Copy of Project on Working Capital (2)

8/13/2019 Copy of Project on Working Capital (2)

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DECLARATION

I hereby declare that the research entitled Study on Working Capital appraisal at Jammu &

Kashmir Bank Ltd submitted to Entrepreneurship Development Institute of India in partial fulfillment o

the requirements for the award of PGDBM is a record of independent research work carried out by m

under the supervision and guidance of Dr.Premalatha U M, Professor, Jain College, Bangalore. Thi

work has not formed the basis for the award of any Degree and has not been submitted previously to

any other College/University.

Bangalore

January, 2014 KARAN KUMAR MODI


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Dr.Premalatha U M

Professor

Jain College

Bangalore

CERTIFICATE

I certify that this research entitled Study on Working Capital appraisal at Jammu & Kashmir Bank

Ltd submitted to Entrepreneurship Development Institute of India in partial fulfillment of the

requirements for the award of PGDBM is a record of independent research work carried out by Mr.

Karan Kumar Modi under my supervision and guidance. This work has not formed the basis for the

award of any Degree and has not been submitted previously to any other College/University.

Bangalore Dr.Premalatha U M

January, 2014 Research Mentor


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ACKNOWLEDGEMENT

The contentment of completing this project would be incomplete without expressing my heartfe

gratitude to Mr. Shakeel Rehman, Senior Executive in J&K BANK and Dr.Premalatha U M, Jai

College, Bangalore, for giving me an opportunity to work on this extremely interesting project of learnin

and development department of Finance, which was a great learning experience for me.

KARAN KUMAR MODI


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EXECUTIVE SUMMARY

This study is regarding Working Capital appraisal at Jammu & Kashmir Bank Ltd and its managemen

regarding their previous records of working capital and necessary steps taken by them to overcome thi

problem. Author have studied on the working capital with reference to Jammu & Kashmir Bank Ltd.

observed that working capital is very much important for the bank.

The findings which author gained after completing study on working capital inthe company is able t

meet their day to day expenses by allocating the sufficient amount of money towards the current assets

and to increase their turnover by providing better facility to the customer which helps the company to

increase their top line.

After doing this study, the objective gained was to know whether the management is constant

concerned about the overall profitability of the company (or) not.

From the study of working capital author have learned that the overall operational efficiency an

performance is depend upon the proper utilization of working capital in the organization.

Working Capital helps to interpret the financial position of company whether it is appropriate (or) not an

the management is constantly concerned about the overall profitability of the company (or) not.

TABLE OF CONTENTS

CONTENT PAGE NO.

List of Tables i.


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RESEARCH METHODOLOGY 36-38

Statement Of The Problem

Objectives Of The Research

Research Methods

Data Collection

Scope Of the Research

Limitation Of The Research

DATA ANALYSIS 39-49

Total Current Asset

Total Sales

Sundry Debtors

Stocks Of Raw Material

Stocks Of Semi-Finished Goods

Stocks Of Finished Goods

Cash & Bank Balance

Debtors Period (Days)

Creditors Period (Days)

Operating Cycle

Current Ratio

FINDINGS 50

RECOMMENDATION & CONCLUSION 51-52

BIBLIOGRAPHY


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LIST OF TABLES

S.NO LIST OF TABLE PAGE NO.

1 Total Current Asset 39

2 Total Sales 40

3 Sundry Debtors 41

4 Stocks Of Raw Material 42

5 Stocks Of Semi-Finished Goods 43

6 Stocks Of Finished Goods. 44

7 Cash & Bank Balance 45

8 Debtors Period (Days) 46

9 Creditors Period (Days) 47

10 Working Cycle 48

11 Current Ratio 49


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LIST OF GRAPHS

S.NO LIST OF GRAPH PAGE NO.

1 Total Current Asset 39

2 Total Sales 40

3 Sundry Debtors 41

4 Stocks Of Raw Material 42

5 Stocks Of Semi-Finished Goods 43

6 Stocks Of Finished Goods 44

7 Cash & Bank Balance 45

8 Debtors Period (Days) 46

9 Creditors Period (Days) 47

10 Working Cycle 48

11 Current Ratio 49


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INTRODUCTION

1.1. WORKING CAPITAL- Meaning of Working Capital:

Working Capital is a financial metric which represents operating liquidity

available to a business, organization or other entity, including governmental

entity. Along with fixed assets such as P&M, working capital is considered a

part of operating capital. Gross working capital equals to current assets.Net

working capital is calculated as current assets minus current liabilities. It is a

derivation of working capital that is commonly used in valuation techniques

such as discounted cash flows.

Capital required for a business can be classified under two main categories

via,

1) Fixed Capital

2) Working Capital

Every business needs funds for two purposes i.e. for its establishment and to

carry out its day- to-day operations. Long terms funds are required to create

production facilities through purchase of fixed assets such as P&M, land,

building, furniture, etc. Investments in these assets represent that part offirms capital which is blocked on permanent or fixed basis and is called fixed

capital. Funds are also needed for short-term purposes for the purchase of

raw material, payment of wages and other dayto- day expenses etc.


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These funds are known as working capital. In simple words, working capital

refers to that part of the firms capital which is required for financing short-

term or current assets such as cash, marketable securities, debtors &

inventories. Funds, thus, invested in current assets keep revolving fast and

are being constantly converted into cash and these cash flows out again in

exchange for other current assets. Hence, it is also known as revolving or

circulating capital or short term capital.

1.2. CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1. Gross working capital

2. Net working capital

The gross working capital is the capital invested in the total current assets of

the enterprise. Current assets are those Assets which can be converted into

cash within a short period, normally one accounting year.

1.3. CONSTITUENTS OF CURRENT ASSETS

1) Cash in hand and cash at bank

2) Bills receivables

3) Sundry debtors

4) Short term loans and advances

5) Inventories of stock as:

a. Raw material


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It suggests the need of financing a part of working capital requirement out

of the permanent sources of funds.

1.6CLASSIFICATION OF WORKING CAPITAL

Working capital may be classified in two ways:

O On the basis of concept.

OOn the basis of time.

On the basis of concept, working capital can be classified as gross working

capital and net working capital. On the basis of time, working capital may be

classified as:

1.7. PERMANENT OR FIXED WORKING CAPITAL

Permanent or fixed working capital is the minimum amount which is required to

ensure effective utilization of fixed facilities and for maintaining the circulation of

current assets. Every firm has to maintain a minimum level of raw material, work-

in-process, finished goods and cash balance. This minimum level of current

assets is called permanent or fixed working capital as this part of working is

permanently blocked in current assets. As the business grow the requirements of

working capital also increases due to increase in current assets.

