...of assessment methods of working capital requirement” For “Bank of Maharashtra” Executive Summery IT GIVES ME GREAT PLEASURE TO PRESENT THIS PROJECT REPORT ON WORKING CAPITAL FINANCE AT BANK OF MAHARASHTRA, CREDIT DEPARTMENT, HEAD OFFICE, PUNE. THE PROJECT WAS CARRIED OUT FROM 1ST JUNE 2007 TO 31ST JULY 2007. The main objective of the project was to study various types of working capital finance provided by banks. To know details the procedure of assessment of working capital finance extended by banks. Wheels of business cannot move without money. Availability of money is being limited and wants being unlimited. So procurement of fund is one of the important functions in commercial & non-commercial enterprises and utilizes it for maximization of business profits. Business enterprises need funds to meet their different types of requirements, i. Long-term requirement ii. Medium-term requirement iii. Short-term requirement Working capital requirement is the short-term requirement. Working capital is the investment needed for carrying out day-to-day operations of the business smoothly. Bank is one of the important sources of working capital requirement. Bank gives various facilities to the borrowers. In this project I have considered various banking facilities for the working capital finance to the industries. It covers almost important aspect relating to assessment & follow up of working capital finance. After discussing...
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...and Nagar Haveli. INTRODUCTION__________________________________________________ BANKING SYSTEM IN INDIA Banking is believed to have existed in the most crude form in India, as early as Vedic period. Money lending was common practice in India, with the ancient people. The Puranas and Smritis mention about money changing and money lending. Manusmriti contains reference regarding deposits, pledges, policy on loans and rates of interest. Kautiliya’s Arthashastra also speaks extensively on banking practices in ancient India. The banking system of a country occupies a pivotal role in functioning and development of a country’s economy. In fact, it lies at the core of money market and also plays a complementary role in supporting the capital market. It is necessary to remember that the structure of the banking and financial system of any country is neither created at one stroke, nor is it permanent for all times to come. The fact of the matter is that various institution get evolved over a period of time, either through the trial and error method adopted by the people or at the instance of government. The organized sector banking system in India consists of the Reserve Bank of India as the apex bank. The Reserve Bank Of India is the Central Bank of the country and as such, it is the monetary authority of the country. Other organized sector banks in India can be broadly categorized into three parts, viz., the Commercial Banks, the Regional Rural Banks and the Co-operative...
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...3 marks: 1. What is current assets policy? State the policies related to current asstes management. 2. State the matching approach concept of working capital policy. 3. What do you understand by the cost trade-off? 4. State the difference between pledge and mortgage? 5. What is optimal conversion size/amount? 6. What are short costs? 7. what is cash cycle? 8. State the difference between bank overdraft and cash credit. 9. Briefly explain the modes of security of bank financing. 7 marks: 10. Explain the various types of bank finances available for working capital management. 11. Compute maximum bank borrowings permissible under method I, II and III of Tandon committee norms from the following figures and comment each method: Current liabilities In lacs Current assets In lacs Creditors for purchases Other current liabilities Bank borrowings 200 100 300 400 Raw material Work in progress Finished goods Receivables Other current assets 400 40 180 100 20 700 740 Assume core current assets at ` 190 lacs. 12. Briefly explain the impact of risk-return trade off on the level of current assts. 13. What are the objectives of cash management? 14. Compute the current ratio for all three policies. 16. From the following information, prepare cash budget of a business firm for the month of April. (a) The firm makes 20 per cent cash sales. Credit sales are collected 40, 30 and 25 per cent in the month of sales, month after and second month after sales...
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...I. EXECUTIVE SUMMARY The project brings out various aspects of working capital management and the means to get it financed from banks. It starts with explanation of the concept of working capital, description of working capital cycle, management and financing of working capital. This is supplemented by a brief explanation of the working capital financing of M/s Paras Organics Private Limited. It should be noted that business transactions are generally carried on credit with a number of days elapsing subsequent to the sale being affected for realization of sale proceeds. While part of the raw materials may be purchased on credit, the business would still need to pay its employees, meet manufacturing and selling expenses such as wages, power, suppliers, transportation and communication and the balance of its raw material purchases. Working capital refers to the source of financing required by business on a continual basis for meeting these needs. The faster a business expands, the more cash it will need for working capital investment. The cheapest and best sources of cash exist as working capital right within the business. Sound management of working capital will generate cash which will improve profits and reduce risks. The cost of providing credit to customers and holding inventories can represent substantial proportion of the total profits of a firm. The investment in raw materials, work-in-progress, finished goods and receivables often varies a great deal during the...
