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The Birla Sun Life Insurance Company was established in the year 2000, with a joint venture of two leading companies’ likely Aditya Birla Group and Sun Life financials (USA). Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch, Birla Sun Life Insurance has cemented its position as a leading player in the Private Life Insurance Industry. Birla Sun Life Insurance has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation. Multi distribution channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers. It has established Web-enabled IT systems for superior customer services to have issued policies over the Internet. Corporate governance and a high degree of transparency in all business practices and procedures to have an operational Business Continuity Plan and all Strong fundamentals based on the Aditya Birla Group's local insight and Sun Life financials's global expertise. The head office is situated in below address, Birla Sun Life Insurance Company Ltd. 6th floor, Vaman Center Makhwana Road, Off Andheri-Kurla Road Andheri(East),Mumbai-400059 The Branch office in Mangalore is located in:Birla Sun Life Insurance Company Ltd. 2nd floor, Premium Enclave Light House Hill Road Mangalore-57500
Vision:To create long term value along with market leadership Missions: To help people mitigate risks of life, accident, health and money at all stages and under all circumstances Values: Integrity Commitment Passion Seamlessness Speed Enhance the financial future of our customers, including enterprises.
BSLI has contributed significantly to the growth and development of the life insurance industry in India by introducing unique Unit Linked Life Insurance Solutions, pure term plan and a slew of innovative products. By adopting multi-distribution channels such as Direct Sales Force, alternate channels and convenient points of purchase, including selling its policies through the ban assurance route and through the internet, BSLI has revolutionized the entire insurance policy-buying experience. Corporate governance and a high degree of transparency in all its business practices and procedures, besides worldclass processing capabilities and well-prepared business continuity planning, have brought about the credibility that BSLI enjoys among its patrons. The process of getting sales illustrations signed by customers, offering a free look period on all policies, which are now standard norms followed by the insurance industry, were introduced by BSLI. BSLI offers a spectrum of products to meet the growing needs of individuals and group insurance through a multi channel distribution network. The company has quadrupled its distribution network to over 600 branches and more than 100,000 advisors. With a rapidly growing national footprint, the company is now positioned to capture an increased market share in the fast growing life insurance market.
Canada. non-ferrous metals. Australia and China. viscose filament yarn. belonging to 25 different nationalities. The Aditya Birla Group is a dominant player in all of the sectors in which it operates. Canada. the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study 2007. Italy. the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders.ADITYA BIRLA GROUP The Aditya Birla Group is India's first truly multinational corporation. It's 66 state-of-the-art manufacturing units and sectoral services span India. 4 . UK. Hungary. of US $31. Indonesia. carbon black. Egypt. Luxembourg.5 billion and in the League of Fortune 500. branded apparel.000 employees. In India. The Aditya Birla Group’s products and services offer distinctive customer solutions worldwide. These sectors include viscose staple fibre. Indonesia. The Group has operations in 20 countries . Malaysia and Korea. fertilisers. Egypt. China. Australia. The Group has also made successful forays into the IT and BPO sectors. Thailand. USA. Thailand. cement. A US $28 billion corporation with a market cap. rooted in Indian values. Brazil. insulators and financial services. Philippines. Malaysia.India. Philippines. the Aditya Birla Group is anchored by an extraordinary force of 100. Germany. sponge iron. Switzerland. Global in vision. Laos. France. Over 50 per cent of its revenues flow from its operations across the world. chemicals.
The Sun Life Financial group of companies and their joint ventures offer individuals and corporate customers a diverse range of financial products and services that fall into two principal business areas: wealth management and protection. Sun Life Financial Inc. independent agents. Tracing its roots back to 1865. is a leading financial services organization headquartered in Toronto. trades on the Toronto (TSX).800 people plus an extensive global distribution network of career sales forces. the United Kingdom. Sun Life Financial Inc. Indonesia. Sun Life Financial Inc. India and China. Throughout its international operations. Hong Kong. 5 . investment dealers and financial planners. New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF". and its partners today have operations in key markets worldwide. Sun Life Financial has an employee base of approximately 13. Sun Life Financial Inc. Canada. manages assets worth CDN $435 billion. the Philippines. operating in key markets around the world.SUN LIFE FINANCIAL INC. As on 30th June 2007. including Canada. the United States.
Vikram Kotak Chief Investment Officer Mr. Amitabh Verma Chief Operating Officer Mr. Saurov Ghosh Head – Human Resources & Training Mr.MANAGEMENT TEAM Mr. Jayant Dua MD & CEO Mr.Pramod Krishnamurthy Head – Information Technology Mr. Niall O'Hare Chief Actuarial Officer Mr. Risk. Mayank Bathwal CFO & Head of Institutional Sales Mr. Lalit Vermani Head – Compliance. Legal & Audit 6 .
At Birla Sun Life Insurance, winning is a way of life. Our innovative solutions and customer-friendly services have been admired, appreciated and rewarded by customers and the industry at large.
Recruiting and Staffing Best in Class Awards.
Outlook Money Awards 2004 BSLI - Best Life (Runner Up) 2004 TROPHY.
Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004 CERTIFICATE.
Birla Sun Life Insurance was presented 'The Best Employers In India Awards 2004' Trophy.
The Bhartiya Shiromani Puraskar awarded to BSLI at the seminar on "Economic Development” New Delhi, on February 13, 2006. This is a Certificate of Excellence for Enhancing the image of India presented by Dr. Bhishma Narain Singh (Former Governor of Tamil Nadu & Assam) in association with the "Institute of Economic Studies
Birla Sun Life Insurance was awarded 'The Great Place to Work Seminar Series 2007’ Presented by Anil Sachdev (Chairman & MD of Grow Talent Company Ltd) Robert Levering (Co-founder Great Place to Work Institute) and Jehangir Pocha (Business World Magazine).
BUSINESS CONTINUITY PLAN
Birla Sun Life Insurance is one of the few Indian companies to have a fully operational Business Continuity Plan (BCP) to ensure minimal impact to the Organisation, its people, and most importantly, its customers. Our Business Continuity Planning (BCP) Program is a response plan which would ensure that in the event of a disaster we would be able to restore and recover operations for critical processes within a predetermined time after the disaster. WHY BUSINESS CONTINUITY PLAN? A Business Continuity Plan ensures continued operation at agreed level in the event of: o Natural disasters such as floods, earthquake, etc. o Hostile situations o Operational breakdowns o Employee malevolence o Damage to critical information technology and telecommunication systems, etc. It is important to counter these threats as it may result in loss of critical data, damage to assets, cause human injuries, and loss of life. At Birla Sun Life Insurance, our Business Continuity Plan has been designed based on international best practices and global industry standards. It is an integral part of our Risk Management activities that will ensure effective recovery of our critical business processes within an acceptable time frame in case of disruption to our business due to any disasters. Programme Overview As part of our Business Continuity Plan, we have a documented crisis response and recovery procedure for quick response and Stabalisation of the situation, and a business continuity procedure to ensure recovery.
