INTRODUCTION

TO

INSURANCE SECTOR

INTRODUCTION

In the words of a layman, insurance means managing risk

MEANING OF INSURANCE

Insurance is a mechanism that helps to reduce the effects of adverse

situations in the economical way. It promises to pay to the owner or beneficiary

of the asset, a certain sum if the loss occurs.

Insurance is basically risk management device. The losses to assets

resulting form natural calamities like fire, flood, earthquake, accident etc. are

met out of the common pool contributed by large number of persons who are

exposed to similar risks. However the basic principle is that losses should occur

as a result of natural calamities or unexpected events which are beyond the

human control. Secondly insured person should not make any gains out of

insurance .

It is natural to think of insurance of physical assets such as motor car

insurance or fire insurance but often be forget that creator all these assets is the

human being whose effort have gone along way in building upto assets. The

individual also himself needs financial security for the old age or on his

becoming permanently disabled when his income will stop. Insurance also has

an element of saving in certain cases.

Insurance is a contract whereby, in return for the payment of premium

by the insured, the insurers pay the financial losses suffered by the insured as a

result of the occurrence of unforeseen events. The term "risk" is used to

describe the possibility of adverse results flowing from any occurrence or the

accidental happenings, which produce a monetary loss.

Functional definition

Insurance is a co-operative device to spread the loss caused by a

particular risk over a number of persons who are exposed to it and who agree to

insure themselves against the risk.

Contractual definition

Insurance has been defined to be that in which a sum of money as a premium is

paid in consideration of the insurer’s incurring the risk of paying a large sum

upon a given contingency.

Insurance is a social device which combines the risks of individuals into

a group, using funds contributed by members of the group to pay for losses.

- James L. Athear

History of insurance sector

The concept of insurance is believed to have emerged almost 4500 years

ago in the ancient land of Babylonia where traders used to bear risk of the

carvan by giving loans, which were later repaid with interest when the goods

arrived safely. The concept of insurance as we know today took shape in 1688

at a place called Lloyd’s Coffee House in London where risk bearers used to

meet to transact business. This coffee house became so popular that Lloyd’s

became the one of the first modern insurance companies by the end of the

eighteenth century.

Marine insurance companies came into existence by the end of the

eighteenth century. These companies were empowered to write fire and life

insurance as well as marine. The Great Fire of London in 1966 caused huge

loss of property and life. With a view to providing fire insurance facilities, Dr.

Nicholas Barbon set up in 1967 the first fire insurance company known as the

Fire office.

The early history of insurance in India can be traced back to the Vedas. The

Sanskrit term ‘Yogakshema’(meaning well being), the name of Life Insurance

Corporation of India’s corporate headquarters, is found in the Rig Veda. The

Aryans practiced some form of ‘community insurance’ around 1000 BC

Important milestones in the Indian life insurance business

1818-British introduced the life insurance to India with the establishment of the

Oriental Life Insurance Company in Calcutta

1850 - Non life insurance started with Triton Insurance Company

1870 - Bombay Mutual Life Assurance Society is the first India owned

life insurer

1912 - The Indian Life Assurance Companies Act came into force for

regulating the life insurance business. 

1928 - The Indian Insurance Companies Act was enacted for enabling the

government to collect statistical information on both life and non-life insurance

businesses.

1938 - The earlier legislation consolidated the Insurance Act with the aim of

safeguarding the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies were taken over

by the central government and they got nationalized. LIC was formed by an

Act of Parliament, viz. LIC Act, 1956. It started off with a capital of ` 5 crore

and that too from the Government of India.

The history of general insurance business in India can be traced back to Triton

Insurance Company Ltd. (the first general insurance company) which was

formed in the year 1850 in Kolkata by the British. 

Important milestones in the Indian general insurance business

1907- The Indian Mercantile Insurance Ltd. was set up which was the first

company of its type to transact all general insurance business.

1957- General Insurance Council, an arm of the Insurance Association of India,

framed a code of conduct for guaranteeing fair conduct and sound business

patterns.

 1968- The Insurance Act improved for regulating investments and set minimal

solvency levels and the Tariff Advisory Committee was set up.

1972-The General Insurance Business (Nationalization) Act, 1972 nationalized

the general insurance business in India. It was with effect from 1st January

1973.

1993-Malhotra committee was constituted under the chairmanship of former

RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms

1994- Malhotra committee recommended reentry of private players.

1997- IRDA (Insurance Regulatory and Development Authority) was set up as

a regulator of the insurance market in India.

2000- IRDA started giving license to private insurers. ICICI Prudential, HDFC

were first private players to sell insurance Policies.

2001- Royal Sundaram was the first non -life private player to sell an insurance

policy.

2002- Bank allowed to sell insurance plans as TPAs enter the scene, insurers

start setting non-life claims in the cashless mode.

107 insurers integrated and grouped into four companies viz. the National

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

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

was incorporated as a company.

Insurance companies in India

IRDA has till now provided registration to 12 private life insurance companies

and 9 general insurance companies. If the existing public sector insurance

companies are considered then there are presently 13 insurance companies in

the life side and 13 companies functioning in general insurance business.

General Insurance Corporation has been sanctioned as the "Indian reinsurer"

for underwriting only reinsurance business.

Top Ten Insurance Company

Below is a list of the Top 10 insurance companies in India and their contact

details zone wise.

Insurance Company Products and Services

LIC Life Insurance Corporation of India Insurance Policies

Jeevan Anurag

Unit Plans

Samridhi Plus

Pension Plus 

Special Plans

Jeevan Madhur 

Jeevan Mangal 

Group Schemes

ICICI Prudential Life Insurance Co Ltd Education insurance plans 

Smartkid New Unit-Linked Regular

Premium

Smart Kid Regular Premium

Savings (all ULIP)

Life Time Super

Premier Life Gold

Life Time Plus

Premium guarantee plans

InvestShield Cash Back

protection plans (All Traditional plans)

