|
|
|
MIRA INFORM REPORT
|
Report No. : |
508152 |
|
Report Date : |
09.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (w.e.f. 11.08.2017) |
|
|
|
|
Formerly Known
As : |
BIRLA SUN LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
One Indiabulls
Centre, Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senpati
Bapat Marg, Elphinstone Road, Mumbai – 400013, Maharashtra |
|
Tel. No.: |
91-22-67239100 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
04.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128110 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 19012.080 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH2000PLC128110 |
|
|
|
|
IEC No.: |
Not Divulged |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCB4623J |
|
|
|
|
GSTIN/UIN : |
Not Divulged |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in Providing Life Insurance Services.
[Registered Activity] |
|
|
|
|
No. of Employees
: |
Information declined by the management |
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 : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a subsidiary of Aditya Birla Capital Limited (ABCL) incorporated in the year 2000. It is engaged in providing life insurance services. For the financial year ended 2017, the company has observed a significant increase in its total premium compared to the previous year. Rating derives strength from significant capital structure, managerial and operational support from its parent company along with decent net worth position. ABSLI has a nation-wide distribution presence through 433 branches, 6 bancassurance partners, 7 distribution channels, over 80,000 direct selling agents, other Corporate Agents and Brokers and through its website. The company has over 8,000 employees and more than 16 lac active customers. However, rating is constrained on account of company’s continuous decline in the profit, low reserves position along with intense competition and challenge to be faced by the company in insurance sector. As per the press release, “Dear Money” is the very first campaign to be launched posts the formation of Aditya Birla Capital, which is the holding company of all the financial services businesses of the Aditya Birla Group and one of the leading financial services players in India. With this launch, all ABCL businesses, inclusive of Aditya Birla Finance Limited, Aditya Birla Sunlife Mutual Fund, Aditya Birla SunLife Insurance and Aditya Birla Health Insurance, have come together as one to serve the end-to-end financial needs of its retail and corporate customers through one brand. Business is active. Payments are reported to be regular and as per commitments. 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
31-03-2018.
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 09.05.2018
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 (Tel. No.: 91-22-67239100)
LOCATIONS
|
Registered Office : |
One Indiabulls
Centre, Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senpati
Bapat Marg, Elphinstone Road, Mumbai – 400013, Maharashtra, India |
|
Tel No.: |
91-22-67239100 |
|
Fax No.: |
91-22-67239220 |
|
E-Mail : |
customerservice@birlasunlife.com |
|
Website: |
|
|
|
|
|
Corporate Office : |
5th and 6th Floor, G-Corp Tech Park, Ghodbunder Road, Near Kasar Wadavali Police Station, Thane (West), Thane - 400601, Maharashtra, India |
|
Tel. No.: |
91-22-39961000 |
|
|
|
|
Branch Office : |
Unit No.101, A Wing, Great Chambers, Near Gurdwara, Andheri Kurla Road, Andheri (East), Mumbai – 400069, Maharashtra, India |
|
Tel. No.: |
91-22-67037871/74 |
|
|
|
|
Other Branch Offices : |
Located at: ·
West Bengal ·
Sikkim ·
Assam ·
Nagaland ·
Arunachal Pradesh ·
Meghalaya ·
Tripura ·
Manipur ·
Mizoram ·
Orissa ·
Bihar ·
Jharkhand ·
Haryana ·
Punjab ·
Delhi ·
Uttar Pradesh ·
Uttarakhand ·
Himachal Pradesh ·
Chandigarh ·
Jammu and Kashmir ·
Madhya Pradesh ·
Kerala ·
Andhra Pradesh ·
Tamilnadu ·
Karnataka ·
Telangana ·
Mumbai ·
Maharashtra ·
Chhattisgarh ·
Goa ·
Gujarat ·
Rajasthan |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Pankaj Jawaharlal Razdan |
|
Designation : |
Managing Director |
|
Address : |
Pinnaacle D'dreams 301 and 302, 3rd Floor Jvpd Scheme, Juhu, Mumbai-400049, Maharashtra, India |
|
Date of Appointment : |
01.01.2014 |
|
DIN No.: |
00061240 |
|
|
|
|
Name : |
Mr. Haigreve Khaitan |
|
Designation : |
Director |
|
Address : |
1104 Sterling Seaface, Dr. Annie Besant
Road, Worli, Mumbai - 400018, Maharashtra, India |
|
Date of Appointment : |
30.01.2015 |
|
DIN No.: |
00005290 |
|
|
|
|
Name : |
Mr. Bishwanath Mangilal Puranmalka |
|
Designation : |
Director |
|
Address : |
Antariksha, Flat No.182 19th Floor, 95/96,
Kakasaheb Gadgil Marg, Prabhadevi, Mumbai – 400025, |
|
Date of Birth/Age : |
02.11.1935 |
|
Date of Appointment : |
04.08.2000 |
|
DIN No.: |
00007432 |
|
|
|
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Director |
|
Address : |
Mangal Adityayan, 20 Carmichel Road Behind
Jaslok Hosital, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
14.06.1967 |
|
Date of Appointment : |
04.08.2000 |
|
DIN No.: |
00012813 |
|
|
|
|
Name : |
Pinky Atul Mehta |
|
Designation : |
Additional Director |
|
Address : |
602, Shree Vishwas Chsl, 6th Floor, Sir P M Road,
Near Kunku Wadi, Hanuman Temple Vile Par Le (East), Mumbai-400057,
Maharashtra, India |
|
Date of Appointment : |
16.12.2016 |
|
DIN No.: |
00020429 |
|
|
|
|
Name : |
Mr. Shobhan Madhukant Thakore |
|
Designation : |
Director |
|
Address : |
Flat No. B-114, Floor 11, Plot 696B,
Somerset House, 61-G, Off Bhulabhai Desai Road, Mumbai - 400026, Maharashtra,
India |
|
Date of Appointment : |
28.10.2015 |
|
DIN No.: |
00031788 |
|
|
|
|
Name : |
Mr. Ajay Srinivasan |
|
