PROJECT REPORT ON FUNDS FLOW STATEMENT ANALYSIS

AT ING VYSYA LIFEINSURANCE.

By Mr. J.ANKUSH (H.T. 216011672039)

Project submitted in partial fulfillment for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION

St. PAULS COLLEGE OF MANAGEMENT AND IT

(Affiliated to OSMANIA UNIVERSITY) HYDERABAD

2011-2013

CERTIFICATE
This is to certify that this project report titled A study on FUNDS FLOW STATEMENT ANALYSIS with respect to ING VYSYA LIFE INSURANCE is bonafide work done by J.ANKUSH of IV Semester MBA, under our guidance and submitted to the Department of Management Studies, St. PAULS COLLEGE OF MANAGEMENT AND IT in partial fulfillment for the award of Master of Business Administration during the year 20112013.

Signature of the Guide N. SRIKANTH

DECLARATION

I hereby declare that this project report titled FUNDS FLOW STATEMENT ANALYSIS at ING VYSY LIFE INSURANCE, submitted by me to the department of Business Administration, St. PAULS COLLEGE OF MANAGEMENT AND IT, is a bonafide work under taken by me and it is not submitted to any other university or institution for the award of any degree diploma/certificate or published any time before.

Date: Place: Hyderabad (J.ANKUSH)

ACKNOWLEDGEMENT
The highest happiness that accompanies the successful completion of any task would be incomplete without the expression of gratitude to all those people who have helped me throughout this project as success is the abstract of hard work.

I would like to express my heartfelt gratitude to Mr. CH. SRINIVAS (Manager HR) for permitting me to do the project in Ing vysya Life insurance and also for his inspiring guidance, support, valuable inputs and constructive criticism to develop and complete this project. I express my heartfelt thanks to the HR Team and all the employees of the organization for co-operation. I am also thankful for the encouragement extended by Mrs. B. INDIRA REDDY Principal, St. PAULS COLLEGE OF MANAGEMENT AND IT and Mr. N.SRIKANTH, Guide for his constant support and co operation. Last but not the least; I would like to thank my parents and friends for their constant support and co-operation with out which I would have not completed this project in the stipulated time.

ABSTRACT
Funds flow analysis helps in judging the efficiency of financial functions and administration of a business by providing a summary of the sources from which funds have be procured and uses to which such funds have been put to. A projected funds flow statement will help the analyst in finding out as to how the management is going to allocate the scare financial resources for meeting productive requirements of the business. It is the responsibility of the organization to maintain a standard level of funds flow neither excess or deficit.

TABLE OF CONTENTS

CONTENTS

PAGE N.O:

CHAPTER 1: INTRODUCTION...7-14 CHAPTER 2: INDUSTRY PROFILE...15-22

CHAPTER 3: COMPANY PROFILE..23-33

CHAPTER4: REVIEW LITERATURE.34-44 CHAPTER 5: DATA ANALYSIS AND INTERPRETATION..45-54

CHAPTER 6: SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS.55-58 CHAPTER 6: BIBLIOGRAPHY 59-60 CHAPTER 7: ANUXARE61-69

CHAPTER 1

Topic Introduction

A funds flow statement is a technical device designed to analyze, the changes in the financial condition of a business enterprise between two years. It is also called as a statement of sources and applications of funds . The funds flow statement is Becoming popular with the management because it not only helps them in analyzing financial operations, providing basis for comparison with budgets, and serving as a tool of communication, but also explains the financial consequences of such operations such as the reason why the company is experiencing difficulty in making payments to creditors or why the bank balance is getting thinner.

There is a general recognition in industry and business and among professional accounting bodies that financial statements should provide relevant information which sub serves the multiple objectives of shareholders, investors, creditors, customers and the public and which enable them to arrive at rational economic decisions. Normally what the shareholders look for in these statements is an account of the stewardship of the firm and the amount which may be expected as dividend. Potential investors look upon funds flow statements as the source of there realistic view of the value of a companys shares in terms of an expected futures stream of distribution and judge the efficiency of the management accordingly.

Advantages of funds flow statement:

1. The funds flow statement acts as a supplementary statement to the traditional financial statements, viz., balance sheet and profit & loss account. 2. It registers changes in the flow of funds during a given period of time. 3. It suggests the ways of improving working capital position. 4. It helps in planning for retirement long term debts. 5. It helps in deciding about the mode of financing expansion or replacement facilities. 6. It helps in formulation of a realistic dividend policy.

. Business transactions and flow of funds

It may be noted at this stage of analysis that for the purpose of funds flow statement, the items of balance sheet are classified into two broad categories viz., Items of current accounts and Items of non-current accounts.

