Working Capital Final Work

A STUDY ON
“WORKING CAPITAL MANAGEMENT “

QUEENS NRI HOSPITAL IN VIZIANAGARAM
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INDEX
S.NO NAME OF THE CHAPTER PAGE NO.
CHAPTER-1 INTRODUCTION
NEED OF THE STUDY

OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-3 THEORETICAL FRAMEWORK
CHAPTER-4 DATA ANALYSIS AND INTERPRETATIONS
CHAPTER-5 FINDINGS
SUGGESTIONS
CONCLUSION
BIBILIOGRAPHY
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ABSTRACT
The task is "A WORKING CAPITAL MANAGEMENT” QUEENS NRI HOSPITAL

PVT LTD The fundamental goal of the investigation is to discover the soundness, liquidity and
productivity of the organization.
The investigation is figured by the exploration plan for dissecting the gainfulness, soundness and
liquidity of the organization.
The examination configuration utilized for this investigation is explanatory research structure.
Auxiliary information is gathered from diaries, magazines, reports and books.
The factual instruments for the investigation are normal size proclamation, relative explanation,
pattern examination and proportion examination. Charts are additionally utilized for the
diagrammatic portrayal of the understanding. The investigation was principally founded on the
yearly reports of QUEENS NRI HOSPITAL PVT LTD.
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CHAPTER-1
INTRODUCTION
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INTRODUCTION
Working capital administration is worried about the issues that emerge in endeavoring to deal
with the present resources, the present liabilities and the interrelationship that exists between
them.
The term current resources allude to those benefits which in the standard course of business can
be, or will be, changed over into money inside one year without experiencing a decrease in worth
and without upsetting the activities of the firm. The real present resources are money, attractive
protections, records of sales and stock.
Current liabilities are those liabilities which are expected, at their origin, to be paid in the
common course of business, inside a year, out of the present resources or profit of the worry. The
fundamental current liabilities are creditor liabilities, charge payable, bank overdraft, and
remarkable costs.
The objective of working capital administration is to deal with the association's present resources
and liabilities so that a palatable degree of working capital is kept up. This is so supposing that
the firm can't keep up a palatable degree of working capital, it is probably going to wind up
wiped out and may even be constrained into insolvency. The present resources ought to be huge
enough to cover its present liabilities so as to guarantee a sensible edge of security.
The association between current resources and current liabilities is, in this manner, the primary
subject of the hypothesis of working administration.
IDEAS OF WORKING CAPITAL
There are two ideas of working capital:
1. Gross working capital.
2. Net working capital.
• Gross working capital alludes to the company's interest in current resources. Current
resources are the benefits which can be changed over into money inside a bookkeeping year and
incorporate money, transient protections, borrowers, (records of sales or book obligations)
charges receivable and (stock).
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Gross work capital = all out current resources
• Net working capital alludes to the contrast between current resources and current
liabilities, Current liabilities are those cases of outcasts which are relied upon to develop for
installment inside a bookkeeping year and incorporate leasers (creditor liabilities), charges
payable, and exceptional costs. Net working capital can be certain or negative. A positive net
working capital will emerge when current resources surpass current liabilities are in
overabundance of current resources.
Net working capital = current resources – current liabilities
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OBJECTIVE OF THE STUDY
 To study the sources and uses of the working capital.
 To study the liquidity position through various working capital related ratios.
 To study the working capital components such as receivables accounts,
Cash management, Inventory management.
 To make suggestions based on the finding of the study.
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NEED FOR THE STUDY
The degree to which benefits can be earned will normally depend, among different
diminishes, upon the greatness of the deals. An effective deals modified is, at the end of
the day vital for procuring benefits by any business undertaking. Be that as it may, deals
don't change over into money right away; there is constantly a period slack between the
closeout of merchandise and the receipt of money. There is, along these lines, a
requirement for working capital as present advantages for arrangement with the issue
emerging out of the absence of quick acknowledgment of money against products sold.
Consequently, adequate working capital is important to support deals movement.
Working capital administration is significant zone of fund in light of the fact that without
legitimate administration of working capital it is hard for association to run its activities
easily. So as to clarify the connection between working capital administration and
productivity various looks into had been completed in various pieces of the world
particularly in creating nations
 Conversion of money into stock;
 Conversion of stock into receivables;
 Change of receivables into money
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SCOPE OF THE STUDY
The extent of the investigation is distinguished after and during the examination is led. The
fundamental extent of the examination was to put into reasonable the hypothetical part of the
investigation into genuine work involvement. The investigation of working capital depends on
instruments like Ratio Analysis, Statement of changes in working capital. Further the
examination depends on most recent 5 years Annual Reports of QUEENS NRI HOSPITAL .
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METHODOLOGY
ESSENTIAL DATA:
The essential information is that information which is gathered crisp or direct, and for first time
which is unique in nature. In this examination the Primary information has been gathered from
Personal Interaction with Finance supervisor
OPTIONAL DATA:
The optional information are those which have effectively gathered and put away. Optional
information effectively get those auxiliary information from records, yearly reports of the
organization and so on. It will spare the time, cash and endeavors to gather the information.
The real wellspring of information for this task was gathered through yearly reports, benefit and
misfortune record of multi year time frame from 2014-2018 and some more data gathered from
web and content sources.
EXAMINING DESIGN
Examining unit : Financial Statements.
Examining Size : Last five years budget summaries.
Instrument Used for figurings: - MS-Excel.
Instruments USED FOR ANALYSIS OF DATA
The information were examined utilizing the accompanying monetary apparatuses. They are
• Ratio investigation.
• Statement of changes in working capital.
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LIMITATIONS OF THE STUDY
 We can't do correlations with different organizations except if and until we have the
information of different organizations on a similar subject.
 Only the printed information about the organization will be accessible and not the back–
end subtleties.
 Future plans of the organization won't be revealed to the learners.
 Lastly, because of deficiency of time it is preposterous to expect to cover every one of the
components and insights about the subject of study.
 The most recent monetary information couldn't be accounted for as the organization's
sites have not been refreshed.
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CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
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COMPANY PROFILE
Queens Nri Hospital in Vizianagaram. Hospitals with Address, Contact Number, Photos,
Maps. View Queens Nri Hospital, Vizianagaram. Queens Nri Hospital is a recognized name in patient
care. They are one of the well-known Hospitals in M G Road. Backed with a vision to offer the best in
patient care and equipped with technologically advanced healthcare facilities, they are one of the
upcoming names in the healthcare industry. Located in , this hospital is easily accessible by various means
of transport. A team of well-trained medical staff, non-medical staff and experienced clinical technicians
work round-the-clock to offer various services that include Dengue Fever Treatment , Viral Fever
Treatment , Diseases In Pregnancy , Bone Trauma , Fracture Treatment , Urology , Diabetes
Management , Uncontrolled Diabetes . Their professional services make them a sought after Hospitals in
Vizianagaram. A team of doctors on board, including specialists are equipped with the knowledge and
expertise for handling various types of medical cases.
At Queens Nri Hospital in M G Road, the various modes of payment accepted are Cash. You can reach
them at Near NCS Theatre, Srinivasa Nagar, Opposite Sbi Bank,5-1-11,M G Road,Vizianagaram Ho-
535002. This listing is also listed in Hospitals, General Physician Doctors, Gynaecologist & Obstetrician
Doctors.
Please scroll to the top for the address and contact details of Queens Nri Hospital at M G Road,
Vizianagaram.
Queens NRI Hospital is a Clinic in Vizianagaram Market, Vizianagaram. The clinic is visited by general
surgeon like Dr. Barla B SV Satya Kumar and Dr. K Santosh Kalyan. The timings of Queens NRI
Hospital are: Mon-Sun: 10:00-14:00, 15:00-20:00. Click on map to find directions to reach Queens NRI
Hospital. [s
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INDUSTRY PROFILE
Healthcare has become one of india’s largest sectors - both in terms of revenue and
employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,
telemedicine, medical tourism, health insurance and medical equipment. the indian healthcare
sector is growing at a brisk pace due to its strengthening coverage, services and increasing
expenditure by public as well private players.
Indian healthcare delivery system is categorised into two major components - public and private.
the government, i.e. public healthcare system comprises limited secondary and tertiary care
institutions in key cities and focuses on providing basic healthcare facilities in the form of
primary healthcare centres (phcs) in rural areas. the private sector provides majority of
secondary, tertiary and quaternary care institutions with a major concentration in metros, tier i
and tier ii cities.
India’s competitive advantage lies in its large pool of well-trained medical professionals. india is
