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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

508194

Report Date :

11.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

 

 

Registered Office :

Lodha Excelus, 13th Floor, Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai - 400011, Maharashtra

Tel. No.:

91-22-67516680 / 39107365

 

 

Country :

India

 

 

Financials (as on) :

31.03.2018

 

 

Date of Incorporation :

14.08.2000

 

 

Com. Reg. No.:

11-128245

 

 

Capital Investment / Paid-up Capital :

INR 19984.753 Million

 

 

CIN No.:

[Company Identification No.]

L65110MH2000PLC128245

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

GSTIN :

Not Available

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged into carrying on the business of life insurance. [Registered Activity]

 

 

No. of Employees :

(As on 31.03.2017)

14800 (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 :

Excellent

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

Exists

 

 

Comments :

HDFC Standard Life Insurance Company Limited is a subsidiary of Housing Development Finance Corporation Limited (HDFC). The company was incorporated in the year 2000.


HDFC Life is positioned as a leading life insurer in India, offering a range of individual and group insurance solutions. Its portfolio comprises various insurance and investment products such as Protection, Pension, Savings, Income and Health. As on June 30, 2017, the Company offered 31 individual and 10 group products, along with 8 optional rider benefits catering to specific needs of customers during each stage of their lives.


HDFC Life has about 398 branches and presence in more than 980 cities and towns in India.


HDFC Life distributes its products through a multi-channel network consisting of Insurance agents, Ban assurance partners (HDFC Bank, Saraswat Bank, RBL Bank), direct channel, Insurance Brokers and Online Insurance Platform.


For the financial year 2018, the company has achieved decent sales turnover which has improved as compared to previous year marked by satisfactory profit margin.


The healthy financial profile of the company is marked by strong networth base.


Rating derives strength from significant capital structure, managerial and operational support from its parent company.


The company has its share price trading at around INR 514.95 against the face value (FV) of INR 10 on BSE as 9th May, 2018.


However, rating is strengths are partially offset by intense competition and challenge to be faced by the company in insurance sector.


Business is active. Payments seems to be regular.


In view of aforesaid, the company can be considered for business dealings at usual trade terms and conditions.

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2018.

 

 

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 11.05.2018

 

 

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.: 91-22-67516680)

 

 

LOCATIONS

 

Registered Office :

Lodha Excelus, 13th Floor, Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai-400011, Maharashtra, India

Tel. No.:

91-22-67516680 / 39107365

Fax No.:

Not Available

E-Mail :

hdfclifesecretarial@hdfclife.com

investor.service@hdfclife.com

Website :

https://www.hdfclife.com

 

 

Corporate Office :

12th Floor, Lodha Excelus, Apollo Mills Compound, N. M. Joshi Road, Mahalaxmi, Maharashtra, Mumbai - 400 011, Maharashtra, India

Tel. No.:

91-22-67516666

 

 

Customer Service Centre :

11th Floor, Lodha Excelus Apollo Mills Compound, N. M. Joshi Road, Mahalaxmi, Mumbai- 400011, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Ketan Arvind Dalal

Designation :

Additional Director

Address :

9A Residences, 9th Floor, Bomanji Petit Road, Mumbai – 400026, Maharashtra, India

Date of Appointment :

17.07.2017

DIN No.:

00003236

 

 

Name :

Ms. Renu Sud Karnad

Designation :

Director

Address :

BB-14, Greater Kailash, Enclave-II, New Delhi-110048, India

Qualification :

Graduate in Law, and Master’s degree in Economics from Delhi University

Date of Appointment :

25.01.2006

DIN No.:

00008064

 

 

Name :

Mr. Keki Minoo Mistry

Designation :

Director

Address :

Flat No. 2603, 26th Floor Vivarea, B-Wing, S G Marg, Mahalaxmi (East), Mumbai-400011, Maharashtra, India

Qualification :

Fellow of Institute of Chartered Accountants of India

Date of Appointment :

12.12.2000

DIN No.:

00008886

 

 

Name :

Mr. Deepak Shantilal Parekh

Designation :

Director

Address :

Flat No. 4607, The Imperial Tower, North 46th Floor, B B Nakashe Marg (Tardeo Roa D), Tardeo, Mumbai-400034, Maharashtra, India

Qualification :

Fellow of Institute of Chartered Accountants (England and Wales)

Date of Appointment :

17.08.2000

DIN No.:

00009078

 

 

Name :

Mr. Norman Keith Skeoch

Designation :

Director

Address :

19, Lennox Street Edinburgh Eh41py GB

Qualification :

Fellow of the Chartered Institute for Securities and Investment, Fellow of the Society of Business Economists, Fellow of the Royal Society for the Encouragement of the Arts, Manufacture and Commerce, BA, MA, DBA (Doctor of Business Administration) and Honorary degrees from University of Sussex and Teesside University

Date of Appointment :

02.11.2005

DIN No.:

00165850

 

 

Name :

Mr. Prasad Chandran

Designation :

Director

Address :

16-B, Darbhanga Mansion, Carmichael Road, Mumbai-400026, Maharashtra, India

Qualification :

Chemistry (Hons) from Bombay University, MBA from University Business School, Chandigarh

Date of Appointment :

25.04.2014

DIN No.:

00200379

 

 

Name :

Mr. Amitabh Chaudhry

Designation :

Managing Director

Address :

Flat 4301, 43rd Floor, Tower III, Electra Planet Godrej Near Jacob Circle, Saat Rasta, Mahalaxmi, Mumbai-400011, Maharashtra, India

Qualification :

Engineering, Birla Institute of Technology and Science, Pilani; PGDBA - IIM, Ahmedabad

Date of Appointment :

04.12.2009

DIN No.:

00531120

 

 

Name :

Ms. Vibha Umesh Padalkar

Designation :

Director

Address :

6A and 7, Tarang, Plot No. 224 Tamil Sangham Marg, Sion (East), Mumbai-400022, Maharashtra, India

Date of Birth/ Age :

05.05.1968

Qualification :

Chartered Accountant from The Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in India

Date of Appointment :

14.08.2012

DIN No.:

01682810

 

 

Name :

Mr. Vegulaparanan Kasi Viswanathan

Designation :

