MIRA INFORM REPORT
|
Report No. : |
333627 |
|
Report Date : |
27.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Formerly Known
As : |
ALLIANZ BAJAJ LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
GE Plaza Airport Road, Yerawada, Pune – 411006, Maharashtra |
|
Tel No.: |
91-20-30587888 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
12.03.2001 |
|
|
|
|
Com. Reg. No.: |
11-015959 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1507.090
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010PN2001PLC015959 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
PNEA03242B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Life Insurance Related Services |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
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 : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of “Bajaj Finserv Limited” It is a well-established and reputed company incorporated during the
year 2001 having an excellent track record. Available financial indicates company’s strong financial risk profile.
Fundamentals of the company are strong and healthy. Directors are reported to be well experienced and knowledgeable
businessmen. Trade relations are reported to be trustworthy. Business is active.
Payments are reported to be regular and as per commitment. In view of strong holding support and extensive experience of its
promoters, 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 |
CARE |
|
Rating |
Claims Paying Ability (AAA) |
|
Rating Explanation |
Highest Degree of safety and carry lowest
credit risk |
|
Date |
January 14, 2015 |
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
31-03-2013.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-20-66026777)
LOCATIONS
|
Registered/ Head Office : |
GE Plaza Airport Road, Yerawada, Pune – 411006, Maharashtra,
India |
|
Tel. No.: |
91-20-30587888 |
|
Fax No.: |
91-20-66026789/ 40111502/ 66026667 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Customer Care Centre : |
Located at: · Rajasthan, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Sanjiv R Bajaj |
|
Designation : |
Chairman |
|
Address : |
Bajaj Auto Colony, Mumbai – |
|
Date of Birth/Age : |
02.11.1969 |
|
Date of Appointment : |
12.03.2001 |
|
|
|
|
Name : |
Mr. Rahul K. Bajaj |
|
Designation : |
Chairman Cum Managing Director |
|
Address : |
Bajaj Auto Colony, Mumbai – |
|
Date of Birth/Age : |
10.06.1938 |
|
Date of Appointment : |
12.03.2001 |
|
|
|
|
Name : |
Mr. Niraj R. Bajaj |
|
Designation : |
Director |
|
Address : |
Flat No. 97, Mount Unique, 13th Floor, 62A, Mumbai –
400026, |
|
Date of Birth/Age : |
10.10.1954 |
|
Date of Appointment : |
06.03.2008 |
|
|
|
|
Name : |
Mr. Ranjit K. Gupta |
|
Designation : |
Director |
|
Address : |
131/24, PCNTD, Nigdi, Pune – 411044, |
|
Date of Birth/Age : |
19.03.1943 |
|
Date of Appointment : |
12.03.2001 |
|
|
|
|
Name : |
Mr. Manuel Bauer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kamesh G. Goyal |
|
Designation : |
Alternate Director to Mr.
