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MIRA INFORM REPORT
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Report No. : |
508825 |
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Report Date : |
12.05.2018 |
IDENTIFICATION DETAILS
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Name : |
STAR UNION DAI-ICHI LIFE INSURANCE COMPANY LIMITED |
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Registered
Office : |
11th Floor, Vishwaroop I.T. Park, Plot No. 34,
35 and 38, Sector: 30A of IIP, Vashi, Navi Mumbai – 400703, Maharashtra |
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Tel No.: |
91-22-39546200 |
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Country : |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
25.09.2007 |
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Com. Reg. No.: |
11-174472 |
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Capital
Investment / Paid-up Capital : |
INR 2589.641 Million |
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CIN No.: [Company Identification
No.] |
u66010MH2007PLC174472 |
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IEC No.: [Import-Export Code No.] |
Not Divulged |
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TIN No.: |
Not Divulged |
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GSTN : [Goods & Service Tax
Registration No.] |
27AALCS3949Q1ZC |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
aalcs3949Q |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The
Company’s life insurance business comprises Participating Life (Individual)
Non-Participating Life (Individual & Group) Annuity (Individual &
Group) Pension Individual Heath Individual and Unit Linked Life (Individual
& Group) and Pension segments. [Registered Activity] |
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No. of Employees
: |
3051 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Star Union DAI-ICHI Life Insurance Company was incorporated in the year 2007. “Union Bank of India” holds 25% “Bank of India” holds 28% and “Dai- Ichi Life Holding, Inc ‘’holds 46% in the subject company. It is engaged in providing Life Insurance services. Bank of India and Union Bank are leading Indian public sector banks and have a robust nationwide network. Dai-ichi Life is the second largest life insurance company of Japan. As per the available financial record of 2017, 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 takes into consideration equity infused by its promoters. However, rating strengths are partially offset challenges expected in maintaining growth and sustaining growth and sustaining profitability amid potential regulatory changes and rising competition. Business is active. Payment seems to be usually correct. In view of aforesaid, the company can be considered for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
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 12.05.2018
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 DECLINED BY
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Name : |
Mr. Rakesh |
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Designation : |
Finance Department |
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Contact No.: |
91-22-39546200 |
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Date : |
11.05.2018 |
MANAGEMENT NON-COOPERATIVE [TEL. NO.: 91-22-66684571]
LOCATIONS
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Registered/ Head/ Corporate Office : |
11th Floor, Vishwaroop I.T. Park, Plot No. 34,
35 and 38, Sector: 30A of IIP, Vashi, Navi Mumbai – 400703, Maharashtra, India |
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Tel. No.: |
91-22-39546200/ 66684571/ 66684593/ 39546300 |
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Fax No.: |
91-22-66684591 |
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E-Mail : |
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Website : |
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Regional Offices : |
Located At:
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Branch Offices : |
Located At:
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DIRECTORS
AS ON: 31.03.2017
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Name : |
Mr. Girish Pandurang Kulkarni |
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Designation : |
Managing Director and Chief Executive Officer |
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Address : |
22, Dhanishtha Tarangam Complex, Behind Cadburrys, Thane-West - 400602, Maharashtra, India |
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Date of Birth/Age : |
03.12.1963 |
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Date of Appointment : |
12.04.2012 |
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DIN No.: |
01683332 |
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Name : |
Mr. Norimitsu Kawahara |
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Designation : |
Director |
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Address : |
16-47, Akanedai 1-Chome, Aoba-Ku, Yokohama, Kanagawa 000000 JP |
