MIRA INFORM REPORT
|
Report Date : |
17.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDIAFIRST LIFE INSURANCE COMPANY LIMITED (w.e.f. 16.09.2009) |
|
|
|
|
Formerly Known
As : |
BARODA L AND G LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
19.06.2008 |
|
|
|
|
Com. Reg. No.: |
11-183679 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 4750.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2008PLC183679 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB19018G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCB6215G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company. |
|
|
|
|
Line of Business
: |
Providing Insurance Services. |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between Bank of Baroda, Andhra Bank and
Legal and General, Middle East. It is an established company having a moderate track record. However, trade relations are reported as fair. Business is active.
Payment terms are slow but correct. In view of support received from joint venture entities, the company
can be considered for business dealings with some caution. |
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
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains revenue
guidance. COO Rao says attrition still an area of concern and it would take a
few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
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 DENIED BY
|
Name : |
Mr. Jayesh |
|
Designation : |
Accountant |
|
Contact No.: |
91-22-39418700 |
|
Date : |
13.11.2014 |
LOCATIONS
|
Registered Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra |
|
Tel. No.: |
91-22-39418700/ 33259678 |
|
Fax No.: |
91-22-33259600 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 17.09.2014
|
Name : |
Mr. Nandagopal Pothula |
|
Designation : |
Managing director |
|
Address : |
C-1401, Oberoi Woods, Mohan Gokhale Road, Goregoan East, Mumbai –
400063, Maharashtra, India |
|
Date of Birth/Age : |
21.09.1960 |
|
Date of Appointment : |
05.11.2009 |
|
DIN No.: |
02808619 |
|
|
|
|
Name : |
Mr. Srinivas Petluri |
|
Designation : |
Director |
|
Address : |
341 and 342, Janapriya Abode, IV Block, 3rd Floor,
Ghandinagar, Hyderabad – 500080, Andhra Pradesh, India |
|
Date of Birth/Age : |
10.06.1956 |
|
Date of Appointment : |
31.12.2012 |
|
DIN No.: |
02836590 |
|
|
|
|
Name : |
Mr. Mark Julian Gregory |
|
Designation : |
Director |
|
Address : |
Holly Tree House, Westdown Park, Burwash, Etchingham, United Kingdom |
|
Date of Birth/Age : |
01.08.1963 |
|
Date of Appointment : |
15.01.2013 |
|
DIN No.: |
06458992 |
|
|
|
|
Name : |
Mr. Raman Padmanabhan |
|
Designation : |
Director |
|
Address : |
Flat – 1-B, Door No.: 2-2-647/284/A, Dwarakamayee Residency, Srinivasa
Nagar, Bagh Amberpet, Hyderabad – 500013, Andhra Pradesh, India |
|
Date of Birth/Age : |
29.10.1957 |
|
Date of Appointment : |
21.12.2011 |
|
DIN No.: |
05150263 |
|
|
|
|
Name : |
Mr. Ajay Mathur |
|
Designation : |
Director |
|
Address : |
168, Golf Link, New Delhi – 110003, India |
|
Date of Birth/Age : |
22.09.1958 |
|
Date of Appointment : |
27.05.2013 |
|
DIN No.: |
01682444 |
|
|
|
|
Name : |
Mr. Simaon Jothan Burke |
|
Designation : |
Nominee director |
|
Address : |
68 A, Sydeney Street, London, United Kingdom SW36PS |
|
Date of Birth/Age : |
01.07.1963 |
|
Date of Appointment : |
13.12.2013 |
|
DIN No.: |
06759759 |
|
|
|
|
Name : |
Ram singh setia |
|
Designation : |
Nominee Director |
|
Address : |
13 B Shanaz Apartments, 90 Napean Sea Road, Mumbai-400006,
Maharashtra, India |
|
Date of Birth/Age : |
15.04.1955 |
|
Date of Appointment : |
19.08.2014 |
|
DIN No.: |
0286633 |
|
|
|
|
Name : |
Kamalji Sahay |
|
Designation : |
Director |
|
Address : |
101 Elitra-E, Casa Bella Gold, Palava City, Kalyan Sheel Road, Dombivali
(East), Navi Mumbai -421201, Maharashtra, India |
|
Date of Birth/Age : |
27.07.1952 |
|
Date of Appointment : |
30.10.2013 |
|
DIN No.: |
01683762 |
KEY EXECUTIVES
|
Name : |
Mr. K R Viswanarayan |
|
Designation : |
Secretary |
|
Address : |
