Overview – Finance Project on Working Capital Management
Download free BBA, PGDM and MBA summer training finance project on working capital management in Birla Corporation Limited.
Title: Project Report on Working Capital Management & Its Appraisal in Birla Corporation Limited.
Type: Summer Training Project Report
Subject: Finance project report
Useful for: BBA, MBA and PGDM students
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Abstract: This finance project entitled “Working Capital Management and its Appraisal in BCL” deals in cement segment. The term of study was kept limited to make the title true. The purpose of the project is to get the in depth understanding of the process of working capital management. With the growing Indian economy and the government policies for infrastructure the demand for cement is increasing and seeing this as an opportunity is under taking many new projects for expansion of the production which are under implementation for increasing the capacity of the plants. In this summer training project, working capital has been analyzed in two ways – overall study of the working capital of Birla Corporation Ltd and secondly, plant-wise working capital of Birla Corporation, since the company has seven plants in different region and each plant has its own working capital.
Borrowings are an important ingredient of funding a business entity. The lenders must feel comfortable with their clients and Birla Corporation enjoys this position among their lenders. Borrowing is done for working capital requirement i.e., to meet the day to day requirement for smooth functioning of the production, and term loans for projects of capacity expansion. Major portion of the borrowing is done from banks at better rate of interest.
The Company has posted yet another impressive for the 2007-08 results, which has surpassed all respective previous levels. It has shown substantial growth in turnover, cash profit, profit before tax and profit after tax.
- The total turnover of company has registered a growth of 11.27% whereas operating profits for the year where higher by 18.03%.
- The profit before tax was up by 19.37% at Rs.551.18 crores as against Rs.461.74 crores in the previous year. The profit after tax is 393.58 crores as against Rs. 326.23 crores in the previous year. EPS was 51.11 as against 47.51 in the previous year.
- The cash earnings of the company improved substantially to Rs.501.39 crores as against Rs.178.25 crores in the last financial year.
The objective of this summer training project work is to focus on the working capital of the Birla Corporation and exploring its potential in the company. The project contain the basic postulates of working capital, procedure of analysis of working capital, ratio being used to define the working capital and the impact of working capital in the company in case of excess or inadequacy. Also, the project contains analysis of estimation of working capital requirement and the procedure to estimate working capital requirement in manufacturing and trading concern. and from the data available it can be concluded that it holds a very strong position in the market.