|
Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED (w.e.f 06.07.2004) |
|
|
|
|
Formerly Known
As : |
OM KOTAK MAHINDRA LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
4th Floor, Vinaya Bhavya Complex, 159A, CST Road, Kalina, Santacruz
(East), Mumbai – 400098, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128503 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 5102.902
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66030MH2000PLC128503 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMO02128A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACO3983B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is in the business of Life Insurance and Annuity. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 32000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Company has performed well. Directors are reported to be experienced and
respectable businessmen. Trade relations are reported to be fair. Business is active. Payment
terms are reported to be regular and as per commitment. 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
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to retain
100 per cent foreign direct investment in both greenfield (new) and brown field
(existing) pharmaceutical companies, despite concerns over genetic drugs going
out of production, if multi-national companies take over domestic ones. In
M&A deals, a non-compete clause would not be allowed, except in special
circumstances. The Department of Industrial Policy and Promotion plans to
release the next edition of its consolidated foreign direct investment policy
document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the Internet
& Mobile Association of India and IMRB International. India had 110
million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus on providing payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is likely
to be present in July by the new government formed after the General Election.
The government will soon launch an internet spy system, called Netra, to detect
malafide messages. Security agency will deploy the system to capture dubious
voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-22-65993626)
LOCATIONS
|
Registered/ Corporate Office : |
4th Floor, Vinaya Bhavya Complex, 159A, |
|
Tel. No.: |
91-22-66215999/ 65993626 |
|
Fax No.: |
91-22-66215757/ 66215858 /66726254 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
Customer Service Centre :
|
Kotak Infinity, Building No. 21, |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Uday Kotak |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Shailesh Devchand |
|
Designation : |
Vice-Chairman |
|
|
|
|
Name : |
Mr. Gaurang Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
G. Murlidhar |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
R. Mahesh Kumar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Cedric Fernandes |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Sunil Sharma |
|
Designation : |
Appointed Actuary |
|
|
|
|
Name : |
Mr. Sudhakar Shanbag |
|
Designation : |
Chief Investment Officer |
|
|
|
|
Name : |
Mr. Sugata Dutta |
|
Designation : |
Executive Vice President and Head, Human Resources |
|
|
|
|
Name : |
Mr. Suresh Agarwal |
|
Designation : |
Executive Vice President and Head, Distribution & Strategic Initiatives |
|
|
|
|
Name : |
Ms. Kirti Patil |
|
Designation : |
Senior Vice President and Head, Information Technology |
|
|
|
|
Name : |
Mr. Anand Dewan |
|
Designation : |
Senior Vice President and Head, Business Impact Group |
|
|
|
|
Name : |
Ms. Elizabeth Venkataraman |
|
Designation : |
Senior Vice President and Head, Marketing |
|
|
|
|
Name : |
Mr. Hitesh Veera |
|
Designation : |
Senior Vice President and Head, Operations, Customer Service, Underwriting & Claims |
