United India Insurance Shri Ram Financial Possition Final

8/12/2019 United India Insurance Shri Ram Financial Possition Final

http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 1/83

INTRODUCTION



INTRODUCTION

HISTORY OF INSURANCE

Insurance is a subject listed in the Union list in the Seventh Schedule to the Constitution

of India where only centre can legislate. The insurance sector has gone through a number

of phases by allowing private companies to solicit insurance and also allowing foreign

direct investment of up to 26% (as of 2 !" there have been proposals to e#tend the $ &

upto ' % to strengthen the &nsurance )ar*et even further+ the insurance sector has been a

booming mar*et. ,owever- the largest life insurance company in &ndia- Life Insurance

Corporation of India is still owned by the government.

HISTORY

&n &ndia- insurance has a deep rooted history. &nsurance in various forms has been

mentioned in the writings of Manu ()anusmrithi+- Yagna a!"#a ( harmashastra+ and

$auti!#a (/rthashastra+. The fundamental basis of the historical reference to insurance in

these ancient &ndian te#ts is the same i.e. pooling of resources that could be re distributed

in times of calamities such as fire- floods- epidemics and famine. The early references to

&nsurance in these te#ts have reference to marine trade loans and carriers0 contracts.

&nsurance in its current form has its history dating bac* until !1!1- when Orienta! Life

Insurance Co%pan# was started by /nita havsar in $o!"ata to cater to the needs of

3uropean community. The pre independence era in &ndia saw discrimination between the

lives of foreigners (3nglish+ and &ndians with higher premiums being charged for the latter.

&n !14 - ombay )utual 5ife /ssurance Society became the first &ndian insurer.

/t the dawn of the twentieth century- many insurance companies were founded. &n the year! !2- the 5ife &nsurance ompanies /ct and the 7rovident $und /ct were passed to

regulate the insurance business. The 5ife &nsurance ompanies /ct- ! !2 made it

necessary that the premium rate tables and periodical valuations of companies should be

certified by an actuar# . ,owever- the disparity still e#isted as discrimination between

http://en.wikipedia.org/wiki/Constitution_of_India


http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India


http://en.wikipedia.org/wiki/Manu

http://en.wikipedia.org/wiki/Yagnavalkya


http://en.wikipedia.org/wiki/Kautilya

http://en.wikipedia.org/w/index.php?title=Oriental_Life_Insurance_Company&action=edit&redlink=1


http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Actuary





http://en.wikipedia.org/wiki/Manu


http://en.wikipedia.org/wiki/Kautilya



http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Actuary



&ndian and foreign companies. The oldest e#isting insurance company in &ndia is the

Nationa! Insurance Co%pan# - which was founded in ! 6- and is still in business.

The 8overnment of &ndia issued an 9rdinance on ! :anuary ! ;6 nationalising the 5ife

&nsurance sector and 5ife &nsurance orporation came into e#istence in the same year. The

5ife &nsurance orporation (5& + absorbed !;' &ndian- !6 non &ndian insurers as also 4;

provident societies<2'; &ndian and foreign insurers in all. &n ! 42 with the 8eneral

&nsurance usiness (=ationalisation+ /ct was passed by the &ndian 7arliament- and

conse>uently- 8eneral &nsurance business was nationali?ed with effect from ! :anuary

! 4". ! 4 insurers were amalgamated and grouped into four companies- namely =ational

&nsurance ompany 5td.- the =ew &ndia /ssurance ompany 5td.- the 9riental &nsurance

ompany 5td and the United &ndia &nsurance ompany 5td. The 8eneral &nsuranceorporation of &ndia was incorporated as a company in ! 4! and it commence business on

:anuary !- ! 4".

The 5& had monopoly till the late s when the &nsurance sector was reopened to the

private sector. efore that- the industry consisted of only two state insurers@ 5ife &nsurers

(Life Insurance Corporation of India - 5& + and 8eneral &nsurers ( &enera! Insurance

Corporation of India - 8& +. 8& had four subsidiary companies.Aith effect from

ecember 2 - these subsidiaries have been de lin*ed from the parent company and wereset up as independent insurance companies@ Orienta! Insurance Co%pan# Li%ited - Ne'

India Assurance Co%pan# Li%ited - Nationa! Insurance Co%pan# Li%ited and United

India Insurance Co%pan# Li%ited .

INDUSTRY STRUCTURE

urrently &ndia is a USB'! billion industry. urrently- in &ndia only two million people

( .2% of the total population of ! billion+ are covered under )ediclaim- whereas indeveloped nations li*e US/ about 4;% of the total population are covered under some

insurance scheme. Aith more and more private companies in the sector- the situation may

change soon. 3 8 - 3S& and /& provide insurance services for niche mar*ets. So- their

scope is limited by legislation but enjoy some special powers.

http://en.wikipedia.org/wiki/National_Insurance_Company


http://en.wikipedia.org/wiki/General_Insurance_Corporation_of_India


http://en.wikipedia.org/w/index.php?title=Oriental_Insurance_Company_Limited&action=edit&redlink=1

http://en.wikipedia.org/wiki/New_India_Assurance_Company_Limited


http://en.wikipedia.org/wiki/National_Insurance_Company_Limited

http://en.wikipedia.org/wiki/United_India_Insurance_Company_Limited


http://en.wikipedia.org/wiki/National_Insurance_Company




http://en.wikipedia.org/w/index.php?title=Oriental_Insurance_Company_Limited&action=edit&redlink=1



http://en.wikipedia.org/wiki/National_Insurance_Company_Limited





LEGAL STRUCTURE

The insurance sector went through a full circle of phases from being unregulated to

completely regulated and then currently being partly deregulated. &t is governed by a

number of acts.

The &nsurance /ct of ! "1 ()* was the first legislation governing all forms of insurance to

provide strict state control over insurance business.5ife insurance in &ndia was completely

nationali?ed on :anuary ! - ! ;6- through the 5ife &nsurance orporation /ct. /ll 2';

insurance companies operating then in the country were merged into one entity- the Life

Insurance Corporation of India .

The 8eneral &nsurance usiness /ct of ! 42 was enacted to nationalise the about !general insurance companies then and subse>uently merging them into four companies. /ll

the companies were amalgamated into =ational &nsurance- =ew &ndia /ssurance- 9riental

&nsurance and United &ndia &nsurance- which were head>uartered in each of the four

metropolitan cities.Until ! - there were no private insurance companies in &ndia. The

government then introduced the &nsurance Cegulatory and evelopment /uthority /ct in

! - thereby de regulating the insurance sector and allowing private companies.

$urthermore- foreign investment was also allowed and capped at 26% holding in the &ndianinsurance companies.

&n 2 6- the /ctuaries /ct was passed by parliament to give the profession statutory status

on par with hartered /ccountants- =otaries- ost D Aor*s /ccountants- /dvocates-

/rchitects and ompany Secretaries./ minimum capital of USB1 million(Cs.' rore+

is re>uired by legislation to set up an insurance business.

AUTHORITIES

The industry recognises e#aminations conducted by &/& (for actuaries+- &&& (for agents-

bro*ers and t+ird,part# ad%inistrators + and &&&S5/ (for surveyors and loss assessors+.

T/ is the sole data repository for the non life industry.& /& gives voice for bro*ers while

8& ouncil and 5& ouncil are platforms for insurers./&8&3/- /&&3/- /&&3$- /&5& 3$-

http://en.wikipedia.org/wiki/Insurance_in_India#cite_note-1



http://en.wikipedia.org/wiki/Third_party_administrator


http://en.wikipedia.org/wiki/Insurance_in_India#cite_note-1






/&5&3/- $5& 9/- 8&3/&/- 8&3U and =$&$A& cater to the employees of the insurers.&n

addition- there are a do?en 9mbudsman offices to address client grievances.

INSURANCE EDUCATION

Nationa! Insurance Acade%# - 7une- has a "2 acre campus D ; plus faculty- speciali?ed

in teaching- conducting research and providing consulting services in the insurance sector.

=&/ offers a two year 78 ) program in insurance. =&/ was founded as )inistry of

$inance initiative with capital support from the then public insurance companies- both 5ife

(5& + and =on 5ife (8& - =ational- 9riental- United D =ew &ndia+. A%it# Sc+oo! of

Insurance -an"ing and Actuaria! science .ASI-AS/ of /mity University- located in

=oida and established in 2 - offers ) / programs in &nsurance- &nsurance and an*ing-

and ).Sc.E .Sc. actuarial sciences to a 7ost 8raduate iploma in /ctuarial Sciences.

79= & ,3CCF U=&G3CS&TF is offering mba in insurance management. pondicherry

university only the central university which offering insurance management in &ndia -ir!a

Institute of Manage%ent Tec+no!og# is a graduate business school located in 8reater

=oida- established in ! 11- offers a 78 ) & ) program in insurance business

management.This program was launched in 2 by the entre for &nsurance and Cis*

)anagement and is accredited by the Insurance Regu!ator# and De e!op%ent

Aut+orit# . 5ife 9ffice )anagement /ssociation ( LOMA +-US/ is &)T3 ,0seducational partner and &)T3 , is an approved centre for 59)/ e#amination.

The C+artered Insurance Institute ( &&+- UH has accorded recognition (by way of credits+

to the &)T3 , 78 ) & ) program.Their two year 78 ) program in insurance

business has been recogni?ed as e>uivalent to the /ssociate level of the Insurance

Institute of India0 Mu%1ai .=5U- :odhpur- offers a two year ) / and one year )S (for

engineering graduates+ program in insurance.&C / controls all the &nsurance business in

&ndia.They are setting structure and boundaries for the insurance companies to act within.

Starting from licensing to approving the products- &C / directs the companies in &ndia.