Director

Address :

F 01, 1st Floor, Legacy Caldera 56 SRT Road, Cunningham Cross Road, Bangalore-560052, Karnataka, India

Qualification :

Commerce Graduate, and Chartered Accountant from the Institute of Chartered Accountants of India

Date of Appointment :

25.04.2014

DIN No.:

01782934

 

 

Name :

Mr. Gerald Edgar Grimstone

Designation :

Director

Address :

34, Boscobel Place London Swiw9pe GB

Qualification :

Master of Arts, Master of Science in Chemistry, Merton College, Oxford University and NATO-CCMS Fellowship Wolfson College, Oxford University

Date of Appointment :

10.11.2012

DIN No.:

01910890

 

 

Name :

Mr. Sumit Bose

Designation :

Additional Director

Address :

Flat No. 902,Tower 21, Common Wealth Games Village, Near Akshardham, Laxmi Nagar, East Delhi-110092, India

Qualification :

Master of Arts (History), St. Stephen's College, University of Delhi; Master of Science (Social Policy and planning), London School of Economics

Date of Appointment :

19.07.2016

DIN No.:

03340616

 

 

Name :

Mr. Ranjan Mathai

Designation :

Additional Director

Address :

60, National Media Center, DLF Phase 3 Nathupur(67) DLF QE , Farrukhnagar, Gurugram - 122002, Haryana, India

Qualification :

M.A (Political Science), University of Pune; Alumnus of the National Defence College, Delhi (1987)

Date of Appointment :

22.07.2016

DIN No.:

07572976

 

 

Name :

Mr. Jamshed Jiji Irani

Designation :

Additional Director

Address :

H No. 3 C Road (East), Northern Town, Bistupur East, Singhbhum, Jamshedpur – 831001, Jharkhand, India

Date of Appointment :

11.08.2017

DIN No.:

00311104

 

 

Name :

Mr. Alwarthirunagari Kuppuswamy Thiruvenkata Chari

Designation :

Additional Director

Address :

181-A, Twin Towers, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Appointment :

04.08.2017

DIN No.:

00746153

 

 

Name :

Rushad Abadan

Designation :

Alternate Director

Address :

12/5 Church Hill, Edinburgh EH10 4BG, United Kingdom

Date of Appointment :

02.02.2018

DIN No.:

08035538

 

 

Name :

James Baird Aird

Designation :

Alternate Director

Address :

8 Rattray Way, Edinburgh EH10 5TU, United Kingdom

Date of Appointment :

02.02.2018

DIN No.:

01057384

 

 

KEY EXECUTIVES

 

Name :

Mr. Narendra Yeshwant Gangan

Designation :

Company Secretary

Address :

601, Shimmering Heights, Bhagoji Keer Marg, Near Paradise Cinema, Mahim, Mumbai – 400016, Maharashtra, India

Date of Appointment :

18.07.2017

PAN No.:

AASPG3438N

 

 

Name :

Mr. Manish Ghiya

Designation :

Company Secretary and Head - Compliance and Legal

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on March, 2018

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

Promoter and Promoter Group

1628140340

80.93

Public

382819496

19.03

Shares held by Employee Trust

780207

0.04

Grand Total

2011740043

100.00

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

0.00

Any Other (specify)

1038514075

51.62

Housing Development Finance Corporation Limited

1038514075

51.62

Sub Total A1

1038514075

51.62

A2) Foreign

0.00

Any Other (specify)

589626265

29.31

Standard Life (Mauritius Holdings) 2006 Limited

589626265

29.31

Sub Total A2

589626265

29.31

A=A1+A2

1628140340

80.93

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

B1) Institutions

0

0.00

Mutual Funds/

39144742

1.95

Alternate Investment Funds

6017997

0.30

Foreign Portfolio Investors

179521469

8.92

Nomura India Investment Fund Mother Fund

23364697

1.16

Financial Institutions/ Banks

374843

0.02

Insurance Companies

2962357

0.15

Provident Funds/ Pension Funds

8817

0.00

Sub Total B1

228030225

11.33

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

60327087

3.00

Individual share capital in excess of INR 0.200 Million

48590473

2.42

NBFCs registered with RBI

7075983

0.35

Any Other (specify)

38795728

1.93

Clearing Members

1263597

0.06

Director or Director's Relatives

8459879

0.42

Foreign Nationals

525

0.00

Bodies Corporate

7474176

0.37

Non-Resident Indian (NRI)

1410466

0.07

Non-Resident Indian (NRI) Non-Repatriable

844225

0.04

Trusts

19334110

0.96

Unclaimed or Suspense or Escrow Account

8750

0.00

Sub Total B3

154789271

7.69

B=B1+B2+B3

382819496

19.03

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged into carrying on the business of life insurance. [Registered Activity]

 

 

Products :

Item Code No.

Product Description

99713119

Life Insurance

65110

Life Insurance (to carry on, either singly or in association with any other person or entity, all kinds of life insurance business)

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

Not Available

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

Not Available

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

(As on 31.03.2017)

14800 (Approximately) 

 

 

Bankers :
  • HDFC Bank Limited
  • The Federal Bank Limited
  • Bank of Baroda
  • State Bank of India
  • Union Bank of India
  • Indian Bank
  • RBL Bank Limited
  • The Saraswat Co-op Bank Limited
  • Axis Bank Limited
  • Corporation Bank
  • Yes Bank Limited
  • Citibank N.A.
  • DCB Bank Limited
  • IDFC Bank Limited
  • Bandhan Bank Limited
  • Paschim Banga Gramin Bank
  • Allahabad Bank

 

Auditors 1 :

 

Name :

Price Waterhouse LLP

Chartered Accountants

Address :

7th Floor, Tower A - Wing 1, Business Bay, Airport, Road, Yerwada, Pune-411006, Maharashtra, India

PAN N Income-tax PAN of auditor or auditor's firm :

AAFFP3698A

 

 

Auditors 2 :

 

Name :

G M Kapadia and Company

Chartered Accountants

Address :

36B Tamarind House, Tamarind Lane, Fort, Mumbai - 400001, Maharashtra, India

PAN N Income-tax PAN of auditor or auditor's firm :

AAAFG4713G

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company:

(As on 31.03.2017)
  • Housing Development Finance Corporation Limited (HDFC Limited)

L70100MH1977PLC019916

 

 

Investing Company :
  • Standard Life (Mauritius Holdings) 2006 Limited

 

 

Wholly Owned Subsidiaries :

(As on 31.03.2017)
  • HDFC Pension Fund Management Company Limited

U66020MH2011PLC218824

 

  • HDFC International Life and Re Company Limited

 

 

Fellow Subsidiaries :

(As on 31.03.2017)
  • HDFC Asset Management Company Limited
  • HDFC Developers Limited
  • HDFC Holdings Limited
  • HDFC Trustee Company Limited
  • HDFC Realty Limited
  • HDFC Investments Limited
  • HDFC ERGO General Insurance Company Limited
  • GRUH Finance Limited
  • HDFC Sales Private Limited
  • HDFC Venture Capital Limited
  • HDFC Ventures Trustee Company Limited
  • HDFC Property Ventures Limited
  • Credila Financial Services Private Limited
  • Griha Investments (subsidiary of HDFC Holdings Limited)
  • HDFC Education and Development Services Private Limited
  • Griha Pte Ltd., Singapore (Subsidiary of HDFC Investments Ltd.)
  • Windermer Properties Private Limited
  • Grandeur Properties Private Limited
  • Whinchester Properties Private Limited
  • Pentagram Properties Private Limited
  • Haddock Properties Private Limited

 

 

Entities over which control is exercised :
  • HDFC Investment Trust
  • HDFC Investment Trust II

 

 

CAPITAL STRUCTURE

 

After 17.07.2018

 

Authorised Capital: Not Available

 

Issued, Subscribed & Paid-up Capital: INR 20117.400 Million

 

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3000000000

Equity Shares

INR 10/- each

INR 30000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1998475283

Equity Shares

INR 10/- each

INR 19984.753 Million

 

 

 

 

 

Of the above, Share Capital amounting to INR 12297.601 Million (Previous year : INR 12297.601 Million) is held by Housing Development Finance Corporation Limited, the holding company.

 

FINANCIAL DATA

[all figures are in Indian Rupees Million]

 

ABRIDGED BALANCE SHEET [STANDALONE]

 

SOURCES OF FUNDS

 

31.03.2018

31.03.2017

31.03.2016

SHAREHOLDERS' FUNDS:

 

 

 

Share Capital

20117.400

19984.753

19952.881

Share Application money pending allotment of shares

8.900

0.000

0.000

Reserves and Surplus

27064.000

18078.976

12045.851

Credit / (Debit) Fair Value Change Account

301.600

0.323

(412.372)

SUB-TOTAL

47491.900

38386.793

31586.360

BORROWINGS

 

--

--

POLICYHOLDERS' FUNDS:

 

 

 

Credit / (Debit) Fair Value Change Account

6220.200

3981.437

536.093

Policy Liabilities

423192.700

323819.326

244006.434

Insurance Reserves

--

--

--

Provision for Linked Liabilities

465.649

430289.670

385599.845

Add: Fair value change

80.333

77774.939

41938.350

Provision for Linked Liabilities

545981.900

508064.609

427538.195

Funds for discontinued policies

 

 

 

i) Discontinued on account of non-payment of premium

25758.800

29791.549

29528.368

ii) Others

113.200

148.651

203.592

Total Provision for Linked & Discontinued Policyholders Liabilities

571853.900

538004.809

457270.155

SUB-TOTAL

1001266.900

865805.572

701812.682

Funds for Future Appropriations

9592.000

8667.828

7054.766

Funds for future appropriation - Provision for lapsed policies unlikely to be revived

--

--

--

TOTAL

1058350.700

912860.193

740453.808

 

 

 

 

 

 

 

 

APPLICATION OF FUNDS INVESTMENTS:

 

 

 

Shareholders

40703.300

32455.805

26401.505

Policyholders'

453471.400

346915.391

258628.745

Assets held to cover Linked Liabilities

371853.900

538004.809

457270.155

Loans

187.400

478.516

930.694

Fixed Assets

3414.000

3529.158

3963.745

CURRENT ASSETS:

 

 

 

Cash and Bank Balances

11084.700

7964.970

6466.032

Advances and Other Assets

24099.800

21712.520

12804.066

SUB-TOTAL(A)

35184.600

29677.490

19270.098

Current Liabilities

46027.200

37735.448

25597.006

Provisions

436.700

465.531

414.128

SUB-TOTAL

46463.900

38200.979

26011.134

NET CURRENT ASSETS

(11279.300)

(8523.489)

(6741.036)

Miscellaneous Expenditure (to the extent not written off or adjusted)

--

--

--

Debit Balance in Profit and Loss Account (Shareholders' Account)

--

--

--

TOTAL

1058350.700

912860.193

740453.808

 

 

PROFIT & LOSS ACCOUNT

 

Particulars

31.03.2018

POLICYHOLDERS’ A/C

 

Gross premium income

 

(a) First Year Premium 

47384.600

(b) Renewal Premium 

122148.000

(c) Single Premium 

66111.500

Net Premium income

233709.700

Income from investment (Net)

85946.300

Other income

1118.200

Transfer of funds from shareholders A/c

1566.500

Total

322340.700

Commission on

 

(a) First Year Premium 

8702.300

(b) Renewal Premium 

1549.700

(c) Single Premium 

497.300

Net commission

10749.300

Operating Expense related to insurance business

 

(a) Employees remuneration and welfare expense

12917.700

(b) other operating expense

18675.300

Expense of Management

42342.300

Provisions for doubtful debts (including bad debts written off)

--

Provisions for diminution in value of investments

(9.300)

Goods and services Tax/Service Tax charge on linked charges

2969.200

Provision for taxes

1755.500

Benefits paid

131114.200

Change in actual liability

133222.600

Total

311394.500

Surplus / (Deficit)

10946.200

Appropriations

 

(a) Transferred to shareholders A/c

10022.000

(b) funds for future Appropriation

924.200

Details of Surplus / Deficit

 