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Date of Appointment : |
26.04.2017 |
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DIN No.: |
01951958 |
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Name : |
Mrs. Neharika Vohra |
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Designation : |
Director |
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Address : |
House No 413, Indian Institute of Management Vastrapur, Ahmedabad - 380015, Gujarat, India |
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Date of Birth/Age : |
21.11.1966 |
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Date of Appointment : |
28.03.2017 |
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DIN No.: |
06808439 |
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Name : |
Mr. Shigeo Tsuyuki |
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Designation : |
Director |
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Address : |
208, Mita-Seifu Garden, 1-11-45, Mita, Minato-Ku,Tokyo Japan 1080073 JP |
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Date of Appointment : |
05.08.2014 |
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DIN No.: |
06893960 |
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Name : |
Mr. Atul Kumar Goel |
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Designation : |
Director |
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Address : |
401, Preetam, 65, Southern Avenue Kolkata 700029, West Bengal, India |
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Date of Birth/Age : |
26.12.1964 |
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Date of Appointment : |
26.04.2017 |
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DIN No.: |
07266897 |
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Name : |
Mrs. Chieko Hasunuma |
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Designation : |
Director |
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Address : |
Cosmos Aobadai Ciel-Vert Ichibankan Building 317 33-12 Sakuradai Aoba-ku Yokohama-Shi , Kanagawa Tokyo Japan 2270061 JP |
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Date of Appointment : |
28.09.2016 |
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DIN No.: |
07598299 |
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Name : |
Mr. Ganesan Rajamani Rajamani |
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Designation : |
Director |
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Address : |
10, Jayshree Pestomsagar Road No 2, Tilak Nagar, Mumbai - 400089, Maharashtra, India |
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Date of Birth/Age : |
14.09.1957 |
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Date of Appointment : |
25.10.2016 |
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DIN No.: |
07615445 |
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Name : |
Sethurathnam Ravi |
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Designation : |
Additional Director |
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Address : |
D-218, Saket, New Delhi - 110017, India |
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Date of Appointment : |
26.12.2017 |
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DIN No.: |
00009790 |
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Name : |
Mr. Ramesh Lakshman Adige |
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Designation : |
Additional Director |
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Address : |
C-12, 1st Floor, Hauz Khas, New Delhi - 110016, India |
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Date of Appointment : |
21.12.2017 |
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DIN No.: |
00101276 |
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Name : |
Mr. Parshuram Panda |
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Designation : |
Additional Director |
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Address : |
Flat No. B-21, Diamond Court, 40, Napean Sea Road, Mumbai - 400006, Maharashtra, India |
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Date of Appointment : |
25.01.2018 |
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DIN No.: |
08049888 |
KEY EXECUTIVES
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Name : |
Mrs. Hitoshi Yamaguchi |
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Designation : |
Dy. Chief Executive Officer & Dy. Chief Financial Officer |
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Address : |
903, 9th Floor, Beau Monde A-Wing Appasaheb Marathe Marg, Prabhadevi Mumbai - 400025, Maharashtra, India |
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Date of Appointment : |
01.04.2015 |
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PAN No.: |
AMUPY6205H |
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Name : |
Mr. Rakesh Kumar |
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Designation : |
Company Secretary |
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Address : |
1307, B Wing, Maruti Paradise CHS, Sector 15, Belapur, Navi Mumbai - 400614, Maharashtra, India |