also cost competitive compared to its peers in asia and western countries. the cost of surgery in
India is about one-tenth of that in the us or western europe.
market size the healthcare market can increase three fold to rs 8.6 trillion (us$ 133.44 billion) by
2022.
india is experiencing 22-25 per cent growth in medical tourism and the industry is expected to
reach us$ 9 billion by 2020.
there is a significant scope for enhancing healthcare services considering that healthcare
spending as a percentage of gross domestic product (gdp) is rising. the government’s expenditure
on the health sector has grown to 1.4 per cent in fy18e from 1.2 per cent in fy14. the government
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of india is planning to increase public health spending to 2.5 per cent of the country's gdp by
2025.
the hospital and diagnostic centers attracted foreign direct investment (fdi) worth us$ 6.09 billion
between april 2000 and march 2019, according to data released by the department of industrial
policy and promotion (dipp). some of the recent investments in the indian healthcare industry are
as follows: healthcare sector in india witnessed 23 deals worth us$ 679 million in h12018.
India and cuba have signed a memorandum of understanding (mou) to increase cooperation in
the areas of health and medicine, according to ministry of health and family welfare, government
of india. fortis healthcare has approved the de-merger of its hospital business with manipal
hospital enterprises. tpg and dr. ranjan pal could invest rs. 3,900 crore (us$ 602.41 million) in
manipal hospital enterprise.
some of the major initiatives taken by the government of india to promote indian healthcare
industry are as follows:
On September 23, 2018, government of india launched pradhan mantri jan arogya yojana
(pmjay), to provide health insurance worth rs 500,000 (us$ 7,124.54) to over 100 million
families every year.
In august 2018, the government of india has approved ayushman bharat-national health
protection mission as a centrally sponsored scheme contributed by both center and state
government at a ratio of 60:40 for all states, 90:10 for hilly north eastern states and 60:40 for
union territories with legislature. the center will contribute 100 per cent for union territories
without legislature.
the government of india has launched mission indradhanush with the aim of improving
coverage of immunisation in the country. it aims to achieve atleast 90 per cent immunisation
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coverage by december 2018 which will cover unvaccinated and partially vaccinated children in
rural and urban areas of india.
Following are the achievements of the government in the year 2017:
In 2017, the government of india approved national nutrition mission (nnm), a joint effort of
ministry of health and family welfare (mohfw) and the ministry of women and child
development (wcd) towards a life cycle approach for interrupting the intergenerational cycle of
under nutrition.
as of september 23, 2018, the world’s largest government funded healthcare scheme,
ayushman bharat was launched.
as of november 15, 2017, 4.45 million patients were benefitted from affordable medicines and
reasonable implants for treatment (amrit) pharmacies.
as of december 15, 2017, the government of india approved the national medical commission
bill 2017, it aims to promote area of medical education reform.
india is a land full of opportunities for players in the medical devices industry. india’s healthcare
industry is one of the fastest growing sectors and it is expected to reach $280 billion by 2020. the
country has also become one of the leading destinations for high-end diagnostic services with
tremendous capital investment for advanced diagnostic facilities, thus catering to a greater
proportion of population. besides, indian medical service consumers have become more
conscious towards their healthcare upkeep.
indian healthcare sector is much diversified and is full of opportunities in every segment which
includes providers, payers and medical technology. with the increase in the competition,
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businesses are looking to explore for the latest dynamics and trends which will have positive
impact on their business. the hospital industry in india is forecasted to increase to rs 8.6 trillion
(us$ 132.84 billion) by fy22 from rs 4 trillion (us$ 61.79 billion) in fy17 at a cagr of 16-17 per
cent.
India’s competitive advantage also lies in the increased success rate of indian companies in
getting abbreviated new drug application (anda) approvals. india also offers vast opportunities in
r&d as well as medical tourism. to sum up, there are vast opportunities for investment in
healthcare infrastructure in both urban and rural india.
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CHAPTER-3
THEORETICAL FRAMEWORK
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THEORETICAL FRAMEWORK
Capital is the keynote of economic development. In this modern age, the level of
economic development is determined by the proportion of capital available.
Meaning of Capital:
In the ordinary sense of the word Capital means initial investment invested by businessman or
owner at the time of commencing the business.
Capital (economics), a factor of production that is not wanted for itself but for its ability to
help in producing other goods.
Definition:
Capital is a factor of production with a specific, changeable value attached to it that could,
potentially, provide its owner with more wealth. It is an abstract economic concept, and, as such,
has many different definitions and classifications, but the unifying feature of capital is that it has
a certain value, so it in itself is a type of wealth, and it has the potential of generating more
wealth.
Features of Capital:
Capital has the following features.
1. Capital is a man made.
2. Capital is a perishable.
3. Capital is a human control possible.
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4. Capital is a mobile.
5. Capital is a human sacrifice.
6. Capital is a scarce.
Working capital is the life blood and nerve centre of a business. Just as circulation of blood is
essential in the human body for maintaining life, working capital is very essential to maintain the
smooth running of a business. No business can run successfully without an adequate amount of
working capital.
There is operative aspects of working capital i.e. current assets which is known as funds also
employed to the business process from the gross working capital Current asset comprises cash
receivables, inventories, marketable securities held as short term investment and other items
nearer to cash or equivalent to cash. Working capital comes into business operation when actual
operation takes place generally the requirement of quantum of working capital is determined by
the level of production which depends upon the management attitude towards risk and the factors
which influence the amount of cash, inventories, receivables and other current assets required to
support given volume of production.
Working capital management as usually concerned with administration of the current assets as
well as current liabilities. The area includes the requirement of funds from various resources and
to utilize them in all result oriented manner. It can be stated without exaggeration that effective
working capital management is the short requirement of long term success.
The importance of working capital management is indisputable; Business liability relies on its
ability to effective management of receivables, inventory, and payables. By minimizing the
amount of funds tied up in current assets. Firms are able to reduce financing costs or increase the
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funds available for expansion. Many managerial efforts are put into bringing non-optimal level
of current assets and liabilities back towards their optimal levels.
MEANING OF WORKING CAPITAL
Working capital means the funds (i.e.; capital) available and used for day to day operations
(i.e.; working) of an enterprise. It consists broadly of that portion of assets of a business which
are used in or related to its current operations. It refers to funds which are used during an
accounting period to generate a current income of a type which is consistent with major purpose
of a firm existence.
In Accounting:
DEFINITIONS:
Many scholars’ gives many definitions regarding term working capital some of these are
given below.
According to Weston & Brigham
“Working capital refers to a firm’s investment in short-term assets cash, short term
securities, accounts receivables and inventories.
Mead Mallott & Field
“Working capital means current assets”.
Bonnerille
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“Any acquisition of funds which increases the current assets increases working
capital for they are one and the same”.
Positive working capital means that the company is able to pay off its short-term liabilities
companies that have a lot of working capital will be more successful since they can expand and
improve their operations.
Negative working capital means that a company currently is unable to meet its short-term
liabilities with its current assets. . Companies with negative working capital may lack the funds
necessary for growth
OBJECTIVES OF WORKING CAPITAL MANAGEMENT
Effective management of working capital is means of accomplishing the firm’s goal of adequate
liquidity. It is concerned with the administration of current assets and current liabilities. It has the
main following objectives-
1. To maximize profit of the firm.
2. To help in timely payment of bills.
3. To maintain sufficient current assets.
4. To ensure adequate liquidity of the firms.
5. It protects the solvency of the firm.
6. To discharge current liabilities.
7. To increase the value of the firm.
8. To minimize the risk of business.
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THE NEED FOR THE WORKING CAPITAL
The need for working capital arises due to the time gap between production and realization of
cash from sales. Working capital is must for every business for purchasing raw-materials, semi
finished goods, stores & spares etc and the following purposes.
1. To purchase raw materials, spare parts and other component.
A manufacturing firm needs raw-materials and other components parts for the purpose of
converting them in to final products, for this purpose it requires working capital. Trading concern
requires less working capital.
2. To meet over head expenses.
Working capital is required to meet recurring over head expenses such as cost
of fuel, power, office expenses and other manufacturing expenses.
3. To hold finished and spare parts etc.
Stock represents current asset. A firm that can afford to maintain stock of required finished
goods, work in progress & spares in required quantities can operate successfully. So for that
