Upload
naman-sethi
View
222
Download
0
Embed Size (px)
Citation preview
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 1/83
INTRODUCTION
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 2/83
INTRODUCTION
HISTORY OF INSURANCE
Insurance is a subject listed in the Union list in the Seventh Schedule to the Constitution
of India where only centre can legislate. The insurance sector has gone through a number
of phases by allowing private companies to solicit insurance and also allowing foreign
direct investment of up to 26% (as of 2 !" there have been proposals to e#tend the $ &
upto ' % to strengthen the &nsurance )ar*et even further+ the insurance sector has been a
booming mar*et. ,owever- the largest life insurance company in &ndia- Life Insurance
Corporation of India is still owned by the government.
HISTORY
&n &ndia- insurance has a deep rooted history. &nsurance in various forms has been
mentioned in the writings of Manu ()anusmrithi+- Yagna a!"#a ( harmashastra+ and
$auti!#a (/rthashastra+. The fundamental basis of the historical reference to insurance in
these ancient &ndian te#ts is the same i.e. pooling of resources that could be re distributed
in times of calamities such as fire- floods- epidemics and famine. The early references to
&nsurance in these te#ts have reference to marine trade loans and carriers0 contracts.
&nsurance in its current form has its history dating bac* until !1!1- when Orienta! Life
Insurance Co%pan# was started by /nita havsar in $o!"ata to cater to the needs of
3uropean community. The pre independence era in &ndia saw discrimination between the
lives of foreigners (3nglish+ and &ndians with higher premiums being charged for the latter.
&n !14 - ombay )utual 5ife /ssurance Society became the first &ndian insurer.
/t the dawn of the twentieth century- many insurance companies were founded. &n the year! !2- the 5ife &nsurance ompanies /ct and the 7rovident $und /ct were passed to
regulate the insurance business. The 5ife &nsurance ompanies /ct- ! !2 made it
necessary that the premium rate tables and periodical valuations of companies should be
certified by an actuar# . ,owever- the disparity still e#isted as discrimination between
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 3/83
&ndian and foreign companies. The oldest e#isting insurance company in &ndia is the
Nationa! Insurance Co%pan# - which was founded in ! 6- and is still in business.
The 8overnment of &ndia issued an 9rdinance on ! :anuary ! ;6 nationalising the 5ife
&nsurance sector and 5ife &nsurance orporation came into e#istence in the same year. The
5ife &nsurance orporation (5& + absorbed !;' &ndian- !6 non &ndian insurers as also 4;
provident societies<2'; &ndian and foreign insurers in all. &n ! 42 with the 8eneral
&nsurance usiness (=ationalisation+ /ct was passed by the &ndian 7arliament- and
conse>uently- 8eneral &nsurance business was nationali?ed with effect from ! :anuary
! 4". ! 4 insurers were amalgamated and grouped into four companies- namely =ational
&nsurance ompany 5td.- the =ew &ndia /ssurance ompany 5td.- the 9riental &nsurance
ompany 5td and the United &ndia &nsurance ompany 5td. The 8eneral &nsuranceorporation of &ndia was incorporated as a company in ! 4! and it commence business on
:anuary !- ! 4".
The 5& had monopoly till the late s when the &nsurance sector was reopened to the
private sector. efore that- the industry consisted of only two state insurers@ 5ife &nsurers
(Life Insurance Corporation of India - 5& + and 8eneral &nsurers ( &enera! Insurance
Corporation of India - 8& +. 8& had four subsidiary companies.Aith effect from
ecember 2 - these subsidiaries have been de lin*ed from the parent company and wereset up as independent insurance companies@ Orienta! Insurance Co%pan# Li%ited - Ne'
India Assurance Co%pan# Li%ited - Nationa! Insurance Co%pan# Li%ited and United
India Insurance Co%pan# Li%ited .
INDUSTRY STRUCTURE
urrently &ndia is a USB'! billion industry. urrently- in &ndia only two million people
( .2% of the total population of ! billion+ are covered under )ediclaim- whereas indeveloped nations li*e US/ about 4;% of the total population are covered under some
insurance scheme. Aith more and more private companies in the sector- the situation may
change soon. 3 8 - 3S& and /& provide insurance services for niche mar*ets. So- their
scope is limited by legislation but enjoy some special powers.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 4/83
LEGAL STRUCTURE
The insurance sector went through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated. &t is governed by a
number of acts.
The &nsurance /ct of ! "1 ()* was the first legislation governing all forms of insurance to
provide strict state control over insurance business.5ife insurance in &ndia was completely
nationali?ed on :anuary ! - ! ;6- through the 5ife &nsurance orporation /ct. /ll 2';
insurance companies operating then in the country were merged into one entity- the Life
Insurance Corporation of India .
The 8eneral &nsurance usiness /ct of ! 42 was enacted to nationalise the about !general insurance companies then and subse>uently merging them into four companies. /ll
the companies were amalgamated into =ational &nsurance- =ew &ndia /ssurance- 9riental
&nsurance and United &ndia &nsurance- which were head>uartered in each of the four
metropolitan cities.Until ! - there were no private insurance companies in &ndia. The
government then introduced the &nsurance Cegulatory and evelopment /uthority /ct in
! - thereby de regulating the insurance sector and allowing private companies.
$urthermore- foreign investment was also allowed and capped at 26% holding in the &ndianinsurance companies.
&n 2 6- the /ctuaries /ct was passed by parliament to give the profession statutory status
on par with hartered /ccountants- =otaries- ost D Aor*s /ccountants- /dvocates-
/rchitects and ompany Secretaries./ minimum capital of USB1 million(Cs.' rore+
is re>uired by legislation to set up an insurance business.
AUTHORITIES
The industry recognises e#aminations conducted by &/& (for actuaries+- &&& (for agents-
bro*ers and t+ird,part# ad%inistrators + and &&&S5/ (for surveyors and loss assessors+.
T/ is the sole data repository for the non life industry.& /& gives voice for bro*ers while
8& ouncil and 5& ouncil are platforms for insurers./&8&3/- /&&3/- /&&3$- /&5& 3$-
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 5/83
/&5&3/- $5& 9/- 8&3/&/- 8&3U and =$&$A& cater to the employees of the insurers.&n
addition- there are a do?en 9mbudsman offices to address client grievances.
INSURANCE EDUCATION
Nationa! Insurance Acade%# - 7une- has a "2 acre campus D ; plus faculty- speciali?ed
in teaching- conducting research and providing consulting services in the insurance sector.
=&/ offers a two year 78 ) program in insurance. =&/ was founded as )inistry of
$inance initiative with capital support from the then public insurance companies- both 5ife
(5& + and =on 5ife (8& - =ational- 9riental- United D =ew &ndia+. A%it# Sc+oo! of
Insurance -an"ing and Actuaria! science .ASI-AS/ of /mity University- located in
=oida and established in 2 - offers ) / programs in &nsurance- &nsurance and an*ing-
and ).Sc.E .Sc. actuarial sciences to a 7ost 8raduate iploma in /ctuarial Sciences.
79= & ,3CCF U=&G3CS&TF is offering mba in insurance management. pondicherry
university only the central university which offering insurance management in &ndia -ir!a
Institute of Manage%ent Tec+no!og# is a graduate business school located in 8reater
=oida- established in ! 11- offers a 78 ) & ) program in insurance business
management.This program was launched in 2 by the entre for &nsurance and Cis*
)anagement and is accredited by the Insurance Regu!ator# and De e!op%ent
Aut+orit# . 5ife 9ffice )anagement /ssociation ( LOMA +-US/ is &)T3 ,0seducational partner and &)T3 , is an approved centre for 59)/ e#amination.
The C+artered Insurance Institute ( &&+- UH has accorded recognition (by way of credits+
to the &)T3 , 78 ) & ) program.Their two year 78 ) program in insurance
business has been recogni?ed as e>uivalent to the /ssociate level of the Insurance
Institute of India0 Mu%1ai .=5U- :odhpur- offers a two year ) / and one year )S (for
engineering graduates+ program in insurance.&C / controls all the &nsurance business in
&ndia.They are setting structure and boundaries for the insurance companies to act within.
Starting from licensing to approving the products- &C / directs the companies in &ndia.
They also protect customer interests in the country.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 6/83
/s per current guidelines issued by &C /- &nsurance ompanies are not permitted to invest
in &ndian epository Ceceipts ( & C+- while they are permitted to invest in 3>uity sharesE
ondsE ebentures. &C / needs to remove this disparity to open up investment
opportunity by &ns ompanies and thereby also enhance the li>uidity of & Cs ( ontributed
by Sanjay an*a- $ / $ S+
To become an insurance advisor in &ndia insurance act ! "1 mandates that the individual
has to be )ajor with sound mind. /fter the advent of &C / as &nsurance Cegulator &C /
has framed various regulations vi? training hours- e#amination- fee etc. which are amended
from time to time. Since =ovember 2 !! &C / the &nsurance Cegulator in &ndia has
introduced a new syllabus(& ""+ conceived and developed by &&- 5ondon.The syllabus
mainly aims to ma*e an &nsurance /gent as a $inancial 7rofessional. ut almost allinsurers are facing tough time ma*ing the candidates pass the e#amination which has
become relatively tough.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 7/83
COM2ANY 2ROFILE
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 8/83
COM2ANY 2ROFILE
United &ndia &nsurance ompany 5imited was incorporated as a ompany on !1th
$ebruary ! "1. 8eneral &nsurance usiness in &ndia was nationali?ed in ! 42. !2 &ndian
&nsurance ompanies- ' ooperative &nsurance Societies and &ndian operations of ;
$oreign &nsurers- besides 8eneral &nsurance operations of southern region of 5ife &nsurance
orporation of &ndia were merged with United &ndia &nsurance ompany 5imited. /fter
=ationali?ation United &ndia has grown by leaps and bounds and has !1" wor* forcespread across !"' offices providing insurance cover to more than ! rore policy holders.
