MIRA INFORM REPORT

 

 

Report Date :

25.07.2013

 

IDENTIFICATION DETAILS

 

Name :

SBI LIFE INSURANCE COMPANY LIMITED

 

 

Registered Office :

Natraj M.V. Road and Western Express Highway, Junction, Andheri (East), Mumbai- 400069, Maharashtra 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

11.10.2000

 

 

Com. Reg. No.:

11-129113

 

 

Capital Investment / Paid-up Capital :

Rs.10000.000 Millions

 

 

CIN No.:

[Company Identification No.]

U99999MH2000PLC129113 / U99999MH2000GOI129113

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS27599F

 

 

PAN No.:

[Permanent Account No.]

AAFCS2530P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing of Insurance Services.

 

 

No. of Employees :

7292 [Approximately] 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (75)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between State Bank of India and BNP Paribas Assurance SA.

 

Subject is an established company having fine track record. Fundamentals are strong. Promoters of the subject are strong and reliable. Trade relations are fair. Payments are regular and as per commitments.

 

Subject can be considered good for any normal business dealings.

 

It can be regarded as a promising business partner in medium to long term.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

AAA [Financial Strength Rating]

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

21.06.2013

 

 

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 BY

 

Name :

Mr. Varun Singh

Designation :

Finance Department

Contact No.:

91-22-61910346

Date :

23.07.2013

 

 

LOCATIONS

 

Registered/ Corporate Office 1:

Natraj M.V. Road and Western Express Highway, Junction, Andheri (East), Mumbai-400069, Maharashtra, India  

Tel. No.:

91-22-61911000

Fax No.:

91-22-61910012

E-Mail :

aniket.karandikar@sbilife.co.in

manju.anand@sbilife.co.in

parind.badshah@sbilife.co.in

info@sbilife.co.in

 

 

Head Office :

Central Processing Centre, Kapas Bhavan, Plot 3A, Sector -10, CBD Belapur, Navi Mumbai – 400614, Mumbai, India

Tel. No.:

91-22- 66456210

E-Mail :

rajkumar.raina@sbilife.co.in 

 

 

Corporate Office 2:

2nd Floor, Turner Morrison Building, G. N. Vaidya Marg, Fort, Mumbai-400023, Maharashtra, India 

Tel. No.:

91-22-66392000

Fax No.:

91-22-66392099

 

 

DIRECTORS

 

AS ON 14.07.2012

 

Name :

Mr. Pratip Chaudhuri

Designation :

Chairman Cum Director

Address :

Underwoods Garden, 3 Greenways Road, R.A. Puram, Chennai-600028, Tamilnadu, India

Date of Birth/Age :

12.09.1953

Date of Appointment :

07.04.2011

DIN No.:

00915201

 

 

Name :

Mr. Nilesh Shivji Vikamsey

Designation :

Independent Director

Address :

184, 18th Floor, Kalpataru Habitat, A Wing, Dr. S.S. Rao Road, Mumbai-400012, Maharashtra, India

Date of Birth/Age :

16.08.1964

Date of Appointment :

12.04.2012

Din No.:

00031213

 

 

Name :

Mr. Aravamudan Krishna Kumar

Designation :

Nominee Director

Address :

D-1, Kinnelan Towers, Nepeansea Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

18.11.1954

Date of Appointment :

04.05.2011

DIN No.:

00871792

 

 

Name :

Mr. Gerard Yues Binet

Designation :

Director

Address :

19, Route De La Passerelle Le Vesinet – 781130, France

Date of Birth/Age :

30.04.1953

Date of Appointment :

14.06.2001

DIN No.:

00066024

 

 

Name :

Mr. Ravi Sankar Lingam

Designation :

Director

Address :

Anugraha No.23 (Old No.2), Arunachalam Road, Kotturpuram, Chennai – 600 085, Tamilnadu, India

Date of Birth/Age :

31.08.1958

Date of Appointment :

05.03.2002

Din No.:

00185931

 

Name :

Mr. Eric Lombard

Designation :

Director

Address :

10 Rue Garanciere, Paris, France 75006

Date of Birth/Age :

16.05.1958

Date of Appointment :

22.07.2006

DIN No.:

01744379

 

 

Name :

Mr. Shyamal Acharya

Designation :

Nominee Director

Address :

13 A, B2, Harbour Height PO, Opposite INS Gunjali, N A Sawant Marg, Colaba, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

26.08.1954

Date of Appointment :

05.07.2011

DIN No.:

03568347

 

 

Name :

Mr. Mahadev Nagendra Rao

Designation :

Managing Director

Address :

2B, Bank House, Unit II, Bhubaneswar-751009, Orissa, India

Date of Birth/Age :

17.08.1952

Date of Appointment :

01.08.2009

DIN No.:

01296161

 

 

Name :

Mr. Jacques Andre Rene Michel

Designation :

Alternate Director

Address :

Madhu Kunj, Flat A, 1st Floor, Narayan Dabolkar Marg, Napeansea Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

28.07.1952

Date of Appointment :

29.09.2011

DIN No.:

02968626

 

 

KEY EXECUTIVES

 

Name :

Ms. Manju Anand

Designation :

Company Secretary

Address :

A-4/1, Old Best Colony, Sahajeevan CHS, Goregaon (W), Mumbai-400104, Maharashtra, India

Date of Birth/Age :

13.04.1977

Date of Appointment :

17.12.2007

PAN No :

ACVPN8727J

 

 

MAJOR SHAREHOLDERS

 

AS ON 14.07.2012

 

Names of Shareholders

 

 

No. of Shares

 

 

 

State Bank of India, India

 

739999994

BNP Paribas Cardif S.A., France

 

260000000

Shyamal Acharya

 

2

Mahadev Nagendra Rao

 

1

Dinesh Kumar Khara

 

1

Srikant Hota

 

1

B S Gopalkrishna

 

1

 

 

 

TOTAL

 

1000000000

 

AS ON 14.07.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

26.00

Government companies

 

74.00

TOTAL

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing of Insurance Services.

 

 

GENERAL INFORMATION

 

No. of Employees :

7292 [Approximately] 

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Ummed Jain and Company

Chartered Accountants

Address :

R-15, Yudhisther Marg, C-Scheme, Jaipur-302005, Rajasthan, India

PAN No:

AAAFU2542B

 

 

Holding Company :

State Bank of India

 

 

Joint Venture Partner :

BNP Paribas Cardif

 

 

Holding Company of Joint Venture Partner :

BNP Paribas

 

 

Fellow Subsidiaries :

·         State Bank of Bikaner and Jaipur

·         State Bank of Hyderabad

·         State Bank of Mysore

·         State Bank of Patiala

·         State Bank of Travancore

·         SBI Capital Markets Limited

·         SBI DFHI Limited

·         SBI Funds Management (Private) Limited

·         SBI CAPS Ventures Limited

·         SBI CAP Trustee Company Limited

·         SBI CAP (UK) Limited

·         SBI CAP (Singapore) Limited

·         SBI Cards and Payment Services Private Limited

·         SBI Payment Services Private Limited

·         SBI Global Factors Limited

·         SBICAP Securities Limited

·         SBI Pension Funds Private Limited

·         SBI General Insurance Company Limited

·         SBI Funds Management ( International) Private Limited

·         SBI Mutual Fund Trustee Company Private Limited

·         SBI-SG Global Securities Services Private Limited

·         State Bank of India (California)

·         State Bank of India (Canada)

·         SBI (Mauritius) Limited

·         Commercial Bank of India LLC, Moscow

·         PT Bank SBI Indonesia

·         Nepal SBI Bank Limited

 

 

Other Related Parties :

·         SBI Life Insurance Company Limited Employee PF Trust

·         SBI Life Insurance Company Limited Employees Gratuity Fund

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000000

Equity Shares

Rs.10/- each

Rs.20000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1000000000

Equity Shares

Rs.10/- each

Rs.10000.000 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

10000.000

10000.000

10000.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

11189.297

6212.183

2548.743

4] Credit/(Debit) Fair Value Change Account

367.191

84.833

103.553

5] (Accumulated Losses)

0.000

0.000

0.000

SUB TOTAL

21556.488

16297.016

12652.296

 

 

 

 

BORROWING

 

 

 

 

 

 

 

POLICYHOLDERS' FUNDS

 

 

 

Credit / Debit Fair Value Change Account

111.091

526.402

1219.654

Policy Liabilities

182815.481

133143.913

96686.230

Insurance Reserves

0.000

0.000

0.000

 

 

 

 

Provision For Linked Liabilities

255747.474

223259.075

147694.689

Add: Fair Value Change (Linked)

7932.946

21629.525

22932.158

Add: Funds For Discontinued Policies

713.855

0.000

0.000

Total Linked Liabilities

264394.275

244888.600

170626.847

 

 

 

 

