data analysis and interpretation

4.ANALYSIS OF DATA

INTRODUCTION:

There is always a time gap between the sale of goods and services and the receipt of

sale proceeds. During this period, fund is needed for sustaining the sale activities. If

adequate fund is not maintained for this period, the firm will not be in a position to

purchase raw materials and pay wages and other expenses, and produce the goods

required for the sale. Thus this is the need to study flow of funds.

This chapter contains the analysis of financial statement of HDFC LIFE. The analysis

is carried out by using fund flow analysis, the data for which was obtained from

previous 5 years reports of the company.

DATA ANALYSIS

Data Analysis is a technique of financial management to find out the growth and other crucial

aspects relating to the changes that take place in an organization. To put it in simple words

this method of finance is the study of inflow and outflow of each item of financial statement

has to be compared to the same item of the base year.

This type of analysis is of crucial importance to watch the direction of change over a period

of certain years. Through this analysis the analyst seek to review of changes that have taken

place in individual categories therein from year to year over a span of time. One greatest advantage in the analysis of flow of fund is that it focuses attention on the problems faced by

the concern in achieving its targets and commitments.

The following pages contain the tabular and graphical representation of data collected for the

purpose of analysis and interpretation of the fund flow statement.

The analysis is made for a period of four years from 2009-2012.

Analyzing financial statements is a process of evaluating relationships between component

parts of financial statements to obtain a better understanding of a firm’s financial position.

The items or figures found in financial statements will not be of much use if they are

considered individually. They will be very useful only when one item is considered in the

light of another item. Therefore the item can be compared with another item. The following

contains the tabular and graphical representation through data analysis.

Analysis done by two ways:-

1. Year wise analysis.

2. Summarise analysis of each transaction.

4.1YEAR BY YEAR ANALYSIS

FUND FLOW ANALYSIS FOR THE YEAR 2012-13

TABLE :- SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR

31ST MARCH 2013.

PARTICULARS 2012 2013 EFFECTS ON WORKING CAPITAL

INCREASE DECREASE

CURRENT ASSETS:-

CASH & BANK BALANCE 5,475,639 9,854,726 4,379,087 -

LOANS & ADVANCES 7,433,556 7,267,309 - 166,247

TOTAL CURRENT ASSETS (A) 12,909,195 17,122,035

CURRENT LIABILITIES &

PROVISIONS:-

CURRENT LIABILITIES 15,002,656 17,224,644 - 2,221,988

PROVISION FOR TAX) 136,754 289,511 - 152,757

TOTAL CURRENT LIABILITIES(B) 15,139,410 17,514,155

WORKING CAPITAL (A-B) -2,230,215 -392,120

NET INCREASE IN WORKING

CAPITAL (B/F)1,838,095 - - 1,838,095

TOTAL -392,120 -392,120 4,379,087 4,379,087

TABLE:- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR

31ST MARCH 2013

PARTICULAR AMOUNT

CURRENT ASSETS

CASH & BANK BALANCE 9,854,726

LOANS & ADVANCES 7,267,309

CURRENT LIABILITIES

CURRENT LIABILITIES 17,224,644

PROVISION FOR TAX 289,511

GRAPH :- SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE

YEAR 31ST MARCH 2013

CASH & BANK BALANCE

LOANS & ADVANCES CURRENT LIABILITIES PROVISION FOR TAX0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

CURRENT ASSET & CURRENT LIABILITY

Axis

Title

ANALYSIS:-

TABLE : HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR

31ST MARCH 2013

SOURCES OF FUNDS AMOUNT(RS) APPLICATION OF FUNDS AMOUNT(RS)

POLICY PREMIUN INCOME

(INCLUDING FAIR VALUE CHANGE)25,459,733 REDEMPTION OF LOAN 467,679

TOTAL PROVISION FOR LINKED

LIABILITY((INCLUDING FAIR VALUE

CHANGE)

42,901,704

INVESTMENT (INCLUDING

SHAREHOLDERS AND POLICY

HOLDERS )

