PROJECTON

WORKING CAPITAL MANAGEMENTOF

External Guide Internal Guide

Sri B.K.Panda Mr.Shitendra Ku. BaliarshinghAGM - Cum- Faculty Faculty, MFC, IMSASCTI (OSCB)

Submitted By:

Sandeep Kumar Khandelwal

Roll No. :13799U733006

INSTITUTE OF MEDIA STUDIES, BHUBANESWAR

FOR THE PARTIAL FULFILMENT OF MASTER IN

FINANCE AND CONTROL

UTKAL UNIVERSITY , BHUBANESWAR

DECLARATION

I do hereby declare that the project work entitled is the original piece of work done by me. This report in being submitted as part of fulfillment of the requirements for the summer internship of the Master in Financial Control MFC programme conducted in Institute of Media Studies, Bhubaneswar.

This is my original work and had not been previously submitted as a part of other degree, diploma of another B-School or University. The finding and conclusion of data in this report are based on my personal study, during the occupancy of my summer internship.

SANDEEP KUMAR KHANDELWAL

Roll NO-13799U133006

MFC 3rd semester

IMS , BHUBANESWAR

ACKNOWLEDGEMENT

I would like to express my obligating and gratitude to those whose guidance and co-operations helps me a lot throughout the project as sources of stimulations.

This acknowledgement is a way of expressing my heart full gratitude towards those who are working in the organization “ODISHA State Co - operative Bank”, Bhubaneswar who made the summer training an enjoyable experience, something, I would treasure forever.

To thank Mr. B.K. Panda, A.G.M -Cum- Faculty of OSCB for giving me for this magnificent opportunity to work in this institute. His kind cooperation and idyllic superviosn to the instant of necessity was a source of great inspiration for me and constantly pushed me toward achieving superior heights an give my preeminent to the organization.

Also I would like to convey my great gratitude to the staff and professor of my department. Who helped me a lot to complete my work in the stipulated time and construct this effort a flourishing one.

SANDEEP KUMAR KHANDELWAL

Roll NO-13799U133006

MFC 3rd semester

IMS , BHUBANESWAR

CONTENTS

Declaration

Acknowledgement

Certificate

Chapter 1:- Research Design and Methodology

Introduction Objectives Scope Place Limitation Research and Methodology

Chapter 2:- Company Profile

Introduction History Structure Function and Role of OSCB Mission and Achievement Direct Financing Retail Banking

Chapter 3:- Theoretical Aspect

Introduction Concept Components

Types of Working Capital Operating cycle concept Significance of working capital

Chapter 4:- Data Analysis and Reporting

Chapter 5:- Finding and Suggestion

Chapter 6:- Conclusion

Chapter 7:- Bibliography

CHAPTER 1

RESEARCH DESIGN

AND

METHODOLOGY

INTRODUCTION

In the present day economy finance is defined as provision of money as and when desire or required. Every enterprise needs finance or capital to start or carry out its operations. Finance act as life blood and nervous system of an organization. So finance should be managed effectively both for short term and long term purpose.

SUBJECT

Working capital is the life blood of an organization, which indicates or shows the source and resource of fund in an organization. Source indicates the total fund requirement of an organization i.e. at a particular point of time it is equal to the sum of equity and debt which forms the liabilities of a firm. The liabilities include long-term and short-term liabilities. Long-term, liabilities indicates the liabilities which are either permanent or have a long life and short-term or current liabilities indicates the liabilities generated due to the business activities or related due to the operating activities of a business. The total fund employ is equal to debt plus of equity i.e. the sources from which business secured or raised fund is known as sources of fund. There are two types of sources from which an organization get fund. The owners contribution is known as capital otherwise called as fixed liabilities i.e. equity or owners equity. Owners equity =Equity share capital + Preference share capital + Retain earning. The new concept retain earning is another sources of fund this is called fund generating by the business. The second source is known as debt financing. The fund collected through debenture and termed loan cones under debut financing which is called as creditors of the business

Working capital is that part of the long-term financed locked in and use to support the current activities i.e. to maintain the productivity of fixed asset i.e. without the fund to support current activities the fixed assets are valueless. The amount blocked for or locked for current activities is really Working Capital.

DEFINITION

"Circulating capital means current asset of a that are changed in the ordinary course of business from one to another as for example, from cash to inventories, inventories to receivable, receivable to cash."

-GENESTERNBERG

"WORKING CAPITAL is the amount of fund necessary to cover the cost of operating the enterprise."