D-202, Priyamvadha, Vaithara Nagar, Nahur Road, Mumbai – 400080,
Maharashtra, India |
|
Date of Birth/Age : |
15.09.1960 |
|
Date of Appointment : |
27.04.2013 |
|
PAN No.: |
AADPR4994H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 17.09.2014
|
Names of Shareholders |
|
No. of Shares |
|
Bank of Baroda |
|
208999970 |
|
Bhuyan Manoranjan |
|
10 |
|
V K Gupta |
|
10 |
|
K Srinivasa Rao |
|
10 |
|
U C Singhvi |
|
10 |
|
Andhra Bank |
|
142499980 |
|
K V Kannan |
|
10 |
|
Padmanabhan Raman |
|
10 |
|
Legal and General Middle East Limited, United Kingdom |
|
123500000 |
|
|
|
|
|
Total |
|
475000000 |
Equity Share Break up (Percentage of Total Equity)
As on 17.09.2014
|
Category |
Percentage |
|
Nationalised or other banks |
74.00 |
|
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 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Insurance Services. |
|
|
|
|
Exports : |
Not Available |
|
|
|
|
Imports : |
Not Available |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by Management
|
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Auditors 1 : |
|
|
Name : |
M K P S and Associates Chartered Accountants |
|
Address : |
01, Sanjay Apartment Chambers, Andheri (East), Mumbai – 400093,
Maharashtra, India |
|
PAN
No.: |
AASFM8070A |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Raj Bordia and Company Chartered Accountants |
|
Address : |
504-B, Dhiraj Kiran, Opposite Infrant Jesus School, Chincholi Bunder
Road, Malad (West), Mumbai – 400064, Maharashtra, India |
|
PAN
No.: |
AACFR5991H |
|
|
|
|
Associates: |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
725000000 |
Equity Shares |
Rs.10/- each |
Rs. 7250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
475000000 |
Equity Shares |
Rs.10/- each |
Rs. 4750.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4750.000 |
4750.000 |
4750.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1300.000 |
1300.000 |
1300.0000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] credit/(Debit) / Fair
Value Change account |
0.000 |
(1.777) |
1.771 |
|
|
Sub Total (a) |
6050.000 |
6048.222 |
6051.771 |
|
|
|
|
|
|
|
|
Borrowings |
|
-- |
-- |
|
|
Sub Total (b) |
|
-- |
-- |
|
|
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
0.000 |
0.237 |
0.189 |
|
|
Policy Liabilities |
32781.235 |
16525.784 |
5975.442 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
Provision for linked liabilities |
25157.753 |
20964.967 |
14843.478 |
|
|
Funds for Discontinued Policies |
1597.708 |
614.912 |
134.967 |
|
|
Sub Total (c) |
60536.698 |
37835.901 |
20954.077 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
577.799 |
367.596 |
238.099 |
|
|
Sub Total (d) |
577.799 |
367.596 |
238.099 |
|
|
|
|
|
|
|
|
TOTAL (e) = (a)+(b)+(c)+(d) |
67164.497 |
44251.720 |
27243.948 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
|
|
|
Shareholders |
4218.517 |
4007.647 |
42277.549 |
|
|
Policyholders |
29048.583 |
12865.349 |
2267.737 |
|
|
Assets held to cover linked liabilities
|
28333.907 |
21723.285 |
15219.444 |
|
|
Loans |
48.921 |
24.046 |
6.819 |
|
|
Fixed Assets |
137.879 |
198.340 |
248.792 |
|
|
Sub Total (f) |
61789.808 |
38818.668 |
22020.342 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Cash & Bank Balances |
3800.240
|
4019.448
|
4077.483
|
|
|
Advances & Other Assets |
3027.444
|
682.268
|
324.174
|
|
Total
Current Assets |
6827.684
|
4701.716
|
4401.657
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3993.480
|
1555.983
|
1062.876
|
|
|
Provisions |
3.780
|
2.211
|
8.865
|
|
Sub Total (h) |
3997.261
|
1558.194
|
1071.741
|
|
|
Net Current
Assets/ (Liabilities) (i) = (g)–(h) |
2830.423
|
3143.522
|
3329.915
|
|
|
|
|
|
|
|
|
Debit balance in Profit and Loss Account (Shareholder account |
2544.265 |
2289.530 |
1893.690 |
|
|
Sub Total (j) |
2544.265 |
2289.530 |
1893.690 |
|
|
|
|
|
|
|
|
TOTAL (k) =
(f)+(i)+(j) |
67164.497 |
44251.720 |
27243.948 |
|
REVENUE ACCOUNT
(TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Premium Earned –
Net |
|
|
|
|
a) Premium |
|
16900.810 |
12979.293 |