Designation : |
Director |
|
Address : |
2601 / 2603 Vivarea Bldg Jacob Circle,
Mahalaxmi, Mumbai – 400050, Maharashtra, India |
|
Date of Birth/Age : |
02.11.1963 |
|
Date of Appointment : |
01.08.2007 |
|
DIN No.: |
00121181 |
|
|
|
|
Name : |
Mr. Sandeep Asthana |
|
Designation : |
Director |
|
Address : |
A-403, Golden Oak, Hiranandani Gardens,
Powai, Mumbai - 400076, Maharashtra, India |
|
Date of Appointment : |
01.08.2014 |
|
DIN No.: |
00401858 |
|
|
|
|
Name : |
Colm Joseph Freyne |
|
Designation : |
Casual Vacancy Director |
|
Address : |
60 Bannockburn Avenue, Toronto, Ontario
M5M2N1 CA |
|
Date of Appointment : |
25.10.2016 |
|
DIN No.: |
07627357 |
|
|
|
|
Name : |
Mr. Arun Kumar Adhikari |
|
Designation : |
Additional Director |
|
Address : |
903 A Wing, 9th Floor, Vivarea Sane Guruji Marg, Mahalaxmi (East), Mumbai – 400011, Maharashtra, India |
|
Date of Appointment : |
27.10.2017 |
|
DIN No.: |
00591057 |
|
|
|
|
Name : |
Claude Alan Accum |
|
Designation : |
Additional Director |
|
Address : |
Flat A, 35th Floor, Tower 3, Dynasty Court, No. 23 Old Peak Road, Hong Kong 999999 Hong Kong |
|
Date of Appointment : |
25.07.2017 |
|
DIN No.: |
07882135 |
KEY EXECUTIVES
|
Name : |
Mr. Amber Gupta |
|
Designation : |
Company Secretary |
|
Address : |
C 506 Udhyan III CHS Limited Udhyan Complex Off, Military Road, Marol, Andheri (East), Mumbai - 400072, Maharashtra, India |
|
Date of Appointment : |
29.08.2014 |
|
PAN No.: |
AENPG6177P |
|
|
|
|
Name : |
Mr. Amit Jain |
|
Designation : |
Chief Financial Officer |
|
Address : |
B 102, Shikhar Kunj, Upper Govind Nagar, Malad (East) Mumbai – 400097, Maharashtra, India |
|
Date of Appointment : |
01.08.2014 |
|
PAN No.: |
AAHPJ7464J |
|
|
|
|
Name : |
Mr. N. N. Jambusaria |
|
Designation : |
Expert /Representative of Customers |
|
|
|
|
Name : |
Mr. Pankaj Razdan |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Amit Kumar Singh |
|
Designation : |
Chief Actuarial Officer |
|
|
|
|
Name : |
Mr. Gayatri Nathan |
|
Designation : |
Head - Customer Service and Claims |
|
|
|
|
Name : |
Mr. Lalit Vermani |
|
Designation : |
Chief Legal, Risk and Compliance Officer |
|
|
|
|
Name : |
Mr. Vikas Seth |
|
Designation : |
Chief Distribution Officer |
|
|
|
|
Name : |
Mr. Ashok Suvarna |
|
Designation : |
Chief Operations Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2017
|
Names of Shareholders |
|
No. of Shares |
|
Aditya Birla Financial Services Limited |
|
969616075 |
|
Sun Life Financials (India) Insurance Investments Inc. |
|
931591920 |
|
Niraj Maheshwari as a nominee of Aditya Birla Financial Services
Limited |
|
1 |
|
Pinky Mehta as a nominee of Aditya Birla Financial Services Limited |
|
1 |
|
Sushil Agarwal as a nominee of Aditya Birla Financial ServicesLimited |
|
1 |
|
Mahendra Bhandari as a nominee of Aditya Birla Financial
ServicesLimited |
|
1 |
|
Shriram Jagetiya as a nominee of Aditya Birla Financial Services
Limited |
|
1 |
|
|
|
|
|
Total |
|
1901208000 |
Equity Share Break up (Percentage of Total Equity)
As on 15.06.2017
|
Category |
Percentage |
|
Promoters (Individual/Hindu Undivided Family-Indian) |
0.00000026 |
|
Promoters (Body corporate) |
99.99999974 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Providing Life Insurance Services.
[Registered Activity] |
||||
|
|
|
||||
|
Products/ Services : |
|
||||
|
|
|
||||
|
Brand Names : |
Not Available |
||||
|
|
|
||||
|
Agencies Held : |
Not Available |
||||
|
|
|
||||
|
Exports : |
Not Divulged |
||||
|
|
|
||||
|
Imports : |
Not Divulged |
||||
|
|
|
||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Customers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
No. of Employees : |
Information declined by the management |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||
|
|
|
|
Auditors 1 : |
|
|
Name : |
Khimji Kunverji and Company Chartered Accountants |
|
Address : |
Sunshine Tower, Level 19, Senapati Bapat, Elphinstone Road, Mumbai –
400013, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAAFK1142M |
|
|
|
|
Auditors 2 : |
|
|
Name : |
S. B. Billimoria and Company Chartered Accountants |
|
Address : |
12,
Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018,
Maharashtra, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Holding Company : |
Aditya Birla Capital Limited (Formerly Known As “Aditya Birla Financial Services Limited”) |
|
|
|
|
Ultimate Holding
company : |
Aditya Birla Nuvo Limited with effect from 24th March 2017 |
|
|
|
|
Foreign Partner : |
Sun Life Financial (India) Insurance Investments Inc. |
|
|
|
|
Associate : |
Idea Cellular Limited |
|
|
|
|
Subsidiary Company : |
Birla Sun Life Pension Management Limited, India (CIN No.: U66000MH2015PLC260801) |
|
|
|
|
Holding of Foreign
Promoter : |
Sunlife Assurance Company of Canada |
|
|
|
|
Fellow Subsidiary : |
· Aditya Birla Finance Limited · Aditya Birla Money Mart Limited · Aditya Birla Money Insurance Advisory Services Limited · Aditya Birla Money Limited · Aditya Birla Financial Shared Services Limited · Aditya Birla Insurance Brokers Limited · Aditya Birla Customer Services Limited · Aditya Birla Housing Finance Limited · Aditya Birla Health Insurance Limited · Birla Sun Life Assets Management Company Limited |
CAPITAL STRUCTURE
As on 15.06.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3750000000 |
Equity Shares |
INR 10/- each |
INR 37500.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1901208000 |
Equity Shares |
INR 10/- each |
INR
19012.080 Million |
|
|
|
|
|
Note: Of the above 969616080 (Previous Year : 1406893920 ) Equity Shares of INR 10 each held by Aditya Birla Nuvo Limited, were transferred on 24th March 2017 to Aditya Birla Financial Services Limited, the Holding company.
