MIRA
INFORM REPORT
|
Report Date : |
16.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
ICICI PRUDENTIAL
LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
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Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
20.07.2000 |
|
|
|
|
Com. Reg. No.: |
11-127837 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 14292.557 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2000PLC127837 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI03877G MUMI07366C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI7351P |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Providing Life Insurance and Pension Services |
|
|
|
|
No. of Employees
: |
10700 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
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Comments : |
Subject is a joint venture between “ICICI Bank and Prudential of UK”. It is a well-established and reputed company having good track
record. The company has recorded decent net profitability with the help of
which the management is gradually wiping of its accumulated losses during
2014. However the general position seems to be strong. Credit worthiness of
the company is good. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of strong holdings and experienced directors the company can
be considered good for business dealings of 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
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of the
global e-commerce giant Amazon. The company raised $ 210 million from Russian
Investment firm DST Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Claims paying ability : IAAA |
|
Rating Explanation |
Highest claim paying ability. Indicates
fundamentally strong position. Prospect of meeting policy holder obligations
is the best |
|
Date |
March, 2014 |
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 (Tel. No.: 91-22-61930777)
LOCATIONS
|
Registered Office : |
ICICI Prulife Tower 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai –
400025, Maharashtra, India |
|
Tel. No.: |
91-22-66621600 |
|
Fax No.: |
91-22-24376956 |
|
E-Mail : |
sanaulla.khan@iciciprulife.com
deepak.kinger@iciciprulife.com
|
|
Website : |
DIRECTORS
As on 31.03.2014
|
Name : |
Ms. Chanda D. Kochhar |
|
Designation : |
Chairperson |
|
Address : |
CCI Chambers, Flat No.45, 5th Floor, |
|
Date of Birth/Age : |
17.11.1961 |
|
Date of Appointment : |
28.05.2002 |
|
DIN No.: |
00043617 |
|
|
|
|
Name : |
Mr. Kannan
Shrinivasa Narayanan |
|
Designation : |
Director |
|
Address : |
Flat No.204, Tower B, Kalpataru Horrizon, S K Ahire Marg, Worli,
Mumbai – 400018, |
|
Date of Birth/Age : |
30.06.1965 |
|
Date of Appointment : |
01.05.2009 |
|
DIN No.: |
00066009 |
|
|
|
|
Name : |
Mr. Ramkumar Krishnaswamy |
|
Designation : |
Director |
|
Address : |
101, |
|
Date of Birth/Age : |
08.08.1961 |
|
Date of Appointment : |
13.10.2008 |
|
DIN No.: |
00244711 |
|
|
|
|
Name : |
Mr. Rajiv Sabharwal |
|
Designation : |
Director |
|
Address : |
Y, 1301, Chalalilly, Nahar Amrit Shakti, Chandivali, Andheri (East), Mumbai-400072,
Maharashtra, India |
|
Date of Birth/Age : |
28.09.1965 |
|
Date of Appointment : |
19.10.2010 |
|
DIN No.: |
00057333 |
|
|
|
|
Name : |
Mr. Barry Stowe |
|
Designation : |
Director |
|
Address : |
11/F, |
|
Date of Birth/Age : |
27.11.1957 |
|
Date of Appointment : |
06.11.2006 |
|
DIN No.: |
00953024 |
|
|
|
|
Name : |
Mr. Adrian O’Connor |
|
Designation : |
Director |
|
Address : |
