SUBMITTED TO

:
Dr. A.K. SINHA Professor Finance & Dean

SUBMITTED BY:
GROUP-3 ANKITA GOYAL HITESH NANDWANA SUNIK K GUPTA PIYUSH SINGH MONIKA PATHAK SAURABH SHRIVASTAVA

2. Particulars Executive Summary Project Methodology Findings Conclusion Bibliography Appendix Questionnaire . 7. 3. 6. 4.INDEX S.No. 1. 5.

3. In this project we have collected the data by QUESTIONNAIRE. 2. 5. To make contact with the corporate people. To know how the working is done in the real world. interpretation. Confidential information they do not want to share. 4. To get the practical exposure. . What are the sources of working capital finance in the company? To know whether there is any difference between company working and book standards LIMITATION OF THE STUDY 1. findings. It was very difficult to get the appointment from the company. 2.Executive summary OBJECTIVE OF STUDY We have been given this topic because of following reason: 1. RESEARCH METHODOLOGY Data is the information that forms the basis of analysis.

They finance their working capital through banks.FINDINGS 1. They have a stock cycle of 60 days. We gained such a vast practical knowledge in this project work. We are able to make contact with the corporate people and this was a great opportunity for us. . CONCLUSION We conclude that it was good experience for us. 2. how the work is being done in the companies. This project helps us to gain knowledge about the practical scenario.

3. OBJECTIVE OF STUDY 1. In this project we have collected the data by- QUESTIONNAIRE (PRIMARY DATA) A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. do not require as much effort from the questioner as verbal or telephone surveys. interpretation. How do they finance their organizational activities ? . To know the real scenario of the industry. To get the industrial exposure. for some demographic groups conducting a survey by questionnaire may not be practical. 4.PROJECT METHODOLOGY METHOD OF DATA COLLECTION Data is the information that forms the basis of analysis. To know whether the financing policy are effective or not. They are cheap. and often have standardized answers that make it simple to compile data. However. Thus. findings. 2. such standardized answers may frustrate users. Questionnaires are also sharply limited by the fact that respondents must be able to read the questions and respond to them.

Time is the biggest constraint here because managers were not having the time to fill the questionnaire. We visited to the company in gurgaon. GEOGRAPHICAL SCOPE This project is having wide geographical scope. 5. 4. 2. We cover the company to collect the data for the project report ( gurgaon) CONCLUSION We conclude that it was good experience for us.SCOPE OF STUDY Finance is the key for success of any business as it helps in capital formation etc. 3. This project helps us to gain knowledge about the practical scenario. To find out the network in a company in order to get information. 1. . Many respondents gave false information. We gained such a vast practical knowledge in this project work.. So we have taken the data from the KEC LTD (RPG GROUP) regarding their working capital financing. The title to this project “WORKING CAPITAL FINANCING” LIMITATION OF THE STUDY It’s a challenge to enter into the company premises (appointment). They hesitate to disclose their internal information.

Q. By way of optimization of working capital cycle and maximizing credit to creditors and minimizing credit of customers by best utilization of resources and minimizing stock level. How do you control your working capital/ processing time? A. Does your demand vary as per season? If yes how you arrange for the additional demand? . customer credit of 45 days. branch manager of a bank has a sanction power up to 5 crores only. By means of capital deployment by management credit facility from banks/financial institutions. adhoc facility. Q. How you finance your working capital requirement? A. Yes. By taking credit facility for a temporary period i. dispatch cycle of 30 days. Q. How do you arrange for additional working capital? A. seasonal facility etc.e. if yes what is the duration of operating cycle? A. Q.FINDINGS Q. Q. Do you get the higher level sanction? A. beyond that higher level sanctions are required. How do estimate your working capital? Is it based on your operating cycle. If require we get it but depend on authority and powers for example. we have a stock cycle of 60 days.

we give credit of 30 days normally. adhoc facility. Very convenient. Yes.e. . If there is low utilization means low interest. Yes. 45 days but depend on customer. Q. It is a fundamental need of business and successful business should have efficiency to operate the working capital limits keeping in view of better resources availability. Do you get credit facility from your supplier? A. maximizing production with optimum level of stock. price and product.A. Do you use banking source to finance your working capital? How convenient it is? What is the problem in it? And what are the other sources of finance? A. Do you give credit facility to your customer? A. minimizing cost. Q. What is your overall opinion? A. Other sources of finance other than banks are financial institutions of the central and state government. Yes. Q. Also good availability of creditability among customers and suppliers. Yes. By taking credit facility for a temporary period i. Q. by more realization of funds and better negotiations with customers and suppliers and also maintaining optimum level of stock. seasonal facility etc. Q. How you control your working capital requirement? A.

