CHAPTER I

INTRODUCTION OF THE STUDY

 A STUDY ON ASSET AND LIABILITY MANAGEMENT IN SEKISUI DLJM
MOLDING COMPANY PVT LTD., SRIPERUMBUDUR, CHENNAI

INTRODUCTION OF THE STUDY

Asset liability management is the practice of managing various risks that arise due to mismatches
between the assets and liabilities. Asset liability management is defined as, “the process of decision –
making to control risks of existence, stability and growth of a system through the dynamic balances of
its assets and liabilities.” Assets and Liability Management is a dynamic process of planning,
organizing, coordinating and controlling the assets and liabilities. It also elaborates the categories of
risks manage by a primary agriculture co-operative credit society. The risks that the primary agriculture
co-operative credit society are exposed to are interest rate risk and liquidity risk and thus, the primary
agricultural Cooperative co-operative societys need to introduce effective risk management systems that
address the underlying issues.

Asset liability management, is mainly concerned with risk management and offers a complete
and vibrant framework for calculating, and monitoring the risks associated. In the process, it assesses the
risks faced by primary agriculture co-operative credit society due to mismatch between the asset and
liability. The first step of market risk management is to measure the liquidity and the interest rate risk.
Asset liability management policies are intended to keep those risks at an acceptable level given the
expectations of future market/interest rates. Asset Liability management (ALM) is at tool to manage
interest rate risk and liquidity risk.

Interest Rate Risk

Interest rate risk refers to risks associated with changes to interest rates, and how changing
interest rates affect future cash flows. Financial institutions typically hold assets and liabilities that are
affected by changing interest rates. Two of the most common examples are deposits (assets) and loans
(liabilities). As both are impacted by interest rates, an environment where rates are changing can result
in a mismatching of assets and liabilities.

Liquidity Risk

Liquidity risk refers to risks associated with a financial institution’s ability to facilitate it’s
present and future cash-flow obligations, also known as liquidity. When the financial institution is
unable to meet its obligations due to a shortage of liquidity, the risk is that it will adversely affect its
financial position. To mitigate the liquidity risk, organizations may implement Asset liability
management procedures to increase liquidity to fulfill cash-flow obligations resulting from their
liabilities.

Capital markets risk:

The risk from movements in equity and/or credit on the balance sheet. An insurer may wish to
harvest either risk or fee premia. Risk is then mitigated by options, futures, derivative overlays which
may incorporate tactical or strategic views.

Currency risk management:

The risk of losses resulting from movements in exchanges rates. To the extent that cash-flow
assets and liabilities are denominated in different currencies; see Currency analytics.

Funding and capital management:

As all the mechanism to ensure the maintenance of adequate capital on a continuous basis. It is a
dynamic and ongoing process considering both short- and longer-term capital needs and is coordinated
with a bank's overall strategy and planning cycles (usually a prospective time-horizon of 2 years).

Profit planning and growth.In addition, ALM deals with aspects related to credit risk as this
function is also to manage the impact of the entire credit portfolio (including cash, investments, and
loans) on the balance sheet. The credit risk, specifically in the loan portfolio, is handled by a separate
risk management function and represents one of the main data contributors to the ALM team

Asset Liability management functions:

Managing gaps

The objective is to measure the direction and extent of asset-liability mismatch through the
funding or maturity gap. This aspect of Asset liability management stresses the importance of balancing
maturities as well as cash-flows or interest rates for a particular set time horizon. For the management
of interest rate risk it may take the form of matching the maturities and interest rates of loans and
investments with the maturities and interest rates of deposit, equity and external credit in order to
maintain adequate profitability. It is the management of the spread between interest rate sensitive assets
and interest rate sensitive liabilities.
Static/Dynamic gap measurement techniques

Gap analysis suffers from only covering future gap direction of current existing exposures and
exercise of options (i.e.: prepayments) at different point in time. Dynamic gap analysis enlarges the
perimeter for a specific asset by including ‘what if’ scenarios on making assumptions on new volumes,
(changes in the business activity, future path of interest rate, changes in pricing, shape of yield curve,
new prepayments transactions, what its forecast gap positions will look like if entering into a hedge
transaction).

Need of Asset liability Management

 It helps in risk measurement.

 Effective asset-liability management ensures liquidity risk management.

 Effective Asset liability management protects and enhances the profit and net worth.

 It increases the net interest income.

 Asset liability management is used to quantify the risks.

 It helps in finalizing the short-term and long-term planning.

Importance of Asset Liability Management

 To manage risk, not to eliminate risk.

 It is the process of deciding to control risks and stabilizing the system by balancing assets and

liabilities.

 Co-operative society should have adequate assets to pay off their liabilities whenever due.

 In Co-operative society, it addresses the risk of asset-liability mismatch because of either interest

rate or liquidity risk.

Assets and Liabilities Management (ALM) is a dynamic process of planning, organizing,

coordinating and controlling the assets and liabilities – their mixes, volumes, maturities, yields and costs
in order to achieve a specified Net Interest Income (NII). This paper examines management of asset-
liability in ICICI bank. The main objective is, to understand the problems involved in maintaining and
managing assets and liabilities. The present study has been conducted on the basis of secondary data and
is descriptive in its nature. The study period was confined to a period of five financial years from 2008–
09 to 2012–13.

The required secondary data for the study was collected through different websites, annual
reports of ICICI, different journals. To make the analysis meaningful advanced statistical tools like –
Ratios and percentages were applied. To test hypothesizes the correlation was applied with the help of
SPSS.21 Software package. The major findings are: Capital turnover ratio of the bank was satisfactory.
The cash ratio has not been maintained according to the standard, the cash has been maintained less than
the standard which indicates that company should maintain more cash balance. The net profit has been
maintained in the increasing rate which shows that the company has performing well during the study
period. From the study it is clear that ICICI looks forward to generate a more favorable service in the
near future. The balance sheet of the company has been consistent and gives a hint of growth and
expansion.

The Asset - Liability Committee (ALCO) consisting of the DMI’s senior management including
Joint Managing Directors shall be responsible for ensuring adherence to the limits set by the Board as
well as for deciding the business strategy of DMI (on the assets and liabilities sides) in line with the
DMI's budget and decided risk management objectives. The ALM Support Groups consisting of
operating staff shall be responsible for analyzing, monitoring, and reporting the risk profiles to the
ALCO. The staff shall also prepare forecasts (simulations) showing the effects of various possible
changes in market conditions related to the balance sheet and recommend the action needed to adhere to
Company’s internal limits.