77,047,892

FUNDS FROM REVIVAL OF POLICY 1,882,211REDEMPTION OF SHREHOLDERS

FUND55,519

FUNDS FROM OPERATION 4,514,791 PURCHASE FIXED ASSET 281,725

FUNDS FROM DISCONTINUED

POLICIES4,331,169 INCREASE IN WORKING CAPITAL 1,838,095

MISCELANEOUS INCOME 601,302

TOTAL 79,690,910 TOTAL 79,690,910

TABLE:- SHOWING SOURCES AND APPLICATION FUNDS FOR THE YEAR 31ST

MARCH 2013

SOURCES OF FUNDS AMOUNT

POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) 25,459,733

FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) 42,901,704

MISCELLANEOUS INCOME 601,302

FUNDS FROM REVIVAL OF POLICIES 1,882,211

FUNDS FROM OPERATIONS 4,514,791

FUNDS FROM DISCONTINUIED POLICIES 4,331,169

APPLICATION OF FUNDS AMOUNT

REDEMPTION OF LOAN 467,679

INVESTEMENT77,047,89

2

REDEMPTION OF SHREHOLDERS FUND 55,519

PURCHASE FIXED ASSET 281,725

INCREASE IN WORKING CAPITAL 1,838,095

GRAPH :- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS FOR

THE YEAR 31ST MARCH 2013

25,459,733

42,901,704

1,882,211

4,514,791

4,331,169 601,302

SOURCES OF FUNDS

POLICY PREMIUN INCOME (IN-CLUDING FAIR VALUE CHANGE)FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE)FUNDS FROM REVIVAL OF POLICIESFUNDS FROM OPERATIONSFUNDS FROM DISCONTINUED POLICIESMISCELANEOUS INCOME

77,047,892

APPLICATION OF FUNDS

REDEMPTION OF LOANINVESTEMENTREDEMPTION OF SHREHOLDERS FUNDPURCHASE FIXED ASSETINCREASE IN WORKING CAPITAL

INTERPRETATION:-

TABLE:- SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR

31ST MARCH 2012.


INCREASE DECREASE

CURRENT ASSETS:-

CASH & BANK BALANCE 3,837,312 5,475,639 1,638,327 -

LOANS & ADVANCES 6,770,283 7,433,556 663,273 -

TOTAL CURRENT ASSETS (A) 10,607,595 12,909,195

CURRENT LIABILITIES &

PROVISIONS:-

CURRENT LIABILITIES 13,037,550 15,002,656 - 1,965,106

PROVISION FOR TAX) 150,102 136,754 13,348

TOTAL CURRENT LIABILITIES(B) 13,187,652 15139410

WORKING CAPITAL (A-B) -2,580,057 -2,230,215

NET INCREASE IN WORKING

CAPITAL (B/F)349,842 - - 349,842

TOTAL -2,230,215 -2,230,215 2,314,948 2,314,948

TABLE :- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST

MARCH 2012

PARTICULARS AMOUNT

CURRENT ASSETS



CURRENT LIABILITIES

CURRENT LIABILITIES 1,50,02,656

PROVISION FOR TAX 136754

GRAPH :- SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE


CASH & BANK BALANCE


2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000


Axis

Title

ANALYSIS:-

From the above table and graph, it is clear that the company has increases its working capital

in the form of Cash & bank balance and Loans & advances by Rs. 1,638,327; & Rs. 663,273.

The company has increases its working capital in the form of Current liabilities by Rs.

1,965,106& decreases Provision for tax Rs.13, 348. There will be net increase in working

capital by Rs. 16,999,894.

TABLE :- HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR

31ST MARCH 2012

SOURCES OF FUNDS AMOUNT(RS) APPLICATION OF FUNDS AMOUNT(RS)


(INCLUDING FAIR VALUE CHANGE)22,306,448

INVESTEMENT (INCLUDING

SHAREHOLDERS&POLICY

HOLDERS)

56,313,938



CHANGE)

29,813,421REDEMPTION OF SHREHOLDERS

FUND57,224

RECOVERY OF LOAN 13,611 PURCHASE FIXED ASSET 399,722

FUNDS FROM REVIVAL OF POLICY 131,219 INCREASE IN WORKING CAPITAL 349,842

FUNDS FROM OPERATION 2,710,154


POLICIES1,053,248

MISCELANEOUS INCOME 1,092,625

TOTAL 57,120,726 TOTAL 57,120,726

TABLE-4:- SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE



POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) 22,306,448

FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) 29,813,421

MISCELLANEOUS INCOME 1,092,625

RECOVERY OF LOAN 13,611

FUNDS FROM REVIVAL OF POLICIES 131,219

FUNDS FROM OPERATIONS 2,710,154

FUNDS FROM DISCONTINUIED POLICIES 1,053,248

APPLICATION OF FUNDSINVESTEMENT 56,313,938

REDEMPTION OF SHREHOLDERS FUND 57,224

PURCHASE FIXEDASSET 399,722

INCREASE IN WORKING CAPITAL 349,842

GRAPH 2:- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS FOR


39%

52%

0%0%

5%

2% 2%

SOURCES OF FUNDS

POLICY PREMIUN INCOME (IN-CLUDING FAIR VALUE CHANGE)

FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE)

RECOVERY OF LOAN FUNDS FROM REVIVAL OF POLICIES

FUNDS FROM OPERATIONS FUNDS FROM DISCONTINUED POLICIES

MISCELANEOUS INCOME

99%


INVESTEMENTREDEMPTION OF SHREHOLDERS FUNDPURCHASE FIXEDASSETINCREASE IN WORKING CAPITAL

INTERPRETATION:-

From the above statement it is clear that company has increased its working capital by Rs.

