|
Report No. : |
303731 |
|
Report Date : |
20.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
TATA AIA LIFE INSURANCE COMPANY LIMITED (w.e.f. 10.05.2012) |
|
|
|
|
Formerly Known
As : |
TATA AIG LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
14th Floor, Tower A, Peninsula Business Park, Senapati
Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
23.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128403 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.19535.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2000PLC128403 |
|
|
|
|
IEC No.: |
MUMT07312E |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A closely held public limited liability company. |
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|
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|
Line of Business
: |
Offering Life and General Insurance. |
|
|
|
|
No. of Employees
: |
Information declined by the management
|
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
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|
|
|
Litigation : |
Clear |
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Comments : |
Subject is a joint venture company by Tata Sons and AIA Group (AIA). It is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct. In view of strong parentage and capital base the company can be
considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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 (91-22-66479000)
LOCATIONS
|
Registered Office / Corporate Office : |
14th Floor, Tower A, Peninsula Business Park, Senapati Bapat
Marg, Lower Parel, Mumbai - 400013, Maharashtra, India |
|
Tel. No.: |
91-22-66498000 / 66479000 |
|
Fax No.: |
91-22-66550751 / 67024123 |
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E-Mail : |
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Website : |
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|
Branch Office : |
Located at
|
DIRECTORS
As on 25.08.2014
|
Name : |
Mr. Pratip Sanjay Kar |
|
Designation : |
Director |
|
Address : |
1050/1, |
|
Date of Birth/Age : |
23.12.1951 |
|
Qualification : |
MBA INSEAD, France |
|
Date of Appointment : |
14.01.2011 |
|
DIN No.: |
03346142 |
|
|
|
|
Name : |
Mr. Yiu Fai Chan |
|
Designation : |
Alternate director |
|
Address : |
Flat No. 44, Floor Blk B, Villalotto 18 Broad Wood Road, Happy Valley
10623848, Hong Kong |
|
Date of Birth/Age : |
14.12.1969 |
|
Date of Appointment : |
18.10.2013 |
|
DIN No.: |
06717341 |
|
|
|
|
Name : |
Mr. Gordon Timmins Watson |
|
Designation : |
Director |
|
Address : |
2/F, 31, Southbay Road, Repluse Bay Hong Kong |
|
Date of Birth/Age : |
25.12.1963 |
|
Date of Appointment : |
18.10.2013 |
|
DIN No.: |
06717344 |
|
|
|
|
Name : |
Mr. Ishaat R. Hussain |
|
Designation : |
Director |
|
Address : |
No. 222, 22nd Floor, ‘B’ Wing, NCPA Residental Complex, Sir
Dorab Tata Road, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Date of Birth/Age : |
02.09.1947 |
|
Qualification : |
Fellow of the Institute of Chartered Accounts in England and Wales,
Advanced Management Programme at the Harvard Business School |
|
Date of Appointment : |
23.08.2000 |
|
DIN No.: |
00027891 |
|
|
|
|
Name : |
Mr. Jaanki Ballabh |
|
Designation : |
Director |
|
Address : |
Flat No. 605, Versova Vinayak CHS, Near Versova Telephone Exchange, versova
Andheri (West), Mumbai – 400053, Maharashtra, India |
|
Date of Birth/Age : |
24.10.1942 |
|
Qualification : |
M.Com, Certified Associate of Indian Institute of Bankers (CAIB) |
|
Date of Appointment : |
20.04.2007 |
|
DIN No.: |
00011206 |
|
|
|
|
Name : |
Mr. Homi Rustam Khusrokhan |
|
Designation : |
Additional Director |
|
Address : |
02, Daisylea off Mtpleasant Road, Malabar Hill, Mumbai - 400006,
Maharashtra, India |
|
Date of Birth/Age : |
15.12.1943 |
|
Qualification : |
B.Com, F.C.A.M., Sc (Economics), Chartered Accountant |
|
Date of Appointment : |
14.10.2009 |
|
DIN No.: |
00005085 |
|
|
|
|
Name : |
Mr. Kishor Anant Chaukar |
|
