A PROJECT REPORT ON

COMPARATIVE STUDY OF ULPP BETWEEN HDFC & ICICI

SUBMITTED TO R.T.M. NAGPUR UNIVERSITY NAGPUR IN PARTIAL FULFILMEMT FOR AWARD OF BACHELOR OF BUSINESS ADMINISTRATION SUBMITTED BY SAGAR D. GHATOLE

GUIDED BY LECT. SHEETAL KHISTY PRERNA COLLEGE OF COMMERCE RESHIMBAG, NAGPUR-09 (2009-2010)

CERTIFICATE

This is to certify project that entitled COMPARATIVE STUDY OF ULPP BETWEEN HDFC & ICICI Submitted By SAGAR D. GHATOLE to R.T.M Nagpur University, Nagpur for the partial fulfillment of Bachelor of business administration is a benefited original research work carried out under my guidance and supervision. It is piece of research of a sufficiently high standard to warrant it submission theUniversity for Reward of the said degree.

No part of the project has been submitted for any degree or diploma, or publishes in any other form. The assistance and the help rendered to the research during course of this research in the form of basic source material and information have been duly acknowledged.

Project Guide MRS.SHEETAL KHISTY

Principal Dr.Neeta Sahu

DECLARATION

I hereby declare that this project titled COMPARATIVE STUDY OF ULPP BETWEEN HDFC & ICICI . has been submitted as project report in partial fulfillment of Bachelor of Business Administration. The project details or any part has not been submitted earlier to any institute for any other degree or diploma. The source of material and data used in this study have been duly acknowledged and certified.

Place: Nagpur Date:

SAGAR D. GHATOLE

ACKNOWLEDGEMENT

I express my sincere and hearty gratitude to, MRS.Sheetal khisty project guide for giving an opportunity guidance this project would never materialized. It was her erudite talks, keen interest, knowledge and practical suggestion that inspired me to bring out the best. I gratefully acknowledge my deepest gratitude Honorable Chairman R .C. Gulhane & Honorable Secretary Dr.S.C.Gulhane for their Persistent inspirations & the Principal of Dr.Neeta Sahu, Conservation suggestions and constant, encouragement. I also want to thank my friends, my family and the members who were associated directly or indirectly in making my project successful.

SAGAR D. GHATOLE

INTRODUCTION OF FINANCIAL MANGEMENT

INTRODUCTION
Finance is regarded as provision of money at time it is needed. We need finance for production of goods and services as well as their distribution. It is the life blood of business activities. Management of finance determines the success or failure of any business activity. Management in general deals with effective procurement and utilization of basic imports like men, machines, methods, materials, markets and money. Finance is common thread that passes through all business activities. Financial Management deals with how the corporation (company) obtained the funds and how it uses them. Financial Management is that part of management which is concerned mainly with raising funds in the most economic and suitable manner, using these funds as profitably as possible, planning, future operations; and controlling current performances and future developments through financial accounting, cost accounting, budgeting, statistics and other means. Financial Management implies the designing and implementation of certain plan. Plans aims at an effective utilization of funds. Financial management is important because it has an impact on all the activities of firm. It touches on all the other business functions. Financial management applies to an organization, irrespective of its size, nature of ownership and control whether it is manufacturing or service organization. It applies to any activities of an organization which has financial implication. Financial management should not be taken to be a profit-extracting device. It is concerned with the use of funds as well and therefore, with the investment

decision that determine the nature of a firms business. How to acquire finance for short term and long term assets in an important decision area of financial management. Both assets and liabilities should be properly chosen for both have their own merits and limitations which financial manager will have to reconcile. Moreover, such selection would also involve a judicious planning of inflows and out flows of funds.

DEFINITION:-

According to Guthmann and Dougall Business finance can be broadly defined as the activity concerned with the planning, raising, controlling and Administering the funds used in the business.

According to Prather and Wert, Business finance is deals primarily with raising, administrating and disbursing funds by privately owned business units, operating in non-financial fields of industry.

SCOPE OF FINANCIAL MANAGEMENT The scopes of financial management fall in to three groups. One view is that the finance is concerned with cash. At the other extreme is raising and administering funds for an enterprise. The third approach is that it is integral part of overall management. The scope of financial management may be broadly be classified as below 1) Anticipation of the financial management
2)

Acquisition of the necessary capital and determining the sources of finance

3) Allocation of funds which deals with the deployment of total funds between the different components of fixed and current assets

4) Appropriation on which basically considers the division of total earning between the dividend distribution and retention of profits in the business 5) Assessment which deals with the control over financial activities.

OBJECTS OF FINANCIAL MANAGEMENT There are two widely discussed approaches or criterion or goals of maximizing owners welfare:1) Profits maximization 2) Wealth maximization

1) Objects of profit maximization:Maximization of profit is generally regarded as the main objective of a business enterprise. Each company collects its finances by way of issue of shares to the public. On the other hand, higher profits are the barometer of its efficiency on all fronts i.e. production, sales and management. The all such interested parties must get the maximum return for their contributions. But this is possible only when the company earns higher profit or sufficient profits to discharge its obligations to them. Therefore, the goal of maximization of profits is said to be the best criterion of the decision making. 2) Objects of wealth maximization:-

The wealth maximization ( also known as value maximization or net present worth maximization ) is also universally accepted criterion for

financial decision making. The wealth maximization criterion is based on the concept of cash flows ( inflows and outflows ) generated by decisions. Wealth maximization means maximizing the net present value( or wealth) or course of action. The wealth maximization objectives is consistent with the objective of maximizing the owners, economic welfare i.e. their wealth. It is therefore, the goal of financial management to ensure its shareholders that the value of their share will be maximize in the long run in fact, the performance of the company can well be evaluated by the value of its share.

IMPORTANCE OF FINANCIAL MANAGEMENT The importance of financial management can be discussed under following heads:
1)

Successful promotion depends on financial administration:One of the most important reasons of business promotion is a defective financial plan. Hence sound financial plan is very necessary for the success of business enterprise. As the selection of sound financial plan requires a serious consideration over factors like profitability, risks and control of various alternatives plans.

2)

Smooth running of an enterprise:Sound financial planning is necessary for the smooth running of an enterprise for the smooth running of an enterprise. Money is to an enterprise, what oil is to an engine. As finance is required at each stage of an enterprise i.e. promotion, in-corporation , development, expansion and administration of day-to-day working etc., proper administration of finance is very necessary.

3) Financial administration co-ordinates various functional activities:Financial administration provides complete co-ordination between various functional area such as marketing, production etc. to achieve the organizational goals.

4) Determination of business success:It has been recognized, even in India that the financial managers play a very important role in the success of the business organization by advising the top management the solutions of the various financial problems as experts.

5)

Measure of performance:The performance of the firm can be measured by its financial results i.e. by its size of earning. Riskiness and profitability are two major factors which jointly determine the value of the concern.

2.INSURANCE IN INDIA

INSURANCE IN INDIA Indian Insurance Industry : - The business of insurance is related to the protection of the economic value of assets. Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual.

The risk, which can be insured against include, fire, the peril of sea, death, incident and burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually al contract between 2 parties where by one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of al certain event. Insurance is a contact whereby in return for the payment of premium by insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: Life Insurance and General Insurance. General Insurance means Fire, marine, and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employers liability, and insurance of motor vehicles, livestock and crops. The Insurance Act, 1972 and the General Insurance Business (Nationalization) Act, 1972 govern Fire and Marine Insurance, while the Indian Marine Insurance At, 1963 governs marine insurance in our country. These laws contain provisions relating to the constitution, management and winding up of insurance companies and the conduct of insurance business of all types. All insurance business in India has been nationalized. A contract of insurance is a contract by one party undertakes to make good the loss of another, in consideration of a sum of money, on the happening of a specified event, e.g. Fire accident or death. Law recognizes insurance as a system of sharing risk too great to be borne by one individual.