Current account Items

Current assets Cash in hand Cash at bank (including fixed deposits) Bills receivable Trade or sundry debtors Inventory-Raw-materials, work inprogress, Finished Goods, Stores,etc Prepaid expenses Outstanding incomes Short-term loans and advances Temporary investments, etc

Current liabilities Bills payable Trade or sundry creditors Outstanding expenses Cash credit/bank overdraft Short-term loans Income received in advance Long-term loans (or part) which fall due for repayment within a year Provision for doubtful debts and discount on debtors

Non-current Account Items

Non-current assets Land and Buildings Plant and Machinery and vehicles Furniture and fittings Goodwill Patents, trade marks, copy rights, preliminary expenses and profit and loss account(deficiency),etc Non-current liabilities Equity share capital Preference share capital Debentures Reserves and surplus Long term loans

The word fund is to denote working capital. Funds flow there fore refers to the changes in the fund (i.e., working capital) by the transactions operational, financial and investment, though the effect of all the transactions on the funds are considered, it should be remembered here that not all the transactions cause the flow of funds .

The transactions which do not affect the flow of funds:1) Transactions affecting the items of only Current assets. 2) Transactions involving the items of only Current liabilities. 3) Transactions involving the items of only Current assets on the one hand , and the Current liabilities on the other (Current assets Vs Current liabilities),and 4) Transactions affecting only the Non-Current items.

The transactions which affect the flow of funds:1) Transactions affecting the items of Current assets and fixed assets. 2) Transactions affecting the items of Current assets and capital and long-term liabilities. 3) Transactions affecting the items of Current liabilities and fixed assets. 4) Transactions affecting the items of Current liabilities and capital and long-term liabilities. These are the different transactions which affect and do not affect the flow of funds .It is there fore necessary to analyze the different transactions to find out whether they cause any changes in the fund or not.

OBJECTIVES

1. To study the financial statements of The ING VYSYA for the 4 years. 10

2. To analyze how The Financial Services is utilizing its resources. 3. To analyze the changes in assets and liabilities from the end of one period of the time to the end of another period of time 4. To find out the sources from which additional funds were derived and the use to which their sources were put.

SCOPE OF THE STUDY

The present study focuses as sources funds and application of funds for a period of time. The study is confirmed to find out the changes in the financial 11

position of The Ing Vysya Life Insurance Limited between the beginning and ending financial Year. It is a technical device designed to analyze the changes in the financial condition of the business enterprises between two dates. This funds flow statement is a statement which indicates various means by which the funds have been obtained during a certain period and the ways to which these funds have been used during the period. The term funds used here means working capital that is the excess of current assets over current liabilities. It is an essential tool for the financial analysts and is of primary importance to the financial management. Now a days it is being widely used by the financial analyst credit granting institutions and financial managers. The basic purpose of the funds flow statement is to reveal the changes in the working capital on the two balance sheet dates. It helps in the analysis of financial operations. It helps in the formation of realistic dividend policy. It helps in the proper allocation of resources. It helps in appraising the use of working capital and finally it acts as future guide.

LIMITATIONS

12

1. It should remember that a funds flow statement is not a substitute of an income statement or a balance sheet. It provides only some additional information as regards changes in working capital

2. The study based on the available annual reports and internal information of Ing vysya Life Insurance. 3. It cannot reveal continuous changes.

RESEARCH METHODOLOGY
Research

13

Research is a process in which the researcher wishes to find out the end result for a given problem and thus the solution helps in the future course of action. Redman and Mory defines research as a systematized effort to gain new knowledge.

Research Design
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with company in procedure. In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data.

Data sources
Primary Data:
First hand information was collected from the Associate Vice president, Department of Business Insurance of the Ing vysya. Interaction with guide to understand the general & specific aspects regarding utilization of resources.

Secondary Data:
Annual reports collected from the Ing vysya.

Data collection:
Sample size Sample area : : Four years annual reports. Ing Vysya Life Insurance, Hyderabad.

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CHAPTER -II

ING Vysya Life entered the private life insurance industry in India in September 2001, and has established itself as a distinctive life insurance brand with an innovative, attractive and customer-friendly portfolio ranging from protection, savings, retirement and investment plans; which it sells through a unique tool - The Life Maker.

15

ING Vysya Life is headquartered in Bangalore, and is a part of the ING group. The ING group is a 150-year-old global financial institution of Dutch origin offering Isurance, insurance and asset management to over 60 million private, corporate and institutional clients in 50 countries. We are the world's Largest Financial Services Group and the world's Largest Life Insurance Provider. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING's long-term commitment. In the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries successfully.

HISTORY OF INSURANCE IN INDIA

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. In 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting 16

the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalizations) Act, general insurance business was nationalized with effect from 1 st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

17

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national reinsurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. India insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, the Indian insurance sector been allowed to flourish, and as Indians become more familiar with different insurance products, this growth can only increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the Indian insurance industy.

India Insurance Policies at a Glance

18

Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. The most common types include: term life policies, endowment policies, joint life policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans, group insurance policies, pension plans, and annuities. General insurance plans are also available to cover motor insurance, home insurance, travel insurance and health insurance. Due to the growing demand for insurance, more and more insurance companies are now emerging in the Indian insurance sector. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the India insurance industry.