The ALCO is a decision-making unit responsible for balance sheet planning from riskreturn
perspective including the strategic management of interest rate and liquidity risks. The business and risk
management strategy of the Company shall ensure that the it operates within the limits / parameters set
by the Board. The business issues that an ALCO shall consider, inter alia, shall include product pricing
for both deposits and advances, desired maturity profile and mix of the incremental assets and liabilities,
prevailing interest rates offered by other peer NBFCs for the similar services/product, etc.

In addition to monitoring the risk levels of the NBFC, the ALCO shall review the results of and
progress in implementation of the decisions made in the previous meetings. The ALCO shall also
articulate the current interest rate view of the NBFC and base its decisions for future business strategy
on this view. In respect of the funding policy, for instance, its responsibility shall be to decide on source
and mix of liabilities or sale of assets.
 Towards this end, it will have to develop a view on future direction of interest rate movements
and decide on funding mixes between fixed vs floating rate funds, wholesale vs retail deposits, money
market vs capital market funding, domestic vs foreign currency funding, etc. Individual NBFCs shall
have to decide the frequency of holding their ALCO meetings.

The importance of well managed assets and risk management within companies or investment
trust funds is highly topical. Not least since the global financial crisis in 2008 [11]. The reason could be
explained by a general uncertainty in the stock market with unpredictable and extreme movements that
can be seen on a global level. Much can be attributed to events provoked by global warming and the
globalization. An example is the most recent event, the Covid-19 outbreak, is partly a result of
globalization as it provides a greater spread of the virus.

This outbreak shook the whole world and lead to a historical drop in the stock exchanges around
the whole world. Thus, many people are to be affected in the event of a disaster since the stock
exchange is directly effected by external events. Careless asset management could therefore lead to the
public losing their pensions and other savings through direct value reduction in the assets and distressed
companies could simply default and go bankrupt. Hence, well managed assets and liabilities can help to
increase public trust of a company, reduce risk of insolvency and even increase business profits [8].
Although the external factors that can affect assets are highly topical, the main focus of this thesis will
be on the asset management itself within pension foundations and the risks associated with it. The
tendency of which the companies should review and manage different types of risks is called Enterprise
Risk Management or ERM. The part concerning managing the assets’ and liabilities’ cash flows is
called Asset-Liability Management or ALM.

These types of preventive work concerning reducing and monitoring risk has become an
important branch of every financial institution such as pension foundations. Most financial institutions
are supervised by authorities and regulators with a clear regulatory framework, with it follows
requirements of risk management within the portfolios. This is necessary as the hope is to secure the
safety of the assets belonging to employees, investors or other policy holders. This thesis will
quantitatively evaluate how a pension foundation can utilize ALM to identify methods to secure assets,
protect shareholders and secure future payouts. This by testing and assessing investment and portfolio
selection strategies that seeks to reach a desirable risk adjusted return.

Industry undergoing various paradigm shifts. Some of these include the introduction of a new
medium- and long-term loan product, a shift to individual lending, the provision of a range of financial
services, registration in the legal framework and the use of commercial sources of finance. This rapid
expansion and development of the microfinance profile brought additional risks to their balance sheet
structure. Apart from the generally recognised credit risk, many MFIs are therefore exposed to several
risks.
If the MFI has borrowed funds at a floating interest rate, this may move up and down with the
market while the MFI's loans are at a fixed rate or vice versa. Management must ensure that loans and
borrowings are compatible so that interest rate risk can be controlled by adjusting interest rates. Second,
MFIs operate mainly in developing countries where inflation is high. They are also most likely to
mobilise deposits to fund their loan portfolio. This means that depositors expect a real return despite
high inflation. In addition to asset and liability price adjustments,

MFI managers should maintain the liquidity and safety of deposited funds. some MFIs mobilise
savings and take out foreign currency loans because they do not receive sufficient funds from local
creditors or banks. Foreign currency debt and deposits thus pose a currency risk to MFIs whose main
assets are denominated in the local currency. There is a theoretical dispute in the microfinance literature
between the use of subsidies and commercial sources of funds to finance their activities. The literature is
dominated by the institutional approach, which argues that financial sustainability is better in fulfilling
the social mission and supports the use of commercial loans as a source of funds. In addition, many
international donors such as ACCION are pushing the microfinance sector to reduce its dependence on
subsidies. Accordingly, the share of loans from commercial banks in the microfinance sector has
increased rapidly in recent years. Therefore, on the one hand, MFIs need to maintain a very high
portfolio quality to attract potential creditors and show that they are secure investment opportunities. On
the other hand, the loan portfolio is the main source of income for MFIs and constitutes a large part of
their assets.

Therefore, MFI managers need to know how to manage the supply of funds and the demand for
funds, which requires matching the maturity, currency and price of the composition of assets and
liabilities. Therefore, asset-liability management (ALM) has emerged as a critical and future challenge
in the microfinance industry. ALM is the process of planning, implementing and controlling the volume,
maturity, price, composition, quality and liquidity of assets and liabilities of financial institutions.
However, since most MFIs started with subsidies and often offer short-term loans, they mainly focus on
the quality of the loan portfolio (asset management). However, studies suggest that liability management
is also critical to meet long-term capital needs and to address subsidy constraints.
There is evidence of a dramatic shift in the funding structure of microfinance institutions.

In addition, more and more SSA countries are introducing special microfinance regulations that
enable MFIs to offer additional financial services, such as deposit mobilisation and the use of other
commercial funds. The region is one of the poorest in need of the provision of inclusive and sustainable
financial service. The development of the MFI profile combined with other unique characteristics of the
region makes it ideal for the study of asset-liability management. Therefore, this paper aims to examine
the impact of asset-liability management on the financial performance of microfinance institutions in the
Sub-Saharan Africa region. Specifically, it examines whether MFIs earn a positive return on their assets
and a negative return on their liabilities. The study uses the statistical cost accounting technique, which
is drawn from the banking literature, as it has been little explored in the microfinance literature.

In short, the result shows that the return on assets is related to the composition of assets and
liabilities; however, most assets were not statistically significant in the regression model. Thus, this
study partially confirms the central hypothesis of the statistical cost accounting model that the estimated
rates of return on assets (liabilities) are positive (negative) and vary across assets (liabilities). The net
loan portfolio has a positive and significant impact on the financial performance of microfinance
institutions. This indicates that the asset base (investment portfolio) of MFIs in SSA is too narrow.
Regarding the composition of liabilities, the cost of interest rate on other liabilities and bonds was
higher and has a significant negative impact on the return of MFIs. In contrast, the cost of interest rate
on deposits and other short-term financial liabilities was lower but negatively and positively related to
MFI financial performance, respectively.
The success of bank depends upon the fact that how efficiently it uses its assets and maintains
sound solvency position. This is possible only with help of effective Asset and Liability Management
(ALM). Assets liability management (ALM) is managing infrastructure asset to minimize the total cost
of borrowing and delivering the service as per customer’s desire. It refers to a systematic process of
effectively maintaining, upgrading and operating assets, and providing the tools to facilitate a more
organized and flexible approach to meet expectations of stake holders and the public.

