4.

ANALYSIS OF DATA INTRODUCTION: There is always a time gap between the sale of goods and services and the receipt of sale proceeds. During this period, fund is needed for sustaining the sale activities. If adequate fund is not maintained for this period, the firm will not be in a position to purchase raw materials and pay wages and other expenses, and produce the goods required for the sale. Thus this is the need to study flow of funds. This chapter contains the analysis of financial statement of HDFC LIFE. The analysis is carried out by using fund flow analysis, the data for which was obtained from previous 5 years reports of the company. DATA ANALYSIS Data Analysis is a technique of financial management to find out the growth and other crucial aspects relating to the changes that take place in an organization. To put it in simple words this method of finance is the study of inflow and outflow of each item of financial statement has to be compared to the same item of the base year. This type of analysis is of crucial importance to watch the direction of change over a period of certain years. Through this analysis the analyst seek to review of changes that have taken place in individual categories therein from year to year over a span of time. One greatest advantage in the analysis of flow of fund is that it focuses attention on the problems faced by the concern in achieving its targets and commitments. The following pages contain the tabular and graphical representation of data collected for the purpose of analysis and interpretation of the fund flow statement. The analysis is made for a period of four years from 2009-2012. Analyzing financial statements is a process of evaluating relationships between component parts of financial statements to obtain a better understanding of a firms financial position. The items or figures found in financial statements will not be of much use if they are considered individually. They will be very useful only when one item is considered in the light of another item. Therefore the item can be compared with another item. The following contains the tabular and graphical representation through data analysis.

Analysis done by two ways:1. Year wise analysis. 2. Summarise analysis of each transaction.

4.1YEAR BY YEAR ANALYSIS FUND FLOW ANALYSIS FOR THE YEAR 2012-13

TABLE :- SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 31ST MARCH 2013. PARTICULARS 2012 2013 EFFECTS ON WORKING CAPITAL INCREASE
CURRENT ASSETS:CASH & BANK BALANCE LOANS & ADVANCES TOTAL CURRENT ASSETS (A) 5,475,639 7,433,556 12,909,195 9,854,726 7,267,309 17,122,035 4,379,087 166,247

DECREASE

CURRENT LIABILITIES & PROVISIONS:CURRENT LIABILITIES PROVISION FOR TAX) TOTAL CURRENT LIABILITIES(B) WORKING CAPITAL (A-B) NET INCREASE IN WORKING CAPITAL (B/F) TOTAL 15,002,656 136,754 15,139,410 -2,230,215 1,838,095 -392,120 17,224,644 289,511 17,514,155 -392,120 -392,120 4,379,087 1,838,095 4,379,087 2,221,988 152,757

TABLE:- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2013
PARTICULAR CURRENT ASSETS CASH & BANK BALANCE LOANS & ADVANCES CURRENT LIABILITIES CURRENT LIABILITIES PROVISION FOR TAX 17,224,644 289,511 9,854,726 7,267,309 AMOUNT

GRAPH :- SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2013
CURRENT ASSET & CURRENT LIABILITY
20,000,000 18,000,000 16,000,000 14,000,000 Axis Title 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 CASH & BANK BALANCE 9,854,726 LOANS & ADVANCES 7,267,309 CURRENT LIABILITIES 17,224,644 PROVISION FOR TAX 289,511

2012

ANALYSIS:-

TABLE : HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR 31ST MARCH 2013

SOURCES OF FUNDS POLICY PREMIUN INCOME

AMOUNT(RS)

APPLICATION OF FUNDS

AMOUNT(RS)

(INCLUDING FAIR VALUE CHANGE) TOTAL PROVISION FOR LINKED

25,459,733

REDEMPTION OF LOAN INVESTMENT SHAREHOLDERS HOLDERS ) (INCLUDING AND

467,679

LIABILITY((INCLUDING FAIR VALUE 42,901,704 CHANGE) FUNDS FROM REVIVAL OF POLICY 1,882,211

POLICY 77,047,892

REDEMPTION OF SHREHOLDERS FUND PURCHASE FIXED ASSET

55,519

FUNDS FROM OPERATION FUNDS POLICIES MISCELANEOUS INCOME TOTAL FROM DISCONTINUED

4,514,791

281,725

4,331,169

INCREASE IN WORKING CAPITAL

1,838,095

601,302 79,690,910 TOTAL 79,690,910

TABLE:- SHOWING SOURCES AND APPLICATION FUNDS FOR THE YEAR 31ST MARCH 2013

SOURCES OF FUNDS
POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) MISCELLANEOUS INCOME FUNDS FROM REVIVAL OF POLICIES FUNDS FROM OPERATIONS FUNDS FROM DISCONTINUIED POLICIES

AMOUNT 25,459,733 42,901,704 601,302 1,882,211 4,514,791 4,331,169

APPLICATION OF FUNDS
REDEMPTION OF LOAN INVESTEMENT REDEMPTION OF SHREHOLDERS FUND PURCHASE FIXED ASSET INCREASE IN WORKING CAPITAL

