Funds Flow Ing Vysys Life Insuranc- Ankush

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PROJECT REPORT ON FUNDS FLOW STATEMENT ANALYSIS

AT

ING VYSYA LIFEINSURANCE.

By

Mr. J.ANKUSH

(H.T. 216011672039)

Project submitted in partial fulfillment for the award of the Degree ofMASTER OF BUSINESS ADMINISTRATION

St. PAULS COLLEGE OF MANAGEMENT AND IT

(Affiliated to OSMANIA UNIVERSITY)

HYDERABAD

2011-2013

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CERTIFICATE

This is to certify that this project report titled A study on FUNDS

FLOW STATEMENT ANALYSIS with respect to ING VYSYA LIFE

INSURANCE is bonafide work done by J.ANKUSH of IV Semester MBA,

under our guidance and submitted to the Department of Management Studies,

St. PAULS COLLEGE OF MANAGEMENT AND IT in partial fulfillmentfor the award of Master of Business Administration during the year 2011-

2013.

Signature of the Guide

N. SRIKANTH

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DECLARATION

I hereby declare that this project report titled FUNDS FLOW STATEMENT

ANALYSIS at ING VYSY LIFE INSURANCE, submitted by me to the

department of Business Administration, St. PAULS COLLEGE OF

MANAGEMENT AND IT, is a bonafide work under taken by me and it is

not submitted to any other university or institution for the award of any

degree diploma/certificate or published any time before.

Date:

Place: Hyderabad

(J.ANKUSH)

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ACKNOWLEDGEMENT

The highest happiness that accompanies the successful completion of any task

would be incomplete without the expression of gratitude to all those people who have

helped me throughout this project as success is the abstract of hard work.

I would like to express my heartfelt gratitude to Mr. CH. SRINIVAS (Manager

HR) for permitting me to do the project in Ing vysya Life insurance and also for his

inspiring guidance, support, valuable inputs and constructive criticism to develop andcomplete this project.

I express my heartfelt thanks to the HR Team and all the employees of the

organization for co-operation.

I am also thankful for the encouragement extended by Mrs. B. INDIRA REDDY

Principal, St. PAULS COLLEGE OF MANAGEMENT AND IT and

Mr. N.SRIKANTH, Guide for his constant support and co operation.

Last but not the least; I would like to thank my parents and friends for their

constant support and co-operation with out which I would have not completed this project

in the stipulated time.

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ABSTRACT

Funds flow analysis helps in judging the efficiency of financial functions and

administration of a business by providing a summary of the sources from which fundshave be procured and uses to which such funds have been put to.

A projected funds flow statement will help the analyst in finding out as to how the

management is going to allocate the scare financial resources for meeting productive

requirements of the business.

It is the responsibility of the organization to maintain a standard level of funds flowneither excess or deficit.

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TABLE OF CONTENTS

CONTENTS PAGE N.O:

CHAPTER 1: INTRODUCTION...7-14

CHAPTER 2: INDUSTRY PROFILE...15-22

CHAPTER 3: COMPANY PROFILE..23-33

CHAPTER4: REVIEW LITERATURE.34-44

CHAPTER 5: DATA ANALYSIS AND INTERPRETATION..45-54

CHAPTER 6: SUMMARY OF FINDINGS, SUGGESTIONS AND

CONCLUSIONS.55-58

CHAPTER 6: BIBLIOGRAPHY 59-60

CHAPTER 7: ANUXARE61-69

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CHAPTER 1

Topic Introduction

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A funds flow statement is a technical device designed to analyze, the changes

in the financial condition of a business enterprise between two years. It is also called as

a statement of sources and applications of funds . The funds flow statement is

Becoming popular with the management because it not only helps them in analyzing

financial operations, providing basis for comparison with budgets, and serving as a tool of

communication, but also explains the financial consequences of such operations such

as the reason why the company is experiencing difficulty in making payments to creditors

or why the bank balance is getting thinner.

There is a general recognition in industry and business and among professional

accounting bodies that financial statements should provide relevant information which

sub serves the multiple objectives of shareholders, investors, creditors, customers and

the public and which enable them to arrive at rational economic decisions. Normally

what the shareholders look for in these statements is an account of the stewardship of

the firm and the amount which may be expected as dividend. Potential investors look

upon funds flow statements as the source of there realistic view of the value of a

companys shares in terms of an expected futures stream of distribution and judge the

efficiency of the management accordingly.

Advantages of funds flow statement:

1. The funds flow statement acts as a supplementary statement to the traditional

financial statements, viz., balance sheet and profit & loss account.

2. It registers changes in the flow of funds during a given period of time.

3. It suggests the ways of improving working capital position.

4. It helps in planning for retirement long term debts.5. It helps in deciding about the mode of financing expansion or replacement facilities.

6. It helps in formulation of a realistic dividend policy.

.

Business transactions and flow of funds

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It may be noted at this stage of analysis that for the purpose of funds flow

statement, the items of balance sheet are classified into two broad categories viz., Items of

current accounts and Items of non-current accounts.

Current account Items

Current assets Current liabilities

Cash in hand Bills payable

Cash at bank (including fixed deposits) Trade or sundry creditors

Bills receivable Outstanding expenses

Trade or sundry debtors Cash credit/bank overdraft

Inventory-Raw-materials, work in-

progress, Finished Goods, Stores,etc

Short-term loans

Prepaid expenses Income received in advance

Outstanding incomes Long-term loans (or part) which fall due for

repayment within a year

Short-term loans and advances

Temporary investments, etc

Provision for doubtful debts and discount

on debtors

Non-current Account Items

The word fund is to denote working capital. Funds flow there fore refers to the

changes in the fund (i.e., working capital) by the transactions operational, financial and

investment, though the effect of all the transactions on the funds are considered, it should

be remembered here that not all the transactions cause the flow of funds .

