INTRODUCTION

Financial Management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. Financial management focuses on finance manager performing various tasks as Budgeting, Financial Forecasting, Cash Management, Credit Administration, Investment Analysis, Funds Management, etc. which help in the process of decision making. Financial management includes management of assets and liabilities in the long run and the short run. The management of fixed and current assets, however, differs in three important ways: Firstly, in managing fixed assets, time is very important; consequently discounting and compounding aspects of time element play an important role in capital budgeting and a minor one in the management of current assets. Secondly, the large holdings of current assets, especially cash, strengthen firms liquidity position but it also reduces its overall profitability. Thirdly, the level of fixed as well as current assets depends upon the expected sales, but it is only the current assets, which can be adjusted with sales fluctuation in the short run. Here, we will be focusing mainly on management of current assets and current liabilities.

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CONCEPT OF WORKING CAPITAL

Working Capital Management is the process of planning and controlling the level and mix of current assets of the firm as well as financing these assets. Specifically, Working Capital Management requires financial managers to decide what quantities of cash, other liquid assets, accounts receivables and inventories the firm will hold at any point of time. Working capital is the capital you require for the working i.e. functioning of your business in the short run. Gross working capital refers to the firms investment in th e current assets and includes cash, short term securities, debtors, bills receivables and inventories. It is necessary to concentrate on the fact that the investment in the current assets should be neither excessive nor inadequate. WC requirement of a firm keeps changing with the change in the business activity and hence the firm must be in a position to strike a balance between them. The financial manager should know where to source the funds from, in case the need arise and where to invest in case of excess funds. Net working capital refers to the difference between the current assets and the current liabilities. Current liabilities are those claims of outsiders, which are expected to mature for payment within an accounting year and include creditors, bills payable, bank overdraft and outstanding expenses. When current assets exceed current liabilities it is called Positive WC and when current liabilities exceed current assets it is called Negative WC.

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OBJECTIVE OF STUDY

The main objective of this study is to carry on brief study on Analysis of five year balance sheet of BSNL through comparative balance sheet in Comparative Statement through this I am able to get the difference of various assets and liabilities of the BSNL.

Other objectives of this project are as follows: 1) To identify the various current assets of the BSNL with respect to Annual Repots of the BSNL. 2) Comparative study of five year Annual reports. 3) To study the cash flow of BSNL, Chandrapur.

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SCOPE OF STUDY

1) Working capital management plays a vital role in any organization and one should have a thorough knowledge about the working capital position. 2) In view of this context, I have undertaken this study and it would be a great advantage to the company also, to know it's working capital position. 3) The scope of the study is confined to the analysis of solvency & profitability position of the company. The data collected from both primary and secondary data.

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HYPOTHESIS
A current asset position has increased over the four year period current ration has also increased stability. Resources were allocated mainly to increase the fixed assets over the 5 years period and inventory was also raised. Working Capital position has strengthened over the years.

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RESEARCH METHODOLOGY

RESEARCH
The research design of this project is exploratory. Though each research study has its own specific purpose but the research design of this project on BSNL is exploratory in nature as the objective is the development of the hypothesis rather than their testing. The research designs methods of financial analysis. Through of comparative balance sheet in comparative statement, I am studying on balance sheet of BSNL of five year. So taking comparative statement, I am going to analyzed of five years balance sheet of BSNL

METHODOLOGY
Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis. Accordingly, the methodology used in the project is as follows: Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the employees, Analysis of feedback, Conclusion, findings and suggestions. .6

SOURCES OF DATA COLLECTION:

Research will be based on two sources: 1. Primary data 2. Secondary data 1) Primary Data: Survey: Primary data was collected by departmental survey for BSNL. 2) Secondary Data: Secondary data will consist of different literatures like books which are published, articles, internet, the company manuals and websites of company- www.bsnl.com. In order to reach relevant conclusion, research work needed to be designed in a proper way.

Statistical Tools Used The main statistical tools used for the collection and analyses of data in this project are: 1) Bar Diagrams 2) Line Charts

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BIBLIOGRAPHY
Books
1) Management Accounting Shashi K. Gupta & R.K. Sharma 2) Financial Management I.M. Pandey.

Web sites
www.bsnl.co.in www.google.com www.mpbsnl.com

Annual Reports of BSNL 2011-2012. Departmental Records

Submitted By

Guided By

Miss. Yamuna R. Sapuru

B.B.A. Final Year; 2013-2014 CCITM, Chandrapur

Prof. Kanta Dodani

CCITM, Chandrapur

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