SYNOPSIS CONTENT

WORKING TITLE PURPOSE OF THE RESEARCH AIM OBJECTIVES KEY QUESTIONS HYPOTHESIS RESEARCH METHODOLOGY PROPOSED CONTENT WORK PLAN

WORKING TITLE

IMPORTANCE OF WORKING CAPITAL FOR A COMPANY (NALCO) AND ITS FINANCIAL PERFORMANCE ANALYSIS FOR 2006-07&2007-08

PURPOSE OF RESEARCH
Working capital is considered as central nervous system of a firm.The importance of working capital management is reflected in the fact that financial managers spend most of their time in managing current assets and current liabilities. Thus the importance of working capital for a company(Nalco) and its analysis for the year 2006-07 $2007-08 would help us : 1. To disclose the goal of working capital management. 2. To ensure aqequate flow of fund for current operations. 3. To disclose the financial performance of the organization for the year 2006-07 &2007-08. 4.To Decide the structure of current assets(i.e,the proroption of long term and short term capital to finance current assets). 5 To determine the various sources of working capital . 6 To evolve suitable policies , procedures and reporting system for controlling the individual components of current assets(mainly cash ,receivables and inventory).

AIM

This research particularly aims at the importance of working capital for a company(Nalco),and its various components.Also it aims to analyse the performance of Nalco for the year 2006-07&2007-08.

OBJECTIVES

Importance of working capital for a company(Nalco) and its analysis covers To ensure optimum investment in current assets. To strike a balance between the twin objective of liquidity and profitability in the use of funds. To know the cash management system To study the working capital position of a corporation. To study the liquidity position of a corporation. Toensure aqequate flow of fund for current operation. To speed up the flow of funds or to minimize the stagnation of funds. To study the performance of a company by ratio analysis.

KEY QUESTIONS

1.How the working capial of an organization is determined?

2. How to ensure optimum investment in current assets? 3. How to find out the health of the organizations in terms of various ratios so far as efficiency relating to operational, liquidity, and debt servicing is concerned? 4.How to compare the financial performance of Nalco for the year 2006-07$200708?

HYPOTHESIS
H1: The Financial performance of the organization over the period of study is quite satisfactory.

H2: The working capital of the Organization over the period of study is towards fulfilling the objective intended.

METHODOLOGY PRIMARY DATA COLLECTION 1. QUESTIONNAIRE FROM ACCOUNTANT 2. SURVEY FROM VARIOUS DEPARTMENT Finance department
production department corporate planning & project department systems department sales department SECONDARY DATA COLLECTION 1. REPORT ANALYSIS Annual report Company archive & brochure

QUESTIONNAIRE Questions Asked to Manager (Accounts):-

What are the company sources of working capital? What is the approaches that a company (Nalco) follows for financing current assets? Is the working capital excess or deficit in a company? Is the company efficient in keeping a balance between liquidity and profitability? Which concept a company is following while calculating working capital? A Gross working capital concept B Net working capital concept Do you think company is keeping excess inventory ?
A.YES B.NO

What are the factors that influence working capital of a company(Nalco)?

THANKS FOR YOUR VALUABLE TIME

PROPOSED CONTENT
CHAPTER 1 : INTRODUCTION

(a)Company Profile (b)Objective of the study (c) Research methodology and scope of the study. (d) Limitation of the study CHAPTER 2 : THEORITICAL APPROACH TO WORKING CAPITAL (a)Concept of working capital (b)Need of working capital (c)Importance of working capital (d)Factors determining working capital (e)Financing of working capital CHAPTER 3 : WORKING CAPITAL MANAGEMENT ANALYSIS IN NALCO (a)Inventory management in NALCO (b)receivable management in NALCO (C)Cash management in NALCO CHAPTER 4: FINANCIAL ANALYSIS (a) Ratio analysis CHAPTER 5: FINDINGS CHAPTER 6: SUGGESTION

CHAPTER7:CONCLUSION CHAPTER8:BIBLIOGRAPHY

WORK PLAN SCHEDULE OF INTENDED PROJECT WORK; Project duration Work plan Time required : 45 days : weekly basis. : 6 weeks.

1st and 2nd week: In the first two weeks I will be getting a brief description about Nalco. They will also let us know about the working procedures and products of Nalco. I will go to different department of Nalco to collect information about Nalco and its various sources of funds.also I will collect its financial statement .I will go through published literature in different magazines and journals and browse net to collect information about various components of current assets and current liabilities of Nalco.also I will get to know the importance of working capital for a company .

3rd week: In the third week I will get the Annual Report from which I will collect the information about the current assts and current liabilities .i will find out the working capital for the year 2006-07&2007-08.also I will find out if their is any variance in working capital for the year 2006-07&2007-08.

4th and 5th week: With the help of questionnaire Ill try to find out that is there any variance in working capital .Also I will find out various ratio to

compare the performance for the year 2006-07&2007-08. Like the liquidity ratio,turnover ratio etc.

6th week: In this period I will compare the performance of Nalco for the year 2006-07. I will analyze all the ratio calculated , interpret them and found out the financial performance of Nalco.Iwill find out if Nalco is having excess working capital or is deficit in working capital. Also with the help of my project guide, I will start preparing final report.