House 30, Le Palais 8, Pak Pat Shan Road, Hong Kong |
|
Date of Birth/Age : |
29.12.1958 |
|
Date of Appointment : |
23.07.2008 |
|
DIN Nso.: |
02417554 |
|
|
|
|
Name : |
Mr. Keki Dadiseth |
|
Designation : |
Director |
|
Address : |
8 A, Mane K Building L D Ruparel Marg, Malabar, Mumbai – 400006, |
|
Date of Birth/Age : |
20.12.1945 |
|
Date of Appointment : |
26.04.2006 |
|
DIN No.: |
00052165 |
|
|
|
|
Name : |
Marti G. Subrahmanyam |
|
Designation : |
Independent Director |
|
Address : |
70, |
|
Date of Birth/Age : |
23.08.1946 |
|
Date of Appointment : |
26.07.2007 |
|
DIN No.: |
00306761 |
|
|
|
|
Name : |
Ms. Rama Bijapurkar |
|
Designation : |
Independent Director |
|
Address : |
8, C-D Mona |
|
Date of Birth/Age : |
12.02.1957 |
|
Date of Appointment : |
17.01.2008 |
|
DIN No.: |
00001835 |
|
|
|
|
Name : |
Mr. Vinod Kumar Dhall |
|
Designation : |
Independent Director |
|
Address : |
Dewan Manohar House, B-88, Sector 51, Noida – 201301, Uttar Pradesh |
|
Date of Birth/Age : |
20.02.1944 |
|
Date of Appointment : |
05.03.2009 |
|
DIN No.: |
02591373 |
|
|
|
|
Name : |
Mr. Sridar Venkatesan |
|
Designation : |
Independent Director |
|
Address : |
303/A, HPCL Employees Co-operative Housing Society, No. NDR – 11,
Tilak Nagar, Chembur, Mumbai – 400089, Maharashtra, India |
|
Date of Birth/Age : |
28.07.1947 |
|
Date of Appointment : |
18.04.2013 |
|
DIN No.: |
02241339 |
|
|
|
|
Name : |
Mr. Sandeep Bakhshi |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
8B, Tanna Residency, Opp. |
|
Date of Birth/Age : |
28.05.1960 |
|
Date of Appointment : |
01.08.2010 |
|
DIN No.: |
00109206 |
|
|
|
|
Name : |
Mr. Puneet Nanda |
|
Designation : |
Whole time director |
|
Address : |
Flat No.11, |
|
Date of Birth/Age : |
05.02.1969 |
|
Date of Appointment : |
01.08.2010 |
|
DIN No.: |
02578795 |
|
|
|
|
Name : |
Mr. Sandeep Batra |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanaulla Khan Mohammed |
|
Designation : |
Secretary |
|
Address : |
201, Rehna Heights, Chapel Lane, Santacruz (West), Mumbai – 400054,
Maharashtra, India |
|
Date of Birth/Age : |
13.07.1970 |
|
Date of Appointment : |
15.12.2008 |
|
PAN No.: |
ACIPM1846L |
|
|
|
|
BOARD COMMITTEES : |
|
|
|
|
|
BOARD AUDIT
COMMITTEE : |
· Mr. Keki Dadiseth, Chairman Mr. K.
Ramkumar Mr.
Adrian O’Connor Mr. V.
Sridar |
|
|
|
|
|
|
|
BOARD NOMINATION
AND REMUNERATION COMMITTEE* : |
· Ms. Rama Bijapurkar, Chairperson Prof.
Marti G. Subrahmanyam Mr.
Vinod Kumar Dhall Mr. K.
Ramkumar Mr.
Adrian O’Connor |
|
|
|
|
BOARD CORPORATE
SOCIAL RESPONSIBILITY
COMMITTEE**: |
· Mr. Vinod Kumar Dhall, Chairman Mr. K.
Ramkumar Mr.
Adrian O’Connor |
|
|
|
|
WITH PROFITS
COMMITTEE : |
· Mr. V. Sridar, Chairman Mr. N.
S. Kannan Mr.
Adrian O’ Connor Mr. N.
M. Govardhan Mr.
Sandeep Bakhshi Mr.
Satyan Jambunathan |
|
|
|
|
BOARD CUSTOMER
SERVICE & POLICYHOLDERS’
PROTECTION COMMITTEE : |
· Mr. Vinod Kumar Dhall, Chairman Mr. K.
Ramkumar Mr.
Adrian O’Connor |
|
|
|
|
BOARD RISK
MANAGEMENT COMMITTEE : |
· Prof. Marti G. Subrahmanyam, Chairman Ms.
Rama Bijapurkar Mr. N.
S. Kannan Mr.
Adrian O’Connor |
|
|
|
|
BOARD INVESTMENT COMMITTEE : |
· Prof. Marti G. Subrahmanyam, Chairman Mr. N.
S. Kannan Mr.
Adrian O’Connor Mr.
Sandeep Bakhshi Mr.
Sandeep Batra Mr.
Satyan Jambunathan Mr.
Manish Kumar Mr.
Binay Agarwala |
|
|
|
|
SHARE TRANSFER
COMMITTEE: |
· Mr. Vinod Kumar Dhall, Chairman Mr.
Keki Dadiseth Mr.
Sandeep Bakhshi |
NOTE
* Board Compensation & Nominations Committee renamed as Board Nomination & Remuneration Committee with effect from April 22, 2014.
