Lease Financing - Hire, Purchase & Factoring Notes

Introduction
In order to start and sustain a business one needs finance. In the unit one on feasibility study, you have already seen the process of estimating financial requirements. The process involved (a) making a list of all the assets (b)identifying the sources of supply (c) estimating the cost of acquisition when the assets are to be acquired on outright basis. Then investment requirements as well as entrepreneur’s fear will increase. To scare away the entrepreneur’s fear, the emphasis should be given to resources and not to the ownership. In this unit we intend to familiarize you with some important financial innovations i.e., leasing, hire purchase and factoring.

Objectives
After going through this unit you should be able to
• Describe the meaning of leasing
• Explain the role and importance of lease financing in economic development of a
country
• Distinguish between the various types of leases
• Describe the meaning of hire purchase
• Distinguish between leasing and hire purchase
• Describe the meaning of factoring

Concept of Lease Financing
Lease financing denotes procurement of assets through lease. The subject of leasing falls in the category of finance. Leasing has grown as a big industry in the USA and UK and spread to other countries during the present century. In India, the concept was pioneered in 1973 when the First Leasing Company was set up in Madras and the eighties have seen a rapid growth of this business. Lease as a concept involves a contract whereby the ownership, financing and risk taking of any equipment or asset are separated and shared by two or more parties. Thus, the lessor may finance and lessee may accept the risk through the use of it while a third party may own it. Alternatively the lessor may finance and own it while the lessee enjoys the use of it and bears the risk. There are various combinations in which the above characteristics are shared by the lessor and lessee.

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Project Financing - A Report

Role of Infrastructure in Development
It is now well recognized that a country’s development is strongly linked to its infrastructure strength. Infrastructure helps determine a country’s ability to expand trade, cope with population growth, reduce poverty and a host of other factors that define economic and human development. Good infrastructure raises productivity and lowers production cost, but must also expand fast enough to accommodate growth. The precise links between infrastructure and development have been subject to extensive debate. The link between infrastructure and economic growth has been studied extensively in literature, the World Bank report (1994) of the World Bank for instance. The results show that infrastructure development can have a significant impact on the economic growth. For low-income countries basic infrastructure such as water, irrigation and to a lesser extent transportation are more important. As the economies mature into a middle-income category, their share of power and telecommunications in the infrastructure and investment increases. An estimate however shows that a 1% increase in infrastructure stock* is positively associated with a corresponding growth in GDP across countries.

Infrastructure is a necessary but not a sufficient condition for growth. Adequate complements of other resources must be present as well. In developing countries like India, infrastructure development and financing has largely been the prerogative of the government. Since infrastructure is typically a natural monopoly, the government considered it necessary to keep control of the same, in public interest. The success and failure of infrastructure to meet the needs of the people is largely a story of the government’s performance.

In the case of India, the government has taken great strides in improving the infrastructure stock of the nation since independence. However, when compared to developed countries we still have a long way to go. For instance, per capita power consumption in India is a meagre 282 KWH compared to 18,117 KWH for Canada. The situation has worsened in the 90’s with frequent revisions being made to the eighth plan document owing to the government’s inability to bear the cost of infrastructure anymore.

The simple truth is that public money is no longer sufficient to meet the burgeoning needs of the nation in line with its economic aspirations. Reluctantly, therefore the government has to throw open the doors to private participation in infrastructure.

Public Sector in Infrastructure Development
Infrastructure represents a strong public interest and so mer5its the attention of the government. The dominant role, that the public sector has assumed in the infrastructure

• Recognition of the economic importance of infrastructure
• Belief that the problems with supply and technology require highly active intervention by the government.
• Faith that the government could succeed where markets appear to fail

There is enough evidence to show that, despite significant growth in a number of developing countries infrastructure facilities have fallen far short of the requirements, Though each sector has special problems, there are common patterns in the provision of infrastructure services and shortcomings such as:
• Operational deficiencies
• Inadequate maintenance
• Extensive dependence on fiscal resources
• Lack of responsiveness to the needs
• Limited benefits to the poor

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Creating & Measuring Shareholders Value Project Report

When managers consider alternative strategies, those expected to develop the
greatest sustainable competitive advantage will be those that will also create the
greatest value for shareholders.

Companies can choose excellence in operations that is closely related to the
profitability. They can get their financial structure right, which is closest to free
cash flow among the fundamental drivers. They can also choose to be focused
and this is linked most closely to profitability. Those are areas of comparative
advantage. They can also create value through credible earnings growth, which
matches the fundamental driver growth and many other ways are in place to
create shareholder value.

The research issue arises from this variety of different ways to create value.
There is always scope for creating value in companies and they avail themselves of value-creating advice. The strategies are put in practice within the framework of that scope. We then find it worthwhile to investigate how strategies are handled in practice in some selected Swedish companies. However, it is not enough to have strategies in place, there is need for some indicators to ensure whether value had been created. Thus the companies need to measure and make sure that they are being successful in creating value for shareholder. “What gets measured gets done” this was a famous statement by Percy Barnevik’s (Dalborg, 1999). That statement underlines the importance of measurement.

In order to better answer the research issue, creating shareholder value will be studied in general as background to the research issue. The research issue will cover the different valuation methods used by companies to measure shareholder value creation and also the advantages and shortcomings of those methods whenever identified.

Objective of the study
The purpose is to conduct an analytical study of different methods used by companies to measure shareholder value creation. The study also aims to give a
general picture of how shareholder value is created as a background to measuring shareholder value. Furthermore all that will be done will be based on an empirical study.

Scope and limitations
Creating and measuring shareholder value can be studied from different perspectives. When studied from the shareholder or other stakeholder perspective, the research is mostly based on the information collected from the shareholder or stakeholders. When it is the stock market perspective, the information used in the study is collected mainly from the stock market. If the study is based on the company perspective then the information used will mainly be collected from the company. Every perspective is very important to investigate. However due to the time limit and the scope of the problem we are obliged to make some limitations.

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Notes on Accounting of Fixed Assets

ACCOUNTING FOR FIXED ASSETS
Introduction
An asset is a resource acquired for use in a business. A distinction is made in accounting between "current assets" and " "fixed assets". Current assets are those assets that form part of the working capital of a business. They are assets whose benefits are expected to be realized within one accounting period. They are replaced frequently or converted into cash during the course of trading and therefore they are short term in nature e.g. stock, prepayments, debtors, cash and bank. A fixed asset is an asset of a business intended for continuing use, rather than a hort-term, temporary asset such as stocks. Fixed assets are assets acquired for use in the business and not for resale in the ordinary course of business. Their use value extends beyond one accounting period and therefore they are long-term in nature e.g. furniture, buildings, plant and machinery, motor vehicles, fittings
etc. This chapter will present the accounting for fixed assets. This chapter overs the recognition, valuation and presentation of fixed assets and the provision of depreciation expense.

Objectives:
After studying this chapter you should be able to:
• Identify the various types of long term assets
• Distinguish between capital and revenue expenditure
• Identity the relevant cost of fixed assets.
• Appreciate methods of estimating depreciation expense
• Draw ledger accounts for fixed assets and depreciation
• Account for disposal of assets
• Draw schedule of fixed assets

Key Terms
Assets: Resources acquired for use in the business e.g. stock, motor vehicles

Tangible Assets: Assets with a physical existence land, buildings and machinery.

Intangible Assets: Assets without a physical existence e.g. goodwill, patent rights.

