Topic Introduction

Financial performance analysis.

Financial analysis is the process of identifying the financial strengths and
weakness of the firm by proper establishment of the relation ship between the items of
the balance sheet and profit and loss account. Financial Analysis can be undertaken by
management of the firm, land by parties outside the firm viz., owners, creditors,
investors, the nature of analysis will differ depending on the purpose of the analysis.
Trade creditors are inserted in firms ability claims over a very short period of
time. Their analysis will, therefore, confine to the evolution of the firms liquidity
position.
uppliers of long term debt, on their hand, are concerned with the firms long
term solvency and survival. They analyze the firms probability over time, its ability to
generate cash to be able to pay interest and repay principal and the relationship.
!etween various source of funds long term creditors to analyze the historical
financial statements to make analysis about its futures solvency and profitability.

Over view of Financial Management
1. Concept of Financial management:
Financial management is a activity, which is concerned with providing
quantitative information, primarily financial in nature and that, may be needed for
making economic, decisions regarding reasoned different alternate course lf action.
Thus, financial management is a process of identification, accumulation, analysis
preparation, interpretation, and communication of financial information to plan, evaluate
and control.
"TA#
$
%Financial #anagement is an area of financial decision making, harmonizing
individual motives and enterprise goals&
'(eston ) !righam
Financial #anagement is the operational activity of that is responsible for obtaining
and effectively utilizing the funds necessary for efficient operations.
' *oseph ) #assic
2. Obective:
The goal of financial management should be to achieve the ob+ective of
business. #ain ob+ectives are profit ma,imization and wealth ma,imization.
2.1 !rofit ma"imi#ation:
#a,imization of profits is regarded as the main ob+ective of a business
enterprise.
$%y profit ma"imi#ation&
-ach company collects its finances by way of issue of shares to the public.
"nvestors purchase shares with the hope of getting ma,imization profits from the
company. To meet this, companys goal should be earn ma,imum profit out of available
resources. Financial management evaluates how the funds are procured and used. "t
involves a sound +udgment combined with a logical approach to decision making. This
call for evaluation of the conditions of alternate uses of funds and allocation of resources
after considerations of alternate. uses of funds all/ocations of resources after
considerations of production and marketing inter relationships. Financial management is
concerned with the efficient use of resource mainly capital funds. 0rofit ma,imization
should serve as the basic criterion for decisions arrived at by financial manager and
business firms.
"TA#
1
2.2 $ealt% ma"imi#ation:'
#a,imization of wealth is a more viable ob+ective of financial management the.
The same ob+ective, if e,pressed in other terms, would convey the idea of net present
worth ma,imization. Any financial action which has a net present worth is a desirable
one and should be undertaken. (ealth of a firm is reflected in the ma,imization of
present value of the firm i.e., the present worth of firm. This may be readily measured if
the company has shares that are held by the public. And to a shareholder, the term
2(ealth 2 is reflected in the amount of his current dividends and the marketing price of
share.
-zra olomon has defined wealth ma,imization ob+ective as %the gross present
worth of a course of action is equal to the capitalized value of the flow of future e,pected
benefits, discounted 3or capitalized 4at a rate which reflects the certainly. (ealth of net
present worth is the different between gross present worth and the amount of capital
investment required to achieve the benefits&. From this, one thing is present value of
owners investment in a company and the implementation of pro+ects that will increase
the market value of firms securities.
Ot%er Obectives:
"n addition to the foresaid, the following are other ob+ectives of financial
management. -nsuring a fair return to share holders, building up resources for growth
and e,pansion, ensuring ma,imum operation efficiency by efficient and effective
utilization of finances and ensuring financial discipline in the organization.
1. :Financial decisions:
5ecisions have been categorized in to two broader groups and such as long'term
financial decisions. And it includes investment decision, financing decision and dividend
decision. The latter are decisions concerning cash, investments 3marketable securities4,
receivable and inventory.
"TA#
6
(.1 )ong'term financial decisions:'
The long'term financial decision pursued by the manager has significant effects of
the value of a firm. The results of these decisions are not confined to a few months but
e,tend over several years and these decisions are irreversible. "t is, therefore, necessary
that before committing scarce resources of the form a careful e,ercise should be
undertaken to measure the likely costs and benefits of vario/us decisions.
Investment decisions:
"nvestment decision is concerned with the effective utilization of funds in one
activity of the other. A business firm requires funds for investing in various fi,ed and
current assets. !efore taking any final decision. Their relative profitability must be
e,amined with the help of financial tools. uch as cost of capital, capital budgeting
techniques etc.,
Financing decision:
Financing decision is also known as capital structure decision .Financing decision
involves the determination as to how the total funds required by the firm will be made
available. There is a number of sources form which funds can be raised. The most
important sources of financing are equity and debt. The central task before the financial
manager is to determine the proportion of equity and debt. The different types of
securities are equity shares7 preference shares bonds, debentures, and by rid.
Accompany cannot depend on only one source of capital. 8ence, a varied
financial structure is needed. !ut before using any particular source of fund, relative cost
of capital degree of risks etc., should be thoroughly e,amined. This comes within
purview of financing decision.
*ividend decision:
The ne,t crucial financial decision is the dividend decision. This is the basis of
dividend payment policy, reserve policy etc., the dividends are generally paid as some
percentage of earnings o paid'up capital. 8owever, dividend policy pursued by
management may be generally stable in character. table dividend policy implies the
payments of same earnings percentage with only small variations depending up on the
pattern of earnings. The amount of undistributed profit is called 2retained earnings.
"TA#
.
(.2 +%ort'term financing decision:'
The +ob of the financial manager is not +ust limited to the long'term financial
decision aiming at safeguarding the firm against illiquidity of insolvency. urveys
indicate that the largest portion of a financial managers time is devoted to the day'to'day
internal operations of the firm, may be less of appropriate
Tools of financial management:
Financial many subsumed under the heading of working capital management.
#anagement is concerned with raising financial resources and their effective
utilization towards achieving the organization goals. The requires application of
appropriate financial tools. The term financial refer to may logical method or technique
to be employed for the purpose of accomplishing the goals. Following are the important
tools that by used by financial manager in the performance of his +ob.
,.1 Financial leverage:'
Financial leverage is another tool, which helps the financial manager in increasing
the return to equity shareholders.
,.2 Cost of capital:'
9ost of capital helps the financial manager is deciding About the source from
which the funds are to be raised. "ncase of different source of finance, viz. hares,
debentures, loans from financial institution, banks, public deposits, etc., the financial
manager takes in to account is also capital and opts for the source which is the cheapest.
The cost of capital is also taken into account while determining the optimum capital
structure.
"TA#
:
,.( Capital budgeting tec%ni-ues:'
a. pay back period;
b. "nternal rate of return7
c. Average rate of return;
d. <et present value and
e. 0rofitability inde,.
These would help the financial manager in selecting the among alternate capital
investment proposals.
,., .atio analysis:
=atio analysis is the method of evaluating different aspect of a firm. 5ifferent
ratios serve different purposes. =atios are among the best known the best known and
widely used tools of financial analysis. "nvestors are primarily inserted in the profitability
and leverage of the company. The profitability and leverage of the company. The
profitability ratios are on investment, net profit margin, earnings per share, dividend
cover etc.
,./ Funds flow and cas% flow analysis:'
Funds low and cash flow analysis help the financial manager to determine whether
funds have been procured from the best available source and they have been utilized in
the best possible way. 0ro+ected funds flow statement and pro+ected cash flow statement
help the financial manager in estimating or arranging for the future working capital of
cash needs.
"TA#
>
I0*1+T.2 !.OFI)3
I0T.O*1CTIO0
?ne cannot prevent uncertainties but can reduce the losses occurring with such
happening. The minimization of loss is the preliminary measure to cope with the possible
uncertainty in future. "nsurance is an assurance to share the e,pected loosed in order to
reduce the burden of the loss. 9ompensation is paid by the insurance company to the
affected. "nsurance is as old as civilization. @ncertainties occur due to social, cultural,
political of ethical factors. At times natural calamities play a ma+or role. To meet such
uncertainties the business of insurance assumes multi' dimensions.
Todays insurance industry has resemblance of $>
th
or $A
th
century. "n fact from $>
th
century insurance industry gradually developed. &A seed we !est regards as in $>
th
century
which turned out to be a big tree now and is still growing&
$45T I+ I0+1.50C3?
The business of insurance is related to the protection of the economic value of
asset. -very asset has a value. The asset would have been created through the effects of the
owner, in the e,pectation that either through the income generated there from or some other
output, some of his needs would be met. "n the case of a motorcar it provides comfort and
convenience in transportation. There is no direct income. There is a normally e,pected
lifetime for the asset during which time it is e,pected to perform.
8ow ever, if the asset gets lost earlier, being destroyed or made nonfunctional, through an
accident or other unfortunate event , the owner and house deriving benefits may suffer.
"nsurance is a mechanism that helps to reduce such adverse consequences.
"TA#
A
M350I06 OF I0+1.50C3
"nsurance means %"n giving security&. "t is a contract securing compensation for loss,
damage, in+ury or death on payment or premium. The parties involved in the contract are;
718. Insurer 728. Insured
A company or corporation that undertakes the business or insuring against loss,
damage or death is called insurance company. 9ertificate of insurance is called insured
policy. "t is %A document containing the contract made by an insurance company with a
person whose property or life is insured&.
!1.!O+3 50* 033* OF I0+1.50C3
Assets are insured, because they are likely to be destroyed are made non functional
through an accidental occurrence. such possible occurrences are called perils . fire, floods,
breakdowns, lighting, earthquakes , etc, are perils . The damage that these perils may cause
to the asset is the risk. the risk only means there is a possibility of loss or damage , it may or
may not happen . "nsurance is done against the contingency that it may happen insurance is
relevant only if there are uncertainties. <o uncertainty no insurance. There are other
meanings of the term risks. To an ordinary man risk means e,posure to danger in insurance
practice risk is also used to refer the peril or loss'producing event. For e,ample, it is said that
fire insurance converts the risks of fire, e,plosion, cyclone, flood etc. Again it is used to refer
to the property covered by insurance, for e,ample, a timber constructions is considered to be
add risks for fire insurance purpose . 8ere the term risk refers to sub+ect master of insurance.
"TA#
B
"nsurance takes care7 it does not protect the asset. "t does not prevent loss due to the
peril. The peril can sometimes not be avoided, through insurance. !ut at times it can be
avoided through safety and damage control management. "nsurance only tries to reduce the
impact of the risk on the owner of the asset and those who depend on the asset. "t companies,
but not fully .only economic or financial losses can be compensated. The concept of
insurance has been e,tended beyond the coverage of tangible asset. -,porters run the risk of
the importers in the other country defaulting as well as political disturbances. 5octors run the
risk of being charged with negligence and subsequent liability for damages, thus insurance is
e,tended to intangible the %purpose of the insurance is to safeguard against misfortunes by
making good by making good the losses of unfortunate few through the help of fortunate
many&. Thus the essence of insurance is to share losses and substitute uncertainty.
I0+1.50C3 93COM3 !O!1)5. 50* 5 F5I. 5..5063M30T FO.
T43 .35+O0+:
$. 0eople are e,posed to risks and the consequence of such risks is difficult for
single individual to bear.
1. "t becomes bearable when the community shares the burden.
I0+1.50C3 5+ +OCI5) +3C1.IT2 TOO)
"t is recognized as the provision of social security as is an obligation of the state. "n
fact, the sub+ect has been included in list """ of the seventh schedule of the constitution of
"ndia as %social security and social insurance& and &welfare of labor including, inter aila,
liability for workmens compensation, etc. &further ,article .$ of the directive principles of
inter alia , sickness and disablement and in other cases of underserved want
The various laws, passed by state for this purpose involve the use of insurance, compulsory
or voluntary, as a tool of social security. The employees state insurance corporation pays for
the e,penses of sickness, disablement, maternity and death and death and for the
maintenance of hospital dispensaries, etc, for the benefit of industrial employees and their
families, who are insured persons. The scheme operates in certain industrial areas as notified
by the government.
"TA#
C
"nsurance play an important role in the social security schemes sponsored by the
government. -,ample is solarium scheme, the personal accident social security scheme and
8ut "nsurance cheme. The benefits not only the insured farmers but also the community
directly and indirectly in terms of maintaining agricultural production and rural employment
and contribution to economic growth.
All the rural insurance schemes, operated on a commercial basis, are designed
ultimately to provide social security to the rural families. The insurance industry has devised
special insurance schemes, at subsidized rates of premium, to cover cattle and other livestock
and various other government sponsored programmers and financial institutions..
.O)3 OF I0+1.50C3 I0 3CO0OMIC *3:3)O!M30T
For economic development, investments are necessary. "nvestments are made out of
savings. A life insurance company is a ma+or instrument for the mobilization of savings of
people, particularly from the middle and lower income groups. These savings are channeled
into investment for economic growth.
An insurance companys strength lies in the fact that huge amounts are collected and
pooled together. These amounts come by way of premiums. -very premium represents a
risk that is covered by that premium. "n effect, there fore these vast amounts represents
pooling of risks. The managements of insurance companies are required to keep this aspect
mind and make all its decision in ways that benefits the community. This applies also to its
investment. That is why successful insurance companies would not be found investing in
speculative ventures.
The system of insurance company provides numerous direct and indirect benefits to
the individual and his family as well as to industry and commerce and to the community and
the nation as a whole. Those who insure from the consequence of the loss that may be
caused by the accident for fortuitous event. "nsurance, thus in a sense protects the capital in
industry and releases the capital for further e,pansion and development of business and
industry.
"TA#
$/
COM!502 !.OFI)3
9aa 5llian# )ife aims %ig%
am Dhosh, 9-?, !a+a+ Eife "nsurance 9ompany Eimited, who took over this
*anuary, outlines his aggressive growth strategy. Fenkatachari *agannathan reports
!a+a+ Eife "nsurance 9ompany Eimited G a A.;1> +oint venture between !a+a+ Auto
Eimited and Allianz AD, Dermany 3formerly Allianz !a+a+ Eife "nsurance 9ompany
Eimited4 G under a new team headed by am Dhosh, 9-?, has taken the competition
head'on, leaving industry watchers surprised at its rapid pace of growth.
Dhosh himself is a newcomer to the company, earlier having steered the =s.B/
crore'!a+a+ Allianz Deneral "nsurance 9ompany to the second position in the "ndian
private sector insurance sector.
"n a span of +ust eight months, !a+a+ Allianz Eife 3premium income =s11/ crore4
has +umped three paces to occupy the fourth slot in the $6'strong life insurance industry.
Today the company is in the midst of pursuing its twin corporate HdreamH goals G
to close this fiscal with a premium income of =sA:/ crore and occupy the number three
slot displacing the incumbent !irla un Eife "nsurance 9ompany Eimited.
Diven the daily collections G over =s$ crore G and its month'on'month growth,
the second may come true sooner.
According to the "nsurance =egulatory and 5evelopment Authority 3"=5A4 figures, the
new premium difference between !a+a+ Allianz Eife and !irla un Eife at the end of
August 1//. was =s6A.: crore. =ival !irla un Eife has taken the threat seriously.
"TA#
$$
COM!502 *3T5I)+
May 2;< 2==;
!a+a+ Allianz Eife "nsurance 9ompany Etd. is a +oint venture between two leading
conglomerates 'Allianz AD, one of the worldHs largest insurance companies, and !a+a+
Auto, one of the biggest 1 and 6wheeler manufacturers in the world.
9aa 5llian# )ife Insurance
"s the fastest growing private life insurance company in "ndia
9urrently has over .,./,/// satisfied customers
8as a presence in more than ::/ locations with >/,/// "nsurance 9onsultant
providing the finest customer service.
August 1//. was =s6A.: crore. =ival !irla un Eife has taken the threat
seriously
+45.3* :I+IO0
5 %ouse%old name in India teams up wit% a global conglomerate...
!a+a+ Auto Etd, the flagship company of the =s. B/// crore !a+a+ group is the largest
manufacturer of two'wheelers and three'wheelers in "ndia and one of the largest in the
world. A household name in "ndia, !a+a+ Auto has a strong brand image ) brand loyalty
synonymous with quality ) customer focus. (ith over $:,/// employees, the company
is a =s. ./// crore auto giant, is the largest 1I6'wheeler manufacturer in "ndia and the .th
largest in the world. AAA rated by 9risil, !a+a+ Auto has been in operation for over ::
years. "t has +oined hands with Allianz to provide the "ndian consumers with a distinct
option in terms of life insurance products. As a promoter of !a+a+ Allianz Eife "nsurance
9o. Etd., !a+a+ Auto has the following the offer
Financial strength and stability to support the "nsurance !usiness.
A strong brand'equity.
A good market reputation as a world class organization.
An e,tensive distribution network.
Adequate e,perience of running a large organization.
"TA#
$1
A $/ million strong base of retail customers using !a+a+ products.
I.*5 C3.FIC5T3
-,perience in the financial services industry through !a+a+ Auto Finance Etd
"TA#
$6
59O1T 95>5>
The !a+a+ Droup is amongst the top $/ business houses in "ndia. "ts footprint
stretches over a wide range of industries, spanning automobiles 3two'wheelers and three'
wheelers4, home appliances, lighting, iron and steel, insurance, travel and finance.
The groups flagship company, !a+a+ Auto, is ranked as the worlds fourth largest two'
and three' wheeler manufacturer and the !a+a+ brand is well'known in over a dozen
countries in -urope, Eatin America, the @ and Asia.
Founded in $C1>, at the height of "ndiaHs movement for independence from the !ritish,
the group has an illustrious history.
The integrity, dedication, resourcefulness and determination to succeed which are
characteristic of the group today, are often traced back to its birth during those days of
relentless devotion to a common cause. *amnalal !a+a+, founder of the group, was a close
confidant and disciple of #ahatma Dandhi. "n fact, Dandhi+i had adopted him as his son.
This close relationship and his deep involvement in the independence movement
did not leave *amnalal !a+a+ with much time to spend on his newly launched business
venture. 8is son, Jamalnayan !a+a+, then 1A, took over the reins of business in $C.1. 8e
too was close to Dandhi+i and it was only after "ndependence in $C.A, that he was able to
give his full attention to the business.
"TA#
$.
9aa 6roup

