MIRA
INFORM REPORT
|
Report Date : |
21.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
TATA AIG LIFE INSURANCE COMPANY LIMITED |
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Registered
Office : |
Delphi, B Wing, 2nd Floor, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
23.08.2000 |
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Com. Reg. No.: |
128403 |
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CIN No.: [Company Identification
No.] |
U66010MH2000PLC128403 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT07312E |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business
: |
Offering Life and General Insurance. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 12425552 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a joint venture between Tata Sons and AIA Group Limited. It
is an established company having moderate track. There appears huge
accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management non co-operative [ Name not disclosed]
LOCATIONS
|
Registered Office : |
Delphi, B Wing, 2nd Floor, |
|
Tel. No.: |
91-22-66516061 |
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Fax No.: |
91-22-66550751 |
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E-Mail : |
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DIRECTORS
AS ON 16.09.2010
|
Name : |
Mr. Farrokh K. Kavarana |
|
Designation : |
Chairman |
|
Address : |
CCI Chambers, 5th Floor, dinshaw |
|
Date of Birth/Age : |
17.03.1944 |
|
Date of Appointment : |
31.01.2001 |
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|
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|
Name : |
Mr. Ishaat R. Hussain |
|
Designation : |
Director |
|
Address : |
No. 222, 22nd Floor, ‘B’ Wing, NCPA Residental Complex, Sir
Dorab Tata Road, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Date of Birth/Age : |
02.09.1947 |
|
Date of Appointment : |
23.08.2000 |
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|
Name : |
Mr. Sunil B. Mehta |
|
Designation : |
Director |
|
Address : |
Flat No. 6, 3rd Floor, |
|
Date of Birth/Age : |
22.08.1957 |
|
Date of Appointment : |
03.09.2002 |
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|
Name : |
Dr. Ashok S. Ganguly |
|
Designation : |
Director |
|
Address : |
N6, Pemino, |
|
Date of Birth/Age : |
28.07.1935 |
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Date of Appointment : |
24.12.2001 |
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|
Name : |
Mr. Tak Chi Cheng |
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Designation : |
Director |
|
Address : |
Flat No.7b, |
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Date of Birth/Age : |
01.04.1965 |
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Date of Appointment : |
09.02.2007 |
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|
Name : |
Mr. Jaanki Ballabh |
|
Designation : |
Director |
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Address : |
Flat no. 605, versova, vinayak, CHS, Near Versova Telephone Exchange,
versova Andheri (West), Mumbai – 400053, |
|
Date of Birth/Age : |
24.10.1942 |
|
Date of Appointment : |
20.04.2007 |
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|
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|
Name : |
Mr. Suresh Mahalingam |
|
Designation : |
Managing Director |
|
Address : |
8A, Godrej Waldorf, Opposite Millat Nagar, near Samarth Ashish,
Andheri (West), Mumbai – 400053, |
|
Date of Birth/Age : |
17.02.1962 |
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Date of Appointment : |
01.06.2009 |
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|
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|
Name : |
Mr. Homi Rustam Khusrokhan |
|
Designation : |
Additional Director |
|
Address : |
No. 10, Mayfair house, 4th Floor, Little Gibbs Road, Malabar
hill, Mumbai – 400006, |
|
Date of Birth/Age : |
15.12.1943 |
|
Date of Appointment : |
14.10.2009 |
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|
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|
Name : |
Mr. Kishor Anant chaukar |
|
Designation : |
Additional Director |
|
Address : |
72, A, NCPA Apartment, 7th Floor, Dorabji tata Road,
Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Date of Birth/Age : |
01.08.1947 |
|
Date of Appointment : |
14.10.2009 |
|
|
|
|
Name : |
Mr. Richard Bender Lewis |
|
Designation : |
Additional Director |
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Address : |
Flat 21A, BLK 3, |
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Date of Birth/Age : |
12.04.1951 |
|
Date of Appointment : |
08.07.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 16.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Tata sons Limited, |
|
1421169400 |
|
Tata Sons Limited,Jt. Ishaar Hussain, |
|
100 |
|
Tata Sons Limited, Jt. E. N. Kapacha Maharashtra |
|
100 |
|
Tata Sons Limited, Jt. F. N. Subedar Maharashtra |
|
100 |
|
Tata Sons Limited, Jt. Manoj Kumar C.V. Maharashtra |
|
100 |
|
American International Assurance Company (Bermuda ) Limited, |
|
499330000 |
|
Tata Sons Limited, Jt. Ferrokh Kavarana, |
|
100 |
|
Tata sons Limited, Jt. Kersi Bhagat, |
|
100 |
|
|
|
|
|
Total |
|
1920500000 |
AS ON 16.09.2010
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
26.00 |
|
Bodies corporate |
74.00 |
|
Directors or relatives of Directors |
0.00 |
|
Other top fifty shareholders |
0.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Offering Life and General Insurance. |
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|
GENERAL INFORMATION
|
No. of Employees : |
Not divulged by the management |
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Bankers : |
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Facilities : |
-- |
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|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Kalayaniwalla and Mistry Chartered Accountant |
|
Address : |
Kalapataru Heritage, 127, mahatma |
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|
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Name : |
