HEARTY WELCOME

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• HEARTY WELCOME
• TO PHARMEXCIL MEMBERS
• ECGC Support for
• Indian Exports

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ABOUT US

• Incorporated 30/07/1957
• Ownership Govt. of India
• Primary Objective Export Credit Insurance
• Role Export Promotion
• Capital
• Authorised Rs 1000 Crores
• Paid-up Rs 900 Crores

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About - ECGC

• Registered with IRDA / MOU with GOI
• IS/ISO 90012000 compliant
• iAAA rating ICRA Highest claim paying ability
• Global expertise Member of Berne Union
• Worlds Oldest - Vast Experience Knowledge
• Quicker decisions - WAN E- Connectivity
• Most rationalised premium rates
• Diversified Products
• Cover to 237 countries

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RISK!!
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SAYING

• Anything is possible, said an intellectual,
  and my experience is that the contingencies not
  provided for are those which happen
• TIMES ISSUE DATED 08.07.91

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Analysis of data by an Intl Agency shows that in
Advanced Economies

• EVERY DAY MORE THAN one .

• New business is formed
• Company changes its name
• Directorship changes
• Share ownership changes

• Company changes control
• New sets of Accounts are keyed in
• AND
• More than one Corporation Fails Every day!

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US sub-prime mortgage losses may touch 300
billion OECD
Lehman Brothers, 158 yr Old fourth largest
investment bank went bankrupt
Worlds largest Insurer in trouble
Worlds largest car manufacturer files for
bankruptcy protection
Military takes over in Thailand
India Votes against Iran at IAEA Meet
FDA bans 30 drugs of Ranbaxy
US take military action on Iraq
UN Sanctions on Iran
Terrorism shows its ugly face in Mumbai
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EXPORT INSURANCE

Goods
Receivables
Exchange Risk
Loss or Damage
Payment Risk
Hedging by Authorized Dealers
CREDIT INSURANCE
Marine Insurance
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Policies - Risks Covered

• Commercial Risks
• (Buyer / LC Issuing Bank)
• Insolvency
• Protracted Default
• Contract Repudiation

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Political Risks - Covered

• Inconvertibility
• War, Civil War etc
• Import Restrictions
• Shipment Diversion

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Evaluating a Buyer

• Underwriting risks on a buyer means determination
  of the capacity or willingness of the buyer to
  meet his financial obligations at a future date
• Assess the three Cs
• Character
• Capacity
• Capital

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Evaluating a Buyer - Other Factors

• Opinion of Credit Information Agency
• ECGCs Experience
• Commodity
• Country

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Evaluating a Buyer - Non-Financial Factors

• Age of business and age under present management
• Status
• Branch/Subsidiary of a company domiciled in a
  third country
• Type of Business

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Evaluating a Buyer - Financial Factors

• Net Worth
• Currency ratio
• Bank Borrowings
• Current account Balances
• Sales Turnover
• Payment Record

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Support Options

• Shipments (Comprehensive Risks) Policy
• Exports Turnover Policy
• Consignment Exports Policy
• Exposure Policies
• Software / ITES Policies
• MLT Policies

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Export Stimulus Package

• MSMEs the following commodity exporters Addl.
  5 cover under Policies
• Textiles ( including handicrafts and handlooms),
• Gem Jewellery
• Leather
• Engineering goods
• Carpets
• Project goods
• Auto components
• Chemicals
• Export credit advances to MSME borrowers Addl.
  10 cover for Banks
• Additional cover available for shipments
  /advances made/ granted during the period 1st Jan
  09 to 30th June 09

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Stats
Rs. in Cr.
Year Premium Claims Paid
2006-07 617.66 372.26
2007-08 668.37 420.01
2008-09 744.53 450.62
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Rs. in Crores
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Claims Experience Since 1957 to 06-07
Rs. in Crores
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visit us at www.ecgc.incontact us at
chennai_at_ecgc.inTel 28491026-33
THANK YOU..