’ Account 6482998 5202807
Transfer to Catastrophe Reserve 0 0
Transfer to Other Reserves 0 0
TOTAL 6482998 5202807
As required by Section 40 C (2) of the Insurance Act, 1938, we certify that to the best of our knowledge and according to
the information and explanations given to us and so far as it appears from our examination of the books of accounts of
the Company, all expenses of management, wherever incurred, whether directly or indirectly in respect of Crop Insurance
Business have been fully debited in the Revenue Account as expenses in accordance with Accounting Policy as per
Annexure 1.
(Kanika Sharma Shandil) (K.K. Gupta) (M.K.Poddar)

(K.N. Bhandari) (S.K. Mitra) (Milind A.Kharat)

DIN 00191219 DIN 00760048 DIN 02502200
for M/s S.C.VASUDEVA & CO. for M/s K.K.GHEI & CO.
(Abhinav Khosla) (D.S.Sobti)

Partner Partner
M.No. 087010 M.No.016416
Place: New Delhi

Date: 14.05.2012
30
A n n u a l R e p o r t 2011 - 12

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2012
SN PARTICULARS Schedule Current Year Previous year
31.03.12 31.03.11
( ‘000) ( ‘000)
1. OPERATING PROFIT/(LOSS)
Crop Insurance Business 6482998 5202807
2. INCOME FROM INVESTMENTS

a) Interest,Dividend & Rent-Gross 937701 519907
b) Profit on Sale of Investments 22 6145
3. OTHER INCOME
a) Miscellaneous Receipts 45964 6288
b) Profit on Sale of Assets 0 163
c) Prior Period Income 0 0
TOTAL (A) 7466685 5735310
4. PROVISIONS (other than Taxation)

a) Dimunition in the value of Investments 0 0
b) Provision for Doubtful Debts 0 (13550)
c) Provision on Standard Assets 12430 8391
5. OTHER EXPENSES
a) Expenses other than those related to insurance business 0 0
b) Amortisation of Premium on Investments 6498 10649
c) Stock Holding Charges 534 350
d) Bank Interest & Charges 1049 46
e) Loss on Sale of Assets 728 0
f) Preliminary Expenses Written off 0 0
g) Prior Period Expenses 0 0
TOTAL (B) 21239 5886
PROFIT BEFORE TAX (C=A-B) 7445446 5729424
31
PROVISION FOR TAXATION

a) Income Tax (Current Year) 2430000 1914949
b) Income Tax (pertaining to earlier years) 5450 2836
c) Wealth Tax 386 358
d) Fringe Benefit Tax 0 0
e) Deferred Tax (11677) 8322
TOTAL (D) 2424159 1926465
PROFIT AFTER TAX AVAILABLE FOR 5021287 3802959
APPROPRIATION (E=C-D)
APPROPRIATIONS
a) Interim Dividend paid during the year 0 0
b) Proposed Final Dividend 250000 200000
c) Dividend Distribution Tax 40556 32446
d) Transfer to General Reserve 4730731 3570513
TOTAL 5021287 3802959
PROFIT AFTER TAX & APPROPRIATIONS 0 0
Add: Balance of Profit/(Loss) b/f from last year 0 0

BALANCE C/F TO BALANCE SHEET 0 0
Basic Earning per Share 25.11 19.01

Diluted Earning per Share - -
Number of Equity Shares 20,00,00,000 20,00,00,000
Nominal Value per Share 10/- 10/-
Accounting Policies and Notes on Accounts are as per Annexure-1 & 2 respectively


DIN 00191219 DIN 00760048 DIN 02502200

Partner Partner
M.No. 087010 M.No.016416
Place: New Delhi

Date: 14.05.2012
32
A n n u a l R e p o r t 2011 - 12

BALANCE SHEET AS AT 31ST MARCH, 2012
PARTICULARS Schedule Current Year Previous year
31.03.12 31.03.11
( ‘000) ( ‘000)
SOURCES OF FUNDS
Share Capital 5 2000000 2000000
Reserves & Surplus 6 13959014 9228283
Fair Value Change Account (37935) 38217
Borrowings 7 0 0
TOTAL 15921079 11266500
APPLICATION OF FUNDS
Investments 8 20035484 15648366
Loans 9 11919 12469
Fixed Assets 10 197678 234924
Deferred Tax Asset (Net) 31029 19352
Current Assets:
Cash & Bank Balances 11 12265140 16294625
Advances & Other Assets 12 5444394 4953470
Sub - Total (A) 17709534 21248095
Current Liabilities 13 14372045 19074289
Provisions 14 7692520 6822417
Sub - Total (B) 22064565 25896706
Net Current Assets (C) = (A) - (B) (4355031) (4648611)
Miscellaneous Expenditure
(to the extent not written off or adjusted) 0 0
Debit Balance in Profit and Loss Account 0 0
TOTAL 15921079 11266500
Contingent Liabilities
Claims, other than against Policies, not
acknowledged as debts by the Company 0 0
Accounting Policies and Notes on Accounts are as per Annexure-1 & 2 respectively


DIN 00191219 DIN 00760048 DIN 02502200

Partner Partner
M.No. 087010 M.No.016416
Place: New Delhi

Date: 14.05.2012
33
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH, 2012
SCHEDULE 1 : PREMIUM EARNED (NET)
PARTICULARS Schedule Current Year Previous year
31.03.12 31.03.11
( ‘000) ( ‘000)
Premium from Direct Business written 25768510 19500541
Add: Premium on Reinsurance Accepted 0 212
Less: Premium on Reinsurance Ceded 12197489 6667502
Net Premium 13571021 12833251
Adjustment for change in Reserve for Unexpired Risks (368885) (74087)
TOTAL PREMIUM EARNED (NET) 13202136 12759164
SCHEDULE 2 : CLAIMS INCURRED (NET)
PARTICULARS Current Year Previous year
31.03.12 31.03.11
( ‘000) ( ‘000)
Claims Paid - Direct 14355904 12487672
Add: Reinsurance Accepted 0 280
Less: Reinsurance Ceded 4034519 1968684
Net Claims paid 10321385 10519268
Add: Claims Outstanding at the end of the Current period 21856196 15605975
Net Claims Outstanding at the end of Current period 11500366 11564249
Less: Claims Outstanding at the end of the Previous Year 15605975 13836948
Net Claims Outstanding at the end of the Previous Year 11564249 12582053
Gross Incurred Claims 20606125 14256699
NET CLAIMS INCURRED 10257502 9501464
SCHEDULE 3 : COMMISSION
PARTICULARS Current Year Previous year
31.03.12 31.03.11
( ‘000) ( ‘000)
Commission Paid - Direct 243890 137006
Less: Commission on Reinsurance Ceded* 2705352 1447808
NET COMMISSION (2461462) (1310760)
Break- up of the expenses (gross) incurred to procure business to be furnished as per details indicated below:
Agents 0 0
Brokers 7786 7372
Corporate Agency 0 0
Referral 0 0
Micro Insurance Agents/NGO's etc. 6222 2797
Others (Bank Service Charges to Banks, as per scheme) 229882 126837
TOTAL (B) 243890 137006
*includes Loss Assessment Expenses recovered from re-insurers as part of commission amounting 95429 thousand (previous year
42082 thousand, netted from Research & Development expenses under S.No. 11 of Schedule 4 amounting 36178 thousands)
34
A n n u a l R e p o r t 2011 - 12
SCHEDULE 4 : OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
SN PARTICULARS Current Year Previous year

31.03.12 31.03.11
( ‘000) ( ‘000)
1 Employees’ Remuneration & Welfare benefits 132531 151412
2 Travel, Conveyance and Vehicle running expenses 15873 12923
3 Training Expenses 947 662
4 Rent, Rates & Taxes 32743 27661
5 Repairs 4204 5757
6 Printing & Stationery 3166 3546
7 Communication 4289 4332
8 Legal & Professional charges 14120 25233
9 Auditor’s fees, expenses etc.
a) as Auditor 885 746
b) as Advisor or in any other capacity, in respect of
(i) Taxation matters 194 142
(ii) Insurance matters 0 0
(iii) Management Services 0 0
c) in any other capacity 0 0
10 Advertisement & Publicity 4375 2804
11 Research & Development Expenses 48094 36178
12 Fees & Subscription to Statutory Authorities 14904 30393
13 Interest & Bank Charges 135 82
14 Depreciation 47969 31085
15 Information Technology 74410 104123
16 Others 12982 10962
TOTAL 411821 448041
1) S.No. 11 includes expenses incurred on procurement of weather data (Previous year figure of (5904)thousand)
arrived at after expenses of 36178 thousands netted against Loss Assessment expenses recovered 42082
thousand).
2) S.No. 14: Total depreciation for the year is 51786 thousands (previous year 34686 thousands), including
amortisation of intangible assets 17917 thousand (previous year 6085 thousand), however shown here 47969
thousands ( previous year 31085 thousands), net of Government share in terms of NAI Scheme of reimbursement
of 3817 thousands (previous year 3601 thousands)
SCHEDULE 5 : SHARE CAPITAL
SN PARTICULARS Current Year Previous year

31.03.12 31.03.11
( ‘000) ( ‘000)
1 Authorised Capital
150 crore Equity Shares of 10/- each 15000000 15000000
2 Issued Capital
3 Subscribed Capital
4 Called-up & Paid-up Capital
Less: Preliminary Expenses 0 0
TOTAL 2000000 2000000
35
SCHEDULE 5A : PATTERN OF SHAREHOLDING

(AS CERTIFIED BY THE MANAGEMENT)
SN Shareholders Current Year Previous Year

31.03.12 31.03.11
Number of % of Number of % of
Shares (‘000) Holding Shares (‘000) Holding
A. PROMOTERS - INDIAN
1 General Insurance Corporation of India 70000 35% 70000 35%
2 National Agriculture Bank for Rural
Development 60000 30% 60000 30%
3 National Insurance Company Ltd.
& its nominee 17500 8.75% 17500 8.75%
4 The New India Assurance Company Ltd.
& its nominee 17500 8.75% 17500 8.75%
5 The Oriental Insurance Company Ltd. 17500 8.75% 17500 8.75%
6 United India Insurance Company Ltd. 17500 8.75% 17500 8.75%
TOTAL: 200000 100% 200000 100%

B. PROMOTERS - FOREIGN NIL NIL NIL NIL
TOTAL 200000 100% 200000 100%
SCHEDULE 6 : RESERVES & SURPLUS
S N PARTICULARS Current Year Previous Year

31.03.12 31.03.11
( ‘000) ( ‘000)
1 Capital Reserve 0 0
2 Capital Redemption Reserve 0 0
3 Share Premium 0 0
4 General Reserve
Opening Balance 9228283 5657770
Less:Charge on account of transitional
provisions under Accounting Standard 15 0 0
Add: Profit transferred during the year 4730731 13959014 3570513 9228283
5 Catastrophe Reserve 0 0
6 Other Reserves 0 0
Balance of Profit in Profit & Loss Account 0 0
TOTAL 13959014 9228283
SCHEDULE 7 : BORROWINGS

31.03.12 31.03.11
( ‘000) ( ‘000)
1 Debentures & Bonds 0 0
2 Banks (Secured against Deposits) 0 0
3 Financial Institutions 0 0
4 Others 0 0
TOTAL 0 0
36
A n n u a l R e p o r t 2011 - 12
SCHEDULE 8 : INVESTMENTS

