funds flow ing vysys life insuranc- ankush
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PROJECT REPORT ON FUNDS FLOW STATEMENT ANALYSIS
AT
ING VYSYA LIFEINSURANCE.
By
Mr. J.ANKUSH
(H.T. 216011672039)
Project submitted in partial fulfillment for the award of the Degree ofMASTER OF BUSINESS ADMINISTRATION
St. PAULS COLLEGE OF MANAGEMENT AND IT
(Affiliated to OSMANIA UNIVERSITY)
HYDERABAD
2011-2013
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CERTIFICATE
This is to certify that this project report titled A study on FUNDS
FLOW STATEMENT ANALYSIS with respect to ING VYSYA LIFE
INSURANCE is bonafide work done by J.ANKUSH of IV Semester MBA,
under our guidance and submitted to the Department of Management Studies,
St. PAULS COLLEGE OF MANAGEMENT AND IT in partial fulfillmentfor the award of Master of Business Administration during the year 2011-
2013.
Signature of the Guide
N. SRIKANTH
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DECLARATION
I hereby declare that this project report titled FUNDS FLOW STATEMENT
ANALYSIS at ING VYSY LIFE INSURANCE, submitted by me to the
department of Business Administration, St. PAULS COLLEGE OF
MANAGEMENT AND IT, is a bonafide work under taken by me and it is
not submitted to any other university or institution for the award of any
degree diploma/certificate or published any time before.
Date:
Place: Hyderabad
(J.ANKUSH)
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ACKNOWLEDGEMENT
The highest happiness that accompanies the successful completion of any task
would be incomplete without the expression of gratitude to all those people who have
helped me throughout this project as success is the abstract of hard work.
I would like to express my heartfelt gratitude to Mr. CH. SRINIVAS (Manager
HR) for permitting me to do the project in Ing vysya Life insurance and also for his
inspiring guidance, support, valuable inputs and constructive criticism to develop andcomplete this project.
I express my heartfelt thanks to the HR Team and all the employees of the
organization for co-operation.
I am also thankful for the encouragement extended by Mrs. B. INDIRA REDDY
Principal, St. PAULS COLLEGE OF MANAGEMENT AND IT and
Mr. N.SRIKANTH, Guide for his constant support and co operation.
Last but not the least; I would like to thank my parents and friends for their
constant support and co-operation with out which I would have not completed this project
in the stipulated time.
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ABSTRACT
Funds flow analysis helps in judging the efficiency of financial functions and
administration of a business by providing a summary of the sources from which fundshave be procured and uses to which such funds have been put to.
A projected funds flow statement will help the analyst in finding out as to how the
management is going to allocate the scare financial resources for meeting productive
requirements of the business.
It is the responsibility of the organization to maintain a standard level of funds flowneither excess or deficit.
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TABLE OF CONTENTS
CONTENTS PAGE N.O:
CHAPTER 1: INTRODUCTION...7-14
CHAPTER 2: INDUSTRY PROFILE...15-22
CHAPTER 3: COMPANY PROFILE..23-33
CHAPTER4: REVIEW LITERATURE.34-44
CHAPTER 5: DATA ANALYSIS AND INTERPRETATION..45-54
CHAPTER 6: SUMMARY OF FINDINGS, SUGGESTIONS AND
CONCLUSIONS.55-58
CHAPTER 6: BIBLIOGRAPHY 59-60
CHAPTER 7: ANUXARE61-69
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CHAPTER 1
Topic Introduction
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A funds flow statement is a technical device designed to analyze, the changes
in the financial condition of a business enterprise between two years. It is also called as
a statement of sources and applications of funds . The funds flow statement is
Becoming popular with the management because it not only helps them in analyzing
financial operations, providing basis for comparison with budgets, and serving as a tool of
communication, but also explains the financial consequences of such operations such
as the reason why the company is experiencing difficulty in making payments to creditors
or why the bank balance is getting thinner.
There is a general recognition in industry and business and among professional
accounting bodies that financial statements should provide relevant information which
sub serves the multiple objectives of shareholders, investors, creditors, customers and
the public and which enable them to arrive at rational economic decisions. Normally
what the shareholders look for in these statements is an account of the stewardship of
the firm and the amount which may be expected as dividend. Potential investors look
upon funds flow statements as the source of there realistic view of the value of a
companys shares in terms of an expected futures stream of distribution and judge the
efficiency of the management accordingly.
Advantages of funds flow statement:
1. The funds flow statement acts as a supplementary statement to the traditional
financial statements, viz., balance sheet and profit & loss account.
2. It registers changes in the flow of funds during a given period of time.
3. It suggests the ways of improving working capital position.
4. It helps in planning for retirement long term debts.5. It helps in deciding about the mode of financing expansion or replacement facilities.
6. It helps in formulation of a realistic dividend policy.
.
Business transactions and flow of funds
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It may be noted at this stage of analysis that for the purpose of funds flow
statement, the items of balance sheet are classified into two broad categories viz., Items of
current accounts and Items of non-current accounts.
Current account Items
Current assets Current liabilities
Cash in hand Bills payable
Cash at bank (including fixed deposits) Trade or sundry creditors
Bills receivable Outstanding expenses
Trade or sundry debtors Cash credit/bank overdraft
Inventory-Raw-materials, work in-
progress, Finished Goods, Stores,etc
Short-term loans
Prepaid expenses Income received in advance
Outstanding incomes Long-term loans (or part) which fall due for
repayment within a year
Short-term loans and advances
Temporary investments, etc
Provision for doubtful debts and discount
on debtors
Non-current Account Items
The word fund is to denote working capital. Funds flow there fore refers to the
changes in the fund (i.e., working capital) by the transactions operational, financial and
investment, though the effect of all the transactions on the funds are considered, it should
be remembered here that not all the transactions cause the flow of funds .
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Non-current assets Non-current liabilities
Land and Buildings Equity share capital
Plant and Machinery and vehicles Preference share capital
Furniture and fittings Debentures
Goodwill Reserves and surplus
Patents, trade marks, copy rights,
preliminary expenses and profit and loss
account(deficiency),etc
Long term loans
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The transactions which do not affect the flow of funds:-
1) Transactions affecting the items of only Current assets.
