A

RESEARCH REPORT
ON
“Working Capital Management of Brilliant Insurance”
Submitted in partial fulfillment for the award for degree of

MASTER OF BUSINESS ADMINISTRATION

2020-2021
From
Dr. APJ ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW

SUBMITTED BY SUBMITTED TO
DAKSHITA PATHAK Ms. Kritika Srivastava
M.B.A. ( 4th SEM) ( Assit. Profe.-KIPM-College of Management)
ROLL NO. – 1851770016

KIPM- COLLEGE OF MANAGEMENT,

Sector-9, GIDA GORAKHPUR (UP)
 DECLARATION

I, Dakshita Pathak student of MBA 4thsemester declare that the

project entitled “Working Capital Management of Brilliant Insurance”
is my own work conducted under the supervision of,
Ms.Kritika Srivastava

I further declare that to the best of my knowledge the project does not
contain any part of any work which has been submitted for any other
project either in this institute or in any other.

Place :

Date:………………………….. Signature of the Candidate

 ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various persons who have

shared their valuable time and made this project possible through their direct and

indirect cooperation.

I would like to acknowledge with great pleasure, my deep sense of gratitude to my

supervisor, Ms.Kritika Srivastava Dr. Deepak Srivastava (Director) at
KIPM- College of Management, GIDA, Gorakhpur, for his supervision and valuable
guidance.
I am highly thankful to my parents for motivation and support throughout the period of my
study in the institute.

Dakshita Pathak

MBA (IVth Sem.)

KIPM COLLEGE OF MANAGEMET

GIDA
 Table of Content

Sr.No Content Page No.

1. Executive Summary 1
2. Introduction 16
3. Review Of Literature 41
4. Objective Of The Study 44
5. Scope Of The Study 46
6. Company Profile 48
7. Research Methodology 68
8. Findings 69

9. Conclusion 71

10. Suggestion And Recommendation 75

11. Limitation 77

12. Bibliography 79
Executive Summary

1
 Executive Summary
Life insurance in India made its debut well over 100 years ago. In our country,

which is one of the most populated in the world, the prominence of Insurance is

not as widely understood, as it ought to be. What follows is an attempt to acquaint

readers with some of the concepts of life insurance, with special reference to

Brilliant Insurance Broking. It should, however, be clearly understood that the

following content is by nomeans an exhaustive description of the terms and

conditions of an BRILLIANT INSURANCE BROKINGBrilliant Insurance

Broking orIts benefits or privileges.For more details, please contact our branch or

divisional office. Any Brilliant Insurance Broking Agentwill be glad to help you

choose the life insurance plan to meet your needs andrender Brilliant Insurance

Broking servicing.

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person

assured (or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

 The date of maturity, or

 Specified dates at periodic intervals, or

 Unfortunate death, if it occurs earlier.

2
Among other things, the contract also provides for the payment of premium

periodically to the Corporation by the Brilliant Insurance Broking holder. Life

insurance is universally acknowledged to be an institution, which eliminates 'risk',

substituting certainty for uncertainty and comes to the timely aid of the family in

the unfortunate event of death of the breadwinner. By and large, life insurance is

civilization‘s partial solution to the problems caused by death. Life insurance, in

short, is concerned with two hazards that stand across the life-path of every person:

1. That of dying prematurely leaving a dependent family to fend for itself.

2. That of living till old age without visible means of support.

The Indian insurance industry is up for grabs. Once the domain of the public

sector, the much coveted market is being thrown open to private enterprise. A few

private insurance companies have already launched their operations while some

more are preparing themselves to start soon. The private parties are bringing with

them international experience, new technology, new channels of distribution

besides of course new products. Even the existing public sector players are gearing

up with matching strategies to face tougher competition. A strong insurance sector

is the key 1 University of Delhi, Kirori Mal College, Delhi, India, e-mail:

pushpenderksurya@gmail.com Journal of Doctoral Studies. Accounting, Vol 1, No

1-2, 2011, 65-82 66 to well being of the economy. Insurance deals with a very

3
basic human need – the need for security. Insurance helps to smoothen out the

economic impact of sudden external shocks for households and enterprise. In that

sense, it is the very core of economic activity. Additionally, there are many

benefits of products of insurance, the most notable being mobilization of long-term

savings. Also insurance, being a manpower intensive business, generates a lot of

employment. A common man‘s view of insurance in most developing countries

including our own, is that it entails regular premium payment for the policies taken

as insurance against premature death, fire, accident, natural calamities,

financial/property losses during riots, due to theft or burglary, hospitalization etc.

Insurance premiums are often taken to be a given cost which cushion against

uncertainties. Insurance, however, need not be confined into such a narrow view.

Not only that the services can be extended to cover other non-financial sectors but

also a number of volatile financial risks. The Indian insurance industry which until

now was a controlled sector, with only one player for the last five decades, has

suddenly turned itself into a battleground. Though the sector remained in the strong

clutches of the government enterprises, the growth has been slow. The industry is

characterized by a number of players, both domestic and international, competing

for the huge untapped market. Indian insurance is ranked 51 in the world with a

low insurance penetration of 1.95 percent and less than 5 percent being spent on

insurance out of the available 22 percent savings. This low penetration and huge

4
growth potential has already attracted many multinational insurance giants like

Allianz, royal insurance, etc. The customers are now looking at insurance as an

area with complete financial solutions – stable returns coupled with total

protection. The new millennium has exposed the insurance sector to new

challenges of competition and struggle for survival. The era of privatization,

liberalization, deregulation, and globalization has let lose a sense of urgency and

neo-activism. Indian politico-economic think tank has realized the obsolescence of

remaining insular and monopolistic policies in the insurance sector. Prior to

liberalization the regulatory environment was primarily based on consolidated

provisions of the Insurance Act 1938. The controller of insurance had wide ranging

powers, which included directing, cautioning, advising, prohibiting, inspecting,

investigation, searching, seizing, prosecuting, and penalizing, authorizing,

registering, amalgamating and liquidating insurance companies.