Highlights of our Plan Document: Crisis Management & incident response 9
Business Continuity Plan for HO & its Critical branches. Business Continuity Plan Testing ensuring viability of all its plans. data and system recovery Recovery of all mission-critical business functions and supporting systems Alternate recovery sites if primary location is unavailable Communication with customers. Data back-up. 10 . Crisis Management Plan & Pandemic Response Plan at a corporate Level. The activities set forth above may evolve as business and regulatory needs require. employees and other stakeholders Assurance to customers that they will continue to receive optimum customer services at all times Our Commitment Risk Assessment & Business Impact Analysis (BIA) annually.
Businessman. Local committees.Etc NRI’s:Non-Resident Indians. COMPETITORS Life insurance corporation ING vysya life insurance Max network life insurance MetLife insurance Aviva life insurance Bharathi Axa life insurance Bajaj Allianz life insurance Tata AIG life insurance ICICI Pru Insurance Reliance life insurance Kotak Mahindra life insurance 11 . Co-operative societies.etc. Groups:HUF’s.. Individuals:One who earns the monthly salary.CUSTOMERS The customers of the company are below.
Ltd. insurance have earned losses for last 4 years. 3. 3. earns a huge loses from many years Birla Sunlife Insurance Co.. Huge market is literally untapped. 2. Birla Sunlife Insurance Co. Ltd. Out of estimated 320 million insurable markets only 20% of the population is insured. THREATS 1. 3. Ltd. 2.FINANCIAL SWOT ANALYSIS STRENGTHS 1. WEAKNESS 1. It has also enjoyed the brand name of the Birla Sunlife Insurance Co. They have lot of cash balance and fund for the short-term purpose. In a conservative society of India where people are most inclined towards risks free investment such as Bank FD’s and saving rather than equity and high risk investment insurance offers the best of both worlds – The security with high returns. 2. The Indian and global insurance players are entering in to the Indian market the will increase the competition in insurance market Increase interest rate scenario provides a threat to insurance company Birla Sunlife Insurance Co. 2. which increase its credibility in public. Birla Sunlife Insurance Co. old life insurance has a very good image in mind of public. 3. Birla Sunlife Insurance Co. Ltd. its premium income increases but ins loses also increase it is a alarming situation for the company 12 . Ltd. Ltd. is one of the company which provide the capital security to investments of the customers this provide a opportunity to the company. life have very low current assets and it is not proper to meet the working capital requirements Target only higher income group whereas other companies are trying to catch middle-class people OPPORTUNITIES 1.
Life Gain PlusTM .MAX NEW YORK LIFE INSURANCE Max New York Life Insurance Company Ltd is a Joint Venture between New York Life. Vision Become the most admired Life Insurance Company in India Mission Become one of the top 3 new life insurance companies Become a national player. The 14 products are . a Fortune 100 company and Max India Limited. The Company's paid up capital is Rs. It invests only in debt instruments and meets both Indian and international disclosure norms. Max New York Life is committed to creating a partnership for life with its customers in India. Whole Life . It has 14 life insurance products and 9 options & riders that can be customised to over 400 product combinations enabling customers to choose the policy that best fits their need. Level Term.25 Year Term. In line with its values of financial responsibility. Children Endowment .18.Non-Participating.Whole Life .24. Single Premium Insurance Bond.dominant in North India Be the brand of first choice among all national players Become the employer of choice Be the principal of choice for Agents Product Range Max New York Life offers a suite of flexible products . Easy LifeTM. Endowment 20 Year Policy. Stepping StonesTM. Endowment to Age 60. 5 Year Term Renewable and Convertible Policy and Life Maker™ Unit Linked Investment Plan. Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. Through its wide network of highly competent life insurance Agent Advisors and flexible products and solutions. Children Endowment . which makes it among the highest capitalised life insurer in India. Life Gain PlusTM 20 Year Term.Participating.387 crore. 13 .
KOTAK MAHINDRA GROUP COMPANY PROFILE Kotak Mahindra is one of India's leading financial institutions. It’s banking operations offers a central platform for customer relationships across the group’s various businesses. KEY GROUP COMPANIES AND THEIR BUSINESSES Kotak Mahindra Bank The Kotak Mahindra Group’s flagship company. From commercial banking. to stock broking. London. Retail Finance. representative offices and satellite offices across 216 cities and towns in India and offices in New York. to investment banking. Corporate Banking. The group has a net worth of around Rs. to life insurance.000 crore. Kotak Mahindra Finance Ltd that was established in 1985.4 million customer accounts. franchisees. Kotak Mahindra Capital Company Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI. The Group services over 1. 2. Dubai and Mauritius. KMCC's core business areas include 14 . offering complete financial solutions that encompass every sphere of life.000 people in its various businesses and has a distribution network of branches. Treasury and Housing Finance. employs around 6. The bank has a presence in the Commercial Vehicles. was converted into a bank – Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. to mutual funds. the group caters to the financial needs of individuals and corporate.
Kotak Securities Ltd.Equity Issuances. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products. KMP continues to be among the leading car finance companies in India. Mergers & Acquisitions. Structured Finance and Advisory Services. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. and Old Mutual plc. is one of India's largest brokerage and securities distribution house in India. Fixed Income Securities and Principal Business. offers online and offline services based on well-researched expertise and financial products to the non-institutional investors. is the asset manager for Kotak Mahindra Mutual Fund (KMMF). Kotak Securities Kotak Securities Ltd. KMMF manages funds in excess of Rs 4000 crores and offers schemes catering to investors with varying risk.return profiles.. Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Old Mutual Life Insurance Limited. a subsidiary of Kotak Mahindra Bank. is a joint venture between Kotak Mahindra Bank Ltd. Kotak Mahindra Prime Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. to make them financially independent. Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC). It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. Old Mutual 15 . Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates.
