|
Report Date : |
29.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED (w.e.f 06.07.2004) |
|
|
|
|
Formerly Known
As : |
OM KOTAK MAHINDRA LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
4th Floor, Vinaya Bhavya Complex, 159A, CST Road, Kalina,
Santacruz (East), Mumbai – 400098, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
31.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128503 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.5102.902 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66030MH2000PLC128503 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMO02128A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACO3983B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of Life Insurance and Annuity. |
|
|
|
|
No. of Employees
: |
Information
declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 24500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established and reputed company having satisfactory
track record. The company has been successful in wipping off the accumulated
losses of the previous year. The company is progressing well. Directors are
reported to be experienced and respectable businessmen. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management non co-operative
LOCATIONS
|
Registered Office : |
4th Floor, Vinaya Bhavya Complex, 159A, |
|
Tel. No.: |
91-22-66215999/65993626 |
|
Fax No.: |
91-22-66215757 / 66215858 /66726254 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Back Office : |
Kotak Infinity, Building No. 21, |
|
Toll Free No.: |
1800 209 8800 |
|
E-Mail : |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Uday Suresh Kotak |
|
Designation : |
Director |
|
Address : |
62, NCPA Apartment, Nariman Point, Mumbai – 400021, |
|
Date of Birth/Age : |
15.03.1959 |
|
Date of Appointment : |
31.08.2000 |
|
DIN No.: |
00007467 |
|
|
|
|
Name : |
Mr. Shailesh Devchand |
|
Designation : |
Nominee Director |
|
Address : |
290, |
|
Date of Birth/Age : |
15.02.1972 |
|
Date of Appointment : |
29.07.2011 |
|
DIN No.: |
03456041 |
|
|
|
|
Name : |
Mr. Guarang Balkrishna Shah |
|
Designation : |
Director |
|
Address : |
1502, Crescent Heights ,Foregett Street, Opposite Bhatia Hospital,
Mumbai – 400036, Maharashtra, India |
|
Date of Birth/Age : |
25.10.1961 |
|
Date of Appointment : |
02.08.2010 |
|
DIN No.: |
00016660 |
|
|
|
|
Name : |
Mr. Shivaji Salil Kumar Dam |
|
Designation : |
Director |
|
Address : |
Eastern Suburb Co-operative Housing Society Limited, Bungalow No. 12,
Gulab Park, Next to Basant Theatre, Chembur, Mumbai – 400074, Maharashtra,
India |
|
Date of Birth/Age : |
08.02.1957 |
|
Date of Appointment : |
31.08.2000 |
|
DIN No.: |
00032568 |
|
|
|
|
Name : |
Mr. Dipak Gupta |
|
Designation : |
Nominee Director |
|
Address : |
Flat No. 32, A – Wing, Tanna Residency, 392, Veer Savarkar Marg,
Opposite Siddhivinayak Temple, Mumbai – 400025, Maharashtra, India |
|
Date of Birth/Age : |
13.02.1961 |
|
Date of Appointment : |
31.08.2000 |
|
DIN No.: |
00004771 |
|
|
|
|
Name : |
Mrs. Shobhasingh Rajaramsingh Thakur |
|
Designation : |
Director |
|
Address : |
1161, Abdul Court, Flat No. 20, 7th Floor, Suryavanshi Marg,
Dadar, Mumbai – 400028, Maharashtra, India |
|
Date of Birth/Age : |
26.08.1929 |
|
Date of Appointment : |
17.08.2001 |
|
DIN No.: |
00001466 |
|
|
|
|
Name : |
Mr. Vineet Nayyar |
|
Designation : |
Director |
|
Address : |
5A, Friend Colony West, |
|
Date of Birth/Age : |
30.11.1938 |
|
Date of Appointment : |
17.08.2001 |
|
DIN No.: |
00018243 |
|
|
|
|
Name : |
Mr. Ralph Tendai Mupita |
|
Designation : |
Director |
|
Address : |
105, |
|
Date of Birth/Age : |
11.04.1972 |
|
Date of Appointment : |
01.05.2011 |
|
DIN No.: |
03533039 |
|
|
|
|
Name : |
Mr. Prakash Krishnaji Apte |
|
Designation : |
Director |
|
Address : |
803, Wing B, |
|
Date of Birth/Age : |
06.05.1954 |
|
Date of Appointment : |
29.07.2011 |
|
DIN No.: |
00196106 |
|
|
|
|
Name : |
Mr. Murlidhar Gangadharan |
|
Designation : |