2) Transactions involving the items of only Current liabilities.
3) Transactions involving the items of only Current assets on the one hand , and
the Current liabilities on the other (Current assets Vs Current liabilities),and
4) Transactions affecting only the Non-Current items.
The transactions which affect the flow of funds:-
1) Transactions affecting the items of Current assets and fixed assets.
2) Transactions affecting the items of Current assets and capital and long-term
liabilities.
3) Transactions affecting the items of Current liabilities and fixed assets.
4) Transactions affecting the items of Current liabilities and capital and long-term
liabilities.
These are the different transactions which affect and do not affect the flow of
funds .It is there fore necessary to analyze the different transactions to find out
whether they cause any changes in the fund or not.
OBJECTIVES
1. To study the financial statements of The ING VYSYA for the 4 years.
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2. To analyze how The Financial Services is utilizing its resources.
3. To analyze the changes in assets and liabilities from the end of one period of the
time to the end of another period of time
4. To find out the sources from which additional funds were derived and the use to
which their sources were put.
SCOPE OF THE STUDY
The present study focuses as sources funds and application of funds for aperiod of time. The study is confirmed to find out the changes in the financial
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position of The Ing Vysya Life Insurance Limited between the beginning and
ending financial Year.
It is a technical device designed to analyze the changes in the financial condition of
the business enterprises between two dates.
This funds flow statement is a statement which indicates various means by which
the funds have been obtained during a certain period and the ways to which these funds
have been used during the period.
The term funds used here means working capital that is the excess of current assets
over current liabilities. It is an essential tool for the financial analysts and is of primary
importance to the financial management.
Now a days it is being widely used by the financial analyst credit granting
institutions and financial managers. The basic purpose of the funds flow statement is to
reveal the changes in the working capital on the two balance sheet dates. It helps in the
analysis of financial operations. It helps in the formation of realistic dividend policy. It
helps in the proper allocation of resources. It helps in appraising the use of working capital
and finally it acts as future guide.
LIMITATIONS
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1. It should remember that a funds flow statement is not a substitute of an income
statement or a balance sheet. It provides only some additional information as
regards changes in working capital
2. The study based on the available annual reports and internal information of
Ing vysya Life Insurance.
3. It cannot reveal continuous changes.
RESEARCH METHODOLOGY
Research
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Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in the future course of action. Redman and
Mory defines research as a systematized effort to gain new knowledge.
Research Design
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with company in
procedure. In fact, the research design is the conceptual structure within which research is
conducted; it constitutes the blue print for the collection, measurement and analysis of
data.
Data sources
Primary Data:
First hand information was collected from the Associate Vice president,Department of Business Insurance of the Ing vysya.
Interaction with guide to understand the general & specific aspects regardingutilization of resources.
Secondary Data: Annual reports collected from the Ing vysya.
Data collection:
Sample size : Four years annual reports.Sample area : Ing Vysya Life Insurance, Hyderabad.
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CHAPTER -II
ING Vysya Life entered the private life insurance industry in India in September 2001,
and has established itself as a distinctive life insurance brand with an innovative, attractive and
customer-friendly portfolio ranging from protection, savings, retirement and investment plans;
which it sells through a unique tool - The Life Maker.
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ING Vysya Life is headquartered in Bangalore, and is a part of the ING group. The ING
group is a 150-year-old global financial institution of Dutch origin offering Isurance, insurance
and asset management to over 60 million private, corporate and institutional clients in 50
countries. We are the world's Largest Financial Services Group and the world's Largest Life
Insurance Provider.
ING Group has wide and deep experience in setting up companies in new markets, which
require substantial investments underlining ING's long-term commitment. In the last 20 years,
ING Group has established successful life insurance companies in 15 countries contributing to the
development of insurance services in these countries successfully.
HISTORY OF INSURANCE IN INDIAIn India, insurance has a deep-rooted history. It finds mention in the writings of Manu (
Manusmrithi), Yagnavalkya ( Dharmasastra ) and Kautilya (Arthasastra ). The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient
Indian history has preserved the earliest traces of insurance in the form of marine trade loans and
carriers contracts. Insurance in India has evolved over time heavily drawing from other countries,
England in particular.
In 1818 saw the advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870
saw the enactment of the British Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in
the Bombay Residency. This era, however, was dominated by foreign insurance offices which did
good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London
Globe Insurance and the Indian offices were up for hard competition from the foreign companies.
In 1914, the Government of India started publishing returns of Insurance Companies in
India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate
life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government
to collect statistical information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a view to protecting
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the interest of the Insurance public, the earlier legislation was consolidated and amended by the
Insurance Act, 1938 with comprehensive provisions for effective control over the activities of
insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there
were a large number of insurance companies and the level of competition was high. There were
also allegations of unfair trade practices. The Government of India, therefore, decided to
nationalize insurance business.
An Ordinance was issued on 19 th January, 1956 nationalising the Life Insurance sector and
Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian,
16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The
LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and
the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general
insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of
India. The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalizations) Act, general
insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.
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This millennium has seen insurance come a full circle in a journey extending to nearly 200
years. The process ofre-opening of the sector had begun in the early 1990s and the last decade
and more has seen it been opened up substantially. In 1993, the Government set up a committee
under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations
for reforms in the insurance sector. The objective was to complement the reforms initiated in the
financial sector.
Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while ensuring the
financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national re-
insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 14 life insurance companies operating in the country.
India insurance is a flourishing industry, with several national and international players
competing and growing at rapid rates. Thanks to reforms and the easing of policy
regulations, the Indian insurance sector been allowed to flourish, and as Indians
become more familiar with different insurance products, this growth can only
increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the
Indian insurance industy.
India Insurance Policies at a Glance
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Indian insurance companies offer a comprehensive range of insurance plans, a range thatis growing as the economy matures and the wealth of the middle classes increases. Themost common types include: term life policies, endowment policies, joint life policies,whole life policies, loan cover term assurance policies, unit-linked insurance plans, groupinsurance policies, pension plans, and annuities. General insurance plans are also available
to cover motor insurance, home insurance, travel insurance and health insurance.
