53 Ìããèâ ÌãããäÓãÇ㊠ãäÀ¹ããñ›Ã 53 Annual Report

under the said package up to 31.03.2011. Additional claims of banks thereunder are inprocess.Board of DirectorsExport Credit Guarantee Corporation of India Limited is a Government company fullyowned by the Government of India.The general superintendence, direction andmanagement of the affairs and business of the company are vested in the Board ofDirectors presided over by the Chairman‐cum‐Managing Director. All the directors onthe Board other than the Chairman‐cum‐Managing Director are non‐executive part‐timeDirectors. All appointments to the Board, including that of the Chairman‐cum‐ManagingDirector are by the Central Government.During the period after the last report of the Directors to the Shareholders in July 2010,three part‐time Directors on the Board, namely, Shri A. Sakthivel, President FIEO, Shri AV Muralidharan, Chairman‐cum‐Managing Director and Shri Anand Sinha, ExecutiveDirector, Reserve Bank of India vacated their respective positions as full/ part‐timeDirectors on the Board of your Company. The Board of Directors places on record itsdeep appreciation and gratitude to each one of them for their invaluable contributionsand able guidance during their tenures as members of the Board of Directors of yourcompany.Four part‐time Directors, namely, Shri T C A Ranganathan, Chairman and ManagingDirector, Export Import Bank of India, Shri K R Kamath, Chairman cum ManagingDirector, Punjab National Bank, Shri Hari S Bhartia, Co‐Chairman & Managing Director,Jubilant Life Sciences Limited, Shri Vasant Mehta, Managing Partner, M/s V.Rameshchandra & Co., Shri Ramu S Deora, President, Federation of Indian ExportOrganisations and Shri H R Khan, Executive Director, Reserve Bank of India wereinducted to the Board of Directors vice Shri T C Venkat Subramanian, Shri A Sakthiveland Shri Anand Sinha respectively. On retirement of Shri A V Muralidharan, CMD onattaining his superannuation on 28.02.2011 Shri Arvind Mehta, Joint Secretary, Ministry

of Commerce & Industry, Govt. of India was given additional charge of CMD of thecompany w.e.f. 1st March, 2011. The Board extends a hearty welcome to each of them.As on the date of this report, five positions of part‐time Directors on the Board continueto remain vacant. Your Company is relentlessly pursuing the matter of filling up thesevacancies with the Government of India.Memorandum of Understanding (MOU) with Government of IndiaThough the global economic crisis impacted the financial position of your companywherein the inflow and value of claims paid increased considerably for the secondconsecutive year, the performance of your company had improved during the yearunder review under the MOU. Based on the results the target achievement of yourcompany as per MOU is expected to be rated as “Very Good” for the year 2010‐11.Presidential DirectivesDuring the year under review the Company did not receive any Presidential Directive inpursuance of Article 86 of the Articles of Association of the Corporation.Placing of Annual Reports before the ParliamentThe Ministry of Commerce and Industry has confirmed that the Annual Report of theCompany for the year 2009‐10 alongwith the Directors’ Report to the Shareholders wereplaced before both the houses of Parliament, the Lok Sabha and Rajya Sabha on 13thDecember 2010 and 9th March 2011 respectively in compliance with the requirementsunder section 619A read with section 619B of the Companies Act, 1956.Particulars of EmployeesThere were no personnel in the service of the company for the whole year or for anypart of the year the particulars in respect of whom attracted the provisions undersection 217(2A) of the Companies Act, 1956 read with the Companies (Particulars ofEmployees) Rules, 1975.

Grievance RedressalYour company has established a Grievance Cell at the head office headed by the GeneralManager. Grievance Cell redresses grievances of its customers within shortest possibletime. Head office Claims Committee also reviews the representations made bycustomers on rejection of their claims to avoid litigations.The proposal to set up Policyholders Protection Committee as per IRDA CorporateGovernance norms was approved and is in the process of implementation.Thecommittee would take up all the grievances of the customers. The approved proposalstrives to ensure that the grievances are attended to promptly and decided in a justmanner without any bearing on the earlier decisions on the subject.IRDA further implemented centralized Integrated Grievance Management System(IGMS) which enables the customers to log on to the centralized system and lodge theirgrievance complaint. IRDA system can be logged on not only by the customers but alsothe Insurance Companies. The grievance disposals are to be entered in the centralizedsystem by the companies. This will enable your company to effectively monitor thegrievance disposals and provide transparency in the grievance disposals.During the year under review, your company disposed off 318 grievance applications.Conservation of Energy, Technology AbsorptionThe provisions of section 217(1)(e) of the Companies Act, 1956 read with the Companies(Disclosure of the Particulars in the Report of the Board of Directors) Rules, 1988relating to Conservation of energy or Technology Absorption are not applicable to thecompany being it is not engaged in any manufacturing activity.Foreign Exchange Earnings & outgoForeign exchange earning of the company during the year under review was Rs. 870.81lacs (previous year Rs.934.25 lacs) while foreign exchange outgo during the same period