Managing Director |
|
Address : |
12, Gayathri, 160, |
|
Date of Birth/Age : |
27.07.1960 |
|
Date of Appointment : |
22.06.2011 |
|
DIN No.: |
03601196 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Kotak Mahindra Bank Limited, |
|
260247974 |
|
Old Mutual Plc. |
|
132675452 |
|
Uday Kotak Jointly with Kotak Mahindra Bank Limited, |
|
10 |
|
C. Jayaram Jointly with Kotak Mahindra Bank Limited, |
|
10 |
|
Dipak Gupta Jointly with Kotak Mahindra Bank Limited |
|
10 |
|
K.V.S. Manian Jointly with Kotak Mahindra Bank Limited |
|
10 |
|
Jasmin Bhatt Jointly with Kotak Mahindra Bank Limited |
|
10 |
|
Kotak Mahindra Prime Limited, |
|
54000000 |
|
Kotak Mahindra Capital Company Limited, |
|
63366753 |
|
T.V. Raghunath Jointly with Kotak Mahindra Bank Limited, |
|
10 |
|
Gaurang Shah (Jointly With Kotak Mahindra Bank Limited) |
|
10 |
|
|
|
|
|
TOTAL |
|
510290249 |
Equity Share Break up (Percentage of Total Equity)
As on 30.09.2011
|
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 |
23.00 |
|
Nationalized
or other banks |
51.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of Life Insurance and Annuity. |
GENERAL INFORMATION
|
No. of Employees : |
Information
declined by the management. |
|
|
|
|
Bankers : |
|
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountants |
|
|
|
|
Auditors 2 : |
|
|
Name : |
S.R. Batliboi and Company Chartered Accountant |
|
Address : |
22, Camac Street, 3rd Floor, Kolkata – 700016, West |
|
|
|
|
Holding Company : |
Kotak Mahindra Bank Limited |
|
|
|
|
Joint Venture ; |
Old Mutual Plc |
|
|
|
|
Enterprise in which
joint venture has significant
influence : |
Old Mutual Life Assurance Company (South Africa) Limited |
|
|
|
|
Fellow Subsidiaries
: |
Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Investments Limited Kotak Investment Advisors Limited |
|
|
|
|
Entities managed by
Fellow Subsidiaries : |
Kotak Mahindra Mutual Fund managed by Kotak Mahindra Asset Management Company Limited |
|
|
|
|
Enterprises in which
key management personnel have significant influence : |
Kotak Life Insurance Superannuation Fund |
|
|
|
|
Enterprises in
which relatives of key management personnel have significant influence : |
Kotak Commodities Services Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
625000000 |
Equity Shares |
Rs.10/- each |
Rs.6250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
510290249 |
Equity Shares |
Rs.10/- each |
Rs.5102.902
Millions |
|
|
|
|
|
Notes:
(a) Of the above, 260248044 (2011 – 260248044) Equity Shares of Rs.10/- each fully paid up are held by Kotak Mahindra Bank Limited, the holding company and its nominees, 54000000 (2011-54000000) and 63366753 (2011-63366753) fully paid-up Equity Shares of Rs.10 each are held by Kotak Mahindra Prime Limited and Kotak Mahindra Capital Company Limited respectively, which are subsidiaries of Kotak Mahindra Bank Limited.
Pattern of
Shareholding
(As certified by the
Management)
|
Particulars |
As at March 31, 2012 |
|
|
Number of Shares |
% Holding |
|
|
Shareholders |
|
|
|
Promoters |
|
|
|
- Indian |
377,614,797 |
74% |
|
- Foreign |
132,675,452 |
26% |
|
Others |
-- |
-- |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Shareholders’ Funds: |
|
|
|
|
Share Capital |
5102.902 |
5102.902 |
5102.902 |
|
Reserves and Surplus |
1026.416 |
520.363 |
520.363 |
|
Credit/[Debit] Fair Value Change Account |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Sub-Total |
6129.318 |
5623.265 |
5623.265 |
|
|
|
|
|
|
Borrowings |
0.000 |
0.000 |
0.000 |
|
Policyholders’ Funds: |
|
|
|
|
Credit/[Debit] Fair Value Change Account |
0.386 |
61.313 |
49.810 |
|
Policy Liabilities |
|
|
|
|
- Participating |
8696.073 |
6542.365 |
5354.202 |
|
- Non-participating |
3043.846 |
1923.516 |
1094.841 |
|
- Annuities Participating |
635.796 |
520.136 |
422.748 |
|
- Annuities Unit-Linked Non-Participating |
116.994 |
91.307 |
66.037 |
|
- Unit-Linked Non-Participating |
1916.780 |
2494.138 |
2298.959 |