|
|
|
|
Name : |
Mr. Subhasis Ghosh |
|
Designation : |
Senior Vice President and Head, Financial Institutions Group |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
PATTERN
OF SHAREHOLDING
(AS
CERTIFIED BY THE MANAGEMENT)
|
Particulars |
31.03.2013 |
|
|
|
Number of Shares |
% Holding |
|
Shareholders |
|
|
|
Promoters |
|
|
|
- Indian |
|
|
|
Kotak Mahindra Bank Limited, the holding company and its nominees |
260248044 |
|
|
Kotak Mahindra Prime Limited |
54000000 |
|
|
Kotak Mahindra Capital Company Limited |
63366753 |
|
|
(A) |
377614797 |
74% |
|
- Foreign (B) |
132675452 |
26% |
|
|
|
|
|
Total (A+B) |
510290249 |
100% |
BUSINESS DETAILS
|
Line of Business : |
Subject is in the business of Life Insurance and Annuity. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
· Andhra Bank Bank of Baroda Canara Bank Corporation Bank Federal Bank IDBI Bank Oriental Bank of Commerce State Bank of Patiala Union Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Walker, Chandiok
and Company Chartered Accountants |
|
Address : |
16th Floor, Tower
II, Indiabulls Finance Centre, S B Marg, Elphinstone (West), Mumbai - 400013,
Maharashtra, India |
|
|
|
|
Auditors 2 : |
|
|
Name : |
S.R. Batliboi and
Company LLP Chartered Accountants |
|
Address : |
14th Floor, The Ruby
29, Senapati Bapat Marg Dadar (West), Mumbai – 400028, Maharashtra, India |
|
|
|
|
Holding Company
: |
Kotak Mahindra Bank Limited |
|
|
|
|
Joint Venturer : |
Old Mutual Plc |
|
|
|
|
Enterprise in
which joint venturer has significant influence : |
Old Mutual Life Assurance Company (South Africa) Limited |
|
|
|
|
Fellow
Subsidiaries : |
· Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Trusteeship Service Limited Kotak Investment Advisors Limited |
|
|
|
|
Entities managed
by Fellow Subsidiaries : |
Kotak Mahindra Mutual Fund managed by Kotak Mahindra Asset Management Company Limited |
|
|
|
|
Enterprises in which
key management personnel have significant influence : |
· Kotak Life Insurance Superannuation Fund Kotak Mahindra Old Mutual Life Insurance Employees
Gratuity Fund |
|
|
|
|
Enterprises in
which relatives of key management personnel have significant influence : |
· Kotak Commodities Services Limited Business Standard Limited |
|
|
|
|
Other related
parties : |
· Matrix Business Services India Private Limited Phoenix Arc Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
625,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 6250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
510,290,249 |
Equity Shares |
Rs. 10/- each |
Rs. 5102.902
Millions |
|
|
|
|
|
Notes:
(a) Of the above, 260,248,044 (2012 – 260,248,044) Equity Shares of Rs.
10 each fully paid up are held by Kotak Mahindra Bank Limited, the holding
company and its nominees, 54,000,000 (2012-54,000,000) and 63,366,753
(2012-63,366,753) fully paid-up Equity Shares of Rs. 10 each are held by Kotak
Mahindra Prime Limited and Kotak Mahindra Capital Company Limited respectively,
which are subsidiaries of Kotak Mahindra Bank Limited.
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: |
|
|
|
|
Share Capital |
5102.902 |
5102.902 |
5102.902 |
|
Reserves and Surplus |
2923.798 |
1026.416 |
520.363 |
|
Credit/[Debit] Fair Value Change Account |
0.000 |
0.000 |
0.000 |
|
Sub-Total |
8026.700 |
6129.318 |
5623.265 |
|
|
|
|
|
|
Borrowings |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Policyholders’
Funds: |
|
|
|
|
Credit/[Debit] Fair Value Change Account |
0.015 |
0.386 |
61.313 |
|
Policy Liabilities |
|
|
|
|
- Life Participating |
12060.895 |
8696.073 |
6542.365 |
|
- Pension Participating |
713.480 |
635.796 |
520.136 |
|
- Life Non- Participating |
5275.534 |
3043.846 |
1923.516 |
|
- General Annuity |
55.591 |
0.000 |
0.000 |
|
- Unit Linked |
