Description
Budgetary actions carried out according to a budget plan. Through the use of a budget as a standard, an organization ensures that managers are implementing its plans and objectives and that their activities are appraised by comparing their actual performance against budgeted performance. Budgets are used as a basis for rewarding or punishing managers, or perhaps for modifying future budgets and plans.
A REPORT ON (Budgetary Control System)
This report is submitted in partial fulfillment of the requirement of PGDM programme of ITM Business School, Siruseri, and Chennai. By (AYSHWARYA.V)
Institute for Technology and Management Business School Siruseri, Chennai February 2012
1
TABLE OF CONTENTS:
CONTENT ABSTRACT INTRODUCTION MAIN TEXT CONCLUSION REFERENCES
PAGE NUMBER 3 5 24 30 31
2
ABSTRACT
The topic given to me is BUDGETARY CONTROL SYSTEM. Since, we had no knowledge about the budget control system in Chola MS. The company guide was patient enough to teach and provide information regarding the topic. BUDGETORY CONTROL Budgetary control embraces all and in addition includes the science of planning the budgets themselves and utilization of such budgets to affect an overall management tool for the business planning and control. Budgetary control has therefore become an essential tool of management for controlling costs and maximizing profits. Thus, budgetary control involves the following, ? ? ? Establishment of budgets. Continuous comparison of actual with budgets for achievement of targets and placing the responsibility for failure to achieve the Budget figures. Revision of budgets in the light of changed circumstances.
“According to HOWARD: Budgetary control is a system of coordinating costs which includes the preparation of budgets, coordinating the work of the department and establishing responsibilities, comparing the actual performance with the budgeted and acting upon results to achieve maximum profitability.” Budgetary control is the process of ascertaining several budgeted figures for the future of a business enterprise and then making comparison of these budgeted figures with the actual results for finding out discrepancies, if any. The comparison of budgeted and actual figures will allow the management to take curative actions at a proper time.
3
Budgetary control can be defined as, “A means of achieving the financial control of an entity whereby the actual results for a defined period of time are compared with the budgeted results, any differences (or variances) being noted, and some corrective action taken to bring the actual activities back into line with the budgeted ones if such variances need to be dealt with.” The budgetary control is a continuous process that helps in planning, coordination and controlling of business decisions. A budget is a means and budgetary control is the end-result. The budgetary control system assists an organization in setting up the goals and efforts are made for its achievements. It enables economies in the enterprise. The main objectives of budgetary control are as follows: It is essential for planning, controlling and also acts as an instrument of coordination. It coordinates the actions of various departments. Budgetary control helps in eliminating wastes and raises the profitability position of a business enterprise. It makes a prediction about capital expenditure for future. It helps in amending deviations from the established standards.
It centralizes the control system. Budgetary control operates various cost centers and departments with efficiency and
economy.
Budgetary control compels business administration to think about the future that is most likely the crucial characteristic of this system. It coerces management to look into future, to outline thorough plans for attaining the objectives for each department, operation and each manager, to predict and grant the organization purpose and direction.
NEED FOR THE STUDY: To predict the future financial requirements for Business Development. The main aim of the study was to control various expenditure and coordination and necessary plans for future study. Thus to study the existing budget and then to compare the budget with the actual and to find out the deviations and recommend the necessary remedial actions.
4
SCOPE FOR THE STUDY: The scope of the study is entitled towards analyzing the various budgets and budgetary controls of Organization. This study encloses budgets of various departments of the organization and their budgetary control methods. In the study various departmental budgets were taken for the study, which includes HR, Finance, Marketing and General Administration. Mainly they are compared with their actual and variance was found in order to find out the effectiveness of the budgets.
INTRODUCTION
INDUSTRY PROFILE WHAT IS INSURANCE Insurance is a co-operative work or it is a sharing device. The business of insurance is related to the protection of the economic values of assets. ABOUT THE INSURANCE 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. The benefits may be an income or something else. It is benefit because it meets some of his needs. The business of insurance started with marine business. Traders, who used to gather in the Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1853 in England. Sales promotions are the most generally conceived as having three components. 1. Cognitive – a person’s belief about an object. 2. Effective – a person’s feeling of like or dislike concerning on object.
5
3. Behavioral – action tendencies towards an object.
INSURANCE SECTOR IN INDIA The life of human beings and the assets that they possess during their lifetime are continually exposed to loss or damage. Uncertainty in life, in commerce and in industry is a fact. People are aware of this uncertainty and hence show a strong desire for security board for their lives and possessions. They take all precautions possible to avoid or prevent the consequences of risk. In spite of all precautions, accidents do occur. This problem of risk can be minimized to some extent but it cannot be eliminated altogether. Insurance is a contract whereby insurers pay for the financial losses suffered by the insured because of unforeseen events and as are turn for the payment of a premium by the insured. The concept of insurance is not a recent phenomenon. Earlier, insurance was cooperative and voluntary in nature, people used to form different groups to share the loss among them, in case of a particular risk. Each member used to contribute some amount to a common fund to meet unforeseen losses. The term risk is very important in insurance transactions, generally, people thing of risk as exposure to danger but for the purpose of insurance, risk means uncertainty about loss in financial terms. From the point of view of risk, insurance can be broadly divided into four categories-personally insurance, property insurance, liability insurance and fidelity insurance(Fig17.3). Personal insurance is the sort of insurance which is purely personal in nature. Its scope covers only life. Personal insurance is further classified into three branches: life insurance, accident insurance and health insurance. Life insurance is a contract providing for payment of a sum of money to the person assured (or) failing him, to the person entitled to receive the same in the case of some eventuality. Personal accident insurance is a supplement to life insurance it proved an ideal protection against death or disability. Property insurance provides protection to the property of individual’s organizations. It is further classified into branches like marine, automobile, fire, crop, theft, cattle and machinery. Marine insurance deals with insurance of vessel of any descriptions, including cargo, freight and other interests in relation to such vessels. Automobile insurance mitigates the financial hardship caused to the person in case of
6
any accident. The Motor Vehicle Act, 1939 has made it compulsory for motorists to insure against the risk of liability to third parties. Fire insurance compensates for lose caused by fire. Crop insurance insures all crops against all risks of loss of damage. Cattle insurance refers to the insurance of horses and cattle. The insurance provides cover against death of animals such as bulls, buffalos, cows and heifers, arising as a result of accidents or disease, as the case may be. Liability insurance covers risks of accidental death, disability, lose by fires, flood,
earthquakes, and such risks where loses are results of natural or physical causes. It consists of third party insurance, employees insurance, and motor insurance. Third party provides indemnity to the insured against legal liability on the event of accidental bodily injury to the person and/ or the accidental direct damage to the property to of third parties, during the period of insurance. Employee liability policy protects the employees against their legal liability to their employees arising out of and in the course of employment. This liability may arise under The Workmen Compensation Act, 1923, Fatal Accidents Act, 1855, and/ or at common law. Motor insurance mitigates the financial hardship caused to persons and vehicles. Reinsurance is an arrangement whereby an original insurer who has insured a risk against with another insurer in order to reduce his own liability. The general insurance in India was nationalized in 1971 and a government company known as the General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972 with effect from January 1, 1974, the rest while 107 Indian and foreign insurers, operation in the country prior to nationalization, were grouped into four operating companies, namely (1)National Insurance Company Limited (2) New India Assurance Company Limited (3) Oriental Insurance Company Limited and (4) United India Insurance Company Limited. The four subsidiaries of GIC operate all over the country, competing with one another and underwriting various classes of general insurance including reinsurance, except for aviation insurance of national airlines and crop insurance, handled by the GIC.
