MIRA INFORM REPORT
|
Report No. : |
307992 |
|
Report Date : |
14.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
SBI LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Natraj M.V. Road and Western Express Highway, Junction, Andheri
(East), Mumbai – 400069, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
11.10.2000 |
|
|
|
|
Com. Reg. No.: |
11-129113 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.10000.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH2000PLC129113 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS27599F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAFCS2530P |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the
business of Life Insurance and Annuity. |
|
|
|
|
No. of Employees
: |
9114 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a joint venture between State Bank of India and BNP Paribas
Cardiff. It is an established company having excellent track record. Fundamentals are strong. Promoters of the subject are strong and reliable.
It can be regarded as a promising business partner in medium to long term. Trade relations are fair. Business is active. Payments are reported to
be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Financial strength rating=AAA |
|
Rating Explanation |
Have the highest degree of safety and carry
lowest credit risk. |
|
Date |
06.10.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
Management Non-Cooperative (CONTACT NO.: 91-22-66456210)
LOCATIONS
|
Registered/ Corporate Office 1 : |
Natraj M.V. Road and Western Express Highway, Junction, Andheri
(East), Mumbai-400069, Maharashtra, India
|
|
Tel. No.: |
91-22-61911000 |
|
Fax No.: |
91-22-61910012 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Central Processing Centre, Kapas Bhavan, Plot
3A, Sector - 10, CBD Belapur, Navi Mumbai – 400614, Mumbai, India |
|
Tel. No.: |
91-22- 66456210 |
|
E-Mail : |
|
|
|
|
|
Corporate Office 2 : |
2nd Floor, Turner Morrison Building, G. N. Vaidya Marg, Fort, Mumbai - 400023, Maharashtra, India |
|
Tel. No.: |
91-22-66392000 |
|
Fax No.: |
91-22-66392099 |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Smt. Arundhati Bhattacharya Chairman |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pierre de Portier de Villeneuve |
|
Designation : |
Non–Executive Director |
|
Name : |
Mr. Atanu Sen |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Aravamudan Krishna Kumar |
|
Designation : |
Non-Executive Director |
|
Address : |
D-1, Kinnelan Towers, Nepeansea Road, Mumbai - 400006, Maharashtra,
India |
|
Date of Birth/Age : |
18.11.1954 |
|
Date of Appointment : |
04.05.2011 |
|
DIN No.: |
00871792 |
|
|
|
|
Name : |
Mr. S. Vishvanathan |
|
Designation : |
Non–Executive Director |
|
|
|
|
Name : |
Mr. Gerard Yues Binet |
|
Designation : |
Non-Executive Director |
|
Address : |
19, Route De La Passerelle Le Vesinet – 781130, |
|
Date of Birth/Age : |
30.04.1953 |
|
Date of Appointment : |
14.06.2001 |
|
DIN No.: |
00066024 |
|
|
|
|
Name : |
Mr. Nilesh Shivji Vikamsey |
|
Designation : |
Independent Director |
|
Address : |
184, 18th Floor, Kalpataru Habitat, A Wing, Dr. S.S. Rao Road,
Mumbai - 400012, Maharashtra, India |
|
Date of Birth/Age : |
16.08.1964 |
|
Date of Appointment : |
12.04.2012 |
|
DIN No.: |
00031213 |
|
|
|
|
Name : |
Mr. Ravi Rambabu |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. K. M. Bhattacharya |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Raj Narain Bhardwaj |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
EXECUTIVE COMMITTEE
MEMBERS |
|
|
Name : |
Mr. Atanu Sen |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Vivien Berbigier |
|
Designation : |
Dy. CEO |
|
|
|
|
Name : |
Mr. Rajiv Gupta |
|
Designation : |
Executive Director - Marketing |
|
|
|
|
Name : |
Mr. Anand Pejawar |
|
Designation : |
Executive Director - Marketing |
|
|
|
|
Name : |
Mr. A. J. Bose |
|
Designation : |
Executive Director - Operations & IT |
|
|
|
|
Name : |
Mr. Sanjeev Pujari |
|
Designation : |
Appointed Actuary |
|
|
|
|
Name : |
Mr. Abhijit Gulanikar |
|
Designation : |
Chief Officer Investments |
|
|
|
|
Name : |
Mr. Bhaskar Jutti |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Mr. Ranjan Kumar Mishra |
|
Designation : |
Head - HR & Admin |
|
|
|
|
Name : |
