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INTRODUCTION Financial management refers to that part of the management activity which is con cerned with the planning

and controlling of firms financial resources .It deals with finding out various sources for raising funds for the firm .The sources mus t be suitable and economical for the needs of the business the most appropriate use of such funds also forms a part of financial management. Working capital management is concerned with the management of current asset .It is an integral part of financial management as short term survival is a prerequ isite for long term success .One aspect of working capital management is the tra deoff between profitability and risk .If the firm doesn t have adequate working ca pital ,that is, it doesn t invest sufficient funds in current assets ; it may beco me illiquid and consequently may not have the ability to meet its current obliga tion .If the current assets are too large ,profitability is adversely affected . The key strategies and considerations in ensuring a tradeoff between profitabil ity and liquidity is one major dimension of working capital management. The goal of working capital management is to manage the firm`s current assets an d liabilities in such a way that a satisfactory level of working capital is main tained. Working capital, in general refers to the excess of current assets over current liabilities. Management of working therefore, is concerned with the prob lems that arise in attempting to manage the current assets, current liabilities and the inter-relationship that exist between them.

OBJECTIVES OF THE STUDY The main objective of the study is to evaluate the overall analysis of working c apital of KAMCO Ltd. Other specific objectives are 1. 2. 3. 4. 5. 6. To To To To To To analyze the working capital management of KAMCO ascertain the growth of KAMCO Ltd in respect of profit ascertain the liquidity of KAMCO Ltd ascertain the efficiency of the firm understand general performance of the KAMCO Ltd get acquainted with the practical side of business

NATURE OF THE PROBLEM The problem for which this study has been undertaken is to analysis the financia l statement and to find out the components of working capital.The problem of wor king capital management involves the problem of decision making regarding invest ment in various current assets with an objective of maintaining the liquidity of

funds of the firm to meets its obligation promptly and efficiently. The study i s done to have a general view of the financial management of the company .Major areas covered in the scope of the study is financing of the company ,capital emp loyed and profitability.

HYPOTHESIS Hypothesis means a mere assumption or some supposition to be proved or disproved . But for a researcher hypothesis is a formal question that he intends to resolv e .Thus a hypothesis, may be defined as a proposition or a set of preposition se t forth as an explanation for the occurrence of some specified group of phenomen a either asserted merely as a provisional conjecture to guide some investigation or as highly probable in the light of established facts. A research hypothesis is a predictive statement, capable of being tested by scientific methods that re lates an independent variable to some dependent variable. Characteristics of hypothesis Hypothesis should be clear and precise. Hypothesis should be capable of being tested. Hypothesis should be in limited in scope and must be specific. Hypothesis should be stated as far as possible in most simple terms so that the same is easily understandable by all concerned. Hypothesis should be amenable to testing with a reasonable time. Hypothesis must explain the facts that gave rise to the need for explanation. Basic concepts concerning testing of hypothesis There are two types of hypothesi s, 1. Null hypothesis: If we are to compare method A with method B about its s uperiority and if we proceed on the assumption that both methods are equally goo d then this assumption is termed as the null hypothesis. A Null hypothesis is generally symbolized as H0. 2. Alternative Hypothesis: As against this we may think that the method A i s superior or the method B is inferior we are then stating what is termed as alt ernative hypothesis. Alternative hypothesis as H1. Ho is the non effective working capital H1 is the effective working capital INTRODUCTION TO THE INDUSTRY Agriculture is a very important sector of the Indian companies .It contributes s izably to the domestic product as also to exports .More than two-third of the wo rkforce work in agriculture and large may depend upon it, being engaged in agric ultural products, agro based industries etc. HISTORY TO THE INDUSTRY India being an agricultural based economy provides livelihood to more than 75% o f the population .Major portion of our income that is., about 70% is earned from agricultural activities .In spite of the very dominant place of agriculture, it is a depressed industry because of low productivity ,in agriculture ,small size of farms ,finance and defective equipments .Once government believed that only

large land holdings were the most efficient and they could use the latest techni ques in cultivation .how ever in recent years the emphasis has been shifted from large land holdings to small land holdings. After achieving her independence in 1947,India found herself to be badly lacking the means to meet the food demands for her vast population .The existing agricu ltural scenario presented a dismal picture traditional farming methods ,low yield ing seeds and primitive implements wholly unsuited to large scale cultivation .T he only solution lay in mechanized farming which could turn around the virtual f ortune of India .In order to achieve this objective, indigenous agro-machinery u nits were to be set up, without resorting to imports which undoubtedly passed a heavy burden on the nation s need. Agricultural is way of life ,tradition that for centuries has shaped the thought ,the outlook, the culture and economic life of the people of India, agriculture is considered to be the major activity of most of the people .Mover over 200mil lion farmers and farm workers have been the backbone of Indian s agriculture .In t he beginning, then farmers adopted ancient method. The entire process that is fr om the sowing the seed till harvesting were all done by the farmers itself .It w as a really time consuming one, which required a lot labor work. The cost of pro duction was very high and the benefits are not promising PRESENT STATUS OF THE INDUSTRY In the view of the spectacular success in the production and productivity achiev ed in developed countries through mechanization of agriculture, it was being agr eed that India also should fall in line with these countries. Though India was b ackward in the use of machines for agricultural operations, yet in the past few years there has been an increase in the use of modern implements. The phase of m echanizations of farming in the country was slow during 1950 s.There after, partic ularly since the middle of 1960 s with the coming of the new agricultural technolo gy ,this has increased .An associated effect of the new technology is the change in the agricultural practices .The preparation of land the sowing of seeds the watering of land ,the control of seeds ,the use of pesticides ,the quick harvest ing of crops etc,are now done more scientifically than ever before

FUTURE SCOPE OF THE INDUSTRY Agro-industry is looking proudly ahead into a more promising future .Future will also see diversification products in the farm mechanization field contributing significantly to the realization of the Indian dream of self sufficiency in food production and rededicating itself to the cause of self relevance and social re sponsiveness in the service of people without respite.