Introduction To be competent and effectual in today's business environment and

market place, organizations have to develop strategies, policies and practices that

should be different from those used in the past; this is because of the frequent

changes in the business environment and the near unpredictable nature of the

environment. However, this environment presents opportunities and threats which

can be exploited or managed by prepared and forward looking organizations by

crafting well-thought out strategies, policies and approaches. One of such

5
strategies for a product like life insurance and general insurance will be the

perceived quality of the product offered in the eyes of the customers. The

insurance industry in India consists of companies that are small by most standards

to underwrite most policies and characterized by low penetration and patronage

compared to its population. The insurance density of life insurance sector had gone

up from USD 9.1bn in 2001 to USD 55.7bn in 2010. Similarly, insurance

penetration had gone up from 2.15 per cent in 2001 to 4.60 in 2009, before slipping

to 4.40 per cent in 2010 in life insurance business, India ranked 9th among the 156

countries, for which data are published by Swiss Re. During 2010-11, the

estimated life insurance premium in India grew by 4.2 per cent (inflation adjusted).

However, during the same period, the global life insurance premium expanded by

3.2 per cent. The share of Indian life insurance sector in global market was 2.69

per cent during 2010, as against 2.45 per cent in 2009. The non-life insurance

sector witnessed significant growth of 8.1 per cent during 2010. Its performance is

far better when compared to global non-life premium, which expanded by 2.1

percent during the same period. The share of Indian non-life insurance premium in

global non-life insurance premium increased slightly to 0.58 percent, thereby

GALAXY International Interdisciplinary Research Journal_ ISSN 2347-6915

GIIRJ, Vol.2 (3), MARCH (2014) 189 improvising its global ranking to 19th in

comparison to 26th in last year. The insurance density of life insurance sector had

6
gone up from USD 9.1bn in 2001 to USD 55.7bn in 2010. Similarly, insurance

penetration had gone up from 2.15 per cent in 2001 to 4.60 in 2009, before slipping

to 4.40 per cent in 2010. The number of insurance companies stood at 48 at the end

of 2010-11, consisting of 23 life insurers, 24non-life insurers and a reinsurer.

Edelweiss Tokio Life Insurance Company was granted registration in the

year2011-12, leading to total number of insurance companies increasing to 49 as at

end-September 2011. (Directories Today Report) In recent years, insurance

customers in India are increasingly aware of their expectations and standards of

services required from their insurance companies. This is partly due to the fact that

customers are more educated and knowledgeable about services provided by

insurance companies. Therefore it is becoming desirable and important for

insurance companies to come up with approach that will give customer a central

role for future growth and survival. In the same vein, insurance companies in India

have also recognized the fact that service quality is imperative to achieve

competitive advantage while poor quality brings about competitive disadvantage.

Siddique& Sharma (2010) observed that quality insurance services help to

differentiate one from others who are also offering identical services; also it offers

a way of achieving success among competitors. Therefore, this study aims at

evaluating the quality of insurance services in India using customers' assessment,

so as to come out with effective strategies that will offer best value to the

7
customers, profitability to the insurance companies; and overall boost the demand

for insurance in India.

OVERVIEW

Customer are very much Satisfied With Brilliant Insurance Broking Service

Because The Brilliant Insurance Broking Totally Concentrate Customer Relations

And It Makes Customers Attract Towards The Brilliant Insurance Broking

Brilliant insurance broking moves towards better customer relations.

Brilliant Insurance Broking Services Private Limited is an unlisted private

company. It was incorporated on 19 June, 2009 and is located in Hyderabad,

Telangana. It is classified as a private limited company.The company has three

directors - SriramaPeri Chandra Murty, VuppalaDeepika Reddy, and others.

Brilliant Insurance Broking Services's operating revenues range is Under INR 1

cr for the financial year ending on 31 March, 2016. It's EBITDA has decreased

by -195.29 % over the previous year. At the same time, it's book networth has

increased by 28.97 %. Other performance and liquidity ratios are available here.

8
The registered office of the company is at H.No.6-3-1099/1/8,Flat No.601,Aditya

Land mark Apt Hotel Park Lane Road,Somajiguda, Hyderabad, Hyderabad,

Telangana.

The total paid-up capital is INR 65.00 lac. The last reported AGM (Annual General

Meeting) of the company, per our records, was held on 21 June, 2018. Also, as per

our records, its last balance sheet was prepared for the period ending on 31 March,

2018.

REGISTERED DETAILS

CIN

U93090TG2009PTC064069

INCORPORATION DATE / AGE

19 June, 2009 / 10 yrs

LAST REPORTED AGM DATE

21 June, 2018

AUTHORIZED CAPITAL

INR 65.0 Lacs

9
PAIDUP CAPITAL

INR 65.0 Lacs

INDUSTRY*

Other service activites

TYPE

Unlisted Private Company

CATEGORY

Company limited by Shares

SUBCATEGORY

Non-govt company

REGISTERED ADDRESS

H.No.6-3-1099/1/8,Flat No.601,Aditya Land mark Apt

Hotel Park Lane Road,Somajiguda

HyderabadHyderabad - 500082

Telangana– India

10
 FINANCIAL HIGHLIGHTS

Provided here are the financial indicators for financial year ending on 31 March,

2016. Actual numbers and more financial data, updated until 31 March, 2018* are

included in purchased financial report.