31.03.12 31.03.11
( ‘000) ( ‘000)
A. LONG TERM INVESTMENTS
1 Government Securities and
Govt. Guaranteed Bonds including Treasury Bills 9657476 8079694
2 Other Approved Securities - Housing Sector Bonds 2496753 2378970
3 Other Investments:
a) Shares
(i) Equity 326417 398063
(ii) Preference 0 0
b) Mutual Funds 0 0
c) Derivative Instruments 0 0
d) Debentures/Bonds 650000 400000
e) Other Securities-Tier II Bonds 120000 120000
f) Subsidiaries 0 0
Investment in Properties - Real Estate 0 0
4 Investments in Infrastructure & Social Sector 4421223 3339822
5 Other than Approved Securities 0 0
Sub - Total (A) 17671869 14716549
B. SHORT TERM INVESTMENTS

1 Government Securities and
Govt. Guaranteed Bonds including Treasury Bills 59946 251781
2 Other Approved Securities - Housing Sector Bonds 506893 100000
3 Other Investments:
a) Shares:
(i) Equity 0 0
(ii) Preference 0 0
b) Mutual Funds 1107276 0
c) Derivative Instruments 0 0
d) Debentures/Bonds 0 0
e) Other Securities (Commercial Papers) 292025 48636
f) Subsidiaries 0 0
g) Investment in Properties - Real Estate 0 0
4 Investments in Infrastructure & Social Sector 397475 531400
5 Other than Approved Securities 0 0
Sub - Total (B) 2363615 931817
GRAND TOTAL (A+B) 20035484 15648366
Note: A provision of 73640 thousand (Previous Year 61210 thousand) on Standard Assets in respect of
investment in Debentures/Bonds appears under item 5 (iv) in Schdule 14.
Market Value of Investments on 31.03.2012 32199556 26568768
Less: Fair Value Change Account (37935) 38217
Book Value of Investments as on 31.03.2012 32237491 26530551
37
SCHEDULE 9 : LOANS

31.03.12 31.03.11
( ‘000) ( ‘000)
1 SECURITY-WISE CLASSIFICATION
A. Secured:
a) On mortgage of Property:
(i) In India 0 0
(ii) Outside India 0 0
b) On Shares, Bonds, Government Securities 0 0
c) Others
(i) Loans to Staff 11919 12469
B. Unsecured 0 0
TOTAL 11919 12469
2 BORROWER-WISE CLASSIFICATION
a) Central & State Governments 0 0
b) Banks & Financial Institutions 0 0
Subsidiaries 0 0
d) Industrial Undertakings 0 0
e) Others (Loans to Staff) 11919 12469
TOTAL 11919 12469
3 PERFORMANCE-WISE CLASSIFICATION
a) Loans classified as Standard:
(i) In India 11919 12469
b) Non-Performing Loans, less provisions:
(i) In India 0 0
TOTAL 11919 12469
4 MATURITY-WISE CLASSIFICATION
a) Short Term 0 0
b) Long Term 11919 12469
TOTAL 11919 12469
38
SCHEDULE 10 : FIXED ASSETS
( ‘000)
Particulars Cost/Gross Block Depreciation Net Block
Add: Less:
As at Additions Sale/ As at As at For On sale/ Up to As at As at
01.04.2011 during Deduction / 31.03.12 01.04.2011 the adjustment 31.03.12 31.03.12 31.03.2011
the year Discarded current
during Year
A n n u a l
the year
(A) Tangible Assets
Buildings 36614 0 0 36614 10832 1289 0 12121 24493 25782
Furniture & Fixtures 9289 145 53 9381 5587 691 22 6256 3125 3702
I.T. Equipments 96567 14907 64 111410 33137 29307 41 62403 49007 63430
Vehicles 9552 7942 2661 14833 5167 1744 1857 5054 9779 4385
Office Equipments 5028 948 17 5959 2637 512 3 3146 2813 2391
Elec.Equip.& Fittings 4884 285 58 5111 2189 326 2515 2596 2695
Leasehold Improvement 7162 0 0 7162 7162 0 7162 0 0
39
R e p o r t
(B) Intangible Assets

Computer Software 32356 44234 0 76590 6594 17917 24511 52079 25762
TOTAL (A) 201452 68461 2853 267060 73305 51786 1923 123168 143892 128147
Capital Work In Progress 0 0 0 0 0 0 0 0 0 0
Capital Work in Progress- 16156 0 11703 4453 0 0 0 0 4453 16156
Hardware
2011 -
Capital Work in Progress- 90621 875 42163 49333 0 0 0 0 49333 90621

Software
TOTAL (B) 106777 875 53866 53786 0 0 0 0 53786 106777
12
GRAND TOTAL (A)+(B) 308229 69336 56719 320846 73305 51786 1923 123168 197678 234924
PREVIOUS YEAR 334298 226397 252466 308229 39912 34686 1293 73305 234924 294387
Total depreciation for the year is 51786 thousands (previous year 34686 thousands), including amortisation of intangible assets 17917 thousand
(previous year is 6085 thousand), however shown under schedule 4 as 47969 thousands (previous year 31085 thousands), net of Government
share in terms of NAI Scheme of reimbursement of 3817 thousands (previous year 3601 thousands)
SCHEDULE 11 : CASH AND BANK BALANCES

31.03.12 31.03.11
( ‘000) ( ‘000)
1 Cash (including Cheques, Drafts & Stamps) 94 149399
2 Bank Balances
a) Deposit Account
(i) Short term (due within 12 months) 12063890 10819610
(ii) Others 35 4801642
b) (i) Current Accounts 201016 466167
ii) Others 105 385
c) Others (Remittances in Transit) 0 57422
3 Money at Call and Short Notice
a) With Banks 0 0
b) With Other Institutions 0 0
4 Others 0 0
TOTAL 12265140 16294625
SCHEDULE 12 : ADVANCES AND OTHER ASSETS

31.03.12 31.03.11
( ‘000) ( ‘000)
A. ADVANCES
1 Reserve Deposits with Ceding Companies 0 0
2 Application Money for Investments 0 0
3 Pre-payments 23406 19195
4 Advances to Officers & Staff 3859 2752
5 Advance Tax Paid & Taxes Deducted at Source
(Net of Provision for Taxation) 0 433148
6 Others:
a) Advance Rent paid 0 8
b) Sundry Advances 251 63
Sub - Total (A) 27516 455166
B. OTHER ASSETS
1 (a) Income accrued on investments 1155860 881816
1 (b) Income accrued on flexi deposit 0 122164
2 Outstanding Premium 0 0
3 Agents’ Balances 0 0
4 Due from other entities carrying on Insurance
Business (including reinsurers) 234660 49995
5 Due from subsidiaries/holding company 0 0
6 Deposit with Reserve Bank of India
(Pursuant to Section 7 of Insurance Act, 1938) 100182 100793
40
A n n u a l R e p o r t 2011 - 12
7 Others:
a) Sundry Deposits 33110 32126
b) Advance against Capital Assets 15943 6328
c) Short Collection of Premium 14551 17798
d) Premium Receivable 0 0
e) Others (Adhoc payment to Govt. of India) 2000000 2000000
f) Government (Centre/States/UTs/Coffee Board) 1812246 1235063
g) Sundry Debtors 25189 27983
h) Cenvat Credit Receivable 25137 24238
Sub - Total (B) 5416878 4498304
GRAND TOTAL (A+B) 5444394 4953470
SCHEDULE 13 : CURRENT LIABILITIES

31.03.12 031.03.11
( ‘000) ( ‘000)
1 Agents Balances 0 0
2 Balance Due to other Insurance Companies 344549 10232
3 Deposits held on Reinsurance Ceded 0 0
4 Premium received in advance 0 0
5 Unallocated Premium 0 0
6 Sundry Creditors
a) Cheques issued to insureds, but not encashed 60493 40982
b) Sundry Creditors, other than 6(a) 208743 214360
7 Due to Subsidiary/Holding Company 0 0
8 Claims Outstanding
a) Claims settled but not paid 503964 371860
b) Claims outstanding, other than 8(a) 10996402 11192389
9 Due to Officers/Directors 0 0
10 OTHERS:
a) Excess Collection of Premium 98704 119411
b) Expenses Payable 236132 150474
c) Earnest Money Deposit 2445 2640
d) Government (Centre/States/UTs/Coffee Board) 1920613 6971941
TOTAL 14372045 19074289
Note: Unclaimed amount of Policyholders/Insureds comprises:
(1) Sum due to insured/policyholders on maturity or other wise NIL (previous year NIL)
(2) The amount 6,04,93 thousand (previous year 4,09,82 thousand) mentioned against line item 6(a)pertains to
cheques rendered stale. In addition, valid cheques amounting to 11,64,78 thousand (previous year 73,19,35)
issued to insureds for settlement of claims/excess collection but not encashed.
41
SCHEDULE 14 : PROVISIONS

31.03.12 31.03.11
( ‘000) ( ‘000)
1. Reserve for Unexpired Risk 6785511 6416626
2. For Taxation (Net of Advance Tax & TDS) 421459 0
3. For Proposed Dividend 250000 200000
4. For Dividend Distribution Tax 40556 32445
5. Others:
i) Provision for Retirement Benefits 91353 81063
ii) Provision for Doubtful Debts 47 47
iii) Provision for Premium Defalcation 18733 18733
iv) Provision on Standard Assets 73640 61210
v) Provision for Outstanding Expenses 11221 12293
TOTAL 7692520 6822417
SCHEDULE 15 : MISCELLANEOUS EXPENDITURE

(To the extent not written off)

31.03.12 31.03.11
( ‘000) ( ‘000)
1. Discount allowed in issue of shares 0 0
2 Research & Development Expenses 0 0
3 Preliminary Expenses 0 0
4 Others 0 0
TOTAL 0 0
42
A n n u a l R e p o r t 2011 - 12
Annexure 1
SIGNIFICANT ACCOUNTING POLICIES

