PROJECT REPORT ON “ANALYSIS OF PROFITIBILITY AND FINANCIAL POSITION OF AVIVA LIFE INSURANCE”

UNDER GUIDANCE

SUBMITTED BY

PREFACE
A comprehensive study of “WORKING CAPITAL” is a supplement to the theoretical classroom knowledge. It helps to understand the subject more precisely and practical implications of various concepts. This report tries to outline idea of professional world and helps in understanding the pragmatic aspect of management function. Own observations are significant towards the contribution in learning the subject. The report is therefore designed as a reference of organization functioning rather than copy down instrument.

THE PURPOSE OF PROJECT IS TO MAKE ME FAMILIAR WITH DAY TO DAY FUNCTIONING OF BUSINESS. THE PRESENT REPORT IS AN EFFORT IN THIS DIRECTION. My humble endeavor and motive in presenting the project report is to impart a balanced introduction and knowledge of Financial Analysis, which is an important integral part of financial management.

It is hoped that this project will serve as supportive document to research worker as efforts has been tired to make this report an informative, stimulating, and self-explanatory.

2. ACKNOWLEDGMENT

Nothing concrete can be achieved without an optimal combination inspiration and perspiration. No work can be accompanied without taken the guidance of experts. It is only critics from ingenious that help transform a product into a quality product. For this, I am grateful to ___________for his constant encouragement and invaluable critical suggestions given during the review meetings. His timely advice and help proved his commitment and welfare of his students and the institute as a whole. Last but not the least, our sincere thanks to all the members who were a vital thrust to our thoughts and needs throughout the functions assigned to group to get done and prove our best. Finally thanks to others at KCMT, who put in numerous hours to make the intangible tangible

CONTENT Certificate Preface Acknowledgement Objective Introduction Company Profile Literature & Review Research Methodology Financial Statements Data Representation Conclusion Finding Limitation Bibliography 1 2 3 6 7 12 37 39 49 56 57 58 59 .3.

OBJECTIVE The main objective of this project is to understand the financial position of AVIVA LIFE INSURENCE and to know the impact of profitability on its market value. . With the help of this project I can understand that how I can analyses the financial statement of any company and what are the ratios any key indicators by which anyone can understand the financial status of company. These are the primary and secondary objective if my project.

twice the value" we are aiming to double earnings per share by 2012. . To demonstrate our commitment to "One Aviva. transparency and value for money.Aviva Life Insurance India It is a private insurance company formed from collaboration between the Aviva insurance group of UK and the Dabur group. including investment volatility and nonoperating items over the weighted average number of shares. This ambition is based on total IFRS return. one of India's oldest and top producers of traditional health care products. Aviva's products are meant to provide customers flexibility.

At present in Aviva Life Insurance India. In 1995 Aviva was the first foreign insurance company to start its representative office in India. the Aviva group is a 26% share holder and the Dabur group holds 74% shares in the joint venture.COMPANY PROFILE Aviva insurance group in UK with a history dating back to 1696. The products of Aviva insurance group of India are: LifeLong LifeSaver or EasyLife Plus Young Achiever LifeBond and LifeBond Plus . The history of Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest foreign insurance group in terms of the compensation paid by the Indian Government. today stands as one of the leading provider of life and pension products to Europe and other parts of the world.

The fund comprises of debt securities in the range of 50-90%.PensionPlus LifeShield Freedom LifePlan LifeBond5 The fund management operations of Aviva Life Insurance India are controlled from Mumbai and the fund options includes Unitized With-Profits Fund and four Unit Linked funds: Protector Fund . equities in the range of 0-20% and money market and cash in the range of 0-20%.The fund comprises of debt securities in the range of 50-100%. equities in the range of 0-85% and money market and cash in the range of 0-20%.The fund comprises of debt securities in the range of 60-100%. Secure Fund . 8 Growth Fund . equities in the range of 0-20% and money market and cash in the range of 0-20%. Balanced Fund . .The fund will comprise of debt securities in the range of 0-50%. equities in the range of 0-45% and money market and cash in the range of 0-10%.

Aviva is the world’s fifth-largest insurance group and the largest insurance services provider in the UK. Aviva Life Insurance India have been able to reach out to those underprivileged who had no access to insurances till day. by combining protection and long term savings the customers can safeguard and provide life products for their family with their changing needs. By working together across our businesses. We are one of the leading providers of life and pension products in Europe and are actively growing our long-term savings businesses in Asia Pacific and the USA. In Aviva Life Insurance India. twice the value”. . we will optimize our performance in the global marketplace and maximize the value we can generate for all our stakeholders. thus. Through their association with Basix (a micro financial institution) and other NGOs. fund management and general insurance. Vision: “One Aviva.These funds provide investment security to the capital of the customers. Its main activities are long-term savings.

It was a typical story of a colonial era: a few British insurance companies dominating the market serving mostly large urban centres. Insurance was nationalized. First. After the independence. the life insurance companies were nationalized in . it took a dramatic turn.INTRODUCTION AN INTRODUCTION TO INSURANCE SECTOR IN INDIA Insurance in India started without any regulation in the Nineteenth Century.

. We study the collective experience of the other countries in Asia already deregulated their markets and have allowed foreign companies to participate. we describe how and why of regulation and deregulation. Only in 1999 private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding. The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game.1956. and then the general insurance business was nationalized in 1972. Insurance under the British Raj Life insurance in the modern form was first set up in India through a British company called the Oriental Life Insurance Company in 1818 followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829. the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon. In what follows. If the experience of the other countries is any guide.

