Working Capital Management
WORKING CAPITAL MANAGEMENT
By
D.BINISHA
Reg No: 312211631024
REPORT ON
SUMMER INTERNSHIP
AT
INTERNATIONAL INSTITUTE OF PROJECT MANAGEMENT
SSN SCHOOL OF MANAGEMENT & COMPUTER APPLICATIONS
KALAVAKKAM- 603 110
ACKNOWLEDGEMENT
I extend my sincere thanks to our Director, Prof. B. Srinivasan for inculcating in us, a passion for excellence in all our activities including this project.
I am grateful to my external guide Mr. O. ARIVAZHAGAN, CEO, International Institute of Project Management (IIPM) for providing me the much needed practical insights and guidance in carrying out this project.
I would also like to acknowledge with thanks, the support received from the other office staff, had the patience to teach and give an exposure into the corporate world.
I would also acknowledge Mr. Sampath Kumar who taught the basic concepts clearly.
I would extend my hearty gratitude towards my family and friends who gave me full support for completing the project.
TABLE OF CONTENTS
S.No CONTENTS PAGE NUMBER
1 Executive Summary 4
2 Company Background 5
3 Introduction 6
4 Classification of Working Capital 7
5 Factors determining Working Capital 8
6 Working Capital Calculation 11
7 Working capital template 13
8 Emerging Concepts 15
9 My learning 17
10 Conclusion 18
11 References 19
Executive summary: In a perfect world, there would be no necessity for current assets and liabilities because there would be no uncertainty, no transaction costs, information search costs, scheduling costs, or production and technology constraints. The unit cost of production would not vary with the quantity produced. Borrowing and lending rates shall be same. Capital, labor, and product market shall be perfectly competitive and would reflect all available information, thus in such an environment, there would be no advantage for investing in short
By
D.BINISHA
Reg No: 312211631024
REPORT ON
SUMMER INTERNSHIP
AT
INTERNATIONAL INSTITUTE OF PROJECT MANAGEMENT
SSN SCHOOL OF MANAGEMENT & COMPUTER APPLICATIONS
KALAVAKKAM- 603 110
ACKNOWLEDGEMENT
I extend my sincere thanks to our Director, Prof. B. Srinivasan for inculcating in us, a passion for excellence in all our activities including this project.
I am grateful to my external guide Mr. O. ARIVAZHAGAN, CEO, International Institute of Project Management (IIPM) for providing me the much needed practical insights and guidance in carrying out this project.
I would also like to acknowledge with thanks, the support received from the other office staff, had the patience to teach and give an exposure into the corporate world.
I would also acknowledge Mr. Sampath Kumar who taught the basic concepts clearly.
I would extend my hearty gratitude towards my family and friends who gave me full support for completing the project.
TABLE OF CONTENTS
S.No CONTENTS PAGE NUMBER
1 Executive Summary 4
2 Company Background 5
3 Introduction 6
4 Classification of Working Capital 7
5 Factors determining Working Capital 8
6 Working Capital Calculation 11
7 Working capital template 13
8 Emerging Concepts 15
9 My learning 17
10 Conclusion 18
11 References 19
Executive summary: In a perfect world, there would be no necessity for current assets and liabilities because there would be no uncertainty, no transaction costs, information search costs, scheduling costs, or production and technology constraints. The unit cost of production would not vary with the quantity produced. Borrowing and lending rates shall be same. Capital, labor, and product market shall be perfectly competitive and would reflect all available information, thus in such an environment, there would be no advantage for investing in short
References: Working capital management by Sathish .B.Mathur Working capital management by Narender Kumar Jain Working capital management- a comparative study by A.VijayaKumar http://logistics.about.com/b/2008/10/24/is-inventory-an-asset.htm http://wiki.answers.com/Q/Is_inventory_an_asset_or_liability http://en.wikipedia.org/wiki/Asset http://publib.boulder.ibm.com/infocenter/wchelp/v5r6/index.jsp?topic=/com.ibm.commerce.data.doc/concepts/cin_iminventoryasset.htm http://beginnersinvest.about.com/od/analyzingabalancesheet/a/negative-working-capital.htm http://iipmchennai.org/