ACKNOWLEDGEMENT

.
I am highly obliged to Mr. Rahul Dutt Mudgal (Development
oIIicer, LIC Karol Bagh branch) who provided me the
opportunity Ior doing my summer training at LIC, and would
like to thank him Ior their guidance and help which had made it
possible Ior me to complete my project work successIully.
Finally, I would like to thank Dr. N.K.Kakkar (Director),
Maharaja Agrasen Institute oI Management Studies and Mrs.
Amit Gupta, my project guide at the institute, Ior their
enlightening and meticulous guidance Ior the consummation and
evaluating oI this project.
I also wish to pay my sincere regards to all my respected
teachers who helped me build a concrete platIorm beIore
sending me Ior training so that I can land out Iirmly in all
respects.

certiIicate


This is to certiIy
that project entitled 'analysis oI Iinancial statements oI
LiIe Insurance Corporation oI India submitted by Miss.
Manisha Advani (Enrolment no. - 0221471708) has been
done under my guidance and supervision in IulIillment oI the
requirement Ior the award oI Bachelor oI Business
Administration (General).
The work and analysis mentioned in this project report have
been undertaken by the candidate himselI and necessary
reIerences have been recognized and acknowledged in the text
oI the report.
Mr. Ashish thakur
(Project guide & Iaculty)

EXECUTIVE SUMMARY
Someone has greatly said that practical knowledge is Iar better
than classroom teaching. During this project I Iully realized this
and come to know about the present real world oI Insurance
sector. It includes all the activities involved in providing
insurance products to the Iinal customers. I am pleased to know
about the consumers` wants and competitors activities in the real
world oI Insurance.
The subject oI my study is to analyze Iinancial statement oI LIC
by applying various tools like ratio analysis andtrough trend
analysis. I have also done research on the balance sheet oI LIC
oI last Iive years
The report contains Iirst oI all brieI introduction about the
Iinancial statements. Then it contains the inIormation about the
company


I have also put conclusion that will tell the Iinancial position oI
the company


INTRODUCTION
Insurance is a social device where uncertain risks oI
individuals
may be combined in a group and thus made more
certain - small
periodic contributions by the individuals provide a
Iound out oI
which those who suIIer losses may be rei mbursed. In
addition to
being a means to protect onesel I, the insurance
Industry is an
eIIi cient conduit Ior the saving oI people to be
channeled towards
economic growth. In India, the Insurance Industry7 is
more than
150 years old. Today, it is monopolized by t wo PSU' s
in their
respective Iields oI li Ie and General Insurance.
However, with the
successIul passage IRDA Bi ll through both houses oI
parliament in
December 1999 the sector has been opened up to
private players.
This will provided much. Needed impetus to the
Industry and will
improve the quality oI servi ce and products and will
also increase
employment opportunities. There are still some issues
their need to
be sorted out, particularly with regard to the status oI
intermediaries as envisaged by the Insurance
Regulatory Authority