7
HISTORY OF INSURANCE The roots of insurance might be traced to Babylonia, where traders were encouraged to assume the risks of the caravan trade through loans that were repaid (with interest) only after the goods had arrived safely a practice resembling bottomry and given legal force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a similar system to their sea borne commerce. The Romans used burial clubs as a form of life insurance, providing funeral expenses for members and later payments to the survivors. With the growth of towns and trade in Europe, the medieval guilds undertook to protect their members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to provide decent burial and support in sickness and poverty. By the middle of the 14th cent., as evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance was practically universal among the maritime nations of Europe. In London, Lloyd's Coffee House (1688) was a place where merchants, shipowners, and underwriters met to transact business. By the end of the 18th century. Lloyd's had progressed into one of the first modem insurance companies. In 1693 the astronomer Edmond Halley constructed the first mortality table, based on the statistical laws of mortality and compound interest. The table, corrected (1756) by Joseph Dodson, made it possible to scale the premium rate to age; previously the rate had been the same for all ages. Insurance developed rapidly with the growth of British commerce in the 17th and 18th century. Prior to the formation of corporations devoted solely to the business of writing insurance, policies were signed by a number of individuals, each of whom wrote his name and the amount of risk he was assuming underneath the insurance proposal, hence the term underwriter. The first stock companies to engage in insurance were chartered in England in 1720,and in 1735, the first insurance company in the American colonies was founded at Charleston, S.C. Fire insurance corporations were formed in New York City (1787) and in Philadelphia (1794). The Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance corporation in America, for the benefit of Presbyterian ministers and their dependents. After 1840, with the decline of religious prejudice against the practice, life insurance entered a boom period. In the 1830s the practice of classifying risks was begun. The New York fire of 1835 called attention to the need for adequate reserves to meet unexpectedly large losses; Massachusetts
8
was the first state to require companies by law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly nature of fires in structurally dense modem cities. Reinsurance, whereby losses are distributed among many companies, was devised to meet such situations and is now common in other lines of insurance. The workmen's Compensation Act of 1897 in Britain required employers to insure their employees against industrial accidents. Public liability insurance, fostered by legislation, made its appearance in the 1880s; it attained major importance with the advent of the automobile. In the 19th century, many friendly or benefit societies were founded to insure the life and health of their members, and many fraternal orders were created to provide low-cost, members-only insurance. Fraternal orders continue to provide insurance coverage, as do most labor organizations. Many employers sponsor group insurance policies for their employees; such policies generally include not only life insurance, but sickness and accident benefits and old-age pensions, and the employees usually contribute a certain percentage of the premium. Since the late 19th century, there has been a growing tendency for the state to enter the field of insurance, especially with respect to safeguarding workers against sickness and disability, either temporary or permanent, destitute old age, and unemployment. The U.S. government has also experimented with various types of crop insurance, a landmark in this field being the Federal Crop Insurance Act of 1938. In World War II the government provided life insurance for members of the armed forces; since then it has provided other forms of insurance such as pensions for veterans and for government employees.
General Insurance Companies There are many types of General Insurance Companies in India, which offer you a kind of security against possible threats and damages to your assets or properties to help you reduce risk factor by fighting off financial losses so that you can lead a happy and joyful life with your family. However, it will be better to start with what do we mean by General Insurance basically, before talking about the companies that deal with such products and services.
9
About the General insurance Our life is fraught with many risks, some known and some not so known. Most of the risks lead us to financial losses. By availing insurance products and services we not only prepare ourselves to fight off financial losses but also alleviate tension and stress. It can be said that Insurance is instrumental in reducing risk factors. We pay premiums to an insurance company and in return they assume responsibility to compensate for our monetary loss.
There are two broad categories of insurance policies including human life insurance and general or non-life insurance. General Insurance provides us with coverage against property damages, thefts, accidents, illness and such others.
Types of General Insurance Most of the General Insurance Companies provide a wide range of insurance products and services. Some of these can be classified as follows: Car Insurance Home Insurance Travel Insurance Private Medical Insurance Illness Insurance Long-term care Insurance Accident Insurance
10
Key Factors of General Insurance While buying a particular general insurance, you need to analyze certain angles to make sure that it would cater to your requirements to its fullest capacity. These angles or key factors are: A suitable product or service that matches your particular need Cost of the insurance product Flexibility of the product or services Terms and policies of the product You need to know well what will happen if you fail to make a payment or want to drop the service or switch it with any other. You must also be aware about the terms and policies of the insurance to know when you can expect a pay-out or does it have any restriction.
Benefits of General Insurance On availing general insurance, you can fight off financial losses against your assets and belongings. You can insure your as well as your family member's health by opting for personal accident policies or medical insurance. These policies prove hugely beneficial in case of sudden occurrence of any accidents.
GENERAL INSURANCE COMPANIES IN INIDA
Triton Insurance Company of Calcutta was the first general insurance company in India to establish its shop here. After this, many other companies forayed into the insurance sector of India and came up with innovative general insurance or non-life insurance policies to help customers reduce financial losses.
11
Some of the most trusted non-life insurance companies in India are: Birla Sun Life Insurance Company Om Kotak Mahindra Life Insurance Company ING Vysya Life Insurance Co. Ltd Max Life Insurance Co. Ltd HDFC Standard Life Insurance Metlife Insurance Sahara India Life Insurance Cholamandalam MS General Insurance ICICI Lombard Tata AIG Insurance SBI Life Insurance
The insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. With the establishment of the Oriental Life Insurance Company in Kolkata, the business of Indian life insurance started in the year 1818.
12
IMPORTANT MILESTONES IN THE INDIAN LIFE INSURANCE BUSINES 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business. 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from the Government of India. The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British.
IMPORTANT MILESTONES IN THE INDIAN GENERAL INSURANCE BUSINESS. 1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of its type to transact all general insurance business. 1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct for guaranteeing fair conduct and sound business patterns. 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India. It was with effect from 1st January 1973. 107 insurers integrated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company.
13
The general insurance industry in India is on Moody’s expectations for steady fundamental credit conditions in the sector over the next 12-18 months. With the Indian economy forecast to grow at 7.5% in 2008 and given rising income levels and higher risk awareness among insured, the country’s insurers are optimistic about demand for their products. However, intense competition from new entrants, deregulation and a moderation in returns from the equities market will pressure pricing and ultimately short-term profitability. At the same time, despite rising inflation and a severe correction in the stock market (the key Sensex index fell 26% in 1Q2008), the prevailing view in Asia is that while China and India are not insulated from the credit crisis afflicting the US and EU, domestic demand is strong enough to support GDP growth1. Being less export dependent, India is also less vulnerable than some of its neighbors. Rising income levels, low penetration for most consumer products, availability of financing and changes in lifestyles/ aspirations are likely to sustain consumer demand over the next few years. In the short term, the focus on infrastructure development will keep the economy going, even if the tightening in credit leads to a slowdown in consumer spending.
Regulatory Environment Impact of Regulation – Emphasis on Policyholder Protection IRDA was set up with introduction of the IRDA Act in 1999. Its initial purpose was to bring about general discipline to the industry. It is responsible for protecting the interest of policyholders and promoting efficiency in the insurance business. To ensure their stability, transparency and financial strength, new entrants are subject to rigorous scrutiny and the conduct of their business is closely monitored, particularly in relation to capital adequacy and prudent investment policies. The regulatory environment to date has attracted many insurers whose domestic partners are leaders in their chosen fields and their foreign counterparts are all well-established with considerable experience in developed and emerging markets. The regulator has laid down investment guidelines that limit exposure in certain class of assets and also sets threshold limits for some assets. At the moment, insurers have to invest a minimum 30% in government securities, in contrast to some of the more mature markets like the US and Australia, which do not have such restrictions.
14
Compliance with these relatively restrictive guidelines could limit insurers’ ability to diversify and build optimal portfolios. The guidelines also stipulate a minimum 10% investment in the social and infrastructure sector. The investment in un-approved securities has been limited to 25% of total investment books. General insurers must maintain a solvency ratio (available solvency margin/required solvency margin) of 1.5 times, calculated based on net premium earned and net claims incurred in various segments. Public sector entities have maintained comfor TABLEsolvency margins, supported by their strong investment portfolios and capitalizations. The private players, being in a growth phase, may require capital infusions from time to time to maintain their solvency requirements. The Indian insurance regulator has set the minimum capital required at a level to ensure that all insurers -- especially the start-ups -- have enough funds to meet their claim obligations and to limit their overall writings to the amounts supported by their capital bases. The need to manage capital to comply with IRDA’s solvency margin will induce insurers to be more risk conscious when taking on new business. To ensure an orderly transition towards a deregulated insurance market and risk-based pricing, IRDA has enacted enabling legislation and issued guidelines to de-tariff various segments. De-tariffing -- introduced in January 2007 -- has been well accepted and corrections to prices in profi TABLElines have been dramatic and have noticeably impacted premium growth rates. In fact, the discounting has been so extreme that the regulator intervened in September 2007 and capped maximum discounts at 52.5%.
Three Phases of De-Tariffing India’s general insurance industry has undergone de-tariffing in three phases: ? 1994 -- marine cargo, personal accident, health, banker liability and aviation. ? 2005-06 -- marine hull segment. ? 2007 -- fire, engineering and motor own damage (OD). However, the de-tariffing did not immediately allow for free pricing. Instead, insurers were required to follow the
15
“file and use” method, whereby they were expected to file a charter of proposed rates, which was then approved by IRDA. The restrictions on price discounts during the initial periods were intended to ensure orderly price adjustments. They were removed in January 2008. The only segment that remains under a tariff regime is the third party motor business, although there has been a large upward revision in this area’s premium rates by regulators in recent times. Moreover, commercial third party motor business, which has traditionally contributed to adverse claims ratios, has been moved to a common pool, resulting in loss sharing.
