SYNOPSIS ON WORKING CAPITAL ANALYSIS OF Bajaj Allianz life Insurance Khoisnam Hemchandra Singh Statement of the problem:

The study is to know the Working Capital analysis of BALIC. Working Capital analysis is the technique which helps to know the Investments in current assets represent a substantial portion of total investment and the level of current liabilities which analyze the geared quickly to change sales. There is rising competition between BALIC and other companies. Evaluate the performance of the company by using ratios like current ratio etc. and analyze the W.C. form years to years as a yardstick to measure the efficiency of the company.

Summary: Working Capital is the required for maintenance of day to day business operations. The present day competitive market environment calls for an efficient management of working capital. The reason for this is attributed to the fact that an ineffective working capital management mat force the form to stop its business operations, may even lead to bankruptcy. Hence the goal of working capital management is not just concerned with the management of current assets and current liabilities but also in maintaining a satisfactory level of working capital. Holding current assets in substantial amount strengthens the liquidity position and reduces the riskiness but only at the expense of profitability. Therefore achieving risk-return tradeoff is significant in holding of current assets. While cash outflows are predictable it runs contrary in case of case of cash inflows. Sales program of any business concern does not bring back cash immediately. There is a time lag that exists between sale of goods of services and sales realization. The capital requirement during this time lag is maintained by the operating cycle concept. This study will give in detail the working capital management practices in BALIC. The research methodology adopted for this study will be mainly from secondary source of data which include annual reports of BALIC, and website of the company. The use of primary sources is limited to interviews with few of the employees in credit department. The study of working capital management will show that BALIC has a strong/ weak working capital position.

OBJECTIVES

The objectives of project on evaluation of working capital are as follows: 1. To study concept of working capital & components of working capital. 2. To study change of working capital. 3. To analyze profitability, liquidity & working capital position of the company

SCOPE

The management of working capital helps us to maintain the working capital at a satisfactory level by managing the current assets and current liabilities. It also helps to maintain proper balance between profitability, risk and liquidity of the business significantly. By managing the working capital, current liabilities are paid in time. If the firm makes payment to its creditors for raw material in time, it can have the availability of raw material regularly, which does not cause any obstacles in production process. Adequate working capital increases paying capacity of the business but the excess working capital causes more inventories, 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 working capital in the most profitable manner. Sources of data

This study is based on Secondary data:The secondary data are those, which have been collected by some other and which have been processed. Generally speaking secondary data are information, which have been previously collected by some organization to satisfy his own need. But the department under reference for an entirely different reason is using it. For this project secondary sources used are: 1. Annual reports of the company.

2. Company website 3. Books 4. Other company documents

SAMPLING DESIGN Sampling unit Sampling Size : Financial Statements :Last four years financial statements