A STUDY ON WORKING CAPITAL MANAGEMENTIN ALICE BLUE COMMODITIES (P) LTD, SALEM A PROJECT REPORT Submitted by SURESH.

M Register No.108001802041

In partial fulfillment for the award of degree Of MASTER OF BUSINESS ADMINISTRATION IN DEPARTMENT OF MANAGEMENT STUDIES MAHENDRA COLLEGE OF ENGINEERING, MINNAMPALLI, SALEM. JULY-2012

MAHENDRA COLLEGE OF ENGINEERING, SALEM. DEPARTMENT OF MANAGEMENT STUDIES A PROJECT REPORT JULY-2012 This is certify that the project entitled A STUDY ON WORKING CAPITAL MANAGEMENT IN ALICE BLUE COMMODITIES (P) LTD, SALEM Is the Bonafide record of Project work done by SURESH.M Register No.108001802041 Of MASTER OF BUSINESS ADMINISTRATION During the year 2011-2012
-----------------------------------------------

Project Guide

Head of the Department

Submitted for the project Viva-Voce Examination held on..

----------------------------

-----------------------

Internal Examiner

External Examiner

iii DECLARATION
I affirm that the A Project report title A STUDY ON WORKING CAPITAL MANAGEMENT IN ALICE BLUE COMMODITIES (P) LTD, SALEM. Of being submitted in partial fulfillment for the award of MBA is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other university.

(Signature of the candidate) SURESH.M Register number 108001802041

I certify that the declaration made above by the candidate is true.

Signature of the Guide, MISS.S.PRIYA,MBA LECTURER

iv

ACKNOWLEDGEMENT

I take this golden opportunity to show my gratitude to the management, Mahendra College of engineering, Salem for providing me the needed facilities to do my Project report. I wish to place on record my gratitude to Dr.R.Asokan, M.Tech., Ph.D., F.I.E., F.T.A. Principal, Mahendra College of engineering, Salem for his valuable suggestion and encouragement. I am deeply grateful to Miss.S.PRIYA. M.B.A Lecturer Department of management studies of Mahendra college of Engineering for guiding me through this endeavor and for all support and help given to me in preparation of this work. I sincerely thank and record my gratitude towards Mr.Ananth Manager, Alice blue commodities (p) ltd who have co-operated with me and provided necessary information for my study. My sincere thanks also to my department staff members for their valuable contribution in completing this work.

(SURESH.M)

]ABSTRACT
The project entitled a study an working capital management in Alice blue commodities (p) ltd, Salem. To analysis the working capital of the firm, finance is very important for any business. The research is based at the following methodology. Descriptive research design is the research design. The study is conducted for a period of there month at Salem. The risk collected data is analyzed by using ratio analysis, common balance sheet & comparative working capital statements current ratio of the company is not quick satisfactory level. Company as to take necessary action for the improvement working capital management. Company as a good sign in efficiency of average collection period. To become more efficient and comparative, and as finance professionally grew learning assume greater responsibilities for their companies futures.

vi

TABLE OF CONTENTS

CHAPTER NO Abstract List of Tables List of Charts I 1.1 1.2 1.3 1.4 1.5 II 2.1 2.2 2.3 2.4 2.5 III 3.1 3.2 3.3 IV Findings Suggestion Conclusion

PARTICULARS

PAGE NO v vii viii

INTRODUCTION Introduction of the Study Introduction of the Company Objective of the Study Limitations of the Study Scope of the Study MAIN THEME OF THE PROJECT WORK Review of Literature Research Methodology Period of the Study Area of the Study Data analysis & interpretation CONCLUSION 44 45 46 9 10 11 12 13 1 4 6 7 8

SCOPE FOR THE FUTURE WORK Reference 48

vii

LIST OF TABLES

viii

LIST OF CHARTS TABLE NO. TABLE NO. 2.5.1.1 2.5.1 2.5.2.1 2.5.2 2.5.3.1 2.5.3 2.5.4.1 2.5.4 2.5.5.1 2.5.5 2.5.6.1 2.5.6 2.5.7.1 2.5.7 2.5.8.1 2.5.8 2.5.9.1 2.5.9 2.5.10.1 2.5.10 2.5.11.1 2.5.11 2.5.12.1 2.5.12 2.5.13.1 2.5.13 2.5.14 2.5.15 2.5.16 2.5.17 PARTICULARS PARTICULARS
CHART SHOWS CURRENT RATIO TABLE SHOWS CURRENT RATIO CHART SHOWS FOR ACID TEST RATIO TABLE SHOWS ACID TEST RATIO CHART SHOWS GROSS PROFIT RATIO TABLE SHOWS GROSS PROFIT CHART SHOWS NET WORKING CAPITAL TABLE SHOWS NET WORKING CAPITAL CHART SHOWS LONG TERM FUNDS TABLE SHOWS LONG TERM FUNDS CHART SHOWS RETURN ON INVESTMENT TABLE SHOWS RETURN ON INVESTMENT CHART SHOWS NET PROFIT RATIO TABLE SHOWS NET PROFIT RATIO CHART SHOWS EARNING PER SHARE TABLE SHOWS EARNING PER SHARE CHART SHOWS WORKING CAPITAL RATIO TABLE SHOWS WORKING CAPITAL RATIO CHART SHOWS FOR TREND PERCENTAGE TABLE SHOWS FOR TREND PERCENTAGE CHART SHOWS CORRELATION TABLE SHOWS FOR REGRESSION CHART SHOWS FOR CORRELATION TABLE SHOWS FOR TABLE SHOWS FOR CORRELATION REGRESSION CHART SHOWS FOR REGRESSION TABLE SHOWS FOR CORRELATION COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 31ST DEC 2007-2008 COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 31ST DEC 2008-2009 COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 31 DEC 2009-2010 COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 31 DEC 2010-2011
ST ST

PAGE PAGE NO. NO. 14 13 16 15 18 17 20 19 22 21 24 23 26 25 28 27 30 29 31 31 33 32 35 34 38 37 40 41 42 43