1.1 GENERAL INTRODUCTION A financial statement is an organised collection of data according to the logical consistent accounting procedure.

Financial statement contain summarized information of firms financial affairs, organised systematically. They are means of present the firms financial situation to the owners, creditors and general public. The top management is responsible for the preparation of financial statements. Finance is the life of the business. It is rightly termed, as the science of money. Finance is very essential for the smooth running of the business. Financial management is that managerial activity which is concern with planning and controlling of the firms financial reserve. Financial management, as an academic discipline, has undergone fundamental changes as with regard to its scope and coverage. In the early years of its evaluation it was treated synonymously with the rising of funds. In the current literature pertaining to this growing academic discipline a broad scope has to be included, in addition to procurement of funds. Efficient use of resources is universally recognised.

1.2 THEORETICAL BACKGROUND OF STUDY INTRODUCTION: Financial statements are primarily prepared for decision-making. They play a dominant role in setting the framework of managerial decision. The published financial statements of business may be of considerable interest to present the same to their respective potential shareholders, managers, moneylenders, banks, financial institutions, trade organization and many others. MEANING OF FINANCIAL STATEMENT ANALYSIS DEFINATION: Financial analysis is the process of identifying the financial strengths and weakness of firm by properly establishing relationship between the items of the balance sheet and profit and loss account. The purpose of financial analysis is to diagnose the information contained in the financial statements so as to judge the profitability and financial soundness of the firm. A financial analyst, analyses the financial statements with various tools of analysis before commenting upon the financial position of the enterprises. Tools of financial statement analysis: 1. Comparative statements 2. Common size statements 3. Trend analysis 4. Fund flow analysis 5. Cash flow analysis 6. Ratio analysis 1. Comparative statements: The comparative balance sheet analysis is the study of trend of the same items, group of items and computed items in two or more balance sheet of the same business enterprise on different dates. The changes in periodic balance sheet items at the beginning and at the end of a period can be observed, which reflects the conduct of the business.

2. Common size statements: Common size financial statement facilitates both type of analysis, horizontal as well as vertical analysis, it not only compare across years but also each individual items of a group of assets and liabilities as related to the total of the group in respect of every year. It shows individual current assets as a percent of total current assets and so on. The main advantage of common size statements is that a comparison of the performance and financial condition in respect of different units of the same industry can also be done. 3. Trend analysis: The easiest way to evaluate the performance of the firm is to compare its present ratio with the past ratios. When financial ratios over a period of time are compared, it is known as time series or trend analysis, it gives an indication of a direction of change and reflects whether financial performance has improved or has deteriorated or has remained constant overtime. 4. Fund flow analysis: Fund flow statement is a method by which we study changes in the financial position of a business enterprise between the beginning and ending financial statements dates. It is a statement showing application of funds for a period of time, it is a complimentary statement to the income statement. Fund flow statement considers both capital and revenue items. 5. Cash flow analysis: Cash flow analysis is a statement of changes in the financial position of firm on cash basis. It summarizes the cause for the changes in the cash position of the business enterprises between dates of two balance sheets. Cash flow statement is a statement which describes the inflow and outflow of cash and cash equivalents. 6. Ratio analysis: Ratio analysis is a technique of calculation of number of accounting ratios from the data found in the financial statements. The comparison of these accounting ratios with those of the previous years or with those of the other concerns engaged in similar line of activities or with those of standard ratios and interpretation of its comparison helps to understand the standing and position of the firm.

FUND FLOW STATEMENT:Many changes take place in the assets, equities, revenues and expenses in the course of business operations. These changes in an asset or an equity account or in revenue or an expenses account over a period of time can be examined and presented in the form of a flow statement. The flow statement may, therefore be defined as a statement which explains increases or decreases in different related accounts for a specified period of time. These flow statements can be classified into four categories; 1. Income Statement 2. Funds Flow Statement 3. Statement of Changes in Financial Position 4. Cash Flow Statement

