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PART A

1. INDUSTRY PROFILE:

All business organizations prepare financial statements after every financial year. The financial

statements clearly indicate the financial position of the business concern. Published financial statements may

be of considerable interest to shareholders, trade organizations, business analyst and many others. Each of 

these groups may be interest in different aspects of the business concern according to their own purposes.

The basis for financial planning, analysis and decision making is the financial information. Financial

information is needed to predict, compare and evaluate the firm’s earning ability. It is also required to aid in economic

decision making investment and financing decision making. The financial information of an enterprise is contained in

the financial statements or accounting reports.

The financial analysis is the process of analyzing the financial strengths and weaknesses of the firm by

properly establishing the relationships between the items of the balance sheet and profit and loss account. It is the

study of the performance of the unit and therefore is aimed at financial performance of an individual unit.

This report deals with the financial performance of HDFC Standard Life Insurance Company Ltd.  for the

financial year 2008 to 2010.

This report briefly explains the subject matter (financial statements analysis) of the study conducted. The basis

for the financial planning, analysis and decision-making is the financial information. Financial information is needed

to predict, compare and evaluate the firm’s earning ability. It is also required to aid in economic decision making

investment and financing decision making. The financial information of an enterprise is contained in the financial

statements or accounting reports.

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The financial analysis is the process of identifying the financial strengths and weaknesses of the firm by

properly establishing relationship between the items of the balance sheet and profit and loss account. It is the study of 

the performance of the unit and therefore is aimed at the financial performance in an individual unit. This is therefore

aimed at analyzing the performance, trend and the areas of strengths and weaknesses of the firm. The objective of the

study was to thoroughly analyze the company’s performance and the financial position over the years i.e., the

direction and the trend in which the company is performing and the various and their uses.

The balance sheet and the income statement of the company provide some extremely useful information to the extent

that the balance sheet mirrors the financial position on a given date in terms of the structure of assets, liabilities and

owners equity etc. The comparison of the above statements is therefore an important aid in determining the company’s

position and performance over a period of time. The first task in the analysis is the selection of the information

relevant to the decision under consideration from the total information contained in the financial statements. The

second task is to arrange the information in a way to highlight comparison among different variables from balance

sheet and income statement of different years. The final step is that of drawing inferences and conclusions.

The best tool used for the purpose of finding out trends of an organization’s growth over a period of time is Ratio

Analysis. The variables in the balance sheet provides considerable information which is eventually helpful for the

organization as the trends can be studied and it forms the basis of drawing important inferences. Working Capital is

the capital required for the day-to-day operations of the business it maybe regarded as the life blood of business.

Its effective position can do much to ensure the success of a business, while its inefficient management can lead not

only to loss of profit but also the ultimate downfall the study of working capital management is important because of 

its close relation with the day to day operations of the business Therefore to keep healthy management of working

capital business needs professionalism and good skill thus the management of working capital varies from industry to

industry.

HDFC Standard Life Insurance Company Ltd. has been taken for the case study to analyze the financial aspects to

working capital for the better understanding of the financial standing of the Company.

2. THIS ABOUT COMPANY PROFILE

A. Background and inception of the company

HDFC Standard Life Insurance Co. Ltd. was incorporated on 14th august 2000. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC Ltd.) India and U.K. based Standard Life Company

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HDFC Standard Life, one of India’s leading private life insurance companies, offers a range of individual

and group insurance solutions. It is a joint venture between Housing Development Finance Corporation

Limited (HDFC), India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom.

HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint

venture, while the rest is held by others.

HDFC Standard Life’s product portfolio comprises solutions, which meet various customer needs such as

Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing

the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail

and 4 group products in its portfolio, along with five optional rider benefits catering to the savings,

investment, protection and retirement needs of customers.

HDFC Standard Live continues to have one of the widest reaches among new insurance companies with 568

branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its

existing markets with a base of 2,00,000 Financial Consultants.