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Non-current assets Non-current liabilities

Land and Buildings Equity share capital

Plant and Machinery and vehicles Preference share capital

Furniture and fittings Debentures

Goodwill Reserves and surplus

Patents, trade marks, copy rights,

preliminary expenses and profit and loss

account(deficiency),etc

Long term loans


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The transactions which do not affect the flow of funds:-

1) Transactions affecting the items of only Current assets.

2) Transactions involving the items of only Current liabilities.

3) Transactions involving the items of only Current assets on the one hand , and

the Current liabilities on the other (Current assets Vs Current liabilities),and

4) Transactions affecting only the Non-Current items.

The transactions which affect the flow of funds:-

1) Transactions affecting the items of Current assets and fixed assets.

2) Transactions affecting the items of Current assets and capital and long-term

liabilities.

3) Transactions affecting the items of Current liabilities and fixed assets.

4) Transactions affecting the items of Current liabilities and capital and long-term

liabilities.

These are the different transactions which affect and do not affect the flow of

funds .It is there fore necessary to analyze the different transactions to find out

whether they cause any changes in the fund or not.

OBJECTIVES

1. To study the financial statements of The ING VYSYA for the 4 years.

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2. To analyze how The Financial Services is utilizing its resources.

3. To analyze the changes in assets and liabilities from the end of one period of the

time to the end of another period of time

4. To find out the sources from which additional funds were derived and the use to

which their sources were put.

SCOPE OF THE STUDY

The present study focuses as sources funds and application of funds for aperiod of time. The study is confirmed to find out the changes in the financial

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position of The Ing Vysya Life Insurance Limited between the beginning and

ending financial Year.

It is a technical device designed to analyze the changes in the financial condition of

the business enterprises between two dates.

This funds flow statement is a statement which indicates various means by which

the funds have been obtained during a certain period and the ways to which these funds

have been used during the period.

The term funds used here means working capital that is the excess of current assets

over current liabilities. It is an essential tool for the financial analysts and is of primary

importance to the financial management.

Now a days it is being widely used by the financial analyst credit granting

institutions and financial managers. The basic purpose of the funds flow statement is to

reveal the changes in the working capital on the two balance sheet dates. It helps in the

analysis of financial operations. It helps in the formation of realistic dividend policy. It

helps in the proper allocation of resources. It helps in appraising the use of working capital

and finally it acts as future guide.

LIMITATIONS

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1. It should remember that a funds flow statement is not a substitute of an income

statement or a balance sheet. It provides only some additional information as

regards changes in working capital

2. The study based on the available annual reports and internal information of

Ing vysya Life Insurance.

3. It cannot reveal continuous changes.

RESEARCH METHODOLOGY

Research

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Research is a process in which the researcher wishes to find out the end result for a

given problem and thus the solution helps in the future course of action. Redman and

Mory defines research as a systematized effort to gain new knowledge.

Research Design

A research design is the arrangement of conditions for collection and analysis of data

in a manner that aims to combine relevance to the research purpose with company in

procedure. In fact, the research design is the conceptual structure within which research is

conducted; it constitutes the blue print for the collection, measurement and analysis of

data.

Data sources

Primary Data:

First hand information was collected from the Associate Vice president,Department of Business Insurance of the Ing vysya.

Interaction with guide to understand the general & specific aspects regardingutilization of resources.

Secondary Data: Annual reports collected from the Ing vysya.

Data collection:

Sample size : Four years annual reports.Sample area : Ing Vysya Life Insurance, Hyderabad.

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CHAPTER -II

ING Vysya Life entered the private life insurance industry in India in September 2001,

and has established itself as a distinctive life insurance brand with an innovative, attractive and

customer-friendly portfolio ranging from protection, savings, retirement and investment plans;

which it sells through a unique tool - The Life Maker.

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ING Vysya Life is headquartered in Bangalore, and is a part of the ING group. The ING

group is a 150-year-old global financial institution of Dutch origin offering Isurance, insurance

and asset management to over 60 million private, corporate and institutional clients in 50

countries. We are the world's Largest Financial Services Group and the world's Largest Life

Insurance Provider.

ING Group has wide and deep experience in setting up companies in new markets, which

require substantial investments underlining ING's long-term commitment. In the last 20 years,

ING Group has established successful life insurance companies in 15 countries contributing to the

development of insurance services in these countries successfully.

HISTORY OF INSURANCE IN INDIAIn India, insurance has a deep-rooted history. It finds mention in the writings of Manu (

Manusmrithi), Yagnavalkya ( Dharmasastra ) and Kautilya (Arthasastra ). The writings talk in

terms of pooling of resources that could be re-distributed in times of calamities such as fire,

floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient

Indian history has preserved the earliest traces of insurance in the form of marine trade loans and

carriers contracts. Insurance in India has evolved over time heavily drawing from other countries,

England in particular.

In 1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the

Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870

saw the enactment of the British Insurance Act and in the last three decades of the nineteenth

century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance offices which did

good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London

Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in

India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate

life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government

to collect statistical information about both life and non-life business transacted in India by Indian

and foreign insurers including provident insurance societies. In 1938, with a view to protecting

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the interest of the Insurance public, the earlier legislation was consolidated and amended by the

Insurance Act, 1938 with comprehensive provisions for effective control over the activities of

insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there

were a large number of insurance companies and the level of competition was high. There were

also allegations of unfair trade practices. The Government of India, therefore, decided to

nationalize insurance business.

An Ordinance was issued on 19 th January, 1956 nationalising the Life Insurance sector and

Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian,

16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The

LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and

the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of

Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian

Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general

insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of

India. The General Insurance Council framed a code of conduct for ensuring fair conduct and

sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum

solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalizations) Act, general

insurance business was nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the

New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India

Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a

company in 1971 and it commence business on January 1sst 1973.