The ompany has variety of insurance products to provide insurance cover from bulloc*
carts to satellites.
United &ndia has been in the forefront of designing and implementing comple# covers to
large customers- as in cases of 9=8 5td - 8)C ,yderabad &nternational /irport 5td-
)umbai &nternational /irport 5td Tirumala Tirupati evasthanam etc. Ae have been also
the pioneer in ta*ing &nsurance to rural masses with large level implementation ofUniversal ,ealth &nsurance 7rogramme of 8overnment of &ndia D Gijaya Caji :anani
Halyan Fojana ( covering '; la*hs women in the state of )adhya 7radesh+ - Tsunami :an
ima Fojana (in ' states covering '.; la*hs of families+ - =ational 5ivestoc* &nsurance
and many such schemes.
Ae have also made our presence in more than 2 tier && D &&& towns and villages through
our innovative )icro 9ffices.
OUR 3ISION
Ae United &ndia will be
• The most preferred insurer in &ndia with global footprint D recognition.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 9/83
• Trusted brand admired by all sta*eholders
• The best in class customer service provider leveraging technology D multiple
channels
• The provider of a broad range of innovative products to meet the needs of all
customer segments
• 8reat place to wor* with highly motivated and empowered employees
• Cecogni?ed for its contribution to the society
TO2 MANA&EMENT
• Top Manage%ent
• Manage%ent Hierarc+#
• -oard Of Directors• Regiona! C+iefs
S4NoNa%e Designation! Shri )ilind / Hharat hairman cum )anaging irector 2 Shri S. Surenther irector D 8eneral )anager " Smt /sha =air irector D 8eneral )anager ' Shri = Tobdan 8eneral )anager ; Shri . Hrishnamurthy 8eneral )anager 6 Shri ) G G halam 8eneral )anager 4 Shri /. ,oda 8eneral )anager 1 Shri G. 3aswara Haimal8eneral )anager
Smt T.5. /lamelu 8eneral )anager ! Smt Camma hasin 8eneral )anager !! Shri Cajase*haran hief Gigilance 9fficer !2 Shri ). 3lango eputy 8eneral )anager !" Shri S.7. =anda eputy 8eneral )anager !' Shri C. Shiva*umar eputy 8eneral )anager !; Smt 7. ,emamalini eputy 8eneral )anager
!6Shri /.
alasubramanianeputy 8eneral )anager
!4 Smt ). Sashi*ala eputy 8eneral )anager !1 Shri 7. H. )ahapatra eputy 8eneral )anager ! Shri H. 8ovindarajan eputy 8eneral )anager 2 Shri = 7auly Su*umar eputy 8eneral )anager 2! Shri G Srinath eputy 8eneral )anager 22 Shri C ,ariharan eputy 8eneral )anager 2" Smt Usha Camaswamy eputy 8eneral )anager
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 10/83
S4NoNa%e Designation2' Shri S ) hura eputy 8eneral )anager 2; Shri =arasimha Cao , eputy 8eneral )anager
COR2ORATE MISSION
Introducing Ourse! es
• U& is a leading 8eneral &nsurance ompany.
• )ore than three decades of e#perience in =on life &nsurance business.
• $ormed by the merger of 22 companies- conse>uent to nationalisation of 8eneral
&nsurance.
• ,ead Iuarters at hennai.
Corporate Mission
• To provide &nsurance protection to all.
• To ensure customer satisfaction
• To function on sound business principles.
• To help minimise national waste and to help develop the &ndian economy.
UNISUR&E
5+at is Unisurge6
=ovember- 2 4 mar*ed a significant in the history of United &ndia. 9ur top leadership
came together in ,yderabad to frame the vision of our company and determine the path
that we should ta*e in shaping our future. Ae resolve to transform our to be able to ta*e the
challenge posed by competition head on- and continue to be a leading player in general
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 11/83
insurance industry Since then- our company has embar*ed upon an ambitious enterprise
level transformation project-U=&SUC83 ownload Unisurge =ews 5etters
5+at are t+e initiati es under Unisurge6
Si7 t+e%es Initiati es
)ar*et
orporate
LC-8 7rovide differentiated service and organisational focus to large
corporate D goverment accounts- with focused development effort in the
Aest.
)ar*et
&ndividual
UME9 Motor Dea!er Officer8 apture greater share of motor through
93)Edealer
Hea!t+8 &mprove performance of health portfolio through hospitalrelationshipsJ&mprove T7/ in the medium term./lso review product
portfolio.
Motor8 evelop competitive products and offer additional value added
services toincrease mar*et share.
hannel
UME9 Agenc#8 Ce energise agent channel through better
development-supportand aligned incentives
UME9 -ancassurance8 rive higher premiums in ancassurance channel
through active management- leverage channel to target ruralEmicrofinance.
7rocess and &T
Ser ice Hu1s8 &mprove speed and efficiency of underwriting and claims
processes through consolidation
T2A C!ai% Hu1s8 &mprove speed and effectiveness of investment process.&nvestments rive higher returns by improving effectiveness of investment process.
,C and 7)S3nhance organi?ational accountability and strength ,C structure. reate
incentive system and lin* to rigorous performance management system.
CITI:ENS; CHARTER
OUR 3ISION8
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 12/83
• To become the most preferred insurer in &ndia- with global footprint and
recognition.
• To become a trusted brand admired by all sta*eholders.
• To become the best in class customer service provider leveraging technology and
multiple channels.
• To become the provider of a broad range of innovative products to meet the needs
of all customer segments.
• To be a great place to wor*- with highly motivated and empowered employees.
• To be recogni?ed for its contribution to the Society.
OUR COMMITMENTS8
5e s+a!!• /ct courteously- fairly and reasonably in all our dealings with the customers.
• )a*e sure all our 7olicy documents and claim procedures are clear and complete
information is given about our 7roducts and Services.
• eal >uic*ly with the grievances of the customers and resolve them through
nominated K ustomer are 9fficersK in all operating offices. RO Noda! Custo%er
Care Officers List4
• Cespond to all commercially viable general insurance needs of the citi?ens to
provide new covers and promote insurance inclusion.
• ontinue to provide customi?ed insurance products for the rural and particularly for
the wea*er sections of the Society at affordable price.
• ontinue to develop a professional wor*force for e#ecution of roles assigned to
them.
• ,ave a regular consultative process with all our sta*eholders and set up monitoring
mechanism for delivery of promised services to our customers.
STANDARDS FOR ACCESS TO CITI:ENS8
5e s+a!!
• ,ost on our Aebsite '''4uiic4co4in all relevant information relating to wor*ing
hours- documents re>uired for issuance of policies and claims settlement.
• )a*e available literature on products and services at all our offices.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 13/83
• Ceach out through electronic and print media- intermediaries and other active
communication channels available.
• 3nhance the access of citi?ens through all entre and 7ortal.
• 3armar* the time between ". 7) to ;. 7) of every Aednesday (ne#t wor*ing
day- in case Aednesday happens to be holiday+ for personal interaction of
customers with 9fficer in charge of the ranch E ivisional E Cegional office for
resolving of grievance.
STANDARDS FOR SER3ICIN&8
5e s+a!!
• Strive to carry out the timelines as prescribed by the Cegulator in respect of 7olicy
holderLs servicing.• e clear and transparent in see*ing fulfillment of re>uirements for settling a claim
or any other services to the customer.
STANDARDS OF FAIRNESS AND O2ENNESS8
5e s+a!!
• &nvite feedbac* from customers on services availed to suggest improvements.• Ceview the standards of services offered- annually with a view to improve the
benchmar*s.
-ENCHMAR$S FOR SER3ICIN&8
Decision on acceptance of 2roposa! for
• )otor- &ndividual ,ealth- 7ersonal /ccident and 9ther 7ersonal lines of &nsurance
M within " days of submission.
• $ire- )arine- 3ngineering and other commercial lines of &nsurance M within 4 days
of submission.
• &ssuance of policies within 4 days of acceptance of premium.
• &ssuance of Cenewal =otice !; days before e#piry of policy.
• /ppoint SurveyorE&nvestigator within '1 hours of intimation of claim
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 14/83
• ecide claims on 7ersonal 5ine and Cetail &nsurances within !; days and on
ommercial 5ine &nsurances within " days of receipt of re>uired
documentsEclarifications.
• 7rovide laim status to the customers within " days of receipt of re>uest by the
policy issuing office.
• )a*e payment of claim within " days of receipt of discharge voucher
• &nform the customer within " days of receipt of re>uired documents if the claim is
not admissible.
