|
|
|
MIRA INFORM REPORT
|
Report No. : |
500479 |
|
Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
INDIAFIRST LIFE INSURANCE COMPANY LIMITED (w.e.f. 16.09.2009) |
|
|
|
|
Formerly Known
As : |
BARODA L AND G LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra |
|
Tel. No.: |
91-22-33259678 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
19.06.2008 |
|
|
|
|
Com. Reg. No.: |
11-183679 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 6250.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U66010MH2008PLC183679 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
Not Divulged |
|
|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCB6215G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
The Company carries on business in the areas of life
Insurance, health insurance and pensions. [Registered Activity] |
|
|
|
|
No. of Employees
: |
1377 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject incorporated in the year 2008. It is a joint venture between Bank
of Baroda (holding 44% stake), Andhra Bank (holding 30% stake) and Legal and
General Middle East Limited (Holding 26% stake). As per the financial records of 2017, the company has achieved gross
premium of INR 22651.7 million and has gained fair profitability margin. The company possesses sound financial position marked by strong
capital structure. The rating takes into consideration the strength that the company
derives from its promoters, Bank of Baroda, Andhra Bank and Legal and General
Middle East Limited. Rating is constrained on account of low reserve base of the company. Business is active. Payment seems to be slow but correct. In view of aforesaid, the company can be considered for business
dealings at usual trade terms and condition. |
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
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 29.03.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
Management Non-Cooperative (91-22-33259678)
91-22-39418700 – Not Working.
LOCATIONS
|
Registered Office : |
301, ‘B’ Wing, The Qube, Infinity Park, Dindoshi-Film City Road, Malad
(East), Mumbai – 400097, Maharashtra, India |
|
Tel. No.: |
91-22-39418700 / 33259678 |
|
Fax No.: |
91-22-33259600 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Ms. Vishakha Rajesh Maheshwari |
|
Designation : |
Managing Director |
|
Address : |
201 B Wing, Harshvardhan Apartmens, Saki Vihar Road, Andheri (East) Mumbai – 400072, Maharashtra, India |
|
Date of Appointment : |
03.03.2015 |
|
DIN No.: |
07108012 |
|
|
|
|
Name : |
Mr. Abhijit Sen |
|
Designation : |
Additional Director |
|
Address : |
92 , Grand Paradi,572 Dady Seth Hill, August Kranti Marg, Mumbai – 400036, Maharashtra, India |
|
Date of Appointment : |
31.01.2017 |
|
DIN No.: |
00002593 |
|
|
|
|
Name : |
Mr. Simon Jonathan Burke |
|
Designation : |
Additional Director |
|
Address : |
68a, Sydney Street, London, Sw3 6ps, United Kingdom United Kingdom NA GB |
|
Date of Appointment : |
12.12.2016 |
|
DIN No.: |
06759759 |
|
|
|
|
Name : |
Mr. Krishna Venkat Angara |
|
Designation : |
Director |
|
Address : |
4, Southlands, 1st Floor, 177 Upper Colaba Road Near Colaba Post Office, Mumbai – 400005, Maharashtra, India |
|
Date of Appointment : |
15.09.2015 |
|
DIN No.: |
03360578 |
|
|
|
|
Name : |
Mr. Palamadai Sundararajan Jayakumar |
|
Designation : |
Additional Director |
|
Address : |
Samshiba 12th And 13th Floor Nargis Dutt Road, Pali Hill, Bandra (West) Mumbai – 400050, Maharashtra, India |
|
Date of Appointment : |
03.02.2016 |
|
DIN No.: |
01173236 |
|
|
|
|
Name : |
Mr. Uday Sankar Roy |
|
Designation : |
Director |
|
Address : |
