Dr. P. B PATIL
(PH.D., M.PHIL, M.COM, GDC&A)
& RESEARCH
KOLHAPUR
2010-2011.
The project undertaken is on Working Capital Management of Unik Techno Systems Pvt. Ltd. It describes about how the company manages its working capital and the various steps that are required in the management of working capital. Cash is the lifeline of a company. If this lifeline deteriorates, so does the company's ability to fund operations, reinvest and meet capital requirements and payments. Understanding a company's cash flow health is essential to making investment decisions. A good way to judge a company's cash flow prospects is to look at its Working Capital Management (WCM).
Working capital refers to the cash of a business requires for day-to-day operations or, more specifically, for financing the conversion of raw materials into finished goods, which the company sells for payment. Among the most important items of working capital are levels of inventory, accounts receivable, and accounts payable. Analysts look at these items for signs of a company's efficiency and financial strength.
Thus efficient management of working capital in an important prerequisite for successful working of a business concern it reduces the chances of business failure generates a felling of security and confidence in the minds of personnel in the organization it assurance solvency of steady of the organization
4.
STATEMENT OF PROBLEM
In the management of working capital, the firm is faced with two. Key problems: 1. First, given the level of sales and the relevant cost considerations, what are the optimal amounts of cash, accounts receivable and inventories that a firm should choose to maintain? 2. Second, given these optimal amounts, what is the most economical way to finance these working capital investments? To produce the best possible results, firms should keep no unproductive assets and should finance with the cheapest available sources of funds. Why? In general, it is quite advantageous for the firm to invest in short term assets and to finance short-term liabilities.
HYPOTHESIS
Hypothesis is a conjectural statement of the relationships between two or more variables. It is testable, tentative problem explanation of the relationship between two or more variables that create a state of affairs or phenomenon.E,C, Osuola said hypothesis should always be in declarative sentence form, and they should relate to them generally or specially variable to variables.
Hypothesis thus:1. Explain observed events in a systematic manner 2. Predict the outcome of events and relationships 3. Systematically summarized existing knowledge.
In essence, there exist null hypothesis set up only to nullify the research hypothesis and the alternative hypothesis, for the purpose of the study. For the efficiency of the study, the hypothesis is as follows:
H0
1. Working capital does not help the business concern in maintaining the goodwill 2. Working capital does not create an environment of security, confidence, and overall efficiency in a business
H1
1. Working capital helps the business concern in maintaining the goodwill. 2. Working capital creates an environment of security, confidence, and overall efficiency in business.
METHODOLOGY
Methodology may be a description of process, or may be expanded to include a philosophically coherent collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry. This project requires a detailed understanding of the concept Working Capital Management. Therefore, firstly we need to have a clear idea of, what is working capital, how it is managed in Unik Techno Systems Pvt. Ltd., what are the different ways in which the financing of working capital is done in the organization etc. To recognize the various type of information which are necessary for the study of working capital management.
The management of working capital involves managing inventories, accounts receivable and payable and cash. Therefore one also needs to have a sound knowledge about cash management, inventory management and receivables management.
Then comes the financing of working capital requirement, i.e. how the working capital is financed, what are the various sources through which it is done.
And, in the end, suggestions and recommendations on ways for better management and control of working capital are provided.
Collection of data from various department of Unik Techno Systems Pvt. Ltd., to analyze the working capital management of the firm.
COLLECTION OF DATA
There are several ways of collecting both data-Primary and Secondary data, which differ considerably in context of money, cost, time and other sources at the disposable of the researcher.
1-Primary Data
Definition:The first handed information/Fresh data collected through various methods is known as primary data.
In respect of primary data which the researchers are directly collects data that have not been previously collected. The primary data was gathered through personal interaction with various functional heads and other technical personnel. Some information was also collected by observation.
2-Secondary Data :
Definition:The data which have been already collected & comprised for another purpose. Secondary data was collected various reports, annual reports, documents charts, management information systems, etc in Unik Techno Systems Pvt. Ltd., And also collected various magazines, books, newspapers etc.
The analysis of the information gathered has been made on the basis of the clarifications sought during the personal discussions with the concerned people and perception during the personal visits to the important areas of services.
In marking observations identifying problems and suggesting certain remedies such emphasis was given on the basis of opinions gathered during the personal discussions.
COMPANY PROFILE
M/S Unik Techno Systems Pvt. Ltd. has been established in the year 1999. The Company has two proven product lines and these are Battery Machineries and Industrial Batteries. Also as we are an ISO 9000-2008 Company, housekeeping and safety is an integral part of the company and it is very essential for customer delight and satisfaction. UNIK machines have been exported to Bangladesh, Myanmar, Fiji Islands and South Africa. In India the UNIK machines are in operation in Jammu, Punjab, Delhi, Goa, Gujarat, Kolkata, Maharashtra, Karnataka, Kerala, Tamilnadu, Assam and many other states also.
BIBLIOGRAPHY
Details about source of material, reference books, articles, web resources etc. used for research study.
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DR . P. B. PATIL
(PH.D., M.PHIL, M.COM, GDC&A)