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This millennium has seen insurance come a full circle in a journey extending to nearly 200

years. The process ofre-opening of the sector had begun in the early 1990s and the last decade

and more has seen it been opened up substantially. In 1993, the Government set up a committee

under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations

for reforms in the insurance sector. The objective was to complement the reforms initiated in the

financial sector.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in

April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance

customer satisfaction through increased consumer choice and lower premiums, while ensuring the

financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the

power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000

onwards framed various regulations ranging from registration of companies for carrying on

insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a national re-

insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 14 general insurance companies including the ECGC and Agriculture

Insurance Corporation of India and 14 life insurance companies operating in the country.

India insurance is a flourishing industry, with several national and international players

competing and growing at rapid rates. Thanks to reforms and the easing of policy

regulations, the Indian insurance sector been allowed to flourish, and as Indians

become more familiar with different insurance products, this growth can only

increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the

Indian insurance industy.

India Insurance Policies at a Glance

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Indian insurance companies offer a comprehensive range of insurance plans, a range thatis growing as the economy matures and the wealth of the middle classes increases. Themost common types include: term life policies, endowment policies, joint life policies,whole life policies, loan cover term assurance policies, unit-linked insurance plans, groupinsurance policies, pension plans, and annuities. General insurance plans are also available

to cover motor insurance, home insurance, travel insurance and health insurance.

Due to the growing demand for insurance, more and more insurance companies are nowemerging in the Indian insurance sector. With the opening up of the economy, severalinternational leaders in the insurance sector are trying to venture into the India insuranceindustry.

India Insurance: History

The history of the Indian insurance sector dates back to 1818, when the Oriental LifeInsurance Company was formed in Kolkata. A new era began in the India insurancesector, with the passing of the Life Insurance Act of 1912.

The Indian Insurance Companies Act was passed in 1928. This act empowered thegovernment of India to gather necessary information about the life insurance and non-lifeinsurance organizations operating in the Indian financial markets.

The Triton Insurance Company Ltd formed in 1850 and was the first of its kind in thegeneral insurance sector in India. Established in 1907, Indian Mercantile Insurance

Limited was the first company to handle all forms of India insurance.

Indian Insurance: Sector Reform

The formation of the Malhotra Committee in 1993 initiated reforms in the Indianinsurance sector. The aim of the Malhotra Committee was to assess the functionality of theIndian insurance sector. This committee was also in charge of recommending the future

path of insurance in India.

The Malhotra Committee attempted to improve various aspects of the insurance sector,making them more appropriate and effective for the Indian market.

The recommendations of the committee put stress on offering operational autonomy to theinsurance service providers and also suggested forming an independent regulatory body.

The Insurance Regulatory and Development Authority Act of 1999 brought about severalcrucial policy changes in the insurance sector of India. It led to the formation of theInsurance Regulatory and Development Authority (IRDA) in 2000.

The goals of the IRDA are to safeguard the interests of insurance policyholders, as well asto initiate different policy measures to help sustain growth in the Indian insurance sector.

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The Authority has notified 27 Regulations on various issues which include Registration ofInsurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation ofInsurers to Rural and Social sector, Investment and Accounting Procedure, Protection of

policy holders' interest etc. Applications were invited by the Authority with effect from15th August, 2000 for issue of the Certificate of Registration to both life and non-life

insurers. The Authority has its Head Quarter at Hyderabad. Detailed information on IRDAis available at their web-site www.irdaindia.org

Protection of the interest of policy holders:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towardsachieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to

provide for: policy proposal documents in easily understandable language; claimsprocedure in both life and non-life; setting up of grievance redressal machinery;speedy settlement of claims; and policyholders' servicing. The Regulation also

provides for payment of interest by insurers for the delay in settlement of claim. The insurers are required to maintain solvency margins so that they are in a

position to meet their obligations towards policyholders with regard to payment ofclaims.

It is obligatory on the part of the insurance companies to disclose clearly the

benefits, terms and conditions under the policy. The advertisements issued by theinsurers should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head

office and at their other offices. The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the insurancecontract.

Insurance in India

AnOverviewoftheInsuranceIndustryinIndia

The history of the insurance industry in India dates back in 1818 when the first insurancecompany was formed.

(Oriental Insurance Company Limited). It has since undergone several reforms in the formof liberalization and nationalization.

In the ensuing discussion, we shall seek to explore the nature of the industry in general.

Regulation And Players In The Industry

This industry is regulated by the Insurance Regulatory & Development Authority (IRDA).It ensures that all policyholders interests are protected. IRDA has listed all stakeholders in

the industry including corporate agents, brokers, surveyors, insurance councils, state andlife insurers and one main reinsurer.

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These players in the market are the driving force towards achieving a record 3% of thegross domestic product in the economy in India. The brokers, for example, are assignedthe work of distributing the premiums mainly through direct sales. IRDA also offersguidelines with regard to investment in mutual funds, pension, general annuity funds andgroup schemes.

Services In The Industry

The services rendered by this industry are overshadowed by the industry's history ofliberalization and nationalization. Two main sectors exist. They are the public sector andthe private sector with the former dominating the market.

Individual company service provision includes such services as life insurance (endowmentassurance, money back and miscellaneous services) and general insurance/non lifeinsurance (includes marine insurance, motor insurance which is compulsory in thecountry, fire insurance etc.).

Future of The IndustryFrom as early as 1947 to 1972, this industry has gone through dynamic change. With theformation of the regulatory body, passing of the insurance act, and passing of variousreforms, this insurance in india has become competitive and continues to attract interestfrom foreign countries. However, the recent economic recession has greatly affected thisindustry.

Currently, there is a major credit crisis affecting the industry. A typical example is thecollapse of US based AIG Company that has had ripple effects on to Indias TATA-AIGGeneral Insurance Company. Bajaj Allianz, Prudential and ICICI companies have alreadyclosed some of their branches.

any players have proposed the merging of the various companies in the sector to be able tocaution themselves from the crunch. It is equally important to note that recession is notnew to Indias economy. The country has been able to come out of one once and it can doso even now.