54 Hemanta Mukherjee Sa, Hemantika 1st, A1 Lansdowne, Kolkata – 700029, West Bengal, India |
|
Date of Appointment : |
15.09.2015 |
|
DIN No.: |
00424332 |
|
|
|
|
Name : |
Mr. Ericfrancis Harold Tucker |
|
Designation : |
Nominee Director |
|
Address : |
Menezes Wadi, Lourdes Colony, Orlem, Malad (West), Mumbai – 400064, Maharashtra, India |
|
Date of Appointment : |
04.04.2016 |
|
DIN No.: |
07484380 |
|
|
|
|
Name : |
Mr. Alok Sureshchandra Vajpeyi |
|
Designation : |
Additional Director |
|
Address : |
2201/2202, Marathon Next Gen., Era-III Veer Santaji MArg,
Lower Parel (West), Mumbai – 400013, Maharashtra, India |
|
Date of Appointment : |
19.12.2017 |
|
DIN No.: |
00019098 |
|
|
|
|
Name : |
Mr. Ashok Kumar Garg |
|
Designation : |
Nominee Director |
|
Address : |
Flat No. B-4, Palacimo CHS Limited, 45 FC and 45 FB,
Silver Oak Estate, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
|
|
Date of Appointment : |
26.07.2017 |
|
DIN No.: |
07633091 |
|
|
|
|
Name : |
Mr. Krishnamurty Venkata Varanasi |
|
Designation : |
Additional Director |
|
Address : |
H No. 1-4-879/54-55, Surya Residency, Flat No. 201 Gandhinagar, Opposite Vijaya Bank, Hyderabad – 500018, Telangana, India |
|
Date of Appointment : |
07.12.2017 |
|
DIN No.: |
07990428 |
KEY EXECUTIVES
|
Name : |
K R Viswanarayan |
|
Designation : |
Company Secretary |
|
Address : |
D-202, Priyamvadha, Vaithara Nagar, Nahur Road, Mulund (West) Mumbai -400080, Maharashtra, India |
|
Date of Birth/Age : |
15.09.1960 |
|
Date of Appointment : |
27.04.2013 |
|
PAN No.: |
AADPR4994H |
|
|
|
|
Name : |
Mr. Satishwar Balakrishnan |
|
Designation : |
Chief Financial Officer |
|
Address : |
G-1, A/23, Happy Valley Homes, Manpada, Thane – 400607, Maharashtra, India |
|
Date of Appointment : |
22.01.2016 |
|
PAN No.: |
AFPPB1974A |
MAJOR SHAREHOLDERS
AS ON 27.09.2017
|
Names of Shareholders |
|
No. of Shares |
|
Bank of Baroda |
|
274999970 |
|
O.K. Kaul as a nominee of Bank of Baroda |
|
10 |
|
Nagesh Kumar Srivastava as a nominee of Bank of Baroda |
|
10 |
|
Eric Tucker as a nominee of Bank of Baroda |
|
10 |
|
Andhra Bank |
|
187499980 |
|
Y. Amarnath as a nominee of Andhra Bank |
|
10 |
|
R. Padmanabhan as a nominee of Andhra Bank |
|
10 |
|
Legal and General Middle East Limited |
|
162500000 |
|
|
|
|
|
Total |
|
625000000 |
Equity Share Break up (Percentage of Total Equity)
AS ON 27.09.2017
|
Category |
Percentage |
|
Promoters [Banks] |
74.00 |
|
Promoters [Foreign
Institutional Investors] |
26.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company carries on business in the areas of life
Insurance, health insurance and pensions. [Registered Activity] |
||||
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Products / Services
: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
||||
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||||
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Imports : |
Not Divulged |
||||
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|
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||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
1377 (Approximately) |
||||||||||||||||||||||
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|
||||||||||||||||||||||
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Bankers : |
|
|
Auditors : |
|
|
Name : |
D. R. Mohnot and Company Chartered Accountants |
|
Address : |
H.O. - B-1, Nakshtra Pride, C-35A, Lajpat Marg, C-Scheme, Jaipur –
302001, Rajasthan, India |
|
PAN No.: |
AACFD1315R |
|
|
|
|
Name : |
S K Patodia and Associates Chartered Accountants |
|
Address : |
Shree Shakambhari Corporate Park, Plot No.156-158, Chakravarti Ashok
