|
Report Date : |
01.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
BIRLA SUN LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
One Indiabulls
Centre, Tower 1, 15th and 16th Floor, Jupiter Mill
Compound, 841, S.B. Marg, Elphinstone Road, Mumbai – 400 013, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
04.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128110 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.19695.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH2000PLC128110 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB08828B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Life Insurance Solutions, Policies etc. |
|
|
|
|
No. of Employees
: |
11160 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 42000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Birla group company. It is a well established and a reputed company having a satisfactory track
record. The company has performed well during 2012. There appears some
accumulated losses recorded by the company. However, trade relations are
reported to be decent. Business is active. Payments are reported to be
usually correct and as per commitments. In view of strong promoters, the company can be considered normal for
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 PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Salunkhe |
|
Designation : |
Account Department |
|
Contact No.: |
91-22-39961000 |
|
Date : |
27.02.2013 |
LOCATIONS
|
Registered Office : |
One Indiabulls
Centre, Tower 1, 15th and 16th Floor, Jupiter Mill Compound,
841, S.B. Marg, Elphinstone Road, Mumbai – 400 013, Maharashtra, India |
|
Tel No.: |
91-22-43569000 |
|
Fax No.: |
91-22-43568758 |
|
E-Mail : |
ashish.lakhtakia@birlasunlife.com puneet.bansall@birlasunlife.com customerservice@birlasunlife.com grouphelpline@birlasunlife.com bsll@birlasunlife.com |
|
Website: |
|
|
Location : |
Owned |
|
|
|
|
Corporate Office : |
5th and 6th Floor, G-Corp Tech Park, Ghodbunder Road, Near Kasar Wadavali Police Station, Thane (West), Thane- 400601, Maharashtra, India |
|
Tel. No.: |
91-22-39961000 |
|
Location : |
Owned |
|
|
|
|
Branch Office : |
Unit No.101, A Wing, Great Chambers, Near Gurdwara, Andheri Kurla Road, Andheri (East), Mumbai – 400069, Maharashtra, India |
|
Tel. No.: |
91-22-67037871/74 |
Note:
As claimed by the concerned person. The company do not have
any office at Vaman Centre, 6th Floor, Makhwana
Road, Off Andheri-Kurla Road, Andheri
(East), Mumbai – 400 059, Maharashtra, India
DIRECTORS
As on 20.06.2012
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
Mangal Aditnarayan, 20, Carmichael Road,
Mumbai – 400 026, Maharashtra, India |
|
Date of Birth/Age : |
14.06.1967 |
|
Qualification : |
Chartered Accountant and MBA ( |
|
Date of Appointment : |
04.08.2000 |
|
DIN No.: |
00012813 |
|
|
|
|
Name : |
Mr. Ajay Srinivasan |
|
Designation : |
Director |
|
Address : |
91/101, Narain Terraces, 7 and 8 Floor, |
|
Date of Birth/Age : |
02.11.1963 |
|
Qualification : |
BA with Honours in Economics and MBA (Indian |
|
Date of Appointment : |
01.07.2010 |
|
DIN No.: |
00121181 |
|
|
|
|
Name : |
Mr. Bishwanath Mangilal Puranmalka |
|
Designation : |
Director |
|
Address : |
Antariksha, Flat No.182 19th Floor, 95/96, Kakasaheb Gadgil
Marg, Prabhadevi, Mumbai – 400 025, |
|
Date of Birth/Age : |
02.11.1935 |
|
Date of Appointment : |
04.08.2000 |
|
DIN No.: |
00007432 |
|
|
|
|
Name : |
Mr. Donald Alexander Stewart |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
06.11.1946 |
|
Qualification : |
Fellow of |
|
Date of Appointment : |
24.12.2000 |
|
DIN No.: |
00438164 |
|
|
|
|
Name : |
Mr. Jayant Sudesh Kumar Dua |
|
Designation : |
Managing Director |
|
Address : |
B-66, Ground Floor, Sarvodaya Enclave, |
|
Date of Birth/Age : |
30.01.1965 |
|
Date of Appointment : |
01.07.2010 |
|
DIN No.: |
00629213 |
|
|
|
|
Name : |
Mr. Suresh Narsappa Talwar |
|
Designation : |
Director |
|
Address : |
10, Shiv Shanti Bhavan, 146, |
|
Date of Birth/Age : |
21.11.1938 |
|