1 Accounting Convention
1.1 The Balance Sheet, Profit & Loss Account and Revenue Account are drawn up in accordance with the
provisions of Section 11 (1) of the Insurance Act, 1938, read with the provisions of sub-sections (1), (2) and
(5) of Section 211 and sub-section (5) of Section 227 of the Companies Act, 1956.
1.2 The Financial Statements conform to the stipulations specified under the Insurance Regulatory and
Development Authority (Preparation of Financial Statements and Auditors’ Report of Insurance Companies)
Regulations, 2002, to the extent applicable.
1.3 The said statements are prepared on “Historical Cost” convention, on “Accrual” & “Going Concern” basis,
in accordance with the generally accepted Accounting Principles, and other Statutory provisions and
practices prevailing in the general insurance industry in India, to the extent applicable, complying with the
Accounting Standards issued under The Companies (Accounting Standards) Rules, 2006 and the relevant
provisions of the Companies Act, 1956, except as stated otherwise.
2 Policyholders’ Fund and Shareholders’ Fund
2.1 The Policyholders’ Fund includes Technical Reserves (including Reserve for Unexpired Risks) and Provision
for Outstanding Claims (including IBNR & IBNER).
2.2 The Shareholders’ Fund includes Share Capital, General Reserve, any other free Reserve, balance in
Profit & Loss A/c and Capital Reserves.
3 Revenue Recognition
3.1 Premium is recognized, net of reinsurance, based on assumption of risk, in the Revenue Account. In
respect of Government Schemes being implemented by the Company, premium is recognized upon
remittance received from the Nodal Banks out of such premium collected by them. Risk however, is
assumed in accordance with the provisions of the relevant Scheme, notwithstanding the delay, if any, in
receipt of premium by the Company from the nodal agencies/ Central / States/ UTs Government/ Government
Agencies, as allowed by IRDA vide its letter no. 34-1/IRDA/Act1/IBNR/AIC/2009-10 dated 26/08/2010.
3.2 Premium refunds/adjustments are accounted for on the basis of endorsements passed during the year.
3.3 Interest Income is accounted for on accrual basis in respect of investments in Fixed Deposits with Banks,
Government Securities, Bonds & other Instruments.
3.4 Dividend is accounted for in the year when the right to receive has been established. Dividend/Interest on
Shares/Debentures pending delivery/under objection is accounted for on realization. Interim Dividend is
accounted for where the warrants are issued by 31st March of the concerned financial year
4 Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost includes the purchase price and any
cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent
expenditure incurred on fixed assets is expensed out except where such expenditure increases the future
benefits from the existing assets.
4.1 Depreciation on Fixed Assets: Depreciation on Fixed Assets is charged on “Written Down Value” at the
rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on addition / deletion of Fixed
Assets during the year is charged on pro-rata basis. Assets costing up to 5,000 (Rupees five thousand)
are fully depreciated in the year of acquisition.
4.2 Intangible Assets: Intangible assets are recognized when it is probable that future economic benefit
attributable to the assets will flow to the company and the cost of the assets can be measured reliably. Such
assets are stated at cost less accumulated amortization.
4.3 Amortization of Intangible Assets: Computer software which is not an integral part of the related hardware
is classified as Intangible Asset and is amortized over its estimated useful life not exceeding the period of
thirty six months.
43
4.4 Impairment of assets: Management periodically assesses, using external and internal sources, whether
there is any indication that an asset may be impaired. Impairment occurs where the carrying value exceeds
the present value of future cash flows expected to arise from the continuing use of the asset and its
eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying
amount over the higher of the asset’s net sales price or present value as determined above. If at the
balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the recoverable amount, subject to a
maximum of depreciable historical cost.
5 Investments
5.1 Investment in debt securities including Government Securities are considered as held to maturity securities
and valued at historical cost. In terms of IRDA regulations, the premium paid at the time of acquisition of
such securities is amortized over the residual period of maturity.
5.2 Investments in Mutual Funds are valued at Net Asset Value (NAV) at the year end and the difference
between cost/book value and NAV is accounted for in Fair Value Change Account. However, if there is
impairment in value, the same is charged to Revenue and the book value of investment is reduced accordingly.
Any reversal of impairment loss earlier recognized is taken to Revenue Account to the extent of reduction
in impairment loss recognized earlier.
5.3 Investment Portfolio in respect of Equity / Equity related instruments is segregated into Actively Traded
and Thinly Traded as prescribed by IRDA Regulations. A security is treated as thinly traded taking into
consideration the prescribed SEBI guidelines governing mutual funds.
5.4 Actively traded equity / equity related instruments are shown at their Fair Value. “Fair Value” for this
purpose is the lower of the closing prices at NSE and BSE on the Balance Sheet date, as per IRDA
Regulations and the net unrealized gain/loss on such valuation is reflected in the “Fair Value Change
Account”. On realization it is reported in the Profit & Loss Account and un-realized gains/losses arising
due to changes in the fair value of actively traded equity shares are accounted in “Fair Value Change
Account.” Pending realization, the credit balance in the “Fair Value Change Account” is not available for
distribution.
Profit/Loss on sale/redemption of equity investment, if any, is accounted for on “First in First out” (FIFO)
method.
5.5 Investment in thinly traded equity shares and unlisted equity shares are shown at cost. However, difference
between cost and break-up value is provided for as diminution in value. If the break-up value is negative
then the provision is made for the entire cost. Further, if the published accounts of an unlisted company
are not available for last three accounting years ending on or immediately preceding the date of working
out diminution in value, then provision is made for the entire cost.
5.6 Investment in listed Equity/Equity related instruments/Preference Shares made in those companies which
are making losses continuously for the last 3 years and where capital is eroded, are considered to have
impaired in value. Further, if the published accounts of a company are not available for the last three
accounting years ending on or immediately preceding the date of working out the impairment in value, it
is presumed that the value of investment is fully impaired and is written off to a value of 1/- per company.
Valuation of such investments is done as under:-
5.6.1 In respect of other than actively traded Equity Shares, the least of the Cost Price and the Market Price of
Break-up Value provided the Break-up value is positive. However, if the Break-up Value is negative, the
nominal value is taken at 1/- per company
5.6.2 In respect of Preference Shares, if the dividend is not received for the last three years, the Preference
Shares are written down to a value which will bear to its face value, the same proportion as value taken /
which would have been taken for writing down equity shares / bears to the face value of the equity shares.
However, if the Equity Shares are written down to 1/- per company, Preference Shares are also written
down to a nominal value of 1/- per company.
5.7 “Collateralized Borrowing and Lending Obligation” (CBLO) which is issued at discount to the Face Value,
is treated as Money Market Instrument as per RBI Notification. Discount earned, if any, at the time of
44
A n n u a l R e p o r t 2011 - 12
lending through CBLO is shown as income, which is apportioned on time basis.

5.8.1 Provisions for standard/non-performing loans/debt securities are made on the basis of prudential norms
issued by RBI as applicable to Financial Institutions, as required by IRDA.
5.8.2 The investment in Government Securities and corporate Bonds are considered as standard assets on
which provision @ 0.40% is made.
5.9 In respect of Crop Insurance schemes sponsored by the Government, the income on investment of funds
received from the Government towards specific Funds (viz. “NAIS-Corpus Fund”) is credited to the relevant
Fund; no credit for investment income, if any, is given to the Government in respect of other amounts
received to meet the financial liabilities under the Scheme as these amounts are meant for implementation
of the Scheme and are required to be kept in readiness for disbursement of claims/meeting out of other
financial obligations at short notice.
5.10 Income from Investments is apportioned between the “Revenue Account”, “Profit and Loss Account”, and
the “NAIS-Corpus Fund” in the ratio of the balances standing in the “Policyholders’ Fund”, “Shareholders’
Fund”, & “NAIS-Corpus Fund” respectively at the beginning of the year.
5.11 Expenses relating to Investments, such as for safe custody, collection of interest/dividend, bank charges,
etc., are apportioned between the “Revenue Account” and “Profit and Loss Account” in the ratio of the
balances standing in the “Policyholders’ Fund” and “Shareholders’ Fund” respectively at the beginning of
the year.
6 Apportionment of Expenses
Expenses not directly allocable to a particular Insurance Scheme/Product and/or a particular State/UT
are apportioned amongst the relevant Schemes/Products and States/UTs annually on the basis of Gross
Premium.
7 Short and Excess Collection
Short and Excess Collection of Premium is accounted for Scheme-wise, State/UT-wise. Recovery of
Short Collection, Refund of Excess Collection and adjustment of Short against Excess of the same Nodal
Bank, are made season-wise, from time to time.
8 Provision in respect of Crop Insurance Business
Provision in this regard is made at the time of annual closing of accounts. Currently, as per the statutory
requirements and the Policy of the Company in force, the following Provisions are made:
Reserve for Unexpired Risks [RUR]
RUR is made to the extent of 50% of Net Premium Income of the year.
Net Premium = Direct Premium + Premium on reinsurance accepted – Premium on reinsurance ceded
9 Provision in respect of Crop Insurance Claims
Provisions are made at the time of annual closing of accounts. The total of the Provision for Outstanding
Claims (including IBNR & IBNER) under NAIS (normal coverage) is not to exceed the “Maximum Potential
Liability” [MPL] of the Company, as the claims in excess thereof are borne by the Government. Currently,
as per the statutory requirements and the Policy of the Company in force, the following Provisions are
made:
9.1 Provision for Outstanding Claims
Estimated Liability for Outstanding Claims in respect of Crop Insurance Business is provided for at the
year-end, in terms of the concerned scheme/policy provisions.
No Provision is made for claims contested by the claimants through litigation but not acknowledged as
debt by the Company.
In respect of litigation cases, where awards have been made against the Company, appropriate Provisions
are made to the extent of the Company’s liability
9.2 Claims – IBNR & IBNER: Provisions for Claims Incurred but Not Reported (IBNR) and for Claims Incurred
but Not Enough Reported (IBNER) are made as per the Actuarial Certification.
45
10 Reinsurance Business
(a) Reinsurance premium ceded is accounted for at the time of recognition of premium income in accordance
with the treaty or in-principle arrangement with the reinsurers.
(b) Commission received on reinsurance ceded is recognized as income in the period in which reinsurance
premium is ceded.
11 Accounting for Taxes on Income
Income tax expense is accrued in accordance with Accounting Standard (AS) – 22 “Accounting for Taxes
on Income” as specified in Companies (Accounting Standards) Rules, 2006.
11.1 Current Tax: Current income tax is aggregate of Income tax determined to be payable in respect of taxes
on income for the year.
11.2 Deferred Tax: Deferred tax reflects the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets
and liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognised for all deductible timing differences
only if there is reasonable certainty as to its realisation. However, where there are unabsorbed tax losses
including unabsorbed depreciation, deferred tax asset are recognised only if there is virtual certainty that
such deferred tax assets can be realised against future taxable income.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and adjusted to the
extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the
deferred tax asset to be realized.
12 Employees’ Benefits
12.1 Short Term Employee Benefits
Short Term Employee Benefits are recognized as an expense on an undiscounted basis in the Profit and
Loss account of the year in which the related service is rendered.
12.2 Post-Employment Benefits
Defined Contribution Plans
(a) The employer’s contribution to Provident Fund and Employees Pension Scheme, of employees absorbed
from GIC is a defined contribution plan and is made in accordance with the GIC Pension / Provident Fund
and the funding continues to be with GIC Pension / Provident Fund Trust.
(b) For the employees directly appointed by the Company on or after January, 2004 the employer’s contribution
to pension fund is made in accordance with the New Pension Scheme, 2004 (i.e. recognised on accrual
& paid monthly).
Defined Benefit Plans
(a) Gratuity: The Employees Gratuity Fund Scheme is a defined benefit plan. The liability for gratuity is
provided on actuarial valuation at the end of the year, without any funding arrangement.
(b) Pension: The Pension plan of the Company is a defined benefit. The present value of the Company’s
obligations under Pension in respect of erstwhile employees absorbed from GIC is recognized on the
basis of an actuarial valuation as at the end of the year in proportion to the service rendered to GIC and the
company. The liability is not funded.
In respect of employees covered under New Pension Scheme, the matching employer’s contribution is
recognized on accrual and paid monthly
12.3 Long Term Employee Benefits
The liability for leave encashment, sick leave and leave travel subsidy is recognized on the basis of
actuarial valuation at the end of the year.
13 Earning per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period. For
46
A n n u a l R e p o r t 2011 - 12
the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares
14 Contingent Liabilities
Contingent liability is disclosed in the case of:
(a) a present obligation arising from a past event when it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or;
(b) a possible obligation, unless the probability of outflow in settlement is remote
15 Contingent Assets
Contingent Assets are neither recognized nor disclosed.
16 Accounting for Government Grants
Government Grants related to revenue are recognized in the profit and loss account on a systematic basis
over the periods necessary to match them with the related costs which they are intended to compensate.
Such grants are deducted in reporting the related expense.
17 Miscellaneous
Telephone/Electricity/Water or such other deposits with the Local /Statutory Authorities have been charged
off to the Revenue Account after retaining 1 under the Deposit Head, for control purposes. If any amount
is subsequently recovered towards these deposits, the same is credited to “Miscellaneous Income”
Only those prepaid expenses which are 10,000/- or more are carried forward to the next financial year.


