Assets and Liability Management: A Synopsis Report ON

A
SYNOPSIS REPORT
ON
ASSETS AND LIABILITY MANAGEMENT
AT
ZUARI CEMENT LTD
Submitted
By
GATLA VINITHA
H.T.NO: 1325-18-672-198
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
Department of Business Administration

AURORA’S PG COLLEGE
RAMANTHAPUR
(Affiliated to Osmania University)
2018-2020
INTRODUCTION
Asset Liability Management (ALM) is a strategic approach of managing the balance sheet
dynamics in such a way that the net earnings are maximized. This approach is concerned with
management of net interest margin to ensure that its level and riskiness are compatible with
the risk return objectives of the ZUARI CEMENT LTD
If one has to define Asset and Liability management without going into detail about
its need and utility, it can be defined as simply “management of money” which carries value
and can change its shape very quickly and has an ability to come back to its original shape
with or without an additional growth. The art of proper management of healthy money is
ASSET AND LIABILITY MANAGEMENT (ALM).-
The Liberalization measures initiated in the country resulted in revolutionary changes

in the sector. There was a shift in the policy approach of from the traditionally administered
market regime to a free market driven regime. This has put pressure on the earning capacity
of co-operative, which forced them to foray into new operational areas thereby exposing
themselves to new risks.
As major part of funds at the disposal of come from outside sources, the management
is concerned about risk arising out of shrinkage in the value of asset, and managing such risks
became critically important to them. Although co-operative are able to mobilize deposits,
major portions of it are high cost fixed deposits. Maturities of these fixed deposits were not
properly matched with the maturities of assets created out of them.
ASSET LIABILITY MANAGEMENT is a portfolio management of assets and

liability of an organization. This is a method of matching various assets with liabilities on the
basis of expected rates of return and expected maturity patter.
In the context of ALM is defined as “a process of adjusting liability to meet loan

demands, liquidity needs and safety requirements”. This will result in optimum value of the,
at the same time reducing the risks faced by them and managing the different types of risks
by keeping it within acceptable levels.
NEED OF THE STUDY
The need of the study is to concentrates on the growth and performance of ZUARI CEMENT
LTD and to calculate the growth and performance by using asset and liability management.
And to know the management of non-performing assets.
 To know financial position of ZUARI CEMENT LTD

 To analyze existing situation of ZUARI CEMENT LTD
 To improve the performance of ZUARI CEMENT LTD
 To analyze competition between ZUARI CEMENT LTD with other cooperative.
OBJECTIVES OF THE STUDY
 To study the concept of ASSET & LIABLITY MANAGEMENT in ZUARI

CEMENT LTD
 To study process of CASH INFIOWS and OUTFLOWS in ZUARI CEMENT LTD
 To study RISK MANAGEMENT under ZUARI CEMENT LTD
 To study RESERVES CYCLE of ALM under ZUARI CEMENT LTD
 To study FUNCTIONS AND OBJECTIVES of ALM committee.

SCOPE OF THE STUDY
In this study the analysis based on ratios to know asset and liabilities management under
ZUARI CEMENT LTD and to analyze the growth and performance of ZUARI CEMENT
LTD by using the calculations under asset and liability management based on ratio.
 Ratio analysis
 Comparative statement
 Common size balance sheet.
RESEARCH METHODOLOGY
The study of ALM Management is based on two factors.
1. Primary data collection.
2. Secondary data collection
PRIMARY DATA COLLECTION:
The sources of primary data were
 The chief manager – ALM cell
 Department Sr. manager financing & Accounting
 System manager- ALM cell
Gathering the information from other managers and other officials of the ZUARI CEMENT
LTD
SECONDARY DATA COLLECTION:
Collected from books regarding, journal, and management containing relevant information
about ALM and Other main sources were
 Annual report of the ZUARI CEMENT LTD

 Published report of the ZUARI CEMENT LTD
 RBI guidelines for ALM.
LITERATURE REVIEW
 P. Chidambaram53, Hon’ble(2017) Finance Minister, Government ofIndia in his
address stated that “the profitability performance of Indian Banks in recent years
compares well with that of the global benchmark banks primarily because of the
higher share of profit on the sale of investments, higher leverage and higher net
interest margins of Indian banks. However, many of these drivers of higher profits of
Indian banks may not be sustainable. To ensure long-term profitability, Indian banks
need be focused on the following parameters and build systemic capability in
managing of the same:
 MurthyGRK(2016) in his article “Credit Risk Management in a Market Driven

Economy: The Acid Test for Banks” has stated that in generic terms, risk
management can be defined as systematic identification and analysis of the various
loss exposures faced by a firm / individual and the best methods of treating the
identified loss exposures consistent with the firms’ / individuals’ objectives.
Extending the same analogy, we can define credit risk management as a process that
puts in place systems and procedures enabling a bank to Identify and measure the risk
involved in a credit proposition, both at the individual transaction and portfolio level,
• Evaluate the impact of exposure on Bank’s Balance Sheet / Profit.
 Rajeev A.S. (2015) in his article entitled “A primer on - Securitisation” has observed
that asset securitisation refers to the process by which loans, receivables and other
illiquid assets with similar characteristics in the balance sheet are packaged into
interest bearing securities that offer attractive investment opportunities. It is the
process of pooling are repackaging of homogeneous illiquid assets (primarily loans)
into marketable securities.
BIBILIOGRAPHY
Title of the Books Author
1. Risk management Gustavson hoyt
2. Donald E Fischer
Security Analysis Portfolio Management
3. Ronald J Jordan
4. Management Research magazine P.M.Dileep Kumar
5. India financial system M.Y. Khan
Web sites
www.zuaricement.con
Www.Rbi.Org
Www.Amfiindia.Com
Www.icici.com
Www.Bseindia.Com
Www.Nseinda.Com
Www.Bluechipinda.Co.In

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A

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

The Liberalization measures initiated in the country resulted in revolutionary changes

ASSET LIABILITY MANAGEMENT is a portfolio management of assets and

In the context of ALM is defined as “a process of adjusting liability to meet loan

 To know financial position of ZUARI CEMENT LTD

 To study the concept of ASSET & LIABLITY MANAGEMENT in ZUARI

 To study process of CASH INFIOWS and OUTFLOWS in ZUARI CEMENT LTD

 To study RISK MANAGEMENT under ZUARI CEMENT LTD

 To study RESERVES CYCLE of ALM under ZUARI CEMENT LTD

 To study FUNCTIONS AND OBJECTIVES of ALM committee.

The study of ALM Management is based on two factors.

1. Primary data collection.

2. Secondary data collection

PRIMARY DATA COLLECTION:

The sources of primary data were

 The chief manager – ALM cell

 Department Sr. manager financing & Accounting

 System manager- ALM cell

SECONDARY DATA COLLECTION:

 Annual report of the ZUARI CEMENT LTD

 MurthyGRK(2016) in his article “Credit Risk Management in a Market Driven

Title of the Books Author

1. Risk management Gustavson hoyt

4. Management Research magazine P.M.Dileep Kumar

5. India financial system M.Y. Khan

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