9aa 5uto )td< t%e flags%ip company of t%e .s. ?=== crore 9aa group is t%e largest
manufacturer of two'w%eelers and t%ree'w%eelers in India and one of t%e largest in t%e world.
A household name in "ndia, !a+a+ Auto has a strong brand image ) brand loyalty
synonymous with quality ) customer focus.
5 +T.O06 I0*I50 9.50*' 45M5.5 95>5>
?ne of the largest 1 ) 6 wheeler manufacturer in the world
1$ millionK vehicles on the roads across the globe
#anaging funds of over =s ./// cr.
!a+a+ Auto finance one of the largest auto finance cos. in "ndia
=s. .,A.. 9r. Turnover ) 0rofits of :6B 9r. in 1//1'/6
"t has +oined hands with Allianz to provide the "ndian consumers with a distinct
option in terms of life insurance products.
5bout 9aa 5l l i an# )i fe Insurance Company )td.
!a+a+ Allianz Eife "nsurance 9o. Etd. is a +oint venture between two leading
conglomerates' Allianz AD, one of the worldHs largest insurance companies, and !a+a+
Auto, one of the biggest 1 and 6 wheeler manufacturers in the world.
9aa 5llian# )ife Insurance
<o.$ 0rivate Eife "nsurance 9ompany in "ndia for 1//>'/A
Drowth rate of 1$>Lfor financial year 1//>'1//A
?ver $:,//,/// satisfied customers
A countrywide network of A//K offices
Assets under management =s. 6,61. cr.
"TA#
$:
hareholder capital base of =s. ://
Indian operations:
9aa 5llian# )ife Insurance Company )imited is a oint venture between two
leading conglomerates 5llian# 56 and 9aa 5uto Limited. 9haracterized by
global presence with a local focus and driven by customer orientation to
establish high earnings potential and financial strength, !a+a+ Allianz Eife
"nsurance 9o. Etd. was incorporated on $1th #arch 1//$. The company
received the "nsurance =egulatory and 5evelopment Authority 3"=5A4
certificate of =egistration 3=64 <o $$> on 6rd August 1//$ to conduct Eife
"nsurance business in "ndia.
9aa 5llian#' T43 !.3+30T
0roduct tailored to suit your needs
5ecentralized organization structure for faster response
(ide reach to serve you better M a nationwide network of A// K branches
pecialized departments for !ank assurance, 9orporate Agency and Droup
!usiness
(ell networked 9ustomer 9are 9enters 3999s4 with state of art "T systems
8ighest standard of customer service ) simplified claims process in the industry
(ebsite to provide all assistance and information on products and services, online
buying and online renewals.
Toll'free number to answer all your queries, accessible from anywhere in the
country M 9all <ow $B// 11 :B:B and a strong tele'marketing and 5irect
marketing team.
wift and easy claim settlement process
"TA#
$>
Focused +ales 0etwor@
Tie @ps with !anks
!ioneers of 9ancassurance in India...
8aving pioneered the phenomenon, !ancassurance is one our core business strategies.
Two of our strong !anc assurance tie'ups are;
tandard 9hartered !ank
yndicate !ank
(e have developed a range of life insurance products e,clusively for our !ancassurance
partners. Also, our products are customized to suit specific needs of banks.
"TA#
$A
!.O*1CT !.OFI)3
T%e 9aa allian#a Ac%ild gainB !lan:
Taking care of a child is perhaps the most important +ob a parent can have. "t is but
natural that you would like to give your child your best. And therefore, this is the time when
careful financial planning can help you fulfill the aspiration that you have for your children.
The !a+a+ Allianz child gain solutions help you to en+oy the +oys of parenthood responsibly,
with the reassurance of a secure future for your child.
$%at does 9aa allian# Ac%ild gainB plan offer you&
!a+a+ Allianz child offers a wide array of solutions that allows you to plan for your
childs future by providing you with as many as . distinct and unique options.
?ption $ ; child gain 1$
?ption 1 ; child gain 1.
?ption 6 ; child gain 1$ plus
?ption . ; child gain 1. plus
"TA#
$B
T%e 9aa 5llian# 0ew 1nit 6ain !lan:
!a+a+ Allianz <ew unit gain comes with a host of features that allows you to have
the best of both worlds M protection and investment, with fle,ibility like never before.
Jey features of this plan are;
Duaranteed death benefit.
9hoice of investment funds with fle,ible investment management7 you can
change funds at any time.
0roviding for fullIpartial withdraws any times after three years, provided three
full years premiums are paid.
@nmatched fle,ibility M to match your changing needs.
#aturity benefit equal to the fund value payable on the date of maturity.
T%e A9aa 5llian# new unit gain plusB plan:
The !a+a+ Allianz new unit gain plus plan comes with a host of features that allows
you to have the best of both worlds M protection and investment with fle,ibility like never
before. ome of the key features of this plan are;
Duaranteed death benefit
9hoice of : investment funds with fle,ible investment management; you can change
funds at any time.
Attractive investment alternative to fi,ed M interest securities.
9hoice of investment funds with fle,ible investment management; you can change
funds at any time.
"TA#
$C
Attractive investment alternative to fi,ed M interest securities
0rovision for fullIpartial withdrawals any time after three years from commenced of
the policy provided three full years premiums are paid.
@nmatched fle,ibility to match your changing needs.
#aturity benefit equal to the fund value payable on date of maturity.
4ow does 9aa 5llian# Cas% 6ain&
This plan pays out a guaranteed amount on survival at the end of every $I:th of the
policy term selected. A total of A:L of the sum assured is paid out in the first . cash
benefits. ?n maturity, :/L of the sum assured is paid along with accrued bonuses. 8ence the
total cashIsurvival benefit distributed under this plan comes to more than $//L /f the sum
assured M in fact $1:L of the sum assured.
$
st
9ash !enefit $:L of um Assured
1
nd
9ash !enefit 1:L of um Assured
6
rd
9ash !enefit 1:L of um Assured
.
th
9ash !enefit 1:L of um Assured
:/L on maturity of sum Assured K accrued bonuses
.
The benefits will further increases by way of accrued bonuses that are distributed at
maturity or on death, if earlier. "n case of maturity or death after $: full policy years, the
company may pay an additional terminal bonus for in M force policies.
T%e A9aa 5llian# Invest 6ainB plan:
!a+a+ Allianz "nvest Dain is a specially designed plan that offers unique combinations
of benefits to help you develop a sound financial portfolio for your family. Among the many
unique benefits, the most significant is the family income benefit 3F"!4 that sustains the
"TA#
1/
family by compensating the loss of income due to death or permanent disability. This is one
M stop shop solution that can keep you and you family financially protected at times when
you need it most. "n a financial world where choices can drive you crazy, your search for the
perfect life insurance plan stops here.