. Company point of view (credit facility given to customers): they provide credit of 30 days to their customer. if require we get it but depend on authority.e.CONCLUSION This report comes out with some conclusion. Companies get higher level sanction. Operating cycle time normally differ from company to company it depends on nature of company as rightly mentioned in theory. Companies arrange for their additional working capital through by taking credit facility for a temporary period i. Normally. adhoc facility. seasonal facility etc as rightly explained through theory. These are: Controlling working capital requirement is done by the company by way of optimization of working capital cycle and maximizing credit to creditors and minimizing credit of customers by best utilization of resources and minimizing stock level as explained by theory. company get its working capital finance through banks as mentioned in theory. power and credit worthiness of the company while in theory only the credit worthiness aspect is mentioned.

spare capital is tied up in work in progress.some times discount is induced to get early payments. Their are cost associated with trade credit which depend on the terms of credit offered by the supplier. Company point of view (how do they control their working capital requirement): by more realization of funds and better negotiations with customers and suppliers and also maintaining optimum level of stock.supplier inducing discount to get payment early. Companies’ point of view (credit facility given by supplier): supplier provides credit of 45 days but depend on price. It's a situation that can bring a business to its knee. . After analyzing we can notice that company is receiving cash within days and making payments within 45 days so it looks to be balanced. It generally varies from 15 days to 60 days . Books point of view: customers won't pay on time. liquidity position of the firm.Book point of view: credit period refers to the length of time customers are allowed to pay for their purchase. how sales forecasts and regular meetings can help control working capital. Book point of view: confidence of the supplier is the key to get trade credit. In India very few companies have attempted a systematic articulation and formalization of their credit policy generally credit policy emerged as unstated conventions. product. and customer. More the lengthening of the credit will push up the sales. suppliers won't deliver until bills are paid. Things which supplier considers are earning record over the period of time. and record of payment .

Book point of view: most of the firms go for the banking sources to finance their working capital. Also good availability of creditability among customers and suppliers.Key points to control the working capital: -Understanding the importance -How to release capital within a business. If there is low utilization means low interest. of cash flow. maximizing production with optimum level of stock. -sales forecasting (it helps in determining the level of stock and it also determines the demand) and regular meetings of all people responsible for keeping down the level of working capital. investors. . Other sources of finance other than banks are financial institutions of the central and state government. lenders etc Overall opinion It is a fundamental need of business and successful business should have efficiency to operate the working capital limits keeping in view of better resources availability. other sources are financial institution. minimizing cost. Company point of view (use of banking source of finance and other sources): Yes Very conveniently they use the banking source to finance working capital.

2. 3. 4. Y.M. 5.kecrpg. www.google.com www.com RPG Boucher Financial Management.BIBLIOGAPHY 1. Khan & P.Prasanna Chandra Financial Management.K. Jain .

KEC has helped transmit power to various countries that include Argentina. Every employee is instilled with a sense of pride of his work and workplace & strives to make KEC the International market leader in the power transmission sector. supply and Construction of Turnkey Projects of Power Transmission lines of voltages up to 800 KV and in the execution of Railway Electrification projects. . KEC has gone from strength to strength successfully exporting towers to over 20 countries and widening its client base across the world. Philippines. KEC has made an indelible mark on the world map by constantly and consistently re-engineering itself to retain its position of leadership in the areas of quality. Syria. Lebanon. Saudi Arabia. the Pacific Rim countries and Africa. Brazil. USA. Nigeria. Sri Lanka. Tunisia. Ghana. South Africa. Malaysia. Turnkey Telecom Infrastructure Services and maintenance of Power Transmission Lines. Iraq. Egypt. capacity and capability. The company has an increasingly strong presence in the Middle East. Ethiopia. Canada. Nepal. UAE and Vietnam. Kenya. To ensure reliable service KEC is supported by multi-location manufacturing facilities and a workforce spread out over 20 countries. Kuwait. Thailand. KEC employees participate in regular training programmes and seminars in various areas of self development. The KEC credo is that no project is complete till the customer is totally satisfied. Indonesia. Iran. Manufacture. India. At KEC manpower is one of the most important resources.APPENDIX About the company KEC International is One of the largest Power Transmission EPC companies in the world. Sudan. KEC's strengths lie in the areas of Design. New Zealand. Optical Fiber Cable (OPGW) installations. setting up Sub-stations and power Distribution Networks. technology. KEC has successfully executed contracts from 33 KV to 800 KV in India and abroad.

