A Project Proposal

Submitted By

SOWMYA R
Roll No: 0905MBA1391
Register No:
1. NEED FOR THE STUDY:

This project is helpful

 In Knowing the company’s position of fund maintenance and setting the standards
for working capital inventory levels, current ratio level, quick ratio, current
amount turnover level & web torn turnover levels.

 To the managements for expanding the dualism and the project viability and
present availability of funds.

 It is very useful as it compares the present year data with the previous year data
and there by it show the trend analysis, i.e. increasing fund or decreasing fund.

 It will give overall view of the organization and it is useful in further expansion
decision to be taken by management.

2. REVIEW OF LITERATURE:

The success of business, among other things depends upon the manner in which
its capital is managed in the dynamic business setting, the composition of working capital
mismanaged, in the dynamic business setting, the difference between the current assets
and current liabilities.

There are numerous instances in the history of business world where inadequacy of
working capital has led to business failures when a firm finds it difficult to meetings day
to day.

Thus efficient management of working capital in an important prerequisite for successful

working of a business concern it reduces the chances of business failure generates a
felling of security and confidence in the minds of personnel in the organization it
assurance solvency of steady of the organization.

3. OBJECTIVES:

The main objective of this project is to

 Examine the effectiveness of working capita management polices with the help of
accounting ratio.

 Study liquidity position of the company by taking various measurements.

 Evaluate the financial performance of the company.

 Make suggestions for policy makers for effective management of working capital

4. METHODOLOGY:

PRIMARY DATA:
The primary data was gathered through personal interaction with various
functional heads and other technical personnel. Some information was also collected by
observation.

SECONDARY DATA:
Secondary data was collected via various reports / annual reports, documents
charts, management information systems, various magazines, books, newspapers and
internet.

The analysis of the information gathered has been made on the basis of the clarifications
sought during the personal discussions with the concerned people and perception during
the personal visits to the important areas of services.
In marking observations identifying problems and suggesting certain remedies such
emphasis was given on the basis of opinions gathered during the personal discussions and
with the personal experience gained during the academic study of M.B.A course.

5. LIMITATIONS:
The following are the various aspects of limitaions involved in the analysis of the
study.

 The data used in this study have been taken from published annual report only.

 This study in conducted within a short period. During the limited period the study
may not be retailed, full fledged and utilization in all aspects.

 Financial accounting does not take into account the price level changes

6. EXPECTED DELIVERABLES:
The expected deliverables from this project includes the following:

 Data Analysis and Interpretation

 Suggestions to various problems related to financial performance of the company.
 Trade off between risk and profitability

7. REFERENCES

• www.google.com
• www.answers.com

(SIGNATURE OF STUDENT) (SIGNATURE OF GUIDE)