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SCOPE OF THE STUDY The study is conducted at VTM LUDHIANA for 6 weeks duration. The study of W.C.

management is purely based on secondary data and all the information is available within the company itself in the form of records. To get proper understanding of this concept, I have done the study of the balance sheets, profit and loss a/c s, cash accounts, trial balance, cost sheets. I have also conducted the interviews with employees of accounts and finance department and stores department. So, scope of the study is limited up to the availability of official records and information provided by the employees. The study is supposed to be related to the period of last four years. LIMITATIONS OF THE STUDY  As central purchase office purchase raw material and central marketing yarn make sales. So more detailed information cannot be received about these.  Cash from debtors are collected by the corporate office through commission agents. So efforts for collection of debtors cannot be clearly known from VTM Ludhiana.  Investment of funds are also made by corporate office, so it becomes difficult to know that how much investment is made in different ways for continuous availability of funds.

RESEARCH METHODOLOGY

 To recognize the various type of information which are necessary for the study of working capital management.  Collection of data from various department of VTM to analyze the working  capital management of VTM.  For understanding the various reports, personal interviews are conducted.  With the help of various techniques like: o o o o o Operating Cycle analysis Ratio Analysis Common size statement Schedule of changes in working capital The overall position of VTM is studied and analyzed

 Suggestions are given on the basis of findings for better understanding of working capital management SOURCES OF INFORMATION

 Primary Data The personal interview with senior officials and various members of finance and accounts department and also with other departments and collected the data. Secondary Data All the details necessary for the study was available within the company itself

This studies a part of my BBA; aim at analyzing the working capital management of HIMSON TEXTILE ENGINEARING IND. PVT. LTD.

The following are the main objective of study: F To know how to manage current assets and current liabilities so that satisfactory level of working capital is maintained. F To know how to manage receivable, inventory and cash. F To study the different sources of financing working capital. F To study the operating cycle of company. F To study the liquidity position of company.

F To look at possible remedial measures if any on the basis of which tied-up funds in working capital could be used effectively and efficiently. F To suggest, if possible on the basis of conclusion some modification to meet the situation.

Following are limitation of the study: -

F The study fully depends on financial data collected from the published financial statement (Annual Report) of company. The data collected from above the sources are not of detailed nature. Thus study incorporates all the limitations that are inherent in the considered financial statement. F There are controversies related to correctness of current assets and current liabilities that enters in to the domain of working capital management.

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