SYNOPSIS

1) Area and title of project work in first semester:

i. Title– Career in Banking Sector as an Accountant Manager.

ii. Area – Life Insurance Corporation of India.

2) Area and title of project work in second semester:

i. Title – Career in Public Sector as a Manager.

ii. Area – Adecco Company of India.

3) Area and option selected and survey conducted in 1st and 2nd
semester:

i. Name of options – Accountant Manager.

ii. Area – Life Insurance Corporation of India (LIC).

A) In relation to selected option

i. Minimum age – 21yrs.

ii. Minimum educational qualification – Bachelor's Degree in

Accounting or a related field and five years of professional
accounting experience; OR, Nine years of professional
accounting experience; OR, Any equivalent combination of
experience and/or education from which comparable
knowledge, skills and abilities have been achieved.

iii. Minimum technical qualification - Not required.

iv. Experience – 4-5yrs of experience and assisting in the creation and

implementation of ERP system (SAP) would be an added advantage.
 v. Additional qualification – only after qualifying different
departmental tests.

vi. Minimum daily working hours – 8hrs.

vii. Expected financial receipt in future – 50,000 to 70,000 per month.

viii. Detailed working procedure – Ability to work for long hours to

establish the reporting and accounting systems, ability to meet
deadlines, ability to work with others and establish strict financial
discipline. The insurance giant opted for internet services for all
its subscribers and developed massive networking for own
usage and internal governance. While the pros and cons of
internal networking remains concealed within the officials and
hidden for the common customers, the customer portal
somehow fails to satisfy the 21st century customers.
Apparently, low bandwidth, unwise web page hyper linking,
illogical page set ups, all just contribute to the irritation of
common net age customers.The portal gives opportunity to
register any policy to be tagged up with any one. As a matter of
fact, if Mr. 'A' knows the policy number and premium value of
certain policy 'X' of Mr. 'B,' 'A' can tag up 'X' with his own Profile
in LICI portal and get all the details of the policy. Moreover,
though the organization is officially known as Life Insurance
Corporation of India, abbreviated, LICI, the portal welcomes a
customer to LIC. As a result of all these, online payment of premium
through the site could not be a popular option for the customers.

B) In relation to selected option:

i. Availability of human resources/demand in market/availability of

raw material:

a) At national level – yes, availability of human resources and raw

material is at national level.
b) At state level
c) At local level
 ii. Availability of Corporation/Financial Resources/Loan Facility:

a) At national level – yes, availability of Financial resources and

Loan facilities is at national level.
b) At state level
c) At local level

iii. Selected process/targeted production:

Goal: Apportion the Work in Accounting More Effectively

Strategy: In finance, we changed the distribution of responsibilities
from the CFO down to the entry-level clerk. In general, each accounting
staff person was given more responsibility over their own work quality
and given one or more special projects aimed at improving the efficiency
and/or quality of one of our processes, either within the accounting
department or a process affecting accounting and one or more other
departments.
Result: There is an increase in work quality and output.--Accounting
manager, real estate, 200 employees, New Jersey.
Goal: Improve Accounting Department Reports.

iv. Selected process/suggestions for increase in production:

As the world becomes more interconnected via global systems and

international commerce, the need increases for accountants to be
knowledgeable in international accounting standards as well as new
technologies that assist management in making decisions. In short,
accountants will need to be life-long learners who work closely with
people in such fields as marketing, production, information technology,
and e-commerce.
 C) What is the difference you find during the project work
between theory and practical classes?

From theory I learned the theoretical part of management which gave

me the solid base of principles regarding effective management. But
during my practical session, in my overall conduct as an individual, I
learned many things like:

1) Leadership quality.
2) Maintaining good relation.
3) Positive attitude.
4) Good Communication skills.
5) Motivational attitude.
6) Strong interpersonal, supervisory and customer service
skills required.
7) Ability to multi-task and work under pressure.

D) Suggestions for reducing the difference you find in point (C)

By the end of this decade, management accountancy and

auditing will be seen as full and equal partners within the wider
accountancy profession. Management Accounting is becoming as vital as
financial Accounting and will become more and more vital in the near future.
Membership and student registrations have grown by 35 and 40 per cent
respectively in the seven years since January 1986. Membership in the Institute
of Management Accountants has
grown from 97 charter members in 1919 to 90,000 members today. The chapter
number has now grown from 4 to 300. Management Accounting is the wave of
the futurebecause of the new management techniques of total quality
management, just-in-time manufacturing and activity-based costing. There is no
doubt that the public now has a much better understanding of the profession of
management accountancy and the capabilities of Institute members.

