Project proposal On

IN

(BEAWER)

Submitted to

ANNAMALAI UNIVERSITY
In partial fulfillment for the degree of MASTER IN BUSINESS ADMINISTRATION
(2010-2012)

UNDER GUIDANCE OF: KAPIL HINGORANI

SUBMITTED BY:JAYA ROCHANI MBA FINAL YEAR (FINANCIAL MANAGEMENT) Enrolment No.:- 4741000106
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PROJECT SYNOPSIS

INDEX

Title of the project. Statement of the Problem. Objectives of the study. Research Methodology.

TITLE OF THE PROJECT

WORKING WORKING CAPITAL MANAGEMENT IN SHREE CEMENT CAPITAL MANAGEMENT IN SHREE CEMENT

STATEMENT OF THE PROBLEM

There is recession time running in the market from last few months to world economy that has also affected Indian economy.

In all these circumstances real estate market has seen worst situation in last 70 years or we can say never before.

As far as cement industry is concerned it has also been a thing to look at end for that every company look at their (working capital) liquidity or current assets and current liabilities.

In the management of working capital, the firm is faced with two key problems:1.

First, given the level of sales and the relevant cost

considerations, what are the optimal amounts of cash, accounts receivable and inventories that a firm should choose to maintain?

2.

Second, given these optimal amounts, what is the most

economical way to financial these working capital investments? To produce the best possible results, firms should keep no unproductive assets and should finance with the cheapest available sources of funds. Why? In general, it is quite advantageous for the firm to invest in short term assets and to fianc short-term liabilities.

OBJECTIVES OF THE STUDY

To get the practical knowledge of working capital

management in the organisation.

To identify the working capital needs of the company and

various ways to finance it.

To get the good insight of cement industry.

To know the significance of proper working capital

management.

To get the practical experience of industrial environment.

Here are two-fold objectives of the management of working capital:1.

Maintenance of working capital at appropriate level.

2.

Availability of ample funds as and when they are needed.

In the accomplishment of these two objectives, the management has to consider the composition of current assets pool.

The working capital position sets the various policies in the business with respect to general operations like purchasing, financing, expansion and dividend etc.

RESEARCH METHODOLOGY
DEFINITION
Management should explain in this section how marketing research will be used to support development, implementation and evaluation of strategies and action programs. Research is a process by which we find the answer of the queries. It is a systematic inquiry to provide information to solve managerial problem. It is systematic efforts to gain knowledge movement from known to unknown. Research is an organized and systematic way o finding answers to questions. It is a method of discovering facts, developing facts and verification of facts. There are different research approaches and research instruments: Primary Research Secondary Research

Primary research: - It includes the collecting of data that doesnt

exist and that can be collected by questionnaire, interviews, case study, and focus group.

Secondary Research: - It can be collected from various publications

on related subject, news papers, journals, magazines, and various internet sites.

RESEARCH PROCESS
TURN YOUR IDEAS INTO RESEARCH QUESTION First stages Discuss your ideas with others
Data analysis

REVIEW THE LITERATURE

Where do I start? Link to useful

DESIGN YOUR STUDY AND DEVELOP YOUR METHOD

Survey design Sampling Statistical issue

WRITING YOUR RESEARCH PROPOSAL AND FINDING

Starting your research proposal Sponsor issue Advice about finding

COLLECTION AND COLLATE OF DATA

Issue to consider Conduct issue

ANALYSIS AND INTERPRETATION OF DATA

Data analysis Interpreting data

PREPARING THE RESEARCH REPORT

Writing up research Research report

DATA COLLECTION
Data collection is a term used to describe a process of preparing and collecting data, for example, as part of process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, to pass information on to others. Primarily, data are collected to provide information regarding a specific topic.

Data collection usually takes place early on in an improvement project, and is often formalised through a data collection planning which often contains the following activity:-

1.

Pre collection activity agree on goals, target data, definitions, Collection data collection Present Findings usually involves some form of sorting

methods
2. 3.

analysis and/or presentation.

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Prior to any data collection, pre-collection activity is one of the most crucial steps in the process.

PROJECT OBJECTIVE
The project is aimed at evaluating the financial status of shree cement ltd and then doing the comparative analysis with its competitors.

To study the working capital management at shree cement Ltd and estimating the working capital requirement for 2010-2011 and then forecasting for 2011-2012.

To find out if there is any relationship between the working capital, sales and current assets of Shree cement Ltd.

METHODOLOGY:The methodology to be adopted for the project is explained as under:1. The initial step of the project was studying about the company and then evaluating the financial position of the company on the basis of ratio analysis.

2. Comparing the firms financial position with respect to is its competitors i.e. Hindustan Unilever Ltd., ITC and Kothari Products with the help of following ratios-

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Liquidity ratios

Solvency/leveraging ratios

Coverage ratios

Activity/turnover ratios

Profitability ratios

Investors ratios

3. The project will focus on the study of overall working capital management at the organizations, for which the following study and analysis will be undertaken:

I.

This project is aimed to estimate the operating plan for the year 2011-2012.

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II. This will also include the calculations and analysis of the operating cycle for the company.

III. It will also include the ratio analysis of the financial statement so that the profitability ad liquidity trade off can be analyzed.

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