The business of insurance started with marine business. Traders, who used to gather in the Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1583 in England. In India, insurance began in 1870 with Life insurance being transacted by an English company, the European and the Albert. The first Indian insurance. Company was the Bombay Mutual Assurance Society Ltd, formed in 1870. This was followed by the Oriental Life Assurance Co. in 1874, the Bharat in 1896 and the of India in 1897. Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras, the Bombay life in Bombay, the National in Calcutta, the New India in Bombay, the Jupiter in Bombay and Lakshmi in New Delhi. These were all Indian Companies, started as a result of the swadeshi movement in the early 1900s. By the year 1956, when the life insurance business was nationalized and Life Insurance Corporation of India (LIC) was formed on 1st Sep. 1956, there were 170 companies and 75 Provident Fund societies transacting life insurance business in India. After the amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing life insurance business of India. By 31st March 2002, 11 new insurers had been registered and had begun to transact life insurance business in India. HISTORY OF INSURANCE SECTOR

The Insurance sector in India has come a full circle from being an open competitive market to nationalization and black to a Liberia zed again. Tracing the developments in the Indian insurance sector reveals the degree turn witnessed over a period of almost 190 years. The business of Life insurance in India in its existing from started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the insurance business in India. 1912 The Indian Life Assurance Companies Act enacted as the statute regulate the life insurance business. 1928 The Indian Insurance Companies act enacted to enable the government to collect statically 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 taken over by the central government and nationalized. 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 (M) 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 giving 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 (Nationalization) Act, 1972 nationalized the general insurance in India with effect from 1st Jan. 1973

FUCTION OF INSURANCE: The functions of insurance can be studies into two parts. 1- Primary Functions 2- Secondary Functions PRIMARYL FUNCTIONS: 1. Insurance provides certainty Insurance provides certainty of payment at the uncertainty of loss. The uncertainty of loss can be reduced by better planning and administration. But, the insurance relieves the person from such difficult task. Moreover, if the subject matter is not, adequate, the self provision may prove costlier. Insurance remove all these uncertainty and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty.
2. Insurance provides protection :

The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain and at the happening of risk, the person will suffer loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from suffering the insurance cannot check the happening of risk but can provide for losses at the happening of the risk.

3. Risk Sharing: The risk is uncertain, and therefore the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons who are exposed to the risk. The risk sharing in ancient time was done only at time of damage of death; but today, on the basis of probability of risk, the shares is obtained from each and every insured in the shape premium without which protection is not guaranteed by the insurer. SECONDARY FUNCTION : 1. Prevention of loss: The insurance joins hands with those institutions which are engaged I preventing the losses of the society because the reduction in loss causes lesser payment to the assured and so more saving is possible which lesser share to the assured. will assist in reducing the premium. Lesser premium invites more business and business causes

2. It Provides Capital: The insurance provides capital to the society. The accumulated funds are invested in productive channel. The dearth of capital of the society is minimized to a greeted extend with the help of investment of insurance. The industry, the business and the individual are benefited by the investment and loans of the insurers. 3. It Improves Efficiency:

The insurance eliminates worries and miseries of losses at death and destruction of property. The carefree person can devotes his body and soul together for better achievement. It improves not only his efficiency, but the efficiencies of the masses are also advanced. 4. It helps Economic progress:The insurance by protecting the society from huge losses of damage, destruction and death, provides an initiative to work hard for the betterment of the masses.The next factor of economic progress, the capital, is also immensely provided by the masses.

INSURANCE INDUTRIES IN INDIA H D F C Standard life insurance ICICI Prudential Life Insurance Co. Ltd.

General Insurance Companies in India

Birla Sun life Financial Service Birla Sun life Birla Sun Life insurance Companies in India

 Bajaj Allianz Insurance Companies in India

Om Kotak Mahindra Life Insurance Companies in India

Royal Sundaram Alliance Insurance Companies in India Ing Vysya Life Insurance Co. Ltd. Max Life Insurance Co. Ltd. Met Life Insurance Sahara India Life Insurance ANZ Insurance Amsure Insurance Cholamandalam MS General Insurance Employeee State Insruance Corporation. Export Credit Grarantee Corporation of India Ltd. ICICI Lombard Agriculture Insurance Co. India Ltd. Peerless Smart Financial Solution IFFCO TOKIO Tata AIG Insurance Reliance Life Insurance SBI Life Insurance

BASIC LIFE INSURANCE

BASIC LIFE INSURANCE

WHAT IS INSURANCE:

Insurance in its basic form is defined as A contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event. In simple terms it is a contract between the person who buys Insurance and an Insurance company who sold the policy. By entering into contract the Insurance Company agrees to pay the Policy holder or his family members a predetermined sum of money in case of any unfortunate event for a predetermined fixed sum payable which is in normal term called Insurance Premiums. Insurance is basically a protection against a financial loss which can arise on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. By paying a very small sum of money a person can safeguard himself and his family financially from an unfortunate event. For Example if a person buys a Life Insurance Policy by paying a premium to the Insurance company, the family members of insured person receive a fixed compensation in case of any unfortunate event like death. There are different kinds of Insurance Products available such as Life Insurance, Vehicle Insurance, Home Insurance, Travel Insurance, Health or Med claim Insurance etc. They following are his principles for the insurance as they under; 1) The contingency or the insured event should be fortuitous in nature, i.e. beyond human control.

2) The insured should not make any profit out of it. It requires a large number insured to make the principle of insurance work, based on law of probability. KINDS OF INSURACNE : The Insurance can be divided from two angles : first, from the business point of view and the second, from the risk point of view. There are the two kinds of the Insurance. 1) Life Insurance 2) Non Life Insurance 1) Life Insurance : Life Insurance is different from other insurance in the sense that, here the subject matter of insurance is life of human being. The insurer will pay the fixed amount of insurance at the time of death or at the expiry of certain period. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when earning capacities are reduced. The business of life insurance is wholly done by the Life Insurance Corporation of India.
2) Non Life Insurance :-

Non life Insurance is a general insurance. The general insurance includes property insurance, liablility insurance and other of insurance. Fire and marine insurances are strictly called property insurance. Motor, theft, fidelity and machine insurance include the extent of liability insurance to a certain extent. The strictest

form of liability insurance is fidelity insurance, whereby the insurer compensates the loss to the insured when he is under the liability of payment to the third party. BENEFITES FROM LIFE INSURANCE : 1) It provides protection to the family of the assured ( by way of replacement of income) in the event of premature death, making it financially independent of the assured. 2) It becomes an old age provision for the assured when the survives the term of the policy, making him financially independent of the family. 3) It is superior to traditional saving instrument, like fixed deposit, P.P.F. etc. because a premature is such as saving plan. 4) Insurance plans, particularly when they are unit linked can act as an effective investment tool to provide market related to the policyholder. 5) A life insurance policy can facilitate raising a loan. 6) As per the prevailing tax laws life insurance policies enjoy tax benefits under Sec. 10 (10D), Sec. 88, Sec. 80 CCC and 80D. 7) Life insurance, involving long term investment of funds, has potential of contributing to the economic and social infrastructure of the country, thus accelerating its economic development.

8) It is also used as a tool of social security by progressive government.

LIFE INSURANCE PRODUCTS: Life insurance products are broadly placed under two categories: 1) Traditional Products, which includes: a) Term Plan: Provides death risk cover for a specified term only every policy does not result into a claim. b) Whole Life Insurance: Here the sum assured is paid on death whenever it occurs. The premium in the case will be higher than in the case of the term plan. c) Endowment Plan: It provides for the payment of the sum assured at the end of a specified term or an earlier death. A money back plan. Where survival benefits become payable at definite intervals, is all a variant of endowment plan. d) Annuities : They are a series of periodic payment to the annuitant for life or for a specified period. An annuity can be immediate ( Where the payment of annuity starts immediately) or deferred ( where the payment of annuity commences after a specified period, called deferment period.) 2) Non Traditional Products :

Due to the inflexibilities of traditional life insurance products, which result into high causation, inconvenience in sticking to premium payment regimen, lack of transparency, etc. insurance companies have come out with non traditional products mainly in the form of unit linked products, which have borrowed several beneficial features of mutual funds. A detailed discussion on these products is available in a later chapter on the subject.