AMOUNT 467,679 77,047,892 55,519 281,725 1,838,095

GRAPH :- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2013

SOURCES OF FUNDS
4,331,169 4,514,791 1,882,211 FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) FUNDS FROM REVIVAL OF POLICIES FUNDS FROM OPERATIONS 42,901,704 FUNDS FROM DISCONTINUED POLICIES 601,302 POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE)

25,459,733

APPLICATION OF FUNDS
REDEMPTION OF LOAN INVESTEMENT REDEMPTION OF SHREHOLDERS FUND PURCHASE FIXED ASSET 77,047,892 INCREASE IN WORKING CAPITAL

INTERPRETATION:-

TABLE:- SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 31ST MARCH 2012. PARTICULARS 2011 2012 EFFECTS ON WORKING CAPITAL INCREASE
CURRENT ASSETS:CASH & BANK BALANCE LOANS & ADVANCES TOTAL CURRENT ASSETS (A) 3,837,312 6,770,283 10,607,595 5,475,639 7,433,556 12,909,195 1,638,327 663,273 -

DECREASE

CURRENT LIABILITIES & PROVISIONS:CURRENT LIABILITIES PROVISION FOR TAX) TOTAL CURRENT LIABILITIES(B) WORKING CAPITAL (A-B) NET INCREASE IN WORKING CAPITAL (B/F) TOTAL 13,037,550 150,102 13,187,652 -2,580,057 349,842 -2,230,215 15,002,656 136,754 15139410 -2,230,215 -2,230,215 2,314,948 349,842 2,314,948 13,348 1,965,106

TABLE :- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2012
PARTICULARS CURRENT ASSETS CASH & BANK BALANCE 54,75,639 AMOUNT

LOANS & ADVANCES CURRENT LIABILITIES CURRENT LIABILITIES PROVISION FOR TAX

74,33,556

1,50,02,656 136754

GRAPH :- SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2012
CURRENT ASSET & CURRENT LIABILITY
16000000 14000000 12000000 10000000 Axis Title 8000000 6000000 4000000 2000000 0 CASH & BANK BALANCE 5475639 LOANS & ADVANCES 7433556 CURRENT LIABILITIES 15002656

PROVISION FOR TAX 136754

2012

ANALYSIS:From the above table and graph, it is clear that the company has increases its working capital in the form of Cash & bank balance and Loans & advances by Rs. 1,638,327; & Rs. 663,273. The company has increases its working capital in the form of Current liabilities by Rs. 1,965,106& decreases Provision for tax Rs.13, 348. There will be net increase in working capital by Rs. 16,999,894.

TABLE :- HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR 31ST MARCH 2012

SOURCES OF FUNDS

AMOUNT(RS)

APPLICATION OF FUNDS INVESTEMENT (INCLUDING

AMOUNT(RS)

POLICY

PREMIUN

INCOME

(INCLUDING FAIR VALUE CHANGE) TOTAL PROVISION FOR LINKED

22,306,448

SHAREHOLDERS&POLICY HOLDERS) REDEMPTION OF SHREHOLDERS FUND

56,313,938

LIABILITY((INCLUDING FAIR VALUE 29,813,421 CHANGE) RECOVERY OF LOAN FUNDS FROM REVIVAL OF POLICY 13,611 131,219

57,224

PURCHASE FIXED ASSET INCREASE IN WORKING CAPITAL

399,722 349,842

FUNDS FROM OPERATION FUNDS POLICIES MISCELANEOUS INCOME TOTAL FROM DISCONTINUED

2,710,154

1,053,248

1,092,625 57,120,726 TOTAL 57,120,726

TABLE-4:- SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2012

SOURCES OF FUNDS
POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) MISCELLANEOUS INCOME RECOVERY OF LOAN FUNDS FROM REVIVAL OF POLICIES FUNDS FROM OPERATIONS FUNDS FROM DISCONTINUIED POLICIES

AMOUNT 22,306,448 29,813,421 1,092,625 13,611 131,219 2,710,154 1,053,248

APPLICATION OF FUNDS
INVESTEMENT REDEMPTION OF SHREHOLDERS FUND PURCHASE FIXEDASSET INCREASE IN WORKING CAPITAL 56,313,938 57,224 399,722 349,842

GRAPH 2:- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2012

SOURCES OF FUNDS
0% 0% 5% 2% 2% POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) 39% RECOVERY OF LOAN

FUNDS FROM REVIVAL OF POLICIES

FUNDS FROM OPERATIONS 52% FUNDS FROM DISCONTINUED POLICIES MISCELANEOUS INCOME

APPLICATION OF FUNDS

INVESTEMENT REDEMPTION OF SHREHOLDERS FUND PURCHASE FIXEDASSET INCREASE IN WORKING CAPITAL 98%

INTERPRETATION:From the above statement it is clear that company has increased its working capital by Rs. 16,999,894 in the year 2011-12. The profit percentage has shown a constant growth from the past year and has also grown at a healthy rate for the accounting year 2011-12. Debit balance of P&L a/c for the year 2011-12 are Rs.2710154. Debit balance of P&L a/c is showing a good sign for the company as out of total funds a major part was raised from cash profit. The company has also lended l o a n s w h i c h s h o w t h a t t h e s o l v e n c y p o s i t i o n o f t h e c o m p a n y i s favorable. The company has also diverted its funds appropriately in proper channels like purchase of various fixed assets, which in turn increases the overall growth of the organization. The company has paid sufficient amount of dividends to its shareholders and has also transferred reasonable amount of cash to its reserves & surplus account. To meet its capital expenditures the company has also raised own funds and invested maximum.