Funds for Future Appropriation -: Linked

287.269

402.177

246.204

Funds for Future Appropriation -: Others

0.000

0.000

0.000

 

 

 

 

TOTAL

469164.603

395258.108

281431.231

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2652.156

2831.553

2326.988

 

 

 

 

INVESTMENT

 

 

 

Shareholders'

13608.077

9650.782

7283.028

Policyholders'

169486.611

146687.042

108875.135

 

 

 

 

Assets Held to Cover Linked Liabilities

264681.542

245290.776

170873.050

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Cash & Bank Balances

23034.030
2656.610

3218.936

 

Advances and Other Assets

8941.581
5325.440

3219.745

Total Current Assets

31975.611
7982.050

6438.681

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

2572.431
2478.841

2367.856

 

Other Current Liabilities

9963.944
14586.317

11936.064

 

Provisions

703.019
118.937

61.731

Total Current Liabilities

13239.394
17184.095

14365.651

Net Current Assets

18736.217
(9202.045)

(7926.970)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

469164.603

395258.108

281431.231

 

 

FINANCIAL PERFORMANCE

 

Rs. in Millions

Particular

As on 31.03.2012

 

As on 31.03.2011

 

Premium Income

 

 

New Business Premium

65313.173

75723.919

Renewal Premium

66024.211

53392.510

Profit / Loss Before Taxation

6041.414

3945.140

Provision For Taxation

483.200

281.700

Profit / Loss After Taxation

5558.214

3663.440

Sum Assured in Force (New Business)

 

 

Basic Policy

540836.193

591797.985

Total (Basic + Rider)

645028.966

648377.534

Annualized Premium Equivalent (APE)

26266.518

37939.905

Assets Held

465759.780

401628.600

Expense Ratio

6.85%

6.9%

Number of New Policies (In 000s)

882

940

Sales and Distribution Strength

 

 

Geographical Spread

 

 

Number of Offices

714

629

Numbers of Employees

7893

7292

Numbers of Agents and CIFs (In 000s)

111771

100

Persistency Ratio (For 13th Month)

72%

69%

 

 


REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2012

 

POLICY HOLDER'S ACCOUNT (TECHNICAL ACCOUNT)

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

 

Premiums earned - Net

 

 

 

 

(a) Premium

131337.384

129452.866

101040.265

 

(b) (Reinsurance ceded)

(528.974)

(361.204)

(235.452)

 

Total

130808.410

129091.662

100804.813

 

 

 

 

 

 

Income from Investments

 

 

 

 

(a) Interest, Dividends & Rent - Net of Amortization

(Gross for year ended March 31, 2012 Rs.18131.664 Millions, previous year ended March 31, 2011 Rs.11805.768 Millions)

21214.478

13284.460

7724.772

 

 

 

 

 

 

(b) Profit on sale / redemption of investments

12973.730

24462.330

25499.176

 

 

 

 

 

 

(c) (Loss on sale / redemption of investments)

(14385.122)

(6395.325)

(4242.781)

 

 

 

 

 

 

(d) Transfer /Gain on revaluation / change in Fair value*

(13696.579)

(1302.633)

30265.462

 

 

 

 

 

 

(e) Appropriation/ expropriation adjustment account

(275.264)

(153.585)

0.000

 

 

 

 

 

 

Other Income

 

 

 

 

(a) Contribution from the Shareholders' A/c

1419.856

354.181

0.000

 

(b) Others

0.000

0.000

0.000

 

- Miscellaneous Income

588.898

270.598

492.347

 

 

 

 

 

 

Total (A)

138648.407

159611.690

160543.789

 

 

 

 

 

 

Commission

5183.637

6710.540

7582.488

 

 

 

 

 

 

Operating Expenses related to Insurance Business

10239.285

9166.301

6609.005

 

Provision For Doubtful Debts

1.007

0.405

0.000

 

Bad Debts Written Off

1.408

4.302

0.000

 

Provision for Tax

 

 

 

 

(a) Income Tax

483.200

240.618

102.210

 

(b) Adjustment related to previous years

0.000

0.000

(2.078)

 

(c) Fringe Benefit Tax

0.000

0.000

0.000

 

 

 

 

 

 

Provisions (other than taxation)

 

 

 

 

(a) For diminution in the value of investments (net)

(47.780)

0.012

(1367.899)

 

 

 

 

 

 

Total (B)

15860.757

16122.178

12923.726

 

 

 

 

 

 

Benefits Paid (Net)

47753.110

 

8514.400

 