Current Assets: Assets expected to be realised within one accounting period eg cash, debtors

Fixed Assets: Fixed assets are assets acquired for use in the business and not for resale in the ordinary course of business.

Classification of Long-term assets-
Fixed assets can be classified in a company's balance sheet as intangible, tangible, or investments. Tangible fixed assets are those fixed assets with a physical existence e.g. Land and buildings, furniture and fitting, etc. Intangible fixed assets are those fixed assets without physical existence. Examples of intangible fixed assets include:
1. Goodwill; this is an asset created by a business over time through its location,
reputation skills of workers etc.

2. Patent right and trademarks; legal right to a product or an art or device of production.

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Back Office Functions in a Stock Exchange Project Report

Introduction -
Back office is the back bone of any broking business. The main and important function of the back office is to ensure that the rules and regulations are strictly adhered to and the control is maintained on the operations of the firm. The success of the back office largely depends on the efficient functioning of the back office. It can be well understood by each and every broking firm that in order to gain a competitive edge and sustain the challenges of a dynamic environment today it must have a very efficient back office.

This project tries to tell us that the why back office functioning is essential for every firm in this kind of business, so as to increase its profitability, efficiency and sustain the pressures posed by competition. This project also tries to bring out the role of the personnel working in the back office, and how their efficiency and devotion plays an important role in the success of any broking firm.

The project contents are followed by the objectives which will be followed by the introduction to the topic. Methodology adopted will help us to know how the project has been carried out. Observations and Findings will be followed by the suggestions to improve the efficiency of the back office function.

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Analytical Study on Market Linked Insurance At Tata AIG Life Project Report

Summary of Project
The Project title is itself self-explanatory the first part i.e. comparative study on ULIPS (UNIT LINKED INSURANCE PLANS) in Indian Insurance Market. It includes how Insurance Market in India looks like, how it is growing and booming and helping the Indian economy. Their current trend helps us to know about the Insurance sector and the current scenario Of ULIPS in Insurance market. Wherein a market study is also done, it tells how ULIPS are popular with the Indians. Also a comparison is done with Mutual Funds as the ULIPS similar to Mutual Funds.

Objective:-
A comparative analysis of ULIPs (Unit Linked Insurance Plans) in the Indian Insurance Market is the main objective of the practical. We know that now a day’s people have become aware of the investment opportunities in capital market and also they like to take risk in their life. ULIPs is such a product which offers a good combination of risk and also security, i.e. it gives investment opportunity and also protection to one’s life.

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Analysis of Mutual Fund Schemes of Reliance Money

This project work consists of the analytical and different schemes of mutual funds which Reliance Money which provides to give the concept of what is the difference in their schemes.

The methodology that was adopted for framing the project was primary and secondary
data. This project is restricted to Pune area only.

In this project, I have shown the different products and utility of it to the customer. This project highlights on the peculiarities of the product since they are traded in the market.

The project was studied with the help of brochure, magazine and net.
Even a dialogue was carried with the top executive so that it can help me to shape project and get the exact idea where the position of product lies and its status.

Customers are the king. They were interviewed and their opinion was taken into
consideration so that I can correlate my information with the theory part.

Since customers were rigid they didn’t reveal the exact information about the product
.Even keeping in mind the duration of the project there were certain limitations for it. As people were not ready to spare some time and discuss the product or answer to the query raised by me.
So, I have to drawn some of the conclusion on the basis of the brochures and material of the company being provided.

Objectives:-
1. To study the various offers of the company, services ranging from equities,
commodities, portfolio management etc.

2. The objective of the study was to collect information on the various securities
revolving in the market & thus providing customer service to clients to help them
invest capital in profitable plans.

3. To know about returns of the fund which one is beneficial.

4. To know their portfolio management.

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Analysis of Mutual Fund & Portfolio Management in Mutual Fund For Motilal Oswal Securities

EXECUTIVE SUMMARY
Right from its existence, Banks, whether nationalize or corporate, always dominated others, in case of public investments or retail investments. But in past few years due to various reasons like continuously falling of interest rates, various scams etc. investors will have to look for various other investments avenues that will give them better returns with minimization of risks. Here Mutual Funds Industry has very important role to play in providing alternate investment avenue to entire gamut of investors in scientific and professional manner.

Indian Mutual Fund Industry has been definitely maturing over the period. In four decades of its existence in India Mutual Funds have gone through various structural changes and gained prominent position in Financial Industry. Because of easy of investments, professional management and diversification more and more investors are gaining confidence in Mutual Funds. Even government policies like abolishment of long term capital benefit taxes added advantage to growth of Mutual Funds. This is all the way is leading to pool of more and more money from retail investors into the Mutual Funds.

So I carried out project in Mutual Funds and its Portfolio Management for the period of two months starting from 1st June 2007 to 31st July 2007 to understand Mutual Funds, Mutual Fund Industry, analyze the trend in Mutual Funds, what has been the performance so far and mapping various methods of Client prospecting and servicing, what are the factors that attracts the investors to invest in Mutual Funds over other investment avenues.

The project study focused on increasing brand awareness at retail level clients and various activities that results in brand awareness among the same. This project also consists of generating and getting clients, generating database and after sales services to retain client and make them happy investor.

While analyzing trend, I tried to map how Asset Under Management (AUM) varied over the period with BSE-Sensex to facilitate feature projections. It has been done separately for Equity Schemes, Income Schemes, Balanced Schemes and Liquid Schemes.

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Analysis of Financial Statements using Ratio Analysis Technique Project Report

The training at UltraTech Cement Limited involved the day to day working at corporate accounts departments with the senior & junior managers and research department in the company. This project helped me to get the deeper understanding of the process of Financial Statement Analysis and how decisions are taken to strengthen the financial position.

For this study five years‘ comparative Income Statement & Balance Sheet have been taken for calculating ratio analysis. Main objective in undertaking this project is to supplement academic knowledge with absolute practical exposure to day to day functions of the sector.

Financial analysis which is the topic of this project refers to an assessment of the viability, stability and profitability of a business. This important analysis is performed usually by finance professionals in order to prepare financial or annual reports. These financial reports are made with using the information taken from financial statements of the company and it is based on the significant tool of Ratio Analysis. These reports are usually presented to top management as one of their basis in making crucial business decisions.

During the training period at UltraTech Cement Limited, I had close connection with
preparation of financial statements and also their analysis which was made by professionals in the accounting team of the company. This experience was an emphasis on the importance of these Ratios which could be the roots of decisions made by management that can make or break the company. So, I was influenced to allocate the aim of this project to study the details about these ratios and their possible effects on the decisions made by not only people inside the company but also the outsiders such as investors.
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Analysis of Cement Sector as Investment Avenue for India Infoline Securities

This project is an attempt to understand the basics of stock market. A project which will make me well versed with the market happenings ups & downs in the stock market, daily analysis- fundamental & a little bit of technical.

The chapter on body methodology explains the steps that I took in understanding the equity market. It mentions a step by step detail of how I went by in order to answer
my own doubts & the techniques that I used to go ahead.

The next chapter gives a brief description about the company where I did my internship from, which is 5paisa.com which is a trading arm of IndiaInfoline Securities Pvt Ltd.

The following chapter explains about the formation & company composition of IndiaInfoline Securities Pvt Ltd.

The next chapter gives a detailed report of my summer internship done at the company. It gives the jobs assigned to me at work, followed by the methods which I
undertook in going about my internship.