Manuel Bauer) |
|
Address : |
244/254, |
|
Date of Birth/Age : |
25.05.1966 |
|
Date of Appointment : |
06.03.2008 |
|
|
|
|
Name : |
Mr. Sanjay K. Asher |
|
Designation : |
Director |
|
Address : |
No. 32, Mody Street, Mumbai – 400001, |
|
Date of Birth/Age : |
26.11.1963 |
|
Date of Appointment : |
06.06.2002 |
|
|
|
|
Name : |
Mr. Suraj C. Mehta |
|
Designation : |
Director |
|
Address : |
No. 24, Sonarica 33A, |
|
Date of Birth/Age : |
01.05.1944 |
|
Date of Appointment : |
06.06.2002 |
|
|
|
|
Name : |
Mr. Serajul H. Khan |
|
Designation : |
Director |
|
Address : |
181 Antariksha Apts, 95/96 Ameva |
|
Date of Birth/Age : |
01.07.1938 |
|
Date of Appointment : |
22.09.2006 |
|
|
|
|
Name : |
Mr. Manu P. Tandon |
|
Designation : |
Director |
|
Address : |
16 Solitaire |
|
Date of Birth/Age : |
24.07.1943 |
|
Date of Appointment : |
22.09.2007 |
|
|
|
|
Name : |
Anuj Agarwal |
|
Designation : |
Managing Director and Chief Executive Officer |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Viswanathan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Saisrinivas Dhulipala |
|
Designation : |
Appointed Actuary |
|
|
|
|
Name : |
Mr. Sameer Bakshi |
|
Designation : |
Company Secretary and Head – Legal & Compliance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Shareholder |
Current Year |
|
|
PROMOTERS: |
Number of Shares |
% of Holding |
|
Indian |
|
|
|
Bajaj Finserv Limited |
111524660 |
74 |
|
Foreign |
|
|
|
Allianz SE |
39184340 |
26 |
|
TOTAL |
150709000 |
100 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance Related Services |
|
|
|
|
Products / Services : |
Life Insurance Services |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
Not Available |
|
|
|
|
Imports : |
Not Available |
|
|
|
|
Terms : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
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||||||||||||||
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Customers : |
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||||||||||||||
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No. of Employees : |
Information declined by the management |
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|
|
||||||||||||||
|
Bankers : |
· Axis Bank Limited · Deutsche Bank · HDFC Bank Limited ·
Citi Bank |
||||||||||||||
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Company LLP Chartered Accountants |
|
|
|
|
Name : |
Kirtane and Pandit Chartered Accountants |
|
|
|
|
Holding Company: |
Bajaj Finserv Limited |
|
|
|
|
Group Company : |
· Bajaj Auto Limited · Bajaj Finance Limited (Earlier Known as Bajaj Auto Finance Limited) · Bajaj Allianz General Insurance Co. Limited · Bajaj Allianz Financial Distributors Limited · Bajaj Financial Solutions Limited · Allianz Insurance Management Asia Pacific Pte. Limited · Allianz Managed Operations and Services SE · Allianz SE Reinsurance Branch Asia Pacific. · Allianz Life Insurance Malaysia Berhad · Asuransi Allianz Utama Indonesia · IDS GmbH · Allianz Investment Management Singapore Pte. Limited · Bajaj Electricals Limited |
|
|
|
|
Enterprise where
key management personnel is having significant influence : |
· Hind Musafir Agency Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150709000 |
Equity Shares |
Rs.10/- each |
Rs.1507.090
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
Share Capital |
1507.090 |
1507.090 |
1507.090 |
|
Reserves & Surplus |
57201.257 |
46955.345 |
34098.981 |
|
Credit / Debit Fair Value Change Account |
0.000 |
