MIRA
INFORM REPORT
|
Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
INDIAFIRST LIFE INSURANCE COMPANY LIMITED (w.e.f. 16.09.2009) |
|
|
|
|
Formerly Known
As : |
BARODA L AND 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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|
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Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.06.2008 |
|
|
|
|
Com. Reg. No.: |
183679 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 4750.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2008PLC183679 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB19018G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCB6215G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company. |
|
|
|
|
Line of Business
: |
Providing Insurance Services. |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 24000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is a joint venture between Bank of Baroda, Andhra Bank and
Legal and General, Middle East. It is an established company having a
moderate track record. There appears losses recorded by the company from its operational activities
during the year 2013. However, trade relations are fair. Business is active. Payment terms
are slow but correct. In view of strong holdings, the company can be considered normal for
business dealings at usual trade terms and condition. |
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
Uptick in agriculture
and construction spread some cheer as the economy grew a higher-than-expected
4.8 % in the three months through September. Manufacturing rose an annual rate
per cent during the quarter and mining fell by 0.4 %, government data showed
while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the
time taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of
18.4 % between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will not
have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of
Investigation has booked State Bank of India, Deputy Managing Director Shyamal
Acharya and others in a graft case related to distribution of a loan of over Rs
4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the
residence of Acharya.
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 DECLINED
MANAGEMENT NON – COOPERATIVE (91-22-39418700)
LOCATIONS
|
Registered Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra |
|
Tel. No.: |
91-22-39418700/ 33259678 |
|
Fax No.: |
91-22-33259600 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 19.09.2013
|
Name : |
Mr. Subhash Sheoratan Mundra |
|
Designation : |
Director |
|
Address : |
154a, Sealord Apartments, 117, Cuff Parade, Mumbai – 400005,
Maharashtra, India |
|
Date of Birth/Age : |
18.07.1954 |
|
Date of Appointment : |
26.04.2013 |
|
DIN No.: |
00979731 |
|
|
|
|
Name : |
Mr. Nandagopal Pothula |
|
Designation : |
Managing director |
|
Address : |
C-1401, Oberoi Woods, Mohan Gokhale Road, Goregoan East, Mumbai –
400063, Maharashtra, India |
|
Date of Birth/Age : |
21.09.1960 |
|
Date of Appointment : |
05.11.2009 |
|
DIN No.: |
02808619 |
|
|
|
|
Name : |
Mr. Srinivas Petluri |
|
Designation : |
Director |
|
Address : |
341 and 342, Janapriya Abode, IV Block, 3rd Floor,
Ghandinagar, Hyderabad – 500080, Andhra Pradesh, India |
|
Date of Birth/Age : |
10.06.1956 |
|
Date of Appointment : |
31.12.2012 |
|
DIN No.: |
02836590 |
|
|
|
|
Name : |
Mr. Vivek Hari Thatte |
|
Designation : |
Director |
|
Address : |
5/78, Dnyanayoga Society, L T Raod, Vazira Naka, Borivali (West),
Mumbai – 400091, Maharashtra, India |
|
Date of Birth/Age : |
25.07.1954 |
|
Date of Appointment : |
11.10.2010 |
|
DIN No.: |
02689926 |
|
|
|
|
Name : |
Mr. Mark Julian Gregory |
|
Designation : |
Director |
|
Address : |
Holly Tree House, Westdown Park, Burwash, Etchingham, United Kingdom |
|
Date of Birth/Age : |
01.08.1963 |
|
Date of Appointment : |
15.01.2013 |
|
DIN No.: |
06458992 |
|
|
|
|
Name : |
Mr. Geoffrey Charles Towers |
|
Designation : |
Director |
|
Address : |
21th Village, Archerfield, Dirleton, East, Lothian, United Kingdom |
|
Date of Birth/Age : |
09.04.1960 |
|
Date of Appointment : |
15.01.2013 |
|
