A SYNOPSIS ON
“LONG TERM INVESTMENT MANAGEMENT”
AT
“KESORAM CEMENT LIMITED”
BY
N. JAYASREE
(HALL TICKET NO: 2129-18-672-016)
Synopsis for project to be submitted for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
OSMANIA UNIVERSITY
2018-2020
AURORA’PG COLLEGE, MUSARAMBAGH
CHAPTER PLAN
CHAPTER-1
INTRODUCTION
SCOPE OF THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY OF THE STUDY
LIMITATIONS OF THE STUDY
CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
CHAPTER-5
SUGGESTION
FINDINGS & CONCLUSION
BIBLIOGRAPHY
INTRODUCTION
A long-term investment is an account on the asset side of a company's balance
sheet that represents the company's investments, including stocks, bonds, real estate, and
cash. Long-term investments are assets that a company intends to hold for more than a year.
The long-term investment account differs largely from the short-term investment account in
that short-term investments will most likely be sold, whereas the long-term investments will
not be sold for years and, in some cases, may never be sold.
Being a long-term investor means that you are willing to accept a certain amount of risk in
pursuit of potentially higher rewards and that you can afford to be patient for a longer period
of time. It also suggests that you have enough capital available to afford to tie up a set
amount for a long period of time.
Long-Term Investments Explained
A common form of long-term investing occurs when company A invests largely in company
B and gains significant influence over company B without having a majority of the voting
shares. In this case, the purchase price would be shown as a long-term investment.
When a holding company or other firm purchases bonds or shares of common stock as
investments, the decision about whether to classify it as short-term or long-term has some
fairly important implications for the way those assets are valued on the balance sheet. Short-
term investments are marked to market, and any declines in value are recognized as a loss.
However, increases in value are not recognized until the item is sold. Therefore, the balance
sheet classification of investment – whether it is long-term or short-term – has a direct impact
on the net income that is reported on the income statement.
Held to Maturity Investments
If an entity intends to keep an investment until it has matured and the company can
demonstrate the ability to do so, the investment is noted as being "held to maturity." The
investment is recorded at cost, although any premiums or discounts are amortized over the
life of the investment. A classic held to maturity investment was PayPal, for instance.
The long-term investment may be written down to properly reflect an impaired value.
However, there may not be any adjustment for temporary market fluctuations. Since
investments must have an end date, equity securities may be not be classified as held to
maturity.
Available for Sale and Trading Investments
Investments held with the intention of resale within a year, for the purpose of garnering a
short-term profit, are classified as current investments. A trading investment may not be a
long-term investment. However, a company may hold an investment with the intention to sell
in the future.
These investments are classified as "available for sale" as long as the anticipated sale date is
not within the next 12 months. Available for sale long-term investments are recorded at cost
when purchased and subsequently adjusted to reflect their fair values at the end of the
reporting period. Unrealized holding gains or losses are kept as "other comprehensive
income" until the long-term investment has been sold.
In evaluating such investment proposals, it is important to carefully consider the expected
benefits of investment against the expenses associated with it.
Organizations are frequently faced with Capital Budgeting decisions. Any decision that
requires the use of resources is a capital budgeting decisions. Capital budgeting is more or
less a continuous process in any growing concern.
NEED FOR THE STUDY
The Project study is undertaken to analyze and understand the Capital
Budgeting process in KESORAM CEMENT LIMITED, which gives mean
exposure to practical implication of theory knowledge.
To know about the company’s operation of using various Capital Budgeting
techniques.
To know how the company gets funds from various resources.
OBJECTIVES OF THE STUDY
To study the relevance of capital budgeting in evaluating the project for project
finance
To study the technique of capital budgeting for decision- making.
To understand the nature of risk and uncertainty
To study the long term investment decision profitability of the firm.
To evaluate the long term performs by return of capital employment cost of
capital and return on assets.
SCOPE OF THE STUDY
You can take investment decision only after analyzing entire process of investment
that starts with funds contribution and ends with getting expectations fulfilled.
The long term investment management rules allow you to formalize the process and
specify what condition or conditions need to be met to accept the project.
You will take decision only after ensuring that the required expectations in terms of
returns are ensured at any cost.
The study is conducted to understand the functioning of Equities in India Equity
market.
METHODOLOGY
To achieve aforesaid objective the following methodology has been adopted. The
information for this report has been collected through the primary and secondary sources.
Primary sources
It is also called as first handed information; the data is collected through
the observation in the organization and interview with officials. By asking question with the
accounts and other persons in the financial department. A part from these some information is
collected through the seminars, which were held by KESORAM CEMENT LIMITED.
Secondary sources
The secondary data have been collected through the various books, magazines,
brouchers & websites
LIMITATION OF THE STUDY:
Lack of time is another limiting factor, i.e. the schedule period of 8 weeks are not
sufficient to make the study independently regarding Capital Budgeting in
KESORAM CEMENT LIMITED..
The busy schedule of the officials in the KESORAM CEMENT LIMITED. is
another limiting factor. Due to the busy schedule officials restricted me to collect
the complete information about organization.
Non-availability of confidential financial data.
The study is conducted in a short period, which was not detailed in all aspects.
All the techniques of capital budgeting are not used in KESORAM CEMENT
LIMITED. Therefore it was possible to explain only few methods of capital
budgeting.
BIBLIOGRAPHY
Books Reffered
1 Prasana Chandra; Investment Analysis and Portfolio Management; Tata Mc Graw
Hill publication Ltd; fourth edition ;2012 .
2 William Sharpe & Gordon J Alexander; Investment; Prentice Hall publication Ltd; Sixth
edition; 2002.
3 Ronald J Jordon Donald E Fischer; Security Analysis and Portfolio Management;
Pearson publication Ltd; Sixth edition; 1995.
4 jhon m stemon &j.f stemon ; Economic evaluation and investment decision method;
fifteenth edition;2014.
5 s.chand; Investment management;v.k.Bhalla publication; eleventh edition;2004
Journal
1. Noel capon- journal of investment level annalisis of mutual fund investment decision-
1999
2. Michi Nishihara – journal of Optimal investment decision under
regulatory and environmental risks;2013
3. W.K.H. Fung, R.C. Stapleton – journal of Risk Analysis for Capital Investment
Decision;2012
4. Aaker DA & Jacobson R (1999) – ‘the role of risk in explaining differences in
profitability), accounting of management journal
Magazines
Business world
Business Today
The entrepreneur
News papers
Business standard
Business line
The mint
Websites
www.bseindia.com
www.kesoramcement.com
www.mutualfundsindia.com
www.crisil.com
o www.Google.com
o www.licofindia.com
