MIRA INFORM REPORT
|
Report Date : |
22.09.2012 |
|
|
|
IDENTIFICATION DETAILS
|
Name : |
RELIANCE LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Formerly Known
As : |
AMP SANMAR ASSURANCE COMPANY PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Kopar Khairne,
Navi
Mumbai – 400710, Maharashtra |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
14.05.2001 |
|
|
|
|
Com. Reg. No.: |
11-167089 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.
11963.235 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2001PLC167089 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR22066C/ MUMR10441E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCA1410E |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Life Insurance Solutions and Annuity Business. |
|
|
|
|
No. of Employees
: |
13183 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 36000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Good |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Reliance Group and it has wide network all over. It is having satisfactory track record. There appear huge accumulated
loss. But in the year 2010-2011 company has performed good. Fundamental are
healthy and strong. Trade relations are reported to be fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered for normal 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 : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Kopar Khairne,
Navi
Mumbai – 400710, Maharashtra, India |
|
Tel. No.: |
91-22-30002000 |
|
Fax No.: |
91-22-30002222 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
9th floor/10th floor, Building No. 2, R-Tech Park, Nirlon Compound,
Next to Hub Mall, Behind I- Flex building, Goregaon, (East), Mumbai-400063,
Maharashtra, India |
|
Tel. No.: |
91-22-30002000 |
|
Fax No.: |
91-22-30002222 |
DIRECTORS
AS ON 25.07.2011
|
Name : |
Mr. Satya Pal Talwar |
|
Designation : |
Director |
|
Address : |
163, Beach Towers, P Ballu Marg, prabhadevi, Mumbai – 400025,
Maharashtra, India |
|
Date of Birth/Age : |
14.06.1939 |
|
Date of Appointment : |
04.10.2005 |
|
DIN No.: |
00059681 |
|
|
|
|
Name : |
Mr. Rajendra Prabhakar Chitale |
|
Designation : |
Director |
|
Address : |
131/B, Tanna Residency Bayview, opposite Siddhi Vinayak Temple, 392,
V.S. Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India |
|
Date of Birth/Age : |
10.04.1961 |
|
Date of Appointment : |
17.05.2010 |
|
DIN No.: |
00015986 |
|
|
|
|
Name : |
Mr. Soumen Ghosh |
|
Designation : |
Director |
|
Address : |
Flat No. 1302, 13th Floor, Orbit Towers, 833, Senapati
Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India |
|
Date of Birth/Age : |
08.06.1959 |
|
Date of Appointment : |
23.04.2008 |
|
DIN No.: |
01262099 |
|
|
|
|
Name : |
Mr. Malay Kumar Ghosh |
|
Designation : |
Director |
|
Address : |
Flat No. 1601/ 02, Wing F, Whispering Palms, XXclusive, Lokhandwala, Kandivali
(East), Mumbai – 400101, Maharashtra, India |
|
Date of Birth/Age : |
01.10.1959 |
|
Date of Appointment : |
17.05.2010 |
|
DIN No.: |
02847277 |
|
|
|
|
Name : |
Mr. Amit Bapna |
|
Designation : |
Director |
|
Address : |
503, Purna Apartments, Sir Pochkanwala Road, Worli, Mumbai – 400030,
Maharashtra, India |
|
Date of Birth/Age : |
20.01.1975 |
|
Date of Appointment : |
05.04.2011 |
|
DIN No.: |
00008443 |
KEY EXECUTIVES
|
Name : |
Saroj K Panigrahi |
|
Designation : |
Head –
Legal, Compliance and Company Secretary |
|
Date of Appointment : |
12.12.2006 |
|
PAN No.: |
AIPPP4774M |
|
|
|
|
Name : |
Andleeb
Rabbi |
|
Designation : |
Chief
Human Resources Officer |
|
|
|
|
Name : |
S V Sunder
Krishnan |
|
Designation : |
Executive
Vice President and Chief Risk Officer |
|
|
|
|
Name : |
Sunil
Agrawal |
|
Designation : |
Chief
Financial Officer |
|
|
|
|
Name : |
Pournima
Gupte |
|
Designation : |
Appointed
Actuary |
|
|
|
|
Name : |
Manoranjan
Sahoo |
|
Designation : |
Head-
Agency |
|
|
|
|
Name : |
Murli
Nambiar |
|
Designation : |
Chief
Technology Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 25.07.2011
|
Names of Shareholders |
|
No. of Shares |