1.8. TEMPORARY OR VARIABLE WORKING CAPITAL

Temporary or variable working capital is the amount of working capital which is

required to meet the seasonal demands and some special exigencies. Variable


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working capital can further be classified as seasonal working capital and special

working capital. The capital required to meet the seasonal need of the enterprise

is called seasonal working capital. Special working capital is that part of working

capital which is required to meet special exigencies such as launching of

extensive marketing for conducting research, etc.

Temporary working capital differs from permanent working capital in the sensethat is required for short periods and cannot be permanently employed gainfully

in the business.

1.9. IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING CAPITAL

Solvency of the business:Adequate working capital helps in maintaining the

solvency of the business by providing uninterrupted of production.

Goodwill:Sufficient amount of working capital enables a firm to make prompt

payments and makes and maintain the goodwill..

loans: Adequate working capital leads to high solvency and credit

standing can arrange loans from banks and other on easy and favorable terms.

Cash Discounts: Adequate working capital also enables a concern to avail

cash discounts on the purchases and hence reduces cost.

Regular Supply of Raw Material:Sufficient working capital ensures regular

supply of raw material and continuous production.

Regular Payment of Salaries, Wages and Other Day to Day

Commitments: It leads to the satisfaction of the employees and raises the


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morale of its employees, increases their efficiency, reduces wastage and costs

and enhances production and profits.

If a firm is having adequate

working capital then it can exploit the favorable market conditions such as

purchasing its requirements in bulk when the prices are lower and holdings its

inventories for higher prices.

: A concern can face the situation during the

depression.

Quick and Regular Return on Investments: Sufficient working capital

enables a concern to pay quick and regular of dividends to its investors and

gains confidence of the investors and can raise more funds in future.

High Morale: Adequate working capital brings an environment of securities,

confidence, high morale which results in overall efficiency in a business.

1.10. EXCESS OR WORKING CAPITAL INADEQUATE

Every business concern should have adequate amount of working capital to run

its business operations. It should have neither redundant or excess working

capital nor inadequate nor shortages of working capital. Both excess as well as

short working capital positions are bad for any business. However, it is the

inadequate working capital which is more dangerous from the point of view of the

firm.


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1.11. DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKING

CAPITAL

1. Excessive working capital means ideal funds which earn no profit for the firm

and business cannot earn the required rate of return on its investments.

2. Redundant working capital leads to unnecessary purchasing and accumulation

of inventories.

3. Excessive working capital implies excessive debtors and defective credit policy

which causes higher incidence of bad debts.

4. It may reduce the overall efficiency of the business.

5. If a firm is having excessive working capital then the relations with banks and

other financial institution may not be maintained.

6. Due to lower rate of return on investments, the values of shares may also fall.

7. The redundant working capital gives rise to speculative transactions

1.12. DISADVANTAGES OF INADEQUATE WORKING CAPITAL

Every business needs some amounts of working capital. The need for working

capital arises due to the time gap between production and realization of cash

from sales. There is an operating cycle involved in sales and realization of cash.

There are time gaps in purchase of raw material and production; production and

sales; and realization of cash.

Thus working capital is needed for the following purposes:

For the purpose of raw material, components and spares.


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To pay wages and salaries

To incur day-to-day expenses and overload costs such as office expenses.

To meet the selling costs as packing, advertising, etc.

To provide credit facilities to the customer.

To maintain the inventories of the raw material, work-in-progress, stores and

spares and finished stock.

For studying the need of working capital in a business, one has to study the

business under varying circumstances such as a new concern requires a lot of

funds to meet its initial requirements such as promotion and formation etc. These

expenses are called preliminary expenses and are capitalized. The amount

needed for working capital depends upon the size of the company and ambitions

of its promoters. Greater the size of the business unit, generally larger will be the

requirements of the working capital.

The requirement of the working capital goes on increasing with the growth and

expensing of the business till it gains maturity. At maturity the amount of working

capital required is called normal working capital.

There are others factors also influence the need of working capital in a business.

1.13. FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS

1. NATURE OF BUSINESS: The requirements of working is very limited in

public utility undertakings such as electricity, water supply and railways because

they offer cash sale only and supply services not products, and no funds are tied

up in inventories and receivables. On the other hand the trading and financial


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firms requires less investment in fixed assets but have to invest large amount of

working capital along with fixed investments.

2. SIZE OF THE BUSINESS:Greater the size of the business, greater is the

requirement of working capital.

3. PRODUCTION POLICY: If the policy is to keep production steady by

accumulating inventories it will require higher working capital.

4. LENGTH OF PRDUCTION CYCLE: The longer the manufacturing time the

raw material and other supplies have to be carried for a longer time in the

process with progressive increment of labor and service costs before the final

product is obtained. So working capital is directly proportional to the length of the

manufacturing process.

5. SEASONALS VARIATIONS: Generally, during the busy season, a firm

requires larger working capital than in slack season.

6. WORKING CAPITAL CYCLE: The speed with which the working cycle

completes one cycle determines the requirements of working capital. Longer the

cycle larger is the requirement of working capital.

DEBTORS

CASH FINISHED

GOODS

RAW MATERIAL WORK IN PROGRESS


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7. RATE OF STOCK TURNOVER: There is an inverse co-relationship between

the question of working capital and the velocity or speed with which the sales are

affected. A firm having a high rate of stock turnover will needs lower amount of

working capital as compared to a firm having a low rate of turnover.

8. CREDIT POLICY:A concern that purchases its requirements on credit and

sales its product / services on cash requires lesser amount of working capital andvice-versa.

9. BUSINESS CYCLE: In period of boom, when the business is prosperous,

there is need for larger amount of working capital due to rise in sales, rise in

prices, optimistic expansion of business, etc. On the contrary in time of

depression, the business contracts, sales decline, difficulties are faced in

collection from debtor and the firm may have a large amount of working capital.

10. RATE OF GROWTH OF BUSINESS: In faster growing concern, the

company might require large amount of working capital.

1.14. MANAGEMENT OF WORKING CAPITAL

Management of working capital is concerned with the problem that arises in

attempting to manage the current assets, current liabilities. The basic goal of

working capital management is to manage the current assets and current

liabilities of a firm in such a way that a satisfactory level of working capital is

maintained, i.e. it is neither adequate nor excessive as both the situations are

bad for any firm. There should be no shortage of funds and also no working

capital should be ideal. WORKING CAPITAL MANAGEMENT POLICES of a firm

has a great effect on its probability, liquidity and structural health of the

organization. So working capital management is three dimensional in nature as:


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1. It concerned with the formulation of policies with regard to profitability,

liquidity and risk.