TABLE 5:- SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 31ST MARCH 2011
EFFECTS CAPITAL INCREASE CURRENT ASSETS:CASH & BANK BALANCE LOANS & ADVANCES(A) TOTAL CURRENT ASSETS CURRENT LIABILITIES & PROVISIONS:CURRENT LIABILITIES PROVISION FOR TAX(B) TOTAL CURRENT LIABILITIES WORKING CAPITAL (A-B) NET INCREASE IN WORKING CAPITAL (B/F) TOTAL 12,485,399 187,617 12,673,016 -4,725,082 1,30,37,550 150,102 13,187,652 -2,580,057 37,515 552,151 3,030,176 4,917,758 7947934 38,37,312 67,70,283 106,07,595 807,136 1,852,525 -DECREASE ON WORKING

PARTICULARS

2010

2011

2,145,025

2,145,025

-2,580,057

-2,580,057

2,697,176

2,697,176

TABLE:- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2011
PARTICULAR CURRENT ASSTES CASH & BANK BALANCE LOANS & ADVANCES CURRENT LIABILITIES CURRENT LIABILITIES PROVISION FOR TAX 1,30,37,550 150102 38,37,312 6,770,283 AMOUNT

GRAPH:- SHOWING CURRENT ASSETS AND CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2011
CURRENT ASSET & CURRENT LIABILITY
14000000 12000000 10000000 Axis Title 8000000 6000000 4000000 2000000 0 CASH & BANK BALANCES 3837312 LOANS & ADVANCES 6770283 CURRENT LIABILITY 13037550 PROVISION FOR TAX 150102

2011

ANALYSIS From the above table & graph, it is clear that the company has increases its working capital in the form of Cash & bank balance and Loans & advances by Rs. 807136; & Rs. 1852525. The company has decreases its working capital in the form of Current liabilities by Rs. 552151& increases provision for tax Rs. 37515. There will be net increase in working capital by Rs. 2145025.

TABLE :- HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR 31ST MARCH 2011

SOURCES OF FUNDS

AMOUNT (RS.) INCOME

APPLICATION OF FUNDS INVESTEMENT(INCLUDING

AMOUNT (RS.)

POLICY

PREMIUN

(INCLUDING FAIR VALUE CHANGE) TOTAL PROVISION FOR

13345883

SHAREHOLDERS&POLICY HOLDERS)

60642945

LINKEDLIABILITY((INCLUDING VALUE CHANGE) TRANSFER TO RESERVE ISSUE OF SHARES FUNDS FROM REVIVED POLICY FUNDS POLICIES TOTAL FROM

FAIR 50013536

REDEMPTION OF LOAN

290873

1469113 268801 1917410

PURCHASE FIXED ASSET INCREASE IN WORKING CAPITAL LOSS FROM OPERTIONS DEFICIT BALANCE IN THE

1251952 2145025 990021

DISCONTINUED

REVENUE A/C TOTAL

1693927

67014743

67014743

TABLE:- SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2011

SOURCES OF FUNDS
POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE)

AMOUNT 13345883

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

50013536

TRANSFER TO RESERVE ISSUES OF SHARES FUNDS FROM REVIVED POLICY

1469113 268801 1917410

APPLICATION OF FUNDS
INVESTEMENT REDEMPTION OF LOAN PURCHASE OF FIXED ASSET INCREASE IN WORKING CAPITAL LOSS FROM OPERATIONS DEFICIT BALANCE IN THE REVENUE A/C

AMOUNT 60642945 290873 1251952 2145025 990021 1693927

GRAPH 4:- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS IN THE YEAR 2011-12.

SOURCES OF FUNDS
0% 2% 3% 20% POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) FUNDS FROM PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) TRANSFER TO RESERVE

ISSUES OF SHARES

FUNDS FROM REVIVED POLICY 75%

APPLICATION OF FUNDS
1% 0% 2% 3% 3% INVESTEMENT REDEMPTION OF LOAN PURCHASE OF FIXED ASSET INCREASE IN WORKING CAPITAL LOSS FROM OPERATIONS DEFICIT BALANCE IN THE REVENUE A/C

91%

. INTERPRETATION: From the above statement it is clear that company has increased its working capital by Rs. 2145025 in the year 2010-11. The profit percentage has shown a constant growth from the past year and has also grown at a healthy rate But for the accounting year 2010-11., it is showing credit balance of P&L a/c by Rs. 990021.Credit balance of P&L a/c is showing not a good sign for the company as out of total funds a major part was raised from policy premium. The company has also lended l o a n s w h i c h s h o w t h a t t h e s o l v e n c y p o s i t i o n o f t h e c o m p a n y i s favorable. The company has also diverted its funds appropriately in proper channels like purchase of various fixed asset s and major part in investment which in turn increases the overall growth of the organization. The company has paid sufficient amount of dividends to its share holders and has also transferred reasonable amount of cash to its reserves & surplus account. To meet its Capital expenditures the company has also raised funds from revival of lapsed policies and Invested maximum.