Organization Structure
Managing Director
F0 ales Tied F0 ales Alterna
F0' =egions F0 M =egions
!ranch #anagers !ranch #anagers
ales managers ales #anagers
Eife Advisors ales Associates
9orporate Agents,
!rokers, !anc
@nit Einked "nvestment 0lans 3@lip4 ?f !a+a+ Allianz Eife "nsurance

"TA#
1$
9rief 3"planation on 1lip
@nit Mlinked insurance plans 3@E"04 have become something of a range with their
2promise of market'linked returns combined with the dual benefit of insuring your life
form eventualities.
To put it simply, @E"0s attempt to fulfill investment needs of an investor with
protectionIinsurance needs of and insurance seeker. @E"0s work on the premise that
there is class of investors who regularly invest their savings in products like fi,ed
deposits 3-5s4 coupon'bearing bonds, debt funds, diversified equity funds and stocks.
There is another class of individuals who take insurance to provide for their family in
case of and an eventuality. o typically both these categories of individuals 3which also
overlap to a large e,tent4 into into a single product. This saves the investor I insurance'
seeker the hassles of managing and tracking a portfolio of products.
<ovel and noble as it appears investor Iinsurance'seekers rarely understand the cost
implications of the marriage between investment and life insurance. To be sure, it is
intricate and not everyone is able to unravel it. 2@nit M linked products are designed to
put control in the hands of the customer. (hile some customers are comfortable with
this, there are others who require some more e,planation about the features. This is
provided by that are given to customers. #oreover, customers get a benefit illustration,
which clearly illustrates the up'front, investment, and mortality charges that are lived on
the premium, and shows how the monies will grow overtime, under a certain set of
assumptions.
First and foremost, investors need to understand that a @E"0 is a bundled
product of their investments and their investment and their investments insurance
proceeds. o if you have a @E"0 invested in equities, you are e,posing your life
insurance monies as well as your invisible surplus assets get an equity flavors, the same
cannot be said about your life insurance monies as well as your invest able surplus to the
vagaries get and equity flavors, the same cannot be said about your life insurance monies,
which to a large e,tent should be sacred. The want to see is your life insurance monies,
"TA#
11
which to a large e,tent should be sacred. The volatility in equity markets can disturb the
calmest slide in equity markets. 2A @E"0 policy holder has the option to invest in a
variety of funds, depending on his risk profile. "f one does not have the appetite to invest
in equity, they can choose a debt of balanced fund.

8owever, the structure of a @E"0 takes care of quite a bit of the uncertainty in the
markets. "nsurance companies understand the need to give insurance'seekers the
fle,ibility to rethink their investment strategy in view of market histrionics. There is
an option for the insurance Mseekers the fle,ibility to rethink their investment strategy
in view of market histrionics. There is an option for the insurance'seeker to switch to
another plan with a lower of zero equity components to stem the loss in a falling
equity market. 2The switch option allow customers to switch between fund options,
there by making ad+ustments to any perceived risks 2!A*A* AEE"A<N E"F-
"<@=A<9- 2Allows policyholders to make this switch four times a year at no cost,
with =s. $// at every additional switch after that. 8owever, for investors to make the
right switch they need to track markets actively and be well'informed, which is
actually the +ob of the investment advisorIconsultant.
HDFC Standard Life Insurance Company
The company was incorporated on $.
th
August 1/// under the name of 85F9
tandards life "nsurance company Eimited.
?ur ambition from as far back ?ctober $CC: was the first private company to re'
enter the life insurance market in "ndia. ?n the 16ed ?ctober 1///. this ambition was
realized when 85F9 tandard life was the only life company to be granted a certificate
of registration.
85F9 are the main shareholders in 85F9 standard life, with B$..L,while
standard life owns $B.>L. Diven standard lifes e,isting investment in the 85F9 Droup,
this is the ma,imum investment allowed under current regulations.
"TA#
16
85F9 and standard life have a long and close relationship built upon shared
values and trust. The ambition of 85F9 standard life is to mirror the success of the
parent companies and be the yardstick by which all other insurance companys in "ndia
are measured.
9aa 5llian#
!a+a+ Allianz life insurance 9o. Etd. "s a +oint venture between two leading
conglomerates, !a+a+ Auto , one of the biggest 1 and 6 wheeler manufactures in the world
and Allianz AD, one of the worlds largest insurance companies7
!a+a+ Allianz is one of "ndias leading financial institutions, offering complete
financial solutions7 you can invest in one life insurance plan that can take care of all your
changing requirements through out your life. This plan has been designed to provide you
with ma,imum fle,ibility, so that you do not have to worry about your changing needs
!a+a+ Allianz unit gain offers the unique option of combining the protection of life
insurance with attractive prospects of investing in securities. Oou can choose the
investment funds you want to invest your money, securities. Oou can choose the
investment funds you want to invest your money, providing you with an opportunity to
have a direct stake in the performance of the financial markets. Oou also benefit form
attractive ta, advantages and can protect your loved ones against unfortunate events.
Bajaj Aianz ife Insurance
"s the fastest growing private life insurance company in "ndia
9urrently has over .,./,/// satisfied customers
8as a presence in more than ::/ locations with >/,/// "nsurance 9onsultant
providing the finest customer service.
"TA#
1.
August 1//. was =s6A.: crore. =ival !irla un Eife has taken the threat
seriously
:ision:
To be the fist choice insurer for customers.
To be the preferred employer for staff in the insurance industry.
To be the number one insurer for creating shareholder value
Mission:
As a responsible, customer focused leader, we will strive to understand the insurance
needs of the consumer and translate into affordable products that deliver value for money.
The Five funds offered are as under.
3-uity Fund' This fund provides the scope of high appreciation over a long term.
The fund will primarily invest in equities ) is e,pected to match returns given by <-
<"FTO. This fund will invest at least C/L in equities and ma,imum $/L "n cash.
3-uity 6ain Fund C The investment ob+ective of this is to provide capital
appreciation through investment in select equity stocks that have the potential for high
capital appreciation. This fund will invest at least C/L in equities and ma,imum $/L in
debt ) cash instruments.
*ebt Fund C This fund provides the scope for steady returns at low risk though
investment in high quality fi,ed income securities. This fund will be invested fully in
debt instruments.
"TA#
1:
!alanced Fund' the balanced fund is primarily for those who prefer a mi, of steady
returns ) growth. The balanced fund will invest 6/L to :/L in the fund and :/L
toA/Lin the debt fund.
Cas% fund C The cash fund will invest conservatively in money market ) short Mterm
investments to ensure that return on investments shall never be negative. $//L of this
fund will be invested in money market instruments.
9omparative tudy of !a+a+ Allianz Eife Fi,ed 0lan (ith 85F9 @nit Einked Ooungster
0lan (ith !a+a+ Allianz Dain 0lan
0remium #in 0remium
=s.$////
#in 0remium
$////
#in 0remium
=s.$////
#ode ?f 0ayments Puarterly, 8alf
Oearly, Oearly
#onthly, Puarterly,
8alf Oearly, Oearly
Puarterly, 8alf
Oearly, Oearly
0ayment ?f
0remium
"n 9ash ,Eocal
9heque,tanding
"nstruction ?f
-lectronic 9learing
ystem3-cs Facility
"s Eimited "n 9ities4
"n 9ash, Eocal
9heque, 5d,
tanding "nstruction
?f -lectronic
9learing ystem
3-cs Facility "s
Eimited "n 9ities4
"n 9ash, Eocal
9heque, 5d
tanding "nstruction
?f -lectronic
9learing ystem
um Assured They 9an 9hoose
!y There ?wn
#inimum ?f :
Times ?f Annual
0remium
#inimum ?f :
Times And
#a,imum ?f 1/
Times ?f Annual
0remium.
!enefit
5eath !enefit The !eneficiary
(ould =eceive a1
8igher ?f The um
Assured Eess Any
Dreater ?f Oour
um Assured 3Eess
"TA#
0articular =s Jotak Eife
"nsurance
!a+a+ Allianz 85F9 tandard
1>
0lus The #arker
Falue ?f The @nits,
Eess @npaid 01
0remium.
(ithdrawals ?f The
!id 0rice. "f The
Age ?f The unsure
0erson "s Eess That
A ?r Above A/ Then
!id 0rice ?f @nits
0aid
Any (ithdrawals
Oou 8ave #ade4 ?f
Total Fund Falue
To Oour Family.
And 0olicy
Terminates
9ritical "llness
!enefit
?n The First
?ccurrence ?f
9ritical "llness
5uring The Term
?f The 0lan, Oou
(ould =eceive The
=ider !enefit
Amount.
30ending4 Dreater ?f Oour
um Assured 3Eess
Any (ithdrawals
Oou 8ave #ade4?r
Total Fund Falue
To Oour Family .
And 0olicy
Terminates
9ash (ithdrawal
?ption
Any Time After The
0ayment ?f 6 Full
Oears 0remium Oou
#ay (ithdraw
0artial ?f 9omplete
urrender ?f @nits.
"n 9ase ?f 0artial
Any Time After The
0ayment ?f 6 Full
Oears 0remium Oou
#ay (ithdraw
0artial ?f 9omplete
urrender ?f @nits.
"n 9ase ?f 0artial
(ithdrawal
#inimum !alance
?f =s. $///// 3At
!id 0iece 4Across
All Funds #ust !e
#aintained And
The #inimum
Amount (ithdrawal
Amount =s.$/////
Allowed At Any
Time ub+ect To
#inimum Amount
"s =s.$/////.After
The (ithdrawal,
The Fund Eess Any
5ue 9harges
-,ceeds !oth =s.
$:/// And The
urrender 9harges
"n Force At The
Time ?f
(ithdrawal 31:L4
"nvestment ?ptions
#oney #arket Fund
Floating =ate Fund
Dilt Fund !ond
Fund !alanced
Fund Drowth Fund
-quity Fund -quity
Dain Fund -quity
#adcap Fund 5ebt
Fund 9ash Fund
Eiquidity Fund
ecure #anaged
Fund 5efensive
#anaged Fund
!alance #anaged
Fund Drowth Fund
=eturn Above 1/L $B'1/L $:'1/L
#a,. Age A: A/ $:'1/L
"TA#
1A
9harges /.>L $.1:L /.B/L
+T5T3M30T OF T43 !.O9)3M