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Date of Appointment : |
08.02.2012 |
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PAN No.: |
ANLPK8950H |
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Name : |
Mr. Rakesh |
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Designation : |
Finance Department |
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Name : |
Mr. Y. V. Rao |
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Designation : |
EVP, Chief Investment Officer & Head Shared Services |
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Name : |
Mr. Yuichiro Abe |
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Designation : |
Chief Risk Officer |
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Name : |
Gnana William |
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Designation : |
Chief Internal Auditor |
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Name : |
Mrs. Sreemaya Athikkat |
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Designation : |
Chief Compliance Officer |
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Audit & Ethics Committee |
· Mr. T. C. Nair, Chairman · Mr. A. K. Shukla · Mr. N. Kawahara |
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Investment Committee: |
· Mr. R. Ganesan · Mr. Elected Chairman · Mr. A. K. Goel · Mr. N. Kawahara · Mr. Girish Kulkarni · Mr. Hitoshi Yamaguchi · Mr. Abhay Tewari · Mr. Y. Venkat Rao · Mr. Yuichiro Abe |
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Risk
Management Committee: |
· Mr. T. C. Nair, Chairman · Mr. R. Ganesan · Mr. A. K. Goel · Mr. N. Kawahara · Mr. Girish Kulkarni |
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Policyholders’
Protection Committee: |
· Mr. A. K. Shukla, Chairman · Mr. R. Ganesan · Mrs. Neharika Vohra · Mr. A. K. Goel · Mr. N. Kawahara ·
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Nomination & Remuneration Committee: |
· Mr. A. K. Shukla, Chairman · Mr. T. C. Nair · Mr. R. Ganesan · Mrs. Neharika Vohra · Mr. A. K. Goel · Mr. N. Kawahara |
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With Profits
Committee: |
· Mr. A. K. Shukla, Chairman · Mrs. Hema Malini amkrishnan · Mr. Girish Kulkarni · Mr. Hitoshi Yamaguchi · Mr. Abhay Tewari |
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CSR
Committee: |
· Mr. T. C. Nair, Chairman · Mr. R. Ganesan · Mrs. Neharika Vohra · Mr. A. K. Goel · Mr. N. Kawahara · Mr. Girish Kulkarni |
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HR Committee: |
· Mr. R. Ganesan, Chairman · Mrs. Neharika Vohra · Mr. A. K. Goel · Mr. N. Kawahara · Mr. Girish Kulkarni |
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Share Allotment Committee: |
· Mr. Girish Kulkarni, Elected, Chairman · Mr. R. Ganesan · Mr. A. K. Goel · Mr. N. Kawahara |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 28.09.2017
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Names of Shareholders |
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No. of Shares |
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Bank of India, India |
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74999998 |
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Union Bank of India, India |
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64999999 |
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Dai-Ichi Life Holdings Inc. |
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118964142 |
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Rajan Rao |
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1 |
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Rajamani Ganesan |
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1 |
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Dinesh Kumar Mistry |
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1 |
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Hitoshi Yamaguchi |
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1 |
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Total |
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258964143 |
AS ON: 28.09.2017
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Equity Share Breakup |
Percentage of Holding |
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Category |
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Promoters (Banks) |
54.06 |
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Promoters (Others - Foreign Promotor) |
45.94 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The
Company’s life insurance business comprises Participating Life (Individual)
Non-Participating Life (Individual & Group) Annuity (Individual &
Group) Pension Individual Heath Individual and Unit Linked Life (Individual
& Group) and Pension segments. [Registered Activity] |
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Products : |
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Brand Names : |
“SUD Life” |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS: (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
3051 (Approx.) |
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Bankers : |