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...commodity or sectors in which India is doing export and import. India is a very old participant in world trade. Its participation have been promoted by the opening of Suez Canal and speedy development of the ship building industry supplemented by the spread of industrial revolution in Europe and fast expansion of Indian railways. Composition Export Fuels, Capital Goods, Chemicals, Food Grains, Petroleum Products, Capital Goods, Pearls and Precious Gems, Iron and Steel Fertilizers, Edible Oil 05/01/2016 Import Manufactured goods textiles , Gems and Jewellery, Handicraft, Light machinery etc. 4 IMPORTS It refers to goods that we buy from other countries. At times of independence India was an agrarian economy. Partition of our country has brought food shortage because wheat growing regions vested with Pakistan. Hence India need to import in large quantities, food , cotton jute. Etc With development of economy over these days, there occurred changes in composition of imports. The development required setting up of industries, modernization of agriculture etc. Capital goods like machinery, chemicals, fertilizers ,metals, minerals petroleum products etc. are imported . 5 EXPORTS Exports means that we are selling commodities to other countries. At the time of independence our exports comprise of agricultural products like tobacco, spices, raw materials of cotton and jute etc. Due to industrialization the proportion...
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...Q1] what is the maximum permissible bank finance? As per the recommendations of Tandon Committee, corporates should be discouraged from accumulating too much of stocks of current assets and should move towards very lean inventories and receivable levels. The committee even suggested the maximum levels of Raw Material, Stock-in-process and Finished Goods which a corporate operating in an industry should be allowed to accumulate These levels were termed as inventory and receivable norms. Depending on the size of credit required, the funding of these current assets (working capital needs) of the corporates could be met by one of the following methods: · First Method of Lending: Banks can work out the working capital gap, i.e. total current assets less current liabilities other than bank borrowings (called Maximum Permissible Bank Finance or MPBF) and finance a maximum of 75 per cent of the gap; the balance to come out of long-term funds, i.e., owned funds and term borrowings. This approach was considered suitable only for very small borrowers i.e. where the requirements of credit were less than Rs.10 lacs · Second Method of Lending: Under this method, it was thought that the borrower should provide for a minimum of 25% of total current assets out of long-term funds i.e., owned funds plus term borrowings. A certain level of credit for purchases and other current liabilities will be available to fund the build up of current assets and the bank will provide the balance (MPBF)....
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...MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________ ________ Long Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance Short Term Sources of Finance - Finance required to meet day-to-day Business requirements - Also, known as Working Capital Finance 2. Working Capital Management: Working Capital (WC) ____________________________________________________________ ____________________________ Basics regarding WC Meaning of WC Working Capital Concept Factors Affecting WC Meaning of WC Management Importance of WC Management Classification/Type of WC A On the Basis of Concept (i) (ii) Gross Working Capital Net Working Capital (Positive & Negative Working Capital) Methods of estimating WC Conventional Method Operating Cycle Method Cash Cost Method Balance Sheet Method B On the Basis of Periodicity (i) (ii) Fixed / Permanent Working Capital (Regular & Reserve Margin/ Cushion WC) Variable Working Capital (Seasonal & Special Working Capital) Parag Nalin Doshi 1/12/2009 www.CAalley.com 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...
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...Preamble: | The Micro, Small and Medium Enterprises (MSME) Sector, particularly the tiny segment of the small enterprises, faces huge challenges as under: * Competition from both domestic & multi-national companies. * Inadequate access to finance due to lack of financial information and non-formal business practices * Lack of access to private equity and venture capital * Lack of access to inter-state and international markets; * Limited access to secondary market instruments * Fragmented markets in respect of their inputs as well as products * Vulnerability to market fluctuations * Limited access to technology and product innovations * Lack of awareness of global best practices * Considerable delays in the settlement of dues/payment of bills by the large scale buyersThe MSME sector therefore looks to the Banks for * Single window dispensation. * Quick decision with least Turnaround Time, and above all, * Better service.It is therefore the Bank’s priority:- * to provide timely and adequate credit to the MSMEs, * to encourage their Technology Upgradation, for better quality and competitiveness of their product(s), and * even pro-actively detect sick and viable units in time, so as to nurse them back to health through appropriate restructuring.With the deregulation of the financial sector, the ability of the bank to service the credit requirements of the MSME sector depends on the underlying transaction costs, efficient recovery processes and...