Operations in the United Kingdom are focused on wealth management. The company’s US Life business recorded sales of $4 billion at the end of 2002. asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa. Old Mutual is the largest financial services business in South Africa. through Gerrard as one of the leading private client stock broking businesses in the UK. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine.Old Mutual was established more than 150 years ago and has developed into an International financial services group whose activities are focused on asset gathering and asset management. banking and general insurance operations. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. through its life insurance. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations. Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world.In the USA. the United States and the United Kingdom. 16 .
KOTAK AS A GROUP 17 .
SWOT ANALYSIS STRENGTHS 1. RICH EXPERIENCE OF MANAGEMENT STABILITY OR LOYALITY OF CLIENTS SKILLED & TACTFUL STAFF ENTERPRENEURSHIP QUALITY INNOVATIVE PRODUCT TRAINING WEAKNESS 1. 5. 3. 3. GETTING STABILITY THROUGH INCREASED MARKET PENETRATION & OFFERINGS TO ALL CATEGORIES INCREASE IN CUSTOMERS WALLET SHARE GROWTH IN ECONOMY WOULD LEAD TO HIGHER DEMAND FOR CREDIT LEVERAGING THE LATEST TECHNOLOGY FOR PROVIDING QUAILTY OF CLIENT SERVICES THREATS 1. 3. 2. 2. 5. 2. PEOPLE 4. AGAIN RISING OF CRUDE OIL PRICES ALTERATION RATE IS VERY HIGH IN INSURANCE INCREASING LATEST RATE OF INTERST COMPETITION FROM PRIVATE & MNC INFLATION COULD REDUCE SAVING & INVESTMENTS OF 18 . 4. INSUFFCIENT OFFICE EQUIPMENT UNSUFFCIENT SPACE OPPORTUNITIES 1. 4. 2.
Thus the financial statement provides a summarized view of financial positions and operation of a firm. In financial analysis. The two statements are:1. For instance. The analysis of these figures helps the interested reader by giving tongue to these mute heaps of figures. Profit And Loss Account They provide some extremely useful information to the extent that balance Sheet mirrors the financial position on a particular date in terms of the structure of assets.INTRODUCTION TO TOPIC FINANCIAL STATEMENTS Financial statements refer to such statements which contains financial information about an enterprise. solvency and profitability of the business. Actually the figures given in financial statements do not speak anything themselves. and so on and the Profit And Loss account show s the results of operations during a certain period of time in terms of the revenues obtained and the cost incurred during the year. In the words of Finney and Miller: "Financial analysis consists in separating facts according to some definite plan. if all items relating to current assets are placed in one group while all items relating to current liabilities are placed in another group. They report the profitability and the financial position of the business at the end of accounting period. The term financial statement includes at least two statements which the accountant prepares at the end of an accounting period. The Balance Sheet 2. the comparison between the two groups will provide useful information. Meaning of Financial Analysis: Financial statements present a mass of complex data in absolute monetary terms and reveal little about the liquidity. arranging them in groups according to certain circumstances and then presenting them in a convenient and easily read and understandable form". 19 . liabilities and owners equity. the data given in financial statements is classified into simple groups and a comparison of various groups is made one another to pin-point the strong points and weaknesses of a business.
Figures as at the end of the Current years Rs. LTD.. Loan Funds: (a) Secured Loans (b) Unsecured Loans Total APPLICATION OF FUNDS: 1. Loans and Advances (a) Inventories (Stock) (b) Sundry Debtors (c) Cash and Insurance Company Balances (d) Other Current Assets (e) Loans and Advances Less: Current Liabilities and Provisions: (a) Liabilities (b) Provisions Net Current Assets 4. Net Block: 3. I. Fixed Assets: (a) Gross Block (b) Less Depreciation 2. Balance (Loss) Total II. Current Assets. Shareholder's Funds (a) Capital (b) Reserves an Surplus 2.VERTICAL FORM OF BALANCE SHEET BALANCE SHEET OF ………………. as at …………………………… Schedule No. 20 . (a) Miscellaneous Expenditure to the extent not written off (b) Profit & Loss Account Dr. CO. Figures as at the end of the previous year Rs. SOURCES OF FUNDS: 1.
it is also called 'Dynamic Analysis'. When data about sales. similarly in a common size Balance Sheet various assets can be expressed as percentage o total assets. Thus. The items in the financial statement are expressed as a percentage to total and the total is taken as equivalent to 100. it involves making comparisons and establishing relationship among related items of an enterprise for a number of years. Such analysis indicates the increase or decrease in these items not only in absolute figures but also in percentage form. It also helps in knowing the trend of the business. 21 . (ii) Vertical Analysis: In such type of analysis.. cost of production. Figures for two or more years are contained in such type of analysis and these figures are placed side-by-side to facilitate comparison.TYPES OR METHODS OF FINANCIAL ANALYSIS Financial analysis is an art and as such there are various approaches towards financial analysis. It involves a study of the quantitative relationship among various items of Balance Sheet or Profit & Loss Account of a single period. The Common Size Profit and Loss Account shows each element of Cost as a percentage of sales. profits etc. financial statements for a number of years are reviewed and analysed. It helps in analysing cost and operating results of the year. Since such type of analysis is based on the data from year-to-year rather than only one year. are compared for two or more years of a firm. Two basic approaches or types of analysis are: (i) Horizontal Analysis (i) (ii) Vertical Analysis Horizontal Analysis: In such type of analysis. financial statements for a single ratios. they indicate the areas of strength and weakness of the enterprise. Statements containing such analysis are termed as 'Common Size Statements'.
Various tools or devices employed for analysing the financial statements are as follows: (i) (ii) (iii) (iv) (v) (vi) (vii) (i) Comparative Statements Common Size Statements Trend Analysis Accounting Ratios Cash Flow Statement Funds Flow Statement Break-Even Point Analysis Comparative Statements: When financial statements figures for two or more years are placed side-by-side to facilitate comparison. expenses and profit or loss of an enterprise. In such a statement figures of production. various figures are converted into percentage to some common base. expenses. Each them of the base year is assumed to be equal to 100 and on that basis the percentage of 22 . They are not readily understandable to their users. Similarly. It also indicates the trend of change as well as the strong points and weak point of the enterprise. liquidity and financial soundness of the enterprise.TOOLS FOR FINANCIAL ANALYSIS Financial statements contain absolute figures of assets. these are called 'Comparative Financial Statements'. They do not reveal the earning capacity. they are analysed to present them in simple and understandable form. In profit and loss account. For calculating trend percentages any year is selected as the 'base year'. sales. liabilities. profits etc. (iii) Trend Analysis: It is one of the most useful form of horizontal analysis in making comparative study of the financial statements for a number of years. sales figure is taken at 100 and all other figurers are expressed as percentage of sale. Hence. are put side-by-side to draw conclusions about the profitability and financial health of the business. revenues. in balance sheet total assets are taken at 100 and all assets are expressed as percentage of the total. (ii) Common Size Statements: In these statements.