Interim and Terminal Bonuses Paid

2.841

1.182

0.000

 

 

 

 

 

 

Change in valuation of liability against life policies

 

 

 

 

(a) Gross * *

69273.368

110853.860

137172.096

 

(b) (Amount ceded in Re-insurance)

(96.125)

(134.424)

(8.990)

 

 

 

 

 

 

Total (C)

116933.194

139978.338

145677.506

 

 

 

 

 

 

SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)

5854.456

3511.174

1942.557

 

 

 

 

 

 

Balance of previous year

402.177

246.204

81.176

 

Balance available for appropriation

6256.633

3757.378

2023.733

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Shareholders' Account

5969.365

3355.200

1777.529

 

 

Balance being Funds for Future Appropriations

287.269

402.177

246.204

 

Total (D)

5854.456

3511.174

2023.733

 

 

 

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2012

 

SHAREHOLDERS' ACCOUNT (NON-TECHNICAL ACCOUNT)

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

 

 

Amount Transferred From Policyholder Account (Technical Account)

5969.365

3355.200

--

 

Surplus/ (Deficit) from Policyholders Accounts

--

--

1777.529

 

Income from Investments

 

 

 

 

(a) Interest, Dividend & Rent - Net of Amortization

(Gross for year ended March 31, 2012 Rs.868.760 Millions, previous year ended March 31, 2011 Rs.525.580 Millions)

891.188

546.912

606.462

 

 

 

 

 

 

(b) Profit on sale / redemption of investments

83.321

168.261

269.658

 

 

 

 

 

 

(c) (Loss on sale / redemption of investments)

(14.546)

(25.129)

(354.795)

 

Other Income

64.859

40.765

0.000

 

 

 

 

 

 

TOTAL (A)

6994.187

4086.009

2298.854

 

 

 

 

 

 

Expenses other than those directly related to the insurance

 

 

 

 

(a) Rates and Taxes

0.000

0.000

0.054

 

(b) Directors' Sitting Fees

0.140

0.205

0.118

 

(c) Board Meeting Related Expenses

1.692

0.829

3.484

 

(d) Depreciation

13.551

3.444

0.000

 

(e) Other Expenses

7.924

25.704

0.224

 

 

 

 

 

 

Provisions (Other than taxation)

 

 

 

 

 

 

 

 

 

(a) Contribution to the Policyholders' Fund

1419.856

354.181

0.000

 

(b) For diminution in the value of investment (net)

(7.190)

(2.877)

(479.938)

 

 

 

 

 

 

Total (B)

1435.973

381.487

(476.060)

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX

5558.214

3704.522

2774.914

 

Provision for Taxation

 

 

 

 

(a) Income Tax

0.000

41.082

10.337

 

(b) Adjustment related to previous years

0.000

0.000

0.000

 

(c) Fringe Benefit Tax

0.000

0.000

0.000

 

PROFIT / (LOSS) AFTER TAX

5558.214

3663.440

2764.577

 

 

 

 

 

 

(a) Balance at the beginning of the period/year

6212.183

2548.743

(215.833)

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Proposed final dividend

500.000

0.000

0.000

 

 

Dividend distribution tax

81.100

0.000

0.000

 

Profit / (Loss) carried to the Balance Sheet

11189.297

6212.183

2548.743

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.56

3.66

2.76

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF CURRENT MATURITIES OF LONG-TERM DEBT: 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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

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]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

CHARGES:

 

 ENTITY

COMPETENT AUTHORITY

REGULATORY CHARGES

REGULATORY ACTION(S) / DATE OF ORDER

FURTHER DEVELOPMENTS

SBI Life Insurance Company Limited

IRDA 

Paid claim cheques to master policy holder

sold two year policies as single premium policy and did not give informed choice to members of group insurance policies violating file and use guidelines

paid excess commission to corporate agents over and above the eligible 2% commission on single insurance policies

IMPOSED PENALTY RS.0.600 Million

18-SEP-2012

--

SBI Life Insurance Company Limited

IRDA 

Reimbursed group administrative expenses to corporate agents and group master policyholders without prior approval of irda

IMPOSED PENALTY RS.7.000 Millions

08-JUL-2011

IRDA VIDE ITS 05/10/2012 PASSED CERTAIN DIRECTIONS

 

 

NOTE:

 

The registered office of the company has been shifted from State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai-400021 Maharashtra India to the present address w.e.f. 25.04.2011.