Life Insurance Policies

Endowment Policy IndiaGroup Insurance PolicyJoint Life Policy

Loan Cover Term Assurance PolicyMoney Back PolicyPension Plan or AnnuitiesTerm Life PolicyUnit Linked Insurance PlanWhole Life Insurance Policy India

Life Insurance Companies

Bajaj AllianzHDFC Standard Life InsuranceICICI Prudential

Lic IndiaGeneral InsuranceHome Insurance

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Health InsuranceMotor InsuranceTravel Insurance

Mutual Funds of India

Bank of Baroda Mutual Fund IndiaBirla Sun Life Mutual Fund IndiaHDFC Mutual Fund IndiaHSBC Mutual Fund IndiaICICI Prudential Mutual FundsKotak Mahindra Mutual FundsLIC Mutual FundsReliance IndiaSBI Mutual Funds

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CHAPTER III

COMPANY PROFILE

ING Vysya Life Insurance is a part of the ING groups the worlds fourth largest financial

services company and also the worlds second largest life insurance provider. ING vysya life

insurance is here to provide with the innovative and well designed products that effectively meet

your life insurance needs. ING vysya life insurance stands 13th

in the fortune 500 list.

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ING Vysya life insurance company ltd entered the private life insurance industry in India in

September 2001. it has a dedicated and committed advisor sales force of over 21000 people,

working from 140 branches located in 74 major cities across the country and over 3000

employees. Its headquarter is situated at Bangalore.

The company portfolio offers products that later to every financial requirement at any life

stage. It brings to you over 150 years of experience and the heritage of a name trusted in 50

countries. More than 60 million customers around the world have entrusted it with over US$700

billion of their wealth.

ING vysya life CEO and managing director, Mr.Frank Koster, said that a study had found

that the life insurance business had a good potential in rural India because people had a strong

savings habit and a high level of awareness about life insurance. The bulk of the companys

business comes from the traditional distribution route of insurance agents. ING vysya life

insurance recorded an income of Rs 102 crore in 2008-09.

ING vysya life on Wednesday june 2007 enrolled Madras fertilizers as corporate agent to

use the latters infrastructure to penetrate the rural life insurance market in south India. The

company has over 6500 dealers and 100 field staff who deal with over one lakh farmers.

The company aims to make customers look at fire insurance afresh, not just as a tax saving

device as a means to add protection to life. The company portfolio offers products that later to

every financial requirement, at any life stage

Origin of ING Group:

On the other hand, ING group originated in 1990 from the merger between Nationale and

Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV.

Combining roots and ambitions, the newly formed company called Internationale Nederlanden

Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by

24


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changing the statutory name to ING Group N.V.

Profile:

ING has gained recognition for its integrated approach of Isurance, insurance and assetmanagement. Furthermore, the company differentiates itself from other financial service providers

by successfully establishing life insurance companies in countries with emerging economies, such

as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an

Internet and direct marketing concept with which ING is rapidly winning retail market share in

mature markets. Finally, ING distinguishes itself internationally as a provider of employee

benefits, i.e. arrangements of non wage benefits, such as pension plans for companies and their

employees.

Ing vysya Ltd. is a joint venture between Vysya Bank Ltd, a premier bank in the

Indian Private Sector and ING, a global financial powerhouse of Dutch origin. Ing vysya

was founded in October 2002.

Vysya Bank was founded in 1930 to extend a helping hand to those who were

deprived of Isurance services. Since then the Bank has made rapid strides and has carved a

distinct identity of being India's Premier Private Sector Bank. In 1985, the Bank became

the number one private sector bank in India.

ING group originated in 1990 from the merger between National - Nederland NV

the largest Dutch Insurance Company and NMB Post Bank Group NV. The newly formed

company called "International Nederland Group" came to be known as ING.

As on 31/12/04, Ing vysya had an asset base of 866 billion Euros and an operating

net profit of 5.97 billion Euros. The Bank has presence in 57 countries and has employee

strength of over 113000 people.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the

Bank made rapid strides to reach the coveted position of being the number one private

sector bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond

Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the

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performance of the bank Stupendous. The 75th anniversary, the Platinum Jubilee of the

bank was celebrated during 2005.

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HIS MILESTONES OF ING VYSYA:-

27

1930 Set up in Bangalore

1948 Scheduled Bank

1985 Largest Private Sector Bank

1987 The Vysya Bank Leasing Ltd. Commenced

1988 Pioneered the concept of Co branding of Credit Cards

1990 Promoted Vysya Bank Housing Finance Ltd.

1992 Deposits cross Rs.1000 cores

1993 Number of Branches crossed 300

1996Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion

Council for excellent performance in Export Promotion

1998

Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by

Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal -

June 1998)

2000State -of - the -art Date Centre at ITPL, Bangalore.

RBI clears setting up of ING Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.

2002

The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for

traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident

hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net Isurance

service.

2002 ING takes over the Management of the Bank from October 7th , 2002

2002 RBI clears the new name of the Bank as Ing vysya Ltd, vide their letter of 17.12.02

2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans

2004 Introduced Protected Home Loans - a housing loan product

2005 Introduced Solo - My Own Account for youth and Customer Service Line Phone Isurance Service

2006

Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow

Isurance The long journey of seventy five years has several milestones


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Retirement/Pension Plan ING New Best Years

Retirement/Pension Plan ING Immediate Annuity

Child Plan ING Aashirwad

Child Plan Creating Life Child Protection Plan

Child Plan Creating Life Money Back Plan

Term Plan ING Term Life

Term Plan ING Term Life Plus

Savings & Investment Plan ING Market Shield

Savings & Investment Plan ING Prospering Life

Savings & Investment Plan ING Prospering Life- Single Premium

Savings & Investment Plan ING Uttam Jeevan- Regular Premium

Savings & Investment Plan ING Uttam Jeevan- Single Premium

Savings & Investment Plan ING Powering Life

Savings & Investment Plan ING Platinum Life Plan

Savings & Investment Plan ING New Fulfilling Life Plan

Savings & Investment Plan Reassuring Life Endowment Plan

Savings & Investment Plan Safal Jeevan Endowment Plan

Savings & Investment Plan Safal Jeevan Money Back Plan

Savings & Investment Plan ING Creating Star Guranteed Future

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CHAPTER IV

Preparation of Funds Flow Statement

While preparing the Funds flow statement ,individual items of current assets

and current liabilities are not shown separately but there are consolidated in a

separate statement called Schedule of changes in Working capital and only the

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net change in the Working capital during an accounting year is taken to the funds

flow statement therefore, comprises of two parts,

1) Schedule of changes in Working capital

2) Statement of sources and Uses of funds

1) Schedule of changes in Working capital:-

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2) Statement of sources and uses of funds:-