PATTERN OF
SHAREHOLDING (AS CERTIFIED BY THE MANAGEMENT):
|
Shareholder |
As at Mar 31, 2017 |
|
|
|
Number of Shares |
% of Holding |
|
Promoters: |
|
|
|
Indian |
969616080 |
51% |
|
Foreign |
931591920 |
49% |
|
Total |
1901208000 |
100% |
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
19012.080 |
19012.080 |
19012.080 |
|
2] Reserves and Surplus |
2682.948 |
2682.948 |
2682.948 |
|
3] Credit/(Debit) / Fair Value Change Account |
(0.441) |
(3.164) |
0.000 |
|
Sub - Total |
21694.587 |
21691.864 |
21695.028 |
|
|
|
|
|
|
BORROWINGS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
POLICYHOLDERS
FUNDS |
|
|
|
|
Credit/(Debit) Fair Value Change Account |
250.035 |
(255.135) |
335.732 |
|
Policy Liabilities |
84602.624 |
59643.726 |
42856.865 |
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
Provision for linked liabilities |
220893.461 |
219164.302 |
211153.672 |
|
|
|
|
|
|
Funds for
Discontinued Policies |
|
|
|
|
i) Discontinued on account of non-payment of premium |
6379.511 |
8526.783 |
8978.658 |
|
(ii) Others |
0.000 |
0.000 |
0.000 |
|
Credit/(Debit) Fair Value Change Account (Linked) |
21604.244 |
6536.465 |
24879.886 |
|
|
|
|
|
|
TOTAL LINKED
LIABILITIES |
248877.216 |
234227.550 |
245012.216 |
|
|
|
|
|
|
Sub - Total |
333729.875 |
293616.141 |
288204.813 |
|
|
|
|
|
|
Funds For Future
Appropriation |
|
|
|
|
Linked Liabilities |
68.713 |
131.878 |
184.774 |
|
TOTAL |
355493.175 |
315439.883 |
310084.615 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
Shareholders |
16039.133 |
17066.285 |
15523.423 |
|
Policyholders |
80312.101 |
56819.610 |
41311.520 |
|
Assets Held to Cover Linked Liabilities |
248877.216 |
234227.550 |
245012.216 |
|
Loans |
537.204 |
478.398 |
378.749 |
|
Fixed Assets |
809.500 |
646.172 |
491.661 |
|
|
|
|
|
|
Current Assets |
|
|
|
|
Cash and Bank Balances |
4990.548 |
4810.713 |
4311.893 |
|
Advances and Other Assets |
8302.050 |
5011.114 |
3875.590 |
|
|
|
|
|
|
Sub - Total (A) |
13292.598 |
9821.827 |
8187.483 |
|
|
|
|
|
|
Current Liabilities |
7770.046 |
8265.075 |
6817.496 |
|
Provisions |
252.540 |
231.084 |
279.135 |
|
|
|
|
|
|
Sub - Total (B) |
8022.586 |
8496.159 |
7096.631 |
|
|
|
|
|
|
Net Current Assets
(C) = (A-B) |
5270.012 |
1325.668 |
1090.852 |
|
|
|
|
|
|
Miscellaneous Expenditure (To the extent not written off or Adjusted ) |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account (Shareholders’ Account ) |
3648.009 |
4876.200 |
6276.194 |
|
|
|
|
|
|
TOTAL |
355493.175 |
315439.883 |
310084.615 |
REVENUE ACCOUNT
POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
57239.351 |
55797.125 |
52332.246 |
|
|
b) Reinsurance Ceded |
(1904.075) |
(1679.773) |
(1648.583) |
|
|
c) Reinsurance accepted |
0.000 |
0.000 |
0.000 |
|
|
Sub-total |
55335.476 |
54117.352 |
50683.663 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
17847.067 |
16108.931 |
13521.864 |
|
|
b) Profit on sale / Redemption of investments |
14900.982 |
14000.841 |
30620.788 |
|
|
c) (Loss) on sale / Redemption of investments |
(4439.979) |
(5332.738) |
(1470.354) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
15067.780 |
(18343.422) |
10419.776 |
|
|
Sub-Total |
43375.850 |
6433.612 |
53092.074 |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
a) contribution from the shareholders account |
1629.995 |
3264.614 |
3153.831 |
|
|
b) Others (interest etc.) |
332.166 |
347.376 |
336.157 |
|
|
Sub-Total |
1962.161 |
3611.990 |
3489.988 |
|
|
Total |
100673.487 |
64162.954 |
107265.725 |
|
|
|
|
|
|
|
|
Commission |
2550.599 |
2180.609 |
2333.736 |
|
|
Operating expenses related to insurance business |
7699.347 |
9042.855 |
8707.124 |
|
|
Service Tax on charges |
991.417 |
1001.860 |
1019.890 |
|
|
Provision for Doubtful debts |
|
|
|
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
|
Provision for tax |
0.000 |
0.000 |
0.000 |
|
|
Provision (other than taxation) |
|
|
|
|
|
a) for diminution in value of investments (net) |
0.000 |
0.000 |
0.000 |
|
|
b) others |
0.000 |
0.000 |
0.000 |
|
|
Total |
11241.363 |
12225.324 |
12060.750 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
46523.392 |
42470.943 |
37716.053 |
|
|
Interim Bonus Paid |
13.448 |
8.570 |
2.847 |
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
25723.275 |
18063.483 |
15935.934 |
|
|
b) Fund Reserve |
16796.939 |
(10332.792) |
34340.805 |
|
|
c) Premium Discontinued Fund - Linked |
(2147.272) |
(451.876) |
4224.216 |
|
|
d) (Amount ceded in Re-insurance) |
(764.378) |
(1276.621) |
(1432.326) |
|
|
c) Amount accepted in Re-insurance |
0.000 |
0.000 |
0.000 |
|
|
Total |
86145.404 |
48481.707 |
90787.529 |
|
|
|
|
|
|
|
|
Surplus / (Deficit) (D)= (A)-(B)-(C) |
3286.720 |
3455.923 |
4417.446 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to shareholders account |
3349.885 |
3508.820 |
4966.022 |
|
|
Transfer to other reserves |
0.000 |
0.000 |
0.000 |
|
|
(Release from) / Transfer to Funds for Future Appropriation |
(63.165) |
(52.897) |
(548.576) |
|
|
Total (D) |
3286.720 |
3455.923 |
4417.446 |
|
|
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
|
a) Interim Bonuses paid |
13.448 |
8.570 |
2.847 |
|
|
b) Allocation of bonus to policyholders |
1240.842 |
878.208 |
628.308 |
|
|
c) Surplus/(Deficit) shown in the revenue account |
3286.720 |
3455.923 |
4417.446 |
|
|
|
|
|
|
|
|
Total Surplus |
4541.010 |
4342.701 |
5048.601 |
|
PROFIT AND LOSS ACCOUNT SHAREHOLDERS' ACCOUNT (NON-TECHNICAL
ACCOUNT) |
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
Amount
Transferred From Policyholder Account (Technical Account) |
3349.885 |
3508.820 |
4966.022 |
|
Income from Investments |
|
|
|
|
(a) Interest, Dividend & Rent - Net of Amortization |
1359.229 |
1400.808 |
1210.540 |
|
(b) Profit on sale / redemption of investments |
131.986 |
94.220 |
65.860 |
|
(c) (Loss on sale / redemption of investments) |
(0.439) |
(9.223) |
0.000 |
|
|
|
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
TOTAL |
4840.661 |
4994.625 |
6242.422 |
|
|
|
|
|
|
Expense other than those directly related to the insurance business |
1949.306 |
281.873 |
234.562 |
|
Corporate social responsibility expenses |
33.167 |
48.144 |
0.000 |
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
Provisions (Other than taxation) |
|
|
|
|
(a) For diminution in the value of investment (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 |
|
(d) Contribution to the Policyholders Account |
1629.995 |
3264.614 |
3153.831 |
|
TOTAL |
3612.468 |
3594.631 |
3388.393 |
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
1228.193 |
1399.994 |
2854.029 |
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
PROFIT / (LOSS)
AFTER TAX |
1228.193 |
1399.994 |
2854.029 |
|
|
|
|
|
|
Appropriations |
|
|
|
|
(a) Balance at the beginning of the period/year |
(5282.327) |
(6682.321) |
(9536.350) |
|
(b) Interim dividend during the period/year |
0.000 |
0.000 |
0.000 |
|
(c) Proposed final dividend |
