MIRA INFORM REPORT
|
Report No. : |
342882 |
|
Report Date : |
26.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Building No.3, 3rd Floor, Unit No.1, Nesco IT Park, Western Express
Highway, Goregaon (East), Mumbai – 400063, Maharashtra |
|
Tel. No.: |
91-22-67293276/61180100 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
23.03.2007 |
|
|
|
|
Com. Reg. No.: |
11-169110 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 13070.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2007PLC169110 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA30232G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAGCA3203J |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in providing Life Insurance Business. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between Religare, holding company for one
of India’s leading diversified financial services groups and Bennett, Coleman
and Company, India’s leading media conglomerate, incorporated in the year
2007. The company has incurred loss in both the financial year 2013 and
2014. However, the company has strong networth base along with good financial
support from its holding companies. Trade relations are fair. Business is active. Payments are reported to
be slow but correct. The company can be considered 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
31-03-2015.
INFORMATION DENIED
Management Non-Cooperative (91-22-67293276/61180100)
LOCATIONS
|
Registered Office : |
Building No.3, 3rd Floor, Unit No.1, NESCO IT Park, Western Express
Highway, Goregaon (East), Mumbai – 400063, Maharashtra, India |
|
Tel. No.: |
91-22-67293276/61180100 |
|
Fax No.: |
91-22-61180200/300 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 05.06.2014
|
Name : |
Mr. David William Wolf |
|
Designation : |
Nominee director |
|
Address : |
48, McBride way, Bridgewater, New Jersey, NJ 08807-2685, U.S. Citizen |
|
Date of Birth/Age : |
19.03.1964 |
|
Qualification : |
B.A (Accounting), M.B.A |
|
Date of Appointment : |
11.10.2011 |
|
DIN No.: |
03633892 |
|
|
|
|
Name : |
Mr. Gopalakrishnan Sankaranarayanan Kavassery |
|
Designation : |
Managing Director and CEO |
|
Address : |
A/604, 6th Floor, Akruti Atria, Saiwadi, Andheri (West), Mumbai – 400069, Maharashtra, India |
|
Date of Birth/Age : |
16.10.1963 |
|
Date of Appointment : |
05.07.2013 |
|
DIN No.: |
06567403 |
|
|
|
|
Name : |
Mr. Kashi Nath Memani |
|
Designation : |
Independent Director |
|
Address : |
177 C, Western Avenue, Lane No. 7, Sainik Farms, New Delhi - 110062, India |
|
Date of Birth/Age : |
01.01.1939 |
|
Qualification : |
C.A. |
|
Date of Appointment : |