Life Guard

Save 'n' Protect

Home Assure

Health care plans

Crisis Cover

Diabetes Care/ Diabetes Care Plus

Cancer Care

Bajaj Allianz Life Insurance Co Ltd Insurance Policies

iGain III

Max Advantage

Health care plans Star Package 

Personal Guard

Silver Health

Travel Insurance

Student Elite Plan

Brilliant Minds

SBI Life Insurance Co Ltd Individual Plans

SBI Life - Unit Plus Super

SBI Life - Smart Wealth Assure

Group Plans 

Group Micro Insurance Plans

Group Loan Protection Products

Reliance Life Insurance Co Ltd Protection Plans

Reliance Life Insurance Money

Multiplier Plan

Reliance Special Term Plan

Child Plan

Reliance Child Plan

Savings & Investment Plans

Reliance Life Insurance Pay Five Plan

Reliance Life Insurance Classic Plan -

Limited Premium

Reliance Life Insurance Highest NAV

Advantage Plan

Reliance Life Insurance Money

Multiplier Plan

HDFC Standard Life Insurance Co Ltd Protection Plans

HDFC Premium Guarantee Plan

Savings and Investment Plans

HDFC SL ProGrowth Flexi

ClassicAssure Insurance Plan 

HDFC SL ProGrowth Maximiser

Birla Sun Life Insurance Co Ltd Health and Wellness Solutions

BSLI Saral Health Plan

BSLI Bachat Money

Retirement Solutions

BSLI Dream Life Plan

BSLI Immediate income Plan

Rural Solutions

Birla Sun Life Insurance Bima Dhan

Sanchay

Birla Sun Life Insurance Bima Kavach

Yojana

Max New York Life Insurance Co Ltd Life Plans

20 year Endowment 

Max New York Life Platinum Protect 

Life Gain™ Plus 25

Growth Plans

Max New York Life Flexi Fortune

Max New York Life Shubh Invest

Health Plans

LifeLine MediCash™ Plus

LifeLine Safety Net™

Kotak Mahindra Old Mutual Life

Insurance Ltd

Protection Plans

Kotak eternal Life Plans

Saving and Investment Plans

Kotak ace investment Plan

Kotak surakshit Jeevan

Child Plans

Kotak headstart Child Assure

Aviva Life Insurance Company India Ltd Protection Plans

Aviva LifeShield Platinum

Aviva LifeShield Advantage

Fund Management 

Rural Plans

Aviva Anmol Suraksha

Aviva Grameen Suraksha

Savings 

Aviva Dhan Vriddhi

Aviva LifeBond Advantage

1. INSURANCE INDUSTRY IN INDIA

1.1 INDIAN INSURANCE MARKET – HISTORY

Insurance has a long history in India. Life Insurance in its current form

was introduced in 1818 when Oriental Life Insurance Company began its

operations in India. General Insurance was however a comparatively late

entrant in 1850 when Triton Insurance company set up its base in Kolkata.

History of Insurance in India can be broadly bifurcated into three eras:

a) Pre Nationalization b) Nationalization and c) Post Nationalization.

Life Insurance was the first to be nationalized in 1956. Consolidating

the operations of various insurance companies formed Life Insurance

Corporation of India.

General Insurance followed suit and was nationalized in 1973. General

Insurance Corporation of India was set up as the controlling body with New

India, United India, National and Oriental as its subsidiaries. The process of

opening up the insurance sector was initiated against the background of

Economic Reform process , which commenced from 1991 . For this

purpose Malhotra Committee was formed during this year who submitted

their report in 1994 and Insurance Regulatory Development Act (IRDA)

was passed in 1999 . Resultantly Indian Insurance was opened for private

companies and Private Insurance Company effectively started operations

from 2001.

1.2 INSURANCE MARKET - PRESENT

The insurance sector was opened up for private participation four

years ago . For years now, the private players are active in the liberalized

environment . The insurance market has witnessed dynamic changes , which

include presence of a fairly large number of insurers both life , and non-life

segment . Most of the private insurance companies have formed joint venture

partnering well-recognized foreign players across the globe.

a) Characteristics of insurance

1. It is a contract for compensating losses

2. Premium is charged for insurance contract

3. Payment on happening of a special event

4. The amount of payment depends on the nature of losses incurred.

5. The success of insurance business depends on the large number of people

insured against similar risk.

6. The insurance is a plan in which the insured transfers his risk on the insurer.

7. The scope of insurance is much wider and extensive.

b) Functions of insurance:

Primary functions:

1. Provide protection:- Insurance cannot check the happening of the risk, but

can provide for the losses of risk.

2. Collective bearing of risk: - Insurance is a device to share the financial

losses of few among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk by

evaluating various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from

uncertainty to certainty.

Secondary functions:

1. Prevention of losses: - Insurance cautions businessman and individuals to

adopt suitable device to prevent unfortunate consequences of risk by observing

safety instructions.

2.Small capital to cover large risks: - Insurance relives the businessman from

security investment, by paying small amount of insurance against larger risks

and uncertainty.

3.Contributes towards development of larger industries.  

c)Why Is Insurance Needed ? or Advantages or Importance of insurance

Insurance plays a vital role in every aspect of life. It not only reduces the

risk but also help in investing the money. The following points justify the need

of insurance.

• Providing protection: Insurance provide protection. The protection can be

either protection for life or protection for property .

• Distribution of risk: Through insurance, the risk of one person can be

distributed among many people. The policy holder pays premium .

• Loan facility: Banks, financial institutions and even insurance companies

can easily extend the loan facility to policy holders .

• Encouragement to savings: Under the insurance contract, every policy

holder has to pay a premium on insurance policy . if premium is not paid ,

chances of penalty / cancellation of policy increases

• More employment: Insurance provide employment to many people.

Thousands of people work as marketing agents of insurance companies and

earn bread and butter for their families

• Helpful in economic development of the country: Insurance is helpful in

the economic development of the country. Insurance companies collects

huge amount in the form of premium.

• Rebate in income tax: Policy holder can avail the deduction of

premium while calculating his income chargeable to tax under the

income tax provisions.

d)Types of insurance

The earliest traces of insurance in the ancient world are found in the form of

marine trade loans or carriers, contracts, which included an element of

insurance. Evidence is on record that arrangements embodying the idea of

insurance were in Babylonia and India a quite an early period.

CLASSIFICATION ON THE BASIS OF NATURE OF INSURANCE

• Life insurance

• Fire insurance

• Marine insurance

• Social insurance

• Miscellaneous insurance

CLASSIFICATION OF INSURANCE FROM BUSINESS POINT OF VIEW

• Life insurance

• General insurance

CLASSIFICATION OF INSURANCE FROM RISK POINT OF VIEW

• Personal insurance

• Property insurance

• Liability insurance

• Fidelity Gurantee Insurance

CLASSIFICATION ON BASIS OF NATURE OF INSURANCE

1) Life insurance: It is a contract between an insurance policy holder and an

insurer, where the insurer promises to pay a designated beneficiary sum of

money (the "benefits") upon the death of the insured person.