They also protect customer interests in the country.

http://en.wikipedia.org/wiki/National_Insurance_Academy

http://en.wikipedia.org/wiki/Amity_University


http://en.wikipedia.org/wiki/BIMTECH


http://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority


http://www.loma.org/default.aspx

http://en.wikipedia.org/wiki/Chartered_Insurance_Institute

http://en.wikipedia.org/wiki/Insurance_Institute_of_India


http://en.wikipedia.org/wiki/National_Insurance_Academy







http://www.loma.org/default.aspx

http://en.wikipedia.org/wiki/Chartered_Insurance_Institute





/s per current guidelines issued by &C /- &nsurance ompanies are not permitted to invest

in &ndian epository Ceceipts ( & C+- while they are permitted to invest in 3>uity sharesE

ondsE ebentures. &C / needs to remove this disparity to open up investment

opportunity by &ns ompanies and thereby also enhance the li>uidity of & Cs ( ontributed

by Sanjay an*a- $ / $ S+

To become an insurance advisor in &ndia insurance act ! "1 mandates that the individual

has to be )ajor with sound mind. /fter the advent of &C / as &nsurance Cegulator &C /

has framed various regulations vi? training hours- e#amination- fee etc. which are amended

from time to time. Since =ovember 2 !! &C / the &nsurance Cegulator in &ndia has

introduced a new syllabus(& ""+ conceived and developed by &&- 5ondon.The syllabus

mainly aims to ma*e an &nsurance /gent as a $inancial 7rofessional. ut almost allinsurers are facing tough time ma*ing the candidates pass the e#amination which has

become relatively tough.



COM2ANY 2ROFILE



COM2ANY 2ROFILE

United &ndia &nsurance ompany 5imited was incorporated as a ompany on !1th

$ebruary ! "1. 8eneral &nsurance usiness in &ndia was nationali?ed in ! 42. !2 &ndian

&nsurance ompanies- ' ooperative &nsurance Societies and &ndian operations of ;

$oreign &nsurers- besides 8eneral &nsurance operations of southern region of 5ife &nsurance

orporation of &ndia were merged with United &ndia &nsurance ompany 5imited. /fter

=ationali?ation United &ndia has grown by leaps and bounds and has !1" wor* forcespread across !"' offices providing insurance cover to more than ! rore policy holders.

The ompany has variety of insurance products to provide insurance cover from bulloc*

carts to satellites.

United &ndia has been in the forefront of designing and implementing comple# covers to

large customers- as in cases of 9=8 5td - 8)C ,yderabad &nternational /irport 5td-

)umbai &nternational /irport 5td Tirumala Tirupati evasthanam etc. Ae have been also

the pioneer in ta*ing &nsurance to rural masses with large level implementation ofUniversal ,ealth &nsurance 7rogramme of 8overnment of &ndia D Gijaya Caji :anani

Halyan Fojana ( covering '; la*hs women in the state of )adhya 7radesh+ - Tsunami :an

ima Fojana (in ' states covering '.; la*hs of families+ - =ational 5ivestoc* &nsurance

and many such schemes.

Ae have also made our presence in more than 2 tier && D &&& towns and villages through

our innovative )icro 9ffices.

OUR 3ISION

Ae United &ndia will be

• The most preferred insurer in &ndia with global footprint D recognition.



• Trusted brand admired by all sta*eholders

• The best in class customer service provider leveraging technology D multiple

channels

• The provider of a broad range of innovative products to meet the needs of all

customer segments

• 8reat place to wor* with highly motivated and empowered employees

• Cecogni?ed for its contribution to the society

TO2 MANA&EMENT

• Top Manage%ent

• Manage%ent Hierarc+#

• -oard Of Directors• Regiona! C+iefs

S4NoNa%e Designation! Shri )ilind / Hharat hairman cum )anaging irector 2 Shri S. Surenther irector D 8eneral )anager " Smt /sha =air irector D 8eneral )anager ' Shri = Tobdan 8eneral )anager ; Shri . Hrishnamurthy 8eneral )anager 6 Shri ) G G halam 8eneral )anager 4 Shri /. ,oda 8eneral )anager 1 Shri G. 3aswara Haimal8eneral )anager

Smt T.5. /lamelu 8eneral )anager ! Smt Camma hasin 8eneral )anager !! Shri Cajase*haran hief Gigilance 9fficer !2 Shri ). 3lango eputy 8eneral )anager !" Shri S.7. =anda eputy 8eneral )anager !' Shri C. Shiva*umar eputy 8eneral )anager !; Smt 7. ,emamalini eputy 8eneral )anager

!6Shri /.

alasubramanianeputy 8eneral )anager

!4 Smt ). Sashi*ala eputy 8eneral )anager !1 Shri 7. H. )ahapatra eputy 8eneral )anager ! Shri H. 8ovindarajan eputy 8eneral )anager 2 Shri = 7auly Su*umar eputy 8eneral )anager 2! Shri G Srinath eputy 8eneral )anager 22 Shri C ,ariharan eputy 8eneral )anager 2" Smt Usha Camaswamy eputy 8eneral )anager

http://uiic.co.in/aboutus/top-management#top-management

http://uiic.co.in/aboutus/top-management#management-hierarchy

http://uiic.co.in/aboutus/top-management#board-of-directors

http://uiic.co.in/aboutus/top-management#regional-chiefs

http://uiic.co.in/aboutus/top-management#top-management

http://uiic.co.in/aboutus/top-management#management-hierarchy

http://uiic.co.in/aboutus/top-management#board-of-directors

http://uiic.co.in/aboutus/top-management#regional-chiefs



S4NoNa%e Designation2' Shri S ) hura eputy 8eneral )anager 2; Shri =arasimha Cao , eputy 8eneral )anager

COR2ORATE MISSION

Introducing Ourse! es

• U& is a leading 8eneral &nsurance ompany.

• )ore than three decades of e#perience in =on life &nsurance business.

• $ormed by the merger of 22 companies- conse>uent to nationalisation of 8eneral

&nsurance.

• ,ead Iuarters at hennai.

Corporate Mission

• To provide &nsurance protection to all.

• To ensure customer satisfaction

• To function on sound business principles.

• To help minimise national waste and to help develop the &ndian economy.

UNISUR&E

5+at is Unisurge6

=ovember- 2 4 mar*ed a significant in the history of United &ndia. 9ur top leadership

came together in ,yderabad to frame the vision of our company and determine the path

that we should ta*e in shaping our future. Ae resolve to transform our to be able to ta*e the

challenge posed by competition head on- and continue to be a leading player in general



insurance industry Since then- our company has embar*ed upon an ambitious enterprise

level transformation project-U=&SUC83 ownload Unisurge =ews 5etters

5+at are t+e initiati es under Unisurge6

Si7 t+e%es Initiati es

)ar*et

orporate

LC-8 7rovide differentiated service and organisational focus to large

corporate D goverment accounts- with focused development effort in the

Aest.

)ar*et

&ndividual

UME9 Motor Dea!er Officer8 apture greater share of motor through

93)Edealer

Hea!t+8 &mprove performance of health portfolio through hospitalrelationshipsJ&mprove T7/ in the medium term./lso review product

portfolio.

Motor8 evelop competitive products and offer additional value added

services toincrease mar*et share.

hannel

UME9 Agenc#8 Ce energise agent channel through better

development-supportand aligned incentives

UME9 -ancassurance8 rive higher premiums in ancassurance channel

through active management- leverage channel to target ruralEmicrofinance.

7rocess and &T

Ser ice Hu1s8 &mprove speed and efficiency of underwriting and claims

processes through consolidation

T2A C!ai% Hu1s8 &mprove speed and effectiveness of investment process.&nvestments rive higher returns by improving effectiveness of investment process.

,C and 7)S3nhance organi?ational accountability and strength ,C structure. reate

incentive system and lin* to rigorous performance management system.

CITI:ENS; CHARTER

OUR 3ISION8



• To become the most preferred insurer in &ndia- with global footprint and

recognition.

• To become a trusted brand admired by all sta*eholders.

• To become the best in class customer service provider leveraging technology and

multiple channels.

• To become the provider of a broad range of innovative products to meet the needs

of all customer segments.

• To be a great place to wor*- with highly motivated and empowered employees.

• To be recogni?ed for its contribution to the Society.

OUR COMMITMENTS8

5e s+a!!• /ct courteously- fairly and reasonably in all our dealings with the customers.

• )a*e sure all our 7olicy documents and claim procedures are clear and complete

information is given about our 7roducts and Services.

• eal >uic*ly with the grievances of the customers and resolve them through

nominated K ustomer are 9fficersK in all operating offices. RO Noda! Custo%er

Care Officers List4

• Cespond to all commercially viable general insurance needs of the citi?ens to

provide new covers and promote insurance inclusion.

• ontinue to provide customi?ed insurance products for the rural and particularly for

the wea*er sections of the Society at affordable price.

• ontinue to develop a professional wor*force for e#ecution of roles assigned to

them.

• ,ave a regular consultative process with all our sta*eholders and set up monitoring

mechanism for delivery of promised services to our customers.

STANDARDS FOR ACCESS TO CITI:ENS8

5e s+a!!

• ,ost on our Aebsite '''4uiic4co4in all relevant information relating to wor*ing

hours- documents re>uired for issuance of policies and claims settlement.

• )a*e available literature on products and services at all our offices.

http://uiic.co.in/customercare/contacts


http://www.uiic.co.in/



http://www.uiic.co.in/



• Ceach out through electronic and print media- intermediaries and other active

communication channels available.

• 3nhance the access of citi?ens through all entre and 7ortal.

• 3armar* the time between ". 7) to ;. 7) of every Aednesday (ne#t wor*ing

day- in case Aednesday happens to be holiday+ for personal interaction of

customers with 9fficer in charge of the ranch E ivisional E Cegional office for

resolving of grievance.