The conclusion gives the details about the learning that I have gained in the
company.
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Credit Appraisal Process in SME Sector of State Bank of India (SBI) Project Report

Credit Appraisal Process inSME Sector of State Bank of India (SBI) Project Report

Reforms in the banking sector:
The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank has to earmark a minimum percentage of their loan portfolio to sectors identified as “priority sectors”. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number scheduled commercial banks increased four-fold and the number of banks branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to complete with the new private sector banks and the foreign banks. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. Eight new private sector banks are presently in operation. This banks due to their late start have access to state-of-the-art technology, which in turn helps them to save on manpower costs and provide better services.

During the year 2000, the State Bank of India (SBI) and its 7 associates accounted for a 25% share in deposits and 28.1% share in credit. The 20 nationalized banks accounted for 53.5% of the deposits and 47.5% of credit during the same period. The share of foreign banks ( numbering 42 ), regional rural banks and other scheduled commercial banks accounted for 5.7%, 3.9% and 12.2% respectively in deposits and 8.41%, 3.14% and 12.85% respectively in credit during the year 2000.

RESEARCH METHODOLOGY
Introduction to Credit Appraisal:
Credit appraisal means an investigation/assessment done by the bank prior before providing any loans & advances/project finance & also checks the commercial, financial & technical viability of the project proposed its funding pattern & further checks the primary & collateral security cover available for recovery of such funds.

Problem Statement:
=> To study the Credit Appraisal System in SME sector, at State Bank of India (SBI), Uttarsanda.

Objectives:
=> To study the Credit Appraisal Methods.
=> To understand the commercial, financial & technical viability of the project proposed & it’s funding pattern.
=> To understand the pattern for primary & collateral security cover available for recovery of such funds.
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Credit Appraisal Process at AXIS Bank Project Report

Project Report on Axis Bank
A snapshot of the banking industry
The Reserve Bank of India (RBI), as the central bank of the country, closely monitors developments in the whole financial sector.

The banking sector is dominated by Scheduled Commercial Banks (SBCs). As at end March 2002, there were 296 Commercial banks operating in India. This included 27 Public Sector Banks (PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also, there were 67 scheduled co-operative banks consisting of 51 scheduled urban cooperative banks and 16 scheduled state co-operative banks.

Scheduled commercial banks touched, on the deposit front, a growth of 14% as against 18% registered in the previous year. And on advances, the growth was 14.5% against 17.3% of the earlier year.
State Bank of India is still the largest bank in India with the market share of 20% ICICI and its two subsidiaries merged with ICICI Bank, leading creating the second largest bank in India with a balance sheet size of Rs. 1040bn.
Higher provisioning norms, tighter asset classification norms, dispensing with the concept of ‘past due’ for recognition of NPAs, lowering of ceiling on exposure to a single borrower and group exposure etc., are among the measures in order to improve the banking sector.
A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to strengthen the ability of banks to absorb losses and the ratio has subsequently been raised from 8% to 9%. It is proposed to hike the CAR to 12% by 2004 based on the Basle Committee recommendations.

Retail Banking is the new mantra in the banking sector. The home Loans alone account
for nearly two-third of the total retail portfolio of the bank. According to one estimate, the retail segment is expected to grow at 30-40% in the coming years.
Net banking, phone banking, mobile banking, ATMs and bill payments are the new buzz words that banks are using to lure customers.

With a view to provide an institutional mechanism for sharing of information on borrowers / potential borrowers by banks and Financial Institutions, the Credit Information Bureau (India) Ltd. (CIBIL) was set up in August 2000. The Bureau provides a framework for collecting, processing and sharing credit information on borrowers of credit institutions. SBI and HDFC are the promoters of the CIBIL.

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Comparative Analysis of NPA of Public Sector Banks,Private Sector Banks & Foreign Banks

Comparative Analysis of NPA of Public Sector Banks,Private Sector Banks & Foreign Banks Project Report
RESEARCH METHODOLOGY
Introduction
The banking industry has undergone a sea change after the first phase of economic
liberalization in 1991 and hence credit management. While the primary function of banks is to lend funds as loans to various sectors such as agriculture, industry, personal loans, housing loans etc., in recent times the banks have become very cautious in extending loans. The reason being mounting non-performing assets (NPAs). An NPA is defined as a loan asset, which has ceased to generate any income for a bank whether in the form of interest or principal repayment. As per the prudential norms suggested by the Reserve Bank of India (RBI), a bank cannot book interest on an NPA on accrual basis. In other words, such interests can be booked only when it has been actually received.
Therefore, an NPA account not only reduces profitability of banks by provisioning in the profit and loss account, but their carrying cost is also increased which results in excess & avoidable management attention. Apart from this, a high level of NPA also puts strain on a banks net worth because banks are under pressure to maintain a desired level of Capital Adequacy and in the absence of comfortable profit level, banks eventually look towards their internal financial strength to fulfill the norms thereby slowly eroding the net worth.

Research Design
The research design that will be use is Descriptive Research.
=> Involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data.
=> Uses description as a tool to organize data into patterns that emerge during analysis.
=> Often uses visual aids such as graphs and charts to aid the reader.
=> Using of hypothesis testing.

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Commodity Futures - Investors Perception Project Report

INTRODUCTION TO DERIVATIVES INDUSTRY
Derivatives
A derivative is a security or contract designed in such a way that its price is derived from the price of an underlying asset. For instance, the price of a gold futures contract for October maturity is derived from the price of gold. Changes in the price of the underlying asset affect the price of the derivative security in a predictable way.

Evolution of derivatives
In the 17th century, in Japan, the rice was been grown abundantly; later the trade in rice grew and evolved to the stage where receipts for future delivery were traded with a high degree of standardization. This led to forward trading.

In 1730, the market received official recognition from the “Tokugawa Shogunate” (the ruling clan of shoguns or feudal lords). The Dojima rice market can thus be regarded as the first futures market, in the sense of an organized exchange withstandardized trading terms.

The first futures markets in the Western hemisphere were developed in the United States in Chicago. These markets had started as spot markets and gradually evolved into futures trading. This evolution occurred in stages. The first stage was the starting of agreements to buy grain in the future at a pre-determined price with the intension of actual delivery. Gradually these contracts became transferable and over a period of time, particularly delivery of the physical produce. Traders found that the agreements were easier to buy and sell if they were standardized in terms of quality of grain, market lot and place of delivery. This is how modern futures contracts first came into being. The Chicago Board of Trade (CBOT) which opened in 1848 is, to this day the largest futures market in the world.

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Currency Derivative Business Perspective Project Report

WHAT IS FOREX MARKET?
The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex is to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies, evaluated for instance in US dollars, fluctuate towards its higher and lower meanings.

Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round – the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open. Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules.

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Equity Valuation of Public Sector Enterprises of Nifty 50 Project Report

OBJECTIVE OF THE STUDY:
Primary:
To do fundamental analysis and calculate intrinsic value of Public Sector Enterprises which are represented in NIFTY 50. Here PSEs is considered to be that companies where Government of India is having more than 50% stake and no other government is taken into consideration.

Secondary:
1. Analyzing historical performance.
2. Estimating growth prospect of various companies.
3. Understanding Discounted Cash Flow model and its usage.
4. To learn about linkages between share values, earnings, and expected return on capital.

SCOPE:
The analysis is based on main activities i.e. operating activities of the company and other activities are ignored. Assumptions are based on recent annual reports, past performance, current trends in that sector and statistics of RBI. We have considered only PSEs that are represented in NIFTY 50 and our assumptions are limited to those companies only and not all PSEs or any other companies.