31

PARTICULARS PREVIOUS

YEAR

CURRENT

YEAR

EFFECT ON WORKING

CAPITAL

INCREASE DECREASE

CURRENT ASSETS

Cash in hand

Cash at Bank

Bills receivable

Sundry Debtors

Temporary investments

Stocks/Inventories

Prepaid expenses

Accrued Incomes

Total Current Assets(a)

CURRENT LIABILITIES

Bills payable

Sundry creditors

Outstanding expenses

Bank overdraft

Short-term advance

Dividend payable

Proposed dividends*

Provision for taxation*

Total current liabilities(b)

Working Capital (a-b)

Net increase or decrease

in working capital


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Note:* Any one of these will find the place in the statement

+ Any one of these will find the place in the statement

Funds means working capital this working capital represents the difference

between current assets, current liabilities. All flows of funds pass through working

capital. This means that every transaction has an effect on the firms working capital

position.

1. An example illustrates this as follows:-

2. An increase in profits increases the cash balance and hence working capital,

3. An increase in long term liability or any decrease in fixed assets increase

the cash balance and hence working capital.

Therefore the Funds Flow Statement shows the movement of funds into or out of the

current asset account of the firm.

The movement of funds has two aspects:-

Sources of funds.

32

Sources Amount

Rs

Applications Amou

nt

Rs

Issue of shares and

Debentures

Long-term Loans

Sale of investment, Fixed

assets, etc

Non-trading Income

Decrease in working capital

Redemption of preference

shares and debentures

Repayment of loan

Purchase of Investment,

Fixed assets, etc

Non-Trading Expenses

Increase in working capital+


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Uses of funds.

The former supply funds to the working capital and enhances its position. On the

other hand, the latter consume funds and erode the working capital position.

Sources of funds:

Sale of fixed assets:-

The sale value of fixed assets including if any is one of the Sources of funds. If

such profits have been included in the sale value, they are not included in the profit

figures. The reason being that this would led to double counting.

Sale of shares:

The full amount collected form the issue of shares is treated as source of

funds. This means that the amount of premium discount if any is taken into account

for this purpose.

Long tem Borrowings:

Loans raised including any premium or net of discount are considered as

source of funds. However loans in form of supplies or services of a non current nature

do not constitute source of funds.

Funds from operations:

The most important sources of funds is profit from its operations. Profit

from operations means the net profit after taxes plus the non cash expenses.

USESOFFUNDS

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Purchase of fixed assets:

Acquisition of fixed assets causes an outflow of funds from the working

capital pool. While beginning this effect to the funds flow statement, double counting

must be avoided.

Repayment of capital:

A company redeems the redeemable preference shares. Moreover equity

shares can also be paid back as per the procedures laid down in the Indian companies

Act, 1956.

Make up of shares:

If the firm is operating at a loss, an outflow of funds will be there to the

extent of net loss minus the non cash expenses like depreciation .Acquisition of

investments and payment of dividend:

The outflow of funds takes place on account of acquisition of long term

investments and the payment of cash dividend.

Limitations of Funds flow statement:-

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1. The following are some of the limitations of Funds flow statement. These

limitations are to be kept in mind while drawing any conclusion about the

operating results and financial soundness on the basis of Funds flow statement.2. Funds flow statement. Is being criticized as the one which re-arranges the financial

data extracted from the financial statements;

3. The Funds flow statement. Is also being criticized as not furnishing anything new

and/or original over and above the conventional Financial statements

4. Funds flow statement. is also based on the historical data as it bases its preparation

on the conventional financial statements; and

5. Some of the transactions affecting only the non-current items are, sometimes, not

considered while preparing The Funds flow statement.

INSURANCE:

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A contract (policy) in which an individual or entity receives financial protection or

reimbursement against losses from an insurance company. The company pools clients' risks to

make payments more affordable for the insured.

The act, system, or business of insuring property, life, one's person, etc., against loss or

harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in

consideration of a payment proportionate to the risk involved.

KEYMAN INSURANCE:

Keyman insurance is an important form of business insurance. There is no legal definition

for Keyman Insurance. In general, it can be described as an insurance policy taken out by a

business to compensate that business for financial losses that would arise from the death or

extended incapacity of the member of the business specified on the policy. The policys term does

not extend beyond the period of the key persons usefulness to the business. The aim is to

compensate the business for losses and facilitate business continuity. Keyman Insurance does not

indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on

the insurance policy.

EXAMPLE:

A simple example will make meaning of insurance easy to understand. A biker is always

subjected to the risk of head injury. But it is not certain that the accident causing him the head

injury would definitely occur. Still people riding bikes cover their heads with a helmet. This

helmet in such cases act as insurance by protecting him/her from the contingent accident and the

ultimate danger.

Though loss of life or injuries cannot be measured in financial terms, still in this

materialistic world it is quantifiable which tries to compensate the potential future loss financially.

Meaning of Insurance can be defined as the process of reimbursing or protecting a person from

contingent risk of losses through financial means.

PRINCIPLES OF INSURANCE:

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The vast majority of insurance policies are provided for individual members of very large

classes. Automobile insurance, for example, covered about 175 million automobiles in the United

States in 2004. The existence of a large number of homogeneous exposure units allows insurers to

benefit from the so-called law of large numbers which in effect states that as the number of

exposure units increases, the actual results are increasingly likely to become close to expected

results.