0.000 |
0.000 |
0.000 |
|
(d) Dividend distribution tax |
0.000 |
0.000 |
0.000 |
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Profit / (Loss) carried Forward to Balance Sheet |
(4054.134) |
(5282.327) |
(6682.321) |
|
|
|
|
|
|
Earning Per Share (Basic
and Diluted), Face Value of INR 10 (in INR) |
0.65 |
0.74 |
1.50 |
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 operating activities |
(7646.585) |
3384.718 |
(22.885) |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
19012.808 |
19012.080 |
19012.080 |
|
2] Reserves and Surplus |
2682.948 |
2682.948 |
2682.948 |
|
3] Credit/(Debit) / Fair Value Change Account |
(0.441) |
(3.164) |
0.000 |
|
Sub - Total |
21694.587 |
21691.864 |
21695.028 |
|
|
|
|
|
|
BORROWINGS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
POLICYHOLDERS
FUNDS |
|
|
|
|
Credit/(Debit) Fair Value Change Account |
250.035 |
(255.135) |
335.732 |
|
Policy Liabilities |
84602.624 |
59643.726 |
42856.865 |
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
Provision for linked liabilities |
220893.461 |
219164.302 |
211.153.672 |
|
|
|
|
|
|
Funds for
Discontinued Policies |
|
|
|
|
i) Discontinued on account of non-payment of premium |
6379.510 |
8526.783 |
8978.658 |
|
(ii) Others |
0.000 |
0.000 |
0.000 |
|
Credit/(Debit) Fair Value Change Account (Linked) |
21604.244 |
6536.465 |
24879.886 |
|
TOTAL LINKED
LIABILITIES |
248877.215 |
234227.550 |
245012.216 |
|
|
|
|
|
|
Sub - Total |
333729.874 |
293616.141 |
288204.813 |
|
|
|
|
|
|
Funds For Future
Appropriation |
|
|
|
|
Linked Liabilities |
68.713 |
131.878 |
184.774 |
|
TOTAL |
355493.174 |
315439.883 |
310084.615 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
Shareholders |
16031.979 |
17048.709 |
15522.923 |
|
Policyholders |
80312.101 |
56819.610 |
41311.520 |
|
Assets Held to Cover Linked Liabilities |
248877.216 |
234227.550 |
245012.216 |
|
Loans |
537.204 |
478.398 |
378.749 |
|
Fixed Assets |
813.448 |
646.172 |
491.661 |
|
|
|
|
|
|
Current Assets |
|
|
|
|
Cash and Bank Balances |
4992.129 |
4822.483 |
4312.393 |
|
Advances and Other Assets |
8304.677 |
5016.874 |
3871.944 |
|
|
|
|
|
|
Sub - Total (A) |
13296.806 |
9839.357 |
8184.337 |
|
|
|
|
|
|
Current Liabilities |
7770.377 |
8265.152 |
6817.575 |
|
Provisions |
252.540 |
232.384 |
279.135 |
|
|
|
|
|
|
Sub - Total (B) |
8022.917 |
8497.536 |
7096.710 |
|
|
|
|
|
|
Net Current Assets
(C) = (A-B) |
5273.889 |
1341.821 |
1087.627 |
|
|
|
|
|
|
Miscellaneous Expenditure (To the extent not written off or Adjusted ) |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account (Shareholders’ Account ) |
3647.337 |
4877.623 |
6279.918 |
|
|
|
|
|
|
TOTAL |
355493.174 |
315439.883 |
310084.615 |
REVENUE ACCOUNT (CONSOLIDATED)
POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Premium Earned –
Net |
|
|
|
|
a) Premium |
57239.551 |
55797.125 |
52332.246 |
|
b) Reinsurance Ceded |
(1904.075) |
(1679.773) |
(1648.583) |
|
c) Reinsurance accepted |
0.000 |
0.000 |
0.000 |
|
Sub-total |
55335.476 |
54117.352 |
50683.663 |
|
|
|
|
|
|
Income
from investments |
|
|
|
|
a) interest, Dividend and Rent – Gross |
17847.067 |
16108.931 |
13521.864 |
|
b) Profit on sale / Redemption of investments |
14900.982 |
14000.841 |
30620.788 |
|
c) (Loss) on sale / Redemption of investments |
(4439.979) |
(5332.738) |
(1470.354) |
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
15067.780 |
(18343.422) |
10419.776 |
|
Sub-Total |
43375.850 |
6433.612 |
53092.074 |
|
|
|
|
|
|
Other Income |
|
|
|
|
a) contribution from the shareholders account |
1629.995 |
3264.614 |
3153.831 |
|
b) Others (interest etc.) |
332.166 |
347.376 |
335.157 |
|
Sub-Total |
1962.161 |
3611.990 |
3488.988 |
|
Total |
100673.487 |
64162.954 |
107265.725 |
|
|
|
|
|
|
Commission |
2550.599 |
2180.609 |
2333.736 |
|
Operating expenses related to insurance business |
7699.347 |
9042.855 |
8707.124 |
|
Service Tax On Charges |
991.417 |
1001.860 |
1019.890 |
|
Provision for Doubtful debts |
0.000 |
0.000 |
0.000 |
|
Bad debts written off |
0.000 |
0.000 |
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 |
11241.363 |
12225.324 |
12060.750 |
|
|
|
|
|
|
Benefits paid (Net) |
46523.392 |
42470.943 |
377160.053 |
|
Interim Bonus Paid |
13.448 |
8.570 |
2.847 |
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
a) Gross |
25723.275 |
18063.483 |
15935.934 |
|
b) Fund Reserve |
16796.939 |
(10332.792) |
34340.805 |
|
c) Premium Discontinued Fund - Linked |
(2147.272) |
(451.876) |
4224.216 |
|
d) (Amount ceded in Re-insurance) |
(764.378) |
(1276.621) |
(1432.326) |
|
c) Amount accepted in Re-insurance |
0.000 |
0.000 |
0.000 |
|
Total |
86145.404 |
48481.707 |
90787.529 |
|
|
|
|
|
|
Surplus / (Deficit) (D)= (A)-(B)-(C) |
3286.720 |
3455.923 |
4417.446 |
|
Appropriations |
|
|
|
|
Transfer to shareholders account |
3349.885 |
3508.820 |
4966.022 |
|
Transfer to other reserves |
0.000 |
0.000 |
0.000 |
|
(Release from)/ Transfer to Funds for Future Appropriation |
(63.165) |
(52.897) |
(548.576) |
|
Total |
3286.720 |
3455.923 |
4417.446 |
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
a) Interim Bonuses paid |
13.448 |
8.570 |
2.847 |
|
b) Allocation of bonus to policyholders |
1240.842 |
878.208 |
628.308 |
|
c) Surplus/(Deficit) shown in the revenue account |
3286.720 |
3455.923 |
4417.446 |
|
Total Surplus |
4541.010 |
4342.701 |
5048.601 |
PROFIT AND LOSS ACCOUNT (CONSOLIDATED)
SHAREHOLDERS' ACCOUNT (NON-TECHNICAL
ACCOUNT)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
Amount
Transferred From Policyholder Account (Technical Account) |
3349.885 |
3508.820 |
4966.022 |
|
Income from Investments |
|
|
|
|
(a) Interest, Dividend & Rent - Net of Amortization |
1375.313 |
1403.340 |
1210.540 |
|
(b) Profit on sale / redemption of investments |
140.156 |
100.164 |
65.860 |
|
(c) (Loss on sale / redemption of investments) |
(0.439) |
(9.223) |
0.000 |
|
|
|
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
TOTAL |
4864.915 |
5003.101 |
6242.422 |
|
|
|
|
|
|
Expenses other
than those directly related to the insurance |
1962.673 |
286.746 |
238.287 |
|
Corporate social
responsibility expenses |
33.167 |
48.144 |
0.000 |
|
|
|
|
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
Provisions (Other than taxation) |
|
|
|
|
(a) For diminution in the value of investment (net) |
0.000 |
0.000 |
0.000 |
|
(b) Provision for doubtful debts |
0.000 |
0.000 |
0.000 |
|
(c) Others |
0.000 |
0.000 |
0.000 |
|
-Contribution to the Policyholders Fund |
1629.995 |
3264.614 |
3153.831 |
|
Total |
3625.835 |
3599.504 |
3392.118 |
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
1239.080 |
1403.597 |
2850.304 |
|
Provision for Taxation |
8.795 |
1.300 |
0.000 |
|
PROFIT / (LOSS)
AFTER TAX |
1230.285 |
1402.297 |
2850.304 |
|
|
|
|
|
|
Appropriations |
|
|
|
|
(a) Balance at the beginning of the period/year |
(5283.749) |
(6686.046) |
(9536.350) |