Asset liability management has been a greater concern for banks due to uncertainties and
volatility in the market and unpredictable macro factors in domestic and global markets. Technological
advancement, new product innovations, latest management practices brought in by new private players
and foreign banks added further stress on the functioning of banks. Under these compelling situations,
ALM objective is to control volatility of net interest income and net economic value of respective banks.
The success of banking system depends on the appropriate asset liability management which in turn
depends on the effective policies, governance and risk management practices.

Banking sector in India plays pivotal role in mobilization of deposits and disbursement of loans
to the different sectors of the economy. Commercial banks are important ingredients in the economic
system to administer overall development of the nation. It is the prime duty of banker to maintain sound
and efficient banking system to ensure financial stability. Financial stability can be manageable through
proper designing of asset and liability in the company. Asset-liability management essentially refers to
the practice by which a bank manages its balance sheet in order to set aside for alternative interest rate
and liquidity scenarios. Banking business is related with accepting deposits and lending loans.
Bankers are primarily deals with the money related products to satisfy the various needs of its
customers.

Bankers are always aiming to maximize profitability and trying to ensure sufficient liquidity
to repose assurance in the minds of its depositors on their ability in serving the deposits by
making timely payment of interest and repayment of their deposits. Timely meeting of all other
liability commitment are important to them. To honor depositors and loan seekers demands, it is
indispensable that banks have to monitor, maintain and manage their assets and liabilities
assortment in a systematic manner taking into account the diverse risk involved in that arena.

Generally, banking business is exposed to credit, market, operational and reputational

risks in view of the asset-liability renovation. In the midst of liberalization in the Indian financial
markets over the last few years and increasing assimilation of domestic markets with external
markets, the risks associated with banks’ operations have become multifarious and huge,
requiring strategic management. Indian financial markets have witnessed plethora of changes at fast
pace over the last two decades.
Concentrated competition for business concerning both the assets and liabilities, in concert with
increasing precariousness in the domestic interest rates as well as foreign exchange rates, has brought
pressure on the management of banks to preserve a good balance among spreads, profitability and long-
term viability. With the view to study the asset liability management in Indian scheduled commercial
banks, this study has been carried out.
Principal sources of funding
Asset-based funding sources[edit]

The asset contribution to funding requirement depends on the bank ability to convert easily its
assets to cash without loss.

 Cash-flows : as the primary source of asset side funding, occur when investments mature or
through amortization of loans (periodic principal and interest cash-flows) and mortgage-backed
securities

 Pledging of assets: in order to secure borrowings or line commitments. This practice induces a
close management of these assets hold as collateral

 Liquidation of assets or sale of subsidiaries or lines of business (other form of shortening of

assets can be also to reduce new loans origination)

 Securitization of assets as the bank originates loans with the intent to transform into pools of
loans and selling them to investors
Liability and equity funding sources
 Retail funding

From customers and small businesses and seen as stable sources with poor sensitivity level to
market interest rates and bank's financial conditions.

 Deposit account
 Transaction accounts
 Savings accounts
 Public deposit
 Current account

 Wholesale funding

Borrowing funds under secured and unsecured debt obligations (volatile and subordinated

liabilities that are purchased by rate sensitive investors)

Short-term :

 High-grade securities (otherwise the counterparty or broker/ dealer will not accept the
collateral or charge high haircut on collateral) sold under repurchase agreement : repo transaction that
helps create leverage and short-term liabilities collateralised with longer maturity assets
 Debt instruments such as commercial paper (promissory note such as Asset-backed
commercial paper program or ABCP)

Longer terms :

collateralized loans and issuance of debt securities such as straight or covered bonds

 Other form of deposit

 Certificate of deposit
 Money market deposit
 Brokered deposit
 Parent company deposit
 Deposit from banks
COMPANY PROFILE
COMPANY PROFILE

Manufacturer of automobile vehicle parts located in Gurugram, India. The company specializes
in product design, development, injection molding, PU painting, chrome plating, special decoration and
manufacturing of sub-assembled systems.

The product categories includes Automotive Lighting Parts, Steering Garnishes, Air Bag Cover,
Door Trims, Airvent Module Assembly, In Mold Decoration Technology, Steam Injection, Metal to
Plastic converted precision Engine components like Air Intake Manifold, Cylinder Head Cover,
Electroplated Parts like Emblems, Tailgate Garnishes, Door Handles, Steering Bezels, Grill Surrounds,
Head Lamp & Fog Lamp Garnish. In HMV segment Air Filter Body. Sekisui DLJM has five World-
Class manufacturing facilities in NCR, Chennai & Gujarat, India and R&D center in Japan. Sekisui
DLJM with its exponential growth is clocking revenue of 50 million USD in 2018-19.

The automotive business of DLJM, joined hands with Sekisui Techno molding Company of
Sekisui Chemical Group & formed a joint venture in Aug 2011 by the name of Sekisui DLJM Molding
Pvt Ltd to cater to global OEMS present in India, with an intent to provide Japanese quality at Indian
prices. The able command of the company is in hands of Mr. Dev Bhushan Jain (COO), Mr. Hirokazu
Kinoshita, Mr. Ritesh Jain & Mr. Yogesh Jain. One of the biggest asset of the company's growth and
overall development is the collegial team of various professionals with high degree of proficiency and
command in their respective fields.

Sekisui DLJM Molding is a joint venture company between Dupty Lal Judge Mal Pvt Ltd in
India and Sekisui Chemical Co., Ltd. in Japan, and is operated by Sekisui Techno Molding Co Ltd.
Sekisui Techno Molding currently supplies to major companies like Toyota, Daihatsu, Honda, Yamaha
and Suzuki. Apart from automotive components, the company also manufactures plastic modules for
rain water harvesting tank, which is a new technology introduced in India.

“We will be investing around Rs 30 crore for establishing initial production and anticipate that
the Chennai facility will employ approximately 120 people when in full operation,” Tadahiko Yoshioka,
Head, Sekisui DLJM. In addition to injection moulding, Sekisui DLJM will also have the painting
process at its state-of-the-art paint shop with pre-treatment line, in the upcoming plant. On
lightweighting he said there are several ways to make the part lighter by changing the design, process
and metal replacement. “For design change, we normally review the design with CAE analysis, to check
if the new design is feasible in terms of function and strength.
 Part weight can be reduced by process technology like gas injection or foaming injection
moulding. We already have gas injection moulding, but in case of foaming injection, the challenge lies
in coreback system using all-electric injection machines, that requires significant investments.
Considering this initial investment, application and volume of business must be carefully planned to
implement this technology. Currently Sekisui Techno Molding in Japan is already applying this
technology to parts for four-wheeler. Depending on the demand in India,
Sekisui DLJM Molding can bring the same technology from Japan,” Yoshioka said.

