WORKING CAPITAL MANAGEMENT IN

(Kerala Agro Machinery Corporation

Ltd) KAMCO: Athani

1.INTRODUCTION
 Working capital:Working capital
management refers to the cash a
business requires for day to day
operations, or more specifically, for
financing the conversion of raw
materials into finished gods, which the
company sells for payments. Among
the most important items of working
capital are levels of inventory, debtors
 and creditors. These items are looked
at for signs of a company efficiency
and financial strength.

 DEFINITION: According to Shubin

“Working capital the amount of
funds necessary to cover the
cost of operating the
enterprise”

According to Hoagland “Working

capital is descriptive of that capital
which is not fixed.But ,the more
common use of working capital is
to consider it as the difference
 between the book value of the
current liabilities”
 Characteristics of working of
working capital:
 Short-term needs: Working capital is
being utilized in acquiring current assets
which will be converted to cash for a short
period only.
 Circular movement: Working capital is
being converted to cash constantly which
will just be turned as a working capital all
over again.
 Element of permanency: Although it is
just a kind of short term capital , working
capital is needed by a business forever and
always
 Element of fluctuation :Working still
fluctuates every now and then even it is
something permanent
 Liquidity: It is very liquid for it can be
converted as cash any time without losing
anything.
 Less risky: Investments in current assets
such as working capital comes with less risk
for it is just for short term.
 Special accounting system no
needed:Since working capital is a short
term asset that will last for a year only,
there will be no need for adoption of a
special accounting system
2.OBJECTIVES OF STUDY
 Primary objectives of study:
 To study workingcapital management in
KAMCO, ATHANI

 Secondary objectives of study

 To study about inflow and outflow
of cash
 To study current assets
 To analyze the liquidity position of
the organization
 To study efficiency of working
capital management of the company

3.RESEARCH METHODOLOGY
Research methodology defines how the
research study was conducted or undertaken.
This includes the specification of sources of
data, research design and the method of data
collection, the sampling method andthe tools
used
 The durationof the project is 21 days
 Explorative method used to study
 Secondary data is used to study
 Sampling technique is non probability
sampling
 Tools for data collection is ratio analysis

4.SCOPE OF STUDY
To study working capital management in
KAMCO
The study enables to understand the
inflow, outflow of cash, current assets
and financial analysis

5.LIMITATIONS OF STUDY
 The study is only done in a limited
locality.
 The study is done in a limited time thus
may not be perfect and accurate