There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or

health of actors, actresses and sports figures. Satellite Launch insurance covers events that are

infrequent. Large commercial property policies may insure exceptional properties for which there

are no homogeneous exposure units. Despite failing on this criterion, many exposures like these

are generally considered to be insurable.

Definite Loss:

The event that gives rise to the loss that is subject to insurance should, at least in

principle, take place at a known time, in a known place, and from a known cause. The classic

example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker

injuries may all easily meet this criterion. Other types of losses may only be definite in theory.

Occupational disease, for instance, may involve prolonged exposure to injurious conditions where

no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should

be clear enough that a reasonable person, with sufficient information, could objectively verify all

three elements.

Accidental Loss:

The event that constitutes the trigger of a claim should be fortuitous, or at least outside the

control of the beneficiary of the insurance. The loss should be pure, in the sense that it results

from an event for which there is only the opportunity for cost. Events that contain speculative

elements, such as ordinary business risks, are generally not considered insurable.

Large Loss:

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The size of the loss must be meaningful from the perspective of the insured. Insurance

premiums need to cover both the expected cost of losses, plus the cost of issuing and

administering the policy, adjusting losses, and supplying the capital needed to reasonably assure

that the insurer will be able to pay claims. For small losses these latter costs may be several times

the size of the expected cost of losses. There is little point in paying such costs unless the

protection offered has real value to a buyer.

Affordable Premium:

If the likelihood of an insured event is so high, or the cost of the event so large, that the

resulting premium is large relative to the amount of protection offered, it is not likely that anyone

will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in

financial accounting standards, the premium cannot be so large that there is not a reasonable

chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may

have the form of insurance, but not the substance.

Calculable Loss:

There are two elements that must be at least estimable, if not formally calculable: the

probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise,

while cost has more to do with the ability of a reasonable person in possession of a copy of the

insurance policy and a proof of loss associated with a claim presented under that policy to make a

reasonably definite and objective evaluation of the amount of the loss recoverable as a result of

the claim.

Limited risk of catastrophically large losses:

The essential risk is often aggregation. If the same event can cause losses to numerous

policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained,

not by factors surrounding the individual characteristics of a given policyholder, but by the factors

surrounding the sum of all policyholders so exposed.

Typically, insurers prefer to limit their exposure to a loss from a single event to some

small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or

an individual policy could produce exceptionally large claims, the capital constraint will restrict

an insurers appetite for additional policyholders.

38


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39


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CHAPTER V

Statement of changes in Working Capital for the yearEnded 2008-2009:

(Rs)

40


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Particulars 2008 2009 Increase Decrease

A. Current assets:

Cash in hand

Balance with Banks

Balance with Banks

- Escrow Account

Telephone Deposits

K.S.T.Security Deposits

Receivables

Differed tax

Loans & Advances

Total Current Assets (A)

B. Current Liabilities

Contingency deposits

Staff Security deposits

Unclaimed deposits

Other liabilities

Statutory & Tax Audit fee

Provision for taxation

Total Current Liabilities(B)

(A-B) Working capital

Decrease in working capital

1957

8349222

4677

8000

1000

8934220

----

4789525

22088601

900681

5000

110505

1792319

17000

1858000

4683505

17405096

17405096

4991

4687197

1677

8000

1000

16644241

305814

11341596

32994516

900681

5000

110505

21490190

25000

4700000

27231376

5763140

11641956

17405096

3034

-

-

7710021

305814

655207

-

-

-

11641956

26212896

3662025

3000

-

-

-

-

-

19697871

8000

2842000

26212896

Interpretation:-Comparing the year 2008-2009 Current liabilities increased

22547871 rupees compare current assets increase 10905916 rupees only As a result The

Working capital decrease 11641956 rupees.

Funds Flow Statement for the year ended with 31.12.2008

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Interpretation: - The statement highlights the financing and investing activities of

The Financial Services Limited. The Financial Services Limited decreases miscellaneous

expenditure reserve by 69314928 rupees so that t The Financial Services take huge

amount of funds from that. In addition to this it takes some funds from operating

activities.

The Financial Services Limited redeems shares by Rs 66338250 with the

funds of decrease of miscellaneous expenditure reserve. In addition to this The Financial

Services Ltd use funds to purchase fixed assets and investment.


(Rs)


42

Sources Amount

Rs

Uses Amount

Rs

Funds from operations

Decrease in Miscellaneous

expenditure

Decrease in Working capital

7598848

69314928

11641956

Redemption of shares

Purchase of fixed assets

Additional Investments

66338250

361747

21855735

88555732 88555732


43/68

A. Current assets:

Cash in hand

Balance with Banks

Balance with Banks

- Escrow Account

Telephone Deposits

K.S.T.Security Deposits

Receivables

Differed tax

Loans & Advances




Staff Security deposits

Unclaimed deposits

Other liabilities

Statutory Audit fee




Increase in working capital

4991

4687197

1677

8000

1000

16644241

305814

11341596

32994516

900681

5000

110505

21490190

20000

4700000

27231376

5763140

41405267

47168407

4345

5351063

---

8000

1000

51570132

90935

18278123

75303598

900681

---

---

14190579

28810

13015121

28135191

47168407

47168407

---

663866

---

---

34925891

6936527

---

5000

110505

7304611

646

1677

---

---

214879

-

-

8810

8315121

41405267

Interpretation: - Comparing the year 2009-2010 the current assets increased by

42309082 rupees compare the current liabilities 903815 only as a result working capital

increase 41405267 rupees. There fore short term financial position of The Financial

Services limited is good.

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44


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Interpretation: - The statement highlights the financing and investing activities of

The Financial Services Limited. Funds from operations are the main source of The

Financial Services Limited with the amount of 23307434 rupees and it also takes

funds through sale of investment.