General Insurance Industry Outlook Market Overview India is the 5th largest market in Asia by premium, following Japan, Korea, China and Taiwan. The country is geographically large and has the world’s 2nd largest popul ation -1.13 billion in 2007 – but it also has one of the lowest penetration rates for property and casualty insurance in Asia in terms of premium as a percentage of GDP. This situation reflects the fact that India’s insurance market is still in its infancy, meaning good growth potential. Even though the economy is expected to slow, it has sufficient momentum to maintain an impressive rate of growth when compared to the more advanced economies. Against the backdrop of rising income levels, insurers operating in a now deregulated environment will be able to expand product lines to cater to the demand for more customized Indian General Insurance Industry Outlook Private players will continue to capture market share at the expense of public enterprises on a mix of aggressive distribution and service. Having penetrated the corporate segment in the past, most private insurers now seek to grow their retail books. Furthermore, the number of private insurers is expected to grow as various foreign companies have announced intentions to establish joint ventures. Given the low level of penetration in some segments, this trend towards foreign participation is likely to continue. Rate reductions in the recently de-tariff corporate portfolio (fire & engineering) will impact premium growth, but this outcome will be offset by greater sales of existing and new products.
16
The formation of a third party motor pool, where all general insurers are required to participate based on the size of their overall market shares, will reduce the underwriting burden on public entities. The claims ratio for the segment is likely to improve in the medium term as premium rates for the third party motor pool have also climbed. Although public entities have sustained consistent underwriting losses on some product lines, in particular for third party motor business, their investment income and gains have more than offset their underwriting losses and helped them achieve solvency margins. With the regulatory environment in India, it generally ensures that insurers adopt sound underwriting, valuation and investment practices, while protecting the interests of policyholders. At the same time, the environment will undergo reform and modernization.
Market Place – Moving Quickly The Indian insurance sector is rapidly moving towards international standards of free (riskbased) market pricing and new/innovative product offerings. Big changes have occurred over the last seven years, during which the sector was opened to private participation, but with foreign direct investment (FDI) capped at 26%. In line with forecasts for a continuation of solid growth and strong domestic demand, the number of insurers in the private sector will keep growing. Major foreign players see opportunities to increase both volumes and types of products. With the regulator possibly lifting the ceiling on foreign ownership to 49%, the capacities of domestic partners would no longer constrain capital levels for joint ventures. Until 2000, the general insurance sector had only four public sector players, formed after the nationalization of 107 general insurers. The public enterprises – Oriental Insurance Company of India (OIC), National Insurance Company of India (NIC), New India Assurance Company of India (NIA) and United Insurance Company of India (UII) -- were located in Delhi, Kolkata, Mumbai and Chennai respectively. They primarily focused on their immediate regions and there was little competition, leading to a near monopolistic environment.
17
1.2.6.4 Private Sector’s Growing Influence The private sector has been steadily growing market share despite the fact that public sector companies have been around for a lot longer. The private insurers enjoy considerable operational flexibility, whereas the public sector companies have been constrained by their traditions and inability to innovate. 1.2.6.5 Market Share – Redistribution Due to the effectiveness of private marketing strategies, the market share of public insurers has consistently declined. Chart 4 depicts the trend over the last five years. Given a faster growth rate, the market share of the private sector is catching that of the public sector and the two will likely converge over the medium term. In the past, private insurers had aggressively targeted the more profi TABLE(and tariffed) corporate fire and engineering businesses by combining them with discounted offers on de-tariffed products, for example, personal accident & health, marine cargo and hulls. Aggressive pricing capture a greater share of large corporate accounts
18
COMPANY PROFILE
Cholamandalam MS General Insurance Company Ltd. is a Joint Venture between the USD 3 billion Murugappa Group, one of India’s leading business conglomerates and Mitsui Sumitomo Insurance Company Limited, which is part of the Mitsui Sumitomo Insurance Group of Japan, the largest General Insurance Company in Japan and 5th largest insurance group globally. Chola MS offers a wide range of products that include Accident, Engineering, Health, Liability and Marine, Motor property, Travel and Rural insurance for individuals, SME’s and the corporate sector. It achieved Rs. 685 crores Gross Written Premium (GWP)
mark for 2008-09. Having posted a remarkable growth of 31% year-on-year, we have been one of the fastest growing General Insurance companies for the previous many quarters. We have a network of 113 branches across the country, and are represented by more than 7000 agents. It offer well-integrated operational capabilities to ensure the smooth performance of delivery like strong underwriting, tie-ups with global reinsurers, fast-track claims settlement and cash-free settlement for Health Insurance. With exposure to various industry sectors and services, Chola MS is fully equipped to provide world class customer service such as centralized policy issuance, renewal management through phone. Total Risk Management Solutions - Advantage Chola MS It offer a unique combination of efficient insurance services and innovative risk management consultancy to our customers - Total Risk Management solutions. Our group company, Cholamandalam MS Risk Services offers consultancy in the area of risk identification, assessment and suggesting risk control and mitigation measures alongside the Insurance support services. This ensures long-term business continuity for all our corporate customers. Adding another feather to our cap, Cholamandalam MS Risk Services has won the prestigious “Risk Manager of the Year 2007” at the 11th Asian Insurance Industry Awards.
19
ABOUT MURUGAPPA GROUP
The USD 3 billion Murugappa Group is today one of the country's biggest industrial houses. The Group's business philosophy is inspired by this couplet from the ancient Indian treatise on wealth creation and governance, the Arthashastra: "The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." Conducting business by a clear set of values and beliefs, the Group has observed very high standards of ethics and transparency. Its belief in organizational renewal has allowed the Group to adapt itself to changing economic contexts and grow from strength. Headquartered in Chennai, the 29 companies of the group have manufacturing facilities spread across 13 states in India. They are the market leaders in India across a wide business spectrum including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals. Some of the country's bestknown brands like BSA and Hercules in bicycles, Parrys Spirulina and Parrys Beta Carotene in nutraceuticals, Ballmaster and Ajax in abrasives, Gromor and Paramfos in fertilisers, and many more come from the Murugappa Group. Thefosters organization an environment of professionalism and has a workforce of over 32,000 employees. as one of the fastest growing diversified business groups in India. Mitsui Sumitomo The Mitsui Sumitomo Insurance Group (MSIG) is one of the most innovative and forward thinking insurers in the market today. It is the largest Insurance Group in Japan, with a Net Written Premium (NWP) of 12.64 billion USD in 2008. The Company is the 5th largest insurance group globally and has 63 sales bases across 39 countries. MSIG is highly acknowledged for its proven expertise in Property and Marine risks. It has been listed as 10th amongst the World’s Most Admired Property & Casualty Insurance Companies across the world by the prestigious Forbes magazine. It was awarded the “General Insurance Company
20
of the Year” Award in 2005 at the 9th Asia Insurance Industry Award ceremony held in Singapore. Cholamandalam MS Vision “We bring peace of mind to our clients through protection from financial risks” In essence Peace of Mind means the following: Hassle-free acceptance of proposal, issuance of policy, processing of endorsements and renewals Settlement of valid claims with empathy Strong commitment to customer service Advising risk management practices and techniques resulting in minimizing claims In short, our vision is to help our clients lead happy wholesome lives and at the same time be by their side to provide financial support in their hour of need. Chola MS Core Values Our value system revolves around being an ever-evolving organization, dedicated to bringing quality into the lives of our consumers as well as enriching our employees, by providing opportunities for their growth and development in a healthy, respec TABLEatmosphere. It will be a customer-centric organization It will be known to be ethical, fair and transparent It will strive to be innovative and responsive in all that we do It will continually seek avenues of profi TABLEgrowth It will ensure a congenial and empowered work environment to our employees while providing opportunities for their learning, teamwork and growth Management Team
21
The energetic and vibrant family of 700 Cholamandalam MS employees across the country are responsible for the smooth and successful running of the organisation. This dynamic team is spearheaded by Mr. S S Gopalarathnam, Managing Director and his distinguished team Yu Kitai – Whole time Director Shivakumar Shankar – Senior Vice President (Retail Insurance) M Subramanian – Senior Vice President (Commercial Insurance) V Suryanarayanan – Senior Vice President (Finance) R Chandrasekaran – Senior Vice President (Underwriting & Reinsurance) Sundar V – Vice President (IT) Raymund Lobo – Vice President (HR) R Suresh – Vice President – Claims A Prabhakaran – Vice President (Operations) Together, we strive – in search of newer heights and greater accomplishments. About Chola MS Risk Services Cholamandalam MS Risk Services , our group company, offers consultancy in the area of risk identification, assessment and suggesting risk control and mitigation measures alongside the Insurance support services. Chola MS Risk has successfully executed over 1350 consulting assignments across 35 sectors (from Oil and Gas to Telecom) in India & abroad, and is accredited as the only Risk Management Company in Asia to be recognized by oil giants. Chola MS Risk Services also pioneered the use of thermal imaging for electrical hot spot identification in India. Cholamandalam MS Risk Services’ expertise can be broadly classified into the following categories: ? Electrical Risk Management ? Industrial Safety Management ? Process Risk Management ? Environmental Risk Management
22
? Insurance Support Services ? Motor Insurance ? A Comprehensive Motor Insurance Cover in addition to the mandatory third-party cover also protects the car owner from financial losses,
Travel - Individual Travelling on business or pleasure? Whether it’s education, employment, meeting your loved ones or just taking a break, the Chola MS Travel Insurance makes your journey hassle-free. With extensive benefits that cover any eventuality you might face, our Travel Insurance is always right by your side. Every inch of the way.
