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Post: #1

The Indian Life Insurance Company has seen a remarkable shift since the time of establishment of the first company, Oriental Life Insurance Company in 1823. At the time of Independence and thereafter, there were more than 200 companies operating in India and not all of them on sound ethical principles. Many factors combined together to prompt the then Government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India.
Post: #2
The Indian Life Insurance Company has seen a remarkable shift since the time of establishment of the first company, Oriental Life Insurance Company in 1823. At the time of Independence and thereafter, there were more than 200 companies operating in India and not all of them on sound ethical principles. Many factors combined together to prompt the then Government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India.
Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise. But nowadays the market opened up and there are many private players competing in the market. There are thirteen private life insurance companies who has entered the industry.
The study in the first part gives detail information on the on-job training provided the competitive analysis of product of Kotak Mahindra Old Mutual Life Insurance Ltd. with ICICI Prudential Life Insurance. Also, analysis of financial statements.
In the second part, is a project on “How does the Indian mutual fund industry compare vis - a - vis global standards and what should be our future expectations from it?”
The paper begins by analyzing the current scenario in the industry characterized by problems with distribution, low investor awareness and concentration of corporate investors. In the next section, a comparison of the Mutual Fund Industry with global standards reveals that the industry still compares unfavorably with developed countries in terms of penetration, investor awareness and diversity of products and the extent of use of risk management techniques. Further comparison reveals that the attitude of regulator towards investor protection and the governance of mutual funds are at par with global standards. The paper then analysis the future expectations from the mutual fund industry in terms of increased investor awareness, product diversity and improvement in penetration and distribution. In the end I recommend certain steps that SEBI and AMCs should take in order to build investor confidence and trust.
Primary Objective(s)

The Basic objective of cash management is two fold:
• To meet the cash disbursement needs (payment schedule);
• To minimize funds committed to cash balances.
These are conflicting and mutually contradictory and the task of cash management is to reconcile them.
1. Customers have basis of preference in selection of the final Kotak Mahindra Old Mutual Life Insurance
2. The choice of the Kotak Mahindra Old Mutual Life Insurance might have an effect either of the personal preference or the country of origin
3. The final decision is based on prior experience
Sample Size:
The size of the sample was around 70 people considering the time constraint.
Research Design:
Data Collection: Data has been collected through both primary and secondary approach.
Data Sources
The research involved gathering Secondary data as well as Primary data. For the purpose two types of survey was conducted by me to collect the data -
• Customer survey and
• Consumer survey
Primary Data
Consumer survey was done to know their purchasing behaviour because they are the one who constitute the market and are the target of the business . In Insurance Industry untill and unless we have the knowledge of the consumer behaviour and factor which influence them to buy a paticular brand ,companies cannot focus upon the target market. Hence a consumer survey was done to know their wants, purchasing power, and buying habits in order to segment the market , and based on this consumer profile was identified.
Secondary Data
Secondary data regarding sales figures, promotional expenses and other related expenses was collected from the company’s own record to analyse the impact on sales due to the running schemes and make cost benefit analysis.
Scope of the Study
Both primary and Secondary data has been be used for the study. Primary data was collected through direct interaction with the company’s finance and accounts department. If needed schedule/questionnaires would be devised to get the information on all the relevant areas of the study such as receivable management, inventory management, management of cash etc.
And I collected the data from the secondary sources comprising Annual Reports of the firm, other journals and peridocials.
Apart from the conducting this research work on the basis of these informations, various techniques of financial management e.g., comparative statement, trend analysis and ratio analysis etc. were used in the present study. To present a broad view so far the purpose of the analysis and to make it easy to understand the problem/concept of a few graphs and tables shall also be presented. In each chapter, the analysis has been compared with actual management practices of the company under study.
Limitation of the Study
 The present study is limited to one Co., i.e. Kotak Mahindra Life Insurance Ltd., and covers a period from 2005 and 2006 due to limitation of time and accessibility to data base.
 The authenticity of the suggestions and recommendations depend upon the rationality of the data provided to me.
 Have to rely upon the data supplied.
 Executives are not ready to part with the information beyond a limit.