By 1956. they were treated as "substandard" and therefore had to pay an extra premium of 20% or more. was established in 1850. However. They were there insuring the lives of Europeans living in India. the industry was plagued by fraud. It was owned and operated by the British. 10 a comprehensive set of regulations was put in place to stem this problem (see Table 1). Triton Insurance Company Ltd. But.All of these companies operated in India but did not insure the lives of Indians. The first company that had policies that could be bought by Indians with "fair value" was the Bombay Mutual Life Assurance Society starting in 1871. there were 154 Indian insurance companies. Hence. The first general insurance company. 16 non-Indian insurance . By 1938.. the insurance market in India was buzzing with 176 companies (both life and non-life). Some of the companies that started later did provide insurance for Indians. The first indigenous general insurance company was the Indian Mercantile Insurance Company Limited set up in Bombay in 1907.

(1) It was perceived that private companies would not promote insurance in rural areas. (3) Bankruptcies of life insurance companies had become a big problem (at the time of takeover. . (2) The Government would be in a better position to channel resources for saving and investment by taking over the business of life insurance. The experience of the next four decades would temper these views. In 1956.companies and 75 provident societies that were issuing life insurance policies. Monopoly Raj The nationalization of life insurance was justified mainly on three counts. 25 insurance companies were already bankrupt and another 25 were on the verge of bankruptcy). Deshmukh announced nationalization of the life insurance business. D. Calcutta. Most of these policies were cantered in the cities (especially around big cities like Bombay. the then finance minister S. Delhi and Madras).

AN OVERVIEW OF INSURANCE INDUSTRY Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization and c) Post .

Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance Corporation of India was set up as the controlling body with New India.Present: The insurance sector was opened up for private participation four years ago. LITRATURE REVIEW Insurance Market. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Life Insurance was the first to nationalize in 1956. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. National and Oriental as its subsidiaries. United India. For years .Nationalization. General Insurance followed suit and was nationalized in 1973.

There are opportunities in the pensions sector where regulations are being framed. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non-life segment. nine private non-life insurers and six public sector companies. There is pressure from both within the country and outside on the Government to increase the Foreign Direct Investment (FDI) limit from the current 26% to 49%. The IRDA has issued the .now. the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in scenario. With many more joint ventures in the offing. Less than 10 % of Indians above the age of 60 receive pensions. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe. There are now 29 insurance companies operating in the Indian market – 14 private life insurers. which would help JV partners to bring in funds for expansion. the private players are active in the liberalized environment.

the public sector companies still call the shots. State Insurers Continue To Dominate There may be room for many more players in a large underinsured market like India with a population of over one billion. and as it matures and new players enter. had a share . The country’s largest life insurer. The deepening of the health database over time will also allow players to develop and price products for larger segments of society.18% of the life insurance market and over 26. Also as the private sector controls over 26.53% of the non-life market. But the reality is that the intense competition in the last five years has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the market. Life Insurance Corporation of India (LIC). The health insurance sector has tremendous growth potential. product innovation and enhancement will increase.first license for a standalone health company in the country as many more players wait to enter.

whereas ICICI Lombard General Insurance Company is the leader among the private non-life players with a 8. With the industry all . the four public-sector non-life insurers – New India Assurance. corporate agents. Reaching Out To Customers No doubt. ICICI Lombard has focused on growing the market for general insurance products and increasing penetration within existing customers through product innovation and distribution.26% market share in terms of fresh premium. The industry now deals with customers who know what they want and when. Oriental Insurance and United India Insurance – had a combined market share of 73.47% as of October 2005. and bancassurance. National Insurance.82% in new business premium income in November 2005. the customer profile in the insurance industry is changing with the introduction of large number of divergent intermediaries such as brokers. and are more demanding in terms of better service and speedier responses.of 74. ICICI Prudential Life Insurance Company continues to lead the private sector with a 7.11% market share. Similarly.

underwriting criteria. The company now operates in Mauritius. The battle has so far been fought in the big urban cities. there will be considerable improvement in customer service levels. Fiji. innovative sales methods and creditworthiness. Intense Competition In a de-tariffed environment. Indian companies are becoming increasingly world class. which has set its sight on becoming a major global player following a Rs280-crore investment from the Indian government. Take the case of LIC. Global Standards While the world is eyeing India for growth and expansion. products. competition will manifest itself in prices.set to move to a detariffed regime by 2007. the UK. Sri . product innovation and newer standards of underwriting. increased competition will drive insurers to rural and semi-urban markets. Insurance companies will vie with each other to capture market share through better pricing and client segmentation. but in the next few years.

with robust reinsurance programs in place.5% of GDP and general insurance premiums being 0. 2. There are not much advisors for the insurance companies . insurers have successfully managed to tide over the crisis without any adverse impact on their balance sheets. However.65% of GDP. Strength-Very good policies of life coverage. The next five years will be challenging but those that can build scale and market share will survive and prosper. the opportunities in the Indian market place is immense. and Nepal and will soon start operations in Saudi Arabia. The year 2005 was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian sub-continent. It also plans to venture into the African and Asia-Pacific regions in 2006. Weaknesses:-unable to convince the people about the products. SWOT ANALYSIS The SWOT analysis of Insurance sector is as follows:1. With life insurance premiums being just 2.Lanka.

UK Sundaram Finance Winterthur Insurance. US Kotak Mahindra Chubb. UK SK Modi Group Legal & General. UK Ranbaxy Cigna. Australia Cholamandalam Guardian Royal Exchange. UK DCM Shriram Royal Sun Alliance. Switzerland Hindustan Times Commercial Union. INDIAN COMPANIES WITH FOREIGN PARTNERSHIP Indian Partner International Partner Alpic Finance Allianz Holding. US HDFC Standard Life. UK Dabur Group Allstate. Switzerland ICICI Prudential. US CK Birla Group Zurich Insurance. UK Bombay Dyeing General Accident. Australia 20th Century Finance Canada Life M A Chidambaram Met Life . Group. Threats:-growing competition from larger MNC's. UK Sanmar Group Gio. Germany Tata American Int. US Godrej J Rothschild.3. Oppourtunities:-Untapped rural sector and small towns 4.