DIN 00191219 DIN 00760048 DIN 02502200
for M/s S C Vasudeva & Company for M/s K K Ghei & Company
(Abhinav Khosla) (D S Sobti)

Partner Partner
M.No. 087010 M.No. 016416
Place: New Delhi

Date: 14.05.2012
47
Annexure – 2
Notes Forming Part of Accounts
1. IRDA Compliance
The Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors’
Report of Insurance Companies) Regulations, 2002, have been complied with in the presentation of these
accounts, to the extent applicable.
2 2.1 Takeover of Crop Insurance Business
The Company was designated as the Implementing Agency for ‘National Agricultural Insurance
Scheme’ with effect from 1st April 2003 by the Ministry of Agriculture, Government of India, vide its
letter dated 22nd October 2003. Accordingly, the crop insurance business was taken over by the
company from the General Insurance Corporation of India (GIC). Based on their audited statement,
assets amounting to 58,95,66 thousand and liabilities amounting to 4,50,03,29 thousand
relating to crop insurance business as on 31st March, 2003 were received from GIC vide their letter
dated 3rd February 2004 and were incorporated in the books of accounts of the company.
2.2 Reserve for Unexpired Risks amounting to 184,91,47 thousand as on the date of transfer of business
from GIC to the company i.e., 01st April, 2003 has not yet been transferred by GIC to the company.
3 Business & Geographical Segment
As per the Accounting Standard 17 -”Segment Reporting”, the company has only one Business Segment,
i.e. “CROP INSURANCE”, and only one Geographical Segment, i.e. “INDIA”.
4. Disclosures Forming Part of Financial Statements
4.1 Contingent liabilities
4.1.1 Partly paid-up Investments: NIL (previous year NIL)
Underwriting commitments outstanding: NIL (previous year NIL)
4.1.2 Claims against the company, other than those under Policies, not acknowledged as debt: NIL
(previous year NIL)
Claims against the company, those under Policies, not acknowledged as debt: 16,45,90 thousand
(previous year 59,81,08 thousand)
4.1.3 Guarantees given by or on behalf of the Company: NIL (previous year NIL)
4.1.4 Statutory Demands /Liabilities in dispute not provided for: NIL (previous year NIL)
4.1.5 Reinsurance obligations to the extent not provided for in Accounts: NIL (previous year NIL)
4.1.6 Others: NIL (previous year NIL)
4.2 As at 31st March 2012, all the assets of the company are free from encumbrances, except (as
mandatory under Section 7 of Insurance Act, 1938) Central Government Security – 6.72%, 2012,
amounting to 10,01,82 thousand (previous year 10,07,93 thousand) deposited with PNB Gilt
(approved by RBI) and grouped under Loans and Advances (schedule 12).
4.3 Commitment made and outstanding as on 31st March, 2012 for :-
i Loans and Investments: NIL (previous year NIL) ]
ii ERP Project “Annapoorna” under implementation: 31,12,76 thousand (previous year
37,13,35 thousand)
iii Others: 38,71 thousand (previous year 25, 97 thousand)
4.4 Ageing of claims is presented below, distinguishing between “Claims Outstanding for more than
six months” and “Other Claims i.e. Claims Outstanding up to six months”:-
in thousand
Particulars 2011-12 2010-11
Foreign Business NOT APPLICABLE
Indian Business
Claims o/s for more than six months 92,30,04 44,21,19
Claims o/s up to six months 8,41,40,72 1,76,92,95
48
A n n u a l R e p o r t 2011 - 12
4.5 Short collection of Premium included under ‘Schedule of Advances and Other Assets’ represent
amounts receivable from Nodal banks of 1,45,51 thousands as at 31.03.2012 remains unconfirmed.
Excess collection of Premium included under ‘Schedule of Current liabilities’ which represent
amounts payable to Nodal banks of 9,87,04 thousands as at 31.03.2012 remains unconfirmed.
4.6 Value of Contracts in relation to Investments for :-
4.6.1 Purchases where deliveries are pending: NIL (previous year NIL)
4.6.2 Sales where payments are overdue: NIL (previous year NIL)
4.7 The historical cost of those Investments which are valued on “Fair Value” basis is 37,16,27
thousand (previous year 35,98,46 thousand).
4.8 Computation of managerial remuneration as per Section 198 [pursuant to sub-section (A) of
Section II of Part II of Schedule XIII] of the Companies Act, 1956 given to
Mr. M Parshad from April 2011 to November 2011,
Mr. A. K. Roy for December, 2011
Mr. Milind A. Kharat from January 2012 to March, 2012 is presented below:-
Amount in Rupees
Gross Salary Co’s Contribution to Other
PF/ Pension Fund Perquisites
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
24,21,053 21,28,454 99,593 96,000 - 21,600
4.9 The basis of amortization of Debt Securities is stated in the Significant Accounting Policy No.
5.1. The total amount of 1,69,04 thousand has been amortized during the year (previous year
2,73,11 thousand).
4.10 The Company does not hold any immovable property for investment purposes.
4.11 As per IRDA Circular Ref.:005/IRDA/F&A/CIR/May-09 dated 07.05.2009, the details of various
penal actions taken by various Government Authorities during the year is as under:-
Non- Amount in
SN Authority Compliance Penalty Penalty Penalty
/ violation Awarded Paid Waived/
Reduced
1 Insurance Regulatory and Development Authority NIL NIL NIL NIL
2 Service Tax Authorities NIL NIL NIL NIL
3 Income Tax Authorities NIL NIL NIL NIL
4 Any other Tax Authorities NIL NIL NIL NIL
5 Enforcement Directorate/ Adjudicating NIL NIL NIL NIL
Authority/ Tribunal or any Authority under FEMA
6 Registrar of Companies/NCLT/CLB/ NIL NIL NIL NIL
Department of Corporate Affairs or
any Authority under Companies Act, 1956
7 Penalty awarded by any Court/
Tribunal for any matter including claim
settlement but excluding compensation NIL NIL NIL NIL
8 Securities and Exchange Board of India* N. A. N. A. N. A. N. A.
9 Competition Commission of India NIL NIL NIL NIL
10 Any other Central/State/ Local Govt. NIL NIL NIL NIL
/Statutory Authority
*Post listing.
49
4.12 The Government of India vide their letter no. F. No. C-13014/16/2004- Ins. I dated 23.12.2009, called
for 200,00,00 thousand from the Company from the retained profits/reserves (created out of NAIS
activity), as a prelude to the recasting of the Scheme as an ad-hoc payment. Accordingly, an
amount of 200,00,00 thousand was paid to the Government of India, with due approval of the
Board; and concurrence of IRDA vide their letter dated 01.01.2010 and the same being an ad-hoc
payment has been accounted for as ‘Other Advances’ under Schedule 12 of the Annual Accounts
as on 31st March 2012 i.e., ‘Advances and Other Assets’ pending recast of the Scheme.
4.13 Details of expenses incurred under the following heads:-
Outsourcing 91,61 thousand (previous year 79,47 thousand)
(for non-core functions)
Business development 46,15 thousand (previous year 56,60 thousand)
Marketing support NIL(previous year NIL)
4.14.1 Under Insurance Act 1938 (Section 64VB), risk can be assumed only when the requisite premium
is received.
However, the company assumes risk but recognizes the premium upon the same being remitted
by the collecting bank at a later date since the company cannot anticipate the accrual in the
absence of such receipt. Thereby, the assumption of risk is strictly not in accordance with the
provisions of the aforesaid section.
However, in response to company’s letter dated 9th August, 2010 IRDA vide its letter dated 26th
August, 2010 has allowed the company to continue with this practice, till further orders.
4.14.2 The balance of NAIS Premium for Rabi 2011-12 collected by the banks from the farmers has
neither been remitted to the company nor any consequential provision for claims accounted for in
the absence of requisite data upto 31st March, 2012. The amount is not ascertainable as on date.
4.15 The Government of India (Ministry of Agriculture) vide their letter dated 12th July 2011 revised the
claim sharing under NAIS in respect of annual commercial & horticultural crops (ACH) and additional
coverage within Food Crops and Oilseed (FCOS) with effect from Kharif 2011 season.
The Company could arrange for reinsurance protection in respect of ACH crops only for Kharif
2011 season, whereas the risk under additional coverage within FCOS crops’, having Sum Insured
of 275,00,79 thousand and premium of 18,69,63 thousand could not be reinsured and
accordingly, the entire risk was retained within the Company. Against this additional coverage
within FCOS crops as on 31st March 2012, claims amounting to 9,45,67 thousand have already
been incurred.
From next season i.e. Rabi 2011-12 onwards, the reinsurance for both the crop groups has been
arranged.
5 5.1 Related Party Disclosure as per Accounting Standard – 18
Key Management Personnel·
Mr. M Parshad, Chairman-cum-Managing Director (From April 2011 to November 2011),
Mr. A. K. Roy Officiating Chairman-cum-Managing Director (December 2011)
Mr. Milind A. Kharat Officiating Chairman-cum-Managing Director (From January 2012 to
March 2012)
Nature of Transactions:
1. Salaries, allowances and contributions as on 31st March 2012: 25,21 thousand (previous
year 22,24 thousand)
2. Loan balances due as on 31st March 2012: NIL (previous year NIL)
6 6.1 During the year, the Company has received the following amounts from the Government (Central/
States/UTs) towards implementation of NAIS and towards Premium Subsidy in respect of Pilot
Scheme on Weather Based Crop Insurance & Modified NAIS:
50
A n n u a l R e p o r t 2011 - 12
in thousand
SN Particulars Current Year Previous Year
2011-12 2010-11
1. NAIS – Premium Subsidy 1,15,08,02 95,38,46
2. NAIS–Bank Service Charges 15,85,95 12,88,91
3. NAIS – Claim Share 11,85,10,36 45,94,27,34
4. NAIS - Corpus Fund 50,29,87 35,37,88
5. WBCIS – Premium Subsidy 13,16,44,24 8,18,44,98
6. Modified NAIS– Premium Subsidy 1,11,71,58 26,00,92
TOTAL 27,94,50,02 55,82,38,49
Further, the Government-wise balances as at 31st March, 2012 are detailed in Annexure-7.
6.2 The Opening Balance under National Agricultural Innovation Project (NAIP) NAIP was 58 thousand.
During the year, the Company has received an amount of 4,61 thousand for implementation of
‘Risk Assessment and Insurance Products for Agriculture’ under NAIP, out of which an amount of
2,85 thousand has been utilized under basic and strategic research during the year. Out of the
unspent amount of 234 thousand 200 thousand has been refunded.
7 Sharing of Expenses of National Agricultural Insurance Scheme
As per NAIS provisions, the Administrative & Operating Expenses are shared among the Company, the
Govt. of India, and the State/Union Territory Government on a specified basis. For the year under review,
20% (previous year 20%) of the total Administrative & Operating Expenses incurred for NAIS are recoverable
from the Govt. of India and the respective State/UT Governments. The total recovered/recoverable share
amounts to 3,05,13 thousand (previous year 4,89,96 thousand).
Accordingly, the Company has received the following amounts from the Government (Central/States/UTs)
towards reimbursement of following expenses related to NAIS :
in thousand
SN Particulars Current Year Previous Year
2011-12 2010-11
1. NAIS – A & O Expenses 76,44 2,09,83
2. NAIS – Publicity Expenses 43,79 10,10
Expenses incurred towards NAIS shown under Schedule 4 are net of the Government’s (Centre/ States /
UTs) share of 20% (previous year 20%) received/receivable from the respective Governments.
8 Investments
The company has invested its funds as per the investment pattern prescribed by the IRDA Regulations on
Investments, and the Company’s Investment Policy. The Book value of Investments of the Company as on
31st March, 2012 is 3223,74,90 thousand (previous year 2653,05,51 thousand), and the Market value
of the Company’s Investments as on that date is 3219,95,56 thousand (previous year 2656,87,68
thousand). Gross Income from Investments amounted to 252,56,33 thousand during the financial year
under review (previous year Rs. 189,76,86 thousand) which includes an investment income of 8,62,47
thousand (previous year 71,604 thousand), credited to NAIS Corpus Fund.
9 Reinsurance Ceded
During the year under review, the company paid a sum of 1219,74,89 thousand (previous year
666,75,02 thousand) as Reinsurance Premium and earned a commission of 270,53,52 thousand
(previous year 144,78,08 thousand), and has accounted for Reinsurance Claims recovery of 1034,86,23
thousand (previous year 475,55,15 thousand).
51
10 Borrowings
As at the end of the year under review, the company has no borrowings (previous year NIL).
11 Retirement Benefits to Employees
11.1.1 The company’s liabilities on account of Retirement Benefits towards Pension, Gratuity, Leave
Encashment, Sick Leave and Leave Travel Subsidy (LTS) in respect of employees have been duly
provided for as per actuarial valuation in terms of Accounting Standard 15 issued by the Institute
of Chartered Accountants of India and the same has been accounted for under the head “Retirement
Benefits, in Schedule 14 of the Balance Sheet.
11.1.2 The Provident/Pension Fund of the employees of the Company absorbed from GIC is continued to
be funded with GIC Pension/ Provident Trust.
11.1.3 The Pension Fund of the employees directly recruited by the Company is as per the provisions of
New Pension Scheme (NPS) stipulated by Pension Fund Regulatory Development Authority
(PFRDA).
11.1.4 The estimates of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors such as supply and demand in employee market.
11.2 The summarized position of Post-employment benefits and long term employee benefits recognized
in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting
Standard – 15 (Revised) are as under:-
(Amount in )
Gratuity Leave Pension Leave
SN Particulars Encashment Plan Travel
(PL+SL) Subsidy
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Change in the present value of obligations
a Obligation as at 40,192,471 33,205,649 4,923,824 2,740,685
April 01, 2011 [1,85,23,286] [2,17,11,285] [43,37,434] [26,79,422]
b Current Service Cost 2,608,021 5,988,199 1,352,673 1,861,238
[23,52,185] [60,61,252] [7,26,143] [15,49,974]
c Interest Cost 3,319,719 2,895,980 448,013 293,704