Operating Revenue Under INR 1 cr

EBITDA -195.29 %

Networth 28.97 %

Debt/Equity Ratio 0.01

Return on Equity -9.60 %

* Company has reported to have approved financials for 31 March, 2018.

However, in case, they are not yet filed with MCA, then last filed financials shall

be provided instead.
11
 DIRECTORS

The company has 3 directors and no reported key management personnel.

The longest serving director currently on board is SriramaPeri Chandra Murty who

was appointed on 19 June, 2009. SriramaPeri Chandra Murty has been on the

board for more than 10 years. The most recently appointed directors are

VuppalaDeepika Reddy and Sudeep Kumar Pellakuru, who were appointed on 31

May, 2018.

SriramaPeri Chandra Murty has the largest number of other directorships with a

seat at a total of 1 companies. In total, the company is connected to 0 other

companies through its directors.

Plans to start a new portal for its Brilliant Insurance Broking holders

Brilliant Insurance Broking (BRILLIANT INSURANCE BROKING) is embarking

on a number of customer relationship management initiatives to retain its foothold

in the market, in the wake of private players inching their way up in the life

insurance sector.

12
The Insurance behemoth is planning to tie-up with a number of banks to enable a

payment gateway wherein the Brilliant Insurance Broking holders can make their

premium payments via credit cards.

BRILLIANT INSURANCE BROKING is planning to start a new portal for its

Brilliant Insurance Broking holders where a customer can log in, get details on

his/her Brilliant Insurance Broking, change the resident address when he/she shifts

to a new place and even take a printout of the income tax certificate. The portal is

likely to be ready in a month‘s time.

Besides, it has already started work on allotment of customer folio number to know

each customer's holding.

―The allotment of customer folio number for all our holders will still take a year‘s

time in this zone,‖ H Nanda, regional manager, information technology,

13
BRILLIANT INSURANCE BROKING (south-central zone), said.

―The electronic clearance system that we have launched at Hyderabad, Bangalore,

Vijayawada and Visakhapatnam, has been doing very well. Here the customer‘s

premium is automatically debited from his account at the time of payment,‖ he

added. Shortly, the zone will also see the launch of this system in Mysore,

Mangalore and Hubli.

―This month, we will also be setting up five satellite branches in the zone, with two

being in Hyderabad and three in Bangalore,‖ A K Sahoo, regional manager

(marketing), BRILLIANT INSURANCE BROKING (south-central zone), said at a

press conference organized on the occasion of the beginning of the golden jubilee

year for BRILLIANT INSURANCE BROKING.

Regarding the recently launched Bima Gold Brilliant Insurance Broking, a money-

back Brilliant Insurance Broking with premium payment options, the corporation

plans to sell 15 lakh Brilliant Insurance Broking this year in the south central zone

with the national figure being one crore.

14
BRILLIANT INSURANCE BROKING also plans to launch three-four products

this year with one of these being unit-linked insurance plan in October. As on

August 31, 2005, the zone has issued 12,47,795Brilliant Insurance Broking under

new business.

15
Introduction

16
 Introduction

Working capital (abbreviated WC) is a financial metric which represents operating

liquidity available to a business, organization or other entity, including
governmental entities. Along with fixed assets such as plant and equipment,
working capital is considered a part of operating capital.

Gross working capital is equal to current assets. Working capital is calculated as

current assets minus current liabilities. If current assets are less than current
liabilities, an entity has a working capital deficiency, also called a working capital
deficit.

A company can be endowed with assets and profitability but may fall short of
liquidity if its assets cannot be readily converted into cash. Positive working capital
is required to ensure that a firm is able to continue its operations and that it has
sufficient funds to satisfy both maturing short-term debt and upcoming operational
expenses. The management of working capital involves managing inventories,
accounts receivable and payable, and cash.

17
 Definition

Working capital is computed as the sum of: Inventories (+) Trade receivable (+)
Cash (-) Trade payables. Working capital cycle (WCC), also known as cash
conversion cycle, is the amount of time it takes to turn the net current assets and
current liabilities into cash. The longer the cycle is, the longer a business is tying
up capital in its working capital without earning a return on it.

Therefore, companies strive to reduce their working capital cycle by collecting

receivables quicker or sometimes stretching accounts payable. Under certain
conditions, minimizing working capital might adversely affect the companies'
ability to realize profitability, e.g. when unforeseen hikes in demand exceed
inventories, or when a shortfall in cash restricts the company‘s ability to acquire
trade or production inputs.

Working capital cycle

A positive working capital cycle balances incoming and outgoing payments to

minimize net working capital and maximize free cash flow. For example, a
company that pays its suppliers in 30 days but takes 60 days to collect its
receivables has a working capital cycle of 30 days. This 30-day cycle usually needs
to be funded through a bank operating line, and the interest on this financing is a
carrying cost that reduces the company's profitability. Growing businesses require
cash, and being able to free up cash by shortening the working capital cycle is the
most inexpensive way to grow. Sophisticated buyers review closely a target's
working capital cycle because it provides them with an idea of the management's
effectiveness at managing their balance sheet and generating free cash flows.

18
As an absolute rule of funders, each of them wants to see a positive working
capital. Such situation gives them the possibility to think that your company has
more than enough current assets to cover financial obligations. Though, the same
can‘t be said about the negative working capital.

A large number of funders believe that businesses can‘t be sustainable with a

negative working capital, which is a wrong way of thinking. In order to run a
sustainable business with a negative working capital, it‘s essential to understand
some key components.

1. Approach your suppliers and persuade them to let you purchase the inventory on
1-2 month credit terms, but keep in mind that you must sell the purchased goods, to
consumers, for money. 2. Effectively monitor your inventory management, make
sure that it‘s often refilled and with the help of your supplier, back up your
warehouse.