|
(b) Interim dividend during the period/year |
0.000 |
0.000 |
0.000 |
|
(c) Proposed final dividend |
0.000 |
0.000 |
0.000 |
|
(d) Dividend distribution tax |
0.000 |
0.000 |
0.000 |
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Profit / (Loss) carried to the Balance Sheet |
(4053.464) |
(5283.749) |
(6686.046) |
|
|
|
|
|
|
Earnings Per Share
(Basic and Diluted), Face Value of INR 10 (in INR) |
0.65 |
0.74 |
1.50 |
LEGAL
CASES
|
Bench:- Bombay |
||||
|
Presentation Date:- 05/10/2017 |
||||
|
Lodging No. : |
ITXAL/2555/2017 |
Failing Date:- |
05/10/2017 |
|
|
Petitioner:- |
PR. COMMISSIONER OF INCOME TAX-6 |
Respondent:- |
BIRLA SUN LIFE INSURANCE CO. LIMITED |
|
|
Petn.Adv:- |
PADMA DIVAKAR (I3287) |
|||
|
District:- |
MUMBAI |
|||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
|
|
Status:- |
Pre-Admission |
Stage:- |
||
|
Last Date:- |
12/10/2017 |
|||
|
Last Coram:- |
REGISTRAR(OS)/PROTHONOTARY & SR. MASTER |
|||
|
|
|
|||
|
Act. : |
Income Tax Act, 1961 |
Under Section 260A |
||
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 |
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 |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
NOTE: The Registered Office of the company has been shifted from Vaman Centre,
6th Floor, Makhwana Road, Off, Andheri Kurla Road, Marol, Andheri
(East), Mumbai-400059, Maharashtra, India to the present address w.e.f
01.09.2009
BACKGROUND
Birla Sun Life Insurance Company Limited, headquartered at Mumbai, had commenced operations on 19th March 2001, after receiving the license to transact life insurance business in India from the Insurance Regulatory and Development Authority (‘IRDA’) on 31st January 2001. It was incorporated on August 4, 2000 as a company under the Companies Act, 2013 (‘the Act’). The Insurance Regulatory and Development Authority of India (IRDAI) vide its circular dated 7th April, 2015 bearing reference number IRDA/F&A/CIR/ GLD/062/04/2015 has pursuant to amendment in Insurance Laws (Amendment) Act 2015 to Section 3A of the Insurance Act, 1938, discontinued the requirement to apply for Renewal Certificate of Registration (IRDA/R6) on an annual basis. Accordingly, upon payment of the annual fees for the financial year 2017-18, the certificate of registration which was valid for financial year ended March 31, 2017 shall continue to be valid for financial year ended March 31, 2018 and the same is in force as on the date of this report.
The company is a subsidiary of Aditya Birla Financial Services Limited (with effect from 24th March, 2017, previously held by Aditya Birla Nuvo Limited – Now ultimate holding entity), a company of the Aditya Birla Group of India (51 percent). Further, Sun Life Financials (India) Insurance Investments Inc., subsidiary of Sun Life Assurance Company of Cananda holds 49 percent of share capital. This business span across individual and group products and covers participating, nonparticipating and unit linked lines of businesses. Riders covering additional benefits are offered under these products. These products are distributed through individual agents, corporate agents, banks, brokers and other intermediaries across the country.
Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial Statements Regulations”), orders/ directions issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”) in this regard, the Accounting Standards specified under Section 133 of the Companies Act, 2013 to the extent applicable and various circulars issued by IRDAI and practices prevailing in the insurance industry in India. The accounting policies have been consistently applied by the Company.
The management evaluates all recently issued or revised accounting pronouncements on an ongoing basis.
INDUSTRY AND BUSINESS
PERFORMANCE
FY17 saw a significant improvement in the performance for almost all the Life insurance players. Stable regulatory regime coupled with demonetization wave lead to a growth of 21% YoY for the Industry in terms of Individual life business. Group business on the other hand also registered a growth of 21% YoY.
Both private sector players and Life Insurance Corporation of India (LIC) recorded positive growth during the year. While LIC achieved a growth of 15%, Private players registered a growth of 26%. Private players thus on the back of strong growth increased their market share from 52% in FY16 to 54% in FY17.
Amongst the Private Players, the market share of top four private insurance players increased from 33% in FY16 to 35% in FY17, driven by strong growth in Bancassurance Channel.
Amongst the Distribution Channels, the Agency Channel continues to have the highest share of 68.2%, at an industry level followed by Bancassurance at 23.8%. However, In case of Private Life insurers – Bancassurance has a dominant share of 52% followed by Agency channel at 32%.
The Company has shown superlative growth of 35% in FY 17 by growing higher then LIC, Private players as well as the bank backed insurers.
In Group Life, market share of private insurance players remained flat at 19% for both FY17 as well as FY16, with
the top five private insurance players contributing 14% of the group sales in FY17.
Outlook for FY18 in terms of new business growth continues to be positive with expectation of a normal monsoon, good flow into the capital markets and increase focus for financial savings as compared to physical savings on account of demonetization. Moreover, a positive regulatory regime coupled with encouragement by Government of India towards financial savings will also help the Industry to move to higher growth. More details on Industry outlook and opportunities are covered in the Management Discussion and Analysis report.
The Company through its customer focused approach is well positioned to capitalize on the opportunities which the sector will offer in the next 3-5 years. The Company continues to drive its multi-channel distribution strategy supported through a well defined Product and Customer Service Strategy.
FINANCIAL PERFORMANCE
The Company recorded satisfactory performance in FY17 across a range of key financial parameters:
The Company recorded new business premium of INR 25340.000 Million in FY17 as compared to INR 22200.000 Million in FY16, recording a growth of 14%. Individual business grew by 35% from INR 7110.000 Million in FY16 to INR 9600.000 Million in FY17.
Renewal premium at INR 31900.000 Million for FY17 marginally below previous year. However Company has been able to improve its Persistency ratios and grown its Inforce book which will help to generate higher renewal premiums going forward. BSLI will continue to focus on managing its substantial in-force book and improving persistency levels further, which is important to deliver value from their existing book.
Total Premium of the Company increased by 3% from INR 55800.000 Million in FY16 to INR 57240.000 Million in FY17.
