TITLE - STUDY OF WORKING CAPITAL MANAGEMENT AT KPCL PUNE

TITLE - STUDY OF WORKING CAPITAL MANAGEMENT AT KPCL PUNE

                                           

Chapter 01

1.1 Introduction

Management is an art of anticipating and preparing for risks, Uncertainties and overcoming obstacles. An essential precondition for sound and consistent assets management is establishing the sound and consistent assets management policies covering fixed as well as current assets. In modern financial management, efficient allocation of funds has a great scope, in finance and profit planning, for the most effective utilization of enterprise resources, the fixed and current assets have to be combined in optimum proportions.

Working capital in simple terms means the amount of funds that a company requires for financing its day-to-day operations. Finance manager should develop sound techniques of managing current assets.

1.2 WHAT IS WORKING CAPITAL?

Working capital refers to the investment by the company in short terms assets such as cash, marketable securities. Net current assets or net working capital refers to the current assets less current liabilities. Symbolically, it means, Net Current Assets = Current Assets Current Liabilities.

Working Capital Management is a very important facet of financial management due to: Investments in current assets represent a substantial portion of total investment. Investment in current assets & the level of current liabilities have to be geared quickly to change sales. For a better understanding I will conduct this study on Kirlosker pneumatic company limited.

1.3 About KPCL  Puna

Established in 1958, Kirloskar pneumatic company limited started with the manufacture of air compressors and pneumatic tools. Immediately thereafter the company expanded. It s activated in the field of air-conditioning and refrigeration a machinery. Further diversification in the manufacture of hydraulic power transmission equipment followed. Kirloskar pneumatic is held in high esteem for process system engineering and turnkey project expertise. The result of its success in this area is reflected in company s association with virtually every project and industry in the country.

At Kirloskar pneumatic, up to date manufacturing facilities, including CNC machine stringent quality control procedures and system, Rand D, foundry, heat treatment facilities, screw rotor machines, gear grinding machines, metallurgical and metrological labs, tool room, and an integrated computer system have all been set up with the sole idea of achieving the highest standards of quality and performance. KPLC is among the first few companies in India to secure the ISO 9001certification in all its operations. Companies products are manufactured under the survey of renowned inspection agencies such as Lloyd s, MMD, IRS, NTPC, EIL, PDIL, DGS and D, RITES, And many more. And are well accepted not only in India but also in countries of south east Asia, Africa, gulf, middle east, west Asia, Europe, and U.S.

1.4 Rationale of the study

This report will be discus all the activities come under working Capital Management. The reports will start with the background history of the bank such as when it establishes the branches, product details and Capital and funds details. It will explain all about composition of working capital as well as planning of working Capital. How the transactions are made by the company, using of operating cycles and cash and credit management system of company including cash and payments. With the help of different ratio analysis we will try to find out system of working capital management in the company.

The Kirloskar Group is an Indian conglomerate with sales exceeding $3.5 billion. The Kirloskar Group today exports to over 70 countries, especially within India and over most of Africa, Southeast Asia and Europe. The flagship & holding company, Kirloskar Brothers Ltd established in 1888, is India's largest maker of pumps and valves and also undertakes construction projects through its subsidiary Aban Construction. It is headed by Mr Sanjay Kirloskar.

To read more…….

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