Lacs compared to 1423.05 Lacs from the corresponding year ended 31st March. Chartered Accountants of Surat. FIXED DEPOSIT: The company has not accepted any fixed deposits during the year. As required under the provisions of Section 224(lB). conclusion of the next Annual General Meetin at a remuneration payable as may be decided.28.1373.the Company has received certificate that the. Showing decrease by Rs. if made shall be within the limits as set down in said section. 2007 due to fall in marketing conditions. P. . Saboo & Co. J.33 Lacs.50.Vysya Bank ING Directors Report REVIEW OF OPERATIONS: The turnover of the company during the year is Rs. AUDITORS: Auditors of the company M/s. appointment. will retire at the conclusion of the ensuing 24th Annual Genera Meeting from the office of the Auditors and being eligible offer themselves for re-appointment from the end of the ensuing Annual General Meeting till the.

FOREIGN EARNING & OUTGO: . offers himself for-their re-appointment. TECHNOLOGY ABSORPTION.15. PARTICULARS OF EMPLOYEE : None of the employee is in receipt of remuneration as prescribed under Companies (Particulars of Employees) Rule. Shri Jatin Gupta & Sbri Pawan Gupta retire by rotation and being eligible. 1975 and hence information as required under section 217{2AA) read with Companies (Particulars of Employees) Rule. 1975 not provided herewith.DIRECTORS. The Board recommends their reappointment Shri Mohan Gupta. CONSERVATION OF ENRGY.cf. In accordance with Article 116 of the Articles of Association of the company.12-2007 and 05-012008 respectively. Shri Shyamsunder Gupta and Shri Sunilkumar Gupta had resigned as Directors of the Company w. 15-12-2007.

the applicable accounting standards have been followed.The particulars prescribed by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. 1956 your Directors state: 1. There is no Foreign Exchange earning and Outgo. 1988 as to conservation of energy. technology absorption is Not Applicable since project is yet to start. That in the preparation of the annual accounts. That the accounting policies selected and applied are consistent and the judgments and estimates made 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 ended 31st March. 2. 2008 . DIRECTORS RESPONSIBILITY STATEMENT: As required under section 217(2AA) of the Companies Act. INSURANCE: The company has made necessary arrangements for adequately insuring interests in various properties.

1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. Report on Corporate Governance as stipulated under clause 49 of the listing agreement with stock exchange is annexed which forms part of the annual . That the annual accounts have been prepared on a going concern basis.and of the profit or loss of the company for that period. 3. 4. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. CORPORATE GOVERNANCE REPORT: Your company is committed to maintain the highest standards of corporate governance. Your Directors adhere to the requirements set out by the Securities and Exchange Board of India in respect of Corporate Governance Practices and have implemented all 19 stipulations prescribed.

The Directors place on record the appreciation and gratitude for the co-operations and . 1956 and a copy of the same is attached with this report. NSDL & CDSL. Certificate from Statutory Auditors.report. LISTING: The shares of your company are listed on Bombay Stock Exchange. DEPOSITORY SYSTEM: Your company has established electronic connectivity with the both the depositories. confirming compliance of conditions of corporate governance as stipulated under aforesaid clause 49 is annexed to this report. ACKOWLEDGEMENT. In view of numerous advantages offered by the depository system. members of the company are requested to avail the facility of dematerialization of the companys shares on NSDL SCDSL. COMPLIANCE CERTIFICATE : The Company has availed Secretarial Compliance Certificate for the under review form the Practicing Company Secretary pursuant to the proviso of section 383 A of the Companies Act. The listing fees for the year 2008-09 have been paid to The Bombay Stock Exchange Limited.

operation and support at all times. We make it easy. Government etc. The company will make all effort to meet the aspiration of its shareholders and wish to sincerely thank them for their whole hearted co. Find your favourite sections instantly with one swift search Stock recommendationsSmart stock picks to build a wealthy portfolio Chat with expertsReal time. personalised stock advice from experts Fund manager picksWhich stocks are favourites with fund managers? IPO CalendarCheck out all upcoming IPOs so you can keep your funds ready Commodity picksWhat positions should you take? Brokers recommend Investment reviewAre your investments beating the market? Find out now Community buzzGet first hand price sensitive rumours on stocks Beginner's guide to investing in sharesScared of investing in shares? Don't be. the directors .assistance extended by the Banks. Tax calculatorSee how the budget impacted your pocket. Going Concern As a consequence of the Company’s considerable financial resources.

Financial Position and Performance . After making enquiries. The Company participates in the Aviva Group’s centralized treasury arrangements and so shares banking arrangements with fellow subsidiaries. having assessed the responses of the directors of a fellow group company. the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Aviva International Insurance Limited. they continue to adopt the going concern basis in preparing the financial statements. The directors.believe that the Company is well placed to manage its business risks successfully despite the current uncertain economic outlook. which maintains the centralized arrangement. For this reason. have no reason to believe that a material uncertainty exists that may cast doubt about the ability to continue with the current banking arrangements. The Company is expected to continue to generate positive cash flows on its own account for the foreseeable future.

amounted to £361million (2008: £567 million.The financial position of the Company at 31 December 2009 is shown in the statement of financial position shown below Financial instruments The business of the Company includes use of financial instruments. Details of the Company's risk management objectives and policies and exposures to risk relating to financial instruments are set out in note 8 to the financial statements. The total cost of dividends paid during the year. including the 2007 final dividend). including preference dividends. Dividends Interim ordinary dividends of £340 million were declared and paid during 2009 (2008: £475 million). Directors’ interests None of the directors who held office at 31 December 2009 held any interest in the . The directors do not recommend a final ordinary dividend for the year (2008: £nil).