|
|
|
|
|
|
Insurance Reserves |
|
|
|
|
- Participating |
81.751 |
2.926 |
14.110 |
|
- Non-participating |
0.000 |
0.000 |
0.000 |
|
- Annuities Participating |
42.005 |
39.294 |
38.723 |
|
- Annuities Unit-Linked Non-Participating |
0.000 |
0.000 |
0.000 |
|
- Unit-Linked Non-Participating |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Linked Liabilities |
71788.829 |
64075.455 |
48376.701 |
|
Fair Value Change |
2229.199 |
3750.715 |
4025.871 |
|
Total Provision for Linked Liabilities |
74018.028 |
67826.170 |
52402.572 |
|
|
|
|
|
|
Sub-Total |
88551.659 |
79501.165 |
61742.002 |
|
|
|
|
|
|
Fund For Discounted Policies |
|
|
|
|
- Discounted on account of non payment of premium |
150.047 |
0.009 |
0.000 |
|
Funds for Future Appropriation:-Linked Liabilities |
1438.124 |
2037.320 |
2055.916 |
|
Others |
0.000 |
1.009 |
1.009 |
|
|
|
|
|
|
Total |
96269.148 |
87162.768 |
69422.192 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
Investments |
|
|
|
|
– Shareholders |
4303.890 |
3222.635 |
2491.819 |
|
– Policyholders’ |
17328.641 |
12836.740 |
10147.431 |
|
Assets Held to Cover Linked Liabilities |
75606.199 |
69863.499 |
54458.488 |
|
Loans |
63.652 |
57.742 |
52.194 |
|
Fixed Assets |
365.655 |
438.489 |
559.925 |
|
Current Assets |
|
|
|
|
Cash and Bank Balances |
1426.287 |
1047.305 |
912.970 |
|
Advances and Other Assets |
1393.270 |
992.315 |
1062.771 |
|
|
|
|
|
|
Sub-Total (A) |
2819.557 |
2039.619 |
1975.741 |
|
|
|
|
|
|
Sundry Creditors |
104.395 |
52.616 |
126.593 |
|
Other Current Liabilities |
3906.656 |
2579.166 |
2516.615 |
|
Provisions |
207.395 |
190.604 |
171.373 |
|
|
|
|
|
|
Sub-Total (B) |
4218.446 |
2800.386 |
2814.581 |
|
|
|
|
|
|
Net Current
Assets (C) = (A-B) |
(1398.889) |
(782.767) |
(838.840) |
|
Miscellaneous Expenditure (To the extent not written off or adjusted) |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account (Shareholders’ Account) |
0.000 |
1526.430 |
2551.175 |
|
|
|
|
|
|
Total |
96269.148 |
87162.768 |
69422.192 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
|
|
Amount transferred from policyholders account (Technical Account) |
1710.091 |
895.051 |
708.478 |
|
|
Income From Investments |
|
|
|
|
|
Interest, Dividends and Rent Gross- Net of amortization |
323.023 |
218.632 |
176.108 |
|
|
Profit on sale/ redemption of investments |
3.815 |
7.619 |
28.171 |
|
|
(Loss on sale/ redemption of investments) |
(0.360) |
(0.062) |
(0.013) |
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL (A) |
2036.569 |
1121.240 |
912.744 |
|
|
|
|
|
|
|
|
Expenses other than those directly related to the insurance business |
4.087 |
8.260 |
43.538 |
|
|
Contribution to the Policyholders Fund |
0.000 |
88.235 |
176.960 |
|
|
|
|
|
|
|
|
TOTAL (B) |
1.087 |
96.495 |
220.498 |
|
|
|
|
|
|
|
|
Profit before
tax |
2032.482 |
1024.745 |
692.246 |
|
|
Provision for taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit after tax |
2032.482 |
1024.745 |
692.246 |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
Balance at the beginning of the year |
(1526.430) |
(2551.175) |
(3243.421) |
|
|
Loss carried to the Balance Sheet |
506.052 |
(1526.430) |
(2551.175) |
|
|
|
|
|
|
|
|
Earnings Per
Share (Basic and Diluted) |
3.98 |
2.01 |
1.36 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
(Rs.
In Millions)
|
Particulars
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Sundry
Creditor |
104.395 |
52.616 |
126.593 |
|
|
|
|
|
|
Total |
104.395 |
52.616 |
126.593 |
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
BACKGROUND
Subject was incorporated on August 31, 2000 as a Company under the Companies Act, 1956 to undertake and carry on the business of life insurance and annuity. The Company obtained a license from the Insurance Regulatory and Development Authority (‘IRDA’) dated January 10, 2001 for carrying on the business of life insurance and annuity. The license has been renewed regularly and is in force as at March 31, 2012.
