A study of working capital management, undergone at reddy’s polymers processing ltd., hyderabad india

Author: 
Muni hari krishna. R

The management of the working capital of vital importance and forms a major work load function of finance manager and his teaming every organization. The working capital of any business is the capital requires funding its current assets. Working capital management is concerned with problem that arises in attempting to manage the current assets, current liabilities and inter relations that exist between them. Neglect of management of working capital need may results in technical insolvency and even liquidation of business unit. Inefficient working capital is dangerous for the organization. The management of the working capital is vital importance to companies and forms a major work load function of finance manager and accountant it is the amount of fund, which a company must have to finance its day-to-day operations.
Methodology: The project “Evaluation of Financial Performance using Ratio Analysis” is based on the information collected from the annual report and balance sheets of the company. The different ratios are calculated from the items of balance sheet and analysis is given, thus evaluating its financial performance. Analysis is a powerful tool in evaluating a firm’s financial performance.
Results: The proportion of current asset, inventories and sundry debtors constitute nearly 94.53% where as the current liabilities in 2009 is 94.99%and the current asset in 2010 is 96.11% and the current liabilities 94.94% so the working capital is in increasing trend.

 

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