2. It is concerned with the decision about the composition and level of current

assets.

3. It is concerned with the decision about the composition and level of current

liabilities.

1.15. WORKING CAPITAL ANALYSIS

It is a known fact that working capital is the life blood and the center of a

business. Adequate amount of working capital is very much essential for the

smooth running of the business. And the most important part is the efficient

management of working capital in right time. The liquidity position of the firm is

totally effected by the management of working capital. So, 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 a business. This involves the need

of working capital analysis.

The analysis of working capital can be conducted through a number of

devices, such as:

1. Ratio analysis.

2. Fund flow analysis.

3. Budgeting.


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1. RATIO ANALYSIS

A ratio is a simple arithmetical expression, i.e. one number to another. The

technique of ratio analysis can be employed for measuring short-term liquidity or

working capital position of a firm. The following ratios can be calculated for these

purposes:

1. Current ratio

2. Quick ratio

3. Absolute liquid ratio

4. Inventory turnover

5. Receivables turnover

6. Payable turnover ratio

7. Working capital turnover ratio

8. Working capital leverage

2. FUND FLOW ANALYSIS

Fund flow analysis is a technical device designated to study the source from

which additional funds were derived and the use to which these sources were

put. The fund flow analysis consists of:

a. Preparing schedule of changes of working capital

b. Statement of sources and application of fund.


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It is an effective management tool to study the changes in financial position

(working capital) business enterprise between beginning and ending of the

financial dates.

3. WORKING CAPITAL BUDGET

A budget is a financial and / or quantitative expression of business plans and

polices to be pursued in the future period time. Working capital budget as a part

of the total budgeting process of a business is prepared estimating future long

term and short term working capital needs and sources to finance them, and then

comparing the budgeted figures with actual performance for calculating the

variances, if any, so that corrective actions may be taken in future. The objective

working capital budget is to ensure availability of funds as and needed, and to

ensure effective utilization of these resources. The successful implementation of

working capital budget involves the preparing of separate budget for each

element of working capital, such as, cash, inventories and receivables etc.


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COMPANY PROFILE

THE JAMMU AND KASHMIR BANK LTD

2.1. INTRODUCTION

Founded 1938

Headquarters Jammu & Kashmir, India

No. of Locations > 500 branches/offices

Industry Financial, Commercial banks

Employees 6833

The Jammu & Kashmir Bank is the first of its nature and composition as a State

owned bank in the country. The Corporate Social Responsibility (CSR) if the J&K

Bank seeks to recognize obligations towards society and aims to integrate the

CSR ideals into its mission for optimizing both business and social performance.

It stresses on promoting work life balance, give attention to social and

environmental concerns. The CSR is not just recognized as promulgating the

Banks own values and principles of philanthropy but also the values and

principles of all those who have a stake in it or are affected by its operations.The

State government besides contributing half of the issued capital also appointedthe bank as bankers for general banking and treasury business of the State

government.

In its formative years, the bank had to coup up several serious problems,

particularly around the time of independence, when two of its branches at


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Muzaffarabad and Mirpur fell to the other side in 1947.However, the State

government came with assistance of Rs.6.00 lacks to meet the claims. Following

the extension of Central laws to the State of Jammu & Kashmir, the Bank was

defined as a government companies Act 1956.

To overcome this crisis, the Maharaja of the State, Maharaja Hari Singh,

conceived the idea to establish a bank to help people of the State to come out ofthe economic backwardness. The scheme of forming the bank was formulated by

an eminent banker sir Sorabji N.Pochkanwala, the Managing Director of Central

Bank of India. The outcome of the efforts of Sir Sorabji resulted in the

establishment of the Jammu & Kashmir Bank Limited on October 1; 1938 and the

Bank formally commenced its business on July 4, and 1939.

The bank opened its first branch at Residency Road, Srinagar. Encouragedby

the support of public, it opened its another branch at Jammu. By 1946, the

number of branches of the bank went up to 12.

BRANDS IDENTITY

The new identity for J&K Bank is a visual representation of the Bank's philosophy

and business strategy. The three colored squares represent the regions of

Jammu, Kashmir and Ladakh. The counter-form created by the interaction of the


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squares is a falcon with outstretched wings - a symbol of power and

empowerment. The synergy between the three regions propels the bank towards

new horizons. Green signifies growth and renewal, blue conveys stability and

unity, and red represents energy and power. All these attributes are integrated

and assimilated in the white counter-form.

2.2.MISSION

Our mission is two-fold: To provide the people of J&K international quality

financial service and solutions and to be a super-specialist bank in the rest of the

country. The two together will make us the most profitable Bank in the country.

2.3. VISSION

To catalyze economic transformation and capitalize on growth.

Our vision is to engender and catalyze economic transformation of J&K and

capitalize from the growth induced financial prosperity thus engineered. The

Bank aspires to make J&K the most prosperous state in the country, by helping

create a new financial architecture for the J&K economy, at the center of which

will be the J&K Bank.

2.5.ORGANISATIONAL HIERARCHY & BOARD OF DIRECTORS


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Brief Profile of Directors

1. MUSHTAQ AHMAD:

Having joined the Bank in 1972 as Probationary Officer (PO), Mr. Mushtaq

Ahmad has a distinguishing career of 36 years as a prudent banker. His personal


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progression has been a vital and contributing element of the unfolding success

story of J&K Bank since more than three decades.

Before his retirement as Executive Director of the Bank in February 2008, he

held some of the most significant positions in the bank and discharged all his

duties with honesty and distinctive vision.

This person makes an ideal blend of specialized knowledge and practical

experience in almost all the critical fields of contemporary banking, which include

Credit/Risk Management, Strategy and Business Development, Assets & Liability

Management, Human Resource Development, Investments, Treasury, Forex

operations, International Banking, Insurance etc.

As a leading banker, he commands huge respect for his prudence, esteem for

his discipline and affection for his leadership skills in the Bank as well as the

industry.

As a top executive, Mushtaq Ahmad lays great emphasis on talent search,

human resources development, skill enhancement, besides team building.

2. SUDHANSHU PANDEY, IAS:

Mr. Sudhanshu Pandey, IAS, is Commissioner Secretary to Government,

Finance Department, J&K, and Govt. A post graduate in Life Science (Botany)

with specialization in Environmental Management and Ecology (Gold Medal),

University of Allahabad, MBA in Financial Management; Business Management

and Financial Management, Institute of Management, Ahmadabad, Reforms in


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Government, Indian Institute of Management, Bangalore and Decentralized

Industrial Development, Japan

3. ARNAB ROY:

Mr. Arnab Roy, the Regional Director, Reserve Bank of India is a holder of

Masters Degrees in Arts and also Business Administration (MBA).