UNIT LINKED INSURANCE PLAN (ULIP) : Unit linked insurance plans, ULIPs, are distinct from the more familiar with profits policies sold for decades by the Life Insurance Corporation. With profits policies are called so because investment gains (profits) are distributed to policyholders in the form of a bonus announced every year. ULIPs also serve the same function of providing insurance protection against death and provision of long-term savings, but they are structured differently. In with profits policies, the insurance company credits the premium to a common pool called the life fund, after setting aside funds for the risk premium on life insurance and management expenses. Every year, the insurer calculates how much has to be paid to settle death and maturity claims. The surplus in the life fund left after meeting these liabilities is credited to policyholders accounts in the form of a bonus. In a ULIP too, the insurer deducts charges towards life insurance (mortality charges), administration charges and fund management charges. The rest of the premium is used to invest in a fund that invests money in stocks or bonds. The policyholders share in the fund is represented by the number of units. The value of the unit is determined by the total value of all the investments made by the fund divided by the number of units. If the insurance company offers a range of funds, the insured can direct the

company to invest in the fund of his choice. Insurers usually three choices an equity ( growth) fund, balanced fund and a fund which invests in bonds. Why do insurers prefer ULIPs ? Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies with less capital of their own than what would be required if they sold traditional policies. In traditional with profits policies, the insurance company bears the investment risk to the extent of the amount. In ULIRs, the policyholder bears most of the investment risk. FEATURES :Unit Linked Insurance Plans have gained high acceptance due to the attractive features they offer. Benefits include flexibility, Transparency, Liquidity, and Fund Options.
1) Flexibility :- A ULIP offers the customer an acute degree of

flexibility: the flexibility to choose the Sum Assured, and to choose the desired premium amount. ULIPs give the customer the option of changing the level of premium/Sum Assured even after the plan has started, and the flexibility to change asset allocation by switching between funds with ease. 2) Transparency :- ULIPS offer a high degree of transparency, where all charges in the plan as well as the entire net amount invested is made known to the customer. ULIPs also offer the convenience of tracking your investment performance on a day to day basis, so you can decide instantly where you want your assets allocated.
3) Liquidity :- A ULIP offers you the option of withdrawing money a

few

years into the plan, allowing for the exigencies of life. Alternatively, a ULIP will also allow for partial/ systematic withdrawal should the need arise. 4) Fund Options :- A ULIP will offer you a wide choice of funds, ranging through equity, debt, cash, or a combination of the three. The Customer is also afforded the option of choosing your fund mix based on your desired asset allocation. 5) Traditional Plans :- These are the oldest types of insurance plans available. These plans cater to customers with a low appetite. Some of the common features of traditional plans are : 1. Steady Investment a) Major chunk of ingestible funds are in debt instruments. b) steady and almost assured returns over the long term. 2. Features c) Death benefit is Sum Assured + guaranteed & vested bonus d) Helps in asset creation as they are for a long tenure. e) Premium to Sum Assured ratios are fixed for each plan and age. f) Generally withdrawals are not allowed before maturity.

COMPANY PROFILE OF HDFC

INTRODUCTION:A Joint Venture between HDFC Ltd. (Housing Development Finance Corporation Limited) one of Indias leading housing finance institution and

standard Life Group-a leading housing finance institution and Standard Life Group- a leading financial service company in the united Kingdom, HDFC Standard Life Insurance Co. Ltd. [ Tagline : Sar Utake Jiyo] is reputed private life insurance company in India. Some of the companies belonging to the HDFC group are - HDFC bank, HDFC securities, HDFC Mutual Fund, Intellect, & other. HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing development Finance Corporation Limited (HDFC Ltd.) India and UK based Standard Life Company; both the joint venture partners being one of the leaders in their respective areas came together in this joint venture to form HDFC Standard Life insurance Company Limited. The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has helped the company achieve the status it currently enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAV services for corporations; they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March2007 The gross incomes standing at a hooping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer. The Banc assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Saraswat Bank and Bajaj Capital. BABHGUYTHVBBABBASSEKL

PRODUCTS:-

At HDFC Standard Life , we offer a bouquet of insurance solutions to meet every need. We cater to both, indivisuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. For individual, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organization we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing loan term value to the employees help in enhancing goodwill of the company. 1) Individual Products:-

a) Protections Plans:-Terms Assurance Plan -Loan Cover Term Assurance plan -Home Loan protection plan b) Investment Plans:-Single Premium Whole of Life plan -Unit Linked Wealth Maximiser plus c) Pension Plans:- Personal Pension plan - Unit linked Pension plan - Unit linked Pension plus - Unit linked Pension Maxi miser d) Saving Plans:- Endowment Assurance plan - Assurance plan

- Saving Assurance plan - Childrens plan - Money Back - Unit Linked Endowment plan - Unit Linked Endowment plan plus - Unit Linked Endowment Suvidha - Unit Linked Endowment Suvidha plus - Unit Linked Endowment plus II - Unit Linked Young star - Unit Linked Young star - Unit Linked Young star Suvidha - Unit Linked Young star Suvidha plus - Unit Linked Young star plus II - Unit Linked Enhanced Life Protection II - Simply Life e) Health plan:- Critical care plan 2) Group Products:- Group Term Insurance - Group Variable term Insurance - Group Unit Linked plan 3) Rural Product:- Gramin Bima Mitra Yojana

4) Social Product :- Development Insurance plan

PRODUCTS:1) Educational Insurance Plans:- Smart Kid New Unit linked Regular - Smart Kid New Unit linked Single - Smart Kid Regular Premium 2) Wealth creation Plans:- Life stage Assure

- Life time Gold - Life Link Super - Premier Life Gold - Life Stage RP 3) Premium Guarantee Plans:- Invest Shield Life New - Invest Shield Cash back 4) Protection Plans:- Pure Protect -Life Guard - Cash back - Home Assured 5) Retirement Solutions:- Life Stage Pension - Premier Life Pension - Life Time Super Pension - Forever life - immediate Annuity

6) Health Insurance Products:- Hospitalization Plans - Critical Illness Plans - Cancer Products - Diabetes Products 7) Group Products:- Group Super Annotation - Group Gratuity Plan - Annuity Solution - Group Term Insurance Plans - Group Term Insurance In lieu of EDLI

8) Rural Products:- Suraksha - Suraksha Kavach 9) Micro Insurance Products:- Sarv Jana Suraksha

COMPARISON OF ULPP OF HDFCSL AND ICICI PRUEDENTIAL

UNIT LINKED PENSION PLAN:The HDFC Unit linked pension gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investment A post retirement income for life Flexibility to plan your retirement date

 Freedom in invest premium as per your performance The HDFC Unit Linked Pension is an insurance policy that is designated to provide retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride. You can choose your premium and the investment fund. In the event of your unfortunate demise during the policy term, your spouse will received a cash lump sum to hold him or her manage the retirement years. Use HDFC Standard Lifes excellent investment option to maximizes your saving and secure our Golden years. Go ahead, hold your head high and enjoy life with HDFC sum to hold him or her manage the retirement years. All Unit Linked life Insurance plans are different traditional insurance plans and are subject to different risk factors. HDFC Standard life is the name of our Insurance Company and HDFC Unit Linked plan is the name of this plan.

PENSION AT GLANCE:Premium Payment Term Regular Premium Single Premium

Minimum Premium Minimum Entry Age Maximum Entry Age Minimum Policy Term Maximum Policy Term

Rs. 10000 18 years 75 years 10 years 30 years

Rs. 25000 18 years 70 years 10 years 30 years 50/75 years

Maximum / Maximum 50/75 years Age at maturity Maximum Sum Assured

Zero Sum Assured Policy

Tax Benefit

Under Section 80 CCC, as per prevailing Income Tax Laws on premium paid

BENEFITS:1) Death Benefits:In the of unfortunate demise before the end of policy term, your nominee will receive the unit value. Your policy will terminate thereafter.

2) Premium Changes:Policyholder invests more than his usual premiums at any time, subject to following condition; a) Policyholder paid all his regular premiums to date for regular Premium contract. b) Each single premium Top Up amount is at least Rs. 5000 3) Premium Changes :The minimum increase in regular premium amount is only Rs. 5000/- per year and any changes to premiums will take place from the next premium due date. All applicable charges to premiums will continue to believe. Policyholder may only restart his regular premiums within the specified revival period. 4) Changing investment Decision:Policyholder changes his investment fund choice in two ways.
a) Switching: Policyholder can move his accumulated funds from one fund to

another anything.
b) Premium Redirection: Policyholder can pay his future premiums into a

different selection of funds, as per his need.