E) Proficiency Promotion

i. Role of direct skills for achieving success.

1. Knowledge of accounting principles, practices and

procedures.

2. Knowledge and skill in supervisory practices and

principles.

3. Knowledge of computerized accounting systems

and applications to include main frame terminals/
personal computers, general software applications
and keyboard facility.

4. Skill in performing detailed and complex numerical

computations and reports.

5. Skill in both verbal and written communication.

ii. Role of indirect skills for achieving success.

As an accounting manager, you need to assume a strong leadership

role and share as much information as you can about the up-coming
events. Let employees know exactly what is planned, why it's taking
place and how it affects them. Provide as much notification as possible.
If your firm will be experiencing a reorganization, for instance, it's more
effective to inform staff well in advance so they can provide input, seek
necessary training, and adapt to the new structure. When employees
are blindsided by the news, they may develop feelings of resentment
and distrust.
Be sure to acknowledge any potential hurdles. If staff members already
have trepidation about change, their resistance may increase if you
gloss over valid concerns. It's better to be honest about obstacles and
then talk about how you plan to help your employees overcome them.
Make sure you're communicating regularly. Even if there aren't any
updates to report, it's better to say so than to let people draw their own
conclusions, since some will assume the worst when they receive little
information. Encourage staff to approach you whenever they have
questions.
Understand the Group Dynamic
While some employees may prefer to participate in group discussions,
others may want to offer their ideas to you in one-on-one meetings.
Accommodate the individual needs of your staff members.
In addition, try to anticipate their concerns. A group that thrives
oncollaboration, for example, may worry that a particular change will
hinder their teamwork. When you speak with them, be sure to address
their primary issues.
Make an effort to get key players to support the change. These
individuals may not necessarily be your senior employees--they could
simply be those who are most respected within the department. Often
they can help turn reluctant employees into supporters through their
own excitement about upcoming developments.

1. Supervises activities of subordinates.

2. Plans, directs, organizes and schedules the

activities of one or more specialized accounting
functions.
 3. Analyzes, develops and documents accounting and
cost procedures and controls related to assigned
tasks.

4. Researches and evaluates pertinent professional

and related legal literature to establish and/or
recommend changes to accounting procedures and
operations.

5. Provides operating cost visibility, direction and

consultation to university officials relative to fiscal
planning, control, and expending of university
assets.
6. Prepares and/or directs the preparation of special
statistical reports, detailed cost accounting
information, surveys or analyses of a complex and
difficult nature for management.

7. Provides internal/external training both orally and in

writing on accounting systems, procedures and
practices.

8. Interprets various accounting data, analyzes reports

and recommends and/or initiates actions to be
taken.

F) Detailed assessment of yourself and the basis of direct and

indirect skills in relation to selected option.

The Accounting Manager is responsible for all areas relating to

financial reporting. This position will be responsible for
developing and maintaining accounting principles, practices
and procedures to ensure accurate and timely financial
statements. The Accounting Manager supervises five staff
accountants and is responsible for managing the team to
ensure that work is properly allocated and completed in a
timely and accurate manner. This position addresses tight
deadlines and a multitude of accounting activities including
general ledger preparation, financial reporting, year end audit
preparation and the support of budget and forecast activities.
The Accounting Manager will have contact with senior-level
Attorneys and the firm’s Executive Director and Controller
which requires strong interpersonal communication skills both
written and verbal.

Obtain and maintain a thorough understanding of the financial

reporting and general ledger structure.

Ensure an accurate and timely monthly, quarterly and year end

close.

Ensure the timely reporting of all monthly financial information.

Assist the Controller in the daily banking requirements.

Ensure the accurate and timely processing of positive pay

transactions.

Ensure the monthly and quarterly Bank Compliance activities

are performed in a timely and accurate manner.

Supports budget and forecasting activities.

Collaborates with the other finance department managers to

support overall department goals and objectives.

Monitors and analyzes department work to develop more

efficient procedures and use of resources while maintaining a
high level of accuracy.
Advises staff regarding the handling of non-routine reporting
transactions.