** Board Corporate Social Responsibility Committee constituted on April 22, 2014
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.06.2013
SHAREHOLDERS AND DETAILS DETAILS FILE ATTACHED
As on 20.06.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Nationalised or other banks |
73.85 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
25.95 |
|
Other |
0.20 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance and Pension Services |
GENERAL INFORMATION
|
No. of Employees : |
10700 (Approximately) |
|
|
|
|
Bankers : |
ICICI Bank Limited |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
|
|
|
Name : |
S. R. Billimoria and Company Chartered Accountants |
|
Address : |
Indiabulls Finance Centre, Tower 3, 32nd Floor, Senapati Bapat Marg,
Elphistone (west), Mumbai – 400013, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAAFS7376P |
|
|
|
|
Name : |
S. R. Batliboi and Company LLP Chartered Accountants |
|
Address : |
12th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (west), Mumbai –
400028, Maharashtra, India |
|
Tel. No.: |
91-22-61920000 |
|
Fax. |
91-22-61921000 |
|
Income-tax
PAN of auditor or auditor's firm : |
AALFS0506L |
|
|
|
|
Holding Company : |
ICICI Bank Limited |
|
|
|
|
Substantial
interest : |
Prudential Corporation Holdings Limited |
|
|
|
|
Subsidiary : |
ICICI Prudential Pension Funds Management Company Limited |
|
|
|
|
Fellow subsidiaries
and entities jointly controlled by holding company : |
· ICICI Securities Limited ICICI
Securities Inc. ICICI
Securities Holding Inc. ICICI
Securities Primary Dealership Limited ICICI
Venture Funds Management Company Limited ICICI
Home Finance Company Limited ICICI
Trusteeship Services Limited ICICI
Investment Management Company Limited ICICI
International Limited ICICI
Bank UK PLC. ICICI
Bank Canada ICICI
Bank Eurasia Limited Liability Company ICICI
Lombard General Insurance Company Limited ICICI
Prudential Asset Management Company Limited ICICI
Prudential Trust Limited |
|
|
|
|
Consolidated under
AS-21 by holding company : |
· ICICI Equity Fund ICICI
Strategic Investments Fund ICICI
Kinfra Limited I-Ven
Biotech Limited |
|
|
|
|
Significant
Influence : |
· ICICI Prudential Life Insurance Company Limited (Employees’ Group Gratuity Cum Life Insurance Scheme) ICICI
Prudential Life Insurance Company Limited (Employees’ Provident Fund) ICICI
Prudential Life Insurance Company Limited (Superannuation Scheme) |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,500,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 15000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,429,255,687 |
Equity Shares |
Rs.10/- each |
Rs. 14292.557 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
SOURCES
OF FUNDS |
|
|
|
|
SHAREHOLDERS FUND: |
|
|
|
|
Share Capital |
14292.557 |
14289.392 |
14288.491 |
|
Share Application Money |
0.984 |
0.000 |
0.000 |
|
Reserves & Surplus |
33663.847 |
33645.103 |
35023.689 |
|
Credit/[debit] fair value change account |
1860.657 |
477.588 |
207.604 |
|
Sub – Total |
49818.045 |
48412.083 |
49519.784 |
|
|
|
|
|
|
Borrowings |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
POLICYHOLDERS
FUND |
|
|
|
|
Fair value change Account – Net |
4794.024 |
2478.035 |
2203.143 |
|
Revaluation Reserve – Investment Property |
668.879 |
704.479 |
704.479 |
|
Policy Liabilities |
138124.872 |
110276.000 |
83379.998 |
|
Provision for linked liability |
591373.652 |
569584.031 |
574185.927 |
|
Funds for discontinued polices |
11280.677 |
4301.825 |
665.190 |
|
Sub – Total |
746242.104 |
687344.370 |
661138.737 |
|
Funds for future
appropriations |
|
|
|
|
Linked |
449.992 |
1322.418 |
3322.628 |
|
Non Linked |
4590.399 |
3760.126 |
4269.540 |
|
|
|
|
|
|
TOTAL |
801100.540 |
740838.997 |
718250.690 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
Investment |
|
|
|
|
-Shareholders |
53527.703 |
49199.607 |
34770.112 |
|
-Policy Holders |
144567.076 |
112869.878 |
91107.635 |
|
Asset held to cover linked liabilities |
603104.321 |
575208.274 |
578173.746 |
|
Loans |
119.076 |
87.469 |
95.740 |
|
Fixed Assets |
2015.439
|
1722.384
|
1802.306
|
|
Deferred Tax Assets |
15.295
|
78.197
|
1053.361
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
Cash and Bank Balance |
1934.384 |
3247.600 |
2840.640 |
|
Advances and Other assets |
9642.058 |
9846.435 |
6700.182 |
|
Sub – Total (A) |
11576.442 |
13094.035 |
9540.822 |
|
|
|
|
|
|
Sundry Creditors |
144.237 |
191.123 |
278.550 |
|
Other Current Liabilities |
15922.198 |
18239.929 |
16185.465 |
|
Provisions |
