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Birla Sun Life Insurance
1 | ANNUAL REPORT 2014-15
Journey to empowerment
At BSLI, we believe that empowering our stakeholders with fi
nancial security is a not just a journey, but our ultimate
destination. This year, as an organisation, we have embarked on
this unique journey towards buildinga trust surplus organisation by
empowering the lives of customers, advisors and employees.
Over the last few years, the insurance industry has undergone
drastic changes. Changes in the regulatory environment in
particular have had a signifi cant impact on the development of the
industry. Consumer awareness and protection has been a critical
part of the regulatory agenda. At BSLI, we are conscious of the
fact that a long term sustainable business model is crucial towards
achieving sustainable growth.
Thus began our journey to explore new avenues, to see endless
possibilities, to experience the change in the route that leads us
to newer horizons, and to shape numerous dreams into reality. It is
undoubtedly the road less travelled towards a world of new
possibilities.
Our approach is clear. Our journey requires the right companions
(People), a navigation in the right direction (Process), and the
eventual destination (winning the trust of our Customers). The key
is to empower our people, strengthen our processes and serve our
customers, thus developing a strong partnership of long term
success.
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Dear stakeholders,
It gives me great pleasure to connect with you once again. Last
fi nancial year has been signifi cant for Birla Sun Life Insurance
(BSLI). A year that will be known in the history of BSLI as the
year of transformation, not just for BSLI but the life insurance
industry at large. This change is refl ective of our endeavour to
build a Trust surplus organisation that will epitomise a culture of
customer centricity at BSLI shaping the organisation into a
successful business model for the future.
Money as you know is a commodity that is intrinsic to the
well-being of every person. It plays a signifi cant role in
safeguarding the fi nancial future of families. And it is at the
very core of every persons sense of security and well-being. A
commitment to provide our customers with the means to protect loved
ones against lifes uncertainties is thus our primary goal. This, in
turn empowers us with a responsibility to shape up the fi
nancialwell-being of our customers with their hard earned savings
that they have bestowed with trust upon us.
Over the last 12 years, the insurance industry has been at the
helm of transformational changes. These changes came into being
primarily in response to the key challenge the life insurance
industry faces, which is lack of customer confi dence. And it is
this very issue that is at the heart of our change initiative.
MESSAGE FROM THE MD & CEO
We embarked on a unique journey towards building this trust
surplus and empowering the lives of customers, advisors and
employees by reimagining the way we conduct business. To achieve
this vision, we have relooked at our business models and business
practices, in the way we approach and provide solutions to our
customers towards proactively addressing the key challenges faced
by the industry today.
At BSLI, we have taken concrete steps in re-orienting ourselves
completely to meet the changing needs of our customers to their
satisfaction. As an organisation, we have made a conscious effort
and have moved towards co-creation through the process of solutions
counselling. We have focussed on unique customers solutions based
on exclusive needs and counselling as a method to deliver our
solutions. In this initiative, we lay emphasis on investing time
and resources in understanding customer needs better and
counselling them in every step, thus empowering them to co-create a
solution to meet fi nancial needs. Our business model is to build a
sustainable business to meet customer outcomes. These are very
simple, yet powerful principles. Our protection counsellors are
trained to provide superior advisory skills and have a deep
commitment to customer welfare, managing their hard earned money
with care.
We have taken several strides in our journey towards providing
complete customised services. These would not be possible without
the help of our advisors, strong in-house cross functional teams, a
committed management, absolute shareholder support, and overall
economic recovery.
We remain committed to our promise of ensuring the best solution
to every customer. Each one of you is a valued customer andI thank
you for accompanying us on our journey and placing your beliefs in
BSLI over the years. I would like to reinforce our commitment in
serving you in the best way possible.
The destination is not the end of our journey, but the beginning
of a new one. As we move forward, we depend on your crucial support
to guide us in the right direction. You can reach out to our
advisors with your suggestions and thoughts on making our services
even more fruitful. My team and I will always be at your behest
towards serving you better. The legendary Steve Jobs said, The ones
who are crazy enough to think that they can change the world, are
the ones who do. My team is committed to help you realise your
dreams and push ourselves to better our own best.
My best wishes on another successful journey.
The secret of change is to focus all your energy not on fi
ghting the old, but on building the new. - Socrates
Pankaj RazdanMD & Chief Executive Offi cer, BSLI
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Mr. Kumar Mangalam Birla (47) is the Chairman of the US $40
billion multinational Aditya Birla Group, which operates in 36
countries across 6 continents. Over 50% of its revenues fl ow from
its operations outside India.
Mr. Birla chairs the Boards of all of the Groups major companies
in India and globally. Among its clutch of companies globally
feature Novelis, Columbian Chemicals, Aditya Birla Minerals, Aditya
Birla Chemicals, Thai Carbon Black, Alexandria Carbon Black, Domsj
Fabriker and Terrace Bay Pulp Mill, among others. In India, he
chairs the Boards of Hindalco, Grasim, Aditya Birla Nuvo,
UltraTech, Idea, Aditya Birla Financial Services and Aditya Birla
Retail.
The Groups businesses are spread across a swath of industries.
These include aluminium, copper, cement, textiles (pulp, fi bre,
yarn, fabric and branded apparel), carbon black, insulators,
natural resources, power, agribusiness, telecommunications, fi
nancial services, IT/ITeS, retail and trading.
Business recordMr. Birla took over as Chairman of the Group in
1995, at the age of 28, after the untimely demise of his father. As
Chairman,Mr. Birla has taken the Aditya Birla Group to an
altogether higher growth trajectory. In the 18 years that he has
been at the helm of the Group, he has accelerated growth, built a
meritocracy and enhanced stakeholder value.
In the process he has raised the Groups turnover from US $2
billion in 1995, to US $40 billion today. Mr. Birla has
restructured the businesses to emerge as a global/national leader
in the sectors in which the Group operates. He has made 36
acquisitions in19 years in India and globally, the highest by an
Indian multinational in India.
The acquisition of Novelis, a global metals major, in 2007, the
second largest acquisition ever by an Indian company, led to a new
found respect for Indian companies and stoked a higher level of
interest in the country as well. Recently, the acquisition of
Columbian Chemicals, a US based company and the worlds 3rd largest
carbon black manufacturer positioned the Group as the No. 1 player
in this sector, given its own sizeable carbon black operations
today. Likewise, the acquisition of Domsj Fabriker, a leading
Swedish speciality pulp manufacturer enables the Groups Pulp and
Fibre business to further consolidate its global position.
Besides these, over the years Mr. Birla has acquired
manufacturing plants in Canada, China, Indonesia, plantations in
Laos, and mines in Australia, set up new plants in Egypt, Thailand
and China. Alongside, he has expanded capacities in all of the
Groups manufacturing units.
In India as well, he has made major acquisitions, the most
notable being the Cement division of Larsen & Toubro, Indal
from Alcan, Madura Garments from Coats Viyella, the Chlor Alkali
division of Kanoria Chemicals and Solaris Chemtech Industries.
Under his stewardship, the Aditya Birla Group enjoys a position
of leadership in all the major sectors in which it operates. Over
the years, Mr. Birla has built a highly successful meritocratic
organisation, anchored by an extraordinary force of 120,000
employees belonging to 42 different nationalities. The Aditya Birla
Group has been ranked 4th in the world and 1st in Asia Pacifi c in
the Top Companies for Leaders study 2011, conducted by Aon Hewitt,
Fortune Magazine and RBL (a strategic HR and leadership Advisory fi
rm). The Group has topped the Nielsens Corporate Image Monitor
2013-14 and emerged as the Number 1 corporate, the Best in Class,
for the second consecutive year.
In key responsible positions on various regulatory bodiesMr.
Birla holds several key positions on various regulatory and
professional Boards. He was a Director on the Central Board of
Directors of the Reserve Bank of India. He was Chairman of the
Advisory Committee constituted by the Ministry of Company Affairs
and also served on The Prime Minister of Indias Advisory Council on
Trade and Industry.
As the Chairman of Securities and Exchange Board of India (SEBI)
Committee on Corporate Governance, he authored the First Report on
Corporate Governance titled Report of the Kumar Mangalam Birla
Committee on Corporate Governance. Its recommendations were path
breaking and became the basis of corporate governance norms.
Furthermore, as the Convener of the Prime Ministers Task Force on
Administrative and Legal Simplifi cations, the extensive
recommendations made by him in his report, have been implemented in
totality. Mr. Birla also served as Chairman of SEBIs committee on
Insider Trading which formulated Corporate Governance principles
for Indian corporates.
He is on the National Council of the Confederation of Indian
Industry and the Apex Advisory Council of the Associated Chambers
of Commerce and Industry of India.
Mr. Kumar Mangalam BirlaChairman
BOARD OF DIRECTORS
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BOARD OF DIRECTORS
On the Board of Educational Institutions Mr. Birla is deeply
engaged with educational institutions. He is the Chancellor, of the
renowned Birla Institute of Technology & Science (BITS), with
campuses in Pilani, Goa, Hyderabad and Dubai.
He is a Director of the G. D. Birla Medical Research &
Education Foundation.
He serves on the London Business Schools Asia Pacifi c Advisory
Board and is an Honorary Fellow of the London Business School.