Mr. Sangramjit Sarangi |
|
Designation : |
Head of Finance |
|
|
|
|
Name : |
Mr. Aniket Karandikar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Sarang Cheema |
|
Designation : |
Compliance Officer |
MAJOR SHAREHOLDERS
AS ON 31.03.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian - State Bank of India (Holding Company and its Nominees) |
740,000,000 |
74.00 |
|
Foreign - BNP Paribas Cardif |
260,000,000 |
26.00 |
|
|
|
|
|
Total |
1,000,000,000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the
business of Life Insurance and Annuity. |
|
|
|
|
Brand Name : |
‘SBI’ |
GENERAL INFORMATION
|
Suppliers : |
-- |
|
|
|
|
Customers : |
-- |
|
|
|
|
No. of Employees : |
9114 (Approximately) |
|
|
|
|
Bankers : |
· State Bank of India · BNP Paribas Bank · HDFC Bank Limited · State Bank of Bikaner and Jaipur · State Bank of Travancore · State Bank Hyderabad · State Bank of Mysore · State Bank of Patiala · City Union Bank · Karur Vysya Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors 1 : |
|
|
Name : |
Karnavat and Company Chartered Accountants |
|
|
|
|
Statutory Auditors 2 : |
|
|
Name : |
L. S. Nalwaya and Company Chartered Accountants |
|
|
|
|
Membership : |
-- |
|
|
|
|
Holding Company : |
State Bank of India |
|
|
|
|
Joint Venture
Partner : |
BNP Paribas Cardif |
|
|
|
|
Holding Company of
Joint Venture Partner : |
BNP Paribas |
|
|
|
|
Fellow Subsidiaries
: |
· State Bank of Bikaner & Jaipur · State Bank of Hyderabad · State Bank of Mysore · State Bank of Patiala · State Bank of Travancore · SBI Capital Markets Limited · SBI DFHI Limited · SBI Funds Management Private Limited · SBI CAPS Ventures Limited · SBI CAP Trustee Company Limited · SBI CAP (UK) Limited · SBI CAP (Singapore) Limited · SBI Cards & Payment Services Private Limited · SBI Payment Services Private Limited · SBI Global Factors Limited · SBICAP Securities Limited · SBI Pension Funds Private Limited · SBI General Insurance Co. Limited · SBI Funds Management (International) Private Limited · SBI Mutual Fund Trustee Company Private Limited · SBI-SG Global Securities Services Private Limited · State Bank of India (California) · State Bank of India (Canada) · SBI (Mauritius) Limited · Commercial Bank of India LLC, Moscow · PT Bank SBI Indonesia · Nepal SBI Bank Limited · State Bank of India (Botswana) Limited (w.e.f. June 14, 2013) |
|
|
|
|
Significant Influence
or Controlling Enterprise : |
· SBI Life Insurance Company Limited Employee PF Trust · SBI Life Insurance Company Limited Employees Gratuity Fund |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,000,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 20000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,000,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 10000.000
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 |
10000.000 |
10000.000 |
10000.000 |
|
|
2] Reserves & Surplus |
23061.274 |
16829.881 |
11189.297 |
|
|
3] Credit/(Debit) Fair Value Change Account |
362.043 |
270.596 |
367.191 |
|
|
SUB TOTAL |
33423.317 |
27100.477 |
21556.488 |
|
|
|
|
|
|
|
|
BORROWING |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
POLICYHOLDERS' FUNDS |
|
|
|
|
|
Credit / Debit Fair Value Change Account |
2618.926 |
829.014 |
111.091 |
|
|
Policy Liabilities |
267950.403 |
229781.427 |
182815.481 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Provision For Linked Liabilities |
242792.270 |
247858.894 |
255747.474 |
|
|
Add: Fair Value Change (Linked) |
34770.525 |
13919.891 |
7932.946 |
|
|
Add: Funds For Discontinued Policies |
|
|
|
|
|
(i) Discontinued on account of non-payment of premium |
8213.770 |
3450.057 |
706.379 |
|
|
(ii) Others |
121.929 |
31.347 |
7.476 |
|
|
Total Linked
Liabilities |
285898.494 |
265260.189 |
264394.275 |
|
|
Sub-Total |
556467.823 |
495870.630 |
447320.847 |
|
|
Funds for Future Appropriation - Linked |
74.263 |
218.411 |
287.268 |
|
|
Funds for Future Appropriation - Other |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
TOTAL |
589965.403 |
523189.518 |
469164.603 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENTS |
|
|
|
|
|
Shareholders' |
23534.637 |
18115.872 |
13608.077 |
|
|
Policyholders' |
253238.785 |
216878.561 |
169486.611 |
|
|
|
|
|
|
|
|
Assets Held to Cover Linked Liabilities |