Date of Appointment : |
11.09.2001 |
|
DIN No.: |
00001456 |
|
|
|
|
Name : |
Mr. Venkatesh Satyaraj Mysore |
|
Designation : |
Director |
|
Address : |
688, Supraja, 15th Cross, 100 Feet Ring Road, J.P. Nagar,
Phase – II, Bangalore – 560 078, Karnataka, India |
|
Date of Birth/Age : |
30.12.1958 |
|
Date of Appointment : |
01.01.2008 |
|
DIN No.: |
01401447 |
|
|
|
|
Name : |
Mr. Gianprakash Dharamprakash Gupta |
|
Designation : |
Director |
|
Address : |
101, Kaveri, B Wing, Neelkanth, Valley, Rajawadi, Ghatkopar (East),
Mumbai – 400 077, |
|
Date of Birth/Age : |
11.01.1941 |
|
Date of Appointment : |
11.09.2001 |
|
DIN No.: |
00017639 |
|
|
|
|
Name : |
Dr. Rakesh Naging Chand Jain |
|
Designation : |
Director |
|
Address : |
110/2, A wing, Quantum Park, Union Park Road, Khar (West), Mumbai – 400
052, Maharashtra, India |
|
Date of Birth/Age : |
19.01.1961 |
|
Date of Appointment : |
16.06.2010 |
|
DIN No.: |
00020425 |
|
|
|
|
Name : |
Mrs. Tarjani Manmukram Vakil |
|
Designation : |
Director |
|
Address : |
A-1, |
|
Date of Birth/Age : |
30.10.1936 |
|
Date of Appointment : |
16.06.2010 |
|
DIN No.: |
00009603 |
|
|
|
|
Name : |
Mr. Kevin David Strain |
|
Designation : |
Director |
|
Address : |
180, |
|
Date of Birth/Age : |
31.08.1966 |
|
Date of Appointment : |
28.04.2012 |
|
DIN No.: |
05262340 |
KEY EXECUTIVES
|
Name : |
Mr. Ashish Lakhtakia |
|
Designation : |
Secretary |
|
Address : |
Flat No.103-104, B Wing, |
|
Date of Birth/Age : |
25.04.1973 |
|
Date of Appointment : |
27.04.2011 |
|
PAN No.: |
ACDPL9207F |
|
|
|
|
Name : |
Mr. Salunkhe |
|
Designation : |
Account Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
Aditya Birla Nuvo Limited, |
|
1457429995 |
|
Sun Life Financial ( |
|
512070000 |
|
Anil Rastogi Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
BN Puranmalka Jointly with Aditya Birla Nuvo, Limited, |
|
1 |
|
Sushil Agarwal Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
Manoj Kedia Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
Devendra Bhandari Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
Total
|
|
1969500000 |
As on 20.06.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas Corporate bodies or Others |
26.00 |
|
Bodies corporate |
74.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance Solutions, Policies etc. |
|
|
|
|
Terms : |
|
|
Selling : |
Cheque and DD |
|
|
|
|
Purchasing : |
Cheque and DD |
GENERAL INFORMATION
|
Customers : |
Others |
|
|
|
|
No. of Employees : |
11160 (Approximately) |
|
|
|
|
Bankers : |
· Axis Bank Limited · HDFC Bank · ICICI Bank Limited · State Bank of India · Union Bank of India Limited · Indusind Bank Limited · Canara Bank · Punjab National Bank ·
State Bank of Hyderabad |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1 : |
S.R. Batliboi and Associates Chartered Accountants
|
|
Address : |
6th Floor, |
|
PAN No.: |
AABFS3421N |
|
|
|
|
Name 2 : |
Fraser and Ross Chartered Accountants |
|
Address : |
Deloitte Centre, |
|
PAN No.: |
AAAFF0644S |
|
|
|
|
Holding company : |
Aditya Birla Nuvo Limited CIN
No.: L17199GJ1956PLC001107 |
|
|
|
|
Foreign
Partner : |
Sun Life Financial ( |
|
|
|
|
Fellow
Subsidiary : |
v
Aditya Birla Finance Limited (Formerly known as
Birla Global Finance Company Limited) v
Aditya Birla Minacs Worldwide Limited (Formerly
known as Transworks Information Services Limited) v
Aditya Birla Minacs IT Services Limited (Formerly
known as PSI Data Systems Limited) v
Aditya Birla Money Mart Limited (Formerly known
as Birla Sun Life Distribution Company Limited) (w.e.f. March 31, 2009) v
Aditya Birla Money Insurance Advisory Services
Limited (Formerly known as BSDL Insurance Advisory Services Limited (w.e.f. March
31, 2009) v
Aditya Birla Money Limited (Formerly known as
Apollo Sindhoori Capital Investments Limited) (w.e.f. March 6, 2009) v
Aditya Birla Financial Services Private Limited
(w.e.f. November 4, 2008) v
Aditya Birla Financial Shared Services Limited v Aditya Birla
Insurance Brokers Limited (Formerly known as Birla Insurance Advisory and
