... Department of Finance University Of Dhaka Subject: Letter regarding Submission of report on Working Capital Management Of M.I. Cement Factory Ltd Dear sir, With due respect, we, a study group of six members of B.B.A. Program (18th Batch) under Department of Finance, University of Dhaka, submit the report entitled “Working Capital Management of M.I. Cement Factory Ltd.” that you have assigned us as the partial course requirement of the respective semester. We thank you, sir, for this assignment which has enriched our knowledge of this topic. Also, our involvement with little field study has nurtured our understanding, which will undoubtedly help us in the coming semesters and further. Respectfully ………………………………… Md. Akramuzzaman On behalf of the group, Roll: 18-113, Section: A Department of Finance University of Dhaka Working capital management is the management of current assets and liabilities of an organization. It is extremely important for any manufacturing company. WC represents a large portion of the total investment in assets. This clearly indicates that the finance manager should pay a close attention to the management of current assets on a continuing basis. Besides, there is a direct relationship between a firm’s growth and its working capital needs. As sales grow, the firm needs to invest more in inventories and debtors. In this report, we have...
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...produce learner’s practical knowledge in organizational environment and we can tune up ourselves for the job market interview session in future. We are able to collect information from “Square Textile Limited” to complete the study. We survey in our way to know about their working capital management procedure. Our main concentration of this study is to find out how organizations generally manage their capital. So we make organizational profile, consider the cash collection, financing, and liability related functions and also take some knowledge from internet. We hope that our work will be benefitted for everyone because we tried our best to make the report effective. Chapter one Introduction Introduction: Working capital management is one of the major issues of corporate finance. The success of any manufacturing company largely relies on the efficient management of working capital. There are different theoretical developments and empirical issues but there is no unified rule that can determine the optimal level of working capital. From the viewpoint of developing country like Bangladesh the role of working capital should be highly emphasized. But our country is characterized by low level of capital market development and inefficiency of financial market. In such a situation, it...
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...Analysis & Management Assignments 1. Discuss the extent to which the legal and professional regulatory framework of accounting ensures that corporate reports provide reliable, relevant, objective, and comparable information to users. 2. Critically evaluate the importance of discounted cash flow techniques in investment decisions. Illustrate your answer with your examples. 3. Discuss the relative importance profitability and liquidity for the survival of a business and explain how the working capital can be managed to minimise the risk of liquidity problems. Shahrzad Parhizgar Student Number: B0229JTJT1112 February 2013 Lecturer:PalanAmbikai Word Count: 2980 Financial Analysis & Management Assignments February 1, 2013 Table of Content LEGAL & PROFESSIONAL REGULATORY FRAMEWORKS ENSURING RELIABLE, RELEVANT, OBJECTIVE, AND COMPARABLE DATA ........................................................................................................................................ 3 INTRODUCTION ....................................................................................................................................................... 3 FINANCIAL INFORMATION USERS ................................................................................................................................ 3 LEGAL AND PROFESSIONAL REGULATORY FRAMEWORKS ................................................................................................. 4 FINANCIAL REPORTS CHARACTERISTICS...
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...An internship report on A STUDY ON “WORKING CAPITAL MANAGEMENT “ AT DILIP MARETRIAL HANDLING EQUIPMENT BY SHARATH KUMAR CE 1NZ13MBA35 Submitted to VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAUM In partial fulfillment of requirement for the award of degree of...
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...Working Capital Management in a Post-Recession Environment: The View from Europe A report prepared by CFO Research Services in collaboration with The Royal Bank of Scotland TM Working Capital Management in a Post-Recession Environment: The View from Europe A report prepared by CFO Research Services in collaboration with The Royal Bank of Scotland TM Working Capital Management in a Post-Recession Environment: The View from Europe Contents Executive summary Cash, liquidity and credit during an uncertain recovery Pursuing improvements in working capital An opportunity to expand the toolkit Investing in working capital improvements Conclusion Sponsor’s perspective 2 3 5 7 11 12 13 © 2010 CFO PUBLISHING LLC SEPTEMBER 2010 1 Working Capital Management in a Post-Recession Environment: The View from Europe Executive summary In June and July of 2010, CFO Research Services (a unit of CFO Publishing LLC) conducted an electronic survey among senior finance executives representing mid-size to large companies in Europe. Our goal was to understand finance executives’ concerns with working capital management in the wake of global recession, as well as their plans for improving working capital performance. We asked finance executives a series of questions about the impact that the recession had on their working capital management, which areas of working capital their companies would focus on during the course of economic recovery and whom their companies worked...
