Scope of the Study

Both primary and Secondary data has been be used for the study. Primary data was collected
through direct interaction with the company’s finance and accounts department. If needed
schedule/questionnaires would be devised to get the information on all the relevant areas of the
study such as receivable management, inventory management, management of cash etc.
And I collected the data from the secondary sources comprising Annual Reports of the firm,
other journals and periodicals.
Apart from the conducting this research work on the basis of these information’s, various
techniques of financial management e.g., comparative statement, trend analysis and ratio analysis
etc. were used in the present study. To present a broad view so far the purpose of the analysis
and to make it easy to understand the problem/concept of a few graphs and tables shall also be
presented. In each chapter, the analysis has been compared with actual management practices of
the company under study.

Objective of the study:-

The following are the main objective which has been undertaken in the present
study:

1. To determine the amount of working capital requirement and to calculate

various ratios relating to working capital.

2. To make an item wise study of the components of the working capital.

To suggest the steps to be taken to increase the efficiency in management of

working capital

OBJECTIVES OF THE STUDY

Study of the working capital management is important because unless the
working capital is managed effectively, monitored efficiently planed properly
and reviewed periodically at regular intervals to remove bottlenecks if any the
company can not earn profits and increase its turnover. With this primary
objective of the study, the following further objectives are framed for a depth
analysis.
1. To study the working capital management of Jain Irrigation Systems Ltd.
2. To study the optimum level of current assets and current liabilities of the
company.
3. To study the liquidity position through various working capital related
ratios.
4. To study the working capital components such as receivables accounts,
cash management, Inventory position
5. To study the way and means of working capital finance of the Jain
Irrigation System Ltd.
6. To estimate the working capital requirement of Jain Irrigation System
Ltd
7. To study the operating and cash cycle of the company.
2.4) SCOPE & LIMITATIONS OF THE STUDY
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Scope of the study
The scope of the study is identified after and during the study is conducted. The
study of working capital is based on tools like trend Analysis, Ratio Analysis,
working capital leverage, operating cycle etc. Further the study is based on last
5 years Annual Reports of Jain Irrigation Systems Ltd. And even factors like
competitor’s analysis, industry analysis were not considered while preparing
this project.