Institute of Actuaries of India INDIAN ACTUTIAL PROFESSION Serving the Cause of Public Interest INSTITUTE OF ACTUARIES OF INDIA Annual Report & Accounts 2009 - 2010 Annual Report & Accounts / 1 Institute of Actuaries of India CONTENTS Subject Page No • Notice and Agenda for the AGM on 28.08.2010 3 • Minutes of 3rd Annual General Meeting held on 28.08.2009 4 President’s statement on the State of the Institute 5 Fourth Report of the Council for the year ended 31.03.2010 1. Environment 8 2. Membership 8 3. Committees / Advisory Groups and Council 13 4. 12th Global Conference of Actuaries 32 5. Library 33 6. Analysis of Financial Statement 33 7. Acknowledgments 33 Financial Statement of Institute of Actuaries of India : 1. Auditor’s Report 34 2. Balance Sheet 35 3. Income & Expenditure Account 36 4. Schedules 37 5. Significant Accounting Policies 54 6. Notes to the Accounts 55 Financial Statement of Mortaility and Morbility Investigation Centre 56 2 / Annual Report & Accounts Institute of Actuaries of India NOTICE FOR THE 4TH ANNUAL GENERAL MEETING TO BE HELD ON 28.8.2010 UNDER SECTION 13 OF THE ACTUARIES ACT, 2006 TO: All Members of the Institute Annual General Meeting of the Institute in terms of Section 13 of the Actuaries Act, 2006 will be held as under : Date 28th August 2010 Time 4.30 P.M. Venue IAI office, G.S. Diwan Room Agenda Items: Agenda 1: Two minutes silence to condole death of the following members, information in respect of whom came to notice of the Institute after the last AGM on 28.8.2009 : Sr.No. Name Date of Death 1. Shah R.B. 9.9.2008 2. D’Souza G.W. 17.11.2009 3. Basu D 9.2.2010 4. Venkataraman L.P. 3.7.2010 Agenda 2: To approve the Minutes of the Annual General Meeting held on 28.8.2009 Agenda 3: To consider and adopt the 4th Report of the Council for the year ended 31st March 2010 Agenda 4: To consider and adopt the Audited Accounts for the period 1st April 2009 to 31st March 2010 Agenda 5: To announce the result of the Election to the Council – 2010 Agenda 6: Any other item with the permission of the Chair Note: This Notice is being e mailed, mailed and posted on the Website. The Agenda Notes are being sent/provided accordingly. (G.L.N. Sarma ) Hon. Secretary Annual Report & Accounts / 3 Institute of Actuaries of India MINUTES OF 3RD ANNUAL GENERAL MEETING Date 28.8.2009 Time 4.30 P.M. Venue Sea Princess Hotel, Juhu, Mumbai The meeting was conducted on Schedule. 20 Members were present The President, Mr. G.N. Agarwal, chaired the meeting. He welcomed all the members to the meeting. The agenda items were taken up seriatim. Agenda 1:Two minutes silence to condole death of the following members, information in respect of whom came to notice of the Institute after the last General Body meeting on 20.12.2008: Two minutes silence was observed to condole the death of the following: Sr.No. Name Date of Death 1. Nagoji rao T.R. 2.3.2009 2. Soundara R. Rajan 4.3.2009 Agenda 2: To approve the Minutes of the General Body Meeting held on 20.12.2008 The minutes were approved. Agenda 3: To consider and adopt the 3rd Report of the Council for the year ended 31st March 2009 Before the annual report for the year 2008-09 was considered for adoption, the President mentioned the various activities covering the period effective from the date last reported in the AGM held on 30.8.2008. He mentioned the following key activities of the Institute:- • Notificationof the Rules of the Institute in terms of Section 55 of the Actuaries Act, 2006 particularly the Actuaries (Election to the Council) Rules, 2008 which paved the way for holding of the elections to the Council 2008. • Council finalized the various Regulations as per Section 56 of the Actuaries Act, 2006 which have been sent to the Government of India for notification. • The Disciplinary Committee of the Institute was constituted on 22.4.2009 with Mr. K.S. Gopalakrishnan, Vice President as the Presiding Officer and Mr. Uttam Prakash Agarwal, President, ICAI, Ms. Sukriti Likhi, Director (Insurance), Mr. K.K. Wadhwa, Council member, IAI and Mr. A.R. Prabhu, Council Member, IAI as members of the Committee. • The percentage for November 2008 examination was 27.2 per cent and for May 2009 examination it was 27.3 per cent and that this year’s examination produced nine more Fellow members. • Council focused on policy matters, while encouraging various committees and the Advisory Groups to carry out a number of Conferences, Workshops and Seminars so as to provide essential inputs in their different areas of practice. • MMIC was opened in Hyderabad. It has got data from 15 life insurance companies. The data analyses are in process. It is expected that in this financial year a new mortality table will be out. • 11th GCA was a grand success. More than 500 