was Rs.341.18 lacs (previous year Rs. 249.50 lacs) which included Rs.17.37 lacs (previousyear Rs 30.92 lacs) on travel overseas.Auditors’ ReportMessrs. Lakhani & Co., Chartered Accountants and Messrs. M. B. Agrawal & Co.,Chartered Accountants were the Joint Statutory Auditors appointed by the Comptrollerand Auditor General of India to audit the head office accounts and consolidatedaccounts of the company for the year under review. The Auditors retire every year andare eligible for re‐appointment. The Report of the Auditors to Shareholders and ourdetailed explanations and clarifications to the qualifications, reservations, commentsand observations, if any, therein are appended to the audited financial statements.Comments by Comptroller & Auditor General of IndiaIn pursuance of Section 619[4] of the Companies Act, 1956 the Principal Director ofCommercial Audit & Ex‐Officio Member, Audit Board‐1 has, on behalf of the Comptrollerand Auditor General of India, issued a certificate of NIL comments to the company forthe year ended March 31, 2011. A copy of the certificate is appended to the auditedfinancial statements.Corporate GovernanceYour company is committed to adopting the best practices relating to corporategovernance. The company believes that proper corporate governance goes beyondmere compliance requirements. A detailed report on your company’s corporategovernance practices are given separately in this Annual Report.Directors Responsibility StatementPursuant to section 217 (2AA) of the Companies Act, 1956, the Directors subscribe tothe Directors’ Responsibility Statement and confirm that –

(a) The company has, in the preparation of the annual accounts, followed theapplicable accounting standards along with the proper explanations relating tomaterial departures, if any;(b) The Directors had selected such accounting policies and applied themconsistently and made judgements and estimates that are reasonable andprudent so as to give a true and fair view of the state of affairs of the companyas at March 31, 2011 and of the profit of the company for the year ended March31, 2011;(c) The Directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of theCompanies Act, 1956 for safeguarding the assets of the company and preventingand detecting fraud and other irregularities; and that(d) The Directors have prepared the annual accounts of the company on a ‘goingconcern’ basis.AcknowledgementThe Board of Directors places on record its gratitude to the Department of Commerce,Ministry of Commerce & Industry, Government of India for its continued support andguidance to the company and keen interest in the affairs and growth of the company.The Board of Directors also places on record its thanks to the Berne Union fraternity, theexporting community, Reserve Bank of India, Insurance Regulatory & DevelopmentAuthority (IRDA), the Comptroller & Auditor General of India, Reserve Bank of India,Export Import Bank of India, commercial banks, General Insurance Corporation of Indiaand other public sector general insurance companies, financial institutions, ExportPromotion Councils, Commodity Boards, FIEO, FICCI, CII, ASSOCHAM, Chambers ofCommerce and Industry, trade bodies, various other organisations of exporters and themedia for their continued support and cooperation. The Board of Directors greatly

appreciates the assistance and cooperation of the Indian Embassies, High Commissionsand Trade Missions abroad.The Board of Directors also places on record its deep appreciation for the officers andemployees of the company for displaying a high level of commitment, new initiativesand dedication to their work in pursuit of business growth of the Corporation.Place: DelhiDate: 27th July, 2011For and on behalf of the Board of DirectorsArvind MehtaChairman‐cum‐Managing Director

Annexure ‐ IREPRESENTATION OF SCs/ STs/ OBCs IN THE SERVICES OF THECORPORATION'S WORKFORCE AS ON 31.03.2011GroupABCDTotal %Percentage of Total re ‐ IIRepresentaion of Persons with Disabilities in the Servicesof the Corporation as on 31.03.2011No. of Disabled talVH HI OH163011Visually HandicappedHearing HandicappedOrthopaedically Handicapped

1CLASS IGroup (A)CLASS IIGroup (B)CLASS IIIGroup (C)CLASS IVGroup (D)Class ofPostCurrentVacancies000000000010001000000000No. ofSC/ST/OBCvacanciescarriedforward frompreviousyears(in suchcases wheredereservationis 00000000ST19No. ofreservationslapsed aftercarryingforward for 3recruitmentyears (in suchcases wheredereservationis permitted)No.ofreservedvacanciescarriedforward asbacklog tonext year0000000000000000000000000000OBC SC ST OBC SC ST OBC20 21 22 23 24 25 26No. of STcandidatesappointed againstSC reservation &No.of SCcandidatesappointed againstST reservation inthe said year ofcarry forward (insuch cases wheredereservation ispermitted)OBC SC ST OBC SC ST OBC SC ST OBC SC9 10 11 12 13 14 15 16 17818No.ofSC/ST/OBCOut of Col (4) Out of Col (5) candidatesappointedNo. of vacancies reservedNotifiNotifiFilledededFilled SC ST234567BackingVacanciesTotal No of Vacancies(A) Posts filled by Direct RecruitmentAnnexure IIIStatement showing the number of reserved vacancies filled by members of scheduled castes, Scheduled tribes and other backwards class during theyear 01.01.2010 to 31.12.2010