This indemnity was granted in 2004 and the provisions in the Company's Articles of Association constitute "qualifying third party indemnities" for the purposes of sections 309A to 309C of the Companies Act 1985. has granted an indemnity to the directors against liability in respect of proceedings brought by third parties. Creditor payment policy and practice The Company has no trade creditors. These qualifying third party indemnity provisions remain in force as at the . the Company’s parent. This authority remains in place until 24 April 2011 but was not used in the year.Company’s shares. Directors’ Liabilities Aviva plc. subject to the conditions set out in the Companies Act 1985. Authority to purchase own shares At the Annual General Meeting held on 25 April 2006. shareholders renewed the Company’s authority to make market purchases of up to 140 million 8 7/8 % preference shares and up to 110 million 7 7/8 % preference shares.

A resolution will also be proposed authorizing the directors to determine the auditor’s remuneration. . Auditor A resolution is to be proposed at the Annual General Meeting for the reappointment of Ernst & Young LLP as auditor of the Company. being information needed by the auditor in connection with preparing his report. there is no relevant audit information. confirms that so far as the director is aware. Disclosure of Information to the Auditor Each person who was a director of the Company on the date that this report 22 was approved.date of approving the Directors’ report by virtue of the transitional provisions to the Companies Act 2006. of which the auditor is unaware. Each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the auditor is aware of that information.

a company listed on the London Stock Exchange. apart from a period during the year when the majority of the members of the Nomination Committee was not independent nonexecutive directors. It is the Board’s view that Aviva plc has been fully compliant throughout the accounting period with the provisions set down in Section 1 of the Combined Code. The Combined Code on Corporate Governance sets out standards of good practice in the form of principles and provisions on how companies should be directed and controlled to follow good governance practice.The Combined Code on Corporate Governance The Company is a wholly-owned subsidiary of Aviva plc. Where the provisions have not been complied with companies must provide an explanation for this. This was due . The Financial Services Authority requires companies listed in the UK to disclose. in relation to Section 1 of the Combined Code. how they have applied its principles and whether they have complied wit its provisions throughout the accounting year.

and the Company seeks to maintain sufficient funds to meet dividends payable on the preference shares as they fall due. There are no other significant risks associated with the Company’s assets and liabilities. Statement of Directors’ Responsibilities The directors are required to prepare financial statements for each accounting period that comply with the relevant provisions of the Companies Act 1985. The Company has listed preference shares and the payment of dividends to the preference shareholders is reviewed by the Aviva plc Audit Committee and approved by the directors of the Company.to the resignation of Nikesh Arora. who resigned following his relocation to the United States. the Companies Act 2006 and International Financial Reporting Standards (IFRS) as . a non-executive director. The Aviva plc Directors’ Report sets out details of how the Aviva group has applied the principles and complied with the provisions of the Combined Code during 2009.

adopted by the European Union (“EU”), and which present fairly the financial position, financial performance and cash flows of the Company at the end of the accounting period. A fair presentation of the financial statements in accordance with IFRS requires the directors to: select suitable accounting policies and verify they are applied consistently in preparing the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business; Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company’s financial position and financial performance; and

state that the Company has complied with applicable IFRS, subject to any material departures disclosed and explained in the financial statements. The directors are responsible for maintaining proper accounting records which are intended to disclose with reasonable accuracy, at any time, the financial position of the Company. They are also ultimately responsible for the systems of internal control maintained for safeguarding the assets of the Company and for the prevention and detection of fraud and other irregularities. Directors’ responsibility statement pursuant to the Disclosure and Transparency Rule 4 The directors confirm that, to the best of each person’s knowledge: a) the Company financial statements in this report, which have been prepared in accordance with IFRS as adopted by the EU, International Financial Reporting Interpretations Committee’s interpretations and those parts of the Companies Act 2006 applicable to companies reporting under

IFRS, give a true and fair view of the assets, liabilities, financial position and results of the Company; and b) the directors’ report contained in this report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

Independent auditor’s report to the members of General Accident plc We have audited the financial statements of General Accident plc for the year ended 31 December 2009 which comprise the Accounting Policies, the Income Statement, the Statement of Comprehensive Income, and the Statement of Changes in Equity, the Statement of Financial Position, the Statement of Cash Flows, and the related notes 1 to 10. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards

To the fullest extent permitted by law. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. or for the opinions we have formed. This report is made solely to the company’s members. we do not accept or assume responsibility to anyone other than the company and the company’s members as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006.(IFRSs) as adopted by the European Union. for this report. Those standards require us to comply with the . the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Respective responsibilities of directors and auditors As explained more fully in the Directors’ Responsibilities Statement (set out on page 6). Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). as a body. for our audit work.

. whether caused by fraud or error. Opinion on financial statements In our opinion the financial statements: Give a true and fair view of the state of the company’s affairs as at 31 December 2009 and of its profit for the year then ended. and the overall presentation of the financial statements. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed. the reasonableness of significant accounting estimates made by the directors.Auditing Practices Board’s Ethical Standards for Auditors.

have been properly prepared in accordance with IFRSs as adopted by the European Union. the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Opinion on other matters prescribed by the Companies Act 2006 In our opinion. Our responsibility is to express an . the profit and loss account and also the (cash flow statement) for the year ended on that date annexed thereto. Auditor's Report 1. and have been prepared in accordance with the requirements of the Companies Act 2006. MUMBAI as at 31st March 2008. We have audited the attached balance sheet of AVIVA INDUSTRIES LIMITED. These financial statements are the responsibility of the companys management.

Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Companies (Auditors Report) Order. as well as evaluating the overall financial statement presentation: We believe that our audit provides a reasonable basis for our opinion.section (4A) of section 227 of the Companies Act. An audit includes examining. We conducted our audit in accordance with.the auditing standards generally accepted in India. An audit also includes assessing the accounting principal used and significant estimates made by management. and 5 of the said Order. 1956. . 3. 2.opinion on these financial statements based on our audit. 2003 issued by the Central Government of India in term of sub . on a test basis. we enclose in the Annexure a statement on the matters specified in paragraphs 4 . evidence supporting the amounts and disclosure in the financial statement.