|
Amitabh Jhunjhunwala |
|
1 |
|
Gautam Doshi |
|
1 |
|
Surendra Pipara |
|
1 |
|
Satish Seth |
|
1 |
|
Viscount Management Services Limited, India |
|
418759195 |
|
Viscount Management Services (Alpha) Limited, India |
|
558345600 |
|
Reliance Capital Limited, India |
|
186115201 |
AS ON 07.10.2011
|
Names of Allottees |
|
No. of Shares |
|
Nippon Life Insurance Company-Body Corporate, Japan |
|
30478600 |
|
Total |
|
30478600 |
AS ON 25.07.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
99.77 |
|
Others |
|
0.23 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance Solutions and Annuity Business. |
GENERAL INFORMATION
|
No. of Employees : |
13183 (Approximately) |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
V. Soundararajan and Company Chartered Accountants |
|
Address : |
Ground Floor, Real Emerald Estate New No 6/3, II Canal Cross Road, Gandhi
Nagar, Adyar, Chennai – 600020, Tamilnadu, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAASV0357M |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Pathak H. D. and Associates Chartered Accountants |
|
Address : |
709, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAAFP1031C |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,200,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 22000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,196,323,500 |
Equity Share |
Rs.10/- each |
Rs.
11963.235 Millions |
|
|
|
|
|
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 |
|
|
|
|
|
1] Share Capital |
11963.235 |
11658.449 |
11646.449 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
21980.263 |
19285.040 |
18097.040 |
|
|
4] (Accumulated Losses) |
(24862.011) |
(28031.566) |
(26738.656) |
|
|
5] credit/(Debit) / Fair
Value Change account |
(22.675) |
17.996 |
20.664 |
|
|
NETWORTH |
9058.812 |
2929.919 |
3025.497 |
|
|
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
(97.323) |
64.798 |
67.749 |
|
|
Policy Liabilities |
17757.191 |
9309.590 |
4875.807 |
|
|
Insurance Reserves |
--- |
-- |
-- |
|
|
TOTAL BORROWING |
17659.868 |
9374.388 |
4943.556 |
|
|
|
|
|
|
|
|
Provision for linked liabilities |
157113.331 |
163454.542 |
127011.488 |
|
|
Funds for Discontinued Policies |
|
|
|
|
|
i) Discontinued on account of non-payment of premium |
367.100 |
0.440 |
-- |
|
|
II) Others |
-- |
-- |
-- |
|
|
TOTAL LINKED
LIABILITIES |
157480.431 |
163454.982 |
127011.488 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
|
|
|
|
|
Non-Linked |
495.120 |
539.054 |
387.317 |
|
|
Linked-Provision for lapsed policy not likely to be revived |
1697.435 |
1409.002 |
639.101 |
|
|
TOTAL |
186391.666 |
177707.345 |
136006.959 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
69.603 |
81.340 |
139.680 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
|
|
|
Shareholders |
9975.585 |
3777.474 |
3693.120 |
|
|
Policyholders |
18512.455 |
9911.206 |
5264.526 |
|
|
Assets held to cover linked liabilities
|
159177.866 |
164863.984 |
127650.589 |
|
|
Loans |
317.009 |
307.962 |
301.777 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000
|
|
|
Cash & Bank Balances |
1995.536
|
2722.027
|
4987.798
|
|
|
Other Assets |
2781.592
|
1914.009
|
1195.404
|
|
|
Loans & Advances |
163.892 |
142.586 |
149.781 |
|
Total
Current Assets |
4941.020
|
4778.622
|
6332.983
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3597.398
|
3717.218
|
5030.413
|
|
|
Current Liabilities |
2442.803
|
2296.025
|
2320.960
|
|
|
Provisions |
561.671
|
--
|
24.343
|
|
Total
Current Liabilities |
6601.872
|
6013.243
|
7375.716
|
|
|
Net Current Assets |
(1660.852)
|
(1234.621)
|
(1042.733)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
TOTAL |
186391.666 |
177707.345 |
136006.959 |
|
REVENUE ACCOUNT
(Technical Account)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Premium Earned –
Net |
|
|
|
|
a) Premium |
54976.192 |
65711.464 |
66048.962 |
|
b) Reinsurance Ceded |
(273.739) |
(232.912) |
(165.569) |
|
c) Reinsurance accepted |
-- |
-- |
-- |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend and Rent – Gross |
