Working Capital Management
EXECUTIVE SUMMARY
Study Topic:
WORKING CAPITAL MANAGEMENT OF EASTMAN EXPORTS GLOBAL CLOTHING (P). Ltd.
Objectives of the Study:
To analyse the working capital management of the company. To determine the operating cycle of the unit (Spinning). To know the future need of working capital in the company. To render recommendations for effective management of working capital in the company.
Time Span:
A period of five financial year i.e. 2008-2011(3 Years) data has been used in the study. (Being a privately owned company access to the most recent data i.e. 2011-12 was not given)
Data Source:
Internal financial records of the company.
Research Methodology: Various methods were used to obtain the required data to perform the study. For clear understanding of various reports personal interviews were conducted with concerned personal. To understand the working capital management of the company various techniques such as : Operating cycle analysis Ratio analysis Common size statement Were used to analyse the overall position of working capital management of the company Suggestions were given based on the findings for better management of working capital at the end of the study.
1
CHAPTER - 1 THEORETICAL BACKGROUND OF WORKING CAPITAL MANAGEMENT
2
MEANING OF WORKING CAPITAL:
In simple words working capital means that which is issued to carry out the day to day operations of a business. Capital required for a business can be classified under two main categories Fixed capital Working capital
Every business needs funds for two purposes, for its establishment and to carry on its day to day operations. Long term funds are required to create production facilities through purchase of fixed assets such as plant and machinery, land, building, furniture etc. Investment in these assets represents that part of firm capital, which is blocked on a permanent or fixed basis called fixed capital. Funds are also needed for short
Study Topic:
WORKING CAPITAL MANAGEMENT OF EASTMAN EXPORTS GLOBAL CLOTHING (P). Ltd.
Objectives of the Study:
To analyse the working capital management of the company. To determine the operating cycle of the unit (Spinning). To know the future need of working capital in the company. To render recommendations for effective management of working capital in the company.
Time Span:
A period of five financial year i.e. 2008-2011(3 Years) data has been used in the study. (Being a privately owned company access to the most recent data i.e. 2011-12 was not given)
Data Source:
Internal financial records of the company.
Research Methodology: Various methods were used to obtain the required data to perform the study. For clear understanding of various reports personal interviews were conducted with concerned personal. To understand the working capital management of the company various techniques such as : Operating cycle analysis Ratio analysis Common size statement Were used to analyse the overall position of working capital management of the company Suggestions were given based on the findings for better management of working capital at the end of the study.
1
CHAPTER - 1 THEORETICAL BACKGROUND OF WORKING CAPITAL MANAGEMENT
2
MEANING OF WORKING CAPITAL:
In simple words working capital means that which is issued to carry out the day to day operations of a business. Capital required for a business can be classified under two main categories Fixed capital Working capital
Every business needs funds for two purposes, for its establishment and to carry on its day to day operations. Long term funds are required to create production facilities through purchase of fixed assets such as plant and machinery, land, building, furniture etc. Investment in these assets represents that part of firm capital, which is blocked on a permanent or fixed basis called fixed capital. Funds are also needed for short
References: AND BIBLIOGRAPHY Pandey I.M., Financial Management; Vikas Publishing House Pvt. Ltd. Chandra Prasanna; Financial Management: Theory and Practice; Tata McGraw Hill. Van Horne, Jame C; Fundamentals of Financial Management. Rustagi R.P.; Principles of Financial Management. Financial Records of Eastman Exports Global Clothing (P). Ltd 44