Grow. RPG Enterprises spans a spectrum of business across industries. CESC Ltd. BUSINESS SEGMENT BUSINESS SEGMENT COMPANIES Transmission KEC International Ltd.5 billion.KEC Power India Pvt. A truly global organization. Today the Group companies have worldwide presence and partnerships with many of the transnational corporate.(KPIL)New! RPG Cables. Ltd.RPG GROUP Respond.1 billion and assets of over US $2. These are the pillars on which RPG has built its foundations to become one of the largest business houses of India with a turnover of over US $2. Noida Power Company CEAT CEAT Kelani Philips Carbon Black Harrison Malayalam Spencer's Hypermarket Music World Spencers Saregama HamaraCD Zensar RPG Life Sciences Raychem RPG Power Tyres Retail Entertainment Technology . Substations . Perform.

Transmission. KEC’s intellectual pool delivers value to its clients. Technology. the name KEC International is acknowledged to be synonymous with excellence.Genesis RPG Enterprises is one of India’s largest business conglomerates with a turnover close to US$ 3 billion. Retail and Entertainment. CULTURE They have a strong corporate culture that has chiseled RPG Enterprises to emerge as one of the most respected groups in the industry. providing superior value to all stakeholders. Tyres. Today. RPG Enterprises has been one of the fastest growing groups in India with more than 15 companies operating successfully in 6 business sectors: Power. . VISION To be a global leader in the Power Transmission EPC business and a significant player in other related businesses. Since its inspection in 1979. KEC advantage Commencing operations in 1945 as kamani Engineering Corporation. KEC International is a world leader in the T&D EPC space.

T/L Ghana Iraq ( Kurdistan ) Kazakhstan Kenya Kenya Lebanon Libya Namibia Nigeria Oman Saudi Arabia Saudi Arabia Saudi Arabia South Africa South Africa Tajikistan Tunisia UAE ( Abu Dhabi ) UAE ( Sharjah ) Length (Kms.) 753 611 3000 337 Tower Supply 196 50 5941 477 215 4628 725 744 25 187 733 306 401 65 123 55 268 114(Supply) Supply 118 558 135 76 .Hot Line Stringing Algeria .Current projects *International Capacity (KV) 110/220 22 400 400 275 500 132 15/33 230/400 330 33/132 500 11/33 132 220 400 350 132/330 132/220 380 380 380 765 400 220 90/150/220 200/220/400 132 DC SC/DC HVDC SC/DC DC D/C OHL D/C OHL DC SC S/C DC SC/DC DC DC Type DC RE SC SC DC DC SC RE SC SC SC/DC SC SC Country Afghanistan Afghanistan .Distribution Ethiopia .Distribution Algeria .T/L Australia Egypt Ethiopia Ethiopia .

Khandwa Jhalod .) 112 110 167 117 167 58 149 124 51 62 165 .Lakhisarai Teesta .5 & 6 .*Domestic Capacity (KV) 765 400 400 400 400 400 400 400 400 400 165 Type SC DC DC DC DC DC SC DC DC SC SC & DC Location/ Line Pichor .Dehgam Biharsharif .Darjeeling RAPP .V .Kota Bareilly .Moradabad T/L and 4 Nos of LILO Lines Length (Kms.Bina and LILO lines at Bina & Rajgarh Seoni .Hasanpur Partabpur .Malanpur Agra-Jaipur Hatta .Korba Kahalgaon .

Do you get the higher level sanction? Q. if yes what is the duration of operating cycle? Q. How do estimate your working capital? Is it based on your operating cycle. How do you control your working capital/ processing time? Q. Do you give credit facility to your customer? Q. Do you use banking source to finance your working capital? How convenient it is? What is the problem in it? And what are the other sources of finance? Q. How you control your working capital requirement? Q. How you finance your working capital requirement? Q. How do you arrange for additional working capital? Q. Does your demand vary as per season? If yes how you arrange for the additional demand? Q. What is your overall opinion? .Questionnaire Q. Do you get credit facility from your supplier? Q.

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