-SHUBIN

NET WORKING CAPITAL = CURRENT ASSET - CURRENT LIABILITY

OBJECTIVE

This study is made as a part of the MFC programme, IMS, Utkal University

in the form of summer internship project with the following objective.

To study the working capital management in order to study the

financial efficiency of OSCB Ltd.

To find out the strategies and managerial aspect of managing current

assets.

The bank whether has the strength to fulfill its current obligation or

not.

Performance of OSCB Ltd for generation credit providing loan &

advanced, accepting deposits and making investment etc.

Growth rate of OSCB Ltd.

SCOPE

The scope is expanded within organization introduction to practical

exposure to co-operate day to day activity.

The data and information were gathered during the training.

The result includes secondary data only.

Aim of the research is academic representation of corporate data & to

obtain the % of current asset and current liabilities.

To know the partial part of working capital management of OSCB Ltd

through the data available as managerial tool & its future prospects.

LIMITATIONS

Every work has a particular advantages and disadvantages. So this always

a boundary line, whatever is to be done. This project work has same

problem with some disadvantages. The various problem or limitations of the

study are as follows:-

It is only based on methodological interpretation of the figures and

ignores the factors such as management style, motivation of workers

leadership etc.

Management of working capital is controlled by various factors such

future economic trend, market condition and agriculture demand etc.

Time factor is plays vital roles: the study was conducted within six

weeds.

Due to heavy burden of work getting information from staff was not

possible.

RESEARCH & METHODOLOGY

The data which is collected for the first time are known as primary

data. Primary data can be collected through direct observation,

personal interview, and telephone interview and via mail survey.

Secondary data are the type of data which are already exist for

reference, these are collected through internal (cost information,

customer feedback etc.) Source and external (book magazine

newspaper, annual report, etc.) source.

This study deals with the prudential norms laid down by RBI for bank,

the actual method of calculations of NPA, based on 19 days norms

and factors data’s are giving rise to NPA of co-operative bank and

finally conclusion and recommendation were to overcome to overcome

from the rising NPAs.

TOOLS & TECHNIQUES

There are some tools which are relevant for the study of working capital

requirements and analysis of performance of OSCB ltd is

Comparative statement

Profit and loss account statement Ratio analysis

CHAPTER 2

COMPANY

PROFILE

INTRODUCTION :

The Odisha state co-operative bank Ltd registered (Reg. No.-29 cu/date 02.04.1948) under the Bihar and Odisha co-operative society act 1935 as Odisha provisional co- operative bank with its head quarter at Cuttack and functioning from 2nd April 1948. Later the bank shifted to the state capital, Bhubaneswar.

The Odisha State co-Operative bank is apex bank in odisha has office at Bhubaneswar with its branches at. It supports 17 central co-operative banks which in turns support a more than 4000 primary co-operative society.

HISTORY OF O.S.C.B LTD

With the growth of central bank the need for loan and advances are credit as reasonable rate of interest grew for central banks to enable them make adequate finance available to the societies. So, in April 1941 the Bihar and Odisha provincial co-operative bank was formed.

The early 40s witnessed the introduction of provincial autonomy in British Indian provinces and what was the paramount importance was the birth the odisha province on 1st April 1936. The odisha provincial co-operative bank is of the manifestations of great historical indentifying of odishia people.

During this period the number of the separate odisha province the OSCB was registered on 15th August 1936 and sum of Rs. 10520 was collected towards share capital of the bank.

THE MAIN OBJECTIVE OF THE BANK IS

To finance the co-operative societies. To act as a balance centre for the surplus fund of the societies in

odisha. To carry on the banking business.

The central bank and union of odisha applied for the bifurcation of the Bihar and odihsa provincial co-operative bank. The 13 central co-operative bank in north Odisha served all connections with the Bihar provincial cooperative bank in 1983, and their net liability to the bank was taken over by odisha govt.

The odisha provincial co-operative bank registered on 15th August 1936 could not start its function die to pending of govt. decisions on the enquiry into the condition of the co-operative movement in Odisha. There was no apex bank for the 13 northern CCBs, however the two southern ware obtaining loans from the madras provincial co-operative bank as usual.

On 2nd April 1948 the Orissa provincial co-operative bank was again registered under Bihar and Orissa co-opeerative society act 1935, 22 members were enrolled and 100 shares were issued and share the capital of 10000 was collected. So it was a twice born of the bank. The name of the Orissa provincial co-operative bank was changed to Orissa state Co-operative bank in the year -52.

Mission and achievement.

