PREFACE

Management of financial analysis plays a significant role in the organization as the blood plays
its role in the human body .It not only provides energy to the business but simultaneously it is
essential for the success of any business organization management of working capital has close
implication with the two important factors that judge the overall success of the business
profitability and solvency. Nowa-days, the major problem faced by every business organization
is of finance because of drastic changes in the size and scale of business and increased
competition, which results in the increase in credit business and shortage of financial brackets. In
such an environment, the working capital management has occupied one of the key position in
the business management.
In our study, our main objective is to reflect our attention on the position of FINANCE
MANAGEMENT in HDFC LIFE LTD. And discuss various aspects of Finance analysis in the
company.
The HDFC LIFE LTD Is leading company in the field of INSURANCE SECTOR. Our study
is grouped under chapters where we Discusses various aspects of the FINANCE
MANAGEMENT and effects there of on ultimate performance of the company.
It gives me great pleasure to acknowledge my in deftness to all those who have helped me
completing this project and bringing it out in its present form. I am very grateful to my
supervisor under whose kind supervision and able guidance, this work has completed.
It gives me immense pleasure to present this project report on FINANCE MANAGEMENT
carried out at HDFC LIFE LTD In partial fulfillment of Post graduation course IN M.B.A.
No work can be carried out without the help and guidance of various persons. I am happy to take
this opportunity to express my gratitude to those who have been helpful to me in completing this
project report.
I would be failing in my duty if I do not express my deep sense of gratitude to my H.O.D.
ASHFAQ SIDDIQUI without her guidance it wouldnt have been possible for me to complete
this project work.

CONTENTS

01.

02.

INTRODUCTION

PURPOSE OF THE STUDY

AIM OF THE STUDY

OBJECTIVE OF THE STUDY

ORGANIZATION INFORMATION
A .About HDFCSLIC
B .company profile
C. what is insurance?
D .scope of insurance
E .objective
F .Award and accolade
G .product of HDFCSL
H .About ULIP

03.

DESCRIPTIVE WORK
A. Factsheet
B. Profiling of prospects
C. Mode of contacting prospects
D. Total number of people contacted

PURPOSE OF STUDY

During

my

summer

training

in

the

Housing

Development

finance corporation

standard life insurance company limited (HDFCSL). I have gotten the work of Analyzing
financial need and manage the funds of the policies. The main focus area of the company is to
manage and focus of customer profit which gets through managing the funds of the policy.
Indeed the work of financial analyst is very significant and gives more and more customer
assistance to the customer so company can earn customer base and through strong customer
base gets more and more policies distribution and company can sell the policies. The main
motive of this project is analysis of financials of HDFC LIFE.

HDFCSL is one of Indias leading private insurance companies. It offers both

individual and group insurance solution. It is a joint venture between HDFC and a group of
company of Standard Life. I have chosen insurance sector as the place for summer training
because in these days this sector is in boom and it will never go down. All people invest their
money in insurance and get more benefited. In the sector the work of Finance is more
challenging then the other sector because there is 17 insurance companies in the market who are
giving competition to each other and the work of convince people for investment in respective
company is a challenging work and success in the sector proves that the respective person is a
good finance advisor. Today insurance sector India is on boom because all people want to invest.
Those who dont know about investment in share market and dont want to invest in mutual
funds they invest in insurance sector. Insurance sector gives them investment plus risk cover.
Those who dont want to take risk in the investment go to insurance sector. It also gives income
tax benefits to the peoples. Insurance company are now launching ULIP plan and gives chance
to the investor to choose their investment pattern according to their fund investment table. This
fund investment tells us that how much the investor want to take risk. Generally in the ULIP
plan, the thesis is that The more you risk the more you have profit.

STUDY AIM OF
During the summer training I have done my work through telephone calling, natural
market, and contact person having gone to their home. In the entire work I have contacted
person who is policy holder of the company or willing customer and prospect customers of the
company
I found that most of person can earn as well as get insured through insurance company and save
taxes, life assurance with little effort, which will give him back support as a HEAD of the
family in the diverse situation.
This project will help to understand the current market scenario and marketing in stiff
competition. Being a student of management I can draw the relevant conclusion from the
financial analyze and give the appropriate suggestion to the organization.
The company can take decision according to the suggestions and it will provide better
experience to the students for their bright carrier. My project will provide help in these
matters which are thus:Analyze the people perception about HDFC
Study financial markets and analyze the financials of the company
To find out the competitive edge of the company over the competitors.

OBJECTIVE OF THE STUDY

The project was an attempt to explore the Analyzing financial need and manage the funds of
the policies in HDFC LIFE. The project was started on 10th June, after knowing all the
relevant information about the company insurance product and policies and its competitors
insurance products in accordance with the prescribed schedule mentioned by management of
HDFC LIFE.

The project started in branch where covering all the investors whom funds are down and bearing
loss. In this process I meet 90 policy holders who facing loss .I have tried to convince them to
continue with company and remain with the company. During my work I found the perception
of the people about insurance, what they desire from it, and if they suffer loss than what they
think. What the organization should do for the policyholder who suffering from loss. Many of
the customer is not aware about the share market and if they suffer loss than they blame either
company or agent/sales manager. So I have to manage the customers to remain with us and
provide them the best financial solution to them
As I can say this project gives the abstract of my work at HDFC LIFE as financial analyst

INTRODUCTION OF HDFC LIFE

Risk is found everywhere. It cannot be eliminated together, only it can be minimized.
Human life is full of risk. There is a risk when a man walks on the road, travels in a bus, train or
an aero plane and when he is engaged in trade, profession or business. Also there is a risk when

property is destroyed by fire, flood, earthquakes, etc. Thus, the involvement of risk is

inescapable.
Risk

Percentage

Drought

4%

Earthquakes

20%

Floods

35%

Storms

41%

Insurance is a method by which we can spread over the risk. It is a way of reducing uncertainty
of occurrence of an event. Insurance is entirely a method of co-operative endeavor where in the
loss caused by a particular risk is spread over among a large section of persons. Insurance is a
process in which a large number of persons collect their small contributions, called the premium,
in a pool and out of this losses are paid to the suffering persons.
The Business of insurance is related to the protection of the economic values of assets. Every
asset has a value. The asset would have been created through the efforts of the owner. The asset
is valuable to the owner, because he expects to get some benefits from it. It is a benefit because it
meets some of a factory or a cow, the product generated by it is sold and income is generated. In

the case of a motor car, it provides comfort and convenience in transportation. There is no direct
income. Both are assets and provide benefits.

INTRODUCTION OF THE COMPANY

HDFC Life Insurance Company Limited. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Limited), India's leading
housing finance institution and a Group Company of the Standard Life Plc, UK. As on February
28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds
26.00% of equity in the joint venture, while the rest is held by others.

