|
Report Date : |
23.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
TATA AIA LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Formerly Known
As : |
TATA AIG LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Delphi, B Wing, 2nd Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
23.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128403 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 19535.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2000PLC128403 |
|
|
|
|
IEC No.: |
MUMT07312E |
|
|
|
|
Legal Form : |
A closely held public limited liability company. |
|
|
|
|
Line of Business
: |
Offering Life and General Insurance. |
|
|
|
|
No. of Employees
: |
5798 (Approximately) |
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 16000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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.
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 PARTED BY (Denied Information)
|
Name : |
Mr. Vivek Mathur |
|
Designation : |
Finance Head |
|
Contact No.: |
91-22-66479000 |
|
Date : |
21.07.2012 |
LOCATIONS
|
Registered Office / Corporate Office : |
Delphi, B Wing, 2nd Floor, |
|
Tel. No.: |
91-22-66516061 / 66479000 |
|
Fax No.: |
91-22-66550751 / 67024123 |
|
E-Mail : |
DIRECTORS
AS ON 22.07.2011
|
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 |
|
|
Din No.: |
00027689 |
|
|
|
|
|
|
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 |
|
|
Din No.: |
00027891 |
|
|
|
|
|
|
Name : |
Mr. Pratip Sanjay Kar |
|
|
Designation : |
Director |
|
|
Address : |
1050/1, |
|
|
Date of Birth/Age : |
23.12.1951 |
|
|
Date of Appointment : |
14.01.2011 |
|
|
|
|
|
|
Name : |
Mr. Phong Thanh Huynh |
|
|
Designation : |
Director |
|
|
Address : |
Flat C1, 78, |
|
|
Date of Birth/Age : |
22.05.1966 |
|
|
Date of Appointment : |
21.02.2011 |
|
|
|
|
|
|
Name : |
Mr. Jaanki Ballabh |
|
|
Designation : |
Director |
|
|
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 |
|
|
Din No.: |
00011206 |
|
|
|
|
|
|
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 |
|
|
Date of Appointment : |
01.06.2009 |
|
|
Din No.: |
01781730 |
|
|
|
|
|
|
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 |
|
|
Din No.: |
00005085 |
|
|
|
|
|
|
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 |
|
|
Din No.: |
00033830 |
|
|
|
|
|
|
Name : |
Mr. Simeon Preston |
|
|
Designation : |
Director |
|
|
Address : |
3, |
|
|
Date of Birth/Age : |
15.04.1970 |
|
|
Date of Appointment : |
11.05.2011 |
|
|
|
|
|
|
Name : |
Mr. Swaminathan Iyer Mr. Sankara Narananan Iyer |
|
|
Designation : |
Secretary |
|
|
Address : |
Flat No.302, 3rd Floor, Cascade, B Wing, Vasant Oscar, LBS Marg,
Mulund (West), Mumbai – 400080, |
|
|
Date of Birth/Age : |
15.10.1967 |
|
|
Date of Appointment : |
20.12.2010 |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 22.07.2011
|
Names of Shareholders |
|
No. of Shares |
|
Tata sons Limited, |
|
1445589400 |
|
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, |
|
507910000 |
|
Tata Sons Limited, Jt. Ferrokh Kavarana, |
|
100 |
|
Tata sons Limited, Jt. Kersi Bhagat, |
|
100 |
|
|
|
|
|
Total |
|
1953500000 |
AS ON 22.07.2011
|
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 |
74.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Offering Life and General Insurance. |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
5798 (Approximately) |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kalayaniwalla and Mistry Chartered Accountant |
|
Address : |
Kalapataru Heritage, 127, mahatma |
|
|
|
|
Name : |
A.F. Ferguson Associates Chartered Accountant |
|
Address : |
12, |
|
|
|
|
Joint Venture : |
Tata Sons And AIA Group Limited (AIA) |
|
|
|
|
Holding Company : |
Tata Sons Limited U99999MH1917PLC00478 |
CAPITAL STRUCTURE
AS ON 31.03.2011
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 |
|
|
|
|
|
|
1953500000 |
Equity Shares |
Rs.10/- each |
Rs.19535.000 Millions |
|
|
|
|
|
Note : Share Capital amounting to Rs. 14455.900 millions
(previous year Rs. 14211.700 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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
19535.000 |
19205.000 |
15195.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(15580.693) |
(16098.612) |
(12098.489) |
|
|
5] Credit / (Debit) Fair Value Change Account |
0.341 |
0.000 |
0.000 |
|
|
NETWORTH |
3954.648 |
3106.388 |
3096.511 |
|
|
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 |
121886.912 |
90863.500 |
46675.832 |
|
|
|
|
|
|
|
|
TOTAL |
125841.560 |
93969.888 |
