Hd ffinancialanalysis kusum lata

FINANCIAL ANALYSIS
(OF HDFC LIFE)
A MAJOR PROJECT REPORT
Submitted In Partial Fulfillment of the Requirements for MBA Semester II
SWAMI VIVEKANAND SUBHARTI UNIVERSITY
SUBMITTED BY
(KUSUM LATA)
(COURSE – M.B.A – SEMESTER –II)
ROLL NO: A17641977
Subhartipuram, Nh-58, Delhi-Haridwar Bypass Road,
MEERUT, UTTAR PRADESH 250005

DECLARATION
I hereby declare that the major project report, entitled “FINANCIAL
ANALYSIS”, is based on my original study and has not been submitted earlier
for award of any degree or diploma to any institute or university.
The work of other authors(s), wherever used, has not been acknowledged at
appropriate place(s).
Place: Candidate signature
Date: Name:
Enrl.no:

PREFACE
Management of financial analysis plays a significant role in the organization as
the blood plays its role in the human body .It not only provides energy to the
business but simultaneously it is essential for the success of any business
organization management of working capital has close implication with the
two important factors that judge the overall success of the business profitability
and solvency. Now–a-days, the major problem faced by every business
organization is of finance because of drastic changes in the size and scale of
business and increased competition, which results in the increase in credit
business and shortage of financial brackets. In such an environment, the
working capital management has occupied one of the key position in the
business management.
In our study, our main objective is to reflect our attention on the position of
FINANCE MANAGEMENT in BAJAJ ALLIANZ. And discuss various
aspects of Finance analysis in the company.
The BAJAJ ALLIANZ is leading company in the field of FINANCE SECTOR.
Our study is grouped under chapters where we Discusses various aspects of the
FINANCE MANAGEMENT and effects thereof on ultimate performance of
the company.
It gives me great pleasure to acknowledge my in deftness to all those who have
helped me completing this project and bringing it out in its present form. I am
very grateful to my supervisor under whose kind supervision and able
guidance, this work has completed.

It gives me immense pleasure to present this project report on FINANCE
MANAGEMENT carried out at BAJAJ ALLIANZ In partial fulfillment of Post
graduation course IN M.B.A.
No work can be carried out without the help and guidance of various persons. I
am happy to take this opportunity to express my gratitude to those who have
been helpful to me in completing this project report.
I would be failing in my duty if I do not express my deep sense of gratitude to
MRS. RUCHI GUPTA without her guidance it wouldn’t have been possible
for me to complete this project work. BAJAJ ALLIANZ
Lastly I would like to thank my parents, friends and well wishers who
encouraged me to do this research work and all those who contributed directly
or indirectly in completing this project to whom I am obligated to.
M.B.A

04. FINANCE DEPARTMENT OF HDFC LIFE
05. A .Conclusion
B. RECOMMENDATION AND
SUGGESTION
06. ANNEXURE
07. BIBLOGRAPHY
CONTENTS
01. INTRODUCTION
 PURPOSE OF THE
STUDY
 AIM OF THE STUDY
 OBJECTIVE OF THE
STUDY
02. Organization Information
A .About HDFCSLIC
B .company profile
C. what is insurance?
D .scope of insurance
E .objective
F .Award and accolade
G .product of HDFCSL
H .About ULIP
03. Descriptive work
A. Factsheet
B. Profiling of prospects
C. Mode of contacting prospects
D. Total number of people contacted .

Purpose of study
During my summer training in the Housing Development finance
corporation standard life insurance company limited (HDFCSL). I have
gotten the work of Analyzing financial need and manage the funds of the
policies. The main focus area of the company is to manage and focus of
customer profit which gets through managing the funds of the policy.
Indeed the work of financial analyst is very significant and gives more and
more customer assistance to the customer so company can earn customer
base and through strong customer base gets more and more policies
distribution and company can sell the policies. The main motive of this
project is analysis of financials of HDFC LIFE.
HDFCSL is one of India’s leading private insurance companies.
It offers both individual and group insurance solution. It is a joint venture
between HDFC and a group of company of Standard Life. I have chosen
insurance sector as the place for summer training because in these days this
sector is in boom and it will never go down. All people invest their money
in insurance and get more benefited. In the sector the work of Finance is
more challenging then the other sector because there is 17 insurance
companies in the market who are giving competition to each other and the
work of convince people for investment in respective company is a
challenging work and success in the sector proves that the respective person
is a good finance advisor. Today insurance sector India is on boom
because all people want to invest. Those who don’t know about investment
in share market and don’t want to invest in mutual funds they invest in
insurance sector. Insurance sector gives them investment plus risk cover.
Those who don’t want to take risk in the investment go to insurance sector.
It also gives income tax benefits to the peoples. Insurance company are now
launching ULIP plan and gives chance to the investor to choose their
investment pattern according to their fund investment table. This fund
investment tells us that how much the investor want to take risk. Generally
in the ULIP plan, the thesis is that “The more you risk the more you have
profit.”

M OF STUDY
During the summer training I have done my work through telephone calling,
natural market, and contact person having gone to their home. In the entire
work I have contacted person who is policy holder of the company or
willing customer and prospect customers of the company
I found that most of person can earn as well as get insured through
insurance company and save taxes, life assurance with little effort, which
will give him back support as a HEAD of the family in the diverse situation.
This project will help to understand the current market scenario and
marketing in stiff competition. Being a student of management I can draw
the relevant conclusion from the financial analyze and give the appropriate
suggestion to the organization.
The company can take decision according to the suggestions and
it will provide better experience to the students for their bright carrier.
My project will provide help in these matters which are thus:-
Analyze the people perception about HDFC
Study financial markets and analyze the financials of the
company
To find out the competitive edge of the company over the competitors.

OBJECTIVE OF THE STUDY
The project was an attempt to explore the “Analyzing financial need and
manage the funds of the policies” in HDFC LIFE. The project was started
on 10th June, after knowing all the relevant information about the
company insurance product and policies and its competitor’s insurance
products in accordance with the prescribed schedule mentioned by
management of HDFC LIFE.
The project started in Janakpuri branch where covering all the investors
whom funds are down and bearing loss. In this process I meet 90 policy
holders who facing loss .I have tried to convince them to continue with company
and remain with the company. During my work I found the perception of
the people about insurance, what they desire from it, and if they suffer
loss than what they think. What the organization should do for the
policyholder who suffering from loss. Many of the customer is not aware
about the share market and if they suffer loss than they blame either
company or agent/sales manager. So I have to manage the customers to
remain with us and provide them the best financial solution to them
As I can say this project gives the abstract of my work at HDFC LIFE as
financial analyst

Chapter: - 1
INTRODUCTION OF HDFC LIFE
INRODUCTION OF HDFC LIFE
Risk is found everywhere. It cannot be eliminated together, only it can
be minimized. Human life is full of risk. There is a risk when a man walks
on the road, travels in a bus, train or an aero plane and when he is engaged
in trade, profession or business. Also there is a risk when property is
destroyed by fire, flood, earthquakes, etc. Thus, the involvement of risk is
inescapable.

Insurance is a method by which we can spread over the risk. It is a way of
reducing uncertainty of occurrence of an event. Insurance is entirely a
method of co-operative endeavor where in the loss caused by a particular
risk is spread over among a large section of persons. Insurance is a process
in which a large number of persons collect their small contributions, called
4%
20%
35%
41%
Risk
Drought
Earthquakes
Floods
Storms
Risk Percentage
Drought 4%
Earthquakes 20%
Floods 35%
Storms 41%

the premium, in a pool and out of this losses are paid to the suffering
persons.
The Business of insurance is related to the protection of the economic
values of assets. Every asset has a value. The asset would have been created
through the efforts of the owner. The asset is valuable to the owner, because
he expects to get some benefits from it. It is a benefit because it meets some
of a factory or a cow, the product generated by it is sold and income is
generated. In the case of a motor car, it provides comfort and convenience in
transportation. There is no direct income. Both are assets and provide
benefits.
INTRODUCTION OF THE COMPANY
HDFC Life Insurance Company Limited. is one of India's leading
private insurance companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Limited), India's leading housing
finance institution and a Group Company of the Standard Life Plc, UK. As
on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life
(Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture,
while the rest is held by others.

HDFC Life believes that establishing a strong and ethical foundation is an
essential prerequisite for long-term sustainable growth. To ensure this, we
have concentrated our focus on expansion of branch network, organizing an
efficient and well trained sales force, and setting up appropriate systems and
processes with optimum use of technology. As all these areas form the basic
infrastructure for establishing the highest possible customer service
standards. Our core values are drilled down to all levels of employees, as
these are inviolable. We continue to promote high integrity in business
practices and shun short cuts and unethical practices, as we wish to be
perceived as an institution with high moral standing. Since our inception in
2000, when the Indian insurance space was opened for private participation,
we have consistently focused on setting benchmarks in all aspect on
insurance business. Beingthe first private player to be registered with the
IRDA and the first to issue a policy on December 12, 2000,
 The HDFC was established in 1977, for the purpose of providing the home
loan for long term
 HDFC is rated as (AAA) by the CRISIL and ICRA.
 In the year 2004, it was awarded DREAM HOME AWARD.
 It has got 3rd rank in the investment management, in year 2006.
 One of the largest financial institution of India with more then 2 million
satisfied customer base.

HDFC HAS FOLLOWING GROUP COMPANIES
 HDFC Ltd.
 HDFC Standard life
 HDFC Mutual fund
 HDFC Securities
 HDFC Bank
 HDFC realty.com
 HDFC CIBIL
 HDFC Chubb General Insurance Co. Ltd.
 HDFC Centre For Housing Finance
 HDFC Distribution
 HDFC Intel net
 HDFC Securitization
 HDFC Deposits
 HDFC Home Loans

OUT STANDARD LIFE (U.K)
 Founded in 1825, and is now one of the largest life Insurance companies in
the world.
 Strong reputation build over 182 years
 Currently over 5 mn. policyholders benefiting from the services offered
 Europe’s largest mutual life insurer

Values
1.Integrity
 Honest and Truthful in every action
 Transparency
 Stick to principles irrespective of outcome
 Be just and fair to everyone.
2.Innovation
 Building a store house of treasures through experiences.
 Looking at every product and process through fresh eyes everyday.
3.Customer Centric
 Understand customer expectations by keeping him as the centre –
point.
 Listen actively
 Understand customer needs and deliver solutions.
 Customer interest always supreme.
4.People Care
 Genuinely understanding the people we work with.
 Guiding their development through training and support.
 Helping them develop requisite skills to reach their true potential.
 Know them on a personal front.
 Create an environment of trust and
 Respect for the time of others.