N. M. Raiji and Company Chartered Accountant |
|
Address : |
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Joint Venture : |
Tata Sons And AIA Group Limited (AIA) |
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Holding Company : |
Tata Sons Limited U99999MH1917PLC00478 |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000000 |
Equity Shares |
Rs.10/- each |
Rs.25000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1920500000 |
Equity Shares |
Rs.10/- each |
Rs.19205.000 Millions |
|
|
|
|
|
Note : Share Capital amounting to Rs. 14211.700
millions (previous year Rs. 11244.300 millions) is held by Tata Sons Limited,
the holding company, including Joint holding with its nominees.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
19205.000 |
15195.000 |
8700.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(16098.612) |
(12098.489) |
(6446.108) |
|
|
NETWORTH |
3106.388 |
3096.511 |
2253.891 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
Policyholders Fund |
90863.500 |
46675.832 |
35945.059 |
|
|
|
|
|
|
|
|
TOTAL |
93969.888 |
49772.343 |
38198.951 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
917.758 |
1416.784 |
657.671 |
|
|
Capital work-in-progress |
165.033 |
141.106 |
320.820 |
|
|
|
|
|
|
|
|
INVESTMENT |
94555.127 |
49105.433 |
38583.408 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
0.000
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
1356.909
|
1955.019 |
749.344 |
|
|
Other Current Assets |
1729.911
|
1749.321 |
1407.826 |
|
|
Loans & Advances |
780.364
|
596.710 |
455.389 |
|
Total
Current Assets |
3867.184
|
4301.050 |
2612.559 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2390.002
|
2297.651 |
2070.637 |
|
|
Other Current Liabilities |
3070.443
|
2799.469 |
1818.380 |
|
|
Provisions |
74.769
|
94.910 |
86.490 |
|
Total
Current Liabilities |
5535.214
|
5192.030 |
3974.507 |
|
|
Net Current Assets |
(1668.030)
|
(890.980) |
(1362.948) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
93969.888 |
49772.343 |
38198.951 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
34815.564 |
27345.586 |
23.168 |
|
|
|
Other Income |
25992.300 |
0.000 |
213.353 |
|
|
|
TOTAL (A) |
60807.864 |
27345.586 |
236.521 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Salaries, wages and bonus |
4375.109 |
4171.200 |
3.660 |
|
|
|
Managerial remuneration |
21.888 |
15.000 |
0.000 |
|
|
|
Payment to auditors |
3.590 |
3.597 |
0.000 |
|
|
|
Other Expenditure |
59533.184 |
28063.668 |
3625.899 |
|
|
|
TOTAL (B) |
63933.771 |
32253.465 |
3629.559 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(3125.907) |
(4907.879) |
(3393.038) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
70.032 |
98.272 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(3195.939) |
(5006.151) |
(3393.038) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
804.184 |
646.230 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(4000.123) |
(5652.381) |
(3393.038) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(4000.123) |
(5652.381) |
(3393.038) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(16098.612) |
(12098.489) |
(3056.734) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(12098.489) |
(6446.108) |
(6446.108) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.48) |
(4.65) |
(5.55) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(6.57)
|
(20.67) |
(1434.56) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(11.48)
|
(20.67) |
(14645.36) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(83.59)
|
(98.08) |
(103.75) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.28)
|
(1.82) |
(1.50) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.78
|
1.67 |
1.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.69
|
0.82 |
0.65 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details :
(Rs. In Millions )
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors |
2390.002
|
2297.651 |
2070.637 |
|
|
|
|
|
Note :
The registered office address of the company has been shifted from
Fixed Assets :
- Goodwill
- Intangible –
Computer Software
- Leasehold
Improvements
- Buildings
- Furniture,
Fixtures and Fittings
- Information
Technology Equipments
- Vehicles
- Office
Equipments
Industry Overview
In 2009-10, the life insurance industry grew by 25% in terms of new business premium income after witnessing a 6.3%contraction in 2008-09. Private players' rebounded in 2009-10 with a 12% year on year growth after witnessing a contraction of 1% in 2008-09. (Source: Insurance Regulatory and Development Authority, www.irdaindia.org). The growth in 2009-10 was driven by several macro-economic factors such as recovery of the Indian economy, upswing in the stock market and positive customer sentiment in the life insurance industry relative to the previous year. The Indian economy is expected to grow between 7.2% and 7.5% in the year ending March 2010versus growth rate of 6.7%in the prior year. Capital market indices grew by ~ 30%during the year. Tata AIG Life outgrew private players with new business premium growth of 16% in 2009-10. The Company's new business premium market share amongst private players increased to 3.4%in 2009-10compared to 3.3% in 2008-09. Total Premium grew by 27%.
The longer term outlook for the industry is largely positive supported by a growing economy, higher awareness, rising savings and favourable demographics. Shorter / near term outlook is uncertain on account of significant changes underway in financial services industry including the life insurance sector. The focus in the coming years will intensify towards driving productivity improvements, capital efficiency and profitability. Expense management is going to be a key focus area and productivity and operating efficiency improvements are expected in conjunction with calibrated growth.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 45.58 |
|
|
1 |
Rs. 72.73 |
|
Euro |
1 |
Rs. 61.45 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
MO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.