Identification of Potential Insurance Advisor

at
Birla Sun Life Insurance
Summer Training
Submitted to
Dr. A. P. J. Abdul Kalam Technical University, Lucknow
In partial fulfillment of the requirements of the degree of
Master of Business Administration

Prepared by:
AlankritaKharwar
MBA 3rd Semester

Training Supervisor:
Mr. AwanishRai
Head of Insurance Sector

Roll Number: 1504070006

Birla Sun Life Insurance, Mirzapur

2016-17

Department of Business Administration

Technical Education & Research Institute
Post-Graduate College, Ghazipur 233001 (U.P.)
Certificate

This is to certify that AlankritaKharwar, pursuing MBA 3rd

Semester from this institute, has prepared the summer training project
report entitled Identification or Potential Insurance Advisor At
Birla Sun Life Insurance in partial fulfillment of the requirements of
the degree of Master of Business Administration from Dr. A.P.J Abdul
Kalam, Lucknow, for the session 2016-2017.
This report is based on summer training project undertaken by
AlankritaKharwar at BSLI in Mirzapur under the supervision of
Mr. AwanishRai during the period 6 week of Training and fulfills the
requirements of regulations relating to the nature and standard of MBA
course of Dr. A.P.J Abdul Kalam Technical University.
I recommend that this project report may be sent for evaluation.

Rahul Anand Singh

Head, Dept. of Business Administration

Declaration

I, AlankritaKharwar, hereby declare that this summer training

project report entitled Identification or Potential Insurance Advisor
At Birla Sun Life Insurance has been prepared by me on the basis of
summer training done at Safe Express & Delhi under the during the
period 6 week of training under the supervision of Mr. AwanishRai.
This project report is my bona fide work and has not been
submitted in any form to any University or Institute for the award of any
degree or diploma prior to the under mentioned date. I bear the entire
responsibility of submission of this project report.

30th August 2016

AlankritaKharwar
MBA 3rd Semester
Department of Business Administration
Technical Education & Research Institute
P. G. College, Ghazipur

INDEX OF CONTENTS
Preface

1-2

Acknowledgement

Chapter-1
Introduction of the company

4-73

Introduction of the topic

Chapter-2
Problem

74

Objective

75

Importance

76

Scope

77

Chapter-3
Research Methodology

78-82

Chapter-4
Data analysis &Interpretation

83-102

Chapter-5
Finding &Recommendation

103-104

Chapter-6
Conclusion &Limitation

105-106

Bibliography

107-108

Annexure

108-111

Acknowledgement
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the
development of this work and who influenced my thinking, behavior, and acts during the course
of study.

I express my sincere gratitude to Mr. Rahul Anand Singh, ( MBA HOD Technical Education
and Institute )worthy Principal for providing me an opportunity to undergo summer training at
Business Standard.

I am thankful to Mr. AwanishRai for his support, cooperation, and motivation provided to me
during the training for constant inspiration, presence and blessings.

I also extend my sincere appreciation to Dr. Neetu Singh(Lecturer and training and
placement Incharge )who provided his valuable suggestions and precious time in
accomplishing my project report.

Lastly, I would like to thank the almighty and my parents for their moral support and my friends
with whom I shared my day-to-day experience and received lots of suggestions that improved
my quality of work.

AlankritaKharwar

Preface
The first real insight of an organization for management student comes only during his
preparation of project work because student first interacts with real practical work. This is first
introduction to industry and its working. This project work synthesize the theoretical concept
learn in the class room and its practical orientation in organization.
In my project I have studied theIdentification or Potential Insurance Advisor At Birla Sun
Life Insurance
The First chapter introductory stage of this research report is based on introduction of
the company it founders, objective, mission, strength, technologies and services.
The Second chapter introductory stage of this research report is based on introduction of
buying behavior its problem, objective, importance, scope, limitation and method taken in Birla
sun life insurance Privet Ltd.
The Third chapter deals with research methodology. The process of carrying out the
whole research problem is defined in it. It contains information about the objectives of the
research, methods of data collection, sampling and sample design.
The Fourth chapter is data analysis and interpretation. This is the most important
section of the project work. This section contains the analysis of all the data collected so far and
they are interpreted to produce the final conclusion. It contains all the tables and charts which
depicts the result.

The Fifth chapter contains the finding and recommendation of the research. This is
based on the data analyzed and interpreted in the previous chapter. This is the most important
section of the research report for a report is evaluated on the validity ad correctness of findings.
The Sixth chapter depicted conclusion which concludes the whole report, that is, gives a
brief description of the process employed so far. And later chapters contain bibliography. Which
describes the list of sources from where the matter and information is collected? It contains the
list of books, authors, web sites use etc.

AlankritaKharwar

Chapter-1
Introduction

Insurance Advisor
Todays insurance market is increasingly complicated, with a rapid trend toward the
diversification andcommoditization of insurance products. As insurance companies diversify
their product portfolios, agentsare pressured to become familiar with a wide variety of strategies
and products. Because many agents sellproducts and services from different providers,
companies are strongly motivated to provide an efficient andeasy way to sell their services.
Agent loyalty is critical to the carrier who relies on independent agents.
Meanwhile, industry data shows that competitive differentiation between products continues to
decline.Who feels the strain? Both carriers and agents, who compose the key distribution
channels, faced withmounting reassures, both agents and providers must focus on gaining a
competitive advantage. In thisincreasingly competitive battle for market share, it is vital for
independent agencies and brokers and theircarriers to position themselves as aggressive
competitors by making the needed investments in people,technology, branding, advertising and a
disciplined Sales process. When it comes to building and maintaininga base of satisfied
insurance clients, theres no substitute for face or phone time. In fact, personal servicedrives
profitability for many insurance agencies and agents. In a recent survey of insurance clients,
morethan half of consumers cited personalized service and human interaction as the factors
driving loyalty totheir agent. Yet as more customers use alternate channels, such as the Web, call
centers, and mobile devicesto research insurance options and apply for and manage policies,
insurance agencies must find new ways toachieve their ultimate goal of creating loyal and
committed clients.

Independent insurance agents, also known as insurance sales agents or "producers", typically
sell a variety of insurance and financial products, including property insurance and casualty
insurance, life insurance, health insurance, disability insurance, and long-term care insurance.
Property and casualty insurance agents sell insurance policies that protect individuals and
businesses from financial loss resulting from automobile accidents, fire, theft, storms, and other
events that can damage property. For businesses, property and casualty insurance can also cover
injured Workers Compensation Insurance, product liability claims, or medical malpractice
claims.
Independent insurance agents typically represent a number of insurance companies, or "carriers",
and sell the products that most appropriately meet the needs of their clients. Independent agents
typically are very well trained and knowledgeable of the complexities of the insurance market
and insurance law.[1] Their expertise allows them to advise their clients about appropriate
amounts of insurance and insurance coverages for their particular needs. Often, independent
insurance agents will work with insurance intermediaries, which obtain quotes from multiple
insurance providers and passes them off to the independent agent. Working with an insurance
intermediary service allows the independent agent to review many quotes and offer their clients
the best policy options available. For their efforts, independent agents are paid a commission
(remuneration).[2]
In addition to insurance policies, agents often sell mutual funds, annuities, and products that
address wealth management, retirement and estate planning. Independent agents must be
licensed by the states in which they sell insurance and financial products.[2]

There are a number of major trade organizations that support the interests and needs of the
independent insurance agent, including Agents For Change,[3] The National Organization of Life
and Health Agents (NOLHA),[4] the Independent Insurance Agents & Brokers of America (The
Big "I"),[5] and the National Association of Professional Insurance Agents (PIA).[6]
Independent agents are independent contractors for the insurance companies they represent.
Several companies may authorize the agent to sell for them, but the agent remains an
independent businessperson. While the agent collects commissions, they do not collect a salary
from the companies they represent. On average, independent agents work with thirteen property
and casualty and six life and health insurance companies on a regular basis.[7]
Independent agents own and control their accounts, policy records, and renewals. If an
independent agents contract with a particular insurance company terminates, the agent retains
the rights to active accounts and may place them with another insurer.
Competition exists between exclusive agents and independent agents. Exclusive agents, who are
salaried employees of the insurance company, write a majority of the personal lines business. [8]
However, because of the complexities involved in commercial risks, independent agents capture
approximately 80 percent of the commercial lines market. [9] It is having access to multiple
markets that gives independent agents a competitive advantage in commercial lines.
To add to an independent agents competition pool, many insurance companies are direct
competitors to the agents they appoint. For example, Progressive Insurance spends nearly $300
million a year in advertising directly to the public. Yet, Progressive is the countrys largest writer
of private passenger auto insurance through the independent agent distribution channel.

Go beyond being an Advisor,

Be a Protection Counselor
A Protection Counselor discovers and understands the needs of the customers along with them
and co-creates the perfect solution protecting their goals and risks in life.
A Protection Counselor is an expert who listens very carefully to what the customers say and
applies the best possible solution, so that their trust in him develops even further. And, trust is not
built through behavior; it is built through strengthening and enabling the other person.

Advisor Portal
The Advisor Portal on the Birla Sun Life Mutual Fund (BSLMF) website provides you, the
Advisor,
24x7 access to your business with us.

Register now for instant access

The portal contains 5 main sections - Investor Section, Privilege Club, SIP Tracker,
Reports & My Profile

Investor

Section

This

provides

you information

about

your

investors

List of your investors with their contact details

Investors portfolio

Investor transaction history

Most importantly it allows you to download your investors Account Statement &Capital
Gains Statement

Privilege Club - Provides you details on your current privilege club points & status along with
the benefits available with the club. It also shows your next Privilege club points & status.

SIP

Tracker

This

allows

you

to

keep

track

which are about to expire in the coming three months,

currently active&

those that have expired in the last 3 months.

of

your

investors

SIPs

Reports - Allows you to analyse your business with BSLMF through various reports basis
scheme, asset class, investor, transaction type etc

My Profile - Through this section you can

View your contact details updated with CAMS,

Update & view additional data (anniversary date etc),

Subscribe to NAVs

Subscribe to account statement via email / sms on behalf of your investors and

Update your advisor portal password

So what are you waiting for? Register now for instant access. If you're already a registered
user, please login to access the portal

How

to

register

for

the

Advisor

Portal

To register for the advisor portal you need the following details handy - ARN code & ARN

name.

On entering these two details correctly, you would need to enter / validate any 4 out of these 6
fields that you would have submitted to CAMS

ARN Email address

Pin Code

PAN

Mobile / Landline no

Bank Name and

A/C number

(Birla Sun Life Insurance Pvt. Ltd.)

Introduction of insurance
Life insurance (or commonly life assurance, especially in the Commonwealth) is a contract
between an insured (insurance policy holder) and an insurer or assurer, where the insurer
promises to pay a designated beneficiary a sum of money (the "benefits") in exchange for a
premium, upon the death of the insured person. Depending on the contract, other events such as
terminal illness or critical illness may also trigger payment. The policy holder typically pays a
premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also
sometimes included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the
insured events. Specific exclusions are often written into the contract to limit the liability of the
insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:

Protection policies designed to provide a benefit in the event of specified event,

typically a lump sum payment. A common form of this design is term insurance.