HDFC Life believes that establishing a strong and ethical foundation is an essential
prerequisite for long-term sustainable growth. To ensure this, we have concentrated our focus on
expansion of branch network, organizing an efficient and well trained sales force, and setting up
appropriate systems and processes with optimum use of technology. As all these areas form the
basic infrastructure for establishing the highest possible customer service standards. Our core
values are drilled down to all levels of employees, as these are inviolable. We continue to
promote high integrity in business practices and shun short cuts and unethical practices, as we
wish to be perceived as an institution with high moral standing. Since our inception in 2000,
when the Indian insurance space was opened for private participation, we have consistently
focused on setting benchmarks in all aspect on insurance business. Beingthe first private player
to be registered with the IRDA and the first to issue a policy on December 12, 2000,
The HDFC was established in 1977, for the purpose of providing the home loan for

long term

HDFC is rated as (AAA) by the CRISIL and ICRA.

In the year 2004, it was awarded DREAM HOME AWARD.

It has got 3rd rank in the investment management, in year 2006.

One of the largest financial institution of India with more then 2 million satisfied
customer base.

HDFC HAS FOLLOWING GROUP COMPANIES

HDFC Ltd.

HDFC Standard life

HDFC Mutual fund

HDFC Securities

HDFC Bank

HDFC realty.com

HDFC CIBIL

HDFC Chubb General Insurance Co. Ltd.

HDFC Centre For Housing Finance

HDFC Distribution

HDFC Intel net

HDFC Securitization

HDFC Deposits

HDFC Home Loans

OUT STANDARD LIFE (U.K)

Founded in 1825, and is now one of the largest life Insurance companies in the world.

Strong reputation build over 182 years

Currently over 5 mn. policyholders benefiting from the services offered

Europes largest mutual life insurer

1.Integrity

Honest and Truthful in every action

Transparency

Stick to principles irrespective of outcome

Be just and fair to everyone.

2.Innovation

Building a store house of treasures through experiences.

Looking at every product and process through fresh eyes everyday.

3.Customer Centric

Understand customer expectations by keeping him as the centre point.

Listen actively

Understand customer needs and deliver solutions.

Customer interest always supreme.

4.People Care
Genuinely understanding the people we work with.

Guiding their development through training and support.

Helping them develop requisite skills to reach their true potential.

Know them on a personal front.

Create an environment of trust and

Respect for the time of others.

5.Team Work

Whole team takes the ownership of the deliverables.

Consult all involved, understand and arrive at a company Co-operate and support across
departmental boundaries.

Identify strengths and weaknesses according allocate responsibility to achieve common

objectives.

VISION STATEMENTS

The most successful and admired life

insurance

Company, which means that we are the most trusted Company, the easiest to deal with,
offer the best value for money, and set the standards in the industry. In short, The most
obvious choice for all

DIFFERENT PLANS OF HDFC SLIC

Traditional

Traditional plan is a life insurance solution that provides the client only guaranteed
return.

ULIP (Unit Linked Insurance Plan)

Unit Linked insurance plan is a life insurance solution that provides the client with the
benefits of protection & flexibility in investment .It is solution which provides for life
insurance where the policy value at any time varies according to the value of the
underlying assets at the time.

DISCRIPTIVE WORK
LIFE INSURANCE SECTOR:
India is emerging a some of the two of the largest markets in the world for life insurance
products, the other being China. In the case of India, the three key drivers of growth are a large
insurable population, a high savings rate, roughly at about 25 percent and a low penetration, at
a mere 2.3 percent. In the 11 months of fiscal year 2004-05, life insurance companies collected
premium worth Rs172 billion and the market grew by a whopping 32.4 per cent during the
year. Of this, the public sector Life Insurance Corporation (LIC) had the lion's share of the
market with premium totaling Rs134 billion. Private sector players recorded a spectacular
growth of 129 percent over the last year, compared to LIC's growth of 18 percent. India's GDP
growth rate of 6 percent per annum holds great potential for the sector. According to one
estimate real life premium are expected to grow at a compounded annual rate of 15 per cent
over the next ten years.

How does India's life insurance market compare with China's? While India's market is currently
the fifth largest, China's is the third largest in Asia after Japan and Korea. Low penetration rate
of insurance products is common to IndiaandChina-atjustabout2.3 percent. In China, the savings
rate is at 35 percent while for India it is a little lower at 25 percent. A large part of the growth of
the life insurance market in China was driven by the conversion of bank deposits into
endowment products. Demographically China's population is ageing faster than India's FDI in
Insurance Sector. The government of India is planning to increase the equity limit for foreign
direct investment from the current 26 percent to 49 percent in the insurance sector.
Liberalizations of the FDI policy, including the Budget proposals for raising the sector al caps in
insurance is one of the main factors for the higher FDI inflows during the current year. In 200304 the total FDI inflows in the country touched $3.4 billion. Indian insurance companies have
been pushing for the FDI limit to be raised. The current paid-up requirement of Rs1 billion for
general insurance and Rs2 billion for life insurance have become difficult targets to achieve for
the companies. The companies feel that injection of additional foreign equity would reduce the
costs. The sector was liberalized for private players towards the end of 1999. Currently, there are
14 insurance companies, including the key public sector company Life Insurance Corporation,
in the life insurance sector and 13 general insurance companies.
Changing Demographics
In1999, according to KSA-Techno park, savings and investments comprised
14 percent of an Indian consumers expenditure. The other items included grocery (44 percent),
personal care items (6 percent), consumer durables (6.6 per cent), clothing and books and music
(5 percent each), eating out (8 per cent), movies (1 percent). By 2003, expenditure on savings
and investments had declined to just 4.1 percent. The other items included grocery (41percent) ,
personal care items (7.6 percent), consumer durables (6.6percent), clothing (6.9 percent), eating
out (10.8 percent), movies and theatres (4.6percent), books and music (7.6 percent), vacations
(3.9 per cent). Clearly, the increased spending on other items have had a huge impact on the
amount people are spending on savings and investment products. (Source: Business Worlds
Marketing White book 2005).

Composition of Household Financial Savings

1991

1996-97 2002-0

Currency

10.6% 8.6%

Deposits

33.3% 48.2% 41.5%

Of which Deposits with non banking companies

2.2%

Share sand debentures

14.3% 6.6%

2.7%

Small savings (central govt. schemes)

13.2% 7%

14.3%

Life insurance

9.5%

Provident and pension funds

16.9% 19.1% 14.3%

8.5%

16.4% 1.6%

10.1% 15.5%

Source: RBI Annual Reports.