285972.756 |
265478.600 |
264681.542 |
|
|
Loans |
6.380 |
1.729 |
-- |
|
|
Fixed assets |
2861.065 |
2753.671 |
2652.156 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Cash & Bank Balances |
25422.912
|
21531.856
|
23034.030
|
|
|
Advances and Other Assets |
15123.750
|
12695.051
|
8941.581
|
|
Total
Current Assets |
40546.662
|
34226.907
|
31975.611
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.000
|
2918.450
|
2572.431
|
|
|
Other Current Liabilities |
14727.124
|
10622.646
|
9963.944
|
|
|
Provisions |
1467.757
|
724.726
|
703.019
|
|
Total
Current Liabilities |
16194.881
|
14265.822
|
13239.394
|
|
|
Net Current Assets |
24351.780
|
19961.085
|
18736.217
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
589965.403 |
523189.518 |
469164.603 |
|
REVENUE ACCOUNT
FOR THE YEAR ENDED MARCH 31, 2014
POLICYHOLDER'S
ACCOUNT (TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
|
|
Premiums earned
- Net |
|
|
|
|
|
|
(a) Premium |
107386.027 |
104500.329 |
131337.384 |
|
|
|
(b) (Reinsurance ceded) |
(814.976) |
(679.191) |
(528.974) |
|
|
|
Total |
106571.051 |
103821.138 |
130808.410 |
|
|
|
|
|
|
|
|
|
|
Income from
Investments |
|
|
|
|
|
|
(a) Interest, Dividends & Rent - Net of Amortization (Gross for period ended March 31, 2014 Rs.28854.899 Millions, previous year ended March 31, 2013 Rs.23377.897 Millions) |
30374.323 |
26464.519 |
21214.478 |
|
|
|
(b) Profit on sale / redemption of investments |
24536.759 |
23580.644 |
12973.730 |
|
|
|
(c) (Loss on sale / redemption of investments) |
(12221.725) |
(12292.612) |
(14385.122) |
|
|
|
(d) Transfer /Gain on revaluation / change in Fair value* |
20850.634 |
5986.945 |
(13696.579) |
|
|
|
(e) Appropriation/ expropriation adjustment account |
0.000 |
0.000 |
(275.264) |
|
|
|
Other Income |
|
|
|
|
|
|
(a) Contribution from the Shareholders' A/c |
3070.844 |
2637.505 |
1419.856 |
|
|
|
(b) Others |
0.000 |
0.000 |
0.000 |
|
|
|
- Miscellaneous Income |
480.068 |
241.939 |
96.892 |
|
|
|
|
67090.903 |
46618.940 |
7347.991 |
|
|
|
|
|
|
|
|
|
|
Total (A) |
173661.954 |
150440.078 |
138156.401 |
|
|
|
|
|
|
|
|
|
|
Commission |
5561.846 |
5114.134 |
5183.637 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses related to Insurance Business |
12227.265 |
11510.498 |
10239.285 |
|
|
|
Provision For Doubtful Debts |
0.164 |
10.957 |
1.007 |
|
|
|
Bad Debts Written Off |
3.376 |
0.652 |
1.408 |
|
|
|
Provision for
Tax |
|
|
|
|
|
|
(a) Income Tax |
898.859 |
596.587 |
483.200 |
|
|
|
|
|
|
|
|
|
|
Provisions
(other than taxation) |
|
|
|
|
|
|
(a) For diminution in the value of investments (net) |
(22.176) |
143.301 |
(47.780) |
|
|
|
|
|
|
|
|
|
|
Total (B) |
18669.334 |
17376.129 |
15860.757 |
|
|
|
|
|
|
|
|
|
|
Benefits Paid (Net) |
87918.143 |
77910.132 |
47261.103 |
|
|
|
Interim and Terminal Bonuses Paid |
15.137 |
6.861 |
2.841 |
|
|
|
Change in
valuation of liability against life policies |
|
|
|
|
|
|
(a) Gross * * |
58897.333 |
47911.850 |
69273.368 |
|
|
|
(b) (Amount ceded in Re-insurance) |
(90.051) |
(79.990) |
(96.125) |
|
|
|
|
|
|
|
|
|
|
Total (C) |
146740.562 |
125748.853 |
116441.188 |
|
|
|
|
|
|
|
|
|
|
SURPLUS/
(DEFICIT ) (D) = (A) - (B) - (C) |
8252.058 |
7315.096 |
5854.456 |
|
|
|
|
|
|
|
|
|
|
Balance of
previous year |
218.411 |
287.269 |
402.177 |
|
|
|
Balance available for appropriation |
8470.469 |
7602.365 |
6256.633 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Shareholders' Account |
8396.207 |
7383.954 |
5969.365 |
|
|
|
Balance being Funds for Future Appropriations |
74.263 |
218.411 |
287.269 |
|
|
Total (D) |
8252.058 |
7315.096 |
5854.456 |
|
|
|
|
|
|
|
|
|
|
Details of Total
Surplus |
|
|
|
|
|
|
a) Interim & Terminal Bonuses Paid |
15.137 |
6.861 |
2.841 |
|
|
|
b) Allocation of bonus to policyholders |
3184.007 |
2185.335 |
1453.973 |
|
|
|
c) Surplus shown in the revenue account |
8252.058 |
7315.096 |
5854.456 |
|
|
|
Total Surplus: [(a)
+ (b) + (c )] |
11451.203 |
9507.292 |
7311.270 |
|
* Represents the deemed realised gain as per norms specified by the Authority
** Represents Mathematical Reserves after allocation of bonus
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2014
SHAREHOLDERS'
ACCOUNT (NON-TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
Amount