1.3.9 Home – individual Chola MS home insurance helps to protect it and ensure that its taken very good care of. With its comprehensive covers and benefits. The Chola MS home insurance offers coverage for the building and the contents within.
1.3.10Corporate – Health In today’s frenetic pace of work, it is only fair on our part to keep the employees’ minds free of worries about health and safety on a daily basis, because an employees’well -being reflects multi-fold on that of the organisation. Investing in Cholamandalam MS Health Insurance helps them work and grow in your organisation, without you having to worry consultancy about their health and well-being or that of their families.
1.3.11 Property insurance This policy offers valuable protection to an individuals or business from damage or loss of property due to the commitment of some type of crime. This include ]s losses that are incurred
23
due to the theft of physical property, loss of money while in transit or safe custody, losses incurred due to fraud actions by the employees of an organisation, or damage to valuables such as cameras, laptops, and mobiles, and phones.
1.3.12 Liability insurance Whether small or large, every business comes with plenty of responsibility and accountability. It protects you and your business against the risk of becoming legally liable to pay damage to third parties due to various legal implications.
1.3.13Commercial claims It professionally and ethically driven to understand your loss and be with customer need. It try to keep the processes as simple as possible and closely work with you every step of the way.
1.3.14 Health insurance It offer affordable and customized family floater health insurance cover to rural population of the country through various channels, for instance MFIs, and also organization involved in Financial inclusions. It provide medical claims to the customer for various decease and for general medical facility either for the individual or for family.
24
SYNOPSIS BUDGET Budget inclusive list of proposed expenditures and expected receipts of any person, enterprise, or government for a specified period, usually one year. Budget estimates are based on the expenditures and receipts of a similar previous period, modified by any expected changes. The governmental budget originated during the late 18th century in England. A budget is a detailed plan of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies. It acts as a business barometer as it is a complete program of activities of the business for the period covered. Budgets are nothing but the expressions largely in financial terms of management’s plans for operating and financing the enterprises during specific period of time. The essential of a budget in an organization includes, 1. It is prepared in advance and is based on a future plan of actions. 2. It relates to a future period and is based on objectives to be attained. 3. It is a statement expressed in monetary and or physical units prepared for the implementation of policy formulated by the management.
“According to J.G BLOCKER: The budget is a detailed schedule of the proposed combination of the various factors of production which the management deems to be the most profi TABLEfor the ensuring period”. “According to GROWN AND HOWARD: The budget is a predetermined statement of management policy which provides a standard for comparison with results actually achieved.”
25
BUDGETORY CONTROL Budgetary control embraces all and in addition includes the science of planning the budgets themselves and utilization of such budgets to effect an overall management tool for the business planning and control. Budgetary control has therefore become an essential tool of management for controlling costs and maximizing profits. Thus, budgetary control involves the following, ? ? ? Establishment of budgets. Continuous comparison of actual with budgets for achievement of targets and placing the responsibility for failure to achieve the Budget figures. Revision of budgets in the light of changed circumstances.
“According to HOWARD: Budgetary control is a system of coordinating costs which includes the preparation of budgets, coordinating the work of the department and establishing responsibilities, comparing the actual performance with the budgeted and acting upon results to achieve maximum profitability.” Budgetary control is the process of ascertaining several budgeted figures for the future of a business enterprise and then making comparison of these budgeted figures with the actual results for finding out discrepancies, if any. The comparison of budgeted and actual figures will allow the management to take curative actions at a proper time. Budgetary control can be defined as, “A means of achieving the financial control of an entity whereby the actual results for a defined period of time are compared with the budgeted results, any differences (or variances) being noted, and some corrective action taken to bring the actual activities back into line with the budgeted ones if such variances n eed to be dealt with.” The budgetary control is a continuous process that helps in planning, coordination and controlling of business decisions. A budget is a means and budgetary control is the end-result. The budgetary control system assists an organization in setting up the goals and efforts are made for its achievements. It enables economies in the enterprise.
26
The main objectives of budgetary control are as follows: It is essential for planning, controlling and also acts as an instrument of coordination. It coordinates the actions of various departments. Budgetary control helps in eliminating wastes and raises the profitability position of a business enterprise. It makes a prediction about capital expenditure for future. It helps in amending deviations from the established standards.
It centralizes the control system. Budgetary control operates various cost centers and departments with efficiency and
economy.
Budgetary control compels business administration to think about the future that is most likely the crucial characteristic of this system. It coerces management to look into future, to outline thorough plans for attaining the objectives for each department, operation and each manager, to predict and grant the organization purpose and direction.
OBJECTIVES Primary Objective: ? To Study the effectiveness of budgetary control system in the organization. ? To analyze the Trend analysis for the next year.
Secondary Objective: ? To analyze the benefits of budgetary control system. ? To analyze and identify the short comings in the system. ? To analyze and measure the deviation.
27
LIMITATION OF THE STUDY
Limitations are as such that ? The study was limited only for the period of five years. ? Time was considered as major constraint. ? Only certain department’s budgets were taken for the study (HR, Finance, Marketing and General Administration.)
PROPOSED METHODOLOGY
Research involves scientific and inductive thinking and promotes the development of logical habits of thinking and organization. Research also makes its own contribution to the existing stock of knowledge, enabling its advancement Research Design A research design is the specification of the methods and procedures for acquiring the information needed to structure or solve the problems. Its overall operation pattern or framework of the project that stipulates what information is to be collected. Which sources and what procedures. The researcher used descriptive research design for the research study. Research design is a statement or specification of procedures for collecting and analyzing the information required for the solution of some specific problem. It provides scientific framework for conducting source investigations. “According to Clifford Woody,” research is defining and redefining problems, formulating hypothesis, collecting, organizing and evaluating and at last carefully testing the conclusion to determine whether they fit the formulated hypothesis”.
28
Analytical Design The research has to use the factors or information already available and analyze the facts to make critical evaluation of the material. Data Collection Data refers to information or facts. There are two types of data available, they mainly includes, Primary data Secondary data. Primary Data: In this research study the primary data is collected through discussion with the senior finance staff of the company. Secondary Data: Secondary data means the data that are already available in the organization. The researcher has to look into various sources for the data from where he can obtain data. This can be either published or unpublished (Magazines, Journals, books, Public records, historical documents etc.) As the study involves use of secondary data such as budget of various departments in the organization.
Tools Used: ? ? ? Simple percentage Analysis Trend analysis Correlation analysis
29
Trend Analysis: Forecasting technique that relies primarily on historical time series data to predict the future. The analysis involves searching for a right trend equation that will suitably describe the trend of the data series.
Correlation Analysis: The correlation analysis refers to the technique used in measuring to the closeness of the relationship between the variable. ? ? ? Determining whether a relation exists and, it if does, measuring it. When r = +1 it means perfect positive correlation between the variables. When r = -1 it means perfect negative correlation between the variables.
FINDINGS FINANCE –DEPARTMENT ? The Variance in the finance department is 5.64% in the year (2005-2006). ? But in the year (2006-2007) the actual value is less than the budget value. The finance Department. has controlled its expenses. ? The Variance in the finance department has increased to 14.07 % in the year (2008-09) when compared 12.28% decreased in the previous year (2007-08). ? The Variance in the finance department has reduced to 11.75% in the year (2009-10) when compared 14.07% in the previous year (2008-09). ? During the year (2008-09) the bank expenses of finance department decrease of 10.35%. When compared to the year (2007-08) where there is a increase of 3.54% in the bank expenses when compared to the budget. ? During the year (2009-10) the bank expenses of finance department as a increase of 5.42%. When compared to the year (2008-09) where there is a decrease of 10.35% in the bank expenses when compared to the budget.
30
? During the year (2008-09) the auditing expenses as a decrease of 9.20% when compared to the year (2007-08) where there is a increase of 43.82% when compared to the budget. ? During the year (2009-10) the auditing expenses as an increase of 11.1% when compared to the year (2008-09) where there is a decrease of 9.2% when compared to the budget. ? The coefficient of correlation is 0.9644. it shows the variation is normal. I am doing my research on other departments currently.
31
CONCLUSION
The organization is having a good brand name among the customers if the company controls the expenses and uses the funds effectively it will help the company to attract new customers. It widens the market for the business of the company thus the project helps to control various problems associated with budget. The company has to analyze the past record before preparing the budget. And discuss with the experts. ? ? ? Need Increase the effective decision Fund towards future maintenance can be reduce The Knowledge of Budgetary Control should be educating to the department.