Notes:
The registered office has been shifted from
9th
Floor, Godrej Coliseum, Behind Everard Nagar, Sion (East), Mumbai – 400022 to Present
address w.e.f 01.05.2011
FINANCIAL RESULTS:
The Directors have declared the following rates of bonus on participating policies for the year ended 31st March 2012:
(a) 7% (2011 - 7%) on accumulation non retirement products to participating life policyholders which comprises 4% cash bonus in addition to the guaranteed rate of 3%.
(b) 8% (2011 - 8%) to Annuity participating policyholders which comprises 5% cash bonus in addition to the guaranteed rate of 3%.
(c) A reversionary bonus of 2% (2011 -2%) has been declared on products eligible for reversionary bonus.
BUSINESS AND
DISTRIBUTION CHANNELS:
In the last financial year structural changes in the Life Insurance Industry continued and the year was first full year of operation post changes in the ULIP Regulations. This year saw new regulation in the areas of Corporate Governance, Asset Liability Management and Stress Testing etc. which should significantly improve Corporate Governance and Risk Management practices in the sector. The year also witnessed the coming into force of new regulation in the areas of Distance Marketing and Web Aggregators, besides Exposure Drafts in the areas of Senior Agent and Orphan Policy among other distribution centric aspects, all of which are expected to alter for better the way insurance products are distributed in this country. The year also witnessed the focus shifting from Unit Linked products to Traditional products and an increasing trend towards long-term selling, which augurs well for the Industry.
The Company’s Life Advisors and the distribution team worked hard to successfully adapt to changes in their operating environment. Life Advisors exiting the profession is a challenge for the Industry as a whole. The Company is working on the challenge and remains confident of adjusting to changes in the industry and environment and improve its distribution strength.
a. Tied Agency
Tied Agency was successful in having a judicious mix of savings, investments and protection products. The Company continues to focus on distribution efficiency and will ensure that it remains a key deliverable for Tied Agency in next fiscal as well. Investment in training Life Advisors and sales hierarchy will be stepped up to ensure that the distribution is equipped to meet customers’ expectations.
b. Alternate Channels
Kotak Mahindra Bank continues to have significant share of Alternate channels business with gross new business premium contributing 40% (24% based on APE) of total business in FY 2011-12. Besides Kotak Mahindra Bank, They have corporate agency tie ups with cooperative and commercial banks that also contribute to the premium income. The Company has tie ups with 16 corporate agents, other than those under the bancassurance model and it also has tie ups with major brokers in the industry. Strengthening and growing these relationships will continue to be a major focus in FY 2012-13.
c. Group Insurance
The Company’s Group Business continues to perform exceedingly well year-on-year. The Company provides a range of products from Term Insurance, Group Gratuity and Group Mortgage Insurance Schemes to cater to its group clientele. Strong relationships within the Kotak Group and with other IRDA licensed Insurance Brokers have resulted in generation of significant business in this segment. The Company generated a premium income of Rs.3540.000 Millions (FY 2010-11 Rs.2880.000 Millions) from the group insurance business representing a growth of 23% over FY 2010-11.
INDUSTRY SCENARIO
The new ULIP regulations that came into force in September 2010 have impacted life insurance business and players have taken time adapting to changes in their operating environment. The Company is focussing on enhancing efficiency and productivity of its delivery channels. Significant proportion of insurance is still sold through individual agents and there is renewed vigour to manage this channel effectively to ensure persistency. In the new environment, focus of insurers has shifted from large-scale expansion to sustained value creation and efficient use of capital coupled with productivity of distribution channels.
BOARD OF DIRECTORS
Mr. Uday Kotak- Non-Executive Chairman
Mr. Uday Kotak, B.Com, MMS (Masters in
Management Studies), is the Non-Executive Chairman of the Company. Over the
past 26 years, he has built a team of professionals who have been given
independent charge of various businesses in Kotak Mahindra Group. He was
responsible for starting the Kotak Mahindra Group as a start-up venture in a
limited range of activities and then building it up into a full financial
services group, many of the constituents of which are among the leading players
in their respective fields. He is a Member on the Board of Governors of Indian
Council for Research on International Economic Relations (ICRIER), National
Institute of Securities Markets and Governing Member of the Mahindra United
World College of India.