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...MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________________ Long Term Sources of Finance Short Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance - Finance required to meet day-to-day Business requirements - Also, known as Working Capital Finance 2. Working Capital Management: Working Capital (WC) ________________________________________________________________________________________ Basics regarding WC - Meaning of WC Working Capital Concept Factors Affecting WC Meaning of WC Management Importance of WC Management Classification/Type of WC A On the Basis of Concept (i) (ii) Gross Working Capital Net Working Capital (Positive & Negative Working Capital) Methods of estimating WC - Conventional Method Operating Cycle Method Cash Cost Method Balance Sheet Method B On the Basis of Periodicity (i) Fixed / Permanent Working Capital (Regular & Reserve Margin/ Cushion WC) (ii) Variable Working Capital (Seasonal & Special Working Capital) Parag Nalin Doshi 1/12/2009 www.CAalley.com Meaning of Working Capital: - Working Capital is the amount of Capital that a Business has available to meet the day-to-day cash...
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...C O N T E N T S 10 Years’ Financial Highlights Strong Fundamentals Notice to Members Directors’ Report Management Discussion and Analysis Report on Corporate Governance Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules to Accounts Consolidated Financial Statements – Auditors’ Report – Balance Sheet – Profit and Loss Account – Cash Flow Statement – Schedules to Accounts Balance Sheet Abstract 3 4 5 8 11 23 33 36 37 38 40 63 64 65 66 68 86 Annual Report 2008-09 1 C O R P O R AT E BOARD OF DIRECTORS A Vellayan Chairman K Balasubramanian Director B V R Mohan Reddy Director R A Savoor Director (from 18.03.2009) M K Tandon Director D E Udwadia Director M M Venkatachalam Director S Viswanathan Director (Upto 23.12.2008) V Ravichandran Managing Director I N F O R M AT I O N BANKERS State Bank of India HDFC Bank Limited IDBI Bank Limited ICICI Bank Limited Hongkong and Shanghai Banking Corporation Limited AUDITORS Price Waterhouse 8-2-293/82/A/1131A Road No. 36, Jubilee Hills Hyderabad - 500 034 COST AUDITORS Mr V Kalyanaraman Mr Dantu Mitra MANAGEMENT TEAM V Ravichandran Managing Director P Nagarajan Sr Vice President & Chief Financial Officer G Ravi Prasad Sr Vice President - Sales & Marketing (Fertilisers) P Gopalakrishna Sr Vice President - Retail Harish Malhotra Sr Vice President - Commercial G Veera Bhadram Sr Vice President - Pesticides SBU Arun Leslie George Sr Vice President & Head of HR S Govindarajan Sr...
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...circuit. • Wars: Annexed Coorg (1834), Central Cachar (1834) on the plea of misgovernment. Sir Charles Metcalfe (1835–1836): Passed the famous Press Law, which liberated the press in India (called Liberator the Press). Lord Auckland (1836–42): 1st Anglo-Afghan War (1836–42)—great blow to the prestige of the British in India. Lord Ellenborough (1842–44): Brought an end to the Afghan War. Annexation of Sindh (1843); War with Gwalior (1843). Lord Hardings I (1844–48): 1st Anglo-Sikh war (1845–46) and the Treaty of Lahore 1846 (marked the end of Sikh sovereighty in India); Gave preference to English education in employment. Lord Dalhousie (1848–56): Abolished Titles and Pensions, Widow Remarriage Act (1856). Made Shimla the summer capital. • Administrative Reforms: Introduced the system of Centralized control in the newly acquired territories known as Bon-Regulation system; Raised Gurkha regiments. Click Here To Buy Hard Copy of This Book: http://www.upscportal.com/civilservices/order-form/gk-books Click Here For Current Affair News For UPSC,IAS,SSC, Govt. Exams http://upscportal.com/civilservices/current-affairs • Education Reforms:...
