TOPIC A STUDY OF

WORKING CAPITAL
Submitted by
Himanshu Vardhan
A3923014002
BBA+MBA (DUAL)

MAHINDRA & MAHINDRA PROFILE

It is an Indian multinational automobile manufacturing
corporation.
Headquartered in Mumbai.
It was set up as steel trading company in 1945.
Key player in the utility vehicle manufacturing.
The mission is to deliver excellent customer services and
satsfaction.
Mahindra & Mahindra has a revenue of 72,474 crore rupees as
of 2015 .

OBJECTIVE
To know the optimum level of current assets &
current liabilities of the company.
To know how the adequate or inadequate of
working capital affect the liquidity position of the
company.
To study the profitability of the company

CONCEPT
Working capital is the money and assets that business
uses to finance the day to day business operations that
produce the goods and services supplied to customers.
Working capital is the amount of fund necessary to
cover the cost of operating the enterprises.
Working capital=Current assets Current liabilities.
Working funds are necessary to meet revenue
expenditure from day to day expenses like materials,
payment of wages and payments of overhead
expenses etc.

SCOPE OF THE
STUDY
To get a view about the business happiness, the
past data of some year relating to the problem are
studied and trend is determined.
The present study has been undertaken to
analyse how the working capital is being managed
in the company and how far it contributes to the
overall objective of maximization of shareholders
wealth and the organization wealth.
Also, it helps in making the production plans
regarding whether to expand or contract the
business depending upon the level of working
capital in hand.

CONCLUSION
Management Working Capital is important aspect
of financial management. The study of working
capital management of DEWAN FOURWHEELS has
revealed that the current ratio is in an increasing
trend.
The study has been conducted on working capital
management which will help the company to
manage its working capital efficiently and
effectively.
Over all the company has good liquidity position
and sufficient funds to repayment of liabilities.
Company has accepted conservative financial
policy and thus maintaining more current assets
balance.

SUGGESTIONS
Company should raise funds through short term
sources for short term requirement of funds,
which comparatively economical as compare to
long term funds.
Company should have sufficient current assets to
maintain its liquidity.
Company should change its sales policy so that
stock can be easily converted in to sales.
The current assets management should be
checked and the level of current assets should be
increased so that there is no problem of short
term financing.
To maintain its financial position company should
properly utilize its fixed assets.

LIMITATIONS
The major problem in my research study is that
which we study theoretically is totally different
from real work.
The difficulty arises in the collection of data from
the documents available in the company as they
are prepared with a different format than as we
use theoretically.
The employees of the organization were not at all
cooperative.They didnt even make us learn the
basic software in an effective manner.

THANK YOU