MIRA
INFORM REPORT
|
Report Date : |
11.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
INDIAFIRST LIFE INSURANCE COMPANY LIMITED w.e.f. 16.09.2009 |
|
|
|
|
Formerly Known
As : |
BARODA L & G LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
19.06.2008 |
|
|
|
|
Com. Reg. No.: |
183679 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 3250.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2008PLC183679 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB19018G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCB6215G |
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|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company. |
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|
|
|
Line of Business
: |
Providing Insurance Services. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
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|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is an established company having moderate track. There appears
some 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
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
Management Non Co-operative name not disclosed
LOCATIONS
|
Registered Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra |
|
Tel. No.: |
91-22-39418700 |
|
Fax No.: |
91-22-33259600 |
|
E-Mail : |
Rubina.kesury@indiafirstlife.com |
|
Website : |
www.indiafirstlife.com |
DIRECTORS
AS ON 28.06.2011
|
Name : |
Mr. Devadas Mallya Mangalore |
|
Designation : |
Chairman |
|
Address : |
Maha Bank
House, Plot No 36, Sub Plot No 53 Cts No 39, Lane No 9, Prabhat Road, Pune –
411004, Maharashtra, India |
|
Date of Birth/Age : |
09.11.1952 |
|
Date of Appointment : |
04.03.2009 |
|
Name : |
Mr. Nandagopal Pothula |
|
Designation : |
Managing Director |
|
Address : |
C-1401, Oberoi Woods,
Mohan Gokhale Road Goregaon East, Mumbai – 400063, Maharashtra, India |
|
Date of Birth/Age : |
21.09.1960 |
|
Date of Appointment : |
05.11.2009 |
|
Name : |
Mr. Vivek H. Thatte |
|
Designation : |
Director |
|
Address : |
5/78, Dnyanayoga Soc, LT.
Road, Vazira Naka, Borivali (W), Mumbai – 400091, Maharashtra, India |
|
Date of Birth/Age : |
25.07.1954 |
|
Date of Appointment : |
11.10.2010 |
|
Name : |
Mr. Rajiv Kumar bakshi |
|
Designation : |
Director |
|
Address : |
6b, Shahnaz Apartment,
90, Nepean Sea Road, Mumbai – 400006, Maharashtra, India |
|
Date of Birth/Age : |
21.10.1952 |
|
Date of Appointment : |
31.01.2010 |
|
Name : |
Mr. Anil Girotra |
|
Designation : |
Director |
|
Address : |
Flat No 101, Suprabath Residency, Road No 4,
Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India |
|
Date of Birth/Age : |
15.09.1951 |
|
Date of Appointment : |
17.07.2009 |
|
|
|
|
Name : |
Mr. Gareth Hoskin |
|
Designation : |
Director |
|
Address : |
Beltring
House, Maidstone Road, Paddock Wood, United Kingdom TN126PY |
|
Date of Birth/Age : |
18.09.1960 |
|
Date of Appointment : |
18.08.2009 |
|
|
|
|
Name : |
Mr. D. Jogiraju |
|
Designation : |
Director |
|
Address : |
Ft. No. 306, Anasuya Aprt., Street No. 8, Himayatnagar,
Hyderabad – 500029, Andhra Pradesh, India |
|
Date of Birth/Age : |
14.10.1951 |
|
Date of Appointment : |
30.11.2010 |
|
|
|
|
Name : |
Mr. Ian Viney |
|
Designation : |
Director |
|
Address : |
14 Ramo Buildings, Nasr
Road, Nasr City, Cairo Egypt 11371 |
|
Date of Birth/Age : |
31.08.1950 |
|
Date of Appointment : |
05.10.2009 |
|
|
|
|
Name : |
Mr. Amarjit Chopra |
|
Designation : |
Director |
|