5.Team Work
 Whole team takes the ownership of the deliverables.
 Consult all involved, understand and arrive at a company Co-operate
and support across departmental boundaries.
 Identify strengths and weaknesses according allocate responsibility to
achieve common objectives.
6.Joy and Simplicity
 Environment that fosters fun in the form of celebration of individual and
team success.
 To encourage work as fun that contributed to personal and
organizational development.
 Joy is also derived through simple processes and forms.
VISION STATEMENTS
“ The most successful and admired life
insurance Company, which means that we are
the most trusted Company, the easiest to deal
with, offer the best value for money, and set the
standards in the industry. In short, “The most
obvious choice for all”

Plans
Traditional ULIP
0
10
20
30
40
50
60
70
80
90
1st Qtr 2nd Qtr 3rdQtr 4thQtr
East
West
North
DIFFERENT PLANS OF HDFC SLIC
Traditional

 Traditional plan is a life insurance solution that provides the client
only guaranteed return.
ULIP (Unit Linked Insurance Plan)
 Unit Linked insurance plan is a life insurance solution that provides
the client with the benefits of protection & flexibility in investment .It
is solution which provides for life insurance where the policy value at
any time varies according to the value of the underlying assets at the
time.

LIFE INSURANCE SECTOR:
India is emerging a some of the two of the largest markets in the world for
life insurance products, the other being China. In the case of India, the
three key drivers of growth are a large insurable population, a high savings
rate, roughly at about 25 percent and a low penetration, at a mere 2.3
percent. In the 11 months of fiscal year 2004-05, life insurance companies
collected premium worth Rs172 billion and the market grew by a
whopping 32.4 per cent during the year. Of this, the public sector Life
Insurance Corporation (LIC) had the lion's share of the market with
premium totaling Rs134 billion. Private sector players recorded a
spectacular growth of 129 percent over the last year, compared to LIC's
growth of 18 percent. India's GDP growth rate of 6 percent per annum
holds great potential for the sector. According to one estimate real life
premium are expected to grow at a compounded annual rate of 15 per cent
over the next ten years.
How does India's life insurance market compare with China's? While India's
market is currently the fifth largest, China's is the third largest in Asia after
Japan and Korea. Low penetration rate of insurance products is common to
IndiaandChina-atjustabout2.3 percent. In China, the savings rate is at 35
percent while for India it is a little lower at 25 percent. A large part of the
growth of the life insurance market in China was driven by the conversion
of bank deposits into endowment products. Demographically China's
population is ageing faster than India's FDI in Insurance Sector. The
government of India is planning to increase the equity limit for foreign
direct investment from the current 26 percent to 49 percent in the insurance
sector. Liberalizations of the FDI policy, including the Budget proposals for
raising the sector al caps in insurance is one of the main factors for the
higher FDI inflows during the current year. In 2003-04 the total FDI inflows
in the country touched $3.4 billion. Indian insurance companies have been
pushing for the FDI limit to be raised. The current paid-up requirement of
Rs1 billion for general insurance and Rs2 billion for life insurance have
become difficult targets to achieve for the companies. The companies feel
that injection of additional foreign equity would reduce the costs. The sector

was liberalized for private players towards the end of 1999. Currently, there
are 14 insurance companies, including the key public sector company Life
Insurance Corporation, in the life insurance sector and 13 general insurance
companies.

Changing Demographics
In1999, according to KSA-Techno park, savings and investments comprised
14 percent of an Indian consumer’s expenditure. The other items included
grocery (44 percent), personal care items (6 percent), consumer durables
(6.6 per cent), clothing and books and music (5 percent each), eating out (8
per cent), movies (1 percent). By 2003, expenditure on savings and
investments had declined to just 4.1 percent. The other items included
grocery (41percent) , personal care items (7.6 percent), consumer durables
(6.6percent), clothing (6.9 percent), eating out (10.8 percent), movies and
theatres (4.6percent), books and music (7.6 percent), vacations (3.9 per
cent). Clearly, the increased spending on other items have had a huge
impact on the amount people are spending on savings and investment
products. (Source: Business World’s Marketing White book 2005).
Composition of Household Financial Savings 1991 1996-97
2002-0

Currency 10.6% 8.6% 8.5%
Deposits 33.3% 48.2% 41.5%
Of which Deposits with non banking
companies
2.2% 16.4% 1.6%
Share sand debentures 14.3% 6.6% 2.7%
Small savings (central govt. schemes) 13.2% 7% 14.3%
Life insurance 9.5% 10.1% 15.5%
Provident and pension funds 16.9% 19.1% 14.3%
Source: RBI Annual Reports.
Key Players in the Indian Market
While the public sector LIC dominates the Indian life insurance market
with nearly 80 percent of the market share. It has 248 branches, 115,000
employees and over 1 million agents. It has also been improving internal
processes and systems, upgrading skills of its agency force and managers
And developing innovative products. LIC sold 1.69 corers policies during
the year compared to 18 lakh policies sold by all the private players.
ICICI Prudential is the leader among the private players with a market
share of 6.69 percent after its premium collection totaled Rs11.54 billion.
Bajaj Allianz with sales of Rs 4.9 billion had a market share of 2.86
percent. Birla Sun Life with sales of Rs 4.8 billion had a market share of
2.81 percent and SBI Life with premium collection of Rs 3.9 billion, a
market share of 2.29 percent. With its combination of aggressive
marketing through an agency force and the use of the banking channel,
ICICI has emerged as a key player. Initially, the company drove new
business by opening branches in new locations. The focus has now shifted
to penetrating the locations for increasing market share. The company is
also trying to get higher penetration in the High Net Worth segment. The
company has seven bank assurance partners and this is the largest
contributor to non-agency business. It also has 15 key non-bank partners
and 800 financial sales consultants. As of September 2004, it had 90
branches in 60+ locations. It took the initiative in launching non-
traditional products such as life-stage products, retirement solutions and
child plans. It also focused on Unit Linked Plans (ULIPs) to target new
consumer segments. It has a presence in 15 states through partnership

arrangements and as of 2003-04, it sold64, 764 policies in rural areas.
HDFC Standard Life has established its branches in 110 locations and is
targeting non-metro towns. It is hoping to leverage its
“pedigree/parentage” to gain more customer acceptance. As a result, it is
focusing on quality – not

Just volume growth. It has developed some innovative products like the
Loan Cover Term Assurance Plan which provides a lump sum in case of
death of the assured life during the term plan. Aimed at the growing
segment of home loan takers, the plan helps the family to repay the
outstanding loan. Given that HDFC has a huge database of home-loan
customers; it can easily tap into this resource to acquire new business. The
company is leveraging
Its large customer database of home loan and banking clients to cross-
sell insurance products.
Birla Sun Life
Birla Sun Life was the first to offer ULIPs in the Indian insurance market.
And this has been the primary driver of its growth over the last one year.
The company has been investing in customer education and feels that as a
result customers don't view ULIPs as mutual funds but long term
insurance. As of 2004, the company had 33 branches, 10,274 agents, 79
corporate relationships and 10 bank assurance partners.
Bajaj Allianz has been focusing on second tier towns and cities which are
yet to witness the entry of other life insurance players apart from LIC. It is
using first mover advantage by opening an office in the most prominent
location in a non-metro town. It hires local people who are trained. Its
mantra is to develop only the indispensable infrastructure so that it can
match the pricing of LIC. Apart from that it claims that it is the only
private player to provide policy servicing at the branch level .Standard
Chartered is currently its biggest partner followed by Syndicate Bank and
Centurion Bank. The biggest challenge that the company faces is the weak
infrastructure – particularly transport and communications – in the smaller
cities. It is also facing a challenge in terms of banking channels,
particularly for customers who bank with cooperative banks, where delays
in clearing
Cheques are in evitable. Tied agencies comprise the biggest channel (68%)
of new business acquisitions for Bajaj Allianz. Bank insurance (27%) is the
other significant channel of growth for the company.

Product Preferences among Consumers
Pension policies are becoming popular as people prefer to opt for
solutions that can offer them a regular income after retirement rather
than a lump sum on retirement. Measurable policies for a bulk sum are
being bought only for limited single use such as purchase of a house,
children’s higher education, marriage, etc. This consumer trend is likely
to help
companies that offer pension schemes. Term policies are finding favor with
40

Youngsters. Term insurance policies are also finding more and more takers
among the younger generation of consumers. Because the offer protection at
extremely low costs.
It is assumed that life insurance is purchased only to avail of tax-breaks. But
the fact remains that while the tax paying population in the country is just
about 20 million, there is a huge population that has not been tapped. Only
the urban salaried class who fall in the tax net has been targeted for life
insurance policies for tax-saving purposes. The other income-earning classes
such as businessmen, professionals, farmers, provide a great opportunity for
life insurance marketers. There is a need to tap these customer segments
effectively. Currently all their disposable income is going into purchase of
consumer durables such as washing machines, TV, refrigerators and mobile
phones(as is evident from the fact that spending on savings/investment
products has declined from 14 percent to 4 percent in the past decade).
Mutual Funds (MF) have benefited the most during the last two years. Take
the example of the Systematic Investment Plans (SIP) of mutual funds. In just
one quarter ICICI PRU MF sold 20,000 SIPs and it has the potential of
selling about 100,000 new SIPs in a year. There are 33 Mutual Fund
companies in the country and based on this trend one could say that the
estimated fund in flow in MFs through this route alone could touch the Rs20
billion per month. Due to the good performance of MF during the past 2
years, life insurance companies have lost out to mutual funds.
PROFILING PROSPECT
For the Providing assistance of financial management there are certain
criteria for the selection of policy holder. These criteria differ from different
insurance company. We can divide the profiling prospect of HDFCSLIC in
two ways.
Which are thus:-

1.H.N.I (HIGHLY NET WORTH INDIVIDUALS)
Highly net worth individuals are those persons who having yearly income
more than 20 lacs and they are specially treated as H.N.I clients and they have
provided relationship manager who watching and manage their funds and
provided financial advices and updating all information of policies
2.LOYALCUSTOMERS FUNDVALUEAND HAVING DOWN
Every Company Want more and more business and market share and we all
know that the work in insurance sector is totally based upon the customer
base. The more you have customer the more you earn business. So
HDFCSL provide the facility to customers that they can contact
with financial assistant in the company and manage their funds
which is in loss or customer is not aware about their po licies and
managing funds also.
TOTAL NO. OF PEOPLE CONTACTED
During the work of financial Assistance I have contacted 100 people
including phone calling, meetings, and the other efforts. In these 100 people
I have gotten appointment of 65people. In the 65 person I have assisted 39
people. The percentage of converting the profits at 9%.
During the meeting time with the customer these questions are generally
asked by them which are thus:-
Which type of this policy in which I m getting loss!
Our premium will charge by your company or
premium is invested or not?
How your policy is working?