A firm may earn huge profits yet it may have paucity of cash or when it suffered a loss it may still have plenty of cash. profitability etc. It also discloses the sources from which funds were obtained by the enterprise and the specific uses to which such funds were applied. It indicates the causes of changes in the working capital of an enterprise during the year. (iv) Accounting Ratios: A ratio is simply one number expressed in relation to another and a study of the relationships between various items or groups of items is known as 'ratio analysis'. (vi) Funds Flow Statement: A fund flow statement is designed to show the changes in the assets.each item of each year is calculated. The trend percentage is helpful in revealing the trend – increase or decrease in various items. (vii) Break-Even Point Analysis: Break-Even Point is the point where total costs are exactly equal to the total sales. It simplifies and summarises a long array of accounting data to provide useful information regarding the liquidity. At this point. The reasons for these derivations can be analysed and understood by preparing cash flow statement. (v) Cash Flow Statement: It shows the inflow and outflows of cash and cash equivalents during a particular period and analyses the reasons for changes in balance of cash between the two balance sheet dates. 23 . liabilities and capital of the firm between the dates of two balance sheets. solvency. It can also be termed as 'No profit – No Loss' point. there is neither any profit nor any loss.
COMPANIES PROFILES 24 .
Direct carriers are responsible for the initial underwriting of insurance policies and annuities. Insurance carriers assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. Direct insurance carriers offer a variety of insurance policies. insurance carriers are large companies that provide insurance and assume the risks covered by the policy. insurance companies invest the money they receive in premiums. such as claims adjustment or third-party administration of insurance and pension funds. building up a portfolio of financial assets and income-producing real estate that can then be used to pay off any future claims that may be brought. many are independent and are thus free to market the policies of a variety of insurance carriers. While some of these establishments are directly affiliated with a particular insurer and sell only that carrier’s policies. and how much will be awarded. Insurance agencies and brokerages sell insurance policies for the carriers. There are two basic types of insurance carriers: direct and reinsurance.STRUCTURE OF INSURANCE INDUSTRY The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies and brokerages. as well as the likelihood that the insurance carrier will actually have to pay. the carrier states the length and conditions of the agreement. In the policy. the insurance industry includes establishments that provide other insurance-related services. Disability insurance supplies 25 . In order to be able to compensate policyholders for their losses. The premium charged for the policy is based primarily on the amount to be awarded in case of loss. while reinsurance carriers assume all or part of the risk associated with the existing insurance policies originally underwritten by other insurance carriers. exactly which losses it will provide compensation for. Life insurance provides financial protection to beneficiaries—usually spouses and dependent children—upon the death of the insured. In general. In addition to supporting these two primary components.
Also. 26 . such as automobile and homeowner’s insurance. Property-casualty insurance protects against loss or damage to property resulting from hazards such as fire. Most policies.a preset income to an insured person who is unable to work due to injury or illness. combine both property-casualty and liability coverage. Companies that underwrite this kind of insurance are called property-casualty carriers. One such service is the processing of claims forms for medical practitioners. The insurance industry also includes a number of independent organizations that provide a wide array of insurance-related services to carriers and their clients. and health insurance pays the expenses resulting from accidents and illness. insurance companies sometimes hire independent claims adjusters to investigate accidents and claims for property damage and to assign a dollar estimate to the claim. and natural disasters. theft. Other services include loss prevention and risk management. An annuity (a contract or a group of contracts that furnishes a periodic income at regular intervals for a specified period) provides a steady income during retirement for the remainder of one’s life. Liability insurance shields policyholders from financial responsibility for injuries to others or for damage to other people’s property.
insured with no flexibility or transparency in the products. who have always seen life insurance as a tax saving device. are now suddenly turning to the private sector and snapping up the new innovative products on offer.LIFE INSURANCE MARKET IN INDIA The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers.000. Most customers were under. smart marketing and aggressive distribution. state owned LIC's new premium business has fallen. The state owned companies still dominate segments like endowments and money back policies. the average size of a life insurance policy before privatisation was around Rs 50. the private insurers have already wrested over 33 percent of the market. not as a product giving protection. But in the annuity or pension products business. Meanwhile. That has risen to 27 .they are persuading people to take out bigger policies. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population.03 over last year. with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways. For instance. The growing popularity of the private insurers shows in other ways. Innovative products. With the entry of the private insurers the rules of the game have changed. was the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. The new business premium of the 12 private players has tripled to Rs 1000 crore in 2002. The state owned LIC sold insurance as a tax instrument. Indians. They are coining money in new niches that they have introduced. And in the popular unit-linked insurance schemes they have a virtual monopoly. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income.
whole life and term will remain popular. With the breakdown of traditional forms of social security like the joint family system. Today's consumers are increasingly interested in products to help build wealth and provide for retirement income. the rules of the game are set to change. The trend in developed economies where a person not only lives longer and retires earlier is now emerging in India.2 lakh. the fear also is one of living too long and outliving one's assets. Where once the fear was one of dying too early. now. which makes it all the more necessary to start saving early to ensure long term wealth creation. variable life and annuity products are also set to rise. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1. While sales of traditional life insurance products like individual.way bigger than the industry average.about Rs 80.000. With the entry of competition. retirement products. sales of new products like single premium. consumers are now concerning themselves with the need to provide for a comfortable retirement. with increasing longevity. 28 . investment linked. This trend has been further driven by the long-term decline in interest rates.
They have been chosen on the basis of pre – survey pilot research conducted among a group of respondents. we have selected only SIX major players from the industry. 29 .Players in the Indian Insurance Market Public Sector: Life Insurance Corporation of India (LIC) Private Sector: Birla Sun Life ICICI Prudential Life Insurance Old Mutual Kotak Max New York Life Tata AIG HDFC Standard Life MetLife SBI Life ING VYSYA AMP Sanmar Kotak Life Insurance Aviva Allianz Bajaj For the purpose of our Project Study.
CHAPTER -2 LITERATURE REVIEW 30 .