Due to the growing demand for insurance, more and more insurance companies are nowemerging in the Indian insurance sector. With the opening up of the economy, severalinternational leaders in the insurance sector are trying to venture into the India insuranceindustry.
India Insurance: History
The history of the Indian insurance sector dates back to 1818, when the Oriental LifeInsurance Company was formed in Kolkata. A new era began in the India insurancesector, with the passing of the Life Insurance Act of 1912.
The Indian Insurance Companies Act was passed in 1928. This act empowered thegovernment of India to gather necessary information about the life insurance and non-lifeinsurance organizations operating in the Indian financial markets.
The Triton Insurance Company Ltd formed in 1850 and was the first of its kind in thegeneral insurance sector in India. Established in 1907, Indian Mercantile Insurance
Limited was the first company to handle all forms of India insurance.
Indian Insurance: Sector Reform
The formation of the Malhotra Committee in 1993 initiated reforms in the Indianinsurance sector. The aim of the Malhotra Committee was to assess the functionality of theIndian insurance sector. This committee was also in charge of recommending the future
path of insurance in India.
The Malhotra Committee attempted to improve various aspects of the insurance sector,making them more appropriate and effective for the Indian market.
The recommendations of the committee put stress on offering operational autonomy to theinsurance service providers and also suggested forming an independent regulatory body.
The Insurance Regulatory and Development Authority Act of 1999 brought about severalcrucial policy changes in the insurance sector of India. It led to the formation of theInsurance Regulatory and Development Authority (IRDA) in 2000.
The goals of the IRDA are to safeguard the interests of insurance policyholders, as well asto initiate different policy measures to help sustain growth in the Indian insurance sector.
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The Authority has notified 27 Regulations on various issues which include Registration ofInsurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation ofInsurers to Rural and Social sector, Investment and Accounting Procedure, Protection of
policy holders' interest etc. Applications were invited by the Authority with effect from15th August, 2000 for issue of the Certificate of Registration to both life and non-life
insurers. The Authority has its Head Quarter at Hyderabad. Detailed information on IRDAis available at their web-site www.irdaindia.org
Protection of the interest of policy holders:
IRDA has the responsibility of protecting the interest of insurance policyholders. Towardsachieving this objective, the Authority has taken the following steps:
IRDA has notified Protection of Policyholders Interest Regulations 2001 to
provide for: policy proposal documents in easily understandable language; claimsprocedure in both life and non-life; setting up of grievance redressal machinery;speedy settlement of claims; and policyholders' servicing. The Regulation also
provides for payment of interest by insurers for the delay in settlement of claim. The insurers are required to maintain solvency margins so that they are in a
position to meet their obligations towards policyholders with regard to payment ofclaims.
It is obligatory on the part of the insurance companies to disclose clearly the
benefits, terms and conditions under the policy. The advertisements issued by theinsurers should not mislead the insuring public.
All insurers are required to set up proper grievance redress machinery in their head
office and at their other offices. The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the insurancecontract.
Insurance in India
AnOverviewoftheInsuranceIndustryinIndia
The history of the insurance industry in India dates back in 1818 when the first insurancecompany was formed.
(Oriental Insurance Company Limited). It has since undergone several reforms in the formof liberalization and nationalization.
In the ensuing discussion, we shall seek to explore the nature of the industry in general.
Regulation And Players In The Industry
This industry is regulated by the Insurance Regulatory & Development Authority (IRDA).It ensures that all policyholders interests are protected. IRDA has listed all stakeholders in
the industry including corporate agents, brokers, surveyors, insurance councils, state andlife insurers and one main reinsurer.
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These players in the market are the driving force towards achieving a record 3% of thegross domestic product in the economy in India. The brokers, for example, are assignedthe work of distributing the premiums mainly through direct sales. IRDA also offersguidelines with regard to investment in mutual funds, pension, general annuity funds andgroup schemes.
Services In The Industry
The services rendered by this industry are overshadowed by the industry's history ofliberalization and nationalization. Two main sectors exist. They are the public sector andthe private sector with the former dominating the market.
Individual company service provision includes such services as life insurance (endowmentassurance, money back and miscellaneous services) and general insurance/non lifeinsurance (includes marine insurance, motor insurance which is compulsory in thecountry, fire insurance etc.).
Future of The IndustryFrom as early as 1947 to 1972, this industry has gone through dynamic change. With theformation of the regulatory body, passing of the insurance act, and passing of variousreforms, this insurance in india has become competitive and continues to attract interestfrom foreign countries. However, the recent economic recession has greatly affected thisindustry.
Currently, there is a major credit crisis affecting the industry. A typical example is thecollapse of US based AIG Company that has had ripple effects on to Indias TATA-AIGGeneral Insurance Company. Bajaj Allianz, Prudential and ICICI companies have alreadyclosed some of their branches.
any players have proposed the merging of the various companies in the sector to be able tocaution themselves from the crunch. It is equally important to note that recession is notnew to Indias economy. The country has been able to come out of one once and it can doso even now.
Life Insurance Policies
Endowment Policy IndiaGroup Insurance PolicyJoint Life Policy
Loan Cover Term Assurance PolicyMoney Back PolicyPension Plan or AnnuitiesTerm Life PolicyUnit Linked Insurance PlanWhole Life Insurance Policy India
Life Insurance Companies
Bajaj AllianzHDFC Standard Life InsuranceICICI Prudential
Lic IndiaGeneral InsuranceHome Insurance
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Health InsuranceMotor InsuranceTravel Insurance
Mutual Funds of India
Bank of Baroda Mutual Fund IndiaBirla Sun Life Mutual Fund IndiaHDFC Mutual Fund IndiaHSBC Mutual Fund IndiaICICI Prudential Mutual FundsKotak Mahindra Mutual FundsLIC Mutual FundsReliance IndiaSBI Mutual Funds
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CHAPTER III
COMPANY PROFILE
ING Vysya Life Insurance is a part of the ING groups the worlds fourth largest financial
services company and also the worlds second largest life insurance provider. ING vysya life
insurance is here to provide with the innovative and well designed products that effectively meet
your life insurance needs. ING vysya life insurance stands 13th
in the fortune 500 list.