Key Players in the Indian Market
While the public sector LIC dominates the Indian life insurance market with nearly 80
percent of the market share. It has 248 branches, 115,000 employees and over 1 million
agents. It has also been improving internal processes and systems, upgrading skills of its
agency force and managers And developing innovative products. LIC sold 1.69 corers
policies during the year compared to 18 lakh policies sold by all the private players.
ICICI Prudential is the leader among the private players with a market share of 6.69 percent
after its premium collection totaled Rs11.54 billion. Bajaj Allianz with sales of Rs 4.9 billion
had a market share of 2.86 percent. Birla Sun Life with sales of Rs 4.8 billion had a market
share of 2.81 percent and SBI Life with premium collection of Rs 3.9 billion, a market share
of 2.29 percent. With its combination of aggressive marketing through an agency force and
the use of the banking channel, ICICI has emerged as a key player. Initially, the company
drove new business by opening branches in new locations. The focus has now shifted to
penetrating the locations for increasing market share. The company is also trying to get
higher penetration in the High Net Worth segment. The company has seven bank assurance
partners and this is the largest contributor to non-agency business. It also has 15 key nonbank partners and 800 financial sales consultants. As of September 2004, it had 90 branches
in 60+ locations. It took the initiative in launching non- traditional products such as lifestage products, retirement solutions and child plans. It also focused on Unit Linked Plans
(ULIPs) to target new consumer segments. It has a presence in 15 states through partnership
arrangements and as of 2003-04, it sold64, 764 policies in rural areas.

HDFC Standard Life has established its branches in 110 locations and is targeting nonmetro towns. It is hoping to leverage its pedigree/parentage to gain more customer
acceptance. As a result, it is focusing on quality not Just volume growth. It has developed
some innovative products like the Loan Cover Term Assurance Plan which provides a lump
sum in case of death of the assured life during the term plan. Aimed at the growing segment
of home loan takers, the plan helps the family to repay the outstanding loan. Given that
HDFC has a huge database of home-loan customers; it can easily tap into this resource to
acquire new business. The company is leveraging
Its large customer database of home loan and banking clients to cross-sell insurance
products.
Birla Sun Life
Birla Sun Life was the first to offer ULIPs in the Indian insurance market. And this has been
the primary driver of its growth over the last one year. The company has been investing in
customer education and feels that as a result customers don't view ULIPs as mutual funds but
long term insurance. As of 2004, the company had 33 branches, 10,274 agents, 79 corporate
relationships and 10 bank assurance partners.
Bajaj Allianz has been focusing on second tier towns and cities which are yet to witness the
entry of other life insurance players apart from LIC. It is using first mover advantage by
opening an office in the most prominent location in a non-metro town. It hires local people who
are trained. Its mantra is to develop only the indispensable infrastructure so that it can match
the pricing of LIC. Apart from that it claims that it is the only private player to provide policy
servicing at the branch level .Standard Chartered is currently its biggest partner followed by
Syndicate Bank and Centurion Bank. The biggest challenge that the company faces is the weak
infrastructure particularly transport and communications in the smaller cities. It is also
facing a challenge in terms of banking channels, particularly for customers who bank with
cooperative banks, where delays in clearing
Cheques are in evitable. Tied agencies comprise the biggest channel (68%) of new business
acquisitions for Bajaj Allianz. Bank insurance (27%) is the other significant channel of growth
for the company.
Product Preferences among Consumers

Pension policies are becoming popular as people prefer to opt for solutions that can offer
them a regular income after retirement rather than a lump sum on retirement. Measurable
policies for a bulk sum are being bought only for limited single use such as purchase of a
house, childrens higher education, marriage, etc. This consumer trend is likely to help
companies that offer pension schemes. Term policies are finding favor withYoungsters. Term
insurance policies are also finding more and more takers among the younger generation of
consumers. Because the offer protection at extremely low costs.
It is assumed that life insurance is purchased only to avail of tax-breaks. But the fact remains
that while the tax paying population in the country is just about 20 million, there is a huge
population that has not been tapped. Only the urban salaried class who fall in the tax net has
been targeted for life insurance policies for tax-saving purposes. The other income-earning
classes such as businessmen, professionals, farmers, provide a great opportunity for life
insurance marketers. There is a need to tap these customer segments effectively. Currently all
their disposable income is going into purchase of consumer durables such as washing machines,
TV, refrigerators and mobile phones(as is evident from the fact that spending on
savings/investment products has declined from 14 percent to 4 percent in the past decade).
Mutual Funds (MF) have benefited the most during the last two years. Take the example of the
Systematic Investment Plans (SIP) of mutual funds. In just one quarter ICICI PRU MF sold
20,000 SIPs and it has the potential of selling about 100,000 new SIPs in a year. There are 33
Mutual Fund companies in the country and based on this trend one could say that the estimated
fund in flow in MFs through this route alone could touch the Rs20 billion per month. Due to the
good performance of MF during the past 2 years, life insurance companies have lost out to
mutual funds.

PROFILING PROSPECT
For the Providing assistance of financial management there are certain criteria for the selection
of policy holder. These criteria differ from different insurance company. We can divide the
profiling prospect of HDFCSLIC in two ways.

Which are thus:1.H.N.I (HIGHLY NET WORTH INDIVIDUALS)

Highly net worth individuals are those persons who having yearly income more than 20 lacs and
they are specially treated as H.N.I clients and they have provided relationship manager who
watching and manage their funds and provided financial advices and updating all information of
policies
2. LOYAL CUSTOMERS FUND VALUE AND HAVING DOWN
Every Company Want more and more business and market share and we all know that the work
in insurance sector is totally based upon the customer base. The more you have customer the
more you earn business. So HDFCSL provide the facility to customers that they can contact
with financial assistant in the company and manage their funds which is in loss or customer is
not aware about their policies and managing funds also.
TOTAL NO.OF PEOPLE CONTACTED
During the work of financial Assistance I have contacted 100 people including phone calling,
meetings, and the other efforts. In these 100 people I have gotten appointment of 65people. In
the 65 person I have assisted 39 people. The percentage of converting the profits at 9%.
During the meeting time with the customer these questions are generally asked by them
which are thus:Which type of this policy in which I m getting loss!
Our premium will charge by your company or premium is
invested or not?
How your policy is working?

RESEARCH METHODOLOGY
ABSTRACT OF MARKET RESEARCH

Marketing Research provides information that assists and organization to define opportunities
for product development and market strategy. It works by assessing whether marketing
strategies are accurately targeted, and by identifying market opportunities or changes that are
required by customers. Market research tends to confirm issues that are well-known in a market
initially, but if planned well and effectively it will also identify new opportunities, market
niches, or ways by which to improve sales, marketing and communications activities.
WHY MARKET RESEARCH STUDY
The role of market research, therefore, is to reduce uncertainty in decision making, to monitor
the effects of decisions taken, and identify the performance of a company or a product in the
market. During internship my market survey was related with the distribution enhancement of
the insurance policies of HDFCSL. To be more specific, we can list five key uses for market
research, namely to:

a. Identify the size, shape, and nature of a market, so as to understand the

market and

marketing opportunities.
b. Test out strategic and product ideas which help to define the most effective customer-led
strategies.
c. Monitor the effectiveness of strategies
d. It will define when marketing expenditure, promotions and targeting need to be adjusted or
improved.
The variety of purposes listed above makes it clear that market research is not simply a first
check.It is useful ahead of any action, but it also provide same answer of checking and refining
views as operations proceed. Companies, especially those for which budget seem tight, who
have selected one of these uses for market research are always concerned to make the research a
worthwhile investment. Best results come when their marketing and sales planning is influenced
by the results of research. In other words, when research pays for itself by providing a basis for
change and improvement in operational matters.
RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying now research is done systematically. In that various steps,
those are generally adopted by a researcher in studying his problem along with the logic behind
them.
It is important for research to know not only the research method but also know
methodology. The procedures by which researcher go about their work of describing, explaining
and predicting phenomenon are called methodology. Methods comprise the procedures used for
generating, collecting and evaluating
data. All this means that it is necessary for the researcher to design his methodology for his
problem as the same may differ from problem to problem. Data collection is important step in
any project and success of any project will be largely depend upon now much accurate you will
be able to collect and how much time, money and effort will be required to collect that necessary
data, this is also important step.
Data collection plays an important role in research work. Without proper data available for
analysis you cannot do the research work accurately.

OBJECTIVE OF PROJECT

My project is being undertaken in HDFCSL in which finance management program and

distribution enhancement of insurance policies of HDFCSL has been implemented as a
marketing strategy. HDFCSL tied up with world class insurance product.
Primary Objective
The primary objective of my project is to provide Financial assistance and to increase market
share of HDFCSL. In the insurance sector the main work is done by the financial planning
manager who brings selling for the organization as well providing the best solution for policies
which is not in profit. It improves the services of the organization.
Secondary Objective
In this point we can conclude the company objective which is to increase the market share in the
insurance sector and this will happens it becomes more beneficiary and reliable to the customer.
Customer should have faith on it. It is trying to do it. Today it comes under top 5 insurance
companies. It wants to reach on the top.
Working Procedure
In my summer training I have targeted Delhi. I have collected my data some parts of Delhi. Here
I have to approach various detail of insurance product of HDFCSL and the other competitor of it,
suggestions, its marketing strategy and its advertisement. As a part of marketing research I also
have collect the data in order to find out market share of HDFCSL from our sample space.
During the period I was in continuous touch with my senior and sales manager and I have to
submit daily report of my work and full information about phone calls and questioners.
Questionnaire consisting of open ended questions was used for collecting the information.
Sample Area
My working area was Sagar. As we know that those person will invest in insurance sector who
are salaried or professional. I have targeted those person whos age is equal or more than
Instrument Used
I have collected my data form LIFE ASIA and through phone calling. Life

asia is the software

which used by every insurance company and this software help me to know the customer details
and customer policy information which help me providing best solution through discussion with
my seniors.
Types of data collection

There are two types of data collection methods available.

1. Primary data collection
2. Secondary data collection
1) Primary data
The primary data is that data which is collected fresh or first hand, and for first time which is
original in nature. Primary data can collect through personal interview, questionnaire etc. to
support the secondary data.
2) Secondary data collection method

The secondary data are those which have already collected and stored. Secondary data easily get
those secondary data from records, journals, annual reports of the company etc. It will save the
time, money and efforts to collect the data. Secondary data also made available through trade
magazines, balance sheets, books etc. This project is based on primary data collected through
personal interview of head of account department, head of SQC department and other concerned
staff member of finance department. But primary data collection had limitations such as matter
confidential information thus project is based on secondary information collected through five
years annual report of the company, supported by various books and internet sides. The data
collection was aimed at study of working capital management of the company

We used both methodology i.e. primary and secondary

We take the sample size of 100 POLICY HOLDERS

Sample location is Delhi

This is stratified sampling

LIMITATIONS OF THE STUDY

Limitations of the study
Following limitations were encountered while preparing this project:

1) Limited data:This project has completed with annual reports; it just constitutes one part of data collection i.e.
secondary. There were limitations for primary data collection because of confidentiality.
2) Limited period:This project is based on five year annual reports. Conclusions and recommendations are based on
such limited data. The trend of last five year may or may not reflect the real working capital
position of the company
3) Limited area:Also it was difficult to collect the data regarding the competitors and their financial information.
Industry figures were also difficult to get.

FINANCE DEPARTMENT

CRM is also referred to as Customer Service Management. Generally organizations are more
focused on the path they travel through to reach the success or determined goal. The stages they
traverse includes design, development, marketing, service support, analyzing managerial track,
channeling the development phase, research and development and many more. These stages of
ones business life are as a whole supported with the Customer Relationship Management
features.
In the field of business development, and short term goal tracking with standard terms and
strategies, one must keep up certain flexible terms of communicational relationship and
managerial provisions among the company employees, customers, and clients and with various
departmental staff and members. This enhances a co-operative and comfortable zone to make the
right move of the company development on time.
Focusing on the marketing department, it is important to realize the important of promoting ones
products sales via advertisements, and efficient marketing strands with better quality. Advertising
has to be powerful means to reach the targeted customers in a short time span with less
investment for a perfect outcome of the resulting sale. Sale includes product quality,
competitiveness, advertisement, managing the service to meet the requirements of the clients and
many more.
Marketing ones product means to take the product to the customers who are into the track or
into the field of trade. Sales department is specific in making the product move to the clients with
respect to the deal of sale. This department is more concerned about the sales of the product that
make use of customer service and management terms to keep up good terms on serving the
customers with help-line service to solve problems related to purchase and utility of products
from the company.
Benefits of CRM techniques are more focused towards customer management and services.
Customer relationship management attracts and retains the customers winning the growing
loyalty of the customer and company relationship. CRM processes helps in guiding the way an
organization runs that are targeted generating quality leads, sales and services that are more
focused on the goals and objectives. They help in forming a tie between customer and
organizational relationship that improves the customer satisfaction with the high quality service
and makes the customers feel comfortable to take up business in futurity.