Transferred From Policyholder Account (Technical Account) |
8396.207 |
7383.954 |
5969.365 |
|
|
Income from Investments |
|
|
|
|
|
(a) Interest, Dividend & Rent - Net of Amortization (Gross for year ended March 31, 2014 Rs.1785.736 Millions, previous year ended March 31, 2013 Rs.1333.087 Millions) |
1837.244 |
1367.706 |
891.188 |
|
|
(b) Profit on sale / redemption of investments |
207.967 |
176.124 |
83.321 |
|
|
(c) (Loss on sale / redemption of investments) |
(23.402) |
(38.635) |
(14.546) |
|
|
Other Income |
73.552 |
65.510 |
64.859 |
|
|
|
|
|
|
|
|
TOTAL (A) |
10491.568 |
8954.659 |
6994.187 |
|
|
|
|
|
|
|
|
Expenses other
than those directly related to the insurance |
|
|
|
|
|
(a) Rates and Taxes |
0.000 |
0.000 |
0.000 |
|
|
(b) Directors' Sitting Fees |
0.875 |
0.555 |
0.140 |
|
|
(c) Board Meeting Related Expenses |
6.746 |
2.696 |
1.692 |
|
|
(d) Depreciation |
15.803 |
14.110 |
13.551 |
|
|
(e) Other Expenses |
6.395 |
57.120 |
7.924 |
|
|
(f) Stamp duty on issue of shares |
0.000 |
0.000 |
0.000 |
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
|
Provisions
(Other than taxation) |
|
|
|
|
|
(a) Contribution to the Policyholders' Fund |
3070.844 |
2637.505 |
1419.856 |
|
|
(b) For diminution in the value of investment (net) |
(10.437) |
20.964 |
(7.190) |
|
|
|
|
|
|
|
|
Total (B) |
3090.226 |
2732.950 |
1435.973 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
7401.342 |
6221.709 |
5558.214 |
|
|
Provision for Taxation |
|
|
|
|
|
(a) Income Tax |
0.000 |
0.000 |
0.000 |
|
|
PROFIT / (LOSS)
AFTER TAX |
7401.342 |
6221.709 |
5558.214 |
|
|
|
|
|
|
|
|
(a) Balance at the beginning of the period/year |
16829.881 |
11189.297 |
6212.183 |
|
|
(b) Interim dividend during the period/year |
1000.000 |
500.000 |
0.000 |
|
|
(c) Proposed final dividend |
0.000 |
0.000 |
500.000 |
|
|
(d) Dividend distribution tax |
169.950 |
81.125 |
81.100 |
|
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Profit / (Loss) carried to the Balance Sheet |
23061.274 |
16829.881 |
11189.297 |
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.40 |
6.22 |
5.56 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS ARE 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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
CHANGE OF ADDRESS:
The Registered Office of the company has been shifted from State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai – 400021, Maharashtra, India to the present address w.e.f.25.04.2011.
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date: 06.12.2013 |
|
Lodging No: ITXAL/2063/2013 Filing
Date: 06.12.2013 Reg. No.: ITXA/62/2014 Reg. Date: 17.01.2014 |
|
Petitioner: COMMISSIONER OF INCOME- MUMBAI Respondent: SBI LIFE INSURANCE
COMPANY LIMITED Petn. Adv : P.C. CHHOTARAY (0) District: MUMBAI |
|
Bench: DIVISION Status: Pre-Admission
Category: TAX APPEALS Next Date: 27.01.2014 Stage: Coram: ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
|
Act: Income Tax Act, 1961 UNDER SECTION: 260 A |
ECONOMY OVERVIEW
The global economic
environment has broadly strengthened, and is likely to improve further, with
much of the growth impetus emanating from advanced economies. The outlook for
the world economy is positive with 3.5% growth forecast for 2014.
In 2013, India
surpassed Japan to become world’s third largest economy after US and China.
Performance of advanced economies continues to weigh on India’s growth story.
On the whole, the economy is expected to be more stable today than what it was
two years ago, with the rising quarterly growth rate, the steady exchange rate,
higher exports and the unblocking of hundreds of projects.
The Indian economy
is now on the threshold of a major transformation, with expectations of policy
initiatives by the newly elected Central Government. The economy is on the road
to modest recovery with cautiously positive business sentiments, improved
consumer confidence and more controlled inflation.
The sectors which
were significantly impacted by the crisis and slowdown in the economy are now
showing definite signs of improvement. The challenge for maintaining
disinflationary momentum over the medium term, however, remains on the horizon.
A moderate recovery is likely to set in 2014-15 and real GDP may grow by 5.3%
to 5.5%.
