Professional Documents
Culture Documents
Amar 38 Final
Amar 38 Final
PROJECT ON
AN ANYLTICAL STUDY OF INSURANCE COMPANY
W.R.T. TATA AIG
SUBMITTED BY
AMARKUMAR SYRYAWANSHI
ROLL NO.: 38
ADVANCED ACCOUNTANCY PART 1
ADVANVCED FINANCIAL ACCOUNTING
IN PARTIAL FULLFILLMENT OF THE DEGREE OF
MASTER OF COMMERCE
2015-16
UNDER THE GUIDENCE OF
PROF. NEELAM SHAIKH
VIDYA PRASARAK MANDAL, THANE
K.G.JOSHI COLLEGE OF ARTS &
N.G. BEDEKAR COLLEGE OF COMMERECE
CHENDANI BUNDER ROAD, THANE-400601
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Declaration
I, student of M.Com. (Part - I) Roll No. : 38 hereby declare that the
project title AN ANLYTICAL STUDY OF INSURANCE COMPANY
PLACE
AMARKUMAR SURYAWANSHI
ROLL NO: 38
DATE
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ACKNOWLEDGEMENT
It is indeed a great pleasure and proud privilege to present this project work.
I take this opportunity to express my gratitude and acknowledge to all the individuals
involved both directly and indirectly for their valuable help and guidance.
This project has been an attempt to give information about the AN ANALYTICAL
I express special thanks to my guide Prof. NEELAM SHAIKH under whose guidence
the project conceived , planned and executed.
I would also like to thank the college library and its staff for patiently listening and
guiding me. I would like to thank my family also.
Thank You.
Index
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Chapt
er no
Subchap
ter
1.1
Introduction
1.2
Insurability
1.3
Legal
1.4
Indemnification
10
1.5
Methods of insurance
12
1.6
Types of insurance
13
1.7
18
1.8
19
2.1
2.2
22
2.3
Literature review
23
2.4
Research Methodology
25
3.1
Company profile
26
3.2
Financial statements
31
4.1
Conclusion
33
4.2
Bibliography
34
Particulars
Pag
e no
20
Chapter 1
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1.1 Introduction
Methods for transferring or distributing risk were practiced by Chinese and
Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.[1] Chinese
merchants travelling treacherous river rapids would redistribute their wares across many
vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed
a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and
practiced by early Mediterranean sailing merchants. If a merchant received a loan to
fund his shipment, he would pay the lender an additional sum in exchange for the
lender's guarantee to cancel the loan should the shipment be stolen or lost at sea.
At some point in the 1st millennium BC, the inhabitants of Rhodes created the
'general average'. This allowed groups of merchants to pay to insure their goods being
shipped together. The collected premiums would be used to reimburse any merchant
whose goods were jettisoned during transport, whether to storm or sinkage.
Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Genoa in the 14th century, as were insurance
pools backed by pledges of landed estates. The first known insurance contract dates
from Genoa in 1347, and in the next century maritime insurance developed widely and
premiums were intuitively varied with risks. [3] These new insurance contracts allowed
insurance to be separated from investment, a separation of roles that first proved useful
in marine insurance.
Insurance is the equitable transfer of the risk of a loss, from one entity to another
in exchange for money. It is a form of risk management primarily used to hedge against
the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the
insurance; the insured, or policyholder, is the person or entity buying the insurance
policy. The amount of money to be charged for a certain amount of insurance coverage
is called the premium. Risk management, the practice of appraising and controlling risk,
has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's promise to
compensate (indemnity) the insured in the case of a financial (personal) loss. The
insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insured will be financially compensated
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Since the mankind, every individual were ready for some type of sacrifice to
avoid the evil consequences of flood and fire. The same instinct is now in todays
businessmen to secure themselves against loss and disaster. This instinct was the main
reason for the birth of Insurance. Beginning date of Insurance is almost 6000 years back
but it largely developed in the past few centuries, particularly after the industrial era.
In India, insurance has a deep-rooted history. It finds mention in the writings of
Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The
writings talk in terms of pooling of resources that could be re-distributed in times of
calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to
modern day insurance. Ancient Indian history has preserved the earliest traces of
insurance in the form of marine trade loans and carriers contracts. Insurance in India
has evolved over time heavily drawing from other countries, England in particular.
