Indian telecom industry was set up in 1948, in technology capital Bangalore. ITI limited is the country’s premier public sector unit with state-of-the-art manufacturing facilities at six locations; Bangalore in Karnataka, Naini, Rae Bareli, Mankapur in Uttar Pradesh, Srinagar in J&K and Palakkad in Kerala. The company has in-house R&D centers and its extensive marketing-cum-service outlets are spread across the length and breadth of the country.
This is a report about the training conducted in Indian Telecom Industry Ltd. Its Registered and corporate office is situated in Doorvaninagar, Bangalore on the title Effectiveness Of Working Capital Management .
Working capital management ensures a company has sufficient cash flow in order to meet its short-term debt obligations and operating expenses. Any company whatever the business it carries the profitability is by management of working capital. Through management of working capital at Indian Telecom Industry, it assures the availability of funds to meet the required working capital or day to day operations of the firm. Implementing an effective working capital management system is an excellent way for many companies to improve their earnings.
* It consists of information on the industries, its features, role, various domains, and growth of industries in India. An introduction on Telecom industry has also been given. * It consists of general introduction on Working Capital Management and various other theory aspects under it. The study includes statement of the problem, objectives, the research methodology adopted and the limitations. * It includes the analysis and data interpretation done by using various relevant ratios with the help of tables and graphs. * It gives the details on the findings, suggestions and conclusion based on the analysis done.
1.INTRODUCTION Working capital is the life blood and nerve centre of a business. Just as circulation of blood is essential in the human body for maintaining life, working capital is very essential to maintain the smooth running of a business. No business can run successfully without an adequate amount.
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. In other words working capital is the amount of funds necessary to cover the cost of operating the enterprise.
Working capital means the funds (i.e.; capital) available and used for day to day operations (i.e.; working) of an enterprise. It consists broadly of that portion of assets of a business which are used in or related to its current operations. It refers to funds which are used during an accounting period to generate a current income type for the major purpose of firm. .
A firm must have adequate working capital, i.e.; as much as needed the firm. It should be neither excessive nor inadequate. Both situations are dangerous. Excessive working capital means the firm has idle funds which earn no profits for the firm. Inadequate working capital means the firm does not have sufficient funds for running its operations. It will be interesting to understand the relationship between working capital, risk and return. The basic objective of working capital management is to manage firms current assets and current liabilities in
such a way that the satisfactory level of working capital is maintained, i.e.; neither inadequate nor excessive. Working capital some times is referred to as “circulating capital”. Operating cycle can be said to be t the heart of the need for working capital. The flow begins with conversion of cash into raw materials which are, in turn transformed into work-in-progress and then to finished goods. With the sale finished goods turn into accounts receivable, presuming goods are sold as credit. Collection of receivables brings...