"n the present key competitive business world the !a+a+ Allianz witnessed
significant development. The growing urbanization in the country providing huge
development of the !a+a+ allianz influences the business of the motor vehicle insurance. Eife
insurance etc. the !a+a+ allianz life insurance company possesses certain features like control
of so financial manager must be vary collations in designing financial position. To discharge
the complicated duties, The financial manager must know how the said problems affect the
profitability of insurance company how are the profits to be managed these questions call for
a scientific e,aminations
"TA#
1B
O9>3CTI:3+
To analyses the financial performance of !a+a+ Allianz AD insurance
company Etd, for year 1//1'1//A
To analyses the financial performance of unit linked policy of !a+a+ Allianz AD
1//1'1//A.
To analyses various funds operated by !a+a+ Allianz under @lips policy.
To analyses the profitability. 1//1'1//A.
To analyses the economic growth achievement of BA!A! ALLIA"#$
"TA#
1C
.3+35.C4 M3T4O*O)O62
The study conducted is based upon information obtained from different companies of
the industry and it is annual reports which were published by the companies.
The data collection is two types.
5ata collected by interviewing chief accounts officer.
5ata collected from financial statements books, reports ) company branches.
"TA#
6/
)IMIT5TIO0+
This study is confirmed to !a+a+ Allianz 9ompany only.
This study is confirmed to that to @lips policies only.
The comparison is researched is difficult because of differences in situations of
e,isting competitor companies.
"t is difficult to frame the position of entire structure due to the non availability of
e,isting competitors information e,actly.
"TA#
6$
+CO!3 OF T43 +T1*2
This study attempts to analyses the financial performance of !a+a+ Allianz, for the
past . years. Financial performance has been analysis by comparing all types of funds in
!a+a+ Allianz. This study has been confined to !a+a+ Allianz unit linked policy only.
"TA#
61
*ate 5nalysis Interpretation
9urrent =atio
Table.1
Oear 9urrent Assets3=s.4 9urrent Eiabilities3=s.4 =atio
1//1'1//6 .6/1A.11 16>AB.>1 $.B1
1//6'1//. 6CA.$AB/ 1$A1./1/ $.B6
1//.'1//: 6A6B$1B: $:1>.B>6 1..:
1//:'1//> 6/$6B1$6 $6/A$16: 1.6$
1//>'1//A 1BA61/:$ $1:A6$>/ 1.1C
+ource: 5nnual .eports
6rap%D1
+ource: Table'1
Interpretation:
The current ratio of the firm for the : years is shown in the above table and graph.
The ratio was ranging from $.B1 to 1..:. so the firm was maintaining required current
"TA#
66
0
0.5
1
1.5
2
2.5
C
u
r
r
e
n
t

%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
&ear
'rends Of Current %atio
assets for its current liabilities. From the years 1//.to 1//Athe ratio was above the
standard norm i.e., 1;$.
Euic@ .atio:
Table'2
Oear
Puick Assets 3=s.4
39urrent assets'"nventory4 9urrent liabilities 3=s.4 =atio
1//1'1//6 $A/:6$:> 16>AB.>1 /.A1
1//6'1//. $A.61.6B 1$A1./1/ /.B/
1//.'1//: $A6//6>6 $:1>.B>6 $.$6
1//:'1//> $$6$CB// $6/A$16: /.BA
1//>'1//A $/C$A$>/ $1:A6$>/ /.BA
+ource: 5nnual .eports
Draph.1
+ource: Table'2
Interpretation:
The above table and graph shows the quick ratio of the firm for five years from
1//6'1//A the ratio was ranging from /.A1 to $.$6. The firm was maintaining quick ratio
nearer to the standard norm i.e., $;$. "n the year 1//: the ratio was above the standard
norm this is due to decrease in current liabilities.
5bsolute Euic@ .atio:
Table'(
Oear
9ash K#arketable
ecurities3=s.4
9urrent
Eiabilities3=s.4 =atio
1//1'1//6 $/$.$1. K A/$:// 16>AB.>1 /./A
1//6'1//. .CA:CB K A/$:// 1$A1./1/ /./>
"TA#
6.
0
0.2
0.4
0.6
0.8
1
1.2
(
u
i
c
)

%
a
t
i
o
1//1'/6 1//6'/. 2004-05 1//:'/> 1//>'/A
&ear
'rends Of (uic) %atio
1//.'1//: ..6:B$ K A/$:// $:1>.B>6 /./B
1//:'1//> ..6AA: K A/$:// $6/A$16: /./C
1//>'1//A ..66B: K A/$:// $1:A6$>/ /./C
+ource: 5nnual .eports
6rap%.(
+ource: Table'(
Interpretation:
The cash ratio for : years from 1//1to 1//>was in the above table and
graph. The ratio was low in all years of the study. The ratio was ranging from /./> to
/./C, which is very low when compared with the standard norm i.e., $;1 or /.:;$.
Inventory Measure
Table',
Oear
9urrent Assets ' "nventory
3Puick Assets43=s.4
Average 5aily -,penses
3?p.-,p'5ep4 5ays
1//1'1//6 $A/:6$:> $$1C$: $:$
1//6'1//. $A.61.6B >.$A. 1A1
1//.'1//:' $A6//6>6 >.>6$ 1>B
1//:'1//> $$6$CB// >A.1> $>B
1//>'1//A $/C$A$>/ $..>1B A>
"TA#
6:
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
C
a
s
*

%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
&ear
'rends of Cas* %atio
+ource: 5nnual .eports
6rap%.,

'rends Of In+etory Measures
0
50
100
150
200
250
300
2002-
2003
2003-
2004
2004-
2005-
2005-
2006
2006-
2007
Days
+ource: Table ',
Interpretation:
The table and graph shows the interval measure 3i.e., the firms ability to meet its
daily operations if it does not receive any cash4 of the firm for : years. "t was ranging
from A> days to 1A1 days. The ratio was in decreasing trend since 1//: this is due to
increase in average daily e,penses.
*ebt 3-uity .atio
Table'/
Oear Eong Term Eiabilities3=s.4 hare 8olders Funds3=s.4 =atio
1//1'1//6 $6666$111 1.1/BC61 :.:$
1//6'1//. $6>:1>:C> :666A/A 1:.>/
1//.'1//: $.:C>6:C: '$.C/:1>1 'C.B/
1//:'1//> $6B1A.C1$ '6:/1BBB> '6.C:
1//>'1//A $.$C>>.A. ':ABACB.1 '1.:/
"TA#
6>
+ource: 5nnual .eports
6rap%:/
+ource: Table'/
Interpretation:
The debt equity ratio of the firm was showed in the above table and
graph. The ratio was :.:$ and 1:.>/ in the years 1//1and 1//6 respectively, later it was
gone to negatives figures because the shareholders funds went to negatives due to huge
losses since 1//:.
!roprietary .atio
Table';
Oear
-quity hare 8olders
Funds3=s.4
Total Tangible
Assets3=s4 =atio
1//1'1//6 1.1/BC61 $6$B1BA16 /.$B
1//6'1//. :666A/A $1/$1A.C6 /./.
1//.'1//: '$.C/:1>1 $/B>B>BAC '/.$.
1//:'1//> '6:/1BBB> C16>6>BA '/.6B
1//>'1//A ':ABACB.1 B$BAA./A '/.A$
"TA#
'rends Of De,t -.uity %atio
-15
-10
-5
0
5
10
15
20
25
30
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Ratio
6A