He is on the Board of the following companies:
Kotak Mahindra Bank Limited – Executive Vice Chairman and Managing Director, Kotak Forex Brokerage Limited – Director, Kotak Mahindra Prime Limited – Chairman, Kotak Mahindra Asset Management Company Limited – Chairman, Kotak Mahindra Capital Company Limited – Chairman and Kotak Securities Limited – Chairman
Mr. Shailesh
Devchand- Non Executive Vice Chairman
Shailesh Devchand (B.Sc., F.I.A), a South African of Indian origin, is by profession a qualified Actuary through the Institute of Actuaries in London (1998). Shailesh’s career spans over 20 years in the financial services industry across several roles ranging from Development Actuary at Liberty Group in South Africa, to Senior Consultant and Country Executive Malaysia for a Singapore-based actuarial and distribution consulting firm. Shailesh spent 4 years in Asia until the end of 2003 on various consulting assignments across South East Asia for several Life and General insurers as well as regulatory bodies.
His earlier experience includes group employee benefits, Life and Group Product Development, valuation and valuation and reserving sign offs, corporate strategy and business development as well as distribution channel development and economics. Shailesh joined Old Mutual Group on his return to South Africa in 2004 to take on a role as Head of Business Development for Old Mutual South Africa focussing on alternative distribution. He later played a role as Executive within Old Mutual’s Retail Mass and Foundation Cluster business as Chief Operating Officer - Foundation Market. Shailesh currently holds the role of Director – Asian Markets for Old Mutual’s Emerging Markets business.
Mr. Shailesh Devchand is the member of Investment and Audit Committee of the Company and is also the Vice Chairman of the Board of Directors.
Mr. S. S. Thakur-
Independent Director
Mr. S. S. Thakur has held important positions in his long professional career in the field of banking and foreign exchange. He was the Controller of Foreign Exchange, Reserve Bank of India, Chairman of HDFC Bank and Senior Advisor of United Nations Development Programme (UNDP). With wide professional expertise in banking and foreign exchange, Mr. Thakur joined the U. N. International Civil Service as Senior Adviser, UNDP and worked in Zambia as Adviser to the Governor, Bank of Zambia for 6 years. Subsequently, he took up the position of Chairman, HDFC Bank.
Mr. Thakur has extensive experience of central banking functions covering, among others, management of foreign exchange, exchange rate and external debt, regulation and monitoring of external trade financing, foreign technical collaboration, foreign equity investment and exchange market development. As the Controller of Foreign Exchange, Mr. Thakur was instrumental in initiating various exchange control reforms and relaxations. He was also associated with formulation of policies for promoting foreign investment in India including investment by non-resident Indians (NRIs).
In his capacity as the Senior UN Adviser and Adviser to the Governor, Bank of Zambia, Mr. Thakur played a key role in designing and implementing market-oriented monetary, foreign exchange, banking, exchange rate, external debt and trade related policies as part of Zambia’s structural adjustment programme. His UN assignment resulted in major relaxations (in several cases total abolition) of exchange controls on current and capital account transactions and contributed significantly to various monetary policy and banking reforms.
Mr. Thakur was the founder Chairman of HDFC Bank, a highly reputed private – sector commercial bank promoted by Housing Development Finance Corporation (HDFC). He was associated with HDFC Bank as its Chairman for about seven years and played a key role in formulating policies and business strategies to achieve high standards and best practices in terms of product offerings and service levels.
Mr. Thakur has extensive exposure in capital market related areas. He has worked as a Public Interest Director on the Governing Board of Bombay Stock Exchange for five years and was the Chairman of Central Depository Services (India) Limited for over nine years. Currently, he is an Independent Director on the Boards of several companies.
Mr. Thakur is also associated with the project to set up an International Financial Services Centre (IFSC) in a Special Economic Zone pursuant to section 18 of the Special Economic Zone Act, 2005. He is Chairman of the Expert Committee set up by the Ministry of Commerce and Industry, Government of India to oversee and co- ordinate formulation of IFSC regulations in consultation with the financial services Regulators, i.e. RBI, SEBI and IRDA.
Mr. Vineet Nayyar-
Independent Director
Mr. Vineet Nayyar is the Vice Chairman, MD and CEO of Tech Mahindra and the Chairman of Mahindra Satyam.
An accomplished leader, he has led several organizations across industries, created high performance teams and successful businesses. In a career spanning over five decades, he worked with the Government of India, international multilateral agencies and corporate sector (both public and private). He started his career with the Indian Administrative Service and while in Government of India, he held series of senior positions including that of District Magistrate, Secretary - Agriculture and Rural Development for the Government of Haryana and Director, Department of Economic Affairs, Government of India. He worked with the World Bank for over a decade in a series of senior assignments, including the Chief for the Energy, Infrastructure and the Finance Divisions for East Asia and Pacific. In the Corporate Sector, he was the founding Chairman and Managing Director of the state owned Gas Authority of India and in the private sector, he served as the Managing Director of HCL Corporation and the Vice Chairman of HCL Technologies. Mr. Nayyar also served on the Boards of Indian Oil Corporation Limited and Bharat Heavy Electricals Limited
He was also the founder and CEO of HCL Perot Systems. He holds a Masters’ degree in Development Economics from Williams College, Massachusetts.