49772.343 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
492.942 |
917.758 |
1416.784 |
|
|
Capital work-in-progress |
18.557 |
165.033 |
141.106 |
|
|
|
|
|
|
|
|
INVESTMENT |
126581.056 |
94555.127 |
49105.433 |
|
|
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 |
1397.443
|
1356.909
|
1955.019 |
|
|
Other Current Assets |
1989.318
|
1729.911
|
1749.321 |
|
|
Loans & Advances |
1184.466
|
780.364
|
596.710 |
|
Total
Current Assets |
4571.227
|
3867.184
|
4301.050 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2081.681
|
2183.947
|
2297.651 |
|
|
Other Current Liabilities |
3676.958
|
3276.498
|
2799.469 |
|
|
Provisions |
63.583
|
74.769
|
94.910 |
|
Total
Current Liabilities |
5822.222
|
5535.214
|
5192.030 |
|
|
Net Current Assets |
(1250.995)
|
(1668.030)
|
(890.980) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
125841.560 |
93969.888 |
49772.343 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
39728.662 |
34815.564 |
27345.586 |
|
|
|
Other Income |
10531.478 |
25992.300 |
0.000 |
|
|
|
TOTAL (A) |
50260.140 |
60807.864 |
27345.586 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Salaries, wages and bonus |
4126.858 |
4375.109 |
4171.200 |
|
|
|
Managerial remuneration |
25.831 |
21.888 |
15.000 |
|
|
|
Payment to auditors |
3.496 |
3.590 |
3.597 |
|
|
|
Other Expenditure |
44879.911 |
59533.184 |
28063.668 |
|
|
|
TOTAL (B) |
49036.096 |
63933.771 |
32253.465 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1224.044 |
(3125.907) |
(4907.879) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
70.072 |
70.032 |
98.272 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1153.972 |
(3195.939) |
(5006.151) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
636.053 |
804.184 |
646.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
517.919 |
(4000.123) |
(5652.381) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
517.919 |
(4000.123) |
(5652.381) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(15580.693) |
(16098.612) |
(12098.489) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(16098.612) |
(12098.489) |
(6446.108) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.27 |
(2.48) |
(4.65) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.03
|
(6.57)
|
(20.67) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.30
|
(11.48)
|
(20.67) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.22
|
(83.59)
|
(98.08) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
(1.28)
|
(1.82) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.47
|
1.78
|
1.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.78
|
0.69
|
0.82 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS :
(Rs. In Millions )
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
Sundry Creditors |
2081.681
|
2183.947
|
2297.651 |
|
|
|
|
|
Note :
The registered office address of the company has been shifted from
|
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 |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
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 |
Yes |
|
20) Export / Import details (if applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
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 |
Tata AIG Life
becomes Tata AIA Life
Tata
AIG was set up in 2001 as a joint venture between the Indian conglomerate Tata
Group and AIG. Tata Sons has 74 per cent stake in the JV, while the remaining
26 per cent share is held by AIA, in which AIG had a controlling stake earlier.
AIA separated from the group in 2009 after it.
INDUSTRY OVERVIEW
The year 2010-11
saw a transition and adaption to the new regime of doing business consequent to
regulatory changes introduced during the year. The life insurance industry grew
by 15% in terms of new business premium income after witnessing a 26% growth in
2009-10. Private players' growth was subdued at 2.5% over previous year as
compared to the 12% growth experienced in FY 2009-10. This phenomenon was
largely due to a depressed second half as the private industry experienced a
decline post the new regulatory norms on commission caps, caps on surrender charges and minimum guarantee return for
pension products coming into effect. Group business contributed to 23% of the
total new business premiums as compared to 18% in 2009-10. Focus has shifted
from Investment Linked to Traditional plans as expected. The year also saw
larger mix of single premium products being sold with a contribution of nearly
30% of the new business premiums as compared to 10% in 2009-10.