Designation : |
Additional Director |
|
Address : |
Abhimanshree Housing Society Pashan Road, B-43, Near NCL, Pune –
411016, Maharashtra, India |
|
Date of Birth/Age : |
01.08.1947 |
|
Qualification : |
BA (Economics) Karnataka University, PGDBM – IIM –Ahmedabad, DEA-
Rural Economics University of Dijon France
|
|
Date of Appointment : |
14.10.2009 |
|
DIN No.: |
00033830 |
|
|
|
|
Name : |
Mr. Simeon Preston |
|
Designation : |
Director |
|
Address : |
3, Cornwalla Road, Singapore – 119665, Singapore |
|
Date of Birth/Age : |
15.04.1970 |
|
Qualification : |
MBA (Distinction), INSEAD, France, M. Sc in Transportation Policy and
Planning, University of New Castle upon Tyne, United Kingdom |
|
Date of Appointment : |
11.05.2011 |
|
DIN No.: |
03517416 |
KEY EXECUTIVES
|
Name : |
Mr. Swaminathan Iyer |
|
Designation : |
Secretary |
|
Address : |
Flat No.302, 3rd Floor, Cascade, B Wing, Vasant Oscar, LBS
Marg, Mulund (West), Mumbai – 400080, Maharashtra, India |
|
Date of Birth/Age : |
15.10.1967 |
|
Date of Appointment : |
20.12.2010 |
|
PAN No.: |
AACPI9939G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 25.08.2014
|
Names of Shareholders |
|
No. of Shares |
|
Tata sons Limited, India |
|
1445589400 |
|
Tata Sons Limited, Jt. Ishaat Hussain, India |
|
100 |
|
Tata Sons Limited, Jt. E. N. Kapadia, India |
|
100 |
|
Tata Sons Limited, Jt. F. N. Subedar, India |
|
100 |
|
Tata Sons Limited, Jt. Adil Charna |
|
100 |
|
American International Assurance Company
(Bermuda ) Limited, |
|
507910000 |
|
Tata Sons Limited, Jt. Farrokh Kavarana,
India |
|
100 |
|
Tata sons Limited, Jt. Kersi Bhagat, India |
|
100 |
|
Total |
|
1953500000 |
Equity Share Break up (Percentage of Total Equity)
As on 25.08.2014
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
26.00 |
|
Bodies corporate |
74.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Offering Life and General Insurance. |
|
|
|
|
Brand Names : |
Not Divulged |
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|
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|
Agencies Held : |
Not Divulged |
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|
|
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Exports : |
Not Divulged |
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|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management
|
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Bankers : |
|
|
Auditors : |
|
|
Name : |
Walker Chandiok and Company Chartered Accountants |
|
Address : |
16th Floor, Tower II, Indiabulls Financial Centre, S. B .Marg,
Elphistone (West), Mumbai – 400013, Maharashtra, India |
|
PAN No.: |
AAAFW4298E |
|
|
|
|
Name : |
A.F. Ferguson Associates Chartered Accountant |
|
Address : |
12, |
|
PAN No.: |
AAAFA1448A |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Associates/Subsidiaries : |
NIL |
CAPITAL STRUCTURE
As on 31.03.204
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000000 |
Equity Shares |
Rs.10/- each |
Rs.25000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1953500000 |
Equity Shares |
Rs.10/- each |
Rs.19535.000 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 |
|
|
|
|
Share Capital |
19535.000 |
19535.000 |
19535.000 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Credit / (Debit) Fair Value Change Account |
23.830 |
7.644 |
(3.288) |
|
SUB TOTAL |
19558.830 |
19542.644 |
19531.712 |
|
BORROWINGS |
|
|
|
|
|
|
|
|
|
Policyholders Fund |
|
|
|
|
Credit / (Debit) Fair Value Change Account |
1185.507 |
750.320 |
475.968 |
|
Policy Liabilities |
64423.429 |
53049.449 |
41898.519 |
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
Provision for lapsed policies – Non Unit |
175.634 |
566.357 |
440.743 |
|
Provision for linked Liabilities |
92029.445 |
93614.661 |
92356.427 |
|
Provision for Discontinued Policies on account on Non – Payment of
premium |
3182.146 |
1735.736 |
340.509 |
|
Provision for discontinued policies – others |
330.346 |
101.972 |
6.737 |
|
SUB TOTAL |