HDFC Standard Life Insurance Company Profile

The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has

helped the company achieve the status it currently enjoys. HDFC Standard Life brings to you a whole range of 

insurance solutions be it group or individual or NAV services for corporations; they can be easily customized as per

specific needs.

HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes

standing at whopping Rs. 2,856 chores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders

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and the first preference for any life insurance customer. The Banc assurance partners of 

HDFC Standard Life Insurance Co Ltd are HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank 

of Baroda, Saraswat Bank and Bajaj Capital.

MARKET OVERVIEW:

The Indian life insurance industry is rapidly evolving. It has emerged as one of the fastest

developing emerging markets for life insurance in the world. The industry has become fiercely

competitive with the entry of private sector companies including major multinational insurers after

sector deregulation. India’s share of the world life insurance business has doubled within 5 years

since liberalization raising India’s global ranking to 17 in 2006 from 20 in 2000. From 0.5% of the

world’s life insurance business in 2000 India today accounts for 1.02% of the world’s premium

reflecting that the insurance business in India has more than just doubled within just 5 years.

  Nonetheless insurance as a business is growing faster than India’s GDP. Life insurance premium

which accounted for 1.77 % of the country’s GDP in 2000 contributed 2.53% to the GDP for the

2005- 2006 fiscal year. An expert group of Confederation of Indian Industry (CII) has projected that

in 2016 the size of Indian insurance market will grow to Rs.145000 Crores. This translates into an

average annual growth of 19.6%. CII expects an annual growth in the pension business which is

projected to rise at 29% per annum, effectively translating to an expansion of over 12 times over a

period of a few years by 2016. The premium business from pension schemes is projected to grow by

22.5% within the same period. There is a large scope for Indian insurance sector to grow; only 20

lakh advisors are available for 1.22 Billion Indians. 70% of the population is below the age of 

35years. Over 100 crore people in India do not have insurance. 

B. Nature of the business carried 

HDFC LIFE PRODUCTS

  Protection plans:-

1.  To safeguard family’s financial independence 

2.  Security against uncertainties

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3.  Financial cushion in case of an eventuality

Types of protection plans:-

1.  HDFC TERM Assurance plan

2.  HDFC Premium Guarantee Plan

3.  HDFC Loan Cover Term Assurance Plan

  Children’s Plans:-

1.  To Fulfill Children’s dreams. 

2.  Economic support when child needs it most.

  RETIREMENT PLANS:-

1.  Monetary Security

2.  Financial independence even after retirement

3.  To live carefree in golden years.

  Saving & Investment Plans:

1.  Dual benefit of protection and long term savings

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2.  Provide an assured sum for future needs

3.  Inculcate a habit of regular savings.

  Health Plans 

1.  To secure health costs

2.  Financial independence despite illnesses

3.  Meeting medical expenses effortlessly

  Types 

1.  HDFC Critical Care Plan

2.  HDFC Surgicare Plan

C. vision, mission and quality policy

Mission:

Our mission is to build valuable customer relationships by helping customers grow and protect their

assets

HDFCSLIC aims to be the top new life insurance company in the market. This does not just mean

being the largest or the most productive company in the market. Rather it is a combination of 

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several things like-

1.  Customer service of the highest order2.  Value for money for customers

3.  Professionalism in carrying out business

4.  Innovative products to cater to different needs of different customers

5.  Use of technology to improve service standards

6.  Increasing market share

Vision:

Our vision is to help our customers around the world feel confident about their future wealth and

well being.

'To be the most successful and admired life insurance company, which means the most trusted

Company, the easiest to deal with, offer the best value for money, and set the standards in the

Industry'.

'The most obvious choice for all'. 

Quality Statement: To maintain top quality in marketing and communications made through the website

marketing. The Company strongly believes there is always a scope for improvement on the existing products

and services. Based on this belief it offers solutions that is focused on constant improvement of products and

services.