1556.438 |
1916.780 |
2494.138 |
|
- Unit Linked Pension |
128.665 |
116.994 |
91.307 |
|
|
19790.603 |
14409.489 |
11571.462 |
|
Insurance Reserves |
|
|
|
|
- Life Participating |
185.317 |
81.751 |
2.926 |
|
- Pension Participating |
71.092 |
42.005 |
39.294 |
|
- Life Non- Participating |
0.000 |
0.000 |
0.000 |
|
- General Annuity |
0.000 |
0.000 |
0.000 |
|
- Unit Linked |
0.000 |
0.000 |
0.000 |
|
- Unit Linked Pension |
0.000 |
0.000 |
0.000 |
|
|
256.409 |
123.756 |
42.220 |
|
Provision for Linked Liabilities |
|
|
|
|
- Linked Liabilities |
77571.750 |
71788.829 |
64075.455 |
|
- Fair Value Change |
2140.015 |
2229.199 |
3750.715 |
|
|
79711.765 |
74018.028 |
67826.170 |
|
|
|
|
|
|
Sub-Total |
99758.792 |
88551.659 |
79501.165 |
|
|
|
|
|
|
Funds for Discontinued policies |
|
|
|
|
- Discontinued on account of non-payment of premium |
459.952 |
150.047 |
0.009 |
|
- Others |
0.000 |
0.000 |
0.000 |
|
Funds for Future Appropriation:-Linked Liabilities |
554.829 |
1438.124 |
2037.320 |
|
Others |
0.000 |
0.000 |
1.009 |
|
|
|
|
|
|
Total |
108800.273 |
96269.148 |
87162.768 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
Investments |
|
|
|
|
– Shareholders |
6296.974 |
4303.890 |
3222.635 |
|
– Policyholders’ |
22612.172 |
17328.641 |
12836.740 |
|
Assets Held to Cover Linked Liabilities |
80726.548 |
75606.199 |
69863.499 |
|
Loans |
58.707 |
63.652 |
57.742 |
|
Fixed Assets |
316.726 |
365.655 |
438.489 |
|
Current Assets |
|
|
86419.105 |
|
Cash and Bank Balances |
1634.150 |
1426.287 |
2249.389 |
|
Advances and Other Assets |
1949.330 |
1393.270 |
992.314 |
|
Sub-Total (A) |
3583.480 |
2819.557 |
3241.703 |
|
|
|
|
|
|
Sundry Creditors |
82.572 |
104.395 |
52.616 |
|
Other Current Liabilities |
4617.077 |
3906.656 |
3781.250 |
|
Provisions |
94.685 |
207.395 |
190.604 |
|
Sub-Total (B) |
4794.334 |
4218.446 |
4024.470 |
|
Net Current Assets (C) = (A-B) |
(1210.854) |
(1398.889) |
(782.767) |
|
|
|
|
|
|
Miscellaneous Expenditure (To the extent not written off or adjusted) |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account (Shareholders’ Account) |
0.000 |
0.000 |
1526.430 |
|
|
|
|
|
|
Total |
108800.273 |
96269.148 |
87162.768 |
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2013
POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
|
Premiums earned
- Net |
|
|
|
|
|
(a) Premium |
27777.846 |
29374.331 |
29755.081 |
|
|
(b) Reinsurance ceded |
(537.931) |
(445.129) |
(345.451) |
|
|
(c) Re-insurance accepted |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Income from
Investments |
|
|
|
|
|
(a) Interest, Dividends and Rent Gross- Net of
accretion/amortization of Discount/Premium |
5322.089 |
4696.449 |
3693.283 |
|
|
(b) Profit on sale / redemption of investments |
7077.492 |
3505.088 |
4848.094 |
|
|
(c) (Loss on sale / redemption of investments) |
(2697.846) |
(4113.992) |
(1729.485) |
|
|
(d) Transfer /Gain on revaluation / change in Fair value |
(89.184) |
(1521.516) |
(275.156) |
|
|
Other Income |
|
|
|
|
|
(a) Contribution from the Shareholders' A/c |
412.221 |
0.000 |
88.235 |
|
|
(b) Miscellaneous income |
20.551 |
30.811 |
44.446 |
|
|
(c) Profit/(Loss) on sale/disposal of fixed assets (Net) |
(2.347) |
(13.936) |
(2.955) |
|
|
|
|
|
|
|
|
Total (A) |
37282.891 |
31512.106 |
36076.092 |
|
|
|
|
|
|
|
|
Commission |
1174.124 |
1121.193 |
1301.669 |
|
|
Operating Expenses related to Insurance Business |
5732.751 |
5546.026 |
5800.575 |
|
|
Provision For Doubtful Debts |
0.000 |
0.000 |
0.000 |
|
|
Bad Debts Written Off |
0.000 |
0.000 |
0.000 |
|
|
Provision for Tax |
58.637 |
0.000 |
0.000 |
|
|
Provisions (other than taxation) |
|
|
|
|
|
(a) For diminution in the value of investments (net) |
12.706 |
0.000 |
0.000 |
|
|