Responds to inquiries from the Director of Finance, Controller,

and other finance and firm wide managers regarding financial
results, special reporting requests and the like.

Work with the Controller to ensure a clean and timely year end
audit.

Supervise the general ledger group to ensure all financial

reporting deadlines are met.

Assist in development and implementation of new procedures

and features to enhance the workflow of the department.

Provide training to new and existing staff as needed.

Handle personnel issues relating to staff conflicts, absenteeism,

performance issues, etc.

Work with each direct report to establish goals and objectives

for each year and monitor and advise on the progress to
enhance the professional development of staff.

Support Controller with special projects and workflow process improvements.

F) Expectation and suggestions in relation to selected option

considering the present scenario:
i. At syllabus level
a) Expectations -
b) Suggestions

ii. At university level

a) Expectations
b) Suggestions
 iii. At examination level
a) Expectations
b) Suggestions

iv. At Administration level

a) Expectations
b) Suggestions

v. At Self level
a) Expectations
b) Suggestions

H)To what extent the selection opted by you help in your

future?

The role of Management Accounting in the future looks good. Based on the
articles I read, Management Accounting is going to be the wave of future for
accounting. Because of new management techniques, accounting has become
more vital to the company as a whole. Some of the new ways of management
include total quality management (TQM), just-in-time (JIT) production and
purchasing methods and
activity-based costing. These various types of management styles pull
accounting into the company process more easily. Accounting has become an
actual part of the management process; therefore, the need of Management
Accounting has grown in proportion to the new management styles.
Accountants are now becoming a larger part of cross functional teams and are
being used more in the decision making process.

By the end of this decade, management accountancy and

auditing will be seen as full and equal partners within the wider accountancy
profession. Management Accounting is becoming as vital as financial
Accounting and will become more and more vital in the near future.
Membership and student registrations have grown by 35 and 40 per cent
respectively in the seven years since January 1986. Membership in the Institute
of Management Accountants has grown from 97 charter members in 1919 to
90,000 members
today. The chapter number has now grown from 4 to 300. Management
Accounting is the wave of the future because of the new management
techniques of total quality management, just-in-time manufacturing and
activity-based costing. There is no doubt that the public now has a much better
understanding of the profession of management accountancy and the
capabilities of Institute members.

BOARD OF DIRECTORS

Members On The Board Of The Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)

Shri. Thomas Mathew T. (Managing Director - LIC)

Shri. A.K. Dasgupta (Managing Director - LIC)

Shri. Ashok Chawla (Finance Secretary, Ministry of Finance,

Govt. of India)

Shri. R. Gopalan (Secretary, Department of Financial

Services, Ministry of Finance, Govt. of India.)

Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC

of India)

Shri S.Sridhar, Chairmain & Managing Director , Central Bank

of India

Shri D.L. Rawal (Chairman & Managing Director , Dena

Bank)

Dr. Sooranad Rajashekhran

Board of Directors

The LIC Board of Directors is comprised of ten directors; seven

farmer, and three independently appointed. Directors have all
the powers necessary to manage, direct and supervise the
management, business and affairs of the company, except to
the extent that the Constitution or the Act (Dairy Industry
Restructuring Act 2001), expressly require those powers to be
exercised by the Shareholders or by any other person.

LIC has two levels of governance, Directors and Shareholder

Councillors. Qualification requirements are than each shall be a
dairy farmer, a current user of at least one of the company’s
herd testing options and must submit at least 60% of their herd
for artificial breeding to semen marketed by LIC.

There are four designated regions represented by seven

elected directors.

Directors are:

Northern - Murray Jagger

Midland - Stuart Bay, Ted Coats
Central - Steve Poole, Bryan Guy
Southern - Murray King, Alvin Reid

Directors serve a four year term with elections held on a rotational basis. Shareholders within each region
have one vote for each Co-operative control share held in respect of qualifying products and services on
the farm in that region. No Shareholder can exercise or contrast more than 1% of the maximum number of
votes.

HONOURED BY:
“In the year 1956, 245 Indian and foreign companies were
nationalized and today, the three letters ‘LIC’, stands as a
synonym for insurance, for services, for excellence in
strengthening the economic fibre of this country. I dare to say
that no other three letters taken together are more recognised
to the length and breadth of India than LIC.”