D. PRODUCT/ SERVICE PROFILE:

The various products by HDFC Standard Life include:

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  INDIVIDUAL PRODUCTS:

Protection Plans 

o  Term Assurance Plan

o  Loan Cover Term

o  Assurance Plan

Investment Plans: 

o  Single Premium Whole Life Plan

Pension Plans: 

o  Personal Pension Plan

o  Unit Linked Pension Plan

o  Unit Linked Pension Plus

Savings Plans: 

o  Endowment Assurance Plan

o  Unit Linked Endowment

o  Unit Linked Endowment Plus

o  Money Back Plan

o  Children's Plan

o  Unit Linked Youngster

o  Unit Linked Youngster Plus

  GROUP PRODUCTS 

o  Group Term Insurance

o  Group Variable Term Insurance

o  Group Unit Linked Plan

  OTHER PRODUCTS 

o  Rural Products

o  Social Development Insurance Plan

o  Tax Benefit Schemes

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The premium payment options available to the customers vary from online payment to direct desk payments at the

HDFC Standard Life Branches, by courier services or in drop boxes provided. You can also pay by ECS or Automatic

Debit System or credit cards or standing instruction mandate. HDFC Standard Life Insurance Company is a customer

oriented corporation and aim at complete customer satisfaction.

The lapsation and renewal policy of HDFC Standard Life are clearly defined on the official website. Online renewal

forms are also available. For any change in personal details like the contact details or the nominee of the policy or

policy benefits, online servicing is also available. Even the claim procedure has been simplified since affect of the loss

life is irreparable and is thus fully understandable at HDFC Standard Life. A completely hassle-free process has been

formulated to provide maximum convenience.

Facility of HDFC Standard Life Insurance Company Ltd.

  Protection Plans

  HDFC Term Assurance Plan 

  HDFC Premium Guarantee Plan 

  HDFC Loan Cover Term Assurance Plan 

  HDFC Home Loan Protection Plan 

  Children's Plans

  HDFC SLIC Youngster Super II 

  HDFC SLIC Youngster Super Premium 

  HDFC Children's Plan 

  Health Plans

  HDFC Critical Care Plan 

  HDFC Surgicare Plan 

  Savings & Investment Plans

  HDFC SLIC Crest 

  HDFC SLIC ProGrowth Super II 

  HDFC SL ProGrowth Maximiser 

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  HDFC Endowment Assurance Plan 

  HDFC SL New Money Back Plan 

  HDFC Single Premium Whole of Life Insurance Plan 

  HDFC Assurance Plan 

  HDFC Savings Assurance Plan 

  Retirement Plans

  HDFC Personal Pension Plan 

  HDFC Immediate Annuity 

  Rural Products

  HDFC GraminBima Kalyan Yojana 

  HDFC GraminBima Mitra Yojana 

  HDFC BimaBachat Yojana 

E. Area of operation:

HDFC Standard Life continues to have one of the widest reaches among new insurance

Companies. The company strengthened its number of offices from 103 to 572 across the country

in less than 3 years. Through these offices, the company today services customer needs in over

730 cities and towns. HDFCSLIC is head quartered at Mumbai and has established its presence in

The states of:

Andhra Pradesh Assam

Bihar Chatthisgarh

Delhi Goa

Gujarat Haryana

Himachal Pradesh Jharakhand

Karnataka Kerala

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Madhya Pradesh Maharashtra

Meghalaya Orissa

Punjab Rajasthan

Tamil Nadu Uttar Pradesh

Uttaranchal West Bengal

Some of the cities in which HDFCSLIC has its branches are:

Ahmedabad, Bangalore,

Chennai, Chandigarh,

Hyderabad, Jaipur,

Jalandar, Jodhpur,

Ludiana, Kanpur,

Kolkata, Lucknow,

Mangalore, Meerut

Mysore, New Delhi,

Noida, Patna,

Pune, Trichur,

Trivandrum, Vishakapatnam, etc

HDFC Ltd.

HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of 

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Promoting home ownership by providing long-term finance to households for their housing

needs. HDFC was promoted with an initial share capital of Rs. 100 million.