16,999,894 in the year 2011-12. The profit percentage has shown a constant growth from

the past year and has also grown at a healthy rate for the accounting year 2011-12. Debit

balance of P&L a/c for the year 2011-12 are Rs.2710154. Debit balance of P&L a/c is

showing a good sign for the company as out of total funds a major part was raised from cash

profit. The company has also lended l oans w h ich show tha t t he s o lvenc y

pos i t i on o f t he company i s favorable. The company has also diverted its funds

appropriately in proper channels like purchase of various fixed assets, which in turn

increases the overall growth of the organization.

The company has paid sufficient amount of dividends to its shareholders and has also

transferred reasonable amount of cash to its reserves & surplus account. To meet

its capital expenditures the company has also raised own funds and invested maximum.

TABLE 5:- SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR

31ST MARCH 2011

PARTICULARS 2010 2011 EFFECTS ON WORKING

CAPITAL

INCREASE DECREASE

CURRENT ASSETS:-

CASH & BANK BALANCE 3,030,176 38,37,312 807,136 --

LOANS & ADVANCES(A) 4,917,758 67,70,283 1,852,525

TOTAL CURRENT ASSETS 7947934 106,07,595

CURRENT LIABILITIES & PROVISIONS:-

CURRENT LIABILITIES 12,485,399 1,30,37,550 552,151

PROVISION FOR TAX(B) 187,617 150,102 37,515

TOTAL CURRENT LIABILITIES 12,673,016 13,187,652

WORKING CAPITAL (A-B) -4,725,082 -2,580,057

NET INCREASE IN WORKING CAPITAL

(B/F)2,145,025 2,145,025

TOTAL -2,580,057 -2,580,057 2,697,176 2,697,176

TABLE:- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR

31ST MARCH 2011

PARTICULAR AMOUNT

CURRENT ASSTES



CURRENT LIABILITIES

CURRENT LIABILITIES 1,30,37,550


GRAPH:- SHOWING CURRENT ASSETS AND CURRENT LIABILITIES FOR THE


CASH & BANK BALANCES

LOANS & ADVANCES CURRENT LIABILITY PROVISION FOR TAX0

2000000

4000000

6000000

8000000

10000000

12000000

14000000


Axi

s Ti

tle

ANALYSIS

From the above table & graph, it is clear that the company has increases its working capital in

the form of Cash & bank balance and Loans & advances by Rs. 807136; & Rs. 1852525. The

company has decreases its working capital in the form of Current liabilities by Rs. 552151&

increases provision for tax Rs. 37515. There will be net increase in working capital by Rs.

2145025.

TABLE :- HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR

31ST MARCH 2011

SOURCES OF FUNDSAMOUNT

(RS.)APPLICATION OF FUNDS

AMOUNT

(RS.)


(INCLUDING FAIR VALUE CHANGE)13345883

INVESTEMENT(INCLUDING

SHAREHOLDERS&POLICY

HOLDERS)

60642945

TOTAL PROVISION FOR

LINKEDLIABILITY((INCLUDING FAIR

VALUE CHANGE)

50013536 REDEMPTION OF LOAN 290873

TRANSFER TO RESERVE 1469113 PURCHASE FIXED ASSET 1251952

ISSUE OF SHARES 268801 INCREASE IN WORKING CAPITAL 2145025

FUNDS FROM REVIVED POLICY 1917410 LOSS FROM OPERTIONS 990021


POLICIES -

DEFICIT BALANCE IN THE

REVENUE A/C1693927

TOTAL 67014743 TOTAL 67014743

TABLE:- SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE YEAR

31ST MARCH 2011


POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) 13345883

FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) 50013536

TRANSFER TO RESERVE 1469113

ISSUES OF SHARES 268801

FUNDS FROM REVIVED POLICY 1917410

APPLICATION OF FUNDS AMOUN

T

INVESTEMENT 60642945

REDEMPTION OF LOAN 290873

PURCHASE OF FIXED ASSET 1251952

INCREASE IN WORKING CAPITAL 2145025

LOSS FROM OPERATIONS 990021

DEFICIT BALANCE IN THE REVENUE A/C 1693927

GRAPH 4:- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS IN

THE YEAR 2011-12.