161326.507 |
149818.495 |
135518.903 |
|
|
|
|
|
|
Fund for future appropriation - PAR |
831.767 |
910.414 |
1088.424 |
|
Fund for future appropriation for linked liability (Lapsed Policies)
Non unit |
289.460 |
796.482 |
838.684 |
|
Fund for future appropriation for linked liability (Lapsed Policies)
unit |
7.719 |
116.762 |
383.438 |
|
|
|
|
|
|
TOTAL |
182014.283 |
171184.797 |
157361.161 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
Investment: |
|
|
|
|
Shareholders |
13174.095 |
7663.168 |
5781.472 |
|
Policyholders |
66504.232 |
57365.901 |
46007.640 |
|
|
|
|
|
|
Assets Held to cover linked liabilities |
95548.973 |
95569.131 |
93087.110 |
|
|
|
|
|
|
Loans |
1687.287 |
1325.300 |
905.084 |
|
|
|
|
|
|
Fixed Assets |
972.921 |
735.202 |
273.858 |
|
|
|
|
|
|
Balance Carried Forward |
177887.508 |
162658.702 |
146055.164 |
|
|
|
|
|
|
Balance brought Forward |
177887.508 |
162658.702 |
146055.164 |
|
|
|
|
|
|
Current Assets: |
|
|
|
|
Cash and Bank Balance |
681.339 |
1013.926 |
1409.618 |
|
Advance and other assets |
3614.464 |
3605.979 |
3148.865 |
|
SUB TOTAL |
4295.803 |
4619.905 |
4558.483 |
|
|
|
|
|
|
Current Liabilities |
5642.917 |
5720.401 |
6193.754 |
|
Provisions |
58.774 |
35.558 |
36.293 |
|
SUB TOTAL |
5701.691 |
5755.959 |
6230.047 |
|
|
|
|
|
|
Net Current Assets |
(1405.888) |
(1136.054) |
(1671.564) |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Debit Balance in profit and loss Account |
5532.663 |
9662.149 |
12977.561 |
|
|
|
|
|
|
TOTAL |
182014.283 |
171184.797 |
157361.161 |
PROFIT & LOSS
ACCOUNT
Policyholder’s
Account (Technical Account)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Premiums earned – net |
|
|
|
|
(a) Premium |
23237.035 |
27.604 |
36303.040 |
|
(b) Reinsurance ceded |
(119.141) |
(143.095) |
(120.561) |
|
(c) Reinsurance accepted |
0.000 |
0.000 |
0.000 |
|
Sub-total |
12117.894 |
27460.398 |
36182.479 |
|
|
|
|
|
|
Income from investments |
|
|
|
|
(a) Interest, Dividend and Rent-Gross (Net of amortisation of Rs.251.267 Millions (Previous year: Rs.220.265 Millions)) |
7666.757 |
6931.861 |
5606.239 |
|
(b) Profit on sale/redemption of investments |
9634.211 |
4966.495 |
2733.792 |
|
(c) (Loss) on sale/redemption of investments |
(3859.524) |
(3055.194) |
(2451.427) |
|
(d) Transfer/Gain on revaluation/change in fair value* |
8282.744 |
4939.791 |
(5599.568) |
|
|
|
|
|
|
Other Income |
|
|
|
|
(a) Interest on over due Premium |
23.510 |
22.913 |
16.902 |
|
(b) Interest on Policy loan |
176.220 |
131.362 |
85.374 |
|
(c) Fees and charges |
562.665 |
69.742 |
(543.402) |
|
(d) Contribution from Shareholders' Account |
0.901 |
23.035 |
72.548 |
|
(e) Miscellaneous Income |
134.609 |
116.496 |
84.493 |
|
Sub-total |
22622.083 |
14146.501 |
4.951 |
|
|
|
|
|
|
TOTAL (A) |
45739.977 |
41606.899 |
36187.430 |
|
|
|
|
|
|
Commission |
920.505 |
1035.411 |
1412.834 |
|
|
|
|
|
|
Operating Expenses related to Insurance Business |
4778.869 |
5915.745 |
7601.911 |
|
|
|
|
|
|
Provision for doubtful debts |
16.242 |
31.481 |
38.287 |
|
Bad debts written off |
0.000 |
0.051 |
0.000 |
|
Provision for Tax |
0.000 |
0.000 |
0.000 |
|
Provisions (other than taxation) |
|
|
|
|
(a) For diminution in the value of investments (Net) |
0.282 |
31.860 |
0.000 |
|
(b) Others |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
TOTAL(B) |
5715.898 |
7014.548 |
9053.032 |
|
|
|
|
|
|
Benefits paid (Net) |
26899.894 |
19745.244 |
10051.759 |
|
Interim Bonuses paid |
0.000 |
0.000 |
0.000 |
|
Change in valuation of liability in respect of life policies |
|
|
|
|
(a) Gross** (Refer Notes A.6 and B.2 of Schedule 16) |
11396.754 |
11163.640 |
7901.076 |
|
(b) Amount ceded in Reinsurance |
(23.498) |
(16.217) |
(11.304) |
|
(c) Amount accepted in Reinsurance |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Transfer to Linked Fund (Net) |
(1462.160) |
1029.131 |
6785.594 |
|
|
|
|
|
|
TOTAL (C) |
36810.990 |
31921.798 |
24727.125 |
|
|
|
|
|
|
SURPLUS/(DEFICTT)