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...understanding of the working capital management of IRCTC. This report will analysis and describe different ratios and how it manages its working capital. “It is meaningless to financially analyse a company without understanding the context and environment in which it operates”. As IRCTC has its monopoly in Indian Railways, so we will take a close look to intra firm analysis. A ratio is an arithmetical relationship between two figures. Financial ratio analysis is a study of ratios between various items or groups of items in financial statements. Ratios can be classified according to statements mainly they are profit and loss ratios or income statement ratios, balance sheet ratios or position statement ratios, mixed ratio or inter statement ratios The ratios are calculated with the help of Annual report of IRCTC provided by the company; the data of last five financial years has been used for that. The project begins with the discussion about the scenario of Indian Railway and role of IRCTC in that. The project then describes the main concept- Ratios and their analysis by determining that why the ratios have changed, which can be due to the change in the accounting policies without a material change in the firm’s performance. The focus of the project then shifts to Working capital which is concerned with the problems that arise in attempting to manage current assets, the current liabilities and the interrelationship between them. The goal of the working capital management is to manage...
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...Problem: The efficient management of working capital is very vital for a business survival. This is premised on the fact having too much working capital signifies inefficiency, whereas too little cash at hand signifies that the survival of business is shaky. Here I focus on working capital management practices in M. M. ISPAHANI Ltd. to evaluate the real condition that are existing. Objectives of the study: The main objective of the study is to gather practical knowledge about working capital management of M.M. ISPAHANI Ltd. My study covers the following areas: * To Study the working capital policies of the sample company. * To study the structure of working capital. * To measure the utilization of working capital of the sample company. * To examine the impact of working capital on profitability. * To identity the problems facing the sample company. * To suggest the recommendation of measuring working capital Management efficiency. Scope of the Study: In my term paper the sample size was one and M.M. ISPAHANI Ltd. was selected as a sample and my topic was working capital management. For gathering more about my requirements I have scheduled my time in various departments, such as Department | Days | Executive Officer | 07 | Finance & Accounts | 15 | Marketing & Sales | 05 | Purchase | 05 | Import & Export | 05 | Administration | 03 | Methodology of the Study: In order to accomplish the term paper report in the...
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...A Comparative Analysis Of The Effectiveness Of Three Solvency Management Models By Enyi, Patrick Enyi Ph.D, MBA, B.Sc, ACA, ACCA, MFP, RFS. Fellow, American Academy of Financial Management (AAFM) Member, American Accounting Association (AAA) Head, Department of Accounting, Covenant University, Ota, Nigeria A Comparative Analysis Of The Effectiveness Of Three Solvency Management Models Abstract The introduction of the Altman’s Z-score model in 1983 and much recently the Enyi’s Relative Solvency Ratio model in 2005 has divergently provided financial analysts with alternative methods of analyzing corporate solvency which hitherto was exclusively done using the traditional historical record based ratio analysis, with particular reference to the current ratio. To test the relevance and effectiveness of the three models, real life performance data were extracted from the annual reports of 7 quoted companies, analyzed using the three models and the results compared to show the strengths and weaknesses of each. The result revealed that the current ratio and the Z-score models suffer from many limitations including imprecision while the Relative Solvency Ratio combines the capability of an effective indicator with the precision required of a true predictor. Keywords: Solvency, Liquidity, Ratio Analysis, Bankruptcy, Performance, Relative Solvency, Working Capital, Current Ratio, Current Assets, Balance Sheet 1. Introduction It is a proven fact over and throughout...
