The firm was established on 1st February, by Shri Kantilal Anandrai Pandit (B.SC, FIA (London)). The aim of the firm was to provide consultancy services. Since then, a vast array of services such as Product Pricing, Liability Measurement and Recognition, Certification, Consulting and Actuarial Valuations as required by the Controller of Insurance were provided to about 100 life insurance companies across the globe.
The firm was exposed to a new array of assignments; namely Valuations of Life Interest and Remainderman’s Interest under a trust as required under Indian Wealth Tax Act for more than 1000 trusts. The firm undertook valuations of Life Insurance companies operating outside India while simultaneously conducting valuations of Gratuity and Pension Liabilities for Peoples’ Bank of Ceylon, Imperial Bank, State Bank of India and many other companies.
The Payment of Gratuity Act came into force making it mandatory to pay Gratuity to all establishments employing 10 or more employees. The Supreme Court judgement in the Metal Box Case (1969) said that Gratuity Liability calculated as per Actuarial Valuation is the proper scientific method and any provision made by the employer in respect of Gratuity Liability as per Actuarial Valuation should be allowed as an expense in the Accounts of the establishment as per Section 36 of the Income Tax Act 1961. This resulted into a large number of establishments approaching the firm for such valuations.
A condition was incorporated in the Income Tax Act, 1961 that any Actuarial Provision made can only be allowed if the establishments create an Income Tax approved Gratuity Fund and make the payment of such provision before a stipulated time. Thereby, any further provisions would be allowed only if there is an approved Gratuity Fund. As per this Income Tax provision, more companies approached us to draft the trust deed and rules and get them approved from the Commissioner of Income Tax to avail the said benefit.
Mr. D. K. Pandit joined as Partner in the firm with Shri K. A. Pandit.
Mr. Akshay Pandit joined the Firm and with his involvement the firm designed a Unique Pension Scheme for large public sector organisations which translated to many PSU’s availing the services of the firm. Shri K. A. Pandit visited Colombo with Mr. D. K. Pandit and Mr. Akshay Pandit for Life Insurance product pricing as required by Ceylon Insurance Company when privatisation of the Insurance industry took place in Sri Lanka. Mr. Askshay pandit helps the firm to become the first Indian estblishment to provide product pricing for life insurance comany using a software.
On 5th October, the firm opened a branch in Ahmedabad, Gujarat to make Actuarial Services easily accessible to the industries in Gujarat.
On 1st September, Mr. Hugh Scurfield, the then President of Institute of Actuaries, London visited our office at Churchgate House. Later in the evening there was a function organised by the Actuarial Society of India to honour Shri K. A. Pandit (F.I.A. 1940) and Shri. A. Rajgopalan (F.I.A. 1941) having completed 50 years as F.I.A at the hands of Mr. Hugh Scurfield. The function was well attended and was telecasted nationally.
The firm was entrusted with a cost analysis of providing inflation linked benefits according to the defined benefit pension scheme for all employees of the Banking Industry. The analysis was done through a software developed by Mr. Jayesh Pandit (CA 1989) using the cash flow methodology which made the valuation analysis and reporting efficient. These technological and methodological improvements when integrated in the working process helped the firm submit the report thereby aiding the banking industry in India to implement the pension scheme w.e.f. 1993.
Our firm completed 50 years and to mark that completion the firm published the first commemorative book which interalia contained the analysis of salary scales, withdrawal rates and mortality rates for various companies' employees classified into large, medium and small industries. This investigation was formally submitted to the Actuarial Society of India.
The firm continued to grow and gained membership of the consortium of big Actuarial firms in the world known as Woodrow Milliman. Woodrow Milliman's principle firm namely, Bacon and Woodrow trained Mr. Akshay Pandit on their software for Life Insurance known as “Prophet”. This training helped the firm in adapting to Prophet for the valuations of Life Insurance companies.
This year was marked by the announcement of opening the Insurance Market to Private Players which increased the scope of actuarial services. The Firm also entered into a Partnership with Leading Actuaries namely, Mr. M. G. Diwan for Life Insurance and Mr. N. K. Parikh and Mr. P. I. Majmudar for Non-Life Insurance as they had many illustrious achievements as a result of the valuable experience gained from working in the field of Insurance. The firm continued to prosper under their guidance. Mr. Akshay Pandit (AASI) also joined as a partner to expand the business in India and Abroad.
The firm started providing their services to startup life and non-life insurance companies for getting approval from Insurance Regulatory & Development Authority, India (IRDA). The firm with the help of the partners provided their services as an Appointed Actuary for various Non-Life Companies.
The firm on completion of 60 years published a second commemorative book which contained the articles on Life Insurance, Non-Life Insurance, Pensions and articles on Accounting Standards.
With the revision of the Indian Accounting Standard pertaining to Employee Benefits (Accounting Standard – 15), the valuation of Defined Benefit Obligations by an actuary became mandatory. Valuing Defined Benefits by Actuaries under International Accounting Standard - 19 with the additional requirement of disclosures for the auditing firms were also made compulsory and hence the scope of our work increased considerably.
On 12th August, the Firm celebrated the birth centenary of the founder.
In the month of June, Mr. Jayesh Pandit, Mr. Akshay Pandit and Mr. Ganesh Sudrik represented the firm along with representatives of Ministry Of Finance, India and Commissioner of Provident Fund, India to analyse the actuarial valuation of Employees Pension Scheme 1995 (EPS 95) as on 31st March 2009 using Pension Reform Options Simulation Toolkit (PROST) model developed by the World Bank based in Washington DC (USA) .
The firm was chosen to assist the International Finance Commission on behalf of a Sri Lankan Company to price the agricultural products based on Weather Indices.
The firm celebrated 70 years of practice and 25 years of practice in Mumbai and Ahmedabad respectively.