The component manufacturer is also capable of producing metal replacement parts in exteriors
and engine surrounding parts and currently offer seat handle, guide stopper, and engine related parts. In
case of seat handle part, the company has a flexibility to combine metal replacement technology with
gas injection process technology. The challenge of metal replacement lies on how to choose composite
material and to design the part, to optimise the balance among design shape, function, and cost.
Yoshioka opines that replacing metals with engineering plastics may not be the only solution to reduce
cost, but, “definitely, we can reduce weight and cost, while having great design freedom. In case of
aluminium die-casting part, several process steps are needed include.ing melting, die-casting, sand
blasting, finishing, and painting. But injection molded parts require simple injection molding process
with constant quality and shorter processing time,

At Sekisui DLJM our endeavor is to strive for uncompromising commitment to overall customer
satisfaction - meeting stringent quality standards, challenging requirements and customer program
timing

Having acquired a leadership position in niche segment of automotive systems Sekisui DLJM
has been noise customer confidence. Leading to recognition by way of performance awards & winning
new projects. We Support customers requirements at multiple locations, making a global footprint.

Sekisui DLJM has over the years become a full service supplier offering engineering solutions to
the automotive industry. This includes contemporary Technology & Processes coupled with Product
Designing, Application Engineering, Tool Designing & Tool Manufacturing, Programme Management
and best in class Manufacturing practices.

We take this opportunity to thank our customers for their continued support & we extend you our
personal assurance that in your association with Sekisui DLJM, you will find your supplier of choice,
committed to engineering and Innovative solutions with a passion for excellence.
PRODUCTION PARTS IN DLJM

CLIENTS AND CUSTOMERS

Quality Policy

SEKISUI DLJM is a customer-centric organization and Quality is the driving force behind our
success. Our ultimate moto is to achieve the highest level of client satisfaction.SEKISUI DLJM believes
in continuous improvement act and actively involved various improvement activities through TPM and
Kaizen that are implemented throughout its plants.
Sekisui DLJM is committed to maintain market leadership and customer confidence by
supplying high quality of products and services, conforming to agreed specifications of customer, at
local competitive price. These shall be achieved by:-
 Implementation and continual improvement of effectiveness of Quality Management
System.
 Improving customer satisfaction levels by prompt dispatches and reduction of non-
conformities.
 Improving productivity by optimum utilization of machines and reducing inventories.
VISSION

We’ve grown steadily over the last 8 years, and believe that commitment to quality and customer
satisfaction are the mainstay of our long term and sustained success and to help us achieve our goals and
visions we have a team of dedicated Leaders, Engineers, Technicians and Consultants.

MISSION

Manufacture high quality, precise injection molded products on time with superior customer
support throughout the process and foster a culture of continuous improvement and accountability for
the benefit of all stakeholders.

CAREER

Since the launch of SEKISUI DLJM, we have focused on building a comfortable working
environment where job satisfaction can bring together organizational and human development. We,
therefore, promote knowledge and skills development through workshops and training programs.
SEKISUI DLJM is a privately owned company with a simple organizational structure that gives us great
flexibility and speed in decision-making processes
CHALLENGES & OPPORTUNITIES:

Whether it is a decision to enter a new field of expertise or an incentive to improve your current
skills, we offer you the opportunity to influence your work by joining our dedicated teams and experts
who contribute daily to improving products, finding new solutions and creating additional value and
satisfaction for our customers around the world. The scope of our operations is varied so you have the
opportunity to promote yourself in selections or popular experiences and be part of various departments
and groups. We are seeking new members with enthusiasm and a commitment to work that will add to
our team. We expect an effective approach, initiative, ability to take responsibility and to be an
inspiration to other colleagues in defining and achieving the overall goals of the company.
INDUSTRY PROFILE
INDUSTRY PROFILE

The Global Injection Moldings Market is valued at USD 262.9 Billion in 2022 and is projected
to reach a value of USD 394.3 Billion by 2030 at a CAGR of 5.20% between 2023 and 2030.

The Injection Molding market stands as a cornerstone, shaping the production of diverse plastic
products. Providing a versatile solution, injection molding has become the go-to method for creating
intricate and customized designs with efficiency. The market's overview reveals a nuanced interplay of
technological advancements, material innovations, and evolving consumer demands.

Technological strides in injection molding machinery have significantly impacted the market.
Automation and precision have become the bedrock of efficient production, reducing cycle times and
minimizing errors. These advancements not only enhance productivity but also contribute to
sustainability efforts by optimizing resource utilization. As the industry adapts to the era of Industry 4.0,
the integration of smart technologies further propels the Injection Molding market into a realm of
enhanced connectivity and data-driven decision-making.

Top Companies in Global Injection Moldings Market

 All-Plastics
 Biomerics
 HTI Plastics
 The Rodon Group
 EVCO Plastics
 Majors Plastics, Inc.
 Proto Labs, Inc.
 Tessy Plastics
 Currier Plastics, Inc.

Injection Moldings Market Dynamics

The Injection Molding market, a powerhouse in the manufacturing realm, is propelled forward
by a myriad of driving factors that shape its trajectory and influence industry dynamics. Technological
advancements take center stage as a primary catalyst, transforming the landscape with innovations that
redefine efficiency and precision. As machinery evolves, incorporating automation and smart
capabilities, manufacturers experience heightened productivity and reduced operational complexities,
paving the way for sustained market growth.

Material innovation stands as another pivotal driving force in the Injection Molding market. The
quest for sustainable and eco-friendly solutions has led to the exploration of alternative materials,
including bioplastics and recycled polymers. This shift aligns with the global emphasis on
environmental responsibility, reflecting the industry's commitment to minimizing its ecological
footprint. Manufacturers leveraging these materials not only meet regulatory standards but also cater to
the growing consumer demand for eco-conscious products.

The surge in demand for customized and intricate designs amplifies the importance of design
flexibility in injection molding. This driving factor is particularly pronounced in industries such as
automotive, healthcare, and consumer goods, where unique and tailored components are integral. The
ability to produce complex geometries and intricate details positions injection molding as a preferred
method for achieving design versatility.

Top Trends in Global Injection Moldings Market

One prominent trend is the advent of Industry 4.0, where smart manufacturing takes center stage.
The integration of IoT devices and sensors into injection molding machinery ushers in an era of data-
driven insights and predictive maintenance, optimizing production processes and minimizing downtime.