·
Bank of India ·
Union Bank of India ·
HDFC Bank Limited ·
Axis Bank Limited ·
ICICI Bank Limited ·
Deutsche Bank ·
Narmada Jhabua Gramin Bank ·
Jharkhand Gramin Bank ·
Gramin Bank of Aryavart ·
Vidarbha Konkan Gramin Bank ·
Kashi Gomti Samyut Bank ·
Central Bank of India |
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Facilities : |
-- |
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Auditors 1 : |
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Name : |
S. Jaykishan Chartered Accountants |
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Address : |
D-618 Vashi Plaza 4th Floor, Sector 17, Vashi, Navi Mumbai - 400705,
Maharashtra, India |
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Income-tax
PAN of auditor or auditor's firm : |
AASFS4445F |
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Auditors 2 : |
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Name : |
K.S. Aiyar and Company Chartered Accountants |
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Address : |
F-7, Laxmi Mills, Shakti Mills, Mahalaxmi, Mumbai - 400011,
Maharashtra, India |
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Income-tax
PAN of auditor or auditor's firm : |
AAAFK6843P |
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Internal Auditors
1: |
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Name : |
Mukerjee and Company Chartered Accountants |
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Internal Auditors
2: |
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Name : |
Rodi Dabir and Company Chartered Accountants |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Joint Venture
Company: |
· Bank of India · Union Bank of India · Dai-ichi Life Holdings, Inc. [formerly known as The Dai-ichi Life Insurance Company, Limited (Japan)] |
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Regional Rural
Bank: |
· Gramin Bank of Aryavart sponsored by Bank of India · Jharkhand Gramin Bank sponsored by Bank of India · Narmada Jhabua Gramin Bank sponsored by Bank of India · Vidharbha Konkan Gramin Bank sponsored by Bank of India · Kashi Gomti Samyut Gramin Bank sponsored by Union Bank of India |
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Subsidiaries of Joint Venture Company: |
· BOI AXA Mutual Fund · Union Asset Management Company Private Limited (formerly known as Union KBC Mutual Fund) |
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Associated Company of Joint Venture
Company (Bank of India): |
Securities Trading Corporation of India Limited |
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Associated Company of Joint Venture
Company (Dai-ichi Life Holdings, Inc.): |
DLI Asia Pacific Pte. Limited |
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Mr. A K Shukla (Director in the Company /
Associate Company): |
· Almondz Global Securities Limited · India Infoline Securities Limited |
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Mr. Arun Tiwari (Director in the Company
/ Associate Company): |
General Insurance Corporation of India |
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Mrs. Neharika Vohra (Director in the
Company / Associate Company) |
ZEE Entertainment Enterprises Limited |
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Significant Influence: |
· Star Union Dai-ichi Life Insurance Company Limited Employees Gratuity Trust · Star Union Dai-ichi Employees Group Leave Encashment trust · SUD Life Foundation |
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Others
Related Party: |
UBI (Employees) Pension Fund |
CAPITAL STRUCTURE
AS ON: 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
3250000000 |
Equity Shares |
INR 10/- each |
INR 32500.000 Million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
258964143 |
Equity Shares |
INR 10/- each |
INR 2589.641 Million |
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Share Capital held by
Joint Venture Partners:
|
Particulars |
31.03.2017 |
|
Bank of India |
750000 |
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Union Bank of India |
650000 |
|
Dai-ichi Life Holdings, Inc. [formerly known as The Dai-ichi Life Insurance Company, Limited (Japan)] |
1189641 |
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|
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Total |
2589641 |
Pattern of
Shareholding [As certified by the Management]
|
Particulars |
31.03.2017 |
|
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Promoters: |
Number of
Shares |
% of Holding |
|
Indian : |
|
|
|
Bank of India |
75000000 |
28.96% |
|
Union Bank of India |
65000000 |
25.10% |
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|
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Foreign : |
|
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|
Dai-ichi Life Holdings Inc. [formerly known as The Dai-ichi Life Insurance Company Limited (Japan)] |
118964143 |
45.94% |
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Others : |
|
|
|
Total |
258964143 |
100.00% |
NOTE: Out of the above, 4 shares (PY 4
shares) are held by 4 nominees (PY 4 nominees) of Bank of India, Union Bank of