(b) Others |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Total (B) |
6978.218 |
6667.219 |
7102.244 |
|
|
|
|
|
|
|
|
Benefits Paid (Net) |
17821.346 |
14349.423 |
10361.522 |
|
|
Interim and Terminal Bonuses Paid |
24.194 |
2.533 |
0.000 |
|
|
Change in
valuation of liability against life policies |
|
|
|
|
|
(a) Gross |
5345.931 |
2852.546 |
2316.844 |
|
|
(b) Amount ceded in Reinsurance |
35.182 |
(14.519) |
17.831 |
|
|
(c) Amount accepted in Reinsurance |
0.000 |
0.000 |
0.000 |
|
|
Provision for Linked Liabilities |
6003.643 |
6459.042 |
15410.771 |
|
|
|
|
|
|
|
|
Total (C) |
29230.296 |
23649.025 |
28106.968 |
|
|
|
|
|
|
|
|
SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C) |
1074.377 |
1195.862 |
866.880 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to Shareholders' Account |
1825.020 |
1710.091 |
895.051 |
|
|
Transfer to Other Reserve |
0.000 |
0.000 |
0.000 |
|
|
Balance being Funds for Future Appropriations |
(883.295) |
(595.765) |
(17.558) |
|
|
Surplus/(Deficit) after Appropriation |
132.652 |
81.536 |
(10.613) |
|
|
|
|
|
|
|
Total (D) |
1074.377 |
1195.862 |
866.880 |
|
|
|
|
|
|
|
|
SURPLUS/(DEFICIT)
BROUGHT FORWARD |
123.756 |
42.220 |
52.833 |
|
|
Surplus/(Deficit) after Appropriation |
132.652 |
81.536 |
(10.613) |
|
|
SURPLUS/(DEFICIT)
CARRIED FORWARD TO BALANCE SHEET |
256.408 |
123.756 |
42.220 |
|
|
|
|
|
|
|
|
a) Interim & Terminal Bonuses Paid |
24.194 |
2.533 |
0.000 |
|
|
b) Allocation of bonus to policyholders |
423.356 |
325.995 |
261.577 |
|
|
c) Surplus shown in the revenue account |
132.652 |
81.536 |
(10.613) |
|
|
Total Surplus: [(a)
+ (b) + (c )] |
580.202 |
410.064 |
250.964 |
|
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2013
SHAREHOLDERS'
ACCOUNT (NON-TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Amount
Transferred From Policyholder Account (Technical Account) |
1825.020 |
1710.091 |
895.051 |
|
Income from Investments |
|
|
|
|
(a) Interest, Dividend & Rent - Net of Amortization |
519.542 |
323.023 |
218.632 |
|
(b) Profit on sale / redemption of investments |
19.076 |
3.815 |
7.619 |
|
(c) (Loss on sale / redemption of investments) |
(19.515) |
(0.360) |
(0.062) |
|
Other Income |
|
|
|
|
TOTAL (A) |
2344.123 |
2036.569 |
1121.240 |
|
|
|
|
|
|
Expenses other
than those directly related to the insurance |
7.249 |
4.087 |
8.260 |
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
Provisions (Other than taxation) |
|
|
|
|
(a) For diminution in the value of investment (net) |
0.000 |
0.000 |
0.000 |
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
0.000 |
|
(c) Others |
|
|
|
|
-Contribution to the Policyholders Fund |
412.221 |
0.000 |
88.235 |
|
Total (B) |
419.470 |
4.087 |
96.495 |
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
1924.653 |
2032.482 |
1024.745 |
|
Provision for Taxation |
|
|
|
|
- Current Year |
27.270 |
0.000 |
0.000 |
|
- Earlier Year |
0.000 |
0.000 |
0.000 |
|
PROFIT / (LOSS)
AFTER TAX |
1897.383 |
2032.482 |
1024.745 |
|
|
|
|
|
|
Appropriations |
|
|
|
|
(a) Balance at the beginning of the period/year |
506.052 |
(1526.430) |
(2551.175) |
|
(b) Interim dividend during the period/year |
0.000 |
0.000 |
0.000 |
|
(c) Proposed final dividend |
0.000 |
0.000 |
0.000 |
|
(d) Dividend distribution tax |
0.000 |
0.000 |
0.000 |
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Profit / (Loss) carried to the Balance Sheet |
2403.435 |
506.052 |
(1526.430) |
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.72 |
3.98 |
2.01 |
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 |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
No |
|
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 |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No: ITXAL/683/2012 Filing Date:
25.04.2012 Reg. No.: ITXA/674/2012 Reg. Date: 09.07.2012 |