+ource: 5nnual .eports
6rap%:;
+ource: Table';
Interpretation:
The proprietary ratio is shown in the above table and graph for the period of the
study. The ratio was /.$B and /./. in the years 1//6 and 1//.respectively, later it gone to
negative figures, because the equity shareholders are not having any funds belonging to
them.
Capital 6earing .atio:
Table'F
Oear
Funds !earing Fi,ed
"nterest ) 5ividend3=s.4
-quity hareholders
Funds3=s. =atio
1//1'1//6 $6666$111 1.1/BC61 :.:/A:11
1//6'1//. $6>:1>:C> :666A/A 1:.:C>C.
1//.'1//: $.:C>6:C: '$.C/:1>1 'C.AC1A>
1//:'1//> $6B1A.C1$ '6:/1BBB> '6.C.A.:
1//>'1//A $.$C>>.A. ':ABACB.1 '1..:1AB
"TA#
'rends Of /roprietary %atio
-0.8
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
year
%
a
t
i
o
Ratio
6B
+ource: 5nnual .eports
6rap%:F

+ource: Table'F
Interpretation:
The capital gearing ratio of the firm was shown in the above table and graph. The
ratio was :.: and 1:.: in the years 1//6 and 1//. respectively, later it was gone into
negatives figures due to there are no funds are belonging to equity shareholders, due to
huge losses since 1//:
Fi"ed 5ssets .atio:
Table'?
Oear Fi,ed Assets 9apital -mployed =atio
1//1'1//6 BBB/$6/$ $1:CCAA>B /.A$
1//6'1//. B/6B:A$6 $$/BB$>$B /.A6
1//.'1//: A$6/::C. $//>$/:/1 /.A$
"TA#
6C
-10
-5
0
5
10
15
20
25
30
C
a
p
i
t
a

0
e
a
r
i
n
g
%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
year
'rends of Capita 0earing %atio
1//:'1//> >111:.A. A66/::C1 /.B:
1//>'1//A :6/.:6:> :.>:6::B /.CA
+ource: 5nnual .eports
6rap%:?

+ource: Table '?
Interpretation:
The fi,ed assets ratio of firm for : years is shown in the above table and graph.
The ratio was ranging from /.A$ to /.CA. "t was increasing from 1//: but it less than $, so
the firm was raising adequate long'term funds to meet the fi,ed assets requirements.
*ebt .atio
Table'G
Oear Total 5ebt3=s.4 9apital -mployed3=s.4 =atio
1//1'1//6 $6666$111 $1:CCAA>B $./:B1/6
1//6'1//. $6>:1>:C> $$/BB$>$B $.16$1B6
1//.'1//: $.:C>6:C: $//>$/:/1 $..:/AAC
1//:'1//> $6B1A.C1$ A66/::C1 $.BB>1B$
1//>'1//A $.$C>>.A. :.>:6::B 1.:CA:A$
"TA#
./
0
0.2
0.4
0.6
0.8
1

F
i
1
e
d

A
s
s
e
t
s
%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
&ear
'rends of Fi1ed Assets %atio
?@=9-; A<<@AE =-0?=T
Drapg;C
+ource: Table 'G
Interpretation:
The debt ratio for : years is shown in the above table and graph. The ratio was
increasing in trend7 it shows that the portion of debt in the capital structure was
increasing. o debt portion is more than the equity.
Inventory Turnover .atio
Table'1=
Oear 9ost ?f Doods old3=s.4 Average tock3=s.4 =atio
1//1'1//6 BBA6:.>> B6A>.B $/>
1//6'1//. ./.6$B:: $:/>61 1>B
1//.'1//: 6>B66/CB $B$>AA 1/6
1//:'1//> $../1/.B $C>1B> A6
1//>'1//A C:.$>:1 B:6/> $$1

+ource: 5nnual .eports

"TA#
.$
0
0.5
1
1.5
2
2.5
3
D
e
,
t

%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
Year
'rends Of De,t %atio
+ource: Table '1=
Interpretation:
"nventory turnover ratio is calculated and shown in the above table and graph for
: years. "t was high in the year 1//6 31>B times4 and low in the year 1//: 3A6 times4. "t
shows that the firms inability to convert the stock into sales.
$or@ing Capital Turnover .atio
Table'11
Oear ales3=s.4 (orking 9apital3=s.4 =atio
1//1'1//6 BC:B$A.> $C6.BC>/ ..>6
1//6'1//. :6C..CA6 $B/$AA>/ 1.CC
1//.'1//: .C1$C>.B 11$$>.11 1.16
1//:'1//> $B1A1>6: $A/>>CAB $./A
1//>'1//A $16:6.:/ $>$:BBC$ /.A>
+ource: 5nnual .eports
6rap%D11
"TA#
'rends Of In+entory 'urno+er %atio
0
50
100
150
200
250
300
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Ratio
.1
+ource: Table '11
Interpretation:
The working capital turnover ratio is the firm for : years is shown in the above
table and graph. The ratio was decreasing in trend, it was ..>6 in the year 1//6 and /.A>
in the year1//A, it shows that the firms inefficient utilization of working capital
Fi"ed 5ssets Turnover .atio
Table'12
year <et ales3=s.4 Fi,ed Assets3=s.4 =atio
1//1'1//6 BC:B$A.> BBB/$6/$ $./$
1//6'1//. :6C..CA6 B/6B:A$6 /.>A
1//.'1//: .C1$C>.B A$6/::C. /.>C
1//:'1//> $B1A1>6: >111:.A. /.1C
1//>'1//A $16:6.:/ :6/.:6:> /.16
+ource: 5nnual .eports
6rap%: 12
"TA#
0
1
2
3
4
5
2
o
r
)
i
n
g
C
a
p
i
t
a

2002-03 2003-04 2004-05 2005-06 2006-07

&ear
'rends Of 2or)ing Capita 'urno+er %atio
.6
0
0.2
0.4
0.6
0.8
1
1.2
'
u
r
n
o
+
e
r
%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
&ear
'rends of Fi1ed Assets 'urno+er %atio
+ource: Table '12
Interpretation:
The above table and graph shows the fi,ed assets turnover ratio of the firm during
the period of the study. The ratio was in decreasing trend. "t was $./$ in the year 1//6
and /.16 in the year 1//A. "t shows that the firm is under utilizing the fi,ed assets in
generating output
*ebtors Turnover .atio
Table'1(
Oear
ales3=s.4
Q9reditR 5ebtors3=s.4 =atio
1//1'1//6 BC:B$A.> $>/6C/61 :.:C
1//6'1//. :6C..CA6 $>C6.B./ 6.$C
1//.'1//: .C1$C>.B $>B:>AB1 1.C1
1//:'1//> $B1A1>6: $/BA>/1: $.>B
1//>'1//A $16:6.:/ $/.A6AA: $.$B
+ource: 5nnual .eports
6rap%:1(
"TA#
..

+ource: Table '1(
Interpretation:
The debtors turnover ratio for the period of the study is shown in the above table
and graph. "t shows a decreasing trend. "t was :.:C in the year 1//6and $.$B in the year
1//A."t shows that firms inefficient management of debtors.
*ebtors Collection !eriod
Table'1,
Oear
<?; ?f (orking 5ays in a
Oear 5ebtors Turnover =atio 5ays
1//1'1//6 6>/ :.:C >.
1//6'1//. 6>/ 6.$C $$6
1//.'1//: 6>/ 1.C1 $16
1//:'1//> 6>/ $.>B 1$.
1//>'1//A 6>/ $.$B 6/:

+ource: 5nnual .eports
"TA#
'rends Of De,tors 'urno+er %atio
0
1
2
3
4
5
6
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Ratio
.:

Draph; $.

+ource: Table '1,
Interpretation:
The above table and graph e,hibits the debtors collection period for the period of
the study. The ratio is in increasing trend, it was >. days in the year 1//6 and 6/: days in
the year1//A. "t shows that the firm was failed to collect dues from the debtors
Creditors Turnover .atio:
Table'1/
Oear
0urchases3=s.4
3credit4 9reditors3=s.4 =atio
1//$'1//1 1C1.AA./ 111C./6A $.6$
1//1'1//6 $>B/A.1: 1//A>CCC /.B.
1//6'1//. $>..CC11 $6:/$:6> $.11
1//.'1//: :6.A66$ $/CAB6AA /..C
1//:'1//> $A$$1.C $/.B/6/1 /.$>

"TA#
'rends of De,tors Coection /eriod
3Days4
0
50
100
150
200
250
300
350
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Days
.>
+ource: 5nnual .eports
6rap%:1/


+ource: Table '1/
Interpretation:
9reditors turnover ratio of the firm was shown in the above table and graph for
the period of study. The ratio was in decreasing trend, it was $.6$ in the year 1//6 and
/.$> in the year 1//A. "t shows that the firm was taking more time to pay due amount.
Creditors !ayment !eriod
Table'1;
Oear
<o; of (orking 5ays in a
Oear
9reditors Turnover
=atio 5ays
1//1'1//6 6>/ $.6$ 1A.
1//6'1//. 6>/ /.B. .1C
1//.'1//: 6>/ $.11 1C:
1//:'1//> 6>/ /..C $1:1
1//>'1//A 6>/ /.$> 11:/
+ource: 5nnual .eports

"TA#
'rends Of Creditors 'urno+er %atio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2001-
2002
2002-
2003
2003-
2004
2004-
2005
2005-
2006
Ratio
.A

Creditors /ayment /eriod
0
500
1000
1500
2000
2500
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Days

+ource: Table '1;
Interpretation:
The creditors payment period for the period of study are shown in the above table
and also represented graphically. The ratio shows an increasing trend, it was 1A. days in
the year 1//6 and 11:/ days in the year 1//A. "t means that the firm was taking more
time to pay due amount.
Capital 3mployed .atio
Table'1F
Oear ales3=s.4 9apital -mployed =atio
1//1'1//6 BC:B$A.> $1:CCAA>B /.A$
1//6'1//. :6C..CA6 $$/BB$>$B /..B
1//.'1//: .C1$C>.B $//>$/:/1 /..B
1//:'1//> $B1A1>6: A66/::C1 /.1.
1//>'1//A $16:6.:/ :.>:6::B /.11

+ource: 5nnual .eports
"TA#
.B
Draph;$A


+ource: Table '1F
Interpretation;
9apital employed ratio of the firm for : years are shown in the above table and
graph. "t was decreasing in trend during period of the study. "t is /.A$ in the year 1//6
and /.11 in the year1//A. it shows that the firm is not able to generate more profits.
6ross !rofit .atio
Table'1?
year Dross 0rofit3=s.4 ales3=s.4 =atio
1//1'1//6 B.>1B/ BC:B$A.> /.C.
1//6'1//. $6:$6$$B :6C..CA6 1:./:
1//.'1//: $16B>::/ .C1$C>.B 1:.$A
1//:'1//> 6BA/:BA $B1A1>6: 1$.$B
1//>'1//A 1B$$ACB $16:6.:/ 11.A>
+ource: 5nnual .eports
"TA#
'rends Of Captia -mpoyed %atio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Ratio
.C
6rap%:1?