MEANING OF FUND FLOW STATEMENT: According to the Standard, the term fund generally refers to cash and cash equivalents, or to working capital. In a popular and generally accepted sense the term fund is used to denote the excess of current assets over current liabilities. Working Capital = Current Assets Current Liabilities The meaning of two terms current assets and current liabilities are: (1) Current Assets: The term Current Assets includes assets which are acquired with the intention of converting them into cash during the normal business operations of the company. E.g. - Debtors, cash, bank etc. (2) Current Liabilities: The term Current Liabilities is used principally to designate such obligations whose liquidation is reasonably expected to require the use of assets classified as current assets in the same balance sheet or the creation of other current liabilities or those expected to be satisfied within a relatively short period of time usually one year. The term current liabilities also includes amounts set apart or provided for any known liability of which the amount cannot be determined with substantial accuracy e.g., provision for taxation, pension etc. Meaning of Flow of Funds: The term Flow of Funds means Change in Funds or Change in working Capital. In other words, any increase or decrease in working capital means Flow of Funds. Fund flow statement means movement of working capital over a period of time. In other words, increase or decrease in working capital reflects flow of funds. When a transaction increases working capital, it is known as source of funds and when it decreases the working capital, it is known as application of funds. When a business transaction does not affect working capital, no flow of fund takes place. The following are the general rules: 1. There will be Flow of Funds if a transaction involves A. Current assets and fixed assets, e.g. Purchase of building for cash. B. Current and Capital, e.g. Issue of shares for cash C. Current and fixed liabilities e.g., Redemption of debentures in cash. D. Current liabilities and fixed liabilities e.g., creditors paid off in debentures. E. Current liabilities and capital e.g., creditors paid off in shares. F. Current liabilities and fixed assets e.g., building transfer to creditors in satisfaction of their claims. 2. There will be no flow of funds if transaction involves A. Current assets and current liabilities e.g., payment made to creditors. B. Fixes assets and fixed liabilities e.g., Building purchased and payment made in debentures. C. Fixed assets and capital e.g., Building purchased and payment made in shares. For example Machinery a/c Dr To share capital a/c (Machinery purchase in consideration of share) In the above transaction both accounts are non current accounts which do not at all affect current asset and current liability. Therefore working capital will remain unaffected i.e. there will be no flow of fund. When changes in one current account results in changes in other current account, it also does not affect working capital i.e. there is no flow of funds.

For example Cash a/c To debtor a/c (Cash received from debtor)

Dr

It represents an increase of cash in current asset account and decrease of debtor again a current asset account .thus there will be no net changes in the amount of working capital, although the composition of working capital will be affected.

In the above figure the dotted line displays there will be no flow of fund & the dark line displays the flow of fund. Need For Fund Flow Statement: The Funds Flow Statement is widely used by the financial analysis and credit granting institutions and financial managers in performance of their jobs. It has become a useful tool in their analytical kit. This is because the financial statements, i.e., Income Statement and the Balance Sheet have a limited role to perform. Income Statement measures flow restricted to transitions that pertain to rendering of goods and services to customers. The Balance Sheet is merely a static statement. It is a statement of assets and liabilities as on a particular date. Preparation of Fund Flow Statement: The changes which occurred in the current accounts as a result flow of fund are reflected in a statement known as schedule of changes in working capital .The similar changes in non current accounts are shown in Fund Flow Statement. Therefore following two statements under these techniques:A) Statement or Schedule of Changes in Working Capital. B) Statement of Sources and Uses of Funds or Funds Flow Statement. A. Schedule of Changes in Working Capital: It discloses the changes in individual item of current asset & current liabilities between two periods & there effect on working capital. Working capital will increase when there is an

increase in current asset and decrease in current liabilities, whereas, working capital will decrease when there is a decrease in current asset & increase in current liabilities. Net increase in working capital is treated as use of funds & the net decrease in working capital is treated as source of funds.

FORMAT Schedule of changes in Working Capital Previous Year (Rs.) Current year (Rs.)

Items

Effect of Working Capital Increase(Rs.) Decrease(Rs.)