2) Fire insurance: A fire insurance is a contract whereby the insurer, in

consideration of the premium paid, undertakes to make good any loss or

damage caused by fire during a specified period. Normally, the fire insurance

policy is for a period of one year after which it is to be renewed from time to

time. A claim for loss by fire must satisfy the following 2conditions:

> There must be actual loss; and

> Fire must be accidental and non-intentional.

3) Marine insurance: Marine insurance covers the loss or damage of ships,

cargo, terminals, and any transport or cargo by which property is transferred,

acquired, or held between the points of origin and final destination.

4) Social insurance: Social insurance has developed to provide economic

security to weaker sections of the society who are unable to pay the premium

for adequate insurance. Pension plans, disability benefits, unemployment

benefits, sickness insurance, and industrial insurance are the various forms of

social insurance.

5) Miscellaneous insurance: The process of fast development in the society

gave rise to a number of risks or hazards. To provide security against such

hazards, many other types of insurance also have been developed.

CLASSIFICATION FROM BUSINESS POINT OF VIEW

1) Life insurance

2) General insurance

1) Life insurance- Life insurance may be defined as a contract in which the

insurer, in consideration of a certain premium, either in a lump sum or by other

periodical payments, agrees to pay to the assured, or to the person for whose

benefit the policy is taken, the assured sum of money, on the happenings of a

specified event contingent on the human life are at the expiry of certain period.

2) General insurance- General insurance business refers to fire, marine and

miscellaneous insurance business whether carried on singly or in combination

with one or more of them.

CLASSIFICATION OF INSURANCE FROM RISK POINT OF VIEW

1) Personal insurance: Personal insurance refers the loss to life by accident, or

sickness to individual, which is covered by the policy. The insurer undertakes

to pay the sum insured on the happening of certain event or on maturity of the

period of insurance, and sickness or health insurance contains the element of

indemnity only

2) Property insurance- Property insurance provides protection against most

risks to property, such as fire, theft and some weather damage. The assured is

required to protect to the insured property.

3) Liability insurance- Liability insurance is the major field of general

insurance where by the insurer promises to pay the damage of property or to

compensate the losses to a third party. The amount of compensation is paid

directly to third party.

4) Fidelity guarantee insurance- In this type of insurance, the insurer

undertakes to indemnify the assured (employer) in consideration of certain

premium, for losses arising out of fraud, or embezzlement on the part of the

employees.

Life insurance products

BASIC ELEMENTS IN A LIFE INSURANCE PRODUCT

A life insurance product has, 2 basic elements

• risk cover- i.e benefit payable in the event of death

• saving- i.e. the benefit payable in the event of survival.

Life insurance plans, which provide only risk cover during a specified period

without any survival benefit, are called Term insurance plans. Life insurance

plans, which provide for payment of policy monies only on survival of the

period , are called pure endowment plans .

The holders of without profit policies are not entitled to share the profits of the

insurer. These policyholders get only the sum assured and no bonus is given to

them.

There are following types of plans available:

• Whole life insurance plans

• Endowment type plans

• Joint life policy plans

• Annuity plan ( Pension plans)

1. Whole life policy: These are low-cost insurance plans where the sum

assured is payable on the death of the insured

A typical whole life policy runs as long as the policyholder is alive. In other

words, the risk is covered for the entire life of the policyholder, which is why it

is known as whole life policies.

2.) Endowment policy: Under these plans, the sum assured is pay-able on the

maturity of the policy or in case of death of the insured individual before

maturity of the policy. Endowment policies cover the risk for a specified period

at the end of which the sum assured is paid back to the policyholder along with

the entire bonus accumulated during the term of the policy.

3.) Joint life policy: Joint life policies are similar to endowment policies in as

much as these policies also offer maturity benefits to the policyholders, apart

from covering the risks as all life insurance policies.

Under a joint life policy the sum assured is payable on the first death and again

on the death of the survivor during the term of the policy. Vested bonuses

would also be paid besides the sum assured after the death of the survivor. If

one or both the lives survive to the maturity date, the sum assured as well as the

vested bonuses are payable on the maturity date.

4.) Annuity (Pension plan): These plans provide for either immediate or

deferred pension for life. The pension payments are made till the death of the

annuitant (per-son who has a pension plan) unless the policy has provision of

guaranteed period.

An annuity is an investment that one make, either in a single lump sum or

through installments paid over a certain number of years, in return for which

one receive back a specific sum every year, every half-year or every month,

either for life or for a fixed number of years.

Private players in the Indian market :

COMPANY PROFILE

History of Max New York Life Insurance-

The company was founded in 1845 as the Nautilus Insurance Company in New

York City, with assets of just $17,000. It was renamed the New York Life

Insurance Company in 1849. Its first head quarters were at 112-114 Broadway;

the first president was James DePeyster Ogden. (Darwin P. Kingsley.) He

expanded the company’s operations and developed new types of insurance. As

with other early insurance companies in the U.S., in its early years the company

insured the lives of slaves for their owners. In response to bills passed in

California in 2001 and in Illinois in 2003, the company reported that Nautilus

sold 485 slave holder life insurance policies during a two-year period in the

1840s; they added that their trustees voted to end the sale of such policies 15

years before the Emancipation Proclamation.

INTRODUCTION OF MAX INDIA LTD.

It was founded in 1985; Max India Ltd is a Public limited company listed on

NSE and BSE of India with 30,000 shareholders. Max India Ltd is a multi-

business corporate entity driven by the spirit of enterprise with a focus on

people and service oriented business. Prominent shareholders of company are

Mr. Analjit Singh and a leading equity firm, Warburg Pincus. The balance

shareholding is held by the public and Institutional Investors. The company’s

vision is “to be one of the India’s” most admired corporates for Service

Excellence. It is driven by the spirit of Enterprise, focused on Knowledge,

People and the Service-oriented businesses of Life Insurance, Healthcare and

Clinical Research. Max India's other businesses are Specialty Plastic Products

for the packaging industry and Healthcare staffing.

Company profile of MAX NEW YORK LIFE :

New York Life Insurance Company (NYLIC) is the largest mutual life

insurance company in the United States, and one of the largest life insurers in

the world. New York Life has the highest possible financial strength ratings

from all four of the major credit rating agencies.