3646.186 |
1753.150 |
1296.012 |
|
Sub – Total
(B) |
19712.621 |
20184.202 |
17760.027 |
|
Net Current Assets
(C) = (A-B) |
(8136.179) |
(7090.167) |
(8219.205) |
|
|
|
|
|
|
Miscellaneous expenditure |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account |
5887.809 |
8763.355 |
19466.995 |
|
|
|
|
|
|
TOTAL |
801100.540 |
740838.997 |
718250.690 |
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2014
POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
124286.495 |
135382.380 |
140215.780 |
|
|
b) Reinsurance Ceded |
(1459.968) |
(1210.008) |
(936.980) |
|
|
c) Reinsurance accepted |
0.000 |
0.000 |
0.000 |
|
|
Sub-total |
122826.527 |
134172.372 |
139278.800 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
31693.174 |
27992.314 |
22363.985 |
|
|
b) Profit on sale / Redemption of investments |
43201.547 |
35302.915 |
36223.608 |
|
|
c) (Loss) on sale / Redemption of investments |
(15048.276) |
(16547.510) |
(18819.123) |
|
|
(d) Transfer/gain on revaluation/change in fair value |
29126.386 |
11980.043 |
(45060.607) |
|
|
(e) Accretion of discount/(amortisation of premium) (net) |
3194.606 |
3175.361 |
3898.341 |
|
|
(f) Appropriation/expropriation adjustment account |
-- |
-- |
(24.288) |
|
|
Sub-Total |
9267.437 |
61903.123 |
(1418.084) |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
Contribution from the shareholders account |
946.523 |
5412.458 |
3498.006 |
|
|
Others (interest etc.) |
56.378 |
36.925 |
62.522 |
|
|
Miscellaneous income |
116.093 |
203.775 |
76.575 |
|
|
Sub-Total |
1118.994 |
5653.158 |
3637.103 |
|
|
Total (A) |
216112.958 |
201728.653 |
141497.819 |
|
|
|
|
|
|
|
|
Commission |
6274.850 |
7654.168 |
6054.687 |
|
|
Operating expenses related to insurance business |
16168.605 |
17131.074 |
20034.728 |
|
|
Provision for Doubtful debts |
(51.202) |
53.589 |
(55.795) |
|
|
Bad debts written off |
81.844 |
16.707 |
109.519 |
|
|
Provision (other than taxation) |
-- |
-- |
-- |
|
|
a) for diminution in value of investments (net) |
84.991 |
98.743 |
-- |
|
|
b) others |
-- |
-- |
-- |
|
|
Service tax charge on linked charges |
3066.114 |
3181.135 |
-- |
|
|
Total (B) |
25625.202 |
28135.416 |
26143.139 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
120739.625 |
132878.583 |
84543.802 |
|
|
Interim Bonus Paid |
93.770 |
48.692 |
29.831 |
|
|
Change in valuation of policy liabilities |
|
|
|
|
|
(a) Policy liabilities (non-unit/ mathematical reserves) (gross) |
29319.789 |
28321.293 |
19014.533 |
|
|
(b) Amount ceded in reinsurance |
(1470.917) |
(1425.291) |
(1988.699) |
|
|
(c) Amount accepted in reinsurance |
-- |
-- |
-- |
|
|
(d) Fund reserve |
21789.620 |
(4601.896) |
-- |
|
|
(e) Funds for discontinued policies |
6978.852 |
3636.635 |
-- |
|
|
Total (C) |
177450.739 |
158858.016 |
101599.467 |
|
|
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
13037.017 |
14735.221 |
13755.213 |
|
|
|
|
|
|
|
|
Provision for taxation |
|
|
|
|
|
(a) Current tax credit/(charge) |
-- |
-- |
- |
|
|
(b) Deferred tax credit/(charge) |
(437.367) |
(238.458) |
(435.567) |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
Transfer to shareholders account |
12641.803 |
17006.388 |
15449.503 |
|
|
Transfer to other reserves |
-- |
-- |
-- |
|
|
Balance being funds for future appropriation |
(42.153) |
(2509.625) |
(2129.857) |
|
|
Total |
12599.650 |
14496.763 |
13319.646 |
|
|
Details of surplus
before tax |
|
|
|
|
|
(a) Interim bonuses paid |
93.770 |
48.692 |
29.831 |
|
|
(b) Allocation of bonus to policyholders |
2642.159 |
2241.686 |
1949.294 |
|
|
(c) Surplus shown in the Revenue Account |
13037.017 |
15581.315 |
14302.033 |
|
|
Total surplus |
15772.946 |
17871.693 |
16281.158 |
|
|
|
|
|
|
|
|
Funds for future appropriations |
|
|
|
|
|
Opening Balance as at April 1, 2012 |
5082.544 |
7592.169 |
9722.026 |
|
|
Add: Current year appropriations |
(42.153) |
(2509.625) |
(2129.857) |
|
|
Balance carried
forward to Balance Sheet |
5040.391 |
5082.544 |
7592.169 |
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2014
SHAREHOLDERS' ACCOUNT
(NON-TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
Amount transfer from Policyholders account (Technical account) |
12641.803 |
17006.388 |
11951.497 |
|
|
|
|
|
|
Income from investments |
|
|
|
|
(a) Interest, Dividend and Rent - Gross |
3592.152 |
3003.955 |
1628.246 |
|
(b) Profit on sale/redemption of investments |
1432.038 |
1061.218 |
558.014 |
|
(c) Loss on sale/redemption of investments |
(1218.724) |
(162.617) |
(426.516) |
|