He has more than 27 years of valuable experience serving the Reserve Bank in

various capacities, prominent being General Manager, Issue Department and

DBS. He has also been associated for a short while with Banking Ombudsman

and is presently the Regional Director of J&K State.

4. VIKRANT KUTHIALA:Mr. Vikrant Kuthiala is B.com (Hons) from Hindu College,

Delhi University. He is a prominent Businessman from Jammu with interests in

steel manufacturing and hydel projects. He is also representing on the

committees of various academic and professional organizations, prominent being

the Regional Advisory Committee of Central Excise & Customs, J&K, Chamber

of Commerce & Industry, Jammu and J&K State Committee of Federation of

Industries of India, New Delhi. He is also a Member of India Islamic Cultural

Centre, New Delhi and INTACH, J&K Chapter, Jammu.

5. PROF. NISAR ALI: Prof. Nisar Ali is a Ph.D. in Economics from Osmania

University, Hyderabad. He is a Professor from Post-Graduate Department of

Economics, University of Kashmir.

6. A. M. MATTO:Mr. A. M. Matto is a Graduate in Commerce and World

Explorer. He is a high silhouette Businessman having his interests in the


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manufacture and export of Kashmir Handicrafts. He has made significant

contribution to commerce industry by being associated with it in the capacity of

President and other prominent positions. Mr. A. M. Matto has had a long

association with the Bank as Director, during which he has made valuable

contribution to the Institution with his rich and varied experiences.

7. RAKESH KUMAR GUPTA:Mr. R.K. Gupta, aged 47 years, is a professional

Chartered Accountant with 25 years standing possessing skill in Finance,

Taxation, Auditing and Corporate Legal Affairs. He started his professional

career with M/s Gupta & Associates in January 1986 and heads this renowned

firm of Chartered Accountants since then.

Mr. Gupta remained in Executive Committee of the Jammu & Kashmir Branch of

the Institute of Chartered Accountants of India for three terms from 1991-1994;

1994-1998 and 2006-2009. During these three terms he represented the Branch

as its Treasurer, Secretary, Vice-Chairman and Chairman. Mr. Gupta has been

member of Tax Payers Committee of this Region.

8. NIHAL GARWARE:Mr. Nihal Chandra Kant Garware is a holder of Bachelor of

Arts Degree (U.S.A.) and the scion of well-known Industrialist family of India

the Garware.

Mr. Nihal Chandra KantGarware is at present Head of the Legal Department and

Liaison Department in some of the Garware Companies. He has been a Director

in various companies in the Garware Group, where his responsibilities have

ranged from Production, Sales, Legal, and Liaison to Finance. He is Advisor to

outside Companies like Ama Pvt. Ltd., D. Y. Patil Group and Sharad Pawar

International School.


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2.6. FINANCIAL PRODUCTS

LOAN PRODUCTS:

INSURANCE POLICIES

TRANSACTIONS

LOAN PRODUCTS:

PERSONAL LOAN

With the changing times, the luxuries of yesteryears have become basic

necessities of today ensuring that you dont miss out living a quality for

yourselves and your family. Our whole suite of personal finance products helps

you in owning all basic necessities of life and proudly so be it having your own

sweet home, renovating and refurbishing it with items like: TV, refrigerator,

washing machine etc. or bring a proud owner of a stylish car, they have a loan

product for every such need.

2.7. CONSUMPTION LOAN

Eligibility:

Permanent employees of central/state Govt., public sector

undertakings, autonomous bodies, institutions, having at least 3

years of active remaining services.

Amount of Loan:

Maximum Rs.7.00 Lakh or 30 times gross monthly salary

Gross deductions including installments of the proposed loan not

exceed 60% of the gross income.

Margin: Nil


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Repayment period:

The loan along with interest would be repayable in 84 monthly

installments beginning one month after the disbursement of the loan.

2.8. HOME LOAN

Eligibility:

Professionals and self-employed like Doctors, engineers, chartered

accounts, advocated with minimum standing of 3 years.

Employees of Govt. / semi-governments departments, public sector

undertakings with minimum 3 years service.

Purpose:

Purchase with construction of house/flat

renovation/additions/alterations of existing house, purchase of land.

Margin:

For construction/purchase of house: 15%

For renovation: 25%

Repayment period:

Up to 20 years including 9 months moratorium by equal monthly

installments.

Rate of interest:

Repayment

Period

Floating ROI Fixed ROI

Up to Above Up to Above


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2 Lakh 2 Lakh 2 Lakh 2 Lakh

5 years 11.5% 13.25% 12% 14.25%

5 to 10 years 11.75% 14% 13% 15%

10 to15 years 12.75% 14.25% 13% 15%

Above 15 years 13% 14.75% 13% 15%

2.9. CAR LOAN

Eligibility:

Employees of Govt. /semi-Government departments, autonomous

bodies, public sector undertakings, individual, firms, limited

companies having a minimum 5 years active service.

Security:

Hypothecation of vehicle, third party guarantee of one person,

Quantum of Finance:

Maximum 10 Lakh.

Margin: 20% of the cost of the vehicle.

Repayment: 7 years in equal monthly installments


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Rate of Interest: 12 % up to 4 Lakh

13.5 % above 4 Lakh

2.10. EDUCATION LOAN

For bright students with a good academic background and pursuing

graduation/post-graduation courses in Science/Arts/Commerce,

Medicine, Surgery, Hotel Management, Design, Architecture,

Biochemistry, Veterinary Science, ICWA, CA, CFA, Computer

Certificate Courses/leading to Diploma/Degree, MCA, MBA, MS

etc.

Eligibility:

Should have secured admission to professional/technical courses

in domestic/foreign universities/institutions through entrance

test/selection process.

Margin:

Up to 5 Lakh: Nil

Above 5 Lakh

i) Studies in India: 5%

ii) Studies Abroad: 15

Repayment:


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Moratorium: Course period + one year or Six months after getting Job

whichever is earlier? The loan is to be repaid in 5 to 7 years after moratorium

period.

Rate of Interest:

2.5 to 5 Lakh 11.5%

5 to 10 Lakh 12.5%

10 to 20 Lakh 14.5%

2.11. J&K BANK DASTKAR FINANCE

J&K Bank in its endeavor to promote trade industry and to preserve the

traditional arts and crafts of the state devised a scheme aimed at the financial

needs of the artisan community aptly called JK Bank Dastkaar Finance. The

scheme provides easy and soft credit to craftsmen engaged in the trade and

helps them to set up their own ventures, weeding out the middlemen responsible

for their exploitation. Keeping in view the specific production cycle associated

with this trade, the loan comprises of a term loan and working capital

components.