adequate quantity of working capital is required.
4. To pay selling & distribution expenses.
Working capital is required to pay selling & distribution expenses. It includes cost of
packing, commission etc.
WORKING CAPITAL MANAGEMENT
Working Capital Management refers to management of current assets and current
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Liabilities. The major thrust of course is on the management of current assets .This
Is understandable because current liabilities arise in the context of current assets.
Working Capital Management is a significant fact of financial management. Its
Importance stems from two reasons:-
• Investment in current assets represents a substantial portion of total investment.
• Investment in current assets and the level of current liabilities have to be geared quickly
to change in sales. To be sure, fixed asset investment and long term financing are responsive to
variation in sales. However, this relationship is not as close and direct as it is in the case of
working capital components.
On The Basis of Concepts
1) Gross Working Capital
Gross working capital is the measure of assets put resources into different segments of current
resources. Current resources are those advantages which are effectively/promptly changed over
into money inside a brief timeframe state, a bookkeeping year. Current resources incorporates
Cash close by and money at bank, Inventories, Bills receivables, Sundry account holders,
momentary advances and advances.
This idea has the accompanying favorable circumstances:-
i. Financial administrators are significantly worried about the present resources.
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ii. Gross working capital gives the right measure of working capital at the opportune time.
iii. It empowers a firm to understand the best profit for its venture.
iv. It helps in the obsession of different zones of budgetary obligation.
v. It empowers a firm to plan and control reserves and to amplify the arrival on speculation.
For these points of interest, net working capital has turned into a progressively worthy idea in
money related administration.
2) Net Working Capital
This is the contrast between current resources and current liabilities. Current liabilities are those
that are relied upon to develop inside a bookkeeping year and incorporate loan bosses, charges
payable and extraordinary costs.
Working Capital Management is no uncertainty huge for all organizations, however its centrality
is improved in instances of little firms. A little firm has more interest in current resources than
fixed resources and subsequently current resources ought to be effectively overseen.
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The working capital needs increment as the firm develops. As deals develop, the firm needs to
put more in indebted individuals and inventories. The money director ought to know about such
needs and fund them rapidly.
I. On The Basis of Concepts
1) Permanent/Fixed Working Capital
Changeless or fixed working capital is least sum which is required to guarantee successful usage
of fixed offices and for keeping up the course of current resources. Each firm needs to keep up a
base degree of crude material, work-in-process, completed products and money balance. This
base degree of current assts is called perpetual or fixed working capital as this piece of working
is for all time hindered in current resources. As the business develop the prerequisites of working
capital additionally increments because of increment in current resources.
a) Initial working capital
At its beginning and during the developmental time of its tasks an organization must have
enough money store to meet its commitments. The requirement for introductory working capital
is for each organization to solidify its position.
b) Regular working capital
Standard working capital alludes to the base measure of fluid capital required to keep up the
dissemination of the capital from the money inventories to debt claims and from record
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receivables to back again money. It comprises of satisfactory money balance close by and at
bank, sufficient supply of crude materials and completed merchandise and measure of
receivables.
2) Temporary/Fluctuating Working Capital
Brief/Fluctuating working capital is the working capital expected to meet regular just as
unexpected prerequisites. It might be partitioned into two sorts.
a) Seasonal Working Capital
There are numerous lines of business where the volume of tasks are unique and thus the measure
of working capital fluctuate with the seasons. The capital required to meet the regular needs of
the venture is known as occasional Working capital.
b) Special Working Capital
The Capital required to meet any unique tasks, for example, tries different things with new items
or new procedures of generation and making inside publicizing effort and so on, are otherwise
called uncommon Working Capital.
Significance OF WORKING CAPITAL
1. Solvency of the business: Adequate working capital aides in keeping up the dissolvability
of the business by giving continuous of creation.
2. Goodwill : Sufficient measure of working capital empowers a firm to make brief
installments and makes and keep up the altruism.
3. Easy advances: Adequate working capital prompts high dissolvability and credit standing
can orchestrate advances from banks and other on simple and ideal terms.
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4. Cash limits: Adequate working capital additionally empowers a worry to profit money
limits on the buys and consequently decreases cost.
5. Regular Supply of Raw Material: Sufficient working capital guarantees standard supply
of crude material and constant generation.
6. Regular installment of compensations, compensation and other everyday duties: It
prompts the fulfillment of the workers and raises the confidence of its representatives, expands
their effectiveness, diminishes wastage and expenses and upgrades generation and benefits.
7. Exploitation of great economic situations: If a firm is having sufficient working capital
then it can abuse the positive economic situations, for example, obtaining its necessities in mass
when the costs are lower and possessions its inventories at greater expenses.
8. Ability to Face Crises: A worry can confront the circumstance during the downturn.
9. Quick and ordinary profit for ventures: Sufficient working capital empowers a worry to
pay brisk and standard of profits to its speculators and increases certainty of the financial
specialists and can bring more assets up in future.
10. High spirit: Adequate working capital brings a situation of protections, certainty, high
confidence which results in generally effectiveness in a business.
SUFFICIENCY OF WORKING CAPITAL:
Working capital ought to be sufficient to shield a business from the unfriendly impacts of
shrinkage in the estimations of current resources. It guarantees to a more noteworthy degree the
support of an organization's credit standing and accommodates such crises as strikes, floods, fire
and so on. It allows the conveying of inventories at a level that would empower a business to
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serve agreeably the requirements of its clients. It empowers an organization to work its business
all the more productively on the grounds that there is no postponement in acquiring materials and
so forth; in light of credit troubles.
Risks OF EXCESSIVE WORKING CAPITAL:
An excessive amount of working capital is as risky as excessively little of it. Exorbitant working
capital raises issues.
1. It outcomes in pointless amassing of inventories. Along these lines odds of stock
misusing, waste, burglary and misfortunes increment.
2. Indication of faulty credit approach and slack gathering period. Thus, it results in higher
frequency of awful obligations, antagonistically influencing benefits,
3. Makes the administration self-satisfied which ruffians in to administrative wastefulness.
4. The propensities of aggregating inventories to make a theoretical benefit, which will in
general change the profit arrangement, make it hard for the worry to adapt later on when it can't
make theoretical benefits.
ESTIMATION OF WORKING CAPITAL REQIUREMENTS
Dealing with the working capital involves balance. The organizations must have adequate assets
close by to meet its quick needs. The Bahety synthetic concoctions and minerals (pvt) Limited is
assembling focused association.
The accompanying viewpoints must be thought about while evaluating the working capital
necessities.
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They are:
1. Total expenses brought about on material, wages and overheads.
2. The time allotment for which crude material are to stay in stores before they are issued
for creation.
3. The length of the generation cycle or work-in-process, i.e., the time taken for
transformation of crude material into completed merchandise.
4. The length of offers cycle during which completed merchandise to be continued hanging
tight for deals.
5. The normal time of credit permitted to clients.
6. The measure of money required paying day-today costs of the business.
7. The normal measure of money required to make advance installments.
8. The normal credit period expected to be permitted by providers.
9. Time slack in the installment of wages and different costs.
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Working CYCLE OF WORKING CAPITAL:
CASH
RAW
MATERIALS
DEBTORS
The working capital cycle stores to the timeframe between the firm paying money for materials and so
FINISHED STOCK WORK-IN-PROGRESS
forth., this working capital otherwise called working cycle. Working capital cycle or working cycle
demonstrates the length or time between organizations paying for materials going into stock and getting
the money from offers of completed merchandise. The working cycle (Working Capital) comprises of the
accompanying occasions. Which proceeds for the duration of the life of business?
 Conversion of cash into raw materials.
 Conversion of raw materials into work in progress.
 Conversion of work in progress into finished stock.
 Conversion of finished stock into accounts receivables(Debtors)through sale and
 Conversion of account receivables into cash.
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FINANCING OF WORKING CAPITAL
Introduction:
After determining the level of working capital, a firm has to decide how it is to be financed.
In that BCM, it was financing the working capital from the following four common sources. They are,
1. SHARES:
The BCM has issued the equity shares for raising the funds. The Equity shares do not have any fixed
commitment charges and the dividend on these shares is to be paid subject to the availability of sufficient
funds. These funds have been injected from the company’s own personal resources and from the
members.