1.2 Insurability
Risk which can be insured by private companies typically shares seven common
characteristics:
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1.3 Legal
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When a company insures an individual entity, there are basic legal requirements and
regulations. Several commonly cited legal principles of insurance include:[18]
1. Indemnity the insurance company indemnifies, or compensates, the insured in
the case of certain losses only up to the insured's interest.
2. Benefit insurance as it is stated in the study books of The Chartered Insurance
Institute, the insurance company doesn't have the right of recovery from the
party who caused the injury and is to compensate the Insured regardless of the
fact that Insured had already sued the negligent party for the damages (for
example, personal accident insurance)
3. Insurable interest the insured typically must directly suffer from the loss.
Insurable interest must exist whether property insurance or insurance on a
person is involved. The concept requires that the insured have a "stake" in the
loss or damage to the life or property insured. What that "stake" is will be
determined by the kind of insurance involved and the nature of the property
ownership or relationship between the persons. The requirement of an insurable
interest is what distinguishes insurance from gambling.
4. Utmost good faith (Uberrima fides) the insured and the insurer are bound by a
good faith bond of honesty and fairness. Material facts must be disclosed.
5. Contribution insurers which have similar obligations to the insured contribute
in the indemnification, according to some method.
6. Subrogation the insurance company acquires legal rights to pursue recoveries
on behalf of the insured; for example, the insurer may sue those liable for the
insured's loss. The Insurers can waive their subrogation rights by using the
special clauses.
7. Causa proxima, or proximate cause the cause of loss (the peril) must be
covered under the insuring agreement of the policy, and the dominant cause
must not be excluded
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8. Mitigation In case of any loss or casualty, the asset owner must attempt to
keep loss to a minimum, as if the asset was not insured
1.4 Indemnification
To "indemnify" means to make whole again, or to be reinstated to the position that one
was in, to the extent possible, prior to the happening of a specified event or peril.
Accordingly, life insurance is generally not considered to be indemnity insurance, but
rather "contingent" insurance (i.e., a claim arises on the occurrence of a specified
event). There are generally three types of insurance contracts that seek to indemnify an
insured:
1. A "reimbursement" policy
2. A "pay on behalf" or "on behalf of policy"
3. An "indemnification" policy
From an insured's standpoint, the result is usually the same: the insurer pays the loss
and claims expenses.
If the Insured has a "reimbursement" policy, the insured can be required to pay for a
loss and then be "reimbursed" by the insurance carrier for the loss and out of pocket
costs including, with the permission of the insurer, claim expenses.
Under a "pay on behalf" policy, the insurance carrier would defend and pay a claim on
behalf of the insured who would not be out of pocket for anything. Most modern
liability insurance is written on the basis of "pay on behalf" language which enables the
insurance carrier to manage and control the claim.
Under an "indemnification" policy, the insurance carrier can generally either
"reimburse" or "pay on behalf of", whichever is more beneficial to it and the insured in
the claim handling process.
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An entity seeking to transfer risk (an individual, corporation, or association of any type,
etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party,
by means of a contract, called an insurance policy. Generally, an insurance contract
includes, at a minimum, the following elements: identification of participating parties
(the insurer, the insured, the beneficiaries), the premium, the period of coverage, the
particular loss event covered, the amount of coverage (i.e., the amount to be paid to the
insured or beneficiary in the event of a loss), and exclusions (events not covered). An
insured is thus said to be "indemnified" against the loss covered in the policy.
When insured parties experience a loss for a specified peril, the coverage entitles the
policyholder to make a claim against the insurer for the covered amount of loss as
specified by the policy. The fee paid by the insured to the insurer for assuming the risk
is called the premium. Insurance premiums from many insureds are used to fund
accounts reserved for later payment of claims in theory for a relatively few claimants
and for overhead costs. So long as an insurer maintains adequate funds set aside for
anticipated losses (called reserves), the remaining margin is an insurer's profit.
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Liability coverage, for the legal responsibility to others for bodily injury or
property damage
Medical coverage, for the cost of treating injuries, rehabilitation and sometimes
lost wages and funeral expenses
Gap insuranc
Gap insurance covers the excess amount on your auto loan in an instance where your
insurance company does not cover the entire loan. Depending on the company's specific
policies it might or might not cover the deductible as well. This coverage is marketed
for those who put low down payments, have high interest rates on their loans, and those
with 60-month or longer terms. Gap insurance is typically offered by a finance
company when the vehicle owner purchases their vehicle, but many auto insurance
companies offer this coverage to consumers as well. If you are unsure if GAP coverage
had been purchased, you should check your vehicle lease or purchase documentation.