Accolades conferred on Mr. BirlaMr. Birla has won recognition
for his exemplary contribution to leadership processes and
institution/systems building. A selective list:
Inducted as an Honorary Member Rotary Club of Mumbai (November
2014)
Hello Hall of Fame Business Leader of the Year 2014 (November
2014)
US India Business Council (USIBC) 2014 Global Leadership
Award
Business Leader of the Year, the Economic Times Awards for
Corporate Excellence, 2012-13
Ranked the 4th Most Powerful CEO (2013) in the Economic Times
Corporate Indias Defi nitive Power listing of 100 CEOs
Indore Management Associations Award - National Indian Business
Icon, 2013
Forbes India Leadership Award-Flagship Award - Entrepreneur of
the Year, 2012 NDTV Profi t Business Leadership Awards 2012 - Most
Inspiring Leader
The Degree of Doctor of Science (Honoris Causa) in recognition
of his role in pioneering great Engineering products involving
Multi-disciplinary Engineering thought processes in the Country by
the Visvesvaraya Technological University, Karnataka, 2012
NASSCOMs Global Business Leader Award 2012
CNBC-TV18 India Business Leader Award 2012 for Taking India
Abroad
GQ Business Leader of the Year Award-2011 from Cond Nast India
Pvt. Ltd., an affi liate of Cond Nast Global CNN-IBN Indian of the
Year 2010-Business, for being the most outstanding business person
and making a success out of most businesses including the sunrise
sector, 2010
The All India Management Associations (AIMA), Managing India
Awards 2010 Business Leader of the Year, 2010
The AIMA JRD Tata Corporate Leadership Award, 2008
The Honorary Degree of Doctor of Science (Honoris causa) in
recognition of his invaluable contribution in the fi eld of
Business Administration by the G. D. Pant University of Agriculture
& Technology, 2008
For the development of technology and also for the involvement
in the fi eld of Industries in bringing the country at par with
other countries in the fi eld of Industries, the SRM University in
Tamil Nadu conferred the Degree of Doctor of Literature, 2008
The Asia Pacifi c Global HR Excellence Exemplary Leader Award,
2007
The Global Indian Leader of the Year by NDTV Profi t in their
Business Leader Awards category, 2007
The Lakshmipat Singhania-IIM, Lucknow National Leadership Award,
Business Leader, 2006
Represented India at the Ernst & Young World Entrepreneur
Award in Monte Carlo, Monaco in June 2006, where he was inducted as
a Member of the Ernst & Young World Entrepreneur of the Year
Academy
The Ernst & Young Entrepreneur of the Year Award, 2005
Young Super Performer in the CEO Category by Business Today,
2005
Chosen by the World Economic Forum (Davos) as one of the Young
Global Leaders, 2004
The D. Litt (honoris Causa) Degree by The Banaras Hindu
University, 2004
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Honorary Fellowship by the All India Management Association,
2004
The Business Leader of the Year, The Economic Times Awards for
Corporate Excellence 2002-2003
Business Man of the Year-2003 by Business India
The Rajiv Gandhi Award for Business Excellence and his
contribution to the country by the Mumbai Pradesh Youth Congress,
2001
The National HRD Network, The Outstanding Business Man of the
Year, 2001
The Institute of Directors Golden Peacock National Award for
Business Leadership, 2001
Hindustan Times, The Businessman of the Year, 2001
The Bombay Management Association The Management Man of the Year
1999-2000
Among the 10 super Stars of Corporate Finance Global Finance,
1998
Among the top 10 of Indias most admired and respected CEOs and
the top CEO of the coming millennium, Business World, 1998
Beyond business: Reaching out to the marginalised sections of
society A fi rm practitioner of the trusteeship concept, Mr. Birla
has institutionalised the concept of caring and giving at the
Aditya Birla Group. With his mandate, the Group is involved in
meaningful welfare driven activities that distinctively impact the
quality of life of the weaker sections of society, surrounding
hundreds of villages that are among the poorest in India, Thailand,
Indonesia, Philippines and Egypt.
In India, the Group is engaged in 3,000 villages, reaching out
to 7 million people annually and making a difference to their lives
through meticulously conceived projects, focusing on health care,
education, sustainable livelihood, infrastructure and social
causes. For instance, the Group runs 42 schools which provide
quality education to 45,000 children. Of these, over 18,000
children receive free education. Additionally, over a 100,000
youngsters benefi t from bridge educational programmes and
vocational training. Its 18 hospitals tend to more than a million
villagers. In line with its commitment to sustainable development,
the Group has partnered with the Columbia University in
establishing the Columbia Global Centres Earth Institute in Mumbai.
To embed CSR as a way of life in organisations, it has set up the
FICCI Aditya Birla CSR Centre for Excellence, in Delhi.
Educational background A commerce graduate from the Bombay
University, Mr. Birla is a Chartered Accountant. He earned an MBA
from the London Business School.
Personal detailsBorn June 14, 1967, in Kolkata, Mr. Birla was
raised in Mumbai. Mr. Birla and his wife, Mrs. Neerja Birla, have
three children, Ananyashree, Aryaman Vikram and Advaitesha.
BOARD OF DIRECTORS
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Mr. Ajay Srinivasan has been the Chief Executive, Financial
Services at the Aditya Birla Group since July 2007.
In his role as Chief Executive, Financial Services, he sets the
vision and provides strategic direction and leadership for the
Groups Financial Services business that covers several verticals
such as Life Insurance, Fund Management, Private Equity, Wealth
Management, Retail Broking, Capital Markets Based Lending,
Corporate Financing, Infrastructure Finance and General Insurance
Broking. Under his leadership, the fi nancial services business has
grown rapidly with a turnover of USD 1.3 billion, over 5.6 million
customers and a workforce of over 17,500 people.
Prior to joining the Aditya Birla Group, Ajay was Chief
Executive, Fund Management at Prudential Corporation Asia, based in
Hong Kong. Under Ajays leadership, Prudentials Fund Management
operations in Asia grew rapidly, both organically and through
acquisition. Ajay oversaw a business that spanned ten markets,
including Japan, with total funds under management of about USD 70
billion, which made it at the time the second largest retail fund
manager in Asia.
As a member of Prudential Corporation Asias Board of Directors,
Ajay also oversaw the development of Prudentials retirement
business in Asia.
Mr. Bishwanath Puranmalka, Director of Aditya Birla Groups
Financial Services Companies has a total working experience of over
45 years. He has been associated with the Aditya Birla Group in
various capacities since the inception of his career. He has
experience in the implementation and running of several
manufacturing, training and service industry businesses, and
setting up Greenfi eld manufacturing operations. He also has wide
experience in the set up and operation and maintenance of captive
Power Plants of the Aditya Birla Group.
He has been looking after a NBFC-Birla Global Finance Co. Ltd.
now known as Aditya Birla Finance Ltd., since June 1994.
Mr. Ajay SrinivasanNon-Executive Director
Mr. Donald A. Stewart retired as Chief Executive Offi cer of Sun
Life Financial Inc. in November, 2011, but continues to work
fulltime on a broad range of international business activities with
a primary focus on fi nancial services. He is Chairman of Sun Life
Assurance Company of Canada (UK) in the United Kingdom, the AV
Companies in Canada and the federal-provincial Nominating Committee
of the Canada Pension Plan Investment Board. He is a board member
and chairs the Audit Committee of leading aluminium products
company Novelis, based in Atlanta. He is also a board member and
Chair of the Risk Committee of Sun Life Everbright, based in
Beijing and a board member of Birla Sun Life Asset Management
Company in Mumbai.
Mr. Donald A. StewartNon-Executive Director
Mr. Bishwanath PuranmalkaNon-Executive Director
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Mr. Kevin Strain is President, Sun Life Financial Asia. In this
role, Mr. Strain is responsible for Sun Lifes interests in Asia,
including identifying opportunities for growth in the region and
managing the Companys relationships with its partners. Sun Life has
operated in Asia since the 1890s, and today spans seven key markets
the Philippines, Hong Kong, Indonesia, India, China, Vietnam and
Malaysia. Mr. Strain was appointed to the role effective April
2012, and is based in Sun Lifes Asia Regional Offi ce in Hong Kong.
He is also a member of the Companys Executive Team. Mr. Strain has
signifi cant insurance and leadership experience in both individual
and group businesses and in managing fi nance functions.
From 2007 to 2012, he was Senior Vice-President of Sun Lifes
Individual Insurance and Investments division in Canada,
responsible for the creation and delivery of Insurance, Health and
Wealth Management Products and Solutions nationwide. This included
managing an expansive distribution organisation encompassing Sun
Lifes career sales force, the largest in Canada, and Third-party
distributors. In earlier roles, Mr. Strain was Vice-President of
Investor Relations in Sun Lifes corporate offi ce and held senior
fi nance positions in the companys Canadian operations. He joined
Sun Life in 2002 as part of its acquisition of the Clarica Life
Insurance Company, where he had served in fi nance and
customer-focused roles before being appointed head of Claricas
Canadian pension and group savings division.
Mr. Strain is a Chartered Accountant and holds a Master of
Accounting degree from the University of Waterloo in Canada.
