PROJECT

WORKING CAPITAL MANAGEMENT

DEFINITION:
Working capital is defined as the amount of funds necessary to cover the cost of operating the enterprise.

OBJECTIVES OF THE STUDY:

 To study in general the working capital management procedure in RINL.  To analyze and apply operating cycle concept of working capital management in RINL.  To know how working capital is being financed.  To study the liquidity & capacity position of RINL.  To give suggestions, if any, for better working capital management in RINL.  To analyze the financial performance of the company with reference to its working capital components.

COMPONENTS OF WORKING CAPITAL:

Gross working capital Net working capital

KINDS OF WORKING CAPITAL:

Permanent or Regular working capital. Temporary or Variable working capital.

APPROACHES FOR FINANCING WORKING CAPITAL:

Hedging or Matching Approach. Conservative Approach. Aggressive Approach.

OPERATING CYCLE:

Debtor Cash Sales

Raw Materials Work-inProcess

Finished goods

THANK YOU .