|
Petitioner: COMMISSIONER OF INCOME TAX-1 Respondent: KOTAK
MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED Petn. Adv : SURESH KUMAR (0) Resp.Adv.:
ATUL K. JASANI (0) District: MUMBAI |
|
Bench: DIVISION Status: Pre-Admission
Category: TAX APPEALS Next Date: 04.02.2014
Stage: Coram: ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
|
Act: Income Tax Act, 1961 UNDER SECTION: 260 A |
CURRENT MATURITIES
OF LONG TERM DEBT: NOT AVAILABLE
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
BACKGROUND
Subject was incorporated on August 31, 2000 as a Company under the
Companies Act, 1956 to undertake and carry on the business of life insurance
and annuity. The Company obtained a license from the Insurance Regulatory and
Development Authority („IRDA‟) dated January
10, 2001 for carrying on the business of life insurance and annuity. The
license has been renewed regularly and is in force as at March 31, 2013.
BUSINESS AND
DISTRIBUTION CHANNELS
A) INDIVIDUAL
BUSINESS
The year witnessed increased focus towards traditional products and an
increasing trend towards long-term selling, which augurs well for the Industry.
The Company has driven protection and long term savings (PALTS) across its
distribution verticals.
The Company’s Life Advisors and the distribution team worked hard to
successfully adapt to changes in their operating environment. Life Advisors
exiting the profession is a challenge for the Industry as a whole. The Company
is working on the challenge and remains confident of adjusting to changes in
the Industry and environment and improve its distribution strength.
The Company continues to focus on distribution efficiency and will
ensure that it remains a key deliverable in next fiscal as well. Investment in
training Life Advisors and sales hierarchy have been stepped up to ensure that
the distribution is equipped to meet customers’ expectations.
Kotak Mahindra Bank has a share of 62% (APE basis) of Alternate Channel
business for Financial Year 2012-13. Besides Kotak Mahindra Bank, we have
agency tie ups with cooperative and commercial banks, corporate agents and
brokers which also contribute to the premium income.
B) GROUP BUSINESS
The Company provides a range of products from Term Insurance, Group
Gratuity and Group Mortgage Insurance Schemes to cater to its group clientele.
The Company generated a premium income of Rs. 5000.000 Millions (FY 2011-12 Rs.
3540.000 Millions) from the group insurance business representing a growth of
41.2% over FY 2011-12.
PRODUCTS
The Company launched Kotak Assured Protection Plan, a unique and first
of its kind traditional product which offered the customer ‘Complete
Protection’ or protection against every conceivable outcome during the term,
such as natural death, accidental death, accidental disability, critical
illness or on survival at end of the term. This is an innovative product in the
Industry to provide for all these benefits in a single product. The Company
also launched Kotak Single Invest Plus, a single premium unit linked joint life
plan. The Company also launched two Group Products in the Traditional Non Par
Segment – Kotak Secure Return Gratuity Plan and Kotak Secure Return Leave
Encashment. A Leave Encashment product has been introduced for the first time
in the Company’s product portfolio.
MARKETING
The Company’s marketing efforts during the year were focused on
establishing the Company’s core purpose of ‘adding value to people’s lives
through Protection and Long Term Savings’ (PALTS) and reinforcing the culture
of customer-centricity in every outreach.
The Company’s website was redesigned to reflect this commitment and it
has fared well on usability tests and user surveys, on criteria of ease of use,
navigation, design and content.