+ource: Table '1?
Interpretation:
The gross profit ratio of the company was in the above table and graph
for the period of study. "n the year 1//6 it was /.C.L on sales later it was more then 1/L
of sales due to less cost of goods sold. 8ighest in the year 1//: was 1:.$AL on sales.
Operating !rofit .atio
Table'1G
Oear ?perating 0rofit3=s.4 ales3=s.4 =atio3=s.4
1//1'1//6 '1AA1>$/A BC:B$A.> '6/.C:
1//6'1//. '.:$>.:> :6C..CA6 'B.6A
1//.'1//: '>BA.$:: .C1$C>.B '$6.C>
1//:'1//> '$>>1>1B: $B1A1>6: 'C/.CC
1//>'1//A '$/$C:6:6 $16:6.:/ 'B1.:6

+ource: 5nnual .eports
6rap%:1G
"TA#
'rends Of 0ross /rofit %atio
0
5
10
15
20
25
30
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Ratio
:/


+ource: Table '1G
Interpretation:
?perating profit of the firm for : years is e,hibited in the above table and
graph. The ratio for period of study was always shows a negative figure, this is due to
high operating e,penses incurred by firm.
Operating 3"penses .atio
Table'2=
Oear ?perating -,penses3=s.4 ales3=s.4 =atio
1//1'1//6 1B:A16BA BC:B$A.> 6$.BC
1//6'1//. $B/1C:A. :6C..CA6 66..1
1//.'1//: $C1>/A/: .C1$C>.B 6C.$6
1//:'1//> 1/.C>BA1 $B1A1>6: $$1.$A
1//>'1//A $6//A$:$ $16:6.:/ $/:.1C

"TA#
'rends Operation /rofit %atio
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
Ratio(Rs.)
:$
+ource: 5nnual .eports
6rap%: 2=
+ource: Table '2=
Interpretation:
The above table and graph shows the operating e,penses ratio of the firm for :
years. The ratio was in increasing trend, it was 6$.BC L on sales in the year 1//6 and
$/:.1CL on sales in the year 1//A. it means that the firm incurring operating e,penses
more than the sales.
Operating .atio
Table'21
Oear 9ost ?f Doods oldK?perating -,penses3=s.4 ales3=s.4 =atio
1//1'1//6 BBA6:.>> K 1B:A16BA BC:B$A.> $6/.C:
1//6'1//. ./.6$B:: K $B/1C:A. :6C..CA6 $/B.6A
1//.'1//: 6>B66/CB K $C1>/A/: .C1$C>.B $$6.C>
1//:'1//> $../1/.B K 1/.C>BA1 $B1A1>6: $C/.CC
1//>'1//A C:.$>::1 K $6//A$:$ $16:6.:/ $B1.:6
+ource: 5nnual .eports
"TA#
:1
0
20
40
60
80
100
120
O
/
-
%
A
'
I
"
0
-
5
/
-
"
S
-
S

%
A
'
I
O
2002-03 2003-04 2004-05 2005-06 2006-07
&ear
'rends Of Operating -1penses %atio
6rap%:21
+ource: Table '21
Interpretation:
The operating ratio of the firm was shown in the above table and graph. The
ratio was more than $//L of sales, so the firm is not getting any margin on the sales. "t
$6/.C:L on sales in the year 1//6 and $B1.:6L on sales in the year 1//A.
0on'Operating Income .atio
Table'22
Oear
<on'?perating
-,penses3=s.4 ales3=s.4 =atio
1//1'1//6 $>$.C>C BC:B$A.> $.B
1//6'1//. ' :6C..CA6 '
1//.'1//: >1.B./ .C1$C>.B $.1A
1//:'1//> C.1:>6/ $B1A1>6: :$.:B
1//>'1//A 16$6A1 $16:6.:/ $.BA
"TA#
:6
0
50
100
150
200
O
p
e
r
a
t
i
n
g

%
a
t
i
o
2002-03 2003-04 2004-05 2005-06 2006-07
&ear
Trends Of Operating.atio
+ource: 5nnual .eports
6rap%:22
+ource: Table '22
Interpretation:
The non'operating income of the firm is shown in the above table and
graph. The ratio was normal in all years of the study e,cept in the year 1//> it was
:$.:BL on sales.
0et !rofit .atio H!rofit after Ta"I
Table'2(
year
<et 0rofit3=s.4
Q0ATR ales3=s.4 =atio
1//1'1//6 '.>C>B.C> BC:B$A.> ':1..6
1//6'1//. '$BAB.A6$ :6C..CA6 '6..B1
1//.'1//: '$C66:BAA .C1$C>.B '6C.1B
1//:'1//> '1//:A1:$ $B1A1>6: '$/C.AA
1//>'1//A '11B/1A1B $16:6.:/ '$B..:C
+ource: 5nnual .eports
6rap%:2(
"TA#
:.
0
10
20
30
40
50
60
"
O
"
6
O
/
-
%
A
'
I
"
0
I
"
C
O
M
-

%
A
'
I
O

2002-03 2003-04 2004-05 2005-06 2006-07
&ear
'rends Of "on6Operating Income %atio
-
200
-
150
-
100
-50
0

"
-
'

/
%
O
F
I
'

%
A
'
I
O
2002-03 2003-04 2004-05 2005-06 2006-07
&-A%
'rends Of "et /rofit %atio

+ource: Table '2(
Interpretation:
The net profit of the firm for : years is shown in the above table and graph. The
firm is not getting any profit after ta, during the period of the study due high e,penses.
Finds 5nalysis:
$. -quity plus pension fund
1. -quity mid cap fund
6. !alanced plus pension fund
.. -quity premium fund.
5nalysis:
3-uity plus pension fund
#onths <AF 38igh4 =s. <AF3low4 =s.
April 1//>. $6..: $1.A:
#ay 1//> $..1: $6.1/
*une1//> $:.// $..$1
*uly 1//> $:.1: $6.1:
August 1//> $:.A: $6.:/
eptember 1//> $:.B/ $..:/
?ctober 1//> $>.1: $..6:
<ovember 1//> $>.B: $:.1:
5ecember 1//> $A.1/ $..:/
*anuary 1//A $B.// $>.1:
February 1//A $B.1: $>.:/
#arch 1//A $B.A: $A.1:
"TA#
::
-.uity /us /ension Fund For '*e
&ear 788968:
0
2
4
6
8
10
12
14
16
18
20
A
p
r
i
l

2
0
0
6
.
J
u

-
0
6
A
u
!
-
0
6
"
#
t
-
0
6
D
e
#
-
0
6
$
e
%
-
0
7
&A' ((i!))
Rs.
&A'(lo*) Rs.
+ou
rce: 3-uity !lus !ension Fund
Interpretation:
The above graph e,plained the <AF of equity plus pension fund was amount at
$/I' the month of *anuary 1//> !ut the end of the year it has raised to $AI'.
imilarly the year 1//A *an it was at $BI' however at the end of the year it has
included in 1.I'
This shows transfer performance equity premium fund and there was $//L
growth rate in the value of <AF in the year 1//Acompare to the <AF had provide a
value of return to all ulips investor.
"TA#
:>
3-uity mid Cap Fund
#onths <AF 38igh4 =s. <AF3low4 =s.
April 1//>. $/.: B.:
#ay 1//> $$.1 C..
*une1//> $1.> C.A
*uly 1//> $$.A B..
August 1//> $1.A C.:
eptember 1//> $..A C.:
?ctober 1//> $6.> C..
<ovember 1//> $6.> C.:
5ecember 1//> $..A C.>
*anuary 1//A $1.A C.>
February 1//A $..> B.C
#arch 1//A $6.C C.>
"TA#
:A
-.uity Mid Cap Fund For &ear 788968:
0
2
4
6
8
10
12
14
16
A
p
r
i
l

2
0
0
6
.
J
u

-
0
6
A
u
!
-
0
6
"
#
t
-
0
6
D
e
#
-
0
6
$
e
%
-
0
7
&A' ((i!))
Rs.
&A'(lo*) Rs.
Interpretation:
The above graph e,plained the <AF of equity plus pension fund was amount at
$1.A the month of *anuary 1//> but the end of the year it has raised to $/.:.
imilarly the year 1//> Feb it was at$6.>.
This shows transfer performance -quity mid cap fund and there was $//L growth
rate in the value of <AF in the year 1//> compare to the <AF had provide a value of
return to all ulips investor.
9alanced !lus !remium Fund
#onths <AF 38igh4 =s. <AF3low4 =s.
April 1//> $1.A C.>
#ay 1//> $6.> $/.>
*une1//> $..C $1.>
*uly 1//> $6.1 $/.C
August 1//> $6.C C.C
eptember 1//> $1.C B.>
?ctober 1//> $6.> $/..
<ovember 1//> $1.> C.$
5ecember 1//> $..A $/.>
*anuary 1//A $6.C $1.>
February 1//A $..C $$.C
#arch 1//A $6.> $/.A
"TA#
:B
Baanced /us /remium Fund &ear
788968:
0
2
4
6
8
10
12
14
16
A
p
r
-
0
6
J
u

-
0
6
A
u
!
-
0
6
"
#
t
-
0
6
D
e
#
-
0
6
$
e
%
-
0
7
&A' ((i!))
Rs.
&A'(lo*) Rs.
Interpretation:
The above graph e,plained than the <AF of equity plus pension fund was amount
at $1.A the month of *anuary 1//: but the end of the year it has raised to $..C
imilarly the year 1//> *an it was at $6.C however at the end of the year it has
included in $6.>This shows transfer performance equity premium fund and there was
$//L growth rate in the value of <AF in the year 1//> compare to the <AF had
provide a value of return to all ulips investor.
Cas% !lus !ension !remium Fund
#onths <AF 38igh4 =s. <AF3low4 =s.
April 1//> $1.A C.>
#ay 1//> $..> $/.>
*une1//> $6.C C.A
*uly 1//> $..$ $/.C
August 1//> $6.C $1./
eptember 1//> $..$ $$.A
?ctober 1//> $6.A $/.>
<ovember 1//> $6.C $$.A
5ecember 1//> $..A $/.C
*anuary 1//A $6.B $/.C
February 1//A $6.C $$.A
#arch 1//A $..A $1.C
"TA#
:C
Baanced /us /remium Fund &ear
788968:
0
2
4
6
8
10
12
14
16
A
p
r
-
0
6
J
u