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...ENTREPRENEURSHIP AND SMALL BUSINESS A CASE OF A DEVELOPING COUNTRY Abstract This study revolve around the socio-economic structure of entrepreneurship, factors affecting the growth and development of enterprises and problems faced by them. For the purpose of data collection a sample of fifty small scale units was taken and a common schedule of structure questionnaire containing questions of various aspect of entrepreneurship was administered personally to the owner/managing director of each of the units as the case may be. This study is partially exploratory but basically descriptive in nature. From the interpretation and analysis of data collected the result shows that age is not a static phenomenon for entrepreneurship. Those who have less education but have more practical experience and training, enter into the industry early. However, in such cases less education restricts the growth and development of the enterprise. The paper also finds reasons for enterpreneurship, the three was to earn high profits and prosperity. The variables which decide the area of activity or the product line are based on assured market, parental business, experience and revival of the sick unit etc. There are certain irritants that also serve as impediments for the growth of enterprises. For instance competition from small scale units, (28%) financial constraints, high intent ratio and others. Introductionn The prosperity and progress of a nation depends on the quality of its people....
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...“CREDIT APPRAISAL PROCESS ON WORKING CAPITAL FINANCE IN HDFC BANK (MSME)” A summer internship project submitted in partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION By BIPIN CHANDU M Register No 1220310 Under the guidance of PROF. KRISHNA M C Institute of Management Christ University, Bangalore MBA 2012-2014 DECLARATION I, , do hereby declare that the summer internship project entitled Credit Appraisal Process on Working Capital Finance at HDFC Bank (MSME) has been undertaken by me for the award of the degree of Master of Business Administration. I have completed this study under the guidance of Prof. Krishna M, Professor of Finance, Institute of Management, Christ University, Bangalore. I also declare that this project work has not been submitted for the award of any degree, diploma, associate ship or fellowship or any other title in this University or any other university Place: Bangalore Date: (Name & Signature of the Candidate) Bipin Chandu M Register No 1220310 CERTIFICATE This is to certify that the summer internship project submitted by Mr Bipin Chandu M on the title “Credit Appraisal Process on Working Capital Finance at HDFC Bank (MSME)” is a record of research work done by him during the academic year 2012 – 14 under my guidance and supervision in partial fulfilment of Master of Business Administration. This project work has not been submitted for the award of any degree, diploma, associate ship or fellowship...
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...Disinvestment and Privatisation in India Assessment and Options1 R Nagaraj2,3 Ownership reform in public sector enterprises (PSEs) initiated since 1991 has as yet been quantitatively modest. It is perhaps too early to judge the effects of these initiatives on their financial performance. While the slow pace of the reform can be perceived as an opportunity, there is perhaps merit in carefully reviewing the policy in light of economic theory, and comparative experience. As the bulk of the public investments are in industries with economies of scale and scope (with externalities that in principle invite considerable regulation), this study suggests an alternative institutional arrangement for improving PSEs’ financial performance: mutual stock holding among complementary enterprises tied around a public sector bank to minimise problems of soft budget constraint, dysfunctional legislative and bureaucratic interference, and to encourage close interaction between banks and firms to promote long term economic development. Introduction: Employing about 19 million persons, public sector currently contributes about a quarter of India’s measured domestic output. Administrative departments (including defense) account for about 2/5th of it, the rest comes from a few departmental enterprises (like railways and postal services), and a large number of varied non-departmental enterprises producing a range of goods and services. These include, close to 250 public sector enterprises (PSEs) owned...
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...Credit risk management with reference to Punjab national bank Naupad, thane Dissertation Submitted to the Padmashree Dr. D.Y. Patil University in partial fulfillment of the requirements for the award of the Degree of MASTERS IN BUSINESS ADMINISTRATION Submitted by: KUNAL JOSHI (Roll No. 01102) Research Guide MR. MANGESH JADHAV Assistant Professor Department of Business Management Padmashree Dr. D.Y. Patil University CBD Belapur, Navi Mumbai APRIL 2013 Declaration I hereby declare that the dissertation “Credit risk management with reference to Punjab national bank, naupada thane” submitted for the MBA Degree at University’s Padmashree Dr. D.Y. Patil Department of Business Management is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, or any other similar titles. Place: Mumbai Date: KunalPratap Joshi CERTIFICATE This is to certify that the dissertation entitled “Credit risk management with reference to Punjab national bank, naupada thane” is the bonafide research work carried out by Mr. Kunal Joshi student of MBA, at Padmashree Dr. D.Y. Patil University's Department of Business Management during the year 2011 -2013, in partial fulfillment of the requirements for the award of the Degree of Master in Business Management and that the dissertation has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title...
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