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ING Vysya life insurance company ltd entered the private life insurance industry in India in
September 2001. it has a dedicated and committed advisor sales force of over 21000 people,
working from 140 branches located in 74 major cities across the country and over 3000
employees. Its headquarter is situated at Bangalore.
The company portfolio offers products that later to every financial requirement at any life
stage. It brings to you over 150 years of experience and the heritage of a name trusted in 50
countries. More than 60 million customers around the world have entrusted it with over US$700
billion of their wealth.
ING vysya life CEO and managing director, Mr.Frank Koster, said that a study had found
that the life insurance business had a good potential in rural India because people had a strong
savings habit and a high level of awareness about life insurance. The bulk of the companys
business comes from the traditional distribution route of insurance agents. ING vysya life
insurance recorded an income of Rs 102 crore in 2008-09.
ING vysya life on Wednesday june 2007 enrolled Madras fertilizers as corporate agent to
use the latters infrastructure to penetrate the rural life insurance market in south India. The
company has over 6500 dealers and 100 field staff who deal with over one lakh farmers.
The company aims to make customers look at fire insurance afresh, not just as a tax saving
device as a means to add protection to life. The company portfolio offers products that later to
every financial requirement, at any life stage
Origin of ING Group:
On the other hand, ING group originated in 1990 from the merger between Nationale and
Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV.
Combining roots and ambitions, the newly formed company called Internationale Nederlanden
Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by
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changing the statutory name to ING Group N.V.
Profile:
ING has gained recognition for its integrated approach of Isurance, insurance and assetmanagement. Furthermore, the company differentiates itself from other financial service providers
by successfully establishing life insurance companies in countries with emerging economies, such
as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an
Internet and direct marketing concept with which ING is rapidly winning retail market share in
mature markets. Finally, ING distinguishes itself internationally as a provider of employee
benefits, i.e. arrangements of non wage benefits, such as pension plans for companies and their
employees.
Ing vysya Ltd. is a joint venture between Vysya Bank Ltd, a premier bank in the
Indian Private Sector and ING, a global financial powerhouse of Dutch origin. Ing vysya
was founded in October 2002.
Vysya Bank was founded in 1930 to extend a helping hand to those who were
deprived of Isurance services. Since then the Bank has made rapid strides and has carved a
distinct identity of being India's Premier Private Sector Bank. In 1985, the Bank became
the number one private sector bank in India.
ING group originated in 1990 from the merger between National - Nederland NV
the largest Dutch Insurance Company and NMB Post Bank Group NV. The newly formed
company called "International Nederland Group" came to be known as ING.
As on 31/12/04, Ing vysya had an asset base of 866 billion Euros and an operating
net profit of 5.97 billion Euros. The Bank has presence in 57 countries and has employee
strength of over 113000 people.
In 1980, the Bank completed fifty years of service to the nation and post 1985; the
Bank made rapid strides to reach the coveted position of being the number one private
sector bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond
Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the
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performance of the bank Stupendous. The 75th anniversary, the Platinum Jubilee of the
bank was celebrated during 2005.
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HIS MILESTONES OF ING VYSYA:-
27
1930 Set up in Bangalore
1948 Scheduled Bank
1985 Largest Private Sector Bank
1987 The Vysya Bank Leasing Ltd. Commenced
1988 Pioneered the concept of Co branding of Credit Cards
1990 Promoted Vysya Bank Housing Finance Ltd.
1992 Deposits cross Rs.1000 cores
1993 Number of Branches crossed 300
1996Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion
Council for excellent performance in Export Promotion
1998
Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by
Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal -
June 1998)
2000State -of - the -art Date Centre at ITPL, Bangalore.
RBI clears setting up of ING Vysya Life Insurance Company
2001 ING-Vysya commenced life insurance business.
2002
The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for
traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident
hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net Isurance
service.
2002 ING takes over the Management of the Bank from October 7th , 2002
2002 RBI clears the new name of the Bank as Ing vysya Ltd, vide their letter of 17.12.02
2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans
2004 Introduced Protected Home Loans - a housing loan product
2005 Introduced Solo - My Own Account for youth and Customer Service Line Phone Isurance Service
2006
Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow
Isurance The long journey of seventy five years has several milestones
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Retirement/Pension Plan ING New Best Years
Retirement/Pension Plan ING Immediate Annuity
Child Plan ING Aashirwad
Child Plan Creating Life Child Protection Plan
Child Plan Creating Life Money Back Plan
Term Plan ING Term Life
Term Plan ING Term Life Plus
Savings & Investment Plan ING Market Shield
Savings & Investment Plan ING Prospering Life
Savings & Investment Plan ING Prospering Life- Single Premium
Savings & Investment Plan ING Uttam Jeevan- Regular Premium
Savings & Investment Plan ING Uttam Jeevan- Single Premium
Savings & Investment Plan ING Powering Life
Savings & Investment Plan ING Platinum Life Plan
Savings & Investment Plan ING New Fulfilling Life Plan
Savings & Investment Plan Reassuring Life Endowment Plan
Savings & Investment Plan Safal Jeevan Endowment Plan
Savings & Investment Plan Safal Jeevan Money Back Plan
Savings & Investment Plan ING Creating Star Guranteed Future
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CHAPTER IV
Preparation of Funds Flow Statement
While preparing the Funds flow statement ,individual items of current assets
and current liabilities are not shown separately but there are consolidated in a
separate statement called Schedule of changes in Working capital and only the
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net change in the Working capital during an accounting year is taken to the funds
flow statement therefore, comprises of two parts,
1) Schedule of changes in Working capital
2) Statement of sources and Uses of funds
1) Schedule of changes in Working capital:-
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2) Statement of sources and uses of funds:-
31
PARTICULARS PREVIOUS
YEAR
CURRENT
YEAR
EFFECT ON WORKING
CAPITAL
INCREASE DECREASE
CURRENT ASSETS
Cash in hand
Cash at Bank
Bills receivable
Sundry Debtors
Temporary investments
Stocks/Inventories
Prepaid expenses
Accrued Incomes
Total Current Assets(a)
CURRENT LIABILITIES
Bills payable
Sundry creditors
Outstanding expenses
Bank overdraft
Short-term advance
Dividend payable
Proposed dividends*
Provision for taxation*
Total current liabilities(b)
Working Capital (a-b)
Net increase or decrease
in working capital
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Note:* Any one of these will find the place in the statement
+ Any one of these will find the place in the statement
Funds means working capital this working capital represents the difference
between current assets, current liabilities. All flows of funds pass through working
capital. This means that every transaction has an effect on the firms working capital
position.