Complex, J. B. Nagar, Andheri (East), Mumbai – 400099, Maharashtra,
India |
|
PAN No.: |
ABIFS7708N |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Promoter shareholders : |
·
Bank of Baroda ·
Andhra Bank ·
Legal and General Group |
|
|
|
|
Associate company : |
·
Baroda Pioneer Mutual Fund ·
Baroda Capital Markets Limited |
CAPITAL STRUCTURE
AS ON 27.09.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
INR 10/- each |
INR 10000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
625000000 |
Equity Shares |
INR 10/- each |
INR 6250.000 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
6250.000 |
6250.000 |
4750.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1300.000 |
1300.000 |
1300.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] credit/(Debit) / Fair
Value Change account |
2.502 |
1.270 |
0.000 |
|
|
Sub Total (a) |
7552.502 |
7551.270 |
6050.000 |
|
|
|
|
|
|
|
|
Borrowings |
-- |
-- |
-- |
|
|
Sub Total (b) |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
POLICYHOLDERS
FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
113.525 |
(2.841) |
2.993 |
|
|
Policy Liabilities |
67420.605 |
51856.794 |
40577.664 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
Provision for linked liabilities |
31542.275 |
29180.655 |
32467.614 |
|
|
Funds for Discontinued Policies |
3002.574 |
3292.990 |
3148.475 |
|
|
Sub Total (c) |
102078.979 |
84327.598 |
76196.746 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
-- |
-- |
338.931 |
|
|
Funds for Future Appropriation |
284.460 |
168.610 |
0.000 |
|
|
Sub Total (d) |
284.460 |
168.610 |
338.931 |
|
|
|
|
|
|
|
|
TOTAL (e) = (a)+(b)+(c)+(d) |
109915.941 |
92047.478 |
82585.677 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
|
|
|
Shareholders |
4578.530 |
5956.131 |
4667.861 |
|
|
Policyholders |
66996.365 |
50539.392 |
39357.673 |
|
|
Assets held to cover linked liabilities
|
34544.850 |
32473.645 |
35956.019 |
|
|
Loans |
51.641 |
83.284 |
78.543 |
|
|
Fixed Assets |
182.583 |
118.527 |
128.606 |
|
|
Sub Total (f) |
106353.969 |
89170.979 |
80188.702 |
|
|
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
|
|
Cash & Bank Balances |
1005.370
|
923.468
|
587.030
|
|
|
Advances & Other Assets |
3888.346
|
2268.979
|
2051.832
|
|
Total
Current Assets |
4893.716
|
3192.447
|
2638.862
|
|
|
Less :
CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3360.142
|
2688.270
|
2712.318
|
|
|
Provisions |
18.042
|
25.785
|
4.945
|
|
Sub Total (h) |
3378.184
|
2714.055
|
2717.263
|
|
|
Net Current Assets/
(Liabilities) (i) = (g)–(h) |
1515.532
|
478.393
|
(78.401)
|
|
|
|
|
|
|
|
|
Debit balance in Profit and Loss Account (Shareholder account |
2046.440 |
2398.106 |
2475.376 |
|
|
Sub Total (j) |
2046.440 |
2398.106 |
2475.376 |
|
|
|
|
|
|
|
|
TOTAL (k) =
(f)+(i)+(j) |
109915.941 |
92047.478 |
82585.677 |
|
PROFIT
& LOSS ACCOUNT [NON-TECHNICAL ACCOUNT]
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
Amount
Transferred from Policy holders Account [Technical Account] |
628.719 |
223.289 |
193.070 |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend |
364.595 |
331.841 |
257.953 |
|
b) Profit on sale / Redemption of investments |
35.055 |
1.471 |
16.579 |
|
c) (Loss) on sale / Redemption of investments |
(0.004) |
-- |
(3.641) |
|
e) Amortisation of premium/ discount on investments |
71.192 |
49.994 |
74.939 |
|
|
|
|
|
|
Other Income |
11.103 |
10.438 |
10.594 |
|
|
|
|
|
|
Sub-Total (A) |
1110.660 |
617.033 |
549.494 |
|
|
|
|
|
|
Expense other than those directly related to the insurance
business |
62.193 |
25.411 |
61.409 |
|
|
|
|
|
|
Bad debts written off |
-- |
-- |
-- |
|
|