(a) Interim bonus paid

231.300

(b) Terminal bonus paid

1934.100

(c) Allocation of bonus to policyholders

7083.500

(d) Surplus shown in the Revenue Account

10946.200

Total Surplus

20195.100

SHAREHOLDERS’ A/C

 

Transfer from policyholders’ Account

10022.000

Total income under Shareholders’ Account

 

(a) Investment income

2802.600

(b) Other income

130.200

Expenses other than those related to insurance business

125.400

Transfer of funds to Policyholders’ Account

1566.500

Provision for doubtful debts (including write off)

--

Provision for diminution in value of investments

(4.500)

Profit before tax

11267.400

Provision for tax

177.400

Profit after tax and before Extraordinary items

11090.000

 

 

REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

 

POLICYHOLDERS' ACCOUNT (TECHNICAL ACCOUNT)

 

PARTICULARS

 

 

31.03.2017

31.03.2016

 

 

 

 

PREMIUMS EARNED - NET

 

 

 

(a) Premium

 

194454.858

163129.776

(b) Reinsurance ceded

 

(1706.214)

(1341.980)

(c) Re-insurance accepted

 

--

--

SUB-TOTAL

 

192748.644

161787.796

 

 

 

 

INCOME FROM INVESTMENTS

 

 

 

(a) Interest, Dividends and Rent - Gross

 

40676.129

34725.222

(b) Profit on sale / redemption of investments

 

38940.647

37552.531

(c) (Loss on sale / redemption of investments)

 

(3900.126)

(9849.434)

(d) Transfer /Gain on revaluation / change in Fair value

 

35836.588

(44710.459)

(f) Amortisation of (premium)/ discount on investments

 

(146.848)

187.874

SUB-TOTAL

 

11406.390

17905.735

 

 

 

 

Other Income

 

 

 

(a) Contribution from the Shareholders' A/c

 

353.890

380.041

(b) Income on Unclaimed amount of Policyholders

 

616.270

0.000

(b) Other income

 

419.001

591.131

SUB-TOTAL

 

1389.161

971.172

 

 

 

 

Total (A)

 

305544.195

180664.702

 

 

 

 

Commission

 

7920.249

7018.436

Operating Expenses related to Insurance Business

 

23852.810

18718.307

Provision For Doubtful Debts

 

--

--

Bad Debts Written Off

 

--

--

Provision for Tax

 

1519.776

1745.512

Provisions (other than taxation)

 

 

 

(a) For diminution in the value of investments (Net)

 

122.439

(20.437)

(b) Others

 

(59.697)

52.223

Service Tax linked charges

 

2160.735

1853.865

Total (B)

 

35516.312

29367.906

 

 

 

 

Benefits Paid (Net)

 

98421.708

81769.061

Interim Bonuses Paid

 

152.348

78.084

Terminal Bonuses Paid

 

1429.825

572.636

Change in valuation of liability in respect of life policies

 

 

 

(a) Gross

 

80311.953

48638.158

(b) Amount ceded in Reinsurance

 

(499.061)

2576.320

(c) Amount accepted in Reinsurance

 

--

--

(d) Unit Reserve

 

80526.414

6136.585

(e) Funds for Discontinued Policies

 

208.240

1930.161

Total (C)

 

260551.427

141701.005

 

 

 

 

SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)

 

9476.456

9595.791

 

 

 

 

APPROPRIATIONS

 

 

 

 

Transfer to Shareholders' Account

 

7182.475

6708.617

 

Transfer to Other Reserve

 

--

--

 

Funds of Future Appropriation – Provision for lapsed policies unlikely to be revived

 

(486.811)

(384.057)

 

Balance being Funds for Future Appropriations

 

2900.127

1896.008

Total (D)

 

9476.456

9595.791

Notes:

 

 

 

* Represents the deemed realised gain as per norms specified by the Authority

 

 

 

** Represents Mathematical Reserves after allocation of bonus

 

 

 

The total surplus as mentioned below :

 

 

 

(a) Interim Bonuses Paid

 

152.348

78.084

(b) Terminal Bonuses Paid

 

1429.825

572.636

(c) Allocation of Bonus to policyholders

 

5918.023

5570.774

(d) Surplus shown in the Revenue Account

 

9476.456

9595.791

Total Surplus :[(a)+(b)+(c)+(d)]

 

16976.652

15817.285

 

 

 

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017

 

SHAREHOLDERS' ACCOUNT (NON-TECHNICAL ACCOUNT)

 

PARTICULARS

 

 

31.03.2017

31.03.2016

Amounts transferred from the Policyholders' Account (Technical Account)

 

7863.394

7182.475

Income from Investments

 

 

 

a)     Interest, Dividends & Rent - Gross

 

1833.107

1639.411

b)    (Profit on sale / redemption of investments)

 

619.789

136.260

c)     (Loss on sale/redemption of investments)

 

(153.091)

(85.198)

d)    Amortization of (premium) /discount on investments

 

(31.202)

(2.162)

SUB-TOTAL

 

2268.600

1688.311

Other Income

 

 

105.516

0004

TOTAL

 

 

8976.302

8794.771

Expenses other than those directly related to the insurance business

 

680.170

213.586

Bad debts written off

 

--

--

Provisions (Other than taxation)

 

 

 

For diminution in the value of investments (net)

 

(43.499)

32.633

Provision for doubtful debts

 

--

--

Others - Provision for standard and non-standard assets

 

0.000

0.081

Contribution to the Policyholders' Fund

 

353.890

380.041

TOTAL

 

990.564

626.341

Profit / (Loss) before tax

 

9141.433

8349.961

Provision for Taxation

 

220.097

165.928

Profit / (Loss) after tax

 

8921.336

8184.033

 

 

 

 

APPROPRIATIONS

 

 

 

Balance at the beginning of the year

 

9858.344

3835.258

Interim dividends paid during the year

 

(2197.413)

(1795.403)

Proposed final dividend

 

--

--

Dividend distribution tax

 

(447.349)

(364.544)

Transfer to reserves/ other accounts

 

--

--

Profit / (Loss) carried forward to the Balance Sheet

 

16134.918

9858.344

 

 

 

 

Earnings/ (Loss) Per Share (INR)

 

 

 

Basic

 

4.47

4.10

Diluted

 

4.44

4.10

 

 