1. An example illustrates this as follows:-
2. An increase in profits increases the cash balance and hence working capital,
3. An increase in long term liability or any decrease in fixed assets increase
the cash balance and hence working capital.
Therefore the Funds Flow Statement shows the movement of funds into or out of the
current asset account of the firm.
The movement of funds has two aspects:-
Sources of funds.
32
Sources Amount
Rs
Applications Amou
nt
Rs
Issue of shares and
Debentures
Long-term Loans
Sale of investment, Fixed
assets, etc
Non-trading Income
Decrease in working capital
Redemption of preference
shares and debentures
Repayment of loan
Purchase of Investment,
Fixed assets, etc
Non-Trading Expenses
Increase in working capital+
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Uses of funds.
The former supply funds to the working capital and enhances its position. On the
other hand, the latter consume funds and erode the working capital position.
Sources of funds:
Sale of fixed assets:-
The sale value of fixed assets including if any is one of the Sources of funds. If
such profits have been included in the sale value, they are not included in the profit
figures. The reason being that this would led to double counting.
Sale of shares:
The full amount collected form the issue of shares is treated as source of
funds. This means that the amount of premium discount if any is taken into account
for this purpose.
Long tem Borrowings:
Loans raised including any premium or net of discount are considered as
source of funds. However loans in form of supplies or services of a non current nature
do not constitute source of funds.
Funds from operations:
The most important sources of funds is profit from its operations. Profit
from operations means the net profit after taxes plus the non cash expenses.
USESOFFUNDS
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Purchase of fixed assets:
Acquisition of fixed assets causes an outflow of funds from the working
capital pool. While beginning this effect to the funds flow statement, double counting
must be avoided.
Repayment of capital:
A company redeems the redeemable preference shares. Moreover equity
shares can also be paid back as per the procedures laid down in the Indian companies
Act, 1956.
Make up of shares:
If the firm is operating at a loss, an outflow of funds will be there to the
extent of net loss minus the non cash expenses like depreciation .Acquisition of
investments and payment of dividend:
The outflow of funds takes place on account of acquisition of long term
investments and the payment of cash dividend.
Limitations of Funds flow statement:-
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1. The following are some of the limitations of Funds flow statement. These
limitations are to be kept in mind while drawing any conclusion about the
operating results and financial soundness on the basis of Funds flow statement.2. Funds flow statement. Is being criticized as the one which re-arranges the financial
data extracted from the financial statements;
3. The Funds flow statement. Is also being criticized as not furnishing anything new
and/or original over and above the conventional Financial statements
4. Funds flow statement. is also based on the historical data as it bases its preparation
on the conventional financial statements; and
5. Some of the transactions affecting only the non-current items are, sometimes, not
considered while preparing The Funds flow statement.
INSURANCE:
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A contract (policy) in which an individual or entity receives financial protection or
reimbursement against losses from an insurance company. The company pools clients' risks to
make payments more affordable for the insured.
The act, system, or business of insuring property, life, one's person, etc., against loss or
harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in
consideration of a payment proportionate to the risk involved.
KEYMAN INSURANCE:
Keyman insurance is an important form of business insurance. There is no legal definition
for Keyman Insurance. In general, it can be described as an insurance policy taken out by a
business to compensate that business for financial losses that would arise from the death or
extended incapacity of the member of the business specified on the policy. The policys term does
not extend beyond the period of the key persons usefulness to the business. The aim is to
compensate the business for losses and facilitate business continuity. Keyman Insurance does not
indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on
the insurance policy.
EXAMPLE:
A simple example will make meaning of insurance easy to understand. A biker is always
subjected to the risk of head injury. But it is not certain that the accident causing him the head
injury would definitely occur. Still people riding bikes cover their heads with a helmet. This
helmet in such cases act as insurance by protecting him/her from the contingent accident and the
ultimate danger.
Though loss of life or injuries cannot be measured in financial terms, still in this
materialistic world it is quantifiable which tries to compensate the potential future loss financially.
Meaning of Insurance can be defined as the process of reimbursing or protecting a person from
contingent risk of losses through financial means.
PRINCIPLES OF INSURANCE:
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The vast majority of insurance policies are provided for individual members of very large
classes. Automobile insurance, for example, covered about 175 million automobiles in the United
States in 2004. The existence of a large number of homogeneous exposure units allows insurers to
benefit from the so-called law of large numbers which in effect states that as the number of
exposure units increases, the actual results are increasingly likely to become close to expected
results.
There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or
health of actors, actresses and sports figures. Satellite Launch insurance covers events that are
infrequent. Large commercial property policies may insure exceptional properties for which there
are no homogeneous exposure units. Despite failing on this criterion, many exposures like these
are generally considered to be insurable.
Definite Loss:
The event that gives rise to the loss that is subject to insurance should, at least in
principle, take place at a known time, in a known place, and from a known cause. The classic
example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker
injuries may all easily meet this criterion. Other types of losses may only be definite in theory.
Occupational disease, for instance, may involve prolonged exposure to injurious conditions where
no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should
be clear enough that a reasonable person, with sufficient information, could objectively verify all
three elements.
Accidental Loss:
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the
control of the beneficiary of the insurance. The loss should be pure, in the sense that it results
from an event for which there is only the opportunity for cost. Events that contain speculative
elements, such as ordinary business risks, are generally not considered insurable.
Large Loss:
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The size of the loss must be meaningful from the perspective of the insured. Insurance
premiums need to cover both the expected cost of losses, plus the cost of issuing and
administering the policy, adjusting losses, and supplying the capital needed to reasonably assure
that the insurer will be able to pay claims. For small losses these latter costs may be several times
the size of the expected cost of losses. There is little point in paying such costs unless the
protection offered has real value to a buyer.