How can I believe on you and your company?
Mostly person have still faith in LIC so I have to convince them against the
LIC.

ABSTRACT OF MARKET RESEARCH
Marketing Research provides information that assists and organization to
define opportunities for product development and market strategy. It works by
assessing whether marketing strategies are accurately targeted, and by
identifying market opportunities or changes that are required by customers.
Market research tends to confirm issues that are well-known in a market
initially, but if planned well and effectively it will also identify new
opportunities, market niches, or ways by which to improve sales, marketing
and communications activities.
WHY MARKET RESEARCH STUDY
The role of market research, therefore, is to reduce uncertainty in decision
making, to monitor the effects of decisions taken, and identify the
performance of a company or a product in the market. During internship my
market survey was related with the distribution enhancement of the insurance
policies of HDFCSL. To be more specific, we can list five key uses for
market research, namely to:
a. Identify the size, shape, and nature of a market, so as to understand the
market and marketing opportunities.
b. Test out strategic and product ideas which help to define the most effective
customer-led strategies.
c. Monitor the effectiveness of strategies
d. It will define when marketing expenditure, promotions and targeting need
to be adjusted or improved.
The variety of purposes listed above makes it clear that market research is not
simply a “first check.”It is useful ahead of any action, but it also provide
same answer of checking and refining views as operations proceed.
Companies, especially those for which budget seem tight, who have selected
one of these uses for market research are always concerned to make the
research a worthwhile investment. Best results come when their marketing
and sales planning is influenced by the results of research. In other words,
when research pays for itself by providing a basis for change and
improvement in operational matters.

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem.
It may be understood as a science of studying now research is done
systematically. In that various steps, those are generally adopted by a
researcher in studying his problem along with the logic behind them.
It is important for research to know not only the research method but also
know
methodology. ”The procedures by which researcher go about their work of
describing, explaining and predicting phenomenon are called methodology.”
Methods comprise the procedures used for generating, collecting and
evaluating
data. All this means that it is necessary for the researcher to design his
methodology for his problem as the same may differ from problem to
problem. Data collection is important step in any project and success of any
project will be largely depend upon now much accurate you will be able to
collect and how much time, money and effort will be required to collect that
necessary data, this is also important step.
Data collection plays an important role in research work. Without proper data
available for analysis you cannot do the research work accurately.

OBJECTIVE OF
PROJECT
My project is being undertaken in HDFCSL in which finance management
program and distribution enhancement of insurance policies of HDFCSL has
been implemented as a marketing strategy. HDFCSL tied up with world class
insurance product.
Primary Objective
The primary objective of my project is to provide Financial assistance and
to increase market share of HDFCSL. In the insurance sector the main work
is done by the financial planning manager who brings selling for the
organization as well providing the best solution for policies which is not in
profit. It improves the services of the organization.
Secondary Objective
In this point we can conclude the company objective which is to increase the
market share in the insurance sector and this will happens it becomes more
beneficiary and reliable to the customer. Customer should have faith on it. It
is trying to do it. Today it comes under top 5 insurance companies. It wants to
reach on the top.
Working Procedure
In my summer training I have targeted Delhi. I have collected my data some
parts of Delhi. Here I have to approach various detail of insurance product of
HDFCSL and the other competitor of it, suggestions, its marketing strategy
and its advertisement. As a part of marketing research I also have collect the
data in order to find out market share of HDFCSL from our sample space.
During the period I was in continuous touch with my senior and sales
manager and I have to submit daily report of my work and full information
about phone calls and questioners. Questionnaire consisting of open ended
questions was used for collecting the information.

Sample Area
My working area was Delhi. As we know that those person will invest in
insurance sector who are salaried or professional. I have targeted those person
who’s age is equal or more than 25.

37
Instrument Used
I have collected my data form LIFE ASIA and through phone calling.
Life asia is the software which used by every insurance company and
this software help me to know the customer details and customer policy
information which help me providing best solution through discussion
with my seniors.
Types of data collection
There are two types of data collection methods available.
1. Primary data collection
2. Secondary data collection
1) Primary data
The primary data is that data which is collected fresh or first hand, and for
first time which is original in nature. Primary data can collect through
personal interview, questionnaire etc. to support the secondary data.
2) Secondary data collection method
The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, journals,
annual reports of the company etc. It will save the time, money and efforts
to collect the data. Secondary data also made available through trade
magazines, balance sheets, books etc. This project is based on primary data
collected through personal interview of head of account department, head
of SQC department and other concerned staff member of finance
department. But primary data collection had limitations such as matter

38
confidential information thus project is based on secondary information
collected through five years annual report of the company, supported by
various books and internet sides. The data collection was aimed at study of
working capital management of the company
 We used both methodology i.e. primary and secondary
 We take the sample size of 100 POLICY HOLDERS
 Sample location is Delhi
 This is stratified sampling

39
LIMITATIONS OF THE STUDY
Limitations of the study
Following limitations were encountered while preparing this project:
1) Limited data:-
This project has completed with annual reports; it just constitutes one part
of data collection i.e. secondary. There were limitations for primary data
collection because of confidentiality.
2) Limited period:-
This project is based on five year annual reports. Conclusions and
recommendations are based on such limited data. The trend of last five year
may or may not reflect the real working capital position of the company
3) Limited area:-
Also it was difficult to collect the data regarding the competitors and their
financial information. Industry figures were also difficult to get.

41
CRM is also referred to as Customer Service Management. Generally
organizations are more focused on the path they travel through to reach the
success or determined goal. The stages they traverse includes design,
development, marketing, service support, analyzing managerial track,
channeling the development phase, research and development and many
more. These stages of one’s business life are as a whole supported with the
Customer Relationship Management features.
In the field of business development, and short term goal tracking with
standard terms and strategies, one must keep up certain flexible terms of
communicational relationship and managerial provisions among the
company employees, customers, and clients and with various departmental
staff and members. This enhances a co-operative and comfortable zone to
make the right move of the company development on time.
Focusing on the marketing department, it is important to realize the
important of promoting one’s products sales via advertisements, and
efficient marketing strands with better quality. Advertising has to be
powerful means to reach the targeted customers in a short time span with
less investment for a perfect outcome of the resulting sale. Sale includes
product quality, competitiveness, advertisement, managing the service to
meet the requirements of the clients and many more.
Marketing one’s product means to take the product to the customers who
are into the track or into the field of trade. Sales department is specific in
making the product move to the clients with respect to the deal of sale. This
department is more concerned about the sales of the product that make use
of customer service and management terms to keep up good terms on

42
serving the customers with help-line service to solve problems related to
purchase and utility of products from the company.
Benefits of CRM techniques are more focused towards customer
management and services. Customer relationship management attracts and
retains the customers winning the growing loyalty of the customer and
company relationship. CRM processes helps in guiding the way an
organization runs that are targeted generating quality leads, sales and
services that are more focused on the goals and objectives. They help in
forming a tie between customer and organizational relationship that
improves the customer satisfaction with the high quality service and makes
the customers feel comfortable to take up business in futurity.
In many industries customers’ experience with a company’s customer
service can significantly affect their overall opinion of the product.
Companies producing superior products may negatively impact their
products if they back these up with shoddy service. On the other hand,
many companies compete not because their products are superior to their
competitors’ but because they offer a higher level of customer service. In
fact, many believe that customer service will eventually become the most
significant benefit offered by a company because global competition (i.e.,
increase in similar products) makes it more difficult for a company’s
product to offer unique advantages.
Customer service manifests itself in several ways, with the most common
being a dedicated department to handle customer issues. Whether a
company establishes a separate department or spreads the function among

43
many departments, being responsive and offering reliable service is critical
and in the future will be demanded by customers.
Our Vision & Values
Our Vision
'The most successful and admired life insurance company, which means
that we are the most trusted company, the easiest to deal with, offer the best
value for money, and set the standards in the industry'.'The most obvious
choice for all'.
Our Values
Values that we observe while we work:
 Integrity
 Innovation
 Customer centric
 People Care "One for all and all for one"
 Team work
 Joy and Simplicity
ORGANIZATIONAL STRUCTURE
-
BRANCH DEVELOPMENT MANAGER

44
EXECUTIVE SALES MANAGER
SR. SALES MANAGER SR. SALES
MANAGER
8 TO ASST. SALES MANAGER
IN EAH SR. SALES MANAGER
25 TO 35 ADVISORES IN EACH
ASST. SALES MANAGER
Figure 1.2 Organization Structure