Repayment of the bank finance: To make the credit hassle free, no Collateral

/third party guarantee is required. The product has been designed on the banks

philosophy of confidence based lending as opposed to collateral based lending.

There is no requirement of any collateral security under this product.

Bare minimum with only two documents to be executed for disbursement of the

loan. In order to increase the reach of this product the database of the weavers/


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artisans available with various trade associations is being utilized besides

identification of people by concerned branches of the bank.

2.12. JK BANK ZAFRAN FINANCE SCHEME

Kashmiri Saffronthe most expensive spice in the world has a unique aroma

and flavor. It is considered worlds best because of its scientifically proven

superior quality, hence commanding a price much higher than the saffron fromany other part of the world. Saffron is extensively used for culinary and coloring

purposes. Besides, because of its medicinal qualities, it is an important ingredient

for both traditional (Ayurveda and Unani) and allopathic medicines. Its demand in

the markets, both domestic and international, is growing. Saffron is a niche-

economy, involving hundreds of Kashmiri families. Still, the recent decline in

saffron production is going to affect this segment of state economy. In 2003-04,

around 6.98 metric tons of saffron was exported while as the exports declined to

5.19 metric tons in 2004-05.

2.13. AGRICULTURE AND ALLIED FINANCE

Agriculture is the mainstay of our economy but unfortunately being financed

mainly from outside of the banking sector.

Our rural finance strategy envisages extending the frontier of formal finance ton

incorporate agriculture along with other rural economies on principles of

sustainability, efficiency and significant outrage.

Rate of Interest:

Up to .50 Lakh: 12.5%

50 to 2.00 Lakh: 13.5%


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2.00 to 5.00 Lakh: 14.0%

5.00 to 20.00 Lakh: 14.5%

2.14. J K BANKS ALL - PURPOSE AGRI-TERM LOAN

The product aptly named as All-Purpose Agri-Term Loan has been designed in a

way that lays special emphasis on small and marginal farmers and provide

sufficient and, more importantly, timely finances to the farmers engaged in all

types of agricultural and allied activities. The product aims to cater to the needs

of small farmers within very little land holdings in the rural and semi-urban areas

of the state.

The product is given to the people engaged in any kind agriculture and allied

activities. Horticulture, Sericulture, Animal Husbandry, Plantation and Fisheries

can be financed through this product.

The objective has been to provide easy finance to needy farmers through regular

channels of finance and to wean them away from the exploitative circle created

by the non-banking intermediaries. For that purpose, the product has been

devised in such a way that hitherto un-banked customers get an easy access to

banking services through simple and affordable documentation process.

A maximum credit of Rs 1.00 Lakh, depending upon the Agri-activity to be

financed is provided but multiple activities can also be considered for finance.

The product is offered at affordable interest rates.

Rate of Interest:

Up to .50 Lakh: 13.0%


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Above .50 Lakh 14.0%

2.15. BUSINESS LOAN

Right fromfinancing the contractors, providing credit to transporters, funding

the working capital of shopkeepers, providing financial solution to business

men to corporate, SME and infrastructure finance, our regular loan products

cater to all kinds of business of industrial activities in the state and rest of

country.

Rate of Interest:

Up to .50 Lakh: 13.0%

.50 to 2.00 Lakh 14.0%

2.00 to 5.00 Lakh 14.5%

5.00 to 20.00 Lakh 15.0%

2.16. MICRO-FINANCE

J&K Bank is working on empowering people and demonstrating that people with

lesser means can be reached profitably. For us, at J&K Bank, empowerment is

the process of enhancing the capacity of individuals or groups make choices and

to transform those choices into desired actions and outcomes.


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One of the many of such products is our craft development loan which caters to

the needs of our highly talented and skilled artisans engaged in Wood Craving,

Paper Mache, Namdasazi, Copper Smithy, Willow Wicker and Kangri making etc.

Likewise all our other such products have been designed keeping in view the

seasonal and craft specific requirements.

2.17. INSURANCE POLICIES

METLIFE INDIA INSURANCE

MetLife India Insurance Company Limited (MetLife) is an affiliate of

MetLife, Inc. and was incorporated as a joint venture between

MetLife International Holdings, Inc., The Jammu and Kashmir Bank,

M.Pallonji and Co. Private Limited and other private investors.

MetLife is one of the fastest growing life insurance companies in

the country. It serves its customers by offering a range of innovative

products to individuals and group customers more than 600

locations through its bank partners and company-owned offices.

MetLife has more than32,000 Financial Advisors, who help

customers achieve peace of mind across the length of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million

customers in the Americas, Asia Pacific and Europe. Affiliated

companies, outside of India, include the number one life insurer in

the United States with over 140 years of experience and

relationships with more than 90 of the top one hundred FORTUNE

500 companies. The MetLife companies offer life insurance,

annuities, automobile and home insurance, retail banking and other


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financial services to individuals, as well as group insurance,

reinsurance and retirement and savings products and services to

corporations and other institutes.

The bank is also Corporate Agent of MetLife and is marketing its

products through its strong branch network

.TAX PRODUCTS AND PLANNING(TAX SAVER TERM DEPOSIT SCHEME

Purpose

To enable our customersto place long term deposits to earn higher rate

of interest and also to avail the tax benefits under section 80C of Income

Tax Act, 1961.

Eligibility

Single holder type deposits: Resident assesse for himself / herself as an

individual or in the capacity of the Karta of the Hindu undivided family.

Joint holder type deposits: Joint accounts may be open in the name of

two adults or in the name of an adult and a minor.

Amount of Deposit

Minimum: Rs. 1,000 and in multiples thereof.

Maximum: Rs. 1, 00,000 in a year.

Type of Account

Option 1(TSTDS-1): Interest applied on quarterly basis. Payable in cash or

credited to depositors account every quarter during the term of the

deposit.

Option 2(TSTDS-2): Interest applies on monthly basis. Payable in cash or

credited to depositors account.

Option 3(TSTDS-3): Compound rate of interest on the deposit paid along

with the principal at the time of maturity.


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Term of Deposit

5-10 years

Premature Withdrawal

Not allowed before the expiry of five years from the date of its receipt.

Loan/Overdraft Facility

Not allowed.

