Presented By: Aswathi V Nair Roll No: 1005110 ICM-IMK

INTRODUCTION
y Working capital is the lifeblood and the controlling nerve of the business. It is an integral part of overall corporate management y

Working capital is that part of the total assets of a Corporation, which may usually and ordinarily within a short period of time, devoted to various operating purposes. Working capital consists of that portion of assets of the business which are used in or, related to current operations and represented at any one time of the operating cycle to such items as against receivables, inventories of raw materials, stores, work in progress and finished goods, merchandise, notes or bills receivables and cash.

OBJECTIVES OF THE STUDY

 PRIMARY OBJECTIVES y To study the efficiency of working capital management

of STEEL INDUSTRIALS KERALA LIMITED (SILK).

 SECONDARY OBJECTIVES y To evaluate the operating and cash cycle of the

company. y To ascertain the overall performance of the company. y To know the efficiency of the firm. y To assess the short term solvency.

SCOPE OF THE STUDY

y The study entitled WORKING CAPITAL MANAGEMENT AT STEEL INDUSTRIALS KERALA LIMITED is an attempt to understand the functions of finance department. y

The study is carried out to understand the profitability and financial performance of SILK. The study covers the statement of changes in working capital.

METHODOLOGY
y Research Methodology is a way to systematically

solve the research problem as to how the research is done scientifically. It includes:
 Research Design  Nature of Data  Source of Data  Tools of Data Collection  Limitation of the Study

Research Design

A Research work will be successful, only with a sound research design. The research design for the purpose of the study is analytical in nature. The major purpose of analytical research is to analyze the state affairs as it exists at present. Analytical Research Includes Survey and in - depth analysis of variables. The research plan calls for gathering primary and secondary data.

Contd
Nature of Data
Information for this work has been collected from previous records viz., Profit and loss account and balance sheet of the past five years. Both primary and secondary data have been used for the study.

Sources of Data
y Primary Data y Secondary Data

Contd
 Tools of Data Collection
Tools used for the purpose of the study are Ratio analysis and statements of changes in working capital. The tables and charts are used for the purpose of the analysis and interpretation.

Contd
 LIMITATION OF THE STUDY
y Limited Period y Limited Area y Limited Data

COMPANY PROFILE


SILK is a multifaceted company with powerful combination of products, projects and engineering services for various customers.

The corporate office is situated at Athani. Here forgings, castings and foundry works are undertaken.  It also extends services towards the core sectors like defence, railway , power engineering agency and exports. SILK has single board of Directors and Chairman.


TOOLS OF ANALYSIS
WORKING CAPITAL ANALYSIS
As we know Working capital the excess of current assets over current liabilities and provisions. In other words it is the Net Current Assets or Net Working Capital. Working capital is the lifeblood of business. Adequate amount of working capital is essential for the smooth running of the business. The liquidity position of the firm is totally effected by the management of working capital. So, a study of changes in the uses and sources of working capital is necessary to evaluate the efficiency with which the working capital is employed in a business. This involves the need of working capital analysis and this analysis includes: y Ratio analysis y Fund flow analysis y Budgeting

FINDINGS
y Liquidity Ratio shows that current asset is insufficient to meet the current liabilities. But the quick ratio is satisfactory and also the absolute liquid ratio is not sufficient the firm has made more investment in liquid assets. y W.C turnover ratio maintained by the company is not satisfactory It shows the inefficiency in utilization of net working capital. y Debt Equity ratio is not satisfactory.

Contd
y The proprietary ratio is also not satisfactory. It indicates greater risk to creditors. y The solvency ratio is satisfactory. The lower the ratio, more stable will be the company's long term solvency position. y Net profit ratio shows a negative figure in all periods. This indicates net loss earned by the company. Hence, it is not satisfactory.

SUGGESTIONS
y Since the current ratio is less than the standard form 2:1, the company has to try to increase the current assets and its effective and efficient use. y The company must get low cost borrowings and also try to use it efficiently. y The company must utilize its available resources efficiently. y Firm can enhance level of outsiders fund through borrowings to meet the increasing operating needs. y The firm must follow a good inventory management system for avoiding the over stocking and under stocking.

CONCLUSION
STEEL INDUSTRIALS KERALA LIMITED (SILK), has overcome many problems. Now it has a planned, well organised and have implemented good management system. It has the objective of achieving a better position in the market and wants to stain number one in the industry. y Finance is the lifeblood of any business. The primary motive of any business is to earn maximum profit by optimum utilization of its resources. Profit determines the financial soundness of the firm. This study has been conducted in order to find out financial position of SILK . The study reveals that the company has to make effort to increase its overall financial position.
y

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