Broking Service Limited) (w.e.f. August 18, 2010) v Madura Garments
LifeStyle Retail Company Limited |
|
|
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3750000000 |
Equity Shares |
Rs.10/- each |
Rs.37500.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1969500000 |
Equity Shares |
Rs.10/- each |
Rs.19695.000
millions |
|
|
|
|
|
Of the above 1,457,430,000 Equity Shares (Previous Year: 1,457,430,000 equity shares) of Rs. 10/- each are held by Aditya Birla Nuvo Limited, the holding Company.
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 |
19695.000 |
19695.000 |
19695.000 |
|
|
2] Share Application Money |
0.00 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4800.000 |
4800.000 |
4800.000 |
|
|
4] (Accumulated Losses) |
(13762.293) |
(17225.082) |
(20275.040) |
|
|
5] credit/(Debit) / Fair
Value Change account |
0.047 |
0.001 |
0.305 |
|
|
NETWORTH |
10732.754 |
7269.919 |
4220.265 |
|
|
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
(1.577) |
0.069 |
0.653 |
|
|
Policy Liabilities |
14318.822 |
10608.571 |
7860.785 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
14317.245 |
10608.640 |
7861.438 |
|
|
|
|
|
|
|
|
Provision for linked liabilities |
180060.213 |
170233.983 |
136542.641 |
|
|
Funds for Discontinued Policies |
|
|
|
|
|
i) Discontinued on account of non-payment of premium |
437.939 |
6.401 |
0.000 |
|
|
Credit/(Debit) Fair Value Change Account |
866.046 |
4351.817 |
9130.333 |
|
|
TOTAL LINKED LIABILITIES |
181364.198 |
174592.201 |
145672.974 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
|
|
|
|
|
Linked Liabilities |
3958.870 |
4569.742 |
2984.243 |
|
|
TOTAL |
210373.067 |
197040.502 |
160738.920 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
395.861 |
399.823 |
698.167 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
10153.273 |
6972.707 |
5043.972 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Shareholders |
19583.057 |
16033.543 |
10581.669 |
|
|
Assets held to cover linked liabilities
|
181364.198 |
174592.201 |
145672.974 |
|
|
Loans |
250.239 |
263.070 |
265.468 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000
|
|
|
Cash & Bank Balances |
6404.658
|
5885.242
|
5697.972
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2380.549 |
1371.709 |
1215.350 |
|
Total
Current Assets |
8785.207
|
7256.951
|
6913.322
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3040.571
|
3320.427
|
3279.234
|
|
|
Current Liabilities |
6577.021
|
4687.859
|
4834.277
|
|
|
Provisions |
541.176
|
469.507
|
323.141
|
|
Total
Current Liabilities |
10158.768
|
8477.793
|
8436.652
|
|
|
Net Current Assets |
(1373.561)
|
(1220.842)
|
(1523.330)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
210373.067 |
197040.502 |
160738.920 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
58853.594 |
56770.665 |
55056.579 |
|
|
b) Reinsurance Ceded |
(1375.857) |
(825.041) |
(802.949) |
|
|
c) Reinsurance accepted |
-- |
-- |
-- |
|
|
Sub-total |
57477.737 |
55945.624 |
54253.630 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
9567.643 |
7715.638 |
5215.712 |
|
|
b) Profit on sale / Redemption of investments |
5822.017 |
15996.532 |
24129.090 |
|
|
c) (Loss) on sale / Redemption of investments |
(13458.611) |
(3894.870) |
(3410.918) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
(3485.771) |
(4778.515) |
14140.238 |
|
|
e) Gain / (Loss) on Amortisation |
(77.958) |
(119.398) |
(42.599) |
|
|
Sub-Total |
(1632.680) |
14919.387 |
40031.523 |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
a) contribution from the shareholders account |
3287.343 |
619.836 |
4797.493 |
|
|
b) Others (interest etc.) |
298.060 |
236.803 |
143.486 |
|
|
Sub-Total |
3585.403 |
856.639 |
4940.979 |
|
|
Total (A) |
59430.460 |
71721.650 |
99226.132 |
|
|
|
|
|
|
|
|
Commission |
3254.002 |
3805.795 |
5161.974 |
|
|
Operating expenses related to insurance business |
12151.175 |
12034.778 |
13267.526 |
|
|
Provision for Doubtful debts |
-- |
-- |
-- |
|
|
Bad debts written off |