The Company closed
the year with new business premiums of Rs. 1,3320.000 millions which was almost
in line with previous year. The Company's new business premium market share
amongst private players was 3,4% in
line with previous year. Total Premium
grew by 13%. Group business contributed to 16% of the total new business
premiums as compared to 14% in 2009-10. Single Premium contributed to nearly
17% of the new business premiums as compared to 4% in 2009-10.
Life Insurance
industry is undergoing a transition - from scalability to sustainability phase
- accelerated by the far reaching changes with implementation of the revised
unit linked guidelines and other regulatory recommendations. The growth
potential however remains encouraging - penetration levels are still low, there
exists a significant growth opportunity at current savings rate, economic
growth will push household incomes higher while life expectancy creates
opportunities in pensions, there is a positive shift in the demographic
transition.
Medium term growth
story of the industry is expected to be in line with GDP growth. With the
changing regulatory landscape. Emphasis in the coming years will intensify
towards driving productivity improvements, capital efficiency and profitability
- higher persistency and improved productivities will be key aspects to achieve
these objectives. Expense management discipline will continue to be an
important agenda and costs of distribution need to be managed frugally.
CORPORATE AGENTS
AND BROKERS
The relationship
with United Bank of
Some of the key
initiatives undertaken during the year to improve the efficiencies around
distribution include:
Simplification of licensing
process to sustain candidate's interest levels (standard calendar, effective
communication, batch management).
Structured
engagement to foster Agency Development through a rigorous plan for the first
90 days of an Agent aided with predefined milestones.
Improve Agent
activation by adopting a focused and segmented approach in building a
sustainable & progressive agency distribution force.
Predominantly
focus on alternate channel players with established distribution network
(branches) with highly productive sales teams and large and established
customer base.
Build a competitive advantage in broking space
by sustained delivery of key success factors. Aggressive pursuit of banks NBFCs building up significant and
high quality retail asset portfolio in the Group Life space. Explore opportunity on liability base through new to
market group endowment products.
RURAL AND SOCIAL SECT- WIGATIONS
Under the IRDA (Obligations of Insurers to Rural
Social Sectors) Regulations, 2000, an
insurer is required to meet the prescribed obligations pertaining to rural and
social sectors. The Company has covered over 66,137 individual lives in the
social sector as against the requirement of 55,000 lives. It has also written individual policies at
27.51% of the Company's policies in the rural sector as against the regulatory
requirement of 20%
OPERATIONS AND
SYSTEMS
·
During the year various initiatives were undertaken
to enhance customer engagement,
improve levels of customer service and to ensure adequate support to business.
Some of the initiatives towards this include: -
·
Implementation of Customer Portal: Launched a
customer portal to enable customers to view their policy details online, at
their convenience. In addition, customers can also make service requests online.
·
IVR Implementation: Introduced an Interactive Voice
Response system for the Inbound call centre
thus providing customers with self service capabilities and improved service
through lower wait time and lower abandonment rates.
·
Web Sales: Introduced the option for customer to
buy approved products through the Company's website. Online purchases provide
customers the benefit of
purchasing policies at a lower premium than through traditional channels and also provides them the flexibility of
purchasing policies at their
convenience.
·
Additional helpline
number: An additional 24 hour help line number was introduced to enable customers to contact their
inbound call center from any
telecom service provider. The customer will incur only local calt charges, irrespective of the
location from which they call. The existing toll free line was accessible only
from BSNL and MTNL phones.
·
Customer engagement program: A new program has been
initiated to keep the Company's customers
engaged by updating them about various new
programs/initiatives undertaken by the company through mails and SMS's.
·
Revamp of the
Company's Website: The Company's website has been completely revamped to
provide it with a better look and feel and to enhance consumer experience through ease of navigation. The restructured
website also provides customers tools for product selection and premium
calculation to enable them to take an informed decision on buying Company's products.
·
Dream IT project Hosting of messaging, Active
Directory and Internet services was moved to the Company's data center in
Media Release
The company
announces a net profit of 2603.1 millions for FY 2011-12
Mumbai, 2nd July 2012: Tata AIG Life
Insurance Company, the life insurance joint venture formed by Tata Sons and AIA
Group (AIA), today announced that it has changed its name to Tata AIA Life
Insurance Company (Tata AIA Life).