[15,75,950] [19,79,353] [3,76,040] [2,76,353]
d Actuarial (Gain) / Loss (628,347) (8,296,687) 4,316,795 (32,899)

[2,02,24,600] [43,30,838] [(5,15,793)] [10,66,370]
e Benefits paid (1,000,000) (1,264,000) - (1,571,664)

[(24,83,550)] [(8,77,079)] [0.00] [(28,31,434)]
f Obligation as at 44,491,864 32,529,141 11,041,305 3,291,064

March 31, 2012 [4,01,92,471] [3,32,05,649] [49,23,824] [27,40,685]
Change in fair value of plan assets
a Fair Value of Plan Assets 0 0 0 0

as at April 01,2011 [0.00] [0.00] [0.00] [0.00]
b Expected return 0 0 0 0
on Plan Asset [0.00] [0.00] [0.00] [0.00]
c Contributions 0 0 0 0
[0.00] [0.00] [0.00] [0.00]
52
A n n u a l R e p o r t 2011 - 12
d Benefits paid 0 0 0 0
[0.00] [0.00] [0.00] [0.00]
e Fair Value of Plan Assets 0 0 0 0
as at March 31, 2012 [0.00] [0.00] [0.00] [0.00]
Reconciliation of fair value of assets and obligations
a Present value of obligation 44,491,864 32,529,141 11,041,305 3,291,064
as at March 31, 2012 [4,01,92,471] [3,32,05,649] [49,23,824] [27,40,685]
b Fair Value of Plan Assets - - - -
as at March 31, 2012
c Unfunded amount 44,491,864 32,529,141 11,041,305 3,291,064
recognized in the [4,01,92,471] [3,32,05,649] [49,23,824] [27,40,685]
Balance Sheet
Expense recognized in the Statement of Profit & Loss Account

a Current Service Cost 2,608,021 5,988,199 1,352,673 1,861,238
[23,52,185] [60,61,252] [7,26,143] [15,49,974]
b Interest Cost 3,319,719 2,895,980 448,013 293,704
[15,75,950] [19,79,353] 3,76,040 [2,76,353]
c Past Service Cost - - - -
d Expected return on - - - -
Plan Assets
e Actuarial (Gain) / Loss (628,347) (8,296,687) 4,316,795 (32,899)
[2,02,24,600] [43,30,838] [(5,15,793)] [10,66,370]
f Expenses recognized 5,299,393 587,492 6,117,481 2,122,043
during the year [2,41,52,735] [1,23,71,443] [5,86,390] [28,92,697]
Amount recognized in balance sheet
a Opening Net Liability 40,192,471 33,205,649 4,923,824 2,740,685
[1,85,23,286] [2,17,11,285] [43,37,434] [26,79,422]
b Expense as above 5,299,393 587,492 6,117,481 2,122,043
[2,41,52,735] [1,23,71,443] [5,86,390] [28,92,697]
c Additional contribution (1,000,000) (1,264,000) - (1,571,664)
over and above mandatory [(24,83,550)] [(8,77,079)] [-] [(28,31,434)]
d Closing Net liability 44,491,864 32,529,141 11,041,305 3,291,064

[4,01,92,471] [3,32,05,649] [49,23,824] [27,40,685]
Principal actuarial assumption as expressed as weighted average Rate per annum
a Discount Rate (per annum) 8.00% 8.00% 8.00% 8.00%
[8.00%] [8.00%] [8.00%] [8.00%]
b Expected rate of N.A N.A N.A N.A
return on Plan Assets [N.A] [N.A] [N.A] [N.A]
(per annum)
c Rate of escalation 5.00% 5.00% 6.00% 6.00%

in salary (per annum) [5.00%] [5.00%] [6.00%] [6.00%]
**[figures in square brackets are previous year’s figures ]
53
12 Deferred Tax Assets / Liability

The computation of Deferred Tax Asset/ Liability in accordance with Accounting Standard – 22 “Accounting
for Taxes on Income”, has resulted in a Deferred Tax Asset of 3,10,29 thousand as at 31st March 2012
(previous year 1,93,52 thousand) and the same has been provided for in the books of account as
under:-
in thousand
Deferred Tax Assets As on 31.03.2012 As on 31.03.2011

Difference in WDV (69,39) (3,51,00)
Retirement Benefits 9,13,53 8,10,63
Provision for PLI & Fees to
statutory bodies 1,12,21 1,22,93
TOTAL 9,56,35 5,82,56
Deferred Tax Assets 3,10,29 1,93,52
13 Impairment in the Value of Fixed Assets

In accordance with the Accounting Standard – 28 “Impairment of Assets”, the company has assessed as
on the balance sheet date, whether there are any indications (listed in paragraphs 8 to 10 of the Standard)
with regard to impairment of any of the assets. Based on such assessment, it has been ascertained that
no potential loss is present and therefore, formal estimate of recoverable amount has not been made.
Accordingly, no impairment loss has been provided in the books of account.
14 The title deeds in respect of three residential flats, costing 45,51 thousand located at Bangalore, in
possession of the Company, are yet to be transferred from GIC to the Company.
15 Cash Flow Statement
The Company has prepared the “Cash Flow Statement” for the year under review, adopting the Direct
Method as required under the IRDA Regulations (Annexure - 4).
16 Summary of Financial Statements
The “Summary of Financial Statements”, as required under the IRDA Regulations, is as per Annexure - 5.
17 Accounting Ratios
“Accounting Ratios”, as required under the IRDA Regulations, is as per Annexure - 6.
18 Earnings Per Share [EPS]
The Earnings per Share (EPS) of the Company as per Accounting Standard – 20 issued by the Institute of
Chartered Accountants of India is as under:
PARTICULARS Current Year Previous Year

2011-12 2010-11
Profit after Tax (net of prior-period adjustments) 502,21,87 thousand 380,29,60 thousand
Weighted number of Equity Shares 20,00,00 thousand 20,00,00 thousand
Nominal Value of Share 10/- per Share 10/- per Share
Basic & Diluted EPS 25.11 19.01
54
A n n u a l R e p o r t 2011 - 12
19 Legal Cases
In respect of legal cases filed by the insured farmers under NAIS which have been awarded against the
Company by the Original Court of jurisdiction, necessary provision there-against have been made to the
extent of the liability of the Company as per the provisions of the Scheme.
20 Micro, Small and Medium Enterprises Development Act, 2006
The Company has no suppliers who fall into the category of Micro, Small and Medium Enterprises as
defined in ‘The Micro, Small and Medium Enterprises Development Act, 2006’. Hence there is no amount
due to Micro, Small and Medium Enterprises for the year ended 31st March, 2012. (Previous Year Rs.
Nil).
21 Presentation
Figures in brackets, unless stated otherwise, reflect negative figures.
22 Previous Year’s Figures
Previous year’s figures have been regrouped and restated, as per the requirements of IRDA reporting
norms, or else wherever deemed necessary, to make it comparable with the current year’s figures.
Statement showing the Age-wise Analysis of the Unclaimed amount of the Policyholders as on 31.03.2012
SN Particulars Total AGE-WISE ANALYSIS

Amount 1-6 7-12 13-18 19-24 25-30 31-36 Beyond 36
months months months months months months months
(Amount in thousands)
1 Claims settled but not 503,964 287,193 211,716 260 613 1,245 2,925 13
paid to the policyholders/
insureds due to any
reasons except under
litigation from the insured/
policyholders
2 Sum due to the insured / 0 0 0 0 0 0 0 0
policyholders on maturity
or otherwise
3 Any excess collection
of the premium/tax or
any other charges which
is refundable to the 98,704 51,389 11,891 23,480 4,649 6,491 322 482
policyholders either as
terms of conditions of the
policy or as per law or as
may be directed by the
Authority but not refunded
so far
55
4 Cheques issued by the

insurer for Settlement of
Claims/excess collection 176,971 116,478 21,237 17,833 9,000 6,926 2,696 2,802
etc. and cheques have not
been encashed by the
policyholders/ insured


DIN 00191219 DIN 00760048 DIN 02502200

Partner Partner
M.No. 087010 M.No. 016416
Place: New Delhi

Date: 14.05.2012
56
GOVERNMENT FUND STATEMENT ANNEXURE-7
AS ON 31.03.2012 Amount (In. )
SN STATE / UT GOVT. Particulars Corpus A&O Publicity Premium Premium Bank Claims TOTAL
Fund Expenses Expenses Subsidy Subsidy Service Share
(NAIS) (WBCIS & Ors) Charges
nais govt fund
1 HEAD OFFICE Opening Bal. (01.04.2011) 115,547,347.93 (24,498,219.75) 11,582,727.55 54,050,402.31 581,135,398.41 0.00 4,955,675,006.75 5,693,492,663.20
New Delhi Receipts (from Govt.) 6,931,800,000.00 3,600,000,000.00 10,531,800,000.00
(Govt. of India) Interest income on Govt. Funds 162,030,621.28 162,030,621.28
Credit-adjustments (rct) 0.00
A n n u a l
Credit-adjustments (others) 39,498,219.75 208,013,312.91 102,151,780.68 349,663,313.34