45
INDUSTRY OVERVIEW
With an annual growth rate of 15-20% and the largest number of life
insurance policies in force, the potential of the Indian insurance industry is
huge. Total value of the Indian insurance market (2010-11) is estimated at
Rs. 550 billion (US$10 billion). According to government sources, the
insurance and banking services contribution to the country's gross domestic
product (GDP) is 7% out of which the gross premium collection forms a
significant part. The funds available with the state-owned Life Insurance
Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of
the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These facts
indicate the of immense growth potential of the insurance sector. The year
1999 saw a revolution in the Indian insurance sector, as major structural
changes took place with the ending of government monopoly and the
passage of the Insurance Regulatory and Development Authority (IRDA)
Bill, lifting all entry restrictions for private players and allowing foreign
players to enter the market with some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in
an insurance company, a proposal to increase this limit to 49% is pending
with the government. Since opening up of the insurance sector in 1999,
foreign investments of Rs.8.7 billion have poured into the Indian market
and 21 private companies have been granted licenses. Innovative products,

46
smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone
expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the
new innovative products on offer. The life insurance industry in India grew
by an impressive 36%, with premium income from new business at Rs.
253.43 billion during the fiscal year 2004-2005, braving stiff competition
from private insurers. This report "Indian Insurance Industry: New Avenues
for Growth 2012", finds that the market share of the state behemoth, LIC,
has clocked21.87% growth in business at Rs.197.86 billion by selling 2.4
billion new policies in2004-05. But this was still not enough to arrest the
fall in its market share, as private players grew by 129% to mop up Rs.
55.57 billion in 2004-05 from Rs. 24.29 billion in2003-04 Though the total
volume of LIC's business increased in the last fiscal year (2004-2005)
compared to the previous one, its market share came down from 87.04 to
78.07%. The 14 private insurers increased their market share from about
13% to about 22% in a year's time. The figures for the first two months of
the fiscal year 2005-06 also speak of the growing share of the private
insurers. The share of LIC for this period has further come down to 75
percent, while the private players have grabbed over 24 percent. There are
presently 12 general insurance companies with four public
sector companies and eight private insurers. According to estimates,
private insurance companies collectively have a 10% share of the non-life
insurance market.

47
INTRODUCTION
Financial management means procurement of funds at minimum costs
and effective utilization in order to maximize the wealth of shareholders.
The term of financial management refers to its relationship with the
closely-related fields of economics and accounting, its functions, scope
and objectives. Financial management, as an academic discipline, has
undergone fundamental changes in its scope and coverage. In the early
years of its evolution it was treated synonymously with the raising of
funds. In the current literature pertaining to financial
management, a broader scope so as to include, in addition to procurement
of funds, efficient use of resources is universally recognized.
Financial management, as an integral part of overall management, is not
a totally, independent area. It draws heavily on related disciplines and fields
of study, such as economics, accounting, marketing, production and
quantitative methods. A part from economics and accounting, finance also
draws for its key day to day decisions on supportive disciplines such as
marketing, production and quantitative methods, for instance, financial
managers should consider the impact of new product development and
promotion plans made in the marketing area since their plans will require
capital outlays and have an impact on the projected cash flows.
Finally, the tools of analysis developed in the quantitative methods area
are helpful in analyzing complex financial management problem.

48
Organization makes their planning for the financial sources which are
very helpful in the future course of action.
Taking a commercial business as the most common organizational structure,
the key objectives of financial management would be to:
 Create wealth for the business
 Generate cash, and
 Provide and adequate return on investment bearing in mind the risks that the
business is taking and the resources invested.
CONCEPT OF FINACING
1. Financial Planning
Management needs to ensure that enough funding is available at
the right time to meet the needs of the business. In the short term,
funding may be needed to invest in equipment, pay employees and
fund sales made on credit. In the medium and long term, funding
may be required for significant additions to the productive capacity of
the business or to make acquisitions.
2. Financial Control
Financial control is a critically important activity to help the business
ensure that the business is meeting its objectives.

49
3. Financial Decision-Making
A key financing decision is whether profits earned by the business should
be retained rather than distributed to shareholders via dividends. If
dividends are too high, the business may be starved of funding to reinvest
in growing revenues and profits further.
FINANCIAL DECISIONS
Financial management consists of four major decisions or functions which
are as discussed as below.
1. Investment decision
Investment decision is the long term, strategic policies of an organization.
Investment decisions have a long term effect on the working
of an organization. Thus an enterprise should invest in proposals which
maximize share value.
2. Financing decision
There are various sources of capital like equity, preference shares, borrowed
funds, and retained profits. The finance manager has to select a proper mix of
owned at the minimum cost. A financing decision adds to the value to the
value of shareholders.

50
3. Dividend decision
Profits can either be distributed or reinvested into the business.
The proportion of profits that needs to be distributed and that needs to be
retained is a crucial decision. It is the job of finance manager to satisfy the
shareholders as well as claw back into the business. This division of profit
when done in an optimum manner maximizes shareholder value.
4. Liquidity decision
An enterprise needs finance for the day today activities for the
smooth functioning. The brand of FM that deals with investments in
current assets & liabilities, in other words investment is the net working
capital comprises of the liquidity decisions.
DEPRECIATION POLICY IN HDFC LIFE
Depreciation is charged as per the below mentioned rates
Asset Rate as per Companies
Act (Written Down
Value method) – WDV
Rate as per Income
Tax Act (Written
Down Value
method) – WDV
Buildings Residential Units 1.63 %
Office Premises 1.63 %
(Straight Line Method –
Residential units 5 %
Office Premises 10
%

51
SLM)
Computers 25 % (SLM) 60 %
Air Conditioners
& Refrigerator
13.91 % 15 %
Furniture &
Fixtures
18.10 % 10 %
Office Equipment 13.91 % 15 %
Electrical
Installations
13.91 % 15 %
Vehicles (Motor
Cars)
25.89 % 15 %

52
Companies Act
1. The rate 13.91 % is applicable to Plant and Machinery (applicable to A/C,
Office Equipment and Electrical Installations).
2. The Depreciation under Companies Act for Computers is 16.21 % (SLM).
However, the rate adopted by us is 25 % SLM.
3. Except Computers, all the rates are as per Companies Act.
4. No depreciation is charged in the year of sale.
5. Depreciation is charged for the full year in the year of purchase.
Income Tax Act
1. Machinery and Plant other than the specified – 15 % (applicable to A/C,
2. Rates of premises, computers, vehicles and furniture specified.
3. If the asset is put to use for 180 days or more in a year, 100 % depreciation
is provided during the financial year. If the period is less than 180 days ---
50 % depreciation is provided for tax purposes.

53
FINACIAL STATEMENT FOR THE YEAR 2009-10
1.Cash flow
Particular 2010 2009
Operating activities
Amount received form policy
holder
70,817,804 54,747,190
Amount received to reinsurance -312,168 -384,636
Amount paid to policy holder -12,053,422 -5,414,218
Amount paid as commission -5,417,619 -4,136,736
Payment of employee and suppliers -13,207,483 -15,583,363
Deposited with RBI 0 100,00
Income tax paid -309,142 -230,833
Net cash flow from operating
activities
39,821,183 29,453,152
Investing activities 155,217,800 68,782,936
Purchases of fix assets -217,752 -581,822
Sales of fix assets 5,444 3,159
Investment -48,767,468 -39,057,231
Interest income 48,17,558 3,805,029
Dividend income 1,338,737 745,975
Net cash flow from investing
activities
-42,823,481 -35,081,730
Financing activities

54
Issue of share 1,720,000 5,250,000
Net cash flow from financing
activities
1,720,000 5,250,000
Net increase in cash and cash
equivalents
-1,282,298 -384,578
Cash and cash equivalent as at
beginning of the year
4,108,660 4,493,238
Cash and cash equivalent as at end
of the year
2,826,362 0
Particular 2010 2009
Liability
Share capital 19,680,000 17,958,180
Reserve fund 552,892 552,892
Credit change a/c 184,435 -77,610
Credit change a/c 205,087 -296,885
policy liabilities 37,666,908 29,092,419
insurance reserve 0- 0
Provision for link liabilities 127,701,636 84,085,083
Add: Fair value change 27,516,164 -15,302,147

55
3. RATIO ANALYSIS
(A) CURRENT RATIO
total provision 155,217,800 68,782,936
Funds 1,490,013 586,395
funds for provision 1,064,831 531,970
Surplus 0 0
Profit and loss 6,95,56,324 5,51,83,763
Total 216,061,966 117,130,297
Assets
Share holder 6,304,757 4,291,597
policy holder 43,415,382 30,152,727
Assets held to cover link
liabilities
155,217,800 68,782,936
Loans 40,366 30,248
Fix assets 1,143,777 1,451,346
Cash and bank 2,826,362 4,108,660
Advance 4,917,758 5,428,699
Current asset 12,28,585 8,820,225
Provision 187,617 208,813
Net working capital 4,725,082 508,321
Miscellaneous expense 14,664,966 11,913,122
Other Asset 0 0
Total 216,610,966 117,130,297
2. BALANCE SHEET

56
CURRENT ASSETS:
Cash and bank balances: 2,826,362
Advances and Other Assets: 4,917,758
 CURRENT LIABILITIES: 12,281,585
CURRENT RATIO=
CURRENT ASSETS
CURRENT LIABILITIES
2009-10 =
77,44,120
12,281,585
=0.63:1
2008-09=
9537359
8820225
=1.08:1

57
Comment
Current ratio of HDFC LIFE insurance, has 0.63:1, it means it is less
than 1 that indicates firm’s ability to meet current obligations & greater the
safety of funds of short-term creditors. It also indicates the sound solvency
of the company is lover.
0
0.2
0.4
0.6
0.8
1
1.2
2009-2010 2008-2009
Column1

58
(B) LIQUID RATIO
LIQUID RATIO: =
CURRENT ASSETS−STOCK
CURRENT LIABILITIES−BOD
∗ 100
2009-10=
77,44,120−15,21,520
12,281,585
∗ 100
= 0.60:1
2008-09=
9537359−45,44,600
8820225
= 0.57:1
Comment
The liquid ratio of HDFC life in 2009 was 0.57 and in 2010 is .60 so
increasing the liquid ratio and company have a good liquid position over
0.555
0.56
0.565
0.57
0.575
0.58
0.585
0.59
0.595
0.6
0.605
2009-2010 2008-2009
LiQuid Ratio