India Insurance: History

The history of the Indian insurance sector dates back to 1818, when the Oriental Life Insurance Company was formed in Kolkata. A new era began in the India insurance sector, with the passing of the Life Insurance Act of 1912. The Indian Insurance Companies Act was passed in 1928. This act empowered the government of India to gather necessary information about the life insurance and non-life insurance organizations operating in the Indian financial markets. The Triton Insurance Company Ltd formed in 1850 and was the first of its kind in the general insurance sector in India. Established in 1907, Indian Mercantile Insurance Limited was the first company to handle all forms of India insurance.

Indian Insurance: Sector Reform

The formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance sector. The aim of the Malhotra Committee was to assess the functionality of the Indian insurance sector. This committee was also in charge of recommending the future path of insurance in India. The Malhotra Committee attempted to improve various aspects of the insurance sector, making them more appropriate and effective for the Indian market. The recommendations of the committee put stress on offering operational autonomy to the insurance service providers and also suggested forming an independent regulatory body. The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory and Development Authority (IRDA) in 2000. The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as to initiate different policy measures to help sustain growth in the Indian insurance sector. 19

The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad. Detailed information on IRDA is available at their web-site www.irdaindia.org

Protection of the interest of policy holders: IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public. All insurers are required to set up proper grievance redress machinery in their head office and at their other offices. The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

Insurance in India AnOverviewoftheInsuranceIndustryinIndia The history of the insurance industry in India dates back in 1818 when the first insurance company was formed. (Oriental Insurance Company Limited). It has since undergone several reforms in the form of liberalization and nationalization. In the ensuing discussion, we shall seek to explore the nature of the industry in general. Regulation And Players In The Industry This industry is regulated by the Insurance Regulatory & Development Authority (IRDA). It ensures that all policyholders interests are protected. IRDA has listed all stakeholders in the industry including corporate agents, brokers, surveyors, insurance councils, state and life insurers and one main reinsurer. 20

These players in the market are the driving force towards achieving a record 3% of the gross domestic product in the economy in India. The brokers, for example, are assigned the work of distributing the premiums mainly through direct sales. IRDA also offers guidelines with regard to investment in mutual funds, pension, general annuity funds and group schemes. Services In The Industry The services rendered by this industry are overshadowed by the industry's history of liberalization and nationalization. Two main sectors exist. They are the public sector and the private sector with the former dominating the market. Individual company service provision includes such services as life insurance (endowment assurance, money back and miscellaneous services) and general insurance/non life insurance (includes marine insurance, motor insurance which is compulsory in the country, fire insurance etc.). Future of The Industry From as early as 1947 to 1972, this industry has gone through dynamic change. With the formation of the regulatory body, passing of the insurance act, and passing of various reforms, this insurance in india has become competitive and continues to attract interest from foreign countries. However, the recent economic recession has greatly affected this industry. Currently, there is a major credit crisis affecting the industry. A typical example is the collapse of US based AIG Company that has had ripple effects on to Indias TATA-AIG General Insurance Company. Bajaj Allianz, Prudential and ICICI companies have already closed some of their branches. any players have proposed the merging of the various companies in the sector to be able to caution themselves from the crunch. It is equally important to note that recession is not new to Indias economy. The country has been able to come out of one once and it can do so even now. Life Insurance Policies Endowment Policy India Group Insurance Policy Joint Life Policy Loan Cover Term Assurance Policy Money Back Policy Pension Plan or Annuities Term Life Policy Unit Linked Insurance Plan Whole Life Insurance Policy India Life Insurance Companies Bajaj Allianz HDFC Standard Life Insurance ICICI Prudential Lic India General Insurance Home Insurance 21

Health Insurance Motor Insurance Travel Insurance Mutual Funds of India Bank of Baroda Mutual Fund India Birla Sun Life Mutual Fund India HDFC Mutual Fund India HSBC Mutual Fund India ICICI Prudential Mutual Funds Kotak Mahindra Mutual Funds LIC Mutual Funds Reliance India SBI Mutual Funds

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CHAPTER III

COMPANY PROFILE
ING Vysya Life Insurance is a part of the ING groups the worlds fourth largest financial services company and also the worlds second largest life insurance provider. ING vysya life insurance is here to provide with the innovative and well designed products that effectively meet your life insurance needs. ING vysya life insurance stands 13th in the fortune 500 list. 23

ING Vysya life insurance company ltd entered the private life insurance industry in India in September 2001. it has a dedicated and committed advisor sales force of over 21000 people, working from 140 branches located in 74 major cities across the country and over 3000 employees. Its headquarter is situated at Bangalore. The company portfolio offers products that later to every financial requirement at any life stage. It brings to you over 150 years of experience and the heritage of a name trusted in 50 countries. More than 60 million customers around the world have entrusted it with over US$700 billion of their wealth. ING vysya life CEO and managing director, Mr.Frank Koster, said that a study had found that the life insurance business had a good potential in rural India because people had a strong savings habit and a high level of awareness about life insurance. The bulk of the companys business comes from the traditional distribution route of insurance agents. ING vysya life insurance recorded an income of Rs 102 crore in 2008-09. ING vysya life on Wednesday june 2007 enrolled Madras fertilizers as corporate agent to use the latters infrastructure to penetrate the rural life insurance market in south India. The company has over 6500 dealers and 100 field staff who deal with over one lakh farmers. The company aims to make customers look at fire insurance afresh, not just as a tax saving device as a means to add protection to life. The company portfolio offers products that later to every financial requirement, at any life stage

Origin of ING Group:

On the other hand, ING group originated in 1990 from the merger between Nationale and Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV. Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by 24

changing

the

statutory

name

to

ING

Group

N.V.

