A

SYNOPSIS REPORT
ON
FINANCIAL MANAGEMENT
AT
KESORAM CEMENT LTD
Submitted
By
T DEVAKI
H.T.NO: 1302-20-672-126
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)
2020-2022
 Aurora’s PG College (MBA), Ramanthapur
Department of Management

SYNOPSIS

Title of the Project : FINANCIAL MANAGEMENT

Student Name : T DEVAKI

Hall Ticket Number : 1302-20-672-126

Signature of the Student :

Signature of the Guide :

 INDEX

S. No. CONTENTS Page No

1 INTRODUCTION

2 NEED FOR THE STUDY

3 OBJECTIVES OF THE STUDY

4 SCOPE OF THE STUDY

5 RESEARCH METHODOLOGY

6 REVIEW OF LITERATURE

7 PROPOSED OUTCOMES

8 LIMITATIONS OF THE STUDY

9 CHAPTERISATION

BIBLIOGRAPHY

ABSTRACT
Financial Management means planning, organizing, directing and controlling the financial
activities such as procurement and utilization of funds of the enterprise. It means applying
general management principles to financial resources of the enterprise. Finance is the lifeline
of any business. However, finances, like most other resources, are always limited. On the other
hand, wants are always unlimited. Therefore, it is important for a business to manage its finances
efficiently. As an introduction to financial management, in this article, we will look at the nature,
scope, and significance of financial management, along with financial decisions and planning.
Financial management refers to the efficient and effective management of money (funds) in
such a manner as to accomplish the objectives of the organization. It is the specialized
function directly associated with the top management. The significance of this function is not
seen in the 'Line' but also in the capacity of 'Staff' in overall of a company. Financial
management typically applies to an organization or company's financial strategy, while
personal finance or financial life management refers to an individual's management strategy.
It includes how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only
for long term budgeting, but also how to allocate the short term resources like current
liabilities. It also deals with the dividend policies of the share holders. The World of Finance
contains chapters on the structure and goals of firm, the role of financial managers, and an
examination of the financial environment. Special attention is given to how the Financial
Crisis affected nonfinancial companies, financial markets, and financial institutions. Essential
Concepts in Finance presents chapters on accounting statements and their interpretation,
forecasting, risk and return, the time value of money, and security valuation. Special attention
is given to systematic risk and its role in the Financial Crisis. Capital Budgeting and Business
Valuation contains chapters on measuring a firm’s cost of capital, capital budgeting decision
methods, incremental cash flow estimation, and business valuation. Long-Term Financing
Decisions contains chapters on capital structure basics, corporate bonds, preferred stock,
leasing, common stock, and dividend policy. The turmoil in the stock and bond markets
during the Financial Crisis is examined. Short-Term Financial Management Decisions
includes chapters on working capital policy, cash and marketable securities, accounts
receivable and inventory, and shortterm financing. Finance in a Global Economy is where
international finance topics are covered, in addition to those international topics that are
woven throughout the book. The contagion of the Financial Crisis around the world is
examined.
INTRODUCTION
In our present day economy, “FINANCE” is defined as the provision of money at the time
when it is required. Every enterprise, whether big, medium of small, needs finance to carry
on its operations and to achieve its targets.
Finance is so indispensable today that it is the lifeblood of an enterprise. Without adequate

finance, no enterprise can possibly accomplish its objectives.

“Finance” is the life blood and nerve system of any business organization. Just as circulation
of blood, is necessary in the human body to maintain life. Finance is necessary in the business
org. for smooth running of the business.
Financial management involves managerial activities concerned with the procurement and
utilization of funds for business purpose the finance function does with procurement of
money taking in to consideration of today’s as well as future need and its effective utilization.
Since finance is required to purchase of machinery and raw materials, to pay salaries and
wages also for day-to-day expenses.

Financial management entails planning for the future of a person or a business enterprise to
ensure a positive cash flow. It includes the administration and maintenance of financial
assets. Besides, financial management covers the process of identifying and managing risks.

The primary concern of financial management is the assessment rather than the techniques of
financial quantification. A financial manager looks at the available data to judge the
performance of enterprises. Managerial finance is an interdisciplinary approach that borrows
from both managerial accounting and corporate finance.

Some experts refer to financial management as the science of money management. The
primary usage of this term is in the world of financing business activities. However, financial
management is important at all levels of human existence because every entity needs to look
after its finances.

Financial Management: Levels

Broadly speaking, the process of financial management takes place at two levels. At the
individual level, financial management involves tailoring expenses according to the financial
resources of an individual. Individuals with surplus cash or access to funding invest their
money to make up for the impact of taxation and inflation. Else, they spend it on
discretionary items. They need to be able to take the financial decisions that are intended to
benefit them in the long run and help them achieve their financial goals.