Rate of Interest

Maturity Period Interest Rates Per Annum

7 days to 30 days 4.50%




181 days to less than 1 year 8.50%

1 years to less than 3 years 9.00%

3 years to less than 5 years 8.75%

5 years to 10 years 8.25%

o The above rates are applicable for fresh deposits andrenewal of maturing deposits for amounts less than Rs

1.00 Crores.o Domestic Term Deposits of Senior Citizens of over 60

years of age shall continue to earn 0.50 % additional rate

across all maturities.


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Accepted at all domestic as well as International Master Card, Maestro,

Cirrus Enabled ATMs and Point of Sale locations.

Accepted at National Finance Switch (NFS) ATMs.

NRE SAVINGSACCOUNT

A deposit plan that provides standard banking facilities such as Cheque book,

provision for nomination and remittance facilities and also allows repatriation of

entire funds.

Features

Account can be opened through instruments such as Demand Drafts, Wire

transfers etc. in freely convertible countries.

Account can also be opened bytendering Foreign Currency Notes,

Travelers Cheque, etc. during your personal visit to India.

Local Rupee Cheques (drawn in India) etc. & cash In Rupees cannot be

deposited in this account.

The account can be opened jointly with other NRIs. Minimum deposit od Rs.1000 and Average Quarterly Balance of Rs.2500

only.

Entire fund including interest are fully repairable.

Offers remittance facilities through RTGS and NEFT within India and

through SWIFT to outside India.

Nomination facility available.

Personal Cheque Book Facility with cheques payable on all anywhere

branches of the bank.

Interest payable at half yearly basis (September & March).

The principal and interest earned is fully tax exempted.

Add-on Features

Internet banking facility for viewing account statements and fund transfer.

Free Global Access Debit Card to account holder or for his assigned

holder.


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Account operations allowed through Letter of Mandate or POA holder in

India.

Safe Deposit Locker facility available.

Free monthly statements over e-mail.

2.18. TRANSACTIONS

SUPPORT SERVICES

Technology application has remained the thrust area of the Bank for last

many years with an objective to offer state of the art world class banking

facilities to its customers.

The Bank has continued to leverage information technology as a strategic

tool for its business operations, to gain competitive edge in customer

service as well as improve productivity and efficiency.

The Banks IT strategy emphasizes enhanced level of customer service

through 24x7 availability, multi-channel banking and cost efficiency

through optimal use of electronic channels, wider market reach andopportunities for cross-selling.

The Banks focus is on harnessing technology for integrating diverse

products and services. Keeping this in view, the Bank continued to widen

the scope of multiple delivery channels such as ATM installations, Core

Banking, Internet Banking and SMS Banking at more and more centers.

CORE BANKING

Power to access and operate your accounts across our Core Banking

branch network.

The facilities include cash deposit, cash withdrawal, transfer transactions,

remittances, account statements and collections.

THIRD PARTY SERVICES

Mutual Funds


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J&K Bank has entered into tie-ups with reputed Asset Management

Companies for distribution of Mutual fund products.

Mutual Fund industry is one of the fastest growing segments in financial

services in India. Over the years, banks in India have emerged as the

biggest distributors of financial products. This has helped the banks to

capture and retain their huge client base and simultaneously adding a

steady stream of fee based income.

Mutual Fund have become an attractive proposition for investors in thecurrent context and for J&K Bank, it will be a good investment option to

have in our product portfolio.

Moreover the branch can augment its fee based income the Bank aims to

match to industry standards.

The AMCs with which the Bank has entered into an arrangement are:

UTI, Kotak and Reliance Mutual fund. The Bank shall undertake

distribution of their current schemes as well as NFO(New Fund Offer) as

and when the AMC comes up with the same.

Insurance ServicesLife Insurance

MetLife India Insurance Company Limited is an affiliate of MetLife, Inc.

and was incorporated as a joint venture between MetLife International

Holdings, Inc., The Jammu and Kashmir Bank, M.Pallonji and Co.private

limited and other private investors.

MetLife is one of the fastest growing life insurance companies in the

country. It serves its customers by offering a range of innovative products

to individuals and group customers at more than 600 locations through its

bank partners and company-owned offices.

MetLife, Inc., through its affiliates, reaches more than 70 million customersin the Americas, Asia Pacific and Europe. Affiliated companies, outside of

India, include the number one life insurer in the United States.

Insurance ServicesNon Life Insurance


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The bank has entered into an alliance with Bajaj Allianz to distribute their

non-life products.

These products are available at all branches of the bank across India.

Remittance Services

The bank has a tie-up with Western Union Financial Services Inc., an

international leader in money transfer services through its primary agent

SITA, a division of Kuoni Travels India Pvt. to provide inbound moneytransfer services to customer across the country. As a result of this

association, people in general and J&K bank customers in particular are

availing the facility of receiving money from their relatives and friends

abroad using the Western Union Money Transfer Service.

Our bank also has an arrangement with Reliance Capital Travel mate to

provide inbound money transfer services to customers across the country.

Cash Management Service

Real Time Gross Settlement (RTGS)

RTGS is applicable for payouts in excess of Rs.2,00,000.

Smooth, safe and fastest mode of transferring money across the banks in

India.

RBIs RTGS guidelines require the beneficiary bank to credit the

beneficiarys account or return the funds, with a maximum time of two

hours.

RTGS is an effective collection s mechanism as funds across the country

can be made to or received from across the country on a same-day basis.

Over 34,000+ bank branches participate in RTGS. Efficient working capital management by enabling negotiation of better

terms with suppliers and by facilitating speedy collection of funds.

National Electronic Fund Transfer(NEFT)


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RBIs NEFT guidelines mandate the beneficiary bank to credit the

beneficiarys account or return the funds, within the same day for

transactions processed before a stipulated cut-off time.

There is no floor or cap on the amount of transfer in NEFT, means you

can transfer from an account as small as one rupee to any amount.

Efficient mechanism from outstation payments and collections. Payments

can be made to or received from across the country on the same day.

Reduces chances of frauds typically associated with paper-basedpayments.

2.19. Market Share & Position of the Company in the Industry

SR.NO. PARTICULARS NO OF SHARES TOTAL %

PHYSICAL ELECTRONIC SHARESTO

CAPITAL

1 GOVERNMENT OFJ&K

0 25775266 25775266 53.17

2INDIAN MUTUAL

FUNDS0 1851177 1851177 3.82

3INSURANCE

COMPANIES0 215608 215608 0.44

4 BANKS 0 13691 13691 0.03

5NON RESIDENT

INDIANS1500 269769 271269 0.56

6FOREIGN INST.

