A Study on Asset and Liability Management With Reference to Automobile Industry

Financial institutions require Asset and Liability Management (ALM) to optimise risk-return trade-offs and guarantee long-term stability. The goal of this research is to evaluate TVS Credit Services Limited's ALM procedures, solvency, profitability, and financial situations and to offer suggestions for enhancement. The research uses cash flow analysis, ratio analysis, financial statement analysis, and the Altman Z-score model using annual reports and financial statements. The main conclusions point to a rising debt-to-equity ratio and a constant debt-to-asset ratio, both of which signify increased financial risk. While net profit margins have varied, profitability ratios show an upward trend in gross and operational profit margins. Better liquidity and financial stability are shown by cash flow analysis, notwithstanding difficulties with financial flow management. Persistent financial concerns are shown by the Altman Z-score. Monitoring debt levels, lowering debt dependence, preserving profitability through cost cutting, boosting operational effectiveness, and increasing asset utilisation are among the recommendations. To improve financial stability and reduce the danger of insolvency, thorough financial risk management and strategic debt management are advised. In order to achieve long-term growth and value generation, the research highlights opportunities for improvement in TVS Credit Services Limited's ALM procedures. Future studies might examine how macroeconomic variables affect ALM and compare their results to those of other academic institutions.