SCHEDULE Research till March 5th 2012 and Analysis till March 15th 2012
REFERENCES CHOLAMANDALAM MS GENERAL INSURANCE GOOGLE
32
doc_438730946.pdf
Budgetary actions carried out according to a budget plan. Through the use of a budget as a standard, an organization ensures that managers are implementing its plans and objectives and that their activities are appraised by comparing their actual performance against budgeted performance. Budgets are used as a basis for rewarding or punishing managers, or perhaps for modifying future budgets and plans.
A REPORT ON (Budgetary Control System)
This report is submitted in partial fulfillment of the requirement of PGDM programme of ITM Business School, Siruseri, and Chennai. By (AYSHWARYA.V)
Institute for Technology and Management Business School Siruseri, Chennai February 2012
1
TABLE OF CONTENTS:
CONTENT ABSTRACT INTRODUCTION MAIN TEXT CONCLUSION REFERENCES
PAGE NUMBER 3 5 24 30 31
2
ABSTRACT
The topic given to me is BUDGETARY CONTROL SYSTEM. Since, we had no knowledge about the budget control system in Chola MS. The company guide was patient enough to teach and provide information regarding the topic. BUDGETORY CONTROL Budgetary control embraces all and in addition includes the science of planning the budgets themselves and utilization of such budgets to affect an overall management tool for the business planning and control. Budgetary control has therefore become an essential tool of management for controlling costs and maximizing profits. Thus, budgetary control involves the following, ? ? ? Establishment of budgets. Continuous comparison of actual with budgets for achievement of targets and placing the responsibility for failure to achieve the Budget figures. Revision of budgets in the light of changed circumstances.
“According to HOWARD: Budgetary control is a system of coordinating costs which includes the preparation of budgets, coordinating the work of the department and establishing responsibilities, comparing the actual performance with the budgeted and acting upon results to achieve maximum profitability.” Budgetary control is the process of ascertaining several budgeted figures for the future of a business enterprise and then making comparison of these budgeted figures with the actual results for finding out discrepancies, if any. The comparison of budgeted and actual figures will allow the management to take curative actions at a proper time.
3
Budgetary control can be defined as, “A means of achieving the financial control of an entity whereby the actual results for a defined period of time are compared with the budgeted results, any differences (or variances) being noted, and some corrective action taken to bring the actual activities back into line with the budgeted ones if such variances need to be dealt with.” The budgetary control is a continuous process that helps in planning, coordination and controlling of business decisions. A budget is a means and budgetary control is the end-result. The budgetary control system assists an organization in setting up the goals and efforts are made for its achievements. It enables economies in the enterprise. The main objectives of budgetary control are as follows: It is essential for planning, controlling and also acts as an instrument of coordination. It coordinates the actions of various departments. Budgetary control helps in eliminating wastes and raises the profitability position of a business enterprise. It makes a prediction about capital expenditure for future. It helps in amending deviations from the established standards.
It centralizes the control system. Budgetary control operates various cost centers and departments with efficiency and
economy.
Budgetary control compels business administration to think about the future that is most likely the crucial characteristic of this system. It coerces management to look into future, to outline thorough plans for attaining the objectives for each department, operation and each manager, to predict and grant the organization purpose and direction.
NEED FOR THE STUDY: To predict the future financial requirements for Business Development. The main aim of the study was to control various expenditure and coordination and necessary plans for future study. Thus to study the existing budget and then to compare the budget with the actual and to find out the deviations and recommend the necessary remedial actions.
4
SCOPE FOR THE STUDY: The scope of the study is entitled towards analyzing the various budgets and budgetary controls of Organization. This study encloses budgets of various departments of the organization and their budgetary control methods. In the study various departmental budgets were taken for the study, which includes HR, Finance, Marketing and General Administration. Mainly they are compared with their actual and variance was found in order to find out the effectiveness of the budgets.
INTRODUCTION
INDUSTRY PROFILE WHAT IS INSURANCE Insurance is a co-operative work or it is a sharing device. The business of insurance is related to the protection of the economic values of assets. ABOUT THE INSURANCE 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. The benefits may be an income or something else. It is benefit because it meets some of his needs. The business of insurance started with marine business. Traders, who used to gather in the Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1853 in England. Sales promotions are the most generally conceived as having three components. 1. Cognitive – a person’s belief about an object. 2. Effective – a person’s feeling of like or dislike concerning on object.
5
3. Behavioral – action tendencies towards an object.
INSURANCE SECTOR IN INDIA The life of human beings and the assets that they possess during their lifetime are continually exposed to loss or damage. Uncertainty in life, in commerce and in industry is a fact. People are aware of this uncertainty and hence show a strong desire for security board for their lives and possessions. They take all precautions possible to avoid or prevent the consequences of risk. In spite of all precautions, accidents do occur. This problem of risk can be minimized to some extent but it cannot be eliminated altogether. Insurance is a contract whereby insurers pay for the financial losses suffered by the insured because of unforeseen events and as are turn for the payment of a premium by the insured. The concept of insurance is not a recent phenomenon. Earlier, insurance was cooperative and voluntary in nature, people used to form different groups to share the loss among them, in case of a particular risk. Each member used to contribute some amount to a common fund to meet unforeseen losses. The term risk is very important in insurance transactions, generally, people thing of risk as exposure to danger but for the purpose of insurance, risk means uncertainty about loss in financial terms. From the point of view of risk, insurance can be broadly divided into four categories-personally insurance, property insurance, liability insurance and fidelity insurance(Fig17.3). Personal insurance is the sort of insurance which is purely personal in nature. Its scope covers only life. Personal insurance is further classified into three branches: life insurance, accident insurance and health insurance. Life insurance is a contract providing for payment of a sum of money to the person assured (or) failing him, to the person entitled to receive the same in the case of some eventuality. Personal accident insurance is a supplement to life insurance it proved an ideal protection against death or disability. Property insurance provides protection to the property of individual’s organizations. It is further classified into branches like marine, automobile, fire, crop, theft, cattle and machinery. Marine insurance deals with insurance of vessel of any descriptions, including cargo, freight and other interests in relation to such vessels. Automobile insurance mitigates the financial hardship caused to the person in case of
6
any accident. The Motor Vehicle Act, 1939 has made it compulsory for motorists to insure against the risk of liability to third parties. Fire insurance compensates for lose caused by fire. Crop insurance insures all crops against all risks of loss of damage. Cattle insurance refers to the insurance of horses and cattle. The insurance provides cover against death of animals such as bulls, buffalos, cows and heifers, arising as a result of accidents or disease, as the case may be. Liability insurance covers risks of accidental death, disability, lose by fires, flood,
earthquakes, and such risks where loses are results of natural or physical causes. It consists of third party insurance, employees insurance, and motor insurance. Third party provides indemnity to the insured against legal liability on the event of accidental bodily injury to the person and/ or the accidental direct damage to the property to of third parties, during the period of insurance. Employee liability policy protects the employees against their legal liability to their employees arising out of and in the course of employment. This liability may arise under The Workmen Compensation Act, 1923, Fatal Accidents Act, 1855, and/ or at common law. Motor insurance mitigates the financial hardship caused to persons and vehicles. Reinsurance is an arrangement whereby an original insurer who has insured a risk against with another insurer in order to reduce his own liability. The general insurance in India was nationalized in 1971 and a government company known as the General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972 with effect from January 1, 1974, the rest while 107 Indian and foreign insurers, operation in the country prior to nationalization, were grouped into four operating companies, namely (1)National Insurance Company Limited (2) New India Assurance Company Limited (3) Oriental Insurance Company Limited and (4) United India Insurance Company Limited. The four subsidiaries of GIC operate all over the country, competing with one another and underwriting various classes of general insurance including reinsurance, except for aviation insurance of national airlines and crop insurance, handled by the GIC.