5) Premium payment:Policyholders pay the regular premium up to 15 day after the due date to fit in with here cash flows. 6) On Vesting :-

Policyholders his policy matures at the end of the policy term they have chosen and on his chosen retirement ( vesting) date, he will get the value of the units in his policy. As per prevailing Government Regulations;

He can take up to 1/3rd of his fund value as a tax free cash lump- sum and the rest must be converted to an annuity.

He can buy the annuity from us or any other insurance. CHARGES :The charges under this policy are deducted to provide for the cost of benefits and the administration provided by us. Our charges, when take together, are structured to give you better returns and value for a over the long term. 1) Fund Management (FMC):In the long term, the key to build greater maturity values is a low FMC. The daily unit price already includes our low fund management charge of only 0.80% p.a. of the funds value.

2) Surrender charge:This is the charge we will apply when the policy is surrendered.
a) Regular premium policy: It is equal to 25% of the difference between the

regular premiums expected and those paid in the first two years of the contract.

b) Single premium Policy: Nil, except that the policy cannot be surrender

before completion of three years. 3) Premium Allocation Charge:This is a premium based charge. After deducting this charge from your premium, the reminder is invested to buy units. The tables given below will help show how percentage of your premium is used to buy unit. This percentage is called the Allocation Rate. The allocation rates are guaranteed for the entire duration of the policy term.

Regular Premium Policy: PREMIUMPAID DURING YEAR (RS.) Up to 1,99,999 REGULAR PREMIUMS From 2,00,000 to 4,99,999 From 5,00,000 to 9,99,999 From 10,00,000 to 19,99,999 From 20,00,000 and above
Single premium Top Up (s)

ALLOCATION RATE 1st & year 2nd 3rd year onwards 99% 99% 99% 99% 99% 99%

75% 82.50% 87.50% 92.50% 95% 97.50%

Single Premium Policy: PREMIUMPAID DURING YEAR (RS.) SINGLE PREMIUMS ALLOCATION RATE 1 year 2nd year onward Up to 4.99,999 94% From 5,00,000 and 97.50%
st

above Single premium Top Up (s)

97.50%

99%

4) Other Charges:a) Policy Administration Charge: - A charge of Rs. 20 per month is charge to cover regular administration cost. We take charge by canceling unites proportionately from each of the funds you have chosen. b) Switching Charge: 24 switches will be given free in a policy year and any additional switch will be charged as Rs. 100 per switch. c) Revival Charge: A charge of Rs. 250 is charged for revival to cover for administrative expenses. d) Miscellaneous Charge: This is charge levied for any alteration within the contract like premium redirection or ado policy servicing. 12 premium redirection requests will be free in a policy year and any additional premium redirection request will be charged at Rs. 250 per request.

5) Alteration to Charge : The fund management charged will not be exceeding 2% per annum. The surrender charge can be increased subject to maximum of 100% of the fund, applicable for the first three years.

The Policy administration charges can increase in line with inflection subject to a maximum of 5% per annum over the period since inception

PREMIER LIFE PENSION : ICICI PRUDENTAL Life Insurance presents premier life Pension a limited premium paying, unit linked pension policy designed for preferred customers You have strived hard to achieve your dreams and have attained the best comforts life could offer. After having reached this enviable and secure position, wouldnt you like to continue living life on your own term even after retirement? If you think so, then you need a retirement solution that not only suits your need but also lets you retire RICH To help you achieve this, ICICI Prudential Life Insurance presents Premier Life Pension Plan - a limited premium paying, Unit Linked pension policy designed for preferred customers like you. This unique policy helps you customize your investments by allowing you to decrease your premium contributions as well as allowing you to boost your investment kitty by making top ups at any time. Once you arrive at your retirement age the accumulated value of your policy provides you with a regular income (Pension) for life.

FEATURES : Flexibility of limited premium payment term of 3 to 5 years Flexibility to decrease customer premium contribution from 2nd year onward Flexibility to increase customer investment by investing surplus money over and premium as top ups

Flexibility to choose from 5 pension option through can be received a pension Get regular income (Pension) post retirement Customer are choose the retirement date from started the receiving the pensio PENSION AT A GLANCE :-

Premium payment Term Minimum Premium Minimum Entry Age Maximum Entry Age Minimum Policy Term Maximum Policy Term Maximum/Maximum Age at Maturity Maximum Sum Assured

3 Years Rs 100000 18 Years 18 Years 10 Years 62 Years

5 Years Rs 60000 18 Years 70 Years 10 Years 62 Years

50-80 Years

50-80 Years

Zero Sum Assured Policy Tax Benefit Under Section 80 CCC, as per prevailing Income Tax Laws on Premium paid

BENEFITS :-

Death Benefit :In the unfortunate event of death before vesting the spouse receives Fund value. This may be taken as lump sum or may be used to purchase an annuity from the company. Alternately, a portion of it (up to one-third) can be taken as a lump sum of the policy proceed and apply the balance to provide an annuity under the immediate annuity plan of the company then available this purpose. However, where the spouse is not the nominee, the benefits will be paid in lump sum to the nominee. 2) Flexible Retirement Date :The start receiving pension any time after you reach 50 years of age however, the option of deferring this date till age of 80 years 3) Choice of Investment Funds :The option to choose how want the investment to grow based on the objectives of each of the fund; Pension (R.I.C.H. II) Resources Investment Consumption and Human capital Pension Flexi Growth II Pension Multiplier II Pension Flexi Balanced II Pension Balancer II Pension Protector II Pension Preserver 4) Switching Option :With this option can switch between the various funds at time depending on financial priority and investment decision. 4 free switches are allowed every policy Year. The minimum switch amount is Rs 2000/-

1)

5) Top-Up:-

Can decide to increase the investment by investing surplus money over and above the premium, and the convenience. The minimum amount of top-up is Rs.2000/6) Premium reduction:Under the product, can option to reduce the premium after the first policy year to the Minimum specified limits under the chosen the premium payment term. 7) Cover Continuance Option:If the avail of the cover continuance option, it unsure that are the policy continues in Case the unable to pay premiums. These option available charges will be automatically reduced From a unites available in the funds. 8) Other Benefits: Flexibility of limited premium payment term of 3 to 5 years value on vesting (retirement) date Flexibility to decrease customer premium contribution from 2nd year Onward Flexibility to increase customer investment by investing surplus over and premium as top-ups Flexibility to choose from 5 pension option through can be receive a Pension Get regular income (pension) post retirement Customer are choose the retirement date from started the receiving the Pension money Receive Tax free commutation up to cone- third of the accumulated

CHARGES:1) Premium Allocation Charge :This will be deducted from the premium amount at the time of premium payment and the balance amount would be used for allocation of units in fund (s), as follows; PREMIUM PAYMENT TERM % OF PREMIUM

Year 1 3 YEARS 5 YEARS 14% 14%

Year 2 4% 4%

Year 3 4% 4%

Year 4

Year 5

2%

2%

2) Top-Up Charge:The premium allocation charge for a single premium top-up is 1% of the amount of top-up premium. 3) Funds Management Charge (FMC) :The annual fund management charge which will be ad jested from the Net Asset Value (NAV) of various fund are as follow; FUND Pension R.I.C.H.II, Pension Flexi Balance Pension Protector II, Pension Flexi Growth II, Pension Balancer II II, Pension Preserver Pension Multiplier II Charge 1.50 % p.a 1.00 % p.a 0.75 % p.a

4) Policy Administration Charges :The fixed policy administration charge is Rs. 60/- per month for all premium paying modes. This will be recovered by cancellation of unit* 5) Switching Charge :-

Free swithces are allowed in each policy year. There after, additional swithces will be charged in Rs. 100/- per switch by cancellation of unit*. Any unutilized free switch cannot be carried forward to subsequent years.