Plus, big companies like McDonald‘s, Amazon, Dell, General Electric and Wal-
Mart are using negative working capital.

19
 Working capital management

Decisions relating to working capital and short-term financing are referred to as

working capital management. These involve managing the relationship between a
firm's short-term assets and its short-term liabilities. The goal of working capital
management is to ensure that the firm is able to continue its operations and that it
has sufficient cash flow to satisfy both maturing short-term debt and upcoming
operational expenses.

A managerial accounting strategy focusing on maintaining efficient levels of both

components of working capital, current assets, and current liabilities, in respect to
each other. Working capital management ensures a company has sufficient cash
flow in order to meet its short-term debt obligations and operating expenses.

20
 Management of working capital

Guided by the above criteria, management will use a combination of policies and
techniques for the management of working capital. The policies aim at managing
the current assets (generally cash and cash equivalents, inventories and debtors)
and the short-term financing, such that cash flows and returns are acceptable.

Cash management. Identify the cash balance which allows for the business to meet
day to day expenses, but reduces cash holding costs.

Inventory management. Identify the level of inventory which allows for

uninterrupted production but reduces the investment in raw materials—and
minimizes reordering costs—and hence increases cash flow. Besides this, the lead
times in production should be lowered to reduce Work in Process (WIP) and
similarly, the Finished Goods should be kept on as low level as possible to avoid
overproduction—see Supply chain management; Just In Time (JIT); Economic
order quantity (EOQ); Economic quantity

Debtor‘s management. Identify the appropriate credit policy, i.e. credit terms
which will attract customers, such that any impact on cash flows and the cash
conversion cycle will be offset by increased revenue and hence Return on Capital
(or vice versa); see Discounts and allowances.

Short-term financing. Identify the appropriate source of financing, given the cash
conversion cycle: the inventory is ideally financed by credit granted by the
supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to
"convert debtors to cash" through "factoring". Insurenceis "property consisting of
land and the buildings on it, along with its natural resources such as crops,
minerals or water; immovable property of this nature; an interest vested in this
(also) an item of real property, (more generally) buildings or housing in general.
21
Also: the business of Insurance ; the profession of buying, selling, or renting land,
buildings or housing."It is a legal term used in jurisdictions whose legal system is
derived from English common law, such as India , United Kingdom , United
States, Canada ,Pakistan, Australia , and New Zealand.

Residential Insurencemay contain either a single family or multifamily structure,

that is available for occupation or for non-business purposes. Residences can be
classified by, if, and how they are connected to neighboring residences and land.
Different types of housing tenure can be used for the same physical type. For
example, connected residents might be owned by a single entity and leased out, or
owned separately with an agreement covering the relationship between units and
common areas and concerns.

22
 WORKING CAPITAL - Meaning of Working Capital

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 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 of firm‘s 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 day – to-

day expenses etc.

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

refers to that part of the firm‘s capital which is required for financing short- term or

current assets such as cash, marketable securities, debtors & inventories. Funds, thus,

invested in current assts keep revolving fast and are being constantly converted in to

cash and this cash flows out again in exchange for other current assets. Hence, it is

also known as revolving or circulating capital or short term capital.

CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1. Gross working capital

23
2. Net working capital

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

enterprises current assets are those

Assets which can convert in to cash within a short period normally one accounting

year.

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

b. Work in process

c. Stores and spares

d. Finished goods

6. Temporary investment of surplus funds.

7. Prepaid expenses

8. Accrued incomes.

9. Marketable securities.

24
In a narrow sense, the term working capital refers to the net working. Net working

capital is the excess of current assets over current liability, or, say:

NET WORKING CAPITAL = CURRENT ASSETS – CURRENT LIABILITIES.

Net working capital can be positive or negative. When the current assets exceeds the

current liabilities are more than the current assets. Current liabilities are those

liabilities, which are intended to be paid in the ordinary course of business within a

short period of normally one accounting year out of the current assts or the income

business.

CONSTITUENTS OF CURRENT LIABILITIES

1. Accrued or outstanding expenses.

2. Short term loans, advances and deposits.

3. Dividends payable.

4. Bank overdraft.

5. Provision for taxation , if it does not amt. to app. Of profit.

6. Bills payable.

7. Sundry creditors.

The gross working capital concept is financial or going concern concept whereas net

working capital is an accounting concept of working capital. Both the concepts have

their own merits.

The gross concept is sometimes preferred to the concept of working capital for the

following reasons:
25
 1. It enables the enterprise to provide correct amount of working capital at

correct time.

2. Every management is more interested in total current assets with which it

has to operate then the source from where it is made available.

3. It take into consideration of the fact every increase in the funds of the

enterprise would increase its working capital.

This concept is also useful in determining the rate of return on investments in

working capital. The net working capital concept, however, is also important for

following reasons:

 It is qualitative concept, which indicates the firm‘s ability to meet to

its operating expenses and short-term liabilities.

 IT indicates the margin of protection available to the short term

creditors.

 It is an indicator of the financial soundness of enterprises.

 It suggests the need of financing a part of working capital

requirement out of the permanent sources of funds.

26
CLASSIFICATION OF WORKING CAPITAL

Working capital may be classified in to ways:

o On the basis of concept.

o On 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:

 Permanent or fixed working capital.

 Temporary or variable working capital

PERMANENT OR FIXED WORKING CAPITAL

Permanent or fixed working capital is 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 assts 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.

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 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

27
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 sense that is

required for short periods and cannot be permanently employed gainfully in the

business.

IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING CAPITAL

SOLVENCY OF THE BUSINESS:
I. Adequate working capital helps in maintaining the solvency of the business by

providing uninterrupted of production.