India and Dai-ichi Life Holdings, Inc. [formerly known as The Dai-ichi Life
Insurance Company, Limited Japan)].
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
Share Capital |
2589.641 |
2500.000 |
2500.000 |
|
Reserves & Surplus |
2686.056 |
1700.000 |
1700.000 |
|
Credit/ Debit Fair Value Charge Account |
(0.218) |
0.559 |
0.001 |
|
SUB TOTAL |
5275.479 |
4200.559 |
4200.001 |
|
BORROWINGS |
0.000 |
0.000 |
0.000 |
|
POLICYHOLDERS’
FUNDS |
|
|
|
|
Credit/ Debit Fair Value Change Account |
(24.998) |
(39.515) |
(38.571) |
|
Policy Liability |
30134.420 |
22859.329 |
17403.063 |
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
PROVISION FOR
LINKED LIABILITIES |
|
|
|
|
Linked Liabilities |
19801.270 |
22564.925 |
24272.097 |
|
Fair Value Change Account |
4804.700 |
3737.921 |
6285.452 |
|
Fund for Discontinued Policies |
|
|
|
|
Discontinued on account of non-payment of premium |
4030.228 |
4231.112 |
3629.178 |
|
Others [on account of surrenders] |
9.833 |
21.215 |
39.456 |
|
TOTAL |
28646.031 |
30555.173 |
34226.183 |
|
SUB TOTAL |
58755.453 |
53374.987 |
51590.675 |
|
Fund for Future Appropriations- Participating segment |
1231.749 |
752.231 |
677.517 |
|
TOTAL |
65262.681 |
58327.777 |
56468.193 |
|
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|
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APPLICATION OF
FUNDS |
|
|
|
|
Investments |
2990.906 |
1650.185 |
1594.613 |
|
Shareholder Policyholders |
30251.164 |
22456.797 |
17915.633 |
|
Assets held to cover Linked Liabilities |
28646.031 |
30555.173 |
34226.183 |
|
Loans |
94.498 |
103.951 |
73.079 |
|
Fixed Assets |
224.826 |
224.536 |
225.894 |
|
CURRENT ASSETS |
|
|
|
|
Cash and Bank Balances |
414.694 |
478.016 |
487.953 |
|
Advance and Others Assets |
3709.713 |
4083.345 |
2872.125 |
|
SUB TOTAL |
4124.407 |
4561.361 |
3360.078 |
|
|
|
|
|
|
Current Liabilities |
2035.307 |
2748.401 |
2677.770 |
|
Provisions |
19.425 |
9.698 |
9.634 |
|
SUB TOTAL |
2054.732 |
2758.099 |
2687.404 |
|
NET CURRENT
ASSETS |
2069.675 |
1803.262 |
672.674 |
|
Miscellaneous Expenditure [to the extent not written, off or adjusted] |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account [Shareholder’s Account] |
985.581 |
1533.873 |
1760.117 |
|
TOTAL |
65262.681 |
58327.777 |
56468.193 |
REVENUE
ACCOUNT
POLICYHOLDERS
ACCOUNT [TECHNICAL ACCOUNT]
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Premium Earned
Net |
|
|
|
|
Premium |
15108.825 |
13074.705 |
11346.798 |
|
Reinsurance Earned |
(310.737) |
(298.100) |
(41.704) |
|
Reinsurance Accepted |
0.000 |
0.000 |
0.000 |
|
Income From
Investment |
|
|
|
|
Interest, Dividend and Rent |
3410.571 |
3147.391 |
2715.086 |
|
Profit on Sale / Redemption of Investment |
2653.553 |
1518.217 |
2754.762 |
|
Loss on Sale / Redemption of Investment |
(168.954) |
(601.932) |
(260.491) |
|
Transfer / Gain on Revaluation / Charge in Fair Value |
0.000 |
0.000 |
0.000 |
|
Unrealised Gain / (Loss) |
1066.779 |
(2547.533) |
3282.362 |
|
Other Income |
|
|
|
|
Contribution from Shareholders Account |
0.000 |
0.000 |
0.000 |
|
Fees and Charges |
0.000 |
0.000 |
0.000 |
|
Miscellaneous Income |
35.531 |
43.696 |
80.510 |
|
Total (A) |
21795.568 |
14336.444 |
19877.323 |
|
|
|
|
|
|
Commission |
1369.633 |
1046.700 |
843.704 |
|
Operating Expenses related to Insurance Business |
2671.017 |
2594.489 |
2250.091 |
|
Provision for Doubtful Debts |
0.024 |
1.302 |
0.856 |
|
Bad Debts Written Off |
0.535 |
1.753 |
0.000 |
|
Provision for Tax |
0.000 |
0.000 |
0.000 |
|
Provision (Other
than taxation) |
|
|
|
|
For diminution in the value of Investment |
0.000 |
0.000 |
0.000 |
|
Others |
0.000 |
0.000 |
0.000 |
|
Service tax Charge on liked charges |
85.396 |
95.871 |
82.338 |
|
Total (B) |
4126.605 |
3740.115 |
3176.989 |
|
|
|
|
|
|
Benefit Paid (Net) |
11292.874 |
8599.180 |
7748.317 |
|
Interim Bonus Paid |
1.157 |
0.926 |
1.238 |
|
Change in
valuation of liability in respect of life policies |
|
|
|
|
Gross |
7450.534 |
5912.637 |
2190.171 |
|
Amount ceded in Reinsurance |
(175.443) |
(456.369) |
(101.862) |
|
Amount accepted in Reinsurance |
0.000 |
0.000 |
0.000 |
|
Transfer to Linked Funds |
(1696.876) |
(4254.705) |
4575.030 |
|
Transfer to Discounted Funds |
(212.266) |
583.694 |
1626.284 |
|
Total (C) |
16659.980 |
10385.363 |
16039.178 |
|
Surplus
(Deficits) (D) = A-B-C |
1008.983 |
210.966 |
661.156 |
|
Amount
transferred from shareholders account (non-technical account) |
73.138 |
297.083 |
534.597 |
|
Appropriation |
|
|
|
|
Transfer to shareholders accounts |
602.601 |
433.335 |
582.475 |
|
Transfer to balance sheet |
0.000 |
0.000 |
0.000 |
|
Balance being funds for future appropriation |
479.520 |
74.714 |
613.278 |
|
Total |
1082.121 |
508.049 |
1195.753 |
|
Details of Total
Surplus |
|
|
|
|
Interim Bonus Paid |
1.157 |
0.926 |
1.238 |
|
Allocation of Bonus to Policyholders |
207.972 |
210.230 |
225.775 |
|
Surplus Shown in Revenue Account |
1008.983 |
210.966 |
661.156 |
|
Total Surplus |
1218.112 |
422.122 |
888.169 |
PROFIT
& LOSS ACCOUNT
SHAREHOLDERS ACCOUNT [NON-TECHNICAL ACCOUNT]