The Company also reworked on its recruitment and sales tools to make
them more effective. Comprehensive kits were created in keeping with the
essence of various channels, to drive volumes in Life Advisor recruitment and
to attract good talent. Sales enablers were also designed in keeping with PALTS
and transformed sales strategies.
The Company’s Facebook application won a Bronze at the Campaign India
Digital Media Awards. The Company’s innovative use of in-car advertising in
Meru cabs won it a Bronze in the new media category. The Company’s Facebook
page has crossed 1 Lakh fans.
INDUSTRY SCENARIO
The private industry has witnessed a fall of 6% in new business premiums
over the previous year. In this new environment of sluggish growth, focus of
insurers will shift from large-scale expansion to sustained value creation and
efficient use of capital coupled with productivity of distribution channels. A
fresh set of Regulations which have bearing on all categories of products,
across the Industry, were released in the beginning of March and the Company’s
product design efforts would be directed to ensure that the present products
are revamped and are ready and available to customers on time.
OPERATIONS AND
CUSTOMER SERVICE
The Company is committed to best in class customer service and
recognizes it to be a key long term strategic differentiator. Towards this end,
during the course of the year, the Company invested in several initiatives to
make the customers’ experience seamless and pleasant.
1.
The Company introduced multiple new modes through
which customers can pay premiums apart from expanding and strengthening
existing ones. The Company’s customers can now pay premiums through debit and
credit card online, or through credit card at branches or over the Company’s
Interactive Voice Response (IVR) system, or pay using a mobile device through
the Interbank Mobile Payment Service (IMPS), a first in the insurance sector.
The Company has extended the Regional Electronic Clearing Service (RECS)
facility to 16 states and the direct debit facility to 14 Banks, besides
enabling customers to pay via standing instructions on their Kotak Bank Credit
Card.
2.
In line with the Company’s avowed commitment to
sustainability, the Company actively encourages customers to shift from paper
based communication to paperless communication via the electronic mode.
3.
The Company has enhanced its online policyholder
self-service platform, ‘Online Policy Manager’, with several features to
improve its usability such as auto registration facility and premium calendar.
REVENUE ACCOUNT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2013
POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)
(RS. IN MILLIONS)
|
PARTICULARS |
For the Quarter
ended on 30.09.2013 (Unaudited) |
Upto the Quarter
ended on 30.09.2013 (Unaudited) |
|
|
|
|
|
|
|
Premiums earned
- Net |
|
|
|
|
(a) Premium |
6070.254 |
10968.489 |
|
|
(b) Reinsurance ceded |
(127.337) |
(302.432) |
|
|
(c) Re-insurance accepted |
0.000 |
0.000 |
|
|
|
|
|
|
|
Income from
Investments |
|
|
|
|
(a) Interest, Dividends and Rent Gross- Net of
accretion/amortization of Discount/Premium |
1657.410 |
3234.414 |
|
|
(b) Profit on sale / redemption of investments |
1882.289 |
5266.861 |
|
|
(c) (Loss on sale / redemption of investments) |
(3910.118) |
(5071.803) |
|
|
(d) Transfer /Gain on revaluation / change in Fair value |
(1832.965) |
(1775.619) |
|
|
|
