1.

INRODUCTION
Working capital management is concerned with the problems
arise in attempting to manage the current assets, the current liabilities and the
inter-relationship that exist between them. The term current assets refers to
those assets which in ordinary course of business can be, or, turned into cash
within one year without undergoing a diminution in value and without
disrupting the operation of the firm. The major current assets are cash,
marketable securities, account receivable and inventory. Current liabilities
were those liabilities which intended at their inception to be paid in ordinary
course of business, within a year, out of the current assets or earnings of the
concern. The basic current liabilities are account payable, bill payable, bank
overdraft, and outstanding expenses.

The goal of working capital management is to manage the firm’s current assets
and current liabilities in such way that the satisfaction level of working capital
is mentioned. The current assets should be large enough to cover its current
liabilities in order to ensure a reasonable margin of safety. The excess of
current assets of a business over current items owned to employees and
others. Every business needs funds are required to create production facilities
through purchased of fixed asset represent that part of firm’s capital which is
blocked on a permanent or fixed basis is called fixed basis and called fixed
capital. Funds area also needed for short term purpose of raw material,
payment of wages and other day-to-day expenses, etc., these funds are known
as workings capital. in other words,working capital refers to that part of the
firm’s capital which is required for financing short-term or current assets to
that part of the firm’s capital which is required for financing short term or
current assets , such as, cash , marketable securities , debtors inventories, bill
receivable, etc. the assets of the this types are relatively temporary in nature.
Unfortunately, there is much disagreement among financiers, accountants,
economists and businessmen as to the exact meaning of the term “WORKING
CAPITAL”.

Working capital management refers to a company's managerial

accounting strategy designed to monitor and utilize the two components
of working capital, current assets and current liabilities, to ensure the
most financially efficient operation of the company.
Literature and review
The purpose of this chapter is to present a review of literature relating to working
capital management on both theoretical and empirical grounds. Although working capital is
an important ingredient in the smooth working of business entities, it has not attracted
much attention of scholars. In finance literature, importance of working capital
management has been a common view among researchers. Justification for this common
opinion about why working capital management is significant for a firm centres on the
relationship between efficiency in working capital management and firm profitability and
how its efficient management affects the market valuation of a firm.

1. The purpose of this paper is to review research on working capital management and to
identify gaps in the current body of knowledge, which justify future direction. Working
capital management has attracted serious research attention in the recent past, especially
after the financial crisis of 2008.

2. Using systematic literature review method, the present study review 126 articles from
referred journal and international conferences published on working capital management.

3. Detailed content analysis reveals that most of the research work is empirical and focuses
mainly on two aspects, impact of working capital on profitability of firm and working capital
practices. Major research work has concluded that working capital management is essential
for corporate profitability. The major issues with prior literature are lack of survey-based
approach and lack of systematic theory development study, which opens all new area for
future research. The future research directions purposed in this paper may help develop a
greater understanding of determinants practices of working capital management.

4. Till data, literature and classification of working capital management has been almost
non-existence. This paper reviews a large number of articles on working capital
managements and provides a classification scheme in to various categories.

5. The paper contains a comprehensive listing of publications on the working capital

management and their classification according to various attributes. The paper will be useful
to researches, finance professionals and others concerned with working capital
management. Tothe best of the authors ‘knowledge, no detailed SLR on this topic has
previously been published in academic journals

OBJECTIVE OF PROJECT
To know about the working capital .The main object of this project is about of MRF
Company from 2014 to 2018 .In this project, it has several other additional analyses
are discussed .Like the problem faced while the working capital is managed in day to
day activities.

TOOLS AND TECHNIQUE

There are certain technique used of finding the optimum level of working capital or
management of different items of working capital .The following points is the main or
important technique of working capital;

 Current assets
 Current liabilities
 Profit after tax
 Cash of raw materials
 Inventory
 Cash cycle
 Operating profit
 Common size statement
 Profit before tax

In this project, we can show the working capital with the help of statistical tools such as
graph, mean deviation, chats are analysis.

DATA AND SAMPLE

It used descriptive analytical approach based on authentic secondary data taken from
various government report, newspapers, websites, research paper, and internet sources. In
this project is the report of MRF Pvt. Ltd. In the year from 2014 to 2018.