Health insuranceHealth insurance policies cover the cost of medical treatments. Dental
insurance, like medical insurance, protects policyholders for dental costs. In most
developed countries, all citizens receive some health coverage from their governments,
paid for by taxation. In most countries, health insurance is often part of an employer's
benefits.
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LIFE INSURANCE
In 1870 two British life insurance companies entered in India and attempted to do life
insurance business on Indian lives. After that many Indian & foreign companies started
business in India and by the year 1955 there were 255 insurance companies operating in
India and transacting the business to the extent of Rs 200 crores. Due to the following
reasons the Government decided to nationalize the life insurance industry w.e.f 1/7/1956.
1. No full guarantee to the Policyholders (who are insured).
2. The concept of trusteeship (confidence) was lacking.
3. Many insurance companies went into liquidation (bankrupt).
4. There was malpractice in the business.
5. Non-Spreading of life insurance.
6. No insurance in rural areas.
7. No group insurance
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8. No social security
To overcome the abovementioned problems the life insurance business was nationalized
and formed Life Insurance Corporation with following features: 1. The Central Govt.
guaranteed the Policyholders through the LIC. 2. Being a Corporation formed under
Special Act Passed by the Parliament therefore the public can trust. 3. The LIC cannot be
liquidated without the order of the Central Govt. 4. Under the LIC Act, all day-to-day
functions of the Corporation and the method of Investment in Govt. Securities were
defined. Therefore, the malpractices were eliminated. After the nationalization the life
insurance business has grown substantially in very first year i.e. from Rs 200 crore upto
1956 to Rs 328 crores in 1957 and till privatization in 2000 the business was transacting
worth Rs 73436 crores.
GENERAL INSURANCE
Prior to nationalization of the General Insurance Business in 1972 by enactment of the
General Insurance Business Nationalization Act 1972 (GIBNA 1972) there were 55 Indian
Companies and 52 non-Indian Companies carrying of the business of General Insurance in
India. Before the nationalization the total premium written by these companies was Rs.170
crores as on 1971. At that time the key Economic indicators were as follows: Gross
Domestic Product Rs. 36503 Crores Per Capita Income Rs. 675 Crores Population 541 mns
To understand the why of nationalization in the first place it is sufficient to read the
following excerpts from the speech of the then Finance Minister Mr.Y.B.Chavan. The
primary objective of nationalization of general Insurance was to make it meaningful to the
common man, to carry its message to the remotest corner of the country and to give it its
rightful place in the economy of the country.
When it was in the private sector it was a mere handmaid to trade and industry and
served to cater to the interests of a limited clientele. Worse still it functioned in a manner
favoring the interests of a few at the expense of, needless to say, the majority. There were
allegations of malpractices on a big scale. It was the objective of nationalization to
remove these malpractices and usher in an era of Insurance run on sound business
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principles and functioning on healthy and egalitarian lines. The emphasis should be on
spreading the message of Insurance as widely as possible and on ensuring that it gives the
right weightage to the weaker sections of the society.
The principle of competition must have its useful role to play, but not at the expense of
unhealthy rivalry. General Insurance is a service and proper and efficient service is due to
the policyholder as a matter of right. The Corporation exists for the benefit of the
policyholder. Business must cease to work under purely mercenary motives. Whenever,
one feels the need for protection against an unpredictable contingency, a suitable Insurance
cover should be available. No excuse should be given that a particular cover is not
conventionally given or that other markets of the world do not give it. Healthy employeremployees relationship is of vital importance to achieve the main objectives of
nationalization. It will be necessary for the Corporation to review the rating structure in
order to ensure that all classes of the policyholder receive a fair deal and the equitable rate
of premium.
The Act led to the formation of the General Insurance Corporation (GIC) and the
shares of the Indian Insurance Companies and the units of other Insurance Companies
operating in India along with the General Insurance business of LIC were transferred to the
GIC. The Indian companies became subsidiaries of GIC and the non-Indian Companies
were transferred to 4 companies selected as flag companies to operate from 4 zones as
under: 1. National Insurance Co. Ltd., with its Head Office at Calcutta. 2. The New India
Assurance Co. Ltd. with its Head Office at Mumbai. 3.