From an organizational point of view, the process of financial management is associated with
financial planning and financial control. Financial planning seeks to quantify various
financial resources available and plan the size and timing of expenditures. Financial control
refers to monitoring cash flow. Inflow is the amount of money coming into a particular
company, while outflow is a record of the expenditure being made by the company.
Managing this movement of funds in relation to the budget is essential for a business.

At the corporate level, the main aim of the process of managing finances

Is to achieve the various goals a company sets at a given point of time. Businesses also seek
to generate substantial amounts of profits, following a particular set of financial processes.

Financial managers aim to boost the levels of resources at their disposal. Besides, they
control the functioning on money put in by external investors. Providing investors with
sufficient amount of returns on their investments is one of the goals that every company tries
to achieve. Efficient financial management ensures that this becomes possible.

SIGNIFICANCE OF THE STUDY

Analysis of financial Management can be undertaken by different persons and for different
purposes, therefore, the scope of the AFS may be varying from one situation to
another.
However, the following are some the techniques of the AFS:

a) Comparative financial Managements.

b) Common-size financial Managements.
c) Trend percentage analysis.
d) Statement of changes in financial position.
e) Cost-volume-profit relations, and
f) Ratio analysis and others.
 The last technique i.e. The ratio analysis is the most common, comprehensive and
powerful tool of the AFS. The importance of ratio analysis lies in the fact that
it presents facts on a comparative basis. As such, this study focuses only on this (ratio)
analysis.

NEED FOR STUDY

 Need of financial management study to diagnose the information contain in

financial Management. So as to judge the profitability and financial position of
the firm.

 Financial analyst analyses the financial Managements with various tools of

analysis before commanding upon the financial health of the firm.

 Essential to bring out the history.

 Significance and meaning of the financial Management.

OBJECTIVES OF THE STUDY:

The main objective of the project is to analyze that financial management of the company
using the financial statements vise, comparative and ratio analysis for this propose of
analysis. It has been utilized the secondary data of the company ( formerly KESORAM
CEMENT LTD) i.e., annual reports from 2017-2021 this will help in evaluating the

company’s liquidity conditions profitability long term solving and operational efficiency.

 To determine the financial management and weakness of the firm.

 To diagnose the information contained to financial management so as to judge the
profitability and fondness of the firm.

 To establish relationship between various figure or the income statement and balance

sheet.
RESEARCH METHODOLOGY
RESEARCH DESIGN

This is a systematic way to solve the research problem and it is important component
for the study without which researches may not be able to obtain the format. A research
design is the arrangement of conditions for collection and analysis of data in a manager that
aims to combine for collection and analysis of data relevance to the research purpose with
economy in procedure.
MEANING OF RESEARCH DESIGN

The formidable problem that follows the task of defining the research problem is the
preparation of design of the research project, popularly known as the research design,
decision regarding what, where, when, how much, by what means concerning an inquiry of a
research study constitute a research design. A research design is the arrangement of
conditions for collection and analysis of data in a manager that aims to combine for collection
and analysis of data relevance to the research purpose with economy in procedure.
SOURCES OF DATA
Data we collected based on two sources.
 Primary data.
 Secondary data.
Primary data
The Primary data are those information’s, which are collected afresh and for the first
time, and thus happen to be original in character.

Secondary Data:

The Secondary data are those which have already been collected by some other
agency and which have already been processed. The sources of Secondary data are Annual
Reports, browsing Internet, through magazines.

1. It includes data gathered from the annual reports of kesoram cement ltd.
2. Articles are collected from official website of kesoram cement ltd.
METHODOLOGY USED:

1. TYPES OF FINANCIAL MANAGEMENTS ADOPTED:

Following two types of financial Managements are adopted in analyzing the firm financial
position
a. BALANCE SHEET.
b. INCOME STATEMENTS.

2. TOOLS OF FINANCIAL MANAGEMENT ANALYSIS USED

The following financial analysis tools are used in order to interpret the financial
position of the firm.
 REVIEW OF LITERATURE

Financial Management is the process of managing the financial resources, including

accounting and financial reporting, budgeting, collecting accounts receivable, risk
management, and insurance for a business.

The financial management system for a small business includes both how you are financing it
as well as how you manage the money in the business.

In setting up a financial management system your first decision is whether you will manage
your financial records yourself or whether you will have someone else do it for you. There
are a number of alternative ways you can handle this. You can manage everything yourself;
hire an employee who manages it for you; keep your records in-house, but have an
accountant prepare specialized reporting such as tax returns; or have an external bookkeeping
service that manages financial transactions and an accountant that handles formal reporting
functions. Some accounting firms also handle bookkeeping functions. Software packages are
also available for handling bookkeeping and accounting.