STANDARDS FOR SER3ICIN&8

5e s+a!!

• Strive to carry out the timelines as prescribed by the Cegulator in respect of 7olicy

holderLs servicing.• e clear and transparent in see*ing fulfillment of re>uirements for settling a claim

or any other services to the customer.

STANDARDS OF FAIRNESS AND O2ENNESS8

5e s+a!!

• &nvite feedbac* from customers on services availed to suggest improvements.• Ceview the standards of services offered- annually with a view to improve the

benchmar*s.

-ENCHMAR$S FOR SER3ICIN&8

Decision on acceptance of 2roposa! for

• )otor- &ndividual ,ealth- 7ersonal /ccident and 9ther 7ersonal lines of &nsurance

M within " days of submission.

• $ire- )arine- 3ngineering and other commercial lines of &nsurance M within 4 days

of submission.

• &ssuance of policies within 4 days of acceptance of premium.

• &ssuance of Cenewal =otice !; days before e#piry of policy.

• /ppoint SurveyorE&nvestigator within '1 hours of intimation of claim



• ecide claims on 7ersonal 5ine and Cetail &nsurances within !; days and on

ommercial 5ine &nsurances within " days of receipt of re>uired

documentsEclarifications.

• 7rovide laim status to the customers within " days of receipt of re>uest by the

policy issuing office.

• )a*e payment of claim within " days of receipt of discharge voucher

• &nform the customer within " days of receipt of re>uired documents if the claim is

not admissible.

• Cegister grievances on the same day E monitor the grievances registered on

&ntegrated 8rievance )anagement System (&8)S+ through the ompanyLs

8rievance Cedressal System (U8)S+ U&MS porta!4

• 7rovide ac*nowledgement within " days of receipt.

Cesolve the grievances within !; days of receipt.

/ppeals on grievances not resolved- can be forwarded to ,ead office- ustomer are

epartment and resolution will be provided in !; days.

This harter is a summary of what United &ndia &nsurance ompany proposes to offer to

the citi?ens. The charter does not in any way become a part of the policy conditions or

policy contract of the customers of United &ndia &nsurance ompany or the conditions of

service to the wor*force of the ompany. (&mpact of this harter on ustomer Service

shall be evaluated periodically and wherever found necessary- introduction of re>uisite

penalty provisions in cases of non compliance to timelines shall be e#amined for the sa*e

of adding to efficacy of the harter.+

OFFICIAL LAN&UA&E IM2LEMENTATION

RE2ORT ON OFFICIAL LAN&UA&E IM2LEMENTATION

Ahile framing the constitution of our country- ,indi was unanimously accepted as

http://www.uiic.in/ugms/html/app1/uiic_grievance.jsp

http://www.uiic.in/ugms/html/app1/uiic_grievance.jsp



=ational language and ,indi was adopted as the =ational 5anguage of the Union of india

on!'th September- ! ' .

To commemorate this occasion K HINDI DAY K is celebrated on !'th September every

year.

/rticle "'" of the constitution states that KThe 9fficial language of the Union shall be

,indi in evnagari Script. The form of numerals to be used for the 9fficial purpose of the

union shall be the international form of &ndian numerals.

The company has shown good progress in the implementation of 9fficial 5anguage 7olicy

as per the /nnual 7rogramme on 9.5. &mplementation of 8ovt. of &ndia.

Some of the noteworthy achievement in 9fficial 5anguage &mplementation includes the

following@

E4 SER3ICES < TO FACILITATE EM2LOYEES8

9ne ,indi word a day is taught to all through &ntranet.

)essages- Ceports and 7hotos of ,indi ayEAee*- onference etc. are uploaded

regularly.

,indi ,ouse )aga?ine is available in &ntranet as 3 )aga?ine.

E4MAIL IN HINDI8

)ails are sent by various offices in ,indi.

2RO2O&ATION OF NON,LIFE INSURANCE THROU&H ELECTRONIC

MEDIA8

To populari?e non life insurance products among masses in rural and urban areas-

programmes li*e discussion- speeches etc. are organised through /ll &ndia Cadio. Cecently

a programme on ,ealth &nsurance was organised.



-ILIN&UAL 2U-LICATIONS8

a. &T&N3=S ,/CT3C printed in bilingual and regional language

b. 7erformance- 7lanning- /nalysis- Ceview and iscussion and Iuality ircle of ,C

has been translated and printed in bilingual

c. 9Ls /= 9=TLSL vigilance manual had been printed in bilingual.

d. ompanyLs /nnual Ceport published in bilingual

e. ompanyLs corporate )otto is in bilingual.

f. ,andboo* on 9fficial 5anguage has been published to facilitate wor*ing in 9fficial

5anguage- for officers and employees

g. /gent0s )anual

h. 7ension Cules

2RODUCTS

FAMILY MEDICARE

!. A,3C3/S the insured designated in the Schedule hereto has by a proposal and

declaration dated as stated in the Schedule (which shall be the basis of this ontract and is

deemed to be incorporated herein+ has applied to U=&T3 &= &/ &=SUC/= 3

9)7/=F (hereinafter called the 9)7/=F+ for the insurance hereinafter set forth in



respect of person(s+named in the Schedule hereto (hereinafter called the &=SUC3

73CS9=+ and has paid premium as consideration for such insurance.

!.! =9A T,&S 795& F A&T=3SS3S that subject to the terms- conditions- e#clusions

and definitions contained herein or endorsed- or otherwise e#pressed hereon the ompany

underta*es that if during the period stated in the Schedule or during the continuance of this

policy by renewal- any insured person shall contract any disease or suffer from any illness

(hereinafter called &S3/S3+ or sustain any bodily injury through accident (hereinafter

called &=:UCF+ and if such disease or injury shall re>uire any such insured 7erson- upon

the advice of a duly >ualified 7hysicianE)edical SpecialistE)edical practitioner

(hereinafter called )3 & /5 7C/ T&T&9=3C+ or of a duly >ualified Surgeon

(hereinafter called SUC839=+ to incur hospitalisation e#penses for medicalEsurgicaltreatment at any =ursing ,omeE,ospitalE ay are entre in &ndia as herein defined

(hereinafter called ,9S7&T/5+ as an inpatient- the ompany will pay through Third 7arty

/dministrator (hereinafter called T7/+ to the ,ospital E =ursing ,ome or the &nsured

7erson the amount of such e#penses as are reasonably and necessarily incurred in respect

thereof by or on behalf of such &nsured 7erson but not e#ceeding the Sum &nsured in

aggregate in any one period of insurance stated in the schedule hereto.

!.2 &n the event of any claim(s+ becoming admissible under this scheme- the company will pay through T7/ to the ,ospital E =ursing ,ome or the insured person the amount of such

e#penses as would fall under different heads mentioned below- and as are reasonably and

necessarily incurred thereof by or on behalf of such &nsured 7erson- but not e#ceeding the

Sum &nsured in aggregate mentioned in the schedule hereto.

/. Coom- oarding and =ursing 3#penses as provided by the ,ospitalE=ursing ,ome upto

!% of Sum &nsured per day. This also includes =ursing are- C)9 charges- &G

$luidsE lood TransfusionE&njection administration charges and the li*e.

. &f admitted in & Unit- the ompany will pay upto 2% of Sum &nsured per day. .

Surgeon- /naesthetist- )edical 7ractitioner- onsultants- Specialists $ees



. /naesthetist- lood- 9#ygen- 9peration Theatre harges- surgical appliances-

)edicines D rugs- iagnostic

)aterials and O ray- ialysis- hemotherapy- Cadiotherapy- /rtificial 5imbs- cost of

prosthetic devices implanted during surgical procedure li*e 7acema*er- relevant laboratory

diagnostic tests- etc D similar e#penses.

3. /ll ,ospitalisation 3#penses (e#cluding cost of organ- if any+ incurred for donor in

respect of 9rgan transplant.

3#penses in respect of the

following specified illnesses will

be restricted as detailed below@

,ospitalisation enefits

5&)&TS $9C 3/ ,

,9S7&T/5&S/T&9=

a. ataract b. ,ernia

c. ,ysterectomy

d. $ollowing Specified major

surgeries

i. ardiac Surgeries

ii. ancer Surgeries

iii. rain Tumour

Surgeries

iv. 7acema*er implantation

$or sic*- sinus

a. ! % of S& subject to ma#imum

of Cs.2;- E

b. !;% of the S& subject to

ma#imum of

Cs." - E

c. 2 % of the S& subject to

ma#imum of

Cs.; - E

d. 4 % of the S& subject to

ma#imum of Cs.' 5ac



syndrome

v. ,ip replacement

vi. Hnee joint replacement

&n respect of persons above 6 years- ! % deductible will be applied on all admissible

claims..

!." ompany0s 5iability for all claims admitted in respect of anyEall insured personEs during

the period of insurance shall not e#ceed the Sum &nsured stated in the schedule.

STANDARD FIRE

• uildings

• )achinery and /ccessories

• Stoc* and stoc* in process

• ontents including furniture

5HAT CAN -E INSURED

• wellings 9ffices Shops ,ospitals(5ocated outside the compounds of

industrialEmanufacturing ris*s+

• &ndustrial E )anufacturing Cis*s

• Utilities located outside industrialEmanufacturing ris*s

• )achinery and /ccessories

• Storage Cis*s outside the compound of industrial ris*s

• Tan* farms E 8as holders located outside the compound of industrial ris*s

MOTOR 2AC$A&E



5e Co er

• P)otor vehicle which includes private cars )otorised Two wheelers and

ommercial vehicles e#cluding vehicles running on rails.

5+o can Insure 6

• P9wners of the vehicle $inanciers or 5essee who have insurable interest in a motor

vehicle.