Profile:
ING has gained recognition for its integrated approach of Isurance, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of employee benefits, i.e. arrangements of non wage benefits, such as pension plans for companies and their employees. Ing vysya Ltd. is a joint venture between Vysya Bank Ltd, a premier bank in the Indian Private Sector and ING, a global financial powerhouse of Dutch origin. Ing vysya was founded in October 2002. Vysya Bank was founded in 1930 to extend a helping hand to those who were deprived of Isurance services. Since then the Bank has made rapid strides and has carved a distinct identity of being India's Premier Private Sector Bank. In 1985, the Bank became the number one private sector bank in India. ING group originated in 1990 from the merger between National - Nederland NV the largest Dutch Insurance Company and NMB Post Bank Group NV. The newly formed company called "International Nederland Group" came to be known as ING. As on 31/12/04, Ing vysya had an asset base of 866 billion Euros and an operating net profit of 5.97 billion Euros. The Bank has presence in 57 countries and has employee strength of over 113000 people. In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being the number one private sector bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the 25

performance of the bank Stupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.

26

1930 Set up in Bangalore 1948 Scheduled Bank 1985 Largest Private Sector Bank 1987 The Vysya Bank Leasing Ltd. Commenced 1988 Pioneered the concept of Co branding of Credit Cards 1990 Promoted Vysya Bank Housing Finance Ltd. 1992 Deposits cross Rs.1000 cores 1993 Number of Branches crossed 300 1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by 1998 Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal June 1998) 2000 State -of the -art Date Centre at ITPL, Bangalore. RBI clears setting up of ING Vysya Life Insurance Company The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for 2002 traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net Isurance service. 2002 ING takes over the Management of the Bank from October 7th , 2002 2002 RBI clears the new name of the Bank as Ing vysya Ltd, vide their letter of 17.12.02 2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans 2004 Introduced Protected Home Loans - a housing loan product 2005 Introduced Solo - My Own Account for youth and Customer Service Line Phone Isurance Service Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow 2006 Isurance The long journey of seventy five years has several milestones

2001 ING-Vysya commenced life insurance business.

HIS MILESTONES OF ING VYSYA:-

27

Retirement/Pension Plan Retirement/Pension Plan Child Plan Child Plan Child Plan Term Plan Term Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan

ING New Best Years ING Immediate Annuity ING Aashirwad Creating Life Child Protection Plan Creating Life Money Back Plan ING Term Life ING Term Life Plus ING Market Shield ING Prospering Life ING Prospering Life- Single Premium ING Uttam Jeevan- Regular Premium ING Uttam Jeevan- Single Premium ING Powering Life ING Platinum Life Plan ING New Fulfilling Life Plan Reassuring Life Endowment Plan Safal Jeevan Endowment Plan Safal Jeevan Money Back Plan ING Creating Star Guranteed Future

28

CHAPTER IV

Preparation of Funds Flow Statement

While preparing the Funds flow statement ,individual items of current assets and current liabilities are not shown separately but there are consolidated in a separate statement called Schedule of changes in Working capital and only the 29

net change in the Working capital during an accounting year is taken to the funds flow statement therefore, comprises of two parts, 1) Schedule of changes in Working capital 2) Statement of sources and Uses of funds

1) Schedule of changes in Working capital:-

30

PARTICULARS

PREVIOUS CURRENT YEAR YEAR

EFFECT ON WORKING CAPITAL INCREASE DECREASE

CURRENT ASSETS Cash in hand Cash at Bank Bills receivable Sundry Debtors Temporary investments Stocks/Inventories Prepaid expenses Accrued Incomes Total Current Assets(a) CURRENT LIABILITIES Bills payable Sundry creditors Outstanding expenses Bank overdraft Short-term advance Dividend payable Proposed dividends* Provision for taxation* Total current liabilities(b) Working Capital (a-b) Net increase or decrease in working capital

2) Statement of sources and uses of funds:-

31

Sources

Amount Rs

Applications

Amou nt Rs

Issue of shares and Debentures Long-term Loans Sale of investment, Fixed assets, etc Non-trading Income Decrease in working capital

Redemption of preference shares and debentures Repayment of loan Purchase of Investment, Fixed assets, etc Non-Trading Expenses Increase in working capital+

Note:* Any one of these will find the place in the statement + Any one of these will find the place in the statement Funds means working capital this working capital represents the difference between current assets, current liabilities. All flows of funds pass through working capital. This means that every transaction has an effect on the firms working capital position. 1. An example illustrates this as follows:2. An increase in profits increases the cash balance and hence working capital, 3. An increase in long term liability or any decrease in fixed assets increase the cash balance and hence working capital. Therefore the Funds Flow Statement shows the movement of funds into or out of the current asset account of the firm.