-- |
--- |
-- |
|
|
Provision for tax |
-- |
(5.875) |
-- |
|
|
Provision (other than taxation) |
|
|
|
|
|
a) for diminution in value of investments (net) |
-- |
-- |
-- |
|
|
b) others |
-- |
-- |
-- |
|
|
Total (B) |
15405.177 |
15834.698 |
18429.500 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
27046.221 |
19343.749 |
11387.815 |
|
|
Interim Bonus Paid |
-- |
-- |
-- |
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
4533.945 |
2779.908 |
4621.359 |
|
|
b) Fund Reserve |
6340.460 |
28912.827 |
63703.604 |
|
|
c) Premium Discontinued Fund - Linked |
431.538 |
6.401 |
-- |
|
|
d) (Amount ceded in Re-insurance) |
(823.696) |
(32.122) |
(759.928) |
|
|
c) Amount accepted in Re-insurance |
-- |
-- |
-- |
|
|
Total (C) |
37528.468 |
51010.763 |
78952.850 |
|
|
|
|
|
|
|
|
Surplus / (Deficit) (D)= (A)-(B)-(C) |
6496.815 |
4876.189 |
1843.782 |
|
|
Appropriations |
|
|
|
|
|
Transfer to shareholders account |
7107.686 |
3290.689 |
149.123 |
|
|
Transfer to other reserves |
-- |
-- |
-- |
|
|
Balance being funds for future appropriation |
(610.871) |
1585.500 |
1694.659 |
|
|
Total (D) |
6496.815 |
4876.189 |
1843.782 |
|
|
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
|
a) interim Bonuses paid |
-- |
-- |
-- |
|
|
b) allocation of bonus to policyholders |
-- |
-- |
-- |
|
|
c) surplus/(Deficit) shown in the revenue account |
6496.815 |
4876.189 |
1694.659 |
|
|
Total Surplus
[(a)+(b)+(c)] |
6496.815 |
4876.189 |
1649.659 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.33
|
1.46 |
1.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86
|
0.86 |
0.82 |
LOCAL AGENCY FURTHER INFORMATION
sundry creditors details:-
|
Particulars
|
31.03.2012 Rs. In Millions |
31.03.2011 Rs. In Millions |
31.03.2010 Rs. In Millions |
|
Sundry Creditors * |
3040.571
|
3320.427
|
3279.234
|
|
|
|
|
|
Note:
*There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2012.This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
|
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 |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
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 |
CHARGES DETAILS
|
ENTITY |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY ACTION(S) / DATE OF ORDER |
FURTHER DEVELOPMENTS |
|
Birla Sun Lifeinsurance Company Limited |
IRDA |
Took blanket approval for raising the limit up to 15% in
respect of industry/group exposure |
imposed penalty Rs.0.600 Million |
|
|
Birla Sun Lifeinsurance Company Limited |
SEBI |
Launched unit linked insurance products (ulips) without obtaining requisite certificate of registration from sebi |
restrained from issuing any offer document, advertisement or brochure soliciting money from investors or raise money from investors by way of new and/or additional subscription for any product (including ulips) having investment component in nature of mutual funds, till they obtain requisite certificate of registration from sebi from 09- April -2010 |
Irda: irda vide order dated 10/04/2010 directed insurance companies to note that not withstanding said order of sebi ,they shall continue to carry out insurance business as usual including offering, marketing and servicing ulips in accordance with insurance act,1938, rules, regulations and guidelines issued there under by irda |
|
Birla Sun Lifeinsurance Company Limited |
Irda |
Defaulted in referral agreements |
advised strictly adhere to provisions of insurance act,
1938 Rs.0 |
|
Note:
The registered office of the company has been shifted from One Indiabulls
Centre, Tower 1, 15th and 16th Floor, Jupiter Mill Compound, 841, S.B Marg,
Elphinstone Road Mumbai – 400013, Maharashtra, India to present
address w.e.f. 22.10.2012
BACKGROUND
Subject headquartered at Mumbai, had commenced operations on 19th March 2001, after receiving the license to transact life insurance business in India from the Insurance Regulatory and Development Authority (‘IRDA’) on 31st January 2001. The license has been renewed annually and is in force as at 31st March 2012.