The Oriental fire & Insurance Co. Ltd., with its Head Office at New Delhi (from 1974)
(now named as The Oriental Insurance Co. Ltd.) 4. United India fire & General Insurance
Co. Ltd., with its Head Office at Madras (now named United India Insurance Co. Ltd.) The
basis of allocation of the 107 companies was the geographical areas of operation i.e. south
based companies were allotted to United India, the North based to the Oriental Insurance,
the West based to the New India Assurance and East based National Insurance. The 4 flag
companies became the subsidiaries of General Insurance Corp. with effect from
1/1/1973.The total business has gone from Rs 1145 crores in 1973 to Rs 9522 crores in
2000.
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iii)
iv)
businesses,
The implementation of a solvency regime that ensures continuous
v)
vi)
vii)
Chapter 2
2.1 IRDA act 1999
Insurance Regulatory & Development Authority (IRDA) Composition of
Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority
The Authority is a ten member team consisting of
(a)
AChairman;
Duties, Powers and Functions of IRDA:Section 14 of IRDA Act, 1999 laysdown the duties,powers and functions of IRDA..
(1)
Subject to the provisions of this Act and any other law for the time being in force,
the Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business. Without prejudice to the generality of the
provisions contained in sub-section, the powers and functions of the Authority shall
include, A. Issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration
B. Protection of the interests of the policy holders in matters concerning assigning
of policy, nomination by policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance;
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cog
inertia
and
image
building
improving
market
share,
educating,
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discusses various issues relating to life insurance. The author insists on the
importance of life insurance and discusses on various strategies of life insurance.
Mishra, M.N. (1987) made a study to appraise the strategies of Life
Insurance Company. While reviewing the strategies, the author felt that before 1960
Life Insurance Company did not give much attention to the objective of customer
satisfaction, but from 1980 onwards the corporation has taken several remedial
measures to provide better customer service and improve the customer satisfaction.
Ashis Deb Roy (1987) in his article entitled We Care for our Customers
has examined the nature and importance of better customer services to policyholders
and has emphasized the need for quality in service. He has given a detailed note on
the various steps to be taken by Life Insurance Company to improve the customer
service such as training programmes conducted by Company to its agents and
employees, opening new branches and introduction of computers in insurance branch
The researcher has used descriptive type of research for the project. Descriptive
research is very common in business and other aspects of life. In fact, most of the marketing
research youve heard about or participated in can be categorized as descriptive research.
With a descriptive research design we are usually trying to describe some group of people or
otherentities. Descriptive research, is used to describe characteristics of a population or
phenomenon being studied.
Descriptive research does not fit neatly into the definition of either quantitative or
qualitative research methodologies, but instead it can utilize elements of both, often within
the same study. The term descriptive research refers to the type of research question, design,
and data analysis that will be applied to a given topic. Descriptive statistics tell what is, while
inferential statistics try to determine cause and effect.
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Chapter 3
3.1 Company Profile
Tata AIG General Insurance Company Limited is an Indian general insurance company,
and a joint venture between the Tata Group and American International Group (AIG). Tata
Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26
percent. Tata AIG General Insurance Company, which started its operations in India on 22
January 2001, provides insurance to individuals and corporates. It offers a range of general
insurance products including insurance for automobile, home, personal accident, travel,
energy, marine, property and casualty as well as several specialized financial lines. The
Company's products are available through various channels of distribution
like agents, brokers, banks (through bank assurance tie ups) and direct channels
like Telemarketing, Digital Marketing, worksite etc.
History
Tata AIG General Insurance Company Limited (Tata AIG General) is a
business Collaboration of the Tata Group and American International Group, Inc. (AIG). Tata
AIG General merges two major finance organizations i.e. the Tata Group's prominent
headship place in India and AIG's global presence as the world's leading international
insurance and financial services Organization. This joint venture has started its operations
in India from 22 January 2001. The company provides both corporate and personal insurance
services. The organization offers an array of general insurance covers which are well thoughtout under commercial and consumer demands. The commercial sector
covers Energy, Marine, Property and several specialized Financial covers, while the
consumer insurance service offers a variety of general Insurance products such as insurance
for Automobiles, personal accident, casualty, home, health and travel. The company has made
the availability for its services from end to end channels of distribution like agents, banks
(through bancassurance tie ups), brokers and direct channels like tele-marketing, ecommerce, website, etc. The headquarters of the company is situated in Mumbai. The
company has provided the employment to more than 2000 qualified professionals across the
country in more than 160 locations.