31.05.2008 |
|
DIN No.: |
00020696 |
|
|
|
|
Name : |
Mr. Sivakumar Sundaram |
|
Designation : |
Nominee Director |
|
Address : |
6, Shankar Sagar Sophia College Lane, Breach Candy, Mumbai - 400026, Maharashtra, India |
|
Date of Birth/Age : |
23.07.1966 |
|
Qualification : |
M.Com, FCA, FICWA |
|
Date of Appointment : |
31.05.2008 |
|
DIN No.: |
00105562 |
|
|
|
|
Name : |
Mr. Sunil Naraindas Godhwani |
|
Designation : |
Nominee Director |
|
Address : |
A-2, Inayat Farm, Asola Fatehpur Beri, P.O. Mehrauli, New Delhi -110030, India |
|
Date of Birth/Age : |
10.12.1960 |
|
Qualification : |
Graduate in Chemical Engg., M.B.A. |
|
Date of Appointment : |
23.03.2007 |
|
DIN No.: |
00174831 |
|
|
|
|
Name : |
Mr. Adarsh Kishore |
|
Designation : |
Independent Director |
|
Address : |
Badarika Farm House, Behind Railway Officers, Colony, Near Jagatpura Railway Station, Jaipur – 302025, Rajasthan, India |
|
Date of Birth/Age : |
04.12.1946 |
|
Qualification : |
Ph.D, IAS (retd.) |
|
Date of Appointment : |
31.03.2010 |
|
DIN No.: |
02902810 |
|
|
|
|
Name : |
Mr. Douglas Curry Henck |
|
Designation : |
Nominee Director |
|
Address : |
19A, Tower 2, Dynasty Court, 23 Old Peak Road, Mid level, Central Hong Kong, Netherlands |
|
Date of Birth/Age : |
14.02.1953 |
|
Qualification : |
B.S. Mathematics, Fellow of Society of Actuaries |
|
Date of Appointment : |
14.04.2011 |
|
DIN No.: |
03497177 |
|
|
|
|
Name : |
Mr. Johannes Aart Van Der Steen |
|
Designation : |
Nominee director |
|
Address : |
31, Twenty Sixth Street, Hong Lok Yuen, Tai Po New Territories, Netherlands |
|
Date of Birth/Age : |
23.09.1971 |
|
Qualification : |
B.A. (Accountancy), C.A., Executive Master of Finance and Control |
|
Date of Appointment : |
11.10.2011 |
|
DIN No.: |
03641656 |
|
|
|
|
Name : |
Mr. Kamlesh Rajaninath Dangi |
|
Designation : |
Nominee director |
|
Address : |
101, Sunville, Plot No 8, JVPD, Vile Parle (West), Mumbai - 400057, Maharashtra, India |
|
Date of Birth/Age : |
07.11.1971 |
|
Qualification : |
Post Graduate |
|
Date of Appointment : |
23.12.2011 |
|
DIN No.: |
05152439 |
|
|
|
|
Name : |
Mr. Ravi Umesh Mehrotra |
|
Designation : |
Nominee director |
|
Address : |
40A, Block 1, Estoril Court, 55, Garden Road, Mid Levels, Hong Kong |
|
Date of Birth/Age : |
28.01.1961 |
|
Qualification : |
B.Com, PGDBM |
|
Date of Appointment : |
23.12.2011 |
|
DIN No.: |
01355561 |
KEY EXECUTIVES
|
Name : |
Mr. Jitin Pramodrai Parekh |
|
Designation : |
Secretary |
|
Address : |
203, Trishul II, J. P. Road, Seven Bunglows, Andheri (West), Mumbai 400061, Maharashtra, India |