• Cegister grievances on the same day E monitor the grievances registered on
&ntegrated 8rievance )anagement System (&8)S+ through the ompanyLs
8rievance Cedressal System (U8)S+ U&MS porta!4
• 7rovide ac*nowledgement within " days of receipt.
Cesolve the grievances within !; days of receipt.
/ppeals on grievances not resolved- can be forwarded to ,ead office- ustomer are
epartment and resolution will be provided in !; days.
This harter is a summary of what United &ndia &nsurance ompany proposes to offer to
the citi?ens. The charter does not in any way become a part of the policy conditions or
policy contract of the customers of United &ndia &nsurance ompany or the conditions of
service to the wor*force of the ompany. (&mpact of this harter on ustomer Service
shall be evaluated periodically and wherever found necessary- introduction of re>uisite
penalty provisions in cases of non compliance to timelines shall be e#amined for the sa*e
of adding to efficacy of the harter.+
OFFICIAL LAN&UA&E IM2LEMENTATION
RE2ORT ON OFFICIAL LAN&UA&E IM2LEMENTATION
Ahile framing the constitution of our country- ,indi was unanimously accepted as
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 15/83
=ational language and ,indi was adopted as the =ational 5anguage of the Union of india
on!'th September- ! ' .
To commemorate this occasion K HINDI DAY K is celebrated on !'th September every
year.
/rticle "'" of the constitution states that KThe 9fficial language of the Union shall be
,indi in evnagari Script. The form of numerals to be used for the 9fficial purpose of the
union shall be the international form of &ndian numerals.
The company has shown good progress in the implementation of 9fficial 5anguage 7olicy
as per the /nnual 7rogramme on 9.5. &mplementation of 8ovt. of &ndia.
Some of the noteworthy achievement in 9fficial 5anguage &mplementation includes the
following@
E4 SER3ICES < TO FACILITATE EM2LOYEES8
9ne ,indi word a day is taught to all through &ntranet.
)essages- Ceports and 7hotos of ,indi ayEAee*- onference etc. are uploaded
regularly.
,indi ,ouse )aga?ine is available in &ntranet as 3 )aga?ine.
E4MAIL IN HINDI8
)ails are sent by various offices in ,indi.
2RO2O&ATION OF NON,LIFE INSURANCE THROU&H ELECTRONIC
MEDIA8
To populari?e non life insurance products among masses in rural and urban areas-
programmes li*e discussion- speeches etc. are organised through /ll &ndia Cadio. Cecently
a programme on ,ealth &nsurance was organised.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 16/83
-ILIN&UAL 2U-LICATIONS8
a. &T&N3=S ,/CT3C printed in bilingual and regional language
b. 7erformance- 7lanning- /nalysis- Ceview and iscussion and Iuality ircle of ,C
has been translated and printed in bilingual
c. 9Ls /= 9=TLSL vigilance manual had been printed in bilingual.
d. ompanyLs /nnual Ceport published in bilingual
e. ompanyLs corporate )otto is in bilingual.
f. ,andboo* on 9fficial 5anguage has been published to facilitate wor*ing in 9fficial
5anguage- for officers and employees
g. /gent0s )anual
h. 7ension Cules
2RODUCTS
FAMILY MEDICARE
!. A,3C3/S the insured designated in the Schedule hereto has by a proposal and
declaration dated as stated in the Schedule (which shall be the basis of this ontract and is
deemed to be incorporated herein+ has applied to U=&T3 &= &/ &=SUC/= 3
9)7/=F (hereinafter called the 9)7/=F+ for the insurance hereinafter set forth in
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 17/83
respect of person(s+named in the Schedule hereto (hereinafter called the &=SUC3
73CS9=+ and has paid premium as consideration for such insurance.
!.! =9A T,&S 795& F A&T=3SS3S that subject to the terms- conditions- e#clusions
and definitions contained herein or endorsed- or otherwise e#pressed hereon the ompany
underta*es that if during the period stated in the Schedule or during the continuance of this
policy by renewal- any insured person shall contract any disease or suffer from any illness
(hereinafter called &S3/S3+ or sustain any bodily injury through accident (hereinafter
called &=:UCF+ and if such disease or injury shall re>uire any such insured 7erson- upon
the advice of a duly >ualified 7hysicianE)edical SpecialistE)edical practitioner
(hereinafter called )3 & /5 7C/ T&T&9=3C+ or of a duly >ualified Surgeon
(hereinafter called SUC839=+ to incur hospitalisation e#penses for medicalEsurgicaltreatment at any =ursing ,omeE,ospitalE ay are entre in &ndia as herein defined
(hereinafter called ,9S7&T/5+ as an inpatient- the ompany will pay through Third 7arty
/dministrator (hereinafter called T7/+ to the ,ospital E =ursing ,ome or the &nsured
7erson the amount of such e#penses as are reasonably and necessarily incurred in respect
thereof by or on behalf of such &nsured 7erson but not e#ceeding the Sum &nsured in
aggregate in any one period of insurance stated in the schedule hereto.
!.2 &n the event of any claim(s+ becoming admissible under this scheme- the company will pay through T7/ to the ,ospital E =ursing ,ome or the insured person the amount of such
e#penses as would fall under different heads mentioned below- and as are reasonably and
necessarily incurred thereof by or on behalf of such &nsured 7erson- but not e#ceeding the
Sum &nsured in aggregate mentioned in the schedule hereto.
/. Coom- oarding and =ursing 3#penses as provided by the ,ospitalE=ursing ,ome upto
!% of Sum &nsured per day. This also includes =ursing are- C)9 charges- &G
$luidsE lood TransfusionE&njection administration charges and the li*e.
. &f admitted in & Unit- the ompany will pay upto 2% of Sum &nsured per day. .
Surgeon- /naesthetist- )edical 7ractitioner- onsultants- Specialists $ees
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 18/83
. /naesthetist- lood- 9#ygen- 9peration Theatre harges- surgical appliances-
)edicines D rugs- iagnostic
)aterials and O ray- ialysis- hemotherapy- Cadiotherapy- /rtificial 5imbs- cost of
prosthetic devices implanted during surgical procedure li*e 7acema*er- relevant laboratory
diagnostic tests- etc D similar e#penses.
3. /ll ,ospitalisation 3#penses (e#cluding cost of organ- if any+ incurred for donor in
respect of 9rgan transplant.
3#penses in respect of the
following specified illnesses will
be restricted as detailed below@
,ospitalisation enefits
5&)&TS $9C 3/ ,
,9S7&T/5&S/T&9=
a. ataract b. ,ernia
c. ,ysterectomy
d. $ollowing Specified major
surgeries
i. ardiac Surgeries
ii. ancer Surgeries
iii. rain Tumour
Surgeries
iv. 7acema*er implantation
$or sic*- sinus
a. ! % of S& subject to ma#imum
of Cs.2;- E
b. !;% of the S& subject to
ma#imum of
Cs." - E
c. 2 % of the S& subject to
ma#imum of
Cs.; - E
d. 4 % of the S& subject to
ma#imum of Cs.' 5ac
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 19/83
syndrome
v. ,ip replacement
vi. Hnee joint replacement
&n respect of persons above 6 years- ! % deductible will be applied on all admissible
claims..
!." ompany0s 5iability for all claims admitted in respect of anyEall insured personEs during
the period of insurance shall not e#ceed the Sum &nsured stated in the schedule.
STANDARD FIRE
• uildings
• )achinery and /ccessories
• Stoc* and stoc* in process
• ontents including furniture
5HAT CAN -E INSURED
• wellings 9ffices Shops ,ospitals(5ocated outside the compounds of
industrialEmanufacturing ris*s+
• &ndustrial E )anufacturing Cis*s
• Utilities located outside industrialEmanufacturing ris*s
• )achinery and /ccessories
• Storage Cis*s outside the compound of industrial ris*s
• Tan* farms E 8as holders located outside the compound of industrial ris*s
MOTOR 2AC$A&E
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 20/83
5e Co er
• P)otor vehicle which includes private cars )otorised Two wheelers and
ommercial vehicles e#cluding vehicles running on rails.
5+o can Insure 6
• P9wners of the vehicle $inanciers or 5essee who have insurable interest in a motor
vehicle.
Insured=s Dec!ared 3a!ue .ID3/
(a+ &n case of vehicle not e#ceeding ; years of age the & G has to be arrived at by applying
the percentage of depreciation specified in the tariff on the showroom price of the
particular ma*e and model of the vehicle.
(b+ &n case of vehicles e#ceeding ; years of age and 9bsolete models (manufacture of
those vehicles which have been stopped by the manufacturers+ they have to be insured for
the prevailing mar*et value of the same as agreed to between the insurer and the insured.
Shriram 5ife &nsurance ompany is the joint venture between the Shriram 8roup and the
Sanlam 8roup.
The Shriram 8roup is one of the largest and well respected financial servicesconglomerates in &ndia. The 8roup0s main line of activities in financial services include chit
fund- truc* financing- consumer durable financing- stoc* bro*ing- insurance bro*ing and
life insurance.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 21/83
The 8roup has a customer base of " lacs chit subscribers and investors and operates
through a networ* of 6" offices all over the country. The 8roup has the largest agency
force in the private sector consisting of more than 4;- loyal and dedicated agents.