20%

75%

2% 0%3%

SOURCES OF FUNDS

POLICY PREMIUN INCOME (IN-CLUDING FAIR VALUE CHANGE)FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE)TRANSFER TO RESERVEISSUES OF SHARESFUNDS FROM REVIVED POLICY

90%

0% 2%3%

1%3%


INVESTEMENTREDEMPTION OF LOANPURCHASE OF FIXED ASSETINCREASE IN WORKING CAPITALLOSS FROM OPERATIONSDEFICIT BALANCE IN THE REVENUE A/C

. INTERPRETATION: -

From the above statement it is clear that company has increased its working capital by Rs.

2145025 in the year 2010-11. The profit percentage has shown a constant growth from

the past year and has also grown at a healthy rate But for the accounting year 2010-11., it is

showing credit balance of P&L a/c by Rs. 990021.Credit balance of P&L a/c is showing not a

good sign for the company as out of total funds a major part was raised from policy premium.

The company has also lended loans w h ich s how tha t t he s o lvenc y pos i t i on o f

t he compa ny i s favorable. The company has also diverted its funds appropriately in

proper channels like purchase of various fixed assets and major part in investment

which in turn increases the overall growth of the organization.

The company has paid sufficient amount of dividends to its share holders and has also

transferred reasonable amount of cash to its reserves & surplus account. To meet

its

Capital expenditures the company has also raised funds from revival of lapsed policies and

Invested maximum.

TABLE 9:-SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR

31ST MARCH 2010.


INCREASE DECREASE

CURRENT ASSETS

CASH & BANK BALANCE 4108660 2826362 1282298

LOANS & ADVANCES 5428699 4917758 510941

TOTAL CURRENT ASSETS(A) 9537359 7744120

CURRENT LIABILITIES & PROVISIONS

CURRENT LIABILITY 8820225 12281585 3461360

PROVISION FOR TAX 208813 187617 21196

TOTAL CURRENT LIABILITIES(B) 9029038 12469202

WORKING CAPITAL (A-B) 508321 -4725082

NET DECREASE IN WORKING CAPITAL

(B/F)5254599 5233403

TOTAL 508321 508321 5254599 5254599

TABLE 10:-CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST

MARCH 2010

PARTICULAR AMOUNT

CURRENT ASSETS

CASH & BANK BALANCES 2826362

LOANS & ADVANCES 4917758

CURRENT LIABILITIES

CURRENT LIABILITIES 12281585


GRAPH 5: SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE


CASH & BANK BALANCE


2000000

4000000

6000000

8000000

10000000

12000000

14000000


Axi

s Ti

tle

ANALYSIS:-

From the above table & graph, it is clear that the company has decreases its working capital

in the form of Cash & bank balance and Loans & advances by Rs. 1,282,298 & Rs. 510,941.

The company has decreases its working capital in the form of Current liabilities by Rs.

3,461,360& increases Provision for tax Rs. 250,283. There will be net decrease in working

capital by Rs. 21,196.

TABLE 11: HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR

31ST MARCH 2010



AMOUNT

(RS.)

ISSUE OF SHARE CAPITAL 1721820


SHAREHOLDERS&POLICY

HOLDERS)

101710679



CHANGE)

86434864 PAYMENT OF LOAN 10118

POLICY LIABILITY 9076461 LOSS FROM OPERATIONS 2751844


REVIVAL OF POLICY 1436479

DECREASE IN WORKING CAPITAL 5233403

SALE OF FIXED ASSET 307569

TOTAL 104472641 TOTAL 104472641

TABLE 12:- SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE



ISSUE OF SHARE CAPITAL 1721820

TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) 86434864

POLICY LIABILITY 9076461


REVIVAL OF POLICY 1436479


SALE OF FIXED ASSET 307569

APPLICATION OF FUNDS AMOUNT


PAYMENT OF LOAN 10118




1721820

86434864

9076461

26204514364795233403 307569

SOURCES OF FUNDS

ISSUE OF SHARE CAPITAL TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE)

POLICY LIABILITY TRANSFER TO RESERVEREVIVAL OF POLICY DECREASE IN WORKING CAPITALSALE OF FIXED ASSET

101710679

10118 2751844


INVESTEMENTPAYMENT OF LOAN LOSS FROM OPERATIONS

INTERPRETATION:- from the above statement it is clear that company has decreased its

working capital by Rs. 5,233,403 in the year 2009-10. The profit percentage has shown a

constant growth from the past year and has also grown at a healthy rate But for the

accounting year 2009-10.,it is showing credit balance of P&L a/c by Rs. 2,751,844.Credit

balance of P&L a/c is showing not a good sign for the company. As out of total funds a

major part was raised from policy premium. The company has also lended l oans w h ich

show tha t t he so l vency pos i t i on o f t he c ompany i s favorable. The company

has also diverted its funds appropriately in proper channels like investment which in turn

increases the overall growth of the organization.


