CHAPTER 1

INTRODUCTION OF STUDY
 1.1 Introduction

The steel Furniture is old concept in world. There are many steel furniture manufacturing
organizations. Working capital management study is very essential because the study of working
capital is helpful for understand the level of profitability, current assets and current liability .The
working capital management is a technique of helpful for determine the financial strength &
weakness of the firm.

Now days traditional and modern steel furniture is totally different. Management is that
functions of an enterprise which concerns itself with direction and control of the various
activities to attain business objectives. Management is essentially and executive functions; it
deals with active direction of the human efforts.

There are many types of furniture .such as sofa ,sofa com bed, bed, chair, table etc
.Management is the art of knowing what you want to do and then seeing that it is done in the best
way.

Working capital management is one of the best techniques available to the management
which is determine the business condition related current assets and liability The working capital
management is concerned with all the aspects of a firm‟s financial analysis. Is a important tool of
financial analysis?

There are many uses of furniture like sitting chair, make a table for office, study. Make a
cupboard, make a bed for sleeping. Working capital is defined as the excess of current assets
over current liability. Current assets are those assets which will be converted into cash within the
current accounting period or within the next year as result of the ordinary operation of the
business. Current liability is the debts of the firm that have to be paid during the current
accounting period or within a year.
 1.2 Objectives of the study

The present study is made taken with the following objectives.

1. Find out the working capital management of the company.

2. To study & analysis of the financial statement of the company.
3. To calculate & evaluate financial performance of company.
4. To study of financial technique.
5. To control the financial position of company.
6. To study of current assets and current liability of company.
7. To know cash management of the company
8. To study the working capital operating cycle of the company
 Importance of study

The working capital management is helpful for the management decision regarding to the
financial position. The working capital management considers the level of current assets and
liability. There are the following importance’s of the study.

1.Working capital management study important for the management decision.

2.It is helpful for the regarding returned on investment of the company
3.It helps the management in decision making for the future period of time.
4.To know the present financial position of company
5.To examine the financial performance of the company through ratio analysis and statement of
changes in working capital
1.3 Scope of the study

This report is related to the study of Working Capital management to the past three year‟s
financial performance of Shrinath steel Furniture of includes financial analysis; the researcher
has to study the past performance of the company.

Period covered: the study is based on previous three years data 2010-2011 To2012-2013

Limitation of the study

1. Information regarding to the confidential matter of companies another problem.
2. It is difficult to decide the proper basis for comparison because different situation of
company in the year.
3. The study is only limited & confidential of the financial management.
4. The study provides an insight into the financial, personnel, marketing and other aspects
of Shrinath Steel Furniture. Every study will be bound with certain limitations
5. The below mentioned are the constraints under which the study is carried out.
6. Time is an important limitation. The whole study was conducted in a period of 30 days,
which is not sufficient to carry out proper interpretation and analysis.
 1.4 RESEARCH METHODOLOGY:-

Meaning:-

Research is a scientific and systematic search for pertinent information on a specific topic.
Research menaces search for knowledge. It is discovery of facts development of facts and
verification of facts. It is an attempt to find practical solution to the problem with the help of
application of scientific methods.

The Purpose of research is to discover the answer of questions through application of scientific
procedure. The aim of research is to find out the truth that has not been discovered yet.

DEFINATION:-

“Research is a quest for knowledge through diligent search or investigation or experimentation

aimed at the discovery and interpretation of new knowledge.

“Research is an art of scientific investigation”.

 SOURCES OF DATA COLLECTION:

Data collection is collection of information for project while studding a business through
different sources of data collection. It is very important aspect of any investigation.

The research methodology includes method of data collection .Data collection process begins
after research problem has been defined and research plan delight while deciding about method
of data collection to be used for studies. There are two types of data as follows.

1. Primary Data:
2. Secondary Data:

PRIMARY DATA:-

Primary data are the first hand information bearing on any research, which has been
collected by the researcher, is called as primary data.

Initially some primary information was collected with the help of branch manager and respective
staff, concerned. This data was collected through interview and by interacting with the concerned
person.