“The performance figures of LIC give an indication why LIC is

dear to us, why LIC is a Jewel in our crown and why we will
continue to nurture LIC and grow it into a great organization
rendering service to the people of India.”

“LIC’s footprints are now to be found in many other countries

in the world. Wherever Indians go - and they go everywhere
now, wherever Indians are welcome - and they are welcome in
every part of the world, wherever Indians settle down – they
have found many new homes, wherever Indians excel – and
they excel in every walk of life, they want LIC – they want LIC
to protect them, to look after their savings, and provide for
protection as well as their retirement.”

P. Chidambaram
Union Finance Minister
Excerpts from speeches at the inaugural function of LIC’s
Golden Jubilee Celebrations.
Lucknow, September 1, 2005.

Brief History Of Insurance:

The story of insurance is probably as old as the story of

mankind. The same instinct that prompts modern businessmen
today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing
to make some sort of sacrifice in order to achieve security.
Though the concept of insurance is largely a development of
the recent past, particularly after the industrial era – past few
centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England

in the year 1818. Oriental Life Insurance Company started by
Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during
that period were brought up with the purpose of looking after
the needs of European community and Indian natives were not
being insured by these companies. However, later with the
efforts of eminent people like Babu Muttylal Seal, the foreign
life insurance companies started insuring Indian lives. But
Indian lives were being treated as sub-standard lives and
heavy extra premiums were being charged on them. Bombay
Mutual Life Assurance Society heralded the birth of first Indian
life insurance company in the year 1870, and covered Indian
lives at normal rates. Starting as Indian enterprise with highly
patriotic motives, insurance companies came into existence to
carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise
to more insurance companies. The United India in Madras,
National Indian and National Insurance in Calcutta and the Co-

operative Assurance at Lahore were established in 1906. In

1907, Hindustan Co-operative Insurance Company took its
birth in one of the rooms of the Jorasanko, house of the great
poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,
General Assurance and Swadeshi Life (later Bombay Life) were
some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance
business. In the year 1912, the Life Insurance Companies Act,
and the Provident Fund Act were passed. The Life Insurance
Companies Act, 1912 made it necessary that the premium rate
tables and periodical valuations of companies should be
certified by an actuary. But the Act discriminated between
foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of

growth in insurance business. From 44 companies with total
business-in-force as Rs.22.44 crore, it rose to 176 companies
with total business-in-force as Rs.298 crore in 1938. During
the mushrooming of insurance companies many financially
unsound concerns were also floated which failed miserably.
The Insurance Act 1938 was the first legislation governing not
only life insurance but also non-life insurance to provide strict
state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly
in the past but it gathered momentum in 1944 when a bill to
amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th
of January, 1956, that life insurance in India was nationalized.
About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in
two stages; initially the management of the companies was
taken over by means of an Ordinance, and later, the ownership
too by means of a comprehensive bill. The Parliament of India
passed the Life Insurance Corporation Act on the 19th of June
1956, and the Life Insurance Corporation of India was created
on 1st September, 1956, with the objective of spreading life
insurance much more widely and in particular to the rural
areas with a view to reach all insurable persons in the country,
providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch

offices, apart from its corporate office in the year 1956. Since
life insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need was
felt in the later years to expand the operations and place a
branch office at each district headquarter. Re-organization of
LIC took place and large numbers of new branch offices were
opened. As a result of re-organisation servicing functions were
transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of
the corporation. It may be seen that from about 200.00 crores
of New Business in 1957 the corporation crossed 1000.00
crores only in the year 1969-70, and it took another 10 years
for LIC to cross 2000.00 crore mark of new business. But with
re-organisation happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new
policies.

Today LIC functions with 2048 fully computerized branch

offices, 109 divisional offices, 8 zonal offices, 992 satallite
offices and the Corporate office. LIC’s Wide Area Network
covers 109 divisional offices and connects all the branches
through a Metro Area Network. LIC has tied up with some
Banks and Service providers to offer on-line premium
collection facility in selected cities. LIC’s ECS and ATM
premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres
have been commissioned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other
cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to
the customer. The digitalized records of the satellite offices will
facilitate anywhere servicing and many other conveniences in
the future.