Transferred reasonable amount of cash to its reserves & surplus account. To

meet its


Invested maximum.

TABLE 13:-SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR

31ST MARCH 2009.


INCREASE DECREASE

CURRENT ASSETS:-

CASH & BANK BALANCE 4493238 4108660 384578

LOANS & ADVANCES 4082489 5534969 1452480

TOTAL CURRENT ASSETS(A) 8575727 9643629

CURRENT LIABILITIES & PROVISIONS :-

CURRENT LIABILITIES 6129149 8820225 2691076

PROVISION FOR TAX 122019 208813 86794

TOTAL CURRENT LIABILITIES(B) 6251168 9029038

WORKING CAPITAL (A-B) 2324559 614591

NET DECREASE IN WORKING CAPITAL

(B/F)1709968 1709968

TOTAL 3162448 3162448

TABLE 14:- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 2009

PARTICULAR AMOUNT

CURRENT ASSETS

CASH & BANK BALANCE 4108660

LOANS & ADVANCES 5534969

CURRENT LIABILITIES

CURRENT LIABILITIES 8820225


GRAPH 7:-SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE


CASH & BANK BALANCES

LOANS & ADVANCES CURRENT LIABILITY PROVISION FOR TAX0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000


Axis

Title

ANALYSIS:-

From the above table & graph, it is clear that the company has decreases its working capital

in the form of Cash & bank balance by Rs. 384,578 and increases in Loans & advances by

Rs. 1,452,480.The company has decreases its working capital in the form of Current

liabilities by Rs. 2,691,076 & Provision for tax Rs. 86,794. There will be net decrease in

working capital by Rs. 1,709,968.

TABLE 15:- HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR

31ST MARCH 2009



AMOUNT

(RS)


(INCLUDING FAIR VALUE CHANGE)4235042


SHAREHOLDERS&POLICY

HOLDERS)

16160939



CHANGE)

9331352 LOAN 11630

ISSUE OF SHARES 5251821 PURCHASE FIXED ASSET 115906

FUNDS FROM REVIVAL OF POLICY 871414 LOSS FROM OPERATIONS 5111122


TOTAL 21399597 TOTAL 21399597

TABLE 16:-SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE


SOURCES OF FUNDS

POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) 4235042

TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) 9331352

ISSUE OF SHARES 5251821

FUNDS FROM REVIVAL OF POLICY 871414




LOAN 11630

PURCHASE Fixed asset 115906




20%

44%

25%

4% 8%

SOURCES OF FUNDS

POLICY PREMIUN INCOME (IN-CLUDING FAIR VALUE CHANGE)

TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE)

ISSUE OF SHARES FUNDS FROM REVIVAL OF POLICY DECREASE IN WORKING CAPITAL

76%

0%1%

24%


INVESTEMENT LOANPURCHASE Fixed assetLOSS FROM OPERATIONS

INTERPRETATION:-

From the above statement it is clear that company has decreased its working capital by

Rs.1,709,968 in the year 2008-09. The profit percentage has shown a constant growth from

the past year and has also grown at a healthy rate but for the accounting year 2008-09, it is

showing loss from operations by Rs. 5111122. Loss from operation is showing not a good

sign for the company. As out of total funds a major part was raised from policy premium. The

company has also lended l oans w h ich show tha t t he s o lvenc y pos i t i on o f t he

compa ny i s favorable. The company has also diverted its funds appropriately in proper

channels like investment and purchase of fixed asset which in turn increases the

overall growth of the organization.


Transferred reasonable amount of cash to its reserves & surplus account. To meet its


Investment was maximum.

4.2 SUMMARISE ANALYSIS OF EACH TRANSACTION

CURRENT ASSET

TABLE 17: SHOWING DATA 0F CURRENT ASSETS (IN RS.)

YEAR2013 2012 2011 2010 2009

CASH AND BANK

BALANCES

9854726 5475639 3837312 2826362 4108660

ADVANCES AND OTHER

ASSETS

7267309 7433556 6770283 4917758 5534969

TOTAL (A)17122035 12909195 10607595 7744120 9643629

ANALYSIS:-

GRAPH 9:SHOWING CHANGE IN CURRENT ASSET FROM THE YEAR 2009 TO

2013 (IN RS.)

2008-09 2009-10 2010-11 2011-12 2012-13

-5000000

0

5000000

10000000

15000000

20000000

0-1899509

2863475

2301600 4212840

TOTAL CURRENT ASSETS FROM THE YEAR 2009 TO 2013(IN RS.)

INTERPRETATION:-

CURRENT LIABILITY

TABLE 18: SHOWING DATA IN CURRENT LIABILITY (IN RS.)

