I am highly thankful to Principal and Faculty of K.G.R.L.

Institute ofManagement Studies

for giving me this opportunity to under take my projectwork in the Praga tools Limited. Balanagar,

Secundrabad.
I am grateful to Mr. Uma Maheswara Reddy for giving me permission
to

do the project in PRAGA TOOLS LIMITED. I would express my sincerethanks to Mrs. Padmini

for helping me a lot in gathering information for myproject.

I also express my gratitude to my Father, Mother and my friends whohad been a constant

source of encouragement and provided me the necessaryhelp during the period of my project.

Last but not least,I express my sincere thanks to the God Almighty forshowering

hisblessings uponme and also all those who helped me directly orindirectly throughout my project

work.
(BALA BALAJI.V)
Place
Date:

ACKNOWLEDGEMENT
I
LIST OF TABLES
II
LIST OF GRAPHS
III
CHAPTER-I
INTRODUCTION TO THE STUDY
2
•
Need for the study
3
•
Scope of the study
4
•
Objectives of the study
5
•
Methodology of the study
6
•
Limitations of the study
7
CHAPTER-II
INDUSTRY PROFILE
8-14
CHAPTER-III
COMPANY PROFILE
15-23
CHAPTER-IV
THEORETICAL FRAME WORK
24-40
CHAPTER-V
DATA ANALYSIS & INTERPRETAION 41-72
CHAPTER-VI
FINDINGS
73-78
SUGGESTIONS
BIBILIOGRAPHY
INTRODUCTION
1. WORKING CAPITAL MANAGEMENT

The success of business, among other things depends upon the mannerin which its capital is

managed in the dynamic business setting, thecomposition of working capital mismanaged, in the dynamic

business setting,the difference between the current assets and current liabilities. Constantlychanges in

relation to the level of activity of the business concern and rates atwhich the current assets of current

liabilities keep changing in relation to eachother and other things are significant factors also continuous

review anddirection of the financial manager.

It is the task of the financial maintain an appropriate level of workingcapital that is enough current

assets to pay off current liabilities neither excessnor less because excessive workingcapital leads to

interruption in the smoothfunctioning of the business concern.

There are numerous instances in the history of business world whereinadequacy of working capital

has led to business failures when a firm finds itdifficult to meetings day to day.

Operating expenses essential out lays may have to be postponed forwant of funds, operating plans

will go out of gear & enterprise objectives oninvestment slumps the suppliers & creditors of the firm may

have to waitlonger to raise their dues & will hesitate to extend further credit to the firm.

Thus efficient management of working capital in an importantprerequisite for successful working

of a business concern it reduces the chancesof business failure generates a felling of security and

confidence in the mindsof personnel in the organization it assurance solvency of steady of theorganization.
1.1 NEED AND IMPORTANCE OF THE STUDY:
1.Their projects is helpful in knowing the companies position of fundsmaintenance and
setting the standards for working capital inventory levels,currentratio level, quick ratio,
current amount turnover level & web tornturnover levels.
2. This project is helpful to the managements for expanding the dualism & the
project viability & present availability of funds.
3. This project is also useful as it companies the present year data with theprevious year
data and there by it show the trend analysis, i.e. increasing fundor decreasing fund.
4. The project is done entirely as a whole entirely. It will give overall view ofthe
organization and it is useful in further expansion decision to be taken bymanagement.
1.2 OBJECTIVE OF THE STUDY:
1.To examine the effectiveness of working capita management polices
with the help of accounting ratio.
2.To study liquidity position of the company by taking various
measurements.
3.To evaluation the financial performance of the company.
4.To make suggestions for policy makers for effective management of
working capital