Name: Rishabh Jain 10BSP0472 Mobile No: 9581212668/ 9910328649 mailto:rishabh_jain29@yahoo.

com

Enrollment No: Email:

Project Proposal
Project Proposed
Analysis of Working capital management for IDBI Federal Hyderabad.

Description of the project in brief:

This project encompasses the following areas of activity: To know the current operating cycle and thereon interpreting its viability by comparing with other successful Insurance players such as ICICI PRU, Birla sunlife and others. To determine the need of funds and their proper allocation for Hyderabad branch (zonal office) and to further have a deep insight into o Cost of funds: Here the major concern would be on the different bank rate and other interest rates prevailing and the borrowings of the company when it is in deficit of funds. o Ratio analysis: The key ratios in WCM are working capital ratio, inventory turnover and the collection ratio as the actual status of companies financial strength is determined by them.

Objective of the project:

To know the requirement of working capital to carry out business on every day basis. Design an alternative investment Scheme for the company whose acceptance or rejection would be based on the current parameters taken in consideration Present Investment Options Proposed Investment Options Government Securities Hedging in foreign markets Infra bonds Public Sector Project Financing. Example: Construction of National Highways, Dams, Flyovers by L&T etc.

To test whether the Time and Motion study which focuses on reducing unnecessary movement of employees and timely coordination of work, that would possibly strike a positive cord. This is evident since insurance business involves Personal Selling

which contributes to plethora of cost such as Transportation, Telephone bills and most importantly the time consumed. To find out the various ways of working Capital Management being presently implemented by the company and an attempt to find out the effectiveness of these methods.

Methodology:
My working module would largely focus upon Ratio analysis Trend and Time series analysis Current assets and Current Liabilities formulation

Schedule:
ACTIVITY verage closing of sales(policies) per day Business and trade cycles Size and growth of business Profitability Operating efficiency (Ratios) PROPOSED COMPLETION DATE 20th March 25th March 28th March By 2nd week of April By 4th week of April

Limitations of the study:

The report would be prepared on the basis of annual report and there could be problems to extract primary data because of confidentiality. Also the company began its operation in 2008, March. Hence the limited period constraint might not show the real working capital position. Competitors data extraction could also pose some limitations for the study.

References:
http://www.scribd.com/doc/19135971/Working-Capital-ManagementProject http://www.investopedia.com/terms/w/workingcapitalmanagement.as p Book References: Financial Management By RP Rustagi Mr. Sathya Balan (IDBI Federal Employee)PH. No. 9986659834

Faculty Guide Name: Company Guide Name: Date: 2011-03-10 Signature of the Student

Prof. Harsh Bhargava Mrs. Shanthi Yagyanath