Sustainability emerges as a resounding trend, echoing the global call for eco-friendly practices.
In the Injection Molding market, this translates into the increased adoption of recycled and
biodegradable materials. Manufacturers are actively seeking alternatives that not only meet regulatory
standards but also resonate with environmentally conscious consumers, thus reshaping the industry's
landscape towards a greener future.

Global Injection Moldings Market Segmentation

 By Machine Type
 Hydraulic
 Electric
 Hybrid
 By End-Use Industry
 Automotive
  Consumer Goods
 Packaging
 Healthcare
 Electrical electronics
 Others
 By Product Type
 Plastic
 Rubber
 Metal
 Ceramic
 Others
 Challenges

One notable challenge is the constant pressure to meet stringent regulatory standards. With an
increasing focus on environmental sustainability and product safety, manufacturers in the injection
molding space must grapple with compliance issues, necessitating meticulous adherence to evolving
regulations.

The ever-present specter of material shortages poses another hurdle for the injection molding
industry. Fluctuations in the availability and costs of raw materials, especially polymers, can disrupt
production schedules and strain profit margins. Balancing the need for quality materials with the
realities of a volatile supply chain requires foresight and agility on the part of industry players.

ELECTRO PAINTING
Electroplating is the process of using electrodeposition to coat an object in a layer of metal(s).
Engineers use controlled electrolysis to transfer the desired metal coating from an anode (a part
containing the metal that will be used as the plating) to a cathode (the part to be plated).

The anode and cathode are placed in an electrolyte chemical bath and exposed to a continuous
electrical charge. Electricity causes negatively charged ions (anions) to move to the anode and positively
charged ions (cations) to transfer to the cathode, covering or plating the desired part in an even metal
coating. Electroplating takes a substrate material (often a lighter and/or lower-cost material) and
encapsulates the substrate in a thin shell of metal, such as nickel or copper.
Electroplating is most commonly applied to other metals, because of the basic requirement that the
underlying material (the substrate) is conductive. Although less common, autocatalytic pre-coatings
have been developed which produce an ultra-thin conductive interface, allowing a variety of metals -
most notably copper and nickel alloys - to be plated onto plastic parts.

Electroplating vs. Electroforming

Electroplating and electroforming are both performed using electrodeposition. The difference is that
electroforming uses a mold that is removed after a part is formed. Electroforming is used to create solid
metal pieces, whereas electroplating is used to cover an existing part (which is made of a different
material) in metal.

Electroplating (3D Printed) Plastic Parts

Thanks to scientific advances in materials and plastic manufacturing, lightweight and low cost
plastic parts have replaced more expensive metal parts in a wide variety of applications serving various
industries, from automobiles to plumbing pipes.

Although plastic boasts an array of advantages over metal, there are many applications where
metal still reigns supreme. Try as you might, you’ll never get plastic to have the same opulent finish as
copper. And while plastic might be more flexible than the majority of metals, it’s not nearly as strong.
This is where metal plating comes in.

3D printing offers unique advantages when combined with electroplating. Engineers often
choose to 3D print substrates because of additive manufacturing’s design freedom. It is often cheaper to
electroplate 3D printed parts than to cast, machine, or use other manufacturing methods, especially
when it comes to prototyping.

Stereolithography (SLA) 3D printing is ideal for electroplating because it creates 3D printed

parts with very smooth or finely textured surfaces that make the transition between the two materials—
plastics and metals—seamless. It also creates watertight parts that won’t get damaged when submerged
in the chemical bath required during the electroplating process.
Electroplating lets you combine the strength, electrical conductivity, abrasion and corrosion resistance,
and appearance of certain metals with different materials that boast their own benefits, such as
affordable and/or lightweight metals or plastics.

In this guide, you’ll learn why many engineers, researchers, and artists use electroplating in every stage
of manufacturing—from prototyping to mass production.

what Is Electroplating?

Electroplating is the process of using electrodeposition to coat an object in a layer of metal(s).

Engineers use controlled electrolysis to transfer the desired metal coating from an anode (a part
containing the metal that will be used as the plating) to a cathode (the part to be plated).

Diagram of copper electroplating using an electrolyte bath of copper sulfate, sulfuric acid, and
chloride ions. (image source)

The anode and cathode are placed in an electrolyte chemical bath and exposed to a continuous electrical
charge. Electricity causes negatively charged ions (anions) to move to the anode and positively charged
ions (cations) to transfer to the cathode, covering or plating the desired part in an even metal coating.
Electroplating takes a substrate material (often a lighter and/or lower-cost material) and encapsulates the
substrate in a thin shell of metal, such as nickel or copper.

Electroplating is most commonly applied to other metals, because of the basic requirement that the
underlying material (the substrate) is conductive. Although less common, autocatalytic pre-coatings
have been developed which produce an ultra-thin conductive interface, allowing a variety of metals -
most notably copper and nickel alloys - to be plated onto plastic parts.

Electroplating vs. Electroforming

Electroplating and electroforming are both performed using electrodeposition. The difference is that
electroforming uses a mold that is removed after a part is formed. Electroforming is used to create solid
metal pieces, whereas electroplating is used to cover an existing part (which is made of a different
material) in metal.
Electroplating Material Options

You can electroplate a single metal onto an object, or a combination of metals. Many manufacturers
choose to layer metals, such as copper and nickel, to maximize strength and conductivity. Materials
commonly used in electroplating include:

 Brass
 Cadmium
 Chromium
 Copper
 Gold
 Iron
 Nickel
 Silver
 Titanium
 Zinc

Substrates can be made of almost any material, from stainless steel and other metals to plastics. Artisans
have electroplated organic materials, such as flowers, as well as soft fabric ribbons.

It’s important to note that non-conductive substrates such as plastic, wood, or glass must first be made
conductive before they can be electroplated. This can be done by coating a non-conductive substrate in a
layer of conductive paint or spray.

Electroplating (3D Printed) Plastic Parts

Thanks to scientific advances in materials and plastic manufacturing, lightweight and low cost plastic
parts have replaced more expensive metal parts in a wide variety of applications serving various
industries, from automobiles to plumbing pipes.

Although plastic boasts an array of advantages over metal, there are many applications where metal still
reigns supreme. Try as you might, you’ll never get plastic to have the same opulent finish as copper.
And while plastic might be more flexible than the majority of metals, it’s not nearly as strong. This is
where metal plating comes in.
3D printing offers unique advantages when combined with electroplating. Engineers often choose to 3D
print substrates because of additive manufacturing’s design freedom. It is often cheaper to electroplate
3D printed parts than to cast, machine, or use other manufacturing methods, especially when it comes to
prototyping.