|
|
|
|
Contribution from the Shareholders' A/c |
99.582 |
128.160 |
|
|
|
|
|
|
|
Other Income |
|
|
|
|
(a) Miscellaneous income |
3.708 |
3.967 |
|
|
(b) Profit/(Loss) on sale/disposal of fixed assets (Net) |
0.601 |
0.898 |
|
|
|
|
|
|
|
Total (A) |
3843.425 |
12452.935 |
|
|
|
|
|
|
|
Commission |
314.093 |
457.899 |
|
|
Operating Expenses related to Insurance Business |
1427.068 |
2799.066 |
|
|
Provision For Doubtful Debts |
0.000 |
0.000 |
|
|
Bad Debts Written Off |
0.000 |
0.000 |
|
|
Provision for Tax |
29.914 |
91.700 |
|
|
Provisions (other than taxation) |
|
|
|
|
(a) For diminution in the value of investments (net) |
(3.560) |
4.189 |
|
|
(b) Others |
0.000 |
0.000 |
|
|
|
|
|
|
|
Total (B) |
1767.516 |
3352.854 |
|
|
|
|
|
|
|
Benefits Paid (Net) |
3915.339 |
8544.921 |
|
|
Interim and Terminal Bonuses Paid |
10.541 |
17.454 |
|
|
Change in
valuation of liability against life policies |
|
|
|
|
(a) Gross |
1520.620 |
3130.344 |
|
|
(b) Amount ceded in Reinsurance |
2.014 |
(6.219) |
|
|
(c) Amount accepted in Reinsurance |
0.000 |
0.000 |
|
|
Provision for Linked Liabilities |
(3752.773) |
(3657.362) |
|
|
|
|
|
|
|
Total (C) |
1695.741 |
8029.138 |
|
|
|
|
|
|
|
SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C) |
380.168 |
1070.943 |
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to Shareholders' Account |
0.000 |
0.000 |
|
|
Transfer to Other Reserve |
0.000 |
0.000 |
|
|
Balance being Funds for Future Appropriations |
(174.658) |
(273.410) |
|
|
Surplus/(Deficit) after Appropriation |
554.825 |
1344.353 |
|
|
|
|
|
|
Total (D) |
380.168 |
1070.943 |
|
|
|
|
|
|
|
SURPLUS/(DEFICIT)
BROUGHT FORWARD |
0.000 |
256.408 |
|
|
Surplus/(Deficit) after Appropriation |
554.825 |
1344.353 |
|
|
SURPLUS/(DEFICIT)
CARRIED FORWARD TO BALANCE SHEET |
554.825 |
1600.761 |
|
|
|
|
|
|
|
a) Interim & Terminal Bonuses Paid |
10.541 |
17.454 |
|
|
b) Allocation of bonus to policyholders |
0.000 |
0.000 |
|
|
c) Surplus shown in the revenue account |
554.825 |
1344.353 |
|
|
Total Surplus: [(a)
+ (b) + (c )] |
565.366 |
1361.807 |
|
PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2013
SHAREHOLDERS'
ACCOUNT (NON-TECHNICAL ACCOUNT)
|
PARTICULARS |
For the Quarter
ended on 30.09.2013 (Unaudited) |
Upto the Quarter
ended on 30.09.2013 (Unaudited) |
|
|
|
|
|
Amount
Transferred From Policyholder Account (Technical Account) |
|
|
|
Income from Investments |
|
|
|
(a) Interest, Dividend & Rent - Net of Amortization |
176.800 |
338.351 |
|
(b) Profit on sale / redemption of investments |
5.082 |
130.260 |
|
(c) (Loss on sale / redemption of investments) |
(63.832) |
(94.491) |
|
Other Income |
0.000 |
0.000 |
|
TOTAL (A) |
118.050 |
374.120 |
|
|
|
|
|
Expenses other than those directly related to the insurance |
1.111 |
2.568 |
|
Bad debts written off |
0.000 |
0.000 |
|
Provisions (Other than taxation) |
|
|
|
(a) For diminution in the value of investment (net) |
0.000 |
0.000 |
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
|
(c) Others |
|
|
|
-Contribution to the Policyholders Fund |
99.582 |
128.160 |
|
Total (B) |
100.693 |
130.728 |
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
17.357 |
243.391 |
|
Provision for Taxation |
|
|
|
- Current Year |
9.977 |
34.595 |
|
- Earlier Year |
0.000 |
0.000 |
|
PROFIT / (LOSS)
AFTER TAX |
7.380 |
208.796 |
|
|
|
|
|
Appropriations |
|
|
|
(a) Balance at the beginning of the period/year |
0.000 |
2403.435 |
|