Bookkeeping refers to the daily operation of an accounting system, recording routine

transactions within the appropriate accounts. An accounting system defines the process of
identifying, measuring, recording and communicating financial information about the
business. So, in a sense, the bookkeeping function is a subset of the accounting system. A
bookkeeper compiles the information that goes into the system. An accountant takes the data
and analyzes it in ways that give you useful information about your business. They can advise
you on the systems needed for your particular business and prepare accurate reports certified
by their credentials. While software packages are readily available to meet almost any
accounting need, having an accountant at least review your records can lend credibility to
your business, especially when dealing with lending institutions and government agencies.

Setting up an accounting system, collecting bills, paying employees, suppliers, and taxes
correctly and on time are all part of running a small business. And, unless accounting is your
small business, it is often the bane of the small business owner. Setting up a system that does
what you need with the minimum of maintenance can make running a small business not only
more pleasant, but it can save you from problems down the road.
The basis for every accounting system is a good Bookkeeping system. What is the difference
between that and an accounting system? Think of accounting as the big picture of how your
business runs -- income, expenses, assets, liabilities -- an organized system for keeping track
of how the money flows through your business, keeping track that it goes where it is
supposed to go. A good bookkeeping system keeps track of the nuts and bolts -- the actual
transactions that take place. The bookkeeping system provides the numbers for the
accounting system. Both accounting and bookkeeping can be contracted out to external firms
if you are not comfortable with managing them yourself.

Even if you outsource the accounting functions, however, you will need some type of
Recordkeeping Systems to manage the day-to-day operations of your business - in addition to
a financial plan and a budget to make certain you have thought through where you are headed
in your business finances. And, your accounting system should be producing Financial
Statements. Learning to read them is an important skill to acquire.

Another area that your financial management system needs to address is risk. Any good
system should minimize the risks in your business. Consider implementing some of these risk
management strategies in your business. Certainly, insurance needs to be considered not only
for your property, office, equipment, and employees, but also for loss of critical employees.
Even in businesses that have a well set up system, cash flow can be a problem. There are
some tried and true methods for Managing Cash Shortages that can help prevent cash flow
problems and deal with them if they come up. In the worst case you may have difficulties
meeting all you debt obligations. Take a look at Financial Difficulties to learn more about
ways to manage situations in which you have more debt than income.

It is possible you may even be at the a point where you want to sell the business or simply
close it and liquidate assets. There are financial issues involved for these circumstances too.
So, be certain that you know what steps you need to take in order to protect yourself
financially in the the long run.

Clearly, financial management encompasses a number of crucial areas of your business. Take
time to set them up right. It will make a significant difference in your stress levels and in the
bottom line for your business.
2.2 ARTICLES
ARTICLE 1
1. TITLE : Efficiently Inefficient Markets for Assets and Financial management
AUTHOR :NicolaeGârleanu, &LasseHeje Pedersen
JOURNAL : The Journalof Finance
YEAR : 2018
ABSTRACT : It consider a model where investors can invest directly or search for an asset
manager, information about assets is costly, and manager’s charge an endogenous fee. The
efficiency of asset prices is linked to the efficiency of the financial management market: if
investors can find managers more easily, more money is allocated to active management, fees
are lower, and asset prices are more efficient. Informed managers outperform after fees,
uninformed managers underperform, while the average manager's performance depends on
the number of “noise allocators.” Small investors should remain uninformed, but large and
sophisticated investors benefit from searching for informed active managers since their
search cost is low relative to capital. Hence, managers with larger and more sophisticated
investors are expected to outperformer.
ARTICLE 2
TITLE: Financial management Within Commercial Banking Groups: International Evidence.
AUTHOR : Pedro piers, Pedro Matos, Miguel A. Ferreira
JOURNAL : The Journalof Finance
YEAR : 2018
ABSTRACT : Fixed assets, also known as "tangible assets “or Property, Plant, And
Equipment (PP&E), is a term used in accounting for assets and property that cannot easily be
converted into cash. This can be compared with current assets such as cash or bank accounts,
which are described as liquid assets. In most cases, only tangible assets are referred to as
fixed. IAS 16 (International Accounting Standard) defines Fixed Assets as assets whose
future economic benefit is probable to flow into the entity, whose cost can be measured
reliably. Moreover, a fixed/non-current asset can also be defined as an asset not directly sold
to a firm's consumers/end-users. Its non-current assets would be the oven used to bake bread,
motor vehicles used to transport deliveries, cash registers used to handle cash payments, etc.
While these non-current assets have value, they are not directly sold to consumers and cannot
be easily converted to cash.
ARTICLE 3