Founded in 1845 and headquartered in New York City, New York Life

maintains operations in all 50 states and eight overseas markets through a

network of 17,000 employees and 104,000 licensed agents. New York Life’s

family of companies offers life insurance, retirement income, investments and

long-term care insurance. New York Life Investments provides institutional

asset management and retirement plan services. Other New York Life affiliates

provide an array of securities products and services, as well as institutional and

retail mutual funds.

This focus on continuous quality training has resulted in the company having

amongst the highest agent pass rate in IRDA examinations and the agents have

the highest productivity among private life insurers.337 agent advisors have

qualified for the Million Dollar Round Table(MDRT) membership in 2007.

MDRT is an exclusive congregation of the world’s top selling insurance agents

and is internationally recognized as the standard of excellence in the life

insurance business. The company is using a five-pronged strategy to pursue

alternative channels of distribution. These include the franchisee model, rural

business, direct sales force involving group insurance and telemarketing

opportunities, bancassurance and corporate alliances. Max New York Life

offers a suite of flexible products

“Max New York Life wants people to view insurance as a financial

protection and wealth creation instrument and not just a tax-saving tool.”

Max New York Life Insurance Company Ltd. is a joint venture between New

York Life, a Fortune 100 company and Max India Limited, one of India's

leading multi-business corporations. The company has positioned itself on the

quality platform. In line with its vision to be the most admired life insurance

company in India, it has developed a strong corporate governance model based

on the core values of excellence, honesty, knowledge, caring, integrity and

team work. The strategy is to establish itself as a trusted life insurance

specialist through a quality approach to business.

New York Life is a Fortune 100 company that has over 160 years of

experience in the life insurance business. Max India Limited is a multi-

business corporate dealing in Clinical Research, IT and Telecom Services and

Specialty Plastic Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the

first life insurance company in India to be awarded the IS0

9001:2000certification. Max New York offers customized products tailored to

suit individual's needs. With its various Products and Riders, there are more

than 400 product combinations to choose from. Today, Max New York Life

Insurance has a network with 172 offices and representatives across 120 cities

in India.

In line with its values of financial responsibility, Max New York Life has

adopted prudent financial practices to ensure safety of policy holder’s funds.

The Company's paid up capital is Rs. 657 Crore, which is more than the norm

laid down by IRDA.

Max New York Life has identified individual agents as its primary channel of

distribution. The company has established additional channel with 22

bancassurance relationships, corporate tie-ups and a strong Direct Sales Team.

Max New York Life, one of India’s leading life insurance companies,

expanded its presence in the southern region by opening its first general office

in the city of Mysore. Max New York Life now has established a countrywide

network of 172 offices and representatives across 120 cities in India.

New York life is one of the largest and the strongest life insurance companies

in the world with more than USDS215 billion assets under management and

has received among the highest ratings for the financial strength from the life

insurance industry’s principal rating agencies: A.M. Best (AA+), Standard and

Poor’s (AA+), Moody’s (Aal), Fitch (AAA). According to Moody’s, “New

York life’s rating reflects the company good quality investment portfolio,

ample liquidity, and sound capitalization, as well as the good growth potential

of its international business.”.

Vision:

Vision statement is "Most Admired Life Insurance Company in India".

Mission:

1.Become one of the top quartile life insurance companies in India

2.Be a national player

3.Be the brand of first choice

4.Be the employer of choice

5.Become principal of choice for agents

Values

This vision to become India's most admired life insurance company will be

realized through our unique set of values, which are as follows:

1.Caring: Max Life Insurance is redefining the life insurance paradigm by

focusing on customers first. The service process is responsive, personalized,

humane and empathetic. Every individual who represents the company is for us

our brand champion.

2.Honesty: Honesty is the heart of the life insurance business. It is all about

trust. Transparency, integrity and dependability form the cornerstones of the

Max Life Insurance experience. The company ensures that everyone who

represents the brand carries a promise: we care - in word as well as deed.

3.Excellence: Excellence at Max Life Insurance implies the ability to perform

at a consistently high level. Focused on the value of continuous improvement

in people, processes and the organization, the company strives for the highest

standards of quality in every aspect of its business.

4.Knowledge: Knowledge leads to expertise; and our expertise is in helping

people protect themselves. Perfectly combining global expertise with local

knowledge, we are India's life insurance specialist. Max Life Insurance believes

that for knowledge to be of value it must be focused, current, tested and shared.

5.Integrity: Integrity is the cornerstone of any ethical deed. Adhering to the

professional code of conduct and adherence to processes and systems is of

utmost importance.

6.Teamwork:Teamwork implies the ability to share exchange and provide

information and support team members which is at the core of any successful

venture. Selflessly putting the team interest above personal agenda enables the

company to perform better in every aspect.

parent Company New York Life Insurance Company (NYLIC)