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

payments and makes and maintain the goodwill.

III. Easy loans: Adequate working capital leads to high solvency and credit

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

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

discounts on the purchases and hence reduces cost.

V. Regular Supply of Raw Material: Sufficient working capital ensures regular

supply of raw material and continuous production.

VI. Regular Payment Of Salaries, Wages And Other Day TO Day Commitments: It

leads to the satisfaction of the employees and raises the morale of its

employees, increases their efficiency, reduces wastage and costs and enhances

production and profits.

28
VII. Exploitation Of Favorable Market Conditions: 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.

VIII. Ability To Face Crises: A concern can face the situation during the depression.

IX. 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.

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

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

EXCESS OR INADEQUATE WORKING CAPITAL

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.

DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKING CAPITAL

I. 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.

29
 II. Redundant working capital leads to unnecessary purchasing and

accumulation of inventories.

III. Excessive working capital implies excessive debtors and defective

credit policy which causes higher incidence of bad debts.

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

V. If a firm is having excessive working capital then the relations with

banks and other financial institution may not be maintained.

VI. Due to lower rate of return n investments, the values of shares may

also fall.

VII. The redundant working capital gives rise to speculative transactions

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.

30
Thus working capital is needed for the following purposes:

1. For the purpose of raw material, components and spares.

2. To pay wages and salaries.

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

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

5. To provide credit facilities to the customer.

6. 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.

31
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 firms requires less investment in fixed assets but have

to invest large amt. 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. LENTH OF PRDUCTION CYCLE: The longer the manufacturing

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

32
 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

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

wuill needs lower amt. 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 amt. of working

capital and vice-versa.

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

there is need for larger amt. 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 amt. of working

capital.

33
10. RATE OF GROWTH OF BUSINESS: In faster growing concern, we shall

require large amt. of working capital.

11. EARNING CAPACITY AND DIVIDEND POLICY: Some firms have

more earning capacity than other due to quality of their products, monopoly

conditions, etc. Such firms may generate cash profits from operations and

contribute to their working capital. The dividend policy also affects the

requirement of working capital. A firm maintaining a steady high rate of

cash dividend irrespective of its profits needs working capital than the firm

that retains larger part of its profits and does not pay so high rate of cash

dividend.

12. PRICE LEVEL CHANGES: Changes in the price level also affect the

working capital requirements. Generally rise in prices leads to increase in

working capital.

Others FACTORS: These are:

 Operating efficiency.

 Management ability.

 Irregularities of supply.

 Import policy.

 Asset structure.

 Importance of labor.

 Banking facilities, etc.

34
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 on its probability, liquidity and structural health of the

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

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.

35
 WORKING CAPITAL ANALYSIS

As we know working capital is the life blood and the centre 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.

1. RATIO ANALYSIS

A ratio is a simple arithmetical expression 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:

36
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

9. Ratio of current liabilities to tangible net worth.

2. FUND FLOW ANALYSIS

Fund flow analysis is a technical device designated to the 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 funds.

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.

37
 4. 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 budge ting 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. He

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.

ANALYSIS OF SHORT – TERM FINANCIAL POSITION OR TEST OF

LIQUIDITY
The short –term creditors of a company such as suppliers of goods of credit

and commercial banks short-term loans are primarily interested to know the

ability of a firm to meet its obligations in time. The short term obligations of a

firm can be met in time only when it is having sufficient liquid assets. So to

with the confidence of investors, creditors, the smooth functioning of the firm

and the efficient use of fixed assets the liquid position of the firm must be

strong. But a very high degree of liquidity of the firm being tied – up in

38
current assets. Therefore, it is important proper balance in regard to the

liquidity of the firm. Two types of ratios can be calculated for measuring

short-term financial position or short-term solvency position of the firm.

1. Liquidity ratios.

2. Current assets movements ‗ratios.

A) LIQUIDITY RATIOS

Liquidity refers to the ability of a firm to meet its current obligations as and

when these become due. The short-term obligations are met by realizing

amounts from current, floating or circulating assts. The current assets should

either be liquid or near about liquidity. These should be convertible in cash

for paying obligations of short-term nature. The sufficiency or insufficiency

of current assets should be assessed by comparing them with short-term

liabilities. If current assets can pay off the current liabilities then the liquidity

position is satisfactory. On the other hand, if the current liabilities cannot be

met out of the current assets then the liquidity position is bad. To measure the

liquidity of a firm, the following ratios can be calculated:

1. CURRENT RATIO
2. QUICK RATIO
3. ABSOLUTE LIQUID RATIO

39
 1. CURRENT RATIO
Current Ratio, also known as working capital ratio is a measure of general

liquidity and its most widely used to make the analysis of short-term financial

position or liquidity of a firm. It is defined as the relation between current

assets and current liabilities. Thus,

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITES
The two components of this ratio are:

1) CURRENT ASSETS

2) CURRENT LIABILITES

Current assets include cash, marketable securities, bill receivables, sundry

debtors, inventories and work-in-progresses. Current liabilities include

outstanding expenses, bill payable, dividend payable etc.

A relatively high current ratio is an indication that the firm is liquid and has

the ability to pay its current obligations in time. On the hand a low current

ratio represents that the liquidity position of the firm is not good and the firm

shall not be able to pay its current liabilities in time. A ratio equal or near to

the rule of thumb of 2:1 i.e. current assets double the current liabilities is

considered to be satisfactory.