Investment policies where the main objective is to facilitate the growth of capital by
regular or single premiums. Common forms (in the US) are whole life, universal life, and
variable life policies.

History of insurance
Insurance began as a way of reducing the risk to traders, as early as 2000 BC in China and 1750
BC in Babylon. An early form of life insurance dates to Ancient Rome; "burial clubs" covered
the cost of members' funeral expenses and assisted survivors financially.

Amicable Society for a Perpetual Assurance Office, established in 1706, was the first life
insurance company in the world.
Modern life insurance policies were established in the early 18th century. The first company to
offer life insurance was the Amicable Society for a Perpetual Assurance Office, founded in
London in 1706 by William Talbot and Sir Thomas Allen. The first plan of life insurance was
that each member paid a fixed annual payment per share on from one to three shares with
consideration to age of the members being twelve to fifty-five. At the end of the year a portion of
the "amicable contribution" was divided among the wives and children of deceased members and
it was in proportion to the amount of shares the heirs owned. Amicable Society started with 2000
members.
The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the
necessary mathematical and statistical tools were in place for the development of modern life
insurance. James Dodson, a mathematician and actuary, tried to establish a new company that
issued premiums aimed at correctly offsetting the risks of long term life assurance policies, after
being refused admission to the Amicable Life Assurance Society because of his advanced age.

He was unsuccessful in his attempts at procuring a charter from the government before his death
in 1757.
His disciple, Edward Rowe Mores, was finally able to establish the Society for Equitable
Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it
pioneered age based premiums based on mortality rate laying the framework for scientific
insurance practice and development and the basis of modern life assurance upon which all life
assurance schemes were subsequently based.
Mores also specified that the chief official should be called an actuary - the earliest known
reference to the position as a business concern. The first modern actuary was William Morgan,
who was appointed in 1775 and served until 1830. In 1776 the Society carried out the first
actuarial valuation of liabilities and subsequently distributed the first reversionary bonus (1781)
and interim bonus (1809) among its members. It also used regular valuations to balance
competing interests. The Society sought to treat its members equitably and the Directors tried to
ensure that the policyholders received a fair return on their respective investments. Premiums
were regulated according to age, and anybody could be admitted regardless of their state of
health and other circumstances.

Life insurance premiums written in 2005

The sale of life insurance in the U.S. began in the late 1760s. The Presbyterian Synods in
Philadelphia and New York City created the Corporation for Relief of Poor and Distressed
Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar
fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were
started, but fewer than half a dozen survived. As the United States grew as a nation, its military
presence increased on its own continent and became mobile on the high seas. Military officers
banded together to found both the Army (AAFMAA)and the Navy Mutual Aid Association(Navy
Mutual) after the widely publicized plight of widows and orphans left stranded in the West after
the Battle of the Little Big Horn, June 25, 1876, and U.S. sailors had died while at sea, leaving
families back home to fend for themselves.
Market Trends-According To A Study By Swiss Re, The EU Was The Largest Market For Life
Insurance Premiums In 2005, Followed By The USA And Japan.

Overview
Parties to Contract
There is a difference between the insured and the policy owner, although the owner and the
insured are often the same person. For example, if Joe buys a policy on his own life, he is both
the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and
he is the insured. The policy owner is the guarantor and he will be the person to pay for the
policy. The insured is a participant in the contract, but not necessarily a party to it. Also, most
companies allow the payer and owner to be different, e. g. a grandparent paying premiums for a
policy on a child, owned by a grandchild.

Chart of a life insurance

The beneficiary receives policy proceeds upon the insured person's death. The owner designates
the beneficiary, but the beneficiary is not a party to the policy. The owner can change the
beneficiary unless the policy has an irrevocable beneficiary designation. If a policy has an
irrevocable beneficiary, any beneficiary changes, policy assignments, or cash value borrowing
would require the agreement of the original beneficiary.
In cases where the policy owner is not the insured (also referred to as the celli qui vat or CQV),
insurance companies have sought to limit policy purchases to those with an insurable interest in

the CQV. For life insurance policies, close family members and business partners will usually be
found to have an insurable interest. The insurable interest requirement usually demonstrates that
the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents
people from benefiting from the purchase of purely speculative policies on people they expect to
die. With no insurable interest requirement, the risk that a purchaser would murder the CQV for
insurance proceeds would be great. In at least one case, an insurance company which sold a
policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds),
was found liable in court for contributing to the wrongful death of the victim (Liberty National
Life v. Weldon, 267 Ala.171 (1957)).

Contract termsSpecial exclusions may apply, such as suicide clauses, whereby the policy becomes null and void
if the insured commits suicide within a specified time (usually two years after the purchase date;
some states provide a statutory one-year suicide clause). Any misrepresentations by the insured
on the application may also be grounds for nullification. Most US states specify a maximum
contestability period, often no more than two years. Only if the insured dies within this period
will the insurer have a legal right to contest the claim on the basis of misrepresentation and
request additional information before deciding whether to pay or deny the claim.
The face amount of the policy is the initial amount that the policy will pay at the death of the
insured or when the policy matures, although the actual death benefit can provide for greater
orlesser than the face amount. The policy matures when the insured dies or reaches a specified
age (such as 100 years old).

Costs, insurability, and underwritingThe insurer (the life insurance company) calculates the policy prices with intent to fund claims to
be paid and administrative costs, and to make a profit. The cost of insurance is determined using
mortality tables calculated by actuaries. Actuaries are professionals who employ actuarial
science, which is based on mathematics (primarily probability and statistics). Mortality tables are
statistically based tables showing expected annual mortality rates. It is possible to derive life
expectancy estimates from these mortality assumptions. Such estimates can be important in
taxation regulation.
The three main variables in a mortality table are commonly age, gender, and use of tobacco, but
more recently in the US, preferred class-specific tables have been introduced. The mortality
tables provide a baseline for the cost of insurance, but in practice these mortality tables are used
in conjunction with the health and family history of the individual applying for a policy to
determine premiums and insurability. Mortality tables currently in use by life insurance
companies in the United States are individually modified by each company using pooled industry
experience studies as a starting point. In the 1980s and 1990s, the SOA 197580 Basic Select &
Ultimate tables were the typical reference points, while the 2001 VBT and 2001 CSO tables were
published more recently. The newer tables include separate mortality tables for smokers and nonsmokers, and the CSO tables include separate tables for preferred classes.
Recent US mortality tables predict that roughly 0.35 in 1,000 non-smoking males aged 25 will
die during the first year of coverage after underwriting. Mortality approximately doubles for
every extra ten years of age, so the mortality rate in the first year for underwritten non-smoking
men is about 2.5 in 1,000 people at age 65. Compare this with the US population male mortality
rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to health or smoking status).

The mortality of underwritten persons rises much more quickly than the general population. At
the end of 10 years the mortality of that 25 year-old, non-smoking male is 0.66/1000/year.
Consequently, in a group of one thousand 25-year-old males with a $100,000 policy, all of
average health, a life insurance company would have to collect approximately $50 a year from
each participant to cover the relatively few expected claims. (0.35 to 0.66 expected deaths in
each year x $100,000 payout per death = $35 per policy). Other costs, such as administrative and
sales expenses, also need to be considered when setting the premiums. A 10 year policy for a 25year-old non-smoking male with preferred medical history may get offers as low as $90 per year
for a $100,000 policy in the competitive US life insurance market.
Most of the revenue received by insurance companies consists of premiums paid by policy
holders, with some additional money being made through the investment of some of the cash
raised from premiums. Rates charged for life insurance increase with the insured's age because,
statistically, people are more likely to die as they get older. The insurance company will
investigate the health of an applicant for a policy to assess the likelihood of incurring a claim, in
the same way that a bank would investigate an applicant for a loan to assess the likelihood of a
default. Group Insurance policies are an exception to this. This investigation and resulting
evaluation of the risk is termed underwriting. Health and lifestyle questions are asked, with
certain responses or revelations possibly meriting further investigation. Life insurance companies
in the United States support the Medical Information Bureau (MIB),which is a clearing house of
information on persons who have applied for life insurance with participating companies in the
last seven years. As part of the application, the insurer often requires the applicant's permission
to obtain information from their physicians.

Underwriters will determine the purpose of insurance; the most common being to protect the
owner's family or financial interests in the event of the insured's death. Other purposes include
estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank
loans or buy-sell provisions of business agreements are another acceptable purpose.
In the USA, life insurance companies are never legally required to underwrite or to provide
coverage to anyone, with the exception of Civil Rights Act compliance requirements. Insurance
companies alone determine insurability, and some people, for their own health or lifestyle
reasons, are deemed uninsurable. The policy can be declined or rated (increasing the premium
amount to compensate for a greater probability of a claim), and the amount of the premium will
be proportional to the face value of the policy.
Many companies separate applicants into four general categories. These categories are preferred
best, preferred, standard, and tobacco. Preferred best is reserved only for the healthiest
individuals in the general population. This may mean, that the proposed insured has no adverse
medical history, is not under medication for any condition, and his family (immediate and
extended) have no history of early-onset cancer, diabetes, or other conditions.[17] Preferred means
that the proposed insured is currently under medication for a medical condition and have a
family history of particular illnesses. Most people are in the standard category. People in the
tobacco category typically have to pay higher premiums due to the inherent health problems that
smoking tobacco creates. Profession, travel history, and lifestyle factor into whether the proposed
insured will be granted a policy and which category the insured falls. For example, a person who
would otherwise be classified as preferred best may be denied a policy if he or she travels to a

high risk country. Underwriting practices can vary from insurer to insurer, encouraging
competition.

Death proceeds
Upon the insured's death, the insurer requires acceptable proof of death before it pays the claim.
The normal minimum proof required is a death certificate, and the insurer's claim form
completed, signed, and typically notarized.If the insured's death is suspicious and the policy
amount is large, the insurer may investigate the circumstances surrounding the death before
deciding whether it has an obligation to pay the claim.
Payment from the policy may be as a lump sum or as an annuity, which is paid in regular
installments for either a specified period or for the beneficiary's lifetime.

Insurance vs. assurance

The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general,
in jurisdictions where both terms are used, "insurance" refers to providing coverage for an event
that might happen (fire, theft, flood, etc.), while "assurance" is the provision of coverage for an
event that is certain to happen. In the United States both forms of coverage are called
"insurance" for reasons of simplicity in companies selling both products. [citation

needed]

By some

definitions, "insurance" is any coverage that determines benefits based on actual losses whereas
"assurance" is coverage with predetermined benefits irrespective of the losses incurred.
Types
Life insurance may be divided into two basic classes: temporary and permanent; or the following
subclasses: term, universal, whole life, and endowment life insurance.

Term insuranceTerm assurance provides life insurance coverage for a specified term. The policy does not
accumulate cash value. Term is generally considered "pure" insurance, where the premium buys
protection in the event of death and nothing else.
There are three key factors to be considered in term insurance:
1. Face amount (protection or death benefit),
2. Premium to be paid (cost to the insured), and
3. Length of coverage (term).

