A STUDY ON

WORKING CAPITAL MANAGEMENT

With reference to

(SUJALA PIPES PRIVATE LIMITED)

Nandyal,Kurnool District
A Project report submitted to Andhra University, Visakhapatnam in
Partial
fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
Shaik.GouseAhamed
Regd No: 2085454040
Under the guidance of
Mr.P.V.PRASAD M.B.A.HOD - BBM
Asst.Professor.

AQJ CENTRE FOR P.G. STUDIES

DEPARTMENT OF MANAGEMENT STUDIES
(Affiliated to Andhra University)
VISAKHAPATNAM- 531 173
(2008-2010)
 INTRODUCTION

Working capital refers to a firm’s investment in short-

term assets, viz., cash, short-term securities, debtors, etc., It
can also be regarded as that portion of the firm’s total capital
which is employed in short-term operations. It refers to all
aspects of current assets and current liabilities. In simple
terms, working capital is the investment needed or day-to-day
operations.

Change in its value or without affecting the operations of

any firm. Current liabilities are those liabilities, which are
intended to be paid within a year out of the current assets or
the firm’s earnings.
 OBJECTIVES OF THE
STUDY
To evaluate the financial performance of the company by
using Working capital.

To analyze the working capital performance of the

company for the last five years that is 2004-2008.

To find out net working capital every current year.

To find out funds from operation was previous year.

METHODOLOGY

Primary Data :

The data was collected from the officials of the

organization.

Secondary Data :

Study was based on the secondary data, which are

collected from the books, records, journals and profiles of
the organization.
LIMITATIONS OF STUDY

1. The information used is primary from

historical annual reports like profit and loss
account, Balance sheet.

2. Since financial matters are sensitive in

nature the same could be acquired easily.
INDUSTRY PROFILE

Plastic have become synonymous with modern

living. It is undoubtedly a product which Penetrated
extensively into the common man’s life. No wonder
the industry has achieved in terms of supply of raw
material expansion and diversification of processing
capacities and manufacturing of processing
machinery and equipment.
The Government of India recognizing the
importance of plastics in agriculture appointed on
march 7th, 1981 a National Committee on the use of
plastics in Agriculture under the chairmanship of Dr.
G.V.K Rao.
COMPANY PROFILE
Nandi has it's origins in the year 1979 when Mr S.P.Y Reddy,
a technocrat left his job at Bhaba Atomic Research Centre,
Mumbai to start a plastic containers unit in Nandyal.
The company has grown at a fast pace and Mr
Reddy who sensed an opportunity in making pipes for
irrigation started manufacture of PVC pipes in year 1984 and
has fast become leading manufacturer in Andhra Pradesh and
later in India. With annual consumption of 50,000 tones of
resin, Nandi group is one of the biggest plastic processors in
Asia.
The group has either setup or acquired plants in
different geographical locations of south India to improve
operational efficiency and to enhance customer satisfaction.
Nandi group sells PVC pipes under 4 brands of which Nandi
brand is the most prominent.
 FINDINGS
Maintenance of cash and bank balance is concerned it is too
low in relation networking capital.
Sundry Creditors have been increased considerably during the period
of study expect in 2004-05. The payment period is decreased from
60days in 2004-05 to 49 days in 2005-06 and even just 6 days in
2006-07 and 48 days in 2007-08.

There is increase in networking capital from 2004-05 to 2007-08.

Comparing the cost of sales between 2004-05 and 2007-08, it is also

increased.
 SUGGESTIONS
Cash management is not satisfactory hence it required special attention
by preparing cash budget for sufficient balance of cash, otherwise it
because tuff task to meet day to day cash requirements.
The increase is attributed because of overall increases in purchases
of raw materials, labour cost and other manufacturing and
administration costs, It is most need of the company to control these
costs at various levels.

The overall management of working capital is not good hence is

suggested to take special care in management of debtors, inventor cash and
Bank balance.
THANK YOU