The mission of OSCB LTD is to become a strong and vibrate bank having competition edge and to lead rejuvenated short term credit structure to serve the people of Odisha.

Large network of 287 PACs/LAMPs/FSS and 308 branches of 17 central co operative bank at block level.

80% agriculture families are covered /enrolled as numbered of PACS/LAMPS/FSS.

Providing easy asses to credit through 6.4 lakh kisan credit card issued to the frames.

Surviving 70% of total agriculture credit disbursed in the state rabbi credit to the tune of Rs. 159 crores in cyclone affected area.

Disbursed crop loan Rs. 422 crores during 1991 -2000 recording a growth of 28% over the previous year.

Total credit disbursed by St co-operative structure was Rs.3.21 crores 90-91 which rows 13 fold of the level of Rs. 422 in 1990-2000.

All branches and exchange counters are fully computerized to provide efficient costumer service ATM facility is installed to provide cash withdrawing services.

Agriculture inputs like fertilizers and pesticides supplied to the farmer to the rural area PACs level.

22 mahila branches of the district central co-operative banks functioning executively render banking service to the women folk.

The bank is running over the profit over 5 decades since its inception of 1948.

Progressive more societies are becoming viable by increasing their business turnover through large clientele coverage.

THE INDUSTRIAL RURAL CREDIT DELIVERY SYSTEM OFAGRICULTURAL COMPRISES OF:

1. Short term co-operative credit structure2. Long term credit structure. 3. Regional rural bank4. Commercial bank5. RBI 6. NABARD

Human resource and manpower development

The success of co-operative bank depends on human resource development and support extends to creation of appropriate structure and facility for member education, leadership development and defective training programme at all level.

In the area of globalization, the need of the hour is re-designing co-operative training and education programme.

The programme were conducted exclusively for the officers of RCS, Odisha, which as per feedback was highly relevant and needful to the target group in view of the changing environment under pre-vidyananth committee reforms.

FUNCTION AND ROLE OF OSCB LTD.

The Odisha state co-operative bank and apex level institution of short term co-operative credit delivery system in the state is playing major role in strengthening DCCB/ACS for the socio economical of the state.

1. Role of towards credit policy at the state level.

OSCB as the leader of the state co-operative credit structure is drawing annual plan.

Simplification of loaning procedure Kissan credit card has been introduced to adequacy and time liner

in credit delivery.

2. Role towards rural saving mobilization to attain self reliance of CCB & PACS.

3. To make loan availability easier in the state.

4. To serve as a balancing center in the state for all type all type of co-operative societies registered under the co-operative societies act.

5. To function as banker accepts all type of deposits such as current.

6. To act as refinancing agency to the affiliated societies in respect of production and investment credit and investment credit and handloom credit in the state.

DIRECT FINANCE

Direct finance by OSBC

The OSBC has financed the sugar industries state to help cultivation to remunerative price for the sugar cane crop. It has also financed the Odisha co-operative marketing federation for fertilizer business. The following large unit are also financed by bank.

Nilachal ispat Nigam Large Scale Steel Industry Kalinga Hospital- Corporate hospital Bilati limited – tropical food Flour mills Press Mass media.

RETAIL BANKING

HOUSING LOAN

The is financing housing loan under its “APNA GHAR” scheme maximum under this head is Rs. 2 lakh purchase of readymade house or construction for repair renovations, additions, alteration the limit is Rs 10 lakh. The rate of interest is competitive and varying time on reducing balance Maximum repayment period is 15 years.

Personal loan Requirement / formalities.

Maximum limit is Rs. 50 lakhs or 75% of the cost of the item Subject to 50 times net monthly income, the net monthly salary

should not less than Rs. 3000 per month under any circumstances.

Repayable in maximum 96 monthly installments in reducing balance.

Motor vehicles loansFor any start of surface transport and water transport vehicle both commercial and Commercial and for personal purpose.

Requirement / formalities 75% of the total cost of vehicle including insurance and

registrations. Repayable in 60 monthly installment in reducing balance.

Business enterprise. Term loan for Fixed asset for project Commercial project and kalian mandap Hotel, Tourist Resort and Health care units. Equipment and machine. Requirement / Formalities.

Maximum 75% of the fixed asset Maximum payable period is to 10 years. Interest in reduced balance method.

Working capital loans. Retail business Trader Wholesaler Project solution Requirement / formalities.

Maximum 75% of working capital requirement subject to stock holding.

Quarterly interest on days balance.

