BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

JAIPURIA INSTITUTE OF
MANAGEMENT, INDORE

SUBJECT- FINANCIAL ACCOUNTING

PROJECT REPORT
ON
RATIO ANALYSIS OF BAJAJ ALLIANZ

SUBMITTED BY- i-- SUBMITTED TO-

AAKRATI RATHORE iiiiiiiiiiiiiiii DR. PRITI BAKHSHI
ADITI SURJEY
ADITYA JHA
AKSHAT JAIN
AYUSH DUBEY

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

INTRODUCTION

Bajaj Allianz Life Insurance started tasks on 12 March 2001 and today
has a container India nearness of 759 branches. It is headquartered
in Pune, India. Bajaj Allianz Life Insurance got the Insurance
Regulatory and Development Authority (IRDA) endorsement of
Registration on 3 August 2001 to lead Life Insurance business in
India.
Bajaj Allianz Life Insurance is a joint endeavour between Bajaj Finserv
Limited (in the past piece of Bajaj Auto Limited) claimed by the Bajaj
Group of India and Allianz SE, an European budgetary
administrations organization. Being one of the private insurance
agencies in India, it offers protection items for budgetary arranging
and security.
Bajaj Allianz Life Insurance offers a range of insurance services,
operating through Participating, Non-Participating, and Linked
segments.
Bajaj Allianz Life Insurance launches digital branches through
Mosambee. Mosambee is a handheld device that offers the services
of a mobile branch and assists customers with an entire range of
customer services.

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

FINANCIAL STATEMENTS
Profit and loss account for the year ended 31 march 2019
Particulars For the Common For the Common
year Size year Size
ended 31 statement ended 31 statement
March 2019 (%) March 2018 (%)
2019 2018

Operating profit as per

revenue accounts of
(a) Fire insurance 456627 3.682864883 687365 4.979403677
(b) Marine insurance -180165 - 139121 1.007819163
1.453097061
(c) Miscellaneous 9400383 75.81755008 11046564 80.02342482
insurance
9676845 78.0473179 11873050 86.01064766
income from 0 0
investments
(a) Interest, dividends 2540513 20.49017275 1716031 12.43125715
and rent - Gross
(b) Amortization of -62880 - -42016 -
discount/(premium) 0.507150352 0.304371949
(c) Profit on 354353 2.857987416 336170 2.43527985
sale/redemption of
investments
less:- Loss on -110141 - -93790 -
sale/redemption of 0.888327718 0.679432719
investments
2721845 21.9526821 1916395 13.88273233
Other income - - #VALUE! 14718 0.10662001
miscellaneous income
Total (a) 12398690 100 13804163 100
provisions (other than
taxation)
(a) For diminution in 563949 -
the value of
investments
(b) For doubtful debts 13807 10215
(c) Others - -
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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

Other expenses
(a) Expenses other 305770 251544
than those related to
the insurance business
(b) Bad debts written - -
off
(c) Fines & penalties - 13271
(d) Others - -
883526 275030
Total (B) 883526 275030
profit before tax 11515164 13529133
Provision for taxation
Current tax (refer 4728274 4205324
schedule 16 - Note 25)
Deferred tax -1011693 111397
Expense/(Income)
(refer schedule 16 -
Note 18)
3716581 4316721
profit after tax 7798583 9212412
(a) Final dividends 1102273 -
paid
(b) Proposed final - -
dividend
(c) Dividend 226575 -
distribution tax
(d) Transfer to - -
reserve/other accounts
Balance of Profit 41619413 32407001
brought forward from
last year

Balance carried 48089148 41619413

forward to Balance
Sheet

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

Balance Sheet as at 31 march 2019

(` in ‘000)

Particulars Schedule As at 31 As at 31
March 2019 March 2018

SOurCES Of fuNdS
Share capital 5 11,02,273 11,02,273
Reserves and surplus 6 4,97,55,345 4,32,85,610
Fair value change account 7,82,463 2,75,748
Borrowings 7 - -
Total 5,16,40,081 4,46,63,631
appliCaTiON Of fuNdS
Investments - 8 3,64,85,711 3,08,05,997
Shareholders
Investments - 8A 13,13,78,718 10,91,00,920
Policyholders
Loans 9 - -
Fixed assets 10 34,43,909 31,22,686
Deferred tax asset (refer 15,43,051 5,31,358
Schedule 16 - Note 18)
Current assets
Cash and bank balances 11 45,57,572 83,22,191
Advances and other assets 12 1,98,38,610 1,74,93,064
Sub-Total (a) 2,43,96,182 2,58,15,255
Current liabilities 13 10,07,65,221 8,81,75,499
Provisions 14 4,48,42,269 3,65,37,086
Sub-Total (B) 14,56,07,490 12,47,12,585
Net current liabilities (C) = - -9,88,97,330
(A - B ) 12,12,11,308
Miscellaneous
expenditure (to the extent
not written off
or adjusted) 15 - -
Debit balance in Profit and - -
loss account
Total 5,16,40,081 4,46,63,631