Sanlam 5ife &nsurance 5imited- a part of the Sanlam 8roup- is one of the largest providers
of life insurance in South /frica with ".2 million individual policies under administration.
&t has a significant presence across South /frica- United Hingdom and =amibia and is a
major provider of life insurance- retirement annuities- saving and investment products-
personal loans- home loans and trust services to individuals. The shareholder0s funds of
Sanlam 5ife e>uates to US '.' billion.
The Sanlam 8roup was established in ! !1 and has a leadership position in financial
services in South /frica. emutuali?ed in ! 1- the group is listed on the :S3 Securities
3#change in :ohannesburg and on the =amibian Stoc* 3#change. &t has a current mar*et
capitali?ation of US ;.' billion. The Sanlam 8roup also operates in the areas of group
schemes- retirement funds- short term insurance- asset management and other financial
services. &t has an employee strength of 1- and has shareholder funds in e#cess of US
'.6 billion. 9n "!st ecember 2 ' it had more than US '1 billion assets under
management.
3ISION
The Shriram 5ife &nsurance ompany is set out with the objective of reaching out to the
common man with a host of products and services that would be helpful to him in his path
to prosperity.
3fficiency in operations- integrity and a strong focus on catering to the needs of the
common man- by offering him high >uality and cost effective products and services- are the
values driving the organi?ation. These core values are deep rooted within the organi?ation
and have been strongly adhered to over the decades.
The company prides itself on its perfect understanding of the customer. 3ach product or
service is tailor made to perfectly suit the needs of the customer. &t is this guiding
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 22/83
philosophy of putting people first that has brought the ompany closer to the grassroots
and has made it the preferred choice for all the truc* financing re>uirements amongst the
customers.
OUR TEAM
/ Shriram veteran- )r.Caghunathan is a fellow of the &nsurance &nstitute of &ndia and
wor*ed with 5& for 24 years and with the Shriram 8roup for another 2; years in various
capacities. ,e is involved in guiding and mentoring Underwriting- laims and legal teams
and acts as a bridge between Sales teams and ,9. / firm believer in empowering people-
he has nurtured highly competent and business savvy teams within these functions.
/ hartered /ccountant with an ) / from O5C& :amshedpur and an /ssociate of the
&nsurance &nstitute of &ndia- )r.,ariharan has been with the Shriram 8roup for more than
!6 years. ,e previously wor*ed with the &ndian Cailways and Tata )otors for over two
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 23/83
decades. ,e was the first Gice 7resident of )edicorp technologies and 39 M 79 of
7roactive Solutech. /s &9- he and his team manages funds of around 2 crores.
7reviously the )anaging irector of Shriram &nvestments 5td- )s./*hila Srinivasan was
selected as one of the 2; most powerful business women in the country by usiness Today
maga?ine. She is also a ,onorary consul for =etherlands and is associated with many
social welfare programmes.
2RODUCTS
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 24/83
Shrilife is an participating life insurance plan that combines security and saving.
/ Traditional 7lan where the total benefit payable during the policy term is two times the
sum assured.
/ Traditional participating life insurance plan that provides security for the childs
education.
The 7remium is payable only once but life cover will be available throughout the policy
term.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 25/83
This life &nsurance plan provides financial support at the time of marriage of the children.
Shri Sura*sha is an increasing and without profits Term /ssurance plan that gives life
cover for individuals.
This life &nsurance plan that provides a series of payments at regular intervals as long as the
policy holder survives and returns the purchase price upon death to the nominee
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 26/83
Shri /*shay =idhi is a regular premium money bac* policy with participation in
profits.The premiums are payable at regular intervals during the term of the policy.
This l ife &nsurance plan with a conversion option to change a whole 5ife /ssurance 7lan
on ;th last policy anniversary.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 27/83
This life &nsurance plan designed to provide an affordable -easy to obtain an financial
safety.
This life &nsurance plan designed to ma*e you a real champion in reaching your $inancial
target.
Shiram Ujjwal 5ife(S7+ to accomplish all your financial goals.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 28/83
&f Fou are thin*ing of &nvesting -the first thing you need to do is wor* out what your
personal and financial goals
To protect your loved ones against une#pected events and ma#imi?e your investments.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 29/83
This 8roup Term /ssurance plan that assures payment of sum assured upon death.
This group insurance product is basically for loan providers who will be the master
policyholder.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 30/83
This a )icro &nsurance plan that will give life cover for socially wea*er section.
This life &nsurance plan that will give life cover for socially wea*er sections of
population. .
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 31/83
INTRODUCTION TO TO2IC
INTRODUCTION TO TO2IC
The process of putting an analysis down in writing can be instrumental in ma*ing sure as
many stones as possible have been turned over when researching a company. Fa%ed
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 32/83
in estor 2eter L#nc+ is credited with using the above phrase and is >uoted as saying that
Qthe person that turns over the most roc*s wins the game. /nd that0s always been my
philosophy.R elow is an overview of the major sections to consider when writing a
financial analysis report on a company.
Co%pan# O er ie'
/ report should start with a description of the company in order to help investors
understand the business- its industry- its motivation and any edge it might have over its
competitors. These factors can prove invaluable in helping to e#plain why a company
might be a profitable investment or not. / firmLs annual report- )>,$ filing or >uarterly !
I with the Securities D 3#change ommission provide ideal starting pointsJ it is surprising
how rare it is for industry e#perts to refer to original company filings for important details.
)ore valuable detail can be obtained from industry trade journals- reports from *ey rivals
and other analyst reports.
To also capture *ey fundamentals to describe a company- loo* to )ichael 7orterJ T+e
2orter;s Fi e Forces %ode! helps e#plain a companyLs place within its industry.
Specifically- the factors include the threat for new entrants to enter the mar*et- the threat
for substitute products or services- the e#tent to which suppliers are able to influence the
company and the intensity of rivalry among e#isting competitors.
In est%ent T+esis
The motivation for a bullish or bearish stance on a company is uncovered in this section. &t
can come at the top of a report and include parts of a company overview- but regardless of
its position in an analysis should cover the *ey investment positives and negatives.
/ fundamental analysis- which can also be its own section- can be included here and
contain research on the firmLs financial statements- such as sales and profit growth trends-
cash flow generation strength- debt levels and overall li>uidity- and how this compares to
the competition. =o detail is too small in this sectionJ it can also cover efficiency ratios li*e
the primary components in the cas+ con ersion c#c!e - turnover ratios and a detailed
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 33/83
brea*down of return on e?uit# components- such as the u7ont identity- which will
1rea" ROE into t+ree to fi e different %etrics .
The most important component of analy?ing past trends is to synthesi?e it into a forecast of
the companyLs performance. =o analyst has a crystal ball- but the best ones are able toaccurately e#trapolate past trends into the future- or decide which factors are the most
important in defining success for a company going forward.
3a!uation
The most important part of any financial analysis is to come to an independent value for the
stoc* and compare this to the mar*et price. There are three primary valuation techni>ues@
The first- and arguably most fundamental- techni>ue is to estimate a companyLs future cash
flows and discount them bac* to the future at an estimated discount rate. This is generally
referred to as a discounted cas+ f!o' analysis. The second is called relative value where
the fundamental metrics and valuation ratios (price to sales- price to earnings- 7E3 to
growth- etc.+ are compared to competitors. /nother comparison analysis is to loo* at what
other rivals have been bought out for or the price paid for an ac>uisition. The third and last
techni>ue is to loo* at boo* value and try to estimate what a company might be worth if
bro*en up or li>uidated. / boo* value analysis is especially insightful for financial stoc*s-
for instance.
$e# Ris"s
This section can be part of the bullEbear story in the investment thesis- but is meant to detail
*ey factors that may derail either a bullish or bearish stance. The loss of patent protection
for a bloc*buster drug for a pharmaceutical company is a great e#ample of a factor that can
weigh heavily on the valuation for its underlying stoc*. 9ther considerations include the
industry in which the firm operates. $or e#ample- t+e tec+no!og# industr# is mar*ed byshort product life cycles- which can ma*e it hard for a firm to *eep its edge following a
successful product release.
Ot+er Considerations
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 34/83
The above sections could prove sufficient- but depending on the stones uncovered during a
financial analysis- other new sections might be warranted. Sections covering corporate
go ernance - the political environment or nearer term news flow- might be worthy of a
fuller analysis. asically- anything important that can impact the future value of a stoc*
should e#ist somewhere within the report.
T+e -otto% Line
7erformance of the underlying company is most certainly to drive the performance of its
stoc* or bond in the future. 9ther derivative securities- such as futures and options- will
also depend on an underlying investment- be it a commodity or a company. $iguring out
the *ey drivers to the performance of a stoc* and putting it down in writing can be aninvaluable endeavor for any investor- regardless of if a formal research report is needed.
FINANCIAL ANALYSIS
Financia! ana!#sis (also referred to as financia! state%ent ana!#sis or accounting
ana!#sis or Ana!#sis of finance + refers to an assessment of the viability- stability and
profitability of a 1usiness - sub business or pro@ect.
&t is performed by professionals who prepare reports using ratios that ma*e use of
information ta*en from financia! state%ents and other reports. These reports are usually
presented to top management as one of their bases in ma*ing business decisions.