In many industries customers experience with a companys customer service can significantly
affect their overall opinion of the product. Companies producing superior products may
negatively impact their products if they back these up with shoddy service. On the other hand,
many companies compete not because their products are superior to their competitors but
because they offer a higher level of customer service. In fact, many believe that customer service
will eventually become the most significant benefit offered by a company because global
competition (i.e., increase in similar products) makes it more difficult for a companys product to
offer unique advantages.
Customer service manifests itself in several ways, with the most common being a dedicated
department to handle customer issues. Whether a company establishes a separate department or
spreads the function among many departments, being responsive and offering reliable service is
critical and in the future will be demanded by customers.
Our Vision & Values
Our Vision
'The most successful and admired life insurance company, which means that we are 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'.
Our Values
Values that we observe while we work:

Integrity

Innovation

Customer centric

People Care "One for all and all for one"

Team work

Joy and Simplicity

INDUSTRY OVERVIEW

With an annual growth rate of 15-20% and the largest number of life insurance policies in force,
the potential of the Indian insurance industry is huge. Total value of the Indian insurance market
(2010-11) is estimated at Rs. 550 billion (US$10 billion). According to government sources, the
insurance and banking services contribution to the country's gross domestic product (GDP) is 7%
out of which the gross premium collection forms a significant part. The funds available with the
state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only
20% of the total insurable population of India is covered under various life insurance schemes,
the penetration rates of health and other non-life insurances in India is also well below the
international level. These facts indicate the of immense growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took
place with the ending of government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership. Though, the
existing rule says that a foreign partner can hold 26% equity in an insurance company, a
proposal to increase this limit to 49% is pending with the government. Since opening up of the
insurance sector in 1999, foreign investments of Rs.8.7 billion have poured into the Indian
market and 21 private companies have been granted licenses. Innovative products, smart
marketing, and aggressive distribution have enabled fledgling

private insurance companies to

sign up Indian customers faster than anyone expected. Indians, who had always seen life
insurance as a tax saving device, are now suddenly turning to the private sector and snapping up
the new innovative products on offer. The life insurance industry in India grew by an impressive
36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 20042005, braving stiff competition from private insurers. This report "Indian Insurance Industry:
New Avenues for Growth 2012", finds that the market share of the state behemoth, LIC, has
clocked21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies
in2004-05. But this was still not enough to arrest the fall in its market share, as private players
grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in2003-04 Though
the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the
previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers
increased their market share from about 13% to about 22% in a year's time. The figures for the
first two months of the fiscal year 2005-06 also speak of the growing share of the private

insurers. The share of LIC for this period has further come down to 75 percent, while the private
players have grabbed over 24 percent. There are presently 12 general insurance companies with
four public sector companies and eight private insurers. According to estimates, private
insurance companies collectively have a 10% share of the non-life insurance market.
INTRODUCTION
Financial management

means procurement of funds at

minimum costs and effective

utilization in order to maximize the wealth of shareholders.

The term of financial management refers to its relationship with the closely-related
fields of economics and accounting, its functions, scope and objectives. Financial management,
as an academic discipline, has undergone fundamental changes in its scope and coverage. In the
early years of its evolution it was treated synonymously with the raising of funds. In the
current literature pertaining to financial management, a broader scope so as to include, in
addition to procurement of funds, efficient use of resources is universally recognized.
Financial management, as an integral part of overall management, is not a totally,
independent area. It draws heavily on related disciplines and fields of study, such as economics,
accounting, marketing, production and quantitative methods. A part from economics and
accounting, finance also draws for its key day to day decisions on supportive disciplines such
as marketing, production and quantitative methods, for instance, financial managers should
consider the impact of new product development and promotion plans made in the marketing
area since their plans will require capital outlays and have an impact on the projected cash flows.

Finally, the tools of analysis developed in the quantitative methods area are helpful in
analyzing complex financial management problem. Organization makes their planning for the
financial sources which are very helpful in the future course of action.
Taking a commercial business as the most common organizational structure, the key objectives of
financial management would be to:

Create wealth for the business

Generate cash, and

Provide and adequate return on investment bearing in mind the risks that the business is
taking and the resources invested.
CONCEPT OF FINACING
1.

Financial Planning
Management needs to ensure that enough funding is available at the right time to

meet the needs of the business. In the short term, funding may be needed to invest in
equipment, pay employees and fund sales made on credit. In the medium and long term,
funding may be required for significant additions to the productive capacity of the business
or to make acquisitions.
2.

Financial Control
Financial control is a critically important activity to help the business ensure that the

business is meeting its objectives.

3.

Financial Decision-Making

A key financing decision is whether profits earned by the business should be retained rather than
distributed to shareholders via dividends. If dividends are too high, the business may be starved
of funding to reinvest in growing revenues and profits further.

FINANCIAL DECISIONS
Financial management consists of four major decisions or functions which are as discussed as
below.
1.

Investment decision

Investment decision is the long term, strategic policies of an organization. Investment

decisions have a long term effect on the working of an organization. Thus an
enterprise should invest in proposals which maximize share value.
2.

Financing decision

There are various sources of capital like equity, preference shares, borrowed funds, and retained
profits. The finance manager has to select a proper mix of owned at the minimum cost. A financing
decision adds to the value to the value of shareholders.
3.

Dividend decision

Profits can either be distributed or reinvested into the business. The proportion of profits
that needs to be distributed and that needs to be retained is a crucial decision. It is the job of
finance manager to satisfy the shareholders as well as claw back into the business. This division of
profit when done in an optimum manner maximizes shareholder value.
4.

Liquidity decision

An enterprise needs finance for the day today activities for the smooth functioning. The
brand of FM that deals with investments in current assets & liabilities, in other words
investment is the net working capital comprises of the liquidity decisions.

DEPRECIATION POLICY IN HDFC LIFE

Depreciation is charged as per the below mentioned rates
Asset

Rate

Buildings

as

per

Companies

Act

Rate as per Income Tax Act

(Written Down Value method)

(Written Down Value method)

WDV

WDV

Residential Units 1.63 %

Residential units 5 %

Office Premises 1.63 %

Office Premises 10 %

(Straight Line Method SLM)

Computers

25 % (SLM)

60 %

Air Conditioners &

13.91 %

15 %

Furniture & Fixtures

18.10 %

10 %

Office Equipment

13.91 %

15 %

Electrical

13.91 %

15 %

25.89 %

15 %

Refrigerator

Installations
Vehicles
Cars)

(Motor

Companies Act

1.

The rate 13.91 % is applicable to Plant and Machinery (applicable to A/C, Office
Equipment and Electrical Installations).

2.

The Depreciation under Companies Act for Computers is 16.21 % (SLM). However, the
rate adopted by us is 25 % SLM.

3.

Except Computers, all the rates are as per Companies Act.

4.

No depreciation is charged in the year of sale.

5.

Depreciation is charged for the full year in the year of purchase.

Income Tax Act

1.

Machinery and Plant other than the specified 15 % (applicable to A/C, Office
Equipment and Electrical Installations).

2.

Rates of premises, computers, vehicles and furniture specified.

3.

If the asset is put to use for 180 days or more in a year, 100 % depreciation is provided
during the financial year. If the period is less than 180 days ---50 % depreciation is provided for
tax purposes.