Stereolithography (SLA) 3D printing is ideal for electroplating because it creates 3D printed parts
with very smooth or finely textured surfaces that make the transition between the two materials—
plastics and metals—seamless. It also creates watertight parts that won’t get damaged when submerged
in the chemical bath required during the electroplating process.

From an engineering standpoint, the combination of 3D printing and electroplating offers unique tensile
strength options for finished designs. As you can see in the chart above, the combination of these two
manufacturing processes bridges the gap in tensile strength between the two material groups.

Metal plating can have a major impact on the mechanical performance of (3D printed) plastic parts.
With a structural metal skin and a lightweight plastic core, parts can be produced with surprisingly high
flexural strength characteristics.

In addition to improving mechanical behavior, electroplating can be used to protect plastic parts from
environmental degradation. In applications where plastic parts are exposed to chemical attack or
ultraviolet light, metal plating provides a permanent barrier that can extend the life of your parts from
months to years.

When used as an aesthetic treatment, plating offers an easy way to create prototypes that both look and
feel like metal. Depending on the plate thickness, electroplated plastic can be thin and light, or add
noticeable weight to a part. Thicker electroplated coatings can even be texturized or polished to achieve
a variety of metal finishes, from cast aluminum to mirrored chrome. More complex textures can be
achieved by 3D printing a textured resin substrate.

Given the potential combinations of 3D printable materials, a variety of plating metals, and plate
thickness ratios, it’s easy to see how electroplating gives engineers a new field of design options to
consider.
Painting injection-

molded parts is a fast and cost-effective way to ensure a uniform look and protect the newly
manufactured parts. After injection molding, the plastic parts are ejected from the machine. These parts
are bare – the finished texture and color will be determined by the characteristics of the plastic resin.
The parts can be sent directly to the customer if no further post-processing is required.

Some injection-molded parts will require post-processing to achieve the desired texture and
color. Painting is a fast and cost effective way to ensure uniformity in texture and color over an
extended run of parts. Painting also offers several benefits including covering flaws, chemical and stain
resistance, protection from UV light, scratch and abrasion resistance, and protection from the elements.

The experts at ICOMold by Fathom can help customers choose the right painting process to
achieve the desired finish.

Pros of Painting Injection Molded Parts

Color

The plastic parts painting process ensure uniform color throughout the manufacturing run. This
means that the first piece made and the last piece ejected will look exactly the same, even if the color of
the plastic resin varies over the course of molding. In many cases, it is less expensive to paint every
piece than it is to dye the plastic resin to match the desired color

Cover Imperfections

Paint will cover most imperfections that result from the injection molding process. These
imperfections can be caused by the mold itself or by the design geometry. Paint will also cover up
inconsistencies in the resin. Plastic resins with glass and carbon fill will show fibers near the surface of
the part.

Finish

The finish of a bare plastic injection molded part is determined by the chemical characteristics of
the resin. Plastic resins have finishes varying from satin to semi gloss. Painting injection molded plastic
with ensure the correct finish. Customers can chose from a dull matte finish all the way to high gloss.
Stain and Chemical Resistance

Painting injection molded plastic will help the finished part resist staining from environmental
factors and contact with certain chemicals. The plastic painting process will protect and lengthen the life
span of injection molded parts.

Easy Clean Up

Painted surfaces are much easer to clean than unpainted surfaces. As noted above, paint will
protect the integrity of the part from staining and chemicals. The same paint will make clean up a breeze
should the part become soiled.

Scratch and UV Resistance

Plastic injection molded parts can be used in a variety of environments. The harshest
environment is typically exposure to the elements. Parts being used in an outdoor setting must be able to
stand up to all weather conditions and anything that gets thrown at it, figuratively and literally. The
plastic parts painting process will add an extra layer of protection, making parts better able to withstand
physical abuse and long exposure to sunlight.

The Cons of Painting Injection Molded Parts

Extra Cost
Painting is a post-processing procedure and will cost extra. Skipping any post-processing will
reduce cost, especially if you are happy with the color and texture of the bare plastic. Beyond the added
cost, there are no other downsides to painting injection-molded parts. Painting plastic injection molded
parts is an inexpensive and easy way to protect new parts.

Types of Plastic Painting Processes

There are several types of plastic painting processes to choose from. The process that will best fit
your project will depend on how the part is used, where the part is used, and what environmental factors
may impact the part.
Spray Painting.
Spray painting is the simplest and most cost-effective painting process used to add color or
character to plastic parts. Some paints are two-part and self-curing. Other plastic paints require UV
curing to increase durability. An ICOMold Project Manager can help you determine the best type of
spray paint for your project.

Powder Coating.
The powder coating process starts with a powdered plastic that is sprayed onto the parts. A UV
light is then used to cure the paint and adhere it to the surface. The chemistry of both the powdered
plastic and the plastic injection molded part must be taken into account. This is to ensure the powder
will bond electrostatically to the plastic before the UV curing process. Powder coating can provide a
tough, long-lasting finish on plastic injection molded parts.
Silk Screening.
Silk screening is used when more than one color is desired. This painting process also provides a
way to apply detailed designs, in multiple colors, onto the part. There are some limitations to where and
how silk screening can be used. Silk screening requires a flat surface where the paint will be applied.
The process involves making a screen — a thin plastic sheet with a screen. A negative of the design is
printed on the screen. The screen is laid on the part, paint is applied to the screen, and the screen is then
removed, leaving behind the design. A separate screen is required for each paint color.
Stamping.
Stamping is simple, quick, and affordable painting process for adding color to plastic injection
molded parts. A large, soft pad is created with a raised design that will pick up the paint, which is then
applied it to the plastic part. The pad is dipped in paint and then placed on the part. Removing the pad
leaves behind the desired design. Stamping is a versatile painting process that is more precise than spray
painting and has more options for placement than silk screening.
In-Mold Painting
– In-mold painting involves applying paint to the injection mold cavity before the plastic is
injected, allowing for color transfer via a chemical bond during the injection molding process. In-mold
painting creates exceptionally strong adhesion between the plastic and the paint. This is because the
paint moves and flexes with the part. In-mold painted parts are more resistant to chipping, cracking, and
flaking than those painted after injection molding.
As with all painting processes, in-mold painting requires the correct chemistry and procedures to obtain
optimal results. Virtually any color can be achieved in gloss or satin. Textured surfaces that resemble
wood or stone can also be created.
OBJECTIVES OF THE STUDY

 To provide an Asset Liability Management View of Integrated Risk Management

 To Provide a Theoretical View of Integrated Risk Management

 To Present a Proven Solution Set which Achieves Integrated Risk Management

 To identify the profitability of the business

SCOPE OF THE STUDY

 Asset and liability management (ALM) is a practice used by financial institutions to mitigate
financial risks resulting from a mismatch of assets and liabilities.
 By strategically matching of assets and liabilities, financial institutions can achieve greater
efficiency and profitability while also reducing risk.
 Some of the most common risks addressed by ALM are interest rate risk and liquidity risk.