Insured=s Dec!ared 3a!ue .ID3/

(a+ &n case of vehicle not e#ceeding ; years of age the & G has to be arrived at by applying

the percentage of depreciation specified in the tariff on the showroom price of the

particular ma*e and model of the vehicle.

(b+ &n case of vehicles e#ceeding ; years of age and 9bsolete models (manufacture of

those vehicles which have been stopped by the manufacturers+ they have to be insured for

the prevailing mar*et value of the same as agreed to between the insurer and the insured.

Shriram 5ife &nsurance ompany is the joint venture between the Shriram 8roup and the

Sanlam 8roup.

The Shriram 8roup is one of the largest and well respected financial servicesconglomerates in &ndia. The 8roup0s main line of activities in financial services include chit

fund- truc* financing- consumer durable financing- stoc* bro*ing- insurance bro*ing and

life insurance.



The 8roup has a customer base of " lacs chit subscribers and investors and operates

through a networ* of 6" offices all over the country. The 8roup has the largest agency

force in the private sector consisting of more than 4;- loyal and dedicated agents.

Sanlam 5ife &nsurance 5imited- a part of the Sanlam 8roup- is one of the largest providers

of life insurance in South /frica with ".2 million individual policies under administration.

&t has a significant presence across South /frica- United Hingdom and =amibia and is a

major provider of life insurance- retirement annuities- saving and investment products-

personal loans- home loans and trust services to individuals. The shareholder0s funds of

Sanlam 5ife e>uates to US '.' billion.

The Sanlam 8roup was established in ! !1 and has a leadership position in financial

services in South /frica. emutuali?ed in ! 1- the group is listed on the :S3 Securities

3#change in :ohannesburg and on the =amibian Stoc* 3#change. &t has a current mar*et

capitali?ation of US ;.' billion. The Sanlam 8roup also operates in the areas of group

schemes- retirement funds- short term insurance- asset management and other financial

services. &t has an employee strength of 1- and has shareholder funds in e#cess of US

'.6 billion. 9n "!st ecember 2 ' it had more than US '1 billion assets under

management.

3ISION

The Shriram 5ife &nsurance ompany is set out with the objective of reaching out to the

common man with a host of products and services that would be helpful to him in his path

to prosperity.

3fficiency in operations- integrity and a strong focus on catering to the needs of the

common man- by offering him high >uality and cost effective products and services- are the

values driving the organi?ation. These core values are deep rooted within the organi?ation

and have been strongly adhered to over the decades.

The company prides itself on its perfect understanding of the customer. 3ach product or

service is tailor made to perfectly suit the needs of the customer. &t is this guiding

http://www.shriramlife.com/WebportalFinal/Vision.jsp

http://www.shriramlife.com/WebportalFinal/Vision.jsp



philosophy of putting people first that has brought the ompany closer to the grassroots

and has made it the preferred choice for all the truc* financing re>uirements amongst the

customers.

OUR TEAM

/ Shriram veteran- )r.Caghunathan is a fellow of the &nsurance &nstitute of &ndia and

wor*ed with 5& for 24 years and with the Shriram 8roup for another 2; years in various

capacities. ,e is involved in guiding and mentoring Underwriting- laims and legal teams

and acts as a bridge between Sales teams and ,9. / firm believer in empowering people-

he has nurtured highly competent and business savvy teams within these functions.

/ hartered /ccountant with an ) / from O5C& :amshedpur and an /ssociate of the

&nsurance &nstitute of &ndia- )r.,ariharan has been with the Shriram 8roup for more than

!6 years. ,e previously wor*ed with the &ndian Cailways and Tata )otors for over two

http://www.shriramlife.com/WebportalFinal/OurTeam.jsp

http://www.shriramlife.com/WebportalFinal/OurTeam.jsp



decades. ,e was the first Gice 7resident of )edicorp technologies and 39 M 79 of

7roactive Solutech. /s &9- he and his team manages funds of around 2 crores.

7reviously the )anaging irector of Shriram &nvestments 5td- )s./*hila Srinivasan was

selected as one of the 2; most powerful business women in the country by usiness Today

maga?ine. She is also a ,onorary consul for =etherlands and is associated with many

social welfare programmes.

2RODUCTS



Shrilife is an participating life insurance plan that combines security and saving.

/ Traditional 7lan where the total benefit payable during the policy term is two times the

sum assured.

/ Traditional participating life insurance plan that provides security for the childs

education.

The 7remium is payable only once but life cover will be available throughout the policy

term.



This life &nsurance plan provides financial support at the time of marriage of the children.

Shri Sura*sha is an increasing and without profits Term /ssurance plan that gives life

cover for individuals.

This life &nsurance plan that provides a series of payments at regular intervals as long as the

policy holder survives and returns the purchase price upon death to the nominee



Shri /*shay =idhi is a regular premium money bac* policy with participation in

profits.The premiums are payable at regular intervals during the term of the policy.

This l ife &nsurance plan with a conversion option to change a whole 5ife /ssurance 7lan

on ;th last policy anniversary.



This life &nsurance plan designed to provide an affordable -easy to obtain an financial

safety.

This life &nsurance plan designed to ma*e you a real champion in reaching your $inancial

target.

Shiram Ujjwal 5ife(S7+ to accomplish all your financial goals.



&f Fou are thin*ing of &nvesting -the first thing you need to do is wor* out what your

personal and financial goals

To protect your loved ones against une#pected events and ma#imi?e your investments.



This 8roup Term /ssurance plan that assures payment of sum assured upon death.

This group insurance product is basically for loan providers who will be the master

policyholder.



This a )icro &nsurance plan that will give life cover for socially wea*er section.

This life &nsurance plan that will give life cover for socially wea*er sections of

population. .



INTRODUCTION TO TO2IC

INTRODUCTION TO TO2IC

The process of putting an analysis down in writing can be instrumental in ma*ing sure as

many stones as possible have been turned over when researching a company. Fa%ed

http://www.investopedia.com/university/greatest/peterlynch.asp




in estor 2eter L#nc+ is credited with using the above phrase and is >uoted as saying that

Qthe person that turns over the most roc*s wins the game. /nd that0s always been my

philosophy.R elow is an overview of the major sections to consider when writing a

financial analysis report on a company.

Co%pan# O er ie'

/ report should start with a description of the company in order to help investors

understand the business- its industry- its motivation and any edge it might have over its

competitors. These factors can prove invaluable in helping to e#plain why a company

might be a profitable investment or not. / firmLs annual report- )>,$ filing or >uarterly !

I with the Securities D 3#change ommission provide ideal starting pointsJ it is surprising

how rare it is for industry e#perts to refer to original company filings for important details.

)ore valuable detail can be obtained from industry trade journals- reports from *ey rivals

and other analyst reports.

To also capture *ey fundamentals to describe a company- loo* to )ichael 7orterJ T+e

2orter;s Fi e Forces %ode! helps e#plain a companyLs place within its industry.

Specifically- the factors include the threat for new entrants to enter the mar*et- the threat

for substitute products or services- the e#tent to which suppliers are able to influence the

company and the intensity of rivalry among e#isting competitors.

In est%ent T+esis

The motivation for a bullish or bearish stance on a company is uncovered in this section. &t

can come at the top of a report and include parts of a company overview- but regardless of

its position in an analysis should cover the *ey investment positives and negatives.

/ fundamental analysis- which can also be its own section- can be included here and

contain research on the firmLs financial statements- such as sales and profit growth trends-

cash flow generation strength- debt levels and overall li>uidity- and how this compares to

the competition. =o detail is too small in this sectionJ it can also cover efficiency ratios li*e

the primary components in the cas+ con ersion c#c!e - turnover ratios and a detailed


http://www.investopedia.com/terms/1/10-k.asp

http://www.investopedia.com/features/industryhandbook/porter.asp


http://www.investopedia.com/terms/c/cashconversioncycle.asp


http://www.investopedia.com/terms/1/10-k.asp



http://www.investopedia.com/terms/c/cashconversioncycle.asp



brea*down of return on e?uit# components- such as the u7ont identity- which will

1rea" ROE into t+ree to fi e different %etrics .

The most important component of analy?ing past trends is to synthesi?e it into a forecast of

the companyLs performance. =o analyst has a crystal ball- but the best ones are able toaccurately e#trapolate past trends into the future- or decide which factors are the most

important in defining success for a company going forward.

3a!uation

The most important part of any financial analysis is to come to an independent value for the

stoc* and compare this to the mar*et price. There are three primary valuation techni>ues@

The first- and arguably most fundamental- techni>ue is to estimate a companyLs future cash

flows and discount them bac* to the future at an estimated discount rate. This is generally

referred to as a discounted cas+ f!o' analysis. The second is called relative value where

the fundamental metrics and valuation ratios (price to sales- price to earnings- 7E3 to

growth- etc.+ are compared to competitors. /nother comparison analysis is to loo* at what

other rivals have been bought out for or the price paid for an ac>uisition. The third and last

techni>ue is to loo* at boo* value and try to estimate what a company might be worth if

bro*en up or li>uidated. / boo* value analysis is especially insightful for financial stoc*s-

for instance.

$e# Ris"s

This section can be part of the bullEbear story in the investment thesis- but is meant to detail

*ey factors that may derail either a bullish or bearish stance. The loss of patent protection

for a bloc*buster drug for a pharmaceutical company is a great e#ample of a factor that can

weigh heavily on the valuation for its underlying stoc*. 9ther considerations include the

industry in which the firm operates. $or e#ample- t+e tec+no!og# industr# is mar*ed byshort product life cycles- which can ma*e it hard for a firm to *eep its edge following a

successful product release.