FINACIAL STATEMENT FOR THE YEAR 2009-10

1.Cash flow
Particular
Operating activities
Amount received form policy holder
Amount received to reinsurance
Amount paid to policy holder
Amount paid as commission
Payment of employee and suppliers
Deposited with RBI
Income tax paid
Net cash flow from operating activities
Investing activities
Purchases of fix assets
Sales of fix assets
Investment
Interest income
Dividend income
Net cash flow from investing activities
Financing activities
Issue of share
Net cash flow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalent as at beginning of the year
Cash and cash equivalent as at end of the year

Particular
Liability
Share capital
Reserve fund
Credit change a/c
Credit change a/c
policy liabilities
insurance reserve
Add: Fair value change
total provision

2010

2009

70,817,804
-312,168
-12,053,422
-5,417,619
-13,207,483
0
-309,142
39,821,183
155,217,800
-217,752
5,444
-48,767,468
48,17,558
1,338,737
-42,823,481

54,747,190
-384,636
-5,414,218
-4,136,736
-15,583,363
100,00
-230,833
29,453,152
68,782,936
-581,822
3,159
-39,057,231
3,805,029
745,975
-35,081,730

1,720,000
1,720,000
-1,282,298
4,108,660

5,250,000
5,250,000
-384,578
4,493,238

2,826,362

2010

2009

19,680,000
552,892
184,435
205,087
37,666,908
027,516,164
155,217,800

17,958,180
552,892
-77,610
-296,885
29,092,419
0
-15,302,147
68,782,936

Funds
funds for provision
Surplus
Profit and loss
Total

1,490,013
1,064,831
0
6,95,56,324
216,061,966

586,395
531,970
0
5,51,83,763
117,130,297

Assets
Share holder
policy holder
Assets held to cover link liabilities

6,304,757
43,415,382
155,217,800

4,291,597
30,152,727
68,782,936

Loans
Fix assets
Cash and bank
Advance
Current asset
Provision
Net working capital
Miscellaneous expense
Other Asset
Total

40,366
1,143,777
2,826,362
4,917,758
12,28,585
187,617
4,725,082
14,664,966
0
216,610,966

30,248
1,451,346
4,108,660
5,428,699
8,820,225
208,813
508,321
11,913,122
0
117,130,297

2. RATIO ANALYSIS

(A) CURRENT RATIO

CURRENT ASSETS:
Cash and bank balances: 2,826,362
Advances and Other Assets: 4,917,758
CURRENT LIABILITIES: 12,281,585
CURRENT RATIO= 2009-10 =0.63:1
2008-09=1.08:1

Comment

Current ratio of HDFC LIFE insurance, has 0.63:1, it means it is less than 1 that
indicates firms ability to meet current obligations & greater the safety of funds of short-term
creditors. It also indicates the sound solvency of the company is lover.

(B) LIQUID RATIO

LIQUID RATIO: = 2009-10= 0.60:1
2008-09= 0.57:1

Comment
The liquid ratio of HDFC life in 2009 was 0.57 and in 2010 is .60 so increasing the liquid ratio
and company have a good liquid position over the year.

(C)Gross profit ratio

GROSS PROFIT RATIO 2009-10 =30.25 %
2008-09= 21.76%

Comment:The gross profit ratio of HDFC LIFE in 2009 was 21.76% and in 2010 is 30.25% so increasing
the gross profit of HDFE LIFE over the year and company become a strong in his financial
performance.

(D) NET PROFIT RATIO

NET PROFIT RATIO 2009-10=22.09%
2008-09 =21.58%
Comment:The net profit ratio of HDFC LIFE in 2009 was 21.58% and in 2010 is 22.09% therefore
the net profit is increasing. The company have good profit margin. The company should more
and more profit for the future.

(E)Net retention ratio

NET RETENTION RATIO 2009-10 = 99.29 %
2008-09=99.17%
Comment:The net retention ratio of HDFC LIFE in 2009 was 99.17% and in 2010 is 99.29%
therefore increasing the net retention ratio of the HDFE LIFE. So company become successful
for maintain the premium level over the year.
(F)RATIO OF EXPENSES OF MANAGEMENT
RATIO OF EXPENSES OF MANAGEMENT 2009-10 = 29.04 %

2008-09 = 39.38%
Comment:The ratio of expense of management of HDFC LIFE in 2009 was 39.38% and in 2010 is
29.07% so decreasing the management expenses over the year

(G)COMMISSION RATIO
COMMISSION RATIO = 2009-10 = 7.50 %
2008-09 =7.64%

(H)RATIO OF POLICY HOLDERS LIABILITIES TO SHAREHOLDERS FUNDS:

RATIO OF POLICY HOLDERS LIABILITIES TO SHAREHOLDERS FUNDS :
2009-10 =597.44 %
2008-09= 677.89%
(I) RETURN ON INVESTMENT
RETURN ON INVESTMENT
2009-10 = 24.86%
2008-09 =13.60%

Comment:The return on investment ratio of HDFC LIFE in 2009 was 13.60% and in 2010 is 24.86%
there increasing the return on investment over the year so company become a profitable over the
year.
(J) DEBT-EQUITY RATIO
DEBT-EQUITY RATIO =

* 100

2009-10 =1.58%
2008-09=1.25%
Comment:
The debt-equity ratio of HDFC LIFE in 2009 was 1.25% and in 2010 is 1.58% there increasing
the level of equity against long term debt.

TREND ANALYSES
Asset

2009-2010

2010-2011

2009-

2010-

6,304,757
43,415,382

4,291,597
30,152,727

2010(%)
100%
100%

2011(%)
68%
69%

155,217,800

68,782,936

100%

44%

liabilities
Loans
Fix assets
Cash and bank
Advance

40,366
1,143,777
2,826,362
4,917,758

30,248
1,451,346
4,108,660
5,428,699

100%
100%
100%
100%

73%
126%
145%
110%

Current Asset

12,28,585

8,820,225

100%

717%

Share holder
policy holder
Assets

held

to

cover

link

Provision

187,617

208,813

100%

111%

Net working capital

4,725,082

508,321

100%

10%

Miscellaneous expense

14,664,966

11,913,122

100%

81%

Other Asset

100%

Total

2,16,610,96

117,130,29

100%

5%

Asset

Liability
Liability
Share capital
Reserve fund
Credit change a/c
Credit change a/c
policy liabilities
insurance reserve
Provision for link liabilities
Add: Fair value change
total provision
Funds
funds for provision
Surplus
Profit and loss

2009-2010
19,680,000
552,892
184,435
205,087
37,666,908
0127,701,636
27,516,164
155,217,800
1,490,013
1,064,831
0
6,95,56,324

2010-2011
17,958,180
552,892
-77,610
-296,885
29,092,419
0
84,085,083
-15,302,147
68,782,936
586,395
531,970
0
5,51,83,763

2009-2010(%)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

2010-2011(%)
91%
100%
142%
42%
77%
100%
0
44%
39%
49%
100%
79%

Conclusion:According to trend analysis the hdfc life doing improvement in 2010-2011 compare to 20092010 so company is growing in following way
1). The liquid position of the company improving around 145 %
2).The increase in fixed asset is financed by issue of debenture
3).Higher improvement in current asset the compare the two year 717% are improvement in
2010-2011

COMMON SIZE STATEMENTS

Asset
Share holder
policy holder
Assets held to cover link liabilities
Loans
Fix assets
Cash and bank
Advance
Current Asset
Provision
Net working capital
Miscellaneous expense
Total