Category Life and Health Insurance

Sector Financial Institutions

Tagline/ Slogan The company you keep

USP

Max New York life insurance provides life insurance

solutions, children's plan and retirement solution

STP

Segment

Enterprise and Individuals who are seeking financial

help and advice

Target Group Large enteprises and rich individual investors

Positioning

A company that believes in building relationships with

customers

SWOT Analysis

Strength

1.Strong brand name and good financial position

2.Major life-insurance provider

3.Stable and growing revenue

Weakness

1.Direct access to equity-capital lacking

2.Lacking extensive global services

3.Limited global operations as compared to

competitors

Opportunity 1.Expansion in other countries

2.Diversifying portfolios for customers

3.Asset management sector

4.New emerging markets

Threats

1.Changing govt regulations and financial crisis like

recessions

2.Increase in insurance frauds

3.Stiff competition in the market

Competition

Competitors

1.AIG

2.AON

3.Allianz

4.AXA Group

5. Delphi Financial Group

6.MetLife

7.Allstate

Plans of Max New York Life Insurance

Protection Plans

• Five Yr Renewable & Convertible Plan

• Level Term Policy

Children Plans

• Children's Endowment to 18 (Par) Plan

• Children's Endowment to 24 (Par) Plan

• SMART Steps

• SMART Steps Plus

Investment Plans

• Life Maker Premium

• Life Maker Gold

• Life Maker Platinum

• Life Invest

Retirement Plans

• SMART Invest Pension

• Easy Life Retirement (Par) Plan

Health Plans

• Lifeline Medicash

• Lifeline Wellness Plus

• Lifeline Medicash Plus

• Lifeline Safety Net

Savings Plans

• Whole Life Participating

• Life Gain Plus 25 Participating Plan

• 20 year Endowment (Par) Plan

• Life Pay Money Back Plan

Strategic Products Plans

• Bancassurance 

1. Capital Builder Plan

• Partnership Distribution 

1. Max Mangal

2. Capital Builder

3. Max Vriksha

4. Max New York Life Unit Builder

• Max Amsure

1. Future Builder

2. Business Builder 

3. Bonus Builder

4. Secure Returns Builder

Group Plans

• Group Credit Life

• Unit Linked Group Superannuation Plan

• Group Gratuity cum Term Assurance

• Group Term Life

• Unit Linked Group Gratuity Plan

• Employee Deposit Linked Insurance

INTRODUCTION

TO

PROJECT

1. INTRODUCTION

Finance is the life blood of business. It is rightly termed as the science of

money. Finance is very essential for the smooth running of the business.

According to Wheeler, “Finance is that business activity which is concerned

with the organization and conversation of capital funds in meeting financial

needs and overall objectives of a business enterprise.”

Financial Management:

Management of funds is an important aspect of financial management.

Management of funds acts as the primary concern whether it may be in a

business undertaking or in an educational institution. Financial management,

which is simply meant dealing with management of money matters.

Meanings of Financial Management:

Financial Management mean efficient use of economic resources namely

capital funds. According to Phillippatus, "Financial management is concerned

with the managerial decisions that result in the acquisition and financing of

short term and long term credits for the firm". Here it deals with the situations

that require selection of specific assets, the selection of specific problem of size

and growth of an enterprise. Here the analysis deals with the expected inflows

and outflows of funds and their effect on managerial objectives. So the analysis

simply states two main aspects of financial management like procurement of

funds and an effective use of funds to achieve business objectives.

Objective of Financial Management:

Financial management of any business firm has to set goals for and interpret

them in relation to the objectives of the firm. Broadly there are only two

alternative goals/ objective of financial management.

1. Specific objectives:

a) Profit Maximization:

It is consider as an important goal in financial decision making in an

organization. Maximization is the condition achieving the maximum target

profit with available resources in an economic and efficient manner.

b) Wealth maximization:

It refers to the maximization of wealth by maximization in the market value of

shares of a company. The efficient of an organization maximizes present not

onlyfor shareholders but for includingemployees, customers, suppliers and com

munity at large. It is theultimate objective of every organization.

1. General objective:

a) Balance asset structure:

A proper balance between the fixed assets and current assets is an important

factor for efficient managements of funds. This is one of the objectives of

financial management that size of current asset must permit the company to

exploit the investment on fixed assets.

b) Liquidity:

Liquidity refers to available cash and it is an indication of positive growth of a

company. It is an important factor for meeting the short and long term

obligation of a firm.

c) Proper planning of funds:

Proper planning of funds include acquisition and allocation of funds in the best

possible manner that is minimum cost of acquisition of funds but maximum

returns through wise decision.

d) Efficiency:

Efficiency and effectiveness are very much necessary incontrolling flow of fun

ds. The efficiency level should continuouslyincrease for betterment of

statements etc.

e) Financial discipline:

There shouldn’t be any mishandling of funds, misuse etc. Proper discipline

should be practiced in matters relating to finance, its flow and control. This can

be done through various techniques like budgeting funds flow statement etc.

Traditional scope of financial management:

Traditionally financial management was used by corporate organizations

mainly for the purpose of finding the sources of funds and the methodologies

of raising them from such sources and utilizing them for the organizations. Its

emphasis was centred on the following three issues:

•To organize funds from different sources like banks, investment companies

and financial institutions.

•To use financial instruments in the form of shares, debentures, bonds, fixed

deposits for company’s requirements.

•To settle the organization of funds through proper administration, legal advice

and proper accounting records.

Modern Financial Management:

Modern Financial Management is a concept of overallmanagement of a compa

ny. Its scope is broadly divided into three important decisions which may

also be called the functions of financial management. These are investment

decisions, financing decisions and dividend decisions. It covers the areas of

sourcing of funds, financial analysis, attaining an optimum capital structure,

profit planning and control, project planning and evaluation and corporate

taxation. 

1. Investment Decision Making:

A firm is required to take decisions relating to acquisition of long term assets

and current assets. Capital investment proposals require heavy investment.

2. Financing Decisions:

A financial manager has to procure funds from different sources. He hasto

decide the quantum of funds and the type of source that he should usefor the

firm.

3. Dividend Decisions Making:

Dividend decision making pertains to an analysis of the right amount

of dividend to be distributed to shareholders. It has to take care of the

legalrestrictions and accounting processes before giving a dividend. 

4. Risk and Return:

High return brings about high risk but an organization has to consider several

factors before undertaking high risk because it can make loss

if decisions are not taken properly.

Financial analysis

The financial analysis process is identifying the financial strengths and

weakness of the firm by properly establishing relationships between the items

of the balance sheet and profit and loss account. It is the study of the

performance of the unit and therefore is aimed at the financial performance in

an individual unit.

The objective of financial analysis is the analyzing of strength and weakness of

a business undertaking by regrouping and analysis of figures obtained from a

financial statement and balance sheet by the tools and techniques of

management accounting. Financial analysis is regarded as the final step of

accounting that results in the presentation of final and the exact data that helps

the business managers, creditors and investors.

In the financial analysis a ratio is used as an index for evaluating the financial

position and performance of the firm. The absolute accounting figures reported

in the financial statement do not provide a meaningful understanding of the

performance and the financial position of a firm. But the accounting figures

convey the meaning when it is related to some other related information for

example Rs.5 Crores net profit may look impressive, but the firms performance

can said to be good or bad only when net profit figures is related to the firm’s

investment.

FINANCIAL STATEMENTS:

Financial statements contain summaries, information of the firm’s financial

affairs, organized systematically. They are the means to present the firm’s

financial situation to the users. Preparation of the financial statements is the

responsibility of top management. As these statements are used by investors,

and financial analysts have to examine the firm’s performance in order to make

investment decisions, they should be well prepared and should have sufficient

information.