Affordable Premium:
If the likelihood of an insured event is so high, or the cost of the event so large, that the
resulting premium is large relative to the amount of protection offered, it is not likely that anyone
will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in
financial accounting standards, the premium cannot be so large that there is not a reasonable
chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may
have the form of insurance, but not the substance.
Calculable Loss:
There are two elements that must be at least estimable, if not formally calculable: the
probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise,
while cost has more to do with the ability of a reasonable person in possession of a copy of the
insurance policy and a proof of loss associated with a claim presented under that policy to make a
reasonably definite and objective evaluation of the amount of the loss recoverable as a result of
the claim.
Limited risk of catastrophically large losses:
The essential risk is often aggregation. If the same event can cause losses to numerous
policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained,
not by factors surrounding the individual characteristics of a given policyholder, but by the factors
surrounding the sum of all policyholders so exposed.
Typically, insurers prefer to limit their exposure to a loss from a single event to some
small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or
an individual policy could produce exceptionally large claims, the capital constraint will restrict
an insurers appetite for additional policyholders.
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CHAPTER V
Statement of changes in Working Capital for the yearEnded 2008-2009:
(Rs)
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Particulars 2008 2009 Increase Decrease
A. Current assets:
Cash in hand
Balance with Banks
Balance with Banks
- Escrow Account
Telephone Deposits
K.S.T.Security Deposits
Receivables
Differed tax
Loans & Advances
Total Current Assets (A)
B. Current Liabilities
Contingency deposits
Staff Security deposits
Unclaimed deposits
Other liabilities
Statutory & Tax Audit fee
Provision for taxation
Total Current Liabilities(B)
(A-B) Working capital
Decrease in working capital
1957
8349222
4677
8000
1000
8934220
----
4789525
22088601
900681
5000
110505
1792319
17000
1858000
4683505
17405096
17405096
4991
4687197
1677
8000
1000
16644241
305814
11341596
32994516
900681
5000
110505
21490190
25000
4700000
27231376
5763140
11641956
17405096
3034
-
-
7710021
305814
655207
-
-
-
11641956
26212896
3662025
3000
-
-
-
-
-
19697871
8000
2842000
26212896
Interpretation:-Comparing the year 2008-2009 Current liabilities increased
22547871 rupees compare current assets increase 10905916 rupees only As a result The
Working capital decrease 11641956 rupees.
Funds Flow Statement for the year ended with 31.12.2008
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Interpretation: - The statement highlights the financing and investing activities of
The Financial Services Limited. The Financial Services Limited decreases miscellaneous
expenditure reserve by 69314928 rupees so that t The Financial Services take huge
amount of funds from that. In addition to this it takes some funds from operating
activities.
The Financial Services Limited redeems shares by Rs 66338250 with the
funds of decrease of miscellaneous expenditure reserve. In addition to this The Financial
Services Ltd use funds to purchase fixed assets and investment.
Statement of changes in Working Capital for the yearEnded 2009-2010:
(Rs)
Particulars 2009 2010 Increase Decrease
42
Sources Amount
Rs
Uses Amount
Rs
Funds from operations
Decrease in Miscellaneous
expenditure
Decrease in Working capital
7598848
69314928
11641956
Redemption of shares
Purchase of fixed assets
Additional Investments
66338250
361747
21855735
88555732 88555732
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A. Current assets:
Cash in hand
Balance with Banks
Balance with Banks
- Escrow Account
Telephone Deposits
K.S.T.Security Deposits
Receivables
Differed tax
Loans & Advances
Total Current Assets (A)
B. Current Liabilities
Contingency deposits
Staff Security deposits
Unclaimed deposits
Other liabilities
Statutory Audit fee
Provision for taxation
Total Current Liabilities(B)
(A-B) Working capital
Increase in working capital
4991
4687197
1677
8000
1000
16644241
305814
11341596
32994516
900681
5000
110505
21490190
20000
4700000
27231376
5763140
41405267
47168407
4345
5351063
---
8000
1000
51570132
90935
18278123
75303598
900681
---
---
14190579
28810
13015121
28135191
47168407
47168407
---
663866
---
---
34925891
6936527
---
5000
110505
7304611
646
1677
---
---
214879
-
-
8810
8315121
41405267
Interpretation: - Comparing the year 2009-2010 the current assets increased by
42309082 rupees compare the current liabilities 903815 only as a result working capital
increase 41405267 rupees. There fore short term financial position of The Financial
Services limited is good.
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Funds Flow Statement for the year ended with 31.12.2009
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Interpretation: - The statement highlights the financing and investing activities of
The Financial Services Limited. Funds from operations are the main source of The
Financial Services Limited with the amount of 23307434 rupees and it also takes
funds through sale of investment.
The Financial Services Limited uses the funds to purchase fixed assets to improve its
operations.
Statement of changes in Working Capital for the yearEnded 2010-2011:
(Rs)
45
Sources Amount
Rs
Uses Amount
Rs
Funds from operations
Sale of investment
23307434
21579416
Purchase of fixed assets
Increase in working Capital
3481583
41405267
44886850 44886850
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Particulars 2010 2011 Increase Decrease
A. Current assets:
Cash in hand
Balance with Banks
Deposits
Receivables
Loans & Advances
Total Current Assets (A)
B. Current Liabilities
Contingency deposits
Salary payable
Other liabilities
Statutory Audit fee
Provision for taxation
Provision for fringe benefit
tax
Provision for gratuity
Proposed dividend
Dividend tax
Total Current Liabilities(B)
(A-B) Working capital
Increase in working capital
4345
5351063
9000
51570132
18278123
75212663
900681
---
1419057928810
13015121
---------------
28135191
47077472304862
47442334
6611
21588270
106000
34771822
11566605
17239308
---
25267604
78277021
---
1775997
177290
308514
16584563
2325985
124656974
4738234
47442334
2266
16237207
97000
97288482
900681
28810
11239124
125793570
16798310
25267604
64086442
117290
308514
16584563
2325985
304862
12593570
Interpretation: - Comparing the year 2010-2011 the current assets increased by
96826645 rupees compare the current liabilities 96521783 as a result working capital
increase 304862 rupees. There fore short term financial position of The Financial Services
limited is good.