Mr. Sandeep Asthana is the India Country Head of Sun Life
Financial, a leading global fi nancial services company,
headquartered in Canada, providing protection and wealth management
products for over 150 years. In his role, Mr. Asthana manages Sun
Life Financials interest in its two joint ventures in India-Birla
Sun Life Insurance Co. Ltd., and Birla Sun Life Asset Management
Co. Ltd.
A chemical engineer from IIT Mumbai and MBA from IIM Lucknow,
Sandeep started his career with Unit Trust of India in 1993, and
was closely involved with its plans for entry into life insurance
and pensions. He joined Zurich Financial Services in 2000, and
headed the life insurance planning team. In 2003, Sandeep joined
RGA, a leading US-based life and health reinsurer, and built up
their business in India to make it a leading reinsurance player in
India. Prior to joining Sun Life Financial, Mr. Asthana was
Managing Director of RGA Services India Pvt. Ltd.
Mr. Kevin StrainNon-Executive Director
Mr. Sandeep AsthanaNon-Executive Director
BOARD OF DIRECTORS
Ajay joined Prudential in 1998 as Managing Director of
Prudential ICICI Asset Management Company, Prudentials Indian fund
management joint venture with ICICI Bank. Within two years of
operation, Prudential ICICI AMC had grown to become the largest
private sector asset management company in India.
With a proven track record for building successful businesses,
his experience in the fi nancial services industry spans overtwo
decades.
Ajay has in his fi nancial career engaged with several bodies
including the Financial Planning Standards Board, the CII Committee
on Financial Sector Reforms, The CII Committee of Financial
Inclusion, The CII Committee on Insurance and Pensions and the
FICCI Committee on Insurance.
Ajay holds a BA with Honours in Economics from St. Stephens
College, University of Delhi and an MBA from the Indian Institute
of Management, Ahmedabad.
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BOARD OF DIRECTORS
Mr. M. V. Nair is the Chairman, Credit Information Bureau
(India) Ltd. He is also Non-Executive Chairman of SWIFT Domestic
Services Pvt Ltd., a joint venture between SWIFT Scrl, a global
provider of secure fi nancial messaging services and seven Indian
Banks.
Prior to this, he was CMD, Union Bank of India and Dena
Bank.
He was also Chairman of the Indian Banks Association, Chairman
of the Governing Board of Institute of Banking Personnel Selection,
Chairman of the Managing Committee of Indian Institute of Banking
and Finance, a member of the Governing Council of IDRBT as well as
the member of the Governing Council of National Institute of Bank
Management.
He was the Chairman of the Committee set up by the RBI to
suggest revised guidelines for Priority Sector Lending
Classification. He was the member of Usha Thorat committee on Lead
Bank Scheme, Damodaran Committee on Customer Service in Banks and
Khandelwal Committee on Human Resources issues of Public Sector
Banks.
Mr. M. V. NairIndependent Director
Ms. Tarjani Vakil has over four decades of experience in the fi
eld of development banking and fi nancial services. Ms. Vakil
started her career with Maharashtra State Finance Corporation
(MSFC) in 1958 and assumed several responsibilities till 1965. She
moved from MSFC to join Industrial Development Bank of India (IDBI)
in 1965. After an illustrious seventeen years stint at IDBI in the
capacity of a Deputy General Manager, Ms. Vakil joined EXIM Bank of
India as General Manager in 1982 and rose to the level of Chairman
and Managing Director (CMD) of Exim Bank of India and retired in
1996. Ms. Vakil is now a member of the several boards and sub
committees of the board of various companies and provides strategic
direction.
She was responsible, as part of the top management team in 1982
to set up EXIM Bank as a model institution with an open offi ce, no
peons, no clerical staff, less hierarchy and no computerisation
offi ce on an ongoing basis.
Her tenure as Chairman and Managing Director (CMD) of EXIM Bank
of India is marked by several initiatives, setting up of a platform
for EXIM Bank of Asia and Australia. Those who joined this path
rating initiatives initially were China, Japan, Australia, and
Malaysia and so on. This platform has fl ourished and grown
bigger.
On further her appointment as CMD in 1996, Ms. Vakil became the
fi rst lady to head a fi nancial institution in India. She has won
many laurels and awards, nationally and internationally.
Ms. Tarjani VakilIndependent Director
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Mr. Haigreve Khaitan is a Partner of Khaitan & Co.s Mumbai
Offi ce and also heads the Firm M&A practice. He started his
career in Litigation and moved on to specialise in M&A and
Private Equity transactions, Project Finance transactions,
Financing transactions. He has been involved in some of the most
high profi le and complex deals in India.
He has rich experience in all aspects of Merger &
Acquisitions-due diligence, structuring, documentation involving
listed companies, cross border transactions and medium and small
business, etc. In restructuring, such as advice and documentation
involving creditors restructuring, sick companies, de-mergers,
spin-offs, sale of assets, etc. And in foreign investment, joint
ventures and foreign collaborations. He advises a range of large
Indian conglomerates and multinational clients in various business
sectors including infrastructure, power, telecom, automobiles,
steel, software and information technology, retail, etc.
He has been recommended by Chambers & Partners, Legal 500,
IFLR 1000 as a leading lawyer in India for Corporate/M&A
transactions.
He is on the Board of Directors of various public listed
companies such as Ambuja Cements Limited, CEAT Limited, Harrisons
Malayalam Limited, Inox Leisure Limited, Jindal Steel & Power
Limited, Torrent Pharmaceuticals Limited and Karan Chand Thapar
& Bros (Coal Sales) Limited, amongst others.
He has been in the practice of corporate and commercial mergers
and acquisitions, private equity project fi nance.
Mr. Khaitan is a Law Graduate from South Kolkata Law College
affi liation and involved in many as under Professional Affi
liations:
1. Bar Council of West Bengal 2. Incorporated Law Society,
Kolkata3. International Bar Association, London 4. The Indian Law
Institute5. The Bar Association of India 6. Young Presidents
Organisation
He is serving directorship as an independent Non-Executive
Director on the Board of Directors of several Indian public listed
companies.
BOARD OF DIRECTORS
Mr. Lalit Naik is the Managing Director of Aditya Birla Nuvo
Ltd. and Sector Head of Chemicals Business. The business has its
manufacturing operations in India, Thailand and China. Mr. Naik
provides strategic and operational leadership to these businesses,
both in domestic and international sectors.
Prior to joining Aditya Birla Group, Mr. Naik was the Regional
MD, Asia Pacifi c of Saint Gobain, a 43 billion euro company.Mr.
Naik was in charge of Saint Gobains operations in India, China,
Malaysia, Thailand, Abu Dhabi and had also acquired successful and
profi table businesses in Korea, Japan, Malaysia and Vietnam.
Born in 1961, Mr. Naik completed B. Tech in Chemical Engineering
from IIT Kanpur and a MBA from IIM Ahmedabad. Mr. Naik is married
and has two children. His son is studying in the US and the
daughter is studying in the American High School.
Mr. Naik started his professional career with Bharat Petroleum
and later joined Godrej Soaps Limited. During his long professional
career, he worked in Dow Chemical India Limited and soon became an
Executive Director of BASF India Limited. He was responsible for
commissioning the fi rst SUPERPLASTICIZERS plant, Polymers/Dyestuff
plants and acquisition of JBA printing inks. Mr. Naik with his
experience and expertise managed the entire business and lead it to
the path of profi tability.
Mr. Naik has more than two and a half decades of rich
professional experience in the fi eld of Chemicals and has worked
in leadership positions in many companies.
Mr. Lalit Naik Non-Executive Director
Mr. Haigreve KhaitanIndependent Director
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Mr. Pankaj Razdan is the MD & Chief Executive Offi cer at
Birla Sun Life Insurance (BSLI). He has rich experience in the fi
nancial services business, across various functions and multiple
lines of business. He has been with the Aditya Birla Financial
Services Group (ABFSG) since 2007, as a co-owner of the ABFSG
Vision and the Deputy Chief Executive - Financial Services, a
position he continues to hold. At ABFSG, Pankaj has steered some of
the key fi nancial services verticals successfully despite the
challenging times. He has guided Birla Sun Life Asset Management
Company to an industry leadership position. He has also driven many
key projects across ABFSG, to help set a foundation for our
leadership in the Indian fi nancial services industry.
In his role at Birla Sun Life Insurance, Pankaj provides BSLI
strategic direction and leads the insurance team towards achieving
rapid growth and profi tability. As BSLI gears for its next phase
of growth, the Company will benefi t from his experience and
expertise in growing businesses, developing new business models,
building distribution effi ciency and customer management.
Pankajs professional experience spans organisations including
the Karvy Group and ICICI Prudential Asset Management Company. He
has been a recipient of several personal and professional
recognitions including being recognised as Indias Hottest Young
Executives by Business Today. He holds a degree in electronics
engineering with the experience of multiple management development
programs from illustrious institutes including the Indian Institute
of Management, Ahmedabad.
Mr. Pankaj RazdanManaging Director & Chief Executive Offi
cer
BOARD OF DIRECTORS
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SENIOR MANAGEMENT TEAM
Mr. Mayank Bathwal is the Deputy Chief Executive Offi cer at
BSLI. In this role, he partners the CEO and the leadership team in
managing the affairs of the company. He oversees the Finance,
Planning, IT, Operations, Strategy, Group business and Investment
functions and also provides leadership to some very important areas
of the Company including Revenue Assurance, Customer Service,
Technology enablement and Operational effi ciency.