DIN No.: |
06472939 |
|
|
|
|
Name : |
Mr. Keshav Kumar Misra |
|
Designation : |
Director |
|
Address : |
601, Krishna Apartments, Allasker Road, Bangalore – 560052, Karnataka,
India |
|
Date of Birth/Age : |
02.04.1954 |
|
Date of Appointment : |
31.12.2012 |
|
DIN No.: |
02289588 |
|
|
|
|
Name : |
Mr. Raman Padmanabhan |
|
Designation : |
Director |
|
Address : |
Flat – 1-B, Door No.: 2-2-647/284/A, Dwarakamayee Residency, Srinivasa
Nagar, Bagh Amberpet, Hyderabad – 500013, Andhra Pradesh, India |
|
Date of Birth/Age : |
29.10.1957 |
|
Date of Appointment : |
21.12.2011 |
|
DIN No.: |
05150263 |
|
|
|
|
Name : |
Mr. Ajay Mathur |
|
Designation : |
Director |
|
Address : |
168, Golf Link, New Delhi – 110003, India |
|
Date of Birth/Age : |
22.09.1958 |
|
Date of Appointment : |
27.05.2013 |
|
DIN No.: |
01682444 |
|
|
|
|
Name : |
Mr. Gary Peter Burchett |
|
Designation : |
Alternate director |
|
Address : |
21 Turners Close, Southwater, Horsham West Sussex, United Kingdom |
|
Date of Birth/Age : |
31.07.164 |
|
Date of Appointment : |
26.07.2013 |
|
DIN No.: |
06622535 |
KEY EXECUTIVES
|
Name : |
Mr. K R Viswanarayan |
|
Designation : |
Secretary |
|
Address : |
D-202, Priyamvadha, Vaithara Nagar, Nahur Road, Mumbai – 400080,
Maharashtra, India |
|
Date of Birth/Age : |
15.09.1960 |
|
Date of Appointment : |
27.04.2013 |
|
PAN No.: |
AADPR4994H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 19.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Bank of Baroda |
|
208999970 |
|
V K Gupta |
|
10 |
|
K Srinivasa Rao |
|
10 |
|
U C Singhvi |
|
10 |
|
Andhra Bank |
|
142499980 |
|
K V Kannan |
|
10 |
|
Padmanabhan Raman |
|
10 |
|
Legal nd General Middle East Limited, United Kingdom |
|
123500000 |
|
|
|
|
|
Total |
|
475000000 |
Equity Share Break up (Percentage of Total Equity)
As on 19.09.2013
|
Category |
Percentage |
|
Nationalised or other banks |
74.00 |
|
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 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Insurance Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by Management
|
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
M K P S and Associates Chartered Accountants |
|
Address : |
01, Sanjay Apartment Chambers, Andheri (East), Mumbai – 400093,
Maharashtra, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AASFM8070A |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Raj Bordia and Company Chartered Accountants |
|
Address : |
504-B, Dhiraj Kiran, Opposite Infrant Jesus School, Chincholi Bunder
Road, Malad (West), Mumbai – 400064, Maharashtra, India |
|
|
|
|
Associates: |
·
Baroda Pioneer Mutual Fund ·
BOB Capital Markets Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
725000000 |
Equity Shares |
Rs.10/- each |
Rs. 7250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
475000000 |
Equity Shares |
Rs.10/- each |
Rs. 4750.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4750.000 |
4750.000 |
3250.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1300.000 |
1300.0000 |
1300.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] credit/(Debit) / Fair
Value Change account |
(1.777) |
1.771 |
0.605 |
|
|
Sub Total (a) |
6048.222 |
6051.771 |
4550.605 |
|
|
|
|
|
|
|
|
Borrowings |
-- |
-- |
-- |
|
|
Sub Total (b) |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
0.237 |
0.189 |
(0.017) |
|
|
Policy Liabilities |
16525.784 |
5975.442 |
354.881 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
Provision for linked liabilities |
20964.967 |
14843.478 |
9005.420 |
|
|
Funds for Discontinued Policies |
614.912 |
134.967 |
0.000 |
|
|
Sub Total (c) |
37835.901 |
20954.077 |
9360.302 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
367.596 |
238.099 |
52.428 |
|
|
Sub Total (d) |
367.596 |
238.099 |
52.428 |
|
|
|
|
|
|
|
|
TOTAL (e) = (a)+(b)+(c)+(d) |
44251.720 |
27243.948 |
13963.335 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
|
|
|
Shareholders |
4007.647 |
42277.549 |
3085.999 |
|
|
Policyholders |
12865.349 |
2267.737 |
464.420 |
|
|
Assets held to cover linked liabilities
|
21723.285 |
15219.444 |
9057.735 |
|
|
Loans |
24.046 |
6.819 |
0.000 |
|
|