(d) Accretion of discount/ amortization of
premium) (net) |
169.417 |
253.310 |
437.539 |
|
Other Income |
99.067 |
4.764 |
5.617 |
|
Total |
16615.753 |
15754.560 |
14154.397 |
|
|
|
|
|
|
Expenses other than those directly related
to the insurance business |
114.134 |
58.462 |
17.171 |
|
Bad Debts Written Off |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Provisions (other than taxation) |
|
|
|
|
(a) For diminution in value of investments
(net) |
263.006 |
0.000 |
0.000 |
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Contribution to Policyholders’ account (Technical account) |
946.523 |
5412.458 |
-- |
|
|
|
|
|
|
Total |
1323.663 |
5470.920 |
17.171 |
|
|
|
|
|
|
(Less) Profit Before Tax |
15292.090 |
15696.098 |
14137.226 |
|
|
|
|
|
|
Provision for taxation |
|
|
|
|
(a) Current tax credit/(charge) |
-- |
-- |
-- |
|
(b) Deferred tax credit/(charge) |
374.465 |
(736.706) |
(295.489) |
|
|
|
|
|
|
Profit / (Loss) after tax |
15666.555 |
14959.392 |
13841.737 |
|
|
|
|
|
|
Appropriation |
|
|
|
|
(a) Balance of the beginning for the year |
(11643.468) |
(19466.995) |
(27108.690) |
|
(b) Interim dividends paid during the year |
7931.517 |
3429.335 |
3142.777 |
|
(c) Proposed final dividend |
3001.437 |
1413.959 |
1000.885 |
|
(d) Dividend distribution Tax |
1858.055 |
796.632 |
672.206 |
|
(c) Transfer to reserve / other income |
1566.656 |
1495.939 |
1384.174 |
|
Profit / (Loss) carried to Balance Sheet |
(10334.578) |
(11643.468) |
(19466.995) |
|
|
|
|
|
|
Earning Per shares (Rs.) |
|
|
|
|
Basic |
10.96 |
10.47 |
9.69 |
|
Diluted |
10.94 |
10.44 |
9.66 |
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 |
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 |
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 |
Yes |
CURRENT MATURITIES
OF LONG TERM DEBTS: NOT AVAILABLE
LITIGATION DETAILS
|
HIGH COURT OF BOMBAY |
||||||
|
CASE DETAILS |
||||||
|
BENCH:- BOMBAY |
||||||
|
LODGING NO:- ITXAL/291/2013 |
FAILING DATE:- 18/02/2013 |
REG. NO.: ITXA/711/2013 |
REG. DATE: 10/04/2013 |
|||
|
PETITIONER:- |
COMMISSIONER OF INCOME TAX-6 |
RESPONDENT:- |
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED |
|||
|
PETN.ADV:- |
SURESH KUMAR (0) |
RESP. ADV.: |
S.P. MEHTA (0) |
|||
|
DISTRICT:- |
MUMBAI |
|||||
|
|
||||||
|
BENCH:- |
DIVISION |
|
|
|||
|
STATUS:- |
PRE-ADMISSION |
CATEGORY:- |
TAX APPEALS |
|||
|
LAST DATE:- |
28/08/2014 |
STAGE:- |
FOR DIRECTION |
|||
|
LAST CORAM:- |
ACCODING TO SITTING LIST ACCODING TO SITTING LIST |
|||||
|
|
|
|||||
|
ACT:- |
INCOME TAX ACT, 1961 |
|||||
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY ACTION(S) / DATE OF
ORDER |
FURTHER DEVELOPMENTS |
|
ICICI PRUDENTIAL ASSET MANAGEMENT CO. LTD. |
|
SEBI |
DID NOT COMPLY WITH ALL PROVISIONS OF THE GUIDELINES, CIRCULARS IN MATTER OF ADVERTISEMENT THROUGH NEWSPAPERS AND HOARDINGS AS REQUIRED UNDER REGULATION 25(6A) OF SEBI (MUTUAL FUNDS) REGULATIONS, 1996 |
DIRECTED TO ABIDE STRICTLY BY STIPULATIONS ON
ADVERTISEMENTS BY MUTUAL FUNDS, ISSUED BY SEBI |
|
|
ICICI PRUDENTIAL ASSET MANAGEMENT CO. LTD. |
|
IRDA |
PERMITTED VARIOUS UNLICENSED INDIVIDUALS TO SOLICIT AND
PROCURE BUSINESS |
IMPOSED PENALTY RS.11.800 Millions |
|
INDEX OF CHARGES : NO
CHARGES EXIST FOR COMPANY
CORPORATE INFORMATION
The Company, a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, was incorporated on July 20, 2000 as a Company under the Companies Act, 1956 (`the Act’). The company is licensed by the Insurance Regulatory and Development Authority (`IRDA’) for carrying life insurance business in India. The license has been renewed annually and is in force as at March 31, 2014.
PERFORMANCE
INDUSTRY IN FY2014
The life insurance industry registered a decline of 3.4% in retail weighted new business premium (RWRP) terms for FY2014. The private sector declined by 3.4%. Some of the key trends in the industry are as follows:
The new product regulations for linked and non-linked products came into effect from January 1, 2014. This has meant a significant transition for the industry with players having to re-build their product suite.
The decline in the number of individual agents for the industry was arrested in FY2014 with number of agents increasing marginally from 2.17 million as at December 31, 2012 to 2.20 million as at December 31, 2013. For Private industry also the number of individual agents increased from 0.96 million in December 2012 to 1.00 million
in December 2013. The percentage of business from agency for private players as of December 2013 was similar to December 2012.