TABLE 9:-SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 31ST MARCH 2010.
PARTICULARS 2009 2010 EFFECTS ON WORKING CAPITAL INCREASE CURRENT ASSETS CASH & BANK BALANCE LOANS & ADVANCES TOTAL CURRENT ASSETS(A) CURRENT LIABILITIES & PROVISIONS CURRENT LIABILITY PROVISION FOR TAX TOTAL CURRENT LIABILITIES(B) WORKING CAPITAL (A-B) NET DECREASE IN WORKING CAPITAL (B/F) TOTAL 508321 8820225 208813 9029038 508321 12281585 187617 12469202 -4725082 5254599 5233403 21196 3461360 4108660 5428699 9537359 2826362 4917758 7744120 1282298 510941 DECREASE

508321

5254599

5254599

TABLE 10:-CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2010
PARTICULAR CURRENT ASSETS CASH & BANK BALANCES LOANS & ADVANCES CURRENT LIABILITIES CURRENT LIABILITIES PROVISION FOR TAX 12281585 187617 2826362 4917758 AMOUNT

GRAPH 5: SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2010
CURRENT ASSET & CURRENT LIABILITY
14000000 12000000 Axis Title 10000000 8000000 6000000 4000000 2000000 0 CASH & BANK BALANCE 2826362 LOANS & ADVANCES 4917758 CURRENT LIABILITIES 12281585 PROVISION FOR TAX 187617

2010

ANALYSIS:From the above table & graph, it is clear that the company has decreases its working capital in the form of Cash & bank balance and Loans & advances by Rs. 1,282,298 & Rs. 510,941. The company has decreases its working capital in the form of Current liabilities by Rs. 3,461,360& increases Provision for tax Rs. 250,283. There will be net decrease in working capital by Rs. 21,196.

TABLE 11: HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR 31ST MARCH 2010

SOURCES OF FUNDS

AMOUNT (RS.)

APPLICATION OF FUNDS INVESTEMENT (INCLUDING

AMOUNT (RS.)

ISSUE OF SHARE CAPITAL

1721820

SHAREHOLDERS&POLICY HOLDERS)

101710679

TOTAL

PROVISION

FOR

LINKED PAYMENT OF LOAN 10118

LIABILITY((INCLUDING FAIR VALUE 86434864 CHANGE) POLICY LIABILITY TRANSFER TO RESERVE REVIVAL OF POLICY DECREASE IN WORKING CAPITAL SALE OF FIXED ASSET TOTAL 9076461 262045 1436479 5233403 307569 104472641

LOSS FROM OPERATIONS

2751844

TOTAL

104472641

TABLE 12:- SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2010

SOURCES OF FUNDS
ISSUE OF SHARE CAPITAL TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) POLICY LIABILITY TRANSFER TO RESERVE REVIVAL OF POLICY DECREASE IN WORKING CAPITAL SALE OF FIXED ASSET

AMOUNT
1721820 86434864 9076461 262045 1436479 5233403 307569

APPLICATION OF FUNDS

AMOUNT

INVESTEMENT

101710679

PAYMENT OF LOAN

10118

LOSS FROM OPERATIONS

2751844

GRAPH 6:- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2010

SOURCES OF FUNDS
307569 1436479 262045 TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) POLICY LIABILITY 5233403 1721820 ISSUE OF SHARE CAPITAL

9076461

TRANSFER TO RESERVE

REVIVAL OF POLICY

86434864

DECREASE IN WORKING CAPITAL

SALE OF FIXED ASSET

APPLICATION OF FUNDS
2751844 10118

INVESTEMENT PAYMENT OF LOAN LOSS FROM OPERATIONS 101710679

INTERPRETATION:- from the above statement it is clear that company has decreased its working capital by Rs. 5,233,403 in the year 2009-10. The profit percentage has shown a constant growth from the past year and has also grown at a healthy rate But for the accounting year 2009-10.,it is showing credit balance of P&L a/c by Rs. 2,751,844.Credit balance of P&L a/c is showing not a good sign for the company. As out of total funds a major part was raised from policy premium. The company has also lended l o a n s w h i c h s h o w t h a t t h e s o l v e n c y p o s i t i o n o f t h e c o m p a n y i s favorable. The company has also diverted its funds appropriately in proper channels like investment which in turn increases the overall growth of the organization. The company has paid sufficient amount of dividends to its share holders and has also Transferred reasonable amount of cash to its reserves & surplus account. To meet its Capital expenditures the company has also raised funds from revival of lapsed policies and Invested maximum.