COMPARISON:Pension Unit Linked Insurance plance: How they fare

HDFC STANDRD LIFE UNIT LINKED PRODUCT TYPE ULIP Fund option PENSION PLAN Market Linked Plan Growth fund, managed fund, Balanced fund, Equity Defensive fund, Secure fund, Liquid fund Allocation to equities 100% in growth fund; 60100% in equity managed fund; 30-60% in balanced fund; 15-30% in defensive

ICICI PRUDENTIAL PREMIR LIFE PENSION Market Linked Plan pension Maxi miser II (Growth), Pension Balancer II (Balanced), Pension Protector II (Income), Preserver Up to 100% in Pension Maxi miser-II; up to 40% in Pension balancer-II; nil in Protector II & Preserver

managed fund; nil in secure Minimum Premium (Rs) managed & liquid fund Regular Premium: Rs. 10,000 Single Premium: Rs. 25,000 Life cover option available How is Sum assured calculated No sum assured = Rs 1,000 plus the fund value. Yes Option 1 : Zero sum calculated plus the fund value. assured. Pure accumulation. Option 2: Sum assuerd = annunal contribution X tenure. 3 years: Rs. 1,00,000 5 years: Rs. 60,000

Min / Max Age at entry ( Yrs)

Regular premium 18 / 65 years Single premium: 18 / 70 years 50 / 75 years 8.50%-22% for years 1 and

18 / 70 years

Min-Max vesting age (Yrs) Initial years expenses

50 / 80 years 17%-22% in first yr. 12%-

Fund management charges

2. (Exact percentage 15% for second yr. depends upon the annual premium amt). 0.80%

15% for second yr. (Exact percentage depends upon premium amt). Maximiser II- 1.5%; balancer-1.0%; protector II & preserver-0.75% 1% for years 3 to 10. Nil years (%) thereafter. 20

Expenses after initinal 1% third yr onwards.

Fixed monthly expenses (Rs) Charges on top-ups (%) .

15

2.5% for initial two yrs.1% thereafter.

Switch charges

24 switches will be given free in a policy year and any additional switch will as Rs. 100 per switch.

1% of top-up value for first 10 yrs. Nil thereafter. Free switches are allowed in each policy year. There after, additional switches be charged Rs. 100 /-per switch by cancellation of unit.*

HDFC Standard Life and ICICI Prudential Unit Linked Pension Plan compare to the two companys product plan of the age at Vesting and term/ defermentb Vears as under; UNIT LINKED PENSION PLAN Build-in Flexibility Vesting(yrs) Available Plan HDFC Standard Life (Unit Linked Pension) ICICI Prudential (Premier Life Pension) 50 80 10 57 Min 50 Max 75 Deferment (yrs) Min 10 Max 40 Age at Vesting Term/

NET ASSECT VALUE:Introduction:The NAV (net asset value) of a nature fund has been correctly understood by a large section of the investing community. This is quite evident from the fact that mutual fund had been recently collection huge croups in their New Fund Offers, or NFOs whereas the collection in the existing schemes were negligible. In fact, investors sold their existing investment and invested in NFOs. This switch makes no sense, unless the new fund has something different and better to offer. Definition of NAV:Net As sect Value, or NAV, is the sum total of the market value of all the shares held on the portfolio including cash, less the liabilities, divided by the total number of units outstanding. Thue, NAV of a mutual fund unit is nothing but the book value. Formula: NAV = Total Fund Value NO. Of Units Misconception about NAV:-

This situation arises from the perception that a fund at Rs 10 is cheaper than say Rs 15 or Rs 100. However, this perception is totally wrong and investors would be much better off they appreciate this fact. Two fund with same portfolio are same, no matter what their NAV is. NAV is immaterial. Why people carry this perception is because they assume that the NAV of a MF is similar to the market price of an equity share. This, however, is not true.

NAV and its impact on the returns We feel that a MF with lower NAV will give better returns. This again is due to the wrong perception about NAV. An example will make it clear that returns are in depended of the NAV. Say, you have Rs 10,000 to invest. You have two option, wherein the fund are same as far as the portfolio is concerned. But sau one Fund X has an NAV of Rs 10 and another Fund Y has NAV of Rs 50. You will get 1000 units of Fund X or 200 units of Fund Y. After one year, both fund would have grown equally as their portfolio is same, say by 25%. Than NAV after one year would be Rs 12.50 for Fund X and Rs 62.50for Fund Y. The value of your investment would be 1000*12.50 = Rs 12,500 for Fund X and 200*62.5 = Rs 12,500 for Fund Y. Thus your returns would be same irrespective of the NAV. It is quality of fund, which would make a difference to your returns. In fact for equity shares also broadly this logic would apply.

An IT company share at, say, Rs 1,000 may give a better return than say a jute company share at Rs 50, since IT sector would show a much higher growth rate than jute industries (of course Rs 1000 may fundamentally be over or under priced, which will not be the case with MF NAV). NAV vs. Price of an equity share In case of companies, the price of this share is as quoted on the stock exchange, which apart from the fundamentals, is also dependent on the perception of the companys future performance and the demand-supply scenario. And hence the market price is generally different from its book value. There is no concept as market value for the MF unit. Therefore, when we buy MF units at NAV, we are buying at book value. And since we are buying at book value, we are paying the right priced of the asset whether it is Rs 10 or Rs 100. There is no such thing as a higher or lower price. To evaluate to their Two Companies Fund Performances in the market by year:

GROWTH FUND:Comparison different pension plan:Here, I am comparing 2 Pension plans of 2 different companies. 1) 2) HDFC Standard life Insurance Co-Unit Linked Pension ICICI prudential- Premier Life Pension

For e.g.:- Lets take an example of a person of 40 year of Age, who is interested to invest Rs. 50,000 annually as premium.

As per IRDAs guidelines an Agent or a company can show the return of 10% (Higher)& 6% (Lower). So, Following are the returns that the person will get if the market gives a return of 10%.

FUND PERFORMANCE Companies pension Plan HDFC Unit Linked Pension Plan Growth Fund ICICI Premier Life Pension Maxi miser II Fund Rs. 26,76,775 Rs.14,51,292 Rs. 24,84,178 Rs. 7,66,606 Rs. 15,14,492 Rs. 26,76,775 10 Year 15 Year 20Year

So, we can see clearly that the best plan for those people who are interested to take a pension plan is of HDFC Standard life Insurance-Unit Link Pension The reason why HDFCs Unit Linked Pension Plan is able of give more returns that other combines are because of the Lower Fund Management Charge (FMC). In Case of HDFC the Fmc charge is just 0.08% of your fund value, which is minimum in the industry.

FMC is the charge, which play a major role in the long term. Beside this HDFC is also giving addition units of 0.10%, which is called Loyalty Benefit. This additional benefit of Loyalty Units, which is being, increases the total Fund Value. RETURNS:The power of compounding ensures that you substantially higher returns if invest for a longer term.(as shown in the illustration below) DETAIL HDFC STANDARD LIFE (UNIT LINKED Age at Entry (yrs) Premium Paying Terms (yrs) Annual Premium Returns @ 10% p.a Returns @ 6% p.a. PENSION PLAN) 35 20 Rs. 60,000 Rs. 32,16,016 Rs. 20,31,472 ICICI PRUDENTIAL (PREMIER LIFE PENSION PLAN) 35 15 Rs. 5.00,000 Rs. 74,15,988 Rs. 45,65,962

. Plans of companies launched till April2007 with top market share considered. 1) 2) 3) As on 19 January 2007, except for Aviva, this is till 16 January 2007 Since inception Approximate corpus on annul investment of Rs 36,000 at 10 per cent for 30

year by individual aged 30; No life cover option; equity fund option.

Returns

Annualized

projected

Max.Equity 4) Exposure (%)

1) Over 2) Return (%) 3) Corpus (Rs) 1st Yrs(%) HDFC Standard Life Unit Linked Pension ICICI Prudential Premier Life Pension 38.06 40.08 45.38 lakh 36.46 39.2 51.38lakh

100

100

PORTFOLIO DISCLOSURE:How the fund perform depends on where we have invested your premium. This section takes you through our latest portfolio composition of our unit-linked funds. Industrial and Equity Share:- Top Ten Sector 10.27%, 8.64%, 6.07%, 4.19%, 3.80%, 10.48%, 2.38%, 17.40%, 10.91%, 12.10%.