STATEMENT OF THE PROBLEM

The issue of jointly managing assets and liabilities arises in a number of industries, such as
banking, insurance, and pension funds, as well as at the level of individual households. The definitions
of assets, liabilities, and risks are specific to each institution, but, very generally, assets may be viewed
as expected cash inflows, and liabilities as expected cash outflows. Although short-term risks arising
from the possibility that an institution's assets will not cover its short-term obligations are important to
assess and quantify, ALM is usually conducted from a long-term perspective. It therefore suffices to say
that, ALM is considered a strategic discipline that influences the financial performance as opposed to a
tactical one to take market position.

PERIOD OF THE STUDY

The project was detailed study on the topic “A STUDY ON ASSET AND LIABILITY
MANAGEMENT” within the time period of three months.

AREA OF THE STUDY

The area of the study is at “SEKISUI DLJM MOLDING COMPANY PVT LTD.,
SRIPERUMBUDUR, CHENNAI”
LIMITATION OF THE STUDY:

1. The study covers only the annual reports given for a period of five years which may not pot ray
the clear position of the firm.
2. The study is based only in secondary data. The management is reluctant in giving certain
financial data.

CHAPTERIZATION

CHAPTER I

The chapter deals with Introduction of the Study, Objectives of the study, Scope of the study,
Need of the study, Industry profile, Statement of problem, Company profile and Chapterization.

CHAPTER II

The chapter deals with Review of Literature

CHAPTER III

The chapter deals with Introduction, Description of Research, Source of Data and Tools for
analysis

CHAPTER IV

The chapter deals with Ratio analysis & Interpretation and Chart Representations.

CHAPTER V

The chapter deals with Finding, Suggestion and Conclusion

 CHAPTER II

REVIEW OF LITERATURE
 REVIEW OF LITERATURE

INTRODUCTION

A review of the literature serves as the foundation for research by assisting in the selection of the
most appropriate research methodology for the research topic. Researchers, as well as you, the reader,
and we, as authors, must first establish a concrete frame of reference before proceeding on their search
journey. Through the identification of essential topics in asset and liability management as well as
relevant ideas in asset and liability management, the literature evaluation aids in the development of a
framework for the research. As a result, this part includes numerous sections, including a definition and
idea of asset and liability management, a theoretical examination of asset and liability management, and
empirical research on the impact of asset and liability management on profitability

REVIEW OF LITERATURE

1. Uyemura (1991) in an interview with the Banker’s Magazine presented his view that Asset
Liability Management (ALM) is the function of the bank that attempts to reconcile risks and returns.
Trends such as the movement towards market value concepts, cash flow concepts and capital allocation
activities are all part of ALM responsibilities, and therefore, are deeply ingrained in some of the
fundamental trends in the banking environment.

2. P.M. joshi (1998) in a study on asset liability mismatch points out that ever since the
commencement of the reform process, among the various concept and terminologies that have swarmed
financial sector[16- 21]. Asset – liability mismatch stand out prominently with the liberalization process,
banks will have to be extremely watchful of the maturity pattern of their liabilities to avoid any danger
of mismatch when the fund are deployed in different in different manufacturing or trading units.

3. Dash and Pathak (2011), his survey proposed on linear model for asset-liability assessment.
They found public sector banks are having the best asset-liability management positions. in turn, they
found that public sector banks had a strong short-term liquidity position, but with lower profitability,
while private sector banks had a comfortable short-term liquidity position, balancing profitability.

4. Dr. Anurag Singh, Priyanka Tandon (2012) Asset-Liability Management (ALM) is one of
the important tools of risk management in commercial banks of India. The banking industry of India is
exposed to number of risk prevailed in the market. The research paper discusses about issues in asset
liability management.
 5. Sayeed (2012), attempted to examine the impact of asset and liability management on the
profitability high profitable and low profitable and private and public banks working in Bangladesh
applying statistical cost accounting (SCA) methods and found high earning banks experience higher
returns from their assets and lower returns from their liabilities than the low earning banks

6. Kanhaiya Singh (2013) analyzed the impact of measures and strategies banks undertook to
manage the composition of asset-liability and its impact on their performance in general and profitability
in particular There are serious attempts by banks to minimize the asset liability mismatch since the
implementation of RBI guidelines in 1997. The study suggested much scope for banks to improve
profitability by monitoring and reducing short term liquidity.

7. Prathap B N (2013) as their research indicated ALM in Indian banking system was
concerned, it is still in a nascent stage. Against this backdrop, the objective of the research was to study
and analyze the status of ALM approach in the Indian banking system. The study also indicates a strong
relationship between fixed assets and net worth for all groups of banks.

8. Petraityte (2013) states that ALM is a tool that combines several bank portfolios - asset,
liabilities, and the difference between the banks received and interest paid by 38 the bank. The main
ALM purpose is to connect different bank activities into a single unit, facilitating liquidity and balance
sheet management.

9. Kumar, (2014), studied on research, the most important factor which banks required to
manage now days is liquidity. This study analyzed short term liquidity and maturity gap of the banks in
order to decreases risk in banking sector. This survey help banks to reduce the risk which is very
essential for all financial institution in India.

10. Narayan Baser (2014) study indicates that Asset-Liability Management (ALM) was a
comprehensive and dynamic framework for measuring, monitoring and managing the market risk of a
bank. The study attempted to evaluate the changing perspectives of the banks in identifying and facing
the risks and maintaining Asset Quality so as to ensure profitability with the help of ALM techniques.
Amit Kumar

11. Meena and JoydipDhar (2014) research focused on the analysis and comparison of
liquidity ratios and asset liability management practiced in top three banks from public, private and
foreign sector in India. The analysis was based upon the liquidity ratios calculation and the
determination of maturity gap profiles for the banks under study. The results of this study suggested that
overall banks in India have very good short term liquidity position and all banks were financing their
short term liabilities by their long term assets.