Payments (to Govt.) 0.00
Debit-adjustments (pmt) (6,306,545.55) (246,729,499.63) (5,481,402,797.43) (102,151,780.68) (8,281,358,360.62) (14,117,948,983.91)
Debit-adjustments (others) (349,663,313.34) (349,663,313.34)
Payment to other Insurance Companies (2,103,841,960.00) (2,103,841,960.00)
Apportionment (15,182,319.78) (15,182,319.78)
Income Share on Corpus Fund 9,649,874.20 9,649,874.20
Closing Bal. (31.03.2012) 125,197,222.13 (182,319.78) 5,276,182.00 15,334,215.59 (72,309,359.02) 0.00 86,683,954.07 159,999,894.99
2 AHMEDABAD Opening Bal. (01.04.2011) 225,056,630.74 (3,517,115.79) 791,853.32 6,958,405.68 (108,390.00) 1,775,367.51 45,591.38 231,002,342.83
Gujarat Receipts (from Govt.) 500,431,517.00 3,517,115.00 0.00 22,438,040.00 63,361,532.00 31,273,003.00 10,497,560.00 631,518,767.00
Interest income on Govt. Funds 0.00
Credit-adjustments (rct) 48,186.93 78,679.79 126,866.72
Credit-adjustments (others) 8,895,438.56 0.00 0.00 431,517.00 9,326,955.56
Debit-adjustments (pmt) (196,922.13) (22,806,372.15) (63,324,953.23) (14,052,047.28) (10,513,550.24) (110,893,845.03)
Debit-adjustments (others) (9,326,955.56) (31,525.00) (9,358,480.56)
57
R e p o r t
Payment to other Insurance Companies

Apportionment (1,721,781.82) 0.00 0.00 (1,721,781.82)
Income Share on Corpus Fund 18,795,482.65 0.00 18,795,482.65
Closing Bal. (31.03.2012) 743,852,113.39 (1,721,782.61) 594,931.19 7,021,590.53 (71,811.23) 19,044,510.16 76,755.93 768,796,307.35
3 BANGALORE Opening Bal. (01.04.2011) 0.00 (2,048,309.02) 1,941,680.47 (6,364,398.02) (7,063,363.22) 526,132.02 15,620,103.45 2,611,845.68
Karnataka Receipts (from Govt.) 0.00 0.00 0.00 6,757,000.00 303,903,847.00 4,809,000.00 160,617,000.00 476,086,847.00
Interest income on Govt. Funds
Credit-adjustments (rct) 732,315.59 4,495.43 1,806,895.71 2,543,706.73
Credit-adjustments (others) 6,325,000.00 732,200.09 4,875,000.00 11,932,200.09
Payments (to Govt.) (47,122,000.00) (47,122,000.00)
2011 -
Debit-adjustments (others) (732,200.09) (11,200,000.00) (11,932,200.09)

Payment to other Insurance Companies (20,735,308.39)
Apportionment (1,469,678.39) 0.00 (1,469,678.39)
Income Share on Corpus Fund 0.00 0.00 0.00
12
Closing Bal. (31.03.2012) 0.00 (3,517,987.41) 1,687,645.78 2,474,009.65 33,662,044.50 4,989,486.63 44,851,765.42 84,146,964.56
4 BHOPAL Opening Bal. (01.04.2011) 131,046,230.73 (2,956,728.09) (218,094.17) (440,675.06) (121,167,552.02) 14,654,985.83 2,245,669.88 23,163,837.10
Madhya Pradesh Receipts (from Govt.) 626,756.00 218,094.00 21,149,429.62 589,505,713.00 21,823,497.38 1,780,527,666.00 2,413,851,156.00
Credit-adjustments (others) 2,329,972.13
Debit-adjustments (pmt) (109,796.41) (20,555,093.16) (176,519,084.22) (13,852,213.42) (1,780,528,869.66) (1,991,565,056.87)
Payment to other Insurance Companies (292,304,235.00) (292,304,235.00)
Apportionment (2,044,802.76) 0.00 (2,044,802.76)
Closing Bal. (31.03.2012) 141,990,485.73 (2,044,802.72) (109,796.58) 153,661.40 (485,158.24) 22,703,522.04 365,408.72 162,573,320.35
nais govt fund
5 BHUBANESHWAR Opening Bal. (01.04.2011) 0.00 (10,547,817.40) (1,839,401.61) (20,481,184.18) (8,876,645.37) 1,138.29 0.00 (41,743,910.27)
Orissa Receipts (from Govt.) 20,825,178.40 34,026,145.00 5,550,854.92 454,166,644.68 514,568,823.00
Credit-adjustments (rct) 86,796.81 86,796.81
Credit-adjustments (others) 0.00
Payments (to Govt.) (86,796.81) (86,796.81)
Debit-adjustments (pmt) (30,680,177.30) (24,941,008.67) (173,662.42) (454,166,644.68) (509,961,493.07)
Debit-adjustments (others) (1,138.58) (244,200.25) (245,338.83)
Payment to other Insurance Companies 0.00
Apportionment (1,024,016.18) (1,024,016.18)
Income Share on Corpus Fund 0.00 0.00
Closing Bal. (31.03.2012) 0.00 (11,571,833.58) (1,839,401.61) (30,336,183.08) 208,490.96 5,377,192.21 (244,200.25) (38,405,935.35)
6 (A) CHANDIGARH Opening Bal. (01.04.2011) 0.00 (301,714.32) (32,852.06) (5,205,825.42) (22,379,157.12) 202,259.90 12,021.55 (27,705,267.47)
Agriculture
Himachal Pradesh Receipts (from Govt.) 3,915,857.16 23,937,197.84 27,853,055.00

Debit-adjustments (pmt) (14,643.81) (8,426,757.50) (28,813,284.28) (37,254,685.59)
Debit-adjustments (others) 0.00
Apportionment (106,413.62) 0.00 (106,413.62)
Closing Bal. (31.03.2012) 0.00 (408,127.95) (47,495.87) (9,716,725.76) (27,255,243.56) 202,259.90 12,021.55 (37,213,311.68)
58
Insurance
6 (B) Haryana Opening Bal. (01.04.2011) 3,401,772.09 (330,358.44) (6,720.86) 100,301.04 (9,416,179.32) 673,083.25 23.30 (5,578,078.94)
Receipts (from Govt.) 241,356.52 200,000.00 488,574.61 61,833,822.00 234,371.86 10,232,346.01 73,230,471.00
Debit-adjustments (pmt) (48,756.21) (136,933.55) (35,771,467.45) (750,721.01) (10,232,346.01) (46,940,224.23)
Apportionment (92,562.63) 0.00 (92,562.63)
Company
Income Share on Corpus Fund 284,097.15 0.00 284,097.15

Closing Bal. (31.03.2012) 3,685,869.25 (181,564.55) 144,522.93 451,942.10 (17,169,188.77) 156,734.10 23.30 (12,911,661.64)
6 (C) Jammu & Kashmir Opening Bal. (01.04.2011) 0.00 (48,164.87) (1,038,332.60) (146,686.11) 0.00 739.14 2.27 (1,232,442.16)
of
Receipts (from Govt.) 33,781.00 1,036,000.00 180,950.68 69,849.39 4,650,930.93 5,971,512.00

Debit-adjustments (pmt) (30,677.19) (59,914.50) (4,650,930.67) (4,741,522.36)
India

Apportionment (9,411.45) (9,411.45)
Closing Bal. (31.03.2012) 0.00 (23,795.32) (33,009.79) (25,649.93) 0.00 70,588.53 2.53 (11,863.98)
Limited
nais govt fund
6(D) Punjab Opening Bal. (01.04.2011) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Receipts (from Govt.)
Credit-adjustments (rct)
Credit-adjustments (others)
Payments (to Govt.)
Debit-adjustments (pmt)
Debit-adjustments (others)
A n n u a l

Apportionment 0.00
Income Share on Corpus Fund
Closing Bal. (31.03.2012) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 (A) CHENNAI Opening Bal. (01.04.2011) 115,491,247.29 (5,112,383.27) (787,641.46) (437,402,268.80) (5,516,806.86) 15,566,553.08 1,798,085.29 (315,963,214.73)
Tamil Nadu Receipts (from Govt.) 415,613,272.00 7,861,984.00 10,793,834.00 356,677,742.00 790,946,832.00
Credit-adjustments (rct) 50,860,672.01 50,860,672.01
Debit-adjustments (pmt) (309,841.63) (251,368,435.69) (9,035,198.84) (339,843,783.57) (600,557,259.73)
Apportionment (1,039,232.04) 0.00 (1,039,232.04)
Closing Bal. (31.03.2012) 125,136,436.28 (6,151,615.31) (1,097,483.09) (273,157,432.49) (40,696,288.52) 17,325,188.24 69,492,715.73 (109,148,479.16)
59
R e p o r t
7 (B) Pondicherry Opening Bal. (01.04.2011) 10,932,199.17 (49,601.80) (128,607.03) (576,053.17) 0.00 41,980.19 0.00 10,219,917.36
Receipts (from Govt.) 573,641.63 7,749.91 173,491.77 754,883.31
Debit-adjustments (pmt) (2,971,172.27) (2,971,172.27)
Debit-adjustments (others) (173,491.77)
Apportionment (12,690.30) (12,690.30)
Income Share on Corpus Fund 912,996.69 912,996.69
2011 -
Closing Bal. (31.03.2012) 11,845,195.86 (62,292.10) (128,607.03) (2,973,583.81) 0.00 49,730.10 0.00 8,730,443.03
7 (C) Andaman & Nicobar Opening Bal. (01.04.2011) 3,751,662.95 (1,647.41) (63,736.56) (45,373.38) 0.00 0.03 0.00 3,640,905.63
Receipts (from Govt.) 45,373.47 791.53 102,032.00 148,197.00
12