CHAPTER 3

THEORETICAL

ASPECT

Introduction To Working Capital Management

“Working capital means the part of the total assets of the business that change from one form to another form in the ordinary course of business operations.”

Concept of working capital:-

The word working capital is made of two words 1.Working and 2. Capital

The word working means day to day operation of the business, whereas the word capital means monetary value of all assets of the business.

Working capital : -

Working capital may be regarded as the life blood of business. Working capital is of major importance to internal and external analysis because of its close relationship with the current day-to-day operations of a business. Every business needs funds for two purposes.

* Long term  funds are required  to create production facilities through purchase of fixed assets such as plants, machineries, lands, buildings & etc

* Short term funds are required for the purchase of raw materials, payment of wages, and other day-to-day expenses.

. It is other wise known as revolving or circulating capital

It is nothing but the difference between current assets and current liabilities. i.e.

Working Capital = Current Asset – Current Liability.

Businesses use capital for construction, renovation, furniture, software, equipment, or machinery. It is also commonly used to purchase inventory, or to make payroll. Capital is also used often by businesses to put a down payment down on a piece of commercial real estate. Working capital is essential for any business to succeed. It is becoming increasingly important to have access to more working capital when we need it.

Concept of working capital

Gross Working Capital = Total of Current Asset Net Working Capital = Excess of Current Asset over Current

Liability

Current Assets Current Liabilities Cash in hand / at

bank Bills Receivable Sundry Debtors Short term loans Investors/ stock Temporary

investment Prepaid expenses Accrued incomes

Bills Payable Sundry Creditors Outstanding

expenses Accrued expenses Bank Over draft

Working capital in terms of five components:

1. Cash and equivalents: - This most liquid form of working capital requires constant supervision. A good cash budgeting and forecasting system provides answers to key questions such as: Is the cash level adequate to meet current expenses as they come due? What is the timing relationship between cash inflow and outflow? When will peak cash needs occur? When and how much bank borrowing will be needed to meet any cash shortfalls? When will repayment be expected and will the cash flow cover it?

2. Accounts receivable: - Many businesses extend credit to their customers. If you do, is the amount of accounts receivable reasonable relative to sales? How rapidly are receivables being collected? Which customers are slow to pay and what should be done about them?

3. Inventory: - Inventory is often as much as 50 percent of a firm's current assets, so naturally it requires continual scrutiny. Is the inventory level reasonable compared with sales and the nature of

your business? What's the rate of inventory turnover compared with other companies in your type of business?

4. Accounts payable:- Financing by suppliers is common in small business; it is one of the major sources of funds for entrepreneurs. Is the amount of money owed suppliers reasonable relative to what you purchase? What is your firm's payment policy doing to enhance or detract from your credit rating?

5. Accrued expenses and taxes payable: These are obligations of your company at any given time and represent a future outflow of cash.

Two different concepts of working capital are:-

Balance sheet or Traditional concept Operating cycle concept.

Balance sheet or Traditional concept:- It shows the position of the firm at certain point of time. It is calculated in the basis of balance sheet prepared at a specific date. In this method there are two type of working capital:-

Gross working capital Net working capital

Gross working capital:- It refers to the firm’s investment in current assets. The sum of the current assets is the working capital of the business. The sum of the current assets is a quantitative aspect of working capital. Which emphasizes more on quantity than its quality, but it fails to reveal the true financial position of the firm because every increase in current liabilities will decrease the gross working capital.

Net working capital:- It is the difference between current assets and current liabilities or the excess of total current assets over total current liabilities.

Working capital= current assets - current liabilities.

Net working capital: - It is also can defined as that part of a firm’s current assets which is financed with long term funds. It may be either positive or negative. When the current assets exceed the current liability, the working capital is positive and vice versa.

RAW MATERIAL

WORK IN PROGRESS

FINISH GOODSSALES

DEBTORS & BILLS RECEIVABLES

CASH

OPERATING CYCLE

Operating cycle concept:-

The duration or time required to complete the sequence of events right from purchase of raw material for cash to the realization of sales in cash is called the operating cycle or working capital cycle.

Types of Working Capital:-

TYPES OF WORKING CAPITAL

ON THE BASIS OF B/S CONCEPT

GROSS WORKING CAPITAL

NET WORKING CAPITAL

ON THE BASIS OF TIME

REGULAR WORKING CAPITAL

TEMPORARY WORKING CAPITAL

SEASONAL WORKING CAPITAL

SPECIFIC WORKING CAPITAL

SIGNIFICANCE OF WORKING CAPITAL:-

Factors requiring consideration while estimating working capital.