2. TRADE CREDIT:
The trade credit refer to the credit extended by the suppliers of goods in the normal course of
business. The firm has a good relationship with the trade creditors. So that suppliers send the goods to the
firm for the payment to be received in future as per the agreement or sales invoice. In this way, the firm
generates the short-term finances from the trade creditors. It is an easy and convenient method to finance
and it is informal and spontaneous source of finance for the firm.
3. BANK CREDIT:
Commercial banks play an important role in financing the trade & industry Bank provides short-
term, medium term & long term finance to an industrialist or a business man.
1. Loans: The BCM (PVT) LTD., has taken loan from the commercial bank for working capital
requirement for a certain period at certain interest rate.
2. Cash Credit / Overdrafts: Under cash credit/overdraft from/arrangement of bank finance, the
bank specifies a determined borrowings/credit limit. The borrower can draw/borrow up to the
stipulated credit/overdraft limit. Within the specified limit/ line of credit, any number of
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drawals/drawings are possible to the extent of his requirement periodically. This form of financing of
working capital is highly attractive to the borrowers because, firstly, it is flexible in that although
borrowed funds are repayable on demand, banks usually do not recall cash advances/roll them over
and, secondly, the borrower has the freedom to draw the amount actually outstanding. However, cash
credit/overdraft is inconvenient to the banks and hampers credit planning.
4. CUSTOMER ADVANCES:
The BCM (pvt) Limited follow the practice of collecting advance money from the customers as
soon as orders are placed and before the actual delivery of the goods. Such an advance received from the
customers constitutes one of the short-term sources of finance.
Certain % of the price of the goods to be sold to the customers is collected in the of an advance. Seller can
utilize the advance money so collected for meeting these urgent financial obligations.
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DETERMINANTS OF WORKING CAPITAL REQUIREMENTS
In order to determine the amount of working capital needed by the firm a number of factors have to be
considered by finance manager. These factors are explained below.
1. Nature of Business:
The Nature of the business effects the working capital requirements to a great
extent. For instance public utilities like railways, electric companies, etc. need very little
working capital because they need not hold large inventories and their operations are
mostly on cash basis, but in case of manufacturing firms and trading firms, the
requirement of working capital is sufficiently large as they have to invest substantially
in inventories and accounts receivables .
BCM is a production firm, there for working capital required is more in period of production as
compared to other period.
2. Production Policies:
The production policies also determine the Working capital requirement. Through the
production schedule i.e. the plan for production, production process etc.
The BCM has small production process.
3. Credit Policy:
The credit policy relating to sales and affects the working capital.
The credit policy influence the requirement of working capital in two ways:
1. Through credit terms granted by the firm to its customers/buyers.
2. Credit terms available to the firm from its creditors.
34
The credit terms granted to customers have a bearing on the Magnitude of Working capital by
determining the level of book debts. The credit sales results is higher book debts (re available)
higher book debt means more Working capital.
On the other hand, if liberal credit terms are available from the suppliers of goods [Trade creditors], the
need for working capital is less. The working capital requirements of business are, thus, affected by the
terms of purchase and sale, and the role given to credit by a company in its dealings with Creditors and
Debtors.
In BCM company raw materials are purchased with a credit or cash and finished goods are sold on cash
basis and also credit basis.
4. Changes in Technology:
Technology used in manufacturing process is mainly determined need of working capital.
Modernize technology needs low working capital, where as old and traditional technology needs greater
working capital.
5. Size of the Business Unit:
The size of the business unit is also important factor in influencing the working capital needs of a
firm. Large Scale Industries requires huge amount of working capital compared to Small scale Industries.
6. Growth and Expansion:
The growth in volume and growth in working capital go hand in hand, however, the change may
not be proportionate and the increased need for working capital is felt right from the initial stages of
growth.
7. Dividend Policy:
35
Another appropriation of profits which has a bearing on working capital is dividend payment.
Payment of dividend utilizes cash while retaining profits acts as a source as working capital Thus working
capital gets affected by dividend policies.
The BCM follows liberal dividend policy will require more working capital than company that follows a
strict dividend policy.
8. Supply Conditions:
If supply of raw material and spares is timely and adequate, the firm can get by with a
comparatively low inventory level. If supply is scarce and unpredictable or available during particular
seasons, the firm will have to obtain raw material when it is available. It is essential to keep larger stocks
increasing working capital requirements.
9. Market Conditions:
The level of competition existing in the market also influences working capital requirement.
When competition is high, the company should have enough inventories of finished goods to meet a
certain level of demand. Otherwise, customers are highly likely to switch over to competitor’s products. It
thus has greater working capital needs. When competition is low, but demand for the product is high, the
firm can afford to have a smaller inventory and would consequently require lesser working capital. But
this factor has not applied in these technological and competitive days.
10. Business Cycle:
The working capital requirements are also determined by the nature of the business cycle.
Business fluctuations lead to cyclical and seasonal changes which, in turn, cause a shift in the working
capital position, particularly for temporary working capital the variations in the business conditions may
be in two directions:
36
PARTS OF WORKING CAPITAL
The parts of working capital are:
 CASH MANAGEMENT:
Money is the significant current resource for the activity of the business. Money is the
Essential info expected to keep the business running in the nonstop premise, it is additionally a
definitive yield expected to be acknowledged by selling or item fabricated by the firm.
The firm should keep adequate money neither more nor less. Money deficiency will disturb the
company's assembling tasks while over the top money will essentially stay perfect without
contributing anything towards the association's benefit. Therefore a noteworthy capacity of the
monetary chief is to keep up a sound money position. Money is the cash, which a firm can
dispense quickly with no limitation. The term money incorporates coins, cash and checks held by
the firm and parities in its financial balance.
Requirement FOR HOLDING CASH
The requirement for holding Cash emerges from an assortment of reasons which are,
1. Transaction Motive:
An organization is continually going into exchanges with different elements. While a portion of
these exchanges may not result in a prompt inflow/outpouring of money (E.g. Credit buys and
Sales), different exchanges cause prompt inflows and surges. So firms keep a specific measure of
money in order to manage routine exchanges where prompt money installment is required.
2. Precautionary Motive:
Possibilities have a propensity for springing up all of a sudden. An abrupt fire may break out,
mishaps may occur, workers may go on a strike, banks may present bills sooner than anticipated
or the account holders may make installments sooner than justified. The organization must be set
up to meet these possibilities to limit the misfortunes. For this reason organizations for the most
part keep up some sum as Cash.
37
1. Speculative Motive:
Firms additionally keep up money adjusts so as to exploit openings that don't happen over the
span of routine business exercises. For instance, there might be an abrupt reduction in the cost of
Raw Materials which isn't relied upon to keep going long or the firm might need to put resources
into protections of different organizations when the cost is perfect. These exchanges are
absolutely of theoretical nature for which the organizations need money.
Destinations OF CASH MANAGEMENT
Essential object of the money the executives is to keep up an appropriate harmony among
liquidity and benefit. So as to ensure the dissolvability of the firm and furthermore to expand the
productivity. Following are a portion of the destinations of money the board.
1. To meet everyday money necessities.
2. To accommodate unforeseen installments.
3. To amplify benefits on accessible venture openings.
4. To ensure the dissolvability of the firm and develop picture.
5. To limit operational expense of money the executives.
6. To guarantee compelling usage of accessible money assets.
Money BUDGETING
Money planning is a significant instrument for controlling the money. It is set up for future
period to know the assessed measure of money that might be required. Money spending plan is
an announcement of evaluated money inflows and surges identifying with a future period. It
gives data about the measure of money expected to be gotten and the measure of money expected
to be paid out by a firm for a given period.
Money planning shows most likely money receipts and money installments for an under thought.
It is an announcement of planned money receipts and money installment bringing about either
positive or negative money or for a week or for a year, etc.
38
 RECEIVABLES MANAGEMENT:
Receivables or indebted individuals are the a standout amongst the most significant pieces of the
current
Resources which is made whether the organization offers the completed merchandise to the
client however not get the money for the equivalent right away. Exchange credit emerges when
an organization deals its items or administrations on layaway and does not get money right away.
It is a basic advertising apparatus, going about as an extension for the snapshot of merchandise
through creation and appropriation stages to clients.
The receivables incorporate three attributes
1) It include component of hazard which ought to be cautiously examination.
2) It depends on monetary worth. To the purchaser, the monetary incentive in products or