[(D)=(A)-{B)-(C)] |
3213.089 |
2670.553 |
2407.273 |
|
|
|
|
|
|
Transfer from Linked fund (Lapsed Policies) |
(616.065) |
(308.878) |
271.852 |
|
|
|
|
|
|
Funds available for
Appropriation (E) |
2597.024 |
2361.675 |
2679.125 |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
Transfer to Shareholders' Account |
3291.736 |
2848.563 |
2304.543 |
|
Transfer to Other Reserves |
0.000 |
0.000 |
0.000 |
|
Balance being Funds for Future Appropriation |
(694.712) |
(486.888) |
374.582 |
|
|
|
|
|
|
TOTAL (E) |
2597.024 |
2361.675 |
2679.125 |
|
|
|
|
|
|
Funds for Future
Appropriation |
|
|
|
|
Opening Balance at the beginning of the year |
1823.658 |
2310.546 |
1935.964 |
|
Current year Appropriations |
(694.712) |
(486.888) |
374.582 |
|
Closing Balance Carried Forward to the Balance Sheet |
1128.946 |
1823.658 |
2310.546 |
|
|
|
|
|
|
The total surplus shall be disclosed separately with the following details: |
|
|
|
|
(a) Interim Bonuses Paid |
0.000 |
0.000 |
0.000 |
|
(b) Allocation of Bonus to Policyholders (Refer Note B.19 of Schedule 16) |
1520.640 |
1149.403 |
802.717 |
|
(c) Surplus shown in the Revenue Account |
3213.089 |
2670.553 |
2407.273 |
|
(d) Total Surplus [(a)+(b)+(c)] |
4733.729 |
3819.956 |
3209.990 |
* Represents the deemed realised gain as per norms specified by the Authority
** Represents Mathematical Reserves after allocation of bonus.
Shareholder’s
Account (Non-Technical Account)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
Amount transferred from the Policyholders' Account (Technical Account) |
3291.736 |
2848.563 |
2304.543 |
|
Income from Investments |
|
|
|
|
(a) Interest, Dividend and Rent-Gross (Net of amortisation Rs.31.282 Millions (Previous Year: Rs.29.201 Millions)) |
882.318 |
529.787 |
416.178 |
|
(b) Profit on sale/redemption of investments |
1.751 |
0.000 |
1.625 |
|
(c) (Loss) on sale/redemption of investments |
(1.991) |
(2.019) |
(0.640) |
|
|
|
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
TOTAL (A) |
4173.814 |
3376.331 |
2721.706 |
|
|
|
|
|
|
Expenses other than those directly related to the insurance business |
43.427 |
37.884 |
46.026 |
|
|
|
|
|
|
Bad debts Witten off |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Provisions (other than Taxation) |
|
|
|
|
(a) For diminution in the value of investments (Net) |
0.000 |
0.000 |
0.000 |
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
0.000 |
|
(c) Others |
0.000 |
0.000 |
0.000 |
|
Contribution to the Policyholders' Fund |
0.901 |
23.035 |
72.548 |
|
|
|
|
|
|
TOTAL(B) |
44.328 |
60.919 |
118.574 |
|
|
|
|
|
|
Profit/(Loss) before tax |
4129.486 |
3315.412 |
2603.132 |
|
Provision for taxation |
0.000 |
0.000 |
0.000 |
|
Profit/(Loss) after tax |
4129.486 |
3315.412 |
2603.132 |
|
APPROPRIATIONS |
