ln18CuuC1lCn 1

l have done Lhls pro[ecL ln Lhe sub[ecL of worklng caplLal managemenL ln [lndal
sLalnless llmlLed (!SL)[a[pur dlvlslon 1he worklng caplLal managemenL lncludes
llke neL worklng caplLal sLaLemenL change ln worklng caplLal operaLlng cycle
accounL recelvable raw maLerlal work ln process eLc l have Laken Lhe flgures
from 2010 Lo 2011 for dolng Lhls research l was dolng Lhe pro[ecL from


Genera| Cverv|ew

Jorklng caplLal lnvolves decldlng upon Lhe amounL and composlLlon of
currenL asseLs and Lhe manner ln whlch Lo flnance Lhem ueLermlnlng
Lhe approprlaLe levels of worklng caplLal lnvolves fundamenLal declslon
ln regard Lo Lhe flrm's llquldlLy and Lrade off beLween rlsk and
proflLablllLy CreaLer Lhe amounL of worklng caplLal level malnLalned
Lhe lesser ls Lhe rlsk of runnlng ouL of cash AlLhough proflLablllLy wlll be
greaLer buL Lhe rlsk of runnlng ouL of caplLal Lo meeL Lhe day Lo day
requlremenL wlll be more

|mportance of th|s top|c to the company

1he worklng caplLal ls Lhe llfe blood and nerve cenLer of a buslness flrm
1he sufflclency of worklng caplLal asslsLs ln ralslng credlL sLandlng of a
buslness because of beLLer Lerms of goods boughL lesser cosL of
manufacLurlng due Lo accepLance of cash dlscounL favorable raLes of
lnLeresLs eLc no buslness can run effecLlvely wlLhouL a sufflclenL
quanLlLy of worklng caplLal lL ls cruclal Lo reLaln rlghL level of worklng
caplLal llnance manager ls requlred Lo declde Lhe amounL of accuraLe
worklng caplLal

A buslness enLerprlses wlLh ample worklng caplLal ls always ls a poslLlon
Lo avall advanLages of any favorable opporLunlLy elLher Lo buy raw
maLerlals or Lo lmplemenL as speclal order or Lo walL for enhanced
markeL slLuaLlon knowlng Lhe amounL of worklng caplLal a company
has Lo vlLal Lo many aspecLs 1he worklng caplLal calculaLlon wlll Lell Lhe
company as well as Lhe lnvesLors exacLly how well Lhe company ls
dolng ln addlLlon Lhe company's worklng caplLal consLlLuenLs Lhe
monles used for purchaslng new equlpmenL new sLock llnes and much
more Jorklng caplLal ls Lhe slngle mosL lmporLanL aspecL of a
company JheLher you are [udglng performance or speculaLlng on
expandlng Lhe company JlLhouL Lhe requlred worklng caplLal and
knowledge of how Lo perform a worklng caplLal calculaLlon lL may be
lmposslble for a buslness Lo grow and prosper Pavlng Lhe rlghL amounL
of worklng caplLal ls Lhe only way ln whlch a company can advance

!SL ls a large organlzaLlon 1haL ls why a loL of day operaLlon go on Llke
purchase of raw maLerlals sLores and spares eLc !SL requlre a loL of
worklng caplLal Lo flnance lLs currenL asseLs

!SL has LoLal manpower of around uue Lo Lhls company has Lo
malnLaln large amounL of worklng caplLal AlLhough durlng Lhe lasL Lwo
years !SL has a llLLle cash surplus LhaL Lhere ls a llLLle need of worklng
caplLal borrowlng lL lnvesLs some percenLage of proflL for lLs caplLal
expanslon

Cb[ect|ve Cf Study

1he maln ob[ecLlve of Lhe Lralnlng ls Lo provlde a plaLform Lo learn and
acqulre dlfferenL buslness skllls from Lhe professlonals lL Leaches Lhe
sLudenLs Lo adopL Lhemselves Lo varlous challenges ln Lhe work fronL
whlch helps Lo develop professlonallsm wlLhln Lhem 1he ob[ecLlve of
Lhe sLudy ls analysls of worklng caplLal managemenL ln !SL for Lwo
years from year ended on 200910 Lo 201011" 1he ob[ecLlve of Lhls
Lralnlng ls Lo sLudy Lhe componenL and lmpllcaLlon of worklng caplLal
managemenL ln llnance and AccounL of aL !SL 1he sLudy has been
carrled ouL aL !SL !a[pur as parLlal fulflllmenL of Lhe requlremenL of
masLers of buslness admlnlsLraLlon
r l have chosen Lhls Loplc le worklng caplLal managemenL because
of worklng caplLal ls essenLlal for Lhe exlsLence of Lhe buslness All day
Lo day operaLlons have Lo be properly flnanced oLherwlse Lhe flrm can'L
run smooLhly Slnce a large flrm has many deparLmenLs and every
deparLmenL have varlous funcLlons So properly managed Lhose
funcLlon every company requlres funds Pere Lhls funds requlremenL ls
worklng caplLal requlremenL


r Slnce l wanL Lo know Lhe funcLlonlng of day Lo day operaLlons Lhls
Loplc ls sulLable for me 1hls wlll brlng an opporLunlLy for me Lo know
Lhe LoLal flnanclal acLlvlLy of a company Agaln l wanL Lo know how an
organlzaLlon managed Lo flnance lLs day Lo day acLlvlLles from where lL
geLs Lhe funds 1o know all Lhese Lhlngs worklng caplLal managemenL ls
Lhe approprlaLe sub[ecL
r AnoLher reason for chooslng Lhls Loplc Lo know more lnslghL
abouL Lhe flnanclal acLlvlLles of a company Slnce worklng caplLal
lncludes currenL asseLs currenL llablllLles worklng caplLal raLlos and
company's operaLlng cycle l can know all Lhese Lhlngs LogeLher
r one more reason ls LhaL l wanL Lo know Lhe llquldlLy poslLlon of a
company JheLher Lhe company can glve lLs shorL Lerm obllgaLlon or
noL 8ecause Lhls can lead or spoll lLs opporLunlLy
r slnce worklng caplLal managemenL of ls a [ob of mlddle level
managemenL lL ls golng Lo beneflclal Lo me ln Lhe fuLure Slnce l have Lo
Laken speclallzaLlon ln flnance my Loplc should be under Lhls
speclallzaLlon

So due Lo above facLors l choose worklng caplLal managemenL

1hls ls belng aLLempLed Lhrough Lhe deLalls Lools of followlng Lools of
analysls
O Comparlson of varlous worklng caplLal raLlos for Lhe Lwo years
ended 2010 and 2011
O Analysls of currenL asseLs and currenL llablllLles
O 1o esLlmaLe worklng caplLal requlremenLs
O 1o analyze Lhe llquldlLy poslLlons
O 1o suggesL way Lo lncrease Lhe efflclency of worklng caplLal
managemenL
O CperaLlng cycle approach

scope of study
1o know Lhe currenL flnanclal poslLlon of !SL Agaln lL wlll provlde
lnformaLlon Lo show Lhe fuLure Lrend