SECONDARY DATA:-

The secondary data on the other hand, are based on second hand information. The data
which have been already been collected, complete and presented earlier by any agency may be
used for the purpose of investigation such data is called as secondary data.
SOURCES OF SECONDARY DATA:-

The secondary data used for this project has been collected from varies sources like annual
reports, reference books, Magazines, journals and internet website.

The secondary is used for this project was collected from following sources:

1. Annual report
2. Reference book
3. Magazines
4. Website for this project, the data used is secondary in nature as it is mostly collected
from the secondary sources.
 CHAPTER 2

INTRODUCTION OF THE ORGANIZATION

2.1 Introduction of the Industry

“The Shrinath steel furniture” Is one of the furniture manufacturing enterprise.. This is a very
popular organization in rural level.

This Enterprise established on 13th May 2010 by the authority of Mr. Somnath Shinde. This
enterprise is established for the development of society and to improve economical condition of
the people in the rural area.

The owner ofShrinathSteel Furniture Enterprise Mr.Somnathshinde start manufacturing of steel

product He use the modern and different types of machinery in manufacturing process. This
enterprise establish that time use the traditional machinery but today use the modern machinery.
They take half amount loan and half owned cash than the start up manufacturing in enterprise.

„Shrinath Steel furniture manufacturing enterprise start that time competition is not high but
today competition level increase because other many steel manufacturing enterprise establish.In
this enterprise finished goods transfer other village

This enterprise produce different type of product such as bed,sofa,sofa come bed,chair etc.

.
Company profile

Name of company– “The Shrinath Steel Furniture Enterprise.’

Registration Act: -Company‟s act 1956.

Location–Madansinhnagar,.) Tal –Malshiras Dist-Solapur.

Establishment -13thFeb2007.

Owner of the company- Mr.Somnath Shinde..

Type of Industry:- Sole proprietor Company.

Size of Industry- Small Scale.

Name of chairman –Mr.Somnath Shinde.

Structure of The Company Department wise.

Manpower of Company-More than 30employee available in all departments.

Supply of Product– All Over District

Machinery cost– Rs10 lakh

Transport cost–Rs15000

Brand name– “SSF”

Proposed bankers–, Bank of India, Raw material– Steel and Plywood is a main raw
material.

Product–Bed, Sofa, sofa come bed cupboard official table etc…

2.2 HISTORY OF ORGANISATION

“The Shrinath Steel Furniture Enterprise was established in 13thFeb2010 under the company‟s
act 1956. The Owner of the company Mr. Somnath Shinde.“The shrinath steel furniture. “The
shrinath steel furniture Product was supplied in all Over the. and nearby.. “The Shrinath Steel
Furniture enterprise was Purchased row material in other District of states Maharashtra
&sales the Product‟s in other district.

Steel and furniture producer union was established on 13thFeb 2007 under company‟s act
1956.Mr.Somnath Shinde completed I.T.I. Than start this business because he wants to became a
businessman. When he start this business that time he have some problems .Like finance,
employee ,row material. But they solve this problem very easy. This enterprise provide
qualitative product to the customer.
On the same ideological lines &valuable guidance given by MR.Somnath Shinde and
MR.R.B.Shinde.

2.3 Subsidiaries of “The Shrinath Steel Furniture Enterprise

1) Shrinath Steel Shopy

2) Shrinath Showroom
2.4 DEPARTMENT STUCTURE

1. Administrative department
2. Account department
3. Human resources department
4. Marketing department
5. Purchases department
6. Quality control department
7. Transportation department
8. Store department
9. Production department
10. Manufacturing department
2.5 IMPORTANT STASTICAL INFORMATION
2.6 FUTURE PROSTECTS

1. Expand the Business

2. Increase satisfaction of the customer
3. Provide quality product
4. Develop rural area
5. Increase profit
2.7 ORGANISATION STRUCTURE

ORGANIZATIONAL STRUCTURE

Chairman

Managing Director

General Manager General Manager

(AA&P) (P.O.)

