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INTERNSHIP PROJECT REPORT

ON
WORKING CAPITAL MANAGEMENT
AT

Mysore
Submitted in Partial fulfillment of the requirement for the
Award of the Degree of Master of Business Administration
BY
SANTHOSH KUMARA S
REGN NO:10P35H0081
FINANCIAL MANAGEMENT
UNDER THE GUIDANCE OF
Mr. Venkatesh Arakeri
Director of NSB

J.P.NAGAR, BANGALORE
Centre for Participatory and Online Programmes
Bharathiar University
Coimbatore
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DECLARATION

I hereby declare that this project work titled Working Capital Management, is a record
of Original work done by me under the guidance of Mr. Venkatesh Arakeri, Director National
School Of Business Bangalore that this project work has not formed the basis for the award of
any Degree/Diploma/Associate ship/Fellowship or similar title to any candidate of any
University.

Signature of the candidate:

Name: SANTHOSH KUMARA.S


Result:
Specialization: MBA-FINANCE
Date:
Countersigned by:
Signature of the Guide:

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CERTIFICATE

This is to certify that the project work entitled WORKING CAPITAL


MANAGEMENT submitted to Bharathiar University in partial
requirements for

the award of the Degree of

fulfillment

of

Master of Business Administration

the
in

FINANCIAL MANAGEMENT is a record of the original work done by SANTHOSH


KUMARA.S Under my Supervision and guidance and that this project work has not
formed the basis

for the award of any Degree/Diploma/Associate ship/Fellowship or

Similar title to any candidate of any University.

(Seal)

Signature of the Guide


Name and Designation

Director/Principal
Partner Institution
Centre for Participatory and Online Programmes Bharathiar University
Coimbatore
Submitted for University Examination held on______________________________
Internal Examiner

External Examiner

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ACKNOWLEDGEMENT

The successful completion of a study on Working Capital Management at AAL, is


dedicated to few people, as their help, guidance, suggestions and co-ordination of them has
helped me to complete the work with honesty.
I express my sincere gratitude to Mr.Natesh,Assistant Finance Manager,AAL
Mysore, for guiding me as external project guide in my Endeavour for successfully completing
my project.
I would like to extend my sincere gratitude to Mr.Venkatesh Arakeri Director,
National School Of Business Bangalore, as the project guide for their guidance during the
course of project undertaken.
Finally I would also like to thank my parents, family members, friends and all the
respondents for helping me in their own way, in this endeavour for successfully completing my
project.

SANTHOSH KUMARA.S
Reg.No.10P35H0081
National School of Business

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TABLE OF CONTENTS

CHAPTERS

CHAPTERS DESCRIPTION

PAGE
NO.

Executive Summary

Introduction

1-45

a) Meaning of Working capital

1-14

b) Industry Profile

15-18

c) Company Profile

19-23

d) Product Profile

24-29

e) Work Flow Model

30-32

f) McKenzies 7 Frame work

33-42

g) SWOT analysis

43-45

Review of Literature

46-48

Data analysis and interpretation

49-70

Findings ,Suggestion and Conclusion

71-73

Annexure

74-77

Bibliography

78

LIST OF TABLES

CHAPTER TABLE
NO.
NO

NAME OF THE TABLE

PAGE
NUMBER

1.1

Ownership Pattern

26

1.2

General Share holder information

27

3.1

Analysis of Financial Statement

49

3.2

Total size of the inventory

55

3.3

Inventory to WC

56

3.4

Inventory turn over ratio

58

3.5

Raw material turnover ratio

59

3.6

Work in progress turnover ratio

61

3.7

Current assets turnover ratio

62

3.8

Total assets turnover ratio

63

3.9

Fixed assets turnover ratio

64

4.0

Inventory to total assets

68

4.1

Inventory to current assets

69

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LIST OF CHARTS

CHAPTER
NO.

CHART
NO.

NAME OF THE TABLE

1.1

Work Flow Model

31

1.2

Organization Structure

36

3.1

Total size of the inventory

55

3.2

Inventory to working capital

57

3.4

Inventory turnover ratio

58

3.5

Raw material turnover ratio

60

3.6

Work in progress turnover ratio

63

3.7

Current assets turnover ratio

64

3.8

Total assets turnover ratio

65

3.9

Fixed assets turnover ratio

66

4.0

Inventory to total assets

67

4.1

Inventory to current assets

70

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PAGE NO

EXECUTIVE SUMMARY

The report A study on Working Capital Management at Automotive Axles Ltd, Mysore
is aimed at ascertaining the efficiency and effectiveness of working capital requirement in the
company, which is an important aspect of financial management.
This study mainly reveals how the stocks are regulated within predetermined limits set in
accordance with inventory policy established by the management.
The objective of the study is to highlight the practice of Working capital management,
factors influencing the Working Capital Management, to measure the efficiency of working
capital requirement and technique followed by the company to increase the working capital.
The scope of the study is limited to the study of working capital management and general
financial performance of the company. The project report is prepared by comparing the
performance from the year 2007-08 to 2009-10.
The limitations of the study are that it is conducted purely upon the data available as per
the financial statement of the company. It considers only for three year data for analysis and
interpretation. This cannot explain the overall performance of the company. It partially know
about the current performance of the company

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