Capital Good Finance Information Technology Transport Equipment Media and Publication

FMCG Oil and Gas Healthcare Agriculture Consumer Durable

Performance of schemes form various categories for the financial year ended 31 March 2008 Ranking methodology: Returns = Latest NAV-previous period NAV*100 Previous period NAV

Insurer HDFC Standard Life

plan Unit Linked Pension plan Premier Pension

FMC 8.08

1st Year 25.00

2nd Year 25.00

1 Year 44.36

ICICI

1.50

14.00

9.00

51.77

Prudential Life

EARING PER SHARE :Earring is the yardstick by which companies are finally judge, namely what investors earn on their investment. Accordingly, earning ratio is popular tool for determining the fair market price of a share and to discover valuable investments. Earning Per Share:The earning per share (EPS) ratio indicates the earning of a common share in a year. This ratio enables investors to actually quantify the income earned by a share, and to determine where it is reasonably priced. The ratio is arrived at by dividing the income attributable to common shareholders by the weighted average of the number of common shares. In countries, including India, where employees are given stock option, investors check a companies fully diluted earning per share. This is the earning per share of a company after all share options, warrants and convertible securities

outstanding at the end of the accounting period are exchange for shares. Many investor also valu a share as a multiple of the earning of the company. If the earning per share is Rs. 5 and a yield of 10 per cent is considered reasonable the share is priced at Rs. 50.

1) Cash Earning Per Share:It is often argued that the earning per share is not a proper measure of the earning of a company since depreciation, tax and cost of finance various from one company to another. Earnings per share = * Administration expenses include interest costs of Rs.40 and depreciation of Rs. 20. The company had issued 5,00,000 share of Rs. 10 each. The case earning of a share in XYZ Company Ltd. would therefore be: Cash Earning Per share = 500 = 2) Dividend per Share:Rs.3.12/1500+40+20

Investor often use the divided per share as a measure to determine the real value of a share. Proponents of this school of thought argue that the earning per share is of no real value to anyone but those who can determine the policies of a company. The income of an investor is the divided that he receive. It is therefore submitted that the value of a share should be multiple of the dividend paid on that share. How does one value a share? If one assumes that the gains made by an investor would include an increase in the price of the share, i.e. capital appreciation, and divided income per share, the price would depend on the capital appreciation one expects. If the share has regularly appreciated by 30 per cent every year, a low divided yield would be acceptable.

Illustration :The share of XYZ Company Ltd., which has a market value of Rs. 40, has appreciated during the last three year by an average percentage of 25. If an investor were aiming at a yield of 30 per cent, a divided of 5 per cent would be adequate. In such a scenario if XYZ Company has paid a divided of 15 per cent, its market value on the basis of divided per share would be (assuming 15 per cent divided on the face value= 5 per cant on the market value) as follow: Rs. 1.50 (divided) = 5(return required) = Rs. 30/100*

On this basis the share of XYZ Company is overpriced. Conversely, if a share dose not appreciated by more than 5 per cent and a 30 per cent return is required, a high divided yield would be expect. If the share of PDP have been appreciating at 7 per cent per annum and the company declares a divided of 30 per cent or Rs. 3 per share the value of the share would be(30 per cent divided will be construed as a yield of 23 per cent). 3(divided per share) 100* 23 (return required) = Rs.13/-

It must be noted that this method of valuation is on ridden with assumptions (appreciation every year and expect return) that it is rarely used. 3) Dividend payout Ratio:The divided payout ratio measure the quantum or amount of divided paid out of earning. This ratio enables an investor to determine how of the annul earnings are paid out as divided to shareholders and how much is ploughed back into the company for its long-term growth. This is an imported ratio when assessing a companys prospects because if all it income were distributed there would be no internal generation of capital available to finance expansion and to nullify the ravages of inflation and to achieve these company would have to borrow.

This ratio is calculated by divided net income after tax. Dividend payout Ratio = Dividend Net income after tax s Illustration The XYZ Company Leds earning after tax in the last financial year was Rs. 68 lakh. Of this, it paid a dividend of Rs.28 lakh. Its dividend payout ratio would be. Dividend payout = Ratio = 28 (Dividend) 68 (Net income after tax) 0.412

Normally, young, aggressive growth companies have low divided payout ratios as they plough back their profit for growth. Mature companies, on the other hand, have high payouts. This is of concern as they may not be retaining capital to renew assets or grow. Investors must also ensure that the dividend is being paid out of current income and not out of retained earning because that tantamount to eating funding set said for growth, pension and replace of asset.

Ratios and Formant in Customer Financial Analysis Financial statement analysis is a judgment process. One of the primary objectives is identification of major changes. The judgment process can be improved by experience and the use of analytical tools. Probably the most widely used financial analysis technique is ratio analysis, the analysis of relationship between two or more line items on the financial statement. Financial ratios are usually expressed in percentage or times. Generally, financial ratios are calculated for the purpose of evaluating aspects of a companys operations and fall into the following categories: Liquidity ratios measure a firm ability to meet its current obligations. Profitability ratios measure managements ability to control expenses and to earn a return on the resources committed to the business. Leverage ratio measures the degree of protection of suppliers of long-term funds and can also aid in judging a firms ability to raise additional debt and its capacity to pay its liability ties on time. Efficiency, activity or turnover ratios provide information about managements ability to control expenses and to earn a return on the resources committed to the business. A ratio can be computed from any pair of numbers. Given the large quantity of variables included in financial statements a very long list of meaningful ratios can be lived. A standard list of ratios or statement computation of them does not exist. The following ration presentation includes ratios that are most often used when evaluating the credit worthiness of a customer. Ratio analysis becomes a

very personal or company driven procedure. Analyses are drawn to and use the ones they are comfortable with and understand.

Liquidity Ratios 1) Working Capital:Working capital compares current assets to current liabilities, and serves as the liquid reserve available to satisfy contingencies and uncertainties. A high working capital balance is mandated if the entity is unable to borrow on short notice. The ratio indicates the short-term solvency of a business and in determine if a firm can pay its current liabilities when due.

Formula: Current Assets - Current Liabilities 2) Acid Test or Quick Ratio:A measurement of the liquidity position of the business. The quick ration compares the cash plus cash equivalents and accounts receivable to the current liabilities. The include inventory and prepaid expenses in the calculation. Consequently a business quick ratio. will be lower than its current ratio. It is a stringent test of liquidity. Formula Cash + Marketable securities + Accounts Receivable Current Liabilities

3) Current Ratio :Provides an indication of the liquidity of the business by comparing the amount of current assests to current liabilities. A businesss current assests generally consist of cash marketable securities, accounts receivable and inventories current liabilities include accounts payable, current maturities of long term debt, accrued income taxes and other accrued expenses that are due within one year. In general, business prefer to have at lest one dollar of current assets for every dollar of current liabilities. However, the normal current ratio fluctuates from industry. A current ratio significantly higher than the industry average could indicate the existence of redundant assets. Conversely, current ratios significantly lower than the industry average could indicate a lack of liquidity. Formula :Current Assets Current Liabilities 4) Cash Ratio :Indicates a conservative view of liquidity such as when a company has pledged its receivables and its inventory, or the analyst suspects severe liquidity problems with inventory and receivables, Formula : Cash Equivalents + Marketable Securities Current Liabilities Profitability Ratios 1) New Profit Margin (return on Sales) :-

A measure of net income dollars generated by each dollar of sales. Formula:Net Income* Net Sales * Refinements to the net income figure can make it more accurate than this ratio computation. They could include removal of equity earnings from investments, other income and other expense items as well as minority share of earnings and nonrecurring items. 2) Return on Assests :Measures the cojmpanys ability to utilize its assests to create profits Formula :Net Incoome* (Beginning + Ending Total Assets)/2 3) Operating income margin :A measure of the operating income generated by each dollar of sales Formula : Operating Income Net Sales

4) Return on Investment :Measure the income earned on the invested capital

Formula :Net Income* Long term liabilities + Equity 5) Return on Equity :Measure the income earned on the shareholders investment in the business. Formula :Net Income Equity 6) Du pont return on Assets :A combination of financial ratios in a series to evaluate investment return. The benefit of the method is that is provides an understanding of how the company generates its return. Formula :Net Income * Sales Assets Sales Assets Equity 7) Gross profit Margin:Indicates the relationship between net sales revenue and the cost of goods sold. This ratio should be compared with industry data as it may indicate insufficient volume and excessive purchasing or labor costs. Formula :Gross profit

Net Sales Financial Leverage Ratio 1) Total Debts to Asset :Provides information about the companys ability to absorb asset reductions arising from losses without jeopardizing the interest of creditors. Formula :Total Liabilities Total Assests 2) Capitalization Ratio :Indicates long term debt usage. Formula :Long-term debt Long Term Debt + Owners Equity 3) Debt to Equity :Indicates how well creditors are protected in case of the companys insolvency. Formula :Total Debt Total Equity 4) Interest Coverage Ratio ( Times Interest Earned) :-

Indicates a companys capacity to meet interest payments. Uses EBIT (Earnings before interest and Taxes) Formula: EBIT Interest Expense

5) Long - Term Debt to Net Working Capita:-1 Provide insight into the ability to pay long term debt from current assests after paying current liabilities. Formula :Long-term Debt Current Assets - Current Liabilities Efficiency Ratios 1) Cash Turnover :Measure how effective a company is utilizing its cash. Formula:Net Sales Cash 2) Sales to working capital (Net Working Capital Turnover) Indicates the turnover in working capital per year. A low ratio indicates inefficiency, while a high level implies that the companys working capital is working too hard.