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

62388.746

56903.483

44613.451

 

 

QUARTERLY RESULTS

 

Particulars

 

30.12.2017

Audited / Unaudited

 

Unaudited

 

 

1st Quarter

Net Sales

 

54199.90

Total Expenditure

 

95156.80

PBIDT (Excl OI)

 

(40956.90)

Other Income

 

43262.40

Operating Profit

 

2305.50

Interest

 

NA

Exceptional Items

 

NA

PBDT

 

2305.50

Depreciation

 

NA

Profit Before Tax

 

2305.50

Tax

 

232.30

Provisions and contingencies

 

NA

Profit After Tax

 

2073.20

Extraordinary Items

 

NA

Prior Period Expenses

 

NA

Other Adjustments

 

NA

Net Profit

 

2073.20

 

 

 

ABRIDGED BALANCE SHEET [CONSOLIDATED]

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

SHAREHOLDERS' FUNDS:

 

 

 

Share Capital

 

19984.753

199952.881

Reserves and Surplus

 

17955.334

11995.001

Credit / (Debit) Fair Value Change Account

 

323.064

(412.372)

SUB-TOTAL

 

38263.151

31535.510

BORROWINGS

 

--

--

POLICYHOLDERS' FUNDS:

 

 

 

Credit / (Debit) Fair Value Change Account

 

3981.437

536.093

Policy Liabilities

 

 

 

relating to Life insurance business

 

323819.326

244006.434

relating to Reinsurance business

 

7717.000

--

Insurance Reserves

 

--

--

Provision for Linked Liabilities

 

430289.670

385599.845

Add: Fair value change

 

77774.939

41938.350

Provision for Linked Liabilities

 

508064.609

427538.195

Funds for discontinued policies

 

 

 

i) Discontinued on account of non-payment of premium

 

29791.549

29528.368

ii) Others

 

148.651

203.592

Total Provision for Linked & Discontinued Policyholders Liabilities

 

538004.809

457270.155

SUB-TOTAL

 

865813.289

701812.682

Funds for Future Appropriations

 

8667.828

7054.766

Funds for future appropriation - Provision for lapsed policies unlikely to be revived

 

--

--

TOTAL

 

912744.268

740402.958

 

 

 

 

 

 

 

 

APPLICATION OF FUNDS INVESTMENTS:

 

 

 

Shareholders

 

32314.060

25537.780

Policyholders'

 

346915.361

258628.745

Assets held to cover Linked Liabilities

 

538004.809

457270.155

Loans

 

478.516

930.694

Fixed Assets

 

3534.652

3973.954

CURRENT ASSETS:

 

 

 

Cash and Bank Balances

 

7973.800

7273.970

Advances and Other Assets

 

21744.401

12328.719

SUB-TOTAL(A)

 

29718.201

19602.689

Current Assets

 

37754.302

25125.085

Provisions

 

467.059

415.974

SUB-TOTAL

 

38221.361

25541.059

NET CURRENT ASSETS

 

(8503.160)

(5938.370)

Miscellaneous Expenditure (to the extent not written off or adjusted)

 

--

--

Debit Balance in Profit and Loss Account (Shareholders' Account)

 

--

--

TOTAL

 

912744.268

740402.958

 

 

PROFIT & LOSS ACCOUNT [CONSOLIDATED]

 

PARTICULARS

 

 

31.03.2017

31.03.2016

Amounts transferred from the Policyholders' Account (Technical Account)

 

7863.394

7182.475

Income from Investments

 

 

 

a)     Interest, Dividends & Rent - Gross

 

1867.503

1662.174

b)    (Profit on sale / redemption of investments)

 

620.505

137.121

c)     (Loss on sale/redemption of investments)

 

(153.091)

(85.198)

d)    Amortization of (premium) /discount on investments

 

(31.964)

(1.966)

SUB-TOTAL

 

2303.053

1712.131

Other Income

 

 

0.729

105.651

TOTAL

 

 

10167.176

9000.257

Expenses other than those directly related to the insurance business

 

767.528

253.678

Bad debts written off

 

--

--

Provisions (Other than taxation)

 

 

 

For diminution in the value of investments (net)

 

(43.499)

32.633

Provision for doubtful debts

 

--

--

Others - Provision for standard and non-standard assets

 

0.000

0.081

Contribution to the Policyholders' Fund

 

353.890

380.041

TOTAL

 

1077.922

666.433

Profit / (Loss) before tax

 

9089.254

8333.824

Provision for Taxation

 

220.097

165.956

Profit / (Loss) after tax

 

8869.157

8167.868

 

 

 

 

APPROPRIATIONS

 

 

 

Balance at the beginning of the year

 

9836.782

3829.861

Interim dividends paid during the year

 

(2197.413)

(1795.403)

Proposed final dividend

 

--

--

Dividend distribution tax

 

(447.349)

(365.544)

Profit / (Loss) carried forward to the Balance Sheet

 

16061.177

9836.782

 

 

 

 

Earnings/ (Loss) Per Share (INR)

 

 

 

Basic

 

4.44

4.09

Diluted

 

4.42

4.09

 

 

STOCK PRICES

 

Face Value

INR 10.00/- each

Market Value

INR 514.95/- each

 

 

STOCK PRICES

 

District and Sessions Judge, West, THC

Case Details

Case Type: Civ DJ - CIVIL SUIT FOR DJ and ADJ
Filing Number: 14101/2012Filing Date: 27-03-2012
Registration Number: 609958/2016Registration Date: 29-03-2016
CNR Number: DLWT01-000431-2012



Case Status

First Hearing Date: 20th April 2012
Next Hearing Date: 10th January 2017
Stage of Case: Consideration
Court Number and Judge: 604-Additional District Judge

Petitioner and Advocate

1) MS HBN HOUSING FINANCE LTD.
    Address - 303, 3RD FLOOR, VARDHMAN CHAMBER NO. 1 SONIA COMPLEX, VIKASPURI, NEW D ELHI. WEST DELHI


Respondent and Advocate

1) HDFC STANDARD LIFE INSURANCE COMPANY LTD.
    Address - A-24, COMMUNITY CENTRE, JAWALA HERI MARKET, PASCHIM VIHAR, NEW DELHI-110063 WEST DELHI

