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ORGANISATION GUIDE INSTITUTIONAL GUIDEMr. AMAN TANDON Mr.ANZUM ZIA RIZVI

(Sales Managers) (Assistant professor)Submitted by

ABHISHEK SRIVASTAVARoll No. : 1212470005

(3rd Semester 2012 2014)

SUMMER PROJECT REPORT

ON

A STUDY OF FINANCIAL STATEMENTS OF HDFC LIFE INSURANCEPrepared for and presented to

INSTITUTE OF CO-OPERATIVE &

CORPORATE MANAGEMENT,RESEARCH & TRAINING, LUCKNOW


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COMPANY PROFILE HDFC Standard Life Insurance Company Ltd. is one of

India's leading private insurance companies, whichoffers a range of individual and group insurancesolutions. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFCLtd.), India's leading housing finance institution and aGroup Company of the Standard Life, UK. HDFC as onDecember 31, 2007 holds 72.38 per cent of equity in thejoint venture.


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HDFC STANDARD LIFE INSURANCE PARENTAGE HDFC is India leading housing finance institution and has helped

build more than 23, 00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under management crossed Rs.

36,000 Cr.

As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores.The depositor base now stands at around 1 million depositors. Rated AAA by CRISIL and ICRA for the 10th consecutive year Stable and experienced management High service standards Awarded The Economic Times Corporate Citizen of the year Award for

its long-standing commitment to community development. Presented the Dream Home award for the best housing finance

provider in 2004 at the third Annual Outlook Money Awards.


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. TYPES OF LIFE INSURANCE PLAN WHY DO WE NEED PROTECTION PLANS? 1. HDFC Term Assurance Plan 2. HDFC Loan Cover Term Assurance Plan

3. HDFC Home Loan Protection Plan 1. HDFC Childrens Plan 2. HDFC YoungStar Super 3. HDFC YoungStar Super Suvidha 4. HDFC YoungStar Supreme Suvidha

5. HDFC SL YoungStar Champion Suvidha HDFC Personal Pension Plan HDFC Pension Super

HDFC Pension Supreme HDFC SL Pension Champion


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SWOT ANALYSIS Strengths:

Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known plans in Insurance sector

Weaknesses:

Lower scope of investing in technology and achieving economies of scale, especially in small sectors Low exports levels These products narrow the scope of Insurance products in rural and semi-urban market.

Opportunities: Rising income levels, i.e. increase in power of customers Large domestic market- a population of over one billion. Export potential

Threats: Tax and regulatory structureCompetitorNew Entrance.


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OBJECTIVE OF THE STUDY The basic objective of study is to know the financial

position of the company.

To evaluate and analysis of profit and loss a/c and

balance sheet through ratios. To know the borrowing of the company as well as the

liquidity position of the company.

To study the current assets and current liabilities.

To study the profit of the business.

To know overall position of company through ratios.

To identify problems if any and suggest solution.


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RESEARCH METHODOLOGY Research Design: A research design is a type of blueprint prepared on various types of blueprints available

for the collection, measurement and analysis of data. A research design calls fordeveloping the most efficient plan of gathering the needed information. The design of a

Research study is based on the purpose of the study. A research design is thespecification of methods and procedures for acquiring the Information needed. It is theoverall pattern or framework of the project that stipulates.

The basic type of research used to prepare this report is; Descriptive Sampling:

An integral component of a research design is the sampling plan. Specifically, it Addresses three questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to select them (The Sampling Procedure)


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Method of Sampling:-

Probability Sampling is also known as random sampling or chance sampling. Under thissampling design every individual in the organization has an equal chance, or probability, ofbeing chosen as a sample. This implies that the section of sample items is independent of thepersons making the study that is, the sampling operation is controlled objectively so that theitems will be chosen strictly at random. Non Probability Sampling is also known as deliberatesampling, purposeful and judgmental sampling. Non-Probability Sampling is that which doesnot provide every individual in the Organization with a known chance of being included in thesample.

Data collection method:-

Primary data

Secondary data

Source of Data

I used secondary data to analysis financial position of the company.

The secondary data, which I used that are

Balance sheet

Other financial data provide by the company regarding profit & loss a/c.

Method of data collection

Observation Experimentation

Personal Interviewing

Case study method

Reports of Hdfc life

Balance sheet


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DATA ANALYSIS AND INTERPRETATION

2012 = 1013.94/695.70 = 1.457 : 1

2011 = 689.12/539.05 = 1.278 : 1

2010 = 477.72/471.73 = 1.013 : 1

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2010 2011 2012

1.013

1.278

1.457

Q1.) Compare Current Ratio of HDFC life Insurance for 3 years?