4357.820 |
4011.926 |
2449.674 |
|
b) Profit on sale / Redemption of investments |
20105.630 |
9477.672 |
6771.301 |
|
c) (Loss) on sale / Redemption of investments |
(13838.641) |
(2939.680) |
(1837.523) |
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
(17820.944) |
4073.731 |
27026.231 |
|
e) Amortisation of premium/ discount on investments |
1786.309 |
450.551 |
131.637 |
|
Transferred from Shareholders fund |
296.142 |
1658.095 |
3053.390 |
|
Other Income (Miscellaneous Income) |
1025.734 |
520.489 |
86.413 |
|
Sub-Total (A) |
50614.503 |
82731.336 |
103564.516 |
|
Commission |
3980.337 |
5148.021 |
6278.549 |
|
Operating expenses related to insurance business |
12812.500 |
15627.014 |
16367.325 |
|
|
|
|
|
|
Provision for Doubtful debts |
-- |
-- |
-- |
|
Bad debts written off |
-- |
-- |
-- |
|
Provision for tax |
-- |
-- |
-- |
|
Provision (other
than taxation) |
|
|
|
|
a) for diminution in value of investments (net) |
-- |
-- |
-- |
|
b) others |
-- |
-- |
-- |
|
Total (B) |
16792.837 |
20775.035 |
22645.874 |
|
|
|
|
|
|
Benefits paid (Net) |
27559.657 |
20115.947 |
6934.192 |
|
Bonuses Paid |
4.493 |
0.927 |
0.520 |
|
Change in valuation
of liabilities in respect of life policies |
|
|
|
|
a) Gross** |
|
|
|
|
Linked Segment liability |
(5418.616) |
36433.030 |
|
|
Nin-Linked Segment liability |
7891.666 |
4444.248 |
|
|
b) Amount ceded in Re-insurance |
-- |
-- |
-- |
|
c) Amount accepted in Re-insurance |
-- |
-- |
-- |
|
Total (C) |
30037.200 |
60994.152 |
80050.943 |
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
3784.466 |
962.149 |
867.699 |
|
Appropriations |
|
|
|
|
Transfer to shareholders account |
3539.967 |
40.511 |
-- |
|
Transfer to other reserves |
-- |
-- |
-- |
|
Balance being funds for future appropriation |
244.499 |
921.638 |
867.699 |
|
Total (D) |
3784.466 |
962.149 |
867.699 |
|
|
|
|
|
|
The break-up for
the surplus is as below :- |
|
|
|
|
a) interim Bonuses paid |
4.493 |
0.927 |
0.520 |
|
b) allocation of bonus to policyholders |
1119.301 |
683.983 |
215.873 |
|
c) surplus shown in the revenue account |
3784.466 |
962.149 |
867.699 |
|
Total Surplus
[(a)+(b)+(c)] |
4908.260 |
1647.059 |
1084.092 |
PROFIT & LOSS
ACCOUNT (Non-Technical Account)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Amounts transferred from the Policyholders Account (Technical Account) |
3539.967 |
40.511 |
-- |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend and Rent – Gross |
328.897 |
265.847 |
199.252 |
|
b) Profit on sale / Redemption of investments |
258.239 |
72.946 |
92.180 |
|
c) (Loss) on sale / Redemption of investments |
(13.721) |
(24.137) |
(47.645) |
|
e) Amortisation of premium/ discount on investments |
30.627 |
23.427 |
13.615 |
|
Other Income |
-- |
-- |
-- |
|
Sub-Total (A) |
604.042 |
338.083 |
257.402 |
|
|
|
|
|
|
Expense other
than those directly related to the insurance business |
|
|
|
|
(a) Salaries and other expenses |
122.154 |
13.409 |
41.895 |
|
(b) Fees for increase in Authorised Share Capital |
-- |
-- |
-- |
|
(c) Wealth Tax |
-- |
-- |
1 |
|
(d) Depreciation |
-- |
-- |
-- |
|
(e) Preliminary Expenses Written Off |
-- |
-- |
-- |
|
Bad debts written off |
-- |
-- |
-- |
|
Transfer to Policyholders' fund |
296.142 |
1658.095 |
3053.390 |
|
Provisions (Other than taxation) |
|
|
|
|
(a) For diminution in the value of investments (Net) |
-- |
-- |
-- |
|
(b) Provision for doubtful debts |
-- |
-- |
-- |
|
(c) Others |
-- |
-- |
-- |
|
Sub-Total (B) |
418.296 |
1671.504 |
3095.286 |
|
Profit / (Loss) before tax |
3725.713 |
(1292.910) |
(2837.884) |
|
Provision for Taxation |
-- |
-- |
-- |
|
Profit / (Loss) after tax |
3725.713 |
(1292.910) |
(2837.884) |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
(a) Balance at the beginning of the year |
(28031.566) |
(26738.656) |
(23900.772) |
|
(b) Interim dividends paid during the year |
-- |
-- |
-- |
|
(c) Proposed final dividend |
478.529 |
-- |
-- |
|
(d) Dividend distribution tax |
77.629 |
-- |
-- |
|
(e) Transfer to reserves / other accounts |
-- |
-- |
-- |
|