(21.744) |
0.000 |
|
NETWORTH |
58708.347 |
48440.691 |
35606.071 |
|
|
|
|
|
|
BORROWINGS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
POLICYHOLDER’S
FUNDS |
|
|
|
|
|
|
|
|
|
Credit / Debit Fair Value Change Account |
677.123 |
51.684 |
55.847 |
|
|
|
|
|
|
Policy
Liabilities |
|
|
|
|
Participating : |
|
|
|
|
Individual Assurance |
67378.074 |
48456.276 |
32544.438 |
|
Individual
Pension |
543.743 |
547.852 |
480.703 |
|
|
|
|
|
|
Non – Participating |
|
|
|
|
Individual Assurance |
838.565 |
8000.764 |
5425.333 |
|
Individual Health |
163.690 |
190.514 |
182.785 |
|
Individual Anniuty |
1037.406 |
764.229 |
512.007 |
|
Group Assurances |
36005.758 |
25552.963 |
13069.765 |
|
|
|
|
|
|
Linked : |
|
|
|
|
Individual Assurances |
3547.808 |
4129.299 |
4181.769 |
|
Individual Pension |
6.494 |
19.348 |
128.757 |
|
Group |
11.924 |
24.018 |
13.084 |
|
Total
|
117084.462
|
87685.263
|
56538.641
|
|
|
|
|
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Provisions for Linked Liabilities |
|
|
|
|
Linked Liabilities |
185013.230 |
231098.609 |
277000.156 |
|
Fair Value Change |
27862.778 |
13867.136 |
22838.105 |
|
Total
|
212876.008 |
244965.745 |
299838.261 |
|
|
|
|
|
|
Provision For Discontinuance Fund |
1454.973 |
489.840 |
156.384 |
|
|
|
|
|
|
Sub-Total
(1+2+3+4) |
332092.566 |
333192.532 |
356589.133 |
|
|
|
|
|
|
FUNDS
FOR FUTURE APPROPRIATIONS |
|
|
|
|
Participating : |
|
|
|
|
Individual Assurance |
1764.968 |
1683.050 |
1383.948 |
|
Individual
Pension |
74.569 |
57.543 |
58.847 |
|
Reserve
For Lapsed Unit Linked Policies |
0.000 |
0.000 |
847.971 |
|
Total
|
1839.537 |
1740.593 |
2290.766 |
|
|
|
|
|
|
TOTAL |
392640.450 |
383373.816 |
394485.970 |
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
INVESTMENTS
|
|
|
|
|
Shareholders’ |
58104.832 |
46878.100 |
36005.554 |
|
|
|
|
|
|
Policyholders’ |
|
|
|
|
Participating : |
|
|
|
|
Individual Assurance |
67503.916 |
48893.876 |
33071.320 |
|
Individual
Pension |
598.409 |
577.181 |
521.828 |
|
|
|
|
|
|
Non – Participating |
|
|
|
|
Individual Assurance |
8191.447 |
8059.151 |
5268.941 |
|
Individual Health |
163.629 |
199.644 |
182.904 |
|
Individual Anniuty |
983.532 |
727.840 |
492.756 |
|
Group Assurances |
34382.788 |
25196.213 |
12659.090 |
|
|
|
|
|
|
Linked : |
|
|
|
|
Individual Assurances |
3518.293 |
3993.903 |
5932.608 |
|
Individual Pension |
8.139 |
22.001 |
183.119 |
|
Group |
12.026 |
24.717 |
16.814 |
|
Total
|
115362.179 |
87694.526 |
58329.380 |
|
|
|
|
|
|
ASSETS
HELD TO COVER LINKED LIABILITIES |
212876.008 |
244965.745 |
299838.261 |
|
|
|
|
|
|
ASSETS HELD TO COVER DISCONTINUED FUNDS |
1454.973 |
489.840 |
156.384 |
|
|
|
|
|
|
LOANS
|
462.399 |
241.483 |
170.660 |
|
|
|
|
|
|
FIXED
ASSETS [NET BLOCK] |
2554.847 |
2513.572 |
2211.554 |
|
|
|
|
|
|
CAPITAL
WORK-IN PROGRESS |
0.000 |
4.663 |
50.870 |
|
|
|
|
|
|
CURRENT
ASSETS : |
|
|
|
|
Cash and Bank Balances |
7320.635 |
7147.509 |
4382.396 |
|
Advances and Other Assets |
11009.879 |
9293.404 |
5364.592 |
|
Sub-total
|
18330.514 |
16440.913 |
9746.988 |
|
|
|
|
|
|
LESS:
CURRENT LIABILITIES AND PROVISIONS |
|
|
|
|
Sundry Creditors |
2840.118 |
3455.713 |
3617.714 |
|
Other Current liability |
10437.140 |
10468.072 |
7037.140 |
|
Provisions |
3228.044 |
1938.407 |
1368.827 |
|
Sub-total
|
16505.302 |
15855.026 |
12023.681 |
|
Net
Current Assets |
1825.212 |
585.887 |
(2276.693) |
|
|
|
|
|
|
MISCELLANEOUS
EXPENDITURE |
-- |
-- |
-- |
|
|
|
|
|
|
DEBIT
BALANCE IN PROFIT AND LOSS ACCOUNT |
