|
Report Date : |
16.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Nomura, B-Wing, First Floor, Unit No. 102, Near D-Mart, Hiranandani Business Park, Powai, Mumbai – 400076, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on)
: |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
23.03.2007 |
|
|
|
|
Com. Reg. No.: |
11-169110 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 11760.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2007PLC169110 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA30232G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAGCA3203J |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in providing Life Insurance Services. |
|
|
|
|
No. of Employees
: |
1505 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between “Reliagare” a global financial
service group and Bennett Coleman and company, India’s largest media house. It is a well established and reputed company having a satisfactory track
record. There appears huge accumulated losses recorded by the company. However, the capital base of the company appears to be strong. The
subject gets good financial support from its holding companies. Trade relations are reported to be fair. Business is active. Payments
are reported to be slow but correct. In view of strong holding and experience promoters the company can be
considered normal for business dealings.
|
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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. Sanjay |
|
Contact No.: |
91-22-67293276 |
|
Date : |
13.09.2013 |
LOCATIONS
|
Registered Office : |
Nomura, B-Wing, First Floor, Unit No. 102, Near D-Mart,
Hiranandani Business Park, Powai, Mumbai – 400076, Maharashtra, India |
|
Tel. No.: |
91-22-67293276 / 61180100 |
|
Fax No.: |
91-22-61180200 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office : |
Located At all over India |
DIRECTORS
As on 05.07.2013
|
Name : |
Mr. David William Wolf |
|
Designation : |
Nominee director |
|
Address : |
48, McBride way, Bridgewater, New Jersey, NJ 08807-2685, U.S. Citizen |
|
Date of Birth/Age : |
19.03.1964 |
|
|
B.A (Accounting), M.B.A |
|
Date of Appointment : |
11.10.2011 |
|
DIN No.: |
03633892 |
|
|
|
|
Name : |
Mr. Gopalakrishnan Sankaranarayanan Kavassery |
|
Designation : |
Whole-time director |
|
Address : |
A/604, 6th Floor, Akruti Atria, Saiwadi, Andheri (West), Mumbai – 400069, Maharashtra, India |
|
Date of Birth/Age : |
16.10.1963 |
|
Date of Appointment : |
05.07.2013 |
|
DIN No.: |
06567403 |
|
|
|
|
Name : |
Mr. Kashi Nath Memani |
|
Designation : |
Director |
|
Address : |
177 C, Western Avenue, Lane No. 7, Sainik Farms, New Delhi - 110062, India |
|
Date of Birth/Age : |
01.01.1939 |
|
|
C.A. |
|
Date of Appointment : |
31.05.2008 |
|
DIN No.: |
00020696 |
|
|
|
|
Name : |
Mr. Sivakumar Sundaram |
|
Designation : |
Nominee Director |
|
Address : |
6, Shankar Sagar Sophia College Lane, Breach Candy, Mumbai - 400026, Maharashtra, India |
|
Date of Birth/Age : |
23.07.1966 |
|
|
M.Com, FCA, FICWA |
|
Date of Appointment : |
31.05.2008 |
|
DIN No.: |
00105562 |
|
|
|
|
Name : |
Mr. Sunil Naraindas Godhwani |
|
Designation : |
Nominee Director |
|
Address : |
A-2, Inayat Farm, Asola Fatehpur Beri, P.O. Mehrauli, New Delhi -110030, India |
|
Date of Birth/Age : |
10.12.1960 |
|
|
Graduate in Chemical Engg., M.B.A. |
|
Date of Appointment : |
23.03.2007 |
|
DIN No.: |
00174831 |
|
|
|
|
Name : |
Mr. Adarsh Kishore |
|
Designation : |
Director |
|
Address : |
Badarika Farm House, Behind Railway Officers, Colony, Near Jagatpura Railway Station, Jaipur – 302025, Rajasthan, India |
|
Date of Birth/Age : |
04.12.1946 |
|
|
Ph.D, IAS (retd.) |
|
Date of Appointment : |
31.03.2010 |
|
DIN No.: |
02902810 |
|
|
|
|
Name : |
Mr. Douglas Curry Henck |
|
Designation : |
Nominee Director |
|
Address : |
19A, Tower 2, Dynasty Court, 23 Old Peak Road, Mid level, Central Hong Kong, Netherlands |
|
Date of Birth/Age : |
14.02.1953 |
|
|
B.S. Mathematics, Fellow of Society of Actuaries |
|