RESEARCH DESIGN:
Research design selected for this project is descriptive.

DATA COLLECTION METHOD:
Data for our objective was collected through companies’ website i.e. secondary data and various other websites to know the current scenario.

TARGET:
Public Sector Enterprises of India representing in NIFTY 50. Here PSEs is those companies where Government of India is having more than 50% stake and not any other government.

SAMPLING TECHNIQUE:
Convenience sampling.

SAMPLE SIZE:
6 companies (basically there are 7 companies but we have ignored PowerGrid from our estimation because just two years have passed for the company going public so it is difficult to estimate and make assumptions based on it).

BENEFICIARY:
1. Investors in stock market.
2. Students pursuing professional courses like MBA, CFA, CFM and likewise.
3. Financial Institutions and Mutual Funds.
4. Ministry of Finance for disinvestment policy.

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Contemporary Issues in Banking Sectors

The main object of the project was to learn about the contemporary issues in banking sector such as Bank@Home, Retail business development, Money laundering, Cheque truncation and equator principle.

In order to understand and analyze the feasibility and response of BANK@HOME service, we focus on the walk inns at the branch that already are customers of the bank and meet them while they were in queue waiting for their turn through informal communication. Obtained information revealed that many of the existing customers who live even far off from the branch have high frequency of visits to the branch. The Bank will have to promote the service in order to reach out to the customers and make its presence felt. Observation also indicated that the foot falls at the branch actually come from various parts of the city irrespective of the relationship the customers have with the branches through out the city, which will make the task even more difficult to put up drop boxes throughout the city strategically For awareness of the service we gave awareness strategies, Promotional strategies, Pamphlet to educate customers Regarding the service, places where the drop boxes should be placed, and some suggestions to overcome the problem which may arise.

Retail business development Model that is basically a new dimension of selling product to customers for nationalized banks, , in order to grow in the present scenario banks have to make sure that they attract new clients not only by providing them new service but also by making them aware and wining their trust. Rbd helps banks in achieving their goals. we have made the attempt that how rbd can become revenue generation model for the bank.

Money Laundering refers to the conversion or "Laundering" of money which is illegally obtained, so as to make it appear to originate from a legitimate source. Here we have studied the role of banks in money laundering concept.

Truncation is the process of stopping the flow of the physical cheque issued by drawers the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. Here we have studied how this concept will be helpful to banks as well as customers.

Equator Principles are voluntary set of guidelines developed for managing social and environmental issues related to the financing development projects. Banks adopting the Equator Principles undertake to provide loans only to projects whose sponsors can demonstrate their ability and willingness to comply with comprehensive processes aimed at ensuring that projects are developed in a socially responsible manner and according to sound environmental management practices. Here the purpose of study is to understand the role of banks in equator principles.

Impact on Shareholders Wealth in M&A Episode Project Report

The Indian economy has undergone a major transformation and structural change
during the past decade or so as a result of economic reforms introduced by the
Government of India since 1991 in the wake of policy of economic liberalization and
globalization. In this liberalized era, size and "core competence" have become the
focus of every business enterprise. Naturally, this requires companies to grow and
expand in businesses that they understand well. Thus, leading corporate houses have
undertaken a massive restructuring exercise to create a formidable presence in their core areas of interest. Mergers and acquisitions (M&As) is one of the most effective methods of corporate restructuring and has, therefore, become an integral part of the long-term business strategy of corporate.

The M&A activity has its impact on various diverse groups such as corporate
management, shareholders and investors, investment bankers, regulators, stock
markets, customers, government and taxation authorities, and society at large.
Therefore, it is not surprising that it has received considerable attention at the hands of researchers world over. A number of studies have been carried out abroad
especially in the developed capital markets of Europe, Australia, Hong Kong, and US.

These studies have largely focused on different aspects, viz., (a) the rationale of
M&As, (b) allocational and redistribution role of M&As, (c) effect of takeovers on
shareholders' wealth, (d) corporate financial performance, etc. Some studies have
also been carried out to predict corporate takeovers using financial ratios. M&As,
being a new phenomenon in India, has not received much attention of researchers.
In fact, no comprehensive study has been undertaken to examine various aspects
especially after the Takeover Code came into being in1997. This study has been
undertaken to fill this gap.

Until upto a couple of yea Indian companies having acquired American-European entities was very rare. However, this scenario has taken a sudden U turn. Nowadays, news of Indian Companies acquiring foreign businesses are more common than other way round.

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Study of Housing Finance Sector Project Report

Housing Finance sector in India
Industry Classification
Life cycle position
Housing finance as a financial service is relatively young in India. The growth in housing and housing finance activities in recent years reflect the buoyant state of the housing finance market in India. The real estate sector is the second largest employment generator in the country.

In 1970, the state set up the Housing and Urban Development Corporation (HUDCO) to finance housing and urban infrastructure activities, in 1977, the Housing Development Finance Corporation (HDFC) was the first housing finance company in the private sector to be set up in India.

Currently there are 29 HFCs approved for refinance assistance from NHB.
The following types of home loans are generally available in the market:
Home Equity Loans: A form of finance to the customer by way of mortgage of existing property to the financier for taking a loan for some other purpose. The current market value of the property is the basis for providing home equity loans.
Home Extension Loans: The purpose of this loan is the extension of existing houses tike the addition of rooms, toilet facilities etc. Such loans fall under the category of home loans.

Home Improvement Loans: These loans are provided mainly for repairs and maintenance of existing houses- These could include internal and external repairing, waterproofing and roofing, complete interior renovation, tiling and flooring etc.

Home Purchase Loans: Finance provided for the purchase of ready-made houses.

Land Purchase Loans: These loans are being provided for the purchase of land for the purpose of construction of residential houses.Private housing finance sector is also doing very well in catering the need for housing finance. Dewan Housing Finance Corporation Ltd. is one of the best options in private housing finance sector. Having 22 branches all over the country and dealing in the market for more then 15 years, the group is well established in the market. Rural housing finance is one of the best schemes in India offered by Dewan Housing. With most competitive interest rates in private sector housing finance market, and personalized finance is made available to informal sectors besides formal sector like service class.

HUDCO is a powerful government organization. Financing state government for infrastructural development is the main aim. But ever since it has entered individual housing finance sector, the entire scenario has changed. The main war of interest rates has actually begun when HUDCO has started giving housing finance for 11.5 % and after deductions the interest rates comes to 8.81%.
After NHB, many housing finance companies looked at HUDCO for refinancing their proposals.

Hometrust Ltd., a company by Gujarat Ambuja Group, Global Housing finance Ltd., a syndicate of reputed builders, Weizmann Homes Ltd., a company from Weizmann Finance Ltd., Maharishi Housing Finance Corporation Ltd., a company from Maharishi Group, are also catering to housing finance sector. SBI Home finance Ltd., a subsidiary of SBI, PNB Housing Finance Ltd., a subsidiary of PNB is also doing very good business. SBI Home Finance Ltd. is doing little bit slow for the time being but PNB Housing Finance Ltd. has recently opened its new branch near Shoppers Stop, Andheri. BOB Housing Finance Ltd., a subsidiary of Bank of Baroda also having very attractive housing finance schemes. Can Fin Homes, very aggressive subsidiary of Canara Bank in Southern India, is also doing very good job in Western parts of the country.
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Nifty Derivatives & Risk Minimization Trading Strategy Project Report

EXECUTIVE SUMMARY
One of the interesting developments in financial markets over the last 15 to 20 years has been the growing popularity of derivatives or contingent claims. In many situations, both hedgers and speculators find it more attractive to trade a derivative on an asset than to trade the asset itself. Some derivatives are traded on exchanges. Others are made available to corporate clients by financial institutions or added to new issues of securities by underwriters.