Profit / (Loss) carried forward to the Balance Sheet |
(24862.011) |
(28031.566) |
(26738.656) |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Sundry Creditors |
3597.398
|
3717.218
|
5030.413
|
|
|
|
|
|
|
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 |
Yes |
|
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) |
No |
|
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 |
|
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 |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Partly paid-up investments |
-- |
450.000 |
|
Claims, other
than against policies, not acknowledged as debts by the Company |
152.725 |
133.273 |
|
Underwriting commitments outstanding |
-- |
-- |
|
Guarantees given
by or on behalf of the Company |
-- |
-- |
|
Statutory demands
/ liabilities in dispute, not provided for |
163.105 |
106.821 |
|
Reinsurance
obligations to the extent not provided for in the accounts. |
-- |
-- |
|
Others – Policy Related Claims |
180.283 |
64.694 |
|
Total |
496.113 |
754.788 |
======================================================================================
(AS ON 31.03.2011)
BRIEF OVERVIEW
The Company, Reliance Life Insurance Company Limited, was incorporated on May 14, 2001 and obtained the Certificate of Registration bearing no. 121 from Insurance Regulatory and Development Authority (IRDA), Hyderabad on January 03, 2002. IRDA has renewed the Company’s licence to carry on the business of life insurance for the year 2011-12.
The Company has completed its five full year of operations subsequent to the take over of the ownership and control of the Company by Reliance Capital Limited and other companies in Reliance Group.
The shareholders envision and the Company endeavours to achieve leadership position in the private life insurance industry and be recognized as the leading integrated provider of life insurance solution.
PRODUCTS
The Company is keen on spotting the emerging trends in the insurance market and capitalize on these to the ultimate benefit of the customers. Keeping in mind the growing sophistication of the Indian consumers and in the face of the competitive environment, the company has been offering a variety of traditional and unit-linked products, which provide risk cover, savings benefits, investment and a combination of these.
DISTRIBUTION CHANNELS
AGENCY NETWORK
During the year, the company operated its agency network from 1247 offices as on March 31, 2011. The quality of the field organization has been the prime focus of the company and in this pursuit the company has set a high recruitment standard. In order to face the market competition, continuous training programs are being conducted extensively on all the products of the company apart from the training required under the IRDA Regulations. The Company is proud to mention that 5 licensed individual Advisors qualified for "Top of the Table" (TOT) and 19 licensed individual Advisors qualified for “Court of the Table” (COT) Honors and the number of “Million Dollar Round Table” (MDRT) qualifiers were 287 for the year 2011. The company through its expense management could successfully reduce the operating expense as compared to the last financial year. As on March 31, 2011, the channel contributed 59% of the overall business.
ALTERNATE CHANNELS
THIRD PARTY
DISTRIBUTION
The Company has set up the third party distribution channel in full swing in order to provide rapid top line growth, to cater to specific customer segments, provide wider reach and establish ready client confidence.
The distribution channel has a mix of corporate agents and brokers. The distribution network is spread to nearly 15,999 points of sale through 66 brokers and 106 corporate agents. As on March 31, 2011, the channel contributed 29% of the overall business.
GROUP BUSINESS
Recognising the potential of the Group Insurance market, the Employee Benefit channel through a dedicated employee sales force has been put in place focusing the corporate customers in eleven locations across India to sell the group products.