Mayank has rich experience of nearly 20 years in the industry.
He joined the Aditya Birla Group in early 1994 and has worked
closely in various units and projects of the group including
fertilizer and copper smelting units, fi nancial services business
and power projects.
He joined Birla Sun Life Insurance in December 1999 as part of
the Project team to set up the Life Insurance venture and was
looking after the Business Strategy and Planning function prior to
taking charge of other Finance Operations of the company. Mayank
then moved to take charge as the Chief Financial Offi cer of Sun
Life, Indonesia in June 2006. He moved back to India in June 2007
as CFO at BSLI with the objective of supporting BSLI in its
transformational phase after his yearlong successful stint in
Indonesia. As the CFO & Head of Institutional Sales in FY 2011,
in addition to the Finance operations he also took charge of the
Institutional Sales teams which included Bancassurance, Corporate
Agency & Broking channels of BSLI.
Mayank is a Fellow member of the Institute of Chartered
Accountants of India and the Institute of Cost & Works
Accountants of India and an Associate Member of the Institute of
Company Secretaries of India. Mayank was also felicitated at Annual
CFO100 Roll of Honour (for the years 2012 and 2013) for his
exceptional contribution to the area of Corporate Finance.
Mayank is also a member of CII CFO/Tax Committee and ICC Expert
committee on Banking, Finance and Insurance.
Mr. Amit Jain is Chief Financial Offi cer (CFO) at BSLI
overseeing the Finance, Accounts and Taxation functions. He holds a
Masters degree in Business Administration from the Faculty of
Management Studies (FMS), Delhi and a Bachelors degree in
Mechanical Engineering from Delhi University.
Amit brings two decades of experience in Finance, Planning and
Strategy. He has spent close to 10 years in BSLI. His sharp
business acumen has lent immense success to the Planning and
Finance functions that he has spearheaded.
His professional experience spans organisations including IDBI
Federal Life Insurance, Max India Ltd., CARE Ratings among
others.
Mr. Mayank Bathwal Deputy Chief Executive Offi cer
Mr. Amit Jain Chief Financial Offi cer (CFO)
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SENIOR MANAGEMENT TEAM
Mr. Lalit Vermani is Chief Legal, Compliance and Risk Offi cer
heading the Compliance, Legal, Risk and Internal Audit functions
for the Company. He has 20 years of experience in various areas of
Financial Services including Insurance, Asset Management and
Investment banking. Prior to this assignment, Lalit was heading the
Compliance function at Birla Sun Life AMC Ltd.
Lalit holds an Honours Degree in Economics and MBA with
specialisation in Finance. He is also a certifi ed Financial Risk
Manager (FRM) by Global Association of Risk Professionals.
Mr. Lalit VermaniChief Legal Compliance & Risk Offi cer
(CLCRO)
Mr. Ashok Suvarna is the Executive Vice President and COO at
Birla Sun Life Insurance Company Ltd. In his role, he is
responsible for providing leadership to the Underwriting, Revenue
Assurance, Customer Service and Operations teams. He is part of the
Leadership Team of Birla Sun Life Insurance and is involved in
rolling out growth strategies of the company.
Ashok comes with an experience of over 20 years in the Financial
Services industry. He has experience is setting up and managing
teams across functional areas including Technology, Operations,
Projects and Quality Assurance. Prior to joining Birla Sun Life
Insurance, Ashok was EVP and COO at Birla Sun Life Asset Management
Company Ltd, where he was providing leadership to the Operations,
Technology, Service and Marketing teams. Before joining the Aditya
Birla Group, he was Senior Vice President and Head of Operations at
ICICI Prudential Asset Management Company Ltd, where he was
responsible for Operations, Projects and Quality Assurance and was
also involved in pan Asia projects of Prudential Funds Management.
He has been associated with many industry fi rsts in the MF
Industry including the launch of MF transactions on the Stock
Exchange platform. Before joining ICICI Prudential Asset Management
Company Ltd, Ashok was associated with SBI Funds Management Pvt.
Ltd. He is also a winner of several awards, including the Aditya
Birla Chairmans award.
Mr. Ashok SuvarnaChief Operating Offi cer
Mr. Anil Kumar Singh is the Chief Actuarial Offi cer &
Appointed Actuary for Birla Sun Life Insurance (BSLI) and is
responsible for all Actuarial functions within the Company. Anil is
a Fellow of the Institute of Actuaries of India, 2002 and holds a
Masters in Statistics from Lucknow University.
Before joining BSLI, Anil was the Chief Actuary & Appointed
Actuary at Bajaj Allianz Life Insurance Company. Anil has vast
experience of close to 20 years in the Life Insurance industry in
India, in Actuarial roles covering Valuation, Asset Liability
Management, Product Development and Pricing with organisations like
LIC, Aviva Life Insurance and was also a part of the BSLI Actuarial
team during its inception in 2000-2001.
Mr. Anil Kumar Singh Chief Actuarial Offi cer (CAO)
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Birla Sun Life Insurance
| ANNUAL REPORT 2014-1513
SENIOR MANAGEMENT TEAM
Mr. Pramod Krishnamurthy is the Chief Technology Offi cer (CTO)
for BSLI responsible for providing the crucial technology edge to
enable BSLI to differentiate itself positively in the
marketplace.
Pramod is an IIT-IIM graduate and has over 22 years of work
experience in the Financial Services Technology area. He has held
several senior leadership positions in the IT and Financial
Services Industry, including running his own software company early
in his career. Prior to joining BSLI, Pramod was an Executive Vice
President with Fullerton India Credit.
He was awarded the prestigious Pan-Asia IT Leadership Award for
2012 by Asia Insurance Review and Celent, for defi ning and
implementing the technology strategy and roadmap for BSLI. He was
also recognised among the Top 100 CIOs in India for 2011, by his
peer group under the aegis of World CIO Council and CIO Association
of India.
Mr. Pramod Krishnamurthy Chief Technology Offi cer (CTO)
Mr. Sashi Krishnan is the Chief Investment Offi cer (CIO) of
Birla Sun Life Insurance. He joined the organisation in December
2011 and has a rich experience of over 25 years in the Mutual Fund
and Life Insurance industry.
Sashi has done his BE (Hons.) in Chemical Engineering and MSc
(Hons.) in Economics from BITS, Pilani. He also has a Diploma in
Management from IGNOU with a specialisation in Finance. In
addition, he has also done CAIIB from the Indian Institute of
Bankers. He has an extensive experience in Equity and Debt Markets.
Prior to joining BSLI, Sashi was the Chief Investment Offi cer at
Bajaj Allianz Life Insurance Company where he managed Assets over `
42,000 crores. Besides leading the Investments team and being a
member of the Investment Committee, he was also involved in product
design and provided sales support. His previous assignments include
leadership roles with DBS Bank (Singapore), DBS Cholamandalam Asset
Management Ltd. and Unit Trust of India. Sashi is the Member of the
Index Policy Committee of India Index Services & Products Ltd.
and, also was the Co Chair of Life Insurance Committee of the
Bombay Chamber of Commerce and Industry.
He has also served as the Member of the Financial Planning
Standards Board, India in 2004-2006. He is also a member of the
Capital Markets Committee of the Indian Merchants Chamber.
Mr. Sashi Krishnan Chief Investment Offi cer (CIO)
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| ANNUAL REPORT 2014-1514
SENIOR MANAGEMENT TEAM
Mr. Vikas Seth is Chief Distribution Offi cer (CDO) at BSLI. He
is a qualifi ed Electronics & Electrical Communication Engineer
and has completed a Masters Degree in Business Administration
(Marketing). He joined BSLI in January 2008.
Currently at BSLI, Vikas is responsible for Direct Sales Force,
Bancassurance and Corporate Agency and Broker channels.
Vikas has a strong professional experience of over 17 years in
diverse industries including Telecom, FMCG and Life Insurance. He
has worked with organisations like Essar Telecom (Vodafone), Amway,
ICICI Prudential and HDFC Life in the past. His expertise is in
start-up, building distribution, implementation of sales &
marketing strategies. He has played an important role in building
BSLIs distribution capability.
Mr. Vikas Seth Chief Distribution Offi cer (CDO)
Ms. Shobha Ratna is Executive Vice President & Head Human
Resource & Training at Birla Sun Life Insurance (BSLI). In this
role, she drives the Human Resource strategy at BSLI including
talent management, talent development, compensation and culture
creation.
Shobha has extensive experience of about eighteen years in the
functional areas of talent, leadership and learning. Prior to this
role at BSLI, she managed talent and leadership development at the
Aditya Birla Group (ABG) for six years. At ABG, Shobha contributed
signifi cantly to institutionalising the leadership development and
talent management processes across the Group through a series of
new initiatives aimed to build the talent pipeline. Her
professional experience also includes a stint of twelve years at
Hindustan Unilever Ltd. (HUL) with a year spent in Unilever
London.
Shobha holds a Bachelors degree in Civil Engineering from the
National Institute of Technology (NIT), Calicut and a Masters
degree in Personnel Management & Industrial Relations (PMIR)
from the Tata Institute of Social Sciences (TISS).