The Financial Services Limited uses the funds to purchase fixed assets to improve its

operations.


(Rs)

45

Sources Amount

Rs

Uses Amount

Rs


Sale of investment

23307434

21579416


Increase in working Capital

3481583

41405267

44886850 44886850


46/68


A. Current assets:

Cash in hand

Balance with Banks

Deposits

Receivables

Loans & Advances




Salary payable

Other liabilities

Statutory Audit fee


Provision for fringe benefit

tax

Provision for gratuity

Proposed dividend

Dividend tax




4345

5351063

9000

51570132

18278123

75212663

900681

---

1419057928810

13015121

---------------

28135191

47077472304862

47442334

6611

21588270

106000

34771822

11566605

17239308

---

25267604

78277021

---

1775997

177290

308514

16584563

2325985

124656974

4738234

47442334

2266

16237207

97000

97288482

900681

28810

11239124

125793570

16798310

25267604

64086442

117290

308514

16584563

2325985

304862

12593570


96826645 rupees compare the current liabilities 96521783 as a result working capital

increase 304862 rupees. There fore short term financial position of The Financial Services

limited is good.


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Interpretation: - The Financial Services Limited takes funds through funds from

operations only. The Financial Services Limited uses these funds to purchase fixed assets

and investment .In addition to this The Financial Services Limited increase deferred tax

asset also.

Statement of changes in Working Capital for the yearEnded 2011-2012: (Rs)


47

Sources Amount

Rs

Uses Amount

Rs

Funds from operations 5331212 Purchase of fixed assets

Additional Investments

Increase in Differed tax asset


1583198

341604

3101548

304862

5331212 5331212


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A. Current assets:

Cash in hand

Balance with Banks

Sundry debtors

Loans & Advances



Salary payable

Other liabilities

Provisions




6611

21694270

34771822

115566605172039308

2526760478277021

21112349124656974

47382334

19307854

66690188

3204

50464281

17092699

87752825

155313009

17045048

59489793

12087980

88622821

66690188

66690188

28770011

8222556

18787228

9024369

64804164

3407

17679123

27813780

19307854

64804164


16726299 rupees, the current liabilities decrease 36034153 rupees as a result working

capital increase 19307854 rupees. There fore short term financial position of The

Financial Services limited is good.


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Interpretation: - The Financial Services limited take huge amount of funds through

funds from operations and sale of investment. The Financial Services limited use some of

these funds to purchase fixed assets. The Financial Services limited is also using these

funds to increase working capital.

49

Sources Amount

Rs

Uses Amount

Rs


Sale of Investment

Decrease of deferred tax asset

9372429

8210173

2144549



419297

19307854

19727151 19727151


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Summary of Findings, Suggestions and conclusion

Findings

It is found that The Financial Services limited is holding sufficient share capital.

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It is inferred that The Financial Services limited is maintaining a minimum Cash

Balances.

It is interpreted The Financial Services limited is utilizing funds more in purchase

of fixed assets.

In 2008-2009 the Working capital of The Financial Services limited is decreased

by 11641956 rupees. In the same period the flow of funds of The Financial

Services limited is high because the company get huge amount of funds from

operations and also from decrease in miscellaneous expenditure reserve. The

Financial Services limited uses that fund to redeem the shares and to purchase

fixed assets.

In 2009-2010 the Working capital of The Financial Services limited is increased by

41405267 but the flow of funds is decreased because The Financial Services

limited do not get any funds from decrease of reserves, The Financial Services

limited get funds only from operations and sale of investment. The Financial

Services limited uses some of those funds to purchase fixed assets.

In 2010-2012 the Working capital of The Financial Services limited is increased

but the flow of funds is low as compared to previous year because The Financial

Services limited get funds only from operating activities. The Financial Services

limited use some funds to purchase fixed assets.

In 2011-2012the Working capital of The Financial Services limited is increased the

flow of funds is also increased highly because The Financial Services limited get

huge amount of funds from operations and sale of investment . The Financial

Services limited use those funds to purchase fixed assets.

Suggestions

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It may be suggested that The Financial Services limited should utilize LimitedFunds for the purchase of fixed assets. If The Financial Services limited spendmore money on purchase of fixed assets it effects the growth of the Ing Vysyafinancial services limited.

When the statement shows the decrease in working capital the bank require toraise short term funds to salvage its financial position.

Conclusion

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It can be concluded that funds flow performance of the financial services

limited is good because funds from operations are high in every year sources of funds. The

Financial services limited utilize some funds to purchase fixed assets every year the

financial services limited do some investment activities to utilize funds effectively.

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Chapter 5

BIBLIOGRAPHY

1. COST AND MANAGEMENT ACCOUNTING

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-M.E.Thukaram Rao.

2. MANAGEMENT ACCOUNTING

-J.Madegowda

3. MANAGEMENT ACCOUNTING

-I.M.Pandey

4. ADVANCED ACCOUNTANCY

-M.C.Shukla- T.S.Grewal

Revised By S.C.Guptha

Websites:

www.google.com

www.Ingvysyabank.com

55
http://www.google.com/http://www.ingvysyabank.com/http://www.google.com/http://www.ingvysyabank.com/


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ANUXARES

BALANCE SHEET AS AT 31ST MARCH, 2009

(Rs)

Particulars31-3-2009

31-3-2008

Sources of funds

Share holders funds

share capital

2211275

0

8845100

0Reserve & Surplus 1459954

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5 7000697

Total36712295

95451697

Application ofFunds

Fixed Assets

Gross block384405096

383928212

Less: Depreciation383823926

383708789

Net Block581170

219423

Investments30367925

8512250

Current Assets,

Loans Advances

a. Current assets 21652920 17299076

b.loans Advances11341596

4789525

(A)32994516

22088601

Less:

Current Liabilities,

Provisions

a. Current liabilities22506376 2808505

b.provisions4725000 1875000

(B)27231376 4683505

Net Current Assets(A-B)