administrations takes a break of offer, while merchant anticipates that a comparable worth should
be gotten later on.
3) It infers futurity. The money installment for products or serves gotten by the purchaser will be
made by him in a future period.
An organization gives exchange credit to shield its deals from the contenders and to pull in the
potential clients to purchase its items at positive terms. Exchange credit makes receivables or
book obligations that the organization is acknowledged to gather sooner rather than later. The
clients from who receivables must be gathered are called as "Exchange Debtors" receivables
comprise a generous position of current resources.
Allowing credit and attributing account holders, adds up to the hindering of the organization's
assets. The interim between the date of offer and the date of installment must be financed out of
working capital as significant sums are tied up in exchange indebted individuals. It needs
cautious examination and appropriate administration.
In BCM ltd., they are selling the products on money premise and furthermore on layaway
premise.
39
 INVENTORY MANAGEMENT:
Inventories are products held for inevitable deal by a firm. Inventories are in this manner one of
the real components, which help the firm in acquiring the ideal degree of offers. Inventories
incorporates crude materials, semi completed merchandise, completed items.
In organization there ought to be an ideal degree of speculation for any advantage, regardless of
whether it is plant, money or inventories. Again lacking upsets generation and causes
misfortunes in deals. Effective administration of stock ought to at last outcome in riches
amplification of proprietor's riches. It suggests that while the administration should attempt to
seek after money related target of turning stock as fast as could be allowed, it ought to in the
meantime guarantee adequate inventories to fulfill generation and deals request.
The fundamental destinations of stock administration are operational and monetary.
The operational imply that implies that the materials and extras ought to be accessible in
adequate amount with the goal that work isn't upset for need of stock. The money related target
implies that interests in inventories ought not stay perfect and least working capital ought to be
secured it.
• To monitor material expense with the goal that they contribute in decreasing expense of
generation and generally buys.
• To limit misfortunes through weakening, pilferage, wastages and harms.
• To structure appropriate association for stock control with the goal that administration.
Obvious record capacity ought to be fixed at different degrees of the association.
• To guarantee ceaseless stock control with the goal that materials appeared stock records
ought to be really lying in the stores.
40
CHAPTER-4
DATA ANALYSIS
41
STATEMENT OF CHANGES IN WORKING CAPITAL:
TABLE 1: STATEMENT OF CHANGES IN WORKING CAPITAL FOR THE YEAR