Fixed Assets |
198.340 |
248.792 |
311.300 |
|
|
Sub Total (f) |
38818.668 |
22020.342 |
12939.456 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Cash & Bank Balances |
4019.448
|
4077.483
|
2313.428
|
|
|
Advances & Other Assets |
682.268
|
324.174
|
387.110
|
|
Total
Current Assets |
4701.716
|
4401.657
|
2700.538
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1555.983
|
1062.876
|
2443.617
|
|
|
Provisions |
2.211
|
8.865
|
0.954
|
|
Sub Total (h) |
1558.194
|
1071.741
|
2844.571
|
|
|
Net Current
Assets/ (Liabilities) (i) = (g)–(h) |
3143.522
|
3329.915
|
(144.032)
|
|
|
|
|
|
|
|
|
Debit balance in Profit and Loss Account (Shareholder account |
2289.530 |
1893.690 |
1167.912 |
|
|
Sub Total (j) |
2289.530 |
1893.690 |
1167.912 |
|
|
|
|
|
|
|
|
TOTAL (k) =
(f)+(i)+(j) |
44251.720 |
27243.948 |
13963.335 |
|
REVENUE ACCOUNT
(TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Premium Earned –
Net |
|
|
|
|
a) Premium |
16900.810 |
12979.293 |
|
|
b) Reinsurance Ceded |
(68.298) |
(35.466) |
|
|
c) Reinsurance accepted |
|
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend |
1266.405 |
466.469 |
|
|
b) Profit on sale / Redemption of investments |
528.102 |
108.302 |
|
|
c) (Loss) on sale / Redemption of investments |
(221.219) |
(98.321) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
639.421 |
(399.974) |
|
|
e) Amortisation of premium/ discount on investments |
220.424 |
153.728 |
|
|
|
|
|
|
|
Other Income |
|
|
|
|
Miscellaneous Income |
5.807 |
(7.479) |
|
|
Contribution from shareholder Account |
905.555 |
1304.283 |
|
|
Sub-Total (A) |
20177.009 |
14470.834 |
|
|
|
|
|
|
|
Commission |
305.549 |
273.681 |
NA |
|
Operating expenses related to insurance business |
2108.151 |
1895.580 |
|
|
Provision for Doubtful debts |
0.000 |
0.000 |
|
|
Bad debts written off |
0.000 |
0.00 |
|
|
Provision for tax |
0.000 |
0.000 |
|
|
Provision (other
than taxation) |
|
|
|
|
a) for diminution in value of investments (net) |
0.000 |
0.000 |
|
|
b) others |
0.000 |
0.000 |
|
|
Prior Period Expenses |
0.00 |
00.000 |
|
|
Total (B) |
2413.700 |
2169.262 |
|
|
|
|
|
|
|
Benefits paid (Net) |
586.707 |
263.139 |
|
|
Interim Bonuses Paid |
0.000 |
0.000 |
|
|
Change in
valuation of liabilities in respect of life policies |
-- |
-- |
|
|
a) Gross** |
10550.342 |
5620.560 |
|
|
b) Fund Reserve |
5850.064 |
5838.058 |
|
|
c) Discount fund |
471.575 |
133.972 |
|
|
d) Amount ceded in Re-insurance |
0.000 |
0.000 |
|
|
e) Amount accepted in Re-insurance |
0.000 |
0.000 |
|
|
Total (C) |
17458.688 |
11855.731 |
|
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
304.619 |
455.840 |
|
|
Appropriations |
|
|
NA |
|
Transfer to shareholders account |
175.123 |
260.168 |
|
|
Transfer to other reserves |
0.00 |
0.000 |
|
|
Balance being funds for future appropriation |
129.496 |
185.671 |
|
|
Total (D) |
304.619 |
445.840 |
|
PROFIT & LOSS
ACCOUNT (NON-TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Amounts transferred from the Policyholders Account (Technical Account) |
175.123 |
260.168 |
0.046 |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest |
193.061 |
132.376 |
109.459 |
|
b) Profit on sale / Redemption of investments |
39.416 |
35.072 |
66.879 |
|
c) (Loss) on sale / Redemption of investments |
(9.367) |
(25.788) |
(11.365) |
|
e) Amortisation of premium/ discount on investments |
131.103 |
185.503 |
88.951 |
|
Other Income |
0.000 |
0.000 |
0.002 |
|
Sub-Total (A) |
529.336 |
587.432 |
253.973 |
|
|
|
|
|
|
Expense other
than those directly related to the insurance business |
19.622 |
8.926 |
9.213 |
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
Provisions (Other than taxation) |
|
|
|
|
(a) For diminution in the value of investments (Net) |
0.000 |
0.000 |
0.000 |
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
0.000 |
|
© Others |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
905.555 |
1304.283 |
892.285 |
|
Sub-Total (B) |
925.177 |
1313.210 |
901.498 |
|
Profit / (Loss) before tax |
(395.840) |
(725.777) |
(647.524) |
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
Profit / (Loss) after tax |
(395.840) |
(725.777) |