|
Date of Birth/Age : |
13.05.1974 |
|
Date of Appointment : |
01.02.2010 |
|
PAN No.: |
AAFPP3595A |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 05.06.2014
|
Names of Shareholders |
|
No. of Shares |
|
Religare Enterprises Limited, India |
|
575079930 |
|
Bennett Coleman and Company, India |
|
361500000 |
|
AEGON India Holding B.V, Netherlands |
|
339819954 |
|
*Sunil Godhwani |
|
67 |
|
#K.S. Gopalkrishnan |
|
46 |
|
Aegon Religare Employee Benefit Trust |
|
30600000 |
|
*Anil Saxena |
|
1 |
|
*Kamlesh Dangi |
|
1 |
|
*Shachindra Nath |
|
1 |
|
Total |
|
1307000000 |
Note
* Holding as nominee of Religare Enterprises Limited
# Holding as nominee of AEGON India Holding B. V.
Allottees as on 28.05.2015
|
Names of Allottees |
|
No. of Shares |
|
AEGON Religare Employee Benefits Trust |
|
925000 |
|
AEGON India Holding B.V, Netherlands |
|
324999 |
|
**K.S.Gopalakrishnan |
|
1 |
|
|
|
|
|
Total |
|
1250000 |
**Holding as nominee of AEGON India Holding B. V.
Equity Share Break up (Percentage of Total Equity)
As on 05.06.2014
|
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 |
71.66 |
|
Other top fifty shareholders |
2.34 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in providing Life Insurance Business. |
|
|
|
|
Products/Services : |
· Group and Health Insurance · Linked business of Life · Pension and Group Gratuity · Individual Insurance · Pension Insurance |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
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 : |
· Citi Bank NA · HDFC Bank Limited |
|
Auditors 1 : |
|
|
Name : |
B K Khare and Company Chartered Accountants |
|
Address : |
706/708, Sharda Chambers, New Marine Lines, Mumbai – 400020,
Maharashtra, India |
|
PAN No. : |
AAAFB0265E |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Singhi and Company Chartered Accountants |
|
|
|
|
Auditors 3 : |
|
|
|
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg, Dadar (West), Mumbai – 400028, Maharashtra,
India |
|
PAN No. : |
AAAFP8828M |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Related parties where
control exists : |
· AEGON India Holdings B.V. · Religare Enterprises Limited · Bennett Coleman and Company Limited |
|
|
|
|
Associates
Companies where transactions have taken place during the year ended March 31,
2014 : |
|
CAPITAL STRUCTURE
After 05.06.2014
Authorised Capital : Rs. 20000.000
Million
Issued, Subscribed & Paid-up Capital : Rs. 13117.500
Million
As on 05.06.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs. 20000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1307000000 |
Equity Shares |
Rs.10/- each |
Rs.
13070.000 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 |
|
|
|
|
|
1] Share Capital |
13070.000 |
11760.000 |
11350.000 |
|
|
2] Share Application Money Pending Allotment |
0.000 |
240.000 |
0.000 |
|
|
3] Reserves & Surplus |
306.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Credit / (Debit) fair value change account (Net) |
0.118 |
0.002 |
0.016 |
|
|
NETWORTH |
13376.118 |
12000.002 |
11350.016 |
|
|
|
|
|
|
|
|
POLICYHOLDERS'
FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account (Net) |
(1.768) |
0.023 |
0.000 |
|
|
Policy Liabilities |
2738.573 |
1600.013 |
824.367 |
|
|
Insurance Reserves |
|
|
|
|
|
Linked Liabilities |
8061.363 |
7743.462 |
6453.822 |
|
|
Fair value change |
563.654 |
170.127 |
(128.755) |
|
|
Provision For Linked Liabilities |
8625.017 |
7913.589 |
6325.067 |
|
|
TOTAL BORROWING |
11361.822 |
9513.625 |
7149.434 |
|
|
|
|
|
|
|
|
Funds for Discontinued Policies |
|
|
|
|
|
Discontinued on account of non-payment of premium |
1103.933 |
561.777 |
124.486 |
|
|
Others |
-- |
-- |
-- |
|
|
Funds For Future Appropriations (Linked) |
15.557 |
42.239 |
50.042 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25857.430 |
22117.643 |
18673.978 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
120.924 |
104.809 |
86.602 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Shareholders' |
849.014 |
640.425 |
1591.674 |
|
|
Policyholders' |
2759.407 |
1631.604 |
854.216 |
|
|
Assets Held To Cover Linked Liabilities |
9744.506 |
8517.605 |
6499.595 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000
|
|
|
Cash & Bank Balances |
531.341 |
495.590 |