Ms. Shobha RatnaHead Human Resource & Training
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Birla Sun Life Insurance
| ANNUAL REPORT 2014-1515
SUMMARY OF FINANCIAL INDICATORS
10,411
7,1777,158
5,6145,885
7,110
5,677 5,216
4,8335,23
3
2011 2012 2013 2014 2015
Total Premium Total Income
Total Premium for FY1415
Total Premium collected over the years (in crores)
285
371
542461
305
2011 2012 2013 2014 2015
Net Profit for FY1415
Net Profi t over the years (in crores)
1,215
1,2031,161
1,045
996
2011 2012 2013 2014 2015
OPEX for FY1415
Operating expenses over the years (in crores)
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We enhance our process...
to navigate the path of success
On our journey to empowerment, we redefi ned the business model
based on the core framework of CPS
(Capacity-Productivity-Sustainability). We are confi dent that
using this framework will help us achieve our core vision of
building a trust surplus organisation.
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Birla Sun Life Insurance
| ANNUAL REPORT 2014-1517
Over the last decade, the insurance industry has undergone a
transformational change. At BSLI, we realise that for long term
sustainable growth, we need to realign the business model, adjust
to increasing amounts of regulation and attempt to continuously
innovate for growth. Thus we started on to relook at our business
models and the key challenges that the organisation was facing.
The Direct Sales Force (Agency) Channel commands about 80% of
BSLIs business, and therefore was the natural fi rst choice in this
journey. After extensive research across stakeholders including
employees, advisors, customers and competition in the agency and
third party distribution channel, three key challenges were
identifi ed
a. The challenge of accessing a large pool of customers in a
manner that engenders trust b. The challenge of improving the
quality of engagement and selling to the customers and c. Building
a pool of high quality and committed sales-force &
distribution.
Innovation the key to progress
The Innovation and Design Lab is composed of two teams Design
and Intervention. The Design team with its unique research,
innovation, design and development capabilities, builds new tools
and models collaborating with various functions as required. It
also plans launch, roll out and integration into the BSLI system
through training, etc. The Intervention team is in-charge of the
roll out, assimilation and adoption of the model. They act as
coaches for people on fi eld, and provide on-ground support and
share best practices and success.
The entire approach is based on the core philosophy of trust
surplus, which automatically brings us closer to the customer. Each
tool creates win-win for us and the competitors and builds unique
competitive advantages over our competitors.
Building excellence in Agency Channel
Since its inception, BSLI has been at the helm of innovation
within the life insurance market, ushering in an industry-wide
change with the introduction of innovative unit-linked products and
the highest NAV plans. We strongly believe that innovation may
ultimately be the key to growth, regardless of shifting economic
and insurance market conditions, as they devise ways to thwart
ongoing and emerging competitive threats as well as capitalise on
new opportunities.
An Innovation and Design Lab was conceptualised with the vision
of addressing the fundamental issue of organisational quality as a
strategy to build a competitive advantage in every aspect of our
business. Our goal was to redefi ne the business model and develop
solutions for the key challenges for not only insurance, but also
those that the fi nancial services industry was facing as a whole,
such as the challenge of accessing a large pool of customers,
building customer awareness towards fi nancial and protection
needs, improving customer engagement and conversion through a
robust sales force and distribution.
Based on this, the key levers were identifi ed (i) Roles
Expansion and how to ensure that people contribute more, (ii) Tools
That enable better performance and (iii) Engagement New ways of
working, dialoguing and collaborating.
Roles Capacity-Productivity-Sustainability
The fi rst step towards redefi ning the Business Model is based
on the core framework of CPS, which is
Capacity-Productivity-Sustainability. Each function within the
organisation is aligned by this core framework of building capacity
and capability, ensuring productivity in a way that the business is
sustainable.
Capacity The collective strength of our resources to deliver on
the customer promiseOur goal is to understand the customers their
needs, wants, dreams and aspirations. After a thorough
understanding, we offer them unique solutions that are mapped to
their fi nancial needs. This enables us to build forums that allow
us access to invaluable customer insights. We believe that
understanding the customer and offering them solution based on
their exclusive needs generates an environment of trust.
Productivity Leveraging our strengths to serve the customers in
the best way possibleAt BSLI, productivity is the core of all our
actions. Our focus is on delivering superior performance across all
touch-points of customer delivery. Technological innovations have
helped us bring unprecedented convenience for customers, enabling
them to place their trust in us. Using innovative methods and
effective communication tools, we continue to provide our customers
with greater service effi ciencies and a compelling value.
Sustainability Building a lifelong relationship of trust with
the customerWe understand that the key to our sustained trust with
the customer is our determination to deliver on the customer
promise. Our energy comes from the desire to earn the trust of
every customer we meet, rather than the zeal to beat competitors.
Thus, building trust and delivering superior performance are two
integral values that are refl ected in our wide range of products
and solution offerings. We aim to build a sustainable business to
meet customer outcomes.
Tools The Cluster Model Approach
Our new cluster approach gives us access to a vast customer
network through the sustainable, professional and scientifi c
cluster model. BSLI identifi es clusters based on similar profi
les, understands their needs and introduces our advisors to the
cluster, helping them easily target like-minded prospects. Using
the Cluster Model, we can offer unique solutions that are mapped to
our customers fi nancial needs through a wide range of products and
combo solution offerings.
PROCESS
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We guide our employees
in the right
direction
At BSLI, we believe that the empowerment of the organisation
begins with the empowerment of its employees. By constantly
developing scientifi c tools and methodologies, we aim to provide
our employees with the right tools and techniques to achieve
success.
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| ANNUAL REPORT 2014-1519
Last year, in January 2014, BSLI has embarked on a unique
journey towards building a trust surplus organisation and
empowering the lives of advisors, employees and customers by
reimagining the way we conduct business. To achieve this vision, we
recognised the signifi cance of our employees in building this
trust surplus organisation. Our employees and advisors are an
invaluable part of BSLI and we could not embark on a journey
towards empowerment without their active support and
involvement.
The world is constantly changing and fast moving towards
customisation. Even though the concept of customisation is
relatively new to the fi nancial services domain, it is slowly fi
nding its roots. The customers have now begun to expect more than
insurance solutions from us. Instead, they require assistance in
achieving their protection outcomes. As an organisation, we are
therefore moving towards solutions counselling. We aim to focus on
unique customer solutions based on their exclusive needs and
counselling as a method to deliver our solutions. Our goal is to
understand our customers needs, counsel them in every step of their
journey of life, enable them to co-create a solution to meet their
fi nancial needs and lead them on the road to empowerment.
Our Journey Redefi ned
We redefi ned the Business Model based on the core framework of
CPS which is Capacity-Productivity-Sustainability. Each function in
the organisation is aligned by this framework of building capacity,
ensuring productivity in a way that the business is sustainable.
Based on this key theme, the team has worked on four key tracks
role alignment and measures, recruitment strategy, market
engagement and customer engagement.
1. Redefi ning the Roles & Measures Differentiation of roles
is critical, as drivers of success at
every level are different. So we redefi ned the roles across the
sales hierarchy, based on the business model. The key objective was
to move from just measuring business performance to measuring
business health. Thus emerged the new measurement framework of
Capacity-Productivity
Sustainability, which helped us assess the business outcomes in
both qualitative and quantitative format.
2. Ensuring Quality Recruitment The new Business Model also
required people with
certain mind sets, values and practices. It also required
communicating the new way of doing business and setting the
expectation right in the minds of new employees joining the
organisation. A 4 step Recruitment Process was launched for FLS to
ensure quality recruitment aligned to the new business model,
moving from push hiring to discovery recruitment. Similarly, a tool
for recruiting the right set of advisors who are committed to
business was also made.
3. Market Engagement One of the major challenges that insurance
industry and
fi nancial services industry is facing is the challenge of fi
nding new customers. To reach out to a large pool of customers, we
built the cluster based market engagement approach. The core
outcome was to recognise the potential
of the area by shifting our thinking from individual to groups
of customers, having common goals and not just depend on the
natural market of the distributors.
4. Customer Engagement BSLI is committed towards empowering
customers so
that they are able to discover their protection needs and
identify relevant products/solutions to fulfil those needs. With
the help of the Protection Counselling tool, we made a shift from
push mode of engagement to co- creation and self-discovery.
Recruitment Strategy
In an industry where fi nding right candidates who are committed
to the business is diffi cult, our Discovery Recruitment Process is
a unique strategy, where not just the company discovers about the
prospect, but also the prospect discovers about him. The discovery
resume and mind set orientation helps us fi nd the right fi tment
for the company, rather than just depending on an interview
process, which is too dependent on individual skills and
judgement.
A 4 step Recruitment Process was launched for FLS to ensure
quality recruitment in alignment to the new business model. The
tool required designing of resume, mind set orientation test and
career opportunity presentation. Workshops were conducted with the
Branch Managers to ensure adoptions. Similarly, a tool for
recruiting right set of advisors called the Advisor Recruitment
Roadmap was made to recruit right advisors, who are committed to
business. This tool had three parts learning resources for FLS,
engagement resources for advisor recruitment, and communication
handouts. A very innovative income calculator was also made to show
earning potential to advisors.