COMPANY IN FY2014
The Company registered a decline of 1.7% in RWRP FY2014. The Company’s market share based on RWRP is expected to be around 7.2% in FY2014. Among private players, the Company maintained its leadership position with market share of 18.9% in FY2014. However, the Company increased its gap vis-à-vis its nearest private competition from 1.06 to 1.16 times.
Total premium collected by the Company declined by 8.2% from Rs. 135.38 billion in FY2013 to Rs. 124.29 billion in FY2014 primarily on account of decline in group premium. Retail premium was flat with new business declining marginally from Rs. 36.39 billion in FY2013 to Rs. 35.85 billion in FY2014 and renewal premium increasing marginally from Rs. 80.55 billion in FY2013 to Rs. 81.00 billion in FY2014. This increase in retail renewal premium arrests the two year trend of declining renewal premiums.
The Company registered 4.7% growth in profit after tax from Rs. 14.96 billion in FY2013 to Rs. 15.67 billion in FY2014. The solvency ratio for the Company remained healthy at 372.3% for FY2014. The assets under management (AUM) increased from Rs. 741.64 billion as at March 31, 2013 to Rs. 805.97 billion as at March 31, 2014. For its unit-linked funds, the Company delivered superior fund performance and 97% of the funds have outperformed their respective internal benchmarks since inception.
The Company continued its focus on efficiency of operations. Cost to RWRP, declined from 75.4% in FY2013 to 69.3% in FY2014. Total nonunit expenses registered a decline of Rs. 2.41 billion from Rs. 24.96 billion in FY2013 to Rs. 22.55 billion in FY2014. The digitization initiatives of the Company to facilitate customer acquisition and on-boarding continues to gain momentum. Capability to issue policies in less than three hours is first of its kind in the industry. For FY2014, 80% of new business applications were initiated using the online platform. In addition, 41% of the retail renewal premium was collected through electronic mode.
The Company has been strengthening mechanisms to improve persistency including ensuring higher attachment of ECS or standing instructions at the time of sale and changes in performance management and compensation design to better align distributor and sales management to focus on persistency. These have led to increase in retail renewal premium after two years and improvement in Year 1 persistency.
OUTLOOK FOR THE INDUSTRY
AND THE COMPANY
They believe that given strong structural advantages like India’s favourable demographics, high rate of financial savings and improving insurance product propositions, the life insurance industry would continue to be one of the preferred instruments for longer term savings and protection.
The Company would continue to focus on its strategic priorities, specifically:
Enhance market leadership: The Company would continue to focus on growth opportunities in the market with a customised regional strategy to strengthen relative position in every geography.
Providing superior value proposition to customers: The Company would continue to focus on providing superior customer value proposition through product design and service architecture.
Strengthen multi-channel architecture: The Company would strengthen its multichannel distribution by non-linear scale up of agency and proprietary sales force, leveraging the bancassurance franchise and focussing on quality third party distribution.
Continued focus on efficiency of operations: The Company would focus on cost efficiency and in particular would leverage the digital platform to improve customer experience and efficiency of operations.
Customer retention: The Company would strengthen mechanisms to improve the AUM growth by increasing renewal premium and curtailing surrenders.
Superior risk adjusted fund performance: The Company has in place a robust risk and investment management framework to deliver superior risk adjusted returns to customers.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY AND BUSINESS
REPORT
ECONOMIC AND INDUSTRY
OVERVIEW
Indian economy and
impact on life insurance industry
Indian Gross Domestic Product (GDP)1 grew by 4.6% in FY2014 (advance estimates) as compared to 4.7% in FY2013. The growth in the last two years is significantly lower than that witnessed in the preceding 5 years. The compounded annual growth rate of GDP for the five year period from FY2007 to FY2012 was 7.8%.
Slowdown in growth, persistent high inflation and interest rates, and volatile equity markets have adversely impacted the environment for the life insurance industry. There has been a reduction in household savings as a percentage of GDP from 25.2% in FY2010 to 21.9% in FY2013. There is also a fall in financial savings from 12.0% in FY2010 to 7.1% of GDP in FY2013.
Within financial savings there has been a shift toward term deposits and fall in share of insurance. Total new business premium (based on retail weighted received premium (RWRP)) has declined from Rs. 550 billion in FY2010 to Rs. 4542 billion in FY2014. This has led to a reduction in insurance penetration3 from 4.6% in FY2010 to
2.8% in FY2013.
Structurally the Indian economy remains strong owing to solid fundamentals in the form of favorable demographics and a high savings and investment rate. In the medium to long term, there should be some upward movement in GDP growth rates from the current level and a shift back to financial savings. A stable government would accelerate the movement towards higher GDP growth rates and financial saving rates. This increase in income levels and financial savings will provide an impetus for the growth of the life insurance market in the future.
INSURANCE INDUSTRY
OVERVIEW
COMPETITIVE LANDSCAPE
The Indian Life Insurance industry has 24 players including Life Insurance Corporation of India (LIC). LIC continues to be a strong player with a market share of more than 60%. Top 7 private players contribute to around 75% of the private market.