In this report we have included history of Derivatives. Than we have included Derivatives Market in India. Than after we have included stock market Derivatives.

In this report we have taken a first look at forward, futures and options contracts. A forward or futures contract involves an obligation to buy or sell an asset at a certain time in the future for a certain price. There are two types of options: calls and puts. A call option gives the holder the right to buy an asset by a certain date for a certain price. In India the derivatives market has grown very rapidly. There are mainly three types of traders: hedgers, speculators and arbitrageurs.

In the next section, we have tried to determine the study of Nifty derivatives for the short term period using the two important indicators namely Open Interest & Put/Call Ratio. In which Put/Call Ratio analysis proves to be more effective indicators. Moreover in the analysis of Put/Call Ratio, Combination of Open Interest & Volume gives more accurate results.

In the last section, we have determined different trading strategies for different market views i.e. Bullish, Bearish, Range bound & Volatile. On the basis of investors’ perceptions they can use suited strategies which will minimize the loss. There are also some arbitrage strategies prevailing in the market like reversal, conversion etc. which give fix amount of profit irrespective of market movements but it is not readily available in the market but one has to grab such Opportunities.

Objectives
To determine the short term trend of nifty future using the important derivatives market indicators like Open interest and Put Call ratio.
To determine the derivatives trading strategy on the basis of different market outlooks which will minimize the risk exposure and at the same times will maximize the profits.

Scope of study
We have done the study of nifty futures only.
We have studied the short term trend of nifty futures for the month of Feb, 2010 only.

We have used two important indicators Open Interest and Put-Call Ratio only to determine the trend of Nifty.

Data collection sources
Primary –No
Secondary
• Various stock market web sites
• Magazines
• Capitaline Neo software
• Odin diet Software

Beneficiaries of study
• Derivative traders
• Hedge funds
• Institutional investors
• Arbitragers
• Hedger
• Speculators
• Jobbers
• Investors
• Student
• Share broker
• Broking houses
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Relationship Between Exchange Rate & Stock Indices Project Report

Literature Review
Apte (2001) investigated the relationship between the volatility of the stock market and the nominal exchange rate of India by using the EGARCH specifications on the daily closing USD/INR exchange rate, BSE 30 (Sensex) and NIFTY-50 over the period 1991 to 2000. The study suggests that there appears to be a spillover from the foreign exchange market to the stock market but not the reverse.
Bhattacharya and Mukharjee (2002) studied the nature of causal relation between the stock market, exchange rate, foreign exchange reserves and value of trade balance in India from 1990 to 2001 by applying the co-integration and long-run Granger Non-causality tests. The study suggests that there is no causal linkage between stock prices and the three variables under consideration.

To examine the dynamic linkages between the foreign exchange and stock markets for India, Nath and Samanta (2003) employed the Granger causality test on daily data during the period March 1993 to December 2002. The empirical findings of the study suggest that these two markets did not have any causal relationship. When the study extended its analysis to verify if liberalization in both the markets brought them together, it found no significant causal relationship between the exchange rate and stock price movements, except for the years 1993, 2001 and 2002 during when a unidirectional causal influence from stock index return to return in forex market is detected and a very mild causal influence in the reverse direction is found in some years such as 1997 and 2002.
Yamini Karmarkar and G Kawadia tried to investigate the relationship between RS/$ exchange rate and Indian stock markets. Five composite indices and five sectoral indices were studied over the period of one year: 2000. the results indicated that exchange rate has high correlation with the movement of stock markets.

Research Objectives
The present study is being contemplated with the following specific objectives:
i) Investigating the relationship between the foreign exchange market and stock market in India. To see that weather there is a significant relationship or dynamic linkage between the two markets.
ii) To find out which variable is leading and which variable is lagging. The lead-lag relationship illustrates how well the two markets are linked, and how fast one market reflects new information from the other. If relation between foreign exchange market and stock market exist, then it is possible that investor may use this information to predict the exchange rate movement or indices movement.

Hypothesis
H0: There is no significant relation between stock prices and exchange rates
H1: There is significant relation between stock prices and exchange rates

Research Design
The study type is Descriptive because this research helps to find out the meaning out of the secondary data, but not the cause-and-effect (causal) linkages among its different elements.

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Mergers & Acquisitions Tata Group Project Report

Objective of the study
• To compare the closing price of 5 companies before and after post acquisition
• To compare the key financial ratios of 5 companies before and after acquisition
• To do valuation of one or two companies with the method enterprise value and compare the value with peer group and analyze in detail
• To analyze detailed case study of 5 companies of Tata Group
• To analyze percentage cumulative abnormal return of one month both before acquisition and after acquisition.

Scope of the study
• To do a relative analysis between BSE Sensex and the share price of the TATA Group of companies
• Limited to 5 companies of TATA
• Limited to daily prices of stocks both before and after one month of acquisition

TATA GROUP OF COMPANIES
• One of the India’s largest business groups in the country
• It has about 96 operating companies
• Diverse business in 7 sectors
• Revenues equivalent to 5.3% of India’s GDP
• Group revenue FY 2008: Rs 251,543 Cr. / $ 62.5 b
• Group profit FY 2008: Rs 21,578 Cr. / $ 5.4 b
• Its 27 publicly listed companies have a combined market capitalization which is the 2nd highest among all business houses in India
• Largest employer in private sector over 300,000 employees
• A shareholder base of over 2.9 million
• Operations in over 80 countries
• Products and services exported to 85 countries

Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251, 543 crore), of which 61 per cent is from business outside India. The group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics.
The business operations of the Tata group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals.

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Usage Patterns of Credit Cardholders

RESEARCH METHODOLOGY
Objectives of the Project
The primary objective of the report is categorized into following sub-topics:
1. To study the demographic factors of credit card holders.
2. To know the using purpose of credit card by the holders.
3. To assess the behavioural changes of credit card holders.
4. To examine the consumption pattern of credit card holders.
5. To find out the satisfaction level of existing credit card holders.
6. To suggest measures to improve the credit card system in India

Data sources
Primary sources
Primary data has been collected through the structured questionnaire consisting mainly of the closed ended questions.

Secondary sources
Secondary data has been collected from the internet, journals, reference books etc.

Scope of the study
All the questions have been analysed by adding up the responses against each alternative and answers from the various respondents. The collected data has been subject to statistical analysis to draw inferences and suitable conclusions. Statistical tools like chi-square and percentage are used. For calculating the table value for analysis with chi-square, 5% significance level is used.
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Corporate Dividend Policy Project Report

Introduction
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend.

For a joint stock company, a dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense; rather, it is the division of an asset among shareholders. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from a regular one.

Cooperatives, on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be a pre-tax expense.
Dividends are usually settled on a cash basis, store credits (common among retail consumers' cooperatives) and shares in the company (either newly-created shares or existing shares bought in the market.) Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder.

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Comparative Analysis of Public & Private Sector Banks using SERVQUAL Dimensions

Scope of the study:
The study would try to throw some insights into the existing services provided by the banks and the gap between the customer expectations, perceptions and the actual state of performance. The results of the study would be able to recognize the lacunae in the system and thus provide key areas where improvement is required for better performance and success ratio.