TABLE 13:-SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 31ST MARCH 2009.
PARTICULARS 2008 2009 EFFECTS ON WORKING CAPITAL INCREASE CURRENT ASSETS:CASH & BANK BALANCE LOANS & ADVANCES TOTAL CURRENT ASSETS(A) CURRENT LIABILITIES & PROVISIONS :CURRENT LIABILITIES PROVISION FOR TAX TOTAL CURRENT LIABILITIES(B) WORKING CAPITAL (A-B) NET DECREASE IN WORKING CAPITAL (B/F) TOTAL 6129149 122019 6251168 2324559 8820225 208813 9029038 614591 1709968 1709968 3162448 3162448 2691076 86794 4493238 4082489 8575727 4108660 5534969 9643629 1452480 384578 DECREASE

TABLE 14:- CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 2009
PARTICULAR CURRENT ASSETS CASH & BANK BALANCE LOANS & ADVANCES CURRENT LIABILITIES CURRENT LIABILITIES PROVISION FOR TAX 8820225 208813 4108660 5534969 AMOUNT

GRAPH 7:-SHOWING CURRENT ASSETS & CURRENT LIABILITIES FOR THE YEAR 31ST MARCH 2009
CURRENT ASSET & CURRENT LIABILITY
10000000 9000000 8000000 7000000 Axis Title 6000000 5000000 4000000 3000000 2000000 1000000 0 CASH & BANK BALANCES 4108660 LOANS & ADVANCES 5534969 CURRENT LIABILITY 8820225 PROVISION FOR TAX 208813

2009

ANALYSIS:From the above table & graph, it is clear that the company has decreases its working capital in the form of Cash & bank balance by Rs. 384,578 and increases in Loans & advances by Rs. 1,452,480.The company has decreases its working capital in the form of Current liabilities by Rs. 2,691,076 & Provision for tax Rs. 86,794. There will be net decrease in working capital by Rs. 1,709,968.

TABLE 15:- HDFC STANDARD LIFE FUND FLOW STATEMENT FOR THE YEAR 31ST MARCH 2009
AMOUNT (RS.) INCOME AMOUNT (RS)

SOURCES OF FUNDS

APPLICATION OF FUNDS INVESTEMENT (INCLUDING

POLICY

PREMIUN

(INCLUDING FAIR VALUE CHANGE)

4235042

SHAREHOLDERS&POLICY HOLDERS)

16160939

TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE 9331352 CHANGE) LOAN 11630

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

5251821 871414 1709968 21399597

PURCHASE FIXED ASSET LOSS FROM OPERATIONS

115906 5111122

TOTAL

21399597

TABLE 16:-SHOWING SOURCES AND APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2009

SOURCES OF FUNDS
POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) ISSUE OF SHARES FUNDS FROM REVIVAL OF POLICY DECREASE IN WORKING CAPITAL 4235042 9331352 5251821 871414 1709968

APPLICATION OF FUNDS
INVESTEMENT LOAN PURCHASE Fixed asset LOSS FROM OPERATIONS 16160939 11630 115906 5111122

GRAPH 8:- PIE CHART SHOWING SOURCES & APPLICATION OF FUNDS FOR THE YEAR 31ST MARCH 2009

SOURCES OF FUNDS
8% 4% 20% POLICY PREMIUN INCOME (INCLUDING FAIR VALUE CHANGE) TOTAL PROVISION FOR LINKED LIABILITY((INCLUDING FAIR VALUE CHANGE) ISSUE OF SHARES 24% FUNDS FROM REVIVAL OF POLICY

DECREASE IN WORKING CAPITAL

44%

APPLICATION OF FUNDS

24% INVESTEMENT 1% 0% LOAN PURCHASE Fixed asset LOSS FROM OPERATIONS 75%

INTERPRETATION:From the above statement it is clear that company has decreased its working capital by Rs.1,709,968 in the year 2008-09. The profit percentage has shown a constant growth from the past year and has also grown at a healthy rate but for the accounting year 2008-09, it is showing loss from operations by Rs. 5111122. Loss from operation is showing not a good sign for the company. As out of total funds a major part was raised from policy premium. The company has also lended l o a n s w h i c h s h o w t h a t t h e s o l v e n c y p o s i t i o n o f t h e c o m p a n y i s favorable. The company has also diverted its funds appropriately in proper channels like investment and purchase of fixed asset which in turn increases the overall growth of the organization. The company has paid sufficient amount of dividends to its share holders and has also Transferred reasonable amount of cash to its reserves & surplus account. To meet its Capital expenditures the company has also raised funds from revival of lapsed policies and Investment was maximum.

4.2 SUMMARISE ANALYSIS OF EACH TRANSACTION

CURRENT ASSET TABLE 17: SHOWING DATA 0F CURRENT ASSETS (IN RS.) YEAR CASH AND BANK BALANCES ADVANCES AND OTHER ASSETS TOTAL (A)
17122035 12909195 10607595 7744120 9643629 7267309 7433556 6770283 4917758 5534969 2013 2012 2011 2010 2009

9854726

5475639

3837312

2826362

4108660

ANALYSIS:-

GRAPH 9:SHOWING CHANGE IN CURRENT ASSET FROM THE YEAR 2009 TO 2013 (IN RS.)