YEAR

2013 2012 2011 2010 2009

CURRENT LIABILITY

17224644 15002656 13037550 12281585 8820225

PROVISIONS

289511 136754 150102 187617 208813

TOTAL (B)

17514155 15139410 13187652 12469202 9029038

ANALYSIS:

GRAPH 10:SHOWING CHANGE IN CURRENT LIABILITY FROM THE YEAR

2008 TO 2012 (IN RS.)

2007-08 2008-09 2009-10 2010-11 2011-120

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

0

2777870 3440164 718450 1951758

TOTAL CURRENT LIABILITIES FROM THE YEAR 2008 TO 2012(IN RS.)

Axis

Title

. INTERPRETATION:-

NET CURRENT ASSET

TABLE 19: SHOWING DATA IN NET CURRENT ASSETS (IN RS.)

YEAR2013 2012 2011 2010 2009

NET CURRENT ASSET (A-B)-392120 -2230215 -2580057 -4725082 614591

ANALYSIS:

GRAPH 11: SHOWING CHANGES IN NET CURRENT ASSETS FROM THE YEAR

2009 TO 2013 (IN RS.)

2007-08 2008-09 2009-10 2010-11 2011-12

-6000000

-5000000

-4000000

-3000000

-2000000

-1000000

0

1000000

2000000

3000000

0

-1709968

-4110491

2145025

349842

TOTAL CURRENT ASSETS FROM THE YEAR 2008 TO 2012(IN RS.)

Axi

s Tit

le

INTERPRETATION:-

SHAREHOLDER’S FUND

TABLE 20: SHOWING DATA IN SHAREHOLDER’S FUND (IN RS.)

YEAR

2013 2012 2011 2010 2009

SHARE CAPITAL

19948801 19948801 19948801 19680000 17958180

RESERVE AND SURPLUS

2197045 2201376 2206790 552892 552892

FAIR VALUE CHANGE A/C

-103348 -52160 -350 184435 -77610

SUB-TOTAL (A)

22042498 22098017 22155241 20417327 18433462

ANALYSIS:

GRAPH 12:- SHOWING TOTAL SHAREHOLDERS FUND FOR THE YEAR

ENDING 2008 TO 2012. (IN RS.)

2007-08 2008-09 2009-10 2010-11 2011-12

-5000000

0

5000000

10000000

15000000

20000000

25000000

0

5170330

1983865

1737914

-57224

TOTAL SHAREHOLDERS FUND FROM THE YEAR 2008 TO 2012(IN RS.)

Axis

Title

INTERPRETATION:-

POLICYHOLDER’S FUND

TABLE 21: SHOWING DATA IN TOTAL POLICYHOLDER’S FUND FOR

THE YEAR ENDIND 2008 TO 2012 (IN RS.)

Year2013 2012 2011 2010 2009

CREDIT FAIR VALUE CHANGE A/C-789521 -340785 -15447 205087 -296885

POLICY LIABILITY99773580 73865111 51233325 37666908 29092419


LIABILITY

277946461 235044757 205231336 155217800 68782936

FUNDS FOR FUTURE APPROPRIATIONS3436831 1251005 1917148 1490013 586395

LAPSED POLICY UNLIKELY TO BE

REVIVED

3048853 3352468 2555106 1064831 531970

FUNDS FOR DISCOUNTED POLICIES4331169 1053248 - - -

SUB-TOTAL (B)387747373 314225804 260921468 195644639 98696835

ANALYSIS:-

GRAPH 13:- SHOWING DATA IN POLICYHOLDER’S FUND FOR THE YEAR

ENDING 2008 TO 2012. (IN RS.)

2007-08 2008-09 2009-10 2010-11 2011-120

50000000

100000000

150000000

200000000

250000000

300000000

350000000

014437808

9694780465276829

53304336

TOTAL POLICYHOLDERS FUND FROM THE YEAR 2008 TO 2012(IN RS.)

Axis

Title

INTERPRETATION:-

INVESTEMENT

TABLE 22: SHOWING DATA IN TOTAL INVESTEMENT FOR THE YEAR

ENDIND 2008 TO 2012 (IN RS.)

Year 2012 2011 2010 2009

2009

SHAREHOLDERS 5894173 6999708 6304757 4291597

4291597

POLICYHOLDERS 79902644 53349840 43415382 30152727

30152727

ASSET HELD TO COVER LINKED

LIABILITY 236098005 205231336 155217800 68782936

68782936

TATAL (A) 321894822 265580884 204937939 103227260

103227260

ANALYSIS:-

From the above table, it is clear that investment has increased every year. In 2008 it was

Rs.86963691 and it has increased in the year 2012 by Rs.321894822, it means company is

investing more. Company is paying to policyholders a major part of their funds and to

shareholders also. In 2012 company has invested Rs.236098005 to cover linked liability

earlier it was only Rs.59451584 in 2008.it means it has increased multiple of times.