Research Objectives:
(1) To find out the level of expectation and the level of perception of the customers from the services offered by the banks.
(2) To compare the level of perception and expectation of the services offered by the banks.
(3) To know which service quality dimension the bank is performing well and in which dimension it needs improvement.
(4) To know the preference towards the public sector and private sector banks.

Sampling Design:
=> Targeted banks: ICICI,HDFC,SBI,BOB
=> Sampling Frame: All the customers of four banks in Ahmedabad.
=> Sampling Unit: Any customer of four banks in Ahmedabad.
=> Sampling Area: Ahmedabad.
=> Sampling Method: Non- Probability Convenience Sampling

Research tool :
• SERVQUAL Analysis
SERVQUAL is an instrument for measuring how customers perceive the quality of a service. In the mid-1980s Berry and his colleagues Parasuraman and Zeithaml began to investigate what determines service quality and how it is evaluated by customers. As a result of their study they developed the SERVQUAL instrument for measuring service quality, which initially included 10 service quality dimensions, which were later reduced to the following five: tangibles, reliability, responsiveness, assurance and empathy.

The instrument is based on the idea of the disconfirmation model, in other words on the comparison of customers’ expectations with their experiences from the service. Usually, the five dimensions of the instrument are described through the use of 22 attributes an “respondents are asked to state (on a seven-point scale from “Strongly disagree” to “Strongly agree”) what they expected from the service and how they perceived the service.”
This instrument has been widely used by researchers, but still, there are some controversies in its applicability across different service industries. In some studies the five dimensions of the instrument (determinants) have been found to be unstable across different types of services. Therefore, the SERVQUAL tool should be applied very carefully and the set of determinants and attributes used should be adapted to the specific situation.
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Corporate Governance Project Report

1) Introduction:
Corporate governance:
Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled.

Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed.

The principal stakeholders are the shareholders/members, management, and the board of directors. Other stakeholders include labour (employees), customers, creditors (e.g., banks, bond holders), suppliers, regulators, and the community at large.
An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem.

It is a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, and complying with the legal and regulatory requirements, apart from meeting environmental and local community needs.
Report of SEBI committee (India) on Corporate Governance defines corporate governance as the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company.

Issues involving corporate governance principles include:
• Internal controls and internal auditors
• The independence of the entity's external auditors and the quality of their audits
• Oversight of the preparation of the entity's financial statements
• Review of the compensation arrangements for the chief executive officer and other senior executives
• 2) Objective of the Research:
• To analyze corporate governance practice of BSE-30 companies for last five years with reference of mandatory disclosure described by SEBI for Indian companies.
• To find out importance of corporate governance in Indian companies from the view point of the Company Secretary.
• To find out the awareness of functioning of Corporate Governance amongst investors who are fundamental analyst. To evaluate the importance of corporate governance as a parameter for investor before investing.

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Difference Between Financial Management and Book Keeping

If you are one among those who relates finicky management to book obligation then you pauperization to re-think. In fact, there are umteen fill who view financial management quasi to collection holding or oftentimes gets silly to specialise between both of them. Perhaps, the number between fact duty and business management is a standard inquiry among numerous sophomores who are impatient to benefit knowledge and human a business in the arena of financial and business management. From an basic perspective, the vista of business management is a monumental field, and much broader than that of square aggregation safekeeping methodologies. It is lawful that most of the business management programs obligation in their syllabi, but as a healthy, the ins and outs, info of business thinking and management are monumental in amount and connectedness.

Generally, the assemblage keeping machine deals with the conventional methods of job that primarily considers the debiting and crediting of various monetary transactions. On else collection, the distinct facets of business management do not only handle with accounting, but it flatbottomed includes else set subjects specified as economics, science and transaction.

The machine of bookkeeping is largely machinelike and oft do not enjoin any discussion cerebrate. Instead of the analyzing, the bookkeeping majorly depends on the recording of the entropy. On another pardner, FM once again also come to seek associated to playacting. Every sector that has a easily definite system or flush a advantage cash flow can bonk a job. Now through whatever tried and literal methods of prissy financial manag
mint with them much effectively.

Moreover, F.M as a complete can be generally delimited as the activity of lengthways the business resources, including financial reportage, budgeting, venture management, and contract for a mercantilism. In fact, it primarily refers on two key aspects - how you are rattling financing your playacting and how vessel you handle the money in the concern. Nonetheless, accounting essentially talks almost the day to day action of an occupation group. It majorly refers the recording of patron transactions within the worthy accounts. An job system defines the touch of recognizing, evaluating, recording and conversation nigh the financial content concerning the playing. So, in lancelike words, the bookkeeping can also be reasoned as a subset of the accounting system.

Without dubiety, financial management mostly encompasses a merchandise of determinant areas of playing, but at aforesaid the playing results are unremarkably delivered in forms of reports. Consequently, talking in the recognise environment both business management and accumulation obligation individual their own part to behave, but having a knowledge of both can ever verify superior employment in the marketplace. Both of them are salutary in position of salary and also at circumstance of job spirit.

Business Management Courses - Why Financial Management is a Popular Idea

Business management or financial management is that vista of management which involves the employment of pervading management principles to special financial dealings. It basically entails provision within a business undertaking to secure a confirming cash current and tap shareowner wealth. Financial management includes a broad product of tangled practices and processes, including the governance and fix of financial aspects and identifying and managing risks.

The decisions that financial managers necessary to hit are in compliments to finance, investments, payouts of dividends, and employed metropolis management. They generally encounter difficulties in the mould of measuring problems, uncertainty, and temporal spreading. Financial managers status to be informed with the tools and concepts of financial management, much as grapheme budgeting, sources of finance, various types of financial statements, financial business, business news, and chance management.

Managerial or joint economics is the chore of providing funds for a house's activities. Its end is the maximisation of the lot's riches and the treasure of its grip, while leveling peril and profit. People entrusted with the business management of corporations must be undamaged in the practices of business management if they are run an system successfully.

Supposition the grandness of business managers in today's commercialism surround, it is not amazing that a statewide variety of courses from the full-time MBA to the online courses bristle.

Business is perhaps the most nonclassical pick for candidates search management degrees. The enactment of the business manager is to administrate the procreation of business psychotherapy and reports to cater with the affiliate's selection making, line usage, and author importantly, strategic mentation. The job of the business psychiatrist is to use these tools and devices to cause the visitant's investments and concern ontogenesis. Financial analysts and managers today witticism a determining portrayal in effecting mergers and spheric finance and treatment.

If you are hunt for a part in business in a substance to hulky corp, the stage announcement is what you module status to see at, relinquished the complexities of financial management in voluminous corporations. When choosing a programme, remember that with management and management degrees, the institute that you device staleness be honourable and established in the business. Accreditation bodies survive specifically for MBA programs to administer the body and degree of sector activity, so it is desirable for a alumna, you are already lengthways your own pocketable or matter labor or non-profit system, and essential to hold the tools of financial management to run your disposal much effectively, you can opt for the shorter courses or the online programs offered by the umteen institutes.

Several MBA programs furnish tailor-made courses that could be full-time, part-time, and length acquisition courses with technical concentrations. Accelerated MBA programs concern a higher series headache and more deep and interrogatory schedules. Part-time courses are another deciding, with classes state held in evenings, after sane employed hours, or on weekends. Chief MBA programs are developed to fulfill the training needs of full-time managers and executives, allowing them to acquire their degrees without conciliatory their jobs.