Mr. Nayyar is also a Director on the Boards of Great Eastern Shipping Company Limited, CanvasM Technologies Limited, Mahindra Holidays and Resorts India Limited, Mahindra Logisoft Business Solutions Limited and Greatship (India) Limited. Mr. Nayyar is a Trustee of Charitable Social Welfare Foundation, which cares for the needs of education of under-privileged children. This Foundation is closely associated with 12 renowned NGOs, which supports by way of providing grants empowering around 7000 students.
Mr. Shivaji Dam-
Independent Director
Mr. Shivaji Dam, B.Com, AICWA, ACA, ACS, has a strong accounting and cost accounting back ground with over 28 years’ experience of which 20 years have been with the Kotak Group. He has experience in fields such as Corporate Finance, Proprietary Investments, Investment Banking and operating management within the Kotak Group. He is one of the founding Directors of the Company. He led the Kotak group into the life insurance business and was Managing Director of the Company for four years
He is member of the Audit Committee and Chairman of the Banking Committee and Policyholders Protection Committee of the Company.
Mr. Shivaji Dam is also on the Board of Kotak Mahindra Trusteeship Services Limited and Kotak Mahindra Pension Fund Limited.
Mr. Dipak Gupta- Non
Executive Director
Mr. Dipak Gupta, B.E. (Electronics), PGDM-IIM, Ahmedabad, is a Non- Executive Director of the Company and has over 26 years of experience in the financial services sector, 20 years of which have been with the Kotak Group. He is responsible for Group HR, Admin, Infra, Operations and IT. He is also responsible for Asset Reconstruction Business of the Bank.
Mr. Dipak Gupta is the Chairman of Investment Committee and a member of the Audit Committee of the Company.
Mr. Dipak Gupta was responsible for leading the Kotak Group’s initiatives into the banking arena. Prior to joining the Kotak Group, hewas with A. F. Ferguson and Company for approximately six years. He is on the Board of the following companies:
Kotak Mahindra Bank Limited, Kotak Mahindra Prime Limited, Kotak Forex Brokerage Limited, Kotak Mahindra Capital Company Limited and Kotak Mahindra Investments Limited.
Mr. Gaurang Shah- Non
Executive Director
Mr. Gaurang Shah is President – Asset Management and Life Insurance at Kotak Mahindra Group and is responsible for Domestic and International Asset Management and Life Insurance businesses of the Group. He took over this assignment on May 1, 2010.
In his immediate prior assignment, he was the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited.
Mr. Shah has over 28 years of rich and varied experience primarily in the Financial Services sector, several of which are in the Kotak Mahindra Group.
He has held several positions of high responsibility over the years, including, inter alia, the Head of Retail Assets at Kotak Mahindra Bank. He was also closely associated with Kotak Mahindra Primus (a joint venture between Kotak Mahindra Group and Ford Credit International), among India’s leading automobile finance companies.
Mr. Shah is a Chartered Accountant and Cost Accountant.
He is a member of Investment Committee and Chairman of Asset Liability Committee and Risk Management Committee of the Company.
Mr. Prakash Apte-
Independent Director (w.e.f. May 28, 2011)
Mr. Prakash Apte, Bachelor of .Engineering from Pune University and PGDM from Mumbai University, has been the Managing Director of Syngenta India for a decade and is currently it’s non executive Chairman. Syngenta India Limited is one of the leading agri business companies in India and Syngenta Group is one of the largest investor in agriculture research and a leading agri-business across the world.
Mr. Apte in a career spanning over 34 years has considerable experience in various areas of management and business leadership. In the first phase of his career, Mr. Apte worked in Larsen and Toubro, Uhde India and in Ciba Geigy, in various positions of responsibility in the project management and technical operations. While in Ciba and later on in the merged entity Novartis, Mr. Apte assumed the role as a business head. When Syngenta was formed resulting from merger/demerger of Agri businesses belonging to Astra Zeneca and Novartis, Mr. Apte took over the responsibility as Managing Director and Country President for Syngenta in India.
During more than 15 years of very successful leadership of Syngenta business in India, Mr. Apte has gained varied knowledge in various aspects of business such as vision and strategy development, business integration and transformation, operation excellence etc. and he has been involved with many initiatives for organizational capability up gradation, coaching and people development.