The basic financial statements prepared for the purpose of external reporting to

owners, investors and creditors are

1. Balance sheet or statement of financial position, and

2. Profit and loss account or income statement

Tools for financial analysis:

Financial statements contain absolute figures of assets, liabilities , revenues,

expenses and profit or loss of an enterprise. They do not reveal the earning

capacity, liquidity and financial soundness of the enterprise. They are not

readily understandable to their users. Hence, they are analysed to present them

in simple and understandable form. Various tools or devices employed for

analysing the financial statements are as follows:

• Comparative statements

• Common size statements

• Trend analysis

• Accounting ratios

• Cash flow statements

• Fund flow statements

• Break-even point analysis

1.Common size statements:

The percentage balance sheet is often known as the common size balance sheet.

Such balance sheet are, in a broad sense ratio analysis general items in the

profit and loss accounts and in the balance sheet are expressed in analytical

percentages when expressed in the form, the balance sheet and profit and loss

account are referred to as a common size statement.

2.Trend percentage:

This analysis is an important tool of horizontal financial analysis. This method

is immensely helpful in making a comparative study of the fin

ancial statements of several years. Under this method trend percentages are calc

ulated for each item of the financial statements taking the figures of base year

as in the starting year is usually taken as the base year. The trend percentages

show the relationship of each item with preceding year’s percentages.

These percentages can also be presented in the form index. 

3.Fund flow analysis:

It is designed to show the changes in the assets, liabilities and capital of the

firm between the dates of two balance sheets. It indicates the causes of changes

in the working capital of an enterprise during the year.

4.Cash flow statement:

It shows the inflow and outflows of cash and cash equivalents during a

particular period and analysis the reasons for changes in balance of cash

between the two balance sheet dates.

5.Accounting ratios:

A ratio is simply one number expressed in relation to another and a study of the

relationships between various items or groups of items is known as ‘ratio

analysis’.

6. Break even point:

It is the point where total costs are exactly equal to the total sales. At this point,

there is neither any profit nor any loss. It can also be termed as ‘no profit no

loss’ point.

Comparative statements:

When financial statements figures for two or more years are placed side-by-

side to facilitate comparisons, these are called ‘comparative financial

statements’. In such a statements figures of production, sales, expenses, profits

etc. are put side-by-side to draw conclusions about the profitability and

financial health of the business. It also indicates the trend of change as well as

the strong and the weak points of the enterprise.

The financial statement Balance Sheet indicates the financial position as at the

end of an accounting period and the financial statement Income Statement

shows the operating and non-operating results for a period. But financial

managers and top management are also interested in knowing whether the

business is moving in a favourable or an unfavourable direction. For this

purpose, figures of current year have to be compared with those of the previous

years. In analyzing this way, comparative financial statements are prepared.

Comparative Financial Statement Analysis is also called as Horizontal analysis.

The Comparative Financial Statement provides information about two or more

years' figures as well as any increase or decrease from the previous year's

figure and it's percentage of increase or decrease.

Comparative statements are financial statements that cover a different time

frame, but are formatted in a manner that makes comparing line items from one

period to those of a different period an easy process. This quality means that

the comparative statement is a financial statement that lends itself well to the

process of comparative analysis. Many companies make use of standardized

formats in accounting functions that make the generation of a comparative

statement quick and easy.

Comparative statements can be prepared for both

• Income statement, as well as

• Position statement or balance sheet.

Comparative financial statement analysis:

Comparative financial statement analysis is an important tool

of horizontal analysis it is very effective in analyzing and interpretingfin

ancial statements.

Meaning of comparative financial statement analysis:

Comparative financial statement analysis is the study of the trend of the

same items, group of items and computed items in two or more financial

statement of the same business on different dates. In other words, it is an

analytical study of the different item in the financial statement of a

business under taking over a period of time.

Definition of comparative financial statement analysis:

In other words, Fouke, comparative financial statements of the financial

position of a business so planned as to provide time perspective to the

consideration of various element of financial position embodied in such

circumstances.

Features of comparative statements:-

1) A comparative statement adds meaning to the financial data.

2) It is used to effectively measure the conduct of the business activities.

3) Comparative statement analysis is used for intra firm analysis and inters firm

analysis.

4) A comparative statement analysis indicates change in amount as well as

change in percentage.

5) A positive change in amount and percentage indicates an increase and a

negative change in amount and percentage indicates a decrease.

6) If the value in the first year is zero then change in percentage cannot be

indicated. This is the limitation of comparative statement analysis. While

interpreting the results qualitative inferences need to be drawn.

7) It is a popular tool useful for analysis by the financial analysts.

8) A comparative statement analysis cannot be used to compare more than two

years financial data.

Contents of comparative financial statements:

Comparative financial statements generally contain the following data for the

purpose of analysis. 

• Absolute data in money values, as found in the financialstatements of

the current period and preceding period.

• Change in absolute data in money values in the current period.

• Changes in absolute data in terms of percentages.

• Comparisons of absolute data expressed in ratios

Objective of comparative financial statements:

The main Objective of comparative financial statements is.

• To indicate the magnitude and direction of changes in various

accounting figures.

• To ascertain the strength and weakness of business undertaking in terms

of liquid, solvency and profitability.

Advantages of comparative financial statements analysis:

Financial data become more meaningful when compared with similar data of a

previous period.

• An analyst will be able to draw useful conclusion easily where

figure of more periods are given side by side in a comparative

statements

• A comparative balance sheet is more useful in comparison to a single

year’s balance sheet, because it enables a financial analysts to study the

nature, size and direction of change, i.e., increase or decrease in various

items of balance sheet. As such, it may be used to study the trend in

business concern. .

• comparative financial statements are useful for meaningful

forecasting and planning of business activities.

• The comparative balance sheet is a connecting link between the

income statements and the balance sheet, because the income

statements presents the result of operating activities of business,

whereas the comparative balance sheet shows the effect of operating

activities on its assets, liabilities and capital.

The overall financial position of the company is satisfactory.

2008 % 2009 % 2010 %Equity share Capital

48.97 100% 44.41 90.68% 52.91 108.0%

Reserves 188.79 100% 2017.95 92.14 2818.74 128.78Secured Loans

101.03 100% 100.59 99.56 96.25 95.2

Net Block

154.14 100% 182.73 118.54% 324.91 210.78

Invert 2069.82 100% 1098.76 82% 2307.65 111.4Current Assets

112.36 100% 281.45 250% 335.22 298.34%

Interpretation:

The equity share capital of 2010 is better as compare to 2008 and 2009.