SHIFT IN PRODUCT MIX
Overall, the trend of shift from ULIPs to traditional products continued. For private players, traditional mix moved from 59% in FY2012 to 65% in FY2013 and to 72% as at December 31, 2013 of total new business received premium. Bigger private players have a more balanced mix between linked and traditional products.
DISTRIBUTION TRENDS
Agency channel continues to be the predominant channel for LIC, however the share of agency for private insurers has reduced from 51% in FY2010 to 40% in FY2013 (refer chart below). This stems from the transition triggered by the ULIP regulations of FY2011 and the economic slowdown in last few years, which impacted the individual agents more because of the lead time required by them to get used to the new product suite. Linking of commission to the premium paying term in FY2014 has also impacted the earning pattern of agents putting further downward pressure on the agency channel. The number of agents engaged by the industry has fallen to 2.20 million as at December 31, 2013 from 2.89 million as at March 31, 2010. For FY2014, the share of agency has remained flat for the industry as well as for private players after three years of continuous decline.
Bancassurance as a distribution channel has seen rapid growth in the last few years. The share of this channel4 among private players has increased from 25% in FY2010 to 42% in 9m-2014. Direct sales through proprietary sales force or through internet is also becoming increasingly important.
INDUSTRY OUTLOOK
The value proposition of life insurance products has improved over the last few years, making it more competitive vis-à-vis other financial products. The long term growth prospects of the industry remain positive on the back of structural advantages of the Indian economy. However, the industry would need to concentrate on a few near term challenges to be able to fully leverage its growth potential.
PERFORMANCE OVERVIEW
AND KEY
INITIATIVES: FY2014
MARKET SHARE
In FY2014, the Company maintained its leadership position and increased its market share11 amongst private players from 18.5% in FY2013 to 18.9% in FY2014. The Company increased its lead over the next private player and was 1.16 times on Retail Weighted Premium basis in FY2014 as against 1.06 times in FY2013 as compared to the next private player. With respect to total market, the share has improved from 7.0% in FY2013 to 7.2% in FY2014.
BALANCED CHANNEL MIX
The Company continued its focus on strengthening its multi-channel distribution. For FY2014, 54.2% of RWRP was from bancassurance channel followed by 28.2% of RWRP from Agency, 9.6% from third party distribution comprising Corporate agents and brokers and 8.0% from other distribution channels including direct channels. Bancassurance has been an important growth driver. In the Corporate agent and Broker channel, the Company has reviewed its portfolio in line with its strategy to work with partners having long term outlook and quality focus.
PRODUCT MIX
During the year, the Company revamped its entire portfolio of products to ensure adherence to the new product regulations issued by IRDA. These regulations covered product design of all retail and group products. The transition to the new product regulations was managed smoothly and the Company got approvals for 19 new products across all lines of business in FY2014.The Company currently offers a range of products across unit linked and traditional platforms to meet specific customer needs. The Company has introduced life and pension products that offer equity participation with capital guarantee. In FY2014, the Company had a balanced product mix with traditional products contributing to 33.5% of the RWRP.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Partly-paid up investments |
|
|
|
Claims, other than those under policies, not acknowledged as debts comprising of: |
|
|
|
- Claims made by vendors for disputed payments |
101.258 |
101.038 |
|
- Claims for damages made by landlords (of premises taken on lease) |
43.675 |
35.731 |
|
- Claims made by employees and advisors for disputed dues and compensation |
4.086 |
2.955 |
|
Underwriting commitments outstanding (in respect of shares and securities) |
-- |
-- |
|
Guarantees given by or on behalf of the Company |
-- |
-- |
|
Statutory demands/liabilities in dispute, not provided for (refer note 1) |
-- |
1.590 |
|
Reinsurance obligations to the extent not provided for |
-- |
-- |
|
Policy related claims under litigation in different consumer forums: |
|
|
|
- Claims for service deficiency |
155.220 |
155.916 |
|
- Claims against repudiation |
146.586 |
137.984 |
|
Others (refer note 2) |
1536.996 |
1350.000 |
NOTES:
1. Rs. 1.590 Millions pertains to a demand from Profession Tax authority, West Bengal which was settled in the Company’s favour during the year ended March 31, 2014.
2. Rs. 1536.996 Millions is on account of objections raised by office of the Commissioner of Service tax, Mumbai (through the Service Tax audit under EA-2000) on certain positions taken by the Company).
FIXED ASSETS
Tangible Assets
· Freehold Land
Improvements
to Leasehold Property
Office
buildings on Freehold Land
Furniture
and Fixtures
Information
Technology Equipment
Motor
Vehicles
Office
Equipment
Communication
Networks
Intangible Assets
· Goodwill
Software
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ALLOWS INSURERS TO HEDGE
INTEREST RATE RISKS
Jun 16, 2014
NEW DELHI: Insurance Regulatory and Development Authority (Irda) today allowed Insurance companies to hedge their interest risks by participating in interest rate derivatives of a longer tenure.
As per existent norms, insurers are permitted to enter Forward Rate Agreements (FRAs), Interest Rate Swaps (IRS) and Exchange Traded Interest Rate Futures (IRF) with a maximum tenure of one year.
