Working Capital

Management in Salvo
Chemical Industry
Limited



Report on
Working Capital Management in
Salvo Chemical Industry Limited
Submitted To:

Dr. Sheikh Abu Taher
Assistant Professor and course instructor of
Working Capital Management (FNB: 310)



Submitted by:

Mohsi Nihad Mosabbir Ornab

Student ID: 613



BBA Program
Batch: 02
Dhaka, Bangladesh Department of Finance & Banking
20 December 2013 Jahangirnagar University


Letter of Transmittal

December 20, 2013

Dr. Sheikh Abu Taher
Assistant Professor
Department of Finance & Banking
Jahangirnagar University
Savar, Dhaka-1342


Subject: Submission of report

Dear Sir:

Here is the report that you asked us to prepare on Working Capital Management on
Salvo Chemical Industry Limited
Preparing some careful analysis and consideration, we mainly focus on the key
aspects of the and working capital management analysis and some ratio analysis
on the financial statements and overall interrelation.

We hope that this report will be up to your expectation and draw your appreciation.
If you have any question or inquiry regarding this report, please call me. I am looking
forward to receiving your comments and suggestions on this report.

Sincerely Yours,

Mohsi Nihad Mosabbir Ornab
Student ID 613

2nd
Batch, B.B.A. Program
Department of Finance & Banking
Jahangirnagar University
Savar, Dhaka-1342

Acknowledgement

Assistance and co-operations in different people of different stages of our
report helped us to add more beauties to the report. At the event of the
report submission I sincerely remember all of them and express my gratitude
to them.
At the very beginning, we want to express our profound gratitude to our
respected course teacher Dr. Sheikh Abu Taher, to provide us with such a
nice opportunity to prepare this kind of a report on Working Capital
Management on Salvo Chemical Industry Limited which is listed in stock Market.
Without the flexibility that he has given to us, it would not be possible to finish
our research work.

We would also like to take this opportunity to express our wholehearted
gratitude to our fellow friends who offered encouragement, information,
inspiration and assistance during the course of preparing this report.
Sincerely yours,


Mohsi NIhad Mosabbir Ornab
(Student ID: 613)



Executive Summary
This report is on the working capital management on Salvo Chemicals
Industry Limited. Management is an art of anticipating and preparing for risks,
uncertainties and overcoming obstacles. An essential precondition for sound
and consistent assets management is establishing the sound and consistent
assets management policies covering fixed as well as current assets. In
modern financial management, efficient allocation of funds has a great
scope, in finance and profit planning, for the most effective utilization of
enterprise resources, the fixed and current assets have to be combined in
optimum proportions. Working capital may be regarded as the lifeblood of
the business. Without insufficient working capital, any business organization
cannot run smoothly or successfully and my analysis on the company, Salvo
Chemicals Industry Limited is a chemical producing company enlisted on
2002 by providing share in IPO of Bangladeshi stock market.
This report mainly focuses on the working capital and its overall management
in Salvo Chemical Industry Limited which is already enlisted in stock
exchange in Bangladesh. And I have also tried to show the financial position
of the company and its profitability and their interrelation with the working
capital. From the ratio analysis I have shown the companys financial position
and its profitability position and after that through the regression analysis I
have shown the correlation between the net income and profit margin of the
company with the working capital and different profitability ratio to identify
the trend or movement of the variables on the basis of those ratios. At the
same time the report focuses on the capital structure of the company and at
last the trend ratios clarify the trends in the recent years.