LIC continues to be the dominant life insurer even in the

liberalized scenario of Indian insurance and is moving fast on a
new growth trajectory surpassing its own past records. LIC has
issued over one crore policies during the current year. It has
crossed the milestone of issuing 1,01,32,955 new policies by
15th Oct, 2005, posting a healthy growth rate of 16.67% over
the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has
set unprecedented performance records in various aspects of
life insurance business. The same motives which inspired our
forefathers to bring insurance into existence in this country
inspire us at LIC to take this message of protection to light the
lamps of security in as many homes as possible and to help the
people in providing security to their families.

Some of the important milestones in the life

insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance
company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian

life insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable

the government to collect statistical information about both life
and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of
the insuring public.
1956: 245 Indian and foreign insurers and provident societies
are taken over by the central government and nationalised.
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of
India.

The General insurance business in India, on the other hand,

can trace its roots to the Triton Insurance Company Ltd., the
first general insurance company established in the year 1850
in Calcutta by the British.

Some of the important milestones in the

general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair
conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and

set minimum solvency margins and the Tariff Advisory
Committee set up.

1972: The General Insurance Business (Nationalisation) Act,

1972 nationalised the general insurance business in India with
effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies
viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd.
and the United India Insurance Company Ltd. GIC incorporated
as a company.

Objectives Of LIC

• Spread Life Insurance widely and in particular to the rural

areas and to the socially and economically backward
classes with a view to reaching all insurable persons in the
country and providing them adequate financial cover
against death at a reasonable cost.
• Maximize mobilization of people's savings by making
insurance-linked savings adequately attractive.
 • Bear in mind, in the investment of funds, the primary
obligation to its policyholders, whose money it holds in
trust, without losing sight of the interest of the community
as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a
whole, keeping in view national priorities and obligations
of attractive return.
• Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
• Act as trustees of the insured public in their individual and
collective capacities.
• Meet the various life insurance needs of the community
that would arise in the changing social and economic
environment.
• Involve all people working in the Corporation to the best
of their capability in furthering the interests of the insured
public by providing efficient service with courtesy.

KNOW ABOUT LIFE

INSURANCE OF INDIA

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the

world, the prominence of insurance is not as widely
understood, as it ought to be. What follows is an attempt to
acquaint readers with some of the concepts of life insurance,
with special reference to LIC.

It should, however, be clearly understood that the following

content is by no means an exhaustive description of the terms
and conditions of an LIC policy or its benefits or privileges.

For more details, please contact our branch or divisional office.

Any LIC Agent will be glad to help you choose the life
insurance plan to meet your needs and render policy servicing.

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount

to the person assured (or his nominee) on the happening of
the event insured against.

The contract is valid for payment of the insured amount

during:

• The date of maturity, or

• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the

payment of premium periodically to the Corporation by the
policyholder. Life insurance is universally acknowledged to be
an institution, which eliminates 'risk', substituting certainty for
uncertainty and comes to the timely aid of the family in the
unfortunate event of death of the breadwinner.
By and large, life insurance is civilisation's partial solution to
the problems caused by death. Life insurance, in short, is
concerned with two hazards that stand across the life-path of
every person:

1. That of dying prematurely leaving a dependent family to

fend for itself.
2. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract Of Insurance:
A contract of insurance is a contract of utmost good faith
technically known as uberrima fides. The doctrine of disclosing
all material facts is embodied in this important principle, which
applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that

all questions in the proposal form are correctly answered. Any
misrepresentation, non-disclosure or fraud in any document
leading to the acceptance of the risk would render the
insurance contract null and void.

Protection:

Savings through life insurance guarantee full protection against

risk of death of the saver. Also, in case of demise, life
insurance assures payment of the entire amount assured (with
bonuses wherever applicable) whereas in other savings
schemes, only the amount saved (with interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings

since payments can be made effortlessly because of the 'easy
instalment' facility built into the scheme. (Premium payment
for insurance is either monthly, quarterly, half yearly or
yearly).
For example: The Salary Saving Scheme popularly known as
SSS, provides a convenient method of paying premium each
month by deduction from one's salary.

In this case the employer directly pays the deducted premium

to LIC. The Salary Saving Scheme is ideal for any institution or
establishment subject to specified terms and conditions.

