ANALYSIS THE FINANCIAL PERFORMANCE THROUGH RATIO ANALYSIS IN HDFC SLIC

COMPANY PROFILE HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint venture between India's largest housing finance provider, HDFC and Europe's largest mutual life assurance company - The Standard Life Assurance Company (U. K). HDFC Standard Life Insurance Company Limited is the First Private Sector Life Insurance Company to be granted a license. HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core Research team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank.

In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000. The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition since October was the only life insurance company to be granted the certificate of registration. HDFC are the main share holders in HDFC Standard Life Insurance Co. Ltd. With 83% and Standard Life owns 17% STATEMENT ABOUT THE PROBLEM However, over the past five years hence the working capital of the company working in good environment. In the mean while the performance of the company has been down. Though there have been many reason which together have contributed to the decline in performance of analyse the balance sheet. Lack of policy appears to be one of the key reasons. So company start the better working environment the analyse the balance sheet come performance of the company in better working.

OBJECTIVES OF THE STUDY

 To assess the significance of the financial ratios. By selecting a few parameters such as liquidity, turnover and profitability. To make the ratio as simple as for the every part of the aspect and find out those facts which are directly used. To study the financial position for the HDFC SLIC, MEERUT. Give suggestion towards the company factors to increase the efficiencys

RESEARCH METHODOLOGY Marketing Research is a key to evaluation of successful marketing strategy and programmes. It is an important tool to study buyer behavior, changes in consumer life style and consumption patterns brand loyalty and analysis the competitors products positioning M.R. is also useful to help create and enhance equity.

RESEARCH OBJECTIVE What to researcher want to achieve is objective. Objectives of research are To analyze the financial performance through ratio analysis.

RESEARCH DESIGN

A specific frame work used for data collection of scientifically6 conducted project is known research design. There are three types of research design. A. B. C. Exploratory Descriptive Causative

EXPLORATORY RESEARCH :

Exploratory research is done to know why & how certain phenomenon occurs, how consumer evaluate quality, tangible features, replacement policy warranty. DESCRIPTIVE RESEARCH : Descriptive research is carried out to describe a market characteristics Exp. To understand the consumer buyer behavior. CAUSATIVE : Causative research is done to establish cause and effect relationship. Exp. The influence of income and life style on purchase decision.

SOURCES OF DATA Usually, the information needed to solve the problem can not be found in internal of published external records. The research must be depend on primary data. Which are collected scientifically for the study. Data are mainly types :Primary Data :Primary sources refers to data collected directly from the market place like customer, traders & suppliers. They are often reliable data sources & help in overcoming limitations of secondary data. Primary data is again mainly of two types Census : Refers to collecting of data from the entire population. The most common from of census is the Indian population census or compilation of voters list in an area. It takes along time & hence is not suitable for market researcher. The primary data is colleted from Annual balance sheet of HDFC SLIC Dairy. Census & Sample

SECONDARY DATA Secondary data means data that are already available i.e., they refer the data, which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them, IN this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in: 1 Various publications of the central, state and local governments; 2 Various publications of foreign government or of international bodies and their subsidiary organization; 3 Technical and trade journals: 4 Books, magazines and newspapers; Reports and publications of various associations connected with business and industry, banks, stock, exchanges etc.; Reports prepared by research scholars, universities, economists etc. In different fields, and Public records and statistics, historical documents, and other sources of published information. The sources of unpublished data are many; they May be found in diaries, letters, unpublished biographies and autobiographies and also may be available with scholars and research workers, trade associations, labor bureaus and other public/private individuals and organizations.

TOOLS OF ANALYSIS Trading and profit and loss account, balance sheet and various schedules prepared at the end of the year do not always convey to the reader the real significance of operating results financial health of the business. And rarely can satisfactory diagnosis be reached on the basis of such information alone.

The analysis of the facts and related data was considered to be important and a number of techniques were developed and the most important techniques are given below:

I) RATIO ANALYSIS: An analysis of financial statements on the basis of ratio is known as ratio analysis. A ratio is a mathematical relationship between two or more related items taken from financial statements. Ratio analysis is very helpful to outsiders as well as to the management.

II) FUNDS FLOW ANALYSIS:

Fund Flow statement is a statement, which depicts the source from which funds are obtained and tile, uses for which they are being put. This statement is always accompanied by a schedule of working capital changes. This statement as tool of financial analysis provides of explanations regarding the financial condition of the business concern.

III) CASH FLOW ANALYSIS: This analysis based on a statement depicting inflow and out flow of cash. Cash flow statement is deigned to highlight upon the causes, which bring changes in cash position between balance sheet dates. A business unit should always try to keep sufficient cash, neither more nor less.

IV. COMPARATIVE STATEMENT: These statement are those which summaries and present related accounting data for a number of years incorporating therein the changes in individual items of financial statements. Comparative statements can be prepared for income statement well as position statement or balance sheet.

V. TREND ANALYSIS: Trend analysis is carried out by calculating trend ratio (percentages) and / or by plotting the accounting data on the graph paper or chart. Trend analysis of business facts is very significant from the point of view of forecasting or budgeting. It discloses the changes in the financial and operating data between specific periods.

CHAPTERIZATION SCHEME Introduction Objectives Current scenario of Indias dairy industry:Company profile Tools of analysis Total capital turnover ratio Working capital turnover ratio Fixed assets turnover ratio Debtors turnover ratio Creditors turnover ratio Research methodology Data analysis Limitation Suggestion Conclusion Bibliography

BIBLOGRAPHY

M.Y.KHAN AND P.K. JAIN FINANCIAL MANAGEMENT (Tata McGraw- Hill Publishing Company Limited, NEW DELHI) LK NARANG AND SP JAIN FINANCIAL MANAGEMENT (KALYANI PUBLISHERS,NEW DELHI),2000. C.R. Kothari, Research methodlogy. Web sites: www.hdfc slic.com www.google.com