40
Review of Literature

41
 Review of Literature

Working capital management is the key area of financial management and plays an

important role in any industry. A number of researchers have conducted research

on the subject and its various components. This Chapter is an overview of the

research that has been carried out on the subject. Some of the most relevant articles

have been reviewed here as a part of my research work. As the title of the thesis

broadly deals with working capital management of the selected pharmaceutical

units of Gujarat, the need arises to carry out literature review under two major

headings:

1 Working Capital Management

2 Components of Working Capital

Literature review is indispensable part of a thesis because it represents the whole

range of research in the past on the topic selected by the researcher on the basis of

which research design of a study is formulated. Literature review gives better

insight and helps bridge gap for the research to be undertaken. Efforts have been

made to present a common scheme of various facets and issues relating to this

empirical studies carried out in past at the national and international stage in

different companies. Some important conclusions and research gap have been

drawn from the review of some research papers, articles, theses and textbooks

42
available in the accessible libraries and internet sources. Different researchers have

done studies in the field of management of working capital.

43
Objective of the Study

44
 Objective of the Study

The following objectives of financial statements: -

1. To provide reliable financial information about economic resources

and obligation of a business firm.

2. To provide other needed information about charges in such economic

resources and obligation.

3. To provide reliable information about change in net resources

(recourses less obligations) missing out of business activities.

4. To provide financial information that assets in estimating the learning

potential of the business.

45
Scope of the Study

46
 Scope of the Study

Working capital management is a topic that has been well-known in science as

well as in business practice for a long time. At the same time, its presence in the

literature is still comparatively low, concentrating on the analysis of the link

between WCM and company‘s performance with the help of publicly available

data and key ratios from the annual financial statements. Especially, in view of the

growing volatility and uncertainties in the credit and financial markets that have

been observed for a number of years and the corresponding increase in regulatory

capital in the area of external capital raising, the company's focus increasingly

shifts to internal liquidity generation from the operating business on the structure

of working capital.

47
Company Profile

48
 Company Profile

BRILLIANT INSURANCE BROKING

Brilliant Insurance Broking Services Private Limited is a Private incorporated on

19 June 2009. It is classified as Non-govtcompany and is registered at Registrar of

Companies, Hyderabad. Its authorized share capital is Rs. 6,500,000 and its paid

up capital is Rs. 6,500,000. It is inolved in Other service activities

Brilliant Insurance Broking Services Private Limited's Annual General Meeting

(AGM) was last held on 21 June 2018 and as per records from Ministry of

Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2018.

Directors of Brilliant Insurance Broking Services Private Limited are Sudeep

Kumar Pellakuru, SriramaPeri Chandra Murty, VuppalaDeepika Reddy, .

Brilliant Insurance Broking Services Private Limited's Corporate Identification

Number is (CIN) U93090TG2009PTC064069 and its registration number is

64069.Its Email address is brilliantins@gmail.com and its registered address is

H.No.6-3-1099/1/8,Flat No.601,Aditya Land mark Apt Hotel Park Lane

Road,Somajiguda Hyderabad Hyderabad TG 500082

Current status of Brilliant Insurance Broking Services Private Limited is – Active.

49
Company Details

CIN U93090TG2009PTC064069

Company Name BRILLIANT INSURANCE BROKING

SERVICES PRIVATE LIMITED

Company Status Active

RoC RoC-Hyderabad

Registration 64069

Number

Company Company limited by Shares

Category

50
CIN U93090TG2009PTC064069

Company Sub Non-govt company

Category

Class of Private

Company

Date of 19 June 2009

Incorporation

Age of 10 years, 4 month, 26 days

Company

Share Capital & Number of Employees

Authorized Capital ₹6,500,000

51
Paid up capital ₹6,500,000

Number of Employees Login to view

Listing and Annual Compliance Details

Listing status Unlisted

Date of Last Annual General Meeting 21 June 2018

Date of Latest Balance Sheet 31 March 2018

Email ID: brilliantins@gmail.com

Address:

H.No.6-3-1099/1/8,Flat No.601,Aditya Land mark Apt Hotel Park Lane

Road,Somajiguda Hyderabad Hyderabad TG 500082 IN

52
Director Details

DIN Director Name Designation

02589721 SRIRAMA PERI CHANDRA MURTY Director

08145749 SUDEEP KUMAR PELLAKURU Additional Director

08145744 VUPPALA DEEPIKA REDDY Additional Director

BRILLIANT INSURANCE BROKING OPERATES ALL OVER INDIA

COMPANY NETWORK

53
OBJECTIVES OF BRILLIANT INSURANCE BROKING

 Spread Life Insurance widely and in particular to the rural areas and to

the socially and economically backward classes with a view to

reachingallinsurable persons in the country and providing them

adequate financial cover against death at a reasonable cost.

 Maximize mobilization of people‘ savings by making insurance-

linked savings adequately attractive.

 Bear in mind, in the investment of funds, the primary obligation to its

Brilliant Insurance Broking holders, whose money it holds in trust,

without losing sight of the interest of the community as a whole; the

54
 funds to be deployed to the best advantage of the investors as well as

the community as a whole, keeping in view national priorities and

obligations of attractive return.

 Conduct business with utmost economy and with the full realization

that moneys belong to the Brilliant Insurance Broking holders.

 Act as trustees of the insured Brilliant Insurance Broking in their

individual and collective capacities.

 Meet the various life insurance needs of the community that would

arise in the changing social and economic environment.

 Involve all people working in the Corporation to the best of their

capability in furthering the interests of the insured Brilliant Insurance

Broking by providing efficient service with courtesy.

 Promote amongst all agent and employees of the corporation a sense

of participation, pride and job towards achievement of Corporate

objective.

55
MISSION/VISION

Mission

“Explore and enhance the quality of life of people through financial security by

providing products and services of aspired attributes with competitive returns, and

by rendering resources for economic development.”