TITLE : A Comparatives Study on Financial management ofIndian

Media Entertainment Companies
AUTHOR :VivekSharma, &Prerna Sharma.
JOURNAL :International Journal of Management Prudence
YEAR : 2014
ABSTRACT:This paper is an attempt to analyse and examine the management of fixed asset
in case three Indian media & entertainment companies. The procurement and management of
fixed assets can be said to be a reflector of the managerial as we as financial capabilities of
any business. Adequacyof depreciation and proportion of fixed asset in total asset pool is also
been a keen question to be answered. Test of significance of correlation has been used in the
study to check the accuracy of the assumptions drawn.
ARTICLE4

TITLE : The Design and Implement of Management System for Power Fixed
Asset Based on Activity
AUTHOR : Renle Huang
YEAR : 2015
ABSTRACT: The paper firstly introduces work for technology and activity work flow frame
work, through the description of the financial management in the power industry, the system
is wholly designed. Component based principle, object oriented development mode on the
Three-tier architecture in java EE (Java Enterprise Edition) were used in the system. For the
complexity in the financial management of electric power industry, the system strives to a
comprehensive and detailed, simple and convenient operation.
ARTICLE-5

TITLE : Evaluation of the Effect of Non-Current Fixed Asset on Profitability

Financial management Efficiency
AUTHOR : Alexandra v. Lubyanaya
JOURNAL :International Journal of Environmental and Science Education,
YEAR: 2016
ABSTRACT:The purpose of the article is to investigate the problem, which stems from non-
current fixed asset affecting profitability and financial management efficiency. Tangible
assets, intangible asset and financial assets are all included in non-current fixed assets. The
aim of the research is to identify the impact of estimate and valuation in accounting.
LIMITATIONS:

1. ONLY INTERIM REPORTS:

Only interim statements don’t give a final picture of the concern. The data given in
these statements is only approximate. The actual position can only be determined when the
business is sold or liquidated.
2. DON’T GIVE EXTRA POSITION:
The financial Managements are expressed in monetary values, so they appear to give
final and accurate position. The values of fixed assets in the balance sheet neither represent
the value for which fixed assets can be sold nor the amount which will be required to replace
these assets.
3. HISTORICAL COSTS:
The financial Managements are prepared on the basis of historical costs or original
costs. The value of assets decreases with the passage of time current price changes are not
taken into account. The statements are not prepared keeping in view the present economic
conditions. The balance sheet loses the significance of being an index of current economic
realities.
 PROPOSED OUT COMES

THE COMPARATIVE STATEMENT MAY SHOW:-

1. Absolute figures(rupee amounts)

2. Changes in absolute figures i.e increase or decrease in absolute figures.
3. Absolute data in terms of percentages.
4. Increase or decrease in terms of percentages.

THE TWO COMPARATIVE STATEMENTS ARE:-

1. Comparative balance sheet, and
2. Income statement.
 CHAPTERISATION

CHAPTER -1 - INTRODUCTION

CHAPTER - 2 REVIEW OF LITERATURE

CHAPTER - 3 - INDUSTRY PROFILE & COMPANY PROFILE

CHAPTER - 4 - DATA ANALYSIS AND INTERPRETATION

CHAPTER - 5 – SUMMARY AND CONCLUSION

 BIBLIOGRAPHY

BOOKS:

1. Khan, M Y and P K Jain, Financial Management, Tata McGraw-Hil

Publishing Co., New Delhi, 2007.
2. I M Pandey, Essentials of Financial Management, Vikas Publishing House Pvt Ltd,
New Delhi, 1995.
3. Ramesh, S and A Gupta, Venture Capital and the Indian Financial Sector, Oxford
university press, New Delhi, 1995.
4. Anthony, RN and JS Reece, Management Accounting Principles, Taraporewala,
Bombay.
JOURNAL
1. Sharma, V. and Sharma, P., 2014. A Comparative Study on Fixed Assets
Management of Indian Media & Entertainment Companies. International Journal
of Management Prudence, 6(1).
2. Matemilola, B.T. and Ahmad, R., 2015. Debt financing and importance of
fixed assets and goodwill assets as collateral: dynamic panel evidence. Journal of
Business economics and Management, 16(2), pp.407-421.
3. Bharti, P., 2018. Indian Financial System, 5/e. Pearson Education
India.Chadha, S. and Sharma, A.K., 2015. Determinants of capital structure: an
empirical evaluation from India. Journal of Advances in Management Research,
12(1), pp.3-14

WEBSITE
1. https://www.google.com/search?q=https:www.tatamotors.com+financial management
2. http://macoinfotech.com/asset-management-system/?gclid
3. https://selecthub.com/cmms/eam/financial management -software-features-benefits-
vendors/
4. https://en.wikipedia.org/wiki/Financial management