Ot+er Considerations

http://www.investopedia.com/terms/r/returnonequity.asp


http://www.investopedia.com/articles/fundamental-analysis/08/dupont-analysis.asp

http://www.investopedia.com/terms/d/dcf.asp

http://www.investopedia.com/articles/stocks/10/primer-on-the-tech-industry.asp


http://www.investopedia.com/articles/fundamental-analysis/08/dupont-analysis.asp

http://www.investopedia.com/terms/d/dcf.asp

http://www.investopedia.com/articles/stocks/10/primer-on-the-tech-industry.asp



The above sections could prove sufficient- but depending on the stones uncovered during a

financial analysis- other new sections might be warranted. Sections covering corporate

go ernance - the political environment or nearer term news flow- might be worthy of a

fuller analysis. asically- anything important that can impact the future value of a stoc*

should e#ist somewhere within the report.

T+e -otto% Line

7erformance of the underlying company is most certainly to drive the performance of its

stoc* or bond in the future. 9ther derivative securities- such as futures and options- will

also depend on an underlying investment- be it a commodity or a company. $iguring out

the *ey drivers to the performance of a stoc* and putting it down in writing can be aninvaluable endeavor for any investor- regardless of if a formal research report is needed.

FINANCIAL ANALYSIS

Financia! ana!#sis (also referred to as financia! state%ent ana!#sis or accounting

ana!#sis or Ana!#sis of finance + refers to an assessment of the viability- stability and

profitability of a 1usiness - sub business or pro@ect.

&t is performed by professionals who prepare reports using ratios that ma*e use of

information ta*en from financia! state%ents and other reports. These reports are usually

presented to top management as one of their bases in ma*ing business decisions.

• ontinue or discontinue its main operation or part of its businessJ

• )a*e or purchase certain materials in the manufacture of its productJ

• /c>uire or rentElease certain machineries and e>uipment in the production of its

goodsJ

• &ssuestoc"s or negotiate for a ban* !oan to increase its 'or"ing capita! J

• )a*e decisions regarding investing or lending capitalJ

• 9ther decisions that allow management to ma*e an informed selection on various

alternatives in the conduct of its business.

http://www.investopedia.com/terms/c/corporategovernance.asp


http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Project

http://en.wikipedia.org/wiki/Financial_statements


http://en.wikipedia.org/wiki/Stocks

http://en.wikipedia.org/wiki/Loan

http://en.wikipedia.org/wiki/Working_capital




http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Project


http://en.wikipedia.org/wiki/Stocks

http://en.wikipedia.org/wiki/Loan




GOALS

$inancial analysts often assess the following elements of a firm@

!. 2rofita1i!it# its ability to earn income and sustain growth in both the short and long

term. / company0s degree of profitability is usually based on the inco%e state%ent - which

reports on the company0s results of operationsJ

2. So! enc# its ability to pay its obligation to creditors and other third parties in the long

termJ

". Li?uidit# its ability to maintain positive cas+ f!o' - while satisfying immediate

obligationsJ

Both 2 and 3 are based on the company's 1a!ance s+eet , which indicates the financial

condition of a business as of a given point in time.

'. Sta1i!it# the firm0s ability to remain in business in the long run- without having to

sustain significant losses in the conduct of its business. /ssessing a company0s stability

re>uires the use of both the income statement and the balance sheet- as well as other

financial and non financial indicators. etc.

METHODS

$inancial analysts often compare financia! ratios (of so! enc# - profita1i!it# - growth- etc.+@

• 2ast 2erfor%ance /cross historical time periods for the same firm (the last ;

years for e#ample+-

• Future 2erfor%ance Using historical figures and certain mathematical and

statistical techni>ues- including present and future values- This e#trapolation

method is the main source of errors in financial analysis as past statistics can be

poor predictors of future prospects.

• Co%parati e 2erfor%ance omparison between similar firms.

These ratios are calculated by dividing a (group of+ account balance(s+- ta*en from the1a!ance s+eet and E or the inco%e state%ent - by another- for e#ample @

Net inco%e / equity = return on e?uit# !"#$

Net inco%e / total assets = return on assets !"%$

&toc price / earnings per share = 2 E ratio

http://en.wikipedia.org/wiki/Income_statement

http://en.wikipedia.org/wiki/Cash_flow

http://en.wikipedia.org/wiki/Balance_sheet

http://en.wikipedia.org/wiki/Financial_ratios


http://en.wikipedia.org/wiki/Solvency

http://en.wikipedia.org/wiki/Profit_(accounting)





http://en.wikipedia.org/wiki/Net_income

http://en.wikipedia.org/wiki/Return_on_equity


http://en.wikipedia.org/wiki/Return_on_assets

http://en.wikipedia.org/wiki/P/E_ratio


http://en.wikipedia.org/wiki/Cash_flow



http://en.wikipedia.org/wiki/Solvency





http://en.wikipedia.org/wiki/Return_on_equity


http://en.wikipedia.org/wiki/Return_on_assets

http://en.wikipedia.org/wiki/P/E_ratio



omparing financial ratios is merely one way of conducting financial analysis. Financia!

ratios face several theoretical challenges@

• They say little about the firm0s prospects in an absolute sense. Their insights about

relative performance re>uire a reference point from other time periods or similar

firms.

• 9ne ratio holds little meaning. /s indicators- ratios can be logically interpreted in at

least two ways. 9ne can partially overcome this problem by combining several

related ratios to paint a more comprehensive picture of the firm0s performance.

• Seasonal factors may prevent year end values from being representative. / ratio0s

values may be distorted as account balances change from the beginning to the end

of an accounting period. Use average values for such accounts whenever possible.

• $inancial ratios are no more objective than the accounting methods employed.

hanges in accounting policies or choices can yield drastically different ratio

values.

• Funda%enta! ana!#sis .

$inancial analysts can also use percentage analysis which involves reducing a series of

figures as a percentage of some base amount. $or e#ample- a group of items can be

e#pressed as a percentage of net income. Ahen proportionate changes in the same figure

over a given time period e#pressed as a percentage is *nown as hori?ontal analysis.

Gertical or common si?e analysis- reduces all items on a statement to a Qcommon si?eR as a

percentage of some base value which assists in comparability with other companies of

different si?es. /s a result- all &ncome Statement items are divided by Sales- and all

alance Sheet items are divided by Total /ssets

/nother method is comparative analysis. This provides a better way to determine trends.

omparative analysis presents the same information for two or more time periods and is

presented side by side to allow for easy analysis.

2ROFITA-ILITY



http://en.wikipedia.org/wiki/Fundamental_analysis



http://en.wikipedia.org/wiki/Fundamental_analysis



2rofita1i!it# is the primary goal of all business ventures. Aithout profitability the business

will not survive in the long run. So measuring current and past profitability and projecting

future profitability is very important.

7rofitability is measured with income and e#penses. &ncome is money generated from the

activities of the business. $or e#ample- if crops and livestoc* are produced and sold-

income is generated. ,owever- money coming into the business from activities li*e

borrowing money do not create income. This is simply a cash transaction between the

business and the lender to generate cash for operating the business or buying assets.

3#penses are the cost of resources used up or consumed by the activities of the business.

$or e#ample- seed corn is an e#pense of a farm business because it is used up in the

production process. Cesources such as a machine whose useful life is more than one year is

used up over a period of years. Cepayment of a loan is not an e#pense- it is merely a cash

transfer between the business and the lender.

7rofitability is measured with an Qincome statementR. This is essentially a listing of income

and e#penses during a period of time (usually a year+ for the entire business. ecision Tool

&ncome Statement Short $orm- is used to do a simple income statement analysis. /n

&ncome Statement is traditionally used to measure profitability of the business for the past



accounting period. ,owever- a Qpro forma income statementR measures projected

profitability of the business for the upcoming accounting period. / budget may be used

when you want to project profitability for a particular project or a portion of a business.

Ceasons for omputing 7rofitability

Ahether you are recording profitability for the past period or projecting profitability for the

coming period- measuring profitability is the most important measure of the success of the

business. / business that is not profitable cannot survive. onversely- a business that is

highly profitable has the ability to reward its owners with a large return on their

investment.

&ncreasing profitability is one of the most important tas*s of the business managers.)anagers constantly loo* for ways to change the business to improve profitability. These

potential changes can be analy?ed with a pro forma income statement or a 7artial udget.

7artial budgeting allows you to assess the impact on profitability of a small or incremental

change in the business before it is implemented.

/ variety of 7rofitability Catios ( ecision Tool+ can be used to assess the financial health

of a business. These ratios- created from the income statement- can be compared with

industry benchmar*s. /lso- &ncome Statement Trends ( ecision Tool+ can be trac*ed over

a period of years to identify emerging problems.

ACCOUNTIN& METHODS

Cas+ Met+od of Accounting

Traditionally farmers have used the Qcash methodR of accounting where income and

e#penses are reported on the income statement when products are sold or inputs are paid

for. The cash method of accounting- used by most farmers- counts an item as an e#pense

when it is purchased- not when it is used in the business. This has been used as a method of

managing ta# liability from year to year. ,owever- many non farm business accounting

systems count an item as an e#pense only when it is actually used in the business activities.



,owever- net income can be distorted with the cash method of accounting by selling more

than two years crops in one year- selling feeder livestoc* purchased in a previous year- and

purchasing production inputs in the year before they are needed.

Accrua! Met+od of Accounting

To provide a more accurate picture of profitability- the accrual method of accounting can

be used. Aith this method- income is reported when products are produced (not when they

are sold+ and e#penses are reported when inputs are used (not when they are purchased+./ccrual accounting uses the traditional cash method of accounting during the year but adds

or subtracts inventories of farm products and production inputs on hand at the beginning

and ending of the year.