INSURANCE INDUSTRY
The Indian
Insurance Industry has undergone transformational changes with the
liberalization of the Insurance Sector. Over the past four years the Indian
insurance industry was in a state of flux as it was hit by several headwinds -
regulatory shift, deteriorating distribution structure, weak macro environment
and declining savings rate. However, most of these issues are now behind us and
the industry is on the verge of a turnaround. With ongoing changes in the
regulations of the life insurance industry, there have been increasing product
and operational innovation. These regulatory prescriptions have been directed
towards improving customer satisfaction through rationalization of commission
structure for brokers and agents, reduction in cost of premium, control over
expenditure and protecting the interest of the customers.
In FY 2014-15,
changes that will occur and the challenges and prospects that they will create
will require insurers to determine how to achieve profitable growth and
strategize to remain viable. Insurers will need swift decision making and
innovative strategies to pursue the various opportunities in the country. With
IRDA making regulatory prescription on wide range of products, we expect some
regulatory stability, at least on the product structuring side. Many insurers
have changed their business models to adapt to the business changes in the last
few years. SBI Life has focused more on retail business as compared to group
and single premium based business for better sustainability and stability.
AWARDS AND RECOGNITION
Awards usually
mirror the trust and goodwill amongst consumers and opinion leaders for the
company and recognize the hard work and sustainable initiatives being implemented
by the employees to deliver growth and delight customers and shareholders.
It is my pleasure
to inform you that SBI Life has been ranked as the “Most Trusted Private Life
Insurance Brand, 2013” for three consecutive years, by the Economic Times,
Brand Equity and Nielsen Survey. Along with this the company has also bagged
the following awards:
Won the ‘Global
Performance Excellence Award 2013’ by Asia Pacific Quality Organization (APQO);
Awarded at BFSI (Banking Financial Services and Insurance) 2014 Awards for ‘The
Most Admired Life Insurance Company in the Private Sector’ and ‘The Best Life
Insurance Company in the Private Sector’;
Won ‘Under-served Market Penetration Award 2013’ (Private Sector) and
‘Claims Service Company of the Year Award 2013’ (Private Sector) by the Indian
Insurance Awards 2013;
Won ‘Communication
Excellence Award 2013’ at 4th CMO Asia Awards;
Won ‘Digital
Inclusion Skoch Awards 2013’ for the project - Enabling partners to collect premium
through Electronic Fund Transfer - Cash & Direct Debit by Skoch Group;
‘Recognized amongst Top-100 Great Places to Work for 2014’, for the second
consecutive year in a study conducted by Great Place to Work Institute;
Awarded at World
HRD Congress for ‘Dream Company to Work for 2014 in Private Insurance sector,
also ranked 4th as the ‘Dream Employer of the Year 2014’;
Awarded with
‘Employer Branding Award 2014’ for Talent Management by World HRD Congress;
Received ‘ISO
27001 Certification for Information Security Management System’ (ISMS);
Received ‘ISO 9001:2008 Certification for Quality Management Systems for
Planning, Designing and Developing Training Programs’;
INSURANCE INDUSTRY IN INDIA
The macroeconomic challenges facing life insurers in India have intensified in the last six months, in particular due to the weakening of the rupee, tightening of the monetary policy to stem capital outflows and fiscal pressures due to lower revenue and higher expenditure than planned. These macro-economic challenges as well as certain industry specific issues continue to impinge on life insurers’ ability to grow their businesses in India in the short term. The last few months have also seen companies laying greater emphasis on maintaining renewal premium volumes and boosting persistency as they begin to start focusing on servicing existing business and counter the long standing issues of high lapse rates in the industry.
Insurance penetration in India has fallen for the second time after the sector was opened for private players. The Insurance Regulatory and Development Authority (IRDA), in its annual report for 2012-13, said insurance penetration stood at 3.96% (life and non-life), while insurance density stood at $53.2 for 2012. The measure of insurance penetration and density reflects the level of development of the sector. Insurance penetration stood at 3.96% of gross domestic product in 2012, down from 4.10% in 2011. Similarly, insurance density fell $53.2 (life and non-life) in 2012 compared to $59 in 2011. This indicates that in the past three years, the growth in insurance premium is lower than the growth in national GDP.
New regulations enforced by the insurance regulator effective September 2010, are partly responsible for curbing the scope of Unit Linked Insurance Plans (ULIPs). With the introduction of Linked and Non-linked product regulations in February, 2013 IRDA has brought in Variable Insurance products, cap on charges in case of Variable Insurance Products and some other changes relating to commission, claims, investments etc.
The share of linked business is declining year after year. In distribution channel mix, Bancassurance channel is gaining more prominence due to its cost effectiveness and wide network availability. During the year, the industry strengthened its focus towards enhancing professional delivery of products and services, customer satisfaction and operational efficiency. The disparity between the current penetration level and future penetration level makes the Indian insurance market a lucrative opportunity for investors
In financial year 2013-14, the industry has witnessed a growth of 11.57% in new business premium collection. With low insurance penetration as compared to the large Indian population base, there is tremendous scope for the life insurers to capitalize on.
