SYNOPSIS

Dissertation Project on Financial Statement Analysis in HDFC Standard Life Insurance Company

A synopsis submitted to the Bangalore University For the Partial Fulfilment for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION

By NILESH KUMAR Reg. No.-10SBCMA061

Under the Guidance of Ms. Geetha. S. Faculty of M.B.A

DEPT. OF MANAGEMENT STUDIES Administrative Management College Bannerghatta Road BANGLORE-560083 2010-12

TITLE OF THE DISSERTATION:

A study on Financial Statement Analysis of HDFC Standard Life

BACKGROUND OF STUDY:
Financial Statement Analysis is the process of identifying the financial strengths and weaknesses of the firm and establishing relationship between the items of the balance sheet and profit & loss account. Financial ratio analysis is the calculation and comparison of ratios, which are derived from the information in a companys financial statements. The level and historical trends of these ratios can be used to make inferences about a companys financial condition, its operations and attractiveness as an investment. The information in the statements is used by Trade creditors, to identify the firms ability to meet their claims i.e. liquidity position of the company. Investors, to know about the present and future profitability of the company and its financial structure. Management, in every aspect of the financial analysis. It is the responsibility of the management to maintain sound financial condition in the company. Financial statements provide a summarized view of the financial position and operations of a firm. Financial statement refers to statement Income statement or profit and loss account Balance sheet or position statement at the end of every year. Balance sheet: The balance sheet is the most significant financial statement. It indicates the firms financial solvency and liquidity. It communicates about assets, liabilities, owners equity. Profit and loss account: The earning capacity and potential of the firm are reflected by its profit and loss account.

STATEMENT OF THE PROBLEM:

Financial analysis of HDFC standard life to know the financial growth in market. Financial analysis is the technique which helps to know the financial position of the company. There is rising competition between HDFC Standard Life and other companies. Evaluate the performance of the company by using ratios as a yardstick to measure the efficiency of the company.

NEED OF THE STUDY:

It is useful for the management. It gives information to the investors about the earning capacity of the business. With the help of Ratio Analysis comparison of profitability and financial soundness can be made between one firm and another. Current year's ratios are compared with those of previous years and if some weak spots are thus located remedial measures are taken to correct them. It gives information to the financial institution for providing the finance to the company It gives information to the taxation authorities. It gives information to the researchers for conducting research in respect of profitability, efficiency, financial soundness and growth of that company.

OBJECTIVES OF THE STUDY:

Analyse financial information for comparison

Analyze the capital structure of the company with the help of Leverage ratio
Evaluate and analyze various factors of the financial performance of the company Make comparisons between the ratios during different periods

RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. In it, step-bystep methods are followed to solve a particular problem. It refers to a search for knowledge. It can also be defined as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Research Design: Descriptive research is used in this study. The researcher had to use fact and information already available through financial statements of earlier years and analyse these to make critical evaluation of the available material. Hence by making the type of the research conducted to be both Descriptive and Analytical in nature. Data Collection Procedure: The required data for the study are basically secondary in nature and the data are collected from the audited reports of the company.

SOURCES OF DATA:
Insurance company brochure IRDA web site Companies web sites Annual report of company www.moneycontrol.com

TOOLS AND TECHNIQUES OF DATA:

Ratio analysis is a widely used tool of financial analysis. Ratios can be classified into four groups: Liquidity ratios. Capital structure ratios. Profitability ratios. Activity ratio.