|
|
|
|
Provision (other
than taxation) |
|
|
|
|
a) for diminution in value of investments (net) |
-- |
-- |
-- |
|
b) Provision for doubtful debts |
0.630 |
-- |
-- |
|
b) others |
-- |
-- |
-- |
|
Prior Period Expenses |
-- |
-- |
-- |
|
|
|
|
|
|
Amount transferred to the Policyholders Account |
696.171 |
514.352 |
419.195 |
|
Total (B) |
758.994 |
539.763 |
480.604 |
|
|
|
|
|
|
Profit/
(Loss) Before Tax |
351.666 |
77.270 |
68.890 |
|
|
|
|
|
|
Provision for tax |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Profit/ (Loss)
After Tax |
351.666 |
77.270 |
68.890 |
|
|
|
|
|
|
Appropriations |
|
|
|
|
Balance at the beginning of the year period |
(2398.106) |
(2475.376) |
(2544.265) |
|
Interim dividend paid during the year period |
-- |
-- |
-- |
|
Proposed final dividend |
-- |
-- |
-- |
|
Dividend distribution tax |
-- |
-- |
-- |
|
Transfer to reserves other account |
-- |
-- |
-- |
|
Loss carried to
Balance Sheet |
(2398.106) |
(2398.106) |
(2475.376) |
|
|
|
|
|
|
Earnings per share
[Basic and Diluted, Face value INR 10] |
0.56 |
0.14 |
0.15 |
REVENUE
ACCOUNT (TECHNICAL ACCOUNT)
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
|
Premium Earned –
Net |
|
|
|
|
a) Premium |
|
19674.000 |
20341.074 |
|
b) Reinsurance Ceded |
|
(303.176) |
(115.377) |
|
c) Reinsurance accepted |
|
-- |
20225.697-- |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend and Rent – Gross |
|
4764.490 |
4100.897 |
|
b) Profit on sale / Redemption of investments |
|
2535.664 |
1850.502 |
|
c) (Loss) on sale / Redemption of investments |
|
(366.991) |
(42.820) |
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
|
(3235.168) |
3900.171 |
|
e) Amortisation of premium/ discount on investments |
|
485.851 |
549.030 |
|
|
|
|
|
|
Other Income |
|
|
|
|
Miscellaneous Income |
|
2.041 |
0.538 |
|
Contribution from shareholder Account |
|
514.352 |
419.195 |
|
Sub-Total (A) |
|
24071.063 |
31003.211 |
|
|
|
|
|
|
Commission |
|
398.140 |
365.494 |
|
Operating expenses related to insurance business |
|
1907.495 |
1930.685 |
|
Provision for Doubtful debts |
|
-- |
-- |
|
Bad debts written off |
|
-- |
-- |
|
Provision for tax |
|
-- |
-- |
|
Provision (other
than taxation) |
|
-- |
-- |
|
a) for diminution in value of investments (net) |
|
-- |
-- |
|
b) others |
|
-- |
-- |
|
Service tax charge on linked charges |
|
154.612 |
157.782 |
|
Total (B) |
|
2460.247 |
2453.961 |
|
|
|
|
|
|
Benefits paid (Net) |
|
13421.160 |
12937.995 |
|
Interim Bonuses Paid |
|
-- |
-- |
|
Change in
valuation of liabilities in respect of life policies |
|
|
|
|
a) Gross |
|
11279.130 |
7796.428 |
|
b) Fund Reserve |
|
(3286.959) |
6309.860 |
|
c) Discount fund |
|
144.516 |
1550.765 |
|
d) Amount ceded in Re-insurance |
|
-- |
-- |
|
e) Amount accepted in Re-insurance |
|
-- |
-- |
|
Total (C) |
|
21557.847 |
28595.048 |
|
|
|
|
|
|
Surplus /
(Deficit) (D)= (A)-(B)-(C) |
|
|
|
|
Appropriations |
|
|
|
|
Transfer to shareholders account |
|
223.289 |
193.070 |
|
Transfer to other reserves |
|
-- |
-- |
|
Funds for future Appropriation – Provision for Linked Policies
unlikely to be reviewed. |
|
(338.930) |
(238.869) |
|
Balance being funds for future appropriation |
|
168.610 |
-- |
|
Total (D) |
|
52.969 |
(45.799) |
|
|
|
|
|
|
The Break-up for
the surplus as below |
|
|
|
|
a) Interim Bonuses Paid |
|
-- |
-- |
|
b) Allocation of Bonus to Policyholders |
|
241.389 |
188.382 |
|
c) Surplus shown in the Revenue Account |
|
52.969 |
(45.799) |
|
Total surplus |
|
294.358 |
142.583 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flow from (used in) operations |
NA |
NA |
NA |