|
b) Reinsurance Ceded |
|
(68.298) |
(35.466) |
|
c) Reinsurance accepted |
|
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend |
|
1266.405 |
466.469 |
|
b) Profit on sale / Redemption of investments |
|
528.102 |
108.302 |
|
c) (Loss) on sale / Redemption of investments |
|
(221.219) |
(98.321) |
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
|
639.421 |
(399.974) |
|
e) Amortisation of premium/ discount on investments |
|
220.424 |
153.728 |
|
|
|
|
|
|
Other Income |
|
|
|
|
Miscellaneous Income |
|
5.807 |
(7.479) |
|
Contribution from shareholder Account |
|
905.555 |
1304.283 |
|
Sub-Total (A) |
|
20177.009 |
14470.834 |
|
|
|
|
|
|
Commission |
N.A |
305.549 |
273.681 |
|
Operating expenses related to insurance business |
|
2108.151 |
1895.580 |
|
Provision for Doubtful debts |
|
0.000 |
0.000 |
|
Bad debts written off |
|
0.000 |
0.00 |
|
Provision for tax |
|
0.000 |
0.000 |
|
Provision (other
than taxation) |
|
|
|
|
a) for diminution in value of investments (net) |
|
0.000 |
0.000 |
|
b) others |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.00 |
00.000 |
|
Total (B) |
|
2413.700 |
2169.262 |
|
|
|
|
|
|
Benefits paid (Net) |
|
586.707 |
263.139 |
|
Interim Bonuses Paid |
|
0.000 |
0.000 |
|
Change in
valuation of liabilities in respect of life policies |
|
-- |
-- |
|
a) Gross** |
|
10550.342 |
5620.560 |
|
b) Fund Reserve |
|
5850.064 |
5838.058 |
|
c) Discount fund |
|
471.575 |
133.972 |
|
d) Amount ceded in Re-insurance |
|
0.000 |
0.000 |
|
e) Amount accepted in Re-insurance |
|
0.000 |
0.000 |
|
Total (C) |
|
17458.688 |
11855.731 |
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
N.A |
304.619 |
455.840 |
|
Appropriations |
|
|
|
|
Transfer to shareholders account |
|
175.123 |
260.168 |
|
Transfer to other reserves |
|
0.00 |
0.000 |
|
Balance being funds for future appropriation |
|
129.496 |
185.671 |
|
Total (D) |
|
304.619 |
445.840 |
PROFIT & LOSS ACCOUNT
(NON-TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Amounts transferred from the Policyholders Account (Technical Account) |
413.931 |
175.123 |
260.168 |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest |
236.929 |
193.061 |
132.376 |
|
b) Profit on sale / Redemption of investments |
23.151 |
39.416 |
35.072 |
|
c) (Loss) on sale / Redemption of investments |
(12.138) |
(9.367) |
(25.788) |
|
e) Amortisation of premium/ discount on investments |
77.485 |
131.103 |
185.503 |
|
Other Income |
0.008 |
0.000 |
0.000 |
|
Sub-Total |
739.369 |
529.336 |
587.432 |
|
|
|
|
|
|
Expense other
than those directly related to the insurance business |
24.196 |
19.622 |
8.926 |
|
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 |
|
© Others |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
969.907 |
905.555 |
1304.283 |
|
Sub-Total |
994.104 |
925.177 |
1313.210 |
|
Profit / (Loss) before tax |
(254.734) |
(395.840) |
(725.777) |
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
Profit / (Loss) after tax |
(254.734) |
(395.840) |
(725.777) |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
(a) Balance at the beginning of the year |
(2289.530) |
(1893.690) |
(1167.912) |
|
(b) Interim dividends paid during the 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 forward to the Balance Sheet |
(2544.265) |
(2289.530) |
(1893.690) |
|
|
|
|
|
|
Earning Per Shares (Basic and Diluted, Face Value Rs.10) |
(0.54) |
(0.83) |
(1.73) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.73)
|
(8.41) |
(16.48) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04)
|
(0.06) |
(0.11) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
3.01 |
4.10 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
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 |
-- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
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 |
INDEX
OF CHARGES: NO CHARGES EXIST FOR COMPANY
FINANCIAL
PERFORMANCE
The Company in its
Sixth year of operations has surpassed expectations despite of the challenging
economic environment.
In terms of sales performance,
the Company delivered a strong performance in its Sixth year of operations as
compared to the industry growth rate.
In the Sixth
Annual Report, the Company recorded a loss of Rs. 254.700 Millions. The loss
originates predominantly from investments in human resources and infrastructure
necessary to build up a company that will be able to compete in an increasingly
competitive, crowded but still strongly growing industry. The gross premium
income of the organisation is Rs 21430.000 Millions.
The total assets
under management (AUM) as on 31" March 2013 were Rs. 65063.900 Millions.
The ability to provide strong investment performance in all market conditions
is a key strength of the Company.
OUTLOOK
In India, broadly the life insurance market is segmented into
protection, savings, investments, Health and Pensions on the basis of product
categories and individual and group on the basis of customer channels. The
individual business is showing negative rate of growth for the past few years
while the group segment is growing negative rate of the industry is on a
decline.
Group customers engage insurance brokers or through a long price
discovery process resulting in reduced rate of premium. Individual customers on
the other hand, are buying mostly through online portals that offer premium
comparison charts that result in competitive price wars.
Long term saving and investment products which were the main stay of the
industry for many years are also showing decline in demand due to (a) poor
insurance specific tax incentives (b) reducing commissions causing
disappearance of insurance agents (c) mis-selling and poor service causing
customer disenchantment and lack of trust (d) unit linked products suffering
from market volaltility, poor product design and fund management (e) customer
behavior shifting from long term orientation to short term approach (f)
stringent regulations reducing the scope for product innovation.
Health insurance while growing as product category, is mostly sold by
general insurers and hence business done by life insurers is minimal. Life
insurers inability to carve out a good market share in the growing health
business essentially stem from (a) long term premium rates being unattractive
to customers (b) cumbersome pre-policy underwriting procedures (c) inability of
the sales force to appreciate the nuances of effective health insurance selling
(d) poor claim settlement track record (e) lack of (f) emphasis on long term
embedded value than on current profitability and (g) lack of systems and
processes to service health insurance.
Pension product have specific demand in the industry generally, but
insurance companies focused only on accumulation phase of pensions and not on
the annuity phase due to lack of skills and risk aversion. Consequently, LIC
and the Pension Funds under PFDRA are having an edge over the private life
insurers and the industry is missing out on developing a very robust and
competitive pension funds business that covers both the accumulation and
annuity phases of the customer needs.
IndiaFirst will focus on following:
(a)
Achieve early breakeven
(b)
Conserve capital through enhanced revenue and
productivity
(c)
Continue cost control and drive efficiency through
improved productivity.
(d)
Manage balanced distribution and product mix to
de-risk channel and product obsolescence
(e)
Leverage digital technology and business innovation
to reduce operational costs, improve customer delight and create significant
competitive advantage in the market place.
(f)
Pursue high ethical standards and clear values of
“Do More-Think New-Be Helpful-Be Honest” in letter and in sprit.
(g)
Provide value for money product to customers whilst
fulfilling shareholder aspirations for return on capital.
(h)
Become a “Great Place to Work” for employees.
(i)
Create and sustain a strong brand identity of “The
Brave New World” in the Insurance market.
BACKGROUND
Subject
headquartered at Mumbai, had commenced operations on 16th November 2009, after
receiving the license to transact life insurance business in India from the
insurance Regulatory and Development Authority ('IRDA') on 5th November 2009.
The license has been renewed regularly and is in force as at 31 March, 2013.
The Company is a
joint venture between Bank of Baroda (44
percent), Andhra Bank (30 percent) and Legal and General, Middle
East., subsidiary of Legal and General, UK (26 percent).
The Company
carries on business in the areas of life Insurance, health insurance and
pensions. This business spans across individual and group products and covers
participating, non-participating and unit linked lines of business. Riders
covering additional benefits are offered under these products. These products
are distributed through individual agents, corporate agents, banks, brokers and
the company's proprietary safes force.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
|
Statutory demands / liabilities in dispute |
0.006 |
FIXED ASSETS
- Goodwill
- Software
- Leasehold
Improvements
- Building
- Furniture and
Fittings
- Information
Technology Equipment
- Vehicle
- Office
Equipment
- Office
(Specify Nature)
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.61.64 |
|
|
1 |
Rs.96.54 |
|
Euro |
1 |
Rs.76.69 |
INFORMATION DETAILS
|
Information Gathered
by : |
GAY |
|
|
|
|
Analysis done by : |
DIV |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
32 |
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.