374.299 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
835.222 |
833.842 |
882.422 |
|
Total
Current Assets |
1366.563
|
1329.432
|
1256.721
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
435.036 |
728.971 |
|
|
Other Current Liabilities |
1009.480 |
316.903 |
269.970 |
|
|
Provisions |
16.691 |
18.632 |
23.051 |
|
Total
Current Liabilities |
1026.171
|
770.571
|
1021.992
|
|
|
Net Current Assets |
340.392 |
558.861 |
234.729 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
|
|
|
Debit Balance of Profit and Loss Account |
1330.465 |
1176.840 |
1007.286 |
|
|
Deficit in the Revenue Account [Policyholders' Account) |
10406.708 |
9487.499 |
8399.876 |
|
|
|
|
|
|
|
|
TOTAL |
25857.430 |
22117.643 |
18673.978 |
|
PROFIT
& LOSS ACCOUNT
SHAREHOLDERS’ ACCOUNT (NON-TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
||
|
|
Income From Investments |
|
|
|
||
|
|
|
(a) Interest, Dividends and Rent - Gross |
42.376 |
64.847 |
68.936 |
|
|
|
|
(b) Profit on sale/redemption of investments |
16.113 |
10.260 |
18.853 |
|
|
|
|
(c) (Loss on sale/redemption of investments) |
(0.978) |
(0.205) |
(103) |
|
|
|
|
(d) Transfer / Gain on revaluation / change in fair value |
0.000 |
0.000 |
0.000 |
|
|
|
|
(e) Amortisation of premium / discount on investments |
18.986 |
29.950 |
53.494 |
|
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
|
|
TOTAL |
76.497 |
104.852 |
141.180 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
Expenses other than those directly related to the
insurance business |
18.165 |
25.180 |
4.559 |
||
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
||
|
|
Provisions (Other than taxation) |
|
|
|
||
|
|
(a) For diminution in the value of investments (net) |
0.000 |
0.000 |
0.000 |
||
|
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
0.000 |
||
|
|
(c) Others |
0.000 |
0.000 |
0.000 |
||
|
|
Contribution to the Policyholders' Account (Technical Account) |
211.957 |
249.226 |
706.977 |
||
|
|
|
TOTAL |
230.122 |
274.406 |
711.536 |
|
|
|
|
|
|
|
||
|
|
PROFIT / (LOSS)
BEFORE TAX |
(153.625) |
(169.554) |
(570.356) |
||
|
|
|
|
|
|
||
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT / (LOSS)
AFTER TAX |
(153.625) |
(169.554) |
(570.356) |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1176.840) |
(1007.286) |
(436.930) |
||
|
|
|
|
|
|
||
|
|
BALANCE / (LOSS)
CARRIED TO THE B/S |
(1330.465) |
(1176.840) |
(1007.286) |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
(0.90) |
(1.10) |
(1.97) |
||
PROFIT
& LOSS ACCOUNT
POLICYHOLDER’S ACCOUNT (TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
4520.696 |
4305.028 |
4573.205 |
|
|
b) Reinsurance Ceded |
(221.506) |
(137.430) |
(100.072) |
|
|
c) Reinsurance accepted |
0.000 |
0.000 |
0.000 |
|
|
Sub-total |
4299.190 |
4167.598 |
4473.133 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
384.096 |
273.604 |
159.493 |
|
|
b) Profit on sale / Redemption of investments |
810.273 |
484.559 |
229.754 |
|
|
c) (Loss) on sale / Redemption of investments |
(502.690) |
(349.469) |
(361.523) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
563.653 |
170.127 |
(128.755) |
|
|
e) Amortisation of premium / discount on investments |
98.380 |
85.893 |
56.425 |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
a) contribution from the shareholders account |
211.957 |
249.226 |
706.977 |
|
|
b) Linked Income |
0.000 |
0.000 |
0.000 |
|
|
c) Appropriation / (Expropriation)
Adjustment |
0.000 |
0.000 |
(9.826) |
|
|
Total (A) |
5864.859 |
5081.538 |
5125.678 |
|
|
|
|
|
|
|
|
Commission |
200.456 |
162.643 |
247.890 |
|
|
Operating expenses related to insurance business |
2447.341 |
2451.217 |
3421.894 |
|
|
Provision for Doubtful debts |
30.312 |
44.395 |
5.121 |
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
|
Provision for tax |
|
|
|
|
|
(a) Income Tax |
0.000 |
(0.026) |
0.000 |
|
|
Provision (other than taxation) |
0.000 |
0.000 |
0.000 |
|
|
a) for diminution in value of investments (net) |
0.000 |
0.000 |
0.000 |
|
|
b) others |
0.000 |
0.000 |
0.000 |
|
|
Total (B) |
2678.109 |
2658.229 |
3674.905 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
1740.497 |
717.276 |
161.187 |
|
|
Interim Bonus Paid |
|
|
|
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
2406.520 |
2944.413 |