Formula :Net Sales Average Working Capital

3) Total Asset Turnover :Measure the activity of the assests and the ability of the business to generate sales through the use of the assets. Formula :Net Sales Average Total Assets 4) Fixed Asset Turnover :Measure the capacity utlization and the quality of fixed assets. Formula :Net Sales Net Fixed Assets 5) Days Sales in Receivables :Indicates the average time in days, that receivables are outstanding (DSO). It helps determine if a change in receivables is due to a change is sales, or to another factor such as a change in selling terms. An analyst might compare the days sales in receivables with the companys credit terms as an indication of how efficiently the company manages its receivables. Formula :Gross Receivables Annual Net Sales / 365

6) Accounts Receivable Turnover :Indicates the liquidity of the companys receivables Formula :Net Sales Average Gross Receivables 7) Account Receivable Turnover in Days :Indicates the liquidity of the company receivables in days Formula :Average Gross Receivables Annual Net Sales / 365 8) Inventory Trunover :Indicates the liquidity of the inventory.

Formula :Cost of Goods Sold Average Inventory 9) Book Value per Common Share :Book value per common share is the net assets available to common stockholders divided by the shares outstanding, where net assets represent stockholders equity less preferred stock. Book value per share tells what each share is worth per the books based on historical cost.

Formula :Total Stockholders Equity - Liquidation Value of Preferred StocksPreferred Dividends in Arrears) Common Shares Outstanding

Common Size Analysis:In vertical analysis of financial statements, an item is used as a base value and all other accounts in the financial statement are compared to this base value, On the balance sheet, total assests equal 100% and each asset is stated as a percentage of total assets. Similarly, total liabilities and stockholders equity are assigned 100% with a given liability or equity account stated as a percentage of total liabilities and stockholders equity. On the income statement , 100% is assigned to net sales, with all revenue and expenses accounts then related to it. Cost of Credit :The cost of credit is the cost of not taking credit terms extended for a business transaction. Credit terms usually express the amount of the cash discount, the date of its expiration, and the due date. A typical credit term is 2/10 net/30. If payment is made within 10 days, 2 percent cash discount is allowed: otherwise, the entire amount is due in 30 days. The cost of not taking the cash discount ban be substantial.

Invest of policy fund

Invest of policy fund

HDFC Standard Life and ICICI Prudential follow an investment philosophy which is given below : To build a sound investment portfolio within the external and internal guideline to ensure the companys requirement of solvency and liquidity while maximizing return on investment at an optimal level of risk, on a consistent long term basis, for both policyholders and shareholders in , an adequately matched scenario. HOW TO JUDGE A FUND PERFORMANCE:This is done by deciding up front the benchmark. This becomes the guide post for the fund manger. In case of diversified equity mutual fund, it is an equity index and for dept funds, it is a suitable dept index. Since our funds are basically balanced fund with investments made in debts and equity in varying proportions as explained above, it couldnt be either of them, but a composite index our composite indices are defined all over investment report, viz. NSE G-Sec index (over 8 year maturity) and Nifty in the same proportion as committed to the policy holder in the respective fund option . Our quarterly investment reports have been graphically giving each funds performance vies-avis its benchmark index.

Research Objective

The main objectives of the study are; The understand the concept of floater policy, its scope &importance. To compare the product of HDFC Standard Life & ICICI Prudential with specific reference to floater plan. To provide suqqestion & improvement in the policy of HDFC Standard

Life & ICICI Prudentional that is currently available in the market share of the company. Research Methodology Here the research is being carried out to do a financial analysis between two major companies in this sector. The two major companies we are considering for the comparison are HDFC Standard Life & ICICI Prudential Pension plan Primary

as well as Secondary data collection is used for the analysis. The primary method for data collection includes the survey method. The purpose of survey research method is to collect primary data for the research Interviews of the people using the products were taken for the sake of data collection. A questionnaire for the interview was prep aired & the people using the product were asked to questions. The sample size for the research is 30. On the basis of the answer to the questions rating was given to the two selected players for the comparison. The copy of questionnaire is attached in appendix.

Sample size :The sample size of the purpose of the research was 30. The respondendent were divided in to two groups. One group consisted of those people who used HDFC & the second group consisted of those who used ICICI prudential each group was provided with the same questionnaire a darting according.

Data analysis :The data analysis part consisted of summarizing, rearranging & tabulating the data. The raw data was transformed in to the form that will make to easy to understand & interpret. A descriptive analysis of the tabulated data was done & appropriate interpretation of the data led to the recommendations. These

recommendations are believed. To help reliance to improve its market share as compared to that of the other competitors considered for the reserch.

Research methodology

Meaning:Research is a common term refers to a search for knowledge it is a scientific & systematic search for specific information topic infect research is an art & scientific investigation research is also & academic activity and as such the term should be use in a technical sense. a research include defining & redefining problem, formulating hypotheses or suggested solution, collecting organizing & invalidating data and making reduction & conclusion, at last carefully testing the conclusion to determine whether they fit the formulating hypotheses. Definition of research:According to mory Research is a systematic effort to gain new knowledge

Objectives of research:-

1. To gain familiarity with a phenomenon or to achieve new insights into each. (formulative research) 2. To test accurately the features of a particular individual (descriptive research) 3. To determine the frequency with which something accurse or with which is it associated with something else. (diagnostic research)

4. To test hypotheses of a cactus relationship between variable (hypotheses testing research)

Types of research
1.

Descriptive research :Descriptive researches include surveys &fact finding inquires of deferent kind. The major purpose of descriptive research is description of the state of affairs as it eit at present. The main feature of this method is that the researcher has no control over the variables he can only report what has happen and what is happened.

2.

Applied research:Applied research or fundamental research aims and financing a solution for an immediate problem facing a society or an industrial or business organization. For et:- research concerning with natural phenomena or relating to pure mathematics are example of fundamental Research.

3. Qualitative v/s Quantitative :Quantitative research is based on the measurement of quantity or amt. it is applicable to phenomena that can be expressed in term of quantity.

Qualitative research, on the other hand is concern with qualitative phenomena (involving quality or king).

4.

conceptual v/s emperiel:Conceptual research is that related to some attract idea or theory it is generally use by philosophers & thinkers to develop new concept. Empriricl research relies on in experience or observation alone, often without due regard is appropriable when prodf is sough that certain variables affect other variables in some way.

5. Some other types of research:-

a. One time research. b. Field setting research or laborite research. c. Clinic research. d. Historical research. e. Conclusion oriented research. f. Decision oriented research

Research process or steps involved in research process

1.

Formulation the research problems:-

There are two types of research problems example. Those which relate to set up nature &those which relate to relationship between variables, the best way of understanding it with once own college or with those having some expertise in the matter. In an academic institution the researcher can seek from a guide who is usually an experience man & has several research problems in mind.

2.

Extensive larcener survey:-

Once the problem is formulated a brief summary of it should be written. Down it is compulsory for research workers writing a these for a PHD degree to write a synopses of the topic & submit it to the research board for approval academic journal conference proceeding, govt. report, books magazines etc. can be referred depending on the nature of the problem.

3.

