02-10-2012, 12:09 PM
THE STUDY OF WORKING CAPITAL MANAGEMENT OF HDFC LIFE
WORKING CAPITAL.docx (Size: 1.06 MB / Downloads: 63)
GENERAL INTRODUCTION
All business organizations prepare financial statements after every financial year. The financial statements clearly indicate the financial position of the business concern. Published financial statements may be of considerable interest to shareholders, trade organizations, business analyst and many others. Each of these groups may be interest in different aspects of the business concern according to their own purposes.
The basis for financial planning, analysis and decision making is the financial information. Financial information is needed to predict, compare and evaluate the firm’s earning ability. It is also required to aid in economic decision making investment and financing decision making. The financial information of an enterprise is contained in the financial statements or accounting reports.
The financial analysis is the process of analyzing the financial strengths and weaknesses of the firm by properly establishing the 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 financial performance of an individual unit.
This report deals with the financial performance of HDFC Standard Life Insurance Company Ltd. for the financial year 2006 to 2010.
This report briefly explains the subject matter (financial statements analysis) of the study conducted. The basis for the financial planning, analysis and decision-making is the financial information. Financial information is needed to predict, compare and evaluate the firm’s earning ability. It is also required to aid in economic decision making investment and financing decision making. The financial information of an enterprise is contained in the financial statements or accounting reports.
The financial analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing relationship 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. This is therefore aimed at analyzing the performance, trend and the areas of strengths and weaknesses of the firm.
The objective of the study was to thoroughly analyze the company’s performance and the financial position over the years i.e., the direction and the trend in which the company is performing and the various and their uses.
The balance sheet and the income statement of the company provide some extremely useful information to the extent that the balance sheet mirrors the financial position on a given date in terms of the structure of assets, liabilities and owners equity etc. The comparison of the above statements is therefore an important aid in determining the company’s position and performance over a period of time.
About the HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Co. Ltd. was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and U.K. based Standard Life Company
HDFC Standard Life, one of India’s leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom.
HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.
HDFC Standard Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers.
HDFC Standard Live continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2,00,000 Financial Consultants.
HDFC Standard Life Insurance Company Profile
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has helped the company achieve the status it currently enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAV services for corporations; they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at whopping Rs. 2,856 chores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer
Why do I need Protection Plans?
Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of one’s family is one of the most important goals of life. Protection Plans go a long way in ensuring your family’s financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss.
For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amit’s real income would have been around Rs. 10,00,000/- per annum.
Why do I need Children’s Plans?
Children’s Plans helps you save so that you can fulfill your child’s dreams and aspirations. These plans go a long way in securing your child’s future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style.
Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime.
Today, a 2-year MBA course at a premiere management institute would cost you nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680/- to finance your child's MBA degree.