(iv) In pur opinion. (ii) In our opinion. (iii) The balance sheet. profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub ^section (3C) of section 211 of the Companies Act. (i) We have obtained all the information and explanations. proper books of account. which to the best of our knowledge and belief were necessary for the purposes of our audit. as required by law have been kept by the company so far as appears from our examination of those books. 1956. we report that.4. as on 31st March . (v) On the basis of written representation received from the directors. profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account. the balance sheet. Further to our comments in the Annexure referred to above.

of the Loss for the year ended on that date and (c) in the case of the cash flow statement. we report that none of the directors Is disqualified as on 31st March 2008. 1956 (vi) In our opinion and to the best of our information and according to the explanations given to us. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. from being appointed as a .section (1) of section 274 of the Companies Act. of the cash flows for the year ended on that date. . the said accounts give the information required by the Companies Act. 1956. of the state of affairs of the company as at 31st March 2008 . director in teiius of clause (g) of sub . (a) in the case of the balance sheet.2008 and taken on record by the Board of Directors. (b) in the case 67 the profit and loss account.

According to the information and explanations given to us.Annexure referred to in paragraph 3 of our report of even date. (i) (a) The company has maintained proper records showing full particulars. (ii) (a) The inventory has been physically verified during the year by the management. we are of the opinion that the sale of the said part of fixed assets has not affected the going concern status of the company. . in our opinion. including quantitative details and situation of fixed assets. In our opinion the frequency of verification is reasonable. (b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which. No material discrepancies were noticed to such verification (c) Some part of old fixed assets has been disposed off during the period. is reasonable having regard to the size of the company and the nature of its assets.

(iv) In our opinion and according to the information and explanations given to us. firms or other parties listed in the register maintained under section 301 of the Companies Act.(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. (c) The company Is maintaining proper records of inventory. we have notobserved any continuing failure to correct major weaknesses in internal controls. During the course of our audit. there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory. . fixed assets and with regard to the sale of goods. 1956. (iii) (a) The company has not granted/taken loans to/from companies. The discrepancies noticed on verification between the physical stocks and the books records were not material.

market prices at the relevant time. the transactions made in pursuance of the contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1975. 1956 and exceeding the value of rupees five lacs In respect of any party during the year have been. .(v) (a) According to the information and explanations given to us.1956 and the Companies (acceptance of Deposits) Rules. vii) In our opinion. (b) In our opinion and according to the informations and explanations given to us. the company has complied with the provisions of sections 58A arid 58AA of the Companies Act. the company has an internal control system commensurate with the size and nature of its business. 1956 have been So entered.made at. (vi) In our opinion and according to the information and explanations given to us.prices which are reasonable having regard to prevailing. we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act.

2008 for a period of more than six months from the date they became payable. no undisputed amounts payable in respect income tax. wealth tax. wealth tax. cess and other material statutory dues applicable to it. (b) According to the information and explanations given to us. . which have not been deposited on account of any dispute. customs duty. (ix) (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including income tax. (c) According to the information and explanation given to us. as at 31st March. 1956 is not applicable. custom duty. excise duty and cess. custom duty. there are no dues of sale tax. hence sec 209 (1) (d) of the Companies Act.(viii) Since this is being Trading unit. sales tax. excise duty and cess were in arrears. other than income tax for the immediate previous year. sales tax.

debentures and other investments except as an investment. Therefore. (xiil) The company is not a chit fund or a nidhi mutual benefit fund/society. (xiv) The company is not dealing in or trading in shares.(x) The company has incurred cash losses during the financial year covered by our audit and immediately preceding financial year and also company has no accumulated losses. bank or debenture holders. 2003 are not applicable to the company. the company has not defaulted in repayment of dues to a financial institution. the provisions of clause 4 (xiil) of the Companies (Authors Report) Order. (xii) The company has not granted loans and advances on the basis of security by way of a pledge of share. Accordingly. (xi) In our opinion and according to the information and explanations given to us. securities. debentures and other securities. the provisions of clause 4 (xiv) .

we report that the no funds raised on short .term investment.?. (xvi) In our opinion. the term loans have been applied for the purpose for which they were raised. No long .term assets except permanent working capital. the company has not given guarantees for loans taken by others from banks or financial institutions. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company. . (xv) in our opinion and informed by the management.term basis have been used for long .term funds have been used to finance short . (xviii) According to the information and explanations given to us. 2003 are not appllcable to the company.of the Companies (Auditors Report) Order. the company has not made any allotment of preferential shares during the financial year.

We make it easy. Find your favourite sections instantly with one swift search Stock recommendations Smart stock picks to build a wealthy portfolio Chat with experts Real time. (xx) The company has not issued and raised money by public issues during the year.(xix) The company has no issued and / or outstanding debentures at the end of the year. . (xxi) According to the information and explanations given to us. personalised stock advice from experts Fund manager picks Which stocks are favourites with fund managers? IPO Calendar Check out all upcoming IPOs so you can keep your funds ready Commodity Picks What positions should you take? Brokers recommend Investment review Are your investments beating the market? Find out now Community buzz Get first hand price sensitive rumours on stocks Beginner's guide to investing in sharesScared of investing in shares? Don't be. no fraud on or by the Company has been noticed or reported during the course of our audit.

GENERAL i) The Financial Statements have generally been prepared on the historical cost convention. 3. FIXED ASSETS . The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company’s financial statements.Accounting policies General Accident plc (“the Company”) is a public limited company incorporated and domiciled in the United Kingdom (“UK”). BASIS OF ACCOUNTING The company follows the mercantile system of accounting generally except otherwise stated herein below. 1. ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted 2.