GRAPH 14:- SHOWING DATA IN TOTAL INVESTEMENT FOR THE YEAR

ENDING 2008-2012(IN RS.)

2007-08 2008-09 2009-10 2010-11 2011-120

50000000

100000000

150000000

200000000

250000000

300000000

350000000

016263569

101710679 6064294556313938

TOTAL INVESTEMENT FROM THE YEAR 2008 TO 2012(IN RS.)

Axis

Title

INTERPRETATION:-

From the above table & graph, it is clear that the company has invested maximum fund in

investment like shareholders, policyholders and asset held to cover linked liability. Company

has paid dividend, redemption of shares including this they have uses its maximum amount.

Policyholders to whom company has to pay, they have paid also in the way of settlement of

claim, bonus etc. It shows that company is very much liable to pay the obligation to their

shareholders and policyholders. Also company has paid some amount to cover linked

liability. This all show that the company is using their fund appropriately in the growth of

business and try to cover all the risk. Investment is increasing year by year means company is

trying to capture more market share. Company has provided loan to their policyholders also.

LOAN

TABLE 23: SHOWING DATA IN TOTAL LOAN AMOUNT FOR THE YEAR

ENDIND 2008 TO 2012 (IN RS.)

YEAR 2012 2011 2010 2009 2008

LOANS 317628 331239 40366 30248 18618

ANALYSIS:-

From the above table, it is clear that the company is having loan of amount Rs.18618 in the

year 2008 which has increased by Rs.317628 in the year 2012.Continuousely it is increasing

year by the year. Company has paying loan continuously.

GRAPH 15:- SHOWING DATA IN TOTAL LOAN AMOUNT FOR THE YEAR


2007-08 2008-09 2009-10 2010-11 2011-12-50000

0

50000

100000

150000

200000

250000

300000

350000

400000

011630 10118

290873

-13611

TOTAL LOAN AMOUNT FROM THE YEAR 2008 TO 2012(IN RS.)

Axi

s Ti

tle

INTERPRETATION:-

From the above table & graph, it is clear that the company has paid their loan on time and it

is a very less amount .so we can say that company is not having any heavy loan to pay.

PROFIT ND LOSS ACCOUNTS

TABLE 24: SHOWING DATA IN TOTAL PROFIT AND LOSS A/C FOR THE

YEAR ENDIND 2008 TO 2012 (IN RS.)

YEAR 2012 2011 2010 2009 2008

DEBIT BALANCE IN PROFIT AND LOSS A/C 12944833 15654987 14664966 11913122 97522159

DEFICIT IN THE REVENUE ACCOUNT 601302 1693927 - - -

TOTAL(P&L A/C) 13546135 17348914 14664966 11913122 97522159

ANALYSIS:-

From the above table, it is clear that the company is showing debit balance in P& L a/c. It is

decreasing by Rs.97,522,159 to Rs.13,546,135 from the year 2008 to 2012.sometimes in the

year 2009 it has decreased but in the year 2010 it has increased by Rs.14,664,966.Also

showing some deficit in revenue account in the year 2012 and 2011 by Rs.1,693,927 to

Rs.601,302.

GRAPH 16:- SHOWING DATA IN TOTAL DEBIT BALANCE IN P&L A/C FOR

THE

YEAR ENDING 2008-2012(IN RS.)

2007-08 2008-09 2009-10 2010-11 2011-12

-100000000

-50000000

0

50000000

100000000

150000000

0

-85609037

2751844

2683948

-3802779

DEBIT BALANCE IN P&L A/C FROM THE YEAR 2008 TO 2012(IN RS.)

Axis

Title

INTERPRETATION:-

From the above table & graph, it is clear that the company is showing debit balance means it

is loss in trial balance debit side so it is transferred to adjusted P&L A/C. From there we get

funds from the operations or loss from the operations. Revenue account is showing some

deficit value means it is loss for the company.

SOURCES OF FUND

TABLE 25: SHOWING DATA IN TOTAL SOURCES OF FUND FOR THE

YEAR ENDIND 2009 TO 2012 (IN RS.)