1-15. page no. quantitative technique. Avichal publishing company. New Delhi: This text book helps me out to understand the meaning of different ratios and their meaning. 301-305(second part). and page no. 221-249. 31 .New Delhi. second edition: 2006-2007.. management accounting and financial control. Avichal publication: From the above pages I got light on some analytical tools. Management accounting and financial management. page no. Marketing Research.R. third edition 2004. publishing: This book helps me in understanding the meaning and application of statistical tools. (India) enterprise.LITERATURE REVIEW Jain T.R. Maheshwari S. statistical methods.4. Gupta Shashi K. Beri G. page no.K. Gupta S. page no.K.168-174.K. Ltd.. vikas publishing house pvt. 88110. third edition Tata McGraw Hill.1 to 4.321-356. 1-13.83.P.. page no. New Delhi : These pages help me to understand the meaning of my statistical tools and also help in applying them. 206-219.B. V. Goel D. 2005: this book helps me to know the meaning of various steps in the marketing research. & Sharma R. Financial Management.K publication Delhi: Form this book I have cleared my financial concepts and their meanings.. second edition V.A. Kothari C. V. page no. third edition. 281-284.N.K. Statistics for M. C. fifth edition. New Delhi: This book give me the knowledge of basic meaning of research that what it means and what are its limitations.
com: This website provides me balance sheet and profit & loss account of HDFC BANK. 215-239.hdfcdirect. Pandey I. 77-89.P. Financial Management page no. fifth edition.M. www.K. fifth edition. Hooda R.hdfcbank. Mittal. Lev.financemaster. Management and Business Finance.K (28-30): It explains the preparing of comparative Balance Sheet and way of interpreting it. Sharma R.R.com: This website helps in theory about analysis of financial statements. Vikas publication New Delhi: Baruch In this how analysis of financial statements of organization is done and on the basis of that comment upon the financial position of the organization. kalyani publication: Help me to clear the meaning of varios terms in the financial statements.No. second edition.com: This website helps in analysis of financial statements www. (209-212): Calculation of Trend Analysis and its interpretation. page no. www. 32 . Ciaran Walsh P. Vikas publication New Delhi: From this book I got the interpretation of various parameters. (113-122): Analysis of liquidity of any firm by calculating current & liquid ratio.
To know the comparative liquidity position of the companies. To analysis profit & loss account.OBJECTIVES OF STUDY • To understand the effect of Insurance Sector growth on the financial statements of major companies. • • • • To understand the financial growth of these companies. To analyze the statements. 33 . with financial tools.
Financial statements show the real picture of the companies’ functions. To know the financial growth of Insurance Sector companies (Birla Sunlife Insurance.RESEARCH METHODOLOGY Research is any organized inquiry carried out to provide information for solving problems. Kotak Life Insurance. In my study I tried to cover all the financial aspects and throw a light on the profitability of the companies which shows that there is so much potential in the Insurance Sector in India. PROBLEM STATEMENT: As we are experiencing that Insurance is biggest problem in India. In my study I have included India’s three biggest Insurance Sector companies they are indulge in Insurance generation. Max New York Life Insurance) on different criteria & to understand with regard to current situation of Insurance Sector in India. liabilities and assets. operations. 34 . transmission and distribution. In this study also tried to correlate the good earnings of the companies and condition of Insurance Sector in India. Due to lacking in this sector India is far behind the developed countries. Study of their financial statements shows growth of the companies. Business research is a systematic inquiry that provides information to take business decisions. that they are earning good profit and as well as distributing good amount of dividends.
Sample Size : Leading 3 Companies with last 5 years of Financial data is our sample size respectively. 2008-2012 is our sample selection which is a desired and honest samples selection. Sample Unit : A Financial year is respective data unit.e. SAMPLE DESIGN Universe : Entire Insurance Industry is our universe. Manual. 35 . thus we use secondary data in our report.RESEARCH DESIGN In this research an Descriptive Research Design is imposed due to the use of secondary data. Journals. which are a collection of secondary data. Magazines. and Various Articles for successful completion of project. DATA COLLECTION In this report a study has conduced on financial accounts . Website of Insurance Co.. Finals Accoutns. Sample Selection : Last five financial years i. The main sources are as follows : Brouchers.
CHAPTER .3 ANALYSIS & INTERPRETATION 36 .
97 5752.40 22565. and taxes.23 4918.85 4553. dividend income.47 Max New York Life Insurance 4277.73 3918.11 4197.73 3963. It excludes financial related items (i. 37 .00 26142. and interest expense).ANALYSIS OF FINANCIAL STATEMENTS OPERATING INCOME Operating income is revenue less cost of goods sold and related operating expenses that are applied to the day-to-day operating activities of the company. (Amount in crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 19047. extraordinary items.90 32631..58 4156.93 3511.50 18868.e. interest income.53 BIRLA KOTAK MAX 2008 2009 2010 2011 2012 INTERPRETATION: Above graph revels that Birla Sunlife Insurance has more operating income with respect to its capital employed. other thing is that Birla Sunlife Insurance and Max New York Life Insurance has more operating margin than the KOTAK but still Kotak managed to the same growth as Max New York Life Insurance.70 Kotak Life Insurance 3742.
08 480.96 320.98 439.00 6615.40 4958. (in crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 3289.67 478.84 Max New York Life Insurance 489.64 202.86 659.00 4270.75 BIRLA KOTAK MAX 2006 2007 2010 2012 2008 2009 2008 201020092011 INTERPRETATION: Above graph revels that in the year 2007-08 Birla Sunlife Insurance had a growth in its profit growth but at the same time KOTAK has less growth in its profit.14 519.50 5253. 38 .ADJUSTED PAT Profit after tax is equal to PBT minus tax for the financial year.80 Kotak Life Insurance 136.69 319.
39 . it has inverse relationship with the retained earnings because out of the earnings the earning is divided into two parts one is for distributing and another is for retaining.12.21 104. KOTAK and Birla Sunlife Insurance has distributed 121.60 168. 188.78 138.69 148.50 Kotak Life Insurance 60.30 1979.49 87.EQUITY DIVIDEND Equity dividend is that amount which is distributed among the shareholders out of the profit.41 188.22 BIRLA KOTAK MAX 2008 2009 2008 201020092011 2006 2007 2010 2012 INTERPRETATION: Above graph revels that all these companies distributed the dividend with respect to their earnings as Max New York Life Insurance.00 2308.50 as equity dividend to its shareholders.60 70.22 and 2638. more the equity dividend less will be the retained earnings. (In crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 708.00 1082.70 2638.12 Max New York Life Insurance 128.62 121.