PERFORMANCE
Continuing its
track record of sustainable growth, the Company has posted a record profit of H
740 crores (Rs.89.610 million), during the financial year ending March 31, 2014
- an increase of 19% over the last financial year. Operational efficiency has
been the key driver of Company’s profitability. The Company is the market
leader amongst the private life insurers, in New Business Premium (NBP), for
the financial year 2013-14. T
he Company has built
its business upon the trust of millions of customers who avail of its products
and services through a distribution network of 762 branches, 9,114 employees
and 1,36,579 Insurance Advisors & CIFs.
The Company has
garnered a total Gross Written Premium (GWP) of Rs.107390.000 Millions
(Rs.1300.490 million) during the financial year 2013-14 and have added nearly
1.041 Millions new policies to its portfolio. The Company has retained its No.
1 position in terms of New Business Premium (NBP) with a NBP collection of
Rs.50660.000 Millions (Rs. 613.490 million) amongst private sector life
insurers. The Company has a private market share of 17%.
The Company
witnessed a sound growth of 14% in its Regular business NBP and a growth of 18%
in its individual new business measured on Annualized Premium Equivalent basis.
The Assets under
Management of the Company grew by 13% to Rs.584800.000 Millions (Rs. 7,081.92
million) as against Rs.519120.000 Millions (Rs. 6,286.53 million) at the end of
the previous financial year.
In view of the
Company’s performance in profitability, cash flows and considering its
financial position, an interim dividend was declared during the FY 2013-14 at
10% of equity share capital amounting to Rs.1170.000 Millions (Rs. 14.170
million) (including dividend distribution tax).
The strength of
the Company’s brand, multi-distribution model, higher agency productivity,
excellence in operational efficiency, low cost structure, optimum resource
utilization, etc. are amongst the few key drivers of SBI Life’s consistent
profitable growth.
Taking forward the
innovation in customer service, the Company has introduced few new products and
a number of online services which makes service delivery efficient, effective
and error free, besides being timely. We are looking forward to reaching out to
more number of customers with highest level of customer satisfaction.
AWARDS AND RECOGNITION
The Company has
won the ‘Global Performance Excellence Award (GPEA) 2013’ by Asia Pacific
Quality Organisation (APQO)’s under Large Service Organizations category.
Further, SBI Life
was ranked as the “Most Trusted Private Life Insurer, 2013” by The Economic
Times, Brand Equity and Nielsen Survey for the third successive year, besides
being awarded as ‘Best Life Insurance Provider 2013’ Runner Up by Outlook
Money.
SBI Life also won
the ‘Under-served Market Penetration Award 2013 (Private Sector)’ and ‘Claims
Service Company of the Year Award 2013 (Private Sector)’ by the Indian
Insurance Awards 2013 and was also awarded as the ‘Most Admired Life Insurance
Company in the Private Sector’ and won the ‘Best Life Insurance Company in the
Private Sector’ at the prestigious ‘BFSI (Banking Financial Services and
Insurance) Awards 2014’.
These awards are a testimony to SBI Life’s quality and commitment
towards customer centricity and professional excellence.
MANAGEMENT DISCUSSION AND ANALYSIS
MACRO-ECONOMIC ENVIRONMENT
The revitalization
of global economy continued during the calendar year 2013 and the global economy
ended the year on a better footing as compared to the start of the year. The
growth momentum is expected to be carried forward during the year 2014, with
much of the impetus spurred by advanced economies. The International Monetary
Fund forecasts that world output will grow 3.6% in 2014, compared to 2.9%
during 2013.
The Indian economy
underwent yet another challenging environment in 2013-14 driven by subdued
domestic growth, extreme volatility in exchange rate and a much higher than
expected spike in inflation rates. India’s GDP, according to the CSO (Central
Statistical Organization), is expected to improve moderately to 4.7% in FY 2014
against 4.5% growth in the previous year.
The recovery is
led by agriculture and external sector. Agricultural GDP, including allied
sector, is poised to grow by 4.7% in FY 2013-14, over three times higher than
1.4% in the previous year. On the external front, stable rupee and improvement
in the Current Account Deficit (CAD) from 4.8% of GDP in FY 2013 to 1.7% estimated
for FY 2014 are positive signs for the economy.
In April 2014, the
trade deficit narrowed sharply due to resumption of export growth after two
consecutive months of decline, and the ongoing shrinking of import demand.
Robust inflows of portfolio investment, supported by foreign direct investment
and external commercial borrowings, kept external financing conditions
comfortable and helped add to reserves.
The Repo rate
increases have pushed up the floor for rates and despite liquidity infusion by
RBI, short term interest rates have remained high. One of the consequences of
the slowdown and high inflation has been a contraction of financial savings of
households, with a preference for investment in assets like gold and real
estate.
High rates as well
as policy constraints adversely impacted investment, and in the subsequent two
years viz. 2011-12 and 2012-13, the growth rate slowed to 6.7% and 4.5%
respectively. However, it increased slightly to 4.9% in 2013-14. Nevertheless,
despite this slowdown, the compound annual growth rate (CAGR) for gross
domestic product (GDP) at factor cost, over the decade ending 2013-14 is 7.55%.