Finance Manager Human Resource Manager Production Manager

Financial Training Supervisors

Assistance &Development
Manager
(Pune)

Accountant Operators
Officers

Clerk Workers
Clerk
2.8 PRODUCT INFORMATION

1) Steel Bed

SHRINATH STEEL FURNITURE offering an optimum grade ranges of Designer Steel Bed.
This steel bed is high on demand among customers for its superior quality.

Features:

 Optimum strength
 Impeccable finish
 High longevity
 Durability
 2) Wooden Bed

SHRINATH STEEL FURNITURE are offering an excellent quality Wooden Bed. This range
is highly demanded in commercial and residential areas. The offered range is designed using the
finest quality material in sync with latest market trends. In addition to this, our esteemed clients
can avail this range from us in various options.

Features:

 Fine finish
 Attractive look
 Elegant design
 3) SOFA SET

Being a client oriented organization; SHRINATH STEEL FURNITURE highly dedicated to

offering a wide range of Sofa Set. The offered sofa set is precisely designed under the direction
of professionals by utilizing the top-notch quality material in accordance with market norms. The
offered sofa set is provided in several specifications on colour, wood materials, and designs.

Features:

 Light in weight
 Superior quality
 Long lasting finishes
 4) STEEL CUPBOARD

Holding a top most position in the market, SHRINATH STEEL FURNITURE offering Steel
Cupboards to our clients. Abrasion resistant materials are used to design the product.
SHRINATH STEEL FURNITURE professionals strictly checks the maintenance and
functioning of the machine before delivering it to their clients, which is why SHRINATH
STEEL FURNITURE able to keep thier clients satisfied with all our products. Keeping the
clients requirement in mind, we deliver the best quality product. These almirahs are available in
variegated specification and colors.
Features:
 Attractive look
 Spacious
 Rust-free
Specifications:
 Size: 78 x 40 x 22 inch
 CHAPTER 3

THEOROTICAL BACKGROUND
Introduction of Financial Management

Any kind of business development is depends on the management. The management is

not only essential to the business concern but also essential to bank, school, colleges, hospitals,
services sectors & charitable trust etc…. The every business unit has objective of its own.

The management is helpful for achieve the organizational goal and objectives. “The
management is not matter of pressing button, pulling lever issuing orders, scanning profit
&loss statement, promulgating rules& regulation”.

Meaning of management
Management is art of getting things done by a group of people with the effective
utilization of available resources an individual cannot be treated as managing body running any
organization. A minimum of two people is essential to form management. Theses person perform
the function in order to achieve the objective of organization.

Definition of management
“Management is art of knowing what you want to do and then seeing that is it done in the
best and cheapest way.” F.W.Taylor

“Management is principally a task of planning, coordinating, motivation, and controlling

the efforts of others toward specific objectives”. Dr. James lundy

Financial management is an area of financial decision making, harmonizing individual

motives and enterprise goal.
Scope of Financial Management

1. Estimating financial requirement

2. Deciding capital structure
3. Selecting sources of financial
4. Selecting a pattern of investment
5. Proper cash management
6. Implementing financial control
7. Proper use of surplus
Fictional area of financial management

1. The financial needs.

2. Selecting the sources of funds.
3. Financial analysis and interpretation.
4. Capital budgeting.
5. Working capital management.
6. Profit planning and control.
7. Cost-volume-profit analysis
Function of financial manager

1. Financial forecasting.
2. Acquisition of funds.
3. Investment of funds.
4. Helping in valuation of decision.
5. Maintain proper liquidity.
Introduction of working capital

Working capital management is a signification in financial management due the fact that it plays

a pivotal in keeping the wheels of a business enterprise running. Working capital management is

concerned with short-term financial decisions. Lack of efficient and effective utilization of

working capital leads to earn low rate of return on capital employed or even compels to sustain

losses. A firm invests a part of its permanent capital in fixed assets and keeps a part of it for

working capital i.e. for meeting day to day requirements. We will hardly find a firm which does

not require any amount of working capital for its normal operations. The requirement of working

capital varies from firm to firm depending upon the nature of business, production policy, market

conditions; seasonality of operations, conditions of supply etc. working capital to a company is

like the blood to human body. It is the most vital ingredient of a business. Working capital

management if carried out effectively, efficiently and consistently, will assure the health of an

organization.

