SUMMER TRANING REPORT

ON
ANALYSIS OF WORKING CAPITAL MANAGEMENT
OF
Shri Ram Piston & Rings LTD

Presented By :- Nishant Kumar Sharma

MBA
2nd year

CONTENT

Objective of the Study

Company Profile
Collaboration
Customers
Research Methodology
Data Analysis
Findings
Recommendations

OBJECTIVE OF STUDY
1. Primary Objective :- Primary Objectives is to Analysis of Working Capital
Management
2. Secondary Objective :- There are few secondary objectives : -

To see whether the company is prepared with enough working

capital to face any kind of contingencies.

To identify the financial strength and weakness of the company

To see how the day-to-day operations of the company takes place.

Company Profile

Shriram Pistons and Rings Ltd. is one of the largest and the most sophisticated
manufacturers of Precision Automobile Components
SPRL manufacturing unit is located at Meerut Road in Ghaziabad
The SPRL has the 6000+ skilled employees
The annual turnover of SPRL is approx. US$176 million .
recently set up a second, most modern new Plant at Pathredi, next to Bhiwadi
Industrial Area (Rajasthan)
The plant has been recognized as one of the most modern and sophisticated plants
in North India in the field of automobile the production capacity of plant is as under:
Piston :
15.14 million per year
Pin
:
13.0 million per year
Rings :
70.5 million per year
Engine valves: 29.5 million per year

Collaborations:

Customers
Domestic customer:
Ford Motors
General Motors
Honda SIEL
Mahindra & Mahindra
Maruti Suzuki
Nissan Motor
Suzuki Powertrain
Tata Motors
Ashok Leyland
HMT Tractors
Mahindra & Mahindra
New Holland
Sonalika International
Mahindra Swaraj

Global customers:

Ford, UK
Ford, Germany
Husqvarna Motorcycles (BMW), Italy
Iveco, Italy
Renault, France
Renault, Spain
Honda, Peoples Republic of China
Honda, Thailand
Hyundai, Korea
Mega Motors, Iran
WABCO, Peoples Republic of China

RESEARCH METHODOLOGY

Type of Study: The study carried out here is basically analytical in nature.
This type of study relies on data which is already available.

Type of Data used: The methodology involved for data collection was
mainly through secondary data and was obtained from the companys
financial statements and the companys website.

Sources of Data: The source of data has been companys Balance Sheet
and Profit and Loss Accounts over a period of past years.

Tools used for Data Collection: Past Records of the company

Data Analysis

Findings

As current ratio is showing an increasing trend , which implies that current asset, are
more compared to current liabilities.

Low current assets turnover ratio is not preferable and does not shows efficiency of
management and proper utilization of the assets.

SHRIRAM PISTONS AND RINGS LTD has a sufficient amount of working capital
during the past three years. As company is showing increasing trend of working
capital, which shows that company, does not kept its obligation for long time.

Current ratio and quick ratio of the year are little less than that of the ideal figures
i.e. ideal current ratio is 2:1 while quick ratio is 1:1.

Debtors Turnover ratio reveals an decreasing trend during the period of study.

Recommendations

In case of inventory management ABC analysis, FSN technique, VED

technique should be adopted to increase the efficiency of inventory
management. Further a inventory monitoring system should be introduced to
avoid holding of excess inventory.

It is suggested to maintain a favorable current and quick ratios which shows

a lesser than ideal figures. It can be done either through increasing current
assets or decreasing liabilities

With the help of proper inventory management systems, like demand-based

management, etc. the company can reduce the need for working capital and
inventories can be financed through accounts payable.

The company should try and maintain an optimum level of working capital in
order to improve upon the workings of the company.