2) MR. DHEERAJ
    HDFC STANDARD LIFE INSURANCE COMPANY LIMITED, A-24, COMMUNITY CENTRE, JAWALA HERI MARKET, PASCHIM VIHAR NEW DELHI
        
3) MR. SAMEER BHATIA
    RZ-5, INDRA PARK, NEW PANKHA ROAD, DELHI-59
        
4) MR. RAHUL
    219, SECOND FLOOR, POCKET-5, SECTOR-22, ROHINI, NEW DELHI-85
        
5) MS. MEENA SHOKEEN
    RZ-71, MANGOLPUR KHURD, DELHI-83
        
6) SUKANTI SAHOO
    RZ-86, C3, RAJ NAGAR PART II, PALAM COLONY, DELHI-45
        
7) MS. NIRMAL
    A-154, SANGAM PARK, MCD DHALAO, R.P BAGH, DELHI-09
        
8) MR. NUTAN SHANKAR
    PIGGERY FARMS, URI ENCLAVE, RING ROAD, DELHI CANTT, NEW DELHI-10
        
9) MS ARCHANA BABBAR
    HOUSE NO. 103-104, E BLOCK, POCKET-4, SECTOR-16, ROHINI , DELHI-85
        
10) KASHISH GUPTA
    609, POCKET-1, PASCHIM PURI, DELHI-63
        

History of Case Hearing

 

Registration Number

Judge

Business On Date

Hearing Date

Purpose of hearing

609958/2016

20-04-2012

01-06-2012

Misc. cases/purpose

609958/2016

01-06-2012

04-06-2012

Misc. cases/purpose

609958/2016

04-06-2012

12-09-2012

Misc. cases/purpose

609958/2016

12-09-2012

19-10-2012

Issues

609958/2016

19-10-2012

07-01-2013

Issues

609958/2016

07-01-2013

13-03-2013

Misc. Arguments

609958/2016

13-03-2013

22-05-2013

Misc. Arguments

609958/2016

22-05-2013

30-08-2013

Misc. Arguments

609958/2016

30-08-2013

05-11-2013

Misc. Arguments

609958/2016

05-11-2013

15-11-2013

Misc. Arguments

609958/2016

15-11-2013

24-02-2014

Misc. Arguments

609958/2016

24-02-2014

13-05-2014

Misc. Arguments

609958/2016

13-05-2014

30-07-2014

Misc. cases/purpose

609958/2016

30-07-2014

10-09-2014

Misc. cases/purpose

609958/2016

10-09-2014

05-11-2014

Misc. cases/purpose

609958/2016

05-11-2014

14-01-2015

Misc. cases/purpose

609958/2016

14-01-2015

04-03-2015

Misc. cases/purpose

609958/2016

04-03-2015

29-04-2015

Misc. cases/purpose

609958/2016

29-04-2015

29-07-2015

Misc. cases/purpose

609958/2016

29-07-2015

16-09-2015

Misc. cases/purpose

609958/2016

16-09-2015

18-11-2015

Misc. cases/purpose

609958/2016

18-11-2015

20-01-2016

Misc. cases/purpose

609958/2016

20-01-2016

18-05-2016

Misc. cases/purpose

609958/2016

Additional District Judge

18-05-2016

16-08-2016

Consideration

609958/2016

Additional District Judge

16-08-2016

09-11-2016

Consideration

609958/2016

Additional District Judge

09-11-2016

10-01-2017

Consideration

 

 

Orders

 

  Order Number

  Order Date

  Order Details

 

  1

  16-08-2016

  COPY OF ORDER

 

  2

  09-11-2016

  COPY OF ORDER

 

Case Transfer Details Between The Courts

Regn. Number

Transfer Date

From Court Number
and Judge

To Court Number 
and Judge

609958/2016

24-02-2014 

478 -

452 -

609958/2016

30-03-2016 

452 - Additional District Judge

604 - Additional District Judge

CJ JD Kota HQ

Case Details

Case Type: Civil Suit
Filing Number: 757/2017Filing Date: 05-06-2017
Registration Number: 335/2017Registration Date: 05-06-2017
CNR Number: RJKT04-000786-2017

 

 

 

Case Status

First Hearing Date: 07th June 2017
Next Hearing Date: 03rd August 2017
Stage of Case: ISSUES
Court Number and Judge: 20-Civil Judge and JM South

Petitioner and Advocate

1) SMT. DWARIKA AND OTHER
    Address - KUNJ BIHARI COLONY, WARD NO.-27, ATRU ROAD, BARAN
    Advocate- NAVEEN SHARMA

2) MISS SUNITA
    KUNJ BIHARI COLONY, WARD NO.-27, ATRU ROAD, BARAN
        
3) MANISH
    KUNJ BIHARI COLONY, WARD NO.-27, ATRU ROAD, BARAN
        
4) MISS SHIMLA
    KUNJ BIHARI COLONY, WARD NO.-27, ATRU ROAD, BARAN
        

Respondent and Advocate

1) HDFC STANDARD LIFE INSURANCE COMPANY LTD.
    Address - 414, S. GOPAL TOWER, SHOPPING CENTER, KOTA


Acts

Under Act(s)

Under Section(s)

Code of Civil Procedure

O7R1

History of Case Hearing

 

 

Registration Number

Judge

Business On Date

Hearing Date

Purpose of hearing

335/2017

Civil Judge and JM South

07-06-2017

08-06-2017

AWAITING NOTICE

335/2017

Civil Judge and JM South

08-06-2017

12-06-2017

AWAITING NOTICE

335/2017

Civil Judge and JM South

12-06-2017

13-06-2017

AWAITING NOTICE

335/2017

Civil Judge and JM South

13-06-2017

16-06-2017

AWAITING NOTICE

335/2017

Civil Judge and JM South

16-06-2017

19-06-2017

REPLY/SAY

335/2017

Civil Judge and JM South

19-06-2017

20-06-2017

REPLY/SAY

335/2017

Civil Judge and JM South

20-06-2017

27-06-2017

REPLY/SAY

335/2017

Civil Judge and JM South

27-06-2017

06-07-2017

REPLY/SAY

335/2017

Civil Judge and JM South

06-07-2017

17-07-2017

REPLY/SAY

335/2017

Civil Judge and JM South

17-07-2017

03-08-2017

ISSUES

 

 

 

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

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

NOTE: Registered office of the company has been shifted from Ramon House. 169, Backbay Reclamation, Churchgate, Mumbai – 400020, Maharashtra, India to the present address w.e.f. 23.10.2013.