|
|
|
|
Balance at the beginning of the year |
(9662.149) |
(12977.561) |
(15580.693) |
|
(b) Interim dividends paid during the year |
0.000 |
0.000 |
0.000 |
|
(c) Proposed final dividend |
0.000 |
0.000 |
0.000 |
|
(d) Dividend distribution on tax |
0.000 |
0.000 |
0.000 |
|
(e) Transfer to reserves/other accounts |
0.000 |
0.000 |
0.000 |
|
Profit/(Loss) carried forward to the Balance Sheet |
(5532.663) |
(9662.149) |
(12977.561) |
|
|
|
|
|
|
EARNING PER SHARE |
|
|
|
|
Basic and Diluted (Face Value Rs.10/- per share) |
2.11 |
1.70 |
1.33 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
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 |
INDUSTRY OVERVIEW
The year 2013-2014 saw continued reduction in growth In new business. The New Business Premium (NBP) in the industry reduced by S% over the pervious year. The gross Value of New Business (VONB) excluding expense overrun were in the range of 15% Active Regulatory oversight continued across various aspects of the business with increased scrutiny of product designs and monitoring of Intermediary payouts. The focus has shifted from investment linked lo traditional plans as expected.
The Company closed the year with new business premium of Rs.4340.000 Millions as against Rs.5600.000 Millions in the previous year. The Company's new business premium market share amongst private players was 1.5% The Group business contributed to 38% of the total new business premium as compared to 40% in the previous year.
The Lire Insurance industry is undergoing a transition from scalability to sustainability, accelerated by the far reaching changes with various Regulatory interventions. The growth potential however remains encouraging since penetration levels are still low. There exists a significant growth opportunity al current savings rate, economic growth will push household incomes higher while life expectancy creates opportunities In pensions, there is a positive shift In the demographic transition.
The medium term growth story of the industry is expected to be in line with GDP growth. With the changing Regulatory landscape, emphasis in the coming years will intensify towards driving productivity improvements, capital efficiency and profitability, higher persistency and improved productivity will be key aspects to achieve these objectives. Expense management discipline will continue to be an important agenda and costs of distribution need to be managed frugally.
FIXED ASSETS:
PRESS RELEASE:
FIVE SENIOR EXECS QUIT TATA AIA LIFE INSURANCE
NOVEMBER 13, 2012
Tata AIA Life Insurance Co Ltd (formerly Tata AIG Life Insurance) is seeing attrition at senior management levels. According to sources, five senior management executives are in the process of leaving the organisation.
