Professional Documents
Culture Documents
ON
WORKING CAPITAL MANAGEMENT
Guide :
Dr. Pooja Bhatia
H.O.D.
Submitted By:
Ankanksha Singh
MBA-IInd Year
Roll No. : 1205470085
INTRODUCTION
Cash
COMPANY PROFILE
Hindustan
Apart
VISION
Make
MISSION
"Enable
PRODUCTS
SCOPE& IMPORTANCE
To
RESEARCH
METHODOLOGY
RESEARCH
TECHNIQUES
OF DATA COLLECTION
Working capital management policy has a great effect
on firms profitability, liquidity and its structural
health.
For analyzing the performance of working capital
management, simple mathematical tools like
Percentages, Averages, and Ratios have been used in
this project work. To know the financial performances
of this division, calculation of Operation Cycle, Earning
before Interest & Taxes have been calculated.
Primary data:Was collected through the discussion
with the concerned executives.
Secondary data:Was collected through the official
records, various publications of the organization,
annual report and audited financial statements.
PLACE OF THE RESERCH:The research was conducted in Finance departments
in HAL Accessories Division Lucknow.
DATA ANALYSIS
2013-14
5883.47
2015-16
14655.86
152518.97
260862.93
3.85
5.61
6
5
4
3
2
5.61
3.85
1
0
INTERPRETATION
2013-14
2015-16
PERCENTAGES
The above comparison shares that: The investment in Accounts receivables is more during 2015-16. By increasing more credit the
sales have increased proportion. If more & more block of working capital. The increase in ratio indicates that the management wants
to push off the accumulated stocks & go for fresh production. However the resultant credit period extended to the customer is to be
received.
It had a sudden decrease in 2013-14 due to a sudden increase in current assets.
The percentages of accounts receivable to current assets has been 3.85% and 5.61% respectively.
CALCULATION OF AVERAGE
COLLECTION PERIOD (IN LAKHS)
PARTICULAR
A. Debtors
B. Sales
C. Average collection
period (A/B*360 days)
2013-14
2015-16
5883.47
14655.86
140816.78
140991.83
16 days
38 days
40
30
20
10
0
38
16
2013-14
2015-16
days
INTERPRETATION:
From the above table we cananalyze that:
The Average Collection Period (ACP) for the year 2013-14 &2015-16 are 16 days and 38 days.
Normally 50-60 days is the lead-time for realizing the debtors for the enterprise like HAL.
The Average Collection Period for these years is much than required.
The Average Collection Period shows the extent of time period & the efficiency in the Collection of debtors.
Thus to improve the efficiency of HAL unit at Lucknow has to shorten the Average Collection Period. Thus reduce the
liberal term to the debtors.
Average Collection Period below would be better for HAL. As more than 95% of Collections are from Government there
FINDINGS
The
SUGGESTIONS
Organization
CONCLUSION
Cash
LIMITATION
As
BIBILOGRAPHY
REFERENCE
BOOKS
MANAGEMENT
REPORTS
WEBSITES
www.google.com
www.hal-india.com
THANKYOU