Funds Flow Statement for the year ended with 31.12.2010
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Interpretation: - The Financial Services Limited takes funds through funds from
operations only. The Financial Services Limited uses these funds to purchase fixed assets
and investment .In addition to this The Financial Services Limited increase deferred tax
asset also.
Statement of changes in Working Capital for the yearEnded 2011-2012: (Rs)
Particulars 2011 2012 Increase Decrease
47
Sources Amount
Rs
Uses Amount
Rs
Funds from operations 5331212 Purchase of fixed assets
Additional Investments
Increase in Differed tax asset
Increase in working capital
1583198
341604
3101548
304862
5331212 5331212
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A. Current assets:
Cash in hand
Balance with Banks
Sundry debtors
Loans & Advances
Total Current Assets (A)
B. Current Liabilities
Salary payable
Other liabilities
Provisions
Total Current Liabilities(B)
(A-B) Working capital
Increase in working capital
6611
21694270
34771822
115566605172039308
2526760478277021
21112349124656974
47382334
19307854
66690188
3204
50464281
17092699
87752825
155313009
17045048
59489793
12087980
88622821
66690188
66690188
28770011
8222556
18787228
9024369
64804164
3407
17679123
27813780
19307854
64804164
Interpretation: - Comparing the year 2011-2012 the current assets increased by
16726299 rupees, the current liabilities decrease 36034153 rupees as a result working
capital increase 19307854 rupees. There fore short term financial position of The
Financial Services limited is good.
Funds Flow Statement for the year ended with 31.12.2011
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Interpretation: - The Financial Services limited take huge amount of funds through
funds from operations and sale of investment. The Financial Services limited use some of
these funds to purchase fixed assets. The Financial Services limited is also using these
funds to increase working capital.
49
Sources Amount
Rs
Uses Amount
Rs
Funds from operations
Sale of Investment
Decrease of deferred tax asset
9372429
8210173
2144549
Purchase of fixed assets
Increase in working capital
419297
19307854
19727151 19727151
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Summary of Findings, Suggestions and conclusion
Findings
It is found that The Financial Services limited is holding sufficient share capital.
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It is inferred that The Financial Services limited is maintaining a minimum Cash
Balances.
It is interpreted The Financial Services limited is utilizing funds more in purchase
of fixed assets.
In 2008-2009 the Working capital of The Financial Services limited is decreased
by 11641956 rupees. In the same period the flow of funds of The Financial
Services limited is high because the company get huge amount of funds from
operations and also from decrease in miscellaneous expenditure reserve. The
Financial Services limited uses that fund to redeem the shares and to purchase
fixed assets.
In 2009-2010 the Working capital of The Financial Services limited is increased by
41405267 but the flow of funds is decreased because The Financial Services
limited do not get any funds from decrease of reserves, The Financial Services
limited get funds only from operations and sale of investment. The Financial
Services limited uses some of those funds to purchase fixed assets.
In 2010-2012 the Working capital of The Financial Services limited is increased
but the flow of funds is low as compared to previous year because The Financial
Services limited get funds only from operating activities. The Financial Services
limited use some funds to purchase fixed assets.
In 2011-2012the Working capital of The Financial Services limited is increased the
flow of funds is also increased highly because The Financial Services limited get
huge amount of funds from operations and sale of investment . The Financial
Services limited use those funds to purchase fixed assets.
Suggestions
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It may be suggested that The Financial Services limited should utilize LimitedFunds for the purchase of fixed assets. If The Financial Services limited spendmore money on purchase of fixed assets it effects the growth of the Ing Vysyafinancial services limited.
When the statement shows the decrease in working capital the bank require toraise short term funds to salvage its financial position.
Conclusion
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It can be concluded that funds flow performance of the financial services
limited is good because funds from operations are high in every year sources of funds. The
Financial services limited utilize some funds to purchase fixed assets every year the
financial services limited do some investment activities to utilize funds effectively.
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Chapter 5
BIBLIOGRAPHY
1. COST AND MANAGEMENT ACCOUNTING
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-M.E.Thukaram Rao.
2. MANAGEMENT ACCOUNTING
-J.Madegowda
3. MANAGEMENT ACCOUNTING
-I.M.Pandey
4. ADVANCED ACCOUNTANCY
-M.C.Shukla- T.S.Grewal
Revised By S.C.Guptha
Websites:
www.google.com
www.Ingvysyabank.com
55
http://www.google.com/http://www.ingvysyabank.com/http://www.google.com/http://www.ingvysyabank.com/ -
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ANUXARES
BALANCE SHEET AS AT 31ST MARCH, 2009
(Rs)
Particulars31-3-2009
31-3-2008
Sources of funds
Share holders funds
share capital
2211275
0
8845100
0Reserve & Surplus 1459954
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5 7000697
Total36712295
95451697
Application ofFunds
Fixed Assets
Gross block384405096
383928212
Less: Depreciation383823926
383708789
Net Block581170
219423
Investments30367925
8512250
Current Assets,
Loans Advances
a. Current assets 21652920 17299076
b.loans Advances11341596
4789525
(A)32994516
22088601
Less:
Current Liabilities,
Provisions
a. Current liabilities22506376 2808505
b.provisions4725000 1875000
(B)27231376 4683505
Net Current Assets(A-B)
5763140
17405096
MiscellaneousExpenditure
Profit &Loss Account-
69314928