(A)CURRENT ASSETS: Cash in hand Cash at bank Debtors Stocks Bills Receivable Advances Prepaid Expenses Accrued Income Short term Investment Total (A) (B) CURRENT LIABILITIES & PROVISIONS Bills Payable Creditors Bank Overdraft Outstanding Liabilities Short term Loans Total (B) Net working Capital (A - B) Increase/Decrease in Working Capital Total -

B. Statement of Sources and Application of Fund: a. Sources of fund. b. Application of fund. The difference between these two parts that is sources & uses of funds represents net changes in working capital. The excess of sources of funds over uses of fund is the net increase in working capital & excess of uses over sources of fund is net decrease in working capital. The amount of net increase or decrease as shown in fund flow statement should be equal to the amount shown by schedule of working capital changes. FORMAT FUND FLOW STATEMENT SOURCES OF FUND Fund from operation Issue of share Issue of debenture Long term loans Sale of fixed assets /Investment Non trading receipts Decrease in working capital(if any) AMOUNT XXX XXX XXX XXX XXX XXX XXX USES OF FUND Loss from operation Redemption of preference shares Redemption of debentures Repayment of long term loans Purchase of fixed asset / investment Payment of dividend & taxes Increase in working capital(if any) AMOUNT XXX XXX XXX XXX XXX XXX XXX

Objectives Of Fund Flow Statement : Funds Flow Statement is an analytical tool in the hands of financial manager. The basic purpose of this statement is to indicate on historical basis the changes in the working capital i.e., where funds came from and where there are used during a given period. The utility of this statement can be measured on the basis of its contributions to the financial management. It generally serves the following purposes: (1) Analysis of Financial Position: - The basic purpose of preparing the statement is to have a rich into the financial operations of the concern. It analyses how the funds were obtained and used in the past. In this sense, it is a valuable tool for the finance manager for analyzing the past and future plans of the firm and their impact on the liquidity. He can deduce the reasons for the imbalances in uses of funds in the past to take necessary corrective actions.

(2) Evaluation of the Firm's Financing: - One important use of the statement is that it evaluates the firm' financing capacity. The analysis of sources of funds reveals how the firm's financed its development projects in the past i.e., from internal sources or from external sources. It also reveals the rate of growth of the firm. (3) An Instrument for Allocation of Resources:-In modern large scale business, available funds are always short for expansion programs and there is always a problem of allocation of resources. It is, therefore, a need of evolving an order of priorities for putting through their expansion programs which are phased accordingly, and funds have to be arranged as different phases of programs get into their stride. The amount of funds to be available for these projects shall be estimated by the finance with the help of Funds Flow Statement. This prevents the business from becoming a helpless victim of unplanned action. (4) A Tool of Communication to Outside World:- Funds Flow Statement helps in gathering the financial states of Business. It gives an insight into the evolution of the present financial position and gives answer to the problem 'where have our resources been moving'? In the present world of credit financing, it provides a useful information to bankers, creditors, financial, it provides a useful informations and government etc. regarding amount of loan required, its proposes, the terms of repayment an sources for repayment of loan etc. the financial manager gains a confidence born out of a study of Funds Flow Statement. In fact, it carries information regarding firm's financial policies to the outside world. (5) Future Guide: - An analysis of Funds Flow Statements of several years reveals certain valuable information for the financial manager for planning the future financial requirements of the firm and their nature too i.e. Short term, long-term or midterm. The management can formulate its financial policies based on information gathered from the analysis of such statements. Financial manager can rearrange the firm's financing more effectively on the basis of such information along with the expected changes in trade p payables and the various accruals. In this way, it guides the management in arranging its financing more effectively.

ADVANTAGES OF FUND FLOW STATEMENT: The Fund flow statement is an extremely useful tool for the management. It gives a clear picture of the causes of changes in the working capital position of the company during a period. It shows the various sources from which funds are obtained and also the uses to which these funds are put to. The main uses of fund flow statement are as follows:A. Guides proper use of available funds: - For the continued financial health or well being of firm, it is necessary to use available working capital carefully and properly. The fund flow statement shows up boldly how the funds made available in a year were used. B. Acts as a basis for financial plan and budgeting: - The fund flow statement can be used easily as a basis for preparing financial plans for the coming period. On an estimated basis, it becomes the financial budget for the next year. In fact, when large sums are borrowed and repayment is made by annual instalments, fund flow statement prepared in anticipation for future years will help determine the amount that can be paid each year. Thus the statement can serve as a tool for planning also. C. It gives early warning of coming financial dangers: - The fund flow statement may give early warning of coming financial dangers if the inflow is small and the use of funds is not proper.