7
HISTORY OF INSURANCE The roots of insurance might be traced to Babylonia, where traders were encouraged to assume the risks of the caravan trade through loans that were repaid (with interest) only after the goods had arrived safely a practice resembling bottomry and given legal force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a similar system to their sea borne commerce. The Romans used burial clubs as a form of life insurance, providing funeral expenses for members and later payments to the survivors. With the growth of towns and trade in Europe, the medieval guilds undertook to protect their members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to provide decent burial and support in sickness and poverty. By the middle of the 14th cent., as evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance was practically universal among the maritime nations of Europe. In London, Lloyd's Coffee House (1688) was a place where merchants, shipowners, and underwriters met to transact business. By the end of the 18th century. Lloyd's had progressed into one of the first modem insurance companies. In 1693 the astronomer Edmond Halley constructed the first mortality table, based on the statistical laws of mortality and compound interest. The table, corrected (1756) by Joseph Dodson, made it possible to scale the premium rate to age; previously the rate had been the same for all ages. Insurance developed rapidly with the growth of British commerce in the 17th and 18th century. Prior to the formation of corporations devoted solely to the business of writing insurance, policies were signed by a number of individuals, each of whom wrote his name and the amount of risk he was assuming underneath the insurance proposal, hence the term underwriter. The first stock companies to engage in insurance were chartered in England in 1720,and in 1735, the first insurance company in the American colonies was founded at Charleston, S.C. Fire insurance corporations were formed in New York City (1787) and in Philadelphia (1794). The Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance corporation in America, for the benefit of Presbyterian ministers and their dependents. After 1840, with the decline of religious prejudice against the practice, life insurance entered a boom period. In the 1830s the practice of classifying risks was begun. The New York fire of 1835 called attention to the need for adequate reserves to meet unexpectedly large losses; Massachusetts
8
was the first state to require companies by law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly nature of fires in structurally dense modem cities. Reinsurance, whereby losses are distributed among many companies, was devised to meet such situations and is now common in other lines of insurance. The workmen's Compensation Act of 1897 in Britain required employers to insure their employees against industrial accidents. Public liability insurance, fostered by legislation, made its appearance in the 1880s; it attained major importance with the advent of the automobile. In the 19th century, many friendly or benefit societies were founded to insure the life and health of their members, and many fraternal orders were created to provide low-cost, members-only insurance. Fraternal orders continue to provide insurance coverage, as do most labor organizations. Many employers sponsor group insurance policies for their employees; such policies generally include not only life insurance, but sickness and accident benefits and old-age pensions, and the employees usually contribute a certain percentage of the premium. Since the late 19th century, there has been a growing tendency for the state to enter the field of insurance, especially with respect to safeguarding workers against sickness and disability, either temporary or permanent, destitute old age, and unemployment. The U.S. government has also experimented with various types of crop insurance, a landmark in this field being the Federal Crop Insurance Act of 1938. In World War II the government provided life insurance for members of the armed forces; since then it has provided other forms of insurance such as pensions for veterans and for government employees.
General Insurance Companies There are many types of General Insurance Companies in India, which offer you a kind of security against possible threats and damages to your assets or properties to help you reduce risk factor by fighting off financial losses so that you can lead a happy and joyful life with your family. However, it will be better to start with what do we mean by General Insurance basically, before talking about the companies that deal with such products and services.
9
About the General insurance Our life is fraught with many risks, some known and some not so known. Most of the risks lead us to financial losses. By availing insurance products and services we not only prepare ourselves to fight off financial losses but also alleviate tension and stress. It can be said that Insurance is instrumental in reducing risk factors. We pay premiums to an insurance company and in return they assume responsibility to compensate for our monetary loss.
There are two broad categories of insurance policies including human life insurance and general or non-life insurance. General Insurance provides us with coverage against property damages, thefts, accidents, illness and such others.
Types of General Insurance Most of the General Insurance Companies provide a wide range of insurance products and services. Some of these can be classified as follows: Car Insurance Home Insurance Travel Insurance Private Medical Insurance Illness Insurance Long-term care Insurance Accident Insurance
10
Key Factors of General Insurance While buying a particular general insurance, you need to analyze certain angles to make sure that it would cater to your requirements to its fullest capacity. These angles or key factors are: A suitable product or service that matches your particular need Cost of the insurance product Flexibility of the product or services Terms and policies of the product You need to know well what will happen if you fail to make a payment or want to drop the service or switch it with any other. You must also be aware about the terms and policies of the insurance to know when you can expect a pay-out or does it have any restriction.
Benefits of General Insurance On availing general insurance, you can fight off financial losses against your assets and belongings. You can insure your as well as your family member's health by opting for personal accident policies or medical insurance. These policies prove hugely beneficial in case of sudden occurrence of any accidents.
GENERAL INSURANCE COMPANIES IN INIDA
Triton Insurance Company of Calcutta was the first general insurance company in India to establish its shop here. After this, many other companies forayed into the insurance sector of India and came up with innovative general insurance or non-life insurance policies to help customers reduce financial losses.
11
Some of the most trusted non-life insurance companies in India are: Birla Sun Life Insurance Company Om Kotak Mahindra Life Insurance Company ING Vysya Life Insurance Co. Ltd Max Life Insurance Co. Ltd HDFC Standard Life Insurance Metlife Insurance Sahara India Life Insurance Cholamandalam MS General Insurance ICICI Lombard Tata AIG Insurance SBI Life Insurance
The insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. With the establishment of the Oriental Life Insurance Company in Kolkata, the business of Indian life insurance started in the year 1818.
12
IMPORTANT MILESTONES IN THE INDIAN LIFE INSURANCE BUSINES 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business. 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from the Government of India. The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British.
IMPORTANT MILESTONES IN THE INDIAN GENERAL INSURANCE BUSINESS. 1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of its type to transact all general insurance business. 1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct for guaranteeing fair conduct and sound business patterns. 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India. It was with effect from 1st January 1973. 107 insurers integrated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company.
13
The general insurance industry in India is on Moody’s expectations for steady fundamental credit conditions in the sector over the next 12-18 months. With the Indian economy forecast to grow at 7.5% in 2008 and given rising income levels and higher risk awareness among insured, the country’s insurers are optimistic about demand for their products. However, intense competition from new entrants, deregulation and a moderation in returns from the equities market will pressure pricing and ultimately short-term profitability. At the same time, despite rising inflation and a severe correction in the stock market (the key Sensex index fell 26% in 1Q2008), the prevailing view in Asia is that while China and India are not insulated from the credit crisis afflicting the US and EU, domestic demand is strong enough to support GDP growth1. Being less export dependent, India is also less vulnerable than some of its neighbors. Rising income levels, low penetration for most consumer products, availability of financing and changes in lifestyles/ aspirations are likely to sustain consumer demand over the next few years. In the short term, the focus on infrastructure development will keep the economy going, even if the tightening in credit leads to a slowdown in consumer spending.
Regulatory Environment Impact of Regulation – Emphasis on Policyholder Protection IRDA was set up with introduction of the IRDA Act in 1999. Its initial purpose was to bring about general discipline to the industry. It is responsible for protecting the interest of policyholders and promoting efficiency in the insurance business. To ensure their stability, transparency and financial strength, new entrants are subject to rigorous scrutiny and the conduct of their business is closely monitored, particularly in relation to capital adequacy and prudent investment policies. The regulatory environment to date has attracted many insurers whose domestic partners are leaders in their chosen fields and their foreign counterparts are all well-established with considerable experience in developed and emerging markets. The regulator has laid down investment guidelines that limit exposure in certain class of assets and also sets threshold limits for some assets. At the moment, insurers have to invest a minimum 30% in government securities, in contrast to some of the more mature markets like the US and Australia, which do not have such restrictions.
14
Compliance with these relatively restrictive guidelines could limit insurers’ ability to diversify and build optimal portfolios. The guidelines also stipulate a minimum 10% investment in the social and infrastructure sector. The investment in un-approved securities has been limited to 25% of total investment books. General insurers must maintain a solvency ratio (available solvency margin/required solvency margin) of 1.5 times, calculated based on net premium earned and net claims incurred in various segments. Public sector entities have maintained comfor TABLEsolvency margins, supported by their strong investment portfolios and capitalizations. The private players, being in a growth phase, may require capital infusions from time to time to maintain their solvency requirements. The Indian insurance regulator has set the minimum capital required at a level to ensure that all insurers -- especially the start-ups -- have enough funds to meet their claim obligations and to limit their overall writings to the amounts supported by their capital bases. The need to manage capital to comply with IRDA’s solvency margin will induce insurers to be more risk conscious when taking on new business. To ensure an orderly transition towards a deregulated insurance market and risk-based pricing, IRDA has enacted enabling legislation and issued guidelines to de-tariff various segments. De-tariffing -- introduced in January 2007 -- has been well accepted and corrections to prices in profi TABLElines have been dramatic and have noticeably impacted premium growth rates. In fact, the discounting has been so extreme that the regulator intervened in September 2007 and capped maximum discounts at 52.5%.
Three Phases of De-Tariffing India’s general insurance industry has undergone de-tariffing in three phases: ? 1994 -- marine cargo, personal accident, health, banker liability and aviation. ? 2005-06 -- marine hull segment. ? 2007 -- fire, engineering and motor own damage (OD). However, the de-tariffing did not immediately allow for free pricing. Instead, insurers were required to follow the
15
“file and use” method, whereby they were expected to file a charter of proposed rates, which was then approved by IRDA. The restrictions on price discounts during the initial periods were intended to ensure orderly price adjustments. They were removed in January 2008. The only segment that remains under a tariff regime is the third party motor business, although there has been a large upward revision in this area’s premium rates by regulators in recent times. Moreover, commercial third party motor business, which has traditionally contributed to adverse claims ratios, has been moved to a common pool, resulting in loss sharing.
General Insurance Industry Outlook Market Overview India is the 5th largest market in Asia by premium, following Japan, Korea, China and Taiwan. The country is geographically large and has the world’s 2nd largest popul ation -1.13 billion in 2007 – but it also has one of the lowest penetration rates for property and casualty insurance in Asia in terms of premium as a percentage of GDP. This situation reflects the fact that India’s insurance market is still in its infancy, meaning good growth potential. Even though the economy is expected to slow, it has sufficient momentum to maintain an impressive rate of growth when compared to the more advanced economies. Against the backdrop of rising income levels, insurers operating in a now deregulated environment will be able to expand product lines to cater to the demand for more customized Indian General Insurance Industry Outlook Private players will continue to capture market share at the expense of public enterprises on a mix of aggressive distribution and service. Having penetrated the corporate segment in the past, most private insurers now seek to grow their retail books. Furthermore, the number of private insurers is expected to grow as various foreign companies have announced intentions to establish joint ventures. Given the low level of penetration in some segments, this trend towards foreign participation is likely to continue. Rate reductions in the recently de-tariff corporate portfolio (fire & engineering) will impact premium growth, but this outcome will be offset by greater sales of existing and new products.
16
The formation of a third party motor pool, where all general insurers are required to participate based on the size of their overall market shares, will reduce the underwriting burden on public entities. The claims ratio for the segment is likely to improve in the medium term as premium rates for the third party motor pool have also climbed. Although public entities have sustained consistent underwriting losses on some product lines, in particular for third party motor business, their investment income and gains have more than offset their underwriting losses and helped them achieve solvency margins. With the regulatory environment in India, it generally ensures that insurers adopt sound underwriting, valuation and investment practices, while protecting the interests of policyholders. At the same time, the environment will undergo reform and modernization.
Market Place – Moving Quickly The Indian insurance sector is rapidly moving towards international standards of free (riskbased) market pricing and new/innovative product offerings. Big changes have occurred over the last seven years, during which the sector was opened to private participation, but with foreign direct investment (FDI) capped at 26%. In line with forecasts for a continuation of solid growth and strong domestic demand, the number of insurers in the private sector will keep growing. Major foreign players see opportunities to increase both volumes and types of products. With the regulator possibly lifting the ceiling on foreign ownership to 49%, the capacities of domestic partners would no longer constrain capital levels for joint ventures. Until 2000, the general insurance sector had only four public sector players, formed after the nationalization of 107 general insurers. The public enterprises – Oriental Insurance Company of India (OIC), National Insurance Company of India (NIC), New India Assurance Company of India (NIA) and United Insurance Company of India (UII) -- were located in Delhi, Kolkata, Mumbai and Chennai respectively. They primarily focused on their immediate regions and there was little competition, leading to a near monopolistic environment.
17
1.2.6.4 Private Sector’s Growing Influence The private sector has been steadily growing market share despite the fact that public sector companies have been around for a lot longer. The private insurers enjoy considerable operational flexibility, whereas the public sector companies have been constrained by their traditions and inability to innovate. 1.2.6.5 Market Share – Redistribution Due to the effectiveness of private marketing strategies, the market share of public insurers has consistently declined. Chart 4 depicts the trend over the last five years. Given a faster growth rate, the market share of the private sector is catching that of the public sector and the two will likely converge over the medium term. In the past, private insurers had aggressively targeted the more profi TABLE(and tariffed) corporate fire and engineering businesses by combining them with discounted offers on de-tariffed products, for example, personal accident & health, marine cargo and hulls. Aggressive pricing capture a greater share of large corporate accounts
18
COMPANY PROFILE
Cholamandalam MS General Insurance Company Ltd. is a Joint Venture between the USD 3 billion Murugappa Group, one of India’s leading business conglomerates and Mitsui Sumitomo Insurance Company Limited, which is part of the Mitsui Sumitomo Insurance Group of Japan, the largest General Insurance Company in Japan and 5th largest insurance group globally. Chola MS offers a wide range of products that include Accident, Engineering, Health, Liability and Marine, Motor property, Travel and Rural insurance for individuals, SME’s and the corporate sector. It achieved Rs. 685 crores Gross Written Premium (GWP)
mark for 2008-09. Having posted a remarkable growth of 31% year-on-year, we have been one of the fastest growing General Insurance companies for the previous many quarters. We have a network of 113 branches across the country, and are represented by more than 7000 agents. It offer well-integrated operational capabilities to ensure the smooth performance of delivery like strong underwriting, tie-ups with global reinsurers, fast-track claims settlement and cash-free settlement for Health Insurance. With exposure to various industry sectors and services, Chola MS is fully equipped to provide world class customer service such as centralized policy issuance, renewal management through phone. Total Risk Management Solutions - Advantage Chola MS It offer a unique combination of efficient insurance services and innovative risk management consultancy to our customers - Total Risk Management solutions. Our group company, Cholamandalam MS Risk Services offers consultancy in the area of risk identification, assessment and suggesting risk control and mitigation measures alongside the Insurance support services. This ensures long-term business continuity for all our corporate customers. Adding another feather to our cap, Cholamandalam MS Risk Services has won the prestigious “Risk Manager of the Year 2007” at the 11th Asian Insurance Industry Awards.
19
ABOUT MURUGAPPA GROUP
The USD 3 billion Murugappa Group is today one of the country's biggest industrial houses. The Group's business philosophy is inspired by this couplet from the ancient Indian treatise on wealth creation and governance, the Arthashastra: "The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." Conducting business by a clear set of values and beliefs, the Group has observed very high standards of ethics and transparency. Its belief in organizational renewal has allowed the Group to adapt itself to changing economic contexts and grow from strength. Headquartered in Chennai, the 29 companies of the group have manufacturing facilities spread across 13 states in India. They are the market leaders in India across a wide business spectrum including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals. Some of the country's bestknown brands like BSA and Hercules in bicycles, Parrys Spirulina and Parrys Beta Carotene in nutraceuticals, Ballmaster and Ajax in abrasives, Gromor and Paramfos in fertilisers, and many more come from the Murugappa Group. Thefosters organization an environment of professionalism and has a workforce of over 32,000 employees. as one of the fastest growing diversified business groups in India. Mitsui Sumitomo The Mitsui Sumitomo Insurance Group (MSIG) is one of the most innovative and forward thinking insurers in the market today. It is the largest Insurance Group in Japan, with a Net Written Premium (NWP) of 12.64 billion USD in 2008. The Company is the 5th largest insurance group globally and has 63 sales bases across 39 countries. MSIG is highly acknowledged for its proven expertise in Property and Marine risks. It has been listed as 10th amongst the World’s Most Admired Property & Casualty Insurance Companies across the world by the prestigious Forbes magazine. It was awarded the “General Insurance Company
20
of the Year” Award in 2005 at the 9th Asia Insurance Industry Award ceremony held in Singapore. Cholamandalam MS Vision “We bring peace of mind to our clients through protection from financial risks” In essence Peace of Mind means the following: Hassle-free acceptance of proposal, issuance of policy, processing of endorsements and renewals Settlement of valid claims with empathy Strong commitment to customer service Advising risk management practices and techniques resulting in minimizing claims In short, our vision is to help our clients lead happy wholesome lives and at the same time be by their side to provide financial support in their hour of need. Chola MS Core Values Our value system revolves around being an ever-evolving organization, dedicated to bringing quality into the lives of our consumers as well as enriching our employees, by providing opportunities for their growth and development in a healthy, respec TABLEatmosphere. It will be a customer-centric organization It will be known to be ethical, fair and transparent It will strive to be innovative and responsive in all that we do It will continually seek avenues of profi TABLEgrowth It will ensure a congenial and empowered work environment to our employees while providing opportunities for their learning, teamwork and growth Management Team
21
The energetic and vibrant family of 700 Cholamandalam MS employees across the country are responsible for the smooth and successful running of the organisation. This dynamic team is spearheaded by Mr. S S Gopalarathnam, Managing Director and his distinguished team Yu Kitai – Whole time Director Shivakumar Shankar – Senior Vice President (Retail Insurance) M Subramanian – Senior Vice President (Commercial Insurance) V Suryanarayanan – Senior Vice President (Finance) R Chandrasekaran – Senior Vice President (Underwriting & Reinsurance) Sundar V – Vice President (IT) Raymund Lobo – Vice President (HR) R Suresh – Vice President – Claims A Prabhakaran – Vice President (Operations) Together, we strive – in search of newer heights and greater accomplishments. About Chola MS Risk Services Cholamandalam MS Risk Services , our group company, offers consultancy in the area of risk identification, assessment and suggesting risk control and mitigation measures alongside the Insurance support services. Chola MS Risk has successfully executed over 1350 consulting assignments across 35 sectors (from Oil and Gas to Telecom) in India & abroad, and is accredited as the only Risk Management Company in Asia to be recognized by oil giants. Chola MS Risk Services also pioneered the use of thermal imaging for electrical hot spot identification in India. Cholamandalam MS Risk Services’ expertise can be broadly classified into the following categories: ? Electrical Risk Management ? Industrial Safety Management ? Process Risk Management ? Environmental Risk Management
22
? Insurance Support Services ? Motor Insurance ? A Comprehensive Motor Insurance Cover in addition to the mandatory third-party cover also protects the car owner from financial losses,
Travel - Individual Travelling on business or pleasure? Whether it’s education, employment, meeting your loved ones or just taking a break, the Chola MS Travel Insurance makes your journey hassle-free. With extensive benefits that cover any eventuality you might face, our Travel Insurance is always right by your side. Every inch of the way.