As on March 31, 2011, the channel contributed 12% of the overall business. The company has expanded its customer base to include companies from all sectors including public sector undertakings, cooperative banks, multinationals and Indian companies.
RURAL AND SOCIAL SECTOR OBLIGATIONS
The Company’s commitment to rural and social sector drives its high level of service to the underprivileged in tandem with fulfilment of the regulatory requirements. Keeping in view the importance of the rural business segment, the Company has focused to cater on the growing requirements of rural areas. The Company has the objective of gaining the first mover advantage in the rural segment harvesting the economic potential which would make rural business a profitable portfolio and significant contributor to the Company's total business.
During the year the company sold 6,08,860 policies in rural areas which comprise 32% of its total policies sold as compared to 30.39% of last year. The company covered 1,47,476 additional lives during the year under the social sector as compared to the 3,90,275 during the last year.
As a result, the mandatory quantum of business 19% of total business and 45,000 lives respectively in the rural and social sector, in terms of the provisions of Insurance Regulatory and Development Authority (Obligation of Insurers to Rural or Social Sectors) (Fourth Amendment) Regulations, 2008, has been complied with during the year 2010-11 with a very comfortable margin.
BRAND INITIATIVES AND CORPORATE COMMUNICATION
To ensure brand visibility, the company undertook two key campaigns during the year namely, the “Reliance Life Insurance Money Multiplier Plan Campaign” and the “Boundaries for Books Campaign”. The Reliance Life Insurance Money Multiplier Plan Campaign has created significant product awareness has driven brand consideration. The mass media campaign was deployed with TV as a lead medium supported with Radio, Outdoor and Cinema advertising. The core proposition being ‘Time is Money’ the campaign aided the sales force to get a significant edge in the market.
UNDERWRITING AND OPERATIONS
The company’s focused endeavour has ensured constant innovation to advance levels of processes, effective risk selection and expansion of it’s operational base. The company’s sound underwriting practices have ensured enhancement of mortality profits and delivery of returns to the shareholders by way of effective risk selection. With over 24 lakhs policies processed during the year, the company continues to administer a clear, consistent and evolving strategy focused to meet the needs of its customers through the delivery of integrated solutions. The company have achieved in reducing its dependency on manual intervention by increasing underwriting and policy issuance automation aiming to achieve sustainable and profitable growth delivering returns to the shareholders.
The company continues to offer best medical service to the clients through their empanelled network of more than 3,000 medical and diagnostic centers spread across the country offering their qualified services. As a part of service excellence, the company has implemented Lean Six Sigma initiatives to offer one of the best Turn Around Times in the industry by way of seamless and speedy end to end processing coupled with technology infusion and robust process controls. The company has elevated its own technical process integration to a higher platform to enhance the process deliverables to optimum levels in order to deliver value added services to its customers. In constant endeavour to effectively manage the risk portfolio, the company has been instrumental in developing a far more innovative and competitive strategy equal to the world's best practices in claims and underwriting excellence.
Additionally, the company has serviced almost 1 million group lives and has broken new grounds by the implementation of Flexible, One- click Policy document printing at any Reliance Life branch. With the vision to create clear blue water with its peers, the company considers cost containment through operational efficiency to be a top priority.
BUSINESS EXCELLENCE
Improving execution excellence through continued productivity improvement and maintaining high quality deliveries is the prime focus of the Company. The process performance of the Company has been benchmarked and has emerged as a better performer in comparison with other players in the Industry. The company has implemented quality enhancements initiatives to offer one of the best Turn around Times in the industry by way of seamless and speedy end to end processing coupled with technology infusion and robust process controls.
The Company has implemented more than twenty projects during the year using Lean Six Sigma in the areas of Service Excellence, Revenue Enhancement and Cost Management resulting in significant contribution to the bottom-line. In the Customer Satisfaction Survey conducted by AC Nielsen during the year, the Company has maintained a score of Customer EQ Index of 88. The Advisor EQ Index has received a score of 82 in the same period. The suggestion scheme of the Company “Idea Express”, seeking improvement ideas from employees and business partners, has more than 85 ideas implemented resulting in significant cost savings, revenue enhancement and improvement in operational efficiency.