Address : |
11, Empire Estate, Mg Road, Sultanpur, New Delhi, Delhi
110030, India |
|
Date of Birth/Age : |
27.06.1952 |
|
Date of Appointment : |
21.04.2010 |
|
|
|
|
Name : |
Mr. Uday Sankar Binoy Sankar Roy |
|
Designation : |
Director |
|
Address : |
Flat No 1 - A, Hemantika, 54, Hemanta Mukhopaddhyay Sarani., Kolkatta – 700029, West Bengal |
|
Date of Birth/Age : |
24.07.1949 |
|
Date of Appointment : |
18.03.2010 |
|
|
|
|
Name : |
Mr. Manohar Gopal Bhide |
|
Designation : |
Director |
|
Address : |
A/5, Bageshree, Shankar
Ghanekar Marg, Prabhadevi, Mumabi 400025 Maharashtra, India |
|
Date of Birth/Age : |
14.02.1939 |
|
Date of Appointment : |
09.11.2009 |
|
|
|
|
Name : |
Mr. N R Badrinarayanan |
|
Designation : |
Director |
|
Address : |
Flat No.608, A-Wing, Nugget, Nagu Sayajiwadi, Nr
Samna Press, New Prabhadevi Road, Mumbai – 400025, Maharashtra, India |
|
Date of Birth/Age : |
12.06.1953 |
|
Date of Appointment : |
04.12.2008 |
|
|
|
|
Name : |
Mr. Rakesh Sethi |
|
Designation : |
Director |
|
Address : |
304, Sri Sai Residency,
Behind Hotel Krishna, Erramanzil, Hyderabad – 500082, Andhra Pradesh, India |
|
Date of Birth/Age : |
30.04.1957 |
|
Date of Appointment : |
04.12.2008 |
KEY EXECUTIVES
|
Name : |
Ms. Rubina Habib Husain Kesury |
|
Designation : |
Company Secretary |
|
Address : |
195, Shariff Devji St, 4th
Floor, Room No 33, Mumbai- 400003, Maharashtra ,India |
|
Date of Birth/Age : |
10.11.1977 |
|
Date of Appointment : |
01.09.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 16.08.2011
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Bank of Baroda, Mumbai |
|
208999970 |
|
K. K. Shukla |
|
10 |
|
K. Srinivasa Rao |
|
10 |
|
Ramesh Jayaram |
|
10 |
|
Andhra Bank, Hyderabad |
|
142499980 |
|
K V Kannan |
|
10 |
|
D. Jogiraju |
|
10 |
|
Legal And General Middle East Limited, UK |
|
123500000 |
|
Total |
|
475000000 |
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 |
|
Nationalized or other banks |
74.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Insurance Services. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
GMJ and Co Chartered Accountant |
|
Address : |
3rd and 4th Floor, Vastu Darshan “B” Azad Road,
Andheri (East), Mumbai – 400069, Maharashtra, India |
|
|
|
|
Name : |
G P Kapadia and Co Chartered Accountant |
|
Address : |
Hamam House, Ambalala Doshi Marg, Fort, Mumbai – 400001, Maharashtra,
India |
|
|
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
325,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 3250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Called-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
325,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 3250.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
15.09.2009 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
3250.000 |
2000.000 |
370.000 |
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
3] Reserves & Surplus |
1300.000 |
1300.000 |
240.500 |
|
4] Credit/(Debt) Fair Value Change Mutual Fund Account |
0.605 |
4.400 |
0.000 |
|
4] (Accumulated Losses) |
(1167.912) |
(520.387) |
(72.466) |
|
SUB TOTAL (A) |
3382.693 |
2784.013 |
538.034 |
|
|
|
|
|
|
BORROWING |
0.000 |
0.000 |
0.000 |
|
SUB TOTAL (B) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
Credit / Debit Fair Value Change Account |
0.000 |
0.000 |
0.000 |
|
Policy Liabilities |
354.882 |
12.513 |
0.000 |
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
