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STATEMENT OF THE PROBLEM

This project deals with the study about Working Capital Management in
THE CHITTOOR DISTRICT CO-OPERATIVE CENTRAL BANK LTD.,
IMPORTANCE OF THE STUDY
There are numerous aspects of working capital management that makes it an
important topic for the study.
The management of assets in any organization is an essential part of overall
management. The enterprise, at the time of formation attaches great importance to
fixed assets management, as a part of investment decision-making. However, in the
overall day-to-day financial management, after the initial investment, the management
gives more importance to managing working capital. If we look at any financial
statement it will be evident that the investment in fixed assets remains more or less
static but the working capital is constantly changing. A healthy working capital
position is the sine-qua-non of a successful business. This is reflected in adequate
inventories, lowest level of debtors, minimum utilization of bank facilities for
working capital, etc. thus the study of working capital management occupies an
important place in financial management.
NEED FOR THE STUDY

The study has been conducted for gaining practical knowledge about Working
Capital

Management & activities of

The Chittoor District Co-Operative

Central Bank Ltd.,

The study is undertaken as a part of the MBA curriculum from 01 June 2015
to 31st July 2016 in the form of Academic Project for the fulfillment of the
requirement of MBA degree.

SCOPE OF THE STUDY


The scope of the study is identified after and during the study is conducted. The
main scope of the study was to put into practical the theoretical aspect of the study

into real life work experience. The study of working capital is based on tools like
Ratio Analysis, Statement of changes in working capital. Further the study is based on
last 5 years Annual Reports of The Chittoor District Co-Operative Central Bank
Ltd.,

OBJECTIVES OF THE STUDY


To study the sources and uses of the working capital.
To study the liquidity position through various working capital related ratios.
To study the working capital components such as receivables accounts, Cash
management, Inventory management.
To make suggestions based on the finding of the study.

RESEARCH METHDOLOGY
Introduction
Research methodology is a way to systematically solve the research problem.
It May be understood as a science of studying now research is done systematically. In
that various steps, those are generally adopted by a researcher in studying his problem
along with the logic behind them.
The procedures by which researcher go about their work of describing,
explaining and predicting phenomenon are called methodology.
Type of Research
This project A Study on Working Capital Management of The Chittoor
District Co-Operative Central Bank Ltd., is considered as an analytical research.
Analytical Research is defined as the research in which, researcher has to use
facts or information already available, and analyze these to make a critical evaluation
of the facts, figures, data or material.

Source of Research Data


There are mainly two through which the data required for the research is
collected.
Primary Data
The primary data is that data which is collected fresh or first hand, and for first
time which is original in nature.
In this study the Primary data has been collected from Personal Interaction
with Finance manager and other staff members.
Secondary Data
The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, annual reports of the
company etc. It will save the time, money and efforts to collect the data.
The major source of data for this project was collected through annual reports,
profit and loss account of 5 year period from 2010-2015 & some more information
collected from internet and text sources.
Sampling Design
Sampling unit

Financial Statements.

Sampling Size

Last five years financial statements.

Tool Used for calculations: - MS-Excel.


Tools Used For Analysis of Data
The data were analyzed using the following financial tools. They are
Ratio analysis.
Statement of changes in working capital.

LIMITATIONS OF THE STUDY


The study duration (summer in plant) is short.

The analysis is limited to just five years of data study (from year 2010 to year
2015) for financial analysis.
Limited interaction with the concerned heads due to their busy schedule.
The findings of the study are based on the information retrieved by the selected
unit.