The movement of funds has two aspects: Sources of funds. 32

Uses of funds.

The former supply funds to the working capital and enhances its position. On the other hand, the latter consume funds and erode the working capital position.

Sources of funds: Sale of fixed assets:The sale value of fixed assets including if any is one of the Sources of funds. If such profits have been included in the sale value, they are not included in the profit figures. The reason being that this would led to double counting. Sale of shares: The full amount collected form the issue of shares is treated as source of funds. This means that the amount of premium discount if any is taken into account for this purpose. Long tem Borrowings: Loans raised including any premium or net of discount are considered as source of funds. However loans in form of supplies or services of a non current nature do not constitute source of funds.

Funds from operations: The most important sources of funds is profit from its operations. Profit from operations means the net profit after taxes plus the non cash expenses.

USESOFFUNDS 33

Purchase of fixed assets: Acquisition of fixed assets causes an outflow of funds from the working capital pool. While beginning this effect to the funds flow statement, double counting must be avoided. Repayment of capital: A company redeems the redeemable preference shares. Moreover equity shares can also be paid back as per the procedures laid down in the Indian companies Act, 1956.

Make up of shares: If the firm is operating at a loss, an outflow of funds will be there to the extent of net loss minus the non cash expenses like depreciation .Acquisition of investments and payment of dividend: The outflow of funds takes place on account of acquisition of long term investments and the payment of cash dividend.

Limitations of Funds flow statement:34

1. The following are some of the limitations of Funds flow statement. These limitations are to be kept in mind while drawing any conclusion about the operating results and financial soundness on the basis of Funds flow statement. 2. Funds flow statement. Is being criticized as the one which re-arranges the financial data extracted from the financial statements; 3. The Funds flow statement. Is also being criticized as not furnishing anything new and/or original over and above the conventional Financial statements 4. Funds flow statement. is also based on the historical data as it bases its preparation on the conventional financial statements; and 5. Some of the transactions affecting only the non-current items are, sometimes, not considered while preparing The Funds flow statement.

INSURANCE:
35

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured. The act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.

KEYMAN INSURANCE:
Keyman insurance is an important form of business insurance. There is no legal definition for Keyman Insurance. In general, it can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of the member of the business specified on the policy. The policys term does not extend beyond the period of the key persons usefulness to the business. The aim is to compensate the business for losses and facilitate business continuity. Keyman Insurance does not indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on the insurance policy. EXAMPLE: A simple example will make meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still people riding bikes cover their heads with a helmet. This helmet in such cases act as insurance by protecting him/her from the contingent accident and the ultimate danger. Though loss of life or injuries cannot be measured in financial terms, still in this materialistic world it is quantifiable which tries to compensate the potential future loss financially. Meaning of Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means.

PRINCIPLES OF INSURANCE:
36

The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004. The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called law of large numbers which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no homogeneous exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.

Definite Loss:
The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.

Accidental Loss:
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.

Large Loss:
37

The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.

Affordable Premium:
If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance.

Calculable Loss:
There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.

Limited risk of catastrophically large losses:

The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurers appetite for additional policyholders. 38

39

CHAPTER V

Statement of changes in Working Capital for the year Ended 2008-2009:

(Rs)

40

Particulars A. Current assets: Cash in hand Balance with Banks Balance with Banks - Escrow Account Telephone Deposits K.S.T.Security Deposits Receivables Differed tax Loans & Advances Total Current Assets (A) B. Current Liabilities Contingency deposits Staff Security deposits Unclaimed deposits Other liabilities Statutory & Tax Audit fee Provision for taxation Total Current Liabilities(B) (A-B) Working capital Decrease in working capital

2008

2009

Increase

Decrease

1957 8349222 4677 8000 1000 8934220 ---4789525 22088601

4991 4687197 1677 8000 1000 16644241 305814 11341596 32994516

3034 3662025 3000 7710021 305814 655207 -

900681 5000 110505 1792319 17000 1858000 4683505 17405096 17405096

900681 5000 110505 21490190 25000 4700000 27231376 5763140 11641956 17405096

19697871 8000 2842000

11641956 26212896 26212896

Interpretation:-Comparing the year 2008-2009 Current liabilities increased 22547871 rupees compare current assets increase 10905916 rupees only As a result The Working capital decrease 11641956 rupees.

Funds Flow Statement for the year ended with 31.12.2008

41

Sources

Amount Rs

Uses

Amount Rs

Funds from operations Decrease in Miscellaneous expenditure Decrease in Working capital

7598848

Redemption of shares

66338250 361747 21855735

69314928 Purchase of fixed assets 11641956 Additional Investments

88555732

88555732

Interpretation: - The statement highlights the financing and investing activities of

The Financial Services Limited. The Financial Services Limited decreases miscellaneous expenditure reserve by 69314928 rupees so that t The Financial Services take huge amount of funds from that. In addition to this it takes some funds from operating activities. The Financial Services Limited redeems shares by Rs 66338250 with the funds of decrease of miscellaneous expenditure reserve. In addition to this The Financial Services Ltd use funds to purchase fixed assets and investment.