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

RATIO ANALYSIS

Sr Ratio 2018-19 2017-18

No.
1 Net margin ratio Net margin ratio= PAT/Sales Net margin ratio= PAT/Sales

Net margin ratio= 0.628 Net margin ratio= 0.667

2 Return on Capital Return on Capital Employed= Net Return on Capital Employed= Net
Employed Operating income/Capital Operating income/Capital
Employed Employed

Return on Capital Employed= 0.190 Return on Capital Employed= 0.267

3 Return on Equity Return on Equity= PAT/Net Worth Return on Equity= PAT/Net Worth

Return on Equity= 0.153 Return on Equity= 0.207

4 Earnings per Share Earnings per Share=PAT/No. of Earnings per Share=PAT/No. of

share Outstanding share Outstanding

Earnings per Share= 70.85 Earnings per Share= 83.58

5 Current Ratio Current Ratio= Current Current Ratio= Current

Asset/Current Liability Asset/Current Liability

Current Ratio= 0.201 Current Ratio= 0.261

6 Cash Ratio Cash Ratio= Cash + Marketable Cash Ratio= Cash + Marketable
Securities/Current Liability Securities/Current Liability

Cash Ratio= 0.037 Cash Ratio= 0.084

7 Current Asset Current Asset Turnover= Current Asset Turnover=

Turnover Sales/Average current assets Sales/Average current assets

Current Asset Turnover= 0.493 Current Asset Turnover= 0.590

8 Debt Turnover Ratio Debt Turnover Ratio= Debt Turnover Ratio=

Sales/Average turnover Sales/Average turnover
Debt Turnover Ratio= 0 Debt Turnover Ratio= 0

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

INTERPRETATION OF RATIOS

1. Net Margin Ratio- This ratio measures the net income with the
net sale. It is used to measure the profitability of the company
with its last year and also with its competitors. Higher the ratio,
higher the company will be profitable.
The net margin ratio of Bajaj Allianz company of 2019 (0.628) is
less than its previous year 2018 (0.667). It means that the
profitability of the company is reduced as compare to its
previous year
2. Return on capital employed- This ratio measures the net
operating income with capital employed. The higher value of
return on capital employed is favourable for the company that
means that company is generating more income per unit of
capital employed.
The return on capital employed of the company of 2019 (0.190)
is less than its previous year 21018 (0.267), means that
company is earning less per unit of capital employed than its
previous year.
3. Return on equity- This ratio measures the net income of
company to its average shareholder’s equity. The higher value
of return on equity is favourable to the business. This ratio
shows earning per unit on the shareholder’s equity fund.
The return on equity of the company of 2019 (0.153) is less
than its previous year 2018 (0.207) indicating that the earning
per unit on equity is reduced this year.
4. Earnings per share- This ratio measures the net income to its
number of shares outstanding. Higher the value of earning per
share, higher it will be beneficial for company. It indicates the
earning amount per share outstanding.
The earning per share of the year 2019 (70.85) is less than its
previous year 2018 (83.58) indicating that earning per share is
reduced this year.
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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

5. Current Ratio- This ratio measures the company’s ability to pay

its current liability from cash generated from its current assets.
This ratio compares the current assets with its current liabilities
and measures that the current assets is enough to pay current
liability or not. Higher value of the current ratio is favourable
for business.
The current ratio of year 2019 (0.201) is less than its previous
year 2018 (0.261) indicating that the ability power to pay its
current liability is reduced.
6. Cash Ratio- This ratio measures the company’s ability to pay its
current liability from its available cash. Higher value of cash
ratio is beneficial for business.
The current ratio for the year 2019 (0.037) is less than its
previous year 2018 (0.084) indicating that company’s ability to
pay it current liabilities from cash is reduced.
7. Current Assets Turnover- This ratio compares sales with its
average current assets. This ratio measures how efficiently the
company is generating revenue from its per unit of current
assets. Higher value of current assets turnover is favourable for
business.
The current assets turnover for the year 2019 (0.493) is less
than its previous year 2018 (0.590) indicating revenue
generation from per unit of current assets is reduced.
8. Debt turnover ratio- Since the Bajaj Alliance company is a
insurance company and not having any debtor so the debt
turnover ratio cannot be calculated. Hence, this is a zero-debt
company.

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY Limited

Interpretation of Common Size Statement

Common is the statement in which where each item are expressed in

terms of percentage of sales or revenue.
1. Operating profit- Operating profit is 86% of revenue in 2018 whereas
78% in 2019, indicating there is drop in operating profit by 8%. Means
the company is earning less revenue from its operating activity as
compare to previous year.
2. Income from investment-
 Earning from interest, dividend and rent is 12.43% in 2018 which
increase to 20% in 2019, indicating the company is earning is more
from interest, rent & dividend in 2019 as compare to 2018.
 Amortization of discount is -0.30% of revenue in 2018 which
reduced to -1% in 2018.
 Profit on redemption of investment is 2.43% of revenue in 2018
which increase to 3% in 2019, indicating there is increase in
income by redemption of investment as compare to previous
year.
3. Miscellaneous income- Miscellaneous income is 0.10% of revenue in
2018 whereas there is no miscellaneous income in 2019.

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