80 Kotak Life Insurance 139.14 370.39 381.61 476. Dividing profits between dividends and retained earnings depends on at least two things: the firm's judgment of its own investment opportunities relative to those available in the market and any difference in tax treatment of dividends paid now and capital gains expected to result from investing retained earnings.92 660.72 254.48 410.90 3616.60 3268.61 4107.46 418. They are reported in the ownership equity section of the firm's balance sheet.59 BIRLA KOTAK MAX 2008 2006 2007 2009 2008 2010 20092011 2010 2012 INTERPRETATION: As above graph revels that after year 2006 BIRLA gives more emphasis on the retained earnings and its effect will be definitely on the dividend distribution.04 Max New York Life Insurance 391. 40 . YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 3009.RETAINED EARNINGS Retained earnings are profits that were not paid to a firm's shareholders.60 915.90 3911.
70 4743.37 721.81 1435.02 785.60 Kotak Life Insurance 60.00 685.73 1059.00 1354.50 7479.07 946. 41 .SECURED LOANS Secured loans are those borrowings which are backed by some assets by the lenders.50 4778. (Amount in crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 4149.00 1919.00 Max New York Life Insurance 1340.30 BIRLA KOTAK MAX 2008 2009 2008 2010 2006 2007 20092011 2010 2012 INTERPRETATION: As above graph revels that the both Max New York Life Insurance and KOTAK has fluctuation in their loans but on the other hand Birla Sunlife Insurance has increase trend in its secured loans.10 6173.
(Amount in crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 9093.64 1041.40 12647.81 2953.22 BIRLA KOTAK MAX 2008 2006 2007 2009 2008 2010 2009 20112010 2012 INTERPRETATION: Above graph revels that the unsecured loan required a great goodwill in the market and KOTAK has more unsecured loans than the Max New York Life Insurance with respect to their capital.50 1842.75 1850.67 2347.81 2321.50 Kotak Life Insurance 571.UNSECURED LOANS Unsecured loans are those borrowings which are not backed with any asset they are generally based on he company’s goodwill and past performance.10 14464.60 17661. 42 .32 Max New York Life Insurance 1100.12 4423.94 1345.10 10868.
29 16.59 17.19 35 30 25 20 15 10 5 0 3/7/2012 3/8/2012 3/9/2012 3/10/2012 3/11/2012 Birla Sunlife Insurance Kotak Life Insurance Max New York Life Insurance INTERPRETATION: Above graph revels that more the earning per share good it is and KOTAK has a good increasing trend in the earning per share than the others. All profit left after the payment of tax and preference dividend is available to equity shareholders.71 24.92 11.29 31.01 8.37 6. This ratio is calculated by dividing the net profits available to equity shareholders by number of equity shares issued: NET PROFIT – DIVIDEND ON PREFERENCE SHARE EPS = NUMBER OF EQUITY SHARES (Amount in crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 4.75 Max New York Life Insurance 24.47 6.ADJUSTED EPS This ratio measures the profit available to the equity shareholders on per share basis.22 24. 43 2007 2006 2007 2008 2008 2009 2009 2010 2010 2011 .21 5.02 Kotak Life Insurance 9.17 22.04 22.
40 2.50 4.40 4.50 8.50 BIRLA KOTAK MAX 2008 2006 2009 2008 2010 2009 2011 2010 2012 2007 INTERPRETATION: Above graph show that KOTAK has good earning per share but due to more retained earnings than others it has low dividend per share it shows 44 .00 7. But all of these are not distributed among them as dividend.DIVIDEND PER SHARE Profits remaining after payment of tax and preference dividend are available to equity shareholders.80 3. a portion is retained in the business and the remaining is distributed among equity shareholder as dividend. Out of these profits.00 5.90 1.20 Kotak Life Insurance 4.50 9. DPS is the dividend distributed to equity shareholders divided by the number of equity shares: DIVIDEND PAID TO EQUITY SHAREHOLDERS DPS = NUMBER OF EQUITY SHARES (in crores) YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 0.70 5.50 7.30 Max New York Life Insurance 6.39 2.
27 8.15 27.49 16.38 30. interest expenses. OPERATING MARGIN = TOTAL REVENUE – OPERATING EXPENSES TOTAL REVENUE YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 29.64 18.08 18.40 31. and taxes are excluded from the operating margin. other income.30 28.18 19. OPERATING MARGIN The key measure of profitability and performance is a company's operating margin.46 14.64 Max New York Life Insurance 29.26 BIRLA KOTAK MAX 2008 2006 2009 2007 2010 2009 2011 2010 2012 2008 45 .23 23.56 32. The operating margin is determined by subtracting the operating expenses from the total revenues and then dividing that result by the total revenue. One time gains and losses. interest income.13 Kotak Life Insurance 10.that KOTAK gives more emphasis on the retained earnings than the dividend distribution.
. it is not a good symbol to work on low operating margin. 46 .INTERPRETATION: KOTAK work on the very low operating margin than others.
FINANCIAL ANALYSIS BALANCE SHEET 47 .
MARGIN= TOTAL REVENUE YEAR Birla Sunlife Insurance Kotak Life Insurance 3.27 13.54 4.73 3..95 22.62 20.65 8.90 12.84 23.GROSS PROFIT MARGIN Gross Profit Margin equals Gross Profit divided by Revenue.34 8.33 March 08 March 09 March 10 March 11 March 12 21.70 5.P. expressed as a percentage.77 BIRLA KOTAK MAX 2006 2008 2007 2009 2008 2010 2009 2011 2010 2012 INTERPRETATION: KOTAK also charge low gross profit margin than other companies which is not a good financial symbol.12 16. 48 . GROSS PROFIT *100 G.56 24. The percentage represents the amount of each rupee of Revenue that results in Gross Profit.42 Max New York Life Insurance 21.
39 12.27 11.43 Max New York Life Insurance 11.NET PROFIT MARGIN Gross Profit Margin equals Net profit divided by Revenue. expressed as a percentage.39 BIRLA KOTAK MAX 2008 2006 2009 2007 2008 2010 2009 2011 2010 2012 INTERPRETATION: As above graph show that Birla Sunlife Insurance has very high and KOTAK has very much low net profit margin.57 12.04 23.64 14. MARGIN= TOTAL REVENUE YEAR Birla Sunlife Insurance Kotak Life Insurance 3.72 13.92 13.P.26 March 08 March 09 March 10 March 11 March 12 18.81 11.19 10. 49 . The percentage represents the amount of each rupee of Revenue that results in Net profit. NET PROFIT * 100 N.20 20.54 21.20 19.