The
company was set up as a joint venture between the leading Indian conglomerate
Tata group and the leading international insurance organisation American
International Group (AIG). It was licensed to operate in
In
2010, AIA went public in
To
create a uniform identity of AIA owned companies post this IPO, the two
promoters of this joint venture have chosen to change the company’s name to
Tata AIA Life. However, the company makes this transition just in its name; its
single-minded focus in protecting the financial well-being of its customers
remains unchanged.
Commenting
on the occasion, Farrokh K Kavarana, chairman, Tata AIA Life, said, “The Tata
group, along with their valued partner AIA, continue to remain committed to the
Indian market and their valued customers and partners through their renamed
entity Tata AIA Life. Over the past 11 years, they as a company have strived to
build a solid foundation of providing financial protection to their customers.
They are confident that this strong foundation will enable us to stand
unwaveringly in good stead and realise full potential of the vast Indian
market.”
Mr.
Huynh Thanh Phong, executive vice president and regional chief executive, AIA,
said, “In order to reflect the true brand identity of AIA and communicate its
unique market position, history and its ongoing commitment to customers and
partners in Asia Pacific region, the promoters of the joint venture have chosen
to change the name of the company from Tata AIG Life Insurance to Tata AIA Life
Insurance. The rechristened Tata AIA Life will continue to focus on building a
premier agency sales force to meet the savings and protection needs of the
customers in
Mr.
Suresh Mahalingam, managing director, Tata AIA Life, elaborated, “While they
make this transition in their name, nothing else will change. The promoters,
the distribution network, the teams, the products, the technology and more
importantly, their commitment towards putting the customers at the centre of
everything they do, remain unchanged. The foundation of trust that their
company has been built upon will continue to be strengthened with the vast
expertise that AIA brings with over 90 years of leadership in the life
insurance business in the Asia Pacific region.”
Performance of Tata AIA Life for the financial year 2011-12
Tata AIA Life also announced its financial results for the fiscal 2011-12,
posting a net profit of Rs2603.100 millions.
The
total premium income for the financial year ending March 2012 stood at Rs
3,630.000 millions as against Rs 39,850.000 millions posted for the financial
year 2010-11. Of this, the new business premium collection stood at Rs 9400.000
millions. The renewal premium for the same period was at Rs 26,900.000 millions,
as against Rs 26,530.000 millions in the last fiscal. Traditional business
accounted for 45 percent of the new business premium as against 29 percent in
the last fiscal.
During
the financial year, the company further enhanced its operating efficiencies
resulting in the reduction of the operating expenses to total premium ratio to
21 percent against 24 percent in the previous financial year.
The
total assets under management of the company has increased by 15 percent to
Rs1,45,190.000 millions from Rs12,622.000 millions in the last fiscal. As on
March 31, 2012, the paid-up capital of the company stood at Rs19,540.000
millions.
Commenting
on the company's performance, Mr Mahalingam said, “The company has maintained focus
on optimum utilisation of resources and a healthy balance in the product mix
between traditional and unit linked business. The cost management effectively
delivered profitable growth for the company with statutory profit of Rs260.31
crore. A solvency margin of 284 percent further underlines the robust financial
health of the company.”
Recent Performance of
AIA
For the year that ended November 30, 2011, AIA reported record new business
growth with a 40 percent increase in value of new business and 22 percent
increase in annualised new premium. For the same period, AIA’s embedded value
stood at $27,239 million, up by $2,491 million from $24,748 million as on
November 30, 2010. It had total assets of $114,461 million as of November 30,
2011.
Tata
AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company,
formed by Tata Sons and AIA Group Limited (AIA). Tata AIA Life combines Tata’s
pre-eminent leadership position in
About Tata
The
group has operations in more than 80 countries across six continents, and its
companies export products and services to 85 countries.
The
total revenue of Tata companies, taken together, was $83.3 billion (around
Rs3,796.75 billion) in 2010-11, with 58 per cent of this coming from business
outside
Every
Tata company or enterprise operates independently. Each of these companies has
its own board of directors and shareholders, to whom it is answerable. There
are 31 publicly listed Tata enterprises and they have a combined market
capitalisation of about $79.40 billion (as on June 21, 2012), and a shareholder
base of 3.6 million. The major Tata companies are Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages,
Tata Teleservices, Titan, Tata Communications and Indian Hotels.
