Forex and Working

Capital Management in
LG Electronics Pvt. Ltd.
Presented by:
Vinish Kumari
MBA (Gen.) IIIrd Sem.
(Finance)

Introduction to the topic: Working Capital management.

To analyze the financial health,
profitability, efficiency and various
other aspect of the company.
WC is financial metric which
represents operating liquidity
available to a business
2

Working capital= Current Assets

Cont..
Forex management:
Manufacturing, import and export
companies use Forex for Foreign trade.
Companies handle rates through
banks to settle foreign payments. and
which procedures they follow, how
they handle Forex mgmt. and WC
3

mgmt. altogether form a indispensable

Objectives of study: To develop an understanding of LG

Electronic India Ltd
To develop an understanding of work in
capital of LG Electronics Ltd
To develop an understanding forex
management of LG Electronics Ltd
4

Cont..
Objective of WC mgmt:
To understand usage, impact and
strategies to control of working
capital.
Objective of Forex mgmt:
To study foreign mgmt strategies
and payment methods of the
company
Impact of Forex and ways5 to

Research Methodology: Research design is divided into two

parts:
Formulation of research problem
Developing the research plan
Types of data:
Primary
secondary
The study is descriptive and data is
6
collected through questionnaire.

Limitations: Lack of time

Small sample size
Willingness and knowledge of the
respondents
Disclosure policies of company

Conclusion: Analysis

proves

that

companys

financial and liquidity position is good.

Company has no excess or shortage of
WC.
Capital turnover ratios, fixed assets
ratios and stock turnover ratios have
improved,

this

thecompany.

is

good

sign
8

for

Suggestion: Care should be taken, further investments

in current assets may block the funds.
company may reduce borrowed capital
company may increase sales by using
new techniques
Company may use software to reduce
paper work
9

Than
k You
10