2670.334 |
|
|
b) (Amount ceded in Re-insurance) |
(14.376) |
(142.954) |
94.773 |
|
|
c) Amount accepted in Re-insurance |
0.000 |
0.000 |
0.000 |
|
|
Total (C) |
4132.641 |
3518.735 |
2926.294 |
|
|
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
(945.891) |
(1095.426) |
(1475.521) |
|
|
|
|
|
|
|
|
Appropriations |
|
|
|
|
|
Transfer to shareholders account |
0.000 |
0.000 |
0.000 |
|
|
Transfer to Balance being ‘Deficit in Revenue Account |
(919.209) |
(1087.623) |
(1493.577) |
|
|
Balance being funds for future appropriation |
(26.682) |
(7.803) |
18.056 |
|
|
Total (D) |
(945.891) |
(1095.426) |
(1475.521) |
|
|
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
|
a) interim Bonuses paid |
0.000 |
0.000 |
0.000 |
|
|
b) allocation of bonus to policyholders |
206.695 |
166.361 |
109.124 |
|
|
c) surplus/(Deficit) shown in the revenue account |
0.000 |
0.000 |
0.000 |
|
|
Total Surplus
[(a)+(b)+(c)] |
206.695 |
166.361 |
109.124 |
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 used in operating activities |
251.547 |
638.135 |
497.093 |
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 |
Yes |
|
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 |
BACKGROUND
Subject is a joint
venture between AEGON India Holding B.V, Religare Enterprises Limited and
Bennett Coleman and Company. Limited was incorporated on March 23, 2007 under
the Companies Act, 1956 (‘the Act’) to undertake and carry on the business of
life insurance business in India. The Company has obtained a registration from
the Insurance Regulatory and Development Authority (‘IRDA’) dated June 27, 2008
for carrying on the business of life insurance in India.
The Company’s life
insurance business comprises of Participating, consisting of Non Linked
business of Individual Insurance products and Pension Insurance products, and
Non Participating consisting of Non Linked business of Individual, Group and
Health Insurance and Linked business of Life, Pension and Group Gratuity. These
products also have riders attached to them such as Accidental Death, Dismemberment
and Disability benefit, Critical illness, Waiver of Premium on death / Critical
illness, Women Care, Total Permanent Disability, Term rider etc. These products
are distributed through individual agents, corporate agents, brokers, referral
partners and direct channel.
INDUSTRY OUTLOOK
2013-14 continued
to be slow for the Life Insurance industry, with the individual non-single
premium sales showing negative growth. There was de-growth of 3% for the
private sector. Slow-down in the economy coupled high interest rates did not
present a conducive environment for growth. The new product regulations rolled
out in 2013-14 requiring companies to comply with the guidelines by January 1,
2014 further caused transition challenges.
The share of the
private sector for financial year 2013-14 in the overall industry pie is around
32% (28% in Financial year 2012-13) on the basis of first year received premium
and 39% (39% in Financial year 2012-13) on the basis of first year received
individual non-single premium. 16 companies posted positive net income in
2012-13 as against 14 companies in 2010-11.
SEVENTH YEAR OF
BUSINESS OPERATIONS
The financial year
started with significant management efforts involved in restructuring the team.
The strategy was to drive focus on increasing active advisors through the year
and the earnings of the advisors, tie-ups with key accounts on the third party
distribution, scale up the direct and on-line volumes using affinity
partnerships and on-line sale of protection products, and focus on 13th month
persistency at channel level increasing reinstatement from the lapse base.
The first half of
the year was focused on re-establishing the structure of the team, reviewing
the business plan, exploring new strategic tie-ups and filing new products with
the Insurance Regulatory and Development Authority (the Authority). Several
property revised structure was put in place to support the renewal and drive
persistency focus, along with appropriate incentive alignment. During the year
the Company sold around 64,172 (Previous year 64,303) individual policies and
received, in respect of the same, first year business premium income of Rs.