Debit-adjustments (pmt) (349,505.06) (102,031.94) (451,537.00)
Apportionment (762.90) (762.90)
Closing Bal. (31.03.2012) 4,064,981.05 (2,410.31) (63,736.56) (349,504.97) 0.00 791.56 0.06 3,650,120.83
nais govt fund
8 DEHRADUN Opening Bal. (01.04.2011) 1,047,018.46 (237,140.34) 323,787.27 1,267,242.22 (3,661,401.02) 685,165.15 (2,282.77) (577,611.02)
Uttaranchal Receipts (from Govt.) 649,960.37 200,000.00 6,000,000.00 8,822,595.00 1,000,000.00 36,415,039.63 53,087,595.00
Credit-adjustments (others) 4,437,932.10 4,437,932.10
Debit-adjustments (pmt) (36,870.31) (842,627.20) (18,851,645.62) (35,848,166.60) (55,579,309.73)
Debit-adjustments (others) (979,716.60) (200,000.00) (880,629.89) (1,689,898.11) (685,165.15) (2,522.36) (4,437,932.11)
Apportionment (149,322.66) 0.00 (149,322.66)
Closing Bal. (31.03.2012) 154,743.04 263,497.37 286,916.96 5,543,985.13 (15,380,349.75) 1,000,000.00 5,062,678.90 (3,068,528.35)
0.00 0.00
Agriculture
9 (A) GUWAHATI Opening Bal. (01.04.2011) 0.00 (4,462,926.67) (1,071,521.06) (741,122.25) (333,917.19) 335,985.55 432,588.53 (5,840,913.08)
Assam Receipts (from Govt.) 0.00
Debit-adjustments (pmt) (190,961.44) (1,512,910.07) (2,449,151.65) (58,601.81) (4,211,624.97)
Apportionment (207,187.26) (207,187.26)
60
Insurance
Closing Bal. (31.03.2012) 0.00 (4,670,113.93) (1,262,482.50) (2,254,032.32) (2,783,068.84) 335,985.55 373,986.72 (10,259,725.31)
9 (B) Meghalaya Opening Bal. (01.04.2011) 5,769,146.30 237,964.58 278,728.71 (25,876.21) 0.00 20,168.94 466,819.22 6,746,951.54
Receipts (from Govt.) 0.00
Credit-adjustments (others) 25,252.45 25,252.45
Debit-adjustments (pmt) (40,949.69) (106,003.35) (146,953.04)
Debit-adjustments (others) (25,252.45) (25,252.45)
Company
Apportionment (14,494.60) (14,494.60)

Closing Bal. (31.03.2012) 6,250,953.43 223,469.98 237,779.02 (106,627.11) 0.00 20,168.94 441,566.77 7,067,311.03
of
9 (C) MANIPUR Opening Bal. (01.04.2011) 0.00 (3,207.76) 0.00 (10,164.46) 0.00 0.00 0.00 (13,372.22)
Receipts (from Govt.) 112,000.00 10,164.46 4,004.56 473,830.98 600,000.00
India
Debit-adjustments (pmt) (35,799.25) (85,223.21) (4,004.56) (393,418.04) (518,445.06)

Apportionment (15,215.86) (15,215.86)
Closing Bal. (31.03.2012) 0.00 93,576.38 (35,799.25) (85,223.21) 0.00 0.00 80,412.94 52,966.86
Limited
nais govt fund
9 (D) MIJORAM Opening Bal. (01.04.2011) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debit-adjustments (pmt) (127,621.50) (127,621.50)
Debit-adjustments (others) (29,505.25)
A n n u a l

Apportionment 0.00 0.00
Closing Bal. (31.03.2012) 0.00 0.00 (29,505.25) 0.00 (127,621.50) 0.00 0.00 (157,126.75)
10 HYDERABAD Opening Bal. (01.04.2011) 0.00 (1,680,267.46) 1,043,041.94 (70,900,915.25) (118,131,051.17) 26,882,243.61 8,843,295.81 (153,943,652.52)
Andhra Pradesh Receipts (from Govt.) 66,150,874.00 1,122,936,280.00 25,876,423.56 3,129,517,026.44 4,344,480,604.00
Credit-adjustments (rct) 6,200,000.00 8,522,345.00 2,489,000.00 2,501,054.87 19,712,399.87
Payments (to Govt.) (427,859.00) (427,859.00)
Debit-adjustments (pmt) (60,295,353.27) (1,045,945,207.24) (27,022,255.17) (3,107,009,209.00) (4,240,272,024.68)
Apportionment (2,177,771.37) 0.00 (2,177,771.37)
61
R e p o r t
Closing Bal. (31.03.2012) 0.00 2,341,961.17 615,182.94 (56,523,049.52) (58,351,323.41) 28,225,412.00 33,613,245.12 (50,078,571.70)
11 JAIPUR Opening Bal. (01.04.2011) 0.00 (379,821.82) 426.58 (179,196.30) (324,715,743.99) 13,190,104.53 16,626,706.39 (295,457,524.62)
Rajasthan Receipts (from Govt.) 3,363,392,000.00 3,363,392,000.00
Credit-adjustments (rct) 483.68 281,036.87 7,856,119.88 8,137,640.43
Debit-adjustments (pmt) (46.24) (1,971,776,016.87) (701,735.46) (1,972,477,798.57)
Payment to other Insurance Companies (1,133,130,806.00)
Apportionment (262,303.17) (262,303.17)
2011 -

Closing Bal. (31.03.2012) 0.00 (642,124.99) 426.58 (178,758.86) (65,949,529.99) 13,190,104.53 23,781,090.81 (29,798,791.92)
12 (A) KOLKATA Opening Bal. (01.04.2011) 4,591,552.36 (9,266,820.73) (757,238.42) (351,296,719.93) (2,234,995.37) 10,551,865.11 22,203.03 (348,390,153.95)
12
West Bengal Receipts (from Govt.) 145,683,165.79 44,444,423.00 6,434,810.04 348,471.17 196,910,870.00
Apportionment (1,018,046.45) 0.00 (1,018,046.45)
Closing Bal. (31.03.2012) 4,975,013.37 (10,284,867.18) (1,059,736.17) (403,061,096.75) (210,925,849.62) 9,450,557.44 33,207.46 (610,872,771.46)
nais govt fund
12 (B) Tripura Opening Bal. (01.04.2011) 209,171.89 (3,543.00) (201,085.19) (33,147.38) 0.00 507.28 0.00 (28,096.40)
Receipts (from Govt.) 16,801.68 4,200.32 21,002.00
Debit-adjustments (pmt) (30,677.19) (25,059.63) (3,780.37) (59,517.19)
Closing Bal. (31.03.2012) 226,640.76 (4,336.45) (231,762.38) (41,405.33) 0.00 927.23 0.00 (49,936.17)
12 (C) Sikkim Opening Bal. (01.04.2011) 180,932.30 91,221.48 37,768.10 28,330.64 0.00 8,765.78 0.00 347,018.30
Agriculture

Debit-adjustments (pmt) (4,687.75) (5,313.92) (43.56) (10,045.23)
62
Closing Bal. (31.03.2012) 196,042.77 91,053.22 33,080.35 23,016.72 0.00 8,722.22 0.00 351,915.28
Insurance
13 LUCKNOW Opening Bal. (01.04.2011) 0.00 (3,421,337.17) (313,508.46) (2,192,411.54) (37,009,970.44) (836,928.10) 5,185,675.16 (38,588,480.55)
Uttar Pradesh Receipts (from Govt.) 959,223.24 162,517.14 26,741,874.29 81,447,018.35 16,261,867.23 123,884,496.75 249,456,997.00
Company
Apportionment (1,101,392.00) 0.00 (1,101,392.00)

Closing Bal. (31.03.2012) 0.00 (3,563,505.93) (543,684.70) 3,968,232.34 (2,971,293.74) 6,243,164.99 5,240,142.29 8,373,055.25
of
14 (A) MUMBAI Opening Bal. (01.04.2011) 321,988,395.81 (1,503,786.17) (745,634.60) (31,075,798.59) (5,898,726.46) 5,036,042.63 3,076,135.13 290,876,627.74
Maharashtra Receipts (from Govt.) 2,555,486.00 1,503,787.00 1,333,312.00 363,968,043.00 309,167,572.00 13,585,177.00 692,113,377.00
Credit-adjustments (rct) 255.04 5,534,771.00 5,535,026.04
Credit-adjustments (others) 136.92 136.92
India
Debit-adjustments (pmt) (954,769.19) (319,523,680.87) (304,099,770.70) (5,573,582.71) (674,458.82) (630,826,262.29)

Debit-adjustments (others) 0.00 0.00
Apportionment (1,344,606.56) 0.00 (1,344,606.56)
Closing Bal. (31.03.2012) 351,434,568.33 (1,344,605.73) (367,091.79) 13,368,563.54 (830,788.24) 13,047,891.96 7,936,447.31 383,244,985.38
Limited
nais govt fund
14 (B) Goa Opening Bal. (01.04.2011) 557,626.58 98,335.89 25,778.97 128,777.13 25,733.34 44,736.49 431,715.72 1,312,704.11
Debit-adjustments (pmt) (4,687.75) (3,158.63) (265.92) (8,112.30)
Debit-adjustments (others) (136.92) (136.92)
A n n u a l

Apportionment (31.15) 0.00 (31.15)
Closing Bal. (31.03.2012) 604,196.46 98,304.74 21,091.22 125,618.50 25,596.42 44,470.57 431,715.72 1,350,993.63
15 PATNA Opening Bal. (01.04.2011) 4,921,978.90 (7,318,106.89) (1,257,211.60) (35,324,482.66) (524,281,013.50) 0.00 664,861,286.20 101,602,450.45
Bihar Receipts (from Govt.) 1,229,022.60 35,901,888.53 1,332,098,677.58 12,732,508.38 1,792,697,762.25 3,174,659,859.34
Debit-adjustments (pmt) (251,990.13) (8,987,887.80) (1,418,497,292.70) (6,300,090.52) (2,393,293,608.59) (3,827,330,869.74)
Apportionment (444,268.69) (444,268.69)
Closing Bal. (31.03.2012) 5,333,035.30 (7,762,375.58) (280,179.13) (8,410,481.93) (942,779,770.38) 6,432,417.86 64,265,439.86 (883,201,914.00)
63
R e p o r t
16 RAIPUR Opening Bal. (01.04.2011) 34,661,226.65 (1,078,689.62) (12,825.00) (6,314,650.44) (545,779.37) 0.00 0.00 26,709,282.22
Chhattisgarh Receipts (from Govt.) 14,342,387.28 1,259,104.00 8,132,612.72 23,734,104.00
Debit-adjustments (others) (285.75) (285.75)
Payment to other Insurance Companies (717,700.50)
Apportionment (517,653.73) 0.00 (517,653.73)
2011 -

Closing Bal. (31.03.2012) 37,555,940.23 (1,596,343.35) (119,126.63) (211,305.51) (70,828,716.75) 8,132,612.72 0.00 (27,066,939.30)
0.00
17 RANCHI Opening Bal. (01.04.2011) 37,079,315.91 (1,079,356.56) (48,679.01) 7,311,408.16 (8,221,164.28) 0.00 221,772,748.27 256,814,272.49
12
Jharkhand Receipts (from Govt.) 8,180,007.00 390,054,000.00 398,234,007.00