Statement of changes in Working Capital for the year Ended 2009-2010:

(Rs)

Particulars

2009 42

2010

Increase

Decrease

A. Current assets: Cash in hand Balance with Banks Balance with Banks - Escrow Account Telephone Deposits K.S.T.Security Deposits Receivables Differed tax Loans & Advances Total Current Assets (A) B. Current Liabilities Contingency deposits Staff Security deposits Unclaimed deposits Other liabilities Statutory Audit fee Provision for taxation Total Current Liabilities(B) (A-B) Working capital Increase in working capital 900681 5000 110505 21490190 20000 4700000 27231376 5763140 41405267 47168407 900681 ----14190579 28810 13015121 28135191 47168407 41405267 --5000 110505 7304611 8810 8315121 1677 8000 1000 16644241 305814 11341596 32994516 --8000 1000 51570132 90935 18278123 75303598 6936527 ----34925891 214879 ----4991 4687197 4345 5351063 --663866 1677 646

47168407

Interpretation: - Comparing the year 2009-2010 the current assets increased by

42309082 rupees compare the current liabilities 903815 only as a result working capital increase 41405267 rupees. There fore short term financial position of The Financial Services limited is good. 43

Funds Flow Statement for the year ended with 31.12.2009

44

Sources

Amount Rs

Uses

Amount Rs 3481583 41405267

Funds from operations Sale of investment

23307434 Purchase of fixed assets 21579416 Increase in working Capital

44886850

44886850

Interpretation: - The statement highlights the financing and investing activities of

The Financial Services Limited. Funds from operations are the main source of The Financial Services Limited with the amount of 23307434 rupees and it also takes funds through sale of investment. The Financial Services Limited uses the funds to purchase fixed assets to improve its operations.

Statement of changes in Working Capital for the year Ended 2010-2011:

(Rs)

45

Particulars A. Current assets: Cash in hand Balance with Banks Deposits Receivables Loans & Advances Total Current Assets (A) B. Current Liabilities Contingency deposits Salary payable Other liabilities Statutory Audit fee Provision for taxation Provision for fringe benefit tax Provision for gratuity Proposed dividend Dividend tax Total Current Liabilities(B) (A-B) Working capital Increase in working capital

2010 4345 5351063 9000 51570132 18278123 75212663 900681 --14190579 28810 13015121 ----------28135191 47077472 304862 47442334

2011 6611 21588270 106000 34771822 11566605 17239308 --25267604 78277021 --1775997 177290 308514 16584563 2325985 124656974 4738234

Increase 2266 16237207 97000

Decrease

16798310 97288482

900681 25267604 64086442 28810 11239124 117290 308514 16584563 2325985

304862 47442334 125793570 12593570

Interpretation: - Comparing the year 2010-2011 the current assets increased by

96826645 rupees compare the current liabilities 96521783 as a result working capital increase 304862 rupees. There fore short term financial position of The Financial Services limited is good.

Funds Flow Statement for the year ended with 31.12.2010

46

Sources

Amount Rs

Uses

Amount Rs 1583198 341604 3101548 304862 5331212

Funds from operations

5331212 Purchase of fixed assets Additional Investments Increase in Differed tax asset Increase in working capital 5331212

Interpretation: - The Financial Services Limited takes funds through funds from
operations only. The Financial Services Limited uses these funds to purchase fixed assets and investment .In addition to this The Financial Services Limited increase deferred tax asset also.

Statement of changes in Working Capital for the year Ended 2011-2012: (Rs)
Particulars 2011 47 2012 Increase Decrease

A. Current assets: Cash in hand Balance with Banks Sundry debtors Loans & Advances Total Current Assets (A) B. Current Liabilities Salary payable Other liabilities Provisions Total Current Liabilities(B) (A-B) Working capital Increase in working capital 25267604 78277021 21112349 124656974 47382334 19307854 17045048 59489793 12087980 88622821 66690188 19307854 8222556 18787228 9024369 6611 21694270 34771822 115566605 172039308 3204 50464281 17092699 87752825 155313009 28770011 17679123 27813780 3407

66690188

66690188

64804164

64804164

Interpretation: - Comparing the year 2011-2012 the current assets increased by

16726299 rupees, the current liabilities decrease 36034153 rupees as a result working capital increase 19307854 rupees. There fore short term financial position of The Financial Services limited is good.

Funds Flow Statement for the year ended with 31.12.2011

48

Sources

Amount Rs

Uses

Amount Rs 419297 19307854

Funds from operations Sale of Investment Decrease of deferred tax asset

9372429 Purchase of fixed assets 8210173 Increase in working capital 2144549

19727151

19727151

Interpretation: - The Financial Services limited take huge amount of funds through
funds from operations and sale of investment. The Financial Services limited use some of these funds to purchase fixed assets. The Financial Services limited is also using these funds to increase working capital.