With a continuous focus on improving profitability and building long term value for shareholders, The company has been able to further improve the product mix from 64% traditional in FY16 to 70% in FY17. BSLI is committed to further improve the profitability by driving a healthy product mix, building the Inforce book, managing Opex and driving productivity led distribution.
In spite of increase in new business sales by 14%, Opex has increased by only 3%. Opex to premium ratio for FY17 has remained flat at 16.3% as against 16.2% in FY16.
Solvency margin at 2.00 for FY17 against the regulatory requirement of 1.5 indicates the Company’s stable financial position.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW OF GLOBAL
ECONOMY
FY16 was a year of surprises. Global growth moved to 3.1% (according to the World Bank) in 2016 and is expected to rise to 3.5% in FY17 and 3.6% in FY18. The recovery in the US is the prime driver for this growth improvement for now. Also, stable commodity prices are expected to keep growth in Emerging Markets fairly reasonable. The World Bank expects Advanced Economies to grow @ 2% (up from 1.7% in FY16) and the Emerging and developing economies are expected to grow @ 4.5% in FY17, up from 4.1% in FY16. Overall therefore, global growth is expected to pick up.
With inflation in Advanced economies set to rise to 2% (as per the World Bank’s estimate) from 0.8% in FY16, FY17 would be keenly watched by global financial markets to see what trajectory would Fed rates follow, post the first hike already seen in Mar 2017. In the absence of any meaningful tailwinds to commodity prices, any spike in global inflation is less likely.
In the backdrop of persistently uncertainty, financial markets are expected to be on their toes all throughout.
On the Indian macroeconomic front, FY17 started on a good note with various economic activity indicators slowly recovering and normal monsoon after 2 years of bad monsoon added to the momentum. This was followed by a brief period of volatility as news around BREXIT led to market volatility. Soon, markets got over this, the legislation of inflation targeting framework and creation of the monetary policy committee offered some direction to markets. The run up to the festive season saw improved sentiments in the backdrop of overall macroeconomic stability. Increased activity around the reform agenda, passing of GST bill painted a good outlook. The demonetization exercise placed a temporary kink in an otherwise smooth recovery process. But the outcome of this exercise will be a cleaner economy, better tax compliance, a change in attitude towards cash transactions and all this reinforced the government’s resolve to reduce corruption.
They are expected to close FY17 with a GVA growth of 6.7% yoy down from 7.8% yoy in FY16. Inflation remained well under control, over achieving RBI’s target of 5% by averaging at 4.5% for FY17 down from 4.9% in FY16.
The natural byproduct of the demonetization exercise was a flush of deposits into the banking system. This liquidity surplus with banks enabled monetary policy transmission significantly as banks cut their MCLR’s by about 90bps post this move. But credit offtake continued to remain muted. FY17 saw average credit growth of 7% yoy down from 9% yoy in FY16.
While the reliance on banks as a provider of funds took a bit of a hit, non-bank sources took the lead by disbursing ~62% of the overall flow of funds to the commercial sector. External fund flows, especially in the form of FDI played an important role in this, as gross FDI inflows for FY17 stood at ~60bn$, up from ~55bn$ in FY16. In fact, post the state election results, a new found interest from FPI’s has added to the currency strength basis which INR has already appreciated by ~5% since the beginning of 2017.
Growth prospects for FY18 seem to be improving, inflation looks contained, the government is all set to go ahead with
GST, FII’s are looking at India positively, increased thrust on financial inclusion has encouraged retail participation in the financial services industry especially in the non-bank space. Overall, this bodes well for the FS industry.
BUSINESS SEGMENT
As per Accounting Standard 17 (AS 17) on ‘Segment Reporting’ read with
the “Preparation of Financial Statements and Auditor’s Report of Insurance
Companies, Regulations 2002” and the Insurance Laws (Amendment) Act 2015, the
Company is required to report segment results separately for linked,
non-linked, health and pension businesses. The business is broadly classified
as Participating non-linked, Non Participating Unit Linked and Non Linked
businesses, which are further segmented into Individual Life, Group Life, Group
Life Variable, Individual Pension, Annuity Individual, Group Pension, Group
Pension Variable and Individual Health businesses. Accordingly, the Company has
prepared the revenue account and balance sheet for these primary business
segments separately. Since the business operation of the Company is in India
only, the same is considered as one geographical segment.
The following basis has been used for allocation of revenues, expenses,
assets and liabilities to the business segments:
·
Revenues, other Income,
expenses, assets and liabilities directly attributable and identifiable to
business segments, are allocated on actual basis; and
·
Revenues, other income,
other expenses, assets and liabilities which are not directly identifiable
though attributable to a business segment, are allocated on the following
basis, as considered appropriate by the management:
·
Gross premium;
·
First year commission;
·
Sum assured;
·
Policy liability;
·
Asset under management;
·
New Business Policy Count;
·
Enforce policy count
INDEX
OF CHARGES: NO CHARGES EXISTS FOR COMPANY
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Partly paid-up investments |
0.255 |
0.000 |
|
Claims, other than against policies, not acknowledged as debts by the Company |
100.325 |
24.764 |
|
Others * |
227.828 |
221.379 |
* Represents potential liability to the Company (net of reinsurance) in respect of cases filed against the Company’s decision of repudiation of death claims and customer complaints.
Note: - The
company has received Show Cause-Cum-Demand notices for earlier period relating
to Service Tax demands of INR 398,203 as
at 31st March, 2017, (As at 31st March, 2016 INR 398,203) plus applicable
interest and penalty. Basis legal opinion obtained, management is of the opinion that these show-cause cum demand
notices are not legally tenable and decided to contest at appellate authority.
FIXED ASSETS:
Tangible Assets
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Computer Equipments
· Leasehold Improvements
· Electrical Installation
· Leasehold Land
WEBSITE DETAILS
NEWS/ PRESS RELEASES
BIRLA SUN LIFE, MAX
LIFE INITIATE MERGER TALKS; NEW LIFE INSURANCE GIANT COULD SOON BE IN THE
MAKING
21.09.2017
Analjit Singh led Max Financial Services is in talks with Aditya Birla Group to explore a merger of their life insurance businesses, Birla Sun Life and Max Life Insurance with the aim to create one of the top 3 private life insurers in the country, said multiple sources aware of the discussions.
Parallely, the Delhi based serial entrepreneur is also believed to be negotiating with UK-based Northern Trust which manages a trillion dollar of assets and PE firm Apax Partners to sell his promoter stake of 30 per cent in Max Financial Services.
These negotiations are at an early stage and the various groups are examining the regulatory contours but gathered momentum after HDFC Standard Life Insurance Co. Ltd and Max Life Insurance Co. Ltd called off their proposed merger end July, failing to win regulatory approval for a union that would have created an insurance giant with INR 1.1 trillion in assets.
However the sources mentioned above warned that these
discussions may not gaurantee a transaction.
Birlas have been on the lookout for scaled franchise for
long while Singh has been open to monetising his investments. The key rationale
for exploring a merger is the fact that Birla Sun Life does not have large bank
partners which Max has in the form of Axis and Yes -- the third and fourth
largest private bank in the country. Even though in the last one year, Birla
Sun Life have managed to tie up with six banks, they are all much
smaller.