Provision for Linked Liabilities |
9005.420 |
1734.651 |
0.000 |
|
SUB TOTAL (C) |
9360.302 |
1747.164 |
0.000 |
|
|
|
|
|
|
Funds for Future Appropriation |
52.428 |
0.236 |
0.000 |
|
SUB TOTAL (D) |
52.428 |
0.236 |
0.000 |
|
|
|
|
|
|
Total (E) = (A)
+ (B) + (C) + (D) |
12795.423 |
4531.413 |
538.034 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
Investment |
|
|
|
|
Shareholders |
3085.999 |
3286.578 |
305.038 |
|
Policyholders |
464.421 |
12.519 |
0.000 |
|
Assets Held to Cover Linked Liabilities |
9057.735 |
1734.888 |
0.000 |
|
Loans |
0.000 |
0.000 |
0.000 |
|
Fixed Assets |
331.300 |
290.788 |
9.470 |
|
SUB TOTAL (F) |
12939.455 |
5324.773 |
314.508 |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash & Bank Balances |
2313.428
|
153.355 |
241.790 |
|
Advances Other Current Assets |
387.110
|
66.532 |
0.426 |
|
SUB TOTAL (G) |
2700.538
|
219.887 |
242.216 |
|
|
|
|
|
|
Sundry Creditors |
254.168
|
372.901 |
NA |
|
Current
Liabilities |
2589.448
|
637.492 |
18.392 |
|
Provisions |
0.954
|
2.854 |
0.298 |
|
SUB TOTAL (H) |
2844.570
|
1013.247 |
18.690 |
|
|
|
|
|
|
Net Current
Assets/(Liabilities) (I)= (G)-(H) |
(144.032) |
(793.360) |
223.526 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
TOTAL (K)= (F)+(I) |
12795.423 |
4531.413 |
538.034 |
REVENUE
ACCOUNT FOR THE YEAR ENDED 31 MARCH 2011
Policyholders
Account (Technical Account)
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
|
|
Premiums earned
– Net |
|
|
|
|
(a) Premium |
7984.288 |
2016.001 |
|
|
(b) Reinsurance ceded |
(6.158) |
(0.040) |
|
|
(c) Reinsurance accepted |
0.000 |
0.000 |
|
|
|
7978.130 |
2015.961 |
|
|
|
|
|
|
|
Income from
Investments |
|
|
|
|
(a)
Interest, Dividends & Rent – Gross |
106.474 |
|
|
|
(b)
Profit on sale/redemption of investments |
159.275 |
5.511 |
|
|
(c)
(loss on sale/redemption of investments) |
(9.935) |
(0.383) |
|
|
(d)
Transfer/Gain on revaluation/charge in fair value |
114.093 |
41.271 |
|
|
(e)
Amortisation of premium / discount on investments |
34.902 |
* 0.000 |
|
|
Other Income |
|
|
|
|
(a)
Miscellaneous income |
7.226 |
1.785 |
|
|
(b)
Contribution from shareholders account |
892.285 |
509.457 |
|
|
Total (A) |
9282.450 |
2576.883 |
|
|
|
|
|
|
|
Commission |
269.199 |
145.572 |
|
|
Operating expenses related to insurance business |
1306.289 |
682.236 |
|
|
Provision for doubtful debts |
0.000 |
0.000 |
|
|
Bad debts written off |
0.000 |
0.000 |
|
|
Provision for tax |
0.000 |
0.00 |
|
|
Provisions (other than taxation) |
0.000 |
0.000 |
|
|
(a)
For diminution In the value of investments (net) |
0.000 |
0.000 |
|
|
(b)
Others |
0.000 |
0.000 |
|
|
Prior Period Expenses |
2.741 |
0.000 |
|
|
Total (B) |
1578.229 |
827.808 |
|
|
|
|
|
|
|
Benefits Pad (Net) |
38.845 |
1.674 |
|
|
Interim Bonuses Paid |
0.000 |
0.000 |
|
|
Change in valuation of liability in respect of life policies |
0.000 |
0.000 |
|
|
(a)
Gross |
342.369 |
12.513 |
|
|
(b)
Fund reserve |
7270.769 |
1734.651 |
|
|
(c)
Amount ceded in Reinsurance |
0.000 |
0.000 |
|
|
(d)
Amount accepted in Reinsurance |
0.000 |
0.000 |
|
|
Total (C) |
7651.983 |
1748.838 |
|
|
Surplus/(Deficit) (D)= (A)-(B)-(C) |
52.238 |
0.237 |
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
Transfer to shareholders account |
0.046 |
0.000 |
|
|
Transfer to other reserves |
0.000 |
0.000 |
|
|
Balance being funds for future appropriations |
52.192 |
0.237 |
|
|
Total (D) |
52.238 |
0.237 |
* AS MENTIONED IN THE FILED
DOCUMENTS.