Market Engagement
With a focus on insights and innovation, we have discovered new
ways to connect with our customers and build long-term
relationships with them. With our new customer-centric approach, we
have ensured that our employees and advisors become a crucial part
of the customers everyday life. After all, they are the face of
BSLI for our customers and their enthusiasm, energy and passion has
played an important part in our success.
The cluster approach has not only helped us in building trust,
but also led to long term sustainability of the business through
referrals and upsell.
1. Identifying customers We are now able to simplify and expand
our reach, rather than use the one-on-one approach to target a few
people we know personally.
2. Engaging with customers With limited tools and resources,
breaking the ice with prospective customers was a challenge. Now,
we penetrate the identifi ed clusters through contribution events
and equip our advisors with the tools to engage with the
customers.
EMPLOYEES
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EMPLOYEES
Customer Engagement
We launched a three level certifi cation program called
Protection Counselling Program for our advisors, where they are
systematically trained through three training interventions to
become certifi ed Protection Counsellors. This brings immense pride
and recognition to the advisors as they graduate from being
insurance advisors to protection counsellors.
3. Offering customised solutions Prospective customers found the
one-size-fi ts-all approach unconvincing. Thus, we now offer
solutions and combos that are tailor-made to our customers identifi
ed fi nancial needs.
4. Empowering customers Conventional processes and services made
it challenging to build a long-term relationship with customers. We
have now ensured to fast track processes and empower zones for
service convenience.
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Birla Sun Life Insurance
| ANNUAL REPORT 2014-1521
We lead our customers...
on the road to empowerment.
The most crucial milestone on the journey to end-to-end
empowerment is building a sustainable relationship with customers.
Through our various customer-centric innovations and practices, we
aim to generate more engagement and involvement of the customers in
our growth.
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CUSTOMERS
Life insurance is a product which assures certainty in times of
uncertainty. Customers invest with us for long term benefi ts and
hence at the core of our entire business lies trust. To achieve the
vision of being a leader and a role model in the industry, it has
become extremely pertinent for BSLI to rebuild trust in the market
and convert the prevailing trust defi cit into a trust surplus.
We believe that to empower our customers and build a trust
surplus organisation, we need to have engagement with the customers
and not just mere transaction. In the start of our journey, we
redefi ned roles and measures, launched a new market engagement
model to increase access to customers, redefi ned the recruitment
strategy and made path breaking innovations in customer engagement
by launching the Protection Counselling tool.
Current Challenges of customers
Though there are many challenges in an individuals life, most
people are not aware of the risks and uncertainties that can
prevent them from fulfi lling their aspirations and
responsibilities. There also exist many products in the market and
many rationales to buy insurance and other similar products. Though
every advisor may claim that he is selling the right product or
solution, the customer is in no way sure of having made an optimal
choice.
BSLIs approach to customer empowerment
BSLI is committed towards empowering its customers so that they
are able to discover their protection needs and identify relevant
products and solutions to fulfi l those needs. We believe that our
Protection Counselling tool has the potential to change the way
insurance is sold today, putting BSLI far ahead of the competition.
This industry pioneering methodology has reached a new level in
customer engagement and consultative selling. These strategic
innovations are crucial to the growth of the insurance industry,
thus building customer-centricity across fi nancial services.
Building Sustainable relationships
The most crucial stage in end-to-end empowerment is building a
sustainable relationship with the customers.
We are launching a service Unique Customer History (UCH) where
we are building a Roadmap of Engagement with the customer. Each
advisor will get unique history of customer engagement, open
solutions and strategies and timely updates on when and with what
proposition they can engage with the customers.
At BSLI, we strongly believe that through our various
customer-centric innovations and practices which are aimed to build
the trust surplus, we will build a strong partnership of long term
success.
Digitising Customer Experience
Launch of the e-commerce platform with Protect@EaseWe are
focussed on building a platform with fi rst-in-industry features
that would showcase BSLIs strength in the online marketplace.
Protect@Ease has many convenient features for customer
engagement.
A unique horizontal interface: The customer can see both his
details input and the premium output without having to scroll down.
Any missing information can be viewed at one go as opposed to
scrolling up and down to fi nd the missing fi elds.
Easy readability
A unique app tracker: This allows the customer to keep tracking
his policy status. The feature is also available for offl ine
customers.
Online medical appointment booking Sixty seconds call back for
assistance
S4S engagement appIn our endeavour to spread awareness about the
value of Life Insurance, we set out to empower our customers to
protect themselves against the uncertainties of life. Hence, we
created a mobile application that would empower the customer to
protect himself in an uncertain situation and be closer to his
loved ones when they are caught in a similar situation. The app was
a safety box of a secure fi nancial future. Thus we called it S4S
Security for Self app.
Key Features Allows the user to send emergency messages with the
current location link illustrated in a map, to fi ve close contacts
within 5 seconds, through just a click
Enables the user to activate a siren to sensitise the immediate
surroundings and get help Permits the user to take a live recording
of situation and send an email with the voice recording when
triggered
Stores information about all insurance policies the user
owns
Nominates multiple loved ones of the user to share the details
of the policies
Store all medical data for easy access during emergencies
Brand Campaign
Khud ko kar bulandThis was our biggest online and social
campaign. It extended support to the brand campaign through
extensive digital media and social promotions.
Some of the key highlights of this campaign are:
Total impressions: 83 million Total clicks: 8.51 lakh Overall
CTR: 1.72% Total views: 5.8 million + web + mobile View Through
Rate: 20%
Top performers: YouTube views: 3.4 million Social Media reach:
47 lakh Facebook reach: 5.3 million Facebook post-promotion
activity: 80,000+ likes Reach of Logical Indian: 9 lakh readers
We also explored Facebook as a medium for reaching out to
existing customers for premium renewal payments. The message was
successfully communicated to more than 6 lakh customers, engaging
them for 3 months.
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Birla Sun Life Insurance
Golden Peacock Award for Business Excellence in 2014
Adjudged a top 5 employer in the BFSI sector in the annual Best
Companies to Work for - BT - People Strong Survey.
Celent Model Insurer Asia 2014 Award in the area of IT
Management and Business Process Management.
Skoch Order-of-Merit Award for Business Leadership in Insurance
through Strategy & Innovation.
Won a Silver metal at Effi es, 2014 for its effective marketing
campaign.
Won a Silver metal at Big Bang Awards, 2014
Won the Kyoorius Advertising Awards, 2014 for the most
outstanding creative work in the Indian communications sphere.
Won a Blue Elephant and a Black Elephant (the Cannes Grand Prix
equivalent)
Won 3 Bronze metals at Goafest Creative & Media Abby Awards,
2014
Won a Silver metal at Emvies, 2014 for measurable and signifi
cant contributions in the fi eld of media.
Key Rewards&
Recognitions
ACHIEVING MILESTONES
| ANNUAL REPORT 2014-1523
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FINANCIAL REPORT
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for the year ended March 31, 2015
Birla Sun Life Insurance
25 | ANNUAL REPORT 2014-15
Directors Report
Dear Shareholders,
On behalf of your Board of Directors, I present the fifteenth
Annual Report, together with the Audited Statement of Accounts, of
Birla Sun Life Insurance Company Limited (the Company/BSLI) for the
year ended March 31, 2015.
1. INDUSTRY & BUSINESS PERFORMANCEMacro-economic conditions
and regulatory changes have influenced the performance of Life
Insurance Industry, shifting the priorities of Life Insurers and
driving the following key business trends:
In Individual life, LIC registered a 26% YoY de-growth in FY15,
leading to decrease in its market share from 63% in FY14 to 53% in
FY15. The private sector grew by 16% in FY15. The combined market
share of top four private insurance players increased from 22% in
FY14 to 31% in FY15, on the back of their captive Bancassurance
channel.Total Number of customer of all Insurance players
(including LIC) declined by 37% over previous year. Even among the
private insurance players, the number of customers declined by 10%
YoY, and the growth in new business premium was largely driven
through higher average premium per policy.Bancassurance continues
to grow, and has become the largest distribution channel in the
private sector. While, share of sales by the corporate agents and
brokers continued to shrink, the direct channel showed significant
growth during the year.Positive equity sentiment on the back of a
stable Government at the Centre and easing of inflation caused a
shift in consumer preference towards unit linked products.In Group
Life, market share of private insurance players increased from 32%
in FY14 to 39% in FY15, with the top five private insurance players
contributing 29% of the group sales in FY15. The growth was mostly
attributable to the private insurance players gaining foothold in
PSU and Mega customers segments where traditionally LIC has been
the leading insurer.
Outlook for FY16 in terms of new business growth is positive due
to recovery in GDP growth, easing of inflation, buoyant capital
markets and the Governments moves to encourage financial savings.
Recent regulatory changes such as the easing of FDI limits in
insurance can help attract more capital to the insurance sector.
Your Company has taken several steps during the Year to transform
its model for engagement with its customers and distributors.
Overall, BSLI has transitioned well in terms of its product
strategy leading to a balanced suite of participating and
non-participating products both traditional and unit-linked. Your
Company is well positioned to capitalise on the opportunities which
the sector will offer in the next 3-5 years.