GROWTH OUTLOOK:
The Indian economy
is now on the threshold of a major transformation, with expectations of policy
initiatives by the newly elected Central Government. The economy is on the road
to modest recovery with cautiously positive business sentiments, improved
consumer confidence and more controlled inflation.
The sectors which
were significantly impacted by the crisis and slowdown in the economy are now
showing definite signs of improvement. The challenge for maintaining
disinflationary momentum over the medium term, however, remains on the horizon.
A moderate recovery is likely to set in 2014-15 and real GDP may grow by 5.3%
to 5.5%.
However, data
revisions for previous quarters and the consequent changes in base effects
impart uncertainty to the growth trajectory ahead. The pace of recovery,
nevertheless, is likely to be modest. It is likely to be supported by investment
activity picking up due to part resolution of stalled projects and improved
business and consumer confidence.
In March and April
2014, CPI headline inflation has risen on the back of a sharp increase in food
prices. Some of this price pressure will continue for the next month, but it is
largely seasonal. Moreover, CPI inflation excluding food and fuel has been
edging down. The risks to the central forecast of 8% CPI inflation by January
2015 remain broadly balanced.
Upside risks in
the form of a sub-normal/delayed monsoon on account of possible El Nino
effects, geo-political tensions and their impact on fuel prices, and
uncertainties surrounding the setting of administered prices appear at this
stage to be balanced by the possibility of stronger Government action on food
supply and better fiscal consolidation as well as the pass through of recent
exchange rate appreciation.
Accordingly, at
this juncture, it is appropriate to leave the policy rate unchanged, and to allow
the disinflationary effects of rate increases undertaken during September
2013-January 2014 to mitigate inflationary pressures in the economy.
The Reserve Bank
of India (RBI), on 28th January, 2014 increased the repo rate by 25 basis
points to 8%. The Reserve Bank’s policy stance will be firmly focused on
keeping the economy on a disinflationary glide path that is intended to hit 8%
CPI inflation by January 2015 and 6% by January 2016.
At the current
juncture, it is appropriate to hold the policy rate, while allowing the rate
increases undertaken during September 2013-January 2014 to work their way
through the economy. Furthermore, if inflation continues along the intended
glide path, further policy tightening in the near term is not anticipated at this
juncture.
LIFE INSURANCE INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
One of the premium
sectors showing upward growth is insurance. India is the fifth largest life
insurance market in the emerging insurance economies globally and is growing
year on year. With increasing competitiveness, the insurance players are
bringing out newer products to attract more customers.
The sector of life
insurance has witnessed immense growth in the past few years. Today, it is
second only to banks for mobilized savings and forms a formidable part of the
capital market.
The life insurance
sector controls more than H 34,000 crores of deployed capital, over H 18 lakh
crores of managed assets and investments in infrastructure exceeding H 2 lakh
crores. Another indication of the sector’s growth is its infrastructural
strength which comprises of over 10,000 branches, more than 21 lakh agents.
The Indian
insurance industry is acknowledged globally to have matured tremendously since
the opening up of the sector in 2001. The industry has witnessed phases of
rapid growth along with spans of growth moderation, intensifying competition
amongst competing companies, and significant expansion of the customer base.
There have also
been number of product innovations and operational innovations necessitated by
increased competition among the players. All this can be attributed to the
reforms leading to the relaxation of the policy regulations that ignited the
growth of the Indian insurance industry.
The level of
awareness and consciousness has risen among people for the need to insure them
and elevation in the levels of literacy, population and urbanization has added
fuel to the fire leading to ever growing demand of the insurance products.
Also, increasing
the FDI cap from current 26% to 49% is viewed as the next major factor to push
the insurance density and penetration higher. During this period, there has
been increase in penetration, increased coverage of lives, substantive growth
through multiple channels (agency, banc-assurance, broking, direct, corporate
agency amongst others) and increased competitiveness of the market (from 4
private players in FY 2000-01 to 23 private players in FY 2013-14). The
Authority has also issued guidelines in May 2013 permitting Indian insurers to
open foreign insurance company (including branch office) for life, general and
reinsurance business.
CURRENT INDUSTRY SCENARIO (FY 2013 - 2014):
Life insurance
industry went through a transition phase for the last few years that has changed
the dynamics and approach of the insurance players. It is facing a number of
challenges involving the macro-economic environment, consumer sentiment and
rapid regulatory change. As a consequence of these changes and the market
conditions, the industry players re-configured their business models, product
mix and distribution structures.
The share of Unit
Linked Insurance Plans (ULIPs) declined in the overall product mix. Also, with
regards to the distribution channel mix, share from Bancassurance channel
gained prominence due to its cost effectiveness. During the year, the industry
strengthened its focus towards enhancing professional delivery of products and
services to customers.