5763140

17405096

MiscellaneousExpenditure

Profit &Loss Account-

69314928

Total36712295

95451697

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PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2009

(RS)

PARTICULARS31-3-2009

31-3-2008

INCOME

Lease Rentals 12060 2000379

Brokerage& commission6587230

5 17858193

Interest 128142 466419

Other Income1346587

8 79480867947838

5 28273077

EXPENDITURE

Finance 19216 2085529

Administrative4124404

4 3247016

Depreciation 157467 576364142072

7 5390181

Profit Before Tax3805765

8 22882896

Provision for Taxation 2536186 1858000

Profit After Tax3552147

2 21024896

Balance brought down fromprevious year

-6931492

8-

90339824Amount adjusted on capitalreduction

66338250 ----

Amount available for apparitions

3254479

4

-

69314928Apparitions

In termed Dividend2211275

0 ----

Corporate dividend tax 2833196 ----

General Reserve 3000000 ----Surplus/Deficit Carried to Balancesheet 4598848

-69314928

TOTAL3254479

4-

69314928

EPS-Basic(on Rs2.50 per share) 4.02 2.38

EPS-Diluted(on Rs2.50 per share) 4.02 2.38

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(Rs)

Particulars31-3-2010

31-3-2009

Sources of funds

Share holders funds

share capital22112750

22112750

Reserve & Surplus

3790697

9

1459954

5

Total60019729

36712295

Application ofFunds

Fixed Assets

Gross block388918200

384405096

Less: Depreciation384855447

383823926

Net Block 4062753581170

Investments 878856930367925

Current Assets,

Loans Advances

a. Current assets57025475

21652920

b.loans Advances18278123

11341596

(A)75303598

32994516

Less:

Current Liabilities,

Provisions

59


60/68

a. Current liabilities15091260

22506376

b.provisions13043931

4725000

(B)28135191

27231376

Net Current Assets(A-B)

47168407

5763140

Total60019729

36712295


(Rs)

60


61/68

61


31-3-2009

INCOME


Brokerage& commission

8915128

9

658723

05Interest 89686 128142

Other Income3408847

2134658

781243415

07794783

85

EXPENDITURE

Finance 529388 19216

Administrative7174381

4412440

44

Depreciation 1137174 157467

73410376

41420727


1380576

58

Provision for Taxation1137200

0253618

6


1355214

72

Balance brought down fromprevious year 4598848

-693149

28

Amount adjusted on capitalreduction 0 66338250

Amount available for apparitions4415797

9325447

94

Apparitions

Intermed Dividend1437328

8221127

50

Corporate dividend tax 1878409283319

6

General Reserve 2150000300000

0Surplus/Deficit Carried to Balance

sheet

2575628

2

459884

8

TOTAL4415797

9325447

94




62/68


(Rs)

Particulars31-3-

201131-3-

2010

Sources of funds

Share holders funds

share capital2211275

02211275

0

Reserves & Surplus4323819

13790697

9

Total6535094

16001972

9

62


63/68

Application of Funds

Fixed Assets

Gross block901177

6 3.89E+08Less:

Depreciation

330582

5 3.85E+08Net Block 5645951 4062753

Investments 9130173 8788569

Current Assets,

Loans Advancesa. Currentassets

56472703 57025475

b.loansAdvances

87752825 18278123

(A)1.72E+

08 75303598

Less:Current Liabilities,

Provisionsa. Currentliabilities

1.04E+08 15091260

b.provisions211123

49 13043931

(B)1.25E+

08 28135191

Net Current Assets(A-B)4738233

44716840

7

TOTAL

65350941

60019729


63


64/68

(Rs)


31-3-2010

INCOME



718915128

9

Interest 91562 89686

Other Income4937777

53408847

22390004

831243415

07

EXPENDITURE

Finance1127829

38 529388

Administrative

4898002

5

7174381

4Depreciation 2171506 1137174

163934469

73410376


45093113

1

Provision for taxation2561019

11137200

0


33955913

1Balance brought down fromprevious year

75212105 4598848


54415797

9

Apparitions

Intermed Dividend2211275

01437328

8

Corporate dividend tax 5427298 1878409

General Reserve 4945582 2150000Surplus/Deficit Carried to Balancesheet

26141912

25756282

TOTAL5374754

24415797

9



64


65/68


(Rs)

Particulars31-3-

201231-3-

2011

Sources of funds

Share holders funds

share capital 22112750

2211275

0

Reserves & Surplus 526106204323819

1

Total 747233706535094

1

Application of Funds

Fixed Assets

Gross block1268306

8 9011776

Less: Depreciation 6617820 3305825

Net Block 6065248 5645951

Deferred tax asset 1047934 3192483Investments 920000 9130173Current assets, loans andadvances

Sundry debtors1709269

93477182

2

Cash and Bank balances5046748

52170088

1

Loans and Advances8775282

51155666

05

(A)1553130

091720393

08Current liabilities andprovisions

Current liabilities7653484

11035446

25

Provisions1208798

02111234

9

(B)7782282

11346569

74

Net current assets(A-B) 666901884738233

4

Total 74723370

6535094

1

65


66/68


(Rs)

66


67/68

67


31-3-2011

INCOME


361895311

46

Other Income4205084

82390004

832691549

84

2390004

83EXPENDITURE

Personal costs9333336

61127829

38

Operating Expenses7994818

74898002

5

Depreciation 3251995 21715061765335

481639344

69


67506601

4

Provision for taxation3378604

52561019

1


14945582

3Profit brought down fromprevious year

26141912

25756282


37521210

5

Apparitions

Interim Dividend3316912

52211275

0

Final Dividend 9950738

1658456

3Corporate dividend tax 6343098 5427298

General Reserve 5883539 4945582

Amount Carried to Balance sheet2963080

32614191

2

TOTAL8497730

37521210

5

EPS-Basic and Diluted 6.65 5.59


68/68

Documents

Funds Flow Ing Vysys Life Insuranc- Ankush