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...IJMBs Vol. 1, Issue 3, septeMBer 2011 I S S N : 2 3 3 0 - 9 5 1 9 (O n l i n e ) | I S S N : 2 2 3 1-2463 ( P r in t) Working Capital Management in Cement Company a Study 1 1 T.Chandrabai, 2Dr.K.Venkata Janardhan Rao Dept. of Mgmt. Studies, Padmasri Dr.B.V.Raju Institute of Tech., Narsapur, Medak, AP, India 2 Dept. of Commerce and Business Management, Kakatiya University, Warangal, AP, India Abstract Working capital is considered to be life-giving force to an economic entity and managing working capital one of the most important functions of corporate management. Working capital management (WCM) is the management of short-term financing requirements of a firm which includes maintaining optimum balance of working capital components – receivables, inventory and payables – and using the cash efficiently for day-to-day operations. The main objectives of this study are to examine and evaluate the working capital management in ACC Limited, examine the management pattern of inventory, liquidity, cash position and receivables management. This also finds the relationship between Working Capital Efficiency and Profitability, Profitability and Market ratios. Keywords Working Capital, Liquidity, Profitability, Market ratios, Inventory I. Introduction Global slowdown that severely affected several countries had its invariable effect on Indian Industrial production as also on other important sectors of Indian Economy. The Cement Industry, which exhibited...
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...Project Report (Submitted for the Degree of B.Com. Honours in Accounting & Finance / under West Bengal State University, Barasat) Title of the Project WORKING CAPITAL MANGEMENT IN MARUTI SUZUKI INDIA.LTD Submitted by Name of the Candidate: TANUMOY ROY Registration No. : 13611131114020870 OF 2011-12 Name of the College: RBC EVENING COLLEGE College Roll No: 21 Supervised by Name of the Supervisor MR RANJIT KUMAR DUTTA Name of the College: RBC EVENING COLLEGE Month & Year of Submission FEB 2014 ACKNOWLEDGEMENT I would like to thank our head of the department (HOD) Mr. Ranjit Kumar Dutta, for giving necessary support during the course. Chapter No. | Particulars | Page No. | 1. | INTRODUCTION | 4-7 | 2. | AUTOMOBILE INDUSTRY SCENARIO IN INDIA | 8 | 3. | PRESENTATION OF DATA, ANALYSIS, FINDING | 9-11 | 4. | CONCLUSION,RECOMMENDATION,LIMITATION | 12 | 5. | BIBLOGRAPHY AND REFERANCES | 13 | 6. | SUPERVISER CERTIFICATE | 14 | 7. | STUDENT DECLARATION | 15 | CONTENTS INTRODUCTION 1.1CONCEPT OF WORKING CAPITAL The term working capital is used to mean that proportion of working capital of a business which is employed in short Term or current operations. There are two type of working capital: gross and net. Gross working capital is the sum total of all current asset, while net working capital is the difference between current asset and current liabilities. IMPORTANCE OF WORKING...
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...PROJECT REPORT (Submitted for the degree of B.com Honours in Accounting & Finance under CalcuttaUniversity) ON WORKING CAPITAL MANAGEMENT SUBMITTED BY Name of the Candidate: Registration No. : Roll No. : 0498 Name of the College: Bhawanipur Education Society College Name of University: Calcutta University Submitted on: February 2013 SUPERVISED BY Name of the Supervisor: Name of the College: Annexure- I Supervisor's Certificate This is to certify that Ms. a student of B.Com. Honours in Accounting & Finance ofBHAWANIPUR EDUCATION SOCIETY COLLEGE under the University of Calcutta has worked under mysupervision and guidance for her Project Work and prepared a Project Report with the title “WORKING CAPITAL MANAGEMENT ” which she is submitting, is her genuine and original work to the best of my knowledge. Place: Kolkata Prof. Date: February, 2013 . Annexure- II Student's Declaration I hereby declare that the Project Work with the title “WORKING CAPITAL MANAGEMENT”submitted by me for the partial fulfilment of the degree of B.Com. Honours in Accounting & Finance under the University of Calcutta is my original work and has not been submitted earlier to any other University /Institution for the fulfilment of the requirement for any course of study. I also declare that no chapter of this...