 

 

FINANCIAL PERFORMANCE:

 

·         The Company has been ranked # 1 amongst private life insurers on new business premium for the financial year

 

·         Net Profit for the year stands at Rs. 5560.000 Millions, showing a growth of 51.72%

 

·         Consistent growth in gross premium to Rs. 131340.000 Millions in the financial year 2011-12 from Rs. 129450.000 Millions in the financial year 2010-11

 

·         A robust growth of 16% in Assets under Management (AUM) to Rs. 465760.000 Millions in the financial year 2011-12 as against Rs. 401630.000 Millions in the financial year 2010-11

 

·         The Renewal Premium collections from various distribution channels amounted to Rs. 66020.000 Millions showing Y-o-Y growth of 23.28%.

 

The total New Business Premium (NBP) stands at Rs. 65310.000 Millions consisting of Rs. 18600.000 Millions from ‘Retail Agency’ and ‘Institutional Alliances’ channels together, Rs. 16460.000 Millions from ‘Bancassurance’ channel and Rs. 30250.000 Millions from ‘Corporate Solutions’ channel.

 

The Company focused on expansion through quality recruitment and opening up of new branches. As at March 31, 2012, the Company has 714 offices, 86,989 Insurance Advisors (IAs) and 24,782 Certified Insurance Facilitators (CIFs) across the country as against corresponding figures of 629 offices 79,628 IAs and 20,240 CIFs respectively as on March 31, 2011.

 

 

AWARDS AND RECOGNITIONS:

 

During the Financial Year 2011-12, SBI Life continued with its winning streak of bagging numerous coveted recognitions and awards from reputed platforms.

 

·         NDTV Profit Business Leadership Award, twice in a row, 2010 and 2011

 

·         Most Trusted Private Life Insurance Brand 2011 by The Economic Times, Brand Equity and Nielsen, Most Trusted Brands 2011

 

·         CRISIL has reaffirmed its AAA / Stable rating to SBI Life, indicating highest financial strength to meet policyholder obligations.

 

·         ICRA has reaffirmed its iAAA rating indicating highest claims paying ability and a fundamentally strong position.

 

·         Won one of the most prestigious quality distinction, ‘IMC Ramkrishna Bajaj National Quality Awards 2011 - Certificate of Merit’

 

·         Awarded ‘ICAI - Silver Shield’ for Excellence in Financial Reporting for FY 2010 – 11 under the Insurance category

 

·         Awarded the best presented accounts by The South Asian Federation of Accountants (SAFA), in the Insurance Category for the Annual Report FY 2009-10 Certificate of Merit

 

·         Retained ISO/IEC 27001: 2005 Certification for Information Security Management System (ISMS)

 

They owe these prestigious awards to the constant support and trust reposed by their Policyholders and Stakeholders and the hard work and dedication of their work force.

 

 

OUTLOOK:

 

The life insurance industry is expected to grow at 5-10% during the financial year (FY) 2012-13, with a slow growth in early quarters and substantial improvements in the last two quarters owing to expected market improvements. The industry has already seen a substantial change in the product mix leaning towards traditional products. Persistency and efficiency focused business will be the key to profitability. Renewal premiums have been pivotal in determining profitability and will continue to do so as the industry keeps on maturing. Expense smoothening will be another area of focus this year. Market resilience and improved penetration are important driving factors. A customer centric approach to business, well trained insurance advisors and an innovative product portfolio will be keys to generate business. As a commitment towards better sales support, SBI Life has opened 85 new branches in previous year and expects to add 45 more this year.

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY.

 

 

FIXED ASSETS:

 

·         Goodwill

·         Intangibles - Software

·         Land-Freehold

·         Furniture and Fittings

·         Information Technology Equipment

·         Leasehold Property

·         Buildings

·         Vehicles

·         Office Equipment

·         Leasehold Improvements

 

 

AS PER WEBSITE DETAIL

 

PRESS RELEASES:

 

HARYANA BLACKLISTS SBI LIFE FOR DELAYING ANNUITY PAYMENTS

 

PTI: Chandigarh, Tue Jan 29 2013, 21:56 hrs

 

SBI Life Insurance Company has been "blacklisted" by Haryana government for allegedly delaying the process of distribution of annuity to land owners under the Resettlement and Rehabilitation (R&R) Policy of the state government.

 

While giving this information in an release here today, an official spokesman of the Finance Department said, "Haryana government has blacklisted SBI Life Insurance Company Limited and cancelled the bid awarded to it for delaying the entire process of distribution of annuity to the land owners under the state's R&R policy."