 

 

CORPORATE INFORMATION (AS ON 31.03.2017)

 

The Company is formed as a joint venture between Housing Development Finance Corporation Limited ('HDFC Limited'), India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. The Company obtained a Certificate of Registration from the Insurance Regulatory and Development Authority of India ('IRDAI') on October 23, 2000 for carrying on the business of life insurance. The Company’s Certificate of Renewal of Registration dated January 31, 2014 was valid till March 31, 2015. Pursuant to Section 3 read with Section 3A as amended by Insurance Laws (Amendment) Act, 2015, the process of annual renewal of the Certificate of Registration issued to insurers under Section 3 of the Insurance Act, 1938, was deleted. Consequently, the said certificate continues to be in force. The Company offers a range of individual and group insurance solutions. The portfolio comprises of various insurance and investment products such as Protection, Pension, Savings, Investment and Health.

 

The Company has two wholly owned Subsidiaries, HDFC Pension Management Company Limited (‘HDFC Pension’) and HDFC International Life and Re Company Limited. HDFC Pension (‘the Indian Subsidiary’) is a public limited company domiciled in India and was incorporated under the provisions of the erstwhile Companies Act, 1956 on June 20, 2011 with the purpose of managing pension fund business. HDFC International Life and Re Company Limited (‘the Foreign Subsidiary’) incorporated in Dubai on January 10, 2016 under the DIFC (Dubai International Finance Centre) Companies Law No. 2 of 2009 under registration number 2067. HDFC International Life and Re Company Limited is regulated by the Dubai Financial Services Authority ("DFSA") and is licensed to undertake life reinsurance business in the UAE. In future, the Company intends to undertake life insurance business in other jurisdictions, with necessary regulatory permissions and approvals.

 

These financial statements comprise the consolidated financial statements of HDFC Standard Life Insurance Company Limited, the parent company and its wholly owned subsidiaries ‘HDFC Pension Management Company Limited’ and ‘HDFC International Life and Re Company Limited’ (together referred to as “the Group”)

 

 

BUSINESS REVIEW AND OUTLOOK

 

Industry Outlook

 

The FY 2017 was a critical year for life insurance industry in India. The macro-economic factors and demographic profile continue to support growth for financial services. Players continue to adapt to the changing macro landscape, while competing to hold their turf.

 

Within the life insurance industry, private life insurers continued to grow at relatively faster rate and gained higher market share within Individual segment. Even under the Group segment, private players continue to gain traction and have delivered healthy growth.

 

Improving macro trends with India outperforming other emerging markets, increasing traction in equity markets and higher focus on financial inclusion and penetration to increase the financial savings was reflected in 26% growth in Individual New Business Weighted Received Premia (WRP) and 20% growth in Group premia for the private players during FY 2017. At an industry level, the sector witnessed growth of 21% in Individual New Business WRP and 21% in Group premia during the year.

 

Demonetisation drive launched by Government of India in November 2016 also triggered growth for select players

in individual segment, leveraging the spurt in the bank deposits which is reflected in above industry trends.

 

There also has been steady increase in proportion of business generated through corporate agents comprising

banks and other financial services players amongst private players during past 5 years. This channel contributed 52% of total individual reported new business in 9M FY 2017 across all private players (Source: Public disclosures)

 

On the product segments, reduced allowable charges to distributors’ within ULIP segment and higher expense structures led many players to move towards traditional products. However, since 2014 market performance and transparent product structures have helped increase pull for ULIP products. There is increasing demand for protection products and its implicit higher new business margins (NBMs) has resulted in recent focus on the term

segment across players.

 

 

COMPANY PERFORMANCE

 

Individual Business Performance

 

HDFC Life ranked #3 among private players in terms of Individual WRP with a market share of 12.7% in FY 2017,

versus 14.7% in FY 2016. During the year under review, the Company issued 10.82 lac policies in the Individual segment. The Company continues to offer diversified product suite across Linked, Participating and Non Participating segments.

 

The Company also continued its focus on pure protection segment including mortality and morbidity coverage, reflected through increase in overall new business sum assured by 43%. Overall, traditional Non Participating products contributed 13% of Individual APE, versus 14% in FY 2016 and Participating products contributed 35% versus 30% in FY 2016. The Linked business continued to dominate the product portfolio of the Company contributing 52% versus 56% last year.

 

In line with its strategy, the Company has been working to ensure diversification and strengthening its distribution

mix across Corporate agents, Individual agents, Brokers and Direct channels, including Online. Digital remains a key thrust area and the Company has built a robust technology platform for its distributors and customers to leverage its digital capabilities.

 

The Company has an efficient technology platform, which ensures ease of purchase for consumers, while enabling rapid integration with distributors. Digital procurement, fulfillment and customer servicing continue to be the key focus areas. In FY 2017, over 98% of the proposal forms were submitted through digital medium and 70% of renewal business was received through online modes. The Company has various process and system controls, delivery assurance and internal and concurrent audits, that leads to lower dependency risks, scalability and ability to anticipate any issues or concerns.

 

 

AWARDS

 

The Company received more than 40 awards and accolades during the year under review across financial disclosures, customer service, technology, digital solutions, products, human resources, marketing, etc. The Company received the National Quality Excellence Award 2017 for being the most innovative Company. The Company also received Golden Shield award for Excellence in Financial Reporting for their Annual Report FY 2016 from ICAI (The Institute of Chartered Accountants of India).