INTRODUCTION OF THE COMPANY
'LIFE INSURANCE CORPORATION OF INDIA (LIC)
LiIe Insurance Corporation oI India (LIC) was Iormed in
September, 1956, by an Act
oI Parliament, viz., LiIe Insurance Corporation Act, 1956, with
capital contribution
Irom the Government oI India. The then Finance Minister, Shri
C.D. Deshmukh,
while piloting the bill, outlined the objectives oI LIC thus to
conduct the business
with the utmost economy, and a spirit oI trusteeship; to charge
premium no higher
than warranted by strict actuarial considerations; to invest the
Iunds Ior obtaining
maximum yield Ior the' policy holders consistent with saIety oI
the capital; to render
prompt and eIIicient service to policy holders, thereby making
insurance widely
popular. Since nationalization, LIC has built up a vast network
oI 2,048 branches, 100
divisions and 7 zonal oIIices spread over the country. The LiIe
Insurance Corporation
oI India also' transacts business abroad and has oIIices in Fiji,
Mauritius and United
Kingdom. LIC is associated with joint ventures abroad in the
Iield oI insurance,
namely, Ken-India ,Assurance Company Limited, Nairobi;
United Oriental Assurance
Company Limited, Kuala Lumpur and LiIe Insurance
Corporation (International) E.C.
Bahrain. The Corporation has registered a joint venture
company in 26th December,
2000 in Katmandu, Nepal by the name oI LiIe Insurance
Corporation (Nepal) Limited
in collaboration with Vishal Group Limited, a local industrial
Group. An oII-shore
company L.I.C. (Mauritius) OII-shore Limited has also been set
up in 2001 to tap the AFRICAN insurance market
PRODUCTS OF LIC
Whole LiIe with ProIits Plan 002
Features:
This plan is mainly devised to create an estate Ior the heirs oI
the policyholder as the
plan basically provides Ior payment oI sum assured plus bonuses
on the death oI the
policyholder. However, considering the increased longevity oI
the Indian population,
the Corporation has amended the above provision, thereby proving
Ior payment oI
sum assured plus bonuses in the Iorm oI maturity claim on completion
oI age 80 years
or on expiry oI term oI 40 years Irom date oI commencement oI the
policy whichever
is later.
The premiums under the policy are payable up to age 80 years oI the
policyholder or
Ior a term oI 35 years whichever is later. II the payment oI premium
ceases aIter 3
years, a paid-up policy Ior such reduced sum assured will be
automatically secured
provided the reduced sum assured exclusive oI any attached bonus is not
less than
Rs.250/-. Such reduced paid-up policy is not entitled to participate in the
bonus
declared thereaIter but the bonuses already declared on the policy will
remain attach,
provided the policy is converted in to a paid-up policy aIter the
premiums are paid Ior
5 years.
Suitable For:
This policy is suitable Ior people oI all ages who wish to protect their
Iamilies Irom
Iinancial crises that may occur owing to thepolicyholder's premature
death
PRODUCTS OF LIC
Whole LiIe with ProIits Plan 002
Features:
Tr|s p|ar |s ra|r|y dev|sed lo creale ar eslale lor lre re|rs ol lre po||cyro|der as lre
p|ar oas|ca||y prov|des lor payrerl ol sur assured p|us ooruses or lre dealr ol lre
po||cyro|der. loWever, cors|der|rg lre |rcreased |orgev|ly ol lre lrd|ar popu|al|or,
lre Corporal|or ras arerded lre aoove prov|s|or, lrereoy prov|rg lor payrerl ol
sur assured p|us ooruses |r lre lorr ol ralur|ly c|a|r or corp|el|or ol age 80 years
or or exp|ry ol lerr ol 10 years lror dale ol corrercererl ol lre po||cy Wr|crever
|s |aler.
BENEFITS
SURVIVAL BENEFIT:
3ur assured p|us accrued ooruses ard lre lerr|ra| ooruses, |l ary; or lre
po||cyro|der alla|r|rg age 80 years or or exp|ry ol lerr ol 10 years lror lre dale ol
corrercererl ol lre po||cy Wr|crever |s |aler.
DEATH BENEFIT:
Sum assured plus accrued bonuses and the terminal bonuses, iI any, on the death oI
the policyholder are paid to his/her nominees/heirs.
ENDOWMENT WITH PROFIT PLAN - 014
FEATURES:

Moderate Premiums

High bonus

High liquidity

Savings oriented
Tr|s po||cy rol or|y ra|es prov|s|ors lor lre lar||y ol lre L|le Assured |r everl ol
r|s ear|y dealr oul a|so assures a |urp sur al a des|red age. Tre |urp sur car oe
re|r
BENEFITS
Disability BeneIit:
lr case po||cy ro|der oecores lola||y ard perrarerl|y d|sao|ed due lo ar acc|derl
oelore reacr|rg lre age ol Z0 ard lre po||cy |s |r lu|| lorce, re W||| rol oe requ|red lo
pay lurlrer prer|urs, (lre 0|sao|||ly 8erel|l |s ava||ao|e |r respecl ol lre l|rsl
Rs.20000 sur assured or aryore ||le) ard lre po||cy W||| corl|rue lo oe |r lorce.
Accident BeneIit:
8y pay|rg a sra|| exlra prer|ur ol Rs. | per Rs. 1000/- sur assured per year re or
r|s lar||y are erl|l|ed lo lre lo||oW|rg oerel|ls or dealr or perrarerl d|sao|||ly
caused oy acc|derl. Ever sluderls aoove lre age ol 18 years car ava|| ol lr|s oerel|l.
vesled lo prov|de ar arru|ly dur|rg lre rera|rder ol r|s ||le or |r ary olrer Way
cors|dered su|lao|e al lral l|re.
Insurance plans:
As |rd|v|dua|s |l |s |rrererl lo d|ller. Eacr |rd|v|dua|'s |rsurarce reeds ard
requ|rererls are d|llererl lror lral ol lre olrers. LlC's lrsurarce P|ars are a po||cy
lrlral la|| lo you |rd|v|dua||y ard g|ves lre rosl su|lao|e opl|ors lral car l|l ores'
requ|rererl


c

crapler-1

LndowemenL assurance pollcy
LndowemenL assurance pollcyllmlLed payemenL
!eevan amrlL

