Businesses face ever increasing pressure on costs and growing Financingrequirements as a result of intensive competition in globalize markets. Many of them are therefore considering ways of making themselves more efficient. Inidentifying possible options it is important not to focus exclusively on incomeand expense items, but also to take the balance sheet into account.Improvements to the existing capital structure can free up valuable resourcesand bring increased efficiency. Active working capital management is anextremely effective way to increase enterprise value. Optimizing workingcapital results in a rapid release of liquid resources and contributes to animprovement in free cash flow and to a permanent reduction in inventory andcapital costs.My project on
“Analysis of Working Capital Management in RanbaxyLaboratories Ltd
.”The attempt is aimed to analyze the various aspects of working capitalmanagement of Ranbaxy and compare it with that of Dr Reddy’s and withindustry standards.By adopting various calculation and analysis and then making interpretationwith the solution of specific problem, best efforts on giving appropriatesuggestion to the company have been made.To this context various methods and techniques like ratio analysis DuPontanalysis, statistical tool, Correlation analysis, and working towards the optimallevel of working capital, estimation of working capital and various ratios have been used to draw an exact picture of company.