231150CLASS IGroup (A)CLASS IIGroup (B)CLASS IIIGroup (C)CLASS IVGroup (D)Notified051133FilledTotal Number ofVacancies1Class ofPosts00504SC00205STOut of Co (2)No.ofVacancies00506SC00207ST03508SC00209STNo.of SC/STCandidatesOut of Co.(3) promotedReserved forSC/ST004010SC001011ST000012SC000013STNo.of STspromoted againstNo.of SC/STsvacancies reservedvacanciescarried forward for SCs in the thirdyear of carryfrom theprevious years forward and viceversa(B) Posts filled by promotion (01.01.2010 to servationsNo.of vacancieslapsed aftercarried forwardcarrying forward to next yearfor 3 yearsAnnexure IVStatement showing the number of reserved vacancies filled by members of scheduled castes, scheduled tribes and other backward class during the

Management Discussion and AnalysisMacroeconomic Environment OverviewGlobal Economy OutlookThe global economic recovery is broadly on track. However, uncertainty remains withsignificant sovereign and banking sector default risks prevailing in certain parts of Europe,particularly Greece, and the political unrest prevailing in certain African and Arabiancountries like Libya, Sudan and Yemen. Though unemployment rates have begun to fall inUnited States and Germany and risk of double dip recession has receded, yet stagnant realestate markets, possibility of contagion risk from peripheral European countries, drop inconfidence about fiscal sustainability, and rising commodity prices are likely to havenegative impact on the outlook for the year 2011. IMF, in April 2011, has projected theworld real GDP growth to slow down modestly to 4.4 per cent in 2011 from 5 per cent in2010. The key downside risk to global growth relates to the potential threat of oil prices torise further because of supply disruptions.World Output & inflationYear 2010 witnessed revival in economic activity and trade expansion after a depressedlevel of world output in 2009. World GDP grew at a rate of 5.1% in 2010 after a contractionof 0.5% in 2009 caused by financial crisis and global depression. Developed economies grewat a rate of 3.0% in 2010 after falling 3.4% in the previous year, while the rest of the world(including developing economies and the CIS countries) grew 7.4%, up from 2.8% in 2009.GDP grew faster in developing Asia (9.6%) than in other developing regions last year, withIndia and China registering strong growth of 10.4% and 10.3%, respectively (contributingnearly one‐fourth of the incremental world output). South and Central America grew at6.1%, driven by Brazil’s strong 7.5% upturn. Africa had the fastest average rate of GDPgrowth of any region over the last 5 years (4.7% between 2005 and 2010).Global inflation risks have risen significantly in the first quarter of 2011, both in emergingand advanced economies. Inflation in several emerging markets, especially in Asia, is nowrunning above trend. As a result, central banks of several emerging markets significantly

tightened monetary policy. Besides India, these include China, Brazil, Israel, Thailand andKorea.World TradeAccording to WTO, the volume of exports surged at a rate of 14.5% in 2010, fastest onrecord since 1950. Trade returned to the 2008 peak level and normal rates of expansionafter a slump of 12% in 2009. The recovery was facilitated by spread of global supply chainsand the product composition of trade compared to output. The goods that were mostaffected by the downturn (consumer durables, industrial machinery, etc.) have a largershare in world trade than in world GDP. Developed economies recorded export growth ofnearly 13% in 2010, compared to a 16.5% average increase in the rest of the world. China’sexports increased in 2010 by an impressive 28% in volume terms. Asia’s exports of goodswere worth 4.69 trillion (32% of world) in 2010, a 31% increase over 2009. The region’simports totalled 4.50 trillion (30% of world), up 32% from 2009. Asia exhibited the fastestreal export growth of any region in 2010 with a jump of 23.1%, led by China and Japan,whose shipments to the rest of the world each rose roughly 28%. Meanwhile, the UnitedStates and the European Union saw their exports growing more slowly at 15.4% and 11.4%,respectively. Imports of developed economies grew more slowly than exports last year(10.7% compared to 12.9%) while developing economies plus the CIS countries saw theopposite happen.Indian Economy & ExportsShort term objective of India’s Foreign Trade Policy (FTP) 2010‐11 was to arrest and reversethe trend of decline in exports and to provide additional support to those sectors that hadbeen badly hit by the great recession. It used a mix of Policy initiatives includingimprovement in exports of infrastructure & logistics, fiscal incentives, reduction intransaction cost, and diversification of export markets. As a result, India’s exports su

4. Shri K R Kamath, CMD, Punjab National Bank 5. Shri T. C. A. Ranganathan Chairman and Managing Director, Exim Bank 6. Shri Yogesh Lohiya Chairman and Managing Director, GIC of India 7. Shri Ramu Deora, President, Federation of Indian Export Organisation 8. Shri Vasant Mehta, M/s V