!eevan anand
!eevan adhar
!eevan vlshwas
RESEARCH DESIGN
Basically there are 3 types oI approaches used during the any research:
1. exploratory
2. descriptive
3.Experimental

0ur|rg lr|s researcr des criptive ard Exploratory approacr |s la|er |rlo
cors|deral|or oecause ol lre ava||ao|||ly ol re|evarl |rlorral|or lo descr|oe lre
re|al|orsr|ps oelWeer lre rar|el|rg proo|er ard lre ava||ao|e |rlorral|or


8aLlonale of pro[ecL
1he research provldes an opporLunlLy Lo a sLudenL
Lo demonsLraLe appllcaLlon of her knowledge sklll
and compeLencles requlred durlng Lhe Lechnlcal
sesslonresearch also helps Lhe sLudenL Lo devoLe
her sklll Lo analyze Lhe problem Lo suggesL
alLernaLlve soluLlon Lo evaluaLe Lhem and Lo
provlde feaslble recommendaLlons

As Lhe researcher Lhls pro[ecL help me ln
undersLandlng Lhe knowledge of flnanclal
sLaLemenLs anL lLs analyslslL wlll also help me ln
Lackllng Lhe dlfferenL problem LhaL wlll be face
durlng Lhe researcher anL aL Lhe same Llme lL wlll
helpful Lo llc employees ln knowlng Lhe flnanclal
poslLlon Lhelr lnvesLmenLLhelr problems anL
reasons for unsaLlsfacLlon

1he research ls on Lhe Loplc of ''AnAL?SlS Cl
llnAnClAL S1A1LMLn1S Cl LlC'' AlLhough l have
Llred my level besL Lo prepare Lhls reporL an error
free reporL every efforL has been made Lo offer Lhe
mosL auLhenLlcaLe poslLlon wlLh accuracy

Cb[ecLlves of sLudy
1he ma[or ob[ecLlve of sLudy of flnanclal
sLaLemenLs are
a) 8lMA8? C8!LC1lvLS

1) 1o know Lhe flnanclal poslLlon of llc

b) SLCCnuA8? C8!LC1lvLS

1)1C know Lhe Lrend ln Lhe values of
asseLs and llablllLles of flve years
2) 1C make Lhe raLlo analysls


ML1PCuCLCC?
1he researcher has Lo collecL daLa from dlfferenL sources Lo
carry on wlLh her research workLhe daLa so collecLed ls of Lwo
Lypes

1) rlmary daLa
2) Secondary daLa

1 prlmary daLa collecLlon
ln prlmary daLa collecLlon you collecL
Lhe daLa yourself uslng meLhods such as
lnLervlews and quesLlonnalresLhe key polnL
here ls LhaL Lhe daLa you collecL ls unlque Lo
you and your research and unLll you publlsh no
one else has access Lo lL

1here are many meLhods of collecLlng
prlmary daLa and Lhe maln meLhods whlch
have been used ln our sLudles ls
1quesLlonnalre
2lnLervlews

Secondary daLa collecLlon

All meLhods of daLa collecLlon
can supply quanLlLaLlve
daLa(numberssLaLlsLlcs or flnanclal)or
quallLaLlve daLa(usually words or
LexL)quanLlLaLlvedaLa may ofLen be
presenLed ln Labular or graphlcal
formsecondary daLa ls daLa LhaL has
already been collecLed by someone else
for a dlfferenL purpose Lo yoursfor
exampleLhls could mean uslng
daLa collecLed by a hoLel on lLs
cusLomers Lhrough lLs guesL hlsLory
sysLem
daLa supplled by a markeLlng
organlzaLlon
annual company reporLs
governmenL sLaLlsLlcs

1PL 1CCLS 1PA1 PAS 8LLn uSLu ln
AnAL?SlSCl 1PlS 8LSLA8CP WC8k
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