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Name of the Study Centre Study Centre Code : : : : : : : MBA 2 .“WORKING CAPITAL MANAGEMENT OF TAJ HOTEL” Under Supervision of: Submitted By: Name Address Phone No Programme Code Enrollment No.

6. 3 . 4. Chapterisaton. Objective of the Study. Research Methodology. 2. Contribution from the study. 3.Limitations. 5. Review of Literature. . Title of the project. 7. 7.“WORKING CAPITAL MANAGEMENT OF TAJ HOTEL” 1. Introduction to topic .


furniture etc. a symbol of Indian hospitality. gracing important industrial towns and cities. historical and pilgrim centres and wildlife destinations. Sri Lanka. it is known as revolving or circulating capital or short term capital. Every business needs finance for two purposes. The Taj. invested in current assets keep revolving fast & are being constantly converted into cash & these cash flows out again in exchange for other current assets. United States of America.Spanning the length and breadth of the country. In simple words working capital refers to that part of firm’s capital which is required for financing short term or current assets such as cash. On the basis of time working capital is classified as permanent or fixed working capital & temporary or variable working capital. marketable securities. United Kingdom. thus. Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 international hotels in the Malaysia. Incorporated by the founder of the Tata Group. Bhutan. Funds. Bombay in 1903. Hence. Tata. Funds are also needed for short term purposes. hill stations. Africa.On the basis of concepts and Secondly . These funds are known as working capital. Long-term funds are required to create production facilities through purchase of fixed assets such as plant & machinery.INTRODUCTION The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel company. completed its centenary year in 2003. Jamsetji N. vantage locations.for purchase of raw materials. Working capital may be classified into two ways firstly . land & building. Mr.for its establishment & to carry day to day operations. the apogee of Indian hospitality. the company opened its first property.On the basis of time. The Taj Mahal Palace Hotel. debtors & inventories etc. beaches. each Taj hotel offers the luxury of service.On the basis of concepts working capital is classified as Gross working capital & Net working capital. modern amenities and business facilities. the Middle East and Australia. 5 . payment of wages & other day to day expenses etc.2.

b) To pay wages and salaries. the working capital is needed for the following purposes:a) For the purchase of raw materials. According to GENESTENBERG:"Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another. components and spares. 6 . thus. payment of wages. inventories to receivables into cash. it is required for production facility through purchase of fixed assets and it needs fixed capital and the funds which are needed for short term purposes for the purchase of raw materials. they are for establishment and to carry day-to-day operations. Working capital refers to that part of the firm's capital which is required for financing short term or current assets such as cash. Funds. payment of day to day expenses etc. from cash to inventories. invested in current assets keep revolving fast and are being constantly converted into cash and this cash flow out in exchange for other current assets. Long term funds are required for establishment of the organization." Need for working capital cannot be over emphasized. as for example.3. debtors and inventories. The need of working capital arises due to the time gap between production and realization of cash from sales. the funds required for these are known as WORKING CAPITAL. marketable securities. Hence it is also known as CIRCULATING CAPITAL or REVOLVING CAPITAL or SHORT TERM CAPITAL. REVIEW OF LITERATURE: Every business needs funds for two purposes basically. Thus. Every business needs some amount of working capital.

d) To met the selling costs as packing. one has to study the business under varying circumstances such as a new concern. 4.To analyze the various components of working capital of Taj Hotels. iii. advertising etc. ii. work-in-progress. For studying the need of working capital in a business.To study the financing of working capital of Taj Group of Hotels. stores and spares and finished stock. as a going concern and as one which ha attained maturity.c) To incur day-to-day expenses and overhead costs such as fuel. f) To maintain the inventories of raw material.To study and analyse the operating cycle of Taj Group of Hotels. 7 .OBJECTIVES OF THE RESEARCH Following are the objectives which are being considered in my study: i. power and office expenses etc. e) To provide credit facility to customers.

Every investor wants a quick and regular return on his investments. 8 . increases their efficiency. Adequate working capital enables a Hotel to face business crisis in emergencies such as depression because during such periods. high solvency & good credit standing can arrange loans form banks & others on easy and favorable terms. A Hotel having adequate working capital. wages & other day-to-day commitments which raises the morale of its employees. sufficient working capital ensures regular supply of raw materials & continuous production. Adequate working capital helps in maintaining solvency of business by providing uninterrupted flow of production.5. a there may not be much pressure to plough back profits. generally.Only concerns with adequate working capital can exploit favourable conditions such as purchasing its requirements in bulk when the prices are lower & by holding its inventories for higher prices. A Hotel which has ample working capital can make regular payment of salaries. Adequate working capital also enables a concern to avail cash discounts on the purchase and hence reduce costs. reduces wastage & costs and enhances production & profits. Sufficient working capital enables a Hotel concern to make prompt payments & hence helps in creating & maintaining goodwill. Sufficiency of working capital enables a concern to pay quick and regular dividends to its investors. CONTRIBUTION FROM THE STUDY No business can run successfully without an adequate amount of working capital. This gains the confidence of its investors & creates a favourable market to raise additional funds in the future. there is much pressure on working capital.

It is a statement of only essential elements of study. Analysis of Data: The information gathered are the policies & practices regarding management of the working capital. which are as follows: • The preparation and interpretation of data may not be 100% free from errors and may be affected by the Respondents biased mindset to some extent. Analysis is done in terms of theoretical concepts. