A

SUMMER TRAINING PROJECT REPORT

ON
“WORKING CAPITAL”

SUBMITTED TO UTTARAKHAND TECHNICAL UNIVERSITY IN

THE PARTIAL FULFILMENT OF
“MASTER OF BUSINESS ADMINISTRATION”

(TWO YEAR’S REGULAR DEGREE PROGRAMME)

SUBMITTED BY UNDER THE SUPERVISION OF

NEERU MITTAL Miss. PARMINDER KAUR

M.B.A (IIIrd SEMESTER)

Batch – 2019- 2020

UTTRAKHAND TECHNICAL UNIVERSITY

DEHRADUN

248001
CONTENTS

1
1 CERTIFICATE 3

2 ACKNOLEDGEMENT 4

3 EXECUTIVE SUMMARY 5-6

4 OBJECTTIVE OF STUDY 7

5 COMPANY PROFILE 8-10

6 ABOUT TOPIC 11-21

7 RESEARCH METHODOLOGY 22-24

8 ANALYSES AND FINDINGS 25-35

9 RECOMMENDATION 36-37

10 CONCLUSION 38-39

11 LIMITATION AND SCOPE OF STUDY 40-41

12 BIBLOGRAPHY 42-43

13 QUESTIONNAIRE 44-46

2
 Acknowledgements:
Preparing a project of this nature is an arduous task and I was fortunate enough to get
support from a large number of people to whom I shall always remain grateful.

I would like to record my gratitude to SUPER NOVA AUTO INDUSTRIES for allowing
me to undertake this project.

I take this opportunity to thank Mr. ASHOK SAINI (HR Manager)for providing us an
opportunity to work for ARC solution .

I am also desirous of placing on record profound indebtedness to Miss PARMINDER

KAUR of PHONICS GROUP OF INSTITUTION ROORKEE.

for the valuable advice, guidance, precious time and support that he offered.

I would be failing in my duty if I do not acknowledge the gratitude to Dr. KRISHAN

KUMAR GAUTAM (DIRECTOR) of PHONICS GROUP OF INSTITUTION ROORKEE
who motivated us a lot in carrying out this project.

Last but not least, I would also like to thank all the respondents for giving us their
precious time and relevant information and experience, as and when required without
which this project would not have been possible.

(NERU MITTAL)

Date:

3
 Executive summary

We “Nova Auto Industries” are a notable manufacturer of a wide assortment

of Bike Leg Guard , Saree Guards, Ladies Foot Rest Jalli, Foot Rest, Bike
Centre Stand, etc. We are a Sole Proprietorship company, established with a
motto of providing durable range of bike parts to our valued clients. We have built
a well-built infrastructural unit at shimla (himanchal pradesh India), that helps
us in manufacturing of excellent quality products.

Bike Leg Guard

Prominent & Leading Manufacturer from Ludhiana, we offer Bajaj Universal
Airfly Bike Leg Guard, Hero Bike Airfly Leg Guard, Chrome Plated Bike Leg
Guard, Honda Shine Leg Guard and Super Bike Leg Guard

4
Explore our categories

Head Light9 products available

w
Other Products products available

5
 OBJECTIVE OF THE STUDY

 My Project Report mainly focuses on “Working Capital”.

 My Project study also focuses on the main point that the basic objective of the
company.
 To ensure smooth & efficient working of a department.
 To promote individuals and collective, morals a sense of responsibilities,
regarding best utilization of resources.
 To develop the different sources of finance.
 To know the financial position of the company.
 Stability & growth.
 Development & Promotion of funds in the organization.
 To focus on Importance of financial analysis. It helps to achieve goals of
organization.
 To Compare the Assets and Liabilities of the company.

 To know the profitability position of Jay Bharat Exhaust System Ltd.

 To know about the trend of profits and sales of the company.

6
 Company profile

7
Super Nova Auto Industries
Super Nova Auto Industries is a privately owned special manufacturing group
enterprise established in 2004.
It covers 4,000 sq meters including 3,000 sq meters constructed area situated at
industrial area of Kala-Amb, Himachal Pradesh, India... approximatly 4 hours
drive from New Delhi.
It comprises injection moulding unit, BMC moulding, metallising plant, hard
coating plant, tool room and research and development department with lab
facilities. The company has rich techanical strength with latest means of
manufacturing and passed QMS test to provide best quality to meet international
standards.
The company is specilised in the production of head lights, tail lights,
accessories, etc. Also has great awarness for technology and innovation. Since
establishment, company has tried best to provide quality, reasonable prices and
excellent services for customer satisfaction beyond expectation.
We will create efforts to ensure better quality and better services everytime with
product quality, technology innovation and management.
Factsheet

Basic Information

Nature of Business Manufacturer

 Service Provider
Additional Business  Supplier

Company CEO Naveen Kumar

Year of Establishment 2004

Infrastructure
4,000 sq meters
3,000 sq meters

8
COMPANY PRODUCE
The company is specialized in the production of head lights, tail lights,
accessories,etc.Also has great awareness for technology and innovation. Since
establishment,company has tried best to provide quality, reasonable prices and
excellent services for customer satisfaction beyond pectation.
We will create efforts to ensure better quality and better services every time with
product quality, technology innovation and management

Super nova auto industries: View financial & production stats, Plant Capacities, Super
nova auto industries Upcoming Products, Market trends,

Supernova Auto Industries Sirmour India.We are Manufacturer of four wheeler

headlights, Headlight for Yamaha by Supernova Auto Industries

9
 About
Topic

10
 WORKING CAPITAL MANAGEMENT

Introduction

Every business needs funds for two purposes for its establishment and to carry out day-
to-day operations. Long term funds are required to create production facilities through
purchase of fixed assets such as plant and machinery, land building, furniture etc.
investment in these assets represent that part of firm’s capital, which is blocked on a
permanent or fixed basis is called fixed capital.

Funds are also needed for short-term purposes of raw materials, payment of
wages and other day-to-day expenses etc. these funds are known as working capital.

. MEANING OF WORKING CAPITAL

Working capital refers to that part of firm’s capital, which is required for financing short
term or current assets such as cash, marketable securities, debtors and inventories.

DEFINITIONS OF WORKING CAPITAL

In the words of Shubin, “working capital is the amount of funds necessary to cover
the cost of operating the enterprise.”

According to Genestenberg “ Circulating capital means current assets of a

company that are changed in ordinary course of business from one form to
another as for example, from cash to inventories, inventories to receivables,
receivables into cash”.

11
 NATURE OF WORKING CAPITAL
Working Capital management is concerned with the problems that arise in
attempting to manage the current assets, the current liabilities and the inter-relationship
that exists between them. The term current assets refer to these assets which in the
ordinary course of business can be, or will be, Converted into cash within one year
without undergoing the diminution in value and without disrupting the operating of the
firm, whereas the current liabilities are those liabilities which are intended, at there
inception, to be paid in the ordinary course of business, within a year out of current
assets or earning of the concern. Thus the goal of working capital management is to
manage the firm’s assets and liabilities in such a way that a satisfactory level of working
capital is maintained. The interaction between current assets and liabilities in such a
way that optimum level of current assets, the trade off between profitability and risk
which is associated with the level of current liabilities and assets, better financing mix
strategies and other short term goals are attained.
There are two concepts of working capital: Gross and Net
1. The term gross working capital, also referred to as working capital, means the total
current assets.
2. The term net working can be defined in two ways.
Difference between current assets and current liabilities.
The task of the financial manager in managing working Capital efficiency is to ensure
efficiency liquidity in the operations of the enterprise. The basic three measures of a
firm’s overall liquidity are: Current ratios, Acid test ratio, Net Working Capital. For the
purpose of working capital management

Therefore, NWC Can be said to measure the liquidity of the firm. In other words,
the goal of working capital management is to manage the current assets and
liabilities in such a way that an acceptable level of NWC is maintained.

12
 IMPORTANCE OF ADEQUATE WORKING CAPITAL

Working Capital is very essential to maintain the smooth running of the business. It
is lifeblood and nerve center of a business. No business can run successfully without
adequate amounts of working capital.
1. Adequate working capital helps in maintaining solvency of the business by providing
uninterrupted flow of production.
2. It also enables a concern to avail each discount on the purchases and hence it
reduces casts.
3. Sufficient working capital enables a business to make prompt payments and helps in
creating and maintaining goodwill.
4. A concern having adequate working capital enables and high solvency can average
loans from banks and others on easy and favorable terms.
5. Adequate working capital ensures regular supply of raw materials.
6. A concern can also pay quick and regular dividends to its investors, as there may
not be much pressure to plough back profits because of adequacy of working capital.
7. Sufficiency of working capital creates an environment of security, confidence, and
high morale and creates overall efficiency of a business.

Adequacy of working capital also enables a firm to make regular payments

of salaries, wages and other day-to-day commitments, which raises the morale of
its employees, increase their efficiency reduces wastages and costs and
enhances production and profits.

WORKING CAPITAL REQUIREMENT

“WORKING CAPITAL IS THE LIFE BLOOD AND CONTROLLING NERVE CENTRE
OF A BUSINESS.” No business can be successfully run without an adequate amount of
working capital. To avoid the shortage of working capital at once, an estimate of working
capital requirements is not an easy task and a large number of factors have to be
considered before starting this exercise. The following factors have to be considered for
this: -

13
1. The length of sales cycles during which inventory is to be kept waiting for sales.
2. The average period of credit allowed to customers.
3. The amount of cash required paying day-to-day expenses.
4. The average amount of cash required making advance payments, if any.
5. The average credit period expected to be allowed by suppliers.
6. Time lag in payment in wages and in other expenses.

From the total amount blocked in current assets estimated on the basis of first for
items given above, the total current liabilities i.e. the last two items is deducted. In order
to provide for contingencies, some extra amount calculated as a fixed percentage of
WC may be added as safety margin.

NEED OF WORKING CAPITAL

The need for the working capital (gross) or current assets cannot be over emphasized.

Given the objectives of financial decision making to maximize the shareholder’s wealth,

it is necessary to generate sufficient profits. The extent to which profits can be earned

will naturally depend, among other things. Open the magnitude of sales. A successful

sales program is necessary for earning profits by any business enterprise. There is a

need of working capital in firm of current assets to deal with the problem arising out of

the lack of immediate realization of cash against goods sold. Thus sufficient working

capital is necessary to sustain sales activity. Technically, this is referred to as the

operating or cash cycle.

14
 CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1. Gross working capital: In the broad sense, the term working capital refers
to the gross working capital and represents the amount of funds invested in
current assets. Thus, gross working capital is the capital invested in the total
current assets of the enterprise. Current assets are those assets, which in the
ordinary course of business can be converted in to cash with in a short period of
normally one accounting year. Constitutes of current assets are:

2. Current Assets

SR. No. Constitute of current Assets

1. Cash in hand

2. Cash at bank

3. Bills receivables

4. Sundry Debtors (less pro. For bad debts)

5. Short term loans and advances

6. Inventories of stocks:

(a) Raw materials

(b) Work in process

(c) Stores and spares

(d) Finished goods

15
 7. Temporary investments of surplus funds

8. Prepaid expenses

9. Accrued incomes

2. Net working capital: In a narrow sense, the term working capital refers to the net
working capital. Net working capital is the excess of current assets over current
liabilities. So,

Net working capital = current assets –current liabilities

Net working capital may be positive or negative. When the current assets exceed the
current liabilities the working capital is positive and the negative working capital results
when the current liabilities are more than current assets. Current liabilities are those
liabilities, which are intended to be paid in the ordinary course of business with in a
short period of normally one accounting year out of the current assets or the incomes of
the business. Constitutes of current liabilities:

Current Liabilities

SR. NO. Constitutes of current liabilities

1. Bills payable

2. Sundry creditors or accounts

payable

3. Accrued or outstanding expenses

4. Short term loans, advances

5. Dividend payable

16
 CLASSIFICATION OF WORKING CAPITAL MANAGEMENT:

KINDS OF WORKING CAPITAL

ON THE BASIS OF ON THE BASIS OF TIME

CONCEPT

PERMANENT OR FIXED TEMPORARY OR

GROSS WORKING
WORKING CAPITAL VARIABLE
CAPITAL NET WORKING (MINIMUM AMOUNT WORKING CAPITAL
CAPITAL ALWAYS REQUIRED)

SEASONAL W.C. SPECIAL W.C.

(SEASONAL DEMAND) (SPECIAL DEMANDS LIKE

RESEARCH)

17
On the basis of concept:

On the basis of concept working capital may be divided into two parts i.e.

A) Gross working capital: Gross working capital is the capital invested in total current
assets of the enterprise.

B) Net working capital: Net working capital is the excess of current assets over current
liabilities, so,

Net working capital= current asset – current liability

On the basis of time, it may be classified as:

A) Permanent or fixed working capital: It is the minimum amount, which is required to

ensure effective utilization of fixed facilities and for maintaining the circulation of current
assets. There is always a minimum level of current assets, which is continuously
required by the enterprise to carry out its normal business operations
For Example: every firm has to maintain a minimum level of raw materials, work in
process, finished goods and cash balance. This minimum level of current assets is
called permanent or fixed working capital as this part of capital is permanently blocked
in current assets. As a business grows, the requirements of permanent working capital
also increase due to the increase in current assets. It can be further divided into two
parts:
Regular working capital: It is that part of the working capital which is required to
ensure the circulation of current assets from cash to inventories, from inventories to
receivables and from receivables to cash and so on.

Reserve working capital: It is the excess amount over the requirement for regular
working capital, which may be provided for contingencies that may arise at unstated
periods such as strikes, rise in prices, depression.

18
B) Temporary or variable working capital: It is the amount of working capital, which is
required to meet the seasonal demands and some special exigencies. Variable working
capital can be further divided into two:

Seasonal working capital: It is that part of the working capital, which is required to
meet the seasonal needs of the enterprise.

Special working capital: It is that part of the working capital which is required to meet
special exigencies such as launching of extensive marketing campaigns for conducting
research

Importance or advantages of adequate working capital

1. Solvency of business
2. Goodwill
3. Easy loans
4. Cash discounts
5. Regular supply of raw material
6. Regular payment of salaries, wages and other day-to-day
commitments.
7. Exploitation of favorable market conditions
8. Ability to face crisis
9. Quick and regular return on investment
10. High morale.

Sources of Working Capital

1) Long- term sources: -

a) Issue of shares b) Issue of debentures

c) Long –term loans

d) Retained earning e) Sale of any old asset

19
2) Short –Term Sources: -

a) Internal sources: -
i) Provision for tax

ii) Depreciation funds

iii) Outstanding expanses

b) External sources: -

i) Normal trade credit

ii) Bills payable
iii) Overdraft
iv) Public deposit
v) Advance from customers

20
 RESEARCH
METHODOLOGY

21
RESEACH DISIGN
A research design[1] is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the problem research. The design of a
study defines the study type (descriptive, correlation, semi-experimental, experimental,
review, meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research
problem, hypotheses, independent and dependent variables, experimental design, and,
if applicable, data collection methods and a statistical analysis plan. A research design
is a framework that has been created to find answers to research questions.

DATA COLLECTION

The task of data collection begins after the research problem has been defined
and research design chalked out. While deciding the method of data collection to be
used for the study, the researcher should keep in mind two types of data viz. Primary
and secondary data.

Primary Data: -

The primary data are those, which are collected afresh and for the first time and
thus happen to be original in character. Primary data base on the collected in company
through company sources

Secondary Data:

The secondary data are those, which have already been collected by someone
else and passed through statistical process. Secondary data requirement the data from
the project from the social media & newspaper books &out sources.

Sample size:

Sample size=8 out of 20

22
SAMPLE DESIGN

Care was taken to choose the sample based on considerations like age, sex & work

experience of respondents thus enabling better representations of the heterogeneous

population. However, the sample design was that of “convenience sampling” or

“haphazard sampling” only.

PROCESSER OF RESEACH

The problems encountered during piloting testing of the data collection instrument were
addressed by making necessary adjustments to the questionnaire before administering
it on the whole study sample. After revision of the data collection instrument, the whole
study sample was subjected to the data collection instrument. A number of methods
were used to improve returns (response rate) such as drop and pick later method and
following up through reminders via telephone and email.

23
ANALYSIS &FINDING

24
Q1.WORKING CAPITAL ESTIMATION

Current assets Loans & advances FY 05-06 FY 06-07 FY 07-08

Currents assets

Inventories

stock in trade 223.94 662.87 1176.85

work in progress 2528.4 4563.76 8714.56

raw materials 7224.96 8145.37 9242.58

stores and spare parts 1131.8 1463.13 1810.73

Total Inventories 11109.1 14835.13 20944.72

Debtors 5516.14 7402.6 14211.12

Cash & Bank balances 1027.1 8042.12 5225.01

(subtracting FCCB issue unutilized -6910.46 -5272.52

money as it amounts to long term

liability)

loans and advances 3249.1 7529.5 8647.1

Net current assets 20901.44 30898.89 43755.43

Current Liabilities FY 05-06 FY06-07 FY 07-08

Sundry Creditors 1476.37 1589.57 3748.82

Creditors for capital expenditure 1456.05 365.64 258.4

other liabilities 342.26 645.34 621.04

25
unclaimed dividend 21.33 31.66 35.29

sundry deposits 174.14 229.23 321.66

advances from customers 217.21 362.59 73.55

interest accrued but not due on loan 7.04 20.05 32.12

Net current liabilities 3694.404 3244.08 5090.88

INVENTORIES

In the context of United Engineering Services the major increase in the present three

financial years has been of the inventory.

INVENTORIES

25000

20000
stock in trade
15000 work in progress
raw materials
10000 stores and spare parts
Total Inventories
5000

0
FY 05-06 FY 06-07 FY 07-08

Reasons:

 The pile up of inventory that is used in trial run, before hand to be used in the

checking the machinery & the newly installed production capacity.

 The increased inventory to produce more goods so as to utilize the new plant set

up

26
Q2.DEBTORS AND AVERAGE RECEIVABLES

The debtors are increasing heavily in the financial year 06-07 because of a sales boom

that has accounted for huge accounts receivables increase

DEBTORS AND AVERAGE RECEIVABLES

16000
14000
12000
10000
8000 Debtors
6000
4000
2000
0
FY 05-06 FY 06-07 FY 07-08

27
Q3.CASH AND BANK BALANCES

Cash and bank balance as per the balance sheet it is seen to be increasing but from the

above chart it is seen to be decreasing. This discrepancy can be attributed to the fact

that balance sheet figures carry additional cash balance of unutilized FCCB issue

proceeds which amount to long term liability as well.

CASH & BANK BALANCE

5225.01
FY 07-08

8042.12
FY 06-07 Cash & Bank balances

1027.1
FY 05-06

0 2000 4000 6000 8000 10000

28
Q4.LOANS AND ADVANCES

Loans & advances are increasing on the part of increased advances that are given to

pile up inventory when the company went for the expansion mod

LOANS AND ADVANCES

FY 05-06
17%

FY 07-08 FY 05-06
44% FY 06-07
FY 07-08
FY 06-07
39%

includes cash & those assets which can be easily converted into cash within a short

period generally one year such as marketable securities , bills receivables, sundry

debtors, inventories, work in progress, prepaid expenses etc .The total current assets

are the sum of below contingency i.e.

29
Q5.Current Assets = Stock/ Inventory + Sundry Debtors + Advances +

Cash and bank balances + other current assets

CURRENT ASSETS

loans and advances

FY 07-08
Cash & Bank balances
Debtors
Total Inventories
FY 06-07
stores and spare parts
raw materials
work in progress
FY 05-06
stock in trade

0 5000 10000 15000 20000 25000

NET CURRENT ASSETS

FY 05-06
22%

FY 07-08
46%

FY06-07
32%

Conclusions: The trend of the current assets in United Engineering Services

throughout the period from 2005-08 are shown in the pie-chart

30
Q6.CURRENT LAIBILITIES

These are those obligations which are payable within a short period of generally one

year and includes outstanding expenses, bills payable, sundry creditors, accrued

expenses, bank overdraft, short term advances, income tax payable .

TOTAL CURRENT LAIBILITIES

Sundry Creditors
4000
Creditors for capital
3500
expenditure
3000 other liabilities
2500
2000 unclaimed dividend

1500
sundry deposits
1000
500 advances from
0 customers
FY 05-06 FY06-07 FY 07-08 interest accrued but not
due on loan

31
Q7. Net Current liability

NET CURRENT LAIBILITIES

6000

5000

4000

3000 Net current liabilities

2000

1000

0
FY 05-06 FY06-07 FY 07-08

Conclusion: The trend of Current Liabilities of United Engineering Services throughout

the period from 2005-2008 are shown in the table. It is evident from the table that it

shows increasing trends in the year 2005 to 2008. It shows that the United Engineering

Services has stability in trends of Current Liabilities.

32
Q7(i).CREDITORS AND CREDITORS OF CAPITAL EXPENDITURE

Creditors of United Engineering Services limited are increasing from 70 Cr

(FY 05-06) to 18 Cr (FY 06-07) to 12 Cr (FY 07-08). The main reason for

the increase in can be attributed to the heavy purchase of the inventory for

stocking it up for trial run & use before the expansion mode.

Creditors for capital expenditure seem to be decreasing over the three

years i.e. from 18Cr (FY 05-06) to 12 Cr (FY 06-07) which is in sync with

the fact that the expansion work that has been in process and all

preparations for that are coming to an end.

CREDITORS FOR CAPITAL EXPENDITURE

1600
1400
1200
1000 Creditors for capital
800 expenditure
600
400
200
0
FY 05-06 FY06-07 FY 07-08

33
Q8. RATIO ANALYSIS

FY 05-06 FY 06-07 FY 07-08

Current assets 29843.52 47163.72 61410.49

current liabilities 7611.44 6597.95 7459.4

quick assets 12759.32 14530.46 20880.64

quick liabilities 7611.44 6597.95 7459.4

Net turnover (sales) 45503 52527.1 81786.93

working capital 22232.08 40565.77 53951.09

average inventory (average of opening & closing

stock of year) 8594.615 14476.465 22666.83

cost of goods sold = cost of sales 37398 47018.31 67855.4

total assets 87666 124436.12 138465.6

total annual expenses -(depreciation +debt

expenses) 37313.16 27364.06 23898.65

average gross income 97754.89 63633.37 51858

PROFIT before interest and taxes 5998 8120.16 14612.92

Total interest 747.8 2653.75 5214.77

Net Profit after tax (NPAT) 4115 3893.37 7383.56

capital employed (FA+CA-CL ) 89529.68 106917.71 111772.7

investment (FA+CA) 97141.12 113515.66 119232.1

Fixed assets 67297.6 66351.94 57821.59

34
RECOMMENDATION

35
1. Company is having huge loans which results in the financial expenses, so proper
strategies and techniques of budgeting should be used which results in the proper
utilization of borrowed money.
2. Company should use Management Information System (MIS) as it provides very
effective information, which ultimately helps in decision-making. This results in the
proper future projections effectively.
3. Net Profits is going low. Effective efforts should be taken for this the company must
reduce indirect expenses and to control unnecessary costs.
4. Company should install modernized equipments and machines in the production
plants and new techniques should also be used to produce.
5. Improve co-operation and co-ordination among the departments.
6. Proper market survey should be conducted to know consumers/dealers buying
behavior.
7. JBES is leading company in the Indian manufacturing industry. It has the maximum
market share in domestic market. But as far as international market is concerned, it
exports only 5% of the total production, which is needed to increase.
8. The company needs to improve a lot in advertisements. Advertisements are the best
way to enhance the sales and ultimately the revenues. But the company is not able
to advertise its products properly, due to which the customer is unaware of any
brand that comes from JBES. It is a common saying that “out of sight is out of
mind”. Therefore the company must make attempts to use proper advertising media
so as to set their brands in the minds of the consumers. It should be more
consumers oriented rather than being customer oriented.

36
 CONCLUSION

37
CONCLUSION

Working capital management is an important aspect of any business. Every business

concern should have adequate working capital to run its business operation. Every

concern should have neither redundant of excess working capital nor inadequate or

shortage of working capital. Both excess as well as short working capital positions are

bad for any business.

The three elements of working capital management are cash management receivable

management and inventory management. If a finance manager maintains these three

elements of working capital management properly means the concern will get dramatic

improvement in their sales volume and also in business. Working capital policies of a

firm have a great effect on its profitability, liquidity and structured health of the

organization.

Every concern should adopt some new tread management strategies that will help in

greater productivity, inventory optimization and also better working capital management.

So, it is noted that working capital is a means to run business smoothly and profitability.

Thus, the concept of working capital has its own important in a going concern.

Good management of working capital is part of good finance management effective use

of working capital will contribute to the operational efficiency of a department; optimum

use will help to generate maximum return.

38
 LIMITATION

39
LIMITATION

Following Limitations faced by me during the Study of the Project as: -

1. Time Limitations
2. Unavailability Of Proper Material
3. Lack Of Guidance
4. Organizational Restrictions
An Explanation of the Above: -

Time Limitation

The time was a limitation during completion of the report. The time was not enough to
cover all the points about the topic. Also it was a tough job to understand all the
recruitment and selection in this short period. It brings the eagerness in completion of
the report

Unavailability Of Proper Material

The lack of proper material was also a limitation when developing the report.

Lack Of Guidance
There was lack of guidance at some of the stages. The supervisors sometimes were not
able to give proper guidance because of his own job responsibilities and lack of time.

Organizational Restrictions

There were restrictions on the supervisor and on the respondents to very much clear all
the policy and process.

40
 BIBLOGRAPHY

41
BIBLOGRAPHY

Financial Management theory and practice by Prassanna Chandra

Financial Management theory and practice by Shashi .K. Gupta & R.K. Sharma.

Www. Google.com, www. Wikepidia.com

42
 QUESTIONNAIRE

43
Q.1 Do you think working capital Estimate is Accurate ?

 Yes ( )

 No ( )

Q.2 Debtors and average receivable is Receive ?

 On the spot ( )

 After work ( )

Q3. Cash Available on time?

 Yes ( )

 No ( )

Q4. Loan is paid to the organization for work?

 Yes ( )

 No ( )

Q5. Net current asset is easily converted?

 Yes ( )

 No ( )

Q6. Current liability is easily converted on time?

 Yes ( )

 No ( )

44
Q7. Creditors of the organization is give payment on time?

 Yes ( )

 No ( )

Q8.Analyses of the ration is analyze by the organization is accurate?

 Yes( )

 No( )

45