D. It reveals the net result of business operations during the year in terms of cash:- The profit shown by the profit and loss account can be manipulated by the management by changing the amount of depreciation and the amount of other write offs. It is because these amounts are the results of the personal decisions of the management. E. Helps in borrowing:- Banks and other financial institutions like IDBI, State Financial Corporations etc. like to satisfy themselves about the ability of the company to repay the loans. Before lending, these institutions like to see the projected fund flow statements which indicates ability or otherwise of the company to pay off the loan as per the terms of repayment. USES OF FUNDS FLOW STATEMENT:Funds flow statement helps the financial analyst in having a more detailed analysis and understanding of changes in the distribution of resources between two balance sheet dates. In case such study is required regarding the future working capital position of the company, a projected funds flow statement can be prepared. The uses of a funds flow statement can be put as follows: 1. It explains the financial consequences of business operations. Funds flow statement provides a ready answer to so many conflicting situations, such as: A. Why the liquid position of the business is becoming more and more unbalanced in spite of business making more and more profits? B. How was it possible to distribute dividends in excess of current earnings or in the presence of a net loss for the period? C. How the business could have good liquid position in spite of business making losses or acquisition of fixed assets? D. Where have the profits gone? 2. It answers intricate queries: The financial analyst can find out answers to a number of intricate questions: A. What is the overall creditworthiness of the enterprises? B. What are the sources of repayments of the loans taken? C. How much funds are generated through normal business operations? D. In what way the management has utilized the funds in the past and what are going to be likely uses of funds? 3. It acts as an instrument for allocation of resources: A projected funds flow statement will help the analyst in finding out how the management is going to allocate the scarce resources for meeting the productive requirements of the business. The uses of funds should be phased in such an order that the available resources are put to the best use of the enterprise. The funds should be managed in such a way that the business is in a position to make payment of interest and loan instalments as per the agreed schedule. 4. It is a test as to effective or otherwise use of working capital: Funds flow statement is a test of effective use of working capital by the management during a particular period. The adequacy or inadequacy of working capital will tell the financial analyst about the possible steps that the management should take for effective use of surprise working capital or make arrangement in case of inadequacy of working capital.

5. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 6. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement. 7. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise. 8. The management will be able to detect surplus/shortage of fund balance. 9. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.

Limitations Of Fund Flow Statement: The fund flow statement suffers from the following limitations: 1. The fund flow statement is prepared with the help of balance sheet and profit and loss account of the current period and these statements are based on historical cost. So a realistic comparison of profitability and the funds position is not possible as the current cost is not considered for the purpose of preparation of fund flow statement. 2. The cash position of the firm is not revealed by fund flow statement. To know the cash position a cash flow statement has to be prepared. 3. The various activities are not classified as operating activities, investing activities and financing activities while preparing fund flow statement.

INDUSTRY PROFILE Brief History of Insurance Sector The insurance sector in India has completed all the facets of competition from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. With the establishment of the Oriental Life Insurance Company in Kolkata, the business of Indian life insurance started in the year 1818. Important Milestones in the Indian Life Insurance Business 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business. 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of 5 crores and that too from the Government of India. The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British.

Concept of Insurance:Insured, are you? The functions of Insurance will give you an idea on how to go ahead with the approach of insurance and what type of insurance to choose. In a layman's words, insurance means, a guard against pecuniary loss arising on the happening of an unforeseen event. In developing economies, the insurance sector still holds a lot of potential which can be tapped. Majority of the people in the developing countries remains unaware of the functions and benefits of insurance and it is for this reason that the insurance sector is still to grow. Tangible or intangible an individual can insure anything! Be it a house, car, factory, or the voice of a singer, leg of a footballer, and the hand of an author.....etc. It is possible to insure all these as they have the possibility of becoming non-functional by any disaster or an accident. Basic functions of Insurance 1. Primary Functions 2. Secondary Functions 3. Other Functions Primary functions of Insurance:Providing protection The elementary purpose of insurance is to allow security against future risk, accidents and uncertainty. Insurance cannot arrest the risk from taking place, but can for sure allow for the losses arising with the risk. Insurance is in reality a protective cover against economic loss, by apportioning the risk with others. Collective risk bearing Insurance is an instrument to share the financial loss. It is a medium through which few losses are divided among larger number of people. All the insured add the premiums towards a fund and out of which the persons facing a specific risk is paid. Evaluating risk Insurance fixes the likely volume of risk by assessing diverse factors that give rise to risk. Risk is the basis for ascertaining the premium rate as well. Provide Certainty Insurance is a device, which assists in changing uncertainty to certainty. Secondary functions of Insurance:Preventing losses Insurance warns individuals and businessmen to embrace appropriate device to prevent unfortunate aftermaths of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Covering larger risks with small capital Insurance assuages the businessmen from security investments. This is done by paying small amount of premium against larger risks and dubiety.