participants attended GCA. The income arising from the 11th GCA was Rs.70.33 lakhs as compared to Rs.46.40 lakhs of last year. • A working group under the Chairmanship of Dr. R. Kannan submitted Report on MCEV which will lay foundation for supervision of insurance industry moving towards a Risk Based Capital Approach. • IAI is developing web-enabled Integrated Software System known as Member Tracker System which would enable the Institute to provide better service to all members. • The Certificate of Registration has been received from Registrar of Newspapers for India, Ministry of Information and Broadcasting which will enable the Institute to dispatch Actuary India magazine through post office. It would provide saving of about Rs.7.50 lakhs per year. • President also announced about naming of one road in Hindu Colony, Dadar (East), Mumbai after the name of Prof.. G.S. Diwan, one of our founder actuaries. Thereafter the Annual Report of the Council was adopted. The resolution was proposed by Mr. Sunil Sharma and seconded by Mr. Abhishek Saraf. Agenda 4 : To consider and adopt the Audited Accounts for the period 1st April 2008 to 31st March 2009 The President briefed the members about the finances of the Institute. He mentioned that surplus generated during 2008-09 was higher by Rs.55.39 lakhs (43.57 %) over previous year. The total income as well as the total expenses (other than Audit fee and Depreciation) grew by about 31% as compared to increases of 38% and 11%, respectively during the last year. Due to various measures undertaken by the Institute interest income on investment is about 11.57% which is higher by 86% over previous year. Thereafter the audited accounts for the period 1st April 2008 to 31st March 2009 of the Institute of Actuaries of India were adopted. The resolution was proposed by Mr. N.M. Govardhan and seconded by Mr. A.R. Prabhu. The meeting ended with a vote of thanks to the Chair. 4 / Annual Report & Accounts Institute of Actuaries of India President’s Statement on the State of the Institute Let me welcome you all to the 4th Annual General Meeting (AGM) of the Institute of Actuaries of India (IAI). This is also my last meeting addressing you as President of the Institute. I am happy to place before you a brief summary of various activities of the Institute and its financial statements for the financial year ending 31.3.2010. The activities cover the period effective from the date of the AGM held on 28.8.2009. 1. Election to Council – 2010 In terms of Section 12(4) of the Actuaries Act, 2006, one third of the elected members i.e. 4 out of 12 members have to retire at the expiration of every second year. Out of 4 members, President had to retire as per Section 14(2) of the Act ibid. The other three were chosen by draw of lots during the Council meeting held on 19.2.2010 which are as under: 1. Mr. K.S. Gopalakrishnan 2. Mr. S. Madhusudhanan 3. Mr. Heerak Basu Accordingly election to the Council for the year 2010 was conducted as per The Actuaries (Election to the Council) Rules, 2008 and four Council members are being elected whose names will be announced in today’s AGM. 2. Regulations of the Institute In terms of Section 56 of the Actuaries Act, 2006 the Council has made following two Regulations with the approval of the Central Government:- (1) The Institute of Actuaries of India (Transaction of Business at meetings of Council) Regulations, 2010 (2) The Institute of Actuaries of India (Maintenance of Register, Publication of List, and Re-entry of names in Register of members) Regulations, 2010 For the remaining Regulations, we are in touch with the Central Government. 3. Examinations and Results : During the period two examination diets viz. October 2009 and May 2010 were held where total number of 7932 and 6557 candidates registered for the examination while 6049 and 5166 candidates appeared, respectively. A commendable job has been done by the Education and Examination Committee and the Advisory Group on Examination as a result of which we are able to successfully declare the results in 8 weeks’ time of completion of the examination. These examinations produced 7 and 5 Fellow members. The pass percentage for October 2009 examination was 26.75 percent and for May 2010 examination it was 20.5 per cent. 4. Seminars and Workshops held by different Advisory Groups : During this period the Council of the Institute focused on various policy matters and encouraged various committees and the Advisory Groups to carry out a number of Conferences, Workshops and Seminars so as to strengthen inputs in their different areas of practice such as : • The Advisory Group on Life Insurance held CILA at Sea Princess, Mumbai on 27th and 28th August 2009 which was attended by more than 100 participants.