2010
4,291,597
30,152,727
68,782,936
30,248
1,451,346
4,108,660
5,428,699
8,820,225
208,813
508,321
11,913,122
117130297

2010 (%)
3.66
25.74
58.72
0.025
1.24
3.5
4.63
7.53
0.18
4.34
10.17
100

TREND ANALYSES
Share Capital
share capital
PARTICULAR
Authorised Capital
Issued Capital
Subscribed Capital
Called-up Capital

2009-10
30,000,000
19,680,000
19,680,000
19,680,000

2008-09
30,000,000
17,960,000
17,960,000
17,960,000

incre/decre
0
17,20,000
17,20,000
17,20,000

%
0
9.57
9.57
9.57

CONCLUSION:
in the year 2008-09 the Authorized share capital was 30,000,000 and at current year the
Authorized share capital are same there are no changes arise in Authorized share capital between
two year and Called-up Capital, Subscribed Capital , Issued Capital were 17,960,000 and in
current year increase by 17,20,000 so as compare to the previous year increase by 9.57 %
RESERVES AND SURPLUS
PARTICULAR
Revaluation Reserve

CONCLUSION:

2009-10
552,892

2008-09
552,892

incre/decre
0

%
0

in the year 2008-09 the Revaluation Reserve are 5,52,892 and at current year are same
there are no changes arise in the current year,

Investments Shareholders
PARTICULAR
Government Securities
Equity
Debentures / Bonds
Investment Properties
Infrastructure
Other Investments

2009-10
2,471,702
457,377
208,675
757,540
1,108,284
145,085

2008-09
2,180,149
233,783
100,531
757,540
386,899
64,797

incre/decre
291,553
223,594
108,144
0
721,385
80,288

%
13.373077
95.641685
107.57279
0
186.45305
123.90697

CONCLUSION
In the year 2008-09 the investment in Government Securities was 2180149 and at
current year are having 2471702 so increase by 291,553 and so 13.37 % are increase as compare
to previous. And Equity, Debentures / Bonds, Investment Properties, Infrastructure, Other
Investments, are increase by respectively 95.64%, 107%,0%, 186% 123%.
Working Capital
current assets
Cash
Deposit Accounts
Current Accounts

2009-10
279,148
1,340,581
1,206,633

2008-09
668,726
1,751,354
1,653,161

incre/decre
-389,578
-410,773
-446,528

%
-58.25674
-23.4546
-27.01056

current liabilities
Agents Balances
Premiums received in advance
Security Deposits
Sundry creditors

2009-10
422,567
296,400
21,441
5,078,198

2008-09
525,903
278,748
21,441
3,894,536

incre/decre
-103,336
17,652
0
1,183,662

%
-19.64925
6.3326015
0
30.392889

Claims Outstanding
Unallocated Premium

433,935
232,117

198,361
274,095

235,574
-41,978

118.76024
-15.31513

CONCLUSION:
As compared to previous year, Current Accounts are decrease by as compare to the
previous year respectively,-58%, -19%, 6.33%,0%, 30.39%, in the year 2008-09 the current asset
of cash, Deposit Accounts -23%, -27%,. And current liabilities of Agents Balances, Premiums
received in advance, Security Deposits, Sundry creditors are decrease or increase
Comparison of funds for year 2010:
Fund
Growth fund
Balance manage fund
Equity manage fund
Liquid manage fund

2009
38
32
34
28

2010
73
48
62
31

In above diagram comparison of funds performance for year 2010.

The above diagram represents the comparison of various funds. The growth fund in 2009
was 38% and at present in 2010 are 73% so increased by 35%. And second fund is balance
manage fund there was 32%in 2009 and at present jn 2010 is 48% so increase by 16%. And third
fund is equity manage fund there was in 2009 was 34% and at present in 2010 are 62% so
increase by 28%. And forth fund are liquid fund there was in 2009 was 28% and present in 2010
are 31% so increase by 4%.

Equity markets

INDICES

31-5-12

30-4-2012

1month

rate

of

1year

return

return

17,319

-6.35

-12.35

CNX 4,924

5,248

-6.17

-11.44

BSE 100

4,942

5,268

-6.19

-12.34

BSE Mid Cap

5,908

6,316

-6.46

-14.50

BSE

6,271

6,765

7.30

-23.86

BSE Sensex
S&P

16,219

rate

of

Nifty

Small

Cap

6.Processes
The process should be customer friendly in insurance industry. The speed and accuracy of
payment is of great importance. The processing method should be easy and convenient to the
customers. Installment schemes should be streamlined to cater to the ever growing demands of
the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing
large no. of customers efficiently and bring down overheads. Technology can either complement
or supplement the channels of distribution cost effectively. It can also help to improve customer
service levels. The use of data warehousing management and mining will help to find out the
profitability and potential of various customers product segments.

What is Welcome Calling to the customer?

Welcome Calling is a call made to all our new customers to ensure that the policy chosen by
them is as per requirement.

What is the objective of Welcome Calling?

Welcome Calling serves mainly 2 objectives:
First, to contact the customer as per the given contact details thereby ensuring contact ability.
Second, to verify if the customer has fully understood the important features the insurance plan
chosen and whether it suits the customer's requirement, thereby avoiding mis-sale occurrences.

The process of customer Welcome Calling of customer

A welcome call is made to the customer after the application for insurance policy has been
accepted by the company.

Before disclosing any policy related information, our Customer Service Associate (CSA) will
do a mandatory verification by asking few questions.

If the policy holder is not available, information can be shared with a third party who takes
care of the policy holder's finances, post confirmation from the third party that all the discussed
details will be shared with the Policy Holder.

Once the verification is done, the CSA will inform the customer on all the Key features of the
insurance

plan.

Once all the key features have been communicated, the CSA can also make a note of any query,
request or complaint by the customer.

If the customer is not contactable despite multiple attempts, we will send a Welcome Calling
Letter to the communication address of the customer.

Physical Distributions

Distribution is a key determinant of success for all insurance companies. Today, the nationalized
insurers have a large reach and presence in India. Building a distribution network is very
expensive and time consuming. Technology will not replace a distribution network though it will
offer advantages like better customer service. Finance companies and banks can emerge as an
attractive distribution channel for insurance in India. In Netherlands, financial services firms
provide an entire range of products including bank accounts, motor, home and life insurance and
pensions. In France, half of the life insurance sales are made through banks. In India also, banks
hope to maximize expensive existing networks by selling a range of products.
The physical evidences include signage, reports, punch lines, other tangibles, employees dress
code etc.
A. Tangibles: banks give pens, writing pads to the internal customers. Even the
passbooks,chequebooks, etc reduce the inherent intangibility of services.
B. Punch lines: punch lines or the corporate statement depict the philosophy and attitude ofthe
bank. Banks have influential punch lines to attract the customers.

CONCLUSION

Introduction
1.