1440.072 Million (Previous year Rs. 1236.096 Million registering a growth of
17%. The total received premium was Rs. 4520.696 Million (Previous year Rs.
4305.028 Million).
PRODUCT DEVELOPMENT
As part of the
product development strategy, the Company continues to focus on delivering
superior value to the end customer (i.e. policyholder). The Company had an
established range of unit linked, protection and participating products at the
start of the year.
The Authority
issued new product regulations to be complied by all life insurance companies
in the first half of the financial year. Significant effort was put in by the
Company to review most of the products and re-file the same to ensure
compliance with these regulations.
On the on-line
platform we launched the Guarantee product. The on-line protection product term
continued to be the flagship product for the on-line platform supported by
Maximize, during the first half of the year, which is a competitively priced
Unit linked product on the on-line space. Ideation continued through the year
to further strengthen the on-line product portfolio with several new products
filed for approval in the second half. These include return of premium, Income
replacement, Spouse coverage, and Cancer coverage products.
Further, in the
off-line space the Company launched the Guaranteed Growth Plan (GGP) with a
guaranteed return during the year replacing the limited edition Assured Returns
Plan (ARP) launched in the last quarter of financial year 2012-13. A rural term
plan with single premium was also launched in the last quarter of the financial
year. In addition to the aforesaid, regulation compliant versions of the
on-line plans (Health, Term), ‘With profits’ plans (EduCare Advantage, Flexi
Money Back Advantage, Guaranteed Income Advantage), Unit Linked plans (Future
Protect, Future Protect Plus, Rising Star) and Group plans (Group Term, Group
Gratuity, Group Credit Life, Group Leave Encashment) were launched.
As at March 31,
2014 the Company has 14 products which are open for sale on the individual
business complemented with 8 riders. The products include 3 unit linked
insurance products, 5 protection products including 1 health and 1 on-line term
(Term), 5 traditional plan products Including 3 traditional participating
products and 2 traditional nonparticipating product and one immediate annuity
plan. On the Group category, the Company has the Unit linked Gratuity product,
Group Term life, Group Credit life and a Group Leave Encashment product.
The Company will
continue to focus on developing innovative products through the current
financial year including customizing products for different channels to provide
the appropriate value proposition to each customer segment through different
channels. There would be a concerted focus on developing products for the
internet platform to drive innovation in E-sales and maintain the leadership
position.
BRANDING AND
MARKETING INITIATIVES
With the focus on
conserving capital, the Company kept a low profile on marketing campaigns,
largely confining the campaigns to BCCL properties such as print and radio.
Towards the end of the financial year the Company ran a short radio campaign
for the online plan savings plan ‘Guarantee’ launched in the last quarter.
Focused efforts
have been made through videos, press and published articles to create awareness
on the claims settlement approach adopted by the Company communicating the
commitment of the Company to pay each and every genuine claim.
The brand also
actively engaged with the press through the year leveraging multiple
opportunities in different geographies to create a credible platform for
dissemination of the brand message and properties.
The Company
website was further optimized during the year to improve search scores and
drive better traffic. Further development was done on the ‘direct to consumer’
branding platform in the on-line space with visibility spends being incurred
across web properties including the BCCL properties. The presence on digital
media in addition to the focus on driving on-line business has enabled maintain
brand saliency for the Company without direct spends.
Focused analytics
and customer need identification enabled the Company to achieve a cross sell
under the direct business of over 30%.
OPERATIONS
The Company
continues to operate a strong customer-centric operation with strong focus on
customer satisfaction. During the year, operations enhanced self-service
capability for the customers by providing a pull-based ‘SMS’ service.