(647.524) |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
(a) Balance at the beginning of the year |
(1893.690) |
(1167.912) |
(520.387) |
|
(b) Interim dividends paid during the year |
0.000 |
0.000 |
0.000 |
|
(c) Proposed final dividend |
0.000 |
0.000 |
0.000 |
|
(d) Dividend distribution tax |
0.000 |
0.000 |
0.000 |
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
Profit / (Loss) carried forward to the Balance Sheet |
(2289.530) |
(1893.690) |
(1167.912) |
|
|
|
|
|
|
Earning Per Shares (Basic and Diluted, Face Value Rs.10) |
(0.83) |
(1.73) |
(2.36) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
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 |
INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY
FINANCIAL
PERFORMANCE
The Company in its
Fifth year of operations has surpassed expectations despite of the challenging
economic environment.
In terms of sales performance,
the Company delivered a strong performance in its Fourth year of operations as
compared to the industry growth rate.
In the Fifth
Annual Report, the Company recorded a loss of Rs. 395.800 Millions. 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 16900.000 Millions.
The total assets
under management (AUM) as on 31" March 2013 were Rs. 42150.000 Millions.
The ability to provide strong investment performance in all market conditions
is a key strength of the Company.
OUTLOOK
India's life
insurance industry offers strong potential for growth driven by factors like
buoyant economic growth, increasing penetration, high savings rate, regulatory
reforms and rising awareness amongst the population about the need for
insurance. Financial services growth tends to be in multiple of the GDP, and
this sector should grow at 5% to 10% in the next few years.
The competitive
landscape has changed substantially since the opening up of the Indian
Insurance industry to the private sector in 2000. Currently, there are 24
private players in the life insurance sector.
The Company
intends to become a business leader in the Indian market by providing
significant value for all stakeholders through true customer delight.
The Company
undertakes to achieve its business objectives by:
·
Offering wide range of value for money products in
Protection, Savings, Investment, Health and Pension segments
·
Developing cost effective and customer friendly
distribution channels
·
Cultivating outstanding service quality and
impeccable market reputation
·
Nurturing a distinct, cognizable and well admired
brand identity
·
Attracting, engaging and retaining high quality
people
·
Ensuring shareholder aspirations of return on
capital
The Company is committed
to providing 'value for money' products and service excellence to its
customers. It plans to focus significantly on semi urban and rural India in
order to increase awareness and penetration levels in that market. The Company
will leverage the strong rural presence of the Partner Banks to fulfill its
commitment towards rural India. The Company, going forward, is committed to
achieving balanced growth, focusing on achieving the desired market share and
defining a clear path to profitability. The Company has taken several
initiatives to gain a sustainable competitive advantage by optimizing current
distribution infrastructure by focus on professionalizing the Sales force and
looking at cost-effective distribution channels. Further, it plans to achieve
excellence in areas related to brand saliency, customer experience, risk
management, and compliance.
BACKGROUND
Subject
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, 2013.
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, health insurance and
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 safes force.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
|
Statutory demands / liabilities in dispute |
0.006 |
FIXED ASSETS
·
Goodwill
·
Software
·
Leasehold
Improvements
·
Building
·
Furniture and Fittings
·
Information Technology
Equipment
·
Vehicle
·
Office Equipment
·
Office (Specify Nature)
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.61.99 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.