59
the year.
(C)Gross profit ratio
GROSS PROFIT RATIO =
GROSS PROFIT
𝑁𝐸𝑇𝑆𝐴𝐿𝐸𝑆
∗ 100
2009-10 =
70,051,044
31,48,95,290
∗ 100
= 30.25 %
2008-09=
55,646,930
25,56,98,360
∗ 100
= 21.76%
0
5
10
15
20
25
30
35
2009-2010 2009-2010
Column1

60
Comment:-
The gross profit ratio of HDFC LIFE in 2009 was 21.76% and in 2010 is
30.25% so increasing the gross profit of HDFE LIFE over the year and
company become a strong in his financial performance.
(D) NET PROFIT RATIO
NET PROFIT RATIO=
NET PROFIT
𝑁𝐸𝑇𝑆𝐴𝐿𝐸𝑆
∗ 100
2009-10=
6,95,56,324
31,48,95,290
∗ 100
= 22.09%
2008-09 =
5,51,83,763
25,56,98,360
∗ 100
= 21.58%

61
Comment:-
The net profit ratio of HDFC LIFE in 2009 was 21.58% and in 2010
is 22.09% therefore the net profit is increasing. The company have good
profit margin. The company should more and more profit for the future.
(E)Net retention ratio
NET RETENTION RATIO=
NET PREMIUM
𝐺𝑅𝑂𝑆𝑆𝑃𝑅𝐸𝑀𝐼𝑈𝑀
∗ 100
2009-10 =
6,95,56,324
70,051,044
∗ 100
= 99.29 %
2008-09=
55,183,763
55,646,930
∗ 100
21.3
21.4
21.5
21.6
21.7
21.8
21.9
22
22.1
2009-2010 2008-2009
Series 3

62
=99.17%
Comment:-
The net retention ratio of HDFC LIFE in 2009 was 99.17% and in
2010 is 99.29% therefore increasing the net retention ratio of the HDFE
LIFE. So company become successful for maintain the premium level over
the year.
(F)RATIO OF EXPENSES OF MANAGEMENT
RATIO OF EXPENSES OF MANAGEMENT
=
MANAGEMENT EXPENSES
𝑇𝑂𝑇𝐴𝐿𝐺𝑅𝑂𝑆𝑆𝑃𝑅𝐸𝑀𝐼𝑈𝑀
∗ 100
2009-10 =
20,345,376
70,051,044
∗ 100
99.1
99.12
99.14
99.16
99.18
99.2
99.22
99.24
99.26
99.28
99.3
2009-2010 2008-2009
Series 3

63
= 29.04 %
2008-09 =
21,915,907
55,646,937
∗ 100
=39.38%
Comment:-
The ratio of expense of management of HDFC LIFE in 2009 was
39.38% and in 2010 is 29.07% so decreasing the management expenses
over the year
(G)COMMISSION RATIO
COMMISSION RATIO =
Gross commission
𝑇𝑂𝑇𝐴𝐿𝐺𝑅𝑂𝑆𝑆𝑃𝑅𝐸𝑀𝐼𝑈𝑀
∗ 100
0
5
10
15
20
25
30
35
40
2009-2010 2008-2009
Series 3

64
2009-10 =
5,254,973
70,051,044
∗ 100
= 7.50 %
2008-09 =
4,248,904
55,646,937
∗ 100
=7.64%
(H)RATIO OF POLICY HOLDERS’ LIABILITIES TO
SHAREHOLDERS’ FUNDS:
7.4
7.45
7.5
7.55
7.6
7.65
2009-2010 2008-2009

65
RATIO OF POLICY HOLDERS’ LIABILITIES TO SHAREHOLDERS’
FUNDS :
=
POLICY HOLDERS’ LIABILITIES
SHAREHOLDERS’ FUNDS∶
∗ 100
2009-10 =
37666908
6304757
∗ 100
= 597.44 %
2008-09=
290992419
4291597
∗ 100
= 677.89%
540
560
580
600
620
640
660
680
2009-2010 2008-2009
Series 3

66
(I)RETURN ON INVESTMENT
RETURN ON
INVESTMENT =
EBIT
CAPITAL + SURPLUS+RESERVE
∗ 100
2009-10 =
5,029,631
19,680,000+ 552,892
∗ 100
= 24.86%
2008-09 =
2751844
19,680,000+ 552,892
∗ 100
=13.60%
Comment:-
0
5
10
15
20
25
2009-2010 2008-2009
Series 3

67
The return on investment ratio of HDFC LIFE in 2009 was
13.60% and in 2010 is 24.86% there increasing the return on investment
over the year so company become a profitable over the year.
(J) DEBT-EQUITY RATIO
DEBT-EQUITY RATIO =
𝐋𝐎𝐍𝐆−𝐓𝐄𝐑𝐌𝐃𝐄𝐁𝐓
𝐒𝐇𝐀𝐑𝐄𝐇𝐎𝐋𝐃𝐄𝐑’𝐒𝐅𝐔𝐍𝐃
* 100
2009-10 =
𝟕𝟗𝟎𝟓𝟗𝟐𝟑𝟏𝟑
𝟓𝟎𝟎𝟒𝟗𝟒𝟐𝟑𝟖
∗ 𝟏𝟎𝟎
=1.58%
2008-09=
579047751
461137821
∗ 100
=1.25%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2009-2010 2008-2009
Series 3

68
Comment:
The debt-equity ratio of HDFC LIFE in 2009 was 1.25% and in 2010 is
1.58% there increasing the level of equity against long term debt.
TREND ANALYSES

69
Asset
Asset 2009-2010 2010-2011 2009-
2010(%)
2010-
2011(%)
Share holder 6,304,757 4,291,597 100% 68%
policy holder 43,415,382 30,152,727 100% 69%
Assets held to cover
link liabilities
155,217,800 68,782,936 100% 44%
Loans 40,366 30,248 100% 73%
Fix assets 1,143,777 1,451,346 100% 126%
Cash and bank 2,826,362 4,108,660 100% 145%
Advance 4,917,758 5,428,699 100% 110%
Current Asset 12,28,585 8,820,225 100% 717%
Provision 187,617 208,813 100% 111%
Net working capital 4,725,082 508,321 100% 10%
Miscellaneous
expense
14,664,966 11,913,122 100% 81%
Other Asset 0 0 100%
Total 2,16,610,966 117,130,29
7
100% 5%

70
Liability
Liability 2009-2010 2010-2011 2009-
2010(%)
2010-
2011(%)
Share capital 19,680,000 17,958,180 100% 91%
Reserve fund 552,892 552,892 100% 100%
Credit
change a/c
184,435 -77,610 100% 142%
Credit
change a/c
205,087 -296,885 100% 42%
policy liabilities 37,666,908 29,092,419 100% 77%
insurance reserve 0- 0 100% 100%
Provision for link
liabilities
127,701,636 84,085,083 100% 0
Add: Fair value
change
27,516,164 -15,302,147 100%
total provision 155,217,800 68,782,936 100% 44%
Funds 1,490,013 586,395 100% 39%
funds for
provision
1,064,831 531,970 100% 49%
Surplus 0 0 100% 100%
Profit and loss 6,95,56,324 5,51,83,763 100% 79%
Conclusion:-

71
According to trend analysis the hdfc life doing improvement in 2010-
2011 compare to 2009-2010 so company is growing in following way
1). The liquid position of the company improving around 145 %
2).The increase in fixed asset is financed by issue of debenture
3).Higher improvement in current asset the compare the two year 717% are
improvement in 2010-2011
COMMON SIZE STATEMENTS
Asset 2010 2010 (%)
Share holder 4,291,597 3.66
policy holder 30,152,727 25.74
Assets held to cover
link liabilities
68,782,936 58.72
Loans 30,248 0.025
Fix assets 1,451,346 1.24
Cash and bank 4,108,660 3.5
Advance 5,428,699 4.63
Current Asset 8,820,225 7.53
Provision 208,813 0.18
Net working capital 508,321 4.34
Miscellaneous
expense
11,913,122 10.17
Total 117130297 100

72
TREND ANALYSES
Share Capital
share capital
PARTICULAR 2009-10 2008-09 incre/decre %
Authorised
Capital
30,000,000 30,000,000 0 0
Issued Capital 19,680,000 17,960,000 17,20,000 9.57
Subscribed
Capital
19,680,000 17,960,000 17,20,000 9.57
Called-up Capital 19,680,000 17,960,000 17,20,000 9.57
CONCLUSION:
in the year 2008-09 the Authorized share capital was 30,000,000 and at
current year the Authorized share capital are same there are no changes
arise in Authorized share capital between two year and Called-up Capital,
0
10
0 17,20,000 17,20,000 17,20,000
30,000,000 17,960,000 17,960,000 17,960,000
30,000,000 19,680,000 19,680,000 19,680,000
Authorised CapitalIssued CapitalSubscribed CapitalCalled-up Capital
share capital %
share capital %

73
Subscribed Capital , Issued Capital were 17,960,000 and in current year
increase by 17,20,000 so as compare to the previous year increase by 9.57
%
RESERVES AND SURPLUS
PARTICULAR 2009-
10
2008-
09
incre/decre %
Revaluation Reserve 552,892 552,892 0 0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Revaluation Reserve
Revaluation Reserve

74
CONCLUSION:
in the year 2008-09 the Revaluation Reserve are 5,52,892 and at
current year are same there are no changes arise in the current year,
Investments – Shareholders
PARTICULAR 2009-10 2008-09 incre/decre %
Government
Securities
2,471,702 2,180,149 291,553 13.373077
Equity 457,377 233,783 223,594 95.641685
Debentures / Bonds 208,675 100,531 108,144 107.57279
Investment
Properties
757,540 757,540 0 0
Infrastructure 1,108,284 386,899 721,385 186.45305
Other Investments 145,085 64,797 80,288 123.90697
CONCLUSION
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
%
incre/decre
2008-09
2009-10