The renewal and
operations structure has been consolidated at the branches to establish a better
connect with the customers and help
improve the renewal and persistency. This includes the verification call to be
given by the operations personnel at the branches when on-boarding a new
customer to ensure that the customer is fully aware about the product being
purchased. In addition to the tie-up with Axis Bank to facilitate collection of
renewal premium by the customers across India, a tie-up has been entered with
Yes Bank for a similar facility across all their branches pan-India.
During the year,
the Company launched the NPS (Net Promoter Score) survey in-house by conducting
surveys of customers across channels for new and vintage customers. This survey
indicates the measure of customer loyalty for the Company and will enable the
Company to consider the feedback to improve the services and enhance customer
loyalty.
The roll-out of
the new compliant products has been a priority for the operations team to
ensure these are duly launched on a timely basis to support distribution. With
most of the products being re-filed to be compliant with the new regulations,
the updated products have been launched in a quick series of succession in the
second half of the year.
Significant focus
has been given to a fair and transparent approach to assessing claims received
from our customers. A professional expert with rich experience in assessing
claims in the life insurance business has been empaneled by the Company to
provide an independent perspective to the claims assessment, further endorsing
the Company’s endeavour to pay all genuine claims to the policyholders.
Information
technology continues to be the backbone, for providing better customer
centricity approach and also in taking products to our customers, prospects and
distributors. Some of the important initiatives the company has done during the
year include upgrade of both primary and secondary data centers under a service
model and consolidation of multiple vendors into one for application
development and maintenance.
INDEX OF CHARGES: NO
CHARGES EXIST FOR THE COMPANY
CONTINGENT
LIABILITIES:
(Rs. in million)
|
Particular |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
Statutory demands/ liabilities in dispute, not provided for |
130.506 |
1.968 |
|
Others (In relation to Claims against policies) |
30.413 |
26.663 |
|
Total |
160.919 |
28.631 |
FIXED ASSETS
v
Tangible
Assets
· Leasehold improvements
· Furniture and Fittings
· Information Technology Equipment
· Vehicles
· Office Equipment
v
Intangible
Assets
· Goodwill
·
Software
Website Details
Press Releases
Financial Services
firm Religare Enterprises today said will exit Aegon Religare Life Insurance
Company by selling its stake to existing partner Bennett, Coleman and Company
Limited of the Netherlands.
The existing joint venture is between Religare, BCCL and Aegon. Religare holds
44 per cent equity in the JV. It has reached a definitive agreement with BCCL
to acquire Religare's shareholding in the JV, a statement said.
Aegon would increase its stake in the JV Company to 49 per cent while BCCL
would acquire the entire 44 per cent from Religare, it said.
This transaction is subject to necessary and appropriate regulatory approvals
of CCI, FIPB and IRDA, it added.
Aegon Religare Life Insurance Company started operations in 2008.
With this proposed deal, the foreign partner would have 49 per cent stake, the
cap fixed in the sector by Parliament in March. It passed the Insurance Laws
(Amendment) Bill, 2015 which seeks to increase foreign investment in private
sector companies to 49 per cent from the existing 26 per cent, among other
things.
Many foreign partners of both life an non-life insurance companies have
announced raising their stake to 49 per cent. Some of them are in the process
of seeking various regulatory approval.
Foreign partners of companies like Max Bupa, SBI General have already announced
their intent to raise their stake in the joint venture.
Recently, the government approved French insurance firm AXA raising stake in
its life insurance JV with Bharti Group to 49 per cent for Rs 8586.000
Million.
The French firm has also been permitted to raise stake in the general insurance
joint venture with Bharti. This will entail capital flow of Rs 4314.000
Million.
Together, AXA's FDI in Bharti group will be worth Rs 12900.000 Million.
More foreign partners are expected come forward and raise stake in the Indian
insurance business.
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.66.09 |
|
|
1 |
Rs.100.88 |
|
Euro |
1 |
Rs.73.95 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
AMR |
|
|
|
|
Report Prepared
by : |
ART |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILITY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.