Working Capital management is the management of assets that are current in nature. Current assets, by accounting definition are the assets normally converted in to cash in a period of one year. Hence working capital management can be considered as the management of cash, market securities receivable, inventories and current liabilities. In fact, the management of current assets is similar to that of fixed assets the sense that is both in cases the firm analyses their effect on its profitability and risk factors, hence they differ on three major aspects:
1. In managing fixed assets, time is an important factor discounting and compounding aspects of time play an important role in capital budgeting and a minor part in the management of current assets.
2. The large holdings of current assets, especially cash, may strengthen the firm’s liquidity position, but is bound to reduce profitability of the firm as ideal car yield nothing.
3. The level of fixed assets as well as current assets depends upon the expected sales, but it is only current assets that add fluctuation in the short run to a business.
To understand working capital better we should have basic knowledge about the various aspects of working capital. To start with, there are two concepts of working capital:
 Gross Working Capital
 Net working Capital
Gross Working Capital: Gross working capital, which is also simply known as working capital, refers to the firm’s investment in current assets: Another aspect of gross working capital points out the need of arranging funds to finance the current assets. The gross working capital concept focuses attention on two aspects of current assets management, firstly optimum investment in current assets and secondly in financing the current assets. These two aspects will help in remaining away from the two danger points of excessive or inadequate investment in current assets. Whenever a need of working capital funds arises due to increase in level of business activity or for any other reason the arrangement should be made quickly, and similarly if some surpluses are available, they should not be allowed to lie ideal but should be put to some effective use.
Net Working Capital: The term net working capital refers to the difference between the current assets and current liabilities. Net working capital can be positive as well as negative. Positive working capital refers to the situation where current assets exceed current liabilities and negative working capital refers to the situation where current liabilities exceed current assets. The net working capital helps in comparing the liquidity of the same firm over time. For purposes of the working capital management, therefore Working Capital can be said to measure the liquidity of the firm. In other words, the goal of working capital management is to manage the current assets and liabilities in such a way that a acceptable level of net working capital is maintained.
Importance of working capital management:
Management of working capital is very much important for the success of the business. It has been emphasized that a business should maintain sound working capital position and also that there should not be an excessive level of investment in the working capital components. As pointed out by Ralph Kennedy and Stewart MC Muller, “the inadequacy or mis-management of working capital is one of a few leading causes of business failure.
Current assets, in fact, account for a very large portion of the total investment of the firm.
Post: #3
Submitted By

Company Profile:

Sujala pipes (p) ltd., is commissioned with the objective of catering the agricultural needs of the region. A dynamic entrepreneur Sri S.P.Y.Reddy who is basically a mechanical engineer started a unit at Nandyal those manufacturers black pipes. This resulted information of private ltd., company called “Sujala Pipes Pvt. Ltd.,”
In the year 1995 it diversified into other products like milk products mineral water, super market etc., its greatest achievements are taking over sagar pipes in 1997 and monarch pipes in 1999 who are major competitors at that time. At present the major competitors are sudhakar & finolex pipes. It has its market presence in four states in south India (A.P, T.N, Karnataka, and Kerala).
Working capital signifies funds required for day to day business operation of the organization. Working capital management refers to the administration of all aspects of current assests and current liabilities.
It refers to the firm’s investment in current assests. It is defined as excess of current assests over current liabilities. In other words, ‘it is the net current assests or net working capital’
Working capital management plays a vital role in any organization and one should have a through knowledge about the working capital position.
In view of this context, I have undertaken this study and it would be a great advantage to the company also to know its working capital.
Primary objective:
To find out the working capital position of the company for the last five financial years.
Secondary objective:
To know the liquidity position of the firm.
To study the profitability of the company
The data collected from both primary and secondary data.
Primary data
Primary data has been collected through personal interviews with the financial department and the executives.
Secondary data
Secondary data collected from the records like B/S, income statement and necessary records and website (
Confidential matters like financial position, soundness etc, are naturally not disclosed fully. This is certainly set back while drawing the conclusions.
The study is based on five annual reports only. The information
from annual reports is insufficient to calculate few ratios.
Limited time does not allowed to do more analysis.
• The current ratio is mostly constant for first 4 years and highly increased in last year 2006-2007
• The companies net working capiotal turnover ratio is increasing corresponding maximum increase is 16.8
• The working capital ratio is gradually increasing from year after year
The maximum ratio is 0.46
• The cash ratio is gradually reaching the standered norm
 The company should keep more current assets such as cash & bank balances short-term investment to meet its increasing liabilities. By that the company can able to have a better liquidity position.
 The company has to take necessary steps to establish effective working capital management ( which maintains adequate working capital required for the business). In the view of increasing current liabilities and less allocations of resources towards working capital..
 As of now, the company has maintained good financial position by controlling the current liabilities and other expenses, it has suggested that the company should maintain the same performance in the future.
Plastics have becomes synonymous with modern living. It is undoubtedly a product, which has penetrated extensively into the common mans life. No wonder the industry has achieved in terms of supply of raw materials, expansion and diversification of processing capacities and manufacturing of processing machinery and ancillary equipment.
The versatile material with its superior qualities such as light weight, easy process ability, corrosion resistance, energy conservation, non toxicity etc., may substitute to a large extent, many conventional and costly industrial materials like wood, metal, glass, jute, leather etc., on the automobiles, electronics, packaging and agriculture give enough evidence of the immense utility of plastics.
At present 80% of total requirement of raw material and almost all types of plastic machines required for the industry and indigenously available. The present investment in all three segment of the industry, namely production of raw materials, expansion and diversification of processing equipment in Rs.1,250 crores and it provides employment to more than eight lakh people.
Plastics have been subject to level not only at the central, but at state, and local government levels. These levels have affected the price of plastic of production adversely, because of their inherent advantage in properties and versatile in adaptation and use, plastics have come to play a vital role in a variety of applications over the world. In our country, plastics are used in essential consumer goods of daily use for common man such as baskets, shopping bags tiffany boxes, hair combs, tooth brushes, spectacle frames and fountain pens etc., they also find applications in field like packaging and automobiles and transportation, engineering, electronics, telecommunications, defense, medicine, building and other construction plastics and its importance is also growing infield like agriculture and water management.
Post: #4