"Birla-Max discussions are ongoing at a shareholder level to work out the correct structure. It has not yet reached a board level," said an official in the know on condition of anonymity as the talks are in private domain. "Increased scale can potentially yield to benefits of cost synergies as well as multi channel distribution, through agencies, brokers, direct marketing and bancassurance," he added. Absence of a strong Banca partner has been hurting Birla Sun Life's distribution with premium mix shifting towards group business (62% contribution in FY17). In Q1FY18, as per its management, new business premium saw 33-34% growth driven by retail segment.
“We expect more bank-insurance tie-ups, beyond the top four
banks. Max has option to either partner with these (beyond top four) banks or
explore an M&A option,” wrote analysts with Kotak Institutional Equities
last month.
Cyril Amarchand Mangaldas is believed to be involved as a
legal advisor in the ongoing Birla-Max negotiations.
PE players like Apax – having invested $1.5 billion since opening India office in 2007 with plans to deploy another billion in the next 4 years -- has historically been strong backer of financial services firm having backed Shriram City Union Finance, CholamandalamBSE 3.20 % Finance as well as insurance brokerages Assured Partners, Hub International worldwide.
Northern Trust too has been looking to invest in financial services in India. They had in the past explored opportunities in asset management business but did not invest.
Spokespersons of Max Financial, Aditya Birla Group declined to comment on
speculation. Mails sent to Apax Partners and Northern Trust did not get a
response till press time.
The MFS stock has appreciated a little over 8% in the last 1 month.
Birla Sun Life is a 51:49 JV between Aditya Birla Capital Limited (ABCL) and Canada's Sun Life. Max Financial Services was formed in January 2016, as the result of a three way demerger of Max IndiaBSE -0.46 %. MFS is the holding company for Max Life, India’s largest non-bank promoted private life insurance company. MFS currently holds 69% stake in Max Life, its Japanese partner Mitsui Sumitomo owns 25% with Axis BankBSE 0.42 % owning 4.9% of the venture. 1% is held through management ESOPs.
According to sources, one of the structures being explored is a plain merger of the two operating life insurance businesses and a subsequent change in the shareholding with Aditya Birla Capital buying out Singh and his partners either partially or entirely.
Alternatively, ABCL or any of the other suitors can buy into MFS and trigger an open offer, following which the operating companies and their listed holdcos can merge. The promoters Analjit Singh and family control 30.42 per cent of MFS.
"Typically the regulator prefers mergers. So IRDA is unlikely to allow 2 entities with 2 licences with the same set of shareholders. It would be far easier to merge the businesses and then realign shareholding," said a Mumbai based senior legal source specialising in insurance mergers.
The challenges, feel analysts, will be agreeing on any non compete fee and locking in Axis -- the key value creator -- in the merged entity.
During the three way merger discussions the promoters of MFS had negotiated an
INR 8500.000 Million non compete fee from HDFC Life as a condition for the
deal. This was reminiscent of a similar transaction of 2012 when Mitsui
Sumitomo Insurance (MSI) bought 26 per cent stake in Max New York Life
Insurance Company Limited for around INR 27310.000 Million, marking the exit of
New York Life Insurance, the original foreign shareholder in the JV. The issue
of a non compete fee caught in regulatory and minority shareholder crosshairs.
This fee of control premium again turn out to be deal spoiler.
Max Life, India's fourth largest private life insurer has a 7.9 per cent market share with assets under management (AUM) of INR 443700.000 Million as at 31st March 2017, growing 24% over last year. In FY2017, the company reported individual adjusted sales of INR 26390.000 Million, growing 25% and revenues of INR 129370.000 Million growing 19%. Its embedded value stood at INR 65900.000 Million as at 31st March 2017 with an operating return on EV (RoEV) of 20%. The Value of New Business (VNB) written during FY2017 was INR 4990.000 Million, growing 29% over the previous year, and the new business margin stood at 18.8%.
Compared to its peers, Birla Sun Life Insurance has been an under-performer in the insurance space. With a 7.1% market share, the total premium it collected stood at INR 57000.000 Million in 2017 versus INR 52000.000 Million in FY2013, whereas profit before tax has fallen from 540 crores in 2013 to just 120 crores in FY2017. Birla Sun Life has embedded value of 3400 Crores in FY2017.
"Max is a little less than two times embedded value than Birla while its equity value will be more than double. Back of the envelope calculation should give Max an equity valuation of INR 230000.000 Million while that for Birla should be INR 105000.000 Million," said an investment banking official.
The proposed Max Life Insurance acquisition deal with HDFC Life was to happen at 4.3x embedded value whereas ICICI Prudential trades at 4.10x FY2017 embedded value. Typically these businesses get valued at 3-4X EV.
CRISILBSE 0.93 % Research forecasts new business premium for life insurers to grow at 11-13% CAGR from fiscals 2017 to 2022, compared with 9% CAGR between fiscals 2012 and 2017. They estimate total premium to grow at 13-15% CAGR over the next five years, from INR 4,181 billion in fiscal 2017 to INR 7,900 - INR 8,100 billion by fiscal 2022. Improving economic growth, low inflation, and increase in financial savings, along with rising awareness of insurance, would be the key catalysts.
WILL ADITYA BIRLA
CAPITAL'S LATEST GAMBIT DELIVER?
08.11.2017
A recent rant on Facebook told an all too familiar tale: a bank’s credit card division and main operations were apparently not talking to each other, and now, a friend would potentially have to show up in person at a branch to sort things out and retrieve a card gone rogue. The post struck a chord and several commenters chimed in with tales of woe.
Strangely enough, we’d heard someone talking about precisely this situation a few weeks ago. It was one of the issues Ajay Srinivasan, CEO, Aditya Birla Capital brought up when discussing the reasons driving the new direction for his firm. Referring to a hypothetical change of address phone call he said, “If I have three product relationships with that company, a change I make with one, should happen across all three. It sounds obvious but nobody does it. I don’t know why they don’t think of the value of synergy.”
It’s precisely this synergy that’s at the heart of Aditya Birla Capital’s latest effort: an attempt to talk to its customers, irrespective of whether they’ve bought life insurance, home loans or mutual funds, via a single brand, using a single customer ID, with a single point of contact, and yes, one account statement to track all their customer relationships. A quixotic move in a world where even if the entity running your mutual fund, your life insurance or your banking relationship is the same, they are all likely to have different names, phone numbers and personnel.
This not just the result of corporate cussedness (even if it feels like that a lot of the time). The Indian financial services industry opened up in a highly sporadic manner. Mutual funds began back in 1964 via the UTI. But private players were allowed only in 1993. Private life insurance began as late as 2000. Regulatory frameworks strictly codified what each firm could or couldn’t do. Inertia took over and the consumers and the industry got quite used to having multiple relationships with the same entity.
According to Ajay Kakar, CMO, Aditya Birla Capital, the concept of a master brand was discussed as far back as 2007. Driving it was a seemingly simplistic logic: Customers look at the category very differently from how the industry thinks and talks about itself. Srinivasan explains, “The industry uses jargon and terminology that doesn’t always make sense to the customer.” But according to Aditya Birla Capital, customer needs are broadly in four buckets: protection (insurance), investment (MFs and stocks), finance (loans) and advice. Says Srinivasan, “While we talk about EMIs, interest rates, and interest free periods, they talk of buying a car or house, funding education or going on holiday. We thought this was an opportunity to create a brand.”