Reserves are maximum in 2010 i.e. 128.78% and lowest in 2009 i.e 92.14% .

the secured loans are higher in 2008 i..e 100% as compare to 2009 and 2010

i.e. 99.56 & 95.2 . The net block is improving year per year. And investment is

also increasing i.e. 111.4%. The current assets are also increasing as compare

to 2009-2008 i.e. 250% and 100%

COMMMON SIZE STATEMENTS

Common Size Statement involves representing the income statement

figures as a percentage of sales and representing the balance sheet figures as a

percentage of total assets. Financial statements represent absolute figures and a

comparison of absolute figures can be misleading. For example, the cost of

goods sold might have increased but as a percentage of sales it might have

decreased. So, to have a perfect understanding about these increases and

decreases, the figures reported are converted into percentages to some common

base. In Income Statement, Sales figure is assumed to be 100% and all other

figures are expressed as a percentage of sales. In Balance Sheet, the total of

assets is taken as 100% and all other figures are expressed as a percentage of

total assets. This type of Statement so prepared is called as the Common Size

Statement and the analysis performed on the Common Size Statement is called

as the Common Size Financial Statement Analysis or otherwise called as

Vertical Analysis.

The percentage balance sheet is often known as the common

size balance sheet. Such balance sheet are, in a broad sense ratio analysis

general items in the profit and loss accounts and in the balance sheet are

expressed in analytical percentages when expressed in the form, the balance

sheet and profit and loss account are referred to as a common size statement.

Common size statements are those in which individual figures are

converted into percentages to some common base. Percentage of each

individual item shows its relation to its respective total.

Common size statements comprise of the following items :

• Absolute figures of individual items of income statement and balance

sheet for two or more successive periods,

• Percentage to some common base. Normally, the figure of net sales is

taken as a base for the income statement items and the total of assets and

liabilities is taken as a base for the balance sheet items.

Comparative Statements are not useful to compare two or more business

firms of different size because there is no common base for their comparison.

Common Size Statements remove this drawback.

          Common Size Statements are of immense use while comparing business

enterprises which differ substantially in size as it provides an insight into the

structure of financial statements. Common Size Statements help in better

understanding of the important changes which have occurred in the enterprise

over a period of time.

          Common Size Statements are those in which individual figures are

converted into percentages to some common base. Percentage of each

individual item shows its relation to its respective total i.e. Total Assets or

Total Liabilities or Total Net Sales.

          Common Size Statement analysis is called as 'Vertical Analysis' since

each accounting variable is analysed vertically.

          Common Size Statements may be prepared for the Balance Sheets as

well as for the Income statements. Normally, Total Assets or Total Liabilities is

taken as a base for the Balance Sheet items and the figure of net sales is taken

as the base for the income statement items.

Advantages

• One advantage of having the various amounts expressed in percentage

is, the percentage assets of any company can be compared to another

company or to other companies in the industry.

• The size of the companies being compared, is not important. The

companies being compared may be small or big. Hence, it is termed as

common size. Since size of the company does not matter, it removes any

kind of bias, while comparing companies. Analyzing the operational

activities of comparing companies can also be obtained.

• Changes in different values pertaining to company's performance can

also be ascertained during a particular period. For example, if one

wishes to know how the cost of goods sold over a span of time has

changed, the common size financial statement can be helpful.

• A common size financial statement is used for predicting future trends

and analyzing prevailing trends in the industry.

Purpose of common size statements

• To present the change in various items in relation to net sales, total

assets or total liabilities: One of the major draw backs of comparative

financial statements is that they do not present the change in various

items in relation to net sales, total assets or total liabilities.

• To establish a relationship: Over a period, a relationship is established

between various items of the income statements to sale and various

items of balance sheet to total assets or total liabilities.

• To provide for a common base for comparison: Common size

statements provide for a common base for comparison. Financial

statements of different firms can be converted into uniform common

size format irrespective of the size of individual items.

• To analyse changes in individual items of balance sheet.

• To establish the trend in various items of assets and liabilities.

• To assess the financial strategy adopted by different enterprise s

belonging to the same industry.

Importance

1. Analysis of financial statement with the help of common size

statement is more useful. Because the financial statements of different

firms can be converted into uniform common size format irrespective of

the size of individual items.

2. Common Size Income Statement establishes relationship between

sales and other items of income statement and this relationship is helpful

in evaluating operational activities of a business firm.

3. Whereas, a Common Size Balance Sheet is very useful for comparing

the profitability and financial position of two or more business firms.

2008 % 2009 % 2010 %

Liabilities

Equity Share Capital

48.97 2.09% 44.41 2.05% 52.91 1.78%

Reserves 2188.79 93.6% 2017.95 93.02% 2818.74 9.57%

Secured Loan

101.03 4.32% 100.59 4.7% 96.52 3.4%

2336.3 100% 2162.95 100% 2967.9 100%

Assets

Net Block 154.14 6.59% 182.73 8.4% 324.91 10.94%

Investment 2069.82 86.52% 1698.76 78.5% 2307.65 77.77%

Current Assets

112.36 4.80% 281.45 13.13% 335.22 11.295

2336.3 100% 2162.95 100% 2967.78 100%

OBJECTIVE

OF

THE PROJECT

Title of the study:

‘Financial statement analysis’

A Study has been conducted in the area of “Financial statement analysis.” And

title of the study is:

“A report on Analysis of Financial Statement using a technique of comparative

& common size balance sheet, conducted at MAX LIFE INSURANCE.

Objective of study

Every research is carried out with some or the other objective. The main

mottos behind my research were:-

• To facilitate comparison of various items of income and expenditure for 3

years (2007-2010).

• To analyse increase or decrease in the income and expenditure in terms

of rupee and also in percentage from one year to another.

• To help in forecasting the profitability of the business concern.

• To establish the trends in various items of assets and liabilities.

• To analyse changes in individual items of balance sheet.

• To study the overall operating efficiency and performance of the

company.

• To find out the financial strengths and weaknesses of the company.

• To study the overall operating efficiency and performance of the

company

Scope of study

This study is about the comparative and common size statements of max

life insurance limited for the past three years.

It is the first financial tool developed to analyse and interpret the

financial statement and is still used widely for this purpose. Financial

performance analysis is a well researched area and innumerable studies

have been proved the utility and usefulness of this analytical technique.

• It is useful for the management.

• It gives information to the investors about the earning capacity of the

business.