Credit-adjustments (others) 1,079,356.57 80,035.00 3,374,814.63 4,534,206.20
Payments (to Govt.) (110,460,268.55) (110,460,268.55)
Payment to other Insurance Companies (8,669.00)
Apportionment (248,663.32) (248,663.32)
Income Share on Corpus Fund 3,096,658.99 3,096,658.99
Closing Bal. (31.03.2012) 40,175,974.90 (248,663.31) (89,901.39) 1,200,816.14 (28,463,139.60) 0.00 5.70 12,575,092.45
nais govt fund
18 THIRU’PURAM Opening Bal. (01.04.2011) 16,488,096.80 3,455,476.67 990,253.25 (650,905.11) (5,540,968.25) 0.00 6,278,386.74 21,020,340.11
Kerala Receipts (from Govt.) 6,049,282.00 6,049,282.00
Credit-adjustments (others) 971,110.00 186,601.46 1,157,711.46
Debit-adjustments (pmt) (516,809.19) (758,660.42) (8,569,914.50) (186,601.46) (1,906,945.88) (11,938,931.45)
Debit-adjustments (others) (186,601.46) (186,601.46)
Apportionment (159,049.16) 0.00 (159,049.16)
Closing Bal. (31.03.2012) 17,865,091.28 3,296,427.51 473,444.06 (1,409,565.53) (7,090,490.75) 0.00 4,184,839.40 17,319,745.97
Others 302,379,403.52
Agriculture
GRAND TOTAL Opening Bal. (01.04.2011) 1,032,721,552.86 (75,964,065.73) 8,492,956.46 (899,562,987.08) (623,941,693.20) 89,360,896.21 5,903,391,781.30 5,434,498,440.84
Receipts (from Govt.) 502,987,003.00 7,643,979.13 4,378,945.74 1,150,802,516.60 14,294,027,199.77 158,594,555.80 11,851,036,040.61 27,969,470,240.65
Interest income on Govt. Funds 0.00 0.00 0.00 0.00 0.00 0.00 162,030,621.28 162,030,621.28
Credit-adjustments (rct) 0.00 6,200,000.00 0.00 9,299,737.72 294,201.30 2,614,694.22 69,293,050.73 87,701,683.97
Credit-adjustments (others) 8,895,438.56 42,907,548.45 80,035.00 214,795,082.36 1,703,447.01 110,644,452.54 4,448,936.53 381,144,968.32
Payments (to Govt.) 0.00 0.00 (427,859.00) 0.00 (47,122,000.00) 0.00 (110,547,065.36) (158,096,924.36)
Debit-adjustments (pmt) 0.00 0.00 (10,262,169.65) (1,208,362,002.14) (10,890,745,761.83) (204,475,855.56) (17,168,525,866.10) (29,482,371,655.28)
Debit-adjustments (others) (10,306,672.16) 0.00 (229,505.25) (6,147,321.93) (302,734,618.94) (686,303.73) (364,444,272.93) (684,345,697.92)
Payment to other Insurance Companies 0.00 0.00 0.00 0.00 (3,962,053,634.15) 0.00 0.00 (2,463,017,504.50)
Apportionment 0.00 (30,364,639.56) 0.00 0.00 0.00 0.00 0.00 (30,364,639.56)
Income Share on Corpus Fund 86,247,181.30 0.00 0.00 0.00 0.00 0.00 0.00 86,247,181.30
64
Insurance
Closing Bal. (31.03.2012) 1,620,544,503.56 (49,577,177.71) 2,032,403.30 (739,174,974.47) (1,530,572,860.04) 156,052,439.48 346,683,226.06 108,366,963.71
Company
of
India
Limited
A n n u a l R e p o r t 2011 - 12
ANNEXURE-5
SUMMARY OF FINANCIAL STATEMENTS

in ‘000’
S N PARTICULARS 2011-12 2010-11 2009-10 2008-09 2007-08
OPERATING RESULTS
1 Gross Premium Written 25768510 19500541 15203969 8334426 8351084
2 Net Premium Income Earned 13202136 12759164 10225168 7426091 6361425
3 Income from Investments (Net) 1488722 1082388 1095853 1028616 960699
4 Profit on Exchange Fluctuation 0 0 0 0 0
5 Total Income 14690858 13841552 11321021 8454707 7322124
6 Commissions 2461463 1268678 442967 89428 219369
7 Brokerage 0 0 0 0 0
8 Operating Expenses (411821) (405959) (202399) (158839) (141240)
9 Claims Incurred (Net) (10257502) (9501464) (11891903) (5296233) (5295375)
10 Operating Profit/Loss 6482998 5202806 (330313) 3089063 2104878
NON-OPERATING RESULTS
11 Total Income under Shareholder’s 962448 526617 694487 470369 388728
account (Net)
12 Profit before Tax 7445446 5729423 364174 3559431 2493606
13 Provision for Tax & (2424159) (1926465) (30150) (1233348) (880543)
Deferred Tax Liability
14 Profit after Tax 5021287 3802958 334024 2326083 1613063
MISCELLANEOUS
15 POLICYHOLDERS’ ACCOUNT
Total Funds 18285876 17980874 18924592 11949633 11190614
Total Investments 17213977 16331990 16868589 11621770 10330848
Yield on Investments 8.98 7.85 9.13 9.32 10.33
16 SHAREHOLDERS’ ACCOUNT
Total Funds *13959013 11228283 7657770 7323746 5231653
Total Investments 15023513 10198610 6825815 7122803 4829709
Yield on Investments 8.98 7.85 9.13 9.32 10.33
17 Paid up Equity Captial 2000000 2000000 2000000 2000000 2000000
18 Net Worth *13959013 11228283 7657770 7323746 5231653
19 Total Assets 38023578 37124989 28649553 21638226 18125516
20 Yield on Total Investments 8.98 7.85 9.13 9.32 10.33
21 Earnings per Share ( ) 25.11 19.01 1.67 11.63 8.07
22 Book Value per share ( ) 79.80 56.14 38.29 36.62 26.16
23 Total Dividend 250000 200000 NIL 200000 200000
24 Dividend per Share ( ) 1.25 1 NIL 1 1
*Does not include 200 crore adhoc payment to Government of India.
65
ANNEXURE-6
KEY ACCOUNTING RATIOS

S N PARTICULARS 2011-12 2010-11
Percentage/Ratio Percentage/Ratio
1 Gross Premium Growth Rate 32.14% 28.26%
2 Gross Premium to Shareholders’ Fund *184.60 173.09
3 Growth Rate of Shareholders’ Fund *24.32% 45.95%
4 Net Retention Ratio 52.67 65.81
5 Net Commission Ratio (18.14) (9.89)
6 Expenses of Management to Gross Premium Ratio 2.54 2.78
7 Combined Ratio 82.51 75.89
8 Technical Reserves to Net Premium Ratio 134.74 140.11
9 Underwriting Balance Ratio 36.80 32.11
10 Operating Profit Ratio 54.78 46.34
11 Liquid Assets to Liabilities Ratio 80.07 95.87
12 Net Earnings Ratio 37.00 29.63
13 Return on Net Worth *35.97 33.75
14 Available Solvency Margin Ratio to Required Solvency Margin Ratio *3.18 3.71
15 NPA Ratio 0.00 0.00
Gross NPA Ratio 0.00 0.00
Net NPA Ratio 0.00 0.00
*Does not include 200 crore adhoc payment to Government of India.
66
A n n u a l R e p o r t 2011 - 12
ANNEXURE - 4
CASH FLOW STATEMENT

(As per Direct Method )
SN PARTICULARS Current Year Previous Year
01.04.11 to 31.03.12 01.04.10 to 31.03.11
( ‘000) ( ‘000)
A) CASH FLOW FROM OPERATING ACTIVITIES
1 Cash receipts from Premium income 25751050 25751050 19533589 19533589
Less:
2 Cash paid for Claims payment 14355904 10519268
3 Cash paid for Reinsurance Premium 5701508 5398824
(less Commission net of
Reinsurance & Re-insurance claims))
4 Cash paid for expenses 269370 20326782 376390 16294482
Cash generated from Operations 5424268 3239107
5 Miscellaneous receipts 45964 6451
6 Income Tax paid/refunds (1581229) (1663023)
7 Cash Flow before extraordinary items 3889003 1582535
8 (Increase) / Decrease in Loans given 550 0
Net Cash from Operating Activities (A) 3889553 1582535
B) CASH FLOW FROM INVESTING ACTIVITIES
9 Purchase of Fixed Assets (15470) (26069)
10 Proceeds from sale of Fixed Assets 202 0
11 Investments made (5723843) (2809539)
12 Interest Income 2287506 1836213
13 Expenses incurred (4117) (1376)
14 (Increase) / Decrease in Funds Advanced (Sch 12) (771839) (396470)
Net Cash used in Investing Activities (B) (4227561) (1397241)
C) CASH FLOW FROM FINANCING ACTIVITIES
15 Issue of Share Capital 0 0
16 Increase in Borrowings 0 0
17 Dividend and dividend distibution tax paid (232445) 0
18 Increase / (Decrease) in Liabilities (Sch 13 & 14) (4703312) 5191192
Net Cash from Financing Activities(C) (4935757) 5191192
Net increase in Cash & Cash equivalents: (5273765) 5376486
19 Cash & Cash equivalents at the end of the period 201250 5475015
20 Cash & Cash equivalents at the beginning of the period 5475015 98529
Net increase in Cash & Cash equivalents (5273765) 5376486
Kanika Sharma Shandil) (K. K. Gupta) (M. K. Poddar)

DIN 00191219 DIN 00760048 DIN 02502200
Partner Partner
M.No. 087010 M.No. 016416
Place: New Delhi
Date: 14.05.2012
67
68

AnnualReport 2011-12

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AnnualReport 2011-12

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A n n u a l R e p o r t 2011 - 12

Senior Management Team 4

Team of Regional Managers 5

Profit & Loss Account 30

Schedules to the Accounts 33

Significant Accounting Policies and Notes Forming Part of Accounts 42

Summary of Financial Statements 64

Summary of Accounting Ratios 65

Cash Flow Statement 66

DIRECTORS AND MANAGEMENT

Deputy General Managers

SENIOR MANAGEMENT TEAM

TEAM OF REGIONAL MANAGERS

50439 crore in the financial year 2011-12.

HUMAN RESOURCE MANAGEMENT

for and on behalf of the

M/s S. C. Vasudeva & Co., M/s. K. K. Ghei & Co.,

inconsistency with the financial statements.

Abhinav Khosla D. S. Sobti

Place: New Delhi

fluctuations do not have any impact on the yield.

M. Parshad Executive/ Independent Nil

given here in below:-

INFORMATION PLACED BEFORE THE BOARD OF DIRECTORS

S. K. Chanana LOA Yes LOA LOA

S. K. Mitra LOA LOA Yes LOA

INFORMATION TECHNOLOGY COMMITTEE

“Certification for Compliance of the Corporate Governance Guidelines”

(Kanika Sharma Shandil) (K. K. Gupta) (M. K. Poddar)

(K.N. Bhandari) (S. K. Mitra) (Milind A. Kharat)

REGISTRATION NO. 126

REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2012

TOTAL (A) 14703799 14059193

1 Claims Incurred (Net) 2 10257502 9501464

TOTAL (B) 8220801 8856386

Operating Profit from Crop Insurance Business C=(A-B) 6482998 5202806

(Kanika Sharma Shandil) (K.K. Gupta) (M.K.Poddar)

(K.N. Bhandari) (S.K. Mitra) (Milind A.Kharat)

(Abhinav Khosla) (D.S.Sobti)

Place: New Delhi

REGISTRATION NO. 126

2. INCOME FROM INVESTMENTS

TOTAL (A) 7466685 5735310

4. PROVISIONS (other than Taxation)

PROVISION FOR TAXATION

PROFIT AFTER TAX & APPROPRIATIONS 0 0

Add: Balance of Profit/(Loss) b/f from last year 0 0

Basic Earning per Share 25.11 19.01

(Kanika Sharma Shandil) (K.K. Gupta) (M.K.Poddar)

(K.N. Bhandari) (S.K. Mitra) (Milind A.Kharat)

(Abhinav Khosla) (D.S.Sobti)

Place: New Delhi

REGISTRATION NO. 126

(Kanika Sharma Shandil) (K.K. Gupta) (M.K.Poddar)

(K.N. Bhandari) (S.K. Mitra) (Milind A.Kharat)

(Abhinav Khosla) (D.S.Sobti)

Place: New Delhi

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

SCHEDULE 4 : OPERATING EXPENSES RELATED TO INSURANCE BUSINESS

SN PARTICULARS Current Year Previous year

SCHEDULE 5 : SHARE CAPITAL

SN PARTICULARS Current Year Previous year

SCHEDULE 5A : PATTERN OF SHAREHOLDING