======================================================================================
BALANCE SHEET AS
AT 30 JUNE, 2012
(Rs. in millions)
|
SOURCES OF FUNDS |
30.06.2012 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
1] Share Capital |
11963.235 |
|
|
2] Share Application Money |
0.000 |
|
|
3] Reserves & Surplus |
21980.263 |
|
|
4] (Accumulated Losses) |
(24671.310) |
|
|
5] credit/(Debit) / Fair
Value Change account |
(31.037) |
|
|
NETWORTH |
9241.151 |
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
Credit/(Debit) Fair Value Change Account |
(128.210) |
|
|
Policy Liabilities |
19434.682 |
|
|
Insurance Reserves |
-- |
|
|
TOTAL BORROWING |
19306.472 |
|
|
|
|
|
|
Provision for linked liabilities |
152968.069 |
|
|
Funds for Discontinued Policies |
|
|
|
i) Discontinued on account of non-payment of premium |
523.148 |
|
|
II) Others |
-- |
|
|
TOTAL LINKED
LIABILITIES |
153491.217 |
|
|
|
|
|
|
Funds For Future Appropriation |
|
|
|
Non-Linked |
130.084 |
|
|
Linked-Provision for lapsed policy not likely to be revived |
1682.965 |
|
|
|
|
|
|
Surplus arising in Non-Participating Business to be recognized as
Profit in the Profit and Loss Account* |
895.077 |
|
|
TOTAL |
184746.966 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
60.072 |
|
|
Capital work-in-progress |
0.000 |
|
|
|
|
|
|
DEFERREX TAX ASSETS |
0.000 |
|
|
|
|
|
|
INVESTMENT |
|
|
|
Shareholders |
10738.061 |
|
|
Policyholders |
19947.807 |
|
|
Assets held to cover linked liabilities
|
155174.182 |
|
|
Loans |
318.845 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
0.000
|
|
|
Sundry Debtors |
0.000
|
|
|
Cash & Bank Balances |
631.874
|
|
|
Other Assets |
2340.674
|
|
|
Loans & Advances |
120.730 |
|
Total
Current Assets |
3093.278
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Sundry Creditors |
1261.502
|
|
|
Current Liabilities |
3315.283
|
|
|
Provisions |
8.494
|
|
Total
Current Liabilities |
4585.279
|
|
|
Net Current Assets |
(1492.001)
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
-- |
|
|
|
|
|
|
TOTAL |
184746.966 |
|
REVENUE
ACCOUNT FOR THE PERIOD ENDED ON 30 JUNE, 2012 (Technical Account)
(Rs. in millions)
|
PARTICULARS |
30.06.2012 |
|
Premium Earned –
Net |
|
|
a) Premium |
8157.675 |
|
b) Reinsurance Ceded |
(55.489) |
|
c) Reinsurance accepted |
-- |
|
|
|
|
Income
from investments |
|
|
a) interest, Dividend and Rent – Gross |
1496.832 |
|
b) Profit on sale / Redemption of investments |
845.960 |
|
c) (Loss) on sale / Redemption of investments |
(840.396) |
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
(868.184) |
|
e) Amortisation of premium/ discount on investments |
635.552 |
|
Transferred from Shareholders fund |
-- |
|
Other Income (Miscellaneous Income) |
359.077 |
|
Sub-Total (A) |
9731.027 |
|
Commission |
591.378 |
|
Operating expenses related to insurance business |
2669.619 |
|
|
|
|
Provision for Doubtful debts |
-- |
|
Bad debts written off |
-- |
|
Provision for tax |
-- |
|
Provision (other
than taxation) |
|
|
a) for diminution in value of investments (net) |
-- |
|
b) others |
-- |
|
Total (B) |
3260.997 |
|
|
|
|
Benefits paid (Net) |
8264.605 |
|
Bonuses Paid |
1.577 |
|
Change in valuation
of liabilities in respect of life policies |
|
|
a) Gross** |
|
|
Linked Segment liability |
(5418.616) |
|
Nin-Linked Segment liability |
3106.894 |
|
b) Amount ceded in Re-insurance |
-- |
|
c) Amount accepted in Re-insurance |
-- |
|
Total (C) |
5954.460 |
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
515.570 |
|
Appropriations |
|
|
Transfer to shareholders account |
-- |
|
Transfer to other reserves |
-- |
|
Balance being funds for future appropriation |
(379.507) |
|
Surplus arising in Non-Participating Business to be recognized as
Profit in the Profit and Loss Account transferred to Balance Sheet |
895.077 |
|
Total (D) |
515.570 |
|
|
|
|
The break-up for
the surplus is as below :- |
|
|
a) interim Bonuses paid |
1.577 |
|