(b) Interim dividend during the period/year |
0.000 |
0.000 |
|
(c) Proposed final dividend |
0.000 |
0.000 |
|
(d) Dividend distribution tax |
0.000 |
0.000 |
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
|
|
|
|
|
Profit / (Loss) carried to the Balance Sheet |
7.380 |
2612.231 |
BALANCE
SHEET AS AT SEPTEMBER 30, 2013
|
SOURCES OF FUNDS |
30.09.2013 (Unaudited) |
|
Shareholders’
Funds: |
|
|
Share Capital |
5102.902 |
|
Reserves and Surplus |
3132.594 |
|
Credit/[Debit] Fair Value Change Account |
0.000 |
|
Sub-Total |
8235.496 |
|
|
|
|
Borrowings |
0.000 |
|
|
|
|
Policyholders’
Funds: |
|
|
Credit/[Debit] Fair Value Change Account |
0.879 |
|
Policy Liabilities |
|
|
- Life Participating |
13437.295 |
|
- Pension Participating |
736.205 |
|
- Life Non- Participating |
7003.665 |
|
- General Annuity |
69.041 |
|
- Unit Linked |
1527.831 |
|
- Unit Linked Pension |
140.690 |
|
|
22914.727 |
|
Insurance Reserves |
|
|
- Life Participating |
185.317 |
|
- Pension Participating |
71.092 |
|
- Life Non- Participating |
0.000 |
|
- General Annuity |
0.000 |
|
- Unit Linked |
0.000 |
|
- Unit Linked Pension |
0.000 |
|
|
256.409 |
|
Provision for Linked Liabilities |
|
|
- Linked Liabilities |
75449.445 |
|
- Fair Value Change |
364.396 |
|
|
75813.841 |
|
|
|
|
Sub-Total |
98985.856 |
|
|
|
|
Funds for Discontinued policies |
|
|
- Discontinued on account of non-payment of premium |
700.514 |
|
- Others |
0.000 |
|
Funds for Future Appropriation:-Linked Liabilities |
281.419 |
|
|
|
|
Total |
108203.285 |
|
|
|
|
APPLICATION OF
FUNDS |
|
|
Investments |
|
|
– Shareholders |
7998.190 |
|
– Policyholders’ |
25517.388 |
|
Assets Held to Cover Linked Liabilities |
76795.775 |
|
Loans |
75.968 |
|
Fixed Assets |
314.879 |
|
Current Assets |
|
|
Cash and Bank Balances |
426.048 |
|
Advances and Other Assets |
2224.568 |
|
Sub-Total (A) |
2650.616 |
|
|
|
|
Sundry Creditors |
58.479 |
|
Other Current Liabilities |
3669.430 |
|
Provisions |
77.269 |
|
Sub-Total (B) |
3805.178 |
|
Net Current Assets (C) = (A-B) |
(1154.562) |
|
|
|
|
Miscellaneous Expenditure (To the extent not written off or adjusted) |
0.000 |
|
Debit Balance in Profit and Loss Account (Shareholders’ Account) |
(1344.353) |
|
|
|
|
Total |
108203.285 |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
1. Partly paid-up investments |
0.000 |
0.000 |
|
2. Underwriting commitments outstanding (in respect of
shares and securities) |
0.000 |
0.000 |
|
3. Claims, other than against policies, not acknowledged
as debts by the company |
0.000 |
0.000 |
|
4. Guarantees given by or on behalf of the Company |
102.000 |
120.000 |
|
5. Statutory demands/ liabilities in dispute, not provided
for (Income Tax) |
0.000 |
0.000 |
|
6. Reinsurance obligation to the extent not provided for
in accounts |
0.000 |
0.000 |
|
7. Others – Insurance claims in
appeal net of provision (Gross value of claims Rs.0.327 Million (2012 – Rs.127 Million), out of which reinsured Rs.102 Million (2012 – Rs.0.029 Million) and provision Rs.0.111 Million (2012 Rs.0.031 Million) |
114.262 |
66.763 |
|
|
|
|
|
Total |
216.262 |
186.763 |
FIXED ASSETS:
·
Goodwill
Intangibles
- Software
Land-Freehold
Leasehold
property
Buildings
Furniture
and fittings
Information
technology equipment
Vehicles
Office
equipment
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. 62.48 |
|
|
1 |
Rs. 102.95 |
|
Euro |
1 |
Rs. 84.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.