• ontinue or discontinue its main operation or part of its businessJ
• )a*e or purchase certain materials in the manufacture of its productJ
• /c>uire or rentElease certain machineries and e>uipment in the production of its
goodsJ
• &ssuestoc"s or negotiate for a ban* !oan to increase its 'or"ing capita! J
• )a*e decisions regarding investing or lending capitalJ
• 9ther decisions that allow management to ma*e an informed selection on various
alternatives in the conduct of its business.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 35/83
GOALS
$inancial analysts often assess the following elements of a firm@
!. 2rofita1i!it# its ability to earn income and sustain growth in both the short and long
term. / company0s degree of profitability is usually based on the inco%e state%ent - which
reports on the company0s results of operationsJ
2. So! enc# its ability to pay its obligation to creditors and other third parties in the long
termJ
". Li?uidit# its ability to maintain positive cas+ f!o' - while satisfying immediate
obligationsJ
Both 2 and 3 are based on the company's 1a!ance s+eet , which indicates the financial
condition of a business as of a given point in time.
'. Sta1i!it# the firm0s ability to remain in business in the long run- without having to
sustain significant losses in the conduct of its business. /ssessing a company0s stability
re>uires the use of both the income statement and the balance sheet- as well as other
financial and non financial indicators. etc.
METHODS
$inancial analysts often compare financia! ratios (of so! enc# - profita1i!it# - growth- etc.+@
• 2ast 2erfor%ance /cross historical time periods for the same firm (the last ;
years for e#ample+-
• Future 2erfor%ance Using historical figures and certain mathematical and
statistical techni>ues- including present and future values- This e#trapolation
method is the main source of errors in financial analysis as past statistics can be
poor predictors of future prospects.
• Co%parati e 2erfor%ance omparison between similar firms.
These ratios are calculated by dividing a (group of+ account balance(s+- ta*en from the1a!ance s+eet and E or the inco%e state%ent - by another- for e#ample @
Net inco%e / equity = return on e?uit# !"#$
Net inco%e / total assets = return on assets !"%$
&toc price / earnings per share = 2 E ratio
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 36/83
omparing financial ratios is merely one way of conducting financial analysis. Financia!
ratios face several theoretical challenges@
• They say little about the firm0s prospects in an absolute sense. Their insights about
relative performance re>uire a reference point from other time periods or similar
firms.
• 9ne ratio holds little meaning. /s indicators- ratios can be logically interpreted in at
least two ways. 9ne can partially overcome this problem by combining several
related ratios to paint a more comprehensive picture of the firm0s performance.
• Seasonal factors may prevent year end values from being representative. / ratio0s
values may be distorted as account balances change from the beginning to the end
of an accounting period. Use average values for such accounts whenever possible.
• $inancial ratios are no more objective than the accounting methods employed.
hanges in accounting policies or choices can yield drastically different ratio
values.
• Funda%enta! ana!#sis .
$inancial analysts can also use percentage analysis which involves reducing a series of
figures as a percentage of some base amount. $or e#ample- a group of items can be
e#pressed as a percentage of net income. Ahen proportionate changes in the same figure
over a given time period e#pressed as a percentage is *nown as hori?ontal analysis.
Gertical or common si?e analysis- reduces all items on a statement to a Qcommon si?eR as a
percentage of some base value which assists in comparability with other companies of
different si?es. /s a result- all &ncome Statement items are divided by Sales- and all
alance Sheet items are divided by Total /ssets
/nother method is comparative analysis. This provides a better way to determine trends.
omparative analysis presents the same information for two or more time periods and is
presented side by side to allow for easy analysis.
2ROFITA-ILITY
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 37/83
2rofita1i!it# is the primary goal of all business ventures. Aithout profitability the business
will not survive in the long run. So measuring current and past profitability and projecting
future profitability is very important.
7rofitability is measured with income and e#penses. &ncome is money generated from the
activities of the business. $or e#ample- if crops and livestoc* are produced and sold-
income is generated. ,owever- money coming into the business from activities li*e
borrowing money do not create income. This is simply a cash transaction between the
business and the lender to generate cash for operating the business or buying assets.
3#penses are the cost of resources used up or consumed by the activities of the business.
$or e#ample- seed corn is an e#pense of a farm business because it is used up in the
production process. Cesources such as a machine whose useful life is more than one year is
used up over a period of years. Cepayment of a loan is not an e#pense- it is merely a cash
transfer between the business and the lender.
7rofitability is measured with an Qincome statementR. This is essentially a listing of income
and e#penses during a period of time (usually a year+ for the entire business. ecision Tool
&ncome Statement Short $orm- is used to do a simple income statement analysis. /n
&ncome Statement is traditionally used to measure profitability of the business for the past
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 38/83
accounting period. ,owever- a Qpro forma income statementR measures projected
profitability of the business for the upcoming accounting period. / budget may be used
when you want to project profitability for a particular project or a portion of a business.
Ceasons for omputing 7rofitability
Ahether you are recording profitability for the past period or projecting profitability for the
coming period- measuring profitability is the most important measure of the success of the
business. / business that is not profitable cannot survive. onversely- a business that is
highly profitable has the ability to reward its owners with a large return on their
investment.
&ncreasing profitability is one of the most important tas*s of the business managers.)anagers constantly loo* for ways to change the business to improve profitability. These
potential changes can be analy?ed with a pro forma income statement or a 7artial udget.
7artial budgeting allows you to assess the impact on profitability of a small or incremental
change in the business before it is implemented.
/ variety of 7rofitability Catios ( ecision Tool+ can be used to assess the financial health
of a business. These ratios- created from the income statement- can be compared with
industry benchmar*s. /lso- &ncome Statement Trends ( ecision Tool+ can be trac*ed over
a period of years to identify emerging problems.
ACCOUNTIN& METHODS
Cas+ Met+od of Accounting
Traditionally farmers have used the Qcash methodR of accounting where income and
e#penses are reported on the income statement when products are sold or inputs are paid
for. The cash method of accounting- used by most farmers- counts an item as an e#pense
when it is purchased- not when it is used in the business. This has been used as a method of
managing ta# liability from year to year. ,owever- many non farm business accounting
systems count an item as an e#pense only when it is actually used in the business activities.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 39/83
,owever- net income can be distorted with the cash method of accounting by selling more
than two years crops in one year- selling feeder livestoc* purchased in a previous year- and
purchasing production inputs in the year before they are needed.
Accrua! Met+od of Accounting
To provide a more accurate picture of profitability- the accrual method of accounting can
be used. Aith this method- income is reported when products are produced (not when they
are sold+ and e#penses are reported when inputs are used (not when they are purchased+./ccrual accounting uses the traditional cash method of accounting during the year but adds
or subtracts inventories of farm products and production inputs on hand at the beginning
and ending of the year.
/ wor*sheet for computing =et $arm &ncome Statement ( ecision Tool+ with accrual
accounting is available that contains schedules for including beginning and ending
inventories. &nformation on creating and using a =et $arm &ncome Statement is also
available.
/lthough seldom used in farming- ouble 3ntry /ccounting (&nformation $ile
Understanding ouble 3ntry /ccounting+ will provide results similar to accrual
accounting. ouble entry accounting also updates the net worth statement every time an
income or e#pense occurs.
efining 7rofitability
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 40/83
2rofita1i!it# can 1e defined as eit+er accounting profits or econo%ic profits4
Accounting 2rofits .Net Inco%e/
Traditionally- farm profits have been computed by using Qaccounting profitsR. To
understand accounting profits- thin* of your income ta# return. Four Schedule $ provides a
listing of your ta#able income and deductible e#penses. These are the same items used in
calculating accounting profits. ,owever- your ta# statement may not give you an accurate
picture of profitability due to &CS rapid depreciation and other factors. To compute an
accurate picture of profitability you may want to use a more accurate measure of
depreciation.
/ccounting profits provide you with an intermediate view of the viability of your business.
/lthough one year of losses may not permanently harm your business- consecutive years of
losses (or net income insufficient to cover living e#penditures+ may jeopardi?e the viability
of your business.
Econo%ic 2rofits
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 41/83
&n addition to deducting business e#penses- opportunity costs are also deducted when
computing Qeconomic profitsR. 9pportunity costs relate to your money (net worth+- your
labor and your management ability. &f you were not farming- you would have your money
invested elsewhere and be employed in a different career. 9pportunity cost is the
investment returns given up by not having your money invested elsewhere and wages given
up by not wor*ing elsewhere. These are deduced- along with ordinary business e#penses- in
calculating economic profit.
3conomic profits provide you with a long term perspective of your business. &f you can
consistently generate a higher level of personal income by using your money and labor
elsewhere- you may want to e#amine whether you want to continue farming.
7rofitability is not ash $low
7eople often mista*enly believe that a profitable business will not encounter cash flow
problems. /lthough closely related- profitability and cash flow are different. /n income
statement lists income and e#penses while the cash flow statement lists cash inflows and
cash outflows. /n income statement shows profitability while a cash flow statement shows
li>uidity.
)any income items are also cash inflows. The sale of crops and livestoc* are usually both
income and cash inflows. The timing is also usually the same (cash method of accounting+
as long as a chec* is received and deposited in your account at the time of the sale. )any
e#pense items are also cash outflow items. The purchase of livestoc* feed is both an
e#pense and a cash outflow item. The timing is also the same (cash method of accounting+
if a chec* is written at the time of purchase.