Annual renewable term is a one-year policy, but the insurance company guarantees it will issue a
policy of an equal or lesser amount regardless of the insurability of the applicant, and with a
premium set for the applicant's age at that time.
Level premium term can be purchased in 5, 10, 15, 20, 25, 30 or 35 year terms. The premium and
death benefit stays level during these terms.
Mortgage life insurance insures a loan secured by real property and usually features a level
premium amount for a declining policy face value because what is insured is the principal and
interest outstanding on a mortgage that is constantly being reduced by mortgage payments. The
face amount of the policy is always the amount of the principal and interest outstanding that are
paid should the applicant die before the final installment is paid.

Permanent life insurancePermanent life insurance is life insurance that cannot be cancelled for any reason except fraud, so
long as the owner regularly pays his premiums. Any such cancellation must occur within a period
of time (usually two years) defined by law. A permanent insurance policy accumulates a cash
value up to its date of maturation, reducing the risk to which the insurance company is exposed
as well as the policy's expense to the company. Such policies will be more expensive to older
people than to younger ones. The owner can access the money in the cash value by withdrawing
money, borrowing the cash value, or surrendering the policy and receiving the surrender value.
The four basic types of permanent insurance are whole life, universal life, limited pay, and
endowment.

Whole life coverageWhole life insurance provides lifetime death benefit coverage for a level premium. For younger
people, whole life premiums are much higher than term insurance premiums, but because term
insurance premiums rise with increasing age of the insured, the cumulative value of all premiums

paid under whole and term policies are roughly equal if policies are maintained to average life
expectancy. Part of the insurance contract stipulates that the policyholder is entitled to a cash
value reserve that is part of the policy and guaranteed by the company. This cash value can be
accessed at any time through policy loans that are received income tax-free and paid back
according to mutually agreed-upon schedules. These policy loans are available until the insured's
death. If any loans amounts are outstanding--i.e., not yet paid back--upon the insured's death, the
insurer subtracts those amounts from the policy's face value/death benefit and pays the remainder
to the policy's beneficiary.
While some life insurance companies market whole life as a "death benefit with a savings
account", the distinction is artificial, according to life insurance actuaries Albert E. Easton and
Timothy F. Harris. The net amount at risk is the amount the insurer must pay to the beneficiary
should the insured die before the policy has accumulated premiums equal to the death benefit. It
is the difference between the policy's current cash value (i.e., total paid in by owner plus that
amount's interest earnings) and its face value/death benefit. Although the actual cash value may
be different from the death benefit, in practice the policy is identified by its original face
value/death benefit.
The advantages of whole life insurance are its guaranteed death benefits; guaranteed cash values;
fixed, predictable premiums; and mortality and expense charges that do not reduce the policy's
cash value. The disadvantages of whole life are the inflexibility of its premiums and the fact that
the internal rate of return of the policy may not be competitive with other savings and investment
alternatives.

Death benefit amounts of whole life policies can also be increased through accumulation and/or
reinvestment of policy dividends, though these dividends are not guaranteed and may be higher
or lower than earnings at existing interest rates over time. According to internal documents from
some life insurance companies, the internal rate of return and dividend payment realized by the
policyholder is often a function of when the policyholder buys the policy and how long that
policy remains in force. Dividends paid on a whole life policy can ..be utilized in many ways.
The life insurance manual defines policy dividends as refunds of premium over-payments. They
are therefore not exactly like corporate stock dividends, which are payouts of net income from
total revenues.

Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Adyta Birla
Group and Sun Life Financial Inc., a leading international financial services organization. The
local knowledge of the Adyta Birla Group combined with the expertise of Sun Life Financial
Inc., offers a formidable value proposition to customers. Sun Life Financial and its partners today
have operations in key markets worldwide, including India, Canada, the United States, the
United Kingdom, Hong Kong, Philippines, Japan, Indonesia, China and Bermuda. Sun Life
Financial Inc. had assets under management of over US$ 386.82 billion, as on 31 March
2007.Sun Life Financial Inc. is a leading performer in the life insurance market in Canada. Birla
Sun Life Insurance Pvt. Ltd in its five successful years of operations has contributed significantly
to the growth and development of the life insurance industry in India. It pioneered the launch of
Unit Linked Life Insurance plans amongst the private players in India. It was the first player in
the industry to sell its policies through the Bank assurance route and through the internet.
It was also the first private sector player to introduce a pure term plan in the Indian market. This
was supported by sales practices, which brought a degree of transparency that was entirely new
to the market. The process of getting sales illustrations signed by customers, offering a free look
period on all policies, which are now industry standards were introduced by Birla Sun Life
Insurance Pvt. Ltd Being a customer centric company, Birla Sun Life Insurance Pvt. Ltd has
invested heavily in technology to build world class processing capabilities Birla Sun Life
Insurance Pvt .Ltd has covered more than one and a half million lives since inception and its
customer base is spread across 100 cities in India. All this has assisted the company incrementing
its place amongst the leaders in the industry in terms of new business premium income. Birla
Sun Life Insurance (BSLI PVT. LTD), one of the leading private life insurers in India today
announced the inimitable achiever, cricketer KapilDev as their corporate brand ambassador. The

cricketing

supreme

will

be

endorsing

Birla

Sun

Life

Insurance

pvt.Ltd

.in all its marketing initiatives. Birla Sun Life Insurance is a value-driven brand which has a
national brand recall of 70 per- cent. The objective of appointing a brand ambassador is to grow
its brand recall as it goes national in its distribution reach and fuel business growth. As a brand
ambassador, KapilDev will play a key role in the brand and product marketing and promotional
activities. Birla Sun Life Insurance Pvt.Ltd has always used an integrated marketing approach,
which will be strengthened further. Commenting on the association with KapilDev, Mr. S. K.
Mitra, Director, Financial Services, Aditya Birla Group and currently in charge of BIRLA SUN
LIFE INSURANCE PVT LTD LTD. LTDexpressed, "The Birla Sun Life Insurance business
distribution network is national in nature covering more than 1000 points across the country .We
have made our entry in several tier I and tier II towns. It is therefore very important for the brand
to connect at the grass root level and create trust. We believe that our association with KapilDev
as our brand ambassador will help us create this connects in a shorter period of time. We
therefore now have two strong connects our parent brand Birla and our brand Ambassador
KapilDev".KapilDev, also known as the Haryana Hurricane, was born on 6 January 1959 in
Chandigarh. He played his first competitive game of cricket at the age of 13 years and made his
test debut on16 October 1978 at Faisalabad against Pakistan. KapilDev remained India's top
strike bowler for almost 15 years. His extraordinary test match figures of more than 5000 runs
and 434 wickets along with 64 catches show that he was a world class cricketer and an allrounder. He has raised the mantle of India to sporting glory by winning us the World Cup. In a
study conducted by BIRLA SUN LIFE INSURANCE PVT LTD LTD. LTD, KapilDevconnected
extremely well with the life insurance category and had high acceptance by the masses. Our
survey suggests that he is seen as a very good fit for the BIRLA SUN LIFE INSURANCE PVT

LTD LTD. LTDbrand. He is very much loved and respected by a vast majority of the population.
On 26 November 2006, Birla Sun Life hosted the annual golf tournament at the Chembur
Golf Club in Mumbai where KapilDev participated.

About Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited is a joint venture between the Aditya Birla Group,
one of the largest business houses in India and Sun Life Financial Inc., a leading international
financial services organization. The local knowledge of the Aditya Birla Group combined with
the expertise of Sun Life Financial Inc., offers a formidable protection for your future. Birla Sun
Life Insurance (BIRLA SUN LIFE INSURANCE PVT LTD LTD. LTD), in its five successful
years of operations, has contributed significantly to the growth and development of the life
insurance industry in India. It pioneered the launch of unit linked life insurance plans amongst
the private players in India. It was the first player in the industry to sell its policies through the
banc assurance route and through the internet. It was the first private sector player to introduce a
pure term plan in the Indian market. This was supported by sales practices which brought a
degree of transparency that was entirely new to the market. The process of getting sales
illustrations signed by customers and offering a free look period on all policies, which are now
industry standards, were introduced by Birla Sun Life insurance Being a customer-centric
company, Birla Sun Life Insurance Pvt. Ltd has invested heavily in technology to build world
class processing capabilities Birla Sun Life insurance. Ltd

has covered more than a million

lives since inception and its customer base is spread across more than 1000 towns and cities in
India. All this has assisted the company in cementing its place amongst the leaders in the
industry in terms of new business premium income. The company's current capital base is Rs.520
crore.

About the Aditya Birla Group

The Aditya Birla Group has a turnover close to Rs.38,000crore (as on 31 March 2008) and is one
of the largest business houses in India. It enjoys a leadership position in all the sectors in which it
operates. With over 75 business units spanning the South East Asian belt, Africa, Canada and the
UK among

others,

it is

reckoned

as India's

first

multinational

corporation.

The

group is anchored by 72,000 employees andhas seven lakh shareholders, with a market
capitalization of Rs.53,400crore.

About Sunlife Financial Inc.

Sun Life Financial Inc. is a leading international financial services organization providing a
diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
31March 2008, the Sun Life Financial group of companies had total assets under management
of US$ 343 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol "SLF".

Key peoples of organization

Board of Directors
Mr. Kumar M Birla

Mr. Donald A Stewart,

Mr. Bishwanath N Puranmalka
Mr. Ajay Srinivasan
Mr. Gary M Comerford
Mr. Suresh N Talwar
Mr. Gian P Gupta
His Highness Maharaja G Singh
Mr. Stephan Rajotte
Dr. Bharat K Singh

Investment Committee
Mr. B. N. Puranmalka

Mr. Eugene Lundrigan

Mr. Ajay Srinivasan
Mr. VikramMehmi

Mr. MayankBathwal

Mr. Fabien Jeudy

Mr. VikramKotak
Ms. Keerti Gupta

Management Team
Mr. VikramMehmi
President & Chief Executive Officer
Mr. MayankBathwal
Chief Financial Officer
Mr. Mario Braganza
Chief Operating Officer
Mr. E.N. Goveia

Head - Direct Sales Force

Mr.AmitPunchhi
Senior Vice President - Third Party Distribution
Mr. BhaveshSanghvi
Head - Group Life & Pensions
Mr. Snehal Shah

Senior Vice President - Operations

Ms. AnjanaGrewal
Senior Vice President - Marketing & Communications
Mr. Rajesh Bhojani
Senior Vice President - DSF Expansion
Mr. K.H. Venkatachalam
Vice President Human Resource
Mr. Fabien Jeudy
Vice President, Chief & Appointed Actuary
Mr. LalitVermani
Vice President - Compliance
Mr. Melvyn D'souza
Vice President Risk Management and Internal Audit
Mr. VikramKotak
Vice President - Investments
Mr. BhalachandraNayak
Vice President Strategy

Evaluation Of Insurance
1. House/office/factory or any moveable object destroyed in life - Fire insurance

2. Shipment or transportation of goods - Marine insurance By ship, destroyed in catastrophe.

3. Jewellery /cash/ household goods - Burglar insurance Stolen or robbed
4. Goods in transit by roads or railways destroyed. - Carrier insurance
5. Theft or accident of vehicles - Vehicle insurance
6. Financial cover in ailment /surgery etc - Health insurance

All

these

are

non-life

insurance. In conclusion one can safely say that the purpose of insurance be it or
non-life is to transfer the financial loss to the insurance company who spreads in over to the
policyholders.

Life insurance-

Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, the
insured transfers a risk to the insurer. The insured pays a premium and receives a policy in
exchange. The risk assumed by the insurer is the risk of death of the insured.