From this spectrum of financial management courses, there is really one for apiece one to raise our own financial management skills and fuck our enterprises to the lancinate bound!

Tips for Effective Financial Management

In many organisations, managers and body incline into the cakehole of believing that financial management is something that the accounts group are fully prudent for. Spell there leave be areas similar change management, department, salaried suppliers and aggregation payments from customers that are liable to be handled by the accounts team, financial management falls into the loose of all managers and body. Mangers oftentimes bed concerns almost this region, ofttimes believing that it is tall and colonial. The truth is that if you are an practiced in your extent of the performing, you can surpass in business management. So what are my key tips?

Tip 1: Be actively interested in service a budget
Most businesses now degenerate budget area as such as they perchance can. As a ensue, managers possess a adventure to be actively attached in determining things equal:
o Sales volumes
o Temporary staffing deal for vacancies
o Staffing levels to throw the income
o Purchasing preferences in cost of products that module be old in delivering united volumes
o Investment in new equipment or facilities
Don't lack out on your amount to influence your budget.

Tip 2: Be innocent on your assumptions
A budget is a intend for the emerging based on the someone grounds you hold at the abstraction you prepare it. You will score to achieve assumptions nigh things like income growth, body bulk, symptom, soprano inflation, etc. Accomplish trustworthy that when presenting your budgets the assumptions are understandably explicit.

Tip 3: Wreak with your controller
Your businessperson who mechanism with you in the playing is essentially your individualized mercantilism consultant. Use your bureaucrat in this way and you gift harvest numerous benefits. Your controller gets a ameliorate apprehension of your atlantic of the enterprise and what the key drivers of revenues and costs are, which leave be immensely facilitatory when it comes to reviewing execution throughout the assemblage.
In acquisition, your accountant can work results for you based on contrasting assumptions and ameliorate you to get a some clearer depict of the risks that mightiness require to be managed.

Tip 4: Deal the budget with your team
As a administrator and soul, your success depends on the results of the unit. Get the instant to share your budget with your aggroup, including the key assumptions on which it is based. If the unit live what they are aiming for in terms of business results, they faculty appear to do the starboard things operationally to get the person outcome.

Tip 5: Track trustiness
When the leaving gets difficult it is so leisurely to signaling to await elsewhere for excuses. If you make been embroiled in surround a budget which you eff signed up to, emphasis your energies on feat results kinda than the unrighteousness of the prevailing condition.

Tip 6: Protector performance and endure spread
Micturate sure that you bang a growth in post to carefully varan your genuine action against the budget. If things are exploit asymptomatic see if there is solon you can do to boost show flush further. If on the added collection things are not going as source as likely, adapt on the changes you requirement to modify or activeness you impoverishment to sel

Tip 7: {Focus on the most great numbers
When it comes to financial management, managers can sometimes get confiscate in lots of point and object. Be cloudless on what are the 2-3 big drawing that you requirement to pay tending to, as they give more than probable represent virtually 90% of your budget. In most businesses this module be:

o Income from sales or services
o Salary costs of employees
o Star non salary cost such as materials

Make careful that you change as respectable an savvy of what impacts on these drawing at the concern object dismantle so that you can rest things on trail.

At the end of the day, inside business statements specified as budgets merely emit what is happening operationally in a communal presentness titled money. Have this at the perspective of your nous and you score a outstanding attempt to excel as a handler.

Working Capital Management at Bank of Maharastra Project Report

Executive summary
Working capital management refers to the administration of all aspects of current assets, namely cash, marketable securities, debtors and stock (inventories) and current liabilities. The financial manager must determine levels and composition of current assets. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time.

There are many aspects of working capital management, which make it an important function of the financial manager:
• Time: working capital management requires much of the financial manager’s time.
• Investment: working capital represents a large portion of the total investments in assets.
• Significance: working capital management has great significance for all firms but it is very critical for small firms.
• Growth: the need for working capital is directly related to the firm’s growth.

Investment in current assets represents a very significant portion of the total investment in assets. Working capital management is critical for all firms. A small firm may not have much investment in fixed assets, but it has to invest to in current assets. Small firms in India face a severe problem of collecting their debtors.

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Inventory Management at Whirlpool

ABSTRACT
Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets/working capital in most of the undertakings. Thus, it is very essential to have proper control and management of inventories. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimise investment in inventories. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Because of the large size of the inventories maintained by firms, a considerable amount of funds is required to be committed to them. It is therefore absolutely imperative to manage inventories efficiently and effectively in order to avoid unnecessary investments. A firm neglecting the management of inventories will be jeopardizing its long run profitability and may fail ultimately. The reduction in excessive inventories carries a favorable impact on the company’s profitability.

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Analysis of Demat Account and Online Trading Project Report

Objectives:
An objective is the brainchild behind any project report. A project report will always have a certain objective which needs to be accomplished. Following are the objectives behind the preparation of my project at Indiabulls securities Ltd.

=> To Compare Indiabulls Online share trading account with the big players in the Market i.e. ICICI, KARVY, HDFC, RELIENCE MONEY as well as with INDIA INFOLINE.
=> Identify the areas where INDIABULLS Scores above its competitors and what are its weak links.

=> Know the market potential of INDIABULLS considering the fact that there are many competitors in this field with some more firms expected to join the fray in the near future. This will be done with the help of a questionnaire. Provide suggestions to the company regarding what else it can do to stand apart in this ever competitive field and thereby emerge as a market leader.

=> To understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered.

=> After understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization.

=> To Study present online share trading


Limitations of study:
=> The respondents who have not given any information are not included in the sample but do come under the population.
=> It was not possible to cover each and every client of each and every broking house and hence a sample of 100 people was taken.
=> The market share of all the online share trading products is only for the city of Varanasi. The market share of all the companies may differ in different cities. It may also differ nationally.
=> Due to the tough competition each & every broking firm is offering different schemes like, free opening A/c or different advance brokerage schemes where Indiabulls is lacking in this area.

Scope Of Study
=> It provides a complete knowledge of various fundamental concepts of share market and online trading.
=> It will help in analyzing the behavior of consumers and help in Knowing the parameters of investment on which they would like to invest..
=> Through this project I am not only bringing long term clients for my organization but also creating a word of mouth publicity of my organization by offering the best services to the clients so that more and more potential customer will come and stick to my organization.
=> Also through this project I suggest the organization the behavioral pattern of investor towards different instruments.
=> From the study I have learned very much, about the company as well as the strategy of the customers, which helps me a lot at my working days.

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Universal Banking and its Potential for Indian Market Consumers Project Report

ABSTRACT
Different types of financial products and services penetrate our daily activities. As a major group of financial institutions, banks have been expanding their service scope, and hence, universal banks, which provide a variety of financial products and services in one house, have experienced growing popularity in some industrialized countries. In India, banking institutions have assumed a key role in the simplistic financial sector. Commercial banks have made effort to diversify their products and services, but a lengthy process is expected for their transition into truly universal banks. It is argued that the current structure and practices of the local market also contribute to this lengthy transformation. Thus, banks, which assume a leading position in most financial systems, have to be prepared for the growing need of their customers. Also, government should provide necessary assistance to banks for aiding them to get converted into universal banking system for the benefit of Indian customers.