49

Summary of Findings, Suggestions and conclusion

Findings
It is found that The Financial Services limited is holding sufficient share capital. 50

It is inferred that The Financial Services limited is maintaining a minimum Cash Balances. It is interpreted The Financial Services limited is utilizing funds more in purchase of fixed assets. In 2008-2009 the Working capital of The Financial Services limited is decreased by 11641956 rupees. In the same period the flow of funds of The Financial Services limited is high because the company get huge amount of funds from operations and also from decrease in miscellaneous expenditure reserve. The Financial Services limited uses that fund to redeem the shares and to purchase fixed assets. In 2009-2010 the Working capital of The Financial Services limited is increased by 41405267 but the flow of funds is decreased because The Financial Services limited do not get any funds from decrease of reserves, The Financial Services limited get funds only from operations and sale of investment. The Financial Services limited uses some of those funds to purchase fixed assets. In 2010-2012 the Working capital of The Financial Services limited is increased but the flow of funds is low as compared to previous year because The Financial Services limited get funds only from operating activities. The Financial Services limited use some funds to purchase fixed assets. In 2011-2012the Working capital of The Financial Services limited is increased the flow of funds is also increased highly because The Financial Services limited get huge amount of funds from operations and sale of investment . The Financial Services limited use those funds to purchase fixed assets.

Suggestions
51

 It may be suggested that The Financial Services limited should utilize Limited Funds for the purchase of fixed assets. If The Financial Services limited spend more money on purchase of fixed assets it effects the growth of the Ing Vysya financial services limited. When the statement shows the decrease in working capital the bank require to raise short term funds to salvage its financial position.

Conclusion
52

It can be concluded that funds flow performance of the financial services limited is good because funds from operations are high in every year sources of funds. The Financial services limited utilize some funds to purchase fixed assets every year the financial services limited do some investment activities to utilize funds effectively.

53

Chapter 5

BIBLIOGRAPHY
1. COST AND MANAGEMENT ACCOUNTING 54

-M.E.Thukaram Rao. 2. MANAGEMENT ACCOUNTING -J.Madegowda 3. MANAGEMENT ACCOUNTING -I.M.Pandey 4. ADVANCED ACCOUNTANCY -M.C.Shukla- T.S.Grewal Revised By S.C.Guptha Websites:
www.google.com

www.Ingvysyabank.com

55

ANUXARES

BALANCE SHEET AS AT 31ST MARCH, 2009

(Rs)

Particulars Sources of funds Share holders funds share capital Reserve & Surplus

31-32009

31-32008

2211275 0 1459954

8845100 0

56

Total Application of Funds Fixed Assets Gross block Less: Depreciation Net Block Investments Current Assets, Loans Advances a. Current assets b.loans Advances (A) Less: Current Liabilities, Provisions a. Current liabilities b.provisions (B) Net Current Assets(AB) Miscellaneous Expenditure Profit &Loss Account Total 2165292 0 1134159 6 3299451 6 3844050 96 3838239 26

5 3671229 5

7000697 9545169 7

3839282 12 3837087 89 581170 3036792 5 219423 8512250

1729907 6 4789525 2208860 1

2250637 6 4725000 2723137 6 5763140

2808505 1875000 4683505 1740509 6 6931492 8 9545169 7

3671229 5

57

PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2009

(RS)

PARTICULARS INCOME Lease Rentals Brokerage& commission Interest Other Income

31-32009 12060 6587230 5 128142 1346587 8 7947838 5 19216 4124404 4 157467 4142072 7 3805765 8 2536186 3552147 2 6931492 8 6633825 0 3254479 4 2211275 0 2833196 3000000 4598848 3254479 4 4.02 4.02

31-32008 2000379 17858193 466419 7948086 28273077 2085529 3247016 57636 5390181 22882896 1858000 21024896 90339824 ---69314928

EXPENDITURE Finance Administrative Depreciation

Profit Before Tax Provision for Taxation Profit After Tax Balance brought down from previous year Amount adjusted on capital reduction Amount available for apparitions Apparitions In termed Dividend Corporate dividend tax General Reserve Surplus/Deficit Carried to Balance sheet TOTAL EPS-Basic(on Rs2.50 per share) EPS-Diluted(on Rs2.50 per share)

---------69314928 69314928 2.38 2.38

58

BALANCE SHEET AS AT 31ST MARCH, 2010

(Rs)

Particulars Sources of funds Share holders funds share capital Reserve & Surplus Total Application of Funds Fixed Assets Gross block Less: Depreciation Net Block Investments Current Assets, Loans Advances a. Current assets b.loans Advances (A) Less: Current Liabilities, Provisions 5702547 5 1827812 3 7530359 8 3889182 00 3848554 47

31-32010

31-32009

2211275 0 3790697 9 6001972 9

2211275 0 1459954 5 3671229 5

3844050 96 3838239 26 4062753 8788569 581170 3036792 5

2165292 0 1134159 6 3299451 6

59

a. Current liabilities b.provisions (B) Net Current Assets(AB) Total

1509126 0 1304393 1 2813519 1 4716840 7 6001972 9

2250637 6 4725000 2723137 6 5763140 3671229 5

PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2010

(Rs)

60

PARTICULARS INCOME Lease Rentals Brokerage& commission Interest Other Income

31-32010 1012060 8915128 9 89686 3408847 2 1243415 07 529388 7174381 4 1137174 7341037 6 5093113 1 1137200 0 3955913 1 4598848 0 4415797 9 1437328 8 1878409 2150000 2575628 2 4415797 9 4.47 4.47

31-32009 12060 658723 05 128142 134658 78 794783 85 19216 412440 44 157467 414207 27 380576 58 253618 6 355214 72 693149 28 663382 50 325447 94 221127 50 283319 6 300000 0 459884 8 325447 94 4.02 4.02

EXPENDITURE Finance Administrative Depreciation

Profit Before Tax Provision for Taxation Profit After Tax Balance brought down from previous year Amount adjusted on capital reduction Amount available for apparitions Apparitions Intermed Dividend Corporate dividend tax General Reserve Surplus/Deficit Carried to Balance sheet TOTAL EPS-Basic(on Rs2.50 per share) EPS-Diluted(on Rs2.50 per share)

61

BALANCE SHEET AS AT 31ST MARCH, 2011

(Rs)

Particulars Sources of funds Share holders funds share capital Reserves & Surplus Total

31-32011

31-32010

2211275 0 4323819 1 6535094 1

2211275 0 3790697 9 6001972 9

62

Application of Funds Fixed Assets 901177 Gross block 6 Less: 330582 Depreciation 5 Net Block Investments Current Assets, Loans Advances a. Current 564727 assets 03 b.loans 877528 Advances 25 1.72E+ (A) 08 Less: Current Liabilities, Provisions a. Current 1.04E+ liabilities 08 211123 b.provisions 49 1.25E+ (B) 08 Net Current Assets(A-B) TOTAL

3.89E+08 3.85E+08 5645951 9130173 4062753 8788569

57025475 18278123 75303598

15091260 13043931 28135191 4738233 4 6535094 1 4716840 7 6001972 9

PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2011 63

(Rs)

PARTICULARS INCOME Lease Rentals Brokerage& commission Interest Other Income

31-32011 1013075 1885180 71 91562 4937777 5 2390004 83 1127829 38 4898002 5 2171506 1639344 69 7506601 4 2561019 1 4945582 3 7521210 5 7521210 5 2211275 0 5427298 4945582 2614191 2 5374754 2 5.59 5.59

31-32010 1012060 8915128 9 89686 3408847 2 1243415 07

EXPENDITURE Finance Administrative Depreciation 529388 7174381 4 1137174 7341037 6 5093113 1 1137200 0 3955913 1 4598848 4415797 9 1437328 8 1878409 2150000 2575628 2 4415797 9 4.47 4.47

Profit Before Tax Provision for taxation Profit After Tax Balance brought down from previous year Amount available for apparitions Apparitions Intermed Dividend Corporate dividend tax General Reserve Surplus/Deficit Carried to Balance sheet TOTAL EPS-Basic(on Rs2.50 per share) EPS-Diluted(on Rs2.50 per share)

64

BALANCE SHEET AS AT 31ST MARCH, 2012

(Rs)

31-3Particulars Sources of funds Share holders funds share capital Reserves & Surplus Total Application of Funds Fixed Assets Gross block Less: Depreciation Net Block Deferred tax asset Investments Current assets, loans and advances Sundry debtors Cash and Bank balances Loans and Advances (A) Current liabilities and provisions Current liabilities Provisions (B) Net current assets(A-B) Total 1268306 8 6617820 6065248 1047934 920000 1709269 9 5046748 5 8775282 5 1553130 09 7653484 1 1208798 0 7782282 1 66690188 74723370 3477182 2 2170088 1 1155666 05 1720393 08 1035446 25 2111234 9 1346569 74 2012

31-32011

22112750 52610620 74723370

2211275 0 4323819 1 6535094 1

9011776 3305825 5645951 3192483 9130173

4738233 4 6535094 1

65

PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2012

(Rs)

66

PARTICULARS INCOME Brokerage& commission Other Income

31-32012 2271041 36 4205084 8 2691549 84 9333336 6 7994818 7 3251995 1765335 48 9262143 6 3378604 5 5883539 1 2614191 2 8497730 3 3316912 5 9950738 6343098 5883539 2963080 3 8497730 3 6.65

31-32011 1895311 46 2390004 83 2390004 83 1127829 38 4898002 5 2171506 1639344 69 7506601 4 2561019 1 4945582 3 2575628 2 7521210 5 2211275 0 1658456 3 5427298 4945582 2614191 2 7521210 5 5.59

EXPENDITURE Personal costs Operating Expenses Depreciation

Profit Before Tax Provision for taxation Profit After Tax Profit brought down from previous year Amount available for apparitions Apparitions Interim Dividend Final Dividend Corporate dividend tax General Reserve Amount Carried to Balance sheet TOTAL EPS-Basic and Diluted

67

68