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ORGANISATION GUIDE INSTITUTIONAL GUIDE

Mr. AMAN TANDON Mr.ANZUM ZIA RIZVI


(Sales Managers) (Assistant professor)
Submitted by
ABHISHEK SRIVASTAVA
Roll No. : 1212470005
(3
rd
Semester 2012 2014)

SUMMER PROJECT REPORT
ON
A STUDY OF FINANCIAL STATEMENTS OF HDFC LIFE INSURANCE
Prepared for and presented to
INSTITUTE OF CO-OPERATIVE &
CORPORATE MANAGEMENT,
RESEARCH & TRAINING, LUCKNOW
COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd. is one of
India's leading private insurance companies, which
offers a range of individual and group insurance
solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC
Ltd.), India's leading housing finance institution and a
Group Company of the Standard Life, UK. HDFC as on
December 31, 2007 holds 72.38 per cent of equity in the
joint venture.

HDFC STANDARD LIFE INSURANCE PARENTAGE
HDFC is India leading housing finance institution and has helped
build more than 23, 00,000 houses since its incorporation in 1977.
In Financial Year 2003-04 its assets under management crossed Rs.
36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores.
The depositor base now stands at around 1 million depositors.
Rated AAA by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for
its long-standing commitment to community development.
Presented the Dream Home award for the best housing finance
provider in 2004 at the third Annual Outlook Money Awards.

. TYPES OF LIFE INSURANCE PLAN
WHY DO WE NEED PROTECTION PLANS?
1. HDFC Term Assurance Plan
2. HDFC Loan Cover Term Assurance Plan
3. HDFC Home Loan Protection Plan
1. HDFC Childrens Plan
2. HDFC YoungStar Super
3. HDFC YoungStar Super Suvidha
4. HDFC YoungStar Supreme Suvidha
5. HDFC SL YoungStar Champion Suvidha
HDFC Personal Pension Plan
HDFC Pension Super


HDFC Pension Supreme

HDFC SL Pension Champion




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

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

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

Threats:
Tax and regulatory structure
Competitor
New Entrance.


OBJECTIVE OF THE STUDY
The basic objective of study is to know the financial
position of the company.
To evaluate and analysis of profit and loss a/c and
balance sheet through ratios.
To know the borrowing of the company as well as the
liquidity position of the company.
To study the current assets and current liabilities.
To study the profit of the business.
To know overall position of company through ratios.
To identify problems if any and suggest solution.

RESEARCH METHODOLOGY
Research Design:

A research design is a type of blueprint prepared on various types of blueprints available
for the collection, measurement and analysis of data. A research design calls for
developing the most efficient plan of gathering the needed information. The design of a
Research study is based on the purpose of the study. A research design is the
specification of methods and procedures for acquiring the Information needed. It is the
overall pattern or framework of the project that stipulates.

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

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

Method of Sampling:-
Probability Sampling is also known as random sampling or chance sampling. Under this
sampling design every individual in the organization has an equal chance, or probability, of
being chosen as a sample. This implies that the section of sample items is independent of the
persons making the study that is, the sampling operation is controlled objectively so that the
items will be chosen strictly at random. Non Probability Sampling is also known as deliberate
sampling, purposeful and judgmental sampling. Non-Probability Sampling is that which does
not provide every individual in the Organization with a known chance of being included in the
sample.
Data collection method:-
Primary data
Secondary data

Source of Data
I used secondary data to analysis financial position of the company.
The secondary data, which I used that are
Balance sheet
Other financial data provide by the company regarding profit & loss a/c.

Method of data collection
Observation
Experimentation
Personal Interviewing
Case study method
Reports of Hdfc life
Balance sheet

DATA ANALYSIS AND INTERPRETATION
2012 = 1013.94/695.70 = 1.457 : 1
2011 = 689.12/539.05 = 1.278 : 1
2010 = 477.72/471.73 = 1.013 : 1
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2010 2011 2012
1.013
1.278
1.457






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














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







Q2.) Compare the Quick Ratio of HDFC life Insurance for 3 years.?
Quick ratio = Quick Asset/Current Liability
2012 = 485.37/695.70 = 0.6976 : 1
2011 = 228.54/539.05 = 0.424 : 1
2010 = 179.28/471.73 = 0.380 : 1
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2010 2011 2012
0.38
0.424
0.6976

























Interpretation:-
Ideal Quick Ratio is 1:1
There is an increasing trend in the companys Quick ratio in the past 3 years.
Liquidity ratio is highest in the year 2012 i.e. 0.6976 which is nearly close to ideal ratio.

Q3.) Compare the Inventory Turnover Ratio of HDFC life Insurance for 3 years?
Inventory Turnover Ratio = Sales/Closing Stock
2012 = 1326.46/528.57 = 2.5 times
2011 = 1142.80/460.58 = 2.48 times
2010 = 1016.32/298.44 = 3.40 times
0
0.5
1
1.5
2
2.5
3
3.5
2010 2011 2012
3.4
2.48 2.5





















Interpretation:-
The company had highest inventory turnover ratio in the year 2010, thought it was reduced in the
year 2011 and increased in year 2012 with a short margin.
Company improve itself from last years decline.
Companys inventory ratio is improving as its sales is increasing every year which is favorable for
the organization.

QUES4-Compare the Debtor Turnover Ratio of HDFC life Insurance for 3 years?
2012 = 1127.49/ 224.17 = 5.03
2011 = 971.38/202.46 = 4.80
2010 = 863.87/103.48 = 6.62
0
1
2
3
4
5
6
7
2010 2011 2012
6.62
4.8
5.03




















Interpretation:-
The company had lowest credit sales in 2011 and highest in the year 2010.
The company has increased its credit sales in 2010, 2012 which has resulted in
increase in debt turn over ratio as 6.63 in 2010 and 5.03 in 2012.
The companys maintain a moderate debtor turnover ratio i.e. 5.03

FINDINGS
The companys Current Ratio is 1.457 : 1 which is Increasing Continuously.
And It is going close to the Ideal Ratio 2:1.
Companys Quick Ratio is 0.698 : 1 which is Increasing Continuously.
And it is going close to the Ideal Ratio 1:1.
The company had shown an increasing trend in gross profit ratio in last 3 years.
In 2010 the company had lowest fixed turnover ratio and highest in the 2012.
It shows that the fixed Assets are properly used from the initial year
The company shows a decreasing trend in Inventory turnover.
Companys debtors are increasing with a slow rate every year, this analysis shows that the company
have moderate credit policy.
The company had highest capital turnover ratio in 2011.
It shows that the company utilize its capital employed efficiently in 2011.
But due to some reasons it decrease again in 2012.
In 2010 the company had very nominal working capital i.e only 5.99 lacs
But it increases in next years and reach on 150.07 lac with the in 2011.
And 318.24 lac in 2012.
In 2010 the company had very nominal working capital i.e only 5.99 lacs
But it increases in next years and reach on 150.07 lac with the in 2011.
And 318.24 lac in 2012.

SUGGESTIONS
According to its turnover and achievements company is running in its sound
position at its level.

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


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

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



CONCLUSION
Firms liquidity position is satisfactory and meets out
its obligations.
The sale of the company fluctuated due to not
utilizing its resources properly.
There is a need to improve the level of the company.
Overall company is in sound Position according to its
level.

LIMITATIONS OF THE STUDY
Primary data might be too realistic and may suffer from personal
biases of the respondents.

The study may suffer from financial constraints and the limited
sample area.

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

Subjective nature of the study may affect its interpretation by
different individuals.

It is very difficult to check the accuracy of the information
provided.