How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, and the owner
of the policy (policyholder), although the owner and the insured are often the same person.
For example, if John Smith buys a policy on his own life, he is both the owner and the insured.
But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured.
The owner of the policy is called the grantee (he or she will be the person who will pay for
the policy). Another important person involved is the beneficiary.
The beneficiary is the person or persons who will receive the policy proceeds upon the death of
the insured. The beneficiary isnot a party to the policy, but is designated by the owner, who may
change the beneficiary unless the policy has an irrevocable beneficiary designation.
With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy
assignment, or borrowing of cash value. The policy, like all insurance policies, is a legal contract
specifying

the

terms

and

conditions

of the risk assumed. Special provisions apply, including a suicide clause wherein the policy ecom
es null if the insured commits suicide within a specified time for the policy date (usuallytwo
years). Any misrepresentation by the owner or insured on the application is also grounds
for nullification. Most contracts have a contestability period, also usually a two-year period; if
theinsured dies within this period, the insurer has a legal right to contest the claim and
requestadditional information before deciding to pay or deny the claim. The face amount of the

policy is normally the amount paid when the policy matures, although policies can provide for
greater or lesser amounts. The policy matures when the insured dies or reaches a specified age.
The most common reason to buy a life insurance policy is to protect the financial interests of the
owner of the policy in the event of the insured's demise. The insurance proceeds would pay for
funeral and other death costs or be invested to provide income replacing the deceased's wages.
Other reasons include estate planning and retirement. The owner (if not the insured) must have
an insurable interest in the insured, i.e. a legitimate reason for insuring another persons life. The
insurer (the life insurance company) calculates the policy prices with intent to recover claims to
be paid and administrative costs, and to make a profit. The cost of insurance is determined using
mortality tables calculated by actuaries. Actuaries are professionals who use actuarial science
which is based in mathematics (primarily probability and statistics). Mortality tables are
statistically based tables showing average life expectancies. The three main variables in a
mortality table are age, gender, and use of tobacco. The mortality tables provide a baseline for
the cost of insurance. In practice, these mortality tables are used in conjunction with the health
and family history of the individual applying for a policy in order to determine premiums and
insurability. The current mortality table being used bylife insurance companies in the United
States and their regulators was calculated during the1980s. There is currently a measure
being pushed to update the mortality tables by 2008.The current mortality table assumes that
roughly 2 in 1,000 people aged 25 will die during the term of coverage. This number rises
roughly quadratically to about 25 in 1,000 people for those aged 65. So in a group of one
thousand 25 year old males with a $100,000 policy, a life insurance company would have to, at
the minimum, collect $200 a year from each of the thousand people to cover the expected claims.
The insurance company receives the premiums from the policy owner and invests them to create

a pool of money from which to pay claims, and finance the insurance company's operations.
Contrary to popular belief, the majority of the money that insurance companies make comes
directly from premiums paid, as money gained through investment of premiums will never, in
even the most ideal market conditions, vest enough money per year to pay out claims. Rates
charged for life insurance increase with the insureds age because, statistically, a people are more
likely to die as they get older. Since adverse selection can have a negative impact on the financial
results of the insurer, the insurer investigates each proposed insured (unless the policy is below a
company-established minimum amount) beginning with the application, which becomes part of
the policy. Group
Insurance policies are an exception. This investigation and resulting evaluation of the risk is calle
dunderwriting. Health and lifestyle questions are asked, and the answers are dutifully recorded.
Certain responses by the insured will be given further investigation. Life insurance companies in
the United States support The Medical Information Bureau, which is a clearinghouse of medical
information on all persons who have ever applied for life insurance. As part of the application,the
insurer receives permission to obtain information from the proposed insured's physicians.Life
insurance companies are never required by law to underwrite or to provide coverage
onanyone. They alone determine insurability, and some people, for their own health or lifestyle
reasons, are uninsurable. The policy can be declined (turned down) or rated. Rating
meansincreasing the premiums to provide for additional risks relative to that particular
insured.Many companies use four general health categories for those evaluated for a life
insurance policy. These categories are Preferred Best,
Preferred, Standard and Tobacco. Preferred Best means that the proposed insured has no adverse
medical history is not under medication for anycondition, and his family (immediate and

extended) has no history of early cancer, diabetes or other conditions. Preferred is like Preferred
Best, but it allows that the proposed insured iscurrently under medication for the condition and
may have some family history. Most people arein the Standard category. Profession, travel, and
lifestyle also factor into not only which categorythe proposed insured falls, but also whether the
proposed insured will be denied a policy. For example, a person who would otherwise be in the
Preferred Best category will be denied a policy if he or she travels to a high risk country. Upon
the death of the insured, the insurer will require acceptable proof of death before paying the
claim. The normal minimum proof is a death certificate and the insurer's claim form completed,
signed, and often notarized. If the insured's death was suspicious and the policy amount warrants
it, the insurer may investigate the circumstances surrounding the death, before deciding whether
there is a legal obligation to pay the claim. Proceeds from the policy may be paid in a lump sum
or as an annuity paid over time in regular recurring payments for either for the life of a specified
person or a specified time period.

Contribution of life insurance in development of economy

Contribution of Life Insurance Sector in the Economy
Flow of Insurance Industry in India
Structure of insurance industry: Snap Shot Industry
Aggregation of long term savings
Spread of financial services in rural Areas
Long term funds for infrastructure development of capital Markets/ Economic Growth
Employment generation

Special Future
Growth Potential

Product Profile (Insurance Plans)

Insurance Plans

Life is unpredictable. But in face of adversity, our responsibilities towards our parents,
children and loved ones need not be compromised. Insurance planning equips you to smooth out
the uncertainties and adversities that life might send your way, so that the best that life has to
offer, secure in the knowledge that your beloved ones are well provided for.
Birla Sun Life insurance privet Ltd offers a complete range of insurance products
1. Protection Plans
2. Savings Plans
3. Child Plans
4. Investment Plans
5. Retirement Plans
6. Group Plans
7. Rural Plans
8. Plans for NRIs
9. Keyman Plans
10. Riders

Protection Solutions

In an increasingly uncertain world, it is your top priority to ensure that your family continues to
enjoy financial security and a comfortable lifestyle even in your absence. Birla Sun Life Insurance
(BSLI) brings you term life insurance plans that are a simple and economic way of achieving this
objective irrespective of what the future has in store for you .Birla Sun Life Insurance Pvt.Ltd
Protection Solutions are term life insurance plans that help you meet your need of financial
security for your loved ones. We provide you life cover based on your requirements and that too,
at a reasonable premium. To calculate the appropriate life cover for you and buy a plan, call for
our financial advisor.

Plan Benefit

Plan Name

A plan that assures financial security for your family while keeping

BIRLA SUN LIFE

pace with your growing needs, and rewards you for a healthy lifestyle

INSURANCE PVT LTD LTD.

LTDProtector Plus Plan

Your life responsibilities might either be escalating or have been

BIRLA SUN LIFE

steady. Protect your family against the extra liabilities of life by

INSURANCE PVT LTD LTD.

choosing the plan option best suitable for your needs.

LTDEasy Protect Plan

To deal with growing expectations and secure the financial future of

BIRLA SUN LIFE

your family, Birla Sun Life Insurance has come up with the perfect

INSURANCE PVT LTD LTD.

protection solution for you.

LTDProtect@Ease

Retirement Solutions

During retirement, income stops but the expenses dont. With inflation increasing the cost of basic
essentials, your savings today might not suffice meeting the cost of necessities throughout the retired life.
It is therefore important to start saving early and in a planned manner for a comfortable, stress-free retired
life. What is also important is to determine your goal for the retirement corpus basis your projected needs
during retired life.
Birla Sun Life Insurance Retirement Solutions ensure that you enjoy a secure and happy retired life.Our
retirement plans that help you build a corpus that lasts throughout your retired life. So, whether you wish
to retire early and start your own business or lead a leisurely retired life, you can be sure of the funds that
make it the best years of your life.
To know more about our plans and to get recommendations on the plan best suited to your needs, call for
a Birla Sun Life Insurance Financial Advisor.

Plan Benefit

Plan Name

Presenting the BIRLA SUN LIFE INSURANCE PVT LTD LTD.

BIRLA SUN LIFE INSURANCE

LTDEmpower Pension Plan, a plan designed especially to ensure

PVT LTD LTD. LTDEmpower

that you remain in control of your destiny even during the second

Pension Plan

innings of life. A unit linked, non-participating pension plan it is

simple, hassle-free and helps you accumulate your premiums and

the investment returns into a corpus for your retirement; so that
you can focus on your goals, and enhance your savings for a
secure future.
It enables you to convert your savings or lump sum amounts into

BSLI. LTD Immediate

an instantly guaranteed lifetime income source for retirement,

Plan

which you can avail anytime you choose to have it.

Children's Future Solutions

A child is a source of joy for every parent. You work towards ensuring that you have the means to meet
the big future expenses of your child, be it for higher education, marriage or any other dreams that you
have for your child.
Birla Sun Life Insurance Childrens Future Solutions are designed to help you build a corpus that allows
you to meet the major expenses of your child in future. Besides providing you life cover to ensure that
your childs dream is secured, they also offer you the choice of guaranteed returns or the flexibility to
manage your fund options to make your money grow as per your needs. To know more about our plans
and to get recommendations on the plan best suited to your needs, call for a Birla Sun Life Insurance
Financial Advisor.

Health & Wellness

With medical costs increasing considerably, most of us find ourselves unprepared for sudden medical
emergencies that tend to throw our finances out of gear.
Birla Sun Life Insurance Health & Wellness Solutions ensure that you never lack the funds to go in for
quality treatment in case of medical emergencies. Our plans help you insure yourself and your family for
an adequate sum, against major illnesses and injuries. You even have a choice of plans that offer the
cashless facility.
To know more about our plans and to get recommendations on the plan best suited to your needs, call for
a Birla Sun Life Insurance Financial Advison

Savings with Protection

Life's beautiful but also full of uncertainties and you never know what life has planned for you. You work
hard through the day to offer the very best for your family. However, you always have this dilemma
Enjoy Now vs Enjoy Later. Can we find the balance?
This is where BIRLA SUN LIFE INSURANCE PVT LTD LTD. LTDSavings with Protection solutions
come to your aid. By helping you make small savings in a disciplined manner, we help you to create a
corpus for fulfill your family's wishes in the future. Since the amount is small, you can continue enjoying
your current lifestyle without compromises. What's more, your family will get the added security of a Life
Cover & tax free returns. So go ahead, ensure your family lives comfortably now and forever.
To know more about our Savings with Protection plans and more important to understand the plan best
suited for you, call for Birla Sun Life Insurance advisors.
Plan Benefit

Plan Name

Introducing the BIRLA SUN LIFE INSURANCE PVT LTD

BIRLA SUN LIFE INSURANCE

LTD. LTDVision Life Income Plan, a traditional participating

PVT LTD Vision Life Income Plan

whole life plan that helps you to not only plan your financial
goals but also realize your dreams by providing you with a
steady income and whole life cover. With survival benefits
payable every year from the end of the premium paying term
till maturity and a life insurance benefit, this plan offers a
perfect blend of income and financial protection for you and

your family.
Since nothing in life is guaranteed, it is great to find some

BIRLA SUN LIFE INSURANCE

things that are. Presenting the BIRLA SUN LIFE

PVT LTD Vision Endowment Plan

INSURANCE PVT LTD Vision Endowment Plan that offers

you the best of both worlds since some things bring with its
promise the reassurance that you get back more than what you
have invested. This plan assures growth in your savings and
return of your money so you can build a safe and financially
sound future for your family.
Life is full of uncertainties and seldom turns out the way one

BIRLA SUN LIFE INSURANCE

expects it to be. We all look for security; whether it is for our

PVT LTD Savings Plan

familys future or for our savings. Given a choice, we would

leave nothing to chance when it comes to fulfilling goals and
securing familys well-being.
It allows you the flexibility to choose your policy term, enjoy

BIRLA SUN LIFE INSURANCE

protection up to the age of 100 years and gain steady growth in

PVT LTD Vision Life Secure Plan

savings over time so that you can relax and enjoy life with
complete peace of mind.
The BIRLA SUN LIFE INSURANCE PVT LTD Income

BIRLA SUN LIFE INSURANCE

Assured Plan is suitable for you if your key objective is secured

PVT LTD Income Assured Plan

savings, regular income and comprehensive financial protection

for your family.
With survival benefits payable every year from 5th policy

BIRLA SUN LIFE INSURANCE

anniversary till maturity and life insurance benefit, this plan

PVT LTD Vision Regular Returns

offers a perfect combination of liquidity, savings and financial

Plan

protection of your family.