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 |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
No |
|
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 EXISTS FOR COMPANY
Background
The Company, headquartered at Mumbai, had commenced operations on November 16, 2009, after receiving the license to transact life insurance business in India from the Insurance Regulatory and Development Authority (‘IRDA’) on November 05, 2009. The license is in force as at March 31, 2017.
The Company is a joint venture between Bank of Baroda (44 percent), Andhra Bank (30 percent) and Legal and General, Middle East., subsidiary of Legal and General, UK (26 percent).
The Company carries on business in the areas of life Insurance, health insurance and pension. This business spans across individual and group products and covers participating, non-participating and unit linked lines of business. Riders covering additional benefits are offered under these products. These products are distributed through individual agents, corporate agents, banks, brokers and the company's proprietary sales force.
FINANCIAL PERFORMANCE
During the Financial Year ended March 31, 2017, the Company recorded a Profit of INR 351.700 million. The profit is largely on account of consistent revenue supported by growth in the traditional business coupled with expense management and improved employee productivity. The gross premium income of the organisation is INR 22651.700 million.
The total assets under management (AUM) as on March 31, 2017 were INR 108580.000 million. The ability to provide strong investment performance 'In all market conditions is a key strength of the Company.
OUTLOOK
Indian Economy - The year gone by:
At the onset of F.Y. 2016-17, IMF had projected a GDP growth rate of 7.5% for India in 2016-17, projecting us as the fastest growing major economy in the World. Also; World Bank had projected a strong 7.8% GOP growth rate for India as against 6.7% of China in 2016-17, thus placing us ahead of China and making India a bright spot in global economic development.
Supporting the same, unlike the past two years, this year witnessed a normalisation in rainfall at just short of the 100% long period average. This helped Indian Economy to expand at the forecasted rate in the first half of the year with GDP growth rates for 01 and 02 being an encouraging 7.2% and 7.4% respectively. This robust growth was also supported by Manufacturing and Services PMI which had been consistently above 50 index points indicating a positive industrial trend and business environment.
Towards the second half of the year came the de-monetisation drive led by the government which caused a short-term uncertainty in the economy which has led the IMF to lower the GDP growth rate expectation by 40 basis points to 7.1% for F.Y. 2016M 17.
However, the de-monetisation drive brought about a new era for Banking and Financial Services Industry where the focus how now shifted from driving a cash-heavy model to a cashless one. Going forward, the strategy is to mobilise the deposits of approximately INR 14 lac Crores which has flown into the banking system thus encouraging further penetration of financial products such as Mutual Funds, Insurance, National Pension Scheme and other financial instruments in the coming months.
Life Insurance Industry
In F.Y. 2016 -17, overall insurance industry grew by 26% YoY comprising ·of Retail premium growth of 33% and Group Premium growth of 21% on the total new business premium.
The growth is largely attributed to retail premium segment which grew by 33% YoY comprising of private players put together 26% and L1C standalone 39%.