75
in the year 2008-09 the investment in Government Securities was
2180149 and at current year are having 2471702 so increase by 291,553
and so 13.37 % are increase as compare to previous. And Equity,
Debentures / Bonds, Investment Properties, Infrastructure, Other
Investments, are increase by respectively 95.64%, 107%,0%, 186% 123%.
Working Capital
current assets 2009-10 2008-09 incre/decre %
Cash 279,148 668,726 -389,578 -58.25674
Deposit Accounts 1,340,581 1,751,354 -410,773 -23.4546
Current Accounts 1,206,633 1,653,161 -446,528 -27.01056
current liabilities 2009-10 2008-09 incre/decre %
Agents’ Balances 422,567 525,903 -103,336 -19.64925
Premiums received in
advance
296,400 278,748 17,652 6.3326015
Security Deposits 21,441 21,441 0 0
Sundry creditors 5,078,198 3,894,536 1,183,662 30.392889
Claims Outstanding 433,935 198,361 235,574 118.76024
Unallocated Premium 232,117 274,095 -41,978 -15.31513

76
CONCLUSION:
As compared to previous year, Current Accounts are decrease by as
compare to the previous year respectively,-58%, -19%, 6.33%,0%, 30.39%,
in the year 2008-09 the current asset of cash, Deposit Accounts -23%, -
27%,. And current liabilities of Agents’ Balances, Premiums received in
advance, Security Deposits, Sundry creditors are decrease or increase
Comparison of funds for year 2010:
Fund 2009 2010
Growth
fund 38 73
Balance
manage fund 32 48
Equity
manage fund 34 62
-20%
0%
20%
40%
60%
80%
100%
% -58.25674491 -23.4545957
-27.01055735 %
incre/decre -389,578 -
410,773 -446,528 incre/decre
2008-09 668,726 1,751,354
1,653,161 2008-09
2009-10 279,148 1,340,581
1,206,633 2009-10

77
Liquid
manage fund 28 31
In above diagram comparison of fund’s performance for year 2010.
The above diagram represents the comparison of various funds. The
growth fund in 2009 was 38% and at present in 2010 are 73% so increased
by 35%. And second fund is balance manage fund there was 32%in 2009
and at present jn 2010 is 48% so increase by 16%. And third fund is equity
manage fund there was in 2009 was 34% and at present in 2010 are 62% so
increase by 28%. And forth fund are liquid fund there was in 2009 was
28% and present in 2010 are 31% so increase by 4%.
Equity markets
INDICES 31-5-12 30-4-2012 1month
rate of
1year rate
of return
0
10
20
30
40
50
60
70
80
Growth fund Balance
manage fund
Equity
manage fund
Liquid manage
fund
2009
2010

78
return
BSE
Sensex
16,219 17,319 -6.35 -12.35
S&P CNX
Nifty
4,924 5,248 -6.17 -11.44
BSE 100 4,942 5,268 -6.19 -12.34
BSE Mid
Cap
5,908 6,316 -6.46 -14.50
BSE Small
Cap
6,271 6,765 7.30 -23.86

79
6.Processes
The process should be customer friendly in insurance industry. The speed
and accuracy of payment is of great importance. The processing method
should be easy and convenient to the customers. Installment schemes
should be streamlined to cater to the ever growing demands of the
customers. IT & Data Warehousing will smoothen the process flow. IT will
help in servicing large no. of customers efficiently and bring down
overheads. Technology can either complement or supplement the channels
of distribution cost effectively. It can also help to improve customer service
levels. The use of data warehousing management and mining will help to
find out the profitability and potential of various customers product
segments.
What is Welcome Calling to the customer?
Welcome Calling is a call made to all our new customers to ensure that the
policy chosen by them is as per requirement.
What is the objective of Welcome Calling?
Welcome Calling serves mainly 2 objectives:
 First, to contact the customer as per the given contact details thereby
ensuring contact ability.

80
 Second, to verify if the customer has fully understood the important
features the insurance plan chosen and whether it suits the customer's
requirement, thereby avoiding mis-sale occurrences.

81
The process of customer Welcome Calling of customer
 A welcome call is made to the customer after the application for insurance
policy has been accepted by the company.
 Before disclosing any policy related information, our Customer Service
Associate (CSA) will do a mandatory verification by asking few questions.
 If the policy holder is not available, information can be shared with a third
party who takes care of the policy holder's finances, post confirmation from
the third party that all the discussed details will be shared with the Policy
Holder.
 Once the verification is done, the CSA will inform the customer on all the
Key features of the insurance plan.
Once all the key features have been communicated, the CSA can also make
a note of any query, request or complaint by the customer.
 If the customer is not contactable despite multiple attempts, we will send a
Welcome Calling Letter to the communication address of the customer.
Physical Distributions
Distribution is a key determinant of success for all insurance companies.
Today, the nationalized insurers have a large reach and presence in India.
Building a distribution network is very expensive and time consuming.
Technology will not replace a distribution network though it will offer
advantages like better customer service. Finance companies and banks can
emerge as an attractive distribution channel for insurance in India. In

82
Netherlands, financial services firms provide an entire range of products
including bank accounts, motor, home and life insurance and pensions. In
France, half of the life insurance sales are made through banks. In India
also, banks hope to maximize expensive existing networks by selling a
range of products.
The physical evidences include signage, reports, punch lines, other
tangibles, employee‘s dress code etc.
A. Tangibles: banks give pens, writing pads to the internal customers.
Even the passbooks,chequebooks, etc reduce the inherent intangibility of
services.
B. Punch lines: punch lines or the corporate statement depict the
philosophy and attitude ofthe bank. Banks have influential punch lines to
attract the customers.
SOME CHANNEL OF DISTRIBUTIONS IN HDFC LIFE

83
• Direct Sales Manager
• Individual Sales
• ( Door to Door Marketing )
1. Direct Sales
• Business through Financial Consultants
2. Sales Development
Manager’s Induction
• Bank Relation
• ( HDFC,SBI,BOB,Andra Bank,AXIS
Bank etc...)
3. Alternative
Induction
• Group Selling
• Collabration with other Companies
4. Corporate
Induction

84
Concept of Mutual Fund
A Mutual Fund is a trust that pools the savings of a number of investors
who share
a common financial goal. The money thus collected is then invested in
capital
market instruments such as shares, debentures and other securities. The
income
earned through these investments and the capital appreciations realized are
shared
by its unit holders in proportion to the number of units owned by them.
Thus a
Mutual Fund is the most suitable investment for the common man as it
offers an
opportunity to invest in a diversified, professionally managed basket of
securities
at a relatively low cost. The flow chart below describes the working of a
mutual
fund:
SAAB MARFIN MBA
14
Mutual fund operation flow chart
Mutual funds are considered as one of the best available investments as
compare
to others. They are very cost efficient and also easy to invest in, thus by
pooling

85
money together in a mutual fund, investors can purchase stocks or bonds
with
much lower trading costs than if they tried to do it on their own. But the
biggest
advantage to mutual funds is diversification, by minimizing risk &
maximizing
returns.
Organization of a Mutual Fund
There are many entities involved and the diagram below illustrates the
organizational set up of a mutual fund
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15
V. Types of Mutual Fund schemes in INDIA
Wide variety of Mutual Fund Schemes exists to cater to the needs such as
financial
position, risk tolerance and return expectations.
Overview of existing schemes existed in mutual fund category: BY
STRUCTURE
Open - Ended Schemes: An open-end fund is one that is available for
subscription
all through the year. These do not have a fixed maturity. Investors can
conveniently
buy and sell units at Net Asset Value ("NAV") related prices. The key
feature of
open-end schemes is liquidity.

86
Close - Ended Schemes: A closed-end fund has a stipulated maturity period
which
generally ranging from 3 to 15 years. The fund is open for subscription only
during
a specified period. Investors can invest in the scheme at the time of the
initial
public issue and thereafter they can buy or sell the units of the scheme on
the
stock exchanges where they are listed. In order to provide an exit route to
the
investors, some close-ended funds give an option of selling back the units
to the
Mutual Fund through periodic repurchase at NAV related prices. SEBI
Regulations
stipulate that at least one of the two exit routes is provided to the investor.
SAAB MARFIN MBA
16
Interval Schemes : Interval Schemes are that scheme, which combines the
features
of open-ended and close-ended schemes. The units may be traded on the
stock
exchange or may be open for sale or redemption during pre-determined
intervals
at NAV related prices.

87
Overview of existing schemes existed in mutual fund category: BY
NATURE
Equity fund: These funds invest a maximum part of their corpus into
equities
holdings. The structure of the fund may vary different for different schemes
and
the fund manager’s outlook on different stocks. The Equity Funds are
sub-classified depending upon their investment objective, as follows:
-Diversified Equity Funds
-Mid-Cap Funds
-Sector Specific Funds
-Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds
rank
high on the risk-return matrix.
Debt funds : The objective of these Funds is to invest in debt papers.
Government
authorities, private companies, banks and financial institutions are some of
the
major issuers of debt papers. By investing in debt instruments, these funds
ensure
low risk and provide stable income to the investors.
Gilt Funds: Invest their corpus in securities issued by Government,
popularly

88
known as Government of India debt papers. These Funds carry zero Default
risk but
are associated with Interest Rate risk. These schemes are safer as they
invest in
papers backed by Government.
SAAB MARFIN MBA
17
Income Funds : Invest a major portion into various debt instruments such as
bonds,
corporate debentures and Government securities.
Monthly income plans ( MIPs) : Invests maximum of their total corpus in
debt
instruments while they take minimum exposure in equities. It gets benefit
of both
equity and debt market. These scheme ranks slightly high on the risk-return
matrix
when compared with other debt schemes.
Short Term Plans (STPs) : Meant for investment horizon for three to six
months.
These funds primarily invest in short term papers like Certificate of
Deposits (CDs)
and Commercial Papers (CPs). Some portion of the corpus is also invested
in
corporate debentures.