About AIA
AIA
Group Limited and its subsidiaries (collectively “AIA” or “the Group”) comprise
the largest independent publicly listed pan-Asian life insurance group in the
world. It has wholly-owned main operating subsidiaries or branches in 14
markets in Asia Pacific –
The
business that is now AIA was first established in
AIA
meets the savings and protection needs of individuals by offering a range of
products and services including retirement planning, life insurance and
accident and health insurance. The Group also provides employee benefits,
credit life and pension services to corporate clients. Through an extensive
network of agents and employees across Asia Pacific, AIA serves the holders of
more than 24 million individual policies and over 10 million participating
members of group insurance schemes.
AIA
Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong
Limited under the stock code “1299” with American Depositary Receipts (Level 1)
traded on the over-the-counter market (ticker symbol: “AAGIY”).
Outlook For Year
2012
"Indian GDP Growth Could Moderate To 7% Level In
2012"
Saravana Kumar, Chief Investment Officer, Tata AIG Life
Insurance
In near term, the Indian Rupee will continue to be sensitive
to the changes in investor risk appetite, on the back of the sovereign debt
crisis in peripheral Euro zone economies and USD strength. External
fundamentals remain key and will remain a drag on the Rupee. However, over the
medium to long term, the rupee has appreciation potential on the back of
relatively strong growth fundamentals and improving investment climate, which
would attract greater capital inflows. Rupee is expected to appreciate to 48
levels by March 2012 and 47 levels by December 2012.
CY 12 bets can be placed in IT, Telecom, Banks mainly in
Private space, Auto, Agri input sector, Select FMCG and Pharmaceuticals, by a
long term investor who has a 2-5 year time horizon. They at Capital Market interacted
with Saravana Kumar, Chief Investment Officer of Tata AIG Life Insurance,
to know the factors which would lead the equities and fixed income markets in
Calendar Year (CY) 2011.
Here are the excerpts:
In Calendar Year (CY) 2011, growth across the world slowed
down. Will CY 2012 be better or growth will slow down further? More
specifically will
It is clear that the global growth in 2012 at sub 3% will be
lesser even when compared to the expected anaemic growth of 3% in 2011. Indian
GDP growth could moderate to 7% level in 2012, primarily on the back of
weakening exports and muted industrial growth. They believe that the 7%
threshold will be maintained due the strong domestic consumption and a robust
rural demand on the back of higher minimum support prices and good monsoon.
Additionally, services could help lift the GDP growth to the 7% level
offsetting the moderating exports and weak industrial sector growth rate. In a
slowing world, it is important to understand that a 7% growth is a still a good
outcome and the growth differential of
Industrial capex seems
to be showing mixed signs across various industries, what’s the view on this
theme’s market performance in CY 2012? Which are the sectors appearing
attractive to the fund managers going forward in CY12?
The
market has divided itself into two clusters at the opposite ends of the
valuation growth paradigm. One, where growth visibility is strong as in
Information Technology, FMCG, Agri input sector and pharmaceuticals, but where
the valuations not very cheap. The other cluster is beaten down infra and
capital goods space where there is less visibility of order book due to slowing
capex, lack of policy clarity as well as concerns on escalating interest costs.
They
believe that CY 12 bets can be placed in IT, Telecom, Banks mainly in Private
space, Auto, Agri input sector, Select FMCG and Pharmaceuticals, by a long term
investor who has a 2-5 year time horizon. While IT companies will benefit from
a weak INR and the outsourcing theme, FMCG, and Telecom reflect the robust domestic
consumption play. Pharmaceuticals will do well due to both exports and domestic
demand. Banks, mainly private space, could capture the upsides created due to
increased economic activity as they have a robust and scalable business model.
In
general, they prefer well-managed companies with low debt, stable operating
margin, low capital requirement, that operate in non-competitive spheres, with
easy cash flows and trading at reasonable valuations.
With
Euro debt issues pressurizing global banks and NPAs piling up on Indian PSU
banks, how will the finance sector perform in the Indian markets in CY 2012?