/ wor*sheet for computing =et $arm &ncome Statement ( ecision Tool+ with accrual

accounting is available that contains schedules for including beginning and ending

inventories. &nformation on creating and using a =et $arm &ncome Statement is also

available.

/lthough seldom used in farming- ouble 3ntry /ccounting (&nformation $ile

Understanding ouble 3ntry /ccounting+ will provide results similar to accrual

accounting. ouble entry accounting also updates the net worth statement every time an

income or e#pense occurs.

efining 7rofitability



2rofita1i!it# can 1e defined as eit+er accounting profits or econo%ic profits4

Accounting 2rofits .Net Inco%e/

Traditionally- farm profits have been computed by using Qaccounting profitsR. To

understand accounting profits- thin* of your income ta# return. Four Schedule $ provides a

listing of your ta#able income and deductible e#penses. These are the same items used in

calculating accounting profits. ,owever- your ta# statement may not give you an accurate

picture of profitability due to &CS rapid depreciation and other factors. To compute an

accurate picture of profitability you may want to use a more accurate measure of

depreciation.

/ccounting profits provide you with an intermediate view of the viability of your business.

/lthough one year of losses may not permanently harm your business- consecutive years of

losses (or net income insufficient to cover living e#penditures+ may jeopardi?e the viability

of your business.

Econo%ic 2rofits



&n addition to deducting business e#penses- opportunity costs are also deducted when

computing Qeconomic profitsR. 9pportunity costs relate to your money (net worth+- your

labor and your management ability. &f you were not farming- you would have your money

invested elsewhere and be employed in a different career. 9pportunity cost is the

investment returns given up by not having your money invested elsewhere and wages given

up by not wor*ing elsewhere. These are deduced- along with ordinary business e#penses- in

calculating economic profit.

3conomic profits provide you with a long term perspective of your business. &f you can

consistently generate a higher level of personal income by using your money and labor

elsewhere- you may want to e#amine whether you want to continue farming.

7rofitability is not ash $low

7eople often mista*enly believe that a profitable business will not encounter cash flow

problems. /lthough closely related- profitability and cash flow are different. /n income

statement lists income and e#penses while the cash flow statement lists cash inflows and

cash outflows. /n income statement shows profitability while a cash flow statement shows

li>uidity.

)any income items are also cash inflows. The sale of crops and livestoc* are usually both

income and cash inflows. The timing is also usually the same (cash method of accounting+

as long as a chec* is received and deposited in your account at the time of the sale. )any

e#pense items are also cash outflow items. The purchase of livestoc* feed is both an

e#pense and a cash outflow item. The timing is also the same (cash method of accounting+

if a chec* is written at the time of purchase.

,owever- there are many cash items that are not income and e#pense items- and vice versa.

$or e#ample- the purchase of a tractor is a cash outflow if you pay cash at the time of

purchase as shown in the e#ample in Table 2. &f money is borrowed for the purchase using

a term loan- the down payment is a cash outflow at the time of purchase and the annual

principal and interest payments are cash outflows each year as shown in Table ".



The tractor is a capital asset and has a life of more than one year. &t is included as an

e#pense item in an income statement by the amount it declines in value due to wear and

obsolescence. This is called QdepreciationR. The depreciation e#pense is listed every year.

&n the tables below a B4 - tractor is depreciated over seven years at the rate of B! -

per year.

epreciation calculated for income ta# purposes can be used. ,owever- to accurately

calculate net income- a more realistic depreciation amount should be used to appro#imate

the actual decline in the value of the machine during the year.

&n Table "- where the purchase is financed- the amount of interest paid on the loan isincluded as an e#pense- along with depreciation- because interest is the cost of borrowing

money. ,owever- the principal payments are not an e#pense but merely a cash transfer

between you and your lender.

Ot+er Financia! State%ents

/n income statement is only one of several financial statements that can be used to

measure the financial strength of a business. 9ther common statements include the balance

sheet or net worth statement and the cash flow statement- although there are several other

statements that may be included.

These statements fit together to form a comprehensive financial picture of the business.

The balance sheet or =et Aorth Statement shows the solvency of the business at a specific

point in time. Statements are often prepared at the beginning and ending of the accounting

period (i.e. :anuary !+. The statement records the assets of the business and their value and

the liabilities or financial claims against the business (i.e. debts+. The amount by which

assets e#ceed liabilities is the net worth of the business. The net worth reflects the amount

of ownership of the business by the owners.



The ash $low Statement is a dynamic statement that records the flow of cash into and out

of the business during the accounting period. / positive (negative+ cash flow will increase

(decrease+ the wor*ing capital of the business. Aor*ing capital is defined as the amount of

money used to facilitate business operations. &t is calculated as current assets (cash or near

cash assets+ less current liabilities (liabilities due during the upcoming accounting period+.

/ omplete set of $inancial Statements ( ecision Tool+- including the beginning and

ending net worth statements- the income statement- the cash flow statement- the statement

of owner e>uity and the financial performance measures is available to do a comprehensive

financial analysis of your business.

To help you assess the financial health of your business- $inancial 7erformance )easures

allows you to give your business a chec* up. &nterpreting $inancial 7erformance )easures

helps you to understand what these performance measures mean for your business.

[email protected]#tension.iastate.eduEagdmEwholefarmEhtmlEc" 2'.html

NEED OF THE STUDY



The purpose of my study is descriptive. &t is the conceptual structure within which the

research is conducted. &ts function is to provide for the collection of revelant evidence with

minimal e#penditure of effort- time and money.

Descripti e researc+ study i.e. to portray accurately the characteristics of a particular

service.



O-BECTI3ES OF THE RESEARCH

To study the accounting method of $inancial analysis .

To study the profitability analysis of &nsurance industry

To determine the li>uidity position of the companies .



RESEARCH METHODOLO&Y



RESEARCH METHODOLO&Y

MEANIN& 8 Cesearch methodology means the var ious means or methods

used for col lect ing the data for our study. ur ing the course of th is studyw e c om e a cr os s m an y p eo pl e a nd c om pl et ed m y s tu dy b y t he h el p o f

receiving data from these people.

THE RESEARCH 2ROCESS

! 4 COLLECTION OF DATA @ oth the primary D secondary data has been collected

from the mar*et D company. The company provided the secondary data D primary data is

collected through the medium of face to face interaction D interview from various personsin the enterprise.

2. OR&ANISATION OF DATA @ ata once collected the further processing is done- the

data collected by me are carefully done through in a useful D relevant manner Dproperly

organi?ed.

". 2RESENTATION OF DATA @ The data collection is of no use unless D until it is

given in the presentable form. Thus after proper organi?ation the data is given in

presentable form with the complete details- with the help of bar diagram- pie carts etc.

4 ANALYSIS OF DATA8, The data is carefully analy?ed *eeping in the consideration

both the pros D cons for the purpose of arriving at concrete conclusion.

; 4 INTER2RETATION OF DATA @/fter carefully analy?ed the data- it has been aptly interpreted in order to give concrete

conclusion D proper recommendation.



RESEARCH DESI&N

Cesearch design involves a series of rational decision ma*ing benefits at each point from

such sophisticated design to ensure accuracy- confidence and commensurate with large

investment of resources.

2UR2OSE OF STUDY8

3#ploratory

escriptive

,ypothesis testing

The purpose of my study is descriptive. &t is the conceptual structure within which theresearch is conducted. &ts function is to provide for the collection of revelant evidence with

minimal e#penditure of effort- time and money.

Descripti e researc+ study i.e. to portray accurately the characteristics of a particular

service.

DATA SOURCES 8,

Two typ es o f d a ta h ave b een co ll ec ted fo r co mp let in g the s tu d y- tho se

were@

! . 7 rima ry a ta

2 . S ec on da ry at a

DATA COLLECTION



Secondar# data8 &t is the data- which has already collected by some organi?ation for some

purpose or research study. The data for my study has been collected from various.

Secondary data means that data that are already available i.e. refers to data which hasalready been collected and analy?ed by someone else. The sources used in this case are

)4 -oo"s

4 Bourna!s

4 Maga ines

4 Internet sources

G4 Ne'spapers

M# data co!!ection is 1ased on secondar# data i4e4 fro% 'e1sites0 1oo"s0 pro'ess etc4

SAM2LIN& DESI&N 8

SAM2LIN& UNIT 8 &t is the unit which would be considered for the purpose of study @

7rofitability analysis of pharmaceutical industry .

SAM2LE SI:E8 This refers to the number of items to be selected from the universe to

constitute a sample. To commence the study- following sample si?e will be ta*en@

profitability /nalysis of 7harmaceutical industry co%panies . United India

Insurance S+ri Ra% Insurance /

SAM2LIN& METHOD 8 Non pro1a1i!it# %et+od



DATA ANALYSIS

INTER2RETATION



DATA ANALYSIS INTER2RETATION

!. EARNIN&S 2ER SHARE .IN CS. /

TA-LE 8 )

SHO5IN& STATUS OF E2S O3ER THE 2ERIOD OF STUDY

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>J

UNITED !''.;' !'".4!! 6." 16. 6

1".6

SHRI RAM 6'."" ;2.61 ''.1; ";.44 24.1

FI&URE 8 )

INTER2RETATION

&t is revealed from the table and figure that earnings per share of both the two &nsurance

companies increasing year after year. 37S of United ranged from1".6 to !''.;' during

the period of study- whereas the Shri Cam has managed to earn 24.1 to 6'."" on per

share.

4 DI3IDEND 2ER SHARE

TA-LE 8

United S+ri Ra%

)ar !2

)ar !!

)ar !

)ar

)ar 1



COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED 22 .6" 2" . ' !4".6! !'4.42 !2'.44

SHRI RAM! 6.2; 2."6 ! 4."2 16.! ;2.;6

FI&URE,

INTER2RETATION&t is revealed from the table and figure that 9perating profit per share of both the two

&nsurance companies increasing year after year. 9perating profit per share of United

ranged from !2'.44 to 22 .6" during the period of study- whereas the Shri Cam has

managed to earn ;2.;6 to ! 6.2; on per share.