Meaning

Working capital is defined as the excess of current assets over current liabilities. Current assets

are those assets which will be converted into cash within the accounting period or within the next

year as a result of the ordinary operations ofthe next year as a result of the ordinary operations of

the business. They cash or near cash resources. These include:

 1. Cash and balances.

2. Receivables.

Inventory

Raw materials, stores and spares.

1. Work in process.
2. Finished goods
3. Prepaid expenses.
4. Short term advances.
5. Temporary investments.

The value represented by these circulates among several times. Cash is used to buy raw-

materials, to pay wages and to meet other manufacturing expances. Finished goods are produced.

These are held as inventories. When these are sold, accounts receivables are created. The

collection of accounts receivable brings cash into the firm. Current liabilities are the debets of

the firm that have to be paid during the current accounting period or within a year. These

include:

1. Creditors for goods purchased

2. Outstanding expenses. i.e, expenses due but not paid.
3. Short term borrowings.
4. Advances received against sales.
5. Taxes and dividends payable.
 Other liabilities maturing within a year.

Working capital is also known as circulating capital, fluctuating capital and revolving capital.

The magnitude and composition keep on changing continuously in the course of business.

Current assets – current liabilities = working capital

Component of working capital

1. Current assets.

Current assets are those assets which are convertible into cash within a period of one year

and are those which are required to meet the day to day operations of the business. The

working capital management, to be more prices the management of current assts. The

current assets are cash or near cash resources. These include;

A) Cash and bank balances

B) Temporary investment
C) Short-term advances
D) Prepaid expenses
E) receivables
F) inventory of work-in-progress
G) inventory of finished goods
 2) CURRENT LIABILITIES

Current liabilities are those claims of outsiders of which are expected to mature for

payment within an accounting year. These include;

a) Creditors for goods purchased

b) Outstanding expenses

c) Short-term borrowings

d) Advances received against sales

e) Taxes and dividends payable

SOURCES OF WORKING CAPITAL

There are two sources of working capital, which are as follows.

Long term sources

Short term sources

Long term sources of working capital

The long term working capital requirement includes the initial working capital and the regular

working capital. The investment in the regular working capital is almost of the permanent nature

and requires long term funds. Various sources of providing long term working requirements are

summaries as follows.
Issue of shares – it is the most important source of long term working capital as far as possible;

efforts should be made to procure the maximum amount of regular working capital out of

proceeds of issue of shares. It creates no burden or fixed charges on the earning assets of the

company. More over the company is not under the obligation to return the capital.

Issue of debenture – regular working capital can also be procured by issue of debentures and

issuing debenture company may tread on enquiry in favorable conditions but it caution in raising

funds by debenture if there is on stability into the earing of the firm; because it can change the

earning assets of the company.

Retained profits - an accumulated large profit is also considered to be a good source of

financing long term working capital requirement.

Sales of fixed assets - if there is any idle asset in the firm, it can be sold out and proceeds may

be utilized for financing the working capital.

Securities from employees and customers – certain companies require a security deposit from

their employees before giving them employment under the term of service .

Term loans – mid term and long term loans for a period above 3 years provides important

source of long term working capital.

short term sources of working capital ;

short term requirement of working capital involves financing of day to day business operation.

Normally the duration of such requirements does not exceed a year. The short term sources can

be further classified into two heads.

A internal sources – when working capital is from within the main internal sources are

Depreciation funds – these funds created out of profits of the firm provide a good source of

short term requirements of working capital.

Provisions – provisions for expected expenses can fulfill a major portion of working capital

requirements.

Accrued expenses – the accrued is due but not paid expenses also important in this respect.

B) EXTERNAL SOURCES –

bank borrowings

Normal tread credits

Credit papers – under this category bills payable promissory notes etc. are included.

Tread advances – advances are taken by the seller so that they can have surplus cash in hand to
continue their business.
 CLASSIFICATION OF WORKING CAPITAL

Working capital

On the basis of On the basis of

concept periodic requirement

gross Net

positive negative

Permanent/fixed Variable working

working capital capital

Regular Reserve seasonal special

working capital margin
GROSS AND NET WORKING CAPITAL

Generally the working capital has its significance in two perspectives. These are gross working

capital and net working capitals are called „balance sheet approach‟ of working capitals .

Gross working capital;

1. Profits of they are earned by making investment of its funds in fixed and current assets.

This suggests the part of the earning relate to investment in current assets. Therefore,

aggregate of current assets should be taken to mean the working capital.

2. The management is more concerned with the total current assets as they constitute the

total funds available for operating purposes than from the sources from which the funds

come.

3. An increase in the overall investment in the enterprise also brings an increase in the

working capital

Net working capital;

The term „net working capital‟ refers to the excess of current assets over current

liabilities. It refers to the difference between current assets and current liabilities. The net

working capital is a qualitative concept which indicates the liquidity position of the firm and the

extent to which working capital need may be financed by permanent source offends.
FACTORS AFFECTING WORKING CAPITAL

The working capital needs of a firm are affected by numerous factors are as follows;

Nature of business;

In some business organizations, the sales are monthly on cash basis and the operating cycle is

also very short in these concerns, the working capital requirement is comparatively less. Mostly

service giving companies come in the category.

Production policy:

Working capital requirement also fluctuate according to the production policy.

Some productions have seasonal demand but in order to eliminate the fluctuations in working

capital, the manufacturer plans the production in a steady flow throughout the year. This policy

will even out the fluctuation in working capital.

Market conditions:

Due to competition in the market, the demands for working capital fluctuate. In a competitive

environment, a business firm has to give liberal fluctuate. In a competitive environment, a

business firm has to give liberal credit to customers. Similarly, it has to maintain a large

inventory of finished goods to service the customers promptly. In this situation, larger amount of

working capital will be required

Seasonal fluctuations:

A firm which is producing production with seasonal demands requires more working capital

during peak seasons while the demand for working capital will go down during slack seasons.

Growth and expansion activities;

The working capital need of the firm increase as it grows in terms of sales or fixed assets. This

will in turn increase investment in current assets which will result in increase in working capital

needs

Operating efficiency:

The Operating efficiency of the firm related to the optimum utilization of resources at minimum

cost. The firm will be effectively contributing to its working capital if it is efficient in controlling

operating costs. The working capital is better utilized and cash cycle is reduced which decreases

working capital needs.

Credit policy:

The working capital requirements of a firm depend to a great extent on the credit policy

followed by a firm for its debtors. A liberal credit policy followed by firm will result in huge

funds blocked in debtors which will enhance the need for working capital. The need for working

capital is also affected by the credit policy followed by the firm‟s creditors. If the creditors are
ready to supply material and goods on liberal credit, working capital requirements are

substantially reduced.

As the sales grow, the working capital needs also go up. Actually it is very difficult to establish

an exact proportion of increase in current assets, as a result of increase in sales.

1. Dividend policy:

A company has to pay dividends in cash as per company act, 1956. If a liberal policy is followed

for payment of dividends more working capital will be required. The needs for working capital

will be substantially reduced if dividend policy is conservative.

OPREATING CYCLE CONCEPT

working capital is the life blood of any business, without which the fixed assets are inoperative.

Working capital circulates in the business, and the current assets change from one form to the

other. Cash is used for procurement of raw materials and stores items and for payment of

operating expenses, and then converted into work-in-progress, then to finished goods. When the

finished goods are sold on credit terms receivables balances will be formed. When the

receivables are collected it is again converted into cash. The need for receivables are collected, it

is again converted into cash. The need for working capital arises because of the time gap

between production of goods and their actual realization after sales. The time gap is called

technically called as „operating cycle‟ or „working capital cycle‟ the operating cycle of a
company consists of time period between the procurement of inventory and the collection of cash

from receivables

cash

Purchase of
Collection of raw material
receivables

Accounts
Raw material
receivable
inventory

Issue of materials to
production & incurring
expenses

sales Work in
process

Finished
goods
 OPERATING CYCLE

Statistical Information

SRINATH STELL FURNITURE ENERPRISE

PROFIT AND LOSS ACCOUNT

.
PARTICULARS 2015 2016 2017 PARTICULARS 2015 2016 2017

To Purchases 25000 30000 33000 By Sale of steel& 25000 29500 30000

To Purchase Tax 2000 5000 6000 by Products 12000 17500 18000
To steel Processing Exp 50000 60000 64000
Transport Exps. 10000 13000 15000 By Other Income 23000 27000 27500