.
Steps in the Working Capital Cycle

For most companies, the working capital cycle works as follows:

1. The company purchases, on credit, materials to manufacture a product (for example,

they have 90 days to pay for the raw materials).
2. The company sells its inventory in 85 days, on average (days payable outstanding)
3. The company receives payment from customers for the products sold in 20 days, on
average.
ANALYSIS

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per
60.00 60.00 100.00 50.00 30.00
Share
Operating Profit
5,352.19 6,097.46 10,291.99 4,545.80 4,165.48
Per Share (Rs)
Net Operating
Profit Per Share 34,947.94 31,231.70 46,891.23 31,117.98 28,603.52
(Rs)
Free Reserves
-- -- -- -- --
Per Share (Rs)
Bonus in Equity
41.98 41.98 41.98 41.98 41.98
Capital
Profitability
Ratios
Operating Profit
15.31 19.52 21.94 14.60 14.56
Margin(%)
Profit Before
Interest And Tax 10.35 14.55 17.96 11.34 11.46
Margin(%)
Gross Profit
10.55 14.92 18.25 11.40 11.48
Margin(%)
Cash Profit
11.90 15.17 15.87 9.95 9.66
Margin(%)
Adjusted Cash
11.90 15.17 15.87 9.95 9.66
Margin(%)
Net Profit
7.36 10.95 12.43 6.80 6.61
Margin(%)
Adjusted Net
7.23 10.68 12.24 6.76 6.59
Profit Margin(%)
Return On
Capital 16.56 22.32 43.25 24.79 28.04
Employed(%)
Return On Net
11.37 16.98 34.54 19.87 22.00
Worth(%)
Adjusted Return
on Net 11.37 16.98 34.54 19.87 22.00
Worth(%)
Return on
Assets
22,645.31 20,146.50 16,885.09 10,651.94 8,594.71
Excluding
Revaluations
Return on
Assets Including 22,645.31 20,146.50 16,885.09 10,651.94 8,594.71
Revaluations
Return on Long
16.90 23.63 45.69 27.47 30.94
Term Funds(%)
Liquidity And
Solvency
Ratios
Current Ratio 0.89 0.91 0.87 0.99 0.89
Quick Ratio 0.55 0.61 0.62 0.82 0.55
Debt Equity
0.16 0.21 0.28 0.40 0.16
Ratio
Long Term Debt
0.14 0.89 0.21 0.27 0.14
Equity Ratio
Debt Coverage
Ratios
Interest Cover 7.53 0.16 11.44 6.78 7.26
Total Debt to
0.16 0.14 0.28 0.40 0.39
Owners Fund
Financial
Charges 10.41 11.90 13.57 8.61 9.16
Coverage Ratio
Financial
Charges
8.33 9.39 10.29 6.70 7.00
Coverage Ratio
Post Tax
Management
Efficiency
Ratios
Inventory
7.01 6.16 11.79 7.33 6.76
Turnover Ratio
Debtors
7.24 6.99 11.24 8.09 8.06
Turnover Ratio
Investments
7.01 6.16 11.79 7.33 6.76
Turnover Ratio
Fixed Assets
1.87 1.98 3.80 2.09 2.22
Turnover Ratio
Total Assets
1.33 1.28 2.18 2.09 2.39
Turnover Ratio
Asset Turnover
1.38 1.36 2.57 2.31 2.54
Ratio
Average Raw
Material Holding
Average
Finished Goods -- -- -- -- --
Held
Number of Days
In Working -- -- -- -- --
Capital
Profit & Loss
Account Ratios
Material Cost
62.77 60.57 58.63 65.42 67.08
Composition
Imported
Composition of
34.62 41.07 47.81 45.89 42.95
Raw Materials
Consumed
Selling
Distribution Cost 1.75 1.93 1.79 -- --
Composition
Expenses as
Composition of 7.82 8.81 8.49 9.35 10.16
Total Sales

SUMMERY AND CONCLUSION

I have taken MRF Company. I take the 5 years working capital of MRF
Company is considered for analysing the MRF Pvt Ltd. Company. The over finding, so that
MRF Pvt Ltd. Company Working capital Pvt Ltd. Manages working capital efficiently.The
limitation of study is data period and sample company. The data period is the limited to
2014 to 2018 and only one company is consider for studying the Working Capital

Management .
REFERENCES

 https://www.google.com/search?q=analysis+of+working+capital+managemen
t+of+MRF+company&rlz=1C1CHBD_enIN829IN829&oq=analysis+of+working+c
apital+management+of+MRF+company&aqs=chrome..69i57.37755j0j7&sourc
eid=chrome&ie=UTF-8

 https://www.moneycontrol.com/financials/mrf/ratios/MRF