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

20000000 15000000 10000000 5000000 0 0 -5000000 TOTAL CURRENT ASSETS CHANGES(IN RS.) 2008-09 9643629 0 2863475 -1899509 2009-10 7744120 -1899509 2010-11 10607595 2863475 2011-12 12909195 2301600 2012-13 17122035 4212840 2301600

4212840

INTERPRETATION:-

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

2013 YEAR 17224644 CURRENT LIABILITY 289511 PROVISIONS 17514155 TOTAL (B)

2012

2011

2010

2009

15002656

13037550

12281585

8820225

136754

150102

187617

208813

15139410

13187652

12469202

9029038

ANALYSIS:

GRAPH 10:SHOWING CHANGE IN CURRENT LIABILITY FROM THE YEAR 2008 TO 2012 (IN RS.)

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

16000000 14000000 12000000 Axis Title 10000000 8000000 6000000 4000000 2000000 0 TOTAL CURRENT LIABILITY CHANGES(IN RS.) 2007-08 0 6251168 0 27778703440164 2008-09 9029038 2777870 2009-10 12469202 3440164 718450 2010-11 13187652 718450 1951758

2011-12 15139410 1951758

. INTERPRETATION:-

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

2013 YEAR -392120 NET CURRENT ASSET (A-B)

2012 -2230215

2011 -2580057

2010 -4725082

2009 614591

ANALYSIS:

GRAPH 11: SHOWING CHANGES IN NET CURRENT ASSETS FROM THE YEAR 2009 TO 2013 (IN RS.)

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

3000000 2000000 1000000 0 -1000000 -2000000 -3000000 -4000000 -5000000 -6000000 NET CURRENT ASSETS CHANGES(IN RS.) 2145025

349842 0 -1709968

Axis Title

-4110491 2007-08 2324559 0 2008-09 614591 -1709968 2009-10 -4725082 -4110491 2010-11 -2580057 2145025 2011-12 -2230215 349842

INTERPRETATION:-

SHAREHOLDERS FUND TABLE 20: SHOWING DATA IN SHAREHOLDERS FUND (IN RS.)
2013 YEAR 19948801 SHARE CAPITAL 2197045 RESERVE AND SURPLUS -103348 FAIR VALUE CHANGE A/C 22042498 SUB-TOTAL (A) 22098017 22155241 20417327 18433462 -52160 -350 184435 -77610 2201376 2206790 552892 552892 19948801 19948801 19680000 17958180 2012 2011 2010 2009

ANALYSIS:

GRAPH 12:- SHOWING TOTAL SHAREHOLDERS FUND FOR THE YEAR ENDING 2008 TO 2012. (IN RS.)

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

25000000 20000000 Axis Title 15000000 10000000 5000000 0 -5000000 0 2007-08 5170330 1983865 2008-09 18433462 5170330 2009-10 20417327 1983865 1737914 -57224 2010-11 22155241 1737914 2011-12 22098017 -57224

TOTAL SHAREHOLDERS 13263132 FUND(IN RS.) CHANGES(IN RS.) 0

INTERPRETATION:-

POLICYHOLDERS FUND TABLE 21: SHOWING DATA IN TOTAL POLICYHOLDERS FUND FOR THE YEAR ENDIND 2008 TO 2012 (IN RS.)
Year CREDIT FAIR VALUE CHANGE A/C POLICY LIABILITY TOTAL LIABILITY FUNDS FOR FUTURE APPROPRIATIONS LAPSED REVIVED FUNDS FOR DISCOUNTED POLICIES SUB-TOTAL (B) 4331169 387747373 1053248 314225804 260921468 POLICY UNLIKELY TO 3436831 1251005 3352468 1917148 2555106 1490013 1064831 586395 531970 PROVISION FOR 2013 -789521 99773580 LINKED 277946461 2012 -340785 73865111 235044757 2011 -15447 51233325 205231336 2010 205087 37666908 2009 -296885 29092419

155217800 68782936

BE 3048853

195644639 98696835

ANALYSIS:-

GRAPH 13:- SHOWING DATA IN POLICYHOLDERS FUND FOR THE YEAR ENDING 2008 TO 2012. (IN RS.)

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

350000000 300000000 250000000 Axis Title 200000000 150000000 100000000 50000000 0 TOTAL POLICYHOLDERS FUND(IN RS.) CHANGES(IN RS.) 2007-08 0 84259027 0 96947804 14437808 2009-10 2008-09 98696835 14437808 195644639 96947804 2010-11 260921468 65276829 65276829 53304336 2011-12 314225804 53304336

INTERPRETATION:-

INVESTEMENT TABLE 22: SHOWING DATA IN TOTAL INVESTEMENT FOR THE YEAR ENDIND 2008 TO 2012 (IN RS.)
2009 Year 2012 2011 2010 2009 4291597 SHAREHOLDERS 5894173 6999708 6304757 4291597 30152727 POLICYHOLDERS ASSET HELD TO COVER LIABILITY LINKED 236098005 205231336 155217800 68782936 103227260 TATAL (A) 321894822 265580884 204937939 103227260 79902644 53349840 43415382 30152727 68782936

ANALYSIS:From the above table, it is clear that investment has increased every year. In 2008 it was Rs.86963691 and it has increased in the year 2012 by Rs.321894822, it means company is investing more. Company is paying to policyholders a major part of their funds and to shareholders also. In 2012 company has invested Rs.236098005 to cover linked liability earlier it was only Rs.59451584 in 2008.it means it has increased multiple of times.