Wealth with Protection Solutions

We all have dreams for our lives the dream house, the luxury car, the holiday abroad and many more. In
order to achieve these dreams, it is important to have a financial goal in mind and work towards achieving
it.
With Birla Sun Life Insurance Wealth with Protection Solutions, your dream is secure. Besides providing
you a life cover, these solutions encourage you to save regularly, by offering flexible plans suited to your
goals.
To know more about our plans and to get recommendations on the plan best suited to your needs, call for
a Birla Sun Life Insurance Financial Advisor.

Plan Benefit

Plan Name

A single pay unit linked plan that allows you to choose how your

BIRLA SUN LIFE

money is invested in 13 different funds

INSURANCE PVT
.LTDWealth Max Plan

A life insurance plan that ensures you meet your familys dreams by

BIRLA SUN LIFE

picking out an investment option that best suits your requirement

INSURANCE PVT LTD Wealth

and also financially secures your family with Whole Life Cover.

Secure Plan

Birla Sun Life Insurance Wealth Assure Plan, a protection and

BIRLA SUN LIFE

savings plan, that enables your wealth to grow steadily over time,

INSURANCE PVT LTD Wealth

providing you and your family with a secure financial future to meet

Assure Plan

your needs at different stages of life.

NAME OF THE PLAYER MARKET SHARE (%)

LIC

82.3

ICICI PRUDENTIAL

5.63

BIRLA SUN LIFE

2.56

BAJA ALLIANZ

2.03

SBI LIFE

1.80

HDFC STANDARD

1.36

TATA AIG

1.29

MAX NEW YORK

0.90

AVIVA

0.79

OM KOTAK MAHINDRA

0.51

ING VYASA

.37

AMP SANMAR

0.26

METLIFE

0.21

YOUR BENEFIT ILLUSTRATION

Some benefits are guaranteed and some benefits are variable with bonuses based on the future

Performance

of the participating business and economic conditions. If your policy offers guaranteed

returns then these will be clearly marked guaranteed in the illustration table on this page. If your policy
offers variable returns then the illustrations on this page will show two different rates of assumed future
investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower
limits of what you might get back as the value of your policy is dependent on a number of factors
including future investment performance .In the illustration below, the Sum Assured is fully guaranteed.
The Total Death

YOURS OPTIONS
All amount in

Surrendering your Policy Taking a Policy Loan Free-Look Period

Your policy will acquire a surrender value after all due premiums for at least three full policy Years are
paid. The Guaranteed Surrender Value is a percentage of premiums paid (excluding any premiums paid
towards rider benefit/s, underwriting extras and service tax) plus the surrender value of accrued regular
bonuses less survival benefit already paid. The Guaranteed Surrender Value will vary depending on the
premium paying term and the year the policy is surrendered. Your policy will also be eligible for a Special
Surrender Value. The surrender value payable will be the higher of Guaranteed Surrender Value or Special
Surrender Value. The policy shall be terminated once the Surrender Value is paid. Please ask your
financial advisor for an illustration of the Surrender Values applicable to your policy or refer to your
policy contract for further details. You may take a loan against your policy once it has acquired a
surrender value. The minimum loan amount is Rs. 5,000 and the maximum is 85% of your surrender
value. We shall charge interest on the outstanding loan balance at a rate declared by us from time to time

based on then prevailing market conditions. Any outstanding loan balance will be recovered by us from
policy proceeds due for payment before any benefit is paid under the policy. Should the outstanding
policy loan balance equal or exceed the surrender value of your policy at any time, when your policy is in
reduced paid-up status, then the policy shall be terminated without any value. Note that prior to this
happening, we shall give you an opportunity to repay all or part of your outstanding loan balance in order
for your policy to continue uninterrupted. You will have the right to return your policy to us within 15
days (30 days in case the policy (5) issued under the provisions of IRDA Guidelines on Distance
Marketing of Insurance products) From

the date of receipt of the policy. We will refund the premium

paid once we receive your written notice of cancellation (along with reasons thereof) together with the
original policy documents. We will deduct proportionate risk premium for the period of cover and
expenses incurred by us on medical examination and stamp duty charges while issuing your policy. (5)
Distance Marketing includes every activity of solicitation (including lead generation) and sale of
insurance products through voice mode, SMS electronic mode, physical mode (like postal mail) or any
other means of communication other
than in person.

TERMS & CONDITIONS Grace Period and Reinstatement

Service Tax and Education case

Tax Benefits Exclusions

Nomination and Assignment

Prohibition of Rebates Section 41 of the Insurance Act, 1938

If you are unable to pay your premium by the due date, you will be given a grace period of 30days (15
days for mode) and during this grace period all coverage under your policy will continue. If you do not
pay your premium within the grace period, the following will be applicable:
(a) In case you have not paid premiums for three full years, then all benefits under your policy will cease
immediately and your policy shall be terminated.
(b) In case you have paid premiums for at least three full years, then your policy will be continued on a
Reduced Paid-Up basis. You can reinstate your policy for its full coverage within two years from the due
date of the first unpaid premium by paying all outstanding premiums together with interest as declared by
us from time to time and by providing evidence of insurability satisfactory to us. Upon Reinstatement,
your benefits shall be restored to their full value. Service Tax and other levies, as applicable, will be extra

and levied as per the extant tax laws .As per extant tax laws, this plan offers tax benefits under Section
80C, 80D and Section 10(10D) of the Income Tax Act, 1961, subject to fulfillment of the other conditions
of the respective sections prescribed therein. You are advised to consult your tax advisor for details. We
will pay the premiums paid to date or surrender value, if higher, in the event the life insured dies by
committing suicide, whether medically sane or insane, within one year after the issue date or
reinstatement date of the policy.
In case you, the policyholder, is also the life insured, you need to nominate a person who shall be entitled
to the death benefit in case of death. This nomination shall be in accordance with Section 39 of the
Insurance Act, 1938. You also have the right to assign your policy in Accordance with Section 38 of the
Insurance Act, 1938. No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take or renew or continue an insurance

in respect of any kind of risk

relating to lives or property in India, any rebate of the whole or part of the commission payable or any
rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a
policy accept any rebate, except such rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer. Any person making default in complying with the provisions of this
section shall be punishable with a fine which may extend to `500.
No policy of life insurance Affected after the coming into force of this act shall, after the expiry of two
years from the date on which it was effected, be called in question by an insurer on the ground that
statement made in the proposal or in any report of a medical officer, or referee, or friend of the life
insured, or in any other document leading to the issue of the policy was inaccurate or false, unless the
insurer shows that such statement was on a material matter or suppressed facts which it was material to
disclose and that it was fraudulently made by the policy holder and that the policyholder knew at the time
of making it that the statement was false or that it suppressed facts which it was material to disclose.
Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if
he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of

the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the
application.

Birla Sun Life Insurance Company Limited (BIRLA SUN LIFE INSURANCE PVT LTD ) is a joint
venture between the Aditya Birla Group, a well known Indian conglomerate and Sun Life Financial Inc.,
one of the leading international financial services organizations from Canada. With an experience of over
a decade, Birla Sun Life Pvt. Ltd has contributed to the growth and development of the Indian life
insurance industry and is currently one of the leading life insurance companies in the country. Birla Sun
Life Insurance Pvt. Ltd. has a customer base of over two and half million policy holders and has attained
recognition as the 3 most Trusted Life Insurance Company in the 'Most Trusted Brands' survey 2013
conducted by Brand Equity (The Economic Times Group) with Nielsen. The Company offers a complete
Range of offerings comprising protection solutions, children's future solutions, wealth with protection
solutions, savings with protection solutions, health and wellness Solutions , and retirement solutions. It
has an extensive distribution reach in over 500 cities through its network of over 550 branches, more than
1,05,000 empanelled advisors and over 100 partnerships with corporate agents, brokers and banks. Birla
Sun Life Insurance has total assets under management of `22,300 Crores and a robust capital base of over
`2,200 Crores, as on 30th September, 2013. For more information, please visit www.birlasunlife.com.
Aditya Birla Financial Services Group (ABFSG) ranks among the top 5 fund managers in India

Non-Disclosure Section 45 of the Insurance Act, 1938 About Birla Sun Life Insurance

About Aditya Birla Financial Services Group (ABFSG) BIRLA SUN LIFE INSURANCE

 A COMING TOGETHER OF VALUES

(excluding banks and LIC) with an AUM of ~$19.86 billion. Having a strong presence across the life
insurance, asset management, NBFC, private equity, retail broking, distribution and wealth management,
and general insurance broking businesses, ABFSG is committed to serve the end-to-end financial services
needs of its retail and corporate customers. The seven companies representing ABFSG are: Birla Sun Life
Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd.,
Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd. and
Aditya Birla Insurance Brokers Ltd. In FY 2012-13, ABFSG reported consolidated revenue from these
businesses at `6,390 Crores (1.17 billion) and earnings before tax at `761 Crores. Anchored by about
14,200 employees and trusted by about 5.3 million customers, ABFSG has a nationwide reach through
more than 1,550 points of presence and about 1,60,000 agents/channel partners. Sun Life Financial is a
leading international financial services organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate customers. Sun Life Financial and its
partners have operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Ireland, Hong Kong, the Philippines ,Japan, Indonesia , India, China, Australia, Singapore,
Vietnam, Malaysia and Bermuda. As of June 30, 2013, the Sun Life Financial group of companies had
total assets under management of $591 billion. For more information please visit www.sunlife.com. Sun
Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges
under the ticker symbol SLF

This policy is underwritten by Birla Sun Life Insurance Company Limited (BIRLA SUN LIFE
INSURANCE PVT. LTD ). This is a traditional participating endowment plan. All terms and conditions
are guaranteed throughout the policy term, except for the bonuses which would be declared at the end of
each financial year. Service Tax and Education Cess and any other applicable taxes will be added (extra)

to your premium and levied as per extant tax laws. An extra premium may be charged as per our then
existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations
etc. This brochure contains only the salient features of the plan. For further details please refer to the
policy contract. Tax benefits are subject to changes in the tax laws. For more details and clarification call
your BIRLA SUN LIFE INSURANCE PVT LTD Insurance Advisor or visit our website and see how we
can help in making your dreams come true.

