FINANCIAL STATEMENT ANALYSIS AT IDBI FEDERAL INSURANCE CO LTD Presented by: HARISH KHYANI ROLL NO-131345

FINANCIAL STATEMENT AND COMPARATIVE ANALYSIS AT IDBI FEDERAL INSURANCE CO LTD

Presented by: HARISH KHYANI ROLL NO-131345

INTRODUCTIONFinancial statements provide an account of a companys past performance, a picture of its current financial strength and a glimpse into the future potential of a firm.

Financial reports are made with using the information taken from financial statements of the company.

New functioning approach can be implemented by understanding financial analysis of the company.

Financial statements are intended to provide the base for tax assessments.

OBJECTIVE OF THE STUDYTo understand how does the company give returns to its customers after the maturity of the policy.

Need for insurance to every citizen of the country.

To understand the functionality of the company.

COMPANY PROFILEIDBI Federal insurance is a joint venture of IDBI Bank, Federal Bank and Ageas a multinational insurance giant based out of Europe.

IDBI Federal started in March 2008 and within few months of inception it became one of the fastest growing new insurance companies to garner Rs 100 Cr. in premium.

The company offers its services through a vast nationwide network 2,308 partner bank branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners.

As on 31st December 2013, the company has issued nearly 5.5 lakh policies with a sum assured of over Rs. 32,110.48 crores.

LIFESURANCE POLICYLife insurance is a long term financial instrument. By investing in Lifesurance you are making a long-term commitment towards building your savings. With Lifesurance, you have the freedom to plan your life goals as per your current finances.

The ideal method of purchasing Lifesurance is to have a target maturity sum insured as this is the guaranteed payout at the end of the term.CHILDSURANCE POLICYChilsurance Savings is ideal for parents, grand parents and legal guardians to plan for their childrens future needs.

IDBI Federal Childsurance Savings Protection Insurance Plan, a savings plan designed to help you ensure that your childs future financial needs are fulfilled.

This plan is designed to give you guaranteed annual payouts to aid the crucial milestones in your childs life.

INCOMESURANCE POLICYLife is uncertain. In this uncertainty, we always look for things that give us some guarantee of what lies ahead in our lives. When it comes to our investments, the assurance of guarantee becomes even more important.

Incomesurance has a limited premium paying term of 5 years. This is ideal for you if you are looking to pay for a short duration only.

ANALYSIS AND INTERPRETATION CURRENT RATIO = CURRENT ASSET/CURRENT LIABILITY

As the current ratio is more than 1 throughout the 5 years company is able to pay its short term liabilities without any financial problem.

RETURN ON EQUITY=NET INCOME/EQUITY

As the company was not generating any profits from the period of 2009-2012 because of less premiums in that years and high operating expenses,it was generating negative income because it was new entrance to insurance industry.

As the company was not generating any profits from the period of 2009-2012 because of less premiums in that years and high operating expenses,it was generating negative income because it was new entrance to insurance industry.

RETURN ON REVENUE = NET INCOME / REVENUE

As the company is not earning profits from 2009-2012 ,so its Return on Revenue is negative but as per the results from every year,its operating expenses are decreasing every year which is one of the reason for the company to achieve break-even point faster.

RETURN ON ASSETS=NET INCOME/TOTAL ASSETS

The company is not getting any return on its assets because every one rupee investment on assets they are getting a loss of 0.17 on that rupee during the year 2009 and for the past five years loss is getting reduced and in the year 2013 the company is getting a small return of 0.003 which is equivalent to zero.

OPERATING EFFICIENCY = (OPERATING EXPENSES/PREMIUM EARNED)*100

Operating efficiency of the company is improving every year as the amount spend on expenses is decreasing with increase in premiums every year.The company is managing to cut down its cost where ever its possible and improving the company functionality.

COMPARATIVE ANALYSIS Rs000 The company could not raise capital through equity because it has to pay high interest on debts,which will affect the net profit of the company.Total assets of the company has increased to much extent in the year 2010 compared to 2009.

The equity capital has increased to 50% which will be improving the performance of the company and the net worth of the company has also increaed by 60% which makes the company more stable.Rs000

Company didnt perform better in the year 2012 compared to 2011 as there is decrease in Total Income of the company and there is not much difference in the liquidity of the company. Liability of the company has also decreased which will have the good impact.Rs000

The company has achieved the break- even point in the year 2013 and made a profit of 92432000. The company on the basis of 2012 and 2013 performance is expecting much increase in profit .Rs00016THANK YOU!!!