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Amounts transferred
from the Policyholders’ Account (Technical Account) |
602.601 |
433.335 |
582.475 |
|
Income from Investments |
|
|
|
|
Interest, Dividends & Rent – Gross |
105.205 |
120.824 |
105.725 |
|
Profit on sale/redemption of investments |
32.394 |
22.061 |
18.444 |
|
(Loss on sale/ redemption of investments) |
(0.508) |
(2.226) |
(13.479) |
|
Other Income |
|
|
|
|
Miscellaneous Income |
1.106 |
0.098 |
0.633 |
|
Total (A) |
740.798 |
574.092 |
693.798 |
|
Expense other than those directly related to the insurance business |
109.363 |
44.394 |
23.100 |
|
Bad debts written off |
0.000 |
0.075 |
0.000 |
|
CSR Expenditure |
10.005 |
5.000 |
4.485 |
|
Contribution to the Policyholders Account |
|
|
|
|
Non-Par Life |
0.000 |
279.202 |
0.000 |
|
Non-Par Annuity |
0.000 |
1.936 |
0.000 |
|
Non-Par Health |
72.905 |
15.822 |
0.000 |
|
Linked Life |
0.000 |
0.000 |
534.597 |
|
Linked Group |
0.233 |
0.123 |
0.000 |
|
Provisions (Other than taxation) |
|
|
|
|
For diminution in the value of investments (Net) |
0.000 |
0.000 |
0.000 |
|
Provision for doubtful debts |
0.000 |
0.813 |
0.748 |
|
Others |
0.000 |
0.000 |
0.000 |
|
Total |
192.506 |
347.365 |
562.930 |
|
Profit / (Loss) before tax |
548.292 |
226.727 |
130.868 |
|
Prior period expenses |
0.000 |
0.483 |
2.141 |
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
Profit / (Loss) after tax |
548.292 |
226.244 |
128.727 |
|
Appropriations |
|
|
|
|
Balance at the beginning of the year |
(1533.873) |
(1760.117) |
(1888.844) |
|
Interim dividends paid during the year |
0.000 |
0.000 |
0.000 |
|
Proposed final dividend |
0.000 |
0.000 |
0.000 |
|
Dividend
distribution tax |
0.000 |
0.000 |
0.000 |
|
Transfer to
reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
Profit / (Loss) carried to the Balance Sheet |
(985.581) |
(1533.873) |
(1760.117) |
|
Earnings Per Equity Share |
|
|
|
|
Basic
earnings per equity share |
2.19 |
0.90 |
0.51 |
|
Diluted
earnings per equity share |
2.19 |
0.90 |
0.51 |
|
Nominal
value per equity share |
10.00 |
10.00 |
10.00 |
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 |
(1489.335) |
1519.948 |
744.694 |
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 |
No |
|
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 |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES:
NO CHARGES EXISTS FOR COMPANY
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
Statutory demands/liabilities in dispute not provided for (Tax matters) |
21.697 |
34.612 |
|
Repudiation of Death claims (net of Reinsurance amounting: CY INR 50.580 million PY INR 7.501 million) |
143.992 |
54.220 |
|
Others (service related and other matters) |
16.364 |
12.330 |
|
Others (employee related) |
7.100 |
7.100 |
|
NOTES: # Represents cases filed against the company’s decision of repudiation of death claims, customer complaints etc. * In respect of contingent liability of INR 34.612 million as at March 31, 2016, Company has received a favorable order from the CIT (A) pertaining to AY 2012-13 amounting to INR 21.788 million, and a favorable order amounting to INR 1,850 from Service Tax Department pertaining to money received on account of proposal deposit, as a result the same is excluded from the current period. Contingent liability of INR 21.697 million as at March 31, 2017 includes income tax liability of INR 0.171 million and service tax liability of INR 21.526 million, the details of the same are given below: Income Tax: The Assessing Officer has filed an appeal with the ITAT against the order of the CIT (A) for the A.Y. 2009-10 and A.Y. 2010-11 on account of negative reserves as per Actuarial report, being added back to net loss. However, the company has received a favorable order from the ITAT for both the Assessment years. T DS liability of INR 0.171 million is reflected in default summary of TRACES of Income Tax. Since the same is not backed up by evidence, the Company has not recognized this as a confirmed liability. Service Tax: In current year company has received an order for CENVAT credit reversal for FY 2010-11 amounting to INR 21.060 million. The company has filed an appeal against the same and based on the advice of the experts, the company does not expect a future liability in this regard. For FY 2012-13 company has received Show Cause cum Demand notice amounting to INR 0.466 million on account of advance premium. The company has filed the response on the subject matter and based on the advice of the experts, the Company does not expect a future liability in this regard. |
||
CORPORATE INFORMATION
Subject a joint venture between Bank of India (28.96%) Union Bank of India (25.10%) and Dai-ichi Life Holdings Inc (formerly known as The Dai-ichi Life Insurance Company Limited (Japan)) (45.94%) was incorporated on 25th September 2007 as a Company under the Companies Act 2013 (‘the Act’). The Company is licensed by the Insurance Regulatory and Development Authority of India (‘IRDAI’) on 26th December 2008 for carrying on life insurance business in India. The license is in force as at Balance sheet date.