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...Executive Summary: The objective of this report is to evaluate investment opportunities for Strategic Capital Management, LLC regarding stocks of Creative Computer and/or its subsidiary firm Ubid. The analysis deduces arbitrage to be the best investment strategy. Strategic Capital Management (SCM), LLC: SCM is a recent entrepreneur venture founded by Elena King and two of her fellow classmates. The company has currently generated 20 million dollars and aims for annual returns of 10 percent. Its investors are charged a management fee of 2% of assets under management and an incentive fee equal to 20% of profits. Moreover company policy requires investors to keep their money invested for a minimum of two years. Recent meetings with prominent analysts, Henry Blodgett of Merrill Lynch and Mary Meeker of Morgan Stanley have indicated the Internet Sector to hold promising investment opportunities, therefore Creative Computers and its subsidiary Ubid present potential prospects for investment. Analysis: Internet Sector: Dot-com Bubble The dot-com bubble has enabled the Internet sector and its related fields to yield earnings at an above-average rate relative to the market. Hence the expected return on these growth stocks is great (see figure below). However these investments involve an inherent risk that must not be ignored. Because this sector is categorized by strong competition the need for innovative and skillful business strategies is a must. ** (Note: since...
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...company can also manage each of its current assets namely inventory management, cash management, accounts receivable management and also its liabilities like creditors, loans, bills payables etc. so that it can maintain an identical financial ratio for each of its business aspects like solvency ratios, turnover ratios, profitability ratios etc. The research methodology adopted for this study is mainly from secondary sources of data which includes annual reports of BHEL, and website of the company. The use of primary sources is limited to interviews with few employees in the finance department and also from the working process adopted in the company as interviewed from employees. The study of financial ratio analysis has shown that BHEL has a strong base in meeting the identical financial ratios as well as has increased its profits from the past years. The company is enjoying reasonable profits. BHEL employs forex funds instead of domestic loans and WC facilities. BHEL sales position is also very good. Its excellent performance is attributed to reduced cost of product and ultimately contributing to a good financial as well as a profitable position in the market. The operational areas of BHEL and its performance has been quite satisfactory only in some of the aspects it failed to achieve the ideal targets, so it needs to look upon these areas and adopt certain measures which can be cost reduction, efficient asset management, better inventory...
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...Working Capital Management of MJL Bangladesh Limited Course Instruction Working Capital Management F-405 Submitted to Shabnaz Amin Auditi Assistant Professor Department of Finance University of Dhaka Submitted by Group- 08 Ummul Wara 17-090 Saida Homaira 17-166 Md. Rezwan Islam 17-172 Md. Maksud Hassan 17-174 Zonayed Mahid 17-182 Members of Section: B 17th BATCH Department of Finance University of Dhaka Submission Date: 05-June-2014 1 Letter of Transmittal 05 June, 2014 Shabnaz Amin Auditi Assistant Professor Department of Finance University of Dhaka Subject: Submission of the report ‘Working Capital Management of MJL Bangladesh Limited’ Dear Madam, As per the requirements of the course Working Capital Management (F-405) offered at Department of Finance, University of Dhaka under your supervision, we submit here our report on ‘Working Capital Management of MJL Bangladesh Limited’ that you assigned us to prepare. Our final report is based on data from various sources and basis on our findings. I believe that the knowledge and experience that I gained will be of great importance both for future courses and work lives. I would also like to state that the sole purpose of creating the report is for the completion of the course work. No part of this report will be reproduced for use in any other form of publication in the future without your written permission. We shall be available for any clarification, if required. ...
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...Individual Research Report Working capital is the capital available for conducting the day-to-day operations of an organization. It is an important business factor. For investor, it helps to measure a company’s liquidity, efficiency and overall financial strength and make a right investment decision. For manager, working capital management is the management of all aspects of both current assets and current liabilities, to minimize the risk of insolvency while maximizing the return on assets. The formula for working capital is current assets minus current liability. There are many item include in working capital such as cash, inventory, account receivable, account payable and so on. Inventory is a key part of working capital management, since it always take up a large portion of working capital. Therefore, in this report, I will discuss what inventory means to a business, why it is so important and take Zara as an example to describe how to manage inventory. Definition of Inventory in Working Capital The raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale (Investopedia). In short, the inventory is the products the company have not sold yet. And inventory is current asset in order to generate more future cash flow. Why Inventory is so important Inventory is a major investment for many companies. Manufacturing companies can easily be carrying inventory equivalent...
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