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Profit goes up 402 percent - from Rs.51.79 crore to Rs. 260.31 crore
and AIA Group (AIA), today announced that it has changed its name to Tata AIA Life
Insurance Company (Tata AIA Life).
The company was set up as a joint venture between the leading Indian conglomerate Tata
group and the leading international insurance organisation American International Group
(AIG). It was licensed to operate in India on February 12, 2001, and started operations on
April 1, 2001. Since its inception, Tata Sons owns 74 percent stake in joint venture, with the
remaining 26 percent share held by AIA, a 100 percent owned subsidiary of AIG at that time.
In 2010, AIA went public in Hong Kong and raised $20.51 billion through an initial
public offering (IPO). The IPO was the third largest globally at the time of listing, after which
AIA emerged as the largest independent publicly listed Pan-Asian life insurance group in the
world. AIA has a strong heritage and fundamentals of over 90 years in the Asian insurance
market. It has wholly-owned main operating subsidiaries or branches in 14 markets in Asia
Pacific.
To create a uniform identity of AIA owned companies post this IPO, the two promoters of
this joint venture have chosen to change the companys name to Tata AIA Life. However, the
company makes this transition just in its name; its single-minded focus in protecting the
financial well-being of its customers remains unchanged.
Commenting on the occasion, Farrokh K Kavarana, chairman, Tata AIA Life, said, The
Tata group, along with our valued partner AIA, continue to remain committed to the Indian
market and our valued customers and partners through our renamed entity Tata AIA Life.
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Over the past 11 years, we as a company have strived to build a solid foundation of providing
financial protection to our customers. We are confident that this strong foundation will enable
us to stand unwaveringly in good stead and realise full potential of the vast Indian market.
Huynh Thanh Phong, executive vice president and regional chief executive, AIA, said, In
order to reflect the true brand identity of AIA and communicate its unique market position,
history and its ongoing commitment to customers and partners in Asia Pacific region, the
promoters of the joint venture have chosen to change the name of the company from Tata
AIG Life Insurance to Tata AIA Life Insurance. The rechristened Tata AIA Life will continue
to focus on building a premier agency sales force to meet the savings and protection needs of
the customers in India with protection-centric products.
Suresh Mahalingam, managing director, Tata AIA Life, elaborated, While we make
this transition in our name, nothing else will change. The promoters, the distribution network,
the teams, the products, the technology and more importantly, our commitment towards
putting the customers at the centre of everything we do, remain unchanged. The foundation of
trust that our company has been built upon will continue to be strengthened with the vast
expertise that AIA brings with over 90 years of leadership in the life insurance business in the
Asia Pacific region
Performance of Tata AIA Life for the financial year 2011-12
Tata AIA Life also announced its financial results for the fiscal 2011-12, posting a net profit
of Rs260.31 crore.
The total premium income for the financial year ending March 2012 stood at Rs3,630 crore
as against Rs3,985 crore posted for the financial year 2010-11. Of this, the new business
premium collection stood at Rs940 crore. The renewal premium for the same period was at
Rs2,690 crore, as against Rs2,653 crore in the last fiscal. Traditional business accounted for
45 percent of the new business premium as against 29 percent in the last fiscal.
During the financial year, the company further enhanced its operating efficiencies resulting in
the reduction of the operating expenses to total premium ratio to 21 percent against 24
percent in the previous financial year.
The total assets under management of the company has increased by 15 percent to Rs14,519
crore from Rs12,622 crore in the last fiscal. As on March 31, 2012, the paid-up capital of the
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Tata AIG General Insurance offers a wide range of insurance policies to fulfill the common
man needs. Tata AIG offers insurance plans in different domains like Motor, Travel, Health,
Individual Personal Accident, Home, Lifestyle Insurance. Tata Aig Health Insurance plan is
one of the most important general Insurance plans offered by Tata AIG.