,owever- there are many cash items that are not income and e#pense items- and vice versa.
$or e#ample- the purchase of a tractor is a cash outflow if you pay cash at the time of
purchase as shown in the e#ample in Table 2. &f money is borrowed for the purchase using
a term loan- the down payment is a cash outflow at the time of purchase and the annual
principal and interest payments are cash outflows each year as shown in Table ".
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 42/83
The tractor is a capital asset and has a life of more than one year. &t is included as an
e#pense item in an income statement by the amount it declines in value due to wear and
obsolescence. This is called QdepreciationR. The depreciation e#pense is listed every year.
&n the tables below a B4 - tractor is depreciated over seven years at the rate of B! -
per year.
epreciation calculated for income ta# purposes can be used. ,owever- to accurately
calculate net income- a more realistic depreciation amount should be used to appro#imate
the actual decline in the value of the machine during the year.
&n Table "- where the purchase is financed- the amount of interest paid on the loan isincluded as an e#pense- along with depreciation- because interest is the cost of borrowing
money. ,owever- the principal payments are not an e#pense but merely a cash transfer
between you and your lender.
Ot+er Financia! State%ents
/n income statement is only one of several financial statements that can be used to
measure the financial strength of a business. 9ther common statements include the balance
sheet or net worth statement and the cash flow statement- although there are several other
statements that may be included.
These statements fit together to form a comprehensive financial picture of the business.
The balance sheet or =et Aorth Statement shows the solvency of the business at a specific
point in time. Statements are often prepared at the beginning and ending of the accounting
period (i.e. :anuary !+. The statement records the assets of the business and their value and
the liabilities or financial claims against the business (i.e. debts+. The amount by which
assets e#ceed liabilities is the net worth of the business. The net worth reflects the amount
of ownership of the business by the owners.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 43/83
The ash $low Statement is a dynamic statement that records the flow of cash into and out
of the business during the accounting period. / positive (negative+ cash flow will increase
(decrease+ the wor*ing capital of the business. Aor*ing capital is defined as the amount of
money used to facilitate business operations. &t is calculated as current assets (cash or near
cash assets+ less current liabilities (liabilities due during the upcoming accounting period+.
/ omplete set of $inancial Statements ( ecision Tool+- including the beginning and
ending net worth statements- the income statement- the cash flow statement- the statement
of owner e>uity and the financial performance measures is available to do a comprehensive
financial analysis of your business.
To help you assess the financial health of your business- $inancial 7erformance )easures
allows you to give your business a chec* up. &nterpreting $inancial 7erformance )easures
helps you to understand what these performance measures mean for your business.
[email protected]#tension.iastate.eduEagdmEwholefarmEhtmlEc" 2'.html
NEED OF THE STUDY
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 44/83
The purpose of my study is descriptive. &t is the conceptual structure within which the
research is conducted. &ts function is to provide for the collection of revelant evidence with
minimal e#penditure of effort- time and money.
Descripti e researc+ study i.e. to portray accurately the characteristics of a particular
service.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 45/83
O-BECTI3ES OF THE RESEARCH
To study the accounting method of $inancial analysis .
To study the profitability analysis of &nsurance industry
To determine the li>uidity position of the companies .
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 46/83
RESEARCH METHODOLO&Y
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 47/83
RESEARCH METHODOLO&Y
MEANIN& 8 Cesearch methodology means the var ious means or methods
used for col lect ing the data for our study. ur ing the course of th is studyw e c om e a cr os s m an y p eo pl e a nd c om pl et ed m y s tu dy b y t he h el p o f
receiving data from these people.
THE RESEARCH 2ROCESS
! 4 COLLECTION OF DATA @ oth the primary D secondary data has been collected
from the mar*et D company. The company provided the secondary data D primary data is
collected through the medium of face to face interaction D interview from various personsin the enterprise.
2. OR&ANISATION OF DATA @ ata once collected the further processing is done- the
data collected by me are carefully done through in a useful D relevant manner Dproperly
organi?ed.
". 2RESENTATION OF DATA @ The data collection is of no use unless D until it is
given in the presentable form. Thus after proper organi?ation the data is given in
presentable form with the complete details- with the help of bar diagram- pie carts etc.
4 ANALYSIS OF DATA8, The data is carefully analy?ed *eeping in the consideration
both the pros D cons for the purpose of arriving at concrete conclusion.
; 4 INTER2RETATION OF DATA @/fter carefully analy?ed the data- it has been aptly interpreted in order to give concrete
conclusion D proper recommendation.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 48/83
RESEARCH DESI&N
Cesearch design involves a series of rational decision ma*ing benefits at each point from
such sophisticated design to ensure accuracy- confidence and commensurate with large
investment of resources.
2UR2OSE OF STUDY8
3#ploratory
escriptive
,ypothesis testing
The purpose of my study is descriptive. &t is the conceptual structure within which theresearch is conducted. &ts function is to provide for the collection of revelant evidence with
minimal e#penditure of effort- time and money.
Descripti e researc+ study i.e. to portray accurately the characteristics of a particular
service.
DATA SOURCES 8,
Two typ es o f d a ta h ave b een co ll ec ted fo r co mp let in g the s tu d y- tho se
were@
! . 7 rima ry a ta
2 . S ec on da ry at a
DATA COLLECTION
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 49/83
Secondar# data8 &t is the data- which has already collected by some organi?ation for some
purpose or research study. The data for my study has been collected from various.
Secondary data means that data that are already available i.e. refers to data which hasalready been collected and analy?ed by someone else. The sources used in this case are
)4 -oo"s
4 Bourna!s
4 Maga ines
4 Internet sources
G4 Ne'spapers
M# data co!!ection is 1ased on secondar# data i4e4 fro% 'e1sites0 1oo"s0 pro'ess etc4
SAM2LIN& DESI&N 8
SAM2LIN& UNIT 8 &t is the unit which would be considered for the purpose of study @
7rofitability analysis of pharmaceutical industry .
SAM2LE SI:E8 This refers to the number of items to be selected from the universe to
constitute a sample. To commence the study- following sample si?e will be ta*en@
profitability /nalysis of 7harmaceutical industry co%panies . United India
Insurance S+ri Ra% Insurance /
SAM2LIN& METHOD 8 Non pro1a1i!it# %et+od
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 50/83
DATA ANALYSIS
INTER2RETATION
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 51/83
DATA ANALYSIS INTER2RETATION
!. EARNIN&S 2ER SHARE .IN CS. /
TA-LE 8 )
SHO5IN& STATUS OF E2S O3ER THE 2ERIOD OF STUDY
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>J
UNITED !''.;' !'".4!! 6." 16. 6
1".6
SHRI RAM 6'."" ;2.61 ''.1; ";.44 24.1
FI&URE 8 )
INTER2RETATION
&t is revealed from the table and figure that earnings per share of both the two &nsurance
companies increasing year after year. 37S of United ranged from1".6 to !''.;' during
the period of study- whereas the Shri Cam has managed to earn 24.1 to 6'."" on per
share.
4 DI3IDEND 2ER SHARE
TA-LE 8
United S+ri Ra%
)ar !2
)ar !!
)ar !
)ar
)ar 1
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 52/83
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 53/83
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED 22 .6" 2" . ' !4".6! !'4.42 !2'.44
SHRI RAM! 6.2; 2."6 ! 4."2 16.! ;2.;6
FI&URE,
INTER2RETATION&t is revealed from the table and figure that 9perating profit per share of both the two
&nsurance companies increasing year after year. 9perating profit per share of United
ranged from !2'.44 to 22 .6" during the period of study- whereas the Shri Cam has
managed to earn ;2.;6 to ! 6.2; on per share.
4 NET O2ERATIN& INCOME 2ER SHARE .RS/
TA-LE 8
COM2AN MAR MAR MAR MAR MAR
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 54/83
Y NAME >) >)) >)> >> >>JUNITED !-";".!; !-!4 .'; 1 .1" 1""."1 4! .;'
SHRI RAM '"6. " '6'.44 "'1.;4 2; . 1 !44.1
FI&URE,
INTER2RETATION
&t is revealed from the table and figure that =et operating income per share of both the two
&nsurance companies increasing year after year. =et operating income per share of United
ranged from 4 !.;' to !";".; during the period of study- whereas the Shri Cam has
managed to earn !44.1 to '"6. " on per share.
2ART II8 2ROFITA-ILITY RATIOS
)4 O2ERATIN& MAR&IN .K/
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED !6. 6 ! .; ! .2 !4.42 !4.""
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 55/83
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 56/83
INTER2RETATION
&t is revealed from the table and figure that 8ross profit margin % of both the two
&nsurance companies increasing and decreasing year after year. 8ross profit margin of
United ranged from !;.'! to !;.11 during the period of study- whereas the Shri Cam has
managed to earn 26."; to 22." on per share.
4 NET 2ROFIT MAR&IN .K/
TA-LE 8
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>J
UNITED! .;' !2. " !!.6; ! .!2 !!.2!