A firm is required to maintain a balance between liquidity and profitability while conducting its day to day operations. Liquidity is a precondition to ensure that firms are able to meet its short-term obligations and its continued flow can be guaranteed from a profitable venture. The importance of cash as an indicator of continuing financial health should not be surprising in view of its crucial role within the business. This requires that business must be run both efficiently and profitably. In the process, an asset-liability mismatch may occur which may increase firm’s profitability in the short run but at a risk of its insolvency. On the other hand, too much focus on liquidity will be at the expense of profitability and it is common to find finance textbooks begin their working capital sections with a discussion of the risk and return tradeoffs inherent in alternative working capital policies. Thus, the manager of a business entity is in a dilemma of achieving desired tradeoff between liquidity and profitability in order to maximize the value of a firm.

Importance of Working Capital

The working capital meets the short-term financial requirements of a business enterprise. It is a trading capital, not retained in the business in a particular form for longer than a year. The money invested in it changes form and substance during the normal course of business operations. The need for maintaining an adequate working capital can hardly be questioned. Just as circulation of blood is very necessary in the human body to maintain life, the flow of funds is very necessary to maintain business. If it becomes weak, the business can hardly prosper and survive. Working capital starvation is generally credited as a major cause if not the major cause of small business failure in many developed and developing countries.

Objectives of Working Capital
It is becoming more and more difficult to use debt to finance mechanical engineering firms. Companies in this industry are therefore forced to optimize their capital employed in order to become less dependent on borrowed money.

Management of Working Capital

While the performance levels of small businesses have traditionally been attributed to general managerial factors such as manufacturing, marketing and operations, working capital management may have a consequent impact on small business survival and growth. The management of working capital is important to the financial health of businesses of all sizes. The amounts invested in working capital are often high in proportion to the total assets employed and so it is vital that these amounts are used in an efficient and effective way. However, there is evidence that small businesses are not very good at managing their working capital. Given that many small businesses suffer from under capitalisation, the importance of exerting tight control over working capital investment is difficult to overstate.
Post: #5
Post: #6


Meaning of Working Capital:

- Working Capital is the amount of Capital that a Business has available to meet the day-to-day cash requirements of its operations
- Working Capital is the difference between resources in cash or readily convertible into cash (Current Assets) and organizational commitments for which cash will soon be required (Current Liabilities)
- It refers to the amount of Current Assets that exceeds Current Liabilities (i.e. CA - CL)
- Working Capital refers to that part of the firm’s Capital, which is required for Financing Short-Term or Current Assets such as Cash, Marketable Securities, Debtors and Inventories. Working Capital is also known as Revolving or Circulating Capital or Short-Term Capital

Working Capital Concepts:

- Gross Concept: It means Current Assets. This is knows as Quantitative aspect of Working Capital
(Focus is on (i) Optimum Investment in Current Assets and (ii) Financing of Current Assets)
- Net Concept: It means difference between Currents Assets & Current Liabilities. This is knows as Qualitative aspect of Working Capital
(Focus is on (i) Liquidity Position of the Firm and (ii) WC Amount that can be financed by Permanent sources of Funds)
Meaning of Operating Cycle/Working Capital Cycle:
- Cash
Post: #7
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