To Salaries & Wages 30000 45000 37000 By Net Loss 8000 8000 8500

To Manufacturing Exps. 35000 42000 47000

To Sales Exps. 2000 14000 16000

To Interest 7000 17000 18000

To Depreciation 5000 11000 9000
To Net Profit 11000 20000 13000

Total 177000 250000 261000 Total 68000 82000 84000

 CHAPTER4

DATAANALYSIS& INTERPRETETION
 Statement Showing Changes In Working Capital As Per

Balance Sheet 2016-2017

Statement Showing Changes in Working Capital.

Particular 2015 2016 2017

A) Current assets

Interest Accrued But Not Due 66000 43000 47000

Inventories 24000 30000 40000

Sundry Debtors 11000 36000 38000
Cash and bank balance 10000 31000 40000
Loan and Advances 15000 37000 20000
Total A 126000 177000 185000
B) Current liabilities

Current liabilities 30000 51000 38000

Provision 33000 17000 15000
Total B 63000 68000 53000
Increase in working capital 63000 109000 132000

Total 63000 109000 132000

 Year 2015
Interest Accured but not due Inventories Sundry Debtors
Cash and bank balance Loan and Advances

12%

8%

9%
52%

19%

Table 1
Current Asset as on 2015-16

Current Assets Amount Percentage (%)

Interest Accrued But Not Due 66000 52%

Inventories 24000 19%

Sundry Debtors 11000 9%

Cash and bank balance 10000 8%

Loan and Advances 15000 12%

Total A 126000
 It may be inferred from Table 1(2014) that the Interest Accrued but Not Due is highest ()

followed by Inventories (19%), Sundry debtors (9%), Loan and Advances (12%), The Cash and
bank balance are the least(8%) as on 31-03-2014.

Year 2015
Current Liabilities Provision

48%
52%

Table 2
Current Liabilities as on 2015-16

Current liabilities Amount Percentage (%)

Current liabilities 30000 52%

Provision 33000 48%

Total B 63000
 Year 2016
Interest Accured but not due Inventories Sundry Debtors
Cash and bank balance Loan and Advances

21% 24%

18%
17%

20%

Table 1
Current Asset as on 2016-17

Current Assets Amount Percentage (%)

Interest Accrued But Not Due 43000 20%

Inventories 30000 18%

Sundry Debtors 36000 21%

Cash and bank balance 31000 17%

Loan and Advances 37000 24%

Total A 177000
 It may be inferred from Table 1(2015) Loan and Advances that the is highest (24%) followed by
Inventories (18%), Interest Accrued but Not Due (20%),Sundry debtors (21%),, The Cash and bank
balance are the least(17%) as on 31-03-2015.

Year 2016
Current Liabilities Provision

25%

75%

Table 2
Current Liabilities as on 2016-17

Current liabilities Amount Percentage (%)

Current liabilities 51000 75%

Provision 17000 25%

Total B 68000
 Year 2017
Interest Accured but not due Inventories Sundry Debtors
Cash and bank balance Loan and Advances

11%
25%

22%

22%
20%

Table 1
Current Asset as on 2017-18

Current Assets Amount Percentage (%)

Interest Accrued But Not Due 47000 20%

Inventories 40000 25%

Sundry Debtors 38000 22%

Cash and bank balance 40000 11%

Loan and Advances 20000 22%

Total A 185000
 It may be inferred from Table 1(2016) that the Inventories is highest (25%) followed by Interest
Accrued but Not Due (20%), Sundry debtors (22%), Loan and Advances (22%), The Cash and bank
balance are the least (11%) as on 31-03-2016.