Date of Appointment : |
14.04.2011 |
|
DIN No.: |
03497177 |
|
|
|
|
Name : |
Mr. Johannes Aart Van Der Steen |
|
Designation : |
Nominee director |
|
Address : |
31, Twenty Sixth Street, Hong Lok Yuen, Tai Po New Territories, Netherlands |
|
Date of Birth/Age : |
23.09.1971 |
|
|
B.A. (Accountancy), C.A., Executive Master of Finance and Control |
|
Date of Appointment : |
11.10.2011 |
|
DIN No.: |
03641656 |
|
|
|
|
Name : |
Mr. Kamlesh Rajaninath Dangi |
|
Designation : |
Nominee director |
|
Address : |
101, Sunville, Plot No 8, JVPD, Vile Parle (West), Mumbai - 400057, Maharashtra, India |
|
Date of Birth/Age : |
07.11.1971 |
|
|
Post Graduate |
|
Date of Appointment : |
23.12.2011 |
|
DIN No.: |
05152439 |
|
|
|
|
Name : |
Mr. Ravi Umesh Mehrotra |
|
Designation : |
Nominee director |
|
Address : |
40A, Block 1, Estoril Court, 55, Garden Road, Mid Levels, Hong Kong |
|
Date of Birth/Age : |
28.01.1961 |
|
|
B.Com, PGDBM |
|
Date of Appointment : |
23.12.2011 |
|
DIN No.: |
01355561 |
KEY EXECUTIVES
|
Name : |
Mr. Jitin Pramodrai Parekh |
|
Designation : |
Secretary |
|
Address : |
203, Trishul II, J. P. Road, Seven Bunglows, Andheri (West), Mumbai 400061, Maharashtra, India |
|
Date of Birth/Age : |
13.05.1974 |
|
Date of Appointment : |
01.02.2010 |
|
PAN No.: |
AAFPP3595A |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 05.07.2013
|
Names of Shareholders |
|
No. of Shares |
|
Religare Enterprises Limited, India |
|
527999832 |
|
Bennett Coleman and Company, India |
|
360000000 |
|
AEGON India Holding B.V, Netherlands |
|
311999958 |
|
*Sunil Godhwani |
|
67 |
|
*Shivinder Mohan Singh jointly Anil Saxena |
|
35 |
|
*Harpal Singh jointly J S Grewal |
|
33 |
|
*Gurpreet Singh Dhillon jointly Chandan Sinha |
|
33 |
|
# Rajiv Jamkhedkar |
|
1 |
|
# K.S.Gopalakrishnan |
|
41 |
|
Total |
|
1200000000 |
Note
* Holding as nominee of Religare Enterprises Limited
# Holding as nominee of AEGON India Holding B. V.
Allottees as on 13.08.2013
|
Names of Allottees |
|
No. of Shares |
|
Religare Enterprises Limited, India |
|
13200000 |
|
Bennett Coleman and Company, India |
|
1500000 |
|
AEGON India Holding B.V, Netherlands |
|
7799998 |
|
K.S.Gopalakrishnan |
|
2 |
|
AEGON Religare Employee Benefits Trust |
|
7500000 |
|
Total |
|
30000000 |
As on 05.07.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
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 : |
Subject is engaged in providing Life Insurance Services. |
GENERAL INFORMATION
|
No. of Employees : |
1505 (Approximately) |
|
|
|
|
Bankers : |
· Axis Bank Limited · Bank of Baroda · HDFC Bank Limited · ICICI Bank Limited · Indusind Bank · State Bank of India ·
Yes Bank Limited ·
Punjab National Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
|
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg, Dadar (West), Mumbai – 400028, Maharashtra,
India |
|
PAN No. : |
AAAFP8828M |
|
|
|
|
Name : |
B K Khare and Company Chartered Accountants |
|
Address : |
706/708, Sharda Chambers, New Marine Lines, Mumbai – 400020,
Maharashtra, India |
|
PAN No. : |
AAAFB0265E |
|
|
|
|
Related parties
where control exists : |
· AEGON India Holdings B.V. · Religare Enterprises Limited · Bennett Coleman and Company Limited |
|
|
|
|
Associates
Companies where transactions have taken place during the year ended March 31,
2013 : |
· AEGON Central Procurement Limited · Religare Finvest Limited · Religare Insurance Broking Limited · Religare Macquarie Wealth Management Limited · REL Infrafacilities Limited · Religare Technologies Limited · Super Religare Laboratories Limited · AEGON Religare Life Insurance Employees Gratuity Fund · Religare Securities Limited · Ligare Travels Limited (Formerly know as Religare Travels (India) Limited) · Religare Wellness Limited · Transamerica Life Insurance Company · AEGON Asia B.V. · Religare Health Insurance Company Limited · Religare Asset Management Company Limited · Religare Capital Markets Limited |
CAPITAL STRUCTURE
After 05.07.2013
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 |