Liquidity:

In case of insurance, it is easy to acquire loans on the sole

security of any policy that has acquired loan value. Besides, a
life insurance policy is also generally accepted as security,
even for a commercial loan.
Tax:
Life Insurance is the best way to enjoy tax deductions on
income tax and wealth tax. This is available for amounts paid
by way of premium for life insurance subject to income tax
rates in force.

Assessees can also avail of provisions in the law for tax relief.
In such cases the assured in effect pays a lower premium for
insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of

different plans can be effectively used to meet certain
monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even
periodical needs for cash over a stretch of time can be less
stressful with the help of these policies.

Alternatively, policy money can be made available at the time

of one's retirement from service and used for any specific
purpose, such as, purchase of a house or for other
investments. Also, loans are granted to policyholders for house

building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter
into a valid contract can insure himself/herself and those in
whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the

life of one's spouse or children. While underwriting proposals,
certain factors such as the policyholder’s state of health, the
proponent's income and other relevant factors are considered
by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer

insurance to female lives with some extra premium or on restrictive conditions.
However, after nationalisation of life insurance, the terms under which life
insurance is granted to female lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men.
In other cases, a restrictive clause is imposed, only if the age of the female is up
to 30 years and if she does not have an income attracting Income Tax.
(Rs crore)

Profit And Loss Account

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Income
Operating income 3,456.24 2,880.17 2,089.40 1,547.13 1,237.92
Expenses
Material consumed - - - - -
Manufacturing expenses - - - - -
Personnel expenses 48.49 44.86 34.60 26.79 25.06
Selling expenses 84.35 65.04 58.97 46.02 35.83
Adminstrative expenses 14.69 44.43 59.85 50.39 84.73
Expenses capitalised - - - - -
Cost of sales 147.53 154.33 153.42 123.20 145.61
Operating profit 3,308.71 2,725.84 1,935.98 1,423.93 1,092.30
Other recurring income 19.22 13.16 83.22 19.11 23.88
Adjusted PBDIT 3,327.92 2,739.00 2,019.20 1,443.04 1,116.18
Financial expenses 2,411.17 2,017.36 1,494.26 1,107.89 859.43
Depreciation 6.37 4.99 3.69 3.82 4.47
Other write offs - - - - -
Adjusted PBT 910.38 716.65 521.25 331.34 252.28
Tax charges 249.09 191.93 145.11 74.76 50.90
Adjusted PAT 661.29 524.72 376.13 256.58 201.38
Non recurring items -0.07 10.58 10.46 21.84 11.57
Other non cash adjustments 0.95 -3.69 0.60 0.73 -4.38
Reported net profit 662.18 531.62 387.19 279.15 208.57
Earnigs before appropriation 888.00 633.00 399.07 286.30 222.51
Equity dividend 142.40 110.41 84.93 67.95 50.96
Preference dividend - - - - -
Dividend tax 24.20 18.76 14.43 10.29 7.15
 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Retained earnings 721.40 503.82 299.70 208.07 164.40

(Rs crore)

Balance Sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund
Equity share capital 95.00 85.00 85.00 85.00 85.00
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 3,292.68 2,149.10 1,746.66 1,458.84 1,260.51
Loan funds
Secured loans 31,014.98 23,523.95 19,113.40 14,676.95 12,361.36
Unsecured loans 3,743.17 1,897.71 1,231.03 1,655.64 1,419.05
Total 38,145.83 27,655.75 22,176.08 17,876.43 15,125.92
Uses of funds
Fixed assets
Gross block 66.34 59.63 46.41 43.26 41.14
Less : revaluation reserve - - - - -
Less : accumulated depreciation 32.83 27.30 23.42 20.16 16.90
Net block 33.51 32.33 22.99 23.11 24.24
Capital work-in-progress 2.11 2.19 7.02 0.50 0.22
Investments 1,388.70 1,129.15 774.56 206.12 314.14
Net current assets
Current assets, loans & advances 38,820.65 28,221.41 22,552.39 18,556.29 15,381.84
Less : current liabilities & provisions 2,099.14 1,729.32 1,180.88 909.58 594.53
Total net current assets 36,721.51 26,492.09 21,371.51 17,646.71 14,787.31
Miscellaneous expenses not written - - - - -
Total 38,145.83 27,655.75 22,176.08 17,876.43 15,125.92