Indian Economy Outlook F.Y. 2017-18:
India is today one of the most vibrant global economies, on the back of robust banking, manufacturing and services sectors. Continuing the momentum, the economy GOP is expected to grow at a healthy pace of 7.2% in FY 18 as per IMF estimates. Over the medium run, the implementation of the Goods and Services Tax (GST), follow-up to demonetisation, and enacting other structural reforms should take the economy towards its potential real GOP growth of 8 per cent to 10 per cent.
Among potential risks for the Indian economy, the assessment notes risks from higher oil prices as Indian imports nearly 80% of it fossil fuel needs. A $1 increase in oil prices raises the import bill by nearly $2 billion.
Financial Services Industry Outlook F.Y.
2017-18:
The country is projected to become the fifth largest banking sector globally by 2020. IMF also expects bank credit to grow at a Compound Annual Growth Rate (CAGR) of 17 per cent in the medium term leading to better credit penetration.
Life Insurance Council, the industry body of life insurers in the country also projects a CAGR of 12-15 % over the next few years for the financial services segment.
PRESS RELEASE:
ERGO, MANULIFE IN
TALKS TO ACQUIRE STAKE IN INDIAFIRST
January 15 2018
Mumbai: Global insurance firms Ergo International AG and Manulife Financial Corp. have started separate discussions to acquire a 26% stake in IndiaFirst Life Insurance Co. Limited, according to two people aware of the development.
UK’s Legal & General Group Plc plans to sell its 26% stake in IndiaFirst Life Insurance, and has hired investment bank Ambit Corporate Finance Pvt. Ltd to find a buyer for it.
IndiaFirst Life Insurance is a joint venture between Bank of Baroda, which owns 44% stake, Andhra Bank, which holds 30%, and Legal & General.
“The discussions are at initial stages and no conclusions were made over the valuation of the insurance firm,” said one of the two people on condition of anonymity. None of the other investors plan to sell their stakes in the insurer, he added.
“We have committed partners who are participative and supportive at the board. The shareholders are happy with the retail growth rate of 80% YoY (year-on-year) and are involved in the business. IndiaFirst Life cannot comment on any rumors or speculations in the market about shareholders,” said R.M. Vishakha, managing director and chief executive, IndiaFirst Life Insurance Co. Limited
A Legal & General Group Plc spokesperson declined to comment. Mails sent to Manulife and Ergo did not elicit any responses till press time. Ergo already has a presence in India through its joint venture—HDFC ERGO General Insurance Co. Limited Toronto-based Manulife had over $806 billion in assets under management and administration, as of 30 September 2017, according to a company statement.
If the deal materialises, it will make the entry for Manulife in India. Manulife with its principal operations in Asia, Canada and the US has presence in all top markets in Asia—China, Hong Kong, Japan, Singapore, Indonesia and Vietnam.
“The life insurance sector has high growth potential across the three large opportunities—channelising long-term household savings, providing protection and leveraging customer base of affinity groups (banks, retail, telecom),” said Shashwat Sharma, partner and head, insurance, KPMG, in India. “As over 90% of India’s workforce is either self- employed or in the informal sector, the life insurance companies have a unique opportunity to penetrate in the protection space which is currently highly under-served and untapped in India.”
Last year had seen the listing of two life insurance companies—SBI Life Insurance Co. Limited and HDFC Standard Life Insurance Co. Limited
Four IPOs among the largest IPOs which hit the market last year were from the insurance sector, showing the investors’ interest in the sector.
Last year witnessed four $1 billion plus IPOs—General Insurance Corp. of India (INR 111750.000 million), The New India Assurance Co. Limited (INR 94669.000 million), HDFC Standard Life Insurance Co. Limited (INR 86950.000 million) and SBI Life Insurance Co. Limited (INR 83640.000 million).
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 records 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
|
INR |
|
US Dollar |
1 |
INR 65.04 |
|
|
1 |
INR 92.28 |
|
Euro |
1 |
INR 80.62 |
INFORMATION DETAILS
|
Information
Gathered by : |
SHW |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.