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19th July 2017, 02:36 PM
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| Re: IOB Bank Project
As you are looking for sample project based on Evaluation of Working Capital Management inIndian Overseas Bank, so here I am providing sample project: Sample Projecton Evaluation of Working Capital Management in Indian Overseas Bank INTRODUCTION The overall success of the company depends upon its working capital position. So it should behandled properly because it shows the efficiency & financial strength of a company. WCM is highly important in firms as it is used to generate further returns for thr stakeholders. Working Capital Management is a very important fact of financial management due to: Investments in current assets represent a substantial portion oftotal investment. Investment in current assets & the level of current liabilities have to be geared quickly to change sales. The working capital is the life blood & nerve centre of a business firm. The importance ofworking capital in any industry needs no special emphasis. No business can run effectively without a sufficient quantity of working capital. It is crucial to retain right level of working capital. WCM is one of the most important functionsof corporate management. A business enterprises with ample working capital is always in aposition to avail advantages of any favourable opportunity either to buy raw material or toimplement a special order or to wait for enhanced market status. Working capital can be utilized for operating costs that are involved in the everyday life ofbusiness. Even very successful business owners may need working capital funds when theunexpected circumstances arises. WCM is highly important in firms as it is used to generate further return for the stakeholders.When working capital is managed improperly, allocating more than enough of it will rendermanagement non-efficient & reduce the benefits of short term investments. On the other hand, ifworking capital is too low, the company may miss a lot of profitable investment opportunities orsuffer short term liquidity crises, leading to degradation of company credit, as it cannot respondeffectively to temporary capital requirements. Some the points to be studied under this topic are: How much cash should a firm hold? What should be the firms credit policy? How to & when to pay the creditors of the firm? OBJECTIVES The objectives of project on Management of working capital are as follows-: To determine policy regarding profitability, liquidity and risk by consideringcompany s objectives. To determine the quantum and structure of current assets. Determining the relationship between the current assets and current liabilities andhence liquidity is determined. Optimization of the amount of sales and investment in receivables. Analysis of Financial Statements SCOPE The management of working capital helps us to maintain the working capital at asatisfactory level by managing the current assets and current liabilities. It also helps tomaintain proper balance between profitability, risk and liquidity of the businesssignificantly. By managing the working capital, current liabilities are paid in time. If the firm makespayment to it creditors for raw material in time, it can have the availability of rawmaterial regularly, which doesn t cause any obstacles in production process. Adequateworking capital increases paying capacity of the business but the excess working capital causes more inventory, increases the possibility of delay in realization of debts. On the other hand, absence of adequate working capital leads to decrease in return on investment. The goodwill of the firm is also adversely affected due to the inability to pay current liabilities in time. Hence, the management of working capital helps to manage all the factors affecting the workingcapital in the most profitable manner. COMPANY PROFILE Established in 1937, Indian Overseas Bank (IOB) is a leading bank based in Chennai, India. IOBhad the distinction of simultaneously commencing operations in three branches at Karaikudi,Chennai, and Yangon (Myanmar). Since IOB aimed to encourage overseas banking and foreignexchange operations, it soon opened its branches in Penang and Singapore. Today, IndianOverseas Bank boasts of a vast domain in banking sector with over 1400 domestic branches and6 branches overseas. Sample Project on Evaluation of Working Capital Management in Indian Overseas Bank   |