YEAR 2012 2011 2010 2009

ISSUE OF SHARES - 268,801 1,721,820 5,251,821

POLICY PREMIUM 22,306,448 13,345,883 9,076,461 4,235,042

PROVISION FOR LINKED LIABILITY 29,813,421 50,013,536 86,434,864 9,331,352

RECOVERY OF LOAN 13,611 - - -

REVIVAL OF LAPSED POLICY 131,219 1,917,410 1,436,479 871,414


POLICY 1,053,248 - - -

TRNSFER TO RESERVE - 1,469,113 262,045 -

MISC. INCOME 1,092,625 -- - -

SALE OF FIXED ASSETS - - 307,569 -

DECREASE IN WORKING CAPITAL - - 5,233,403 1,709,968

FUNDS FROM OPERATIONS 2,710,154 - - -

TOTAL SOURCES OF FUNDS

(IN RS.) 57,120,726 67,014,743 104,472,641 21,399,597

ANALYSIS:-

From the above table, it is clear that the company’s main source of fund is policy premium

and provision for linked liability. From the policy premium company has raises Rs.22,

306,448 in the year 2012 earlier in the year 2011 was Rs. 13,345,883.means fund from

policy premium is increasing year by year. provision for linked liability also be a source of

fund by which company raises Rs. 29813421 in the year 2012.othe r sources are fund from

operations, transfer to reserve, funds from revival of the policy, funds from discontinued

policy .they take part in raising sources of funds. In the year 2009 was Rs.21,399,597,in

2010 it was Rs.104,472,641,in the year 2011 it was Rs.67,014,743 & in the year 2012 was

57,120,726 which is showing sometimes increases /decreases

GRAPH 17:- SHOWING DATA IN TOTAL SOURCES OF FUNDS FOR THE YEAR


2008-09 2009-10 2010-11 2011-120

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

0

9893166967014743

53247112

TOTAL SOURCES OF FUNDS FROM THE YEAR 2009 TO 2012(IN RS.)

Axis

Title

INTERPRETATION:-

From the above table & graph, it is clear that the company is having sufficient sources of

income. Main sources are funds from policyholders and provision for linked liabilities and

other sources are share capital, fund from operations, reserve and surplus. Increase in

policyholders fund Means Company is doing their business well and having sufficient

amount to meet any obligation. By these funds they can utilize in smoothly running of their

business. This statement also shows that increase in sales of policy. This is an ideal situation

for any insurance company to raises major funds from policy premium.

APPLICATION OF FUND

TABLE 26: SHOWING DATA IN TOTAL APPLICATION OF FUND FOR

THE YEAR ENDIND 2009 TO 2012 (IN RS.

Year 2012 2011 2010 2009

INVESTEMENT (SHAREHOLDERS

&POLICYHOLDERS). 56,313,938 60,642,945 101,710,679 16,160,939

REDEMPTION OF SHARES 57,224 290,873 - -

FIXED ASSETS PURCHASED 399,722 1,251,952 - 115,906

INCREASE IN WORKING CAPITAL 349,842 2,145,025 - -

MISC. EXPENSES - 1,693,927 - -

PAYMENT OF LOANS - - 10,118 11,630

LOSS FROM OPERATIONS - 990,021 2,751,844 5,111,122

TOTAL APPLICATION OF FUNDS

(IN RS.) 57,120,726 67,014,743 104,472,641 21,399,597

ANALYSIS:-

From the above table, it is clear that the company has uses their fund appropriately in the

term of investment by Rs. 56,313,938, Rs. 60,642,945, Rs. 101,710679 & Rs. 16,160,939 the

year 2008-09,2009-10,2010-11 & 2011-12 which is sometimes increases or decreases year by

year. The company has uses their maximum fund in to purchase of investment purchase of

fixed assets, and in loss from operations. in 2011 company shows miscellaneous expenses

which is Rs.1,693,927.total application of fund in the year 2009 was Rs.21,399,597,in 2010

it was Rs.104,472,641,in the year 2011 it was Rs.67,014,743 & in the year 2012 was

57,120,726 which is showing sometimes increases /decreases

GRAPH 18:- SHOWING DATA IN TOTAL INVESTEMENT FOR THE YEAR


2008-09 2009-10 2010-11 2011-120

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

0

9893166967014743

53247112

TOTAL APPLICATIONS OF FUNDS FROM THE YEAR 2009 TO 2012(IN RS.)

Axis

Title

INTERPRETATION:-

From the above table & graph, it is clear that the company the company has uses their fund

appropriately in the term of investment by Rs. 56,313,938, Rs. 60,642,945, Rs. 101,710679 & Rs.

16,160,939 the year 2008-09, 2009-10,2010-11 & 2011-12 which is sometimes increases or

decreases year by year. The company has uses their maximum fund in to investment purchase of

fixed assets, and in loss from operations. in 2011 company shows miscellaneous expenses which

is Rs. 1,693,927.total application of fund in the year 2009 was rs.21,399,597,in 2010 it was

rs.104,472,641,in the year 67,014,743 & in the year 2012 was 57,120,726 which is showing

sometimes increases /decreases. Company has paid claim, redemption on shares etc are the main

uses of funds.

data analysis and interpretation

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