Vision

“A trans-nationally competitive financial conglomerate of significance to societies

and Pride of India.”

Brilliant Insurance Broking of India is the growing Insurance Broking sector

life Insurance Company in India.

56
Organisation Structure Of Brilliant Insurance Broking

Chairman

Managing Director

57
Executives Directors

Chiefs

Zonal Managers

Regional Managers

Divisional Managers

100 Seniors Divisional Managers

Marketing Managers

Sales Managers

58
Senior Branch Managers (Head of the Branch)

Assistant Branch Managers Sells

Development Officers

Different Agent

BRILLIANT INSURANCE BROKING RELATION DEPARTMENT

The Brilliant Insurance Broking Relation Department in BRILLIANT

INSURANCE BROKING is divided into three major

categories. Namely:

1. Communication Department

2. Crisis Management Department

3. Insurance Broking Department

59
CHIEF PUBBRILLIANT INSURANCE BROKING RELATION OFFICER

The Chief Brilliant Insurance Broking Relation Officer of Brilliant Insurance

Broking is Mr. M. V. Kulkarni. He heads thePR department. The above three

committees are under the PRO. The PRO irresponsible for the overall functioning

of the PR department. He has to monitor the smooth functioning of the three

departments.

Responsibilities Of Chief Pubbrilliant Insurance Broking Relation Officer :-

1. PR represents whole organization.

2. Should know how to behave in a certain situation.

3. He is not a person, he is representative.

4. Should know how to create enthusiasm.

5. In crisis he has to give feedback as soon as possible.

OBJECTIVES AND FUNCTIONS OF CHIEF PUBBRILLIANT INSURANCE

BROKING RELATION OFFICER:-

 The PRO is directly answerable to the Chairman Shri. T.S. Vijayan.

 The PRO looks after all the activities of the three departments all over

60
India.

 Also he has to keep in close touch with the over-seas PR departmentsof

Brilliant Insurance Broking.

 All the poBrilliant Insurance Brokingies implemented in India are informed

to other PROs of theover-seas branches of Brilliant Insurance Broking.

 The PRO monitors the norms and values of all the branches.

 The new rules and regulations in India are informed to the PROs of theover-

seas branches.

 The PRO also holds regular workshops for the top managementemployees to

motivate them to lift the spirit of the work culture.

 The PRO also has to provide information about latest Brilliant Insurance

Broking to thecommunication department and ask them to Brilliant

Insurance Broking or air it throughvarious mediums.

 Since a major share of workload of Brilliant Insurance Broking is in the

Brilliant Insurance Broking sector, the PROhas to look after social

responsibility as well as maintaining the imageof the company.

61
COMMUNICATION DEPARTMENT

The PRO of this Department is an external PR.

He looks after:-

 Arranging press conferences, press releases and is in constant contactwith

the media.

 He is also responsible for monitoring the overseas communications.

 The Communication Department PRO has to make arrangements for

theguests and their overall honors. The conversations with the guests

aredirectly done by the Communication Department PRO.

 The PRO from this department should always keep a close eye on thelatest

happenings in the market. Any social issue at any area is a news tobe worked

out for him.

 He reports directly to the Chief PRO of the company.

 The Press conference usually includes the CEO of the company, the

ChiefPRO and the Communication Dept. PRO.

 If the case is of crisis, then only is the Crisis management Dept PROpresent

for the Press conference.

 Since BRILLIANT INSURANCE BROKING is closely related with the

Brilliant Insurance Broking Sector, the Communication

62
  Dept. PRO has to also be in a close contact with the government officials.

 He also has to motivate the employees in his department for

constantprogress in the strategies for communication.

In short, the communication Department PRO ensures that there is no

communication gap between the company and the external concerned

bodies.

CRISIS MANAGEMENT DEPARTMENT

The PRO in this department is an internal one. From the overall history of

BRILLIANT INSURANCE BROKING, it is seen that the company has never been

into any major crisis. This itselfis one of the best achievements.

He is answerable to the Chief Brilliant Insurance Broking Relation Officer.

The PRO from crisis management, though is here to handle crisis, he has been

assigned many other internal responsibilities.

₹₹Motivating the lower employees, sales executives and sales and

marketing employees.

₹₹Building up a smooth communication between the Blue Collar and the

63
White Collar.

₹₹Arranging small workshops forall the employees.

₹₹He also has to know the issues going within the other departments so that

these issues are solved before they create crisis.

The strategy used by the PR here for crisis management is:-

―Wash the utensil before having food in it.‖

Thus all the employees right from the day of joining are kept in close

contact with the Crisis Management Dept. And regular workshops help to restrict

cases like Corruption. With a company so closely associated with the

government, restricting such practices is very difficult task.

INSURANCE BROKING DEPARTMENT

The PRO of the Insurance Broking Department is an External PR.

This department was formed due to the fall of sales in the 1999. This fall was due

to the emergence of the foreign insurance companies and their advertising

64
strategies. Initially, the ads shown by BRILLIANT INSURANCE BROKING

always said ―no worry even afterdeath‖. All the ads portrayed death. The other

insurance companies came upwith the idea that insurance is for happy life. Thus

the sales of BRILLIANT INSURANCE BROKING went down as

people liked the idea of Life more than Death.

Hence a separate Brilliant Insurance Broking department was formed which

worked only for Brilliant Insurance Broking strategies. Initially it was looked up

by the Communication Department.To satisfy the consumers in Brilliant Insurance

Broking they make effective consumer relations

65
 S.W.O.T. ANALYSIS OF BRILLIANT INSURANCE BROKING

A proper S.W.O.T. analysis of BRILLIANT INSURANCE BROKING has also

been conducted to know better about the position, growth, and upcoming future

and prospective of the company.