89
Liquid Funds : Also known as Money Market Schemes, These funds
provides easy
liquidity and preservation of capital. These schemes invest in short-term
instruments like Treasury Bills, inter-bank call money market, CPs and
CDs. These
funds are meant for short-term cash management of corporate houses and
are
meant for an investment horizon of 1day to 3 months. These schemes rank
low on
risk-return matrix and are considered to be the safest amongst all categories
of
mutual funds.
Balanced funds : They invest in both equities and fixed income securities,
which are
in line with pre-defined investment objective of the scheme. These schemes
aim to
provide investors with the best of both the worlds. Equity part provides
growth and
the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of
investment
parameter. It means each category of funds is backed by an investment
philosophy,
which is pre-defined in the objectives of the fund. The investor can align
his own

90
investment needs with the funds objective and can invest accordingly
By investment objective:
SAAB MARFIN MBA
18
Growth Schemes : Growth Schemes are also known as equity schemes. The
aim of
these schemes is to provide capital appreciation over medium to long term.
These
schemes normally invest a major part of their fund in equities and are
willing to
bear short-term decline in value for possible future appreciation.
Income Schemes : Income Schemes are also known as debt schemes. The
aim of
these schemes is to provide regular and steady income to investors. These
schemes
generally invest in fixed income securities such as bonds and corporate
debentures.
Capital appreciation in such schemes may be limited.
Balanced Schemes: Balanced Schemes aim to provide both growth and
income by
periodically distributing a part of the income and capital gains they earn.
These
schemes invest in both shares and fixed income securities, in the proportion
indicated in their offer documents.

91
Money Market Schemes: Money Market Schemes aim to provide easy
liquidity,
preservation of capital and moderate income. These schemes generally
invest in
safer, short-term instruments, such as treasury bills, certificates of deposit,
commercial paper and inter-bank call money.
Other schemes
Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed
from time to time. Under Sec.80C of the Income Tax Act, contributions
made to any
Equity Linked Savings Scheme (ELSS) are eligible for rebate.
SAAB MARFIN MBA
19
Index Schemes :
Index schemes attempt to replicate the performance of a particular index
such as
the BSE Sensex or the Nifty 50. The portfolio of these schemes will consist
of only
those stocks that constitute the index. The percentage of each stock to the
total
holding will be identical to the stocks index weightage. And hence, the
returns
from such schemes would be more or less equivalent to those of the Index.

92
Sector Specific Schemes:
These are the funds/schemes which invest in the securities of only those
sectors or
industries as specified in the offer documents. Ex- Pharmaceuticals,
Software, Fast
Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds
are dependent on the performance of the respective sectors/industries.
While these
funds may give higher returns, they are more risky compared to diversified
funds.
Investors need to keep a watch on the performance of those
sectors/industries and
must exit at an appropriate time.
VI. Advantages of Mutual Funds
Diversification – It can help an investor diversify their portfolio with a
minimum
investment. Spreading investments across a range of securities can help to
reduce
risk. A stock mutual fund, for example, invests in many stocks .This
minimizes the
risk attributed to a concentrated position. If a few securities in the mutual
fund
lose value or become worthless, the loss maybe offset by other securities
that

93
appreciate in value. Further diversification can be achieved by investing in
multiple
funds which invest in different sectors.
Professional Management- Mutual funds are managed and supervised by
investment professional. These managers decide what securities the fund
will buy
SAAB MARFIN MBA
20
and sell. This eliminates the investor of the difficult task of trying to time
the
market.
Well regulated- Mutual funds are subject to many government regulations
that
protect investors from fraud.
Liquidity- It's easy to get money out of a mutual fund.
Convenience- we can buy mutual fund shares by mail, phone, or over the
Internet.
Low cost- Mutual fund expenses are often no more than 1.5 percent of our
investment. Expenses for Index Funds are less than that, because index
funds are
not actively managed. Instead, they automatically buy stock in companies
that are
listed on a specific index
Transparency- The mutual fund offer document provides all the
information about

94
the fund and the scheme. This document is also called as the prospectus or
the
fund offer document, and is very detailed and contains most of the relevant
information that an investor would need.
Choice of schemes – there are different schemes which an investor can
choose from
according to his investment goals and risk appetite.
Tax benefits – An investor can get a tax benefit in schemes like ELSS
(equity linked
saving scheme)
VII. Terms used in Mutual Fund
Asset Management Company (AMC)
An AMC is the legal entity formed by the sponsor to run a mutual fund.
The AMC is
usually a private limited company in which the sponsors and their
associates or
joint venture partners are the shareholders. The trustees sign an investment
SAAB MARFIN MBA
21
agreement with the AMC, which spells out the functions of the AMC. It is
the AMC
that employs fund managers and analysts, and other personnel. It is the
AMC that
handles all operational matters of a mutual fund – from launching schemes
to

95
managing them to interacting with investors.
Fund Offer document
The mutual fund is required to file with SEBI a detailed information
memorandum,
in a prescribed format that provides all the information about the fund and
the
scheme. This document is also called as the prospectus or the fund offer
document,
and is very detailed and contains most of the relevant information that an
investor
would need
Trust
The Mutual Fund is constituted as a Trust in accordance with the provisions
of the
Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under
the
Indian Registration Act, 1908. The Trust appoints the Trustees who are
responsible
to the investors of the fund.
Trustees
Trustees are like internal regulators in a mutual fund, and their job is to
protect the
interests of the unit holders. Trustees are appointed by the sponsors, and
can be

96
either individuals or corporate bodies. In order to ensure they are impartial
and fair,
SEBI rules mandate that at least two-thirds of the trustees be independent,
i.e., not
have any association with the sponsor.
Trustees appoint the AMC, which subsequently, seeks their approval for the
work it
does, and reports periodically to them on how the business being run.
Custodian
A custodian handles the investment back office of a mutual fund. Its
responsibilities include receipt and delivery of securities, collection of
income,
distribution of dividends and segregation of assets between the schemes. It
also
track corporate actions like bonus issues, right offers, offer for sale, buy
back and
SAAB MARFIN MBA
22
open offers for acquisition. The sponsor of a mutual fund cannot act as a
custodian
to the fund. This condition, formulated in the interest of investors, ensures
that the
assets of a mutual fund are not in the hands of its sponsor. For example,
Deutsche

97
Bank is a custodian, but it cannot service Deutsche Mutual Fund, its mutual
fund
arm.
NAV
Net Asset Value is the market value of the assets of the scheme minus its
liabilities.
The per unit NAV is the net asset value of the scheme divided by the
number of
units outstanding on the Valuation Date.The NAV is usually calculated on a
daily
basis. In terms of corporate valuations, the book values of assets less
liability.
The NAV is usually below the market price because the current value of the
fund’s
assets is higher than the historical financial statements used in the NAV
calculation.
Market Value of the Assets in the Scheme + Receivables + Accrued Income
- Liabilities - Accrued Expenses
NAV =
----------------------------------------------------------------------------
--------------------
No. of units outstanding
Where,
Receivables: Whatever the Profit is earned out of sold stocks by the Mutual
fund is

98
called Receivables.
Accrued Income: Income received from the investment made by the Mutual
Fund.
Liabilities: Whatever they have to pay to other companies are called
liabilities.
Accrued Expenses: Day to day expenses such as postal expenses, Printing,
Advertisement Expenses etc.
SAAB MARFIN MBA
23
Calculation of NAV
Scheme ABN
Scheme Size Rs. 5, 00, 00,000 (Five Crores)
Face Value of Units Rs.10/-
Scheme Size 5, 00, 00,000
--------------------------- = ------------------- = 50,
00,000
Face value of units 10
The fund will offer 50, 00,000 units to Public.
Investments: Equity shares of Various Companies.
Market Value of Shares is Rs.10, 00, 00,000 (Ten Crores)
Rs. 10, 00, 00,000
NAV = -------------------------- = Rs.20/-
50, 00,000 units
Thus each unit of Rs. 10/- is Worth Rs.20/-

99
It states that the value of the money has appreciated since it is more than
the face
value.
Sale price
Is the price we pay when we invest in a scheme. Also called Offer Price. It
may
include a sales load.
Repurchase price
SAAB MARFIN MBA
24
Is the price at which units under open-ended schemes are repurchased by
the
Mutual Fund. Such prices are NAV related
Redemption Price
Is the price at which close-ended schemes redeem their units on maturity.
Such
prices are NAV related
Sales load
Is a charge collected by a scheme when it sells the units. Also called,
‘Front-end’
load. Schemes that do not charge a load are called ‘No Load’ schemes.
Repurchase or ‘Back-end’ Load
Is a charge collected by a scheme when it buys back the units from the unit
holders
CAGR (compounded annual growth rate)

100
The year-over-year growth rate of an investment over a specified period of
time.
The compound annual growth rate is calculated by taking the nth root of the
total
percentage growth rate, where n is the number of years in the period being
considered.
SAAB MARFIN MBA
25
VIII. Fund Management
Actively managed funds:
Mutual Fund managers are professionals. They are considered professionals
because of their knowledge and experience. Managers are hired to actively
manage
mutual fund portfolios. Instead of seeking to track market performance,
active
fund management tries to beat it. To do this, fund managers "actively" buy
and sell
individual securities. For an actively managed fund, the corresponding
index can
be used as a performance benchmark.
Is an active fund a better investment because it is trying to outperform the
market?
Not necessarily. While there is the potential for higher returns with active
funds,

101
they are more unpredictable and more risky. From 1990 through 1999, on
average,
76% of large cap actively managed stock funds actually underperformed
the S&P
500. (Source - Schwab Center for Investment Research)
Actively managed fund styles:
SAAB MARFIN MBA
26
Some active fund managers follow an investing "style" to try and maximize
fund
performance while meeting the investment objectives of the fund. Fund
styles
usually fall within the following three categories.
Fund Styles :
Value: The manager invests in stocks believed to be currently undervalued
by
the market.
Growth: The manager selects stocks they believe have a strong potential for
beating the market.
Blend: The manager looks for a combination of both growth and value
stocks.
To determine the style of a mutual fund, consult the prospectus as well as
other
sources that review mutual funds. Don't be surprised if the information
conflicts.