Helps in the development of larger industries Insurance provides an opportunity to develop to those larger industries which have more risks in their setting up. Other Functions of Insurance:Is a savings and investment tool Insurance is the best savings and investment option, restricting unnecessary expenses by the insured. Also to take the benefit of income tax exemptions, people take up insurance as a good investment option. Medium of earning foreign exchange Being an international business, any country can earn foreign exchange by way of issue of marine insurance policies and a different other ways. Risk Free trade Insurance boosts exports insurance, making foreign trade risk free with the help of different types of policies under marine insurance cover. Insurance provides indemnity, or reimbursement, in the event of an unanticipated loss or disaster. There are different types of insurance policies under the sun cover almost anything that one might think of. There are loads of companies who are providing such customized insurance policies.

IRDA (Insurance Regulatory and Development Authority): IRDA was set up by the parliament in 1999. The section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority specify the composition of Authority The Authority is a ten-member team consisting of 1. Chairman, 2. Five Whole-Time Members, 3. Four Part-Time Members, All these positions are appointed by the Government of India IRDA - Duties, Powers and Functions:Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

Insurance Policies Insurance Policy India provides the clients with the details required for the coverage in the policy, date of commencement of the policy and their adopting organizations. It plays a important role in the Indian insurance sector. The Insurance Policy India is regulated by certain acts like the Insurance Act(1938), the Life Insurance Corporation Act(1956), General Insurance Business (Nationalization) Act(1972), Insurance Regulatory and Development Authority (IRDA) Act(1999). The insurance policy determines the covers against risks, sometime opens investment options with insurance companies setting high returns and also informs about the tax benefits like the LIC in India.

There are two types of insurance covers:1. Life insurance 2. General insurance Life insurance This sector deals with the risks and the accidents affecting the life of the customer. Alongside, this insurance policy also offers tax planning and investment returns. There are various types of life Insurance Policy India: 1. Endowment Policy 2. Whole Life Policy 3. Term Life Policy 4. Money-back Policy 5. Joint Life Policy 6. Group Insurance Policy 7. Loan Cover Term Assurance Policy 8. Pension Plan or Annuities 9. Unit Linked Insurance Plan General Insurance: This sector covers almost everything related to property, vehicle, cash, household goods, health and also one's liability towards others. The major segments covered under general Insurance Policy India are: 1. Home Insurance 2. Health Insurance 3. Motor Insurance 4. Travel Insurance

Top Insurance Companies in India:

Life Insurance Corporation of India The Life Insurance Corporation of India (LIC) is undoubtedly India's largest life insurance company. Fully owned by government, LIC is also the largest investor of the country. LIC has an estimated asset of ` 8 Trillion. It also funds almost 24.6% of the expenses of Government of India. Established in 1956 and headquartered in Mumbai, Life Insurance Corporation of India has 8 zonal offices, 100 divisional offices, 2,048 branch offices and a vast network of 10,02,149 agents spread across the country. Tata AIG Insurance Solutions Tata AIG Insurance Solutions, one of the leading insurance providers in India, started its operation on April 1, 2001. A joint venture between Tata Group (74% stake) and American International Group, Inc. (AIG) (26% stake), Tata AIG Insurance Solutions has two different units for life insurance and general insurance. The life insurance unit is known as Tata AIG Life Insurance Company Limited, whereas the general insurance unit is known as Tata AIG General Insurance Company Limited. AVIVA Life Insurance AVIVA Life Insurance, one of the popular insurance companies in India, is a joint venture between the renowned business group, Dabur and the largest insurance group in the UK, Aviva plc. AVIVA Life Insurance has an extensive network of 208 branches and about 40 Bancassurance partnerships, spread across 3,000 cities and towns across the country. There are more than 30,000 Financial Planning Advisers (FPAs) working for AVIAV Life Insurance. It offers various plans like Child, Retirement, Health, Savings, Protection and Rural.