-- |
-- |
-- |
|
|
|
|
|
|
TOTAL |
392640.450 |
383373.816 |
394485.970 |
REVENUE
ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2014
POLICYHOLDERS’ ACCOUNT (TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
58431.389 |
68926.995 |
74837.954 |
|
|
b) Reinsurance Ceded |
(678.155) |
(576.420) |
(501.791) |
|
|
c) Reinsurance accepted |
-- |
-- |
-- |
|
|
Sub-total |
57753.234 |
68350.575 |
74336.163 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
15234.276 |
13532.135 |
11065.710 |
|
|
b) Profit on sale / Redemption of investments |
32443.446 |
37448.854 |
14465.335 |
|
|
c) (Loss on sale / Redemption of investments) |
(13796.986) |
(13717.856) |
(6979.550) |
|
|
d) Transfer/Gain on revaluation / change in fair value |
13995.642 |
(8970.965) |
(20928.753) |
|
|
e) Other Investment Income |
1265.391 |
1965.639 |
1982.785 |
|
|
|
49141.769 |
30257.807 |
(394.473) |
|
|
|
|
|
|
|
|
Other Income |
300.631 |
169.758 |
87.914 |
|
|
a) contribution from the shareholders account |
69.386 |
23.503 |
24.489 |
|
|
SUB-TOTAL |
49511.786 |
30451.068 |
(278.070) |
|
|
Total (A) |
107265.020 |
98801.643 |
74058.093 |
|
|
|
|
|
|
|
|
Commission |
1482.537 |
2804.198 |
3882.730 |
|
|
Operating expenses related to insurance business |
14728.883 |
16003.010 |
14062.756 |
|
|
Provision for Doubtful debts |
-- |
-- |
-- |
|
|
Bad debts written off |
-- |
-- |
-- |
|
|
Provision for Fringe Benefit Tax |
-- |
-- |
-- |
|
|
Provision for tax |
1469.224 |
1692.829 |
1856.244 |
|
|
Provision (other than taxation) |
|
|
|
|
|
a) for diminution in value of investments (net) |
-- |
-- |
-- |
|
|
b) others |
-- |
-- |
-- |
|
|
Total (B) |
17680.644 |
20500.037 |
19801.730 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
84772.465 |
93037.652 |
54945.976 |
|
|
Interim Bonus Paid |
47.358 |
31.726 |
12.476 |
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
29399.199 |
31146.622 |
18091.966 |
|
|
(b) Fund Reserve |
(32089.737) |
(54872.516) |
(29003.444) |
|
|
(c) Reserve for Discontinuance fund |
965.133 |
333.456 |
156.384 |
|
|
(d) Amount ceded in Re-insurance |
-- |
-- |
-- |
|
|
(e) Amount accepted in Re-insurance |
-- |
-- |
-- |
|
|
Total (C) |
83094.418 |
69676.940 |
44203.358 |
|
|
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
6489.958 |
8624.666 |
10053.005 |
|
|
|
|
|
|
|
|
Balance of previous year |
1740.593 |
1442.796 |
1183.697 |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
|
|
|
|
|
|
Transfer (to)/from reserve for lapsed unit linked policies unlikely to be revived |
-- |
847.970 |
897.353 |
|
|
|
|
|
|
|
|
Transfer to shareholders account |
(6391.014) |
(9174.839) |
(10691.260) |
|
|
Balance being funds for future appropriation |
1839.537 |
1740.593 |
1442.795 |
|
|
Total (D) |
|
|
|
|
|
|
|
|
|
|
|
Details of total surplus |
|
|
|
|
|
a) interim Bonuses paid |
47.358 |
31.726 |
12.476 |
|
|
b) allocation of bonus to policyholders |
2844.397 |
2633.681 |
2055.319 |
|
|
c) surplus shown in the revenue account |
6489.958 |
8624.666 |
10053.005 |
|
|
Total Surplus
[(a)+(b)+(c)] |
9381.713 |
11290.073 |
12120.800 |
PROFIT & LOS S ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2014
SHAREHOLDERS’ ACCOUNT (NON TECHNICAL
ACCOUNT)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
Amounts Transferred from the Policyholder’s Account |
6391.014 |
9174.839 |
10691.260 |
|
|
|
|
|
|
INCOME FROM INVESTMENTS |
|
|
|
|
a) Interest, Dividend and Rent – Gross |
5049.767 |
4134.675 |
2732.290 |
|
b) Profit on sale / redemption of
