working capital management of

Submitted To: Presented By:

Dr. girish goyal manish Gandhi
Deptt. of Management Studies, Student id 2016pbm5240
MNIT
 Outline

Part I Introduction to Working Capital

Part II Working Capital Management of

Part I

Introduction to Working Capital

 MEANING OF WORKING CAPITAL

Working Capital is a financial metric which represents operating

liquidity available to a business.

Working Capital is that capital which is involved in the current

assets of the business.

Basically it is the capital which is required to meet the day to day

expenses of the business
 Components of Working Capital
The working capital cycle is made up of four core components:
Cash & Cash equivalent.
Creditors/accounts payable.
Inventory/stock in hand.
Debtors/accounts receivables.
 TYPES OF WORKING CAPITAL
On the basis of Concept

Gross Working Capital

Net Working Capital

On the basis of need

Permanent Working Capital

Temporary Working Capital
 WORKING CAPITAL MANAGEMENT
Working capital management refers to a company's managerial
accounting strategy designed to monitor and utilize the two
components of working capital, current assets and current
liabilities, to ensure the most financially efficient operation of the
company.

The primary purpose of working capital management is to make

sure the company always maintains sufficient cash flow to meet its
short-term operating costs and short-term debt obligations.
 Importance of WCM
Proper management of working capital is essential to a companys fundamental
financial health and operational success as a business.

Working capital serves as a metric for how efficiently a company is operating

and how financially stable it is in the short-term.

Working capital is a prevalent metric for the efficiency, liquidity and overall
health of a company.

When a company does not have enough working capital to cover its
obligations, financial insolvency can result and lead to legal troubles,
liquidation of assets and potential bankruptcy.
Thus, it is vital to all businesses to have adequate management of working capital.
Part II

Working Capital Management of

DELPHI CONNECTIONS SYSTEMS INDIA LTD.
 COMPANY PROFILE
GLOBAL SCENARIO
Headquartered in Gill Ingham, U.K
Manufacturing sites and customer support services in 44 countries
Turnover of 15.16 Billion USD.
1, 73,000 Employees Globally
19,000 Scientists and Engineers
STATE SCENARIO
Operation started in 2012 (Kerala ,cochin)
Production and sale of Connectors and safety restrains(connection system,
Driver
Interface, Electricals, fuel cells )
7(SEVEN) Departments
Total no of employees 468 (including non executive employee 333)