PROPOSAL FOR FINAL PROJECT

Working Capital Managment (PMDC)

Supervisor: Sir, TANVEER HUSSAIN

Submitted by: Umair Mehmood 4547-FMS/MBA/S10

Muhammad Ehtisham 4568-FMS/MBA/S10

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Faculty of Management Sciences
International Islamic University Islamabad
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Introduction
Financial Management is that managerial activity which is concerned with the planning
and controlling of the firms financial resources.

Financial management focuses on finance manager performing various tasks as

Budgeting, Financial Forecasting, Cash Management, Credit Administration, Investment
Analysis, Funds Management, etc. which help in the process of decision making.

Financial management includes management of assets and liabilities in the long run and
the short run. The management of fixed and current assets, however, differs in three important
ways: Firstly, in managing fixed assets, time is very important; consequently discounting and
compounding aspects of time element play an important role in capital budgeting and a minor
one in the management of current assets. Secondly, the large holdings of current assets,
especially cash, strengthen firm’s liquidity position but it also reduces its overall profitability.
Thirdly, the level of fixed as well as current assets depends upon the expected sales, but it is
only the current assets, which can be adjusted with sales fluctuation in the short run. Here, we
will be focusing mainly on management of current assets and current liabilities.

Background of Study

Every company need working capital to perform its daily functions ranging from sales to
purchase,paying of debt and daily wages etc.so keeping in view these points the company have
to very much prudent in managing its working capital needs effectively and efficently.

Investment in current assets represents a substantial portion of the total investment, Investments
in current asset and the level of current liabilities have to be geared quickly to change in sales,
which helps to expand volume of business.
Methodology of the study

The study utilized the descriptive technique because its main objective is to analyse the
importance of working capital and the issuses arising from working capital managment The
information regarding working capital project will be collected from Primary data that includes
Questionnaire, interviews with companies finance managers and Finacial Cosultants and
Secondary data from different books, magazines, articles, newspapers, and different researches .

Problem Statement

How companies can manage there working capital effectively and efficently and how to resolve
issues related to it.

Objectives of the study

 The main objective of the project is to provide complete guidance of effective and
efficent working capital managment.
 Providing guidline for financing the working capital.
Scope and limitations

The scope of our project is related to the companies which face problems in managing the
working capital needs as the underline business which our poject consists of, is related to PMDC
so the information gathered in this project would be useful only to dental hospital.

REMARKS

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Advisor
Tanveer Hussain