INVESTORS0 13140659 13140659 27.11


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7BODIES

CORPORATES17394 1813111 1830505 3.78

8RESIDENT

INDIVIDUALS1744557 3510370 5254927 10.84

9

CLEARING

MEMBERS 0 124700 124700 0.26

TOTAL 1763451 46714351 48477802 100.00

2.20. ANALYST REPORT COVERING J&K BANKS SHARE

Company Name Analyst Name Phone No.Dated

Spark Capital Advisors (I) PvtLtd

Abhinesh Vijayaraj,

Jyoti Kumar

Varma, Navin Babu

+91 44

43440006,43440033,

43440165

28-Nov-13

Credit Suisse Ashish Gupta+ 91 22

6777389525-Nov-13

Anand Rathi Shares and Stock

Brokers Ltd

Clyton Fernandes

and Kaitav Shah

+ 91 22

66266744,

66266545

17-May-13

Edelweiss Securities LimitedRaj Gala, Sandeep

Bhandari

+ 91 2240866137,

40865630

17-May-13


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BOB Capital Markets Ltd Jisha Nair+ 91 22

6138937714-Feb-13

Credit SuisseAshish Gupta and

Prashant Kumar

91 22

67773895,

67773942

05-Feb-13

Anand Rathi Shares and Stock

Brokers Ltd

Clyton Fernandes

and Kaitav Shah

91 22

66266744,

66266545

05-Feb-13

ICICI Securities LimitedKajal Gandhi,Vasant Lohiya andJaymin Trivedi

91 22

4084040431-Dec-12


Bhandari

91 22

40866137,

40865630

02-Nov-12

Karvy Stock Broking LimitedHatim Broachwala

and Paresh Jain

91 2261844329,

61844324

01-Nov-12

Karvy Stock Broking LimitedHatim Broachwala

and Paresh Jain

91 22

61844329,61844324

12-Oct-12

Prabhudas Lilladher Pvt. Ltd.

Adarsh

Parasrampuria

and Parul Gulati

91 22

66322236,

66322242

03-Oct- 12

Reliance Securities Ltd Jimit S. Doshi91

22 3320132328-Sep-12


Bhandari

91

22 40886137,22 40885630

08-Aug-12

Elara Securities (India)

Private LimitedMona Khetan

91

22 4062681411-July-12

CLSA Asia Pacific MarketsAashish Agarwal,Prakhar Sharma,

Akshat Agarwal

912266505075,

2266505058,

15-May-12


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2266505065

Reliance Securities Ltd Jimit S Doshi022-33201323

24-Feb-12

CLSA Asia Pacific Markets

Aashish Agarwal,

Prakhar Sharma,

Akshat Agarwal

91

2266505075,

2266505058,

22665050652266505065

01-Aug-11

Finquest Securities (P) LtdAmandeep Goraya,Chintan Mewar

91 22

40002669,40002665

18-May-11

Credit Suisse

Ashish Gupta,

Anish Tawakley,Deepak Ramineedi

91 2267773895,

67773747,

67773942

16-May-11

CLSA Asia Pacific Markets Aashish Agarwal,Prakhar Sharma

91

2266505075,2266505058

17-Mar-11

Finquest Securities (P) LtdAmandeep Goraya,

Chintan Mewar

91 22

40002669, 9122 40002665

02-Feb-11

Batlivala & KaraniVikash Mundhra /Dhaval Gala

91 22

40317183, 22

40317131

01-Feb-11

Fortune Group Yogendra Singh91 22

43003825

01-Feb-11

CLSA Asia Pacific MarketsAashish Agarwal,

Prakhar Sharma

91 22

66505075, 9122 66505058

01-Feb-11

Motilal Oswal Securities LtdAlpesh Mehta,Abhishek Agarwal

91 22

39825415, 91

22 39825414

31-Jan-11


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Finquest Securities(P) Ltd Chinmay Desai91-22-

4000267031-Jul-07

CLSA Aashish Agarwal91-22-66505075

31-Jul-07

Kotak Securities Ltd.Saday Sinha

91-22-

6634144023-Jan-07

Kotak Securities Ltd Saday Sinha 91-22-66341440

10-Oct-06

Finquest Securities(P) Ltd Chinmay Desai91-22-

4000267010-Oct-06

CLSA Ashish Gupta91-22-

5650507526-Sep-06

ICICI SecuritiesDipankar

Choudhury

91-22-

5637723117-Oct-05

CLSA Ashish Gupta

91-22-

56505075 04-Jul-05

Angel Broking Ltd Sejal Doshi91-22-

5668438030-Jun-05

Enam Securities Punit Srivastava91-22-

5631103510-May-04

Motilal Oswal Securities Ltd. Rajat Rajgarhia91-22-56575200

08-Jan-04


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RESEARCH METHODOLOGY

3.1. STATEMENT OF THE STUDY

The study conducted on working capital at Jammu & Kashmir bankdeals with the

analysis of all working capital aspects of the bank. This project is taken to

improve the working cycle of the company and help them to reduce the working

capital requirements.

3.2. OBJECTIVES OF THE STUDY

Working capital is the most widely used and powerful technique of Financial

Analysis. The main objective of the present study is to know the financial

condition of the company.

To know the overall operational efficiency and financial performance.

To interpret the financial position of company.

To assess the long term financial viability of company.

To know whether the management is constantly concerned about the

overall profitability of the company (or) not.

To identify the importance of working capital for investors and other

Stockholders.

3.3. SCOPE OF STUDY

The scope of the study is confined to detail analysis of working capital

management in THE JAMMU AND KASHMIR BANK LTD

3.4. METHODOLOGY

For the purpose of the study necessary information has been collected through

primary and secondary sources.


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3.5. PRIMARY DATA

The primary data are those which are collected a fresh and for the first time,And

thus happened to be original in character. Primary data include the Information

collected from the officials and existing company throughDiscussions.

3.6. SECONDARY DATA

The secondary data, on the other hand are those which have already been

collected by someone else and which have already been passed though the

statically process.The secondary data include the information from the company

annual reportswhich include financial statement like balance sheet and income

statements. And such other information from text books of financial management,

journals and magazine has also been collected.

3.7. Limitations of the Study

The study conducted and done is analytical, subject to the following limitations

1) The study is mainly carried out based on the secondary data provided in the

financial statements.

2) This study is based on the historical data and information provided in the

annual reports therefore it may not be a future indicator.

3) Time: The time allotted for the project has been only around 2 months.


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DATA ANALYSIS

4.1. Table showing total Current asset

Year Amount (cr)

2010 221.23

2011 323.60

2012 347.29

4.1. Graph showing total current asset


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Inference:

From the above graph it can be seen that the company is able to meet their day

to day expenses by allocating the sufficient amount of money towards the current

assets.