2. BUSINESS REVIEW AND FINANCIAL PERFORMANCEFinancial
PerformanceTable 1: Business & Financial Performance of Your
Company (` in Crores)
ParticularsStandalone Consolidated
2014-15 2013-14 Inc. (%) 2014-15Business PerformanceNew Business
Premium 1,938 1,697 14% 1,938Renewal Premium 3,295 3,136 5%
3,295Total Premium 5,233 4,833 8% 5,233Financial
PerformanceIncomeGross premium income 5,233 4,833 8%
5,233Reinsurance (net) -165 -188 12% -165Total premium income (net)
5,068 4,645 9% 5,068Income from investmentsPolicyholders 5,309
2,496 113% 5,309Shareholders 128 115 11% 128Investment Income 5,437
2, 611 108% 5,437Other Income 34 37 -8% 34Total Income 10,539 7,293
45% 10,539Less:Commission 233 235 -1% 233Expenses (including
depreciation & Service tax) 996 1,045 -5% 996Benefits paid
(net) 3,772 3, 666 3% 3,772Provisions for actuarial liability (net)
5,253 1,977 166% 5,253Provision for Taxation
Profit for the Current Year 285 370 -23% 285
Share Capital 1,901 1,901 0% 1,901Reserve & Surplus 268 268
268Less: Debit Balance in Profit and Loss Account 627 913 -31%
627Net Worth 1,542 1,256 23% 1,542
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for the year ended March 31, 2015
26 | ANNUAL REPORT 2014-15
Directors Report
Your Company recorded satisfactory performance in FY15 across a
range of key financial parameters:
The Company recorded new business premium of ` 1,938 crores in
FY15 as compared to ` 1,697 crores in FY14. The Group Business
recorded new business premium of ` 1,177 crores in FY15, a growth
of 44% over FY14.
Renewal premium at ` 3,295 crores was higher by 5% in FY15 as
compared to previous year. BSLI will continue to focus on managing
its substantial in-force book and on improving persistency levels,
which is important to deliver value from our existing book.
Traditional products accounted for 61% of sales in FY15 as
compared to 59% in FY14. This was on account of continued focus on
improving the product mix.
The Company registered Net Profit of ` 285 crores for the year
as compared to ` 370 crores in the previous year. The fall in net
profit was primarily due to lower profits from the inforce book
especially the ULIP block sold before September 2010. The Company
continues its focus on profitability through better management of
in-force business, driving right product mix, optimisation of
expenses and building efficiencies in distribution.
The Opex to Premium ratio has improved from 21.6% in FY14 to
18.6% in FY15.
Solvency margin at 2.05 for FY15 against the regulatory
requirement of 1.5 indicates the Companys stable financial
position.
With a robust operating platform, strong trusted brand and long
term commitment towards life insurance business, the Company is
well positioned to meet the challenges and to tap the long term
opportunities of the life insurance industry.
Summary of Operations and BusinessBSLI continues to follow a
successful multi-channel distribution strategy with 488 branches,
around 90,600 Agents, 4 key bank partners and 151 third party
distributors.
Post the Oct. 2013 regulatory changes, the Company has moved to
a balanced sales mix of participating/non-participating traditional
products and ULIP products. The Agency channel continues to be the
Companys largest distribution channel contributing to over two
third of our individual business with New Business premium of ` 519
crores.
In FY15, the focus has been on implementing a new distribution
model built around customer discovery, customer engagement and
solution fulfillment. The channel took significant steps towards
digitisation by launching 2 new platforms My Solutions (Tablet
based platform to offer solutions to customers) and Empower@ease
virtual office for sales managers and our Advisors.
The FY15 was marked by the exit of a major bancassurance
relationship for the Company Citibank N.A. The 14 years
relationship with Citibank ended due to its global insurance tie-up
with another larger global Insurer. Bancassurance channel delivered
first year premium of ` 143 crores. The recent draft guidelines by
IRDA on open architecture for corporate agents are expected to
provide the Company with access to several opportunities for
tie-ups with Banks. Our priorities for the channel moving forward
will be to harvest existing partners growing customer base and
tapping new opportunities from the open architecture model.
First year premium from Corporate Agent & Brokers and other
channels in FY15 was ` 84 crores. Sales from this segment were
lower compared to previous year due to initiatives taken to improve
the quality of business. Going forward the focus will be on a few
existing strategic tie-ups and addition of new strategic
capacities, even while continuing efforts to improve the quality of
business.
Group Business registered a 44% YoY growth with first year
premium of ` 1,177 crores in FY15. This came from improvement in
product lines across risk and fund based products and increasing
our penetration across geographies & customer segments. This
line of business continues to be profitable for the Company.
During the year under review, the Company launched several new
products
Online Term offering: BSLI Protect@Ease
Non-Participating Traditional products: BSLI Guaranteed
Future
Participating Traditional products: BSLI Vision Moneyback Plus,
BSLI Vision Star Child, and BSLI Vision Endowment Plus
Unit Linked products: BSLI Fortune Elite
Products under Rural and Group platform were also launched
Assets under Management (AUM) grew from ` 24,775 crores in FY14
to ` 30,185 crores in FY15. For unit-linked funds, Company has
delivered superior fund performance consistently beating its
benchmarks. 100% of the funds outperformed their respective
benchmark over the long-term (across 2-4 years). 100% of the funds
also outperformed their benchmark over the 5 year period ending
March 31, 2015.
The Companys continued quality initiatives such as pre-issuance
verification calls, pre-issuance joint declaration from policy
holder, and quality agreements with distributors to drive the right
sales behaviour and reduce first premium lapse, have started
showing positive results as the 13 month premium persistency was
improved to 62% in FY15 from 59% in FY14.
With the focus on implementing the new distribution model of the
Company and improving its customer-facing processes including
customer service and distribution support, the Company has launched
Protection Counseling tool, which helps in determining the
financial needs of the customer as per his/her profile, thereby
engaging the customer and building trust surplus.
Proactive measures have been undertaken to strengthen compliance
and risk management functions given the Companys focus to maintain
robust internal controls, mitigate risks and improve sales conduct
and thereby maintain the reputation of being one of most compliant
insurance companies in an environment of increasing regulatory
oversight.
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for the year ended March 31, 2015
Birla Sun Life Insurance
27 | ANNUAL REPORT 2014-15
Directors Report
Our investment in branding yielded good results with both brand
awareness as well as consideration scores (i.e. likelihood of
prospective customers to purchase a policy) showing improvements to
an all-time high. Going forward strength of the BSLI brand is
expected to become more important and we continue to strengthen our
brand performance through an optimal mix of above-the-line and
below-the-line activities.
Outlook for the Industry and CompanyIn the last few years,
general market conditions have been difficult for sale of life
insurance savings products. Factors included lackluster equity
markets, high interest rates, high inflation rates, and preference
of customers towards physical savings over financial savings.
Recent changes in the external environment including stable
government at the centre, optimistic outlook on GDP growth, easing
of inflation and buoyant capital markets augur well for the
industry. India already has several structural advantages in terms
of favourable demographics and high rate of savings. The above
positive sentiment in the external environment will definitely
provide a fillip to the growth and expansion of the industry. The
recent regulatory changes such as The Insurance Laws (Amendment)
Act, 2015 and Draft Registration of Corporate Agent (CA)
Regulations, 2015 are expected to provide more balanced growth
opportunity for all the players in the Insurance industry.
3. BSLI CLAIMS MISSION FOR ITS POLICYHOLDERSOur Mission is to
provide hassle-free, seamless and speedy claim settlement services
to our Customers and ensure prompt payment of valid claims.
For FY14-15, some of the key noteworthy points for Claims
function were:
Extension of Scope of Grievance Redressal Committee (GRC) to
hear and address claims representations. It is chaired by an
independent 1. Chairman Mr. N. N. Jambusaria (ex Chairman,
LIC).
To facilitate swifter Claim settlement, introduced NEFT payment
method for Individual & Group Claims process. This enabled our
2. Customers to speedily receive the claim monies directly into
their bank accounts and saved them the hassles of receiving and
banking cheques. Over 95% of payments in H2 FY15 were through NEFT
route.
To enhance customer experience in their moments of truth, BSLI
rolled out innovative Claim Ambassador to assist on Claims process
3. to its Clients/Claimants in their hour of need.
Claims department has also proactively provided speedy claim
settlement service in case of national tragedies and these claims
have 4. been settled on topmost priority.
Improved results seen across all Channels in Claims
processing.5.
Individual Life:Claims Pending (Nos) ratio has reduced
significantly from 2.67% in FY14 to 1.68% in FY15.
Overall Payment ratio in number terms has moved up significantly
from 87.76% in FY14 to 95.30% in FY15.
The Repudiation ratio has reduced drastically from 9.57% in FY14
to 3.02% in FY15.
Group Life: 100% of Claims stand paid. i.e. zero
pendency/Repudiation of Group Claims.
Health Life: Claim pendency numbers reduced drastically from 14%
in FY14 to 1.5% in FY15.
Rural & Social Life: 100% of Claims stands paid i.e. zero
pendency of Rural & Social Claims.
4. RESERVESDuring the year, the Company generated profit after
tax of ` 285 crores, leading to a reduction in accumulated losses.
No amount was transferred to General Reserve.