PROFIT & LOSS
ACCOUNT FOR THE YEAR ENDED 31MARCH 2011
Shareholders Account
(Non Technical Account)
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
15.09.2009 |
|
|
Amount
Transferred from Policy Holders Account (technical Account) |
0.046 |
--- |
--- |
|
|
|
|
|
|
|
|
Income from
investments |
|
|
|
|
|
(a)
Interest, Dividends & Rent – Gross |
109.459 |
51.104 |
0.378 |
|
|
(b)
Profit on sale/redemption of investments |
66.880 |
24.141 |
0.038 |
|
|
(c)
(loss on sale/redemption of investments) |
(11.365) |
(0.029) |
---- |
|
|
(d)
(Amortisation of premium) / discount on investments |
88.951 |
(4.963) |
---- |
|
|
|
|
|
|
|
|
Other Income |
0.002 |
---- |
--- |
|
|
|
|
|
|
|
|
Total (A) |
253.973 |
70.253 |
0.416 |
|
|
|
|
|
|
|
|
Expense other than those directly related to the insurance business |
9.213 |
0.180 |
72.875 |
|
|
|
|
|
|
|
|
Bad debts written off |
--- |
--- |
--- |
|
|
|
|
|
|
|
|
Provisions (other than taxation) |
|
|
|
|
|
(a)
For diminution in the value of investments (net) |
--- |
--- |
---- |
|
|
(b)
Provisions for doubtful debts |
--- |
--- |
--- |
|
|
(c)
Others |
--- |
--- |
---- |
|
|
Prior Period Expenses |
|
8.537 |
--- |
|
|
Amount Transferred to the Policyholders
Account |
892.285 |
509.458 |
--- |
|
|
Total (B) |
901.498 |
518.175 |
72.875 |
|
|
|
|
|
|
|
|
Profit/(Loss) before tax |
(647.524) |
(447.921) |
(72.459) |
|
|
Provision for Taxation |
--- |
--- |
(0.007) |
|
|
Profit/(Loss) after tax |
(647.524) |
(447.921) |
(72.466) |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
(a)
Balance at the beginning of the year/period |
(520.387) |
(72.466) |
--- |
|
|
(b)
Interim dividends paid during the year period |
---- |
---- |
--- |
|
|
(c)
Proposed final dividend |
---- |
---- |
--- |
|
|
(d)
Dividend distribution tax |
---- |
---- |
--- |
|
|
(e)
Transfer to reserves/Other accounts |
---- |
---- |
--- |
|
|
|
|
|
|
|
|
Loss carried to the Balance Sheet |
(167.912) |
(520.387) |
(72.466) |
|
|
|
|
|
|
|
|
Earning per Share (Basic and Diluted, Face
Value Rs. 10) |
(2.36) |
(2.63) |
(44.36) |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No
|
|
17)
Major suppliers |
No |
|
18)
Major customers |
No |
|
19)
Payments terms |
No |
|
20)
Export / Import details (if applicable) |
-- |
|
21)
Market information |
-- |
|
22)
Litigations that the firm / promoter involved in |
-- |
|
23)
Banking Details |
No
|
|
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
|
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2011 (Rs.
in millions) |
31.03.2010 (Rs.
in millions) |
15.09.2009
(Rs.
in millions) |
|
Sundry Creditors |
254.168 |
372.901 |
-- |
BACKGROUND
The Company, headquartered at Mumbai, had
commenced operations on 16th November 2009, after receiving the license to
transact life insurance business in India from the Insurance Regulatory and Development
Authority ('IRDA') on 5th November 2009. The license has been renewed regularly
and is in force as at 31 March, 2011.
The Company is a joint venture between Bank
of Baroda (44 percent), Andhra Bank (30 percent) and Legal and General, Middle
East., subsidiary of Legal and General, UK (26 percent).
The Company carries on business in the areas
of Life Insurance & pensions. This business spans across individual and
group products and covers participating, non-participating and unit linked
lines of business. Riders covering additional benefits are offered under these
products. These products are distributed through individual agents, corporate
agents, banks, brokers and the company's proprietary sales force.
FINANCIAL PERFORMANCE
The
Company in its second year of operations has surpassed expectations inspite of
the challenging economic environment.
In
terms of sales performance, the Company delivered a strong performance in its
second year of operations as compared to the industry growth rate.
In
the Third Annual Report, the Company recorded a loss of Rs. 647.52 Mn. The loss
originates predominantly from investments in human resources and infrastructure
necessary to build up a company that will be able to compete in an increasingly
competitive, crowded but still strongly growing industry. The gross premium
income of the organisation is Rs 7,978 million.
The
total assets under management (AUM) as on 31st March 2010 were Rs.
12,612 Mn. The ability to provide strong investment performance in all market
conditions is a key strength of the Company.