STRENGTHS

 BRILLIANT INSURANCE BROKING is on 1st rank among the Insurance

player.

 Long-term plans of BRILLIANT INSURANCE BROKING are the main

strength.

 After sales services.

 Products cost are very low.

 Customer does not believe on private company.

66
WEEKNESS

 Low interest rate

OPPORTUNITIES

 Good brand promotion.

 1/2nd- % insurance has been covered.

THREATS

 Competitors.

 Entry of Private Insurance banks..

Chapter 4

Subject matter

Introduction of topic

Research methodology

67
Research Methodology

68
 Research Methodology

The descriptive research design is used for analyzing and studying the process of

Business Development. It is very simple & more specific than explanatory study.

Data Sources:

Secondary Data:-

Secondary data is collected from already existing sources in various organization

broachers & records. Secondary data for the study were collected from the

magazines, websites & other previous studies.

To meet the objectives, the study used qualitative research. The descriptive study

was done through review of existing literature that helped in validation and

extraction of the important variables and factors. Data was collected from

secondary sources. Secondary sources were magazines, websites, books, office

executives, and company data.

69
 Findings


The reserve of the company is mainly kept of expansion only.


The liquidity of the firm is balanced however the company need cut
down its Acquisition cost.


The growth rate of company is increasing with 12% per annum.


Working capital of the Brilliant insurence consulting Pvt.ltd. was
increasing and showing positive working capital per year.

70
Conclusion

71
 Conclusion

. After Finding‘s we can see about Brilliant Insurance Broking features and his The

tendency to take the expedient approach and focus on the far right of the Brilliant

Insurance Broking spectrum, Peacetime Contingency Operations and conduct

training as usual, while briefing that the Brilliant Insurance Broking block has been

checked, will lead us to a possibly fatal false sense of security.

Instinctive behavior and ingrained training must be adjusted to fit new

Circumstances . STXs must be developed locally or borrowed from units who have

already been through the training.

The probability of becoming involved in a Brilliant Insurance Broking operation is

high. The potential to attract international attention, even with limited forces, is

also great. Units have demonstrated that with a balanced training focus and proper

preparation, many pitfalls outlined above can be avoided. Brilliant Insurance

Broking is not conventional warfare. This is critical for the counterinsurgent

tounderstand. The insurgent‘s violent and coercive strategy is applied so as

toachieve political, civil, military and psychological results. Hence, the

counterinsurgent must counter all of these strategic elements individually. In

addition, the target of the insurgent‘s violence and coercion is the population.

72
This is because the population is the centre of gravity in Brilliant Insurance

Broking. Therefore the counterinsurgent must also focus on the population to be

successful. In terms of military principles in counterinsurgency, doctrinal

precision, professionalism, independence, initiative, force precision, restraint,

combined arms, precision engagement, joint force, effective population based

intelligence, integrated communications, a civil affairs approach and high levels of

training are critical. So all Brilliant Insurance Broking and plan totally satisfied the

customers.

This study was concluded on the premise that for insurance companies in India to

remain competitive and attract more business as well increase its acceptance by

their current customers and potential one's they must understand the following: A)

That quality is defined by customer and not by the producer or seller and B) That

customer assesses service quality by comparing their expectation to their

perceptions of how the service will perform. And that since insurance provides for

a futurist need which is the provision of security on the occurrence of a loss, no

policyholder will be satisfied to be told that the claim cannot be paid. The finding

of the study show that prompt claims settlement is the most important factor

considered by the customers of insurance companies in India in their evaluation

and measurement of the quality of the policies they are holding. However, for the

promotion of insurance as a sector that can really serve as a source from which

73
investment fund can be sourced and an industry that can provide for security and

welfare needs of citizens particularly for a developing country as India, where

there are infrastructural inadequacy, and difficulty in raising fund required to grow

the economy; a vibrant insurance sector is greatly needed to help in solving some

of these problems. Recommendations that should be put into consideration:

Insurance Company should desist from the culture of not paying premium.

 Insurance company should look inward to see the reasons why the payment of

premium is a problem. Insurance company should make wise investment

decisions, so that there will be fund to meet the cost of claim when they arise.

Insurance company should make sure that it's charging enough premiums, based on

the risk brought before it by individual policyholder not just charging rate that will

make it remain in business and when losses occur it will not be able to pay claims.

Overall, marketing of insurance services should be step up so that more people will

be favorably disposed towards the purchase of insurance in India.

74
 Suggestion and
Recommendation

75
 \Suggestion and Recommendation
From the findings I can suggest Brilliant Insurance following things for

the more effective working capital management.


Total cost incurred on material wages and over heads should

be minimizes

The time duration for cash conversion should be brought

down and repayment schedule must be increased.


The average period of credit allowed to customers should

must be decreased.

The average credit period expected to be allowed by supplier

must be increased.

Advance payment should be avoided in order remain in cash

for longer time.

76
Limitation

77
 Limitation


All dependency on the secondary data.

The verification of the secondary data is not easy.

Personal biasness of various employees may have supplied wrong

data.

Time and money was also an important constraint.

78
Bibliography

79
 Bibliography
Books:

 K Ashwathapa, (1997) working and operation Management, Tata

McGraw Hill 131-176.
 C.B.Gupta, (1996) Working Capital Management, Sultan Chand &
Sons.
 Dr. C.R Kothari,(2008) Research Methodology,

Magazines:

 Business world

Newspapers:

 Times of India
 The Hindustan times
 The economic times.

Important websites –

 www.google.com(recummented)

 www.Brilliant Insurance Brokingindia.co

 Magazine

 Yogkshem –Brilliant Insurance Broking Magazine

80
 Outlook Express

 Business today

81