|
|
|
|
|
|
1230000000 |
Equity Shares |
Rs.10/- each |
Rs. 12300.000 Millions |
|
|
|
|
|
As on 05.07.2013
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 |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.10/- each |
Rs. 12000.000 Millions |
|
|
|
|
|
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs. 20000.000 Millions |
|
|
|
|
|
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.10/- each |
Rs. 12000.000 Millions |
|
|
|
|
|
Called up Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1176000000 |
Equity Shares |
Rs.10/- each |
Rs. 11760.000 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 |
11760.000 |
11350.000 |
9500.000 |
|
|
2] Share Application Money Pending Allotment |
240.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Credit / (Debit) fair value change account (Net) |
0.002 |
0.016 |
0.014 |
|
|
NETWORTH |
12000.002 |
11350.016 |
9500.014 |
|
|
|
|
|
|
|
|
POLICYHOLDERS' FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account (Net) |
0.023 |
0.000 |
0.000 |
|
|
Policy Liabilities |
1600.013 |
824.367 |
416.844 |
|
|
Insurance Reserves |
|
|
|
|
|
Linked Liabilities |
7743.462 |
6453.822 |
3973.709 |
|
|
Fair value change |
170.127 |
(128.755) |
118.095 |
|
|
Provision For Linked Liabilities |
7913.589 |
6325.067 |
4091.804 |
|
|
TOTAL BORROWING |
9513.625 |
7149.434 |
4508.648 |
|
|
|
|
|
|
|
|
Funds for Discontinued Policies |
|
|
|
|
|
Discontinued on account of non-payment of premium |
561.777 |
124.486 |
0.165 |
|
|
Others |
-- |
-- |
-- |
|
|
Funds For Future Appropriations (Linked) |
42.239 |
50.042 |
31.987 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
22117.643 |
18673.978 |
14040.814 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
104.809 |
86.602 |
215.981 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Shareholders' |
640.425 |
1591.674 |
1893.089 |
|
|
Policyholders' |
1631.604 |
854.216 |
423.477 |
|
|
Assets Held To Cover Linked Liabilities |
8517.605 |
6499.595 |
4123.956 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000 |
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000 |
|
|
Cash & Bank Balances |
495.590 |
374.299 |
484.818 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
833.842 |
882.422 |
771.471 |
|
Total
Current Assets |
1329.432
|
1256.721
|
1256.289 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
435.036 |
728.971 |
998.617 |
|
|
Other Current Liabilities |
316.903 |
269.970 |
193.096 |
|
|
Provisions |
18.632 |
23.051 |
23.494 |
|
Total
Current Liabilities |
770.571
|
1021.992
|
1215.207 |
|
|
Net Current Assets |
558.861 |
234.729 |
41.082 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
|
|
|
Debit Balance of Profit and Loss Account |
1176.840 |
1007.286 |
436.930 |
|
|
Deficit in the Revenue Account [Policyholders' Account) |
9487.499 |
8399.876 |
6906.299 |
|
|
|
|
|
|
|
|
TOTAL |
22117.643 |
18673.978 |
14040.814 |
|
PROFIT & LOSS
ACCOUNT
Shareholders’ Account (Non-technical Account)
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
Income From Investments |
|
|
|
||
|
|
|
(a) Interest, Dividends and Rent - Gross |
64.847 |
68.936 |
60.918 |
|
|
|
|
(b) Profit on sale/redemption of investments |
10.260 |
18.853 |
9.881 |
|
|
|
|
(c) (Loss on sale/redemption of investments) |
(0.205) |
(103) |
(0.050) |
|
|
|
|
(d) Transfer / Gain on revaluation / change in fair value |
0.000 |
0.000 |
0.000 |
|
|
|
|
(e) Amortisation of premium / discount on investments |
29.950 |
53.494 |
46.068 |
|
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
|
|
TOTAL |
104.852 |
141.180 |
116.817 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
Expenses other than those directly related to the
insurance business |
25.180 |
4.559 |
56.686 |
||
|
|
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 |
||
|
|
(c) Others |
0.000 |
0.000 |
0.000 |
||
|
|
Contribution to the Policyholders' Account (Technical Account) |
249.226 |
706.977 |
297.405 |
||
|
|
|
TOTAL |
274.406 |
711.536 |
354.091 |
|
|
|
|
|
|
|
||
|
|
PROFIT / (LOSS)
BEFORE TAX |