They
believe that the negative news flow from
Having
said that, the PSU banks have rising NPA issues and that has resulted in their
under performance over the last 1 year. They believe that the NPAs concerns are
baked into stock prices to a large extent but would continue to remain cautious
on this sector. However, they like private sector banks selectively, due to
their earnings profile and scalable business model and look to add them in
their portfolio on dips. In the medium term, as the financial sector is a proxy
to the Indian growth story and make up almost a quarter of the weight in the
index, it is difficult to remain bullish on Indian equity market while remaining
bearish on financials. Any sustainable rally in the equity markets would
require financials participating in it at some point in the future.
Midcaps
/ smallcaps have been crushed very hard in CY 2011. What is the view on their
market performance in CY 2012? Which are the sectors within this space that
investors should invest or accumulate? What is the outlook?
Apart
from Large cap stocks, there lies good opportunities in mid caps/ Small caps
segments. They would stick to quality names in this space which have
demonstrated consistent earnings across the business cycles & who score
high on corporate governance. They believe that as the market sentiment
improves, they could be among the first to rebound. The recent few months have
been difficult for investors with a mid-cap portfolio but the severe correction
has opened up a substantial valuation difference as the CNX Midcap index trades
at around 10 times one year forward price earnings as compared to the Sensex
valuation of around 13 times one year forward.
A
large number of Mid/Small cap companies with strong brands or franchises are
available at extremely cheap valuations. There is large number of Midcap/small
cap companies available today that can double or triple over three to four
years.
What Sensex/NIFTY level do you foresee at the end of CY 2012
and which stocks/sectors/themes will be the major drivers for the rise/fall
vis-à-vis end-CY 2011?
I see
equities giving positive return at least in the second half of FY 2013. This
will be the base case scenario. Interest rates in 2012 will surely come off
from 2011 levels. Clearly the chances of interest rates to sustain at these
levels beyond six months appear low. They appear have peaked out and at some
point of time, will start to reduce. Inflation will come off to some extent in
the first half of the year due, to the base effect of last year. Coupled with
this, they have policy measures and Governments’ initiative to control the
fiscal deficit for FY2013 in the budget. Thus , I expect things to only improve
here on and the pessimism for equity markets to reduce. A dip in commodity
prices will help.
In
terms of specifics, they are of the view that the earnings for the companies
making up the Sensex are slowing but definitely not collapsing as feared by
some market experts. They could still look at close to 14% earnings growth in
FY 12 and 17% in FY 13, though there is some downside risks to these numbers.
If they give fair multiples to the FY 13 Sensex EPS of around 1300, they could
see the Sensex higher by around 15% by the end of FY 2013 from the current
levels of 16000 and believe that IT, Telecom, Private sector banks and
selective FMCG and Pharmaceuticals would lead the move as they still have
reasonable earnings visibility for FY 2013. Some of the interest rate sensitive
sectors could be the dark horses if the RBI resorts to aggressive interest rate
cuts in FY 2013.
In
terms of downsides to the Indian equity market, the current level provides
valuation comfort for an equity market investor from a long-term perspective. I
do not see the markets correcting much below 15000 for the Sensex and 4500 for
the Nifty, at which levels markets will be trading near the lower range of the
historical valuations.
How can
investors choose between different avenues in the equity category? Also what
are the returns that can be expected from them going forward in CY12?
Equities
have historically given returns for a long-term investor well above the inflation
rates and created wealth over the long term. Last 4 years have seen the Indian
equity market providing muted returns, primarily on the back of a weak global
economic backdrop. They believe that equity returns could head back to long
term trend in 2012 as inflation falls off and the valuations continue to be
reasonable at around 13 times one year forward price earnings. Any improvement
in global macro will result in an increase in portfolio flows into
In
Going forward, apart from the consumption theme playing out
on the back of a strong rural demand, they could see the re-emergence of the
Indian outsourcing story, more so now as the INR has depreciated substantially
to further enhance the competitiveness of the Indian exporters. That is why
they believe that IT sector is a key sector which could outperform the
benchmark indices over the medium term. Unlike the global financial crisis in
2008, this time around the corporate in US have record cash levels in their
balance sheet and this could be a catalyst in their increased spending on IT as
and when the business confidence improves. Large corporate across the western
world are consolidating their IT vendors and looking at more efficient IT
services providers to help them reduce costs. This again opens up large
opportunities to the Indian IT players, given their advantages in efficiently
delivering quality at lower costs.
Infrastructure remains a major laggard. With
policy/execution/reform paralysis in government and high interest rates, what
is the view on this segment’s market performance in CY 2012?