Year 2017
Current Liabilities Provision

28%

72%

Table 2
Current Liabilities as on 2017-18

Current liabilities Amount Percentage (%)

Current liabilities 38000 72%

Provision 15000 28%

Total B 53000
Working capital:->
Therefore working capital=current assets-current liabilities. As such the
following steps should be taken while preparing schedule of changes in the working capital.

1. Identify the current assets and current liabilities in the given balance sheets.

2. Compare the current assets and current liabilities of the current year with that of the
previous year and find out the difference s in each individual current assets and current
liabilities.
 WORKING CAPITAL=CURRENT ASSETS-CURRENT LIABILITIES

YEAR CURRENT ASSET CURRENT WORKING

LIABILITY CAPITAL

2015 126000 63000 63000

2016 177000 68000 109000
2017 185000 53000 132000

400000

350000

300000

250000
Year 2017
200000
Year 2016
150000 Year 2015

100000

50000

0
Current Asset Current Liabilities Working Capital
 CHAPTER4

FINDINGS & OBSERVATION

FINDINGS AND OBSERVATION:--
As the project was conducted to analyze the working capital of “SHRINATH STEEL
FURNITURE MANUFACTURING ENTERPRISE,.” for the last three years during this project
working and project report I came to finding that as follows.

FINDINGS working capital shows a good financial position of company‟s

1. The company has a adequate inventory holding period

2. The working capital condition of enterprise in year 2016-2017 is good
3. The enterprise use working capital management properly

OBSERVATION

1) Shrinath steel furniture manufacturing enterprise use working capital management.

2) In year 2016-2017 increase working capital of company.
 CHAPTER NO 6

CONCLUSION & SUGGESTIONS

 Working capital, in general practices refers to the excess if current assets over
liability. Means management of working capital is important to manage the current asset
and current liability of the company. With help working capital we can say that working
capital management is refers to all aspects of administration of both current assets and
liability.
The study of working capital is important because it know the financial sources of
company as well as the proper cash management of the company the working capital
operating cycle plays an important role for taking financial decision on regular basis
because it states with purchase of raw material and other sources and with the realization
of cash from the sale of finished goods.
Analysis of working capital useful for determining the factors affects the working
capital policy of the company and also the capital requirement of the company.
“Managing the working capital “or working capital management” is plays very
circus role in each and every sector.
CHAPTER NO 7

BIBLIOGRAPHY
Bibliography BOOKS

1) Financial management :N.M.Vechalekar (2nd edition) nirali prakashan

2) Financial management :SatishM.Inamdar (6th edition ) Everest publication

3) Financial Management - I. M. Panda

4) Management Accounting: S. K. Gupta (11th edition.

5) Financial Statement of Shrinath steel Furniture Enterprise,.

Website:- http// WWW.shrinath enterprise. Com

CHAPTER NO 8

QUESTIONNAIRE
QUESTIONNAIRE:-

I have collected data through the direct interview from the owner of the enterprise & other
employee of related the project report.

1) What is a name & type of the company?

2) How many subsidiaries &Associates of the company?

3) What is your future plan &objectives?

4) What is the current financial statement of the The Shrinath Steel Furniture Enterprise
,Akluj?

5) What is the estimate requirement of Working capital management The Shrinath Steel
Furniture Enterprise ,Akluj?

6) What is the nature & present situation of the Working capital management of The
Shrinath Steel Furniture Enterprise ,Akluj?

7) What are the different levels between current asset & current liabilities?

8) Is Working capital management used by your firm as a decision making tool?

a) Yes [ ] b) No [ ]

9) What is the qualification of your employee?

a) B. COM [ ] b) BBA [] c) MBA [ ] d) All Level [ ]

10)Do you agree that Working capital management facilities are proper understanding
of information contained in financial statement

a) Yes [ ] b) No [ ]

11)Do you think that ratio analysis is useful to management and creditors in their
business decision)

a) Yes [ ] b) No [ ]

12) Do you think that financial working capital is useful in evaluating and
predating the performances of a business as well as certifying areas

that require improvement?

a) Yes [ ] b) No [ ]