12. Narayan Baser (2014) study indicates that Asset-Liability Management (ALM) was a
comprehensive and dynamic framework for measuring, monitoring and managing the market risk of a
bank. The study attempted to evaluate the changing perspectives 39 of the banks in identifying and
facing the risks and maintaining Asset Quality so as to ensure profitability with the help of ALM
techniques. Md. Salim

13. Uddin, & Anamul Haque (2016) There is no underlying fact to ignore the importance of
asset-liability management policy to ensure profitability and longrun sustainability of financial
institutions in any economy. The study has been conducted to investigate the impacts of ALM policy on
the profitability of sample banks working in Bangladesh. The rationality of this study is to observe the
degree of relationship of different assets and liability variables with profitability through applying
Statistical Cost Accounting (SCA) model using time series data from 2003 to 2014. To identify the
relationship among the variables. After analysis, Loans & Advances is found to have a significant
positive relationship with banks' profitability.

14. Mr. Chetan Shetty1 Ms. Pooja Patel 2, Ms. Nandini3 (2016) Assets and Liability
Management (ALM) is a systematic and dynamic process of planning, organising, coordinating and
controlling the assets and liabilities or in the sense management of balance sheet structure in such a way
the net earnings from interest are maximised within the overall risk preference of the banks

15. Prabhakar 1, Dr. S. Mathivannan 2, J. Ashok kumar 3 (2017) In India asset liability of
the banks’ balance sheet of commercial banks posed serious challenges as the banks, which have direct
impact on their operations, profitability and efficiency to compete with. The RBI of the country focused
and advised banks for taking concrete steps in minimizing the mismatch in the asset-liability
management. There had been many positive impacts of various strategies followed by banks in the last
one decade.

16. S. P. Joshi1 & Dr. R. V. Sontakay (2017) Asset and Liability Management (ALM) plays
key role in banking and finance industries. Any bank or financial industry will collapse without the use
of ALM tactics. Therefore, to survive in the market, the ALM analysis is carried out timely by these
industries to measure the value of risk factors involved. ALM analysis not only minimizes the risk but
also it helps to achieve the financial goals of the industry. In this paper, we present a survey of various
ALM techniques reported in the literature, aiming to financial stability. The survey helps for emerging
banks to decide the different ALM process used by the banking industries and to select the efficient
process out of the reported techniques.

17. Tee (2017) Evaluated on asset liability management and the profitability of listed banks in
Ghana. The purpose of this paper is to assess the impact of asset and liability management on the
profitability of listed banks in Ghana. Multiple linear regression has been applied by taking roa as the
dependent variable, and TAS (the total asset) and TLT (the total liability) representing the asset and
liability mix of the banks.

18. Oguzsoy and Guven (2017), risk management is concerned with supporting banks in
achieving a balance between risks and profitability; this is accomplished by a correct match between
assets and liabilities. The company is in a position to satisfy its short-term commitments on time and to
engage in successful enterprises as well. The purpose of ALM is not just to defend the organization from
risk. The increased security provided by ALM also opens the door to new chances for increasing net
worth. Interest rate risk (IRR) is a significant source of concern for a bank's net interest revenue and,
therefore, its profitability. If there is a considerable mismatch between the asset and liability interest rate
reset dates, changes in interest rates may have a major impact on a bank's net interest income (NII),
which can be significant. Changes in interest rates have an impact on the market value of a bank's equity
as well as its debt. Asset liability management will be assessed using credit risk, which is calculated by
dividing loan loss reserve by the total amount of assets and liabilities at risk

19. Moore, (2018) The management of assets and liabilities can be defined as the strategic
management of the balance sheet for risk optimization of liabilities and assets taking into account all
market risks. Asset liability management is comprehensive and dynamic framework used to measure,
monitor and manage the market risk of a bank. It is the management of structure of balance sheet in such
a manner that the net earnings from interest is maximized within the overall risk preference of the firm

20. Uyemura, (2018) The management of assets and liabilities seeks to maximize earnings,
adjusted for risk, given the long-term shareholders. Asset-liability management is a cost profit function
which takes into account the assumed risk, level of earnings and liquidity of the bank.

21. Rosen and Zenios, (2018) Asset-Liability Management addresses the risks arising due to
mismatch in asset liability structure emanating from either difference in liquidity or changes in interest.
In a narrower sense, it has been defined as the process that deals with interest rate risk management.
 22. Rajan and Nallari, (2018) A financial institution faces different types of risks such as credit,
liquidity, market and operational risk. Modern risk management follows an integrated risk management
approach for managing enterprise-wide risks assuming that different risks like interest rate risk, market
risk, and liquidity risk are all interrelated.

23. Dash and Pathak (2019), his survey proposed on linear model for asset-liability assessment.
They found public sector banks are having the best asset-liability management positions. in turn, they
found that public sector banks had a strong short-term liquidity position, but with lower profitability,
while private sector banks had a comfortable short-term liquidity position, balancing profitability.

24. Dr. Anurag Singh, Priyanka Tandon (2019) Asset-Liability Management (ALM) is one of
the important tools of risk management in commercial banks of India. The banking industry of India is
exposed to number of risk prevailed in the market. The research paper discusses about issues in asset
liability management.

25. Sayeed (2019), attempted to examine the impact of asset and liability management on the
profitability high profitable and low profitable and private and public banks working in Bangladesh
applying statistical cost accounting (SCA) methods and found high earning banks experience higher
returns from their assets and lower returns from their liabilities than the low earning banks

26. Petraityte (2019) states that ALM is a tool that combines several bank portfolios - asset,
liabilities, and the difference between the banks received and interest paid by the bank. The main ALM
purpose is to connect different bank activities into a single unit, facilitating liquidity and balance sheet
management.

27. Kumar, (2019), studied on research, the most important factor which banks required to
manage now days is liquidity. This study analyzed short term liquidity and maturity gap of the banks in
order to decreases risk in banking sector. This survey help banks to reduce the risk which is very
essential for all financial institution in India.

28. Md. Salim, & Anamul Haque (2019) investigated the impacts of ALM policy on the
profitability of sample banks workingin Bangladesh. The rationality of this study is to observe the
degree of relationship ofdifferent assets and liability variables with profitability through applying
Statistical Cost Accounting (SCA) model using time series data from 2003 to 2014 to identify the
relationship among the variables. After analysis, Loans & Advances is found tohave a significant
positive relationship with banks' profitability.

29. Ms. Pooja Patel, Ms. Nandini (2020) studies the Asset Liability Management in Indian
Bank balance sheet structure in such a way the net earnings from interest are maximized within the
overall risk preference of the banks. This study examined the effect of ALM on the Five Private Sector
Banks profitability in Indian financial market by using Gap Analysis and Ratio Analysis Technique. The
finding from the study revealed that banks have been exposed to liquidity risk.

30. Kumar, (2020), studied on research, the most important factor which banks required to
manage now days is liquidity. This study analyzed short term liquidity and maturity gap of the banks in
order to decreases risk in banking sector. This survey help banks to reduce the risk which is very
essential for all financial institution in India.