Total36712295
95451697
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PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2009
(RS)
PARTICULARS31-3-2009
31-3-2008
INCOME
Lease Rentals 12060 2000379
Brokerage& commission6587230
5 17858193
Interest 128142 466419
Other Income1346587
8 79480867947838
5 28273077
EXPENDITURE
Finance 19216 2085529
Administrative4124404
4 3247016
Depreciation 157467 576364142072
7 5390181
Profit Before Tax3805765
8 22882896
Provision for Taxation 2536186 1858000
Profit After Tax3552147
2 21024896
Balance brought down fromprevious year
-6931492
8-
90339824Amount adjusted on capitalreduction
66338250 ----
Amount available for apparitions
3254479
4
-
69314928Apparitions
In termed Dividend2211275
0 ----
Corporate dividend tax 2833196 ----
General Reserve 3000000 ----Surplus/Deficit Carried to Balancesheet 4598848
-69314928
TOTAL3254479
4-
69314928
EPS-Basic(on Rs2.50 per share) 4.02 2.38
EPS-Diluted(on Rs2.50 per share) 4.02 2.38
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BALANCE SHEET AS AT 31ST MARCH, 2010
(Rs)
Particulars31-3-2010
31-3-2009
Sources of funds
Share holders funds
share capital22112750
22112750
Reserve & Surplus
3790697
9
1459954
5
Total60019729
36712295
Application ofFunds
Fixed Assets
Gross block388918200
384405096
Less: Depreciation384855447
383823926
Net Block 4062753581170
Investments 878856930367925
Current Assets,
Loans Advances
a. Current assets57025475
21652920
b.loans Advances18278123
11341596
(A)75303598
32994516
Less:
Current Liabilities,
Provisions
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a. Current liabilities15091260
22506376
b.provisions13043931
4725000
(B)28135191
27231376
Net Current Assets(A-B)
47168407
5763140
Total60019729
36712295
PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2010
(Rs)
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61
PARTICULARS31-3-2010
31-3-2009
INCOME
Lease Rentals 1012060 12060
Brokerage& commission
8915128
9
658723
05Interest 89686 128142
Other Income3408847
2134658
781243415
07794783
85
EXPENDITURE
Finance 529388 19216
Administrative7174381
4412440
44
Depreciation 1137174 157467
73410376
41420727
Profit Before Tax5093113
1380576
58
Provision for Taxation1137200
0253618
6
Profit After Tax3955913
1355214
72
Balance brought down fromprevious year 4598848
-693149
28
Amount adjusted on capitalreduction 0 66338250
Amount available for apparitions4415797
9325447
94
Apparitions
Intermed Dividend1437328
8221127
50
Corporate dividend tax 1878409283319
6
General Reserve 2150000300000
0Surplus/Deficit Carried to Balance
sheet
2575628
2
459884
8
TOTAL4415797
9325447
94
EPS-Basic(on Rs2.50 per share) 4.47 4.02
EPS-Diluted(on Rs2.50 per share) 4.47 4.02
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BALANCE SHEET AS AT 31ST MARCH, 2011
(Rs)
Particulars31-3-
201131-3-
2010
Sources of funds
Share holders funds
share capital2211275
02211275
0
Reserves & Surplus4323819
13790697
9
Total6535094
16001972
9
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Application of Funds
Fixed Assets
Gross block901177
6 3.89E+08Less:
Depreciation
330582
5 3.85E+08Net Block 5645951 4062753
Investments 9130173 8788569
Current Assets,
Loans Advancesa. Currentassets
56472703 57025475
b.loansAdvances
87752825 18278123
(A)1.72E+
08 75303598
Less:Current Liabilities,
Provisionsa. Currentliabilities
1.04E+08 15091260
b.provisions211123
49 13043931
(B)1.25E+
08 28135191
Net Current Assets(A-B)4738233
44716840
7
TOTAL
65350941
60019729
PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2011
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(Rs)
PARTICULARS31-3-2011
31-3-2010
INCOME
Lease Rentals 1013075 1012060
Brokerage& commission1885180
718915128
9
Interest 91562 89686
Other Income4937777
53408847
22390004
831243415
07
EXPENDITURE
Finance1127829
38 529388
Administrative
4898002
5
7174381
4Depreciation 2171506 1137174
163934469
73410376
Profit Before Tax7506601
45093113
1
Provision for taxation2561019
11137200
0
Profit After Tax4945582
33955913
1Balance brought down fromprevious year
75212105 4598848
Amount available for apparitions7521210
54415797
9
Apparitions
Intermed Dividend2211275
01437328
8
Corporate dividend tax 5427298 1878409
General Reserve 4945582 2150000Surplus/Deficit Carried to Balancesheet
26141912
25756282
TOTAL5374754
24415797
9
EPS-Basic(on Rs2.50 per share) 5.59 4.47
EPS-Diluted(on Rs2.50 per share) 5.59 4.47
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BALANCE SHEET AS AT 31ST MARCH, 2012
(Rs)
Particulars31-3-
201231-3-
2011
Sources of funds
Share holders funds
share capital 22112750
2211275
0
Reserves & Surplus 526106204323819
1
Total 747233706535094
1
Application of Funds
Fixed Assets
Gross block1268306
8 9011776
Less: Depreciation 6617820 3305825
Net Block 6065248 5645951
Deferred tax asset 1047934 3192483Investments 920000 9130173Current assets, loans andadvances
Sundry debtors1709269
93477182
2
Cash and Bank balances5046748
52170088
1
Loans and Advances8775282
51155666
05
(A)1553130
091720393
08Current liabilities andprovisions
Current liabilities7653484
11035446
25
Provisions1208798
02111234
9
(B)7782282
11346569
74
Net current assets(A-B) 666901884738233
4
Total 74723370
6535094
1
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PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2012
(Rs)
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67
PARTICULARS31-3-2012
31-3-2011
INCOME
Brokerage& commission2271041
361895311
46
Other Income4205084
82390004
832691549
84
2390004
83EXPENDITURE
Personal costs9333336
61127829
38
Operating Expenses7994818
74898002
5
Depreciation 3251995 21715061765335
481639344
69
Profit Before Tax9262143
67506601
4
Provision for taxation3378604
52561019
1
Profit After Tax5883539
14945582
3Profit brought down fromprevious year
26141912
25756282
Amount available for apparitions8497730
37521210
5
Apparitions
Interim Dividend3316912
52211275
0
Final Dividend 9950738
1658456
3Corporate dividend tax 6343098 5427298
General Reserve 5883539 4945582
Amount Carried to Balance sheet2963080
32614191
2
TOTAL8497730
37521210
5
EPS-Basic and Diluted 6.65 5.59
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