A Report on Comparative Analysis of Working Capital Management of Two Indian Cement Manufacturing Companies”

8290 WordsAug 19, 201234 Pages
A REPORT ON “COMPARATIVE ANALYSIS OF WORKING CAPITAL MANAGEMENT OF TWO INDIAN CEMENT MANUFACTURING COMPANIES” 1 A REPORT ON “COMPARATIVE ANALYSIS OF WORKING CAPITAL MANAGEMENT OF TWO INDIAN CEMENT MANUFACTURING COMPANIES” BY SWETA SINGH DATE OF SUBMISSION: 11.02.10 2 . The report on “COMPARATIVE ANALYSIS OF WORKING CAPITAL MANAGEMENT OF TWO INDIAN CEMENT MANUFACTURING COMPANIES” is her original work and the same has not been submitted prior to this in any form. 3 ACKNOWLEDGEMENT As I sum up this final report, I appreciatively reminisce the contribution of all those individuals who have been instrumental in the successful completion of this project. I am deeply indebted to my faculty guide Dr. P.R.Kulkarni whose constant…show more content…
This makes it an important sector & hence my chosen sector for the project. Working capital management is a very important component of corporate finance because it directly affects the liquidity and profitability of the company. It deals with current assets and current liabilities. It involves the decision of the amount and composition of current assets and the financing of these assets. Efficient working capital management involves planning and controlling current assets and current liabilities in a manner that eliminates the risk of inability to meet due short term obligations on the one hand and avoid excessive investment in these assets on the other hand. Many surveys have indicated that managers spend considerable time on dayto-day problems that involve working capital decisions. One reason for this is that current assets are short-lived investments that are continually being converted into other asset types. With 7 regard to current liabilities, the firm is responsible for paying these obligations on a timely basis. Liquidity for the ongoing firm is not reliant on the liquidation value of its assets, but rather on the operating cash flows generated by those assets. Taken together, decisions on the level of different working capital components become frequent, repetitive, and time consuming. The ultimate objective of any firm is to maximize the profit. But, preserving liquidity of the firm is an important objective too.

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