-
0
6
A
u
!
-
0
6
"
#
t
-
0
6
D
e
#
-
0
6
$
e
%
-
0
7
&A' ((i!))
Rs.
&A'(lo*) Rs.
Interpretation:
The above graph e,plained than the <AF of equity plus pension fund was amount
at $1.Athe month of *anuary 1//: !ut the end of the year it has raised to $6.C
imilarly the year 1//> *an it was at $6.BI' however at the end of the year it has
included in $..A'
This shows transfer performance equity premium fund and there was $//L
growth rate in the value of <AF in the year 1//> compare to the <AF had provide a
value of return to all ulips investor.
Findings
After proper analysis of the financial position of the !a+a+ Allianz "nsurance
9ompany Etd with the help of financial analysis tools, the following findings are found
during the analysis.
The company was getting the operating loss for the present 1//1'
1//Ayears.
"t is found that the company getting good percentage of gross profit on
sales. This is due to less cost of goods sold.
"TA#
>/
The operating e,penses were very high in the years 1//.'/: to
1//>'/A in proportion to sales.
"t is found that the debtors turnover is decreasing since last five years7 it
will affect the working capital structure of the company.
"t is found that for collecting debts from debtors was taking more time, so
the company is failed to collect dues from the debtors,
The creditors turnover is very low7 it means that the company is filed to
pay the credit amount to the creditors with in the stipulated time allotted
by creditors. This will result in high interest charges, which adversely
affect the profitability.
The quick ratio of firm was up to standard in the year 1//: in remaining
years the firm was not maintaining quick assets to meet current liabilities.
The current ratio of the company was good, it possess 1 rupees of amount
for every $ rupee of debt.
The outsiders funds are more than the equity shareholders funds in the
firm. From 1//.'/: to 1//>'/A the equity shareholders are not having any
funds belonging to them, 5ue to huge losses.
The firm has raised adequate long'term funds to meet the fi,ed assets.
2-quity plus pension fund2s <AF was =s. $$ in the year 1//:, but the current
<AF is stands at =s. $A. (hich shows the e,cellent performance of the
company.
+uggestion
After proper analysis of the financial position of the company and
according to the findings found in the analysis, the following are some the suggestions
recommended to the company for better performance.
"t is suggested to increase the gross profit by putting efforts to reduce cost of
production or increase the sales volume of the company.
"TA#
>$
"t is suggested to take measures for collecting dues from the debtors, by
allowing discounts.
"t is suggested to pay the dues to the creditors as earlier as possible, because
delay will incurs more interest charges.
"t is suggested to reduce the unnecessary administration e,penses in the
company, because it affects the profitability.
The company should improve its profitability position by making more number
of @E"0s and by inventory in the potential industries which provides good
returns in the investment.
The company should improve it market share by introducing variety of @E"0s
and by providing goods returns of the innovators.
The company should reduce the handling charges to have the alteration of all
the @E"0s innovator.
The company should try to maintain or return and increase their customers by
providing more goods no. of policies which leads to higher market share.
9ibliograp%y
A !ooks =eferred
$. *ain and Jhan, Financial #anagement .
th
edition, ultan 9hand and
9ompany Eimited, Agra 1//.
1. Jothari 9.=, =esearch #ethodology, (illy -astern company
Eimited, Jolkotta 1//1
"TA#
>1
6. Jrishnaswamy ?.=, #ethodology of =esearch in ocial ciences,
8imalaya 0ublishing 8ouse, #umbai $CC6
.. 0rasanna 9handra, Financial #anagement, Tata #cDraw 8ill
9ompany Eimited, 5elhi 1//.
!. 0eriodicals I *ournals I =eports =eferred
$. 9ompanys Annual =eport
1. !usiness Today
6 -conomic Times
. *ournal of Finance
: !usiness tandard
5. Eibraries 9onsulted
$. reenivasa "nstitute of Technology and #anagement Eibrary,
9hittoor.
TAT-#-<T 8?("<D 9?#0A="T"F- !AEA<9- 8--T F?= T8- O-A=
1//: A<5 1//>
+AR,-./0AR1 1.(2D/02 2005 2006 .(A&32 -& Rs .(A&32 -& 4
1"/R.21 "$ $/&D1
1.1(AR2 .A+-,A0 $/&D15
a. 26/-,Y 1(AR2 .A+-,A0 A 55351000 55351000 0 0
"TA#
>6
%.R212R'21 7 1/R+0/1 8 -70256262 -90379886 -20123624 28.64
2.0"A& $/&D15
a. 12./R2D 0"A&1 . 116789519 120469891 3680372 3.15
%. /&12./R2D 0"A&1 D 29174076 17805030 -11369046 -38.95
,",A0 1 A&D 2 131058333 103246035 -27812298 -21.22
A++0-.A,-"& "$ $/&D1
1.$-92D A112,15
a. 3R"11 80".: 2 128744087 128744087 0 0
(--) D2+R2.-A,-"& 57438493 66518612 9080119 15.81
&2, 80".: 71305594 62225475 -9080119 -12.73
%. AD'A&.21 ," .A+-,A0 ;"R:1 0 0 0 0
2.-&'21,<2&,1 $ 701500 701500 0 0
3.(-)./RR2&, A112,1=0"A& 3 52228447 44161444 -8067003 -15.45
(--)./RR2&, 0-A8-0-,-21 7 +R ( 23625039 33782827 10157788 42.99
&2, ./RR2&, A112,1 (----) 28603408 10378617 -18224791 -63.72
4.<-1.200A&2"/1 29+2&D- - 30447831 29940443 -507388 -1.67
&",21 "& A.."/&, < 0 0 0 0
,",A0 1 ," 4 131058333 103246035 -27812298 -21.22
+O1.C3: 50015) .3!O.T+
"n the above statement the over all performance of the firm was decreased in 1//>
when compared to 1//:
"n sources of funds the secured loans are increased by 6.$:L in 1//> when
compared to 1//:
9urrent assets are decreased by $:...L. net block of fi,ed assets are decreased
by $1.A6L.
TAT-#-<T 8?("<D 9?#0A="T"F- !AEA<9- 8--T F?= T8- O-A=
1//> A<5 1//A
+AR,-./0AR1 1.(2D/02 2006 2007
.(A&32 -&
Rs
.(A&32 -& 4
1"/R.21 "$ $/&D1
1.1(AR2 .A+-,A0 $/&D15
a. 26/-,Y 1(AR2 .A+-,A0 A 55351000 55351000 0 0
%.R212R'21 7 1/R+0/1 8 -90379886 -113230842 -22850956 25.28
2.0"A& $/&D15
a. 12./R2D 0"A&1 . 120469891 124412166 3942275 3.27
%. /&12./R2D 0"A&1 D 17805030 17554308 -250722 -1.41
,",A0 1 A&D 2 103246035 84086632 -19159403 -18.56
"TA#
>.
A++0-.A,-"& "$ $/&D1
1.$-92D A112,15
a. 3R"11 80".: 2 128744087 128744087 0 0
(--) D2+R2.-A,-"& 66518612 75598731 9080119 13.65
&2, 80".: 62225475 53145356 -9080119 -14.59
%. AD'A&.21 ," .A+-,A0 ;"R:1 0 0 0 0
2.-&'21,<2&,1 $ 701500 701500 0 0
3.(-)./RR2&, A112,1=0"A&1 3 44161444 41654241 -2507203 -5.68
(--)./RR2&, 0-A8-0-,-21 7 + ( 33782827 40847539 7064712 20.91
&2, ./RR2&, A112,1 (----) 10378617 806702 -9571915 -92.23
4.<-1.200A&2"/1 29+2&D- - 29940443 29433074 -507369 -1.69
&",21 "& A.."/&, < 0 0 0 0
,",A0 1 ," 4 103246035 84086632 -19159403 -18.56
+O1.C3: 50015) .3!O.T+
"n the above statement the over all performance of the firm was decreased in 1//A when
compared to 1//>.
"n sources of funds the secured loans are increased by 6.1AL in 1//> when
compared to 1//:.
9urrent assets are decreased by :.>BL. <et block of fi,ed assets are decreased by
$..:CL.
"TA#
>:
TAT-#-<T 8?("<D 9?#0A="T"F- 0=?F"T A<5 E? AI9 F?= T8-
O-A= 1//: A<5 1//>.
+O1.C3: 50015) .3!O.T+
"n the above statement the over all performance of the firm was slightly decreased in
1//> when compared to 1//:.
The sales were decreased by >1L in the year 1//> when compared to the year
1//:.
The selling and administration e,penses of the firm were increased by $1L.
TAT-#-<T 8?("<D 9?#0A="T"F- 0=?F"T A<5 E? AI9 F?= T8-
O-A= 1//> A<5 1//A
"TA#
/A%'IC;LA%S SCH-D;L- 788< 7889
CHA"0- I"
%s
CHA"0- I"
=
1A021 J 49219648 18272635 -30947013 -62.87
."1, "$ 3""D1 1"0D : 36833098 14402048 -22431050 -60.90
3R"11 +R"$-, 12386550 3870587 -8515963 -68.75
1200-&3 7
AD<&.29+2&1 - 10180586 11416753 1236167 12.14
D2+R2.-A,-"& 2 9080119 9080119 0 0
-&,2R21, 13086562 12856596 -229966 -1.76
",(2R -&."<2 624840 9425630 8800790 1408.48
+R"$-, 82$"R2 ,A9 -19335877 -20057251 -721374 3.73
+R"'-1-"& $"R -&."<2 ,A9 0 0 0 0
+R"$-, A$,2R ,A9 -19335877 -20057251 -721374 3.73
+R-"R +2R-"D ADJ/1,<2&, 903092 66373 -836719 -92.65
8A0A&.2 .>$ ," 8>1 -20238969 -20123624 115345 -0.57
>>
+O1.C3: 50015) .3!O.T+
"n the above statement the over all performance of the firm was decreased in 1//> when
compared to 1//:
The sales were decreased by 61L in the year 1//> when compared to the year
1//:.
The selling and administration e,penses of the firm were decreased by >:L.
"TA#
+AR,-./0AR1 1.(2D/02 2006 2007
.(A&32
-& Rs
.(A&32 -&
4
1A021 J 18272635 12353450 -5919185 -32.39
."1, "$ 3""D1 1"0D : 14402048 9541652 -4860396 -33.75
3R"11 +R"$-, 3870587 2811798 -1058789 -27.35
1200-&3 7 AD<&.29+2 - 11416753 3927032 -7489721 -65.61
D2+R2.-A,-"& 2 9080119 9080119 0 0
-&,2R21, 12856596 12838748 -17848 -0.14
",(2R -&."<2 9425630 231372 -9194258 -97.55
+R"$-, 82$"R2 ,A9 -20057251 -22802728 -2745477 13.68
+R"'-1-"& $"R - , 0 0 0 0
+R"$-, A$,2R ,A9 -20057251 -22802728 -2745477 13.68
+R-"R +2R-"D ADJ/1,<2&, 66373 48228 -18145 -27.34
8A0A&.2 .>$ ," 8>1 -20123624 -22850956 -2727332 13.55
>A
TAT-#-<T 8?("<D 9?##?<'"N- 0=?F"T A<5 E? AI9 F?= T8-
O-A= 1//:
+AR,-./0AR1 1.(2D/02 2005
4 -& R20A,-"&
," 1A021
1A021 J 49219648 100
."1, "$ 3""D1 1"0D : 36833098 74.83
3R"11 +R"$-, 12386550 25.16
1200-&3 7 AD<&.29+2&121 - 10180586 20.68
D2+R2.-A,-"& 2 9080119 18.44
-&,2R21, 13086562 26.58
",(2R -&."<2 624840 1.26
+R"$-, 82$"R2 ,A9 -19335877 -39.28
+R"'-1-"& $"R -&."<2 ,A9 0 0
+R"$-, A$,2R ,A9 -19335877 -39.28
+R-"R +2R-"D ADJ/1,<2&, 903092 1.83
8A0A&.2 .>$ ," 8A0A&.2 1(22, -20238969 -41.11
+O1.C3: 50015) .3!O.T+
"n the above statement the cost of goods sold constitutes A.L of sales. And gross
profit constitutes 1:L of sales. The interest constituted 1>L of sales.
TAT-#-<T 8?("<D 9?##?<'"N- 0=?F"T A<5 E? AI9 F?= T8-
O-A= 1//>
"TA#
>B
+O1.C3: 50015) .3!O.T+
"TA#
/A%'IC;LA%S SCH-D;L- 7889
= I"
%-LA'IO" 'O
SAL-S
1A021 J 18272635 100
."1, "$ 3""D1 1"0D : 14402048 78.82
3R"11 +R"$-, 3870587 21.18
1200-&3 7 AD<&.29+2&121 - 11416753 62.48
D2+R2.-A,-"& 2 9080119 49.69
-&,2R21, 12856596 70.35
",(2R -&."<2 9425630 51.58
+R"$-, 82$"R2 ,A9 -20057251 -109.76
+R"'-1-"& $"R -&."<2 ,A9 0 0
+R"$-, A$,2R ,A9 -20057251 -109.76
+R-"R +2R-"D ADJ/1,<2&, 66373 0.36
8A0A&.2 .>$ ," 8A0A&.2 1(22, -20123624 -110.12
>C
"n the above statement the cost of goods sold constitutes ABL of sales. And gross
profit constitutes 1$L of sales. The interest constituted .CL of sales.
TAT-#-<T 8?("<D 9?##?<'"N- 0=?F"T A<5 E? AI9 F?= T8-
O-A= 1//A
/A%'IC;LA%S SCH-D;L- 788:
= I"
%-LA'IO" 'O
SAL-S
1A021 J 12353450 100
."1, "$ 3""D1 1"0D : 9541652 77.23
3R"11 +R"$-, 2811798 22.76
1200-&3 7 AD<&.29+2&121 - 3927032 31.78
D2+R2.-A,-"& 2 9080119 73.50
-&,2R21, 12838748 103.92
",(2R -&."<2 231372 1.87
+R"$-, 82$"R2 ,A9 -22802728 -184.58
+R"'-1-"& $"R -&."<2 ,A9 0 0
+R"$-, A$,2R ,A9 -22802728 -184.58
+R-"R +2R-"D ADJ/1,<2&, 48228 0.39
8A0A&.2 .>$ ," 8A0A&.2 1(22, -22850956 -184.97
+O1.C3: 50015) .3!O.T+
"n the above statement the cost of goods sold constitutes AAL of sales. And gross profit
constitutes 11L of sales. The interest constituted $/6L of sales 3more than the sales4.
"TA#
A/
TAT-#-<T 8?("<D 9?##?<'"N- !AEA<9- 8--T F?= T8- O-A=
1//:
+AR,-./0AR1 1.(2D/02 2005
4 "& 1"/R.21
"$ $/&D1
1"/R.21 "$ $/&D1
1.1(AR2 .A+-,A0 $/&D15
a. 26/-,Y 1(AR2 .A+-,A0 A 55351000 42.23
%.R212R'21 7 1/R+0/1 8 -70256262 -53.60
2.0"A& $/&D15 0
a. 12./R2D 0"A&1 . 116789519 89.11
%. /&12./R2D 0"A&1 D 29174076 22.26
,",A0 1 A&D 2 131058333 100