GRAPH 14:- SHOWING DATA IN TOTAL INVESTEMENT FOR THE YEAR ENDING 2008-2012(IN RS.)

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

350000000 300000000 Axis Title 250000000 200000000 150000000 100000000 50000000 0 TOTA(IN RS.)L INVESTEMENT CHANGES(IN RS.) 2007-08 0 86963691 0 101710679 16263569 2009-10 2008-09 103227260 16263569 204937939 101710679 60642945 56313938 2010-11 265580884 60642945 2011-12 321894822 56313938

INTERPRETATION:From the above table & graph, it is clear that the company has invested maximum fund in investment like shareholders, policyholders and asset held to cover linked liability. Company has paid dividend, redemption of shares including this they have uses its maximum amount. Policyholders to whom company has to pay, they have paid also in the way of settlement of claim, bonus etc. It shows that company is very much liable to pay the obligation to their shareholders and policyholders. Also company has paid some amount to cover linked liability. This all show that the company is using their fund appropriately in the growth of business and try to cover all the risk. Investment is increasing year by year means company is trying to capture more market share. Company has provided loan to their policyholders also.

LOAN TABLE 23: SHOWING DATA IN TOTAL LOAN AMOUNT FOR THE YEAR ENDIND 2008 TO 2012 (IN RS.)
YEAR 2012 2011 2010 2009 2008

LOANS

317628

331239

40366

30248

18618

ANALYSIS:From the above table, it is clear that the company is having loan of amount Rs.18618 in the year 2008 which has increased by Rs.317628 in the year 2012.Continuousely it is increasing year by the year. Company has paying loan continuously. GRAPH 15:- SHOWING DATA IN TOTAL LOAN AMOUNT FOR THE YEAR ENDING 2008-2012(IN RS.)

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

350000 300000 250000 200000 150000 100000 50000 0 -50000 TOTAL LOAN AMT.(IN RS.) CHANGES(IN RS.) 290873

Axis Title

0 2007-08 18618 0

11630 2008-09 30248 11630

10118 2009-10 40366 10118

-13611 2010-11 331239 290873 2011-12 317628 -13611

INTERPRETATION:From the above table & graph, it is clear that the company has paid their loan on time and it is a very less amount .so we can say that company is not having any heavy loan to pay.

PROFIT ND LOSS ACCOUNTS TABLE 24: SHOWING DATA IN TOTAL PROFIT AND LOSS A/C FOR THE YEAR ENDIND 2008 TO 2012 (IN RS.)

YEAR

2012

2011

2010

2009

2008

DEBIT BALANCE IN PROFIT AND LOSS A/C 12944833

15654987

14664966

11913122

97522159

DEFICIT IN THE REVENUE ACCOUNT

601302

1693927

TOTAL(P&L A/C)

13546135

17348914

14664966

11913122

97522159

ANALYSIS:From the above table, it is clear that the company is showing debit balance in P& L a/c. It is decreasing by Rs.97,522,159 to Rs.13,546,135 from the year 2008 to 2012.sometimes in the year 2009 it has decreased but in the year 2010 it has increased by Rs.14,664,966.Also showing some deficit in revenue account in the year 2012 and 2011 by Rs.1,693,927 to Rs.601,302. GRAPH 16:- SHOWING DATA IN TOTAL DEBIT BALANCE IN P&L A/C FOR THE YEAR ENDING 2008-2012(IN RS.)

DEBIT BALANCE IN P&L A/C FROM THE YEAR 2008 TO 2012(IN RS.)
150000000 100000000 Axis Title 50000000 2683948 0 0 -50000000 -1E+08 TOTAL P&L A/C CHANGES(IN RS.) 2007-08 97522159 0 -85609037 2008-09 2009-10 11913122 -85609037 14664966 2751844 2010-11 17348914 2683948 2011-12 13546135 -3802779 2751844 -3802779

INTERPRETATION:From the above table & graph, it is clear that the company is showing debit balance means it is loss in trial balance debit side so it is transferred to adjusted P&L A/C. From there we get funds from the operations or loss from the operations. Revenue account is showing some deficit value means it is loss for the company.