The Company is a joint venture between Aditya Birla Nuvo Limited, a Company of the Aditya Birla Group of India (74 percent) and Sun Life Financial (India) Insurance Investments Inc., subsidiary of Sun Life Assurance Company of Canada (26 percent). The Company offers non – participating linked and non-linked life insurance, health and pension products including riders for individual and group businesses. These products are distributed through individual agents, corporate agents, banks, brokers and other intermediaries across the country.
FINANCIAL PERFORMANCE
Macro-economic and industry challenges impacted the life insurance industry in FY2012. In this context, the Company’s sales performance was better than the industry. They reported weighted new business premium of Rs 18510.000 Millions for the year. Total premium amounted to Rs.58850.000 Millions and has seen a marginal growth over previous year.
They continued their journey of profitable growth in FY12. Their focus of creating efficiencies and improving the quality of business continues to dominate their strategic priorities. Additionally, they have undertaken several initiatives to augment their distribution capacities, optimize their product mix and improve customer management. These initiatives will be critical and will continue to serve as a guiding measure to help them achieve their long-term goals.
They are pleased to share that they achieved total premium revenue of Rs.58850.000 Millions registering a growth of 4% in the context of subdued growth in the industry. The Company recorded strong performance in FY12 across a range of key financial parameters:
· The Company garnered weighted new business premium of Rs.18510.000 Millions on the back of strong sales of group business. They consolidated their position at no. 5 for overall new business in FY12, among the private players of the industry, compared to no. 6 position last year.
· Renewal premium at Rs.39590.000 Millions saw a growth of 10%. With 13-month persistency at 82%, BSLI has one of the best persistency ratios amongst private insurers.
· The Company registered strong growth in Net profit at Rs.4610.000 Millions against Rs.3050.000 Millions in previous year. The increase in profit was primarily attributed to strong in-force book, change in product structures and expense efficiencies.
· Overall Commission ratio saw a decline to 5.5% in the current year from 6.9% in the previous year due to increase in contribution from renewal premium component and reduction in weighted new business commission rate.
· Opex to total premium ratio reduced marginally in FY12 to 20.7% against 21.2% for FY11 as BSLI augmented its distribution capacities by adding new branches & front-line staff.
· Strong solvency margin at 2.99 against the regulatory requirement of 1.5 indicating the stable financial position.
· Given the robust financial performance, there has been no capital infusion for the past 2 years.
· Considering the Company’s profitability, cash flow and capital position, an interim dividend was paid out for the first time at 5% of share capital amounting to Rs. 985.000 Millions (excl. Dividend Distribution Tax) in Q4 FY12.
They believe the Company is well-positioned to grow profitably and gain market share by leveraging its strong brand, innovative products, talented team and distribution reach.
BUSINESS REVIEW
Industry Scenario
Following the various regulatory developments, the life insurance premium continued to experience a fall in new business premium during FY12. Private players have seen a decline in their market share in individual life business from 57% for FY09 to 37% in FY12. The new business premium figures for FY12, segregated into H1 and H2 for understanding the traction witnessed in the second half, are summarize below:
|
Particulars |
NB Premium (Rs. In
Millions) |
Growth Rates (YoY) |
|||
|
H1FY12 (Apr-Sep’11) |
H2FY12 (Oct’11-Mar’12) |
H1FY12 (Apr-Sep’11) |
H2FY12 (Oct’11-Mar’12) |
||
|
Total |
Private Players |
87420.000 |
149410.000 |
-36% |
-1% |
|
LIC |
182040.000 |
258820.000 |
-12% |
28% |
|
|
Total |
269460.000 |
408240.000 |
-22% |
15% |
|
|
Individual |
Private Players |
68720.000 |
106500.000 |
-43% |
-3% |
|
LIC |
103830.000 |
200370.000 |
-12% |
29% |
|
|
Total |
172550.000 |
306870.000 |
-28% |
16% |
|
Over the last 18-24 months, the regulations have not only impacted new business sales but also the distribution mix, products & operating model across the industry. As a result, the key notable trends for the private players (Top 7 players) have been:
· FY12 saw insurers proactively transitioning to a more balanced product mix & reviewing their distribution strategies.