During
the year, the Company introduced following products viz., IndiaFirst Anytime
Plan, IndiaFirst Life Plan, IndiaFirst Simple Life Plan, IndiaFirst Secure Save
Plan, IndiaFirst Smart Save Plan, IndiaFirst Young India Plan, IndiaFirst Group
Credit Life Plan, IndiaFirst Group Term Plan, IndiaFirst Employee Benefit Plan
Fixed Assets
·
Goodwill
·
Intangibles (software)
·
Land-Freehold
·
Leasehold Improvments
·
Buildings
·
Furniture and Fittings
·
Information Technology
·
Equipment
·
Vehicles
·
Office Equipment
AS PER WEB SITE
COMPANY BACKGROUND
Subject
is one of the youngest life insurance companies in India with a rich legacy of
over 360 years of combined service of its promoters - Bank of Baroda, Andhra
Bank and Legal & General.
This
joint venture brings together a real understanding of the Indian consumers by
the promoter banks with international best practices developed by Legal &
General. Shri. Pranab Mukherjee, Honorable Finance Minister, Government of
India launched their nationwide operations in Delhi in
March, 2010
Headquartered
in Mumbai, with a capital base of Rs. 6050.000 millions. Bank of Baroda holds a
44 per cent stake in IndiaFirst, while Andhra Bank and Legal & General hold
a 30 per cent and 26 per cent stake respectively.
They
have already achieved substantial progress during their first year of
operation. They set up new benchmarks in bancassurance in terms of branch
activisation, productivity and customer friendly sales processes. They aim to
place their customers 'First' in everything they do and believe they can
differentiate theirselves through simple, easy to understand products, fair
price, high quality service and honest advice.
They
have initially focused on the bancassurance model leveraging the existing
branch network of over 4,800 branches of their promoter banks across the
country. They plan to further strengthen our distribution reach through their
alternate channel of distribution.
This
combination of domain expertise, customer knowledge, product innovation
andnationwide reach has helped us cross the Rs. 9000.000 millions mark in new
business premium within 500 days of their operations and cover over 1.2 million
lives across more than 1000 cities and towns in India.
Their
product range covers the typical needs of protection (term insurance), savings,
education, retirement and health. They also have a wide range of group insurance products ranging
from credit life, term and employee
liability (gratuity and leave encashment) plans. They will follow
this with a whole range of pension and wealth accumulation plans shortly.
THEIR PROMOTERS
Bank of Baroda is one of the largest public sector banks in
the country with an enviable network of over 3050 branches that spreads across
the geography of India and over 70 branches across 22 countries globally. This
behemoth financial institution is over 100 years
old and has been built on financial prudence, corporate
governance and most importantly – the trust of valuable customers like you.
Andhra Bank has been serving the Indian customer for over 85
years and currently has a network of over 1557 branches. The bank has developed
best in class deposit and lending schemes for its valued customers.
Both the banks are nationalized and provide best in class
products and services to their customers.
Legal & General is one of UK's leading financial
institutions with a heritage of over 150 years. It provides life assurance,
pensions, investments and general insurance plans to over 5.5 million customers
across UK. It brings rich fund management and insurance experience to India.
Press Release
IndiaFirst
Life garners over Rs. 10000.000 millions premium in FY 2011-12
·
Company sees substantial growth of over 40% y-o-y
·
Corporate/ Group business increased by 3 fold
·
Increased foothold in rural India by tying up with
10 Regional Rural Banks
·
Consistent expense ratio in the range of 19-20%
·
Approximately 1.6 million lives* covered till date
Mumbai, 4th April
2012: IndiaFirst Life Insurance, a joint venture between two of India's largest
public sector banks - Bank of Baroda and Andhra Bank along with UK's leading
risk, wealth and investment company Legal & General, has managed to achieve
substantial growth of over 40% y-o-y by garnering over Rs. 10000.000 millions
premium during FY 2011-12.
The announcement was made by Dr. P. Nandagopal, Managing Director &
CEO, IndiaFirst Life Insurance.
IndiaFirst has been able to achieve this feat of garnering over Rs. 1000
crore of premium in a single financial year, i.e. in its second full year of
operations itself.
“We believe staying true to our
promise of providing fair value to all stakeholders – customers, distributors,
employees and shareholders – has been the reason for our success so far. Being incorporated in November, 2009 we have
approximately covered 1.6 million lives.