 

AWARDS AND ACCOLADES

 

  • DL Shah Award - Platinum Award for Enterprise Mobility Project
  • IDC Insights Awards for Mobility
  • Intelligent Enterprise Awards for Mobility
  • BFSI Tech Maestros Award for Mobility
  • DMA Asia Echo Awards for ‘memories.hdfclife.com’ and its campaign
  • Marketing Campaign of the Year for Memories for Life Campaign
  • Bronze Award for Memories for Life Campaign in the Direct Campaign for Retention / Loyalty category
  • LACP Gold Vision Awards (2016) for the Annual Report FY 2016
  • Gold shield for Excellence in Financial Reporting (Annual Report FY 2016) by ICAI
  • Best Innovative Product – Life and Health Insurance
  • 7th Asia’s Best Employer Brand Awards under 5 different categories
  • Global Awards for Excellence in Quality Management & Leadership
  • Asia BFSI Awards for Best Customer Service Organisation
  • Best Quality Circle Award for Faster Claims Payout, Promoting Go Green Concept and Supporting Digitisation
  • Won Best Loyalty Program Award for the Memories for Life Campaign
  • Award for One of the Most Effective Marketing Communication Ideas
  • Awards for Best Creative Advertising Campaign – BFSI
  • Got recognition under Customer Value Leadership category in the Service sector
  • AOTS Outstanding Workplace Excellence Practices
  • National Quality Excellence Awards 2017 for most innovative Company
  • Award for Best Practices Benchmarking Women’s Workforce and Raising the Bar on Gender Diversity
  • Best Digital Customer Experience Initiative
  • SAP ACE Award for Technology Adoption in BFSI

 

 

FINANCIALS AND BUSINESS OUTLOOK

 

the first Financial year, HDFC International earned a Gross Income of US$ 354,192 while its expenses stood at US$ 1,327,218. The period under review ended with a loss of US$ 973,027. The financial performance numbers are for the period from January 10, 2016 to March 31, 2017.

 

During the period under review, HDFC International signed reinsurance treaties for two distinct lines of individual life business, with one of the largest local insurers in the UAE. It also offered reinsurance capacity for two group life schemes, also with the same ceding insurer.

 

HDFC International also returned a modest Underwriting Income (Technical Profit), which is testimony to the strength of its underlying underwriting and risk assessment processes.

 

In the years to come, HDFC International intends to expand its footprints by offering reinsurance capacity to ceding life insurers in other markets. By combining an aggressive outreach into other markets with its ever improving underwriting experience, it expects to significantly improve its revenue streams in FY 2018.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

A. Macro Economic Trends

 

The last year under consideration has been marked by several developments in India and worldwide. Globally, the large economies saw a pull back from the pessimism of deflation and slow growth. The IMF (International Monetary Fund) projected global growth at 3.1% for 2016, accelerating to 3.4% and 3.6% for 2017 and 2018 respectively. The improved outlook on growth helped commodities recover from the lows seen at the beginning of 2016. Among the developed markets, US led the way with a 1.6% growth for 2016, a modest expansion, which helped the economy to chip away the unemployment rate steadily to below 5% levels. Growth expectations for the US were raised higher after the surprise election win for Donald Trump, who had espoused an expansionary fiscal

policy and tax and regulatory reform in the course of his campaign. The Euro area suffered a jolt, in the middle of the year, as Britain voted to break away from the European Union. The impact, however, was short-lived as the improving growth prospects in the rest of the world, and a pick up in Germany, the bloc's largest economy, turned sentiments around. The Chinese economy expanded 6.7% in 2016, in line with the expectations. However, continued stimulus and pick up in global trade growth were the key positives for Chinese growth.

 

On the domestic side, the economy benefitted from a near normal monsoon, which helped alleviate some stress in the agrarian and rural economy caused by poor rainfallover the previous two years. The improvement in the

agriculture output helped rein in inflation and provided room for RBI to ease monetary policy. In November, the sudden demonetisation of large currency notes signaled an escalation in the policy actions to curb and penalize illicit activities.

 

The demonetisation move has the potential to generate long-term benefits for the overall economy with specific impact on the financial services sector. It should potentially reflect in form of lower ‘black money’, higher digitalisation and transparency and increasing shift of household saving towards financial assets. All of these could eventually lead to higher GDP growth, better tax compliance and greater tax revenues.

 

The Government was also successful in getting constitutional amendment passed through the legislatures, to pave the way for the long awaited Goods and Services Tax (GST) regime. This is a significant tax reform and augurs well for improving the tax to GDP ratio in India. GST will create a common Indian market and further aid in increasing tax compliance, boost investment and growth and improve governance.

 

Lower interest rates have been favorable for life insurance industry, as investors are scouting for other investment

alternatives than the traditional FDs which are offering lower returns on the investment.

 

Numerous other initiatives have been undertaken by the Government, to increase financial inclusion and penetration across the country and build a resilient and resurgent Indian economy. The impact of above initiatives is reflected in form of 35% increase in average AUM of mutual funds (Source: AMFI) and 26% increase in new  business (individual and group) insurance premium (Source: Life council data) during FY 2017.

 

In FY 2017, real GDP is projected to grow at 6.5%, as per the current Economic survey, versus 7.6% growth registered in FY 2016. The marginal decline is attributed to multiple reasons including demonetisation, movement in oil prices and stressed infrastructure assets position, etc. Despite the short term growth slowdown, India remains one of the fastest growing emerging market economies and the continued reforms shall play a key role to deliver stronger growth in future. IMF has also raised India’s growth estimate for FY 2018 to 7.7%.

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

 

 

CONTINGENT LIABILITIES:

 

Particulars

 

31.03.2017

(INR In Million)

Partly paid-up investments

 

5650.000

Claims, other than against policies, not acknowledged as debts by the Company

 

7.766

Underwriting commitments outstanding

 

--

Guarantees given by or on behalf of the Company

 

0.917

Statutory demands and liabilities in dispute, not provided for

 

997.270

Reinsurance obligations

 

--

Others

 

--

 

 

FIXED ASSETS

 

  • Goodwill
  • Intangible Assets (Computer Software)
  • Land-Freehold
  • Leasehold Improvements
  • Buildings
  • Furniture and Fittings
  • Information Technology
  • Equipment
  • Vehicles
  • Office Equipment

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 67.38

UK Pound

1

INR 91.39

Euro

1

INR 79.89

 

 

INFORMATION DETAILS

 

Information Gathered by :

SHAL

 

 

Analysis Done by :

VAR

 

 

Report Prepared by :

KJL

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--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

YES

--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)

 

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.