4.2. Table showing total sales

Year Amount (cr)

2010 581.96

2011 838.13

2012 1296.45

0

50

100

150

200

250

300

350

400

2010 2011 2012

Current asset

Current asset


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4.2. Graph showing total sales

Inference:

From the above graph it can be seen that the company is able to increase their

turnover by providing better facility to the customer who helps the company to

increase their top line.

4.3. Table showing sundry debtors

0

200

400

600

800

1000

1200

1400

2010 2011 2012

Total sales

Total sales


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Year Amount (cr)

2010 9.47

2011 28.35

2012 1.23

4.3. Graph showing Sundry debtors

Inference:

0

5

10

15

20

25

30

2010 2011 2012

sundry debtors

sundry debtors


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The above graph is showing that the companys sundry debtor is keep changing

every year. This condition is not healthy for the company.

4.4. Table showing stocks of Raw material

Year Amount (cr)

2010 75.75

2011 85.15

2012 97.34

4.4. Graph showing stocks of raw material

0

20

40

60

80

100

120

2010 2011 2012

Raw material

Raw material


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Inference:

From the above graph it can be easily identify that the Company have sufficient

amount of raw material was blocked as an inventory.


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4.5. Table showing stocks of semi-finished goods

Year Amount (cr)

2010 15.50

2011 18.75

2012 19.25

4.5. Graph showing semi-finished goods

Inference:

0

5

10

15

20

25

2010 2011 2012

semi-finished goods

semi-finished goods


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From the above graph it can be easily identify that the companys semi-finished

goods is in increasing order. This shows that company is fulfilling customers

needs & requirements.


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4.6. Table showing stocks of finished goods

Year Amount (cr)

2010 90.80

2011 146.24

2012 188.56

4.6. Graph showing finished goods

Inference:

0

20

40

60

80

100

120

140

160

180

200

2010 2011 2012

Finished goods

Finished goods


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The above graph is showing that the companys finished goods are doing well.

This states that the company is giving loans, accepting deposits & providing

other services like lockers etc.


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4.7. Table showing Cash & Bank balance

Year Amount (cr)

2010 7.22

2011 5.40

2012 5.91

4.7. Graph showing Cash & Bank balance

Inference:

0

1

2

3

4

5

6

7

8

2010 2011 2012

Cash & Bank balance

Cash & Bank balance


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The above graph states that the most of the money of the company is blocked in

the long term investments rather than the short term.


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4.8. Table showing Debtors period (days)

Year Amount

2010 20

2011 29

2012 10

4.8. Graph showing Debtors period (days)

Inference:

0

5

10

15

20

25

30

35

2010 2011 2012

Debtors period (days)

Debtors period (days)


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The above graph states that the debtors period is not constant. They dont have

proper time frame to collect money from their debtors which is not good for the

company in long term.


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4.9. Table showing Creditors period (days)

Year Amount

2010 37

2011 64

2012 31

4.9. Graph showing Creditors period (days)

Inference:

0

10

20

30

40

50

60

70

2010 2011 2012

Creditors period (days)

Creditors period (days)


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4.10. Table showing Operating cycle

Year Amount (days)

2010 105

2011 80

2012 72

4.10. Graph showing Operating cycle

Inference:

0

20

40

60

80

100

120

2010 2011 2012

Operating cycle

Working cycle


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The above graph states that the operating cycle of the company is doing as good

as its in the decreasing order which is reducing the working capital requirements.

4.11. Table showing Current ratio

Year Amount (times)

2010 1.41

2011 1.29

2012 1.39

4.11. Graph showing Current ratio


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Inference:

The above graph states that the current ratio of the company is not good

because itsless than 2.

1.22

1.24

1.26

1.28

1.3

1.32

1.34

1.36

1.38

1.4

1.42

2010 2011 2012

Current ratio

Current ratio


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FINDINGS

The company is able to meet their day to day expenses by allocating the

sufficient amount of money towards the current assets.

The company is able to increase their turnover by providing better facility to

the customer which helps the company to increase their top line.The companys sundry debtor is changing every year. This condition is not

healthy for the company.

The company has sufficient amount of raw material was blocked as an

inventory.

The companys semi-finished goods are in increasing order. This shows that

company is fulfilling customers needs & requirements.

The companys finished goods are doing well. This states that the company

is giving loans, accepting deposits & providing other services like lockers

etc.

The company is blocked in the long term investments rather than the short

term.

The debtors period is keep fluctuating. They dont have proper time frame

to collect money from their debtors which is not good for the company in

long term.

The company is doing well with its credit policies. But in the year of 2012 the

company is not doing so well they should increase their credit period.

The working cycle of the company is doing as good as it is in the decreasing

order which is reducing the working capital requirements.

The current ratio of the company is not good because its less than 2.


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CONCLUSION

Working capital management analysis is an in-depth analysis. Coverages the

entire financial management with refers to integrated. The JAMMU AND KASHMIR

BANK LTD is company, which give preference to the common mans privilege.

Hence, it is on integrated approach and constant measure may be adopted for

better managerial performance.

Working capital analysis, its criteria is distinctive work while and commendable

technique in postulating the financial behavior of business enterprise.


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RECOMMENDATIONS

1. The bank has got a great image particularly in India. So it should take

such initiatives so as to make the country a self-sustained and financially

independent.

2. The drive should be started by the bank to restore the sick industries in

the country; it will help the bank as well as generate employment

opportunities for the youth.

3. The Bank should help to make business activities safe in the society by

providing schemes which are least risky.

4. The Banks current relations with their debtors are not looking too good

which might be a problem in the future.

5. The long-term policies of the Bank is doing very good but the short-term

policies are not performing that well which can lead to a downfall of the

bank.

.


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BIBLIOGRAPHY

The official site is www.jkbank.net

http://www.jkbank.net/customerHousingLoans.php

http://www.jkbank.net/customerPersonalLoans.php

http://www.jkbank.net/customerEducationalLoans.php

http://www.jkbank.net/customerAutoLoans.php

http://www.jkbank.net/customerAgriLoans.php

http://www.jkbank.net/customerCraftLoans.php

http://www.jkbank.net/investorShare.php

http://www.jkbank.net/supportServices.php

http://www.jkbank.net/thirdPartyServices.php

http://www.jkbank.net/cashMS.php

http://www.jkbank.net/history.php

http://www.jkbank.net/board.php

http://www.jkbank.net/newwid.php

http://www.jkbank.net/csr.php


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Working capital management by P.V Kulkarni, 13 th Revised Edition and

published by Himalaya Publishing House Private Ltd.

Documents

Copy of Project on Working Capital (2)