(169.554) |
(570.356) |
(237.274) |
||
|
|
|
|
|
|
||
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT / (LOSS)
AFTER TAX |
(169.554) |
(570.356) |
(237.274) |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1007.286) |
(436.930) |
(199,656) |
||
|
|
|
|
|
|
||
|
|
BALANCE / (LOSS)
CARRIED TO THE B/S |
(1176.840) |
(1007.286) |
(436,930) |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
(1.10) |
(1.97) |
(4.15) |
||
PROFIT & LOSS
ACCOUNT
Pollcyholder’s Account (Technical Account)
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
4305.028 |
4573.205 |
3886.088 |
|
|
b) Reinsurance Ceded |
(137.430) |
(100.072) |
(36.264) |
|
|
c) Reinsurance accepted |
0.000 |
0.000 |
0.000 |
|
|
Sub-total |
4167.598 |
4473.133 |
3.849.824 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
273.604 |
159.493 |
61.522 |
|
|
b) Profit on sale / Redemption of investments |
484.559 |
229.754 |
139.392 |
|
|
c) (Loss) on sale / Redemption of investments |
(349.469) |
(361.523) |
(77.409) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
170.127 |
(128.755) |
118.095 |
|
|
e) Amortisation of premium / discount on investments |
85.893 |
56.425 |
11.564 |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
a) contribution from the shareholders account |
249.226 |
706.977 |
297.405 |
|
|
b) Linked Income |
0.000 |
0.000 |
0.000 |
|
|
c) Appropriation / (Expropriation)
Adjustment |
0.000 |
(9.826) |
6.898 |
|
|
Total (A) |
5081.538 |
5125.678 |
4407.2941 |
|
|
|
|
|
|
|
|
Commission |
162.643 |
247.890 |
219.053 |
|
|
Operating expenses related to insurance business |
2451.217 |
3421.894 |
4063.128 |
|
|
Provision for Doubtful debts |
44.395 |
5.121 |
1.246 |
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
|
Provision for tax |
|
|
|
|
|
(a) Income Tax |
(0.026) |
0.000 |
0.000 |
|
|
Provision (other than taxation) |
0.000 |
0.000 |
0.000 |
|
|
a) for diminution in value of investments (net) |
0.000 |
0.000 |
0.000 |
|
|
b) others |
0.000 |
0.000 |
0.000 |
|
|
Total (B) |
2658.229 |
3674.905 |
4283.427 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
717.276 |
161.187 |
19.907 |
|
|
Interim Bonus Paid |
|
|
|
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
2944.413 |
2670.334 |
3146.766 |
|
|
b) (Amount ceded in Re-insurance) |
(142.954) |
94.773 |
(77.874) |
|
|
c) Amount accepted in Re-insurance |
0.000 |
0.000 |
0.000 |
|
|
Total (C) |
3518.735 |
2926.294 |
3088.799 |
|
|
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
(1095.426) |
(1475.521) |
(2964.935) |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
Transfer to shareholders account |
0.000 |
0.000 |
0.000 |
|
|
Transfer to Balance being ‘Deficit in Revenue Account |
(1087.623) |
(1493.577) |
(2984.345) |
|
|
Balance being funds for future appropriation |
(7.803) |
18.056 |
19.410 |
|
|
Total (D) |
(1095.426) |
(1475.521) |
(2964.935) |
|
|
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
|
a) interim Bonuses paid |
0.000 |
0.000 |
0.000 |
|
|
b) allocation of bonus to policyholders |
166.361 |
109.124 |
40.846 |
|
|
c) surplus/(Deficit) shown in the revenue account |
0.000 |
0.000 |
0.000 |
|
|
Total Surplus
[(a)+(b)+(c)] |
166.361 |
109.124 |
40.846 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.79
|
0.63 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.73
|
1.23 |
1.03 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
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 |
CURRENT MATURITIES OF
LONG TERM DEBTS : NOT AVAILABLE
INDEX OF CHARGES : NO
CHARGES EXIST FOR COMPANY
BACKGROUND
The Company is a
joint venture between AEGON India Holding B.V, Religare Enterprises Limited and
Bennett Coleman and Company Limited was incorporated on March 23rd,
2007 under the Companies Act, 1956 (‘the Act’) to undertake and carry on the
business of life insurance business in India. The Company has obtained a
registration from the Insurance Regulatory and Development Authority (‘IRDA’)
dated June 27th, 2008 for carrying on the business of life insurance
in India.