It has got 3rd rank in the investment management, in year 2006 One of the largest
financial institution of

2.

India with more then 2 million satisfied customer base.

3.

The most successful and admired life insurance Company, which means that we are the
most trusted Company, the easiest to deal with, offer the best value for money, and set the
standards in the industry. In short, The most obvious choice for all
Financial analysis is important aspect of financial management. The study of financial
managementat HDFC LIFE LTD. has revealed that the current ratio was as per the standard
industrial practice but the liquidity position of the company showed an increasing trend.
Finance department

1.

The proprietary ratios shows efficient capital structure. Considering the turnover ratios,
the management having effective collection system and low investment in stocks.

2.

The Depreciation under Companies Act for Computers is 16.21 % (SLM). However, the
rate adopted by us is 25 % SLM.

3.

Machinery and Plant other than the specified 15 % (applicable to A/C, Office
Equipment and Electrical Installations).

4.

Current ratio of HDFC LIFE insurance, has 0.63:1 It also indicates the sound solvency of
the company is higher.

5.

The net profit ratio in 2009 was 21.58% and in 2010 is 22.09% therefore the net profit is
increasing. The company have good profit margin. The company should more and more profit
for the future.

6.

Issued Capital were 17,960,000 and in current year increase by 17,20,000 so as compare
to the previous year increase by 9.57 %

RECOMMENDATION AND SUGGSTION

The HDFC company should now try to identify the gap between current level of customer
service and customer expectations. Some of the strategies being recommended are as follows:

Brand Building:
HDFC is a very huge Brand in US in Insurance but in India it is not known as a Insurance
brand. So HDFC need to focus on Brand building Activities which can be done through
Advertising, Road shows, Knops, Sponsoring Events in rural & Urban Areas.

Educating the Consumers:

HDFC should take initiative to educate the consumers regarding all these aspects & take
competitive Advantage on this front as its Allocation charges are minimum in the whole Indian
Insurance Industry.

Need to Increase Market Presence:

It should make more channel partners & do business tie ups with more broking houses & should
hire marketing agencies for aggressive marketing purpose. It can also increase its Business
Units.
Concentration More On Rural Areas :
HDFC need to concentrate more towards the rural areas as 60-70% of India population is living
in rural areas and most of the people in rural areas are not insured so there is a huge potential in
the rural sector.

Product Differentiation:
Offering a product that is distinctly different from other products available in the market by
other insurance players.

More Guaranteed Plans to be Introduced:

As we know today the stock market is giving very less return even in last year the return comes
Negative so the company need to introduce some more granted plans so that customer can
invest in them and have assured return on them which ultimately is an edge in competition in
insurance sector.

Need to commence Medical claim Products and General Insurance :

There are very less which are having Medical claim products and also very less companies
providing General Insurance with Life Insurance for example ICICI , Reliance and Bajaj Allianz
so HDFC also need to come in General Insurance business so that they can compete with these
players.

Flexibility:
The companies should make their products flexible for the convenience of their customer.

Hassle Free Service:

All bureaucracy in customer interactions should be eliminated.

Proper Policy Documentation:

Wrong interpretations/ non-awareness of policy document by the customer may have serious
implications in the long term and the possibility of the same should be alleviated by the
company which leads to.
Recommendation can be use by the firm for the betterment increased of the firm after study and
analysis of project report on study and analysis of working capital. I would like to recommend.
1. Company should raise funds through short term sources for short term requirement of funds,
which comparatively economical as compare to long term funds.
2. Company should take control on debtors collection period which is major part of current
assets.
3. Company has to take control on cash balance because cash is non earning assets and
increasing cost of funds.

4. Company should reduce the inventory holding period with use of zero inventory concepts.

SUGGESTIONS:
The company should try to increase his financial performance in the future.
The company should try to increased his product cycle.
Stable Managed fund & Secure Managed Fund provide low return. but less risk in Stable
Managed fund & Secure Managed Fund.
Most of the people are not aware about HDFC STANDARD LIFE INSURANCE CO.LTD so
they have to advertise their company and their product.
HDFC LIFE INSURANCE CO.LTD focuses on the urban area so now they have to focus on
rural area also.
HDFC LIFE INSURANCE CO.LTD should try to increase awareness of their UNIT LINK
PLAN
The company should increase their distribution network.

QUESTIONNAIRE
PERSONAL DETAILS:
Name:
Mobile Number:
Adress:_______________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_______________________________
Occupation: _____________________
Age: ____________________________
1. Of the following what at present are your investment needs?
a. To build a corpus for retirement
b. To save for children education/ marriage
c. To provide for medical emergencies
d. To provide for family financial security
e. To create wealth
f. All of the above
2. Which of the following you think as investment for tax- saving?
a. Mutual funds
b. Fixed deposit
c. Insurance
d. Ppf
e. All of the above

3. Have you ever been invested in mutual funds?

a. Yes

b. No

4. Have you ever been invested in ulip insurance plans?

a. Yes

b. No

5. If you had Rs 1000/- where you prefer to invest

a. Mutual fund
b. Fixed deposit
c. Direct equity
d. Life insurance
e. Postal office deposit
6. Out of the following in which Mutual Fund you have invested?
a. HDFC
b. Tata Mutual Fund .

c. Franklin Templeton .

d. Reliance .

e. ICICI Prudential .

f. SBI .

g. Other If any ,Please Specify

7. Out of the following company which company ulip plans you have invested?
a. HDFC LIFE.
b. Tata AIG

c. BAJAJ ALLIANZE .

d. Reliance .

e. ICICI Prudential .

f. SBI LIFE.
g. Other If any ,Please Specify

8. To how much extent are you satisfied with the services offered by HDFC LIFE
regardingULIP INVESTMENT PLANS?
a) Exteremly satisfied.
b) Satisfied to the lesser extent
d) Dissatisfied to lesser extent
e) Extremely dissatisfied.

9. Do you prefer GROWTH FUND OR DIVERSIFY YOUR MONEY in various fund?

a)

growth fund

b)

diversify funds

c) Depends upon the risk bearing condition

BIBLOGRAPHY
Books Referred
1.

Maheshwari, S.N.; Financial Managemen, Principles and Practice, Sultan Chand & sons,
9th Edition 2004.

2.

Maheshwari, S.N.; Elements of Financial Management, Sultan Chand & Sons, 2003
7th Edition.

3.

Pandey, I.M.; Financial Management, Vikas Publishing House, 8th Edition, 2001.

4.

.Author:Evertt.E.AdamProduction and opration management prentice hall 5th edition

Websites References
www.hdfclife.com/
www.bimadeals.com Life Insurance Life Insurance Companies
www.myinsuranceclub.com Life Insurance Companies
www.indiancustomers.in/company/hdfc-standard-life
www.hdfclife.com/Children'sPlans/child-insurance-plans.
www.hdfclife.com/savingsplans/WholeLife