A++0-.A,-"& "$ $/&D1 2005
4 "&
A++0-.A,-"& "$
$/&D1
1.$-92D A112,15
a. 3R"11 80".: 2 128744087 98.23
(--) D2+R2.-A,-"& 57438493 43.82
&2, 80".: 71305594 54.40
%. AD'A&.21 ," .A+-,A0 0 0
2.-&'21,<2&,1 $ 701500 0.53
3.(-)./RR2&, A112,1=0"A&1
A&D AD'A&.21 3 52228447 39.85
(----) 0
(--)./RR2&, 0-A8-0-,-21 7 ( 23625039 18.02
&2, ./RR2&, A112,1 (----) 28603408 21.82
4.<-1.200A&2"/1
29+2&D-,/R2 - 30447831 23.23
&",21 "& A.."/&, < 0 0
,",A0 1 ," 4 131058333 100
+O1.C3: 50015) .3!O.T+
"TA#
A$
"n the above statement the secured loans constitute BCL of sources of funds. The
net block constitutes :.L of the application of funds.
TAT-#-<T 8?("<D 9?##?<'"N- !AEA<9- 8--T F?= T8- O-A=
1//>
/A%'IC;LA%S SCH-D;L- 7889
= O" SO;%C-S
OF F;"DS
1"/R.21 "$ $/&D1
1.1(AR2 .A+-,A0 $/&D15
a. 26/-,Y 1(AR2 .A+-,A0 A 55351000 53.61
%.R212R'21 7 1/R+0/1 8 -90379886 -87.53
2.0"A& $/&D15 0
a. 12./R2D 0"A&1 . 120469891 116.68
%. /&12./R2D 0"A&1 D 17805030 17.24
,",A0 1 A&D 2 103246035 100

A++0-.A,-"& "$ $/&D1 2006
4 "&
A++0-.A,-"& "$
$/&D1
1.$-92D A112,15
a. 3R"11 80".: 2 128744087 124.69
(--) D2+R2.-A,-"& 66518612 64.42
&2, 80".: 62225475 60.26
%. AD'A&.21 ," .A+-,A0 0 0
2.-&'21,<2&,1 $ 701500 0.67
3.(-)./RR2&, A112,1=0"A&1 A&D
AD'A&.21 3 44161444 42.77
(----) 0
(--)./RR2&, 0-A8-0-,-21 7 ( 33782827 32.72
&2, ./RR2&, A112,1 (----) 10378617 10.05
4.<-1.200A&2"/1 29+2&D-,/R2 - 29940443 28.99
&",21 "& A.."/&, < 0 0
,",A0 1 ," 4 103246035 100
+O1.C3: 50015) .3!O.T+
"TA#
A1
"n the above statement the secured loans constitute $$>L of sources of funds. The net
block constitutes >/L of the application of funds.
TAT-#-<T 8?("<D 9?##?<'"N- !AEA<9- 8--T F?= T8- O-A=
1//A
+AR,-./0AR1 1.(2D/02 2007
4 "& 1"/R.21 "$
$/&D1
1"/R.21 "$ $/&D1
1.1(AR2 .A+-,A0 $/&D15
a. 26/-,Y 1(AR2 .A+-,A0 A 55351000 65.82
%.R212R'21 7 1/R+0/1 8 -113230842 -134.65
2.0"A& $/&D15 0
a. 12./R2D 0"A&1 . 124412166 147.95
%. /&12./R2D 0"A&1 D 17554308 20.87
,",A0 1 A&D 2 84086632 100
A++0-.A,-"& "$ $/&D1 2007
4 "& A++0-.A,-"&
"$ $/&D1
1.$-92D A112,15
a. 3R"11 80".: 2 128744087 153.10
(--) D2+R2.-A,-"& 75598731 89.90
&2, 80".: 53145356 63.20
%. AD'A&.21 ," .A+-,A0 ; 0 0
2.-&'21,<2&,1 $ 701500 0.83
3.(-)./RR2&, A112,1=0"A&1 3 41654241 49.53
(----) 0
(--)./RR2&, 0-A8-0-,-21 7 +R ( 40847539 48.57
&2, ./RR2&, A112,1 (----) 806702 0.95
4.<-1.200A&2"/1 29+2&D- - 29433074 35.00
&",21 "& A.."/&, < 0 0
,",A0 1 ," 4 84086632 100
+O1.C3: 50015) .3!O.T+
"n the above statement the secured loans constitute $.AL of sources of funds. The net
block constitutes >6L of the application of funds.
"TA#
A6
TAT-#-<T 8?("<D T=-<5 A<AEO" F?= T8- O-A= F=?# 1//6 T?
1//A
98A<D- "< =
+AR,-./0AR1 2003 2004 2005 2006 2007
1A021 89581746 53944973 49219648 18272635 12353450
3R"11 +R"$-, 846280 13513118 12386550 3870587 2811798
,",A0 29+2&D-,/R2 49429745 32220802 32347267 33353468 25845899
",(2R -&."<2 1614969 -77047 624840 9425630 231372
+R"$-, 82$"R2 ,A9 -46968496 -18784731 -19335877 -20057251 -22802728
&2, 80".: 89356757 80385713 71305594 62225475 53145356
./RR2&, A112,1 34249622 29794405 28603408 10378617 806702
-& ? 4 ?
+AR,-./0AR1 2003 2004 2005 2006 2007
1A021 100 60.2187113 54.95 20.3977214 13.79
3R"11 +R"$-, 100 1596.766791 1463.65 457.36482 332.25
,",A0 29+2&D-,/R2 100 65.18504597 65.44 67.4765124 52.29
",(2R -&."<2 100 -0.477223078 38.69 583.641544 14.33
+R"$-, 82$"R2 ,A9 100 39.99432087 41.17 42.7036263 48.55
&2, 80".: 100 89.960419 79.80 69.6371232 59.48
./RR&2, A112,1 100 86.99192359 83.52 30.3028658 2.36
+O1.C3: 50015) .3!O.T+
The sales trend of the firm was decreasing in trend. "t was decreased to =s $, 16,
:6,.:/ from =s B, C:, B$,A.>.
The total e,penditure of the firm was decreasing in trend. "t was decreased to =s
1,:B,.:,BCC from =s .,C.,1C,A.:.
"n the above table it is clear that the over all performance of the company was in
decreasing trend.
"TA#
A.
"TA#
A: