INTERNSHIP REPORT

Submitted in partial fulfillment of the requirements for the award of the Degree of Bachelor of Commerce (Hons) of Christ University during the year

2012-13. By,
J. SREEJITH

Under the guidance of

Mr. GIRISH

Department of Commerce Christ UniversityBangalore- 560029

CERTIFICATE

This is to certify that the internship on STAR HEALTH AND ALLIED INSURANCE CO. LTD.Submitted to Christ University in the partial fulfillment of B.Com (Hons) Course by J. J.SREEJITH under my guidance and supervision. This has not formed a basis for the award of any other degree of Christ University or any other Universities.

PLACE: BANGALORE DATE:

HOD

GUIDE

DECLARATION

I, J. SREEJITH hereby declare that this internship report is a record of work carried out by me at STAR HEALTH AND ALLIED IN SURANCE CO. LTD under the guidance of MR. GIRISH in partial fulfillment of the requirement of the award of the Bachelor of Commerce (Hons) in Christ University. I also declare that this has not formed a basis for the award of any degree of Christ University or any other Universities.

Place: BANGALORE Date:

J. SREEJITH

ACKNOWLEDGEMENT ACKNOWLEDGEMENT

It is a matter of great satisfaction and pleasure to present this report on Working Capital Management of STAR HEALTH AND ALLIED INSURANCE COMPANY LIMITED, Bangalore I take this opportunity to owe my thanks to all those involved in my training.

This project report could not have been completed without the guidance of our project guide Mr GIRISH. Their timely help & encouragement helped me to complete this project successfully.

I thank Mr. Sunil Haleyur (SR. SALES MANAGER) for giving me opportunity to work at STAR HEALTH AND ALLIED` INSURANCE COMPANY LIMITED, as a TRAINEE.

I express my gratitude towards staff of STAR HEALTH AND ALLIED INSURANCE CO. LTD, who have helped me directly or indirectly in completing the training.

CONTENT

TOPIC

PAGE NO.

1. CHAPTER 1:- INTRODUCTION

Profile of the organization Mission Objectives & strategies of the organization Organization design & structure Policies & procedures followed Products Competitors

2. CHAPTER 2:-Functional

areas Of the Company

3. CHAPTER 3 :- SWOT Analysis of the organization

Key result areas of the organisation

4. CHAPTER 4 :- Organizational performance

Sales development System of accounting followed Significant factors for success Financial highlights Performance appraisal system

5. CHAPTER 5 :- Conclusion

CHAPTER 1: INTRODUCTION

STAR HEALTH AND ALLIED INSURANCE CO. LTD

Introduction to insurance: Insurance is a form of risk management primarily used the hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of risk of a loss, form one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policy holder, is the person or entity buying the insurance policy. The amount to be for certain amount of insurance coverage is called the premium.

Types of insurance:-

Inroduction to Health Insurance:

An English proverb says that health is weath. It is not meaningless saying as it defines a very impoartant fact of life. Your health is the most precious wealth that God has given you. It is your own property and you are the sole owner of it. Therfore, it is your responsibilty to look afetr it properly. However, it is also true the life is full of meaningfull of uncertainties and you never know what will happen in the next few hours. Therefore, it is also your duty to make certain arrangement so that you can care of yourself as well as your family even

some misfortune falls upon you.

Health Insuurance:

Health insurance against the risk of incurring medical expressing among individuals. By estimating the overall risk of health care expenses among a targeted groug, an insurer can develop a routine finance structure, such as monthly premium or payroll tax, to ensure that money is available to pay for health care benefits specified in the insurance agreement.

Why should an individual buy a health insurance..?

Health insurance policy is not something you can regret about later on in your life. Understand that it is an essential coverage that can help you in maintain yourself in good shape. Not everyone can collect money in medical emergencies. Sometimes, it is very difficult to get thoussands of dollars in a hurry. In those times, the health insurance policy coverage will rescue you. Ypou will just have to file acliam and your problems will be solved. This will keep your family members out of all sorts of burdens and you will be able to get proper medical treatment on time. Health insuarnce always gives a feeling of security and you know mentally that even in case of extreme emergencies, you need not woory about money. It is right there. When you choose to buy health insuarance, you choose coverage too. This coevrage decides how much insuance claim you can file. Here, it is important to empasize that if you ander-insured, you may not be able to egt all the benefits of health insurance, if you happen to need it at someplace.

Types of health insurance:

There are mainly three types of health Insurance covers:

1. Individual Mediclaim: The simplest form of health insurance is the indivdual mediclaim policy. It covers the hospitalization expenses for indivdual for up to the sum assured limit. The insurance premium is depedent on the sum assured value. 2. Famlily Floater Policy: Family Floater policies are enhanced version of the mediclaim policy. The sum assured value floats among the family mebers. i.e. Each opted family member comes under the policy, and it covers expenses for the entire family up to the sum assured limit. The premium for the family floater plans is typically less than that for separate insurance cover for each family member. 3. Unit Linked health Plans: Taking the ULIP route, health insurance companies too have introduced Unit Linked Health Plans. Such plans combine health insurance with investment and pay back an amount at the end of the insurance term. The returns of course are dependent on the market performance. These plans are very new and still in development phase. This type if insurance is provided by Life Insurance Companies.

PROFILE OF THE COMPANY

Company Profile Of Star Health Insurance

Star Health and Alied Insurance Co. Ltd, is a joint venture between Omen insurance Company, UAE and leading NRIs and Indian business man/house. It has a capital base of INR 388 crores that far exceeds thereguirement to form a full fledged general insurance company. As an exclusive health Insurance Company and the forst of its kind in India, the Company is commited to setting international benchmarks in service and personal caring. Star health insurance is the first stand-alone health insurance company in Indiaand the company is specialized in Unique Health Insurance Policy.

Star health insurance is dedicated to provide affordable & quality health insurance products.
Star Health and Allied Insurance Company has been jointly promoted by eminent Industrialists from India and Foreign Investors and the headquarteres is in Chennai.

MISSION

Ultimate Customer Satifaction Belives in core values of trust, transparency, care and compassion Pledges to creat an environment conductive to Customer satisfaction, Productiv, Innovative Bottom line profits. Strives to maintain healthy standards of corporate governances. Committed to become A STAR in health and related insurances.

VISION
Protecting Health, Promoting Health Star Health and Allied Insurance Company shall work to become the most favoured brand in Health Insurance in Indai setting benchmarks for the Industry in the domains of service, innovative products, and collabrative relationships with an aim to become the BRIGHTEST STAR in the Galaxy of non- life insurance.

Objectives and Strategies of the orgnisation

The prime objective ofStar Health Insurance is to offer services in the health segmentanddesigned to offer health insurance to the masses. The important investment objective is to extend a protective arm to socially isolated persons often disowned by their family members No Third Party Administrator; direct in-house claims settlement Faster & hassle-free claim settlement Cashless hospitalization It aims at extending the best possible services to the customers and thus bringing down the scope for grievances.

Organization chart of Star Health Insurance:

CHAIRMAN AND MANAGING DIRECTOR

BOARD OF DIRECTORS

EXECUTIVES OF THE COMPANY

CHANNEL HEAD

REGIONAL HEAD

BRANCH HEAD

SALES MANAGER

ADVISORS/AGENTS

CUSTOMERS

Products or Services

1.Health plans Star Unique Health Star wedding Gift Star Health Gain Star Super Surplus Medi Classic Diabetes Safe Family Health Optima Senior Citizen Red Carpet

2. Accident Care 3.Student health plan 4.Over travel plan: Travel Plan Individual Travel Plan Family Travel Plan Students Travel Plan Corporate

5.Health + Life plans This product is jointly offered by Star Health and Shriram life Insurance Co. ltd. Star Sri Individual Care Star Sri Family Care

6.Rural Plan

Competitors Of Star Health Insurance

1) General Insurance Companies: ICICI LOMBARD GENERAL INSURANCE CO LTD BAJAJ ALLIANZ GENERAL INSURANCE CO LTD NATIONAL INSURANCE COMPANY RELIANCE HEALTH INSURANCE TATA AIG GENERAL INSURANCE HDFC ERGO GENERAL INSURANCE NEW INDIA ASSURANCE CO LTD CHOLAMANDALAM MS

2) Stand Alone Companies: APOLLO MUNICH HEALTH INSURANCE MAX BUPA HEALTH INSURANCE

CAPITAL STRUCTURE

Star Health and Allied Insurance Company Limited( Star Health) has a capital base of Rs.303 crores, more than sufficient to form a General Insurance Company. However, Star health has chosen to be in the field off Health. It is Indias first stand-alone Health Insurance Company in India and deals in Personal Accident, Mediclaims and Overseas Travel Insurance.

Number of Branches:
225 offices presently operational acroos the country. Zonal Offices in all major cities like Delhi, Mumbai, Bangalore, kolkata, Hydrabad & Chennai. Fully equiped offices with insurance experts and doctors t0o handle customer queries and grievances.

Current Status of Health Insurance Sector

Health Insurance has been the fastest growing segment in the non-life insuarnce industry in India over the last few years. Commercial health insurance( i.e. purchased from insurance companies) constituted only 0.7% of this expenditure in 2001-02 and barely coevred 1% of the population. By the end of 2008-09, health insurance premium would have grown about ten-fold from alevel of Rs. 675 crores in 2001-02, in just 7years. It grew 60% during 2007-08 to command a market (in non-life companies) of over Rs. 5100 crores as against Rs. 3200 crores in 2006-07.

During April-September 2008 (latest provisional figuires), it agains shows 47% growth over the corresponding period in the previous year and business in Apr-Sep 08 is higher than entire Financial Year 2006-07. It is also emerging as an increasingly significant line of business for life insurance companies, and all the large life insurance companies now have products in the health insurance space, the most conspicuous ones among these having been launched in the last 12 months itself.

According to the latest data released by the IRDA, the total health insurance premiums wriiten by non-life insurance companies and stand-alone health insurance companies grew by 36.5% during the nine month period April to December 2010, as compared to the corresponding period in the previous financial year.

Now the Health Insurance portability has been launched and the customers who are dissatisfied with the services of health Insurance Compnay can port their insurance into another company.

Opportunities of health insurance in India:

o Market Penetration. o Effects of detariffing on price adequacy.

o Demand for new products preventive care, outpatient coverage, long term care.

New regulations- lower capital requirement, risk based capital/solvency margin

Reasons for poor penetration of health insurance in india:

Lack of regulations and control on provider behavior: The Unregulated environment and total absence of any form of control over providers regarding quality, cost or data-sharing, makes it difficult for proper underwriting and actuarial premium setting. This puts the entrie risk on the insurer as there could be the problems of moral haard and induced demand. Most insurance companies are therefore wary about selling health insurance as they do not have the data, the expertise and the powere to regulate the providers. Weak monitoring system for checking fraud or manipulation by clients and providers, add to the problem. Unaffordable premiums and high claim ratos:

Increased use of services and high claim ratios only results in higher premiums. The insurance agencies in the face of poor information also tend to overestimates the risk and fix high premiums. Besides,the administrative costs are high- over 30%, i.e 15% commision to agent. 5.5% administrative fee to TPA; own adminisrative cost 20%, etc. Patients also experience problems in getting their reimbursements incliding long delays to partial reimbursements. Reluctance of the health insurance companies to promote their products and lack of innovation: Apart from high claims ratios, the non-exclusivisity of health insurance as a product is another reason. In India, and Insurance compant cannot sell non-life as well as life insurance products.Since insurance against fire or natural disaster or theft is far more profitable, insurance companies tend to compete by adding low incentive such as premium health insurance products to important clients, cross- subsidizing the resultant losses. With a view to get the non-life accounts, insurance companies tend to provide health insurance cover at unviable premiums. Thus. There is total lack of any effort to promomte health insurance through campaigns regarding the benefits of health insruance and lack of innovation to make the policies suitable to the needs of the people. Too many exclusions and administrative procedures: Apart from delays in settlement of claims, non-transparent procedures make it diffiucult for the insured to know about their entitlements, because of which the insurer is able to, on one stratagem or the other; reduse the claim amount, thus demotivating the insuraed and deepening mistrust. The benefit pack-age also needs to be modified to suit the needs of the insured. Exclusion go against the logic of covering health risks, though there can be a system where the existing conditions can be excluded for time period- one or two years but not forever.Besides, the system entils equity implicatiuons. Inadequate supply of services: There is an acute shortage of supply of services in rural areas. Not only there is nonavailability of hospitals with specialist services. Many centres have no cardologies or orthopaedicians for several non-communicable diseases that are expensive to treat and can be casastophic. Co variable risk: High prevalance levels of risk that could affect a majority of the people at the same time could make the enterprise unviable as there would be no gins forming large poolsl. The results could be higher premuims.

Challenges of health insurance in India:

The significant economic growth in India at the turn of the millennium has left is medical care and health insurance systems struggling to keep up with the growing healthcare demands of its people. India is characterized by a growing (but still relatively small) middle class and a large (but shrinking and mostly rural) near-subsistence population. Given the population, geographical size of the country, different levels of evolution within the urban and rural strata of the society, it is not surprising that players are faced with various challenges in increasing health insurance coverage. The health insurance products of Star Health have been designed with particular objectives in mind. Some of such products are: Star Health Red carpet: This product has been specifically designed for senior citizens aged between 60-74 years. Star Health Diabetes Safe: Usually health insurance policies do not cover people suffering from

diabetesandrealteddisceases. Star Health launched diabetes safe to provide health insurance to such people. Star Health Family Health Optima: Single premium health insurance plans with single Sum Assured for entire the family. Star Health Wedding Gift: Health insurance that includes maternity benefits including pre and post hospitalization expenses. Star Health Unique Insurance Policy:

A health insurance policy that covers pre-existing diseases after 11 months of continuous coverage and also has HIV related symptoms Star Health Gain: Health insurance policy, with impatient and outpatient benefits.

Chapter 2: Functional areas of the Organisation

1) AdministrationAdministration is a support function required by all businesses and this does not mean just doing keyboarding or ling. Senior administrators carry out a wide range of tasks; from monitoring budgets to interviewing new staff for their departments. Routine administrative tasks include opening the mail, preparing and ling documents, sending emails and faxes. Others require more creativity and exibility, such as arranging travel or important events, from staff meetings to visits by foreign customers. Most administrators also deal with external customers who judge the business on the way their enquiry is handled. Poor or sloppy administration can be disastrous for a companys image and reputation. A lost order, badly typed letter, important message that is not passed on or wrong date scheduled for a meeting can cause problems and may lose customers. Efcient administration means that everything runs smoothly and managers can concentrate on the task of running the business.

2) Customer ServiceAll businesses must look after customers or clients, who have an enquiry, concern or complaint. Today, customer expectations are high. When people contact a business they expect a prompt, polite and knowledgeable response. Unless they get a high level of service they are likely to take their business elsewhere in the future.For this reason, many businesses have customer service staff or a customer service department where trained staff handle enquiries and complaints positively and professionally. This does not mean that other staff can ignore customers and their needs. It simply means that one group specialise in assisting customers.

3) FinanceMost entrepreneurs consider this is the most important function in the business. This is because all businesses need a regular stream of income to pay the bills. Finance staff record all the money earned and spent so that the senior managers always know how

much prot (or loss) is being made by each product or each part of the business and how much money is currently held by the business. This enables critical decisions to be made rapidly and accurately because they are based on accurate information. In some cases, this can mean the difference between the success or failure of the business as a whole. Finance staff supports the accountants by keeping nancial records, chasing up late payments and paying for items purchased.

4) Human ResourcesThe human resources of a business are its employees. Wise organisations look after their staff on the basis that if they are well trained and committed to the aims of the business, the organisation is more likely to be successful.HR is responsible for recruiting new employees and ensuring that each vacancy is lled by the best person for the job. This is important because the recruitment process is expensive and time-consuming. Hiring the wrong person can be costly and cause problems both for the individual and the rm. Normally, new employees attend an induction programme which tells them about the business, their rights and responsibilities as employees, the company rules and the requirements of their new job. Arranging appropriate training and assisting with the continuous professional development of staff is another aspect of HR. Training may be carried out in-house or staff may attend external courses.Many organisations have staff associations, which monitor the views and conditions of staff and make these known. In other businesses trade unions may represent the workers, especially on pay and conditions. Senior HR staffs liaise with these organisations, keep them informed of changes and developments and are also involved in any negotiations with senior management 5) SalesSales are a crucial function for all businesses. It is pointless having superb products or services if no one buys them. For that reason, most businesses have sales targets as part of their aims and objectives. Meeting these is the responsibility of the sales staff or sales team. The job of the sales staff varies, depending upon the industry. Shops that sell basic products, such as chocolates or magazines do not need to do much selling. Most customers call in to buy something, choose the goods they want, pay and leave.

Customers expect more help and advice if they want to buy a complex or expensive item, such as a television or car. Stores which sell these types of products therefore need trained sales staff who are friendly, knowledgeable and can describe and/or demonstrate their products and link these to the customers specic needs. Business buyers also expect a high-quality service and in-depth advice and information. They may want to buy highly complex and expensive industrial equipment and need to negotiate special nance arrangements particularly if they are overseas buyers. Business buyers will also expect discounts for bulk purchases. Sales representatives often travel to meet potential customers, as well as routinely visiting existing customers to ensure their needs are being met.

CHAPTER 3- SWOT Analysis of the Organization

SWOT Analysis

Strength
Net profit of the organization is good. Company performing well in generating Current asset. No third Party Administrator; direct inhouse claims settlement. Cashless hospitalization and 24x7 Tollfree Helpline Network of more than 4600 hospitals across India.

Weakness
Premiums of the company are more comparing to other health insurance. Advertising of the company I low.

Opportunities
Health insurance is at growth stage. Health insurance portability. It can easily conquer established markets of the competitors. As the health insurance is still in its initial stage, star health insurance can influence more to buy products.

Threats
Facing a stiff competition from other health insurance companies. Customers showing disinterest towards health insurance. New tie ups by the competitors New entrants into the market

Key Result Area Of The Organization

1) Service Sector The service sector is given the first priority in Star Health. Without customers the organization can never run. Star Health even sees that their customers are given the required information of network hospitals near the customers residence area. Star Health even sees that their service to their customers is genuine. Star Health even sees that their relationship to their customers is never cheated.

2) Promotion Star Health second priority in regards with Key Result Areas is promotion. The promotion of the various products or the policies of the organization is mandatory so that the public is aware of it. Through this the promotion of the organization is made strong so that it makes it tough for their competitors tough to compete with them.

3) AdvertisemenT Advertisement plays a very vital role in promoting the products of the organization. Through advertisement the public comes to know the various products of the organization. Star Health advertises through TV, magazines, pamphlets, newspapers, and through radio.

4) Marketing Through marketing, the products are are made known to the public through advertisement, collecting questionnaire, door to door service, and through many other ways.

Chapter 4: Organizational performance

Sales Develpoment
The organization will appoint an agent who will be visiting the customer, who is a licensed person from IRDA and will market the products from the insurance company.

This insurance agent will be reporting to the sales manager who will handle few agents or health insurance advisors.

Sales manager is a development manager who will recruit, train and motivate the agents and generates the business to the company.

Sales manager reports to a branch manager who is responsible to operate in a specified area with the help of marketing personnel. There will be an area office which will coordinate with branch offices.

All the sales promotional activities like printing of policies, fliers, advertisement in media are conducted by the area officers.

Timely updating of the products and benefits of the product will be updated to the sales force periodically. Updating of the competitors premium will also be conveyed.

Lot of promotional activities, apartment activities are conducted by the respective marketing officers.

Significant factors for success-

1) Service

Star Health gives their first preference to their customers. They see that the customers receive all the benefits. They too see that the customers get all the information regarding which hospitals are within the network of star health insurance. Star health even sees that these hospitals give the best service to the customers. The different services provided by star health insurance are the following Direct in-house claims settlement Faster and hassle-free claim settlement Cashless hospitalization wherever possible at network hospitals Network of more than 4900 hospitals across India 24 * 7 toll free helpline More than 300 branches across India

2) Promotions

Star Health Insurance Company promotes their company through circulars. Star Health Insurance Company evens sees that they have the best financial consultancies that goes to field from door to door activities and sees that the customers get all the proper information regarding the health insurance and even its importance. The company even promotes by conducting a questionnaire to the public and through this they convince the customers to buy the health insurance policies. 3) Advertisement

Star Health Insurance Company even sees that they market their products through proper advertisement through TV, brochures, magazines, pamphlets, newspapers, hoardings and borders, radio, through cellular advertisements, etc.

4) Marketing

Star Health Insurance Company works through customer oriented. They have contacts of at least 2000 hospitals in India. 500 hospitals are already under the network of Star Health Insurance Company.

5) Addition of financial advisors

Star Health Insurance Company conducts many meetings with their agents. So through this, the agents are aware of the various changes in the premiums and through these meetings, the agents become more confident to approach the customers. The company even gives a target to these agents to accomplish a specified task.

FINANCIAL HIGHLIGHTS

Table 1: Current Ratio

Year

Current Asset (In lakhs)

Current (In lakhs) 4,85,135 13,92,848 28,50,221 34,01,551 11,71,218

Liabilities Current ratio

2007-08 2008-09 2009-10 2010-11 2011-12

5,58,482 14,22,810 37,76,780 42,11,512 40,86,774

1.151188844 1.021511321 1.325083213 1.238115201 3.489336741

Graph 1: Graphical representation of Current Ratio

Interpretation: The standard or ideal current ratio is 2:1. The above graph states that the current ratio of the organization is very high compared to the standard ratio, so that the company will find a way to utilize all its idle funds in order to increase its profitability. Since idle funds are a bane to the organization.

Table 2: Quick Ratio

Year

Quick Asset (In Lakhs)

Quick liabilities (In Lakhs) 4,85,135 13,92,848 2,85,221 34,01,551 11,71,218

Quick Ratio

2007-08 2008-09 2009-10 2010-11 2011-12

5,58,482 14,22,810 37,76,780 42,11,512 40,86,774

1.51188844 1.021511321 1.325083213 1.238115201 3.489336741

Graph 2: Graphical representation of Quick Ratio

Interpretation: The standard or current ideal ratio is 1:1. The above graph states that the quick ratio of the organization is high compared to the standard ratio. This means that the company has excessive cash or more debtors, which are not yet utilized to the fullest.

Table 3: Absolute Liquid Ratio

Year

Cash in hand/bank Current liabilities (In Lakhs) (In Lakhs) 4,85,135 13,92,848 28,50,221 34,01,551 11,71,218

Absolute liquid Ratio

2007-08 2008-09 2009-10 2010-11 2011-12

3,55,597 2,75,528 17,03,503 11,51,632 5,04,533

0.732985664 0.197816273 0.597674005 0.338560851 0.430776337

Graph 3: Graphical representation of Absolute Liquid Ratio

Interpretation: The standard or ideal current ratio is 0.5. the above graph states that the absolute liquid ratio of the organization is fluctuating, so the company has low cash liquidity.

Table 4: Proprietary Ratio

Year

Shareholders Fund (In Lakhs)

Total Assets (In Lakhs) 6,22,580 16,34,965 41,66,841 48,28,096 41,94,190

Proprietary Ratio

2007-08 2008-09 2009-10 2010-11 2011-12

10,86,000 11,05,368 17,08,259 87,37,933 16,10,084

1.744354139 0.676080528 0.409965007 1.809809291 0.383884373

Graph 4: Graphical representation of Proprietary Ratio

Interpretation:

From the above graph it is interpreted that the long term stability of the company is not effective because the proprietary ratio of the company is fluctuatuing. But there is an increase in the proportion of contribution of the proprietors towards the total assets.

Table 5: Current asset to fixed asset ratio

Year

Current Asset (In Lakhs)

Fixed asset (In Lakhs) 64,106 2,12,155 3,90,061 6,16,584 6,45,843

CA to FA Ratio

2007-08 2008-09 2009-10 2010-11 2011-12

5,58,482 14,22,810 37,76,780 42,11,512 41,94,191

8.711852245 6.706464613 9.682536834 6.830394561 6.494134023

Graph 5: Graphical representation of Current asset to Fixed Ratio

Interpretation: From the above graph it is interpreted that the current ratio to the fixed asset ratio is fluctuating every year. The current assets are more than the fixed assets in the company. This is because that the company is not a manufacturing organization. So it has little need for the fixed assets.

Table 6: Fixed Asset Turnover

Year

Sales (In Lakhs)

Fixed Asset (In Lakhs) 64,106 2,12,155 3,90,061 6,16,584 645,843

Fixed Asset Turnover

2007-08 2008-09 2009-10 2010-11 2011-12

35,507 55,556 1,04,120 1,18,283 2,211,523

0.553879512 0.261865146 0.266932608 0.191835987 0.292033539

Graph 6: Graphical representation of Fixed Asset Turnover

Interpretation: The above graph interpret that the company has high fixed asset turnover ratio and indicates thatefficient utilization of fixed assets in generating sales to the company

Table 7: Working Capital Turnover

Year

Sales (In Lakhs)

Net Working Capital (In Lakhs)

Working Turnover 0.484096146 1.854215339 0.112372768 0.146035426

Capital

2007-08 2008-09 2009-10 2010-11

35,507 55,556 1,04,120 1,18,283

73,347 29,962 9,26,559 8,09,961

Graph 7: Graphical representation of Working Capital Turnover

Interpretation: From the above graph we can interpret that in the year 2009 the working capital of the company is used in making sales. Totally the company indicates the inefficiency in the utilization of working capital in sales.

Table 8: Capital Turnover

Year Sales(In Lakhs) Total Capital Capital Turnover

Employed(In Lakhs) 2007-08 2008-09 2009-10 2010-11 35,507 55,556 1,04,120 1,18,283 1,95,045 2,68,965 -1,02,978 3,26,572 0.182045169 0.26554756 -1.011089747 0.362195779

Graph 8: Graphical representation of Capital Turnover

Interpretation: The above graph interpret that the company has very low capital turnover ratio. It indicates that insufficient sales and possibility of lower profits in business.

Table 9: Capital Asset Turnover

Year

Sales (In Lakhs)

Current Asset (In Lakhs)

Current Turnover 0.063577698 0.039046675 0.027568458 0.028085638

Asset

2007-08 2008-09 2009-10 2010-11

35,507 55,556 1,04,120 1,18,283

5,58,482 14,22,810 37,76,780 42,11,512

Graph 9: Graphical representation of Current Asset Turnover

Interpretation: The current assets turnover is dwelling year on year. This means that the current assets have not been judiciously utilized to earn revenue. And notwithstanding the fact that current assets occupy a larger share in the total assets, their contribution to the total revenue is vital.

Table 10: Net Profit Ratio

Year 2007-08 2008-09 2009-10 2010-11

Net Profit (In Lakhs) 12,765 12,368 52,591 73,911

Net Sales (In Lakhs) 35,507 55,556 1,04,120 1,18,283

Net Profit Ratio 35.95065762 22.2622219 50.50998847 62.4865788

Graph 10: Graphical representation of Net Profit Ratio

Interpretation: The standard and ideal ratio of net profit ratio is 10%. The company net profit ratio is more than the standard ratio so it is an advantageous position to survive in the face of rising cost of production and falling selling price. It indicates that efficiency with which business is managed.

Table 11: Operating Ratio

Year

Operating Ratio (In Lakhs)

Sales (In Lakhs) 35,507 55,556 1,04,120 1,18,283

Operating Ratio

2007-08 2008-09 2009-10 2010-11

3,51,630 6,29,817 9,33,032 9,09,323

990.3117695 1133.661531 896.1121783 768.7689693

Graph11: Graphical representation of Operating Ratio

Interpretation: The above graph interpret that the company operating ratio is more so the company high operating ratio is considered unfavorable because it leaves a smaller margin of profit to meet non- operating expenses. Here lower operating ratio is considered a good sign.

Table12: Return on Investment

Year

PBIT (In Thousands)

Capital employed (In Lakhs)

Return on Investment

2007-08 2008-09 2009-10 2010-11

31,593 52,721 1,02,185 1,16,701

1,95,045 2,68,965 -1,02,978 3,26,572

16.19780051 19.60143513 -99.22993261 35.73515182

Graph12: Graphical representation of Return on Investment

Return on Investment

Interpretation: The above graph interpret that ROI interpret the profitability of a business. The ROI ratio of the company is low it indicate that management has not utilized the funds supplied by the owners and creditors effectively and in the year 2010 ROI is negative because the capital turnover ratio is also negative

Table13: Return to Equity

Year

PAIT (In Thousands)

Shareholders fund (In Lakhs)

Return on Equity

2007-08 2008-09 2009-10 2010-11

12,765 12,368 52,591 73,911

10,86,000 11,05,368 17,08,259 27,00,733

1.175414365 1.118903388 3.078631519 2.736701481

Graph 13: Graphical representation of Return on equity

Return on Equity

Interpretation: From the above graph it can be interpreted that the company is not performing well in case of return on equity. In the year 2010 return on equity is very high compare to all other years. The owners of the company getting very low profits.

Table 14: Earning per share

PAT ( In Thousands) Year 2007-08 2008-09 2009-10 2010-11 12,765 12,368 52,591 73,911 No. of Equity Shares (In Lakhs) 1,08,600 1,09,300 1,64,330 2,02,990 0.117541436 0.11315645 0.320032861 0.364111533 Earnings per share

Graph 14: Graphical representation of earning per share

Earning per share

Interpretation: From the above graph it is interpreted that increase in earning per share in 2010 and 2012. In the year 2009 and 2008 earning per share is almost same. By considering overall the companys earning per share is very low. It is not good sign for the company.

Table 15: Showing Return on total asset

Year

Net profit after tax (In Thousands)

Total asset (In Lakhs) 6,22,580 16,34,965 41,66,841 48,28,096

Return on total asset

2007-08 2008-09 2009-10 2010-11

12,765 12,368 52,591 73,911

2.050338912 0.756468793 10262131192 10530851913

Graph 15: Graphical representation of return on total asset

Return on total asset

Interpretation: From the above graph it can be inferred that the return on total assets is fluctuating. Though it was low in the year 2008-09.Then on the ratio has improved considerably. This is one of the most important ratios to determine the financial health of the company.

CHAPTER 5-CONCLUSION

Six weeks of internship in Star Health Insurance was challenging, conducting surveys, marketing the insurance schemes and informing potential customers about the significance of the companys schemes and other lucrative offers. We had to also meet the existing customers, learn from them any new expectations from the company as well as their satisfaction towards the services. We had to inform the company about the mood swings of the customers and prepare our own conclusions from the respective surveys we made. Star Health Insurance is the first stand-alone health insurance company in India and it is facing huge competition in the market in the current scenario. I learnt that from the last financial year that Star Health Insurance has done more premium than 15 life insurance companies like ING, TATA AIA, AVIVA, MET Life, SAHARA LIFE, SHRIRAM LIFE, BHARATHI LIFE, FUTURE GENERALLY, IDBI, CANARA, HSBC, RELIGERE, DLF, STAR UNION, INDIA FIRST, and EDELWEISS TOKIO. The company has reached the maximum customers across the country having the most innovative products and the updated technology to its expectation. The financial performance of the company has been used effectively through its profitability and liquidity ratio as we observed in the financial highlights. Finally, I learnt about the dynamic behavior of the customers and also developed skills of persuading people.

Future Plans of the Growth ofthe Organization

The future plans of the growth of the organization are the organization are the following Having more no. of manpower The Company needs more qualified personnel to attract potential clients, to increase the cash resources. This will enable the company to increase investments in rights places and the personnel should put these investments in the right direction to enhance returns.

Reach more no. of customers The insurance market in India is not at its full capacity which not seen in United Kingdom and United States. So people need to be convinced and there are about more than 100 Billion $ of idle saving to be attracted by the company.

Become NO. 1 in India There are various unexplored places in the insurance market, if exploited, then the company will be highly competitive in the health insurance sector mainly.

To become a preferred company to work with to be a joint in the industry of health insurance. Combined resources of both companies are preferred with qualified personnel from both sides, different ideas, enables the company to make appropriate polices to survive in the insurance business.

 Sustainability

The industry health insurance is growing at a rate of 27%. Only 13% is covered. So definitely there is a future,so the company will grow

One of the main objectives of Star Health is to maintain quality of the organization and to create a good relationship with the customers. The organization even wants to provide good after sales services.

The organization also invests some of the money collected from the clients in government securities to ensure stability of returns in investment, since returns on government securities are assurable.

Also, Star health insurance, has qualified personnel, who are excellent in persuading customers to deposit their money with the company for health insurance

The company also does stringent analysis on the competition of the health insurance industry, also conducts surveys of the selected clients of rival companies, about the expectations from the health insurance sector.

The company notes down these expectations and prepares policies based on these to some extent.

BIBLIOGRAPHY

AUTHOR

TITLE OF THE BOOK

EDITION OF THE BOOK

NAME OF THE PUBLISHER Himalaya Publishing house

M.N. Arora

Management 2nd edition Accounting 4th edition

S.P Jain & K.L. Narang

Financial accounting

Kalyani publishers

Web sites visited www.starhealth.in www.investopedoa.com

www.reference.com

Date
06-01-2012 12-01-2012 02-02-2012