Working Capital Management
EXECUTIVE SUMMARY
1
EXECUTIVE SUMMARY
The title of the project is ‘A study on working capital management in Integral coach Factory, Chennai ’. Working capital management ensures that a company has sufficient cash flow in order to meet its short term obligations and operating expenses. Any company whatever the business it carries can ensure profitability only through working capital management. Through the management of the working capital at Integral coach Factory, Chennai, it assures the availability of funds to meet the required working capital or day to day operations of the firm. Implementing an effective working capital management system is an excellent way for many companies to improve their earnings.
It consists of general introduction to working capital and various other theory aspects under it. The study includes statement of the problem, objectives, the research methodology adopted and the limitations.
The details regarding the history, finance and inventory policies of the company were collected through discussion with the company officials. The secondary data collected from records, reports and profile of the company. The tools used in this study where Liquidity ratios, inventory turnover ratio, debtor’s turnover ratio, current asset turnover ratio, cash to current asset ratio, receivables to current assets ratio etc. were also used. The report also covers the structure, the analysis namely SWOT analysis of the organisation.
It includes the analysis and data interpretation done by using various relevant ratios with the help of tables and graphs. It gives the details on the findings, suggestions and conclusions based on the analysis done.
2
I.
INTRODUCTION TO THE STUDY
3
1.1 INDUSTRY PROFILE
The first railway on Indian sub-continent ran over a stretch of 21 miles from Bombay to Thane. The idea of a railway to connect Bombay with Thane,Kalian and the Thal and Bhore Ghats inclines first occurred to Mr. George Clark,
1
EXECUTIVE SUMMARY
The title of the project is ‘A study on working capital management in Integral coach Factory, Chennai ’. Working capital management ensures that a company has sufficient cash flow in order to meet its short term obligations and operating expenses. Any company whatever the business it carries can ensure profitability only through working capital management. Through the management of the working capital at Integral coach Factory, Chennai, it assures the availability of funds to meet the required working capital or day to day operations of the firm. Implementing an effective working capital management system is an excellent way for many companies to improve their earnings.
It consists of general introduction to working capital and various other theory aspects under it. The study includes statement of the problem, objectives, the research methodology adopted and the limitations.
The details regarding the history, finance and inventory policies of the company were collected through discussion with the company officials. The secondary data collected from records, reports and profile of the company. The tools used in this study where Liquidity ratios, inventory turnover ratio, debtor’s turnover ratio, current asset turnover ratio, cash to current asset ratio, receivables to current assets ratio etc. were also used. The report also covers the structure, the analysis namely SWOT analysis of the organisation.
It includes the analysis and data interpretation done by using various relevant ratios with the help of tables and graphs. It gives the details on the findings, suggestions and conclusions based on the analysis done.
2
I.
INTRODUCTION TO THE STUDY
3
1.1 INDUSTRY PROFILE
The first railway on Indian sub-continent ran over a stretch of 21 miles from Bombay to Thane. The idea of a railway to connect Bombay with Thane,Kalian and the Thal and Bhore Ghats inclines first occurred to Mr. George Clark,
Bibliography: “Management Accounting “by T.S.Reddyand Y.Hari Prasad Reddy “Financial Management”, Ninth edition, by I. M. Pandey. www.icf.indianrailways.gov.in 78