88 and 32. and these will give you immediate return.96 respectively which shows that in this bearish market Kotak has little bit more P/E than others but other wise all three companies have lower P/E which is good for the short term perspective.41. Kotak Life Insurance and Max New York Life Insurance was 23. CLOSING MARKET PRICE OF THE SHARE P/E ratio = EARNING PER SHARE As on 14th March 2007 P/E ratio of Birla Sunlife Insurance. 37. 50 . This ratio shows how much is to be invested in the market in this company’s shares to get each rupee of earning on its shares. The ratio is used to measure whether the market price of a share is high or low.PRICE EARNING RATIO This ratio is computed by dividing the market price of a share by the Earning Per Share.
46 0.24 0.51 Kotak Life Insurance 0.43 0.45 0.60 0.61 BIRLA KOTAK MAX 2006 2008 2007 2009 2008 2010 2009 2011 2010 2012 LONG TERM LOANS: These refer to long term liabilities which mature after one year. loan from financial institutions and public deposits etc.50 0.35 0. It indicates the proportion of funds which are acquired by long term borrowings in comparison to shareholder’s funds. These include Debenture.42 0. LONG TERM LOANS DEBT EQUITY RATIO = SHAREHOLDER’S FUND OR NET WORTH YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 0.DEBT EQUITY RATIO Debt equity ratio expresses the relationship between LONG TERM DEBTS and SHAREHOLDER’S FUNDS.67 Max New York Life Insurance 0. Bank loan. 51 .52 0.56 0.41 0. Mortgage Loan.74 0.
52 . share issue expenses etc. INTERPRETATION: all three companies have lowered the debt equity ratio than the standard ratio. underwriting commission . debt equity ratio of 2:1 is considered safe. it shows a rather risky financial position from the long term point of view. as it indicates that more and more funds invested in the business are provided by long term lenders. should be deducted. share premium . capital reserve . The lower the ratio.SHARE HOLDER’S FUND OR NET WORTH: capital . Which means all three companies are not able to capitalized the tax leverage. If the debt equity ratio is more than that.preference It includes equity share share capital .however accumulated losses and fictitious assets remaining to be written off like preliminary expenses . general reserve . This ratio is calculated to access the ability of firm to meet its long term liabilities. Lower than 2:1 debt equity ratio provides sufficient protection to long term lenders. other reserves and credit balance of profit and loss account . A high debt equity ratio is a danger signal for long term lenders. Generally. the better it is for long term lenders because they are more secure in that case.
25 19.81 31.DIVIDEND PAY OUT RATIO It is also known as payout ratio.S.69 45.23 44.09 21.P. 53 . (dividend per share) D.11 Kotak Life Insurance 56.S.72 23.01 18.68 Max New York Life Insurance 27. D.20 38. it shows what percentage of profits after taxes and preference dividend is paid as dividend to equity shareholders.P.60 * 100 BIRLA KOTAK MAX 2006 2008 2007 2009 2008 2010 2009 2011 2010 2012 INTERPRETATION: As above graph show that KOTAK has low dividend payout ratio because it gives more emphasis on the retained earnings.P. (earning per share) YEAR Birla Sunlife Insurance March 08 March 09 March 10 March 11 March 12 20.37 17.73 30. RATIO = E.94 30. In other words.41 31. It measures the relationship between the earnings available to equity shareholders and the dividend distributed among them.
50 4239.08 3930.90 32631. it is very slow.70 BIRLA KOTAK MAX 2006 2008 2007 2009 2008 2010 2009 2011 2010 2012 INTERPRETATION: As above graph revels that Growth in sales is more in the BIRLA than others but in Max New York Life Insurance. YEAR Birla Sunlife Insurance Kotak Life Insurance 2670.50 18871.00 26142.79 4715.SALES Sales means total income (at invoiced values) received for goods and services over some given period time.95 Max New York Life Insurance 4300.22 5692.67 3998.55 3399.20 22565. 54 .51 4130.32 March 08 March 09 March 10 March 11 March 12 19047.44 4562.
providing a measure of the rate of return on a shareholder’s investment. N.RETURN ON NET WORTH It is a ratio of an organization’s net profit following taxes to its net worth.75 8.64 55 .12 Kotak Life Insurance 4.90 12.27 Max New York Life Insurance 11.24 9.PROFIT.45 14.58 10. AFTER INTEREST AND TAX x 100 RETURN ON NET WORTH = EQUITY SHAREHOLDER’S FUND YEAR March 08 March 09 March 10 March 11 March 12 Birla Sunlife Insurance 11.64 13.18 10.10 11.19 10.87 11.94 14.36 9.
RETAINED EARNINGS EARNINGRETENTION RATIO = *100 EARNINGS BEFORE APPROPRIATION YEAR Birla Sunlife Insurance March 08 March 09 March 10 March 11 March 12 77. This ratio shows how much is retained and how much is distributed out of earnings.23 Kotak Life Insurance 49.91 56. Retention means that part of earning which is not distributed among shareholders.37 54.30 67.28 71. Above data shows that KOTAK is less able to utilize its funds in a better manner. better it is. Generally companies keep a specific part of earnings for future expansions plans.01 56 . The higher the ratio. EARNINGS RETENTION RATIO Earning retention ratio is that ratio which defines the relationship between earning and retention of the company.91 54.46 46.41 57.82 69.75 Max New York Life Insurance 70.98 60. It is a true measure of the efficiency of the management since it shows what the earning capacity of the equity shareholders fund is.23 46.17 81.88 72.BIRLA KOTAK MAX 2008 2006 2009 2007 2010 2009 2011 2010 2012 2008 INTERPRETATION: As above graph show that his ratio measures how efficiently the shareholder’s funds are being used in the business.
Secured loans and unsecured loans plays significant role in the capital structure as they allow the company to capitalized the tax leverage. and another thing is that Birla Sunlife Insurance has more secured loans than the unsecured loans on the other hand private players has more unsecured loans. FINDINGS Operating income of all three companies has significantly increased but growth on the Max New York Life Insurance is not good as Kotak Life Insurance Profit after tax is a very good indicator to judge the financial soundness of any company and in this Birla Sunlife Insurance and Kotak Life Insurance has shown very good performance than the Max New York Life Insurance. Because it has inverse relation with the dividend distribution and KOTAK has high retention than the distribution. and in this study I found that all three companies has low debt as compare to equity. Dividend distribution is an indicator of good financial strength of the company as Birla Sunlife Insurance is a government company and has the more growth of equity dividend than the private players. 57 . the growth of PAT is very good in Birla Sunlife Insurance and Kotak Life Insurance .BIRLA KOTAK MAX 2008 2006 2009 2007 2010 2008 2011 2010 2012 2009 INTERPRETATION: As above graph revels that Earning retention ratio should be balanced.