· Increase in demand for traditional products with industry’s contribution to traditional product mix well at around 80%% for FY12.
· The industry today which comprises of 23 players currently saw a decline in its distribution capacities with the total number of agents declining from 30 Lakhs as on Mar’10 to 23 Lakhs in Dec’11. While the total no. of branches declining from 12,018 as on Mar’10 to 11,546 in Mar’ 12.
· There was a visible shift in distribution mix for the private players with higher contribution from Bancassurance channel to New Business sales.
Summary of Operations
and Business
The total
gross premium amounted to Rs.58850.000 Millions driven by strong renewal
premiums. Renewal premium at Rs.39590.000 Millions saw a growth of 10%. With
13-month persistency at 82%, BSLI has one of the best persistency ratios
amongst private insurers.
The company garnered weighted new business premium of Rs.18510.000 Millions with a growth of (9%) against the industry growth of (17%). They improved their rank by one place over previous year both in individual new business (no. 6) and total new business (no. 5). Post the regulatory changes in Sep’10, they have changed their focus from selling largely unit-linked products to a balanced mix of unit-linked and traditional products with higher focus on higher sum assured, long-term tenure and offering basic guarantees.
BSLI continues to follow a successful multi-channel distribution strategy with over 600 branches, 5 bank partners and around 200 third party distributors.
Agency channel continues to be the Company’s largest distribution channel contributing to 64%of the individual life business and registered new business premium of Rs.9730.000 Millions. The Company gradually augmented its distribution capacities in terms of new branches and Front Line Staff (FLS) during the year. They estimate that they are ranked amongst the top 3 private life insurers in terms of new business revenue from agency channel and have consistently been amongst the top quartile in terms of agents/FLS productivity. Going forward, the Company will continue to create capacities that are sustainable in the long-run and will continuously evaluate options to variabilize its cost structure in the agency channel.
The year saw their Bancassurance channel delivering an Annualized Premium Equivalent (APE) in excess of Rs.2000.000 Millions. With a strong existing bancassurance model to leverage, they are confident that they will be making further in-roads in this channel in the years to come. They are keen to tie-up with a large retail bank partner which will help us achieve high efficiencies and will lead an optimal channel mix in future. Over the past 12 months, the Company has built considerable momentum in this area. Further, the proposed regulatory guidelines on bancassurance are expected to provide opportunities to the Company for additional tie-ups.
Over the past few years, a strong franchise network has been created in the Corporate Agent and Broker (CAB) segment. This business, which currently contributes to 15% of new business sales, saw an APE of Rs.2090.000 Millions in FY12. Their new CAB partners have contributed significantly to new business in FY12 due to addition of new capacities and they are continuously on the look-out for new CAB partners. The endeavor going forward will be to cement their relationships with top 5-10 distributors.
The year also saw Group Business contributing first year premium of Rs. 6760.000 Millions. Their performance was strong driven by improvement in product lines and focus on increasing their penetration which helped us achieve 2nd rank amongst private insurers as on March 31, 2012. The new segmentation and organization structure yielded strong and positive results, and they achieved a growth of 147% in new business.
During the year, the Company filed several new products with the Regulator to focus on under-penetrated segments and to broad-base its product mix. During FY13, keeping in mind the challenges of slow product approvals,
· The Company’s priority will be to build a full suite of traditional products by launching straight forward, need-based products aimed at providing consumers simple solutions.
· Additionally, they will look at expanding their Unit-linked product (ULIP) portfolio and tap new customer segments around pension, health, group business, etc.
· The Company will continue to pursue its balanced product mix strategy of ULIP and Non ULIP to cater to various customer segments and keeping in mind interests of all stakeholders i.e. customers, distributors and shareholders.