7. REVENUE AND EXPENDITURE RECOGNITION Revenue Is recognised and expendeiture is accounted for on their accrual except claims in respect of goods purchased and sold & Insurance. no depreciation has been charged on fixed assets during the year and profit of the company has been affected adversely to that extent.Fixed Assets are stated at cost less accumulated depreciation.1956 on SLM Method on days prorata on basis of date put to use of the assests. However. 5. 4. INVENTORIES The inventory has been valued at lower of cost or net relisable price. DEPRECIATION a) Depreciation on fixed assets has been provided at the rates and in accordance with the provisions of Schedule XIV of the Companies Act. INVESTMENT . which are accounted for on cash basis. however there is no closing stock at the 6.

(A)Basis of presentation The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and applicable at 31 December 2009. (B)Use of estimates The preparation of financial statements requires the Company to make estimates and assumptions that affect items reported in the statement of financial position and income statement and the disclosure of contingent assets and liabilities at the date of the financial statements. some extent. circumstances and to. Although these estimates are based on management’s best knowledge of current facts.Investment are valued at Cost. No provision has been made for depreciation of the market value of the Investment. future . The date of transition to IFRS was 1 January 2004. and endorsed by the European Union.

If the carrying value of the loan is greater than the recoverable amount. or from other Aviva Group companies are recognized when cash is advanced to. possibly significantly.events and actions. The Company reviews the carrying value of loans on a regular basis. These loans are subsequently carried at amortized cost. the carrying value is reduced through a charge to the income statement in the period of impairment. or received from these companies. taking into account the effective yield on the investment. actual results ultimately may differ from those estimates. (C)Investment income Investment income consists of interest receivable for the year. Interest receivable is recognized as it accrues. (D)Financial instruments Loans to. . (E) Cash and cash equivalents Cash and cash equivalents consist of cash at banks and in hand.

(F) Income taxes The current tax expense is based on the taxable result for the year. after any adjustments in respect of prior years. or credit taken for deferred tax assets. Provision is made for deferred tax liabilities. (G) Share capital Equity instruments An equity instrument is a contract that evidences a residual interest in the . using the liability method. Tax. on all material temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. is allocated over profits before taxation and amounts charged or credited to reserves as appropriate. including tax relief for losses if applicable. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

The instrument is a non-derivative that contains no contractual obligation to deliver a variable number of shares. and II. or is a derivative that will be settled only by the Company exchanging a fixed amount of cash or other assets for a fixed number of the Company’s own equity instruments. Dividends on preference shares are recognized in the period in which they are declared and appropriately approved. a financial instrument is treated as equity if: I.assets of an entity after deducting all its liabilities. There is no contractual obligation to deliver cash or other financial assets or to exchange financial assets or liabilities on terms that may be unfavorable. approved by shareholders. Dividends Dividends on ordinary shares are recognized in equity in the period in which they are paid and. . for the final dividend. Accordingly.

whims and preferences. competitors and the market. launch a new product or service. fine tune existing products and services. Marketing research (also called consumer research) is a form of business research.Research Methodology Market research is the process of systematic gathering. It is a form of applied sociology which concentrates on understanding the behaviors. Market research can help create a business plan. recording and analyzing of data about customers. expand . of consumers in a market-based economy.

into new markets etc.e. With market research companies can learn more about current and potential customers. Primary Data and . it shows the company worthiness and position in front of people. location and income level. i. gender. Market Research Process Defining the Research Problem Selecting and Establishing Research Design Select the Research Design Identify Information types and Sources Determining and Design Research Instrument Collecting and Analyzing Data Formulate Findings Method Adopting of Data Collection There are two types of data collection technique. It can be used to determine which portion of the population will purchase the product/service. It can be found out what market characteristics your target market has. based on variables like age. The purpose of market research is to help companies make better business decisions about the development and marketing of new products and in the case of financial market research.

FINANCIAL STATEMENT Profit & loss Account. In my research project there is no need to collect primary data. We have taken help of books to calculate the ratios and analyzing the financial statements like Profit & Loss account and Balance sheet etc. Books.From the internet we have take the histories of companies for the introduction part.Books are also helpful us for the data research. We search some data from the website of company and search engine like Google. Internet. I want only secondary data that I have been collected by different sources.Secondary Data. Balance Sheet and Key Ratio of Aviva life insurance Profit & Loss account of .

01 Other Manufacturing Expenses 0.91 0.23 0.47 Excise Duty 0.23 0.00 0.00 Employee Cost 0.00 0.00 0.00 0.20 0.00 Total Expenses 0.00 0.01 10.00 0.06 0.Aviva life insurance ------------------.00 0.00 0.05 0.11 0.05 14.00 0.06 10.00 0.00 0.15 0.36 0.00 0.47 Other Income 0.in Rs.30 0.00 0.01 14.00 0.05 0.77 0.52 Mar '0 Mar '06 Mar '07 Mar '08 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths .01 0.00 0.00 0.00 0.45 Power & Fuel Cost 0.00 Miscellaneous Expenses 0.06 Preoperative Exp Capitalized 0.00 Total Income 0.00 10. ------------------Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 0.50 Expenditure Raw Materials 0. Cr.01 0.00 0.09 0.59 0.00 0.00 40 Selling and Admin Expenses 0.00 0.24 0.00 7.01 0.00 1.00 14.00 14.00 0.11 0.03 Stock Adjustments 0.00 0.00 0.00 10.00 13.00 Net Sales 0.13 0.15 0.11 0.