The Company’s life
insurance business comprises of Participating, consisting of Non Linked
business of Individual Insurance products and Pension Insurance products, and
Non Participating consisting of Non Linked business of Individual, Group and
Health Insurance and Linked business of Life, Pension and Group Gratuity. These
products also have riders attached to them such as Accidental Death,
Dismemberment and Disability benefit, Critical illness, Waiver of Premium,
Women Care, Total Permanent Disability, Term rider etc. These products are
distributed through individual agents, corporate agents, brokers, referral
partners and direct channel.
INDUSTRY OUTLOOK
2012-13 continued
to be slow for the Life Insurance industry, with the individual non single
premium sales showing a flat movement. There was some marginal increase of 5%
for the private sector. The significant regulatory changes of 2010-11 continued
to have a major impact on the industry as the adjustment to the new measures
has taken substantial time.
The share of the
private sector for financial year 2012-13 in the overall industry pie is around
28% (down from 29% in Financial year 2011-12) on the basis of first year
received premium and 38% (up from 37% in Financial year 2011-12) on the basis
of first year received individual non-single premium.
In response to the
reduction in profit margins, many companies in the private sector focused on
the bottom line. 14 companies posted positive net income in 2011-12 as against
9 companies in 2010-11. This now includes most of the phase 1 private sector
insurance companies in India.
SIXTH YEAR OF
BUSINESS OPERATIONS
The Company’s
theme for its sixth year was ‘Deliver Change for Growth’. The financial year
started with the focus on growing the business on the back of the existing
geographical foot print and resources built until 2011-12. The strategy was to
drive focus on increasing core advisors through the year, strengthening key
accounts on the third party distribution and add more in the Wealth space and
specific geographies, scaling up D2C (Direct to Customer) volumes using
affinity partnerships and on-line sale of protection products, and focus on
13th month persistency at channel level increasing reinstatement from the lapse
base.
However, given the
challenges faced during the first half of the year with significant degrowth
and a lag on the Company plan, a review of strategic objectives was undertaken,
keeping the next two to three years in focus and the reality of capital
constraint faced by the Company. As a result of this exercise, certain
immediate steps were taken including scaling down the Agency channel, second
round of cost rationalization with emphasis of lowering Corporate office (Head
office and Zonal office) cost, focus on persistency of inforce business, focus
on improving Net Promoter Score from customers and utilize existing resources
efficiently to drive the business volumes. As at March 31, 2013 the Company has
70 branches (Previous year – 105). During the year the Company sold around
64,300 (Previous year 79,500) individual policies registering de-growth of 19%
and received first year business premium income of Rs. 1359.091 millions
(Previous year Rs. 2076.517 millions) registering a de-growth of 35%. The total
received premium was Rs. 4305.377 millions (Previous year Rs. 4573.205
millions) registering a de-growth of 6%.
PRODUCT
DEVELOPMENT
As part of the
product development strategy, the Company continues to focus on delivering
superior value to the end customer (i.e. policyholder).
The Company had an
established range of unit linked, protection and participating products at the
start of the year.