SHRI RAM !'.46 !!."; !2.12 !".;4 !;.;;
FI&URE,
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 57/83
INTER2RETATION
&t is revealed from the table and figure that =et profit margin% of both the two &nsurance
companies increasing and decreasing year after year. =et profit margin% of United
ranged from !!.2! to ! .;' during the period of study- whereas the Shri Cam has managed
to earn !;.;; to !'.46 on percentage.
4 RETURN ON NET 5ORTH .K/
TA-LE 8 J
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED !".1 !;.4' !".42 !'.; !;. '
SHRI RAM!".4 !;."2 !".1" !4.4' !6.'"
FI&URE,J
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 58/83
INTER2RETATION&t is revealed from the table and figure that Ceturn on net worth of both the two &nsurance
increasing and decreasing year after year. Ceturn on net worth of United ranged from
!;. ' to !".1 during the period of study- whereas the Shri Cam has managed to earn
!6.'" to !".4 on percentage.
2ART III8 LE3ERA&E RATIOS
!. TOTAL DE-T E UITY
TA-LE 8
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED !2.! !2.1! ! . 6 !". ! !".4;
SHRI RAM 4.41 .4; 1.46 ! .62 ! .;"
FI&URE,
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 59/83
INTER2RTATION 8
&t is revealed from the table and figure that Total debtEe>uity of both the two &nsurance
increasing and decreasing year after year. Total debt Ee>uity of United ranged from !".4; to
!2.! during the period of study- whereas the Shri Cam has managed to earn ! .;" to 4.41
on per share.
2. O5NERS FUND AS K OF TOTAL SOURCE
TA-LE 8 )>
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED 4.;4 4.2' 1."6 6.4 6.41
SHRI RAM!!." ." ! .2' 1.6 1.64
FI&URE,)>
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 60/83
INTER2RETATION
&t is revealed from the table and figure that 9wner fund as % of total source of both the two
&nsurance companies increasing and decreasing year after year. 9wner fund as % of total
source of United ranged from 6.41 to 4.;4 during the period of study- whereas the Shri
Cam has managed to earn 1.64 to !!." on per share.
4 FI9ED ASSETS TURNO3ER RATIO
TA-LE 8 ))
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED 4.26 4.2 6."2 ;.'' ;.!
SHRI RAM '.2' ;. ;.!1 '."" ".;
FI&URE,))
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 61/83
INTER2RETATION
&t is revealed from the table and figure that $i#ed assets turnover ratio of both the two
&nsurance company increasing and decreasing year after year. $i#ed assets turnover ratio
of United ranged from ;.! to 4.26 during the period of study- whereas the Shri Cam has
managed to earn ".; to '.2' on percentage.
2ART I38 LI UIDITY RATIOS
)4 CURRENT RATIO 8
TA-LE 8 )
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED .'" ."' .;" .'2 .'
SHRI RAM .21 .24 .26 .26 .2
FI&URE,)
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 62/83
INTER2RETATION
&t is revealed from the table and figure that urrent ratio of both the two &nsurance
companies increasing and decreasing year after year. urrent ratio of United ranged from
.' to .'" during the period of study- whereas the Shri Cam has managed to earn .2 to
.21 on percentage.
4 CURRENT RATIO .INC4 ST LOANS/
TA-LE 8 )
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED . " . ' . 4 . ; . ;
SHRI RAM. " . " . " . ' . "
FI&URE,)
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 63/83
INTER2RETATION
&t is revealed from the table and figure that urrent ratio of both the two &nsurance
companies increasing and decreasing year after year. urrent ratio of United ranged from
.' to .'" during the period of study- whereas the Shri Cam has managed to earn .2 to
.21 on percentage.
4 UIC$ RATIOTA-LE 8 )
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED . 4 ;.4' 6.!; 6.;2 ;.;
SHRI RAM 4.!' ;.2" '.1 '. 4 ;.!1
FI&URE,)
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 64/83
INTER2RETATION
&t is revealed from the table and figure that Iuic* ratio of both the two &nsurance
companies increasing and decreasing year after year. Iuic* ratio of United ranged from
;.; to . 4 during the period of study- whereas the Shri Cam has managed to earn ;.!1
to 4.!' on percentage.
2ART 38 2AYOUT RATIOS
!. DI3IDEND 2AYOUT RATIO .NET 2ROFIT/
TA-LE 8 )G
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED 2"."6 22. 22.6' !1. 1 ! . 6
SHRI RAM 2!.42 22.!6 22.!6 22. ! 22.;;
FI&URE,)G
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 65/83
INTER2RETATION
&t is revealed from the table and figure that ividend payout ratio(net profit+ of both the
two &nsurance companies increasing and decreasing year after year. ividend payout ratio
(net profit+ of United ranged from ! . 6 to 2"."6 during the period of study- whereas the
shri Cam has managed to earn 22.;; to 2!.42 on percentage.
2. EARNIN& RETENTION RATIO
TA-LE 8 )
COM2AN
Y NAME
MAR
>)
MAR
>))
MAR
>)>
MAR
>>
MAR
>>JUNITED 46.64 44.!! 44."" 1 . 4 1 . "
SHRI RAM 41.2; 44.4 44.1" 44.!! 44.''
FI&URE,)
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 66/83
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 67/83
INTER2RETATION
&t is revealed from the table and figure that ash 3arning retention ratio of both the two
&nsurance companies increasing and decreasing year after year . ash 3arning retention
ratio of United ranged from 1".6' to 41.12 during the period of study- whereas the Shri
Cam has managed to earn 1'.1" to 1 .12 on percentage.
)ar !2
)ar !!
)ar !
)ar
)ar 1
United S+ri Ra%
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 68/83
FINDIN&S
FINDIN&S
earnings per share of both the two &nsurance companies increasing year after year.
37S of United ranged from1".6 to !''.;' during the period of study- whereas the
Shri Cam has managed to earn 24.1 to 6'."" on per share.
ividend per share of both the two &nsurance companies increasing year after year.7S of United ranged from !'. to " . during the period of study- whereas the
Shri Cam has managed to earn ;.; to !2. on per share.
9perating profit per share of both the two &nsurance companies increasing year
after year. 9perating profit per share of United ranged from !2'.44 to 22 .6"
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 69/83
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 70/83
9wner fund as % of total source of both the two &nsurance companies increasing
and decreasing year after year. 9wner fund as % of total source of United ranged
from 6.41 to 4.;4 during the period of study- whereas the Shri Cam has managed
to earn 1.64 to !!." on per share.
$i#ed assets turnover ratio of both the two &nsurance company increasing and
decreasing year after year. $i#ed assets turnover ratio of United ranged from ;.!
to 4.26 during the period of study- whereas the Shri Cam has managed to earn ".;
to '.2' on percentage.
urrent ratio of both the two &nsurance companies increasing and decreasing year
after year. urrent ratio of United ranged from .' to .'" during the period of
study- whereas the Shri Cam has managed to earn .2 to .21 on percentage.
Iuic* ratio of both the two &nsurance companies increasing and decreasing year
after year. Iuic* ratio of United ranged from ;.; to . 4 during the period of
study- whereas the Shri Cam has managed to earn ;.!1 to 4.!' on percentage.
ividend payout ratio(net profit+ of both the two &nsurance companies increasing
and decreasing year after year. ividend payout ratio (net profit+ of United ranged
from ! . 6 to 2"."6 during the period of study- whereas the shri Cam has managed
to earn 22.;; to 2!.42 on percentage.
3arning retention ratio of both the two &nsurance companies increasing and
decreasing year after year. 3arning retention ratio of United ranged from 1 . " to
46.64 during the period of study- whereas the Shri Cam has managed to earn 44.''
to 41.2; on percentage.
ash 3arning retention ratio of both the two &nsurance companies increasing and
decreasing year after year . ash 3arning retention ratio of United ranged from
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 71/83
1".6' to 41.12 during the period of study- whereas the Shri Cam has managed to
earn 1'.1" to 1 .12 on percentage.
CONCLUSION
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 72/83
CONCLUSION7rofitability means ability to ma*e profit from all the business activities of an organi?ation-
company- firm- or an enterprise. &t shows how efficiently the management can ma*e profit
by using all the resources available in the mar*et. /ccording to ,arward D Upton-
Qprofitability is the the ability of a given investment to earn a return from its use.R
,owever- the term 7rofitabilityL is not synonymous to the term 3fficiencyL. 7rofitability
is an inde# of efficiencyJ and is regarded as a measure of efficiency and management guide
to greater efficiency. Though- profitability is an important yardstic* for measuring theefficiency- the e#tent of profitability cannot be ta*en as a final proof of efficiency.
Sometimes satisfactory profits can mar* inefficiency and conversely- a proper degree of
efficiency can be accompanied by an absence of profit. The net profit figure simply reveals
a satisfactory balance between the values receive and value given. The change in
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 73/83
operational efficiency is merely one of the factors on which profitability of an enterprise
largely depends. )oreover- there are many other factors besides efficiency- which affect
the profitability.
/part from the short term and long term creditors- owners and management or a company
itself also interests in the soundness of a firm which can be measured by profitability ratios.
7rofitability ratios are of two types those showing profitability in relation to sales (revenue
in case of United + and those showing profitability in relation to investment. Together-
these ratios indicate firmLs overall effectiveness of operation.
