SYNOPSIS

On

Study Of Treasury Management With Special

Reference To Sunflag Iron And Steel Company Ltd.
Bhandara

Submitted To ,

RTM Nagpur University , Nagpur

Submitted By ,

( Bhupendra Ramu Neware )

Financial Management

J.M. Patel College , Bhandara

(2017-18)
 Introduction :
Treasury Management is the process of administering to the financial assets and
holdings of a business. The goal of most treasury management departments is to
optimize their company's liquidity, make sound financial investments for the future with
any excess cash, and reduce or enter into hedges against its financial risks.

Meaning :

Treasury is the glue binding together liquidity management, asset/liability

management, capital requirements and risk management. It has an increasingly
important job to do. At one end of the spectrum it manages balance sheets and
liquidity, and does good things to enhance the yield on assets and minimize the cost
of liabilities, mostly through the clever and intelligent use of derivatives. At the other
end of the spectrum, treasury can help restructure the balance sheet and provide new
products.

Definition :

Treasury management is the management of an organizations liquidity to

ensure that the right amount of cash resources are available in the right place in
the right currency and at the right time in such a way as to maximize the return on
surplus funds, minimize the financing cost of the business, and control interest
rate risk and currency exposure to an acceptable level .

Sunflag Iron and Steel Co. Ltd. Bhandara.

Sunflag Iron & Steel Company Ltd. was incorporated on 12th September,
1984 as a Public Limited Company in the State of Maharashtra for setting up a
composite steel plant for the manufacture of Mild and Alloy Steel Rolled Products in
Bhandara district, near Nagpur, in Maharashtra. Sunflag Steel is a member of the
Sunflag Group of Companies. Sunflag Steel is incorporating the most sophisticated
Steel Making technologies in collaboration with Krupp Industrietechnik GmbH,
Mannesmann Demag Huttentechnik, MDS Mannesmann Demag Sack GmbH and
Hamburg Consulting and Steel Engineering GmbH of West Germany.

Sunflag Iron and Steel Co. Ltd. is a prestigious unit of the SUNFLAG
GROUP. The plant is located in the central part of India at Bhandara, Maharashtra &
it is 70 Kms from Nagpur. The plant has a capacity to produce 360,000 tonnes per
annum of high quality special steel using liquid pig iron and sponge iron as basic
inputs.
 Objectives :
1) To have in-depth knowledge about the meaning of Treasury Management.

2) To know about the functions, organizational structure and objective of Treasury

Management in the company.

3) To understand the elements of Treasury Management and the functions of

treasurer.

4) To have a broader view on nature of treasury assets & liabilities and to know

what are their products and services involved in Treasury Management.

5) To understand the risk associated with Treasury Management and their

mitigation.

6) To know the future scope involved in Treasury Management & role of

information technology in Treasury Management.

 Rationale And Significance :
1. The study gives the brief idea about the cash flow management in the company.

2. The Detailed study includes how treasury management manages the shareholder

relations.

3. The study describes how treasury management manages the financial risks and

ensures adequate and appropriate sharing of financial information.

4. The study describes how the treasury management maintains the liquidity of

business.

5. The study is based on how companys Treasury Management deploy and invest

the deposit liabilities, internal generation and cash flows from maturing assets for

maximum return on a current and forward basis consistent with the companys

risk policies/appetite.

6. The goal of research proposal is to study the strategies used in Treasury

Management.
 Research Methodology :
Research Methodology is the process used to collect information and data for
the purpose of making business decisions. The methodology may include publication
research, interviews, surveys and other research techniques, and could include both
present and historical information .

Sources Of Data Collection

1. Primary Data Collection :

Primary Data is the data observed or collected directly from first-hand

experience . Primary data are those which are collected at first time. They are original
in characters. They are collected by the researcher first time.

Primary data is collected through meeting key officials from the related area of
Treasury Management, collecting view points from them to arrive at meaningful
conclusion. Conducting interview with appropriate officials relating to the field of
Treasury Management by designing appropriate questionnaires.

2. Secondary Data Collection :

Secondary Data is the data collected by someone else for some other purpose
(but being utilized by the investigator for another purpose) .

Secondary data is collected from books, periodicals, publications, newspaper,

survey reports, journals, websites, and internal website.

Sources Of Data Collection

Primary Data Secondary Data

1. Observation 1. Journals
2. Interaction with the 2. Internet
company officials 3. Newspaper
3. Interviews 4. Annuaal Report from
4. Survey Company Website
5. Questionnaire 6. Company Profile
 Hypothesis :

1. That Sunflag Iron & Steel Co. Ltd. Bhandara. has their own procedure for

treasury management which is followed very well by them.

2. That there is wide future scope in treasury management.

3. That information technology plays a key role in Treasury Management.

4. That there are so many different functions of treasury departments in company

like reserve management & investment, liquidity & fund management, assets

liability management, etc.

 Expected Contribution :

Treasury management includes management of an enterprise's holdings, with the

ultimate goal of managing the firm's liquidity and mitigating its operational, financial
and reputational risk.

To understand the each and every aspect of the Treasury Management of

Sunflag Iron & Steel Co. Ltd. Bhandara. It was essential for me to collect the
necessary information in order to successful completion of my research.

I have collected previous Annual Reports of Sunflag Iron & Steel Co. Ltd.
Bhandara in order to study the objectives of my research. Some of them were audited
and some were unaudited.

The fund flow statement of the company shows how the Treasury Management of
a company manages the treasury of the company. It show deeply where and how much
funds are distributed for each of the operation carried out by the company. So I analysed
the Fund Flow Statement of Sunflag Iron & Steel Co. Ltd. Bhandara.

To find the actual market situation of the company, I studied the profit and loss
statement of the company.

I analysed the financial reports of the company which shows the actual Market
position of the company and how the company officials carried out the function od
treasury management.

Studying and researching the data available on the website of the company
allowed me to know about the company profile.

Company officials from Treasury Department helped me getting the right

information.
 Chapterisation :

Chapter 1 Introduction

Chapter 2 Literature Review

Chapter 3 Objectives

Chapter 4 Rationale and Significance

Chapter 5 Research Methodology

Chapter 6 Hypothesis

Chapter 7 Data Collection & Analysis

Chapter 8 Conclusion

Chapter 9 Suggestions

Chapter 10 Limitations

Chapter 11 Bibliography

Chapter 12 Annexure
 Bibliography :
1. Books

a) Treasury Risk Management by S.K. Bagchi

b) Treasury Management: The Practitioners Guide By Steven M. Bragg
c) Financial Management By I.M. Pandey
d) Financial Management By V.K. Bhalla

2. Articles

a) Article by Economic Times

b) Annual Report of Sunflag Iron & Steel Co. Ltd. Bhandara

3. Websites

a) www.google.co.in

b) www.sunflagsteel.com

c) www.economictimes.indiatimes.com

Name Of The Student Project Guide

Bhupendra Ramu Neware Dr. Prashant Manusmare

B.B.A.-III year H.O.D. , Department of B.B.A.

Financial Management