investments |
458.787 |
250.538 |
201.360 |
|
c) loss on sale / redemption of investments |
(132.526) |
(70.186) |
(25.587) |
|
d) Transfer / Gain on revaluation / change
in fair value |
-- |
-- |
-- |
|
|
|
|
|
|
OTHER INCOME |
25.922 |
17.507 |
1.066 |
|
|
|
|
|
|
TOTAL (A) |
11792.964 |
13507.373 |
13600.389 |
|
|
|
|
|
|
Expenses other than those directly related to
the insurance business |
101.644 |
48.197 |
76.124 |
|
Others |
|
|
|
|
Provisions (Other than Taxation) |
-- |
-- |
-- |
|
Contributions to the Policyholder’s Account |
|
|
|
|
|
|
|
|
|
Non – Participating |
|
|
|
|
Individual Assurance |
0.000 |
3.289 |
0.000 |
|
Individual Anniuty |
65.260 |
20.214 |
28.489 |
|
|
|
|
|
|
Linked : |
|
|
|
|
Group |
4.126 |
0.000 |
0.000 |
|
Total
|
69.386 |
23.503 |
28.489 |
|
|
|
|
|
|
TOTAL (B) |
171.030 |
71.700 |
104.613 |
|
|
|
|
|
|
Profit
/ Loss Before Tax |
11621.934 |
13435.673 |
13495.776 |
|
|
|
|
|
|
Provision for Taxation including Wealth
Tax |
1376.022 |
579.309 |
383.757 |
|
|
|
|
|
|
Profit
/ Loss After Tax |
10245.912 |
12856.364 |
13112.019 |
|
|
|
|
|
|
Balance
at the beginning of the year |
36355.795 |
23499.431 |
10387.412 |
|
|
|
|
|
|
Profit
/ Loss carried forward to Balance Sheet |
46601.707 |
36335.795 |
23499.431 |
|
|
|
|
|
|
Earning
Per Share (Basic and Diluted) |
67.98 |
85.31 |
87.00 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flow from operating activity |
(44629.692) |
(44557.321) |
(706.182) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
No |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
No |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
BACKGROUND
The Company was incorporated on 12th March 2001 as a Company under the Companies Act, 1956. The Company obtained a license from the Insurance Regulatory and Development Authority (“IRDA”) for carrying on the business of life insurance on 3rd August 2001. The registration certificate granted by IRDA is valid and the same has been renewed for the year 2014-2015. The Company has a wide range of products in traditional and unit-linked insurance business.
THE LIFE INSURANCE
INDUSTRY
Over the past two to three years, real GDP growth in India has slowed significantly with a drop in financial savings, which has affected inflows into the life insurance sector. The year 2013-14 was no exception. Apart from this, 2013-14 was also the year in which the revamped product guidelines of the Insurance Regulatory and Development Authority (IRDA) for traditional and unit-linked policies were made effective. The group products had to be withdrawn and re-launched with effect from 1st August 2013 and the individual products from 1st January, 2014. Almost all the flagship products of all insurers had to be revamped, filed for approval and re-launched. Clearly, these events had a major impact on the performance of the
industry.
For the year 2013-14, the life insurance industry had a new business growth of 11.8 % as against a decline of 6.3% in the year 2012-13 (decline of 4% excluding LIC). However, the private sector witnessed a decline of 4% during FY 2013-14 (PY: decline of 4%). As the full impact of the new products was felt from 1st January 2014, the lastquarter (which is traditionally the strongest quarter for life insurers) witnessed a decline of 11% for the private sector as compared to the same quarter of the previous year. During the year, the market share of private players reduced from 28.7% to 24.7% of the total new business.