Insurance is a subject matter of solicitation.

IRDA clarifies to public that IRDA or its officials do not involve in activities like sale of any kind of
insurance or financial products
Tax Benefits
Exclusions
Nomination and Assignment
Prohibition of Rebates Section 41 of the Insurance Act, 1938
Non-Disclosure Section 45 of the Insurance Act, 1938
As per extant tax laws, this plan offers tax benefits under Section 80C and Section 10(10D) of The
Income Tax Act, 1961, subject to fulfillment of the other conditions of the respective sections prescribed
therein. You are advised to consult your tax advisor for details. We will pay the premiums paid to date or
Surrender Value, if higher, in the event the life insured dies by committing suicide, whether medically
sane or insane, within one year after the issue date or reinstatement date of the policy. In case you, the

policyholder, are also the life insured, you need to nominate a person who shall be entitled to the death
benefit in case of death. This nomination shall be in accordance with Section 39 of the Insurance Act,
1938. You also have the right to assign your policy in accordance with Section 38 of the Insurance Act,
1938.
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to
take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India,
any rebate of the whole or part of the commission payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any
person making default in complying with the provisions of this section shall be punishable with a fine
which may extend to five hundred rupees.

No policy of life insurance Affected after the coming into force of this act shall, after the expiry of two
years from the date on which it was effected, be called into question by an insurer on the ground that
statement made in the proposal or in any report of a medical officer, or referee, or friend of the life
insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the
insurer shows that such statement was on a material matter or suppressed facts which it was material to
disclose and that it was fraudulently made by the Policy holder and that the policyholder knew at the time
of making it that the statement was false or that it suppressed facts which it was material to disclose.
Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if
he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of
the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the
application.

Birla Sun Life Insurance Company Limited Birla Sun Life Insurance Pvt. Ltd) is a joint venture between
the Aditya Birla Group, a well known Indian conglomerate and Sun Life Financial Inc., one of the leading
international financial services organizations from Canada. With an experience of over a decade, Birla
Sun Life Insurance Pvt. Ltd has contributed to the growth and development of the Indian life insurance
industry and is currently one of the leading life insurance companies in the country. Birla Sun Life
Insurance Pvt. Ltd has a customer base of over two and half million policy holders and has attained
recognition as the 3rd Most Trusted Life Insurance Company in the 'Most Trusted Brands' survey 2013
conducted by Brand Equity (The Economic Times Group) with Neilsen. The Company offers a complete
range of offerings comprising protection solutions, children's future solutions, wealth with protection
solutions, health and wellness solutions, and retirement solutions. It has an extensive distribution reach in
over 500 cities through its network of over 550 branches, more than 1,05,000 empanelled advisors and
over 100 partnerships with corporate agents, brokers and banks. Birla Sun Life Insurance has total assets
under management of `22,300 Crores and a robust capital base of over `2,200 Crores, as on 30th
September, 2013. For more information, please visit www.birlasunlife.com
Aditya Birla Financial Services Group (ABFSG) ranks among the top 5 fund managers in India
(excluding banks and LIC) with an AUM of ~$19.86 billion. Having a strong presence across the life
insurance, asset management, NBFC, private equity, retail broking, distribution & wealth management,
and general insurance broking businesses, ABFSG is committed to serve the end-to-end financial services
needs of its retail and corporate customers. The seven companies representing ABFSG are: Birla Sun Life
Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd.,
Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd. and
Aditya Birla Insurance Brokers Ltd. In FY 2012-13, ABFSG reported consolidated revenue from these
businesses at `6,390 Crores (1.17 billion) and earnings before tax at `761 Crores. Anchored by about
14,200 employees and trusted by about 5.3 million customers, ABFSG has a nationwide reach through
more than1,550 points of presence and about 1,60,000 agents/channel partners.

BIRLA SUN LIFE INSURANCE A COMING TOGETHER OF VALUES About Birla Sun Life
Insurance About Aditya Birla Financial Services Group (ABFSG)
About Sun Life Financial

Sun Life Financial is a leading international financial services organization providing a diverse range of
protection and wealth accumulation products and services to individuals and corporate customers. Sun
Life Financial and its partners have operations in key markets worldwide, including Canada, the United
States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2013, the Sun Life Financial group
of companies had total assets under management of $591 billion. For more information please visit
www.sunlife.com. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine
(PSE) stock exchanges under the ticker symbol SLF.

This policy is underwritten by Birla Sun Life Insurance Company Limited (BIRLA SUN LIFE
INSURANCE PVT. LTD).
This is a traditional participating whole life insurance plan. All terms and conditions are guaranteed
throughout the policy term, except for the bonuses which would be declared at the end of each financial
year. Service Tax and Education Cess and any other applicable taxes will be added (extra) to your
premium and levied as per extant tax laws. An extra premium may be charged as per our then existing
underwriting guidelines for substandard lives, smokers or people having

Hazardous occupations, etc.

This brochure contains salient features of the plan including risk factors and terms and conditions. Please
read the brochure carefully before concluding the sale. For precise terms and conditions please refer to the
policy contract. Tax benefits are subject to changes in the tax laws. For more details and clarification, call
your Birla Sun Life Insurance Pvt. Ltd Insurance Advisor or visit our website and see how we can help in
making your dreams come true.

Insurance is the subject matter of solicitation.

IRDA clarifies to public that IRDA or its officials do not involve in activities like sale of any kind of
insurance or financial products nor invest premiums. IRDA does not announce

any bonud. Public

receiving such phone calls are requested to lodge a police complaint along with details of phone call
number.

RISK FACTORS AND DISCLAIMERS

Taking a Policy Loan Free-Look Period

For higher Sum Assured, we also offer a premium rebate as follows.

Premium Rebate per 1000 SA nil 2.00 3.00 3.75Your policy will acquire a surrender value after all due
premiums for at least 3 full policy years are paid. The Guaranteed Surrender Value is a percentage of
premiums paid (excluding any premiums paid towards rider/s benefit, underwriting extras and service
tax) plus the surrender
value of accrued regular bonuses less maturity benefit already paid. The Guaranteed Surrender Value will
vary depending on the policy term and the year the policy is surrendered. Your policy will also be eligible
for a Special Surrender Value. The Surrender Value payable will be the higher of Guaranteed Surrender
Value or Special Surrender Value. The policy shall be terminated once the Surrender Value is paid. Please
ask your financial advisor for an illustration of the Surrender Values applicable to your policy or refer to
your policy contract for further details.
You may take a loan against your policy once it has acquired a surrender value and provided the life
insured is alive. The minimum loan amount is Rs.5,000 and the maximum is 85% of your surrender value.
We shall charge interest on the outstanding loan balance at a rate declared by us from time to time based
on then prevailing market conditions. Any outstanding loan balance will be recovered by us from policy
proceeds due for payment and will be deducted before any benefit is paid under the policy. Should the
outstanding policy loan balance equal or exceed the surrender value of your policy at any time, when your
policy is in reduced paid up status, then the policy shall be terminated without any value. Note that prior
to this happening, we shall give you an opportunity to repay all or part of your outstanding loan balance
in order for your policy to continue uninterrupted

Objective
1.
2.
3.
4.
5.
6.

To understand about the present level of employee satisfaction.

To identity the relationship between employee and organization.
To study about the employee retention of Birla sun life insurance.
To ascertain the problems of the employee in the organization.
To offer suggestion the employee retention of Birla Sun Life Insurance.
To help improve the level of employee retention.

Scope
The study is restricted to Mirzapur only. The study also analyses the preferences regarding
different life insurance policies of Birla-sun life insurance. For this study 100 respondents of
Mirzapur are chosen. Now days there are lot of private companies in market so its important to
know what motivates the customer to buy the policy. Birla sun life is the fastest growing private
insurance company in India. It determines market share of the various private companies in
India.

To understand the market demand of these products.

To understand the order creation and delivery procedures of these products.
To understand the procedures of taking customers feedback and incorporating it with
improvement of products.

Limitation

 Because of time constraint sample size was the scope of this project is limited to areas in
Mirzapur only.
The estimates are done on average basis.
The project had scope for future research, which was beyond my resource due to time
constraint and work pressure.
Because of time constraint sample size was restricted on 100.
Some of the respondents did not respond due to lack of time.
Some were biased towards their brand, which might not be giving them good service.

RESEARCH METHODOLOGY
Research

Research is a process in which researchers wish to find out the end result for a give problem & thus the
solution help in a future course action . the research has been defined as A careful investigation or
enquiry through search for new fact in the branch of knowledge.

RESEARCH METHODOLOGY

The procedure using, which researchers go about their work of describing go about their work of
describing and predicting phenomena , is called Methodology . methods compromise the procedure used
for generating , collection and evaluating data .methods are the ways of obtaining information useful for
explanation.

Types of research :-

The type of research used in this project is description in nature .descriptive research is essentially a fact
finding related largely to the present, abstracting generation by cross sectional study of the current
situation. The descriptive method are extensively used in the physical and natural section, for instance
when physical measure , biology classified , zoology dissects and geology studies the rock . but its use in
social science is more common , as in socio economic survey and job and activity analysis.

Design of descriptive studies:-

Descriptive studies aim at portraying accurately the characteristics of a particular group or solution .one
may under take a descriptive study about the work in the factory , health and analysis . a descriptive study
may be concerned with financial study, profitability and strength and weakness of the company .

A descriptive study involve in following step

Formulating objective of the study .

Defining the population and selection the sample.

Analysis of data .

Conclusion and recommendation for future improvement in the practices.

Data collection method:-

A thorough study of the financial statements of Texcel Engineers Private Limited (project engineering
management) using ratio analysis and comparative statements analysis.

Primary method:-

A Thorough study of the financial statements of Texcel Engineers Private Limitedusing Ratio
Analysis. The information is collected through secondary source during the project. That
information was utilized for calculating performance evaluation and based on that,
interpretations were made.

Secondary data: Secondary Data used is collected from the various websites such asTexcel Engineers
Private Limited, Ministry of Power, Internet research, library research, Newspapers,
Magazines, Journals and Periodicals.
Most of the calculations are made on the financial statements of the company provided
statements. This project referred the standard texts and referred books to collect some of
the information regarding theoretical aspects. It also includes the method to assess the
performance of the company and the method of observation of the work in finance
department in followed.

Analysis of Data:
The study is qualitative and quantitative in nature as both secondary and primary data is there. Analytical
tools (Microsoft Office Excel) will be used in the preparation. The report will be prepared after doing a
qualitative and quantitative analysis of the data collected. Some bar charts, graphs and pie charts will be
used to make the data more understandable to the reader.

Research design
The study is carried out on the basis of information and data collection from training and development
center of Texcel Engineers Private Limited
The following procedure are as followed

The research including interpretation of financial analysis .

Understanding the formulas of Texcel Engineers Private Limited

Analyzing the data.