However, as per the final guidelines insurers would be able participate in interest rate derivatives over one year. However, there is no upper cap for maturities of such instruments.
Participation in interest rate derivatives would help such companies to protect their return due to fluctuation in the interest rates and protect financial health.
Commenting on the guidelines, ICICI Prudential Executive Director Sandeep Batra said "It is a welcome move. It will help insurance companies to hedge their long-term interest rate risks."
Some of the products of insurance companies provide guranteed return. However, due to fluctuation in the interest rates, returns can come down. This can put pressure on the finances companies.
As per the guidelines, the objective of any use of the listed derivatives is that they must be used for hedging purposes only to reduce the interest rate risk.
"Companies enter into these agreements to hedge the interest rate risk on investments and the forecast transactions. Hedging interest rate risk of investment in fixed income securities would cover fixed income derivative positions that are designed to offset the potential losses from existing fixed income investments of them," it said.
Putting conditions, the guidelines said, a participant's dealings in interest rate derivatives would not exceed an outstanding notional principal amount equivalent to 100 per cent of the book value of the fixed income investments of the insurance company under the policyholders fund, it said.
This would exclude ULIP funds in case of life insurers and the shareholders funds taken together, it added.
The mark-to market gain or loss arising out of the effective hedge would be borne by the respective fund only.
Exposure limits pertaining to single issuer, group and industry will be applicable for the exposure through FRA and IRS contracts, it said.
No contracts shall be entered with promoter group entities either directly or indirectly, it added.
"The guidelines are fairly comprehensive and there is a fair amount of checks and balances so that insurance companies do run into the risk of overexposures of such instruments," Batra said.
The guidelines specified that the board would ensure that the Rupee Interest Rate Derivatives are suitable for the portfolio handled by the insurer and the liabilities undertaken.
PEOPLE WILL TAKE POSITIONS ON MARKET BASED ON EXIT POLLS: JITENDRA
ARORA, ICICI PRUDENTIAL LIFE INSURANCE
In a chat with ET Now, Jitendra Arora, SVP-Investments, ICICI Prudential Life Insurance, shares his views on the market. Excerpts:
ET Now: How do you see the currency panning out? Also, do you think that the
FII flows may moderate now a little bit till we get the poll results?
Jitendra Arora: Yes, it has been pretty evident even in the daily flows, both into the debt as well as the equity market. The flows have been fairly neutral in both the debt and the equity market over last few days.
I guess now most of the people are positioned, as they wanted to be, before the election results are out. Now, we may see another hectic round of activity perhaps on May 13, that is after the exit polls are declared, when people will take positions on either side, depending upon what the exit polls indicate. Then finally they will do so after May 16.
COMPLY WITH ANTI-MONEY LAUNDERING NORMS:IRDA TO LIC, ICICI PRU
New Delhi January 21,
2014
Insurance regulator Irda today directed Life Insurance Corporation and ICICI Prudential Life Insurance to comply with Anti-Money Laundering guidelines as they were found to be in violation of various norms.
Irda has asked LIC to put in place systems and controls to
comply with AML provisions. It said there were no systems in place to detect and
monitor when a person made multiple cash transactions aggregating over Rs
50,000 in cash.
"The submissions that all transactions from every office of LIC are clubbed together every week and a report is generated and scrutinised... However, the Life Insurer is hereby advised to put in place specific systems and controls to ensure avoidance of possible attempts by customers to circumvent the requirement of submission of PAN/Form 60/61."
Irda also directed LIC to put in place system to analyse data pertaining to surrenders and directed the Corporation to be vigilant in future.
It also observed that LIC used declaration by Development Officers are valid proof of addresses and instructed it to avoid doing such activities.
In the matter of ICICI Prudential, Irda asked it to closely monitor its branches and further strengthen internal controls as there were tampered/forged documents of ID proofs, address proof and income proofs at some of its branches.
It also asked the company to sensitise its employees, agents and corporate agents to report cases about customers insisting on anonymity, reluctance to provide identifying information or providing seemingly fictitious information.
The regulator also asked ICICI Prudential to put in place training system for their corporate agents.
"It is stated that absence of training on an ongoing basis as envisaged in the AML Guidelines... Therefore the Life Insurer is hereby advised to put in place the systems to comply with the training requirements," Irda said.
ICICI PRUDENTIAL LIFE LAUNCHES NEW PRODUCT
Mar 3, 2014
MUMBAI: Private life insurer, ICICI Prudential Life Insurance today launched a unit-linked insurance product 'ICICI Pru Guaranteed Wealth Protector', a company release said.
This unit-linked product will allow customers to protect their capital on maturity and have a potential for upside through an exposure to equities, it added.
As per the company, the product provides for exposure to an equity-oriented fund of up to 60 per cent for customers aged below 45 years and up to 45 per cent for customers above this age limit, while ensuring that premiums paid are protected.
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.60.22 |
|
|
1 |
Rs.102.79 |
|
Euro |
1 |
Rs.81.95 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
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.