102
Although a prospectus may state a specific fund style, the style may
change. Value
stocks held in the portfolio over a period of time may become growth
stocks and
vice versa. Other research may give a more current and accurate account of
the
style of the fund.
Passively Managed Funds :
Passively managed mutual funds are an easily understood, relatively safe
approach
to investing in broad segments of the market. They are used by less
experienced
investors as well as sophisticated institutional investors with large
portfolios.
Indexing has been called investing on autopilot. The metaphor is an
appropriate
one as managed funds can be viewed as having a pilot at the controls.
When it
comes to flying an airplane, both approaches are widely used.
a high percentage of investment professionals, find index investing
compelling for
the following reasons:
Simplicity. Broad-based market index funds make asset
allocation and diversification easy.
SAAB MARFIN MBA

103
27
Management quality. The passive nature of indexing eliminates any
concerns
about human error or management tenure.
Low portfolio turnover. Less buying and selling of securities means lower
costs and fewer tax consequences.
Low operational expenses. Indexing is considerably less expensive than
active fund management.
Asset bloat. Portfolio size is not a concern with index funds.
Performance. It is a matter of record that index funds have outperformed
the
majority of managed funds over a variety of time periods.
You make money from your mutual fund investment when :
The fund earns income on its investments, and distributes it to you in the
form of dividends.
The fund produces capital gains by selling securities at a profit, and
distributes those gains to you.
You sell your shares of the fund at a higher price than you paid for them
IX. Risk
Every type of investment, including mutual funds, involves risk. Risk refers
to the
possibility that you will lose money (both principal and any earnings) or
fail to
make money on an investment. A fund's investment objective and its
holdings are

104
influential factors in determining how risky a fund is. Reading the
prospectus will
help you to understand the risk associated with that particular fund.
Generally speaking, risk and potential return are related. This is the
risk/return
trade-off. Higher risks are usually taken with the expectation of higher
returns at
the cost of increased volatility. While a fund with higher risk has the
potential for
SAAB MARFIN MBA
28
higher return, it also has the greater potential for losses or negative returns.
The
school of thought when investing in mutual funds suggests that the longer
your
investment time horizon is the less affected you should be by short-term
volatility. Therefore, the shorter your investment time horizon, the more
concerned you should be with short-term volatility and higher risk.
Defining Mutual fund risk
Different mutual fund categories as previously defined have inherently
different
risk characteristics and should not be compared side by side. A bond fund
with
below-average risk, for example, should not be compared to a stock fund
with

106
CONCLUSION
Introduction
1. It has got 3rd rank in the investment management, in year 2006One of the
largest financial institution of
2. India with more then 2 million satisfied customer base.
3. The most successful and admired life insurance Company, which means
that we are the most trusted Company, the easiest to deal with, offer the
best value for money, and set the standards in the industry. In short, “The
most obvious choice for all
Financial analysis is important aspect of financial management. The study
of financial managementat HDFC LIFE LTD. has revealed that the current
ratio was as per the standard industrial practice but the liquidity position of
the company showed an increasing trend.

107
Finance department
1. The proprietary ratios shows efficient capital structure. Considering the
turnover ratios, the management having effective collection system and low
investment in stocks.
2. The Depreciation under Companies Act for Computers is 16.21 % (SLM).
However, the rate adopted by us is 25 % SLM.
3. Machinery and Plant other than the specified – 15 % (applicable to A/C,
4. Current ratio of HDFC LIFE insurance, has 0.63:1 It also indicates the
sound solvency of the company is higher.
5. The net profit ratio in 2009 was 21.58% and in 2010 is 22.09% therefore
the net profit is increasing. The company have good profit margin. The
company should more and more profit for the future.
6. Issued Capital were 17,960,000 and in current year increase by 17,20,000
so as compare to the previous year increase by 9.57 %

108
RECOMMENDATION AND SUGGSTION

109
RECOMMENDATIONS
The HDFC company should now try to identify the gap between current
level of customer service and customer expectations. Some of the
strategies being recommended are as follows:
 Brand Building:
HDFC is a very huge Brand in US in Insurance but in India it is not known
as a Insurance brand. So HDFC need to focus on Brand building Activities
which can be done through Advertising, Road shows, Knops, Sponsoring
Events in rural & Urban Areas.
 Educating the Consumers:
HDFC should take initiative to educate the consumers regarding all these
aspects & take competitive Advantage on this front as its Allocation
charges are minimum in the whole Indian Insurance Industry.
 Need to Increase Market Presence:
It should make more channel partners & do business tie ups with more
broking houses & should hire marketing agencies for aggressive marketing
purpose. It can also increase its Business Units.
 Concentration More On Rural Areas :
HDFC need to concentrate more towards the rural areas as 60-70% of
India population is living in rural areas and most of the people in rural
areas are not insured so there is a huge potential in the rural sector.

110
 Product Differentiation:
Offering a product that is distinctly different from other products available
in the market by other insurance players.
 More Guaranteed Plans to be Introduced:
As we know today the stock market is giving very less return even in last
year the return comes Negative so the company need to introduce some
more granted plans so that customer can invest in them and have assured
return on them which ultimately is an edge in competition in insurance
sector.
 Need to commence Medical claim Products and General Insurance :
There are very less which are having Medical claim products and also very
less companies providing General Insurance with Life Insurance for
example ICICI , Reliance and Bajaj Allianz so HDFC also need to come in
General Insurance business so that they can compete with these players.
 Flexibility:
The companies should make their products flexible for the convenience of
their customer.
 Hassle Free Service:

111
All bureaucracy in customer interactions should be eliminated.
 Proper Policy Documentation:
Wrong interpretations/ non-awareness of policy document by the customer
may have serious implications in the long term and the possibility of the
same should be alleviated by the company which leads to.

112
Recommendation can be use by the firm for the betterment increased of the
firm after study and analysis of project report on study and analysis of
working capital. I would like to recommend.
1. Company should raise funds through short term sources for short term
requirement of funds, which comparatively economical as compare to long
term funds.
2. Company should take control on debtor’s collection period which is
major part of current assets.
3. Company has to take control on cash balance because cash is non earning
assets and increasing cost of funds.
4. Company should reduce the inventory holding period with use of zero
inventory concepts.
Over all company has good liquidity position and sufficient funds to
repayment
of liabilities. Company has accepted conservative financial policy and thus
maintaining more current assets balance. Company is increasing sales
volume per year which supported to company for sustain 2nd position in
the world and number one position in Asia.

113
SUGGESTIONS:
The company should try to increase his financial performance in the future.
The company should try to increased his product cycle.
Stable Managed fund & Secure Managed Fund provide low return. but less
risk in Stable Managed fund & Secure Managed Fund.
Most of the people are not aware about HDFC STANDARD LIFE INSURANCE
CO.LTD so they have to advertise their company and their product.
HDFC LIFE INSURANCE CO.LTD focuses on the urban area so now they have
to focus on rural area also.
HDFC LIFE INSURANCE CO.LTD should try to increase awareness of their
UNIT LINK PLAN
The company should increase their distribution network.

115
QUESTIONNAIRE
PERSONAL DETAILS:
Name:
Mobile Number:
Adress:_________________________________________
______________
_______________________________________________
______________
_______________________________________________
______________
_______________________________________________
______________
_______________________________
Occupation: _____________________
Age: ____________________________

116
1. Of the following what at present are your investment needs?
a. To build a corpus for retirement
b. To save for children education/ marriage
c. To provide for medical emergencies
d. To provide for family financial security
e. To create wealth
f. All of the above
2. Which of the following you think as investment for tax- saving?
a. Mutual funds
b. Fixed deposit
c. Insurance
d. Ppf
e. All of the above
3. Have you ever been invested in mutual funds?
a. Yes b. No

117
4. Have you ever been invested in ulip insurance plans?
a. Yes b. No
5. If you had Rs 1000/- where you prefer to invest
a. Mutual fund
b. Fixed deposit
c. Direct equity
d. Life insurance
e. Postal office deposit
6. Out of the following in which Mutual Fund you have invested?
a) HDFC
b) Tata Mutual Fund . 
c) Franklin Templeton . 
d) Reliance . 
e) ICICI Prudential . 
f) SBI . 
g) Other If any ,Please Specify

118
7. Out of the following company which company ulip plans you
have invested?
a) HDFC LIFE. 
b) Tata AIG . 
c) BAJAJ ALLIANZE . 
d) Reliance . 
e) ICICI Prudential . 
f) SBI LIFE. 
g) Other If any ,Please Specify
8. To how much extent are you satisfied with the services offered by
HDFC LIFE regardingULIP INVESTMENT PLANS?
a) Exteremly satisfied.
b) Satisfied to the lesser extent
d) Dissatisfied to lesser extent
e) Extremely dissatisfied.
9. Do you prefer GROWTH FUND OR DIVERSIFY YOUR MONEY
in various fund?
a) growth fund 
b) diversify funds 
c) Depends upon the risk bearing condition 

120
BIBLOGRAPHY
Books Referred
1. Maheshwari, S.N.; Financial Managemen, Principles and Practice, Sultan
Chand & sons, 9th Edition 2004.
2. Maheshwari, S.N.; Elements of Financial Management, Sultan Chand &
Sons, 2003 7th Edition.
3. Pandey, I.M.; Financial Management, Vikas Publishing House, 8th Edition,
2001.
4. .Author:Evertt.E.AdamProduction and opration management prentice hall
5th
edition
Websites References
www.hdfclife.com/
www.bimadeals.com › Life Insurance › Life Insurance Companies
www.myinsuranceclub.com › Life Insurance › Companies
www.indiancustomers.in/company/hdfc-standard-life

121
www.hdfclife.com/Children'sPlans/child-insurance-plans.
www.hdfclife.com/savingsplans/WholeLife

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