2018-2017 QUEENS NRI HOSPITAL
Particulars As on 31-3- 2018 As on 31-3- Increase Decrease

2017
CURRENT ASSETS
Inventories 2001305.00 1532455.00 __ 468850.00
Sundry debtors 1438810.00 2201381.00 762571.00 __
Cash & Bank balance 503667.00 493742.00 __ 9925.00
Other current assets 134364.00 148822.00 14458.00 __
Loans and Advances 193081.00 186699.00 __ 6382.00
(A)Total Current Assets 4271227.00 4563099.00
CURRENT
LIABILITIES
Sundry creditors 1606195.00 1673515.00 __ 67320.00
Provisions 511561.00 368028.00 143533.00 __
(B)Total Current 2117756.00 2041543.00

Liabilities
(A)-(B) Net Working 2153471.00 2521556.00

Capital
Increase in Working 368085.00* __ __ 368085.00*

Capital
TOTAL 2521556.00 2521556.00 920562.00 930487.00
42
INTERPRETATION:
In the above table, it is seen that during the year 2018 and 2017-16 there was a net increment in
working capital of Rs 368085.00. It shows a sufficient working capital in QUEENS NRI
HOSPITAL.
1. Increase current resources, for example, Sundry indebted individuals by Rs 762571.00,
other current resources by Rs 14458.00. What's more, decline in Inventories by Rs 468850.00,
Cash and Bank balance by Rs 9925.00, Loans and Advances by Rs 6382.00.
2. Increase in current liabilities, for example, in Sundry lenders by Rs 67320.00 and decline
in Provisions by Rs 143533.00.
43
Table 2: Statement of Changes in Working Capital for the Year 2017-2016
QUEENS NRI HOSPITAL
Effect on working capital
Particulars As on 31-3- As on 31-3-2016
2017 Increase Decrease
CURRENT
ASSETS
Inventories 1532455.00 2161071.00 628616.00 __

Sundry debtors 2201381.00 4958527.00 2757146.00 __
Cash & Bank balance 493742.00 1205660.00 711918.00 __
Other current assets 148822.00 78260.00 __ 70562.00
Loans and Advances 186699.00 1196128.00 1009429.00 __
(A)Total Current
Assets 4563099.00 9599646.00
CURRENT
LIABILITIES
Provisions 368028.00 395638.00 __ 27610.00
(B)Total Current 2041543.00 3887765.00

Liabilities
(A)-(B) Net Working 2521556.00 5711881.00

Capital

Capital
TOTAL 5711881.00 5711881.00 5107109.00 5107109.00
44
INTERPRETATION:
In the above table, it is seen that during the year 2017-16and 2016-15 there was huge net increase in
working capital by Rs 3190325.00 As Compare to 2004-05 and 2005-06.
1. There is Increase in current assets such as Inventories by Rs 628616.00, Sundry debtors by Rs

2757146.00, Cash & Bank balance by Rs 711918.00, Loans and Advances by Rs 1009429.00. And
decrease in other current assets by Rs 70562.00.
2. There is Increase in current liabilities such as Sundry creditors by Rs 1818612.00, Provisions by Rs
27610.00.
45
3. Table 3: Statement of Changes in Working Capital for the Year 2016-2015
QUEENS NRI HOSPITAL

Particulars As on 31-3- As on 31-3-
2016 2015 Increase Decrease
CURRENT ASSETS
Inventories 2161071.00 3336430.00 1175359.00 __
Sundry debtors 4958527.00 1805948.00 __ 3152579.00
CURRENT LIABILITIES
Sundry creditors 3492127.00 2649781.00 842346.00 __
Provisions 395638.00 179298.00 216340.00 __
(B)Total Current Liabilities 3887765.00 2829079.00
(A)-(B) Net Working Capital 5711881.00 6248538.00
__ __
Increase in Working Capital 536657.00* 536657.00*
TOTAL 6248538.00 6248538.00 3861744.00 3861744.00
INTERPRETATION:
In the above table, it is seen that during the year 2016-15 and 2015-14 there was likewise net increment in
working capital by Rs 536657.00. As contrast with 2017-16and 2016-15.
This is on the grounds that
1. There is Increase in current resources, for example, Inventories by Rs 1175359.00, other current
resources by Rs 111423.00, Loans and Advances by Rs 1516276.00 and decline in Sundry account
holders by Rs 3152579.00, Cash and Bank balance by Rs 113618.00.
2. There is Decrease in current liabilities, for example, Sundry lenders by Rs 842346.00, Provisions
by Rs 216340.00.
46

2015 2014
Increase Decrease
CURRENT ASSETS
Inventories 3336430.00 2622901.00 __ 713529.00
Sundry debtors 1805948.00 3787274.00 1981326.00 __
CURRENT LIABILITIES
Provisions 179298.00 1230900.00 __ 1051602.00

__ __
TOTAL 7113529.00 7113529.00 2667512.00 2667512.00
47
INTERPRETATION:
In the above table, it is seen that during the year 2004-05 and 2017-16 there was a net increment
in working capital of Rs 368085.00. It demonstrates a satisfactory working capital in QUEENS
NRI HOSPITAL.
This is a direct result of
1. Increase current resources, for example, Sundry account holders by Rs 762571.00, other
current resources by Rs 14458.00. Also, decline in Inventories by Rs 468850.00, Cash and Bank
balance by Rs 9925.00, Loans and Advances by Rs 6382.00.
2. Increase in current liabilities, for example, in Sundry leasers by Rs 67320.00 and decline
in Provisions by Rs 143533.00.
48

2014 2013
Increase Decrease
CURRENT ASSETS
Inventories 2622901.00 2360611.00 __ 262290.00
Sundry debtors 3787274.00 4355365.00 568091.00 __
Cash & Bank balance 1720815.00 1978938.00 258123 .00 __
CURRENT LIABILITIES
Provisions 1230900.00 1107810.00 123090.00 __
Increase in Working Capital 667478.00* __ __ 667478.00*
TOTAL 8270981.00 8270981.00 1349239.00 1349239.00
49
NET WORKING CAPITAL
NET WORKING CAPITAL = CURRENT ASSETS-CURRENT LIABILITIS
Years Current Asset Current NWC