b) allocation of bonus to policyholders |
1127.700 |
|
c) surplus shown in the revenue account |
515.570 |
|
Total Surplus
[(a)+(b)+(c)] |
1644.847 |
PROFIT
AND LOSS ACCOUNT FOR THE PERIOD ENDED ON 30 JUNE, 2012 (Non-Technical Account)
(Rs. in millions)
|
PARTICULARS |
30.06.2012 |
|
Amounts transferred from the Policyholders Account (Technical Account) |
-- |
|
|
|
|
Income
from investments |
|
|
a) interest, Dividend and Rent – Gross |
153.593 |
|
b) Profit on sale / Redemption of investments |
49.457 |
|
c) (Loss) on sale / Redemption of investments |
(0.004) |
|
e) Amortisation of premium/ discount on investments |
60.153 |
|
Other Income |
-- |
|
Sub-Total (A) |
263.199 |
|
|
|
|
Expense other than those directly related to the
insurance business |
|
|
(a) Salaries and other expenses |
72.498 |
|
(b) Fees for increase in Authorised Share Capital |
-- |
|
(c) Wealth Tax |
-- |
|
(d) Depreciation |
-- |
|
(e) Preliminary Expenses Written Off |
-- |
|
Bad debts written off |
-- |
|
Transfer to Policyholders' fund |
-- |
|
Provisions (Other than taxation) |
|
|
(a) For diminution in the value of investments (Net) |
-- |
|
(b) Provision for doubtful debts |
-- |
|
(c) Others |
-- |
|
Sub-Total (B) |
72.498 |
|
Profit / (Loss) before tax |
190.701 |
|
Provision for Taxation |
-- |
|
Profit / (Loss) after tax |
190.701 |
|
|
|
|
APPROPRIATIONS |
|
|
(a) Balance at the beginning of the year |
(24862.011) |
|
(b) Interim dividends paid during the year |
-- |
|
(c) Proposed final dividend |
-- |
|
(d) Dividend distribution tax |
-- |
|
(e) Transfer to reserves / other accounts |
-- |
|
Profit / (Loss) carried forward to the Balance Sheet |
(24671.310) |
CONTINGENT LIABILIITIES
|
Particulars |
30.06.2012 (Rs.
In Millions) |
|
Partly paid-up investments |
-- |
|
Claims, other
than against policies, not acknowledged as debts by the Company |
156.441 |
|
Underwriting commitments outstanding |
-- |
|
Guarantees given
by or on behalf of the Company |
-- |
|
Statutory
demands / liabilities in dispute, not provided for |
163.105 |
|
Reinsurance
obligations to the extent not provided for in the accounts. |
-- |
|
Others – Policy Related Claims |
196.196 |
|
Total |
515.741 |
FIXED ASSETS:
- Goodwill
- Intangibles (IT Software)
- Land-Freehold
- Leasehold Property
- Buildings
- Furniture and Fittings
- Information Technology Equipment
- Vehicles
- Office Equipment
- Work in progress
WEBSITE
DETAILS
PROFILE
Subject offers products that fulfill the savings and protection needs. Their aim is to emerge as a transnational Life Insurer of global scale and standard.
Subject is a Reliance Capital Company and is part of Reliance Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services.
Subject also has presence in Communications, Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure.
Nippon Life Insurance Company acquired 26% interest in equity share capital of the Company effective October 7, 2011 subsequent to receipt of all regulatory approval.
Nippon Life Insurance, also called Nissay, is Japan's largest private life insurer with revenues of Rs 346,8340.000 Millions (US$ 80 Billion) and profits of over Rs 121990.000 Millions (US$ 3 billion). The Company has over 14 million policies in Japan, offers a wide range of products, including individual and group life and annuity policies through various distribution channels and mainly uses face-to-face sales channel for its traditional insurance products. The company primarily operated in Japan, North America, Europe and Asia and is headquartered in Osaka, Japan. It is ranked 81st in Global Fortune 500 firms in 2011.
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. 53.91 |
|
|
1 |
Rs. 87.60 |
|
Euro |
1 |
Rs. 70.01 |
INFORMATION DETAILS
|
Information Gathered
by : |
PJA |
|
|
|
|
Report Prepared
by : |
BVA |
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 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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.