INTRODUCTION
Banking institutions are dominant operators in modern financial systems and important business entities in an economy. They are divided into two separate types of institutions, namely commercial banks and investment banks in some countries, while in other countries such division is vague or even non-existent. The so-called universal banks engage in all forms of commercial and investment banking, not only including lending and deposit taking, but also underwriting securities and securities trading. In particular, some universal banks may own significant equity interests in companies with voting rights.

Germany is the typical example running the universal banking system. Canada and Switzerland, among others, are noteworthy examples moving towards universal banking. Despite the growing popularity of universal banks in a global context, the United States continues to block commercial banks from engaging in securities transaction and underwriting. Hence, it is argued that the practice of universal banking may not be suitable for all financial systems.
This project is designed to discuss primary practices of universal banks and their relevance to banking activities in India. The objective is to analyze whether the concept of Universal Banking, if implemented by Indian banks, have potential for Indian market consumers.

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Project Report on Working Capital Management

INTRODUCTION OF WORKING CAPITAL
The net working capital of business is its current assets less its current liabilities.
Current Assets include:
• Stock of Raw Material
• Work in Progress
• Finished Goods
• Trade Debtors
• Prepayments
• Cash Balances

Current Liabilities include:
• Trade Creditors
• Accruals
• Taxation Payable
• Dividends Payable
• Short term Loans

Every business needs adequate liquid resources in order to maintain day to day cash flows. It needs enough cash to by wages and salaries as they fall due and to pay creditors if it is to keep its workforce and ensure its supplies. Maintaining adequate working capital; is not just important in the short term.

Sufficient liquidity must be maintained in order to ensure the survival of business in the long term as well. Even a profitable business may fail if it does not have adequate cash flows to meet its liabilities as tyhey fall a due. Therefore when business make investment decisions they must not only consider the financial outlay involved with acquiring the new machine or the new building etc, but must also take account of the additional current assets that are usually involved with any expansion of activity .

Increase production tends to engender a need to hold additional stocks of raw material & work in progress.
Increased sales usually mean that the level of debtor will increase. A general increase in the firm’s scales of operation tends to imply a need for greater level of cash.

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Working Capital Management in Reliance Industries Ltd Project Report

Introduction Working capital management
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 & inventories. Funds, thus, invested in current assts keep revolving fast and are being constantly converted in to cash and this cash flows out again in exchange for other current assets. Hence, it is also known as revolving or circulating capital or short term capital.

Working capital management is concerned with the problems arise in attempting to manage the current assets, the current liabilities and the inter relationship that exist between them.

The term current assets refers to those assets which in ordinary course of business can be, or, will be, turned in to cash within one year without undergoing a diminution in value and without disrupting the operation of the firm. The major current assets are cash, marketable securities, account receivable and inventory.
Current liabilities ware those liabilities which intended at there inception to be paid in ordinary course of business, within a year, out of the current assets or earnings of the concern. The basic current liabilities are account payable, bill payable, bank over-draft, and outstanding expenses.

The goal of working capital management is to manage the firm’s current assets and current liabilities in such way that the satisfactory level of working capital is mentioned.
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Mutual fund Industry Project Report

INTRODUCTION OF MUTUAL FUNDS
Mutual funds have become a very popular way to take some of the risk out of investing in individual stocks by investors. Mutual funds are a collection of stocks selected by mutual fund seller and sold to investors as shares in a fund. There are several types of funds that you can invest in. Some of the more popular types are technology funds, growth funds, security funds, and income funds. Mutual funds are very popular because they allow you to invest in a numbers of stocks therefore greatly reducing the risks associated with putting you money in an individual stock.

Mutual funds have become one of the most attractive ways for the average person to invest their money. A mutual fund pools resources from thousands of investors and then diversifies its investment into many different holdings such as stocks, bonds, or government securities in order to provide high relative safety and returns.
Mutual Funds now represents perhaps the most appropriate opportunity for most investors. It is no wonder that birthplace of mutual funds - the U.S.A.- the fund industry has already overtaken the banking industry. The Indian industry has already started opening up many of the exciting investment opportunities to Indian investors.

Though not insured like banks, mutual funds generally provide more return than the current one to two percent obtainable through banks while still being one of the safest ways to grow your money. There are an endless variety of mutual fund investment choices depending on the degree of risk you feel comfortable with.
Mutual Funds have emerged as professional intermediaries. Besides providing the expertise in stock market investing, these funds allow investing in small amounts and yet holding a diversified portfolio to a limit.

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project report on EQUITIES–Cash & Derivatives

Executive Summary
In few years Share Market has emerged as a tool for ensuring one’s financial well being. Share Markets have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in Share Markets. once people are aware of Share Market investment opportunities, the number who decide to invest in Share Markets increases to as many as one in every five people.

This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability.

The first part gives an insight about Share Market and its various aspects, the Company Profile, Objective of the study, Research Methodology. One can have a brief knowledge about Share market and its basics through the project.

The second part of the Project consists of Friday market analysis collected from past records This Project covers the topic of “ FRIDAY MARKET INVESTING PLAN ” The data collected has been well organized and presented. I hope the research findings and conclusion will be of use.

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Potential of Life Insurance Industry in Surat Market Project Report

Executive Summary
The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph towards upwards are - Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy.

Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that “Insurance is only for classes not for masses” but now the picture is vice-versa.

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

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Project Report on Cash Management of Standard Charted Bank

Introduction

Cash management is a marketing term for certain services offered primarily to larger business customers. It may be used to describe all bank accounts (such as checking accounts) provided to businesses of a certain size, but it is more often used to describe specific services such as cash concentration, zero balance accounting, and automated clearing house facilities. Sometimes, private bank customers are given cash management services.

The following is a list of services generally offered by banks and utilised by larger businesses and corporations:
• Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company's true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as positive pay.

• Advanced Web Services: Most banks have an Internet-based system which is more advanced than the one available to consumers. This enables managers to create and authorize special internal logon credentials, allowing employees to send wires and access other cash management features normally not found on the consumer web site.

• Armored Car Services: Large retailers who collect a great deal of cash may have the bank pick this cash up via an armored car company, instead of asking its employees to deposit the cash.

• Automated Clearing House: services are usually offered by the cash management division of a bank. The Automated Clearing House is an electronic system used to transfer funds between banks. Companies use this to pay others, especially employees (this is how direct deposit works). Certain companies also use it to collect funds from customers (this is generally how automatic payment plans work). This system is criticized by some consumer advocacy groups, because under this system banks assume that the company initiating the debit is correct until proven otherwise.



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Project Report on Microfinance in India

Introduction

Microfinance is defined as any activity that includes the provision of financial services such as credit, savings, and insurance to low income individuals which fall just above the nationally defined poverty line, and poor individuals which fall below that poverty line, with the goal of creating social value. The creation of social value includes poverty alleviation and the broader impact of improving livelihood opportunities through the provision of capital for micro enterprise, and insurance and savings for risk mitigation and consumption smoothing. A large variety of actors provide microfinance in India, using a range of microfinance delivery methods. Since the ICICI Bank in India, various actors have endeavored to provide access to financial services to the poor in creative ways. Governments also have piloted national programs, NGOs have undertaken the activity of raising donor funds for on-lending, and some banks have partnered with public organizations or made small inroads themselves in providing such services. This has resulted in a rather broad definition of microfinance as any activity that targets poor and low-income individuals for the provision of financial services. The range of activities undertaken in microfinance include group lending, individual lending, the provision of savings and insurance, capacity building, and agricultural business development services. Whatever the form of activity however, the overarching goal that unifies all actors in the provision of microfinance is the creation of social value.



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