The average credit period expected to be allowed by suppliers. Total costs incurred on material, wages. The length of time for which raw material are to remain in stores

before they are issued for production. The length of the production cycle (or) work in process. The length of sales cycle during which finished goods are to be

kept waiting for sales. The average period of credit allowed to customers. The amount of cash required to make advance payment .

MANAGEMENT OF WORKING CAPITAL

SIGNIFICAN--CE OF

WORKING CAPITAL

PAYMENT TO

SUPPLIERS

DIVIDEND DISTRIBUT

I-ON

INCREASE DEBT

CAPACITY

INCREASE IN FIX

ASSETS

INCREASE EFFECIEN

C-Y

EASY LOAN FROM BANKS

Management of working capital is concerned with the problem arise in attempting to manage current assets, the current liability and inter relationship that exist within them.

Its goal is to intain the satisfactory level of working capital i.e. it is neither in adequate excessive because these leads to insolvency of business and accumulation of nonprofits making funds respectively.

Principle of working capital

Principle of risk variation

Risk is the inability of a firm to meet its obligations. Larger investment in current asset increase liquidity reduce risk and there by decrease the opportunity of gain and loss and vice versa in other words, there is definite inverse relationship between the degree of risk and profitability.

Principle of cost of capitalHigher the risk and lower the cost and vice-versa a sound working capital management should always try to achieve a proper balance between this two.

Principle of equity positionAccording to this principle, planning about the total investment in current asset should be efficient. The amount or working capital in investment in each component should be adequately justified a firms “equity position”. The level of current asset may be measured by the ration. Current asset as a % of total asset.

Principle of maturity of paymentThis principle is concerned with planning the sources of finance of working capital with relating maturities of payment to its flow of internally generated funds. Generally shorter the maturity schedule of current liabilities, the greater the inability to meet its obligation in time.

ESTIMATION OF WORKING CAPITAL

No business can be a successfully run without an adequate amount of working Capital. To avoid the shortage of working capital at once an

estimate of working capital requirements should be made advance through the following method:

Method of estimating working capital requirements:

Percentage of sales method Regression analysis method Cash forecasting method Operating cycle method Project balance sheet method

Bank borrowing

Over draft Cash credit Purchase or discount of bill Letter of credit Working capital loan

Short term source of finance for bank

Ride credit Accrued expenses and deferred income Bank borrowing Factoring of receivable Commercial paper

Security for bank financing

Hypothecation Pledge Mortgage Lien

CHAPTER 4

DATA ANALYSIS AND

REPORTING

Current Liability

Saving bank deposits Current deposits Borrowing term loan Bills payable Interest Payable Other Liabilities

YEAR 2010-11 2011-12 2012-13 2013-14CURRENT ASSET

2783507045 49346870220 61917123332 70608434969

CURRENT LIABILITY

45209900747 25441531870 25581055426 39304904581

Interpretation

As a convention of current ratio the minimum of 2:1 is referred to as a banker rule of thumb current ratio of OSCB satisfactory as shown in the above table and graph.

ABSOLUTE LIQUID RATIO

It is defined as the relationship between liquid asset and current liabilities

Absolute liquid asset

Cash Balance in other banks Money at call and short notice

YEAR 2010-11 2011-12 2012-13 2013-14CURRENTLIABILITY

45209900747 25441531870 35581055426 39304904581

CURRENT ASSET

2647794419 2475124810 80896491554 31951844321

CALCULATION OF WORKING CAPITAL

YEAR 2010-11 2011-12 2012-13 2013-14CURRENTASSET

2783507045 49346870220 61917123332

70608434969

CURRENT LIABILITY

4520990747 25441531810 35581055426

39304904581

WORKING CAPITAL

-18026393702 23905338350 26336067906

31308530388

COMPARISON BETWEEN CURRENT ASSET AND WORKING CAPITAL

YEAR 2010-11 2011-12 2012-13 2013-14CURRENTASSET

27183507045 49346810220

61917123332 70608434969

WORKING CAPITAL

-18026393702 23905338350

26336067906 31303530388

COMPARISON BETWEEN CURRENT LIABILITY AND WORKING CAPITAL

YEAR 2010-11 2011-12 2012-13 2013-14CURRENTLIABILITY

45209900747 25441531870

35581055426 39304904581

CURRENT CAPITAL

2647794419 2475124810 80896491554 31951844321

The excess of receipt over payment represents surplus of cash & the excess of payment over receipt case and deficit of amount of working capital required.

