SYNOPSIS On Working capital management A case study of Britannia Industries Limited

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Working capital management A case study of Britannia Industries Limited

INTRODUCTION INTRODUCTION
Working Capital Management holds an important role in the theory of finance. A large number of tools and techniques have been developed in the past to insure optimal allocation of working capital management funds more than 80% of finance manager spent in dealing with day to day problem which are part & parcel of working capital requirements of the enterprise. Efficient use of working capital has direct bearing on profitability of the enterprise. It augments the productivity of the investment in the fixed assets. Basic survival of the firm may stake if adequate working capital is not available in time. It is essential to maintain constant supply of working capital for healthy growth of an enterprise.

Management of working capital assumes added significance in the context of small scale and medium size industries in our country. Most of them have week financial base and limited access institutional finance. Their risk capacity is also low. Working capital management deals with management of each of the firm current assets in such a way that it maximizes the value of the firm.

In an economy, the financial sector plays a major role in the mobilization and allocation of savings. In changing economic environment, manufacturing industries have to become more competitive. They have to keep their cost in check. An efficient use of working capital would release the funds locked in the current assets.
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LITERATURE REVIEW
WORKING CAPITAL ANALYSIS OR MEASURING THE WORKING CAPITAL The working capital is a means to run the business smooth and profitably, and not an end. Thus, concept of working capital has its own importance in a going concern. A going concern, usually, has a positive balance of working capital i.e., the excess of current assets over current liabilities, but sometimes the uses of working capital may be more than the sources resulting into a negative value of working capital. This negative balance is generally offset soon by gains in the following periods. A study of changes in the uses and sources of working capital is necessary to evaluate the efficiency with which the working capital is employed in the business. This involves the need of working capital analysis. The analysis of working capital can be conducted through a number of devices, such as: 1. Ratio analysis 2. Funds flow analysis 3. Budgeting

Ratio Analysis: A ratio is a simple arithmetical expression of the relationship of one number to another. The technique of ratio analysis can be employed for measuring shot-term liquidity or working capital position of the firm. The following ratios can be calculated for this purpose:

Current ratio Acid test ratio Absolute liquid ratio or cash position ratio Inventory turnover ratio Receivables turnover ratio Payables turnover ratio Working capital turnover ratio Working capital leverages
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OBJECTIVE OF STUDY

MAIN OBJECTIVE To analyze how WORKING CAPITAL is maintained in Britannia Industries Limited

SUB-OBJECTIVE Are the working capital system is sufficient enough to analyze the ability of a company. To know the method of managing the working capital requirement of the organization. To see the difference between the theoretical knowledge & practical knowledge.

SCOPE OF STUDY

This research is very important for any finance student to gain a real time experience. I have done my research on Britannia in Working capital management. There are many departments in Britannia but my research work is confined with finance department where I studied that how they meet the requirement of working capital and how they use it in financial activities. In finance department, I studied how they manage their different ratio with respect to the working capital. .

RESEARCH METHODOLOGY
When we talk of Research Methodology, we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using so that research results are capable of being evaluated either by research himself or by others.

As the title of the project suggests the project is about the study of the working capital management in the company. So my objective is that to know that how the working capital should be maintained in the company & which method is used in this.

SECONDARY DATA Secondary data are those which have already been collected by someone else and have already been passed through the statistical process. Acc. to Dessel-Data collected by other persons

All the data has been collected from internal source that includes:a) Magazines b) Books c) Websites d) Reports e) Files f) Staff

PROPOSED CHAPTERS Chapter I Introduction Literature Review Scope of the Study Area of Research Chapter II Research Objective Research Methodology Chapter III Analysis and Interpretation

Chapter IV Findings Recommendation Chapter V Conclusion Limitation Chapter VI Annexure Bibliography

BIBLIOGRAPHY
BOOKS 1. Ackoff, Russell L., The Design of Social Research: University of Chicago Press, 1961. 2. Allen, T. Harrell, New Methods in Social Science Research, New york: Praeger Publishers, 1978. 3. Annual Report on Britannia Industries. 4. Chance, William A., Statistical Methods for Decision Making, Bombay: D.B. Taraporevala Sons & Co. Pvt. Ltd., 1975.

WEBSITES: www.britindia.com www.sidcul.com www.google.com www.yahoo.com www.rediff.com