Evaluate and calculate.

Universe of study: The universe of the study is public sector.

Locale of study: Locale of study is Texcel Engineers Private Limited

Sample selection:
Sample design

Non Probability Convenience and Judgmental Sampling

Sampling Area Lalitpur

Data Analysis
This aim of this project is to analysis the liquidity and profitability position of the company using the
financial tools. This study is based on financial statements such as Ratio Analysis.
The study is made to evaluate the financial position, the operational results as well as financial progress
of a business concern. It explains the ways in which ratio analysis can be of assistance in long-rang
planning, budgeting and asset management to strengthen financial performance and help avoid financial
difficulties.
The project not only throws on the financial position of a firm but also serves as a stepping
stone to remedial measures forTexcel Engineers Private Limited by suggesting the area of weaker position
of business transaction in the company.

1.CURRENT RATIO:
Current ratio is the ratio of current assets of a business to its current liabilities
Formula:
Current ratio

= Current assets
Current liabilities

2012-20132011-2012

(A)

50959.46

= 1.8:1

(B)

48839.97 = 1.7:1

27832.56

28715.11

YEAR

2012-2013 ( l in cr)

2011-2012 ( l in cr)

Current Assets

50959.46

48839.97

Current Liabilities

27832.56

28715.11

Current Ratio

1.8

1.7:1

INTERPRETATION OF CURRENT RATIO

By calculating the data we can found Texcel Engineers Private Limited the current ratio is 1.7:1 in 20112012. It means that for 1 rupee of current liabilities, the current assets are 1.7:1rupee is available to them.
This shows that company may face some problems in payment of current liabilities. At that time,
company can operate with lower current ratio because company can sell his product on credit at high level
and creditor may give loan for long period.

2) LIQUID RATIO:
Liquid ratio is also termed as liquidity ratio, acid test ratio or quick ratio. It is the ratio of liquid
Assets to current liabilities.
LIQUID RATIO

liquid Assets
Current liabilities

2012 -2013

2011-2012

(A) 50959.46- 11763.82 =1.40

(B) 48839.73-13548.73 =1.22

27832.56

33638.01

YEAR

2012 -2013( l in cr )

2011-2012( l in cr)

Liquid Assets

39196

35270.44

Current Liabilities

27832.56

33638.01

Liquid Ratio

1.40

= 1.22

40000liquid assets

current liabilities

liquidity ratio

30000
20000
10000
0
2011-12

2012-13

INTERPRETATION OF LIQUID RATIO

By calculating the data we can found Liquid ratio of Company is favorable because the quick assets of
the company are more than the quick liabilities. Since Quick Ratio Texcel Engineers Private Limited is
greater than 1:1 in both the years so it can be concluded that company still is in good condition to meet its
immediate obligations despite of decreasing trend in quick ratio.
3. NET WORKING CAPITAL TO TOTAL ASSETS
The Working Capital to Total Assets ratio measures a company's ability to cover its short term financial
obligations (Total Current Liabilities) by comparing its Total Current Assets to its Total Assets.
Net working capital to total assets= total current assets

Total current liabilities

2012-2013

2011-2012

(A) 50959.46 -27832.56 = 0.32

70128.45

(B) 48839.97-28715.11= 0.30

66776.02

YEAR

2012-2013 ( l in cr)

2011-2012( l in cr)

NWC

23126.9

17892

Total Assets

70128.45

66776

Net working capital to total assets

0.32:1

0.30:1

NET WORKING CAPITAL TO TOTAL ASSETS

80000 NWC

tatal assets

60000

NWC tatal
NWC tatal
tatal assets

40000
20000

NWC

0
2011-12

2012-13

INTERPRETATION OF NWC TO TOTAL ASSETS

The Net Working Capital to Total Assets ratio measures a company's ability to cover its short term
financial obligations. The Working Capital to Total Assets ratio of Texcel Engineers Private Limited is
constantly increasing from 2011 to 2013 from 0.30 to 0.32 which is usually a positive sign, showing the
company's liquidity is improving over time.

4 .LEVERAGE RATIOS

A).DEBT EQUITY RATIO:-

Debt-to-equity ratio is the ratio of total liabilities of a business to its shareholders'

equity.
Formula:

Debt equity ratio

Total long term debt

Total shareholders fund

YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Total long term debt

123

102

Total shareholders fund

25373.21

20153.84

Debt equity ratio

0.0048

0.0050

DEBT EQUITY RATIO

30000
25000
20000
15000

long term debt

shareholder fund

debt equity ratio

10000
5000
0
2012-13

2011-12

INTERPRETATION OF DEBT EQUITY RATIO

In this ratio calculation we are found Working Capital to Total Assets ratio of Texcel Engineers Private
Limited is constantly increasing from 2011 to 2013 from 0.30 to 0.32 which is usually a positive sign,
showing the company's liquidity is improving over time
5). PROPRIETARY RATIO

This is a variant of the debt-to-equity ratio. It is also known as equity ratio or net worth to total assets
ratio.

Formula:
Proprietary ratio = Shareholders funds
Total assets

YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Shareholders funds

25373.21

20153.84

Total Assets

66776.02

59260.29

Proprietary ratio

0.37:1

0.34:1

PROPRIETARY RATIO

shareholder

80000
60000
40000
20000
0

total assets

2012-13

proprietary ratio

2011-12

INTERPRETATION OF PROPRIETARY RATIO

By the calculated figures we can say that 37% of the companys total assets are financed by shareholders
funds. The proprietary ratio of the company is increasing from 2011 to 2012 which means that they are
employing more shareholders funds to finance their total assets. This ratio indicates that company has a
sufficient amount of equity to support the functions of the business, and probably has room in its financial
structure to take on additional debt, if necessary.

6. TOTAL DEBT TO TOTAL ASSETS

The debt to total assets ratio is an indicator of financial leverage. It tells you the percentage of
total assets that were financed by creditors, liabilities, debt.

YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Total debt

12679.88

14167.77

Total assets

66776.02

59260.29

Ratio

0.18

0.23

TOTAL DEBT TO TOTAL ASSETS

70000
60000
50000
40000

total debt

total assets

ratio

30000
20000
10000
0
2011-12

2012-13

INTERPRETATION OF TOTAL DEBT TO TOTAL ASSET

In this figer shows that the Debt to Total asset ratio are low to 1 so we can say that companys position is
very strong as very less amount of Assets are financed through Debt.

7 .TOTAL DEBT RATIO

It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total
assets (the sum of current assets, fixed assets, and other assets such as 'goodwill').

FORMULA:-TOTAL LIABLITIES
TOTAL ASSETS
YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Total Liabilities

41402.81

39106.45

Total assets

66776.02

59260.29

Ratio

0.62:1

0.65:1

TOTAL DEBT RATIO

70000
60000
50000
40000

total liabilities

total assets

total debt ratio

30000
20000
10000
0
2012-13

2011-12

INTERPRETATION OF TOTAL DEBT RATIO

Since the debt ratio of the company is constantly less than 1 from the last year we can infer that
the company has more assets than debt. The debt ratio greater than 1 indicates that a company
has more debt than assets. The measure gives an idea to the leverage of the company along with
the potential risks the company faces in terms of its debt-load.

8 .RATIOS RELATED TO ASSET UTILISATION OR TURNOVER

A) FIXED ASSETS TURNOVER RATIO

Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value
of fixed assets (on the balance sheet). It indicates how well the business is using its fixed
assets to generate sales.
Formula:

Fixed asset turnover ratio = Net sales

Total fixed assets
YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Net Sales

49244.44

43267.23

Total fixed assets

5644.42

5134.68

Fixed
Ratio

8.7

8.4

asset

turnover

FIXED ASSETS TURNOVER RATIO

50000
40000
30000
20000
10000
0

NS

fixed assets

2012-13

ratio

2011-12

INTERPRETATION FIXED ASSETS TURNOVER RATIO

The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed assets. The
fixed assets turnover ratio of the company is increasing from last year i.e. Year 2012 is 8.4. A higher
fixed-asset turnover ratio shows that the company has been more effective in using the investment in
fixed assets to generate revenues.

9). TOTAL ASSET TURNOVER RATIO

Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in
generating sales revenue or sales income to the company.
.
FORMULA:ASSET TURNOVER= NET SALES REVENUE/ TOTAL ASSETS

YEAR

2011-2012( l in cr)

2010-2011( l in cr)

Net Sales

49244.44

43267.23

Total fixed assets

66776.02

59260.29

Total asset turnover Ratio

0.73:1

0.73:1

TOTAL ASSETS TURNOVER RATIO

70000
60000
50000
40000

NS

fixed assets

ratio

30000
20000
10000
0
2012-13

2011-12

INTERPRETATION OF TOTAL ASSETS TURNOVER RATIO

The assets turnover ratio of the company indicates that ratio of 0.73 sales generated for every price worth
of assets in 2012. Asset turnover measures a firm's efficiency at using its assets in generating sales or
revenue - the higher the number the better. It also indicates pricing strategy companies with low profit
margins tend to have high asset turnover, while those with high profit margins have low asset turnover.

10). NET WORKING CAPITAL TURNOVER RATIO

The net working capital turnover ratio is the one that helps in establishing a relationship between
the net working capital and the net sales. Since there exists, a close direct relation between these
two aspects in any business.
Formula:
Net working capital/Net Sales
YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Net working capital

17892

12551

Net sales

66776.02

59260.29

Net working capital turnover

ratio

0.26

0.21

NET WORKING CAPITAL TURNOVER RATIO

70000
60000
50000
40000

NWC

NS

ratio

30000
20000
10000
0
2012-13

2011-12

INTERPRETATION OF NET WORKING CAPITAL TURNOVER RATIO

A measurement comparing the increment of working capital to the generation of sales over a given
period. This provides some useful information as to how effectively a company is using its working
capital to generate sales. The working capital turnover of the company is increasing from 2011 to 2012
from 0.21 to 0.26 which means that the company is utilizing its working capital efficiently
11). PROFITABLITIY RATIOS RELATED TO SALES

A) GROSS PROFIT RATIO

Gross profit ratio is the ratio of gross profit to net sales expressed as a percentage. It expresses
the relationship between gross profit and sales.
Formula: Gross profit = Gross profit / Net Sales) *100

YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Gross Profit

10353

9060

Net Sales

49244.44

43267.23

Gross profit ratio

21:1

20:1

GROSS PROFIT RATIO

50000
40000
30000
gross profit

net sa le

ratio

20000
10000
0
2012-13

INTERPRETATION OF GROSS PROFIT RATIO

2011-12

Gross profit ratio is a key financial indicator used to assess the profitability of a company's core activity,
excluding fixed cost. The gross profit ratio shows the proportion of profits generated by the sale of
products or services, before selling and administrative expenses. We can say that 21% of a company's
revenue is available to cover overhead, other expenses and profits in the year 2012.