Mr. Apte was instrumental in setting up the Syngenta Foundation India which focuses on providing knowledge and support for adoptingscientific growing systems to resource poor farmers and enabling their access to market.
Apart from being Non Executive Chairman of Syngenta India, Mr. Apte also serves on the Board of a private sector Bank and a private sector insurance Company.
Mr. Apte’s other interests include trekking in Himalaya, yoga and social service initiatives.
Mr. Ralph Mupita- Non
Executive Director (w.e.f. May 01, 2011)
An engineer by training, (B.Sc. Eng Hons.), Ralph obtained a Masters of Business Administration (MBA) from the University of Cape Town in 2000. He is a graduate of Harvard Business School’s GMP programme, and has also attended executive programmes at London Business School and INSEAD.
Ralph joined Old Mutual in 2000. Within Old Mutual’s Individual Life business, he managed the transformation programme that formed the base of developing the new generation products and servicing, before his promotion to Managing Director of Old Mutual Unit Trusts in 2004.
Ralph became the group’s Strategy Director in 2006 and led the development of several new businesses within OMSA as Director of New Ventures. A key new business that Ralph led was setting up the South African based lending business Old Mutual Finance – focused on lending solutions to mass market customers.
In 2008, Ralph was then appointed as the Managing Director - Retail to drive the growth of Old Mutual in the affluent segment which includes the distribution of its solutions through the tied adviser force, broker networks, independent and bank channels.
On April 1, 2011, Ralph was appointed as the Chief Executive Officer for Old Mutual Emerging Markets: Life and Savings. The focus of this role is to drive growth of their life and savings businesses in South Africa, Rest of Africa, Latin America and Asia through leveraging group capabilities and skills. Ralph also looks after Product, is currently interim Strategy Director, and Chair of the Emerging Markets Exco IT subcommittee.
Ralph is a director of the main Emerging Markets board – OMLACSA. He also serves on various subsidiary boards including OMIGSA. Outside of Old Mutual he is a board member of the University of Cape Town (Graduate School of Business) Advisory. He is also involved with LEAP School in South Africa – a math and science school focused on giving under -privileged learners top quality education.
Ralph Mupita has been appointed Chief Executive of its Emerging Markets from February 1, 2012.
Mr. G. Murlidhar –
Managing Director (w.e.f. June 22, 2011)
Mr. Murlidhar is one of the founder members of Kotak Mahindra Old Mutual Life Insurance Limited He has served the Company in various positions of responsibility over the past decade and was the Company’s Chief Operating Officer in his immediate prior assignment, where he was instrumental in establishing a strong operational and service backbone for the Company.
Mr. Murlidhar has close to three decades of experience in the functional areas of Finance, Commercial, Projects, Marketing, HR, IT, Consumer distribution besides handling public issues and open offers across sectors such as BFSI, Services and Manufacturing.
He worked with companies like NDDB, MDS Switchgear and Nicholas Piramal before shifting to Ion Exchange Limited where he assumed varying positions of responsibility. Prior to joining Kotak Life Insurance, he held the position of VP-Finance and Commercial at Gujarat Glass Limited
He is a qualified Chartered Accountant, Company Secretary and Cost and Work Accountant.
CONTINGENT
LIABILITY:
(Rs.