The
performance of infrastructure sector has been disappointing for last 3 years.
The key learning is that infrastructure is not just about constructing
projects. It is about viable business with good cash flows and investments.
They would like to invest in more mature companies which have gone through the
initial learning cycle. The demand-supply for these products and services will
again catch up with the uptick in the economic activity. I don’t think Infra
sector will touch the peak valuation they had traded in CY 2006 and CY 2007.
But, they will not remain at the level where they are today.
With
USD 1 trillion being the Planning commission’s Infrastructure target over 5
years, it is difficult to see infra sector doing badly from these levels in the
medium term. If RBI rate cuts are effected throughout FY 2013, infra sector
could get a boost in earnings as interest costs could reduce from the current
levels. Some clarity on policies from the Government’s side to de-bottleneck
access to land and natural resources as well as a pick up in corporate India’s
capex cycle, going forward, may help in the performance of the infra sector.
What’s
the call on Indian rupee? Don’t you think if rupee continues to depreciate or
even remain at current depreciated levels for long,
The
Indian rupee has found a range in the 51-52 mark in the last few trading
sessions after a sharp fall over the last 8 weeks. The weak global macro and
the persistent Indian current account deficit act as gravity to any sharp
appreciation from here on. The sharp fall in the rupee was triggered off by the
unexpectedly large October 2011 trade deficit close to USD 20 billion and a
sharp fall in export growth. What made the situation worse was that the market
was largely positioned one way, betting on INR appreciation as the INR had been
very strong on a REER basis over the 12 months, prior to August 2011.
In
near term, the Indian Rupee (INR) will continue to be sensitive to the changes
in investor risk appetite, on the back of the sovereign debt crisis in
peripheral Euro zone economies and USD strength. External fundamentals remain
key and will remain a drag on the Rupee. However, over the medium to long term,
the rupee has appreciation potential on the back of relatively strong growth
fundamentals and improving investment climate, which would attract greater
capital inflows. They expect Rupee to appreciate to 48 levels by March 2012 and
47 levels by December 2012.
Overall
how will the commodities perform in CY 2012 vis-à-vis CY 2011? Which
commodities you are bullish and bearish on for CY 2012 and why?
In
general, they believe that CY 2012 will be a difficult year for commodities as
the global growth is clearly slowing down to sub 3% levels and Euro zone is
staring at a recession. The Chinese soft landing scenario creates a further
downward pressure on global metals.
The
main risk to a weak commodity call in CY 2012 comes from a possibility of
Quantitative Easing-QE 3 in CY 2012 by the US Federal Reserve or an expansion
of the balance sheet by the ECB. In that scenario, the excess liquidity
unleashed in both these scenarios could find itself chasing commodities and
inflating their prices.
Structurally, going forward I see an improvement in the demand
supply equation in the global crude market due to subdued growth of developed
economies, a slow down in the emerging markets, especially in
Infrastructure remains a major laggard. With
policy/execution/reform paralysis in government and high interest rates, what
is the view on this segment’s market performance in CY 2012?
The
performance of infrastructure sector has been disappointing for last 3 years.
The key learning is that infrastructure is not just about constructing
projects. It is about viable business with good cash flows and investments.
They would like to invest in more mature companies which have gone through the
initial learning cycle. The demand-supply for these products and services will
again catch up with the uptick in the economic activity. I don’t think Infra
sector will touch the peak valuation they had traded in CY 2006 and CY 2007.
But, they will not remain at the level where they are today.
With USD
1 trillion being the Planning commission’s Infrastructure target over 5 years,
it is difficult to see infra sector doing badly from these levels in the medium
term. If RBI rate cuts are effected throughout FY 2013, infra sector could get
a boost in earnings as interest costs could reduce from the current levels.
Some clarity on policies from the Government’s side to de-bottleneck access to
land and natural resources as well as a pick up in corporate India’s capex
cycle, going forward, may help in the performance of the infra sector.
What’s
the call on Indian rupee? Don’t you think if rupee continues to depreciate or
even remain at current depreciated levels for long,
The
Indian rupee has found a range in the 51-52 mark in the last few trading
sessions after a sharp fall over the last 8 weeks. The weak global macro and
the persistent Indian current account deficit act as gravity to any sharp
appreciation from here on. The sharp fall in the rupee was triggered off by the
unexpectedly large October 2011 trade deficit close to USD 20 billion and a
sharp fall in export growth. What made the situation worse was that the market
was largely positioned one way, betting on INR appreciation as the INR had been
very strong on a REER basis over the 12 months, prior to August 2011.