The trust displayed by our customers, distributors and shareholders in
us, adds to our responsibility of ensuring continuous innovation to keep
providing enhanced value,” said Dr. Nandagopal.
This year saw IndiaFirst Life launch various innovative products such as
the IndiaFirst Money Back Health Insurance Plan and the IndiaFirst Money
Balance Plan. With innovative/ unique
features, both plans have been well received by the market.
“We have launched various initiatives in our quest to always place our
customers ‘First’ in everything we do – right from developing simple, easy to
understand products that are fairly priced, to simplifying insurance and making
it transparent through our sales literature and product AVs. Our digital channel LifeStore and
over-the-counter insurance process Ask-Apply-Get attempt at developing a new
paradigm of generating pull for life insurance,” added Dr. Nandagopal
Last financial year, IndiaFirst surpassed its rural and social obligations
laid down by the regulator. The company
acquired 14% of its business from rural India and covered 5,27,589 lives
against 5,000 lives – truly taking the benefits of life insurance to the door
steps of customers across the country, irrespective of their location. This year the company has further increased
its presence in the rural hinterland of India by tying up with 10 Regional
Rural Banks.
IndiaFirst Life has crossed Rs. 25000.000 millions in total Assets Under
Management (AUM) at the close of 31st March, 2012.
INDIAFIRST LIFE GOES RURAL, TIES UP WITH BARODA UTTAR PRADESH GRAMIN
BANK
· Aims to reach out to its rural customers and take the benefit of insurance to masses
· Expects to cover about 15,00,000 accounts in 3 years
· Expects to cover approximately 20,00,000 accounts from the new tie-up in the next 3 years
· Has already achieved 1% of target on Launch Day, did 175 NOPs with 19Lacs Premium
October 24th, 2011: IndiaFirst Life Insurance, a joint venture between two of India's largest public sector banks - Bank of Baroda and Andhra Bank along with UK's leading risk, wealth and investment company Legal & General, today announced that it has tied up with Baroda Uttar Pradesh Gramin Bank (BUPGB) in Raebareilly to reach out to its customers in the hinterland of Uttar Pradesh.
The announcement was made by Mr. Shridhar Balakrishna, Group Head-North Zone, IndiaFirst Life Insurance. Mr. Nirmesh Kumar, Chairman, BUPGB, Mr. Subhash. C. Ahuja, General Manager, Bank of Baroda (UP and Uttaranchal) and Mr. C. L. Gupta, General Manager, BUPGB and other board members were also present at the occasion.
The insurable population of the functional area is about 72 lakhs from which the company expects to cover nearly 20 lakhs accounts in a time line of three years. The nature of the tie-up will be through corporate agencies. Through this tie-up with BUPGB, IndiaFirst will reach over 678 branches across 7 regions.
Commenting on the occasion, Mr. Sridhar said, “It gives me great pleasure to announce our tie-up with Baroda Uttar Pradesh Gramin Bank. We believe that the rural market plays a very instrumental role in the Indian insurance sector and more particularly in our business. Thus insuring the wider populace that lives in the rural sector of the country in a long term business like ours will be a game changer in an emerging economy.”
“IndiaFirst is one of the four strong pillars which will contribute in the overall business growth of the bank long term. I am sure this tie up with help us offers our rural customers a complete basket of financial products” said Mr. Nirmesh Kumar.
Mr. Ahuja added, “Uttar Pradesh has been one of the top performing zones for our life insurance business. We are sure this trend will continue with the current tie up that helps us bring insurance benefits truly to our customer’s door steps”
It is accredited with surpassing its rural and social obligations laid down by the insurance regulators - Insurance Regulatory and Development Authority (IRDA). The company met rural obligation at 14% vis-avis obligation of 7% and in social obligation, they had covered 5,27589 lives against 5,000 lives – truly taking the benefits of life insurance to the door steps of customers across the country, irrespective of their location.
IndiaFirst has also tied up with SERP (Society for elimination of Rural poverty), an autonomous society of the Department of Rural Development, Government of Andhra Pradesh to provide cover to all members of Self Help Groups in the state of Andhra Pradesh. The project will cover 1.5 -1.75 crore women who take small loans from the banks. This tie up is a part of its social sector obligation.
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.55.36 |
|
|
1 |
Rs.85.63 |
|
Euro |
1 |
Rs.69.21 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
NLM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.