PROJECT VALANCED METHOD

Under this method project balance sheet for future date is prepared by forecasting of asset & liability by following any of the method.

The excuse of estimated current liabilities, as shown in the projected balance sheet computed to indicate the estimated amount of working capital required.

ESTIMATION OF WORKING CAPITAL:

As percentage of fixed asset

Total of foxed asset = total of asset [current asset + fictitious asset]

Total of asset = total of asset side = sum of fixed asset, current asset and fictitious assets.

As a percentage of fixed investment.

Working capital is the computed as a percentage of fixed investment or total investment.

Fixed investment = total of fixed asset before depreciation i.e. amount of capital blocked in fixed assets.

Total investment or gross assets = fixed assets before depreciation + total of current assets.

WORKING CAPITAL ANALYSIS

Working capital is the very essential of running of business, smoothly and profitability . The concept of working capital has its own importance in a going concern and a position working capital i.e. excesses of current asets over current liability shows the healthy existence of a business. But

sometimes the uses of working capital may be more than the sources resulting in negative value of working capital. This –ve balance is generally off set soon by gains in the following periods. A study of changes in the uses and sources of working capital is necessary to evaluate the efficiency with which the working capital is employed in the business. This involves the need of working capital analysis and this analysis is conducted through a No. of device such as:

RATIO ANALYSIS

These techniques can be employed for measuring short term liquidity of working capital position of the firm as:

Current ratio Acid test ratio Absolute liquidity ratio Receivable turnover ratio Payable turnover ratio Working capital turnover ratio Working capital leverage ratio Ratio of current liability

Analysis of ratio:

Liquidity ratios:

It measure the organization meet its current obligations. In fact analysis of liquidity budget and cash and fund flow statement. But liquidity ratio by establishing a relationship between case and other current asset to current obligation provide a quick measure of liquidity’s very degree of liquidity is also bad as asset earn nothing in this case. So it is necessity to strike a proper balance between high liquidity and lack of liquidity. The most common ratio relevant to study is:

A) Current ratioB) Absolute liquid ratio

Current ratio

Current ratio defined as the relationship between current asset and current liabilities. This ratio is also known as working capital ratio. It is widely used to make the analysis of short term financial position of the firm.

Current ratio= current assets/current liability

Current assets

Cash in hand Cash in bank Money at call & short notice Advances (short-term, cash, credit & O/D) Interest receivable Bills receivable

CHAPTER 5

FINDING

AND

SUGGESTION

CHAPTER-5

FINDINGS

The size of balance sheet of the bank stood at Rs 6889.94corers as compared to Rs 6232.62corers on 2012-13 registering a growth close at 14% and this growth is much slower the year ago growth of 40% witnessed by the bank and consolidated growth of OSCB registering a 19% FY 14.The lower growth of deposit attributed to slow down in balance sheet growth.

Bank earning a net profit of 12 corers. Working capital requirement of different DCCBS are found to be

adequately managed. The credit deposit ratio at 90.6% remaining higher than national

average of 76.5% on the end March 2014. The asset quality of the bank improved in 2013-14 in comparison to

the precious year. Deposit grew up by 3.08% from the previous year.

SUGGESTION

Current asset should be raised in certain limit and that should be

maintained constantly.

Large exposure on big corporate or single project should be

avoided.

Operating staff and credit skill should be up graded i.e. skilled

financial manager should be employed.

There is no shift bank approach from collateral security to visibility

of project intrinsic of promoters.

The amount of working capital net profit is going on an increasing

order; it should be maintained in the coming year.

CHAPTER 6

CONCLUSION

CONCLUSION

The finding are obtained from the analysis of the various level of working capital requirements can suggest the management of adequate amount of working capital is how much necessary for banks.

It enhances the efficiency of the banks and enabled them to meet the day to day requirements of finance when needed.

It can be concluded that the excess and inadequate amount of working capital is dangerous for many organization in smooth functioning of the organizations.

Hence, the management of adequate level of working capital is very much Important for the bank as working capital is lire blood for any organization.

An organization having a well managed working capital requirement has a long life smooth and profitable functioning.

CHAPTER 7

BIBLIOGRAPHY

BIBLIOGRAPHY

Annual report of OSCB ltd. 2013-14

BOOKS

I.M. PANDAY : FINANCIAL MANAGEMENT SHARMA AND GUPTA : MANAGEMENT ACCOUNTING

WEBSITES :

WWW.OSCB.COOP

WWW.GOOGLE.COM

WWW.RBI.COM