Liabilities
2018-17 4563099.00 2041543.00 2521556.00
2017-16 9599646.00 3887765.00 5711881.00
2016-15 9077617.00 2829079.00 6248538.00
2015-14 11003428.00 3889899.00 7113529.00
2014-13 11946666.00 4165659.00 7781007.00
INTERPRETATION:-
The above outline demonstrates that during the year 2017-16the organization has 2521556.00
N.W.C. In the year 2016-15 tremendous increment in the N.W.C is 5711881.00 and in the year
2015-14 the organization has 6248538.00 N.W.C in the year 2014-13 the organization has
7113529.00 N.W.C the N.W.C of the organization is expanding contrasted with the earlier years,
in the year 2013-12 the organization has 7781007.00 N.W.C this implies the organization in an
inspirational position and N.W.C has improved shift quick when contrasted with the earlier years
which show liquidity Position of the QUEENS NRI HOSPITAL has in every case more and
adequate working capital accessible to satisfy its present liabilities.
50
1. CURRENT RATIO:-
Current Ratio: Current Assets
Current Liabilities
Year Current Assets Current Liabilities Current

Ratio
2018-17 4563099 2041543 2.23
2017-16 9599646 3887765 2.47
2016-15 9077617 2829079 3.21
2015-14 11003428 3889899 2.83
2014-13 11946666 4165659 2.87
INTERPRETATION:-
It is seen from the above graph that during the year 2017-16the current proportion was
2.23, during the year 2016-15 it was 2.47 and in the year 2015-14 it was 3.21. This demonstrates
the present proportion expands each year however in the year 2014-13 the present proportion was
dropped to 2.83 because of increment in current liabilities. In the year 2013-12 the present
proportion has increments 2.87. The present proportion is over the standard proportion i.e., 2:1.
Consequently it very well may be said that there is sufficient current resources in QUEENS NRI
HOSPITAL to meet its present liabilities.
51
2. ACID TEST RATIO / QUICK RATIO / LIQUIDITY RATIO:-
Quick Ratio = Quick Assets (current assets - Inventory)
Current Liabilities
Year Current Assets Inventories Quick Assets Current Liabilities Quick Ratio
4563099.00 1532455.00 3030644.00 2041543.00 1.48

2018-17
9599646.00 2161071.00 7438575.00 3887765.00 1.91
2017-16
9077617.00 3336430.00 5741187.00 2829079.00 2.03
2016-15
11003428.00 2622901.00 8380527.00 3889899.00 2.15
2015-14
11946666.00 2360611.00 9586055.00 4165659.00 2.30
2014-13
INTERPRETATION:-
During the year 2017-16 the brisk proportion was 1.48, in the year 2016-15 it increments to 1.91
This demonstrates the organization keeps up palatable snappy proportion, in the year 2015-14 the speedy
proportion increments to 2.03, in the year 2014-13 it increments 2.15, in the year 2013-12 it increments
2.30, because of increment in fast resources. The speedy proportion is over the standard proportion i.e.,
1:1. Subsequently it demonstrates that the liquidity position of the organization is satisfactory.
52
ABSOLUTE LIQUID RATIO:-
Absolute Liquidity Ratio = Cash & Bank Balance
Current Liabilities
Years Cash & Bank Balance Current Liabilities Absolute Liquidity Ratio
493742.00 2041543.00 0.24

2018-17
1205660.00 3887765.00 0.31
2017-16
1033152.00 2829079.00 0.36
2016-15
1720815.00 3889899.00 0.44
2015-14
1978938.00 4165659.00 0.47
2014-13
INTERPRETATION:
1. During the year 2017-16the Absolute clamminess arrangement was 0.24, during the
year 2016-15 it was 0.31 and in the year 2015-14 it was 0.36, in the year 2014-13 it was
0.44 This shows the Absolute clamminess arrangement increases every year but it is
53
beneath the accepted ratio. In the year 2013-12 the Absolute clamminess arrangement has
increases 0.47
54
DEBTORS COLLECTION PERIOD :-
Average Collection Period = Days in a Year
Debtors Turnover Ratio
Year Days in a Year Debtors Turnover Ratio Debtors Collection Period
365 8.88 Times 41.10 Days

2018-17
365 6.32 Times 57.75 Days
2017-16
365 15.44 Times 23.64 Days
2016-15
365 10.16 Times 35.92 Days
2015-14
365 9.72 Times 37.55 Days
2014-13
INTERPRETATION:
Debt collection period changing over the years. It was 41.10 days in the year 2005-06. It
increased to 57.75 days in the year 2016-15, but in the year 2015-14 it decreased to 23.64 days. There was
a subsequent increase in the year 2014-13 and 2013-12 to 35.92 days and 37.55 days respectively.
This shows the inefficient credit collection performance of the company.
55
1. CREDITORS/ACCOUNTS PAYABLES TURNOVER RATIO:-
Creditors Turnover Ratio = Net Purchases
Average Creditors
Year Net Purchases Average Creditors Creditors Turnover Ratio
2017-16 11691090.00 1673515.00 6.98 Times
2016-15 17778675.00 3492127.00 5.09 Times
2015-14 18896828.00 2649781.00 7.13 Times
2014-13 23605773.00 2658999.00 8.88 Times
2013-12 27146639.00 3057849.00 8.88 Times
INTERPRETATION:
It is clear that creditor turnover ratio changing over the years. It was 6.98 times in the year 2005-06.
It decreased to 5.09 times in the year 2016-15, there was a subsequent increase in the year 2015-14 and
2014-13 to 7.13 times and 8.88 times respectively. In the year 2013-12 it is same as compared to 2014-
13. It shows that company has making prompt payment to the creditors.
56
CHAPTER—5
FINDINGS, SUGGESTIONS, CONCLUSIONS
57
FINDINGS.
Working basic of the QUEENS NRI HOSPITAL . was accretion and assuming absolute alive
basic per year.
 The QUEENS NRI HOSPITAL has college accepted and quick ratios are i.e., 2.87 and 2.30
respectively.
 Inventory about-face arrangement is actual low in the year 2015-14. In the year 2014-13 it has
added by 6.32 times as compared to 2015-14 and in the endure year 2013-12 it has afresh added
by 3.26 times as compared to 2014-13.
 Debtor’s about-face arrangement is actual top in the year 2015-14. In the year 2014-13 it has
decreased by 5.28 times as compared to 2015-14 and in the endure year 2013-12 it has afresh
decreased by 0.44 times as compared to 2014-13.
 Creditor’s about-face arrangement has added in the years of 2015-14 and 2014-13. It is
aforementioned in the endure year 2013-12 as compared to 2014-13.
 Working basic about-face arrangement is actual low in the year 2015-14. In the year 2014-13 it
has added by 0.95 times as compared to 2015-14 and in the endure year 2014-15 it has afresh
added by 0.03 times.
58
SUGGESTIONS.
Working basic of the aggregation has accretion every year. Profit aswell accretion every year this
is acceptable assurance for the company. It has to advance it further, to run the business
continued term.
 The Current and quick ratios are about up to the accepted requirement. So the Alive basic
management. QUEENS NRI HOSPITAL . is satisfactory and it has to advance it further.
 The aggregation has acceptable alive basic and has bigger clamminess position. By able
utilizing this concise capital, again it should access the turnover.
 The aggregation should yield basic measures for advance and accession funds from
receivables and to abate the bad debts.
 The aggregation has acceptable alive basic and has bigger clamminess position. By able
utilizing this concise capital, again it should access the turnover.
 Creditor’s about-face arrangement has accretion from 2015-14 to 2014-13 and in the endure
year 2014-15 it is aforementioned as compared to 2014-13. Aggregation is authoritative alert
transaction to its creditors. This is acceptable assurance for the company. On-time transaction to
suppliers will access the believability of the firm. It has advance it added to survive in the
market.
 The aggregation is utilizing alive basic finer this is acceptable for the company. It has to
advance it further.
59
CONCLUSIONS
The abstraction on alive basic administration conducted in QUEENS NRI HOSPITAL . to assay
the banking position of the company. The company’s banking position is analyzed by application
the apparatus of anniversary letters from 2017-16 to 2013-12.
The banking cachet of QUEENS NRI HOSPITAL . is good.
In the endure year the account about-face has increased, this is acceptable assurance for the
company.
The company’s clamminess position is actual acceptable With attention to the investments in
accepted assets there are able funds invested in it. Care should be taken by the aggregation not to
accomplish added investments in accepted assets, as it would block the funds, which could
contrarily be finer activated for some advantageous purpose. On the whole, the aggregation is
affective advanced with accomplished management
60
BALANCE SHEETS
Particulars As on 31-3- 2018 As on 31-3- Increase Decrease