Aith a view to appraise profitability of S+ri Ra% 0 the analysis has been made from the
point of view of management and shareholders. The management of the firm is naturally
eager to measure its operating efficiency. Similarly- the owners invest their funds in the
e#pectation of reasonable returns. The operating efficiency of a firm and its ability to
ensure ade>uate returns to its shareholders depends ultimately on the profits earned by it.
LIMITATIONS
Though the present study aims to achieve the above mentioned objectives in full earnest
and accuracy- it may be hampered due to certain limitations. Some of the limitations of this
study may be summari?ed as follows@
• /lthough every effort has been made into collect the relevant information through
the secondary sources available still some relevant information could not be
gathered.
• This study is limited to some particular terminals and it canLt be generali?ed to
some other terminals.
• Sometimes respondent hide the facts- and may be biased to the particular place and
not give the accurate information.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 74/83
• Cesearcher is ine#perience. This is his first study- so this is also a limitation of the
study.
• ue to changing environment what is relevant today may not be relevant tomorrow.
•
There was lac* of time on the part of respondent and for me also it was not possibleto go into every noo* and corner of the study.
SU&&ESTIONS
/fter the study we come to *now some of the loop holes in the organi?ation which can be
improved so that the wor* of the organi?ation becomes smoother and easier. So here are
some of the suggestions from my side@
&ncrease shareholder value
&ncrease in operating income
)anage costs and unused capacity
uild strong customer relationships
&ncrease mar*et share
&ncrease customer focus of sales organi?ation
onLt assume the cause and effect lin*ages to be precise.
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 75/83
onLt see* improvements across all measures all the time.
onLt use only objective measures on the scorecard.
onLt fail to consider both costs and benefits of initiatives such as spending on
information technology and research and development
onLt ignore non financial measures when evaluating managers and employees.
-I-LIO&RA2HY
-OO$S BOURNALS 8
)4 $ot+ari0 C4R (uantitative )echniques P Second 3dition- ,imalayan 7ublishing
,ouse- =ew elhi- 77 ' ';
4 $ot+ari C4R4 !esearch *ethodology + )echniques P Second 3dition- =ew /ge
&nternational 7ublishers- =ew elhi- 77 1; 1- !! !!;
4 &upta S4$4 *anagement %ccounting P 1th 3dition. 77 2 .! 2 .2
4 &upta S4$4 *anagement %ccountin gP ; th 3dition 77 1 .! 1 .;
G4 &upta S4240 Business &tatistics P urrent 3dition- /rya 7ublications- /gra. 77
;6 41
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 76/83
4 &oe! D4$4 *anagement %ccounting and inancial *anagement P 4 th 3dition-
Ginay 7ublications- =ew elhi- 77 14 1
4 2ande# 0 I4M inancial *anagement- Surya 7ublications- =ew elhi. 77 ' 16
J4 Ma+es+'ari 0S4N %dvanced %ccounting P !st 3dition -)cmillan &ndia 5td.- =ew
elhi- 77 '2 '"
5E-, SITES8
[email protected]>uitymaster.comEdetail.asp
date "E!1E2 ! Dstory 'Dtitle Hey ban*ing ratios && 7SUs vs private
www.economywatch.com/business
http://www.investorwords.com/1952/financial_leverage.html 4
http://www.12manage.com/description_financial_leverage.html
http://autonews.indiacar.com/news/n12234.htm
www.moneycontrol.com
www.bofabusinesscapital.com
www.hdfcstandard.com
ANNE9URE
E UITY SHAREDATA
United S+ri Ra% United
) >) ) >) S+ri Ra%
,igh Cs !- !4 !-2!; 1".4%
5ow Cs " ' ' 1.;%
Sales per share Cs 6 4.2 214." 2'2.4%
3arnings per share Cs 1 .' 26.
ash flow per share Cs 2"".' !! .4 ! '. %
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 77/83
ividends per share Cs 22. !2. !1"."%
ividend yield (eoy+ % ".! !.; 2 .1%
oo* value per share Cs ; ".2 " '.6 !; ."%
Shares outstanding (eoy+ m "!;." ' ;.!4 44.1%
onusECightsE onversions I&7-8 C
7rice E Sales ratio # !. 2.1 "6. %
/vg 7E3 ratio # 1.1 " . 2 .2%
7E $ ratio (eoy+ # ". 6.4 ''.1%
7rice E oo* Galue ratio # !.2 2. ;1.!%
ividend payout % 24.' ''.6 6!."%
/vg )*t ap Cs m 222-''' "24-!4; 61. %
=o. of employees V ;4 22 26".!%
Total wagesEsalary Cs m "!-'!" !"-; 1 2"!. %
/vg. salesEemployee Cs Th "-16!.' ;-"41.; 4!.1%
/vg. wagesEemployee Cs Th ;;!.1 621.' 14.1%/vg. net profitEemployee Cs Th 6 4.1 !-!';.! 6 . %
INCOME DATA
=et Sales Cs m 2! -12' !!6-" !
9ther income Cs m "'-;"' " -6'2 14.!%
Total revenues Cs m 2;'-";1 !;6- "" !6". %
8ross profit Cs m 2 6-'"2 ! 2-; 2 2 !.'%
epreciation Cs m '1-2" "4-62' !21.2%
&nterest Cs m !"2-" 66-"26 ! .;%
7rofit before ta# Cs m 6 -'24 "1-! ' !;1.2%
)inority &nterest Cs m !;
7rior 7eriod &tems Cs m
3#traordinary &nc (3#p+ Cs m
Ta# Cs m 2 -;'2 !"-'!" !;".!%
7rofit after ta# Cs m " -426 2'-41! !6 ."%
8ross profit margin % ". 11.! ! 6.6%
3ffective ta# rate % "'. ";.! 6.1%
=et profit margin % !1.! 2!." 1'. %
-ALANCE SHEETDATA
urrent assets Cs m !- !!-! !- '"-'"! !1".2%
urrent liabilities Cs m
=et wor*ing cap to sales % 16 .' 1 6.; 4. %
urrent ratio # '". '". ! . %
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 78/83
&nventory Turnover ays
ebtors Turnover ays
=et fi#ed assets Cs m 2;-"!' !2-"6 2 '.1%
Share capital Cs m "-!;" '- ;2 44.1%
K$reeK reserves Cs m ! '- 64 !"!-'1! 4 .1%
=et worth Cs m !14- 24 !; -1 ! !!4. %
5ong term debt Cs m ! 4- 2 !4!-6 6 62.1%
Total assets Cs m "- ";-6 ' !-1 ;-164 !61.!%
&nterest coverage # !.; !.6 2.'%
ebt to e>uity ratio # .6 !.! ;".4%
Sales to assets ratio # .! .! !!2.'%
Ceturn on assets % ;.4 ;. !!2."%
Ceturn on e>uity % 2!.2 !;.; !"4. %
Ceturn on capital % 6;." "!.; 2 4.!%
3#ports to sales % . .
&mports to sales % . .
=et f# Cs m
/
PROJECT REPORT
on
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 79/83
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 80/83
The 7roject is concerned with the Q FINANCIAL 2OSSITION OF -OTH CO4S .
uring my tenure of research - & studied the various development tools and
deeply analy?ed the functions.
7rior to ma*ing reference to wor*ing of the project prepared - the analysis and
feasibility and all other aspect were ta*en into consideration . The research
shows the financial position of company .
DECLARATION
&- 7riyan*a here by declare that 7roject report COM2ARATI3E FINANCIAL
STUDY OF UNITED INDIA INSURANCE CO4 SHRIRAM INSURANCE CO4
assigned to me for the re>uirement of the degree of . om. with an*ing D&nsurance for Huru*shetra University- is the original wor* D done by my
personally and the information provided in the study is authenticated to the
best of my *nowledge .
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 81/83
The study has not been submitted to any other institution of Univ. for
the award of any other degree . &f this statement is wrong & shall be personally
liable the conse>uences .
7riyan*a
AC$NO5LED&EMENT
$irst D $oremost & would li*e to convey my sincere than*s to all
mighty 8od. and then )s. /nubha ( 5ect in ommerce + of
/G 8irls ollege F=C. She has been source of perpetual
inspiration to me. She gently guided D inspired me towards a bright career through my course . & was very fortunate to have
herself as my project guide . She is willing to give all *ind of
support D encourage me with her valuable suggestions .
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 82/83
& would li*e to than*s my sincere and special to r. ()s.+
Sushma /rya- principal of ollege- for her *ind cooperation and
great regards for )rs. :atinder Haur - ,9 in college who gave
me the practical *nowledge of all.
ate @ WWWWWWWW 2ri#an"a
7lace @ WWWWWWWW Coll =o. @2 !!!!4 4;Univ. Coll =o.. om. &&&
CONTENTS
&ntroduction
♦ ,istory of &nsurance
ompany 7rofile
&ntroduction to Topic
♦ =eed of the Study
♦ 9bjectives of the Study
Cesearch )ethodology
ata /nalysis and &nterpretation
$indings
onclusion
5imitations
Suggestions
8/12/2019 United India Insurance Shri Ram Financial Possition Final
http://slidepdf.com/reader/full/united-india-insurance-shri-ram-financial-possition-final 83/83
ibliography