A Study on Asset and Liability Management of Star PVC Pipes and Fittings (P) Ltd
- July 10, 2018
- Posted by: RSIS
- Category: Management
International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue VI, June 2018 | ISSN 2321–2705
A Study on Asset and Liability Management of Star PVC Pipes and Fittings (P) Ltd
Dr. Salini B Nair1, Rehana Cross K2
1Associate Professor, Dept of Management Studies, Institute of Management & Technology, Pottore, Kerala, India
2 Management Student, Institute of Management & Technology, Pottore, Kerala, India
Abstract: Asset and Liability Management is used to balance the assets and liabilities of the organization. Asset and liability management is an ongoing process of formulating, implementing, monitoring and revising strategies related to assets and liabilities with an attempt to achieve financial objectives for a given set of risk tolerances and constraints. The company tries to keep proper balance between the assets and liabilities and increasing the growth and profitability. This study is conducted to analyze the asset and liability management with regarding the following variables such as profitability and liquidity position of STAR PVC pipes and fittings. Here the company wants to know whether these assets and liabilities are managed efficiently or not.
I. INTRODUCTION
Asset and Liability Management (ALM) is a strategic approach of managing the balance sheet dynamics in such a way that the net earnings are maximized. This approach is concerned with management of net interest margin to ensure that its level and riskiness are compatible with the risk return objectives. Asset and Liability Management (ALM) defines management of all assets and liabilities (both off and on balance sheet items) of an organization. It requires assessment of various types of risks and altering the asset liability portfolio to manage risk. Asset and Liability Management is a key driver of an organization’s profitability and long term sustainability and it is a portfolio management of assets and liabilities of an organization. This is a method of matching various assets with liabilities on the basis of expected rates of return and expected maturity pattern. In the context of ALM is defined as “a process of adjusting liability to meet loan demands, liquidity needs and safety requirements”. This will result in optimum value of the same time reducing the risks faced by them and managing the different types of risks by keeping it within acceptable levels.