4 NET O2ERATIN& INCOME 2ER SHARE .RS/

TA-LE 8

COM2AN MAR MAR MAR MAR MAR

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



Y NAME >) >)) >)> >> >>JUNITED !-";".!; !-!4 .'; 1 .1" 1""."1 4! .;'

SHRI RAM '"6. " '6'.44 "'1.;4 2; . 1 !44.1

FI&URE,

INTER2RETATION

&t is revealed from the table and figure that =et operating income per share of both the two

&nsurance companies increasing year after year. =et operating income per share of United

ranged from 4 !.;' to !";".; during the period of study- whereas the Shri Cam has

managed to earn !44.1 to '"6. " on per share.

2ART II8 2ROFITA-ILITY RATIOS

)4 O2ERATIN& MAR&IN .K/

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED !6. 6 ! .; ! .2 !4.42 !4.""

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that 8ross profit margin % of both the two

&nsurance companies increasing and decreasing year after year. 8ross profit margin of

United ranged from !;.'! to !;.11 during the period of study- whereas the Shri Cam has

managed to earn 26."; to 22." on per share.

4 NET 2ROFIT MAR&IN .K/

TA-LE 8

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>J

UNITED! .;' !2. " !!.6; ! .!2 !!.2!

SHRI RAM !'.46 !!."; !2.12 !".;4 !;.;;

FI&URE,

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that =et profit margin% of both the two &nsurance

companies increasing and decreasing year after year. =et profit margin% of United

ranged from !!.2! to ! .;' during the period of study- whereas the Shri Cam has managed

to earn !;.;; to !'.46 on percentage.

4 RETURN ON NET 5ORTH .K/

TA-LE 8 J

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED !".1 !;.4' !".42 !'.; !;. '

SHRI RAM!".4 !;."2 !".1" !4.4' !6.'"

FI&URE,J

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION&t is revealed from the table and figure that Ceturn on net worth of both the two &nsurance

increasing and decreasing year after year. Ceturn on net worth of United ranged from

!;. ' to !".1 during the period of study- whereas the Shri Cam has managed to earn

!6.'" to !".4 on percentage.

2ART III8 LE3ERA&E RATIOS

!. TOTAL DE-T E UITY

TA-LE 8

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED !2.! !2.1! ! . 6 !". ! !".4;

SHRI RAM 4.41 .4; 1.46 ! .62 ! .;"

FI&URE,

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RTATION 8

&t is revealed from the table and figure that Total debtEe>uity of both the two &nsurance

increasing and decreasing year after year. Total debt Ee>uity of United ranged from !".4; to

!2.! during the period of study- whereas the Shri Cam has managed to earn ! .;" to 4.41

on per share.

2. O5NERS FUND AS K OF TOTAL SOURCE

TA-LE 8 )>

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED 4.;4 4.2' 1."6 6.4 6.41

SHRI RAM!!." ." ! .2' 1.6 1.64

FI&URE,)>

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that 9wner fund as % of total source of both the two

&nsurance companies increasing and decreasing year after year. 9wner fund as % of total

source of United ranged from 6.41 to 4.;4 during the period of study- whereas the Shri

Cam has managed to earn 1.64 to !!." on per share.

4 FI9ED ASSETS TURNO3ER RATIO

TA-LE 8 ))

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED 4.26 4.2 6."2 ;.'' ;.!

SHRI RAM '.2' ;. ;.!1 '."" ".;

FI&URE,))

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that $i#ed assets turnover ratio of both the two

&nsurance company increasing and decreasing year after year. $i#ed assets turnover ratio

of United ranged from ;.! to 4.26 during the period of study- whereas the Shri Cam has

managed to earn ".; to '.2' on percentage.

2ART I38 LI UIDITY RATIOS

)4 CURRENT RATIO 8

TA-LE 8 )

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED .'" ."' .;" .'2 .'

SHRI RAM .21 .24 .26 .26 .2

FI&URE,)

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that urrent ratio of both the two &nsurance

companies increasing and decreasing year after year. urrent ratio of United ranged from

.' to .'" during the period of study- whereas the Shri Cam has managed to earn .2 to

.21 on percentage.

4 CURRENT RATIO .INC4 ST LOANS/

TA-LE 8 )

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED . " . ' . 4 . ; . ;

SHRI RAM. " . " . " . ' . "

FI&URE,)

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that urrent ratio of both the two &nsurance

companies increasing and decreasing year after year. urrent ratio of United ranged from

.' to .'" during the period of study- whereas the Shri Cam has managed to earn .2 to

.21 on percentage.

4 UIC$ RATIOTA-LE 8 )

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED . 4 ;.4' 6.!; 6.;2 ;.;

SHRI RAM 4.!' ;.2" '.1 '. 4 ;.!1

FI&URE,)

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that Iuic* ratio of both the two &nsurance

companies increasing and decreasing year after year. Iuic* ratio of United ranged from

;.; to . 4 during the period of study- whereas the Shri Cam has managed to earn ;.!1

to 4.!' on percentage.

2ART 38 2AYOUT RATIOS

!. DI3IDEND 2AYOUT RATIO .NET 2ROFIT/

TA-LE 8 )G

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED 2"."6 22. 22.6' !1. 1 ! . 6

SHRI RAM 2!.42 22.!6 22.!6 22. ! 22.;;

FI&URE,)G

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that ividend payout ratio(net profit+ of both the

two &nsurance companies increasing and decreasing year after year. ividend payout ratio

(net profit+ of United ranged from ! . 6 to 2"."6 during the period of study- whereas the

shri Cam has managed to earn 22.;; to 2!.42 on percentage.

2. EARNIN& RETENTION RATIO

TA-LE 8 )

COM2AN

Y NAME

MAR

>)

MAR

>))

MAR

>)>

MAR

>>

MAR

>>JUNITED 46.64 44.!! 44."" 1 . 4 1 . "

SHRI RAM 41.2; 44.4 44.1" 44.!! 44.''

FI&URE,)

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



INTER2RETATION

&t is revealed from the table and figure that ash 3arning retention ratio of both the two

&nsurance companies increasing and decreasing year after year . ash 3arning retention

ratio of United ranged from 1".6' to 41.12 during the period of study- whereas the Shri

Cam has managed to earn 1'.1" to 1 .12 on percentage.

)ar !2

)ar !!

)ar !

)ar

)ar 1

United S+ri Ra%



FINDIN&S

FINDIN&S

earnings per share of both the two &nsurance companies increasing year after year.

37S of United ranged from1".6 to !''.;' during the period of study- whereas the

Shri Cam has managed to earn 24.1 to 6'."" on per share.

ividend per share of both the two &nsurance companies increasing year after year.7S of United ranged from !'. to " . during the period of study- whereas the

Shri Cam has managed to earn ;.; to !2. on per share.

9perating profit per share of both the two &nsurance companies increasing year

after year. 9perating profit per share of United ranged from !2'.44 to 22 .6"



9wner fund as % of total source of both the two &nsurance companies increasing

and decreasing year after year. 9wner fund as % of total source of United ranged

from 6.41 to 4.;4 during the period of study- whereas the Shri Cam has managed

to earn 1.64 to !!." on per share.

$i#ed assets turnover ratio of both the two &nsurance company increasing and

decreasing year after year. $i#ed assets turnover ratio of United ranged from ;.!

to 4.26 during the period of study- whereas the Shri Cam has managed to earn ".;

to '.2' on percentage.

urrent ratio of both the two &nsurance companies increasing and decreasing year

after year. urrent ratio of United ranged from .' to .'" during the period of

study- whereas the Shri Cam has managed to earn .2 to .21 on percentage.

Iuic* ratio of both the two &nsurance companies increasing and decreasing year

after year. Iuic* ratio of United ranged from ;.; to . 4 during the period of

study- whereas the Shri Cam has managed to earn ;.!1 to 4.!' on percentage.

ividend payout ratio(net profit+ of both the two &nsurance companies increasing

and decreasing year after year. ividend payout ratio (net profit+ of United ranged

from ! . 6 to 2"."6 during the period of study- whereas the shri Cam has managed

to earn 22.;; to 2!.42 on percentage.

3arning retention ratio of both the two &nsurance companies increasing and

decreasing year after year. 3arning retention ratio of United ranged from 1 . " to

46.64 during the period of study- whereas the Shri Cam has managed to earn 44.''

to 41.2; on percentage.

ash 3arning retention ratio of both the two &nsurance companies increasing and

decreasing year after year . ash 3arning retention ratio of United ranged from



1".6' to 41.12 during the period of study- whereas the Shri Cam has managed to

earn 1'.1" to 1 .12 on percentage.

CONCLUSION



CONCLUSION7rofitability means ability to ma*e profit from all the business activities of an organi?ation-

company- firm- or an enterprise. &t shows how efficiently the management can ma*e profit

by using all the resources available in the mar*et. /ccording to ,arward D Upton-

Qprofitability is the the ability of a given investment to earn a return from its use.R

,owever- the term 7rofitabilityL is not synonymous to the term 3fficiencyL. 7rofitability

is an inde# of efficiencyJ and is regarded as a measure of efficiency and management guide

to greater efficiency. Though- profitability is an important yardstic* for measuring theefficiency- the e#tent of profitability cannot be ta*en as a final proof of efficiency.

Sometimes satisfactory profits can mar* inefficiency and conversely- a proper degree of

efficiency can be accompanied by an absence of profit. The net profit figure simply reveals

a satisfactory balance between the values receive and value given. The change in



operational efficiency is merely one of the factors on which profitability of an enterprise

largely depends. )oreover- there are many other factors besides efficiency- which affect

the profitability.