 

He further said stringent actions, including debarring SBI Life Insurance from doing any further business with the State or any of its department could also be taken as per the law.

 

The official spokesman said that an Expression of interest (EOI) was issued in February, 2011 inviting bids from Insurance Companies or Banks for purposes of providing services for disbursement of annuity to the land owners under R&R policy of the state government.

 

The bid cum tender document was submitted by SBI Life Insurance on March 31, 2011.

 

He said that after receipt of the bid documents, several rounds of negotiations and discussions were held with respect to various stipulations and conditions stated in the draft Service Level Agreement (SLA) including the obligation of the noticee as service provider with respect to collection and validation of data of the beneficiaries.

 

The spokesman further said decisions regarding the contract were taken by the government on July 25, 2011 and August 11, 2011 for making payment of annuity under R&R policy by allocation of work amongst the selected insurance companies. A letter of intent (LoI) was issued to noticee on September 6, 2011.

 

The said LoI was also issued on specific and unambiguous stipulation that the LoI would be subject to execution of Service Level Agreement (SLA).

 

This was expressly communicated to the noticee that the government reserved its right to withdraw the said LOI in the event of failure of noticee to execute the Service Level Agreement, he added.

 

He said that in furtherance of the agreed and accepted condition of LOI, the government vide its letter dated January 4, 2012 forwarded the SLA duly approved by it and called upon the noticee to sign the same with its concerned departments.

 

However, despite repeated reminders, including ones dated January 27, 2012 and February 3, 2012, for execution of the SLA, SBI Life failed to execute the same again for the same "frivolous" reasons of non deletion of the clause relating to the collection and validation of data, he said. 

 

 

SBI LIFE INSURANCE WINS GLOBAL PERFORMANCE EXCELLENCE AWARD, 2013

 

Mumbai, July 03, 2013: The only organization from India to win the World Class Award in large service category, SBI Life has achieved a unique distinction by featuring amongst the nine organizations from six Asian and Pacific Rim Countries to be recognized as exemplary companies of world class quality performance. Modeled after the U.S. Malcolm Baldrige Performance Excellence Award, the award is presented to organizations demonstrating robust quality focus encompassing overall business excellence. The awards will be presented at the 19th APQO/International Conference on Quality in Bali, Indonesia on 10th October, 2013


Mr. Atanu Sen, MD & CEO, SBI Life said, “We owe the recognition to our robust holistic processes which keep the satisfaction of our customers at the focal point. I believe this recognition provides a sense of pride and encouragement for all in the Industry and service organizations in India to demonstrate capabilities focused on quality at a global platform”.


The Global Performance Excellence Award (GPEA) is administered by the Asia Pacific Quality Organization (APQO), a non-profit organization that serves as an umbrella group that brings together the leading quality professional societies from countries that border on the Pacific Ocean or are considered Asian or Pacific Rim nations. The governing body of APQO includes representatives from Australia, Azerbaijan, Canada, Chile, China, India, Indonesia, Kazakhstan, Korea, Malaysia, Mexico, Nepal, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, Turkey, United States of America, United Arab Emirates, Republic of Uzbekistan and Vietnam. The award is sponsored by a foundation established by APQO called The Walter L. Hurd Foundation. 


Preceding GEPA, SBI Life won the national Indian Merchant Chambers’ Ramkrishna Bajaj National Quality Award 2012 in the services category, which is one of eligibility requirements for the GPEA award participation. 


Recently, SBI Life Insurance has also bagged two awards at the Indian Insurance Award 2013, namely the “Under-served Market Penetration Award, Private Sector, 2013” for its far-reaching geographical coverage within India and the “Claims Service of the Year Award, Private Sector 2013” for demonstrating overall leadership and commitment towards effective and speedy claims settlement. Further, SBI Life ranked amongst the top-50 Great Places to Work in India, as per the latest report released. 

 

 

ELIGIBILITY REQUIREMENTS: 

 

·         The Candidates for the award must already have won their National Quality Award within the last 3 years (2012-2013).

·         The National Quality Award Organization/s (IMC Ramkrishna Bajaj in India) must recommend Candidates for the Global Performance Excellence Award (GPEA).

 

·         The National Quality Award Organization or the Candidate must include in its NQA and feedback / site visit report that the GPEA Application documents reflect the organization’s actual operations.



 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.59.69

UK Pound

1

Rs.91.66

Euro

1

Rs.78.69

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

RAJ


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

 

75

 

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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.