1.3.9 Home – individual Chola MS home insurance helps to protect it and ensure that its taken very good care of. With its comprehensive covers and benefits. The Chola MS home insurance offers coverage for the building and the contents within.
1.3.10Corporate – Health In today’s frenetic pace of work, it is only fair on our part to keep the employees’ minds free of worries about health and safety on a daily basis, because an employees’well -being reflects multi-fold on that of the organisation. Investing in Cholamandalam MS Health Insurance helps them work and grow in your organisation, without you having to worry consultancy about their health and well-being or that of their families.
1.3.11 Property insurance This policy offers valuable protection to an individuals or business from damage or loss of property due to the commitment of some type of crime. This include ]s losses that are incurred
23
due to the theft of physical property, loss of money while in transit or safe custody, losses incurred due to fraud actions by the employees of an organisation, or damage to valuables such as cameras, laptops, and mobiles, and phones.
1.3.12 Liability insurance Whether small or large, every business comes with plenty of responsibility and accountability. It protects you and your business against the risk of becoming legally liable to pay damage to third parties due to various legal implications.
1.3.13Commercial claims It professionally and ethically driven to understand your loss and be with customer need. It try to keep the processes as simple as possible and closely work with you every step of the way.
1.3.14 Health insurance It offer affordable and customized family floater health insurance cover to rural population of the country through various channels, for instance MFIs, and also organization involved in Financial inclusions. It provide medical claims to the customer for various decease and for general medical facility either for the individual or for family.
24
SYNOPSIS BUDGET Budget inclusive list of proposed expenditures and expected receipts of any person, enterprise, or government for a specified period, usually one year. Budget estimates are based on the expenditures and receipts of a similar previous period, modified by any expected changes. The governmental budget originated during the late 18th century in England. A budget is a detailed plan of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies. It acts as a business barometer as it is a complete program of activities of the business for the period covered. Budgets are nothing but the expressions largely in financial terms of management’s plans for operating and financing the enterprises during specific period of time. The essential of a budget in an organization includes, 1. It is prepared in advance and is based on a future plan of actions. 2. It relates to a future period and is based on objectives to be attained. 3. It is a statement expressed in monetary and or physical units prepared for the implementation of policy formulated by the management.
“According to J.G BLOCKER: The budget is a detailed schedule of the proposed combination of the various factors of production which the management deems to be the most profi TABLEfor the ensuring period”. “According to GROWN AND HOWARD: The budget is a predetermined statement of management policy which provides a standard for comparison with results actually achieved.”
25
BUDGETORY CONTROL Budgetary control embraces all and in addition includes the science of planning the budgets themselves and utilization of such budgets to effect an overall management tool for the business planning and control. Budgetary control has therefore become an essential tool of management for controlling costs and maximizing profits. Thus, budgetary control involves the following, ? ? ? Establishment of budgets. Continuous comparison of actual with budgets for achievement of targets and placing the responsibility for failure to achieve the Budget figures. Revision of budgets in the light of changed circumstances.
“According to HOWARD: Budgetary control is a system of coordinating costs which includes the preparation of budgets, coordinating the work of the department and establishing responsibilities, comparing the actual performance with the budgeted and acting upon results to achieve maximum profitability.” Budgetary control is the process of ascertaining several budgeted figures for the future of a business enterprise and then making comparison of these budgeted figures with the actual results for finding out discrepancies, if any. The comparison of budgeted and actual figures will allow the management to take curative actions at a proper time. Budgetary control can be defined as, “A means of achieving the financial control of an entity whereby the actual results for a defined period of time are compared with the budgeted results, any differences (or variances) being noted, and some corrective action taken to bring the actual activities back into line with the budgeted ones if such variances n eed to be dealt with.” The budgetary control is a continuous process that helps in planning, coordination and controlling of business decisions. A budget is a means and budgetary control is the end-result. The budgetary control system assists an organization in setting up the goals and efforts are made for its achievements. It enables economies in the enterprise.
26
The main objectives of budgetary control are as follows: It is essential for planning, controlling and also acts as an instrument of coordination. It coordinates the actions of various departments. Budgetary control helps in eliminating wastes and raises the profitability position of a business enterprise. It makes a prediction about capital expenditure for future. It helps in amending deviations from the established standards.
It centralizes the control system. Budgetary control operates various cost centers and departments with efficiency and
economy.
Budgetary control compels business administration to think about the future that is most likely the crucial characteristic of this system. It coerces management to look into future, to outline thorough plans for attaining the objectives for each department, operation and each manager, to predict and grant the organization purpose and direction.
OBJECTIVES Primary Objective: ? To Study the effectiveness of budgetary control system in the organization. ? To analyze the Trend analysis for the next year.
Secondary Objective: ? To analyze the benefits of budgetary control system. ? To analyze and identify the short comings in the system. ? To analyze and measure the deviation.
27
LIMITATION OF THE STUDY
Limitations are as such that ? The study was limited only for the period of five years. ? Time was considered as major constraint. ? Only certain department’s budgets were taken for the study (HR, Finance, Marketing and General Administration.)
PROPOSED METHODOLOGY
Research involves scientific and inductive thinking and promotes the development of logical habits of thinking and organization. Research also makes its own contribution to the existing stock of knowledge, enabling its advancement Research Design A research design is the specification of the methods and procedures for acquiring the information needed to structure or solve the problems. Its overall operation pattern or framework of the project that stipulates what information is to be collected. Which sources and what procedures. The researcher used descriptive research design for the research study. Research design is a statement or specification of procedures for collecting and analyzing the information required for the solution of some specific problem. It provides scientific framework for conducting source investigations. “According to Clifford Woody,” research is defining and redefining problems, formulating hypothesis, collecting, organizing and evaluating and at last carefully testing the conclusion to determine whether they fit the formulated hypothesis”.
28
Analytical Design The research has to use the factors or information already available and analyze the facts to make critical evaluation of the material. Data Collection Data refers to information or facts. There are two types of data available, they mainly includes, Primary data Secondary data. Primary Data: In this research study the primary data is collected through discussion with the senior finance staff of the company. Secondary Data: Secondary data means the data that are already available in the organization. The researcher has to look into various sources for the data from where he can obtain data. This can be either published or unpublished (Magazines, Journals, books, Public records, historical documents etc.) As the study involves use of secondary data such as budget of various departments in the organization.
Tools Used: ? ? ? Simple percentage Analysis Trend analysis Correlation analysis
29
Trend Analysis: Forecasting technique that relies primarily on historical time series data to predict the future. The analysis involves searching for a right trend equation that will suitably describe the trend of the data series.
Correlation Analysis: The correlation analysis refers to the technique used in measuring to the closeness of the relationship between the variable. ? ? ? Determining whether a relation exists and, it if does, measuring it. When r = +1 it means perfect positive correlation between the variables. When r = -1 it means perfect negative correlation between the variables.
FINDINGS FINANCE –DEPARTMENT ? The Variance in the finance department is 5.64% in the year (2005-2006). ? But in the year (2006-2007) the actual value is less than the budget value. The finance Department. has controlled its expenses. ? The Variance in the finance department has increased to 14.07 % in the year (2008-09) when compared 12.28% decreased in the previous year (2007-08). ? The Variance in the finance department has reduced to 11.75% in the year (2009-10) when compared 14.07% in the previous year (2008-09). ? During the year (2008-09) the bank expenses of finance department decrease of 10.35%. When compared to the year (2007-08) where there is a increase of 3.54% in the bank expenses when compared to the budget. ? During the year (2009-10) the bank expenses of finance department as a increase of 5.42%. When compared to the year (2008-09) where there is a decrease of 10.35% in the bank expenses when compared to the budget.
30
? During the year (2008-09) the auditing expenses as a decrease of 9.20% when compared to the year (2007-08) where there is a increase of 43.82% when compared to the budget. ? During the year (2009-10) the auditing expenses as an increase of 11.1% when compared to the year (2008-09) where there is a decrease of 9.2% when compared to the budget. ? The coefficient of correlation is 0.9644. it shows the variation is normal. I am doing my research on other departments currently.
31
CONCLUSION
The organization is having a good brand name among the customers if the company controls the expenses and uses the funds effectively it will help the company to attract new customers. It widens the market for the business of the company thus the project helps to control various problems associated with budget. The company has to analyze the past record before preparing the budget. And discuss with the experts. ? ? ? Need Increase the effective decision Fund towards future maintenance can be reduce The Knowledge of Budgetary Control should be educating to the department.
SCHEDULE Research till March 5th 2012 and Analysis till March 15th 2012
REFERENCES CHOLAMANDALAM MS GENERAL INSURANCE GOOGLE
32
doc_438730946.pdf