/part from the short term and long term creditors- owners and management or a company

itself also interests in the soundness of a firm which can be measured by profitability ratios.

7rofitability ratios are of two types those showing profitability in relation to sales (revenue

in case of United + and those showing profitability in relation to investment. Together-

these ratios indicate firmLs overall effectiveness of operation.

Aith a view to appraise profitability of S+ri Ra% 0 the analysis has been made from the

point of view of management and shareholders. The management of the firm is naturally

eager to measure its operating efficiency. Similarly- the owners invest their funds in the

e#pectation of reasonable returns. The operating efficiency of a firm and its ability to

ensure ade>uate returns to its shareholders depends ultimately on the profits earned by it.

LIMITATIONS

Though the present study aims to achieve the above mentioned objectives in full earnest

and accuracy- it may be hampered due to certain limitations. Some of the limitations of this

study may be summari?ed as follows@

• /lthough every effort has been made into collect the relevant information through

the secondary sources available still some relevant information could not be

gathered.

• This study is limited to some particular terminals and it canLt be generali?ed to

some other terminals.

• Sometimes respondent hide the facts- and may be biased to the particular place and

not give the accurate information.



• Cesearcher is ine#perience. This is his first study- so this is also a limitation of the

study.

• ue to changing environment what is relevant today may not be relevant tomorrow.

•

There was lac* of time on the part of respondent and for me also it was not possibleto go into every noo* and corner of the study.

SU&&ESTIONS

/fter the study we come to *now some of the loop holes in the organi?ation which can be

improved so that the wor* of the organi?ation becomes smoother and easier. So here are

some of the suggestions from my side@

&ncrease shareholder value

&ncrease in operating income

)anage costs and unused capacity

uild strong customer relationships

&ncrease mar*et share

&ncrease customer focus of sales organi?ation

onLt assume the cause and effect lin*ages to be precise.



onLt see* improvements across all measures all the time.

onLt use only objective measures on the scorecard.

onLt fail to consider both costs and benefits of initiatives such as spending on

information technology and research and development

onLt ignore non financial measures when evaluating managers and employees.

-I-LIO&RA2HY

-OO$S BOURNALS 8

)4 $ot+ari0 C4R (uantitative )echniques P Second 3dition- ,imalayan 7ublishing

,ouse- =ew elhi- 77 ' ';

4 $ot+ari C4R4 !esearch *ethodology + )echniques P Second 3dition- =ew /ge

&nternational 7ublishers- =ew elhi- 77 1; 1- !! !!;

4 &upta S4$4 *anagement %ccounting P 1th 3dition. 77 2 .! 2 .2

4 &upta S4$4 *anagement %ccountin gP ; th 3dition 77 1 .! 1 .;

G4 &upta S4240 Business &tatistics P urrent 3dition- /rya 7ublications- /gra. 77

;6 41



4 &oe! D4$4 *anagement %ccounting and inancial *anagement P 4 th 3dition-

Ginay 7ublications- =ew elhi- 77 14 1

4 2ande# 0 I4M inancial *anagement- Surya 7ublications- =ew elhi. 77 ' 16

J4 Ma+es+'ari 0S4N %dvanced %ccounting P !st 3dition -)cmillan &ndia 5td.- =ew

elhi- 77 '2 '"

5E-, SITES8

[email protected]>uitymaster.comEdetail.asp

date "E!1E2 ! Dstory 'Dtitle Hey ban*ing ratios && 7SUs vs private

www.economywatch.com/business

http://www.investorwords.com/1952/financial_leverage.html 4

http://www.12manage.com/description_financial_leverage.html

http://autonews.indiacar.com/news/n12234.htm

www.moneycontrol.com

www.bofabusinesscapital.com

www.hdfcstandard.com

ANNE9URE

E UITY SHAREDATA

United S+ri Ra% United

) >) ) >) S+ri Ra%

,igh Cs !- !4 !-2!; 1".4%

5ow Cs " ' ' 1.;%

Sales per share Cs 6 4.2 214." 2'2.4%

3arnings per share Cs 1 .' 26.

ash flow per share Cs 2"".' !! .4 ! '. %

http://www.economywatch.com/business

http://www.investorwords.com/1952/financial_leverage.html



http://www.bofabusinesscapital.com/

http://www.economywatch.com/business

http://www.investorwords.com/1952/financial_leverage.html



http://www.bofabusinesscapital.com/



ividends per share Cs 22. !2. !1"."%

ividend yield (eoy+ % ".! !.; 2 .1%

oo* value per share Cs ; ".2 " '.6 !; ."%

Shares outstanding (eoy+ m "!;." ' ;.!4 44.1%

onusECightsE onversions I&7-8 C

7rice E Sales ratio # !. 2.1 "6. %

/vg 7E3 ratio # 1.1 " . 2 .2%

7E $ ratio (eoy+ # ". 6.4 ''.1%

7rice E oo* Galue ratio # !.2 2. ;1.!%

ividend payout % 24.' ''.6 6!."%

/vg )*t ap Cs m 222-''' "24-!4; 61. %

=o. of employees V ;4 22 26".!%

Total wagesEsalary Cs m "!-'!" !"-; 1 2"!. %

/vg. salesEemployee Cs Th "-16!.' ;-"41.; 4!.1%

/vg. wagesEemployee Cs Th ;;!.1 621.' 14.1%/vg. net profitEemployee Cs Th 6 4.1 !-!';.! 6 . %

INCOME DATA

=et Sales Cs m 2! -12' !!6-" !

9ther income Cs m "'-;"' " -6'2 14.!%

Total revenues Cs m 2;'-";1 !;6- "" !6". %

8ross profit Cs m 2 6-'"2 ! 2-; 2 2 !.'%

epreciation Cs m '1-2" "4-62' !21.2%

&nterest Cs m !"2-" 66-"26 ! .;%

7rofit before ta# Cs m 6 -'24 "1-! ' !;1.2%

)inority &nterest Cs m !;

7rior 7eriod &tems Cs m

3#traordinary &nc (3#p+ Cs m

Ta# Cs m 2 -;'2 !"-'!" !;".!%

7rofit after ta# Cs m " -426 2'-41! !6 ."%

8ross profit margin % ". 11.! ! 6.6%

3ffective ta# rate % "'. ";.! 6.1%

=et profit margin % !1.! 2!." 1'. %

-ALANCE SHEETDATA

urrent assets Cs m !- !!-! !- '"-'"! !1".2%

urrent liabilities Cs m

=et wor*ing cap to sales % 16 .' 1 6.; 4. %

urrent ratio # '". '". ! . %



&nventory Turnover ays

ebtors Turnover ays

=et fi#ed assets Cs m 2;-"!' !2-"6 2 '.1%

Share capital Cs m "-!;" '- ;2 44.1%

K$reeK reserves Cs m ! '- 64 !"!-'1! 4 .1%

=et worth Cs m !14- 24 !; -1 ! !!4. %

5ong term debt Cs m ! 4- 2 !4!-6 6 62.1%

Total assets Cs m "- ";-6 ' !-1 ;-164 !61.!%

&nterest coverage # !.; !.6 2.'%

ebt to e>uity ratio # .6 !.! ;".4%

Sales to assets ratio # .! .! !!2.'%

Ceturn on assets % ;.4 ;. !!2."%

Ceturn on e>uity % 2!.2 !;.; !"4. %

Ceturn on capital % 6;." "!.; 2 4.!%

3#ports to sales % . .

&mports to sales % . .

=et f# Cs m

/

PROJECT REPORT

on



The 7roject is concerned with the Q FINANCIAL 2OSSITION OF -OTH CO4S .

uring my tenure of research - & studied the various development tools and

deeply analy?ed the functions.

7rior to ma*ing reference to wor*ing of the project prepared - the analysis and

feasibility and all other aspect were ta*en into consideration . The research

shows the financial position of company .

DECLARATION

&- 7riyan*a here by declare that 7roject report COM2ARATI3E FINANCIAL

STUDY OF UNITED INDIA INSURANCE CO4 SHRIRAM INSURANCE CO4

assigned to me for the re>uirement of the degree of . om. with an*ing D&nsurance for Huru*shetra University- is the original wor* D done by my

personally and the information provided in the study is authenticated to the

best of my *nowledge .



The study has not been submitted to any other institution of Univ. for

the award of any other degree . &f this statement is wrong & shall be personally

liable the conse>uences .

7riyan*a

AC$NO5LED&EMENT

$irst D $oremost & would li*e to convey my sincere than*s to all

mighty 8od. and then )s. /nubha ( 5ect in ommerce + of

/G 8irls ollege F=C. She has been source of perpetual

inspiration to me. She gently guided D inspired me towards a bright career through my course . & was very fortunate to have

herself as my project guide . She is willing to give all *ind of

support D encourage me with her valuable suggestions .



& would li*e to than*s my sincere and special to r. ()s.+

Sushma /rya- principal of ollege- for her *ind cooperation and

great regards for )rs. :atinder Haur - ,9 in college who gave

me the practical *nowledge of all.

ate @ WWWWWWWW 2ri#an"a

7lace @ WWWWWWWW Coll =o. @2 !!!!4 4;Univ. Coll =o.. om. &&&

CONTENTS

&ntroduction

♦ ,istory of &nsurance

ompany 7rofile

&ntroduction to Topic

♦ =eed of the Study

♦ 9bjectives of the Study

Cesearch )ethodology

ata /nalysis and &nterpretation

$indings

onclusion

5imitations

Suggestions



ibliography

United India Insurance Shri Ram Financial Possition Final

Documents

Transcript of United India Insurance Shri Ram Financial Possition Final