Development of working hypothesis:-

After expensive litercehers survey, research should state in clear terms the working hypotheses. Working hypothesis in tentative assumption made in order to draw out & test its logical consequence hypothesis should be very specific & limited the peace of research in hand because it has to be tested the role of the research by delimiting the area of research & to keep him on the right track.

4.

Preparing the research design:-

The research problem having been formulated in clear cut terms the research will be required to prepare a research. Design in other words, the function of research design in to provide for the collection of relevant evidence. With minimum expenditure of refer time and money. There are several research designs such as experimental and nonexperimental hypothesis & testing.

5. Determining Sample Design:-

The researcher must decide the way of selection the sample design. In other words, a sample design is a definite plan determined before any data are actually corrected for obtaining a sample from a given populating.

Important sample design or as follows:-

a. Deliberate sampling b. Simple random sampling c. Systematic sampling d. Quota-stage sampling e. Multi-stage sampling

f. Sequential sampling

6.

Collecting the data:-

There are several ways of collecting the data. Primary data can be collected either through experiment or through survey. Following are the difference way of collecting the data.

1) By observation 2) Through personal interview 3) Through telephone interview 4) By mailing of questionnaires 5) Through schedules

7).Execution of the project:Execution of the project is a very important step in the research process the researcher should be see that the project is executed in a systematic manner & in time.

8) Analysis of Data:After the data have been collected, the researcher turns to the task of analyzing them the analysis of data requires a no. of closely related operation such as establishment pf categories, tabulation and them drawing statistical conclusion editing is the procedure that includes the quality of the

data for the quality of the data for ioading. With loading the stage is ready for tabulation is the part of the technical where in the classified data are put in the form of tables. 9. Hypothesis testing:After analyzing the data the researcher is a position to test the hypothesis. There are various steps of hypothesis such as T-test, F-test, chi-squre test which have been developed by statistician hypothesis or in rejecting it. Tion.

10. Generalization & interpretation:If a hypothesis is tested, if may be possible for the researches to arrive at generalization ( to build a theory). It the research had no hypothesis to start with he might seek to explain is finding on the basis of some theory. It is known as interpretation. 11. Preparation of the report or or theris:The layout of the report should be as follows a) Preliminary pages b) The man text c) The end matter

QUALITIES OF GOODS RESEARCH

1. The purpose of the researcher should be critically defined and common concept be used. 2. The research procedure is used should be described in sufficient detail to Permian other research to repeated the research for further advancement. 3. The procedural design of the research should be carefully plant to give results thats are as objectives as possible. 4. The research should rep-ort way complete frankness flows in procedural designs. And estimate their effects upon the findings. 5. The analysis of the data should be sufficiently adequate. 6. Conclusion should be confined to those justified by the data of research. 7. Greater confidence of it research is warranted if the researcher is experience has a good reputation in research and is the person of integrity. In the other words we can stay qualities of the researcher as under.

A) B) C) D)

Good research a systematic. Good research is logical. Good research is imperial Good research is replicable.

HYPOTHESIS
Hypothesis is usually considers as the principle instrument in research. Its make function is to suggest new experiments are carried out with the object of testing hypothesis. Hypothesis means as assumption or some supposition to be proved or disprove a research hypothesis is a predictive statement capable of being tested by scientific methods. That related and independent variables to some dependently

variables.

Features:1) Hypothesis should be clear and precise if it is not clear the drown on its basis cannot be taken as reliable. 2) Hypothesis should be capable of being tested. 3) Hypothesis should stay relationship between variable. 4) Hypothesis should be limited in scope and must be specific. 5) It should be stated as for as possible is must simple terms. 6) Hypothesis should be consistent with must known facts. 7) Hypothesis must explain the facts that gave rise to need for explanation inferences

COLLECTION OF DATA Different method of Collection of data

There are two way of collecting data

1) 2)

Primary data. Secondary data.

1) Primary data:-

Primary data is originally gathered specifically on project hand. One can obtain information from dealers, salesmen, etc. it offers much greater accuracy and reliability. In this study facts and figures are raw material with which researcher works. Thus, in primary data collection researcher come across many methods as follows: a) Observation methods b) Interview methods c) Questionary methods d) Through schedule Other method include the following :1. Warranty cost 2. Distributor 3. Consumer panels 4. Use of mechanical devices 5. Projective technique 6. Dept interview 7. Contain analysis

2. Secondary data:-

Secondary data is the data already collected by someone else. This data is not especially collected to solve present or specific problem. The information is relevant and can be used for our purpose. After doing the data collection in primary method, the researcher did the collection through the secondary data. In this there are several types such as:-

1) General library 2) Trade -books 3) Internet etc.

CONCLUSION : The HDFC Standard Life Unit Linked Pension Plan are allocated by initial years expenses for 1styear8.50%,-22%,2nd year (percentage depend upon the annual premium amount). The ICICI Prudential Unit linked Premier life Pension are allocated by initial years expenses for 1st year 17%-2nd year 12%-15% (percentage depend upon the annual premium amount). The Fund Management Charged by HDFC & ICICI are 0.80% and 1.50% maxi miser II. HDFCs Unit Linked Pension Plan is able of give more returns that other companies are because of the Lower Fund Management Charges (FMC). The Highest Portfolio Investing in Industrial & Equity Shares of top ten sectors Unit Linked Funds performance in Finance Sector (10.91%). In April 2007 the market share considered by annualized return are HDFC & ICICI are 39.2% and 40.08%. The Current year are of HDFC returns are 44.35% and 51.77

SUGGESTION :-

To all those people are insured the product pension plan because they are the safety to the whole life. To all those people who want to take a pension plan is see the FMC charges of the plan before the investing.

RECOMMENDATION :Following are the recommendation for the insurance company : HDFC Standard Life (ULPP) :- Increased by 24 switches free of ICICI Pension plan will be given in the policy ICICI Prudential Premier Life Pension Plan: - Free switches are allowed in each policy. Allow the changes in premium contribution Administrative charges decrease Rs.20 per month in HDFC (ULPP) Administrative charges increase Rs. 60 per month in ICICI Premier LIFE Pension Plan. Print the detail of product in broaches with term and condition Flexibility in top use.

BIBLIOGRAPY

BOOK : Insurance principles and practice Author :- M.N. Mishra

WEBSITE : www.hdfcinsurance.com www.iciciprulife.com

OTHERS : Company Broachers Magazines

QUESTIONNAIRE 1.
YES ARE YOU EMPLOYED? NO

If YES, only then proceed

2.
YES

DO YOU HAVE ANY INSURANCE POLICY? NO WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE INSURANCE POLICY YOU BOTH PREFER THE MOST?

3.

4.

WHICH COS (RANK THEM) a) LIC

b) ICICIPRUDENTIAL c) SBI LIFE INSURANCE d) ING VYSYA LIFE e) RELIANCE LIFE INSURANCE f) TATA AIG LIFE g) ANY OTHER ________( Specify) (Please

5.
Tick)

FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______ (Specify)

6.

WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM)

a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify)

7.

WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM) a) LOW PREMIUM b) LARGER RISK COVERANCE c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY e) EASY ACCESS TO AGENTS f) ANY OTHER 8. YOUR MONTHLY INCOME? a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify) 9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAYS SCENARIO IS NOT ESSENTIAL? _____________________________________________________ 10. WHATS YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE 11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE? a) CUSTOMER APPROCHED INSURANCE COs b) INSURANCE COs APPROCHED CUSTOMER 12. ARE YOU SATISFIED WITH THE POLICY? _________ (Specify)

a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING

13.

ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING

14

DO YOU PAY TAXES? YES NO

15.

WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF

16.WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) a) FIXED ASSETS b) BANK DEPOSITS c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs

e) SHARES f) INSURANCE

17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? a) SAVING & RETURNS b) SECURITY c) TAX BENIFITS 18. WHATS THE RIGHT AGE TO BUY INSURANCE? a) AFTER 25 Yrs b) AFTER 35 Yrs c) AFTER 45 Yrs d) ANYTIME 19.HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS b) NON-USER FRIENDLY c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE e) SATISFACTORY f) GOOD g) VERY GOOD 20. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM) a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS d) ACCESSIBILITY

21. ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING

22. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? a) YES b) NO c) UNCERTAIN

THANK YOU

NAME:_________________________ ADDRESS:______________________ ______________________________ OCCUPATION:___________________