In financial year
2013-14, the industry has seen a growth of 11.80% in new business premium
collection. Insurers focusing on customers to remain invested for longer term
resulted in improved persistency ratio for the industry. With low insurance
penetration as compared to the large Indian population base, there is tremendous
scope for the life insurers to capitalize on.
PRODUCT STRATEGY AND PERFORMANCE
SBI Life strives
hard to provide systematic structured solutions to meet customer needs in the
life, health, and pension, online & micro-insurance segment. In depth understanding
of customer needs has helped in achieving high level of satisfaction by
offering wide range of products catering to different needs of customers. The
products are customer centric, simple to understand and have competitive
features.
Linked products
used to constitute a large share before the regulatory changes to linked
product structures which came into effect from September 01, 2010. As a result,
the contribution of linked business has come down to 40% in financial year
2013-14 as against 70% of FY 2010-2011.The Company has balanced its product mix
with increased contribution of traditional products from 30% of FY 2010-11 to
60% in FY 2013-14.
Pursuing to
achieve its goal towards long term viability, the Company has adopted a
strategy to concentrate on individual regular premium products as against
single premium products. As a result, the Company has witnessed a sound growth
of 14.5% in its Regular new business premium and a growth of 17.7% in its
individual new business measured on Annualized Premium Equivalent (APE) basis.
The Company shall
continue to pursue its approach on maintaining a balanced product mix strategy
keeping in mind interest of all stakeholders i.e. customers, distributors and
shareholders.
BRAND PERFORMANCE
The brand, ‘SBI’,
is a very strong, trusted, reliable and most preferred brand in India in
financial & banking services. ‘SBI Life’ is blessed with strong parentage
of State Bank of India (SBI) & BNP Paribas Cardif.
SBI Life
extensively leverages the State Bank Group relationship as a platform for
cross-selling insurance products along with its numerous banking product
packages such as housing loans and personal loans. SBI’s access to over 100
million accounts across the country provides a vibrant base for insurance penetration
across every region and economic strata in the country, thus ensuring true
financial inclusion. The Company not only taps the potential better but also
provides a safe and transparent insurance alternative to the public at large.
The brand ‘SBI Life’
has become one of the most recognized, trusted and preferred brand in India,
among private sector life insurance companies, which provides its stakeholders
a wide range of products & services with significant competitive advantage.
The testimony of the
same is Company’s No. 1 position amongst private life insurance players (NBP
base) on a year on year basis. Further, the Company’s performance has been
acclaimed & awarded by various esteemed organizations over the years.
The Company continued
its efforts towards maintaining its brand image in FY 2013-14. The Company has
been ranked as the ‘Most Trusted Private Life Insurance Brand, 2013’, for the
third consecutive year, by The Economic Times, Brand Equity & Nielsen
Survey. The Most Trusted Brands identifies Brands that possess that special
ingredient - the Consumer’s Trust.
Conducted by
Nielsen, it is among the largest research project of its kind in India. This
year, the research covered a sample of 7,200 people cutting across socio
economic classifications, age, income and geography. Profile of people
interviewed were chief wage earners, housewives, adult males and adult females.
The study looks at the Trust Score of each Brand which is determined by the
four attributes viz. Quality, value for money, recommendation to family and
friends and understanding consumer needs.
INDUSTRY AND COMPANY OUTLOOK
Financial Year
2013-14 was a year of stabilization for the Life Insurance Industry considering
the recently amended product guidelines by the Regulator and sluggish economic
growth. The Company and the industry as a whole witnessed a moderate and
competitive growth in the financial year 2013-14.
Financial Year
2014-15 brings with it renewed political optimism. It is expected that the new
government will implement effective and efficient policies and build a business
friendly environment. Further, with positive news on FDI the industry expects
to attract investment.
Further, from a
business point of view companies who have well-adjusted to the revised product
regulation will start reaping the benefits this year. It will also be a year to
focus on efficient use of multi-distribution strategies.
However, year on
year, SBI Life has maintained a significant lead over its closest competitors in
terms of New Business Premium collection.
In FY 2014-15, one
of the primary goals of the company is to further strengthen our highly
successful Bancassurance model such that the channel attains a visibly dominant
position in the new business portfolio. This is to be achieved by leveraging
State Bank of India’s and its Associate Banks’ widespread branch network and
equipping select branches with commensurate resources including manpower
support which would result in higher cross sell penetration.
Customer
centricity remains the mainstay. Various initiatives continue to gather steam
across the board, ranging from customer education initiatives, customer-connect
campaigns, revival campaigns to ISO certifications, product innovations etc.
NO CHARGES EXIST
FOR COMPANY.
FIXED ASSETS:
· Goodwill
· Intangibles – software
· Land – freehold
· Leasehold property
· Building on freehold land
· Furniture & fittings
· Information technology equipment
· Vehicles
· Office equipment
·
Leasehold improvements
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.95.78 |
|
Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILITY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
75 |
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.