In
near term, the Indian Rupee (INR) will continue to be sensitive to the changes
in investor risk appetite, on the back of the sovereign debt crisis in
peripheral Euro zone economies and USD strength. External fundamentals remain
key and will remain a drag on the Rupee. However, over the medium to long term,
the rupee has appreciation potential on the back of relatively strong growth
fundamentals and improving investment climate, which would attract greater
capital inflows. They expect Rupee to appreciate to 48 levels by March 2012 and
47 levels by December 2012.
Overall
how will the commodities perform in CY 2012 vis-à-vis CY 2011? Which
commodities you are bullish and bearish on for CY 2012 and why?
In
general, they believe that CY 2012 will be a difficult year for commodities as
the global growth is clearly slowing down to sub 3% levels and Euro zone is
staring at a recession. The Chinese soft landing scenario creates a further
downward pressure on global metals.
The
main risk to a weak commodity call in CY 2012 comes from a possibility of
Quantitative Easing-QE 3 in CY 2012 by the US Federal Reserve or an expansion
of the balance sheet by the ECB. In that scenario, the excess liquidity
unleashed in both these scenarios could find itself chasing commodities and
inflating their prices.
Structurally, going forward I see an improvement in the
demand supply equation in the global crude market due to subdued growth of
developed economies, a slow down in the emerging markets, especially in
Gold
in
In an
uncertain global market Gold has been historically a classic safe haven and a
proxy to an anti-USD trade. So higher the risk aversion, more is the headroom
for gold to chart higher levels. However, considering that USD itself is
perceived as a safe haven in recent times, and gold priced in USD, gains for
gold could be capped in a risk-off scenario. However, if QE 3 gets announced,
then there could be a meaningful run up in all commodities, especially gold as
Fed expands its balance sheet resulting in the weakening the USD. As a retail
investor, before allocating a sizable part of their investible surplus, it is
important to understand two aspects. One, gold returns have historically been
lumpy and so the run up usually tends to be very sharp and so the entry point
of investment is a critical issue. Two, because of this, there are long periods
of time when gold has remained sideways and underperformed other asset classes.
After
remaining at high levels for past couple of years, can inflation come down in
CY 2012? Will RBI be able to cut interest rate in CY 2012 or the rate will
remain stable? What’s the view on investment in debt in CY 2012?
They
do expect inflation to come down in CY 2012, primarily on the back of base
effects. They also expect some moderation in global commodity prices which
could further mitigate inflationary pressures. This will help RBI in pausing
interest rate hikes in the first half of CY 2012 and provide some room for RBI
to cut interest rates in the second half of CY 2012. This will be beneficial
for debt market investors with a 18 months view, to ride the falling interest
rate cycle.
Gilt
Funds category has been facing net outflows since December 2010, what has been
the reason behind it. Do you see any reversal in the trend in CY 2012?
Reason
for reversal in flows in gilt funds is due to the series of rate hikes by the
RBI resulting in marked to market impact on the NAVs of these funds. The RBI
has effectively tightened rates by 525 Bps in this rate cycle, if one considers
the change in the width of the LAF corridor. Going forward, they could see more
inflows into the gilt funds as the interest rates stabilize and subsequently
chart a falling trajectory. The returns from gilt funds would get a boost from
the marked to market gains when that scenario unfolds in the second half of CY
2012.
What kind
of debt funds would you be recommending to the investors right now and what are
the expected returns from them? Given the expectations of where interest rates
are headed next year, would you be advocating short term plans or longer term
plans which can take advantage of the double indexation facility?
Long tenure debt funds provide the fund manager more flexibility
in managing the duration as the higher duration maintained by the fund manager
will accentuate the returns in a falling interest rate scenario. An investor
can look to invest in longer term debt funds depending on their risk appetite
to benefit from the lower interest rate environment in future, if they have an
18 month horizon.
FIXED ASSETS :
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.55.15 |
|
|
1 |
Rs.86.57 |
|
Euro |
1 |
Rs.67.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVD |
|
|
|
|
Report Prepared
by : |
NID |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.