MetLife Insurance MetLife India Insurance Company Limited is another popular player in Indian insurance sector. A joint venture between the Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors and MetLife International Holdings, Inc., MetLife Insurance offers a wide range of financial solutions to its customers including Met Suraksha, Met Suraksha TROP, Met Mortgage Protector and Met SurakshaPlus etc. It has its branches situated over 600 locations across the country. More than 50,000 Financial Advisors work for MetLife. ING Vysya Life Insurance ING Vysya Life Insurance entered into the Indian insurance industry in September 2001. A joint venture between ING Group, Ambuja Cements, Exide Industries and Enam Group, ING Vysya Life Insurance uses its two channels, viz. the Alternate Channel and the Tied Agency Force to distribute its products. The first channel has branches in 234 cities across the country and has got 366 sales teams. On the other hand, the later one has more than 60,000 advisors. Currently, ING Vysya Life Insurance has tie ups with more than 200 cooperative banks. Birla Sun Life Financial Services Birla Sun Life Financial Services is a joint venture between Aditya Birla Group and Sun Life Financial Inc, Canada. It has got an extensive network of more than 600 branches. More than 1,75,000 empanelled advisors work for Birla Sun Life, which currently covers over 2 million lives. MAX New York Life Max New York Life Insurance Company Ltd. is one of the top insurance companies in India. A joint venture between Max India Limited and New York Life International (a part of the Fortune 100 company - New York Life), Max New York Life Insurance Company Ltd. started its operation in April 2001. It currently has around 715 offices located in 389 cities across the country. It also has around 75,832 agent advisors. Max New York Life offers 39 products, which cover both, life and health insurance. Bajaj Allianz Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE, where Bajaj Finserv Limited holds 74% of the stake, whereas Allianz SE holds the rest 26% stake. Bajaj Allianz has been rated iAAA by ICRA for its ability to pay claims. The company also achieved a growth of 11% with a premium income of ` 2866 crore as on March 31, 2009. Bharti AXA Life Insurance Bharti AXA Life Insurance, one of the top insurance companies in India, is a joint venture between Bharti group and world leader AXA. Bharti holds 74% stakes, whereas AXA holds the rest of 26%. Bharti AXA has its branches located in 12 states across the country. It offers a range of individual, group and health plans for its customers. Currently more than 8000 employees work for Bharti AXA Life Insurance. HDFC Standard Life Insurance HDFC Standard Life Insurance Company Limited., being one of the key players in the insurance sector in India, offers a host of individual and group insurance solutions, suiting customer requirements. It happens to be a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), and a Group Company of the Standard Life Plc, UK. It was per the data on February 28, 2009 that HDFC Ltd. held 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. held 26.00% of equity in the JV. The remaining stake is held by others.

Insurance Companies in India

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Life Insurance Companies Aviva Life Insurance Bajaj Allianz Life Insurance Birla Sun-Life Insurance HDFC Standard Life Insurance ING Vysya Life Insurance Life Insurance Corporation Max New York Life Insurance MetLife Insurance Om Kotak Mahindra Life Insurance Reliance Life Insurance Sahara India Life Insurance SBI Life Insurance TATA AIG Life Insurance

General Insurance Companies

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Agriculture Insurance Amsure Insurance ANZ Insurance Bajaj Allianz General Insurance Cholamandalam General Insurance Employee State Insurance Export Credit Guarantee Corporation ICICI Lombard General Insurance IFFCO-Tokio General Insurance National Insurance Oriental Insurance Peerless Smart Financial Royal Sundaram Alliance TATA AIG General Insurance

Market Share of Insurance Companies in India LIFE INSURERS 1. 2. 3. 4. 5. 6 7. 8. 9. LIC ICICI Prudential Bajaj Allianz HDFC Standard BrilaSunlife Tata AIG SBI Life Sahara Life Others. 76.07% 6.91% 4.75% 2.98% 1.72% 1.66% 1.46% 0.03% 4.42% 23.93% 76.07% 100.00

Private total Public total Grand total

1.66 1.72 2.98 4.75 6.91

MARKET SHARES (%)

1.46 0.03 4.42 LIC ICICI Prudential Bajaj Allianz HDFC Standard Birla Sunlife TATA AIG 76.07 SBI Life Sahara Life Others