HDFC Founder

F. Ownership pattern:

Hasmukhbhai Parekh, Founder and Chairman

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through

the provision of housing finance in a systematic and professional manner, and to promote home

ownership. Another objective is to increase the flow of resources to the housing sector by

integrating the housing finance sector with the overall domestic financial markets.

Subsidiaries and associate Companies 

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  HDFC Bank 

  HDFC Mutual Fund

  HDFC Standard Life Insurance Company

  HDFC Sales

  HDFC General Insurance

  Other Companies Co-Promoted By HDFC

  Financial Information with regard to Subsidiary Companies

HDFC is a unique example of a housing finance company which has demonstrated the viability

of market-oriented housing finance in a developing country. It is viewed as an innovative

institution and a market leader in the housing finance sector in India. The World Bank considers

HDFC a model private sector housing finance company in developing countries and a provider

of technical assistance for new and existing institutions, in India and abroad. HDFC’s executives

have undertaken consultancy assignments related to housing finance and urban development on

behalf of multilateral agencies all over the world.

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G. Competitors information: 

Competition Name Last Price Market Cap.

(Rs. cr.) Net Interest

Income

Net Profit Total Assets

HDFC Bank  519.30 121,785.35 19,928.21 3,926.39 277,352.61

ICICI Bank  904.90 104,312.34 25,974.05 5,151.38 406,233.67

Axis Bank  1,172.10 48,392.94 15,154.81 3,388.49 242,713.37

Kotak Mahindra  566.50 41,907.70 4,303.56 818.18 50,850.66

IndusInd Bank  314.30 14,695.83 3,589.36 577.32 45,635.85

Yes Bank  349.15 12,313.12 4,041.74 727.13 59,007.00

Federal Bank  415.45 7,106.17 4,052.03 587.08 51,456.37

ING Vysya Bank   338.70 5,083.82 2,694.06 318.65 39,013.98

Karur Vysya  374.65 4,015.51 2,217.69 415.59 28,224.84

JK Bank  827.65 4,012.27 3,713.13 615.20 50,508.15

South Ind Bk  26.30 2,981.76 2,446.01 292.56 32,820.21

StanChart IDR  80.15 1,923.60 - - 1,945,725.80

City Union Bank  46.75 1,904.39 1,218.41 215.05 14,591.52

Karnataka Bank  101.00 1,901.80 2,370.84 204.61 31,693.01

DCB  46.75 936.43 536.26 21.43 7,372.33

Lakshmi Vilas  89.40 871.88 1,064.84 101.14 13,301.19

Dhanlaxmi Bank  72.15 614.26 906.42 26.06 14,268.16

Goldman BEES  2,675.95 274.56 - - -

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H. Infrastructural facilities:

The infrastructure of the organization is good. AC is available for the whole organization.

Generator facility is also available. There is a canteen within that organization where tea,

coffee, fast food are available free of cost. The rest rooms are also neat and clean. The light

and fresh air comes in that floor. Lifts facility is also available for both employees and

customers and visitors. Each employee is having one computer for their work. For

managerial level position well designed glass cabins are there. The training rooms are nicely

designed, sitting arrangement is good, meeting room and conference hall is also available.

I. Achievements / Awards

HDFC Bank began operations in 1995 with a simple mission: to be a"World-class Indian Bank". We

realised that only a single-minded focus on product quality and service excellence would help us get there.

Today, we are proud to say that we are well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer convenience have been appreciated

both nationally and internationally.

2012

5th Loyalty Summit

award

Customer and Brand Loyalty  

Skoch foundation

2012

SHG/JLG linkage programme  

ICAI Awards 2011 Excellence in Financial Reporting  

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2011

Outlook MoneyBest Bank Award

2011

- Best Bank - Runner Up 

Best Commercial

Vehicle Financier

- Driving Positive Change  

Businessworld Best

Bank award

- Best Bank  

BCI Continuity &

Resilience Award

- Most Effective Recovery of the Year  

Financial Express

Best Bank Survey

2010-11

- Best in Strength and Soundness

- 2nd Best in the Private Sector  

CNBC TV18's Best

Bank & Financial

Institution Awards

- Best Bank

- Mr. Aditya Puri, Outstanding Finance Professional 

Dun & Bradstreet

Banking Awards

2011

Best Private Sector Bank - SME Financing  

ISACA 2011 award

for IT Governance

Best practices in IT Governance and IT Security  

IBA Productivity

Excellence Awards

New Channel Adopter (Private Sector)  