00 Corporate Dividend Tax 0.00 0.04 0.00 0.16 12.00 Book Value (Rs) 11.50 -0.99 14.99 14.13 0.00 0.18 0.00 0.02 Tax 0.99 14.04 0.00 0.02 Interest 0.05 0.00 0.00 0.01 Reported Net Profit 0.13 -0.03 0.00 -0.02 0.06 0.05 0.02 Depreciation 0.03 0.13 -0.00 0.00 0.00 0.36 0.00 0.00 0.05 PBDIT 0.07 Preference Dividend 0.00 0.99 Earning Per Share (Rs) 0.06 0.04 0.00 Equity Dividend 0.01 0.00 Profit Before Tax 0.00 0.12 41 Equity Dividend (%) 0.00 0.07 -0.04 0.00 0.12 -0.Operating Profit -0.00 0.05 0.34 30.19 0.00 Other Written Off 0.00 0.01 0.02 Total Value Addition 0.02 Extra-ordinary items 0.00 0.00 0.87 42 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds .01 0.99 30.00 0.00 Per share data (annualized) Shares in issue (lakhs) 15.00 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PBDT 0.04 0.73 12.13 -0.01 0.00 PBT (Post Extra-ord Items) 0.00 0.07 0.01 0.01 0.01 0.00 0.00 14.27 0.02 -0.07 0.42 0.01 2.

00 0.00 0.09 1.02 0.24 Inventories 0.76 Total Liabilities 1.07 Net Block 0.13 0.76 1.17 1.80 0.62 Capital Work in Progress 0.01 0.10 0.32 0.50 Share Application Money 0.10 0.00 0.01 0.50 1.39 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds 43 Balance Sheet of Aviva life insurance ------------------.67 5.69 0. ------------------Gross Block 0.31 0.50 1.26 0.94 5.00 0.00 Sundry Debtors 0.38 Cash and Bank Balance 0.50 1.85 4.65 4.00 1.24 1.00 0.01 Unsecured Loans 0.03 0.82 1.00 0.09 1.00 0.02 0.00 0.04 0.00 Investments 0.09 0.00 0.15 3.00 0.03 1.08 0.50 1.00 0.00 0.77 1.00 0.50 Equity Share Capital 1.00 0.13 0.in Rs.02 0. Depreciation 0.00 0.00 0.00 0.39 0.00 Net worth 1.00 Reserves 0.82 1.00 0.69 0.03 0.35 3. Cr.03 0.50 1.46 .50 1.75 Total Debt 0.00 0.50 1.69 1.08 0.13 0.00 0.07 1.00 0.63 Secured Loans 0.Total Share Capital 1.13 Revaluation Reserves 0.00 0.03 0.00 0.00 0.72 0.08 Total Current Assets 0.11 0.00 Preference Share Capital 0.69 Less: Accum.00 0.00 0.50 1.00 0.

-.03 2. ------------------Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 Investment Valuation Ratios Face Value 10.05 0.65 5.04 0.31 1.04 Total CL & Provisions 0.00 Total CA.00 0.16 12.40 Contingent Liabilities 0.-Operating Profit Per Share (Rs) -0.25 2.00 0.-.22 2.00 0.00 Current Liabilities 0.00 0.00 0.00 10.25 4.19 Miscellaneous Expenses 0. Cr.73 12.03 2.87 44 Key Financial Ratios of Aviva.63 5.00 10. Loans & Advances 1.00 0.-.-.00 1.11 1.in Rs.05 2.01 1.22 3.83 1.21 2.00 0.-.76 1.34 30.69 Fixed Deposits 0.-.46 3.15 1.84 -0.-.-8.00 10.00 0. ------------------.92 Provisions 0.00 0.91 3.04 0.99 30.16 Free Reserves Per Share (Rs) -.77 -9.00 0.01 1.35 Total Assets 1.04 0.27 Net Operating Profit Per Share (Rs) -.-.00 0.00 0.38 2.Loans and Advances 1.00 10.70 -94.07 0.77 1.93 5.02 1.67.00 0.00 Bonus in Equity Capital -.00 Book Value (Rs) 11.04 1.00 0.12 -0.00 0.96 Net Current Assets 1.15 Deffered Credit 0.00 0.00 0.-- .00 Dividend Per Share -.

-.21 Liquidity And Solvency Ratios Current Ratio 105.25 3.Profitability Ratios Operating Profit Margin (%) -.56 Return on Assets Excluding Revaluations 2.-.20 2.94 -0.0.-Cash Profit Margin (%) -.-.-.52 -3.0.-.04 37.06 1.-- .05 0.-Adjusted Cash Margin (%) 83.05 0.-.-.-.-.-Profit Before Interest And Tax Margin (%) -.00 2.-.73 Debt Equity Ratio 0.42 0.30 0.-.16 Debt Coverage Ratios Interest Cover -.39 1.17 1.42 1.06 1.-.05 37.37 0.-.22 0.-.47 2.89 2.-.33 0.25 2.-.16 Long Term Debt Equity Ratio 0.17 1.-.-.73 45 Quick Ratio 105.-.55 3.42 2.37 0.27 3.70 92.28 -0.22 Return on Long Term Funds (%) 2.27 3.67 Net Profit Margin (%) 66.01 -.-.67 Adjusted Net Profit Margin (%) -.94 -0.-Return On Net Worth (%) 2.-.-Return On Capital Employed (%) -.66 0.22 Return on Assets Including Revaluations 2.22 0.01 -.61 52.00 2.18 2.-Gross Profit Margin (%) -.-Adjusted Return on Net Worth (%) 2.46 -.28 -0.25 2.

-Expenses as Composition of Total Sales -.-.-.-.-.81 -.Total Debt to Owners Fund 0.-.00 -- .-Total Assets Turnover Ratio -.-.-.-.-.32.-.-Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit -.-.00 100.01 -.00 100.37 Imported Composition of Raw Material Consumed --.-.-Asset Turnover Ratio -.-.-.-.-.16 Financial Charges Coverage Ratio -.-Financial Charges Coverage Ratio Post Tax -.22 0.04 Profit & Loss Account Ratios Material Cost Composition -.05 -.-.-Dividend Payout Ratio Cash Profit -.278.-.-.-.-Management Efficiency Ratios Inventory Turnover Ratio -.74 0.-.-Number of Days In Working Capital -.-.-.-.-.-.-Average Finished Goods Held -.76.97.58 -.60.-.-Debtors Turnover Ratio -.00 100..-.39 Investments Turnover Ratio -.-Fixed Assets Turnover Ratio -.0.0.-.42 1.-.-.-Earning Retention Ratio 100.-Selling Distribution Cost Composition -.654.-.05 0.39.54 -.-.69 Average Raw Material Holding -.-.76 94.-.39 -.75.17.

Cash Earning Retention Ratio 100.84 12.00 -Adjusted Cash Flow Times 0.00 100.Aa3 A Description Very strong Excellent Excellent Outlook Negative Negative Stable Debt ratings S&P Moody'’s AM Best Senior (guaranteed) A A1 aSubordinated A-/BBB+ A3 bbb+ Direct capital instrument BBB+ Baa1 bbb .50 -0.16 12.42 0.73 12.27 0.1.87 47 CREDIT RATING At Aviva we consider it important to keep customers and investors up to date with developments affecting the Group.18 0. Insurer financial strength S&P Moody’s AM Best Rating AA.20 -.95 -46 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 Earnings Per Share 0.00 100.99 30.00 100. In this section we show the Insurer Financial Strength ratings of our core operating subsidiaries and the ratings of our long and short term debt.34 30.12 Book Value 11.

8 pence (2008: 36.06 Net Cash (used in)/from Financing Activities -0.04 -0.in Rs.04 -0.26 Net (decrease)/increase In Cash and Cash Equivalents 0.00 -0.8 pence loss).01 0. Economic and investment .18 Net Cash (used in)/from Investing Activities 0.03 0.09 -0.06 0.05 -0.08 DATA REPRESENTATION Earnings per share – Their IFRS earnings per share for 2009 were 37. Cr.Commercial paper (guaranteed) A-1+ P-1 not rated *Ratings as at 5 August 2009 48 CASH FLOW Cash Flow of Aviva Industries ------------------.08 0.02 Opening Cash & Cash Equivalents 0.06 0.18 0.10 Closing Cash & Cash Equivalents 0. This mainly reflects the improvement in financial markets in 2009.03 0.04 0.01 Net Cash From Operating Activities 0.08 0. ------------------Mar '03 Mar '04 Mar '08 12 mths 12 mths 12 mths Net Profit Before Tax 0.

As condition of insurance market was very bad in 2006 to 2008 mid after that it improved a lot and from that graph we can understand that because of market slowdown it happened. The liquid assets are very few and they are not utilizing properly. As market down in year 2005 so its speedily declined after year 2006 its slowly recovered but in the year 2008 and 2009 it . Quick Ratio Quick ratio shows also decline position it means that the ability to change current assets into money or liquidate power is declining because of market trends.544 million adverse).return assumptions during the year were in line with our long-term expectations with a positive variance of £77 million (2008: £2. Debt Equity Ratio Debt equity ratio is also saying that it improved a lot from the year 2007 mid till 2008 but after that because of return the have faced the slowdown.

As it shows that if working capital is high so liquidity of business is respectively high. Net Profit Margin (in %) In every graph we can see that position was very fluctuating of the company.was stagnant. Current Ratio The difference of current assets and current liabilities shows that ratio. By this graph I can understand the financial position of the company like in the year 2005 the ratio shows the good position but because of market slowdown it’s fluctuating and after 2008 it become stable. In this graph I can say that company is trying to recover the . That shows that company is recovering its financial position. it is because market slowdown.

Return on equity shareholders' funds .losses by reducing the indirect expenses. So here because of expense operating profit reduce per share till the year 2009. it is because after slowdown it become tough to survive in that position and to overcome from this situation they need fund and the company can adjust fund only by reducing expense and taking help by bank or its shareholders. including life profits on a market consistent embedded value (MCEV) basis. . Operating Profit per Share Operating profit per share is decline very speedily.0%) reflects the increase in the post-tax MCEV operating result and the impact of lower opening equity shareholder's funds following falls in asset values in 2008. before adjusting items. Return on equity shareholders' funds is calculated as after-tax operating return. As in the year 2008 and 2009 the position was little bit stable then other year.2% (2008: 11. on opening equity shareholders' funds.% The improvement in 2009 to 16.

After completing the project I know that how ability of management can perform work in difficult situation. Because during the recession they faced very bad condition but as India condition will improve they will also improve. As company is trying to reduce its expenses for earning good profit.Conclusion As the project is to Analysis of Financial Position & Profitability of Aviva Life Insurance and the main objective to understand the financial position or condition of company. .

The ratio like Current Ratio. Net Profit Margin and Debt-Equity Ratio are in decline position. Return on Capital Employed or Shareholder Funds. Quick Ratio. Earning par share. . These ratios show that company is not utilizing its fund properly and the working capital requirement is highly. Operating Profit.Finding  By this project I found that company position is not that much good right now because of slowdown in year 2005-06 and that impacted a lot on company’s ratio. I found that if company will focus on its liabilities so they can overcome from the negative growth. By this project I found that the operating expenses are very high due to recovery period from global slowdown.

But after that recession it changed. The credit rating that the company got in year 2205 was very good.The cash flow statement shows its working. Limitation The data collection was little bit tough because latest data is not available . here credit rating play very important role because almost 60% investors invest their money on the basis of goodwill or credit rating that a company hold in the market.

com www. Problem occurred due to lack of time and facility of internet.on the internet.com/financials/avivaindu stries/profit-loss/AI55 .moneycontrol.google. Bibliography Books www.moneycontrol.com http://www. Finding the data of Insurance sector is very difficult.

com/financials/avivaindu stries/balancesheet/ AI55 .moneycontrol.http://www.

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