TERM PAPER PRESENTATION

ON TOPIC
“WORKING CAPITAL MANAGEMNT – A CASE
STUDY OF ACC LIMITED”

PRESENTED BY :-

DILIP KUMAR
MBA 4TH SEMESTER
2009MB0010
 INTRODUCTION
WORKING CAPITAL MANAGEMENT – A
CASE STUDY OF ACC LTD.

• An attempt has been made to make critical

study of the various dimensions of the
working capital management of ACC LIMITED.
 OBJECTIVE OF STUDY
 To determine the amount of working capital
requirement and to calculate various ratios
relating to working capital.

 To suggest the steps to be taken to increase

the efficiency in management of working
capital.
 RESEARCH METHODOLOGY
 This project is based on secondary information
collected through five years annual report of
the company, supported by various books and
internet sites. The data collection was aimed
to study the working capital management of
the company.
 INTRODUCTION – ACC LIMITED
Name of company : ACC Limited
Name of industry : Manufacturing
Registration No : L26940MH1936PLC002515
Founded : 1936, By F.E. Dinshaw
Headquarters : 121 Maharshi Karve Road, Mumbai
Stock Index : 500410 on BSE
ACC on NSE
Type : Public co.
Products : Cement and Concrete
Key People : Mr.. N. S. Sekhsaria, Chairman
Profit (after tax) : 1461 Crore (2010)
Operating Income : 2043 Crore (2010)
Net Income : 1893 Crore (2010)
Employees : 10816(2010)
Website : www.acclimited.com
 WORKING CAPITAL MANAGEMENT
Concept of Working Capital
Working capital refers to short-term funds, need to
meet operating expenses. It refers to the funds; to
finance its day-to-day operations. It is concerned with
current assets and current liabilities. If a firm can’t
maintain a satisfactory level of working capital, it may
become insolvent or bankrupt. Broadly there are two
concepts of working capital, such as:-

1.Gross Working Capital.

2.Net working Capital.
Types of working capital
 COMPONENTS OF WORKING CAPITAL

• Cash and equivalents.

• Accounts receivable.
• Accounts payable.
• Inventory.
• Accrued expenses and taxes payable.
  
SIGNIFICANCE OF WORKING CAPITAL
OPERATING CYCLE CONCEPT
Working Capital Cycle
ANALYSIS OF FINANCIAL STATEMENTS OF ACC
LIMITED
CALCULATION OF WORKING CAPITAL FOR FIVE YEARS
WORKING CAPITAL RATIOS
 CONCLUSION
• It is suggested that the company has to increase its current assets to
meet its short-term obligations.
• Company has to improve debtors’ collection period continuously so
that effective receivable management will possible.
• Reserves should be utilized for the growth of the company.
• While forecasting cash flow, the management should take into
account the impact of unforeseen events, market cycles and actions
by competitors. The effect of unforeseen demands of working capital
should be factored in.
• Collaborating with the customers & suppliers instead of being
focused only on own operations will also yield good results. If
feasible, helping them to plan their inventory requirements efficiently
to match their production with their consumption will help reduce
inventory levels.
 LIMITATIONS
 This study is complete based on information available from
secondary sources on internet and the company website.
 Due to time and resource constrains, first hand contact with the
company could not be established and the data was informally
collected.
 In the study only one company has been considered.
 REFERENCES
1. Pandey I M, (2008) Working Capital Management, Financial Management, pages
577-590.
2. Maheswari.N.S (2009), Working Capital Management, Elements of Financial
Management pages D 3- D 25.
3. http://www.acclimited.com/newsite/finance/annual_report_2010.pdf,[last accessed
on 12th April,2011 8:10 p.m.]
4. http://www.scribd.com/doc/14040291/working-capital-management-Finance Ppt-
[last accessed on 12th April 2011, 9:00 pm.]
5. http://www.ediindia.org/doc/SpecialPDF/chp-14.pdf [ last accessed on 12th 2011,

9:30 pm.]
6. http://www.indiastudychannel.com/resources/71789-Working-Capital-Management-P
roject-for-MBA.aspx
[ last accessed on 12th April 2011, 10 pm.]