INTRODUCTION: The Study is mainly on Working Capital Management in Vijai Electricals Limited.

The study is made by using finance statements of the company. Working Capital is one of the most important requirements of any business concern. It plays an important role in operations of the firm. As human cannot survive without blood, in the same way no business concern can survive without working capital. In practice, a firm has to employ short term assets and short run resources of financing in addition to fixed assets.

Working Capital represents liquidity position of the firm. Firms require adequate working capital to pay its liabilities. Hence managerial decisions relating to current assets i.e., cash, receivables, Inventory, and marketable securities are ultimately reflects the liquidity, risk, and profitability as there is a relationship between risk, return and profitability. So deciding size and future means of financing the current assets is a challenge to any finance manager. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short term debts and operational expenses.

1) TOPIC OF THE STUDY: Analysis of working capital and liquidity position of the VIJAI ELECTRICALS LIMITED by using the techniques of ration analysis. 2) NEED FOR STUDY : Need for studying capital management is to identify how efficiency the company manage its current assets i.e., inventories, accounts payables, and cash. The study is also made to know the efficiency of management. And to know effectively working capital is utilized for the operations of the company. The need of working capital rises from the gaps

in the phases of operating cycles i.e., there is a time gap between sale of goods and actual realization of cash. So the optimum level of working capital is needed to sustain the sales activities for certain period. The study is made to know whether the company has efficiency to maintain the optimum working capital or not. The study is made with emphasis on liquidity position of the company by using the techniques of ration analysis.

3) OBJECTIVE OF THE STUDY: a. To study the existing system of working capital management in VIJAI ELECTRICALS LIMITED. b. To analyze the financial performances of the company with reference to its working capital components. c. To examine the efficiency of the company in managing its current assets d. To give suggestions for improving working capital or management of the company.

4) SCOPE OF THE STUDY The Scope and period of study is restricted to the following. i) The scope is limited to the operations of the VIJAI ELECTRICALS LIMIETED. ii) The information obtained from the primary and secondary sources was limited to company. iii) iv) The key performance indicators were taken from 2005-2009. The profit and loss A/C, the balance Sheet was of last five Years.

5) METHODOLOGY: The Study basically depends on i) ii) Primary data Secondary data

PRIMARY DATA COLLECTION: The information collected directly without any reference is primary data. In the study it is mainly through conversation with concerned officers or staff members either individually or collectively. The data includes. i) ii) Through conversation with the Employees of the company Individual observations and inferences.

SECONDARY DATA COLLECTION The Secondary data are those which have been already been collected by someone else sans which have already been published. This data is obtained from journals, books, Magazines, News papers, Reports and Publications of various associations connected with business and industry, stock exchanges etc. The data of VIJAI ELECTRICALS LIMITED for the years 2005 to 2009 uses in this study have been taken from secondary sources e.g., published annual reposrts of the company. The Financial data which have been collected from the above mentioned sources is edited, classified, and tabulated as per the requirement of the study. For accessing the performance of the working capital position, the techniques of ratio analysis has beeen used. The collected data have been analyzed in three ways: i) Analysis of liquidity position ii) Analysis of gross working capital iii) Analysis of operating cycles.

6) LIMITATIONS OF THE STUDY: i) ii) The study was restricted to period of five years. The Period under study was limited to shorter period which is not sufficient to under take a comprehensive study. iii) The information required for the analysis provided by organization was limited, as the financial information of the company is confidential. 7) CHAPTER PLAN: CHAPTER - I Introduction Topic on the Study Need for Study Objectives of the Study Scope of the Study Methodology Limitations of the Study

CHAPTER II Company profile CHAPTER III Theoretical Framework CHAPTER IV Data analysis and Interpretations CHAPTER V Findings Suggestions Conclusion

BIBLIOGRAPHY

Author Title of the Book Publisher Edition Author Title of the Book Publisher Edition Author Title of the Book Publisher Edition

: I.M. PANDEY : Financial Management : Vikas Publishing House Pvt. Ltd. : Ninth Edition. : M.Y. Khan & P.K. Jain. : Financial Management : Tata Mc. Graw Hill Publishing Co. Ltd. : Third Edition : Prasanna Chandra : Financial Management : Tata Mc. Graw Hill Publishing Co. Ltd. : Fourth Edition.

Magazines : The Management Accountant ICFAI Publication

SYNOPSIS