It took as long as it did simply because Aditya Birla Capital or Aditya Birla Financial Services as it was known back then, needed to build enough clout to come up with a credible offering. Says Srinivasan, “Today we are a Top 5 player in MFs, a Top 5 NBFC, a leading life insurance player, a Top 5 general insurance player and one of the leading personal finance portals in the country.”
And so, Aditya Birla Capital intends making the shift from wooing consumers to buy individual products and instead involve them in a conversation about money.
The first phase of the campaign has people addressing questions to money, about issues that matter to them more than the minutiae of financial instruments.
The advantages are obvious. The first is creating a solutions basket and a lifetime relationship with a customer from birth to death and every stage in between. The second is wherever possible and not forbidden by regulatory strictures, the opportunities to cross-sell and upsell, by bundling at the front end. Or running analytics at the backend to figure the products most relevant to a particular customer. Physical branches will double up as service centres across product lines. Staff have been trained with a basic awareness of the entire folio, and possess a reckoner with the entire range listed. Even the website will start with a discussion on a customer’s life goals before moving into information on products.
The concept meets the approval of Anisha Motwani, marketing consultant, and previously CMO at Max Life. She says, “These products are complementary, fulfil unique needs and don’t cannibalise each other.” A good experience with one product — maybe MFs which are Aditya Birla Capital’s flagship, could translate into a customer more agreeable to trying other businesses. It also helps optimise marketing budgets which are a perennial problem. The only risk — and it’s a large one — is the mother brand strategy subsuming areas that need specialised treatment. Says Motwani, “Corporate ads talk about everything but also talk about nothing. Insurance which depends on a deeper human insight has always been an emotional sell and needs to evoke that for people to get involved.”
No one can fault Aditya Birla Capital for lacking ambition. Its success or lack thereof will have one quick barometer: the speed at which copycats emerge. Or if they don’t. That will deliver the verdict on whether the rest of the industry missed a trick or if in fact, this was a trick worth missing.
ADITYA BIRLA
CAPITAL’S #DEARMONEY CAMPAIGN ENCOURAGES PEOPLE TO HAVE A CONVERSATION AROUND
MONEY
07.11.2017
Taproot has conceptualised the campaign for the launch of a whole new category, ‘money’, by Aditya Birla Capital, the holding company of all the financial services businesses of the group
Aditya Birla Capital Limited (ABCL) has launched its #DearMoney, commercial through a high-octane campaign across 51 TV channels, 14 radio stations, OOH locations, Facebook, YouTube, Instagram and websites.
Directed by Ram Madhvani, the TVC has been created by Taproot Dentsu India with FoxyMoron Media handling the digital campaign roll-out and MindShare India being responsible for the digital and TV media planning. Fitch India was responsible for the creation of the new visual brand identity for Aditya Birla Capital.
This is the very first campaign to be launched post the formation of Aditya Birla Capital, which is the holding company of all the financial services businesses of the Aditya Birla Group and one of the leading financial services players in India. With this launch, all ABCL businesses, inclusive of Aditya Birla Finance Limited, Aditya Birla Sunlife Mutual Fund, Aditya Birla SunLife Insurance and Aditya Birla Health Insurance, have come together as one to serve the end-to-end financial needs of its retail and corporate customers through one brand.
The campaign highlights the launch of a whole new category, money, and the launch of a whole new way in which financial brands enter and become a part of people's lives through their life's needs. Money is not an easy topic to talk about as the complexities surrounding it are unique to every individual. And therefore most of us do not like to talk about money, not just with others, but often even with ourselves.
The objective of the campaign is to provoke people to start a conversation about money, with money! In a unique one-on-one conversation across all channels and mediums, the campaign touches on the issues the people of India have in relation to their money and self-realise the need for money in various aspects of their life. For only when people start actively thinking about their money, will they take the first step towards planning it for all their life's needs, throughout their lives.
Chief Executive Officer, Ajay Srinivasan, Aditya Birla Capital, said, “We are a brand built on empathy for people's life's needs and their hard-earned money. We are a brand that believes in earning people's trust. And we are a brand that simplifies everything that is complicated with financial services. Our belief is that it is the empathy, the trust and the simplicity that will make us an endearing and preferred brand. Moving away from the traditional approach of pushing a product, our brand solutions are built on three key need pillars – protecting, investing and financing. In everything we do and say, our endeavour will be to understand an individual's needs and accordingly advice or recommend the right solution for their life's needs, throughout their life. And with this, we believe we will change the way our category operates.”
Commenting on the choice of theme, Ajay Kakar, Chief Marketing Officer, Aditya Birla Capital, added, “A brand is like a personality with attributes and a purpose. It comes alive not just by what you see on TV or on billboards but by the way you experience the brand. We are not just launching a new brand for the people of India, we are, in fact, putting into action a new role that financial services will play in the lives of every Indian. We are here to enable individuals to protect what they value; to invest so they can live a life they aspire to live; and to finance their dreams, needs and desires. We want to build this into a brand such that whenever a customer thinks of money, they think of us. We want to make this a pre-eminent brand in India standing for empathy, simplicity and top performance. This is how we will be able to earn people's trust. And, only with their trust will they give us the permission to be their partners through all of their life's needs.”
Agnello Dias, Chairman and Chief Creative Officer, Taproot Dentsu India, added, "We needed an open letter from the people of India to a puzzle called money. We focused on taking this conversation out of homes and dining tables to start a collective exchange about all things money. Hopefully the film will encourage each of us to start having real-time conversations with our own #DearMoney in a light-hearted yet insightful way."
Vinod Thadani, Chief Digital Officer, Mindshare South Asia shared, “#DearMoney is a revolutionary campaign that seeks to provoke people into re-thinking their finances. The rollout across various mediums like mobile, digital, social and native have hence been extremely innovative and at a scale aimed to reach out to as many people as we can. With every medium having its own unique conversation, the campaign has been one of the most engaging and interesting we have worked on yet.”
Anita Kotwani, Client Leadership, Mindshare, commented, “The purpose behind the #DearMoney campaign will change the way we look at our hard-earned money forever and hence our excitement at being associated with such innovative thinking is palpable. We are sure that the people of India will appreciate this unique conversation and participate in it, whole-heartedly.”
Dominic Twford, Client Services Director, Fitch, explained, “Positioning and establishing the Aditya Birla Capital brand has been an enormously complex yet rewarding experience for Fitch. For two years, we have worked as partners with the client team. Unlike the usual client-agency relationship we came together as one united team, all fully committed to changing the financial services industry in India."
Pratik Gupta, Co-Founder, FoxyMoron, said, “Money has always been a sensitive topic in our society. The cumulative intent of the communication was to solve this perennial issue by hitting it hard. With #DearMoney, we are speaking directly of the problems faced and giving customised solutions for all your money needs. To be a part of such a big change has been a truly fulfilling experience for all of us at FoxyMoron and we are super excited about what we have in store for the brand in the near future.”
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 66.77 |
|
|
1 |
INR 90.58 |
|
Euro |
1 |
INR 79.97 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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.