In Millions)
|
Particulars
|
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Guarantees given by or on behalf of the Company |
1.200 |
0.000 |
|
Statutory demands/ liabilities in dispute, not provided for (Income Tax) |
0.000 |
77.449 |
|
Others – Insurance claims in appeal net of provision (Gross value of claims Rs.127.000 Millions (2011 – Rs.129.904 Millions), out of which reinsured Rs.29.433 Millions (2011 – Rs.39.704 Millions) and provision Rs.30.804 Millions (2011 Rs.33.676 Millions) |
66.763 |
56.524 |
FIXED ASSETS:
REVENUE ACCOUNT FOR THE PERIOD ENDED JUNE 30, 2012
(Rs. In Millions)
|
Particulars |
For the Quarter
Ended June 30,2012 |
Upto the Quarter Ended June 30, 2012 |
|
Premiums earned - net (a) Premium |
4568.003 |
4568.003 |
|
(b) Re-insurance ceded |
(119.131) |
(119.131) |
|
(c) Re-insurance accepted |
- |
- |
|
Income from
investments |
|
|
|
(a) Interest, Dividends and Rent Gross- Net of accretion/amortization of Discount/Premium |
1426.370 |
1426.370 |
|
(b) Profit on sale/ redemption of investments |
796.560 |
796.560 |
|
(c) (Loss on sale/ redemption of investments) |
(643.417) |
(643.417) |
|
(d) Transfer/ Gain on revaluation/change in fair value |
69.248 |
69.248 |
|
Contribution from Shareholders' Account |
68.129 |
68.129 |
|
Other Income |
|
|
|
(a) Miscellaneous income |
8.917 |
8.917 |
|
(b) Profit/(Loss) on sale/disposal of fixed assets (Net) |
0.868 |
0.868 |
|
TOTAL (A) |
6175.547 |
6175.547 |
|
Commission |
182.445 |
182.445 |
|
Operating Expenses related to Insurance Business |
1327.801 |
1327.801 |
|
Provision for doubtful debts |
- |
- |
|
Bad debts written off |
- |
- |
|
Provision for tax |
10.490 |
10.490 |
|
Provisions (other than taxation) |
- |
- |
|
(a) For diminution in the value of investments (Net) |
- |
- |
|
(b) Others |
- |
- |
|
TOTAL (B) |
1520.736 |
1520.736 |
|
Benefits paid (net) |
3028.714 |
3028.714 |
|
Interim & Terminal Bonuses paid |
5.996 |
5.996 |
|
Change in valuation of liability in respect of life policies, |
|
|
|
(a) Gross |
592.071 |
592.071 |
|
(b) Amount ceded in Reinsurance |
- |
- |
|
(c) Amount accepted in Reinsurance |
- |
- |
|
Provision for Linked Liabilities |
852.452 |
852.452 |
|
TOTAL (C) |
4479.233 |
4479.233 |
|
SURPLUS/(DEFICIT)
(D)=(A)-(B)-(C) |
175.578 |
175.578 |
|
APPROPRIATIONS |
- |
- |
|
Transfer to Shareholders' Account |
- |
- |
|
Transfer to Other Reserve |
- |
- |
|
Balance being Funds for Future Appropriations |
(122.910) |
(122.910) |
|
Surplus after Appropriation |
298.488 |
298.488 |
|
TOTAL (D) |
175.578 |
175.578 |
|
SURPLUS/(DEFICIT)
BROUGHT FORWARD |
123.756 |
123.756 |
|
Surplus after Appropriation |
298.488 |
298.488 |
|
SURPLUS/(DEFICIT) CARRIED FORWARD TO BALANCE SHEET |
422.244 |
422.244 |
|
(a) Interim & Terminal Bonuses Paid |
5.996 |
5.996 |
|
(b) Allocation of Bonus to Policyholders |
|
|
|
(c) Surplus/ (Deficit) shown in the Revenue Account |
298.488 |
298.488 |
|
Total Surplus: [(a)
+ (b) + (c)] |
304.484 |
304.484 |
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED JUNE 30, 2012
(Rs. In Millions)
|
Particulars |
For the Quarter Ended June 30, 2012 |
Upto the Quarter
For the Quarter Ended Ended June 30, 2012 |
|
Amounts transferred from Policyholders' Account (Technical Account) |
|
|
|
Income from Investments |
|
|
|
(a) Interest, Dividends and Rent Gross- Net of amortisation |
110.139 |
110.139 |
|
(b) Profit on sale/ redemption of investments |
0.370 |
0.370 |
|
(c) (Loss on sale/ redemption of investments) |
- |
- |
|
Other Income |
- |
- |
|
TOTAL (A) |
110.509 |
110.509 |
|
Expenses other than those directly related to the insurance business |
1.158 |
1.158 |
|
Bad debts written off |
- |
- |
|
Provisions (other than taxation) |
|
|
|
(a) For diminution in the value of investments (Net) |
- |
- |
|
(b) Provision for doubtful debts |
- |
- |
|
(c) Others |
|
|
|
-Contribution to the Policyholders Fund |
68.129 |
68.129 |
|
TOTAL (B) |
69.287 |
69.287 |
|
Profit before tax |
41.222 |
41.222 |
|
Provision for taxation |
|
|
|
- Current Year |
8.246 |
8.246 |
|
- Earlier Year |
- |
- |
|
Profit after tax |
32.976 |
32.976 |
|
Appropriations |
|
|
|
(a) Balance at the beginning of the year |
506.052 |
506.052 |
|
(b) Interim dividends paid during the year |
- |
- |
|
(c) Proposed final dividend |
- |
- |
|
(d) Tax on dividend distributed |
- |
- |
|
(e) Transfer to reserves/ other accounts |
- |
- |
|
Profit/(Loss)
carried to the Balance Sheet |
539.028 |
539.028 |
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 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 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.54.85 |
|
|
1 |
Rs.88.40 |
|
Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.