Interpretation:-Ideal current Ratio is 2:1Though there is an increasing trend in the companys current ratio inthe past 3 years.Current assets of the organization is more than the current liabilitieswhich is to be paid with in the year.Current ratio of the organization is moving in favorable condition i.e.

in ideal ratio .


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Q2.) Compare the Quick Ratio of HDFC life Insurance for 3 years.?

Quick ratio = Quick Asset/Current Liability

2012 = 485.37/695.70 = 0.6976 : 1

2011 = 228.54/539.05 = 0.424 : 1

2010 = 179.28/471.73 = 0.380 : 1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2010 2011 2012

0.38

0.424

0.6976

Interpretation:-

Ideal Quick Ratio is 1:1

There is an increasing trend in the companys Quick ratio in the past 3 years.

Liquidity ratio is highest in the year 2012 i.e. 0.6976 which is nearly close to ideal ratio.


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Q3.) Compare the Inventory Turnover Ratio of HDFC life Insurance for 3 years?

Inventory Turnover Ratio = Sales/Closing Stock

2012 = 1326.46/528.57 = 2.5 times

2011 = 1142.80/460.58 = 2.48 times

2010 = 1016.32/298.44 = 3.40 times

0

0.5

1

1.5

2

2.5

3

3.5

2010 2011 2012

3.4

2.48 2.5

Interpretation:-

The company had highest inventory turnover ratio in the year 2010, thought it was reduced in the

year 2011 and increased in year 2012 with a short margin.

Company improve itself from last years decline.

Companys inventory ratio is improving as its sales is increasing every year which is favorable for

the organization.


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QUES4-Compare the Debtor Turnover Ratio of HDFC life Insurance for 3 years?

2012 = 1127.49/ 224.17 = 5.03

2011 = 971.38/202.46 = 4.80

2010 = 863.87/103.48 = 6.62

0

1

2

3

4

5

6

7

2010 2011 2012

6.62

4.8 5.03

Interpretation:-

The company had lowest credit sales in 2011 and highest in the year 2010.

The company has increased its credit sales in 2010, 2012 which has resulted in

increase in debt turn over ratio as 6.63 in 2010 and 5.03 in 2012.

The companys maintain a moderate debtor turnover ratio i.e. 5.03


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FINDINGS The companys Current Ratio is 1.457 : 1 which is Increasing Continuously. And It is going close to the Ideal Ratio 2:1. Companys Quick Ratio is 0.698 : 1 which is Increasing Continuously. And it is going close to the Ideal Ratio 1:1. The company had shown an increasing trend in gross profit ratio in last 3 years. In 2010 the company had lowest fixed turnover ratio and highest in the 2012. It shows that the fixed Assets are properly used from the initial year The company shows a decreasing trend in Inventory turnover. Companys debtors are increasing with a slow rate every year, this analysis shows that the company

have moderate credit policy. The company had highest capital turnover ratio in 2011. It shows that the company utilize its capital employed efficiently in 2011. But due to some reasons it decrease again in 2012.

In 2010 the company had very nominal working capital i.e only 5.99 lacs But it increases in next years and reach on 150.07 lac with the in 2011. And 318.24 lac in 2012. In 2010 the company had very nominal working capital i.e only 5.99 lacs But it increases in next years and reach on 150.07 lac with the in 2011. And 318.24 lac in 2012.


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SUGGESTIONS According to its turnover and achievements company is running in its sound

position at its level.

But it is in short run, if company wants to improve its level of business andmake a good brand company must have to do some new innovations.

There is big need of advertising and promotion of the product and company.

However company gives ad time to time in the news papers but Companyshould adopt electronic advertisement like; Television and Radio, Internet etc.


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CONCLUSION Firms liquidity position is satisfactory and meets out

its obligations.

The sale of the company fluctuated due to notutilizing its resources properly.

There is a need to improve the level of the company.

Overall company is in sound Position according to its

level.


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LIMITATIONS OF THE STUDY Primary data might be too realistic and may suffer from personal

biases of the respondents.

The study may suffer from financial constraints and the limitedsample area.

The time factor is also a constraint because the time span forconducting the research is very short.

Subjective nature of the study may affect its interpretation bydifferent individuals.

It is very difficult to check the accuracy of the informationprovided.

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