The new business growth in 2014-15 will largely depend on how the new products, launched recently or to be launched in the next few months, will be received by the market. As companies are in the process of making significant investments in re-training their distribution channels, growth in the industry is expected to be muted during FY 2014-15.
During 2013-14, IRDA announced regulations on licensing banks as insurance brokers, web aggregators and new broker regulations which expected to open up new vistas for insurance distribution. The IRDA also announced a drive for increasing insurance awareness and literacy with a view to increasing penetration of insurance. These initiatives are expected to spread the reach of insurance to the grass root level and benefit the industry in the medium term. With most new product regulations and high surrenders behind, there is hope that the industry will start to see signs of a secular revival by the second half of FY 2014-15. Much will, of course, depend on the growth rate of the economy, the interest rates and the financial savings rate.
BUSINESS PERFORMANCE:
In a very difficult year, the Company maintained its fourth position amongst private life insurers on the basis of new business premium. It wrote new business of Rs. 25920.000 Millions during financial year 2013- 14 compared to Rs.29880.000 Millions in the previous year, registering a de-growth of 13.25%. The gross premium written, which includes renewal premiums in addition to new business premiums, for the financial year 2013-14 was Rs. 5,843 crores, as compared to Rs. 68920.000 Millions in the previous year, registering a 15.2% de growth. Within the private sector, the Company’s market share of new business premium was 8.8% for 2013-14, as compared to 9.7% in the year 2012-13.
Unit linked premiums contributed 17.8% of the Company’s new business premiums in 2013-14, compared to 18.9% in the previous year. Traditional individual premiums constituted 36.6% of overall new business premiums in financial year 2013-14 as compared to 36.0% in financial year 2012-13.
Despite most of the old unit-linked policies having completed their mandatory three year lock-in, surrenders for the year at Rs.72500.000 Millions were 15% lower than the previous year figure of Rs.85050.000 Millions.
The Company earned a profit in the Policyholders’ account, of Rs. 6490.000 Millions during 2013-14, as compared to a profit of Rs. 862 crores in the previous year. After the distribution of current year’s surplus of Rs. 6390.000 Millions (Previous Year Rs. 8320.000 Millions), transfer of Rs. Nil (Previous Year Rs.850.000 Millions) from the Funds for Future Appropriation and the investment income from shareholders’ funds, the shareholders’ profit after tax was Rs. 1,025 crores (Previous Year Rs. 12860.0000 Millions). The Company has accumulated profits included under Reserves and Surplus, of Rs. 46600.000 Millions as at 31st March 2014.
RECOGNITION AND
AWARDS :
The Company received the SKOCH Renaissance Award 2013 in the Platinum Category at the Corporate Leadership and Corporate Citizenship Awards, for its contribution towards financial inclusion through the Company products Sarve Shakti Suraksha and Group Term Life, for the fourth consecutive year. In addition to this, the Company also won the Best Insurance Company in private sector at the IPE Banking Financial Services and Insurance (BFSI) 2013.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Partly-paid up investments |
0.000 |
0.000 |
|
Underwriting commitments outstanding |
0.000 |
0.000 |
|
Claims, other than those under policies, not acknowledged as debts |
1.070 |
36.846 |
|
Guarantees given by or on behalf of the Company |
0.000 |
0.000 |
|
Statutory demands/liabilities in dispute, not provided for |
74.227 |
12.833 |
|
Reinsurance obligations to the extent not provided for in accounts |
0.000 |
0.000 |
|
Claims, under policies, not acknowledged as debts |
195.730 |
189.795 |
FIXED ASSETS
· Buildings
· Electrical Fittings
· Furniture and Fittings
· Information Technology Equipment
· Air Conditioner
· Vehicles
· Office Equipment
· Leasehold Improvements
· Computer Software
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.69.89 |
|
|
1 |
Rs.99.10 |
|
Euro |
1 |
Rs.70.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
SPR |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
74 |
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.