SOURCES OF FUND TABLE 25: SHOWING DATA IN TOTAL SOURCES OF FUND FOR THE YEAR ENDIND 2009 TO 2012 (IN RS.)
YEAR ISSUE OF SHARES POLICY PREMIUM PROVISION FOR LINKED LIABILITY 2012 2011 268,801 13,345,883 50,013,536 2010 1,721,820 9,076,461 86,434,864 2009 5,251,821 4,235,042 9,331,352

22,306,448 29,813,421

RECOVERY OF LOAN REVIVAL OF LAPSED POLICY FUNDS FROM DISCONTINUED POLICY TRNSFER TO RESERVE

13,611
131,219

1,917,410

1,436,479

871,414

1,053,248 -

1,469,113

262,045

MISC. INCOME SALE OF FIXED ASSETS DECREASE IN WORKING CAPITAL FUNDS FROM OPERATIONS TOTAL SOURCES OF FUNDS (IN RS.)

1,092,625 2,710,154

--

307,569 5,233,403 -

1,709,968 -

57,120,726

67,014,743

104,472,641

21,399,597

ANALYSIS:From the above table, it is clear that the companys main source of fund is policy premium and provision for linked liability. From the policy premium company has raises Rs.22, 306,448 in the year 2012 earlier in the year 2011 was Rs. 13,345,883.means fund from policy premium is increasing year by year. provision for linked liability also be a source of fund by which company raises Rs. 29813421 in the year 2012.othe r sources are fund from operations, transfer to reserve, funds from revival of the policy, funds from discontinued policy .they take part in raising sources of funds. In the year 2009 was Rs.21,399,597,in 2010 it was Rs.104,472,641,in the year 2011 it was Rs.67,014,743 & in the year 2012 was 57,120,726 which is showing sometimes increases /decreases GRAPH 17:- SHOWING DATA IN TOTAL SOURCES OF FUNDS FOR THE YEAR ENDING 2009-2012(IN RS.)

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

400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 TOTAL SOURCES OF FUNDS(IN RS.) CHANGES(IN RS.)

Axis Title

98931669 67014743 2008-09 0 117130297 0 2009-10 216061966 98931669 2010-11 283076709 67014743

53247112 2011-12 336323821 53247112

INTERPRETATION:From the above table & graph, it is clear that the company is having sufficient sources of income. Main sources are funds from policyholders and provision for linked liabilities and other sources are share capital, fund from operations, reserve and surplus. Increase in policyholders fund Means Company is doing their business well and having sufficient amount to meet any obligation. By these funds they can utilize in smoothly running of their business. This statement also shows that increase in sales of policy. This is an ideal situation for any insurance company to raises major funds from policy premium. APPLICATION OF FUND TABLE 26: SHOWING DATA IN TOTAL APPLICATION OF FUND FOR THE YEAR ENDIND 2009 TO 2012 (IN RS.
Year INVESTEMENT (SHAREHOLDERS &POLICYHOLDERS). REDEMPTION OF SHARES FIXED ASSETS PURCHASED 56,313,938 57,224 399,722 60,642,945 290,873 1,251,952 101,710,679 16,160,939 115,906 2012 2011 2010 2009

INCREASE IN WORKING CAPITAL MISC. EXPENSES PAYMENT OF LOANS LOSS FROM OPERATIONS TOTAL APPLICATION OF FUNDS (IN RS.)

349,842 -

2,145,025 1,693,927 990,021

10,118 2,751,844

11,630 5,111,122

57,120,726

67,014,743

104,472,641

21,399,597

ANALYSIS:From the above table, it is clear that the company has uses their fund appropriately in the term of investment by Rs. 56,313,938, Rs. 60,642,945, Rs. 101,710679 & Rs. 16,160,939 the year 2008-09,2009-10,2010-11 & 2011-12 which is sometimes increases or decreases year by year. The company has uses their maximum fund in to purchase of investment purchase of fixed assets, and in loss from operations. in 2011 company shows miscellaneous expenses which is Rs.1,693,927.total application of fund in the year 2009 was Rs.21,399,597,in 2010 it was Rs.104,472,641,in the year 2011 it was Rs.67,014,743 & in the year 2012 was 57,120,726 which is showing sometimes increases /decreases

GRAPH 18:- SHOWING DATA IN TOTAL INVESTEMENT FOR THE YEAR ENDING 2008-2012(IN RS.)

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

400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 TOTAL APPLICATIONSS OF FUNDS(IN RS.) CHANGES(IN RS.)

Axis Title

98931669 67014743 2008-09 0 117130297 0 2009-10 216061966 98931669 2010-11 283076709 67014743

53247112 2011-12 336323821 53247112

INTERPRETATION:From the above table & graph, it is clear that the company the company has uses their fund
appropriately in the term of investment by Rs. 56,313,938, Rs. 60,642,945, Rs. 101,710679 & Rs. 16,160,939 the year 2008-09, 2009-10,2010-11 & 2011-12 which is sometimes increases or decreases year by year. The company has uses their maximum fund in to investment purchase of fixed assets, and in loss from operations. in 2011 company shows miscellaneous expenses which is Rs. 1,693,927.total application of fund in the year 2009 was rs.21,399,597,in 2010 it was rs.104,472,641,in the year 67,014,743 & in the year 2012 was 57,120,726 which is showing sometimes increases /decreases. Company has paid claim, redemption on shares etc are the main uses of funds.