Assets under Management (AUM) grew from Rs. 197600.000 Millions in FY11 to Rs. 211000.000 Millions in FY12. For all its unit-linked funds, the Company delivered superior fund performance across the board, consistently beating its benchmark targets. 100% of the funds outperformed their respective (internal) benchmark over long-term (across 3- 5 yrs).
The Company has been meeting its target for rural and social sectors since inception. As in the previous years, the Company complied with both rural and social obligations as mandated by the IRDA and wrote 256,226 policies in FY12. In addition to this, the group insurance cover under social obligations was written for 63,357 lives.
The Company undertook several measures to further improve the health metrics for the business. Maintaining a high level of persistency is important to their financial results, as a large block of in-force policies provides us with regular revenues in the form of renewal premiums. As per IRDA disclosures, the Company is among the top 3 companies (across top 7 players) in terms of 13 month persistency. The Company has further intensified its efforts in this area in the current fiscal with increasing customer engagement through various touch-points, institutionalizing welcome calls, promoting need-based selling, and launching revival campaigns. These initiatives yielded good results with the Company maintaining its 13-month persistency at 82%.
The Company continues to leverage technology and improve customer centricity for achieving its business goals and creating a robust customer service platform to differentiate on customer service. The Company has laid the foundation for creating digital footprint by improving customer self-service and creating enablers for their distributors. The Company developed an online customer enrollment application and enabled more self-servicing options. To improve distributors’ performance, the Company leveraged technology to provide ondemand tracking of information related to sales activity and performance.
Proactive measures have been undertaken to strengthen compliance and risk management function given the Company’s focus to maintain robust internal controls, mitigate risks and improve sales and in spirit and thereby maintain the reputation of being one of most compliant insurance company in an environment of increasing regulatory oversight.
Their investment in branding yielded good results with the consideration scores (i.e. likelihood of prospective customers to purchase a policy) showing improvements. Going forward strength of BSLI brand is expected to become more important and they continue to strengthen their brand performance through an optimal mix of above-the-line and below-the-line activities.
OUTLOOK FOR THE
INDUSTRY AND COMPANY
Since the introduction of significant regulatory changes about 18 months back, there has been a perceptible slowdown in the industry. However, this has given an opportunity to existing insurance players to review their operating models to drive higher efficiencies and focus on more balanced growth objectives.
The Company continues to be optimistic on the future potential of the life insurance sector over the medium to long term. India has several structural advantages in terms of favorable demographics and high rate of financial savings. Greater certainty of regulation, improving macroeconomic environment, increasing product offerings and evolving distribution channels would further enhance growth and profitability.
The Company has identified the following key areas to strengthen its competitive and financial position in the coming years:
· Focus on increasing value proposition in products for customers and focusing on balanced product mix between ULIP and non-ULIP products with a view to targeting all customer segments.
· Driving distribution efficiencies in Agency channel and focusing on maintaining an equitable channel mix by leveraging bancassurance channel.
· Focus on improving quality of business.
· Focus on increasing customer retention and increasing customer life time value.
· Focus on leveraging technology further for increasing customer empowerment, enhancing customer experience and supporting distributors.