12). NET PROFIT RATIO

Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage.
Formula:
Net profit= (net profit/net sales)*100
YEAR

2012-2013( l in cr)

2011-2012( l in cr)

Net Profit

7039.96

6011.20

Net Sales

49244.44

43267.23

Net profit ratio

14.2:1

13.8:1

NET PROFIT RATIO

50000
40000
30000

net profit

net sale

ratio

20000
10000
0
2012-13

2011-12

INTERPRETATION OF NET PROFIT RATIO

Net profit ratio is an indicator of how efficient a company is and how well it controls its costs. Th. The net
profit of Texcel Engineers Private Limited is first increasing in the year 2012-13 from the last year .We
can say Profitability ratio of company shows considerable increase. Companys sales have increased from
the last year & at the same time company has been successful in controlling the expenses i.e.
manufacturing & other expenses

13). PROFITABLITY RATIOS RELATED TO:

EARNING PER SHARE
Earnings per share ratio are a small variation of return on equity capital ratio and are
calculate by dividing the net profit after taxes and preference dividend by the total number of
equity shares.
Formula: (Net profit after tax- preference dividend/ no. of equity shares)

YEAR

2012-2013 (u in cr)

2011-2012 (u in cr)

7040

6011

No.of equity shares

244.76

244.76

Earning per share ratio

28.7

24.5

Net Profit
dividend

after

tax-

preference

EARNING PER SHARE

8000
7000
6000
5000
4000

npat

no.equity share

ratio

3000
2000
1000
0
2012-13

2011-12

INTERPRETATION OF EARNING PER SHARE RATIO

In this figer shows that Earnings per share serve as an indicator of a company's profitability. The EPS of
the company has increased from the last year. We can say that the earnings of the company have increased
in 2012 as new shares are issued.

14). RETURN ON CAPITAL EMPLOYED

in other words all the long-term funds used by the company. ROCE indicates the efficiency
and profitability of a company's capital investments.
FORMULA:
NPAT/CAPITAL EMPLOYED*100
YEAR

2012-2013(u in cr)

2011-2012(u in cr)

NPAT

1567

1525

Capital Employed

244.76

244.76

6.4

6.2

Return
on
employed ratio

capital

RETURN ON CAPITAL EMPLOYED

NPAT

capital empioye

return

2000
1000
0
2012-13

2011-12

INTERPRETATION OF RETURN ON CAPITAL EMPLOYED

The return on capital employed of Texcel Engineers Private Limited is 6.2% in 2012 this indicate the
management's ability to generate 6.2% earnings from a company's total pool of capital. The return on
capital employed is increasing from the last year which is a good sign, from company point of view.

15). DIVIDEND PER SHARE

Dividends Per Share (EPS) - Dividends per share represents the cash (or property) paid
on each share of outstanding common stock.
Formula:
Dividend per share = Dividends paid / number of shares outstanding.
YEAR

2012-2013(u in cr)

2011-2012(u in cr)

Dividends paid

1567

1525

No.of shares

244.76

244.76

6.4

6.2

outstanding
Dividend per share

*No of shares

489.52/2=244.76

DIVIDEND PER SHARE

divident pay

no. of share

divident per ratio

2000
1500
1000
500
0
2012-13

2011-12

INTERPRETATION OF DIVIDEND PER SHARE RATIO

In the year 2012-2013 and 2011-2012 the Dividend pay out ratio is 6.4 and 6.2 respectively. The company
has earned more profit in the year 2011-2012 hence the company has declared dividend in the year 201213.

16). RETURN ON TOTAL SHAREHOLDERS FUNDS

It is the relationship between net profit after interest and tax and shareholders fund. This ratio
establishes the profitability from the share holders point of view. The ratio is generally
calculated in percentage.
Formula: NPAT/SHAREHOLDERS FUNDS * 100
YEAR

2012-2013(u in cr)

2011-2012(u in cr)

NPAT

7040

6011

Shareholder funds
Return
on
shareholders funds

total

25373.21

20153.84

27.7:1

29.9:1

RETURN ON TOTAL SHAREHOLDERS FUND

30000
25000
20000
15000

NPAT

shairholder fund

return

10000
5000
0
2012-13

2011-12

INTERPRETATION OF RETURN ON TOTAL SHAREHOLDERS FUND

This ratio shows the relationship between profit & equity shareholders fund in the company... Net profit
and share holders fund of Texcel Engineers Private Limited has increased from last year but the ratio has
been slightly decreased, this is due to increase in Reserves and surplus ofTexcel Engineers Private
Limited. So there is nothing to worry for shareholders.

SUMMARY OF FINANCIAL POSITION OF TEXCEL ENGINEERS PRIVATE LIMITED

After going through the various ratios, I would like to state that:

The short-term solvency of the company is quite satisfactory.

Immediate solvency position of the company is also quite satisfactory. The

company can meet its urgent obligations immediately.

Over all profitability position of the company is quite satisfactory.

Stock turnover rate is satisfactory. Stock of the company is moving fast in the
market.

The company is paying promptly to the suppliers.

The management should take care of inventory management and speed up the movement of stock.
Effective selling technique or product modification may be adopted to face the competitors and to
improve the financial position of the company by taking appropriate decisions.

Findings

1. Researcher found that Texcel Engineers Private Limited the current ratio is 1.4:1 in 20112012. It means that for 1 rupee of current liabilities, the current assets are 1.4 rupee is
available to them. This shows that company may face some problems in payment of
current liabilities.
2. Researcher found that Working Capital to Total Assets ratio of Texcel Engineers Private
Limitedis constantly increasing from 2011 to 2013 from 0.30 to 0.32 which is usually a

positive sign, showing the company's liquidity is improving over time.

3. Researcher found that Working Capital to Total Assets ratio of Texcel Engineers Private
Limitedis constantly increasing from 2011 to 2013 from 0.30 to 0.32 which is usually a

positive sign, showing the company's liquidity is improving over time.

4. Researcher found that37% of the companys total assets is financed by shareholders
funds. The proprietary ratio of the company is increasing from 2011 to 2012 which means
that they are employing more shareholders funds to finance their total assets.
5. Researcher found that in this figer shows that the Debt to Total asset ratio are low to 1 so
we can say that companys position is very strong as very less amount of Assets are
financed through Debt.

6. Researcher found that debt ratio of the company is constantly less than 1 from the last
year we can infer that the company has more assets than debt. The debt ratio greater than
1 indicates that a company has more debt than assets
7. Researcher found that assets turnover ratio of the company indicates that ratio of 0.73
sales generated for every price worth of assets in 2012. Asset turnover measures a firm's
efficiency at using its assets in generating sales or revenue - the higher the number the
better.
8. Researcher found thatworking capital turnover of the company is increasing from 2011 to
2012 from 0.21 to 0.26 which means that the company is utilizing its working capital
efficiently.
9. Researcher found that gross profit ratio shows the proportion of profits generated by the
sale of products or services, before selling and administrative expenses. We can say that
21% of a company's revenue is available to cover overhead, other expenses and profits in
the year 2012.
10. Researcher found that net profit of Texcel Engineers Private Limited is first increasing in
the year 2012-13 from the last year .We can say Profitability ratio of company shows
considerable increase.
11. Researcher found that Earnings per share serve as an indicator of a company's
profitability. The EPS of the company has increased from the last year. We can say that
the earnings of the company have increased in 2012 as new shares are issued.

12. Researcher found that in the year 2012-2013 and 2011-2012 the Dividend pay out ratio is
6.4 and 6.2 respectively. The company has earned more profit in the year 2011-2012
hence the company has declared dividend in the year 2012-13.
13. Researcher found that relationship between profit & equity shareholders fund in the
company... Net profit and share holders fund of Texcel Engineers Private Limited has
increased from last year but the ratio has been slightly decreased, this is due to increase in
Reserves and surplus ofTexcel Engineers Private Limited. So there is nothing to worry
for shareholders

Recommendations

1.

Proper training should be given to the concerned employees for improving the

efficiency of the company because motivated employees give their best performance and
are able to bring much better results than the others and time to time refresher courses
should be run.
2.
Company should conduct the Exit Interview because those employees who are
leaving company can give better suggestions for improving the position of the company.
This will help the company to understand the problem of the employees and will be able
to know the reason why their employees are leaving the company. Example: NTPC,

SAIL, these companies are also taking Exit Interviews for modification and improving
the company.
3.
Company should take suggestion suggestions from their employees at time to
time specially with the technical employees so that the efficiency of the plant will be
increased and there will be more production on lower cost...
4.
Regulatory commission should work properly. They should try to minimize the
cost, so that general customer should meet the cost easily.
5.
They should try to improve the operational efficiency and performance of state
utilities.
6.
The human resource can be optimizing to a certain extent for increasing
profitability.
7.

HAPPY EMPLOYEES ARE THE PRODUCTIVE EMPLOYEE

CONCLUSIONS

This aim of this project is to analysis the liquidity and profitability position of the company using the
financial tools. This study is based on financial statements such as Ratio Analysis.
The study is made to evaluate the financial position, the operational results as well as financial progress
of a business concern. It explains the ways in which ratio analysis can be of assistance in long-rang

planning, budgeting and asset management to strengthen financial performance and help avoid financial
difficulties.

The project not only throws on the financial position of a firm but also serves as a stepping stone to
remedial measures for Texcel Engineers Private Limitedby suggesting the area of weaker position of
business transaction in the company.

Texcel Engineers Private Limited has recorded highest ever turnover and profit during 2011-12, at a time
when the

economic and business environment in India was undergoing some uncomfortable changes.

With the turnover and net profit of r 49,510crore and r 7,040 crore, company has registered growth of
19.9%and 24.3% in 2010-11 respectively during the year excluding onetime impact of change in policy in
2010-11 related to provisions for warranty obligations for earlier years. Despite stagnation in the power
sector and intense competitive pressure in domestic and overseas markets, Texcel Engineers Private
Limited secured orders worth r 22,096 crore, during the year.

At the end of the year, cumulative orders in hand for execution in 2012-13 and beyond, stand at about r
1,35,300 crore.

As per Companies annual Report Continuing its focus on Engineering and R&D, company invested r
1,198.82 crore in R&D and filed 351 patents during the year. This is enabling us to build and consolidate
our innovation capabilities in emerging and existing areas.

So We can concluded that Financial Position is company is better as Turnover and Profit is increasing,
only concern for the Company is their order book as order booking is Decreasing drastically due to
stagnation in Power Sector. So till now position of Company is better if Company will be able to improve
their position in order booking it will be able to continue its performance.

LIMITATIONS

First it was not possible to study various aspects of the organization in details.

Employees were apprenhsive of secrecy of data therefore hesitated in disclosing

all the data regarding some of the points concerning to this study.

Since the financial statements are concerned to the monetary matters only, the qualitative
elements like quality management, quality of labor, public relations are ignored while
carrying out the analysis of financial statements only.

Annexures
Age:Grade:Department:Designation:-

Financial statement
( rs
2011-12
(A)
Turnover
Profit before tax
Profit after tax
Retained earnings

2010-2011* 2010-2011
(B)

(C)

in Crore)

change (%)
(A/B)

(A/C)

Total assets
Net worth
Long term borrowings
Debt equity
Per share(in rs)
Net worth
Earnings
Economic value added
Employee(nos)

BIBLIOGRAPHY
INTERNET SITES
http://www.powermin.nic.in/

http://www.bhel.com/
http://www.bhelpem.co.in.
http://www.pemintranet.com

NEWSPAPERS

Financial Express
Economic Times

BOOKS and REFERENCES

Financial Management - S.N.Maheshwari

Corporate Finance - S.N Maheshwari