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2011

DSCI (Data

Security Council of 

India) Excellence

Awards 2011

Security in Bank  

Euromoney Awards

for Excellence 2011

Best Bank in India  

FINANCE ASIA

Country Awards

2011: India

- BEST BANK

- BEST CASH MANAGEMENT BANK

- BEST TRADE FINANCE BANK  

Asian Banker Strongest Bank in Asia Pacific  

BloombergUTV's

Financial

Leadership Awards

2011

Best Bank

IBA Banking

Technology

Awards 2010

Winner -

1) Technology Bank of the Year

2) Best Online Bank

3) Best Customer Initiative

4) Best Use of Business Intelligence

5) Best Risk Management System

Runners Up -

Best Financial Inclusion  

IDC FIIA Awards

2011

Excellence in Customer Experience  

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2010

Outlook Money

2010 Awards

Best Bank

Businessworld Best

Bank Awards 2010

Best Bank (Large)  

Teacher's

Achievement

Awards 2010

(Business)

Mr. Aditya Puri  

The Banker and

PWM 2010 Global

Private Banking

Awards

Best Private Bank in India  

Economic Times

Awards for

Corporate

Excellence 2010

Business Leader of the Year - Mr. Aditya Puri  

Forbes Asia Fab 50 Companies - 5th year in a row 

NDTV Business

Leadership Awards

2010

Best Private Sector Bank  

The

 Banker Magazine

World's Top 1000 Banks  

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MIS Asia IT

Excellence Award

2010

BEST BOTTOM-LINE I.T. Category  

Dun & Bradstreet

Banking Awards

2010Overall Best Bank

Best Private Sector Bank 

Best Private Sector Bank in SME Financing

Institutional

Investor Magazine

Poll

HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of Finance

2010"  

IDRBT Technology

2009 Awards

Winner - 1) IT Infrastructure 2) Use of IT within the Bank

Runners-up - IT Governance (Large Banks)  

ACI ExcellenceAwards 2010

Highly Commended - Asia Pacific HDFC Bank

FE-EVI Green

Business

Leadership Award

Best performer in the Banking category  

Celent's 2010

Banking Innovation

Award

Model Bank Award  

Avaya Global

Connect 2010

Customer Responsiveness Award - Banking & Financial Services category  

Forbes Top 2000 Our Bank at 632nd position and among 130 Global High Performers  

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Companies

Financial Express -

Ernst & Young

Survey 2009-10

Best New Private Sector Bank

Best in Growth 

Best in strength

Asian Banker

Excellence Awards

2010Best Retail Bank in India

Excellence in Automobile Lending

Best M&A Integration 

Technology Implementation

The Asset Triple A

Awards

Best Cash Management Bank in India

Euromoney Private

Banking and

Wealth

Management Poll

2010

1) Best Local Bank in India (second year in a row) 2) Best Private Banking

Services overall (moved up from No. 2 last year)  

Financial Insights

Innovation Awards

2010

Innovation in Branch Operations - Server Consolidation Project

Global Finance

Award

Best Trade Finance Provider in India for 2010

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2 Banking

Technology

Awards 2009

1) Best Risk Management Initiative and 2) Best Use of Business Intelligence.  

SPJIMR Marketing

Impact Awards

(SMIA) 2010

2nd Prize  

Business Today

Best Employer

Survey

Listed in top 10 Best Employers in the country  

We are aware that all these awards are mere milestones in the continuing, never-ending journey of providing

excellent service to our customers. We are confident, however, that with your feedback and support, we will

be able to maintain and improve our services.

J. Work Flow Model