MIRA INFORM REPORT
|
Report Date : |
15.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED |
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Registered
Office : |
13th Floor, Lodha Excelus, Apollo Mills Compound, N. M.
Joshi Road, Mahalaxmi, Mumbai – 400011, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
14.08.2000 |
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Com. Reg. No.: |
11-128245 |
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Capital
Investment / Paid-up Capital : |
Rs.19948.801
Millions |
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CIN No.: [Company Identification
No.] |
U99999MH2000PLC128245 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH05080F |
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PAN No.: [Permanent Account No.] |
AAACH8755L |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business
: |
Providing Legal and Financial Services and Insurance Services. |
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No. of Employees
: |
13900 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 88000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a joint venture between “Housing Development Finance
Corporation (HDFC) and Standard Life PLC., UK”. It is a well-established company
having fine track. The company possesses a favourable financial profile marked by
adequate networth base and comfortable capital structure backed by healthy
asset base in the books. Management has witnessed an improvement in the business profile owing
to better growth in its revenue and a minimal net profitability reported
during financial year June 30, 2014 as against a previous year losses. Trade relations are fair. Business is active. Payment terms are
regular and as per commitment. In view of vast experience and support from the promoters the company
can be considered good for business dealing 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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
31-03-2014.
INFORMATION DENIED
Management Non Co-operative (91-22-67516680)
LOCATIONS
|
Registered Office : |
13th Floor, Lodha Excelus, Apollo Mills Compound, N. M.
Joshi Road, Mahalaxmi, Mumbai – 400011, Maharashtra, India |
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Tel No.: |
91-22-67516666 |
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Fax No.: |
91-22-67516333 |
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E-Mail : |
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Website : |
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Corporate Office : |
2nd Floor, ‘A’ Wing, Trade Star Building, Junction of
Kondivita and M.V. Road, Andheri Kurla Road, Andheri (East), Mumbai – 400059,
Maharashtra, India |
|
Tel. No.: |
91-22-28220055/ 67516666 |
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Fax No.: |
91-22-28229998/ 26222414 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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International
Liaison Office: |
Office number- 207, 2nd floor, The Business Center, Bank
Street, Bur Dubai, Dubai, United Arab Emirates |
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Tel. No.: |
(+971) 43426662 |
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Branch Office : |
Located at : ·
·
Kolkata ·
Mumbai ·
·
·
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DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Deepak Shantilal Parekh |
|
Designation : |
Chairman |
|
Address : |
9/B Darbhanga Mansion, 12 Carmichael Road, Mumbai – 400026, Maharashtra, India |
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Date of Birth/Age : |
18.10.1944 |
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Qualification : |
Fellow of Institute of Chartered Accountants (England and Wales) |
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Date of Appointment : |
17.08.2000 |
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DIN No.: |
00009078 |
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Name : |
Mr. Gerald Edgar Grimstone |
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Designation : |
Alternate Director |
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Address : |
34, Boscobel Place, London, UK - SWIW9PE |
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Date of Birth/Age : |
27.08.1949 |
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Qualification : |
Master of Arts, Master of Science in Chemistry, Merton College, Oxford University and NATO-CCMS Fellowship Wolfson College, Oxford University |
|
Date of Appointment : |
01.04.2013 |
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DIN No.: |
01910890 |
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Name : |
Mr. Keki Minoo Mistry |
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Designation : |
Director |
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Address : |
Flat No.0702/703, Hasmukh Mansion, 14 Road, Junction, Khar (West), Mumbai – 400 054, Maharashtra, India |
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Date of Birth/Age : |
07.11.1954 |
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Qualification : |
FCA, Member of Michigan Association of Certified Public Accountants |
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Date of Appointment : |
20.12.2000 |
|
DIN No.: |
00008886 |
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|
|
|
Name : |
Mr. David Thomas Nish |
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Designation : |
Director |
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Address : |
Kiloran, Houseton Road, Kilmalcolm PA134NY, United Kingdom |
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Date of Birth/Age : |
05.05.1960 |
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Qualification : |
Member of the Institute of Chartered Accountants of Scotland |
|
Date of Appointment : |
05.08.2010 |
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DIN No.: |
02912150 |
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|
Name : |
Mrs. Renu Sud Karnad |
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Designation : |
Director |
|
Address : |
BB 14, Greater Kailash Enclave II, New Delhi – 110 048, India |
|
Date of Birth/Age : |
03.09.1952 |
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Qualification : |
Graduate in Law, and Master’s degree in Economics from Delhi University |
|
Date of Appointment : |
25.01.2006 |
|
DIN No.: |
00008064 |
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|
|
|
Name : |
Mr. Norman Keith Skeoch |
|
Designation : |
Director |
|
Address : |
19 Lennox Street, Edinburgh, EH41PY, United Kingdom |
|
Date of Birth/Age : |
05.11.1956 |
|
Qualification : |
Fellow of the Securities Institute, Fellow of the Royal Society for the Encouragement of the Arts, Manufacture and Commerce, BA, MA |
|
Date of Appointment : |
02.11.2005 |
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DIN No.: |
00165850 |
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Name : |
Mr. Michael Gerald Connarty |
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Designation : |
Director (Alternate to Mr. Norman Keith Skeoch) |
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Address: |
3 Joppa Road, Edinburgh- EH152HA, Unted Kingdom |
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Date of Birth/ Age: |
18.11.1955 |
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Qualification : |
Graduate in Law and MBA |
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Date of Appointment: |
03.02.2012 |
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DIN No.: |
01960618 |
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Name : |
Mr. Gautam Ramanlal Divan |
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Designation : |
Director (Upto April 24, 2014) |
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Address : |
95C, Kalewar Mansion, 22, Babulnatha Road, Mumbai-400007, Maharashtra, India |
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Date of Birth/Age : |
22.07.1940 |
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Qualification : |
FCA |
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Date of Appointment : |
03.02.2004 |
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DIN No.: |
00001176 |
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|
Name : |
Mr. Ravi Dharam Narain |
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Designation : |
Director |
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Address : |
602 Neat House, 766, College Galli, Dadar (West), Mumbai – 400 028, Maharashtra, India |
|
Date of Birth/Age : |
19.08.1955 |
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Qualification : |
Cambridge University-trained Economist, MBA, Wharton School, University of Pennsylvania, USA |
|
Date of Appointment : |
28.04.2005 |
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DIN No.: |
00062596 |
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|
Name : |
Mr. Ranjan K. Pant |
|
Designation : |
Director (Upto April 24, 2014) |
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Address : |
1Portion – B, 10-A, Kasturba Gandhi Marg, New Delhi – 110001, India |
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Date of Birth/Age : |
29.06.1959 |
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Qualification : |
BE (Honours), Birla Institute of Technology and Sciences; MBA, The Wharton School |
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Date of Appointment : |
03.05.2004 |
|
DIN No.: |
00005410 |
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|
Name : |
Mr. Alwarthirunagari Kuppuswamy Thiruvenkata Chari |
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Designation : |
Director (Upto April 24, 2014) |
|
Address : |
181-A, Twin Towers, Prabhadevi, Mumbai-400025, Maharashtra, India |
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Date of Birth/Age : |
16.12.1936 |
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Qualification : |
Electrical Engineering, Madras University |
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Date of Appointment : |
05.08.2010 |
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DIN No.: |
00746153 |
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|
Name : |
Mr. Surendra Ambalal Dave |
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Designation : |
Alternate Director |
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Address : |
17/31, MHB Colony, Bandra Reclamation, Bandra (West), Mumbai – 400050, Maharashtra, India |
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Date of Birth/Age : |
03.08.1936 |
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Qualification : |
Doctorate of Economics and Masters in Economics from University of Rochester |
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Date of Appointment : |
26.04.2012 |
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DIN No.: |
00001480 |
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|
Name : |
Mr. Prasad Chandran |
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Designation : |
Director (W.e.f. April 25, 2014) |
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|
Name : |
Mr. Vish Viswanathan |
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Designation : |
Director (W.e.f. April 25, 2014) |
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|
Name : |
Mr. Amitabh Omsingh Chudhary |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
Flat 4301 , 43rd Floor, Tower III, Electra Planet Godrej, Near Jacob Circle, Saat Rasta, Mahalaxmi East, Mumbai- 400011, Maharashtra, India |
|
Date of Birth/Age : |
02.07.1964 |
|
Qualification : |
Engineering, Birla Institute of Technology and Science, Pilani; MBA- IIM, Ahmedabad |
|
Date of Appointment : |
18.01.2010 |
|
DIN No.: |
00531120 |
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|
|
|
Name : |
Ms. Vibha Padalkar |
|
Designation : |
Executive Director and Chief Financial Officer |
|
Qualification : |
Chartered Accountant from The Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in India |
|
Date of Appointment : |
14.08.2012 |
KEY EXECUTIVES
|
Name : |
Mr. Manish Ghiya |
|
Designation : |
Secretary |
|
Address : |
B-604, Ballerina Chs, 3rd
Cross Road, Lokhandwala Complex, Andheri (West), Mumbai – 400053,
Maharashtra, India |
|
Date of Birth/Age : |
15.06.1969 |
|
Date of Appointment : |
23.01.2012 |
|
PAN No.: |
AAAPG8539J |
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|
|
|
Executive Committee : |
·
Mr. Suresh Badami ·
Mr. Rajendra Ghag ·
Mr. Prasun Gajri ·
Mr. Srinivasan Parthasarathy ·
Mr. Sanjay Tripathy ·
Mr. Subrat Mohanty ·
Mr. AS Jayasimha ·
Mr. Sanjeev Kapur ·
Mr. Sanjay Vij ·
Mr. Manish Sangal ·
Mr. R Chandrasekhar ·
Mr. Vikas Abhyankar |
MAJOR SHAREHOLDERS
AS ON 30.06.2014
|
Names of Shareholders |
No. of Shares |
% of Holding |
|
Promoters |
|
|
|
- Indian / Holding Company |
1,443,733,842 |
72.37% |
|
- Foreign |
518,668,824 |
26.00% |
|
|
|
|
|
Others - Domestic |
32,477,430 |
1.63% |
|
|
|
|
|
Total |
1,994,880,096 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Providing Legal and Financial Services and Insurance Services. |
|
|
|
|
Products : |
Life Insurance |
GENERAL INFORMATION
|
No. of Employees : |
13900 (Approximately) |
|
|
|
|
Bankers : |
· HDFC Bank Limited · Yes Bank Limited · Axis Bank Limited · Citi Bank N.A. · Bank of Baroda · Federal Bank · Union Bank of India · State Bank of India · State Bank of Travancore · Indian Bank · Indian Overseas Bank · Ratnakar Bank ·
The Saraswat Co-operative Bank Limited |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S B Billimoria and Company (Upto 14th AGM) Chartered Accountants |
|
Address : |
Indiabulls Finance Centre, Tower 3, 31st Floor, Elphinstone Mill Compound,
Senapati Bapat Marg, Mumbai – 400013, Maharashtra, India |
|
PAN No.: |
AAAFS7376P |
|
|
|
|
Name : |
Haribhakti and Company Chartered Accountants |
|
|
|
|
Name : |
Price Waterhouse (Proposed from 14th AGM) Chartered Accountants |
|
|
|
|
Holding Company : |
Housing Development Finance Corporation Limited (HDFC Limited) |
|
|
|
|
Investing Company : |
Standard Life (Mauritius Holdings) 2006 Limited |
|
|
|
|
Wholly Owned
Subsidiary : |
HDFC Pension Management Company Limited |
|
|
|
|
Fellow Subsidiary : |
· HDFC Asset Management Company Limited · HDFC Developers Limited · HDFC Holdings Limited · HDFC Trustee Company Limited · HDFC Realty Limited · HDFC Investments Limited · HDFC ERGO General Insurance Company Limited · GRUH Finance Limited · HDFC Sales Private Limited · HDFC Venture Capital Limited · HDFC Ventures Trustee Company Limited · HDFC Property Ventures Limited · HDFC Investment Trust · Credila Financial Services Private Limited ·
Griha Investments Pte Limited,
Singapore (Subsidiary of HDFC Investments Limited) · H. T. Parekh Foundation ·
Windermer Properties Private Limited ·
Grandeur Properties Private Limited ·
Whinchester Properties Private
Limited ·
Pentagram Properties Private Limited · Haddock Properties Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs.30000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Called-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1994880096 |
Equity Shares |
Rs.10/- each |
Rs.19948.801
Millions |
|
|
|
|
|
NOTE: Of the above, Share Capital amounting to Rs. 14437.338 millions (Previous year: Rs. 14437.338 millions) is held by Housing Development Finance Corporation Limited, the holding company.
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 |
19948.801 |
19948.801 |
19948.801 |
|
2] Reserves & Surplus |
2154.864 |
2197.045 |
2201.376 |
|
3] Credit /[Debit] Fair Value Change Account |
27.299 |
(103.348) |
(52.160) |
|
Sub-Total |
22130.964 |
22042.498 |
22098.017 |
|
|
|
|
|
|
BORROWINGS |
|
|
|
|
POLICYHOLDERS’ FUNDS: |
|
|
|
|
Credit /[Debit] Fair Value Change Account |
310.525 |
(789.521) |
(340.785) |
|
Policy Liabilities |
143396.672 |
101555.774 |
73865.111 |
|
Insurance Reserves |
-- |
-- |
-- |
|
Provision for Linked Liabilities |
302078.994 |
275489.544 |
230603.983 |
|
Add: fair value change |
25278.089 |
2456.917 |
4440.774 |
|
Provision for
Linked Liabilities |
327327.083 |
277946.461 |
235044.757 |
|
Funds for discontinued policies |
|
|
|
|
i) Discontinued on account of non-payment of premium |
14546.648 |
5332.362 |
1042.027 |
|
ii) Others |
169.966 |
52.055 |
11.221 |
|
Total Provision
for Linked Liabilities |
342073.697 |
283330.878 |
236098.005 |
|
|
|
|
|
|
Sub-Total |
485780.894 |
384097.131 |
309622.331 |
|
|
|
|
|
|
Funds for Future Appropriations |
2258.631 |
3436.831 |
1251.005 |
|
Funds for future appropriation – Provision for lapsed policies
unlikely to be revived |
870.870 |
3048.853 |
3352.468 |
|
|
|
|
|
|
TOTAL |
511041.359 |
412625.313 |
336323.821 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
INVESTMENTS |
|
|
|
|
Shareholders |
16156.329 |
8562.437 |
5894.173 |
|
Policyholders |
147062.258 |
112146.449 |
79902.644 |
|
Assets held to cover Linked Liabilities |
342073.697 |
283.330.878 |
236098.005 |
|
LOANS |
478.657 |
785.307 |
317.628 |
|
FIXED ASSETS |
3444.414 |
3077.176 |
2795.451 |
|
CURRENT ASSETS: |
|
|
|
|
Cash and Bank Balance |
4588.838 |
4863.760 |
5475.639 |
|
Advances and Other Assets |
9932.451 |
7161.225 |
7433.556 |
|
|
|
|
|
|
Sub-Total (A) |
14521.289 |
12024.985 |
12909.195 |
|
|
|
|
|
|
SUNDRY CREDITORS |
-- |
-- |
6010.271 |
|
OTHER CURRENT LIABILITIES |
14763.946 |
15442.450 |
8992.385 |
|
PROVISIONS |
275.517 |
289.511 |
136.754 |
|
Sub-Total (B) |
15039.463 |
15731.961 |
15139.410 |
|
|
|
|
|
|
NET CURRENT
ASSETS (C) = (A-B) |
(518.174) |
(3706.976) |
(2230.215) |
|
|
|
|
|
|
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT [Shareholders account] |
2344.178 |
8430.042 |
12944.833 |
|
Deficit in the report |
-- |
-- |
601.302 |
|
|
|
|
|
|
TOTAL |
511041.359 |
412625.313 |
336323.821 |
PROFIT & LOSS
ACCOUNT
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2014
POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
PREMIUMS EARNED
- NET |
|
|
|
|
|
(a) Premium |
120629.010 |
113226.763 |
102024.022 |
|
|
(b) Reinsurance ceded |
(908.768) |
(640.471) |
(525.347) |
|
|
(c) Re-insurance accepted |
-- |
-- |
-- |
|
|
SUB-TOTAL |
119720.242 |
112586.292 |
101498.675 |
|
|
|
|
|
|
|
|
INCOME FROM
INVESTMENTS |
|
|
|
|
|
(a) Interest, Dividends and Rent - Gross |
23542.092 |
17787.144 |
12605.318 |
|
|
(b) Profit on sale / redemption of investments |
12969.437 |
15953.265 |
12350.979 |
|
|
(c) (Loss on sale / redemption of investments) |
(8815.183) |
(6547.611) |
(5343.220) |
|
|
(d) Transfer /Gain on revaluation / change in Fair value |
22834.190 |
(1975.997) |
(17287.641) |
|
|
(e) Appropriation/ Expropriation Adjustment Account |
-- |
-- |
(111.535) |
|
|
(f) Amortisation of (premium)/ discount on investments |
202.962 |
211.889 |
193.435 |
|
|
SUB-TOTAL |
50733.498 |
25424.405 |
2407.336 |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
(a) Contribution from the Shareholders' A/c |
2173.257 |
18.950 |
259.129 |
|
|
(b) Other income |
238.797 |
256.601 |
107.490 |
|
|
SUB-TOTAL |
2412.054 |
275.551 |
366.619 |
|
|
|
|
|
|
|
|
Total (A) |
172865.794 |
138286.248 |
104272.630 |
|
|
|
|
|
|
|
|
Commission |
5096.959 |
6393.956 |
5776.394 |
|
|
Operating Expenses related to Insurance Business |
14146.471 |
13441.960 |
12698.847 |
|
|
Provision For Doubtful Debts |
-- |
-- |
-- |
|
|
Bad Debts Written Off |
-- |
-- |
-- |
|
|
Provision for Tax |
1516.023 |
516.191 |
-- |
|
|
Provisions (other than taxation) |
|
|
|
|
|
(a) For diminution in the value of investments (Net) |
276.324 |
-- |
-- |
|
|
(b) Others |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
Total (B) |
21035.777 |
20352.107 |
18475.241 |
|
|
|
|
|
|
|
|
Benefits Paid (Net) |
46619.133 |
38976.408 |
29531.650 |
|
|
Interim Bonuses Paid |
46.262 |
25.375 |
27.756 |
|
|
Terminal Bonuses Paid |
283.093 |
161.927 |
63.622 |
|
|
Change in
valuation of liability in respect of life policies |
|
|
|
|
|
(a) Gross |
105876.684 |
81692.634 |
53253.861 |
|
|
(b) Amount ceded in Reinsurance |
(5292.966) |
(9338.992) |
(808.654) |
|
|
(c) Amount accepted in Reinsurance |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
Total (C) |
147532.206 |
111517.352 |
82068.235 |
|
|
|
|
|
|
|
|
SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C) |
4297.811 |
6421.074 |
3729.154 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to Shareholders' Account |
7653.994 |
3937.561 |
2505.310 |
|
|
Transfer to Other Reserve |
-- |
-- |
-- |
|
|
Funds of Future Appropriation – Provision for lapsed policies unlikely to be revived |
(2177.983) |
(303.615) |
797.362 |
|
|
Balance being Funds for Future Appropriations |
(1178.200) |
2185.826 |
(666.143) |
|
|
Surplus in Revenue Account transferred to Balance Sheet adjusted against “Deficit in Revenue Account (Policyholders’ Account)” |
-- |
601.302 |
1092.625 |
|
|
Transfer to Balance Sheet being "Deficit in the Revenue Account (Policyholders Account)" |
-- |
-- |
-- |
|
|
|
|
|
|
|
Total (D) |
4297.811 |
6421.074 |
3729.154 |
|
|
|
|
|
|
|
|
The total surplus
as mentioned below : |
|
|
|
|
|
|
|
|
|
|
|
a) Interim Bonuses Paid |
46.262 |
25.375 |
27.756 |
|
|
b) Terminal Bonuses Paid |
283.093 |
161.927 |
63.622 |
|
|
c) Allocation of bonus to policyholders |
3897.237 |
3425.432 |
2521.053 |
|
|
d) Surplus shown in the revenue account |
4297.811 |
6421.074 |
3729.154 |
|
|
Total Surplus: [(a)
+ (b) + (c ) + (d)] |
8524.403 |
10033.808 |
6341.585 |
|
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 |
|
|
|
|
|
|
Amounts Transferred from The Policyholders Account (Technical Account) |
7653.994 |
3937.561 |
2505.310 |
|
Income from Investments |
|
|
|
|
a) Interest, Dividends and Rent – Gross |
991.175 |
484.954 |
396.395 |
|
b) Profit on sale/ redemption of investments |
149.439 |
229.745 |
69.895 |
|
c) (Loss on sale / redemption of investments) |
(1.436) |
(0.001) |
(0.151) |
|
d) Transfer/ Gain on revaluation/ change in fair value |
-- |
-- |
-- |
|
e) Amortisation of (premium)/discount on investments |
1.595 |
(3.166) |
(0.224) |
|
|
|
|
|
|
Sub Total |
1140.773 |
711.532 |
465.915 |
|
Other Income |
0.004 |
0.004 |
0.007 |
|
|
|
|
|
|
TOTAL (A) |
8794.771 |
4649.097 |
2971.232 |
|
|
|
|
|
|
Expenses other than those directly related
to the insurance business Bad debts written off |
137.811 |
72.991 |
1.949 |
|
Provisions |
|
|
|
|
- For diminution in the value of
investments (net) |
58.604 |
-- |
-- |
|
Contribution to the Policyholders Fund |
2173.257 |
18.950 |
259.129 |
|
|
|
|
|
|
TOTAL (B) |
2369.672 |
91.941 |
261.078 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
6425.099 |
4557.156 |
2710.154 |
|
Provision for Taxation |
(827.720) |
42.365 |
-- |
|
Profit/(Loss) After Tax |
7252.819 |
4514.791 |
2710.154 |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
Balance at the beginning of the year |
(8430.042) |
(12944.833) |
(15654.987) |
|
Interim Dividends Paid during the year |
(997.440) |
-- |
-- |
|
Proposed Final Dividend |
-- |
-- |
-- |
|
Dividend Distribution Tax |
(169.515) |
-- |
-- |
|
|
|
|
|
|
Profit / Loss carried forward to the balance
sheet |
2344.178 |
(8430.042) |
(12944.833) |
|
|
|
|
|
|
Earnings per share Basic/ Diluted |
3.64 |
2.26 |
1.36 |
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 |
Yes |
|
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 |
LITIGATION DETAILS:
|
HIGH
COURT OF BOMBAY
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS REVIEW AND OUTLOOK
The
overall business environment for the life insurance industry continued to remain
challenging in FY 2014. This was primarily on account of sluggish GDP growth,
persistent inflation, uncertainty on macro-economic and regulatory parameters
and the new product regime impacting distributor and consumer sentiments.
Challenges
pertaining to talent acquisition and retention, high operating expenses and
customer confidence in insurance products also persisted. In short, the
industry continued to operate under difficult market conditions.
The industry
witnessed 3.4% decline on individual new business Weighted Received Premium
(WRP) during FY 2014. On an overall basis (Individual and Group WRP), the
industry grew by 2.8% growth in FY 2014. The Company registered a growth of 6.5
% over FY 2013 in the total written premium segment, which was primarily driven
by strong renewal premium and Group business.
However, the Company registered a de-growth of 24.3% in
Individual First Year Premium over FY 2013 which was in line with the
industry trend.
The
Company’s market share stood at 13.8% in FY 2014 versus 17.5% in the previous
year for individual business. Group business outperformed competition recording
a robust growth of 30.0% over FY 2013. The Company continued to perform well on
other financial and operational parameters. The Company maintained its
Conservation Ratio at 79% in FY 2014. The sum assured in force for the overall
business at the end of FY 2014 stood at Rs.2726970.000 Millions, which
represents a growth of 35.1%. While significant investments in technology, new
products and new channels were made during the year, the operating expenses
ratio, excluding service tax, decreased by 10 basis points over the previous
year through stringent cost control measures. A balanced product mix of linked,
participating and non-participating products was maintained during the year. As
a result, the Company recorded Indian GAAP profits of Rs.7250.000 Millions in
FY 2014.
In
view of the profitability during the year, the Board declared an interim
dividend @ Rs.0.50 per equity share of the face value of Rs.10/- each.
The
back book is generating sufficient profits to offset the new business strain
incurred in writing of new policies. The Company’s Assets under Management
(AUM) stood at Rs.502580.000 Millions and registered a growth of 25.3% for FY
2014. The Company expanded its distribution network further by adding key
channel partners in FY 2014.
The
Online Sales channel attained a market leadership position. The Company
continued its focus on the five strategic themes it had identified in FY 2014.
A number of strategic and functional initiatives were taken up to improve
business quality, sustainability, efficiency and agility. Some of the key
initiatives undertaken during the year were pre-conversion verification
calling, signature verification at login, concurrent audits, predictive
analytics for business quality and a strong focus on further improving Anti
Money Laundering (AML) / Know Your Customer (KYC) guidelines compliances.
Initiatives on improving New Business Margins (NBM), Technology Enabled
Business Transformation (TEBT), and proactive readiness for the new product
regime also helped drive the Company’s robust performance.
The
Company received several awards and recognitions during the year for its strong
people practices, brand promise, organizational excellence, process maturity
and enabling technology.
PRODUCTS
In FY
2014, the IRDA introduced new set of Linked and Non- Linked Product regulations
applicable across Individual and Group Products. Complete implementation of
these regulations led to reduction in overall cost of product for the customer,
capping of maximum commission payable to distributors based on premium paying
term and improvement in the surrender value for the customers. Consequently,
the Company withdrew 37 products belonging to the previous products regime, and
launched 30 new products in the FY 2014.
The
Company was the first to be ready with entire new product portfolio within the
respective deadlines.
MANAGEMENT DISCUSSION AND ANALYSIS
MACRO ECONOMIC OVERVIEW
INDIAN
ECONOMY - OPPORTUNITIES AND CHALLENGES
India
is on track to be amongst the top three growth economies in the world by FY
2020 according to EY Attractiveness Survey India 2014, aided
by its growing middle class population, increasing consumption levels and a
large skilled workforce. The golden years of FY 2000-07 when India’s growth
rate averaged 7.2% are in stark contrast to the past few years which have
witnessed a subdued growth of the Indian economy.
With
high inflation rates, a large fiscal deficit, structural bottlenecks and tepid
demand for both investment and consumption, the growth is expected to moderate
to an average of 6.3% (see table below) for FY 2014-18.
Though
India is projected to grow at a modest pace, the growth is expected to be more
sustainable and healthy, driven by improving economic fundamentals. India is
also forecasted to become one of the largest consumption markets in the world
by FY 2025 according to CII, with tier-II and tier-III cities experiencing a
rise in purchasing power and awareness levels. India’s labour force is also
expected to rise to 55.7 Crs by FY 2020.
These
factors, coupled with competitive wage costs and superior engineering skills,
have the potential to make India a preferred investment destination for
Specialised and customized production requirements.
LIFE
INSURANCE INDUSTRY - OVERVIEW AND TRENDS OVERVIEW
India
ranked 1st in terms of life insurance density according to World Economic
Forum’s Financial Development Report 2012, though it
ranked low in terms of overall financial development.
The
low penetration of life insurance at 3.2% of GDP in FY 2013 indicates promising
growth prospects for the industry. Growth on the demand side is expected to be
driven by growing population, rising purchasing power and increasing financial
literacy. Growth on the supply side is expected to be fuelled by rising
competition and innovation.
The
initial growth of the life insurance industry from FY 2000-08 has come at the
cost of high expenses incurred on promoting product and brand awareness,
establishing new and strengthening existing distribution channels and opening
of new branches.
Most
of the insurance companies have failed to meet their original timelines of
breaking-even within the first seven to nine years of operations. However,
expense levels have seen a decline post the September, 2010 ULIP regulations
issued by IRDA.
Though
the long term outlook remains promising, the industry faces a multitude of
challenges in the short term in order to meet regulatory demands, increase risk
management capabilities, realign distribution models and build technological
capabilities.
Life
insurance companies would increasingly be required to focus on two aspects, a
clearly defined value proposition for customer acquisition and operational
efficiency to improve profitability.
INDUSTRY PERFORMANCE
Since
the opening of India’s insurance industry to private sector in FY 2001, the
private players witnessed two major cycles. The first saw a rapid growth till
FY 2009 where the New Business Premium grew by over five times.
Life
insurance penetration increased from 2.1% in FY 2001 to 4.0% in FY 2009 and competition
intensified with the number of private players increasing from 5 in FY 2001 to
22 in FY 2009. The second phase since FY 2009 witnessed a decline in market
share of private players from 59% in FY 2009 to 37% for FY 2014 on Overall
Weighted Received Premium (WRP) basis. The performance of the industry during
this period was affected by a rapid and significant change in product
regulations, global financial crisis and pressure on companies to start moving
towards profitability.
FY
2014 was a tough year with private players losing 3.0% market share to LIC. The
Company continued to be amongst the top three private players on Overall WRP
basis with 11.6% market share for FY 2014.
The
Company ranked third amongst private players for FY 2014 on an Individual WRP
basis with 13.8% market share. The Company demonstrated a strong performance in
the Group business with 30% growth over the previous year.
BRAND PERFORMANCE
The
Company has been one of the few brands in the life insurance industry, which
has successfully increased its brand awareness year on year. Almost eight years
ago, the Company embarked on the journey of building an emotional connect with
its customers through its philosophy “Sar Utha Ke Jiyo”.
As a
result of this sharply defined objective, the brand witnessed positive and
encouraging success on multiple fronts. With respect to brand health,
spontaneous awareness scores stood at an encouraging 68% while brand
consideration increased to 45% for 11M FY 2014.
With
an aim to be a digital first organisation, the Company built the 3rd largest
community on Facebook amongst Indian BFSI organisations and the brand’s Twitter
presence was acknowledged as being amongst the top ten globally (in the
Insurance Sector) by Visualbanking.com (London).
PR-led
brand metrics have also registered positive movement with the brand ranking 1st
in TV and 3rd in print in FY 2014 as per Eikona’s PR Track, as a part of TAM
Research. These achievements are a result of 360 degree efforts undertaken by
the brand throughout the year.
AWARDS AND ACCOLADES
The
Company continued to be recognised for superior technology, business processes
and customer communication and won several awards and accolades during the year
under review in various fields such as:
·
Business Quality
·
Finance
·
Human Resource
·
Leadership and Business Excellence
·
Marketing
·
Products
·
Technology
·
Training
COMPANY OUTLOOK
In FY
2014, the Company continued its focus on growing revenue and creating a profitable
book. The year saw the Company expand its distribution partnerships for
individual business, grow its group business, improve renewal premiums and
reduce expense ratios.
The
Company remains committed to long term strategic investments around diversifying
distribution, selling longer term and profitable products, need-based analysis,
improving customer experience at touch points, investing in technology,
skilling of people and maintaining low expense ratios. Collectively, these have
improved the organization health in a difficult operating environment and have
positioned it well to take advantage of any improvement in the market
scenarios.
In the
coming year, the Company has identified the following key areas of focus.
NOTE: NO CHARGES EXIST FOR COMPANY
CHARGES
|
ENTITY |
PERSON |
COMPETENT
AUTHORITY |
REGULATORY
CHARGES |
REGULATORY ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED |
IRDA |
CHANGED TERMS AND CONDITIONS OF APPROVED VERSIONS OF PRODUCTS WITHOUT PRIOR APPROVAL FROM IRDA |
CENSURED/WARNED AND
DIRECTED TO BE DILIGENT IN COMPLYING WITH ALL THE ACTS, REGULATIONS ETC. |
||
|
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED |
IRDA |
ISSUED AND SENT
CHEQUE IN FAVOUR OF MASTER POLICY HOLDER IN CASE OF DEATH CLAIMS |
IMPOSED PENALTY
RS.14.700 MILLIONS |
BALANCE SHEET AS AT JUNE 30TH, 2014
(Rs.
In Millions)
|
SOURCES OF FUNDS |
30.06.2014 |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
19948.801 |
|
2] Reserves & Surplus |
2616.969 |
|
3] Credit /[Debit] Fair Value Change Account |
169.938 |
|
Sub-Total |
22735.708 |
|
|
|
|
BORROWINGS |
-- |
|
POLICYHOLDERS’ FUNDS: |
|
|
Credit /[Debit] Fair Value Change Account |
1644.441 |
|
Policy Liabilities |
153667.139 |
|
Insurance Reserves |
-- |
|
Provision for Linked Liabilities |
301678.157 |
|
Add: fair value change |
67249.154 |
|
Provision for
Linked Liabilities |
368927.311 |
|
Funds for discontinued policies |
|
|
i) Discontinued on account of non-payment of premium |
19419.980 |
|
ii) Others |
194.145 |
|
Total Provision for
Linked Liabilities |
388541.436 |
|
|
|
|
Sub-Total |
543853.016 |
|
|
|
|
Funds for Future Appropriations |
1575.230 |
|
Funds for future appropriation – Provision for lapsed policies
unlikely to be revived |
681.402 |
|
|
|
|
TOTAL |
568845.356 |
|
|
|
|
APPLICATION OF
FUNDS |
|
|
INVESTMENTS |
|
|
Shareholders |
18932.075 |
|
Policyholders |
161158.164 |
|
Assets held to cover Linked Liabilities |
388541.436 |
|
LOANS |
465.064 |
|
FIXED ASSETS |
3475.927 |
|
CURRENT ASSETS |
|
|
Cash and Bank Balance |
1100.082 |
|
Advances and Other Assets |
8377.321 |
|
|
|
|
Sub-Total (A) |
9477.403 |
|
|
|
|
CURRENT LIABILITIES |
12952.784 |
|
PROVISIONS |
251.929 |
|
Sub-Total (B) |
13204.713 |
|
|
|
|
NET CURRENT
ASSETS (C) = (A-B) |
3727.310 |
|
|
|
|
MISCELLANEOUS EXPENDITURE (to the extent
not written off or adjusted) |
-- |
|
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT [Shareholders account] |
-- |
|
DEFICIT IN THE REVENUE ACCOUNT (Policyholders Account) |
-- |
|
|
|
|
TOTAL |
568845.356 |
FIXED ASSETS:
· Goodwill
· Intangible Assets (Computer Software)
· Land-Freehold
· Leasehold Improvements
· Buildings
· Furniture and Fittings
· Information Technology Equipment
· Vehicles
· Office Equipment
PRESS RELEASE:
HDFC STANDARD LIFE
INSURANCE COMPANY TO OFFER INSURANCE PLANS ONLINE
CHENNAI: HDFC Standard Life
Insurance Company will start offering most of its insurance plans
online
by the end of this financial year, a senior company official said here today.
"We are going to
offer child plans, retirement plans and other plans online by the end of this
financial year. As over 20 million people search for life insurance policies
through Internet, we would like to be there for them," Sanjay Tripathy,
Senior Executive Vice President (Marketing, Product,
Digital and e-Commerce), said.
Earlier, he also
launched the HDFC's new unit linked insurance policy (ULIP) 'Click2Invest'
which is available for purchase only online.
Noting that online sale
of life insurance policies is made mainly in the case of term insurance
plans, he said, "Of the Rs 300 crore sales of life insurance policies
online, around 33 per cent is ours."
The company's average premium
per policy on its term insurance plans is around Rs 12,000, he said.
Over 20 million people
did e-commerce last financial year in India and the number was expected to
touch 35 million in the current financial year and 80 million by 2015-16, he
said.
The Indian e-commerce
market was estimated at around USD 13 billion in 2013 and is likely to be at
USD 70 billion by 2020; and nearly 50 per cent of the new mobile phones will be
smartphones.
"So, by 2020
three-fourth of the life insurance policies sold will be influenced by digital
channels," Tripathy said.
HDFC's new ULIP was
first-of-its-kind plan that invests 100 per cent of the premium and only
charges fund management fee of 1.35 per cent and the risk premium for mortality
cover, he added.
STANDARD
LIFE MAY INCREASE ITS HOLDING IN HDFC LIFE TO ABOUT 35-36%
NEW
DELHI: HDFC Ltd, India's top mortgage lender, has begun negotiations to sell a
part of its stake to UK-based insurance giant Standard Life Plc in their life
insurance joint venture, moving lock-in-step with the government's moves to
increase the foreign investment limits in the sector.
Initial
discussions are centered on an outcome that could see HDFC Ltd, which owns a
72.37% stake in HDFC Life, pocket around Rs 4,500-5,000 crore from a sale-cumflotation
exercise that will also allow the foreign partner to increase its ownership in
the life insurance venture, two people familiar with the exercise told ET.
"The
two sides have already held one round of discussions and a second round is
scheduled in London. A high-level team led by (HDFC vice-chairman) Keki Mistry
will meet the senior management of Standard Life to decide the broad contours
of the deal," said one of the two people cited above.
The
second source said that the initial discussions involved Standard Life
increasing its holding in HDFC Life to about 35-36% from 26% now. HDFC Life
posted profits of Rs 725 crore in the fiscal year 2014 and had Assets Under
Management worth Rs 50,258 crore. HDFC, the first source said, was expecting an
equity value of around Rs 25,000 crore for the venture, assuming an embedded
value — a key valuation metric for insurance firms that takes into account the
number of policyholders and the premium it earned from them — of about Rs 7,000
crore and a multiple of three and a half times that, the first person said.
Representatives
of Standard Life and HDFC declined to specifically comment on the likelihood of
an impending transaction, which, if agreed soon, could be the precursor to many
similar deals in the sector where foreign firms have been long waiting to
increase their holdings in their Indian joint ventures.
"As
we are awaiting clarity on the details of the proposal we are not in a position
to offer any in-depth comment at this stage," said Steven Harley, senior
media manager at Standard Life in response to queries from ET. "We note
with interest the recent development and look forward to the detail emerging,
at which time we will consider our position and discuss the matter with our
joint venture partners."
A spokesperson
for HDFC Ltd said: "We would like to state that there has been no action
on this front".
HDFC
Life was among the first private insurers to be set up after the sector was
thrown open to the private sector in April 2000. In case the deal materlises,
HDFC Life would be the first insurance joint venture in which foreign partner
will have more than 26% ownership.
A
final valuation will be based on the recommendations of valuers that will be
appointed by both parties, the sources said, adding that the talks will also
acquire greater momentum immediately after Parliament approves the long pending
Insurance Laws (Amendment) Bill that will allow foreign firms to own up to 49%
of an Indian insurance company, up from 26% now.
HDFC
LIFE SEES 20X GROWTH IN ONLINE INSURANCE
BANGALORE:
HDFC Life is expected to double its revenue from its online insurance sales by 2016. The insurance provider is
seeing 10% of its new insurance business coming from the online sales in just
about two years.
"While the offline insurance
premiums have a renewal rate of about 70%, we are seeing over 95% renewals for
online insurance," said Subrat Mohanty, executive vice-president and head
of strategy and technology for HDFC Life. "Online revenue has grown 20
times to Rs 300 crore since 2012, when we started online sales."
For HDFC
Life, online channel is making insurance premium underwriting quicker, less prone to
error and higher renewals. For customers, online insurance comes 20-25% cheaper
as there is no broker involved in the transaction.
The ability to retain customers
for at least 8-10 years is crucial to profitability in the life insurance
business, especially as acquiring a customer is expensive.
In 2012,
HDFC Life decided to revamp its IT infrastructure and signed up TCS for a four-year Rs 120 crore contract
to revamp its technology infrastructure and develop online and mobile
offerings.
HDFC
Life, a joint venture between HDFC Bank and UK's Standard Life, is India's
largest private life insurer.
For its offline business, the company is facing resistance from agents, who
fear loss of business to the online channel. However, the insurer is trying to
convince agents to move online.
"Most
of the websites selling online insurance currently do not charge brokerage but
just a small commissionfor
passing on the lead," Mohanty said.
HDFC Life has 80,000 insurance
agents, with 11,000 on its internal payroll. "We are offering tablets to
about a third of our Salesforce so that insurance premium can be underwritten
on the same day and all data is validated online." The tablets are given
to the top performing agents as an incentive.
The
company is expected to launch a mobile app by October, which would allow
customers to buy insurance on mobile as well as get information about various product offerings from the company.
BUDGET 2014: INSURANCE FDI RAISED TO 49%; $3 BN COULD FLOW INTO INDIA
MUMBAI: As much as $3 billion
could flow into India in the form of FDI in insurance, thanks to the increase
in foreign ownership in companies in the sector to 49% from 26%.
Scotland's Standard Life,
France's AXA Group,
UK's Lombard, Allianz of France and Italy's Generali could be among those looking to cash
in.
"We
would expect foreign partners bringing money within six months," said
Amitabh Chaudhry, MD & CEO,HDFC Life,
which has a joint venture with Standard Life. Most foreign companies already
have an enabling provision in their agreement with Indian partners to raise
their stake to 49%.
State-run
banks, which have a wide distribution network, would benefit from the move
as international companies may pay a premium to exploit their franchise. SBI, which
has a tie-up with Cardiff for lifeinsurance and IAG for general insurance, and ICICI Bank,
which partners Lombard and Prudential, may be the gainers. It also opens up
doors for L&T General Insurance and Reliance General to sell stakes to
overseas companies.
But there
could be a dampener in the form of voting rights.
"Voting right limited to 26% could be a dampener," said Girish
Kulkarni, MD & CEO of Star Union Dai-ichi Life Insurance.
FDI will
enable insurance to reach rural markets. It is
estimated that less than 5% Indians have insurance cover. "This move will
facilitate insurers' move to the hinterland," said Rakesh Jain, CEO of Reliance General
Insurance.
HDFC, BIRLA SUN, RELIANCE LIFE TOP IRDA'S UNFAIR BUSINESS CHART
EW DELHI: HDFC Standard Life, Birla Sun Life andReliance Life top the chart of unfair business
practices among two dozen life insurance companies, as per the Irda data
submitted to the Finance Ministry.
According to the data on 'Unfair
Business Practices', compiled by the insurance regulator Irda, 10,819
complaints were filed by consumers against HDFC Standard life during April
1-July 20, 2014.
These complaints relate to
alleged "selling of (life insurance) policies by making false lucrative offers".
The data further revealed that
6,185 complaints were received against Birla Sun Life, followed by 6,168
against Reliance Life during the period.
The track
record of country's largest insurer LIC was much better as compared to private
counterparts. There were only 763 complaints against Life Insurance Corporation
(LIC), though it has over 80 per cent of market share.
Among the major private players,
ICICI Prudential Life has a comparatively better record compared to its peers
with 3,649 complaints.
The others which figure
prominently in the list of unfair business practices include Bajaj Allianz
(5,441), Max New York Life (2,615) and SBI Life (2,190).
There has been an increase in the
number of complaints against insurance companies, especially private insurance
companies, as per the Irda data.
The number of complaints which
were one lakh during 2011-12, rose to 1.68 lakh in 2012-13 and further to 2.11
lakh in 2013-14.
In the current financial year, a
total of 48,721 complaints have been filed by customers against insurance
companies for allegedly adopting unfair business practices.
Irda maintains the data of unfair
business practices in the integrated grievance management system, which is the
depository of industry wide customer grievances.
HDFC BANK AND UNITED BANK OF INDIA PLAN TO TAP THE EQUITY MARKETS TO
RAISE FUNDS
MUMBAI:
India's second largest private bank-HDFC Bank and state-owned United Bank of India are planning to tap theequity markets to raise funds to boost capital base and lending with
expectations of a gradual rebound in growth.
HDFC
Bank, plans to raise Rs 10,000 crore after theForeign Investment Promotion
Board or FIPB quashed its proposal to increase its
foreign portfolio investment limit.
The board
of Kolkata-based United Bank, which is battling a rising pile of bad loans,
will meet on June 18, to seek approval for raising about Rs 1,300 crore by
selling shares to ramp up its capital base.
HDFC Bank may go in for such a share sale in the
next three months which would increase the bank's share capital and enable
foreign investor participation.
"There is pent up demand for
the stock from foreign investors. The issue of fresh shares would enable
foreign investors participate in the stock. This would also help increase
volume and boost stock price,'' said a investment banker who did not wish to be
quoted.
"HDFC
Ltd to maintain holding of over 20% in the bank would have to pump in about Rs
2,400 crore. The details of the issue are being worked on. The lender faces the risk of reduction in weightage at MSCI
India Index, which would result in overseas investors trimming their holdings
in the stock. They would have to come out with a fresh sale in a span of three
months," the banker said.
The
bank's board at its meeting on May 19 decided to seek an enabling approval of
the shareholders to raise the equity share capital of the bank by up to an
aggregate sum of Rs 10,000 crore including the share premium amount, HDFC Bank said in a BSE
filing.
The RBI rejecting its request to
permit the lender to raise existing foreign investment levels any further in
2013 had come as a blow to the bank. The central bank was of the view that the
private sector lender was close to the foreign investment capital of 74%. It is
treating the promoter shareholding in HDFC Bank as foreign capital.
HDFC Bank had approached FIPB in
the latter half of 2013 to increase the foreign holding in the bank to 67.55%
from 49%.
The
approval to raise foreign holding the government thought would lead to increase in foreign holding over
74%.
All put together — promoter
stake, FII and ADR holding — foreign investment in HDFC Bank comes in at 74%.
HDFC,
which is 75.71% owned by FIIs, and associate
companies hold 22.64% cent in HDFC Bank. Its investment in HDFC Bank is also
calculated in the foreign holding.
United Bank of India plans to mop up Rs 1,000
crore through a public or rights issue or qualified institutional
placement, the bank said in a notification to stock exchanges. It may collect
the rest- Rs 300 crore by way of allotting preferential shares to the government
and the Life Insurance
Corporation of India
(LIC).
The
change of guard in New Delhi has also come as a boost to equity markets.
"I think, a lot of people would come to the market for fund raising in
next 6 months. Since the stock market is doing well and we expect credit
growth to pick up, a lot of financial services companies will flock to the
equity markets to raise capital," said Rajeev Suneja, partner and head
financial services transaction advisory services, EY India.
"The
equity markets are doing well this in itself will help companies raise funds
and deleverage," said Sunil Kaushal, regional chief executive officer for
India and South Asia at Standard Chartered Bank.Yes
Bank, the youngest private sector bank is also planning to raise Rs 3,000 crore
to support growth and expansion.
The
programme — either through a preferential allotment,
private placement or sale of shares to qualified institutional buyers — will be
launched depending on market conditions.
"We had taken permission
from our shareholders last year for issuance of $500-million equity and that is
the only permission available with us at this moment," had said Rajat
Monga, chief financial officer and senior group president (financial markets)
at its annual result media briefing.
Other
private sector banking majors like ICICI Bank and Axis Bank had raised capital last year.
IRDA DIRECTS HDFC STANDARD LIFE TO COMPLY WITH ORDER
India's insurance regulator IRDA
Friday rejected a plea by HDFC Standard Life insurance company and ordered the
firm to comply with directions given in September 2013 to reopen all settled
death claims and pay an increased amount under two of its policies.
India's
insurance regulator IRDA on Friday rejected a plea by HDFC Standard Life
insurance company and ordered the firm to comply with directions given in
September 2013 to reopen all settled death claims and pay an increased amount
under two of its policies.
Referring
to HDFC Standard Life's representation December 6, 2013, T.S. Vijayan, chairman
of the Insurance Regulatory and Development Authority (IRDA), directed the
company to comply with the earlier order.
"On
examining the matter, the authority did not find any new information or
mitigating facts which were not already taken into consideration while issuing
such directions and therefore, the representation submitted could not be
considered," Vijayan said in his letter.
In
September, the IRDA ordered HDFC Standard Life to reopen all settled death
claims and pay an increased amount under two of its policies and also to raise
the sum assured for other policy holders.
The
IRDA found HDFC Standard Life discriminating between two sets of policyholders
- those who had bought the HDFC Life Sampoornam Samridhi Plan and HDFC Classic
Assure Plan before March 31, 2012, and those who bought the policy after April
1, 2012.
According
to the regulator, the private life insurer had offered higher benefit to those
who had bought the two policies after April 1, 2012 while the premium outgo for
both remained the same.
The
IRDA said HDFC Standard Life altered the insurance value through an endorsement
assuring additional death benefits which is equivalent to higher of 10 times
annualised premium or the death benefit as defined in the policy under two of
its products for those who bought the policies on or after April 1, 2012.
For
those who bought the products prior to that date, the death benefits payable
were the basic sum assured, reversionary bonus plus interim and terminal
bonuses, if any. The company debited to its shareholders' account the
additional premium amount for the higher cover for those who bought the
policies on or after April 1, 2012.
The
IRDA did not agree with the insurer's contention that the additional benefit
was offered to those who bought the policies on or after April 1, 2012, as the
rules relating to tax exemption were changed.
Terming
the insurer's action as discriminatory between the two sets of policy holders,
the IRDA directed the company to reopen claims on policies prior to April 1,
2012, (from the date of launch of two policies) and settle the additional
amount within 60 days of the order.
Reiterating
the rationale for IRDA's decision, Vijayan told IANS last year: "All the
life insurers faced the same problem. However, nobody had a similar issue
except HDFC Standard Life. The company violated the regulations and the
direction was accordingly given."
Industry
experts told IANS that the business of life insurers was to transact life
insurance business and not turn tax consultants.
HDFC Standard Life is a joint
venture between Housing Development Finance Corporation Ltd and Standard Life
plc, Britain.
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 records 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.61.25 |
|
|
1 |
Rs.98.68 |
|
Euro |
1 |
Rs.77.60 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
51 |
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.