5. DIVIDENDThe Board of Directors have not recommended any
dividend for the year ended March 31, 2015 due to carry forward
losses.
6. SHARE CAPITALThe Authorised Share Capital of the Company is `
3,750 crores. The Issued, Subscribed and Paid up Capital of the
Company was ` 1,901 crores, as on March 31, 2015. There was no
requirement of fresh capital infusion during the year under
review.
7. CORPORATE GOVERNANCEYour Directors reaffirm their commitment
to the corporate governance standards to the extent they are
applicable to the Company. A detailed Corporate Governance Report
is annexed to and forms part of the Annual Report.
8. CONSOLIDATED FINANCIAL STATEMENTIn accordance with the
Companies Act, 2013 (the Act) and Accounting Standard (AS) 21 on
Consolidated Financial Statements, the audited consolidated
financial statement is provided in the Annual Report.
9. SUBSIDIARIES During the year under review, the Company has
incorporated a subsidiary Company in the name of Birla Sun Life
Pension Management Limited to act as the Pension Fund Manager of
the NPS Trust under the National Pension System to manage the
pension funds for private
2014_BSLI AR_Financial_Part 1.indd 27 11/10/15 3:58:09 PM
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for the year ended March 31, 2015
28 | ANNUAL REPORT 2014-15
sector in accordance with the applicable provisions of the NPS,
the schemes, the guidelines issued by the Pension Fund Regulatory
and Development Authority (PFRDA). The subsidiary Company is yet to
obtain certificate of registration/commencement of business from
PFRDA.
A statement containing the salient features of the financial
statement of subsidiary in the prescribed format AOC1 is annexed to
the Directors Report. The statement also provides the details of
performance and financial position of Subsidiary Company.
10. PUBLIC DEPOSITS During the year under review, the Company
has not accepted any deposit from the public falling within the
ambit of Chapter V (Section 73) of the Companies Act, 2013 and the
Companies (Acceptance of Deposits) Rules, 2014.
11. MANAGEMENT DISCUSSION AND ANALYSIS REPORTManagement
Discussion and Analysis Report forms part of the Annual Report.
12. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN
EXCHANGE EARNINGS AND OUTGOThe information on conservation of
Energy, Technology Absorption, Foreign exchange earnings and outgo
stipulated under Section 134(3)(m) of the Companies Act, 2013 read
with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed to
the Directors Report.
13. PARTICULARS OF EMPLOYEESIn pursuance of the Companys
aspirations to maintain its position as the most preferred employer
in the insurance industry, the Company continued to invest in
creating a pool of talent for the growing business needs. The
Companys total workforce stood at 8014 as at March 31, 2015 against
9,732 as of the previous year end. Structured initiatives around
talent management, learning and development and long term retention
plan for talent pool across levels were implemented for skill
development to enhance productivity and performance of workforce.
The relevant particulars of employees as required to the extend
applicable under Rule 5(2) and 5(3) of The Companies (Appointment
and Remuneration of Managerial Personnel) Rules 2014 is attached to
this report.
14. DIRECTORS As on March 31, 2015, your Board of Directors
comprises of eleven Directors including one Managing Director and
CEO and three Independent Directors.
During the year, following were the changes in the directorship
of the Company:
Mr. Venkatesh Mysore (DIN 01401447) (Non-Executive Director)
resigned from the Company w.e.f. August 01, 2014
Mr. Sandeep Asthana (DIN 00401858) was appointed as an
Additional Director w.e.f. August 01, 2014
Mr. G.P. Gupta (DIN 00017639) (Independent Director) resigned
from the Company w.e.f. August 20, 2014
Dr. Rakesh Jain (DIN 00020425) (Non-Executive Director) resigned
from the Company w.e.f. December 05, 2014
Mr. Lalit Naik (DIN 02943588) (Non-Executive Director) was
appointed as Director in casual Vacancy w.e.f. January 30, 2015
Mr. Haigreve Khaitan (DIN 00005290) (Independent Director) was
appointed as an additional Director w.e.f. January 30, 2015
In accordance with the provisions of Section 149 of the
Companies Act, 2013, Ms. Tarjani Vakil and Mr. M.V. Nair were
appointed as Independent Directors for a term of five years w.e.f.
August 28, 2014.
In accordance with the provisions of the Companies Act, 2013
read with Article 83 of the Articles of Association of the Company,
Mr. Ajay Srinivasan and Mr. B.N. Puranmalka, Directors, retire by
rotation at the ensuing Annual General Meeting (AGM) of the
Company, and being eligible, offer themselves for
re-appointment.
Mr. Sandeep Asthana was appointed as an Additional Director of
the Company by the Board of Directors at its meeting held on August
01, 2014. As per the provision of Section 161 of the Companies Act,
2013, Mr. Asthana holds office only up to the date of the ensuing
AGM of the Company. The Company has also received a Notice in
writing along with requisite deposit under Section 160 of the Act,
proposing his candidature for the office of Director.
Mr. Haigreve Khaitan was appointed as an Additional
(Independent) Director on the Board of the Company for a period of
5 years. Pursuant to Section 161 of the Companies Act, 2013, Mr.
Khaitan holds office only up to the date of the forthcoming AGM of
the Company and in accordance with the requirements of Section 150
and 152 of the Companies Act, 2013, his continuation as an
Independent Director will required to be approved by the Members of
the Company in the ensuing AGM for a period of 5 years with effect
from January 30, 2015.
Mr. Lalit Naik was appointed as Director in casual vacancy (in
place of Dr. Rakesh Jain) on January 30, 2015. Pursuant to Section
161(4) of the Companies Act, 2013, Mr. Naik holds office up to the
date which the original Director (Dr. Rakesh Jain) would have held
office if it had not been vacated. Consequently, Mr. Naik holds
office till the ensuing AGM of the Company, the date till which the
original Director Dr. Rakesh Jain, would have held the office and
is eligible for re-appointment. The Company has received Notices in
writing from Members along with requisite deposit under Section 160
of the Act proposing the candidature of Mr. Khaitan and Mr. Naik
for appointment as a Director. The Board recommends the appointment
of aforesaid Directors by the shareholders in the ensuing AGM.
The Company has also received requisite disclosures and
undertakings from all the Directors in compliance with the
provisions of the Companies Act, 2013 and the Insurance Act, 1938
along with the other applicable guidelines issued by IRDA. The
Independent Directors have given the declarations under Section
149(6) of the Companies Act, 2013.
Directors Report
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for the year ended March 31, 2015
Birla Sun Life Insurance
29 | ANNUAL REPORT 2014-15
A detailed profile of the Directors seeking appointment at the
ensuing Annual General Meeting of the Company is given in the
Corporate Governance Report, forming a part of this Annual
Report.
15. KEY MANAGERIAL PERSONNEL During the year under review, the
Company had the following Key Managerial Personnel (KMP):
Mr. Pankaj Razdan (Managing Director and Chief Executive
Officer)
Mr. Amit Jain (Chief Financial Officer)
Mr. Ashish Lakhtakia (Company Secretary upto, August 29,
2014)
Mr. Amber Gupta (Company Secretary, appointed w.e.f. August 29,
2014)
16. BOARD EVALUATIONPursuant to the requirement of the Companies
Act, 2013, the annual performance evaluation of the Board, the
Directors (Independent and others) individually, as well as
applicable Committees of the Board viz Audit, Nomination and
Remuneration Committee (NRC) and Corporate Social Responsibility
(CSR) Committee was carried out for FY14-15.
17. NOMINATION AND REMUNERATION COMMITTEE POLICYThe Board has
formed the Nomination and Remuneration Committee. The Board has, on
the recommendation of the Nomination & Remuneration Committee,
formulated a policy on Directors appointment and remuneration
including the criteria for determining qualifications, positive
attributes and independence of a Director and other matters as
specified under Section 178(3) of the Companies Act, 2013. The
Nomination and Remuneration Policy of the Company is annexed to the
Directors Report.
18. MANAGERIAL REMUNERATIONThe details on remuneration paid to
the Non-Executive Directors are disclosed in the Corporate
Governance Report and the details on remuneration paid to the
Managing Director is as per MGT 9 which forms part of the
Directors' Report.
19. NUMBER OF BOARD MEETINGS During the year under review four
Board Meetings were convened and held, the details of which are
given in the Corporate Governance Report. The intervening gap
between the Meetings was within the period prescribed under the
Companies Act, 2013. The detailed information about Composition,
Meetings and attendance are provided in the Corporate Governance
Report.
20. AUDIT COMMITTEEThe Company has duly constituted Audit
Committee. The details as regard to the Composition, Meetings,
attendance and other information are provided in the Corporate
Governance Report.
21. WHISTLE BLOWER POLICYThe Company has implemented a Whistle
Blower Policy providing a platform to all the employees and
Directors to report any suspected or confirmed incident of
fraud/misconduct through any of the determined reporting protocols.
The more details are provided in the Corporate Governance
Report.
22. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to Section
134(5) of the Companies Act 2013, your Directors, to the best of
their knowledge and belief confirm that:
in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper
explanation relating to material departures;
the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year
and of the profit and loss of the Company for that period;
the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 2013 preventing and detecting fraud
and other irregularities;
the Directors have prepared the annual accounts on a going
conce