The five, according to industry sources, are Mitali Dalal, senior vice-president; Vikas Bagga, senior vice-president & head of north zone; Natasha Joshi, senior vice-president & head of south zone; S Bharat, vice-president & head of strategy; and M Anand, vice-president.
Tata AIA Life Insurance has 13 people at the senior vice-president level.
However, the company downplayed the development. “Like every growing organisation, people movement is a regular part of Tata AIA Life Insurance,” the company said in reply to a questionnaire sent by Business Standard.
Tata AIA Life Insurance has about 4,000 employees on its rolls. It recently appointed Mukesh Dhawan as deputy CEO and chief distribution officer. Dhawan is responsible for creating and implementing new strategies in marketing, product development and distribution.
In 2010, the private life insurer had reduced headcount by 27 per cent to achieve profitability. It saw a 33 per cent reduction in headcount in 2010-11, too, compared to 2009-10. The company had, then, said this was because it was reworking its business model to suit the regulations which came into force in September 2010. As part of this strategy, the company did not fill all the positions that became vacant mostly due to natural attrition.
In September 2010, the Insurance Regulatory and Development Authority capped the charges and commissions on unit-linked products (Ulips), and as a result of which, the average commission in Ulips as a percentage to premiums collected fell to four per cent in 2011-12, from 10 per cent in 2009-10.
The company has also seen a drop in premium collection by 44.3 per cent during April- September 2012, compared to the premiums collected during the same period in 2011. According to Irda data, the company collected Rs 2618.000 Millions premium for the April- September 2012 period. The private life insurance industry also saw a drop in new premium collection by 5.7 per cent in April-September 2012, compared to the same period in 2011.
TATA AIA LIFE SEES CHURN AT TOP
MARCH 21, 2014
Tata AIA Life Insurance is seeing a churn at the senior management in recent months. It has a new deputy chief executive officer, apart from a CEO-designate who’s joined from AIA Sri Lanka.
M Suresh, the current managing director and CEO, had decided to move on and is
expected to quit the company by the end of this month. Shah Rouf, who is CEO of
AIA Sri Lanka, is the designated successor. Meanwhile, Mukesh Dhawan, who was
deputy CEO and chief distribution officer (CDO), has moved to AIA in a global
role and his position filled by Ravi Vishwanath.
All CEO appointments have to be approved by the Insurance Regulatory and
Development Authority. Hence, Tata AIA’s would also be subject to this.
Shah Rouf has about 18 years experience in the sector. He was with Aviva NDB
Insurance in Sri Lanka, before it was acquired by AIA Group in December 2012.
He was retained in the new AIA team.
Late last year, Chief Investment Officer Saravana Kumar had quit the company.
His position was filled by Harshad Patil last month. Also, Vivek Mathur, the
chief financial officer, had quit to join CignaTTK Health Insurance as
its CFO.
In October 2012, Tata AIA had appointed Dhawan as Dy CEO and CDO. He had joined
from AIA, where he was the group’s regional chief agency officer, responsible
for the Singapore, Malaysia, China and Taiwan markets. Dhawan was responsible
for creating and implementing new strategies in marketing, product development
and distribution, a role to be essayed by Vishwanath presently.
The company in its response said, "Tata AIA Life has long been known as an
ideal training ground for the industry because of its strong processes. We have
hence had some senior executives moving on as part of their natural career
progression. We are very optimistic about the prospects of the Life Insurance
sector and are gearing up as an organization to take ourselves to the next
level of growth and development."
Tata AIA Life has seen a 16.2 per cent reduction in total premiums for the
April-December 2013 period and a 11.9 per cent drop in new business
premiums for the period compared to the same span a year before. The life
insurance sector saw a 22.4 per cent rise in new premiums for the same period
this year compared to last year.
The company is a joint venture between Tata Sons and AIA International, where
Tata Sons and its nominees hold 74 per cent; 26 per cent is held by AIA
International, the maximum permissible in the sector under the current foreign
direct investment norms.
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.61.70 |
|
|
1 |
Rs.93.41 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
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 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.