Net profit margin and gross profit margins also help in judging the performance and profitability of the company.96 respectively which shows that in this bearish market Kotak has little bit more P/E than others but other wise all three companies have lower P/E which is good for the short term perspective. although private players has low capital than Birla Sunlife Insurance but still KOTAK per share than others. Sales are a primary function of the company. It indicates the proportion of funds which are acquired by long term borrowings in comparison to shareholder’s funds. has managed a continuous growth in the earning per share. This ratio shows how much is to be invested in the market in this company’s shares to get each rupee of earning on its shares. also it has more earning Operating margin is a very good indicator of judging the profitability of the company. 58 .41. it shows that how much a company has earns behind one equity share. Earning per share shows the earning of any company on per share basis.88 and 32. The ratio is used to measure whether the market price of a share is high or low. more these margins good for the company and in this case Birla Sunlife Insurance has very sound situation than others companies. 37. all other functions are based on the sales and in this study Birla Sunlife Insurance has great growth in the sales numbers than the other companies. Price earning ratio is computed by dividing the market price of a share by the Earning per Share. operating income and expenditure are those income and expenditure which comes out from the operating activities of the company and more the margin on that good is for the company and Birla Sunlife Insurance has very high operating margin than others which is very good for the company. Debt equity ratio expresses the relationship between LONG TERM DEBTS and SHAREHOLDER’S FUNDS. Kotak Life Insurance and Max New York Life Insurance was 23. As on 14 th March 2008 P/E ratio of Birla Sunlife Insurance. and these will give you immediate return.
share issue expenses etc. general reserve . should be deducted. preference share capital. Above data shows that KOTAK is less able to utilize its funds in a better manner. This ratio measures how efficiently the shareholder’s funds are being used in the business. 59 . better it is.Return on net worth shows that how much a company is earning on the share holders net worth. other reserves and credit balance of profit and loss account .however accumulated losses and fictitious assets remaining to be written off like preliminary expenses. It is a true measure of the efficiency of the management since it shows what the earning capacity of the equity shareholders fund is. share premium. The higher the ratio. underwriting commission. capital reserve. Net worth includes equity share capital.
LIMITATIONS OF THE STUDY 1. All these companies are very big companies with millions of capital in their books so study each and every aspect of their financial statements was a very difficult task. My lack of experience in the field of research creates so many problems during the study. 60 . Birla Sunlife Insurance and Max New York Life Insurance. All the data is secondary so to make the data compatible was very much difficult. 3. Time limit given was not enough to study the companies like Kotak Life Insurance . I have used secondary data which is collected by others for different motive so make that data compatible was a difficult task. 2. 5. Financial statements of these companies are made by very much high professionals with there standards so analysis of that statements was very tough time. 6. 4.
ANNEXURES 61 .CHAPTER -4 CONCLUSION. BIBLIOGRAPHY. SUGGESTIONS.
The most important action in this regard is creating a wider coalition of political interest who are convinced about the merits of the restructuring and who will continue to support it even against the odds described earlier. The key is turning the foes into friends. This should be done at all levels and at every stage of the process. And. It is feared that with the change in economic and political situations. The only route available for this is to involve all the sections of the civil society in the restructuring process and especially those which are apprehensive. thorough. above all.CONCLUSION This regard is over losing the golden opportunity presented by the peculiar political situation. 62 . it should be guanine and honest. a rigorous. In this regard. This could done by instituting the measures for transparency and direct public accountability and by opening the doors for their participation. While as suggested earlier. both of which are precarious and volatile. and sound process of addressing fundamental issues may be unleashed in such a manner that it will be politically difficult to roll it back. This is again a genuine concern. It is being looked as a political window which has opened due to the concurrence of many political and economic factors at the national as well as international level. we suggest that strategic use of the historic opportunity provided by this window could be made to consolidate the long-term process without sacrificing on the urgent issues. the actions to deal with the urgent issues are taken immediately. the window may be closed any time.
As explained earlier. such deficiencies and weaknesses in the previous model have proved disastrous. etc. structures and procedures in the new model. It will not be easy to circumvent the resistance of these organisations and sections of populations. For example: the businesses may try to create a variety of barriers to effective competition in the sector such as cross holding of companies. I want to say that the haste may result in serious weaknesses in the legal provisions. if the effort is made to rush the reforms through. I would say that there may be serious opposition from certain sections of populations such as labour unions. To sum up. Secondly. Finally. the haste may result in lack of understating of the problems and complications the new model may entail. movements of affected people. Some of them have proved their ”nuisance„ capacity in the past. any of these problems may put the sector back into the deep troubles. the deficiencies and weaknesses in the new structures and mechanisms will make them susceptible to the efforts of the vested interests to sabotage and high-jack them. we think. consumers% organisations. These sections have considerable economic and political Insurances and organisational strengths. organised lobbies of the agricultural customers. 63 . at times.SUGGESTIONS Firstly. wiping out the benefits of the restructuring. These problems and complications may prove very costly in the longterm. Similarly.
BIBLIOGRAPHY 64 .
Sep. fifth edition.K..asp http://www. Management accounting and financial management. first edition 2006.K. Financial Management page no. page no. page no.com/about/board. May 2009. page no.M.bseindia. Chartered financial accountant Dec 2009. 2007.BIBLIOGRAPHY Books • A. New Delhi.pg no. RBI bulletin. New Delhi • Goel D.asp http://www. page no. Charted Financial Analyst. 51. • Pandey I.asp http://www. 42. Business India Nov 2006 pg no.44.88. C.1 to 4. New Delhi. Annual report 2007-08. third edition 2004. second edition. Financial Statements. Marketing Research.83.bseindia. third edition Tata McGraw Hill. Websites • • • • http://www.com/mktlive/market_summ/margin.com/about/vision.bseindia.wild John. Management and Business Finance. 56-59. 215-239. • Beri G.43. 77-89. Tata Mcgraw hill. 99-101.com/about/introbse.Bernstein Leobold and J.4.asp 65 .2009. 1-13.bseindia.. Avichal publishing company. kalyani publication Magazines • • • • • Advance’ edge MBA. Vikas publication New Delhi • Sharma R. 12. Oct.
ANNEXURE 66 .
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