• Current year's b/sheet is compared with those of previous years and if

some weak spots are thus located remedial measures are taken to correct

them.

• It gives information to the financial institution for providing the finance

to the company

• It gives information to the taxation authorities.

• The investors who are interested in investing in the company’s share’s

will also get benefit by going through the study and can easily take a

decision whether to invest in the companies shares.

RESEARCH

METHODOLOGY

Research in common parlance refers to search for knowledge. It can

also be defined as a scientific and systematic search for information on a

specific topic. According to OXFORD Dictionary:

“Research is a careful investigation or inquiry especially through search of

new facts”.

Research Methodology in a way is a written game plan for conducting

research. Research methodology may have dimensions. It includes research

methods and also considers the logic behind the methods used in the context of

the study. It may also be understood as the science of the study and minimizes

the degree of uncertainty of making wrong choices. It helps to understand

assumptions underlying various techniques and the criteria by which they can

decide that certain techniques will be applicable to certain problems and others

will not.

Therefore in order to solve a research problem it is necessary to design a

research methodology for the easy and accurate solution of the problem.

DATA COLLECTION:

Since the study is restricted only to financial statements of “MAX LIFE

INSURANCE”, there is no scope for the primary collection of data. The

data collection is done through Secondary data which is collected by

referring annual reports i.e. balance sheets, profit and loss account etc, of

MAX LIFE INSURANCE LIMITED.

SAMPLE SIZE & DATA COLLECTION

Data collection methods and instruments:

DATA COLLECTION:

The data can be of two types:

➢Primary Data:

Primary Sources are original sources from which the researcher directly

collects data that have not been previously collected. Primary data are first-

hand information collected through various methods such as observation,

etc. Here, the

Primary data is collected as follows:

• Discussions with other personnel such as advisors and trainers.

➢Secondary Data:

Secondary Data are those data which are already collected and stored and

which has been passed through statistical research. In this project,

secondary data has been collected from following sources:

• Annual Report

• Other material and report published by company

DATA ANALYSIS AND

INTERPRETATION

Table 1.1

Comparative Analysis of Equity Share Capital

2008 % 2009 % 2010 %Equity share Capital

48.97 100% 44.41 90.68% 52.91 108.0%

Table 1.2

Comparative Analysis of Reserves

2008 % 2009 % 2010 %

Reserves 188.79 100% 2017.95 92.14 2818.74 128.78

Table 1.3

Comparative Analysis of Secured Loans

2008 % 2009 % 2010 %Secured Loans

101.03 100% 100.59 99.56 96.25 95.2

Table 1.4

Comparative Analysis of Net Blockes

Net Block

154.14 100% 182.73 118.54% 324.91 210.78

Table 1.5

Comparative Analysis of Investment

Investment 2069.82 100% 1098.76 82% 2307.65 111.4

Table 1.6

Comparative Analysis of Current Assets

Current Assets

112.36 100% 281.45 250% 335.22 298.34%

CONCLUSION

Conclusion

We can say that there should be an efficient financial management system

in the organization. It should overcome the adverse

condition and minimize its losses and protect firm from facing the negative

condition of liquidity. In tomorrow’s economy the world will belong to

those who are open to creative, imaginative and flexible to changes, having

open mindless, strength of taking risk and an innovative spirit. These entire

characteristics can lead the company on a successful path.

Based on this study the major findings are that from the overall finance

point of view, company is not performing to a very high degree level of

achievement. This study indicates that in order to improve the

overall performance of company (‘MAX LIFE INSURANCE’) the

management must take all possible steps to review and modify various

policies, cash budgets, inventory status by

usingsound information management system. This will enable themanagem

ent to have a close control over the various operations.

Though this study may be of academic in nature it may serve a starting

point for the managerial action plan towards enhancing not only

the operational efficiently but also will prove a great help in

understanding and determining appropriate strategic plans to bring various

important comparative & common size analysis of financial statements

results to the level of industry standards.

FINDINGS

&

SUGGESTIONS

• There is a small increased of share capital i.e.9.6% only in 2010. Share

capital is increasing in all the year, while comparing all the year there is a

big jump of 58.7% in 2008. To make more strength of financial position of

the firm, they need to increase the shareholder funds.

• In 2007-2008 there was a sudden increase of 738.96% of reserve and

surplus. After 2008 there was no change in reserve and surplus. If the

company needs more reserve then they need to focus on ploughing back of

profit to retain maximum reserve and surplus.

• In 2009-2010 the policyholder investment is increasing in percentage while

compared to 2008 and 2009. It indicates good financial position.

• In 2009-2010 there is a decrease in percentage of provision which indicate

increased in working capital.

• The aggregate change amount of fixed assets for, 2008, 2009

&2010 are 595,746 i.e. 80.93%, 115,906 i.e. 8.7%and -303,929 i.e. -21%. I

n 2007-2008 there was an increase in percentage of fixed asset. At the end

of 2010 there is a huge decrease in the value of fixed assets as compared to

all the year.

• The aggregate change amount of policy liabilities for 2007, 2008,

2009& 2010 are 6,975,216 i.e. 40.1%, 4,725,672 i.e.19.4% and 8,574,489

i.e. 29.5%

Suggestion

• The company should utilize the available resources in proper

manner. So that it may help to increase its profit & improving sales.

• As a company is facing a stiff competition from competitors it has to

work hard to meet its targets. It needs to give more importance to

research and development & it will also help in making further

strategy better.

• It needs to update with its latest technology to match with its

competitors. And the company can invest fairly good amount in

fixed assets.

• The liquidity position in a base year is weak ; still the company

should take steps to improve the liquidity position.

• The overall analysis reveals that the company’s performance all the

year is good. But they are suffering from inadequate working

capital,so the steps have been taken to improve it for all the 3 years.

• It should improve the

LIMITATIONS

LIMITATIONS OF THE STUDY:

•This study is limited to “max life insurance limited”.

• Lacks of information of company.

• The information used is primarily from historical reports available to the 

public and the same doesn’t indicate the current situation of the firm.

• Detailed analysis could not be carried for the project work because of

limited time span.

• Since financial matters are sensitive in nature the same could not be

acquired easily.

BIBLIOGRAPHY

Referred books:

Analysis of financial statements

• D K Goel

Financial management

Shashi k. Gupta

IM pandey

Referred websites

Economic times

Max life insurance

Money control

Google search