The
Company commenced Life Insurance Business w.e.f. February 9 2009. The Company’s
life insurance business comprises Participating Life (Individual) Non-Participating
Life (Individual & Group) Annuity (Individual & Group) Pension
Individual Heath Individual and Unit Linked Life (Individual & Group) and
Pension segments. Some of these policies have riders attached to them such as
Accident and Disability Benefits Critical Illness. These products are
distributed primarily through corporate agents brokers proprietary sales force
and also through tied agents.
MANAGEMENT
DISCUSSION AND ANALYSIS
MACRO-ECONOMIC
ENVIRONMENT
Global growth moderated to 3.1% in 2016 with lower growth across both
advanced and emerging economies. As the US Federal Reserve increased interest
rates twice, once towards the end of 2016 and then again in March 2017,
monetary policy in other parts of the world was largely accommodative aimed at
boosting economic activity India’s GDP grew by 7.2% year-on-year during the
first nine months of the FY2016-17 as compared to 7.7% in the comparable period
of FY2015-16. Growth was observed in the Agriculture sector as both Industrial
and Services demonstrated moderate growth as compared to the previous fiscal
India witnessed a number of policy initiatives such as withdrawal of Specified
Bank Notes (“demonetization”), institutionalization of a framework for recovery
and resolution through the Insolvency and Bankruptcy Code, 2016, further
liberalization of foreign investment policies and enactment of legislations
related to the Goods and Services Tax (GST).
REGULATORY
ENVIRONMENT
The Insurance Regulatory and Development Authority of India (IRDAI)
plans to issue redesigned initial public offering (IPO) guidelines for
insurance companies in India, which are looking to divest equity through the
IPO route.
IRDAI has allowed insurers to invest up to 10 per cent in additional
tier 1 (AT1) bonds, which are issued by Banks to augment their tier 1 capital,
in order to expand the pool of eligible investors for the banks
IRDAI has formed two committees to explore and suggest ways to promote
e-commerce in the sector in order to increase insurance penetration and bring
financial inclusion.
IRDAI has formulated a regulation, IRDAI (Obligations of Insures to
Rural and Social Sectors) Regulations, 2015, in pursuance of the amendments
brought about under section 32B of the Insurance Laws (Amendment) Act, 2015.
These regulations impose obligations on insurers towards providing insurance
cover to the rural and economically weaker sections of the population.
In April 2017, IRDAI started a web portal – isnp.irda. gov.in – that
will allow the insurers to sell and register policies online. This portal is
open to intermediaries in insurance business as well.
India Post Payments Bank (IPPB) plans to start selling insurance
products and mutual funds of other companies by early 2018, and is to be open
only to “non- exclusive” tie-ups. Nearly 100 firms, domestic as well as
foreign, have showed keen interest in partnering with the Bank.
From October 2016, IRDAI has mandated having an E-insurance (electronic insurance) account to purchase insurance policies.
IRDAI has tightened its equity investment restrictions; insurers can now only invest in shares of listed companies that have paid no less than 10% dividends for last 2 years, instead of the earlier 4% in last 8 out 9 years
New regulation regarding maximum commission/ remuneration on single/ regular premium payable to insurance agent/ insurance intermediary was issued in December 2016 and came into effect on 1st April 2017
INFORMATION TECHNOLOGY MANAGEMENT
Technology is a key enabler for Business Operations of the Company and there have been multiple technological initiatives undertaken in fiscal 2017, aimed at complete automation of transactions and Paperless Processing
Integrated workflow towards New Business Processes in a completely
decentralized setting, strengthening of overall information security of the
Organisation through implementation of technical and process controls were some
of the key technological initiatives undertaken in FY2016-17
AWARDS AND
ACCOLADES
• Corporate Governance Excellence Award, awarded by ASSOCHAM, 2015
• Best Life Insurance Company in Private Sector by ABP News at BFSI
Awards, 2015
• Company with the Highest Claims Settlement by ABP News at BFSI Awards,
2015
• Life Insurance Company of the Year, India Insurance Awards organised
by Fintelekt, 2015
• Claims Service Leader Award, India Insurance Awards organised by
Fintelekt, 2015
• Award for Excellence in HR through Technology at 9th Employer Branding
Awards, 2015
• Giving Back 2015 – CSR & NGO Awards Excellence in Corporate Social
Responsibility by UBM
• Bancassurance Leader of the Year Award, India Insurance Awards
organised by Fintelekt, 2014
• Sustainable and Balanced Business Performance, SKOCH Order of Merit,
2014
• Excellence in Financial Reporting, awarded by ICAI in FY 2011-12 and
FY 2012-13
TRENDS IN THE LIFE
INSURANCE INDUSTRY
FY2016-17 was a significant year for the sector, as led by excess retail
liquidity during the demonetization phase and with its corresponding impact on
enhanced financial savings, industry returned to 20%+ growth after nine
financial years, the last being in FY2007-08.