2017
CURRENT ASSETS
Inventories 2001305.00 1532455.00 __ 468850.00
Sundry debtors 1438810.00 2201381.00 762571.00 __
CURRENT
LIABILITIES
Provisions 511561.00 368028.00 143533.00 __
(B)Total Current 2117756.00 2041543.00

Liabilities
(A)-(B) Net Working 2153471.00 2521556.00

Capital

Capital
TOTAL 2521556.00 2521556.00 920562.00 930487.00
61
Particulars As on 31-3-2017 As on 31-3-2016
Increase Decrease
CURRENT
ASSETS
Inventories 1532455.00 2161071.00 628616.00 __

Sundry debtors 2201381.00 4958527.00 2757146.00 __
Cash & Bank 493742.00 1205660.00 711918.00 __

balance
Other current 148822.00 78260.00 __ 70562.00

assets
Loans and 186699.00 1196128.00 1009429.00 __

Advances
(A)Total Current
Assets 4563099.00 9599646.00
CURRENT
LIABILITIE
S
Provisions 368028.00 395638.00 __ 27610.00
(B)Total Current 2041543.00 3887765.00

Liabilities
(A)-(B) Net 2521556.00 5711881.00

Working Capital
Increase in 3190325.00* __ __ 3190325.00*

Working Capital
TOTAL 5711881.00 5711881.00 5107109.00 5107109.00
62
2016 2015 Increase Decrease
CURRENT ASSETS
Inventories 2161071.00 3336430.00 1175359.00 __
Sundry debtors 4958527.00 1805948.00 __ 3152579.00
CURRENT LIABILITIES
Sundry creditors 3492127.00 2649781.00 842346.00 __
Provisions 395638.00 179298.00 216340.00 __
__ __
TOTAL 6248538.00 6248538.00 3861744.00 3861744.00
63
2015 2014
Increase Decrease
CURRENT ASSETS
Inventories 3336430.00 2622901.00 __ 713529.00
Sundry debtors 1805948.00 3787274.00 1981326.00 __
CURRENT LIABILITIES
Provisions 179298.00 1230900.00 __ 1051602.00

__ __
TOTAL 7113529.00 7113529.00 2667512.00 2667512.00
64
Particulars As on 31-3- As on 31-
2014 3-2013
Increase Decrease
CURRENT ASSETS
Inventories 2622901.00 2360611.00 __ 262290.00
Sundry debtors 3787274.00 4355365.00 568091.00 __
Cash & Bank balance 1720815.00 1978938.00 258123 .00 __
(A)Total Current Assets 11003428.00 11946666.

00
CURRENT LIABILITIES
Provisions 1230900.00 1107810.00 123090.00 __

0

0
Increase in Working Capital 667478.00* __ __ 667478.00*
TOTAL 8270981.00 8270981.0 1349239.00 1349239.00

0
65
BIBLIOGRAPHY
TEXT BOOKS
 M.Y.Khan / P.K Jain, Financial Management Text, Problem’s Cases, 5TH Edition,Tata
McGraw –Hill Publishing Company Limited, New Delhi, 2007.
 Prasanna Chandra, Financial Management Theory and Practice, 5TH Edition,

Tata McGraw –Hill Publishing Company Limited, New Delhi, 2001.
 Annual Report of Bahety Chemicals & Minerals Private Limited.
WEB SITE VISITED
www.google.com
www.wikipedia.org
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A STUDY ON

“WORKING CAPITAL MANAGEMENT “

S.NO NAME OF THE CHAPTER PAGE NO.

NEED OF THE STUDY

CHAPTER-3 THEORETICAL FRAMEWORK

CHAPTER-4 DATA ANALYSIS AND INTERPRETATIONS

The task is "A WORKING CAPITAL MANAGEMENT” QUEENS NRI HOSPITAL

IDEAS OF WORKING CAPITAL

There are two ideas of working capital:

1. Gross working capital.

2. Net working capital.

Net working capital = current resources – current liabilities

 To study the sources and uses of the working capital.

 To study the working capital components such as receivables accounts,

Cash management, Inventory management.

 To make suggestions based on the finding of the study.

Examining unit : Financial Statements.

Examining Size : Last five years budget summaries.

Instrument Used for figurings: - MS-Excel.

Instruments USED FOR ANALYSIS OF DATA

• Statement of changes in working capital.

Treatment , Diseases In Pregnancy , Bone Trauma , Fracture Treatment , Urology , Diabetes

expertise for handling various types of medical cases.

employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,

expenditure by public as well private players.

and tier ii cities.

India is about one-tenth of that in the us or western europe.

reach us$ 9 billion by 2020.

manipal hospital enterprise.

industry are as follows:

families every year.

rural and urban areas of india.

Following are the achievements of the government in the year 2017:

ayushman bharat was launched.

reasonable implants for treatment (amrit) pharmacies.

bill 2017, it aims to promote area of medical education reform.

conscious towards their healthcare upkeep.

healthcare infrastructure in both urban and rural india.

economic development is determined by the proportion of capital available.

owner at the time of commencing the business.

help in producing other goods.

Capital has the following features.

1. Capital is a man made.

3. Capital is a human control possible.

5. Capital is a human sacrifice.

support given volume of production.

working capital management is the short requirement of long term success.

ability to effective management of receivables, inventory, and payables. By minimizing the

of current assets and liabilities back towards their optimal levels.

MEANING OF WORKING CAPITAL

According to Weston & Brigham

securities, accounts receivables and inventories.

Mead Mallott & Field

“Working capital means current assets”.

capital for they are one and the same”.

improve their operations.

necessary for growth

OBJECTIVES OF WORKING CAPITAL MANAGEMENT

main following objectives-

1. To maximize profit of the firm.

2. To help in timely payment of bills.

3. To maintain sufficient current assets.

4. To ensure adequate liquidity of the firms.

5. It protects the solvency of the firm.