On the on-line
platform they launched the iHealth (hospitalization cover) product with a rider.
The on-line protection product, revised iTerm rolled out with the innovative
features and competitive pricing in the last quarter of 2011-12 continued to be
the flagship product for the on-line platform supported by iMaximize which is a
competitively priced ULIP on the on-line space. Ideation continued through the
year to further strengthen the on-line product portfolio with work commenced in
the second half.
Further, 2 new
term products were launched towards the end of the first half of the year with
one of them having the ‘return of premium’ as part of the product offering. 2
riders were also launched in the first half of the year including a ‘Women
Care’ rider and ‘TPD rider’ both available with the term plan (offline).
Towards the end of the financial year, the Company launched the Assured Returns
Plan (ARP) with a guaranteed return which is a limited edition product. ARP has
been received very well by the customers and has contributed a significant
share to the product mix of the channels and company in February 2013 and March
2013 (Highest product mix of 26% in terms of APE in March 2013).
As at March 31,
2013 the Company has 20 products which are open for sale on the individual
business complemented with 10 riders. The products include 7 unit linked
insurance products including 1 on-line product (iMaximize), 7 protection
products including 1 health and 1 on-line term (iTerm), 5 traditional plan
products Including 4 traditional participating products and 1 traditional
non-participating product and one immediate annuity plan. On the Group
category, the Company has the Unit linked Gratuity product, Group Term life,
Group Credit life and a Group Leave Encashment product.
The Company will
continue to focus on developing innovative products through the current
financial year including customizing products for different channels to provide
the appropriate value proposition to each customer segment through different
channels. There would be a concerted focus on developing products for the
internet platform to drive innovation in E-sales and maintain the leadership
position.
BRANDING AND
MARKETING INITIATIVES
Continuing from
the focus on conserving capital and rationalizing costs, the Company kept a low
profile on marketing campaigns, largely confining the campaigns to BCCL
properties such as print and radio. Towards the end of the financial year the
Company maintained outdoor media presence in select cities with a focused
launch of the limited edition new product (Assured Returns Plan).
The Company
website was revamped with the objective of making it more customer friendly and
configure the same for better search optimization. Further development was done
on the ‘direct to consumer’ branding platform in the online space with
visibility spends being incurred across web properties including the BCCL
properties. The presence on digital media in addition to the focus on driving
on-line business has enabled maintain brand saliency for the Company without
direct spends.
Focused analytics and
customer need identification enabled the Company to achieve a cross sell under
the direct business of over 30%.
The brand also
actively engaged with the press through the year leveraging multiple
opportunities in different geographies to create a credible platform for
dissemination of the brand message and properties.
OPERATIONS
The Company
continues to operate a strong customer-centric operation with complete focus on
customer satisfaction. During the year, operations continued enhancing
efficiencies in term of cost. This included redesigning customer communications
and price negotiation with key vendors to revise the pricing down-wards
significantly.
Testing of Key
day-2 system functionality was completed and ready for implementation. This
would ensure that service delivery to customer is enhanced besides regulatory
and financial risk due to manual errors mitigated significantly.
Renewal collection
platform was enhanced to include direct debit across 14 banks. This increased
the reach to about 18,000 additional branches and supplemented the ECS method
of renewal collection. More enhancements to renewal collection platform will be
done in FY2013-14.
Information
technology continues to be the backbone, for providing better customer
centricity approach and also in taking products to their customers, prospects
and distributors. Some of the important initiatives the company has done during
the year are towards ensuring that all the functionalities that are required to
service the customer are
developed and
available in the system. In another significant milestone, the company has
launched ‘At the door step’ of customer by implementing Verifone, for point of
sale and renewal collections.
CONTINGENT LIABILITY
|
Particular |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
Statutory demands/ liabilities in dispute, not provided for |
1.968 |
-- |
|
Others (In relation to Claims against policies) |
26.663 |
17.143 |
|
Total |
28.631 |
17.143 |
FIXED ASSETS
v
Tangible
Assets
· Leasehold improvements
· Furniture and Fittings
· Information Technology Equipment
· Vehicles
· Office Equipment
v
Intangible
Assets
· Goodwill
· Software
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.63.79 |
|
|
1 |
Rs.100.70 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYN |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
42 |
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.