Tata AIG Health Insurance Plans
Tata AIG General Insurance offers Health Insurance plans. Here we are providing an
overview of Coverages, Benefits and Key features offered by Tata AIG Health Insurance
Policies.
List of Tata AIG General Health Insurance Plans offered by Tata AIG General
Insurance
1.
2.
3.
4.
5.
6.
7.
8.
9.
10. Tata AIG Group Accident and Sickness Hospital Cash Policy.
Overview of Tata AIG Health Insurance Plans
Tata AIG Health Insurance plans to help you to manage the medical costs the charges like
surgeons fees, diagnostic tests, etc. that may turn out to be expensive and protect your family
31 | P a g e
against financial emergencies. Todays domain demands more of anyone looking to construct
a mark in this competitive world. Somewhere between the pressure to meet demands and the
burning desire to excel, ones health is often the first of the compromises.
Share capital
Reserves and surplus
Shareholders Funds
Non-current liabilities
Long-term provisions
.................................................................................................................................................
(a) Trade payables
(b) Other current liabilities
(c) Short-term provisions
Current Liabilities
TOTAL ..............................................................................................................................................
5,509.
209,434.
214,944.
5,509.5
201,047.
206,557.
435.6
3
467.9
138.2
11,327.
11,933.
227,313.
36
357.3
4
668.3
157.4
11,015.
11,841.
218,755.
68
23.2
0.89
223,184.
312.3
223,521.
48.24
1,232.66
730.73
1,780.73
3,792.36
227,313.
ASSETS
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18.7
0.54
192,365.
311.5
192,696.
21,796.1
176.65
1,150.85
621.65
2,314.22
26,059.5
218,755.
Other income
16.93
....................................................................
....................................................................
Total Revenue ..........................................................................................................................................................................
216.94
23,111.71
22,304.67
954.30
725.68
1.04
10.90
554.05
800.25
1,509.39
1,536.83
21,602.32
20,767.84
Year ended
31.3.2015
2,951.09
(` in lacs)
year ended
31.3.2014
2,900.00
12,997.41
-
12,674.35
-
10,097.37
18,651.23
9,413.38
17,867.84
16.93
216.94
33.85
23,111.71
32.43
22,304.67
954.30
725.68
1.04
10.90
554.05
800.25
1,509.39
1,536.83
21,602.32
20,767.84
2,951.09
2,900.00
18,651.23
17,867.84
33.85
32.43
Expenses :
Employee benefits expense .................................................................................................................................................
Depreciation and amortisation expenses
.......................................................................................................................
Other expenses .........................................................................................................................................................................
Total Expenses
Profit before tax ........................................................................................................................................................................
Tax expense :
Particulars
Other income
.............................................................................................................................................................................
Earnings
per equity
share (Face Value `10/- per share)
.............................................................................................
Basic and Diluted (`)................................................................................................................................................................
Total Revenue ..........................................................................................................................................................................
Significant Accounting Policies ...........................................................................................................................................
Expenses :
Accompanying Notes are an integral part of the Financial Statements.
Employee benefits expense .................................................................................................................................................
Depreciation and amortisation expenses
.......................................................................................................................
Other expenses .........................................................................................................................................................................
Total Expenses
Profit before tax ........................................................................................................................................................................
Tax expense :
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Chapter 4
4.1 Conclusion
After the deep study of insurance sector of India, I can tell that this is the sector, which has
most business opportunities perhaps in India. Insurance industry is one of the fastest sectors
in India.Insurance sector has been growing by 25% to 30% and it is expected to increase by
50% in coming 5 years. After the opening up of the insurance sector, it has become much
competitive and insurance awareness among people has increased. As far as the
comparison of Reliance Life Insurance and other players is concerned, there are both positive
as well as negative impacts on both the sides. For Reliance Life Insurance, the negative
aspect is that its market share is low. For private players the negative aspect is that they
have to fight with the public sector giant which is established player with a high brand value.
But the positive impact is that the life insurance awareness has increased and the business
of Reliance Life Insurance has increased.
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4.2 Bibliography
BOOKS
Author name
CA (Dr.)Varsha Ainapure
Book Name
MANAN PAKSHAN
WEBSITES
www.google.com
www.wikipedia.com
www.scribd.com
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