Retail Weighted Received Premium (RWRP i.e. 10% of Single Premium sales
and 100% of Regular Premium Sales) on account of New Business expanded from INR
441060.000 million in FY2015-16 to INR 532180.000 million. The Market Share of
Private Players increased to 55% of the overall industry, driven by Bank-owned &
Bancassurance-driven players, while LIC’s share was at 45%.
However, apart from visible retail traction, other key metrics largely
remained under stress for the industry at large, renewal premium growth was
stymied, operating costs remained high for private players especially those
without a captive reach and trends in surplus creation were sluggish.
INDUSTRY &
COMPANY OUTLOOK
The insurance industry in the country is set in the growth trajectory
and is expected to grow significantly in the coming years due to rising
financial literacy. The Indian insurance sector is set to mark a significant
growth in the coming years.
The lower level of penetration, favorable demography, rising financial
literacy along with increase in domestic savings consequent to rise in per
capita income are expected to support the growth of insurance sector going
forward. During the current year Company has grown under various facets of the
business and also maintained a significant lead over its closest competitors in
terms of Individual new business premium.
Company has also undertaken several initiatives ranging from customer
education, revival campaigns to product innovation etc. to keep the customer
centricity as the main focus.
STRATEGY &
PROGRESS ON IND AS IMPLEMENTATION
The Ministry of Corporate Affairs (MCA), Government of India has
notified the Companies (Indian Accounting Standards) Rules, 2015 on February
16, 2015. A reference is also invited to the Press Release dated January 18,
2016 issued by the MCA outlining the roadmap for implementation of
International Financial Reporting Standards (IFRS) converged Indian Accounting
Standards (Ind AS) for Banks and Insurance Companies. Accordingly, the Company
shall comply with the Indian Standards (Ind AS) for financial statements for
accounting periods beginning from April 1, 2018 onwards, with comparatives for
the periods ending March 31, 2018.
IRDAI (Authority) has also vide circular no. IRDA/F&A/CIR/
IFRS/038/03/2016 dated March 01, 2016 on implementation of Indian Accounting
Standards (Ind AS) has directed all Insurers to disclose in annual report a
detailed strategy and progress made in this regard.
Accordingly, following are the details of the strategy and progress made
by the Company on implementation of Ind AS:
Steering Committee
-
Company has set up a steering committee headed by MD & CEO comprising
members from cross functional areas of the Company. The Audit Committee will
oversee the progress of the Ind AS implementation process and report to the
Board on quarterly basis.
Roadmap for Ind AS
implementation – Company has prepared roadmap for implementation of Ind AS, its likely
impact on the financials and business, Ind AS technical requirements and
development of the systems & processes which will be affected. Company has
also appointed a consultant for implementation of Ind AS.
People &
project management – Company has set up a core team which will be
responsible for managing, planning and execution of Ind AS implementation by
ensuring that all linkages are established between accounting, system, people
and business.
Proforma
financials – With the help of the consultant and the necessary guidance,
instructions as and when received from the Authority, Company has submitted the
proforma Ind AS financial statements for the period ended December 31, 2016 and
March 31, 2017 with the Authority within the timelines as per the requirements
of the circular issued by IRDAI in this regard.
FIXED ASSETS:
Tangible Assets:
· Land-Freehold
· Leasehold Property (Improvements)
· Buildings
· Furniture & Fittings
· IT Assets - Hardware:
· End user equipments
· Servers & Networks
· Vehicles
· Office Equipment
· Air-conditioner
Intangible ASSETS:
· Goodwill
· IT Assets - Software
CMT REPORT (Corruption Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized blocked frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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 67.22 |
|
UK Pound |
1 |
INR 90.88 |
|
Euro |
1 |
INR 80.09 |
INFORMATION
DETAILS
|
Information
Gathered by : |
SHK |
|
|
|
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
ARC |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.