AWARDS/ RECOGNITIONS
In addition to recognitions that Company’s claims department has received, BSLI has also won the following awards during FY12:
Company Awards:
• Prestigious "Gold Trophy" in Excellence in Financial reporting from "The Institute of Chartered Accountants of India (ICAI)" for the Financial year 2011 after 2 silver Trophies in the previous years
• 2nd runners up at “Best Presented Accounts & Corporate Governance Disclosures Awards 2011” from South Asian Federation of Accountants (SAFA) in the Insurance sector
• Golden Peacock Award for Excellence in Corporate Governance for the year 2010-11
Marketing Awards
· Go Green Campaign by BSLI – Contactibility and building subscription for e-statement was also chosen for Webby Nomination 2011 - The Webby Awards is the leading international award honouring excellence on the Internet. Established in 1996 during the Web's infancy, the Webbys are presented by The International Academy of Digital Arts and Sciences
· The Internet Advertising Competition (IAC) Awards 2011 produced by the Web Marketing Association, USA to honoured excellence in online advertising to Child Solutions Campaign – NOT JOB BUT PASSION
· Goafest Creative & Media Abby Awards 2011 awarded
In Creative
· Silver in the ‘Direct Marketing - Flat Mail’ category for Birla Sun Life Insurance - Flip Book Flat Mailer
In Media
· Silver in the ‘Best Use Of Never Before Media’ category for Birla Sun Life Insurance – They Cover Everything (during Ganesh festival)
· Bronze in the ‘Best Use Of Outdoor & Ambient Media’ category for Birla Sun Life Insurance - They Cover Everything (during Ganesh festival)
· Internet Advertising Competition Awards 2011 (The Internet Advertising Competition (IAC)) Awards has awarded for Birla Sun Life Insurance – Not Jobs But Passion campaign as a “Best Insurance Integrated ad campaign”
· BBC.com-Campaign India Digital Media Awards 2011 honored BSLI with a Gold in the “financial services website” category for Birla Sun Life Insurance – Not Jobs But Passion micro site
· Internet Advertising Competition Awards 2011 (The Internet Advertising Competition (IAC) Awards has awarded for Birla Sun Life Insurance – Not Jobs But Passion campaign as a “Best Insurance Integrated ad campaign”
· Advertising Agencies Association of India & Advertising Club Bombay awarded a bronze under Media Abby Awards at Goa Fest 2011 as – Best Never Before use of Media
· Advertising Agencies Association of India & Advertising Club Bombay awarded a Gold under Creative Abby Awards at Goa Fest 2011 as – Direct marketing Dimensional Mail
· Advertising Agencies Association of India & Advertising Club Bombay awarded a Silver under Creative Abby Awards at Goa Fest 2011 as – Direct marketing Flat Mail
· Advertising Agencies Association of India & Advertising Club Bombay awarded a Silver under Best use of Outdoor & Ambient media Awards at Goa Fest 2011 as – Direct marketing Flat Mail
· BBC.com-Campaign India Digital Media Awards 2011 honored BSLI with a Gold in the “financial services website” category for Birla Sun Life Insurance – Not Jobs But Passion micro site
CONTINGENT LIABILITY:
|
Particulars |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Partly paid-up investments |
0.000 |
450.000 |
|
Claims, other
than against policies, not acknowledged as debts by the Company |
24.414 |
4.707 |
|
Underwriting commitments outstanding |
0.000 |
0.000 |
|
Guarantees given
by or on behalf of the Company |
0.000 |
0.000 |
|
Statutory
demands / liabilities in dispute, not provided for |
Refer Note Below |
Refer Note Below |
|
Reinsurance
obligations to the extent not provided for in the accounts. |
0.000 |
0.000 |
|
Others * |
153.338 |
118.935 |
Represents potential liability to the Company (net of reinsurance) in respect of cases fi led against the Company’s decision of repudiation of death claims and customer complaints.
Note: The company has received Show Cause-Cum-Demand notices in earlier period relating to Service Tax demands related to excess utilisation of CENVAT credit against liability on risk premium and payment of reimbursements to agents aggregating to Rs.309.471 Millions (previous year Rs.443.025 Millions) plus applicable interest and penalty, which is contested.
fixed assets:
v Goodwill
v intangibles (Software’s)
v Land – Freehold Property
v Buildings
v Furniture and Fittings
v Information Technology
v Equipment
v Vehicles
v Office Equipment
v Others (Leasehold Improvements)
WEBSITE DETAILS:
PRESS RELEASE
BIRLA SUN LIFE
LAUNCHES NEW PENSION PLAN
Birla Sun Life Insurance today launched a new pension plan, BSLI Empower, which
would help customers accumulate their premiums and the investment returns into
a corpus for their retirement needs.
he plan offers customers a choice to select the premium amount, vesting date and risk profile, the private sector insurer said. The premium accumulated till the vesting period will be invested in equity or debt depending on the risk appetite of the customer.
After the customers decide to vest their policy, they would enter the 'income phase', where the corpus will be used to purchase annuity to ensure a stream of regular income payable for the rest of their lives. The plan offers guaranteed additions from the sixth policy anniversary onwards.
The corpus would be managed by BSLI based on the customer's chosen vesting date
and risk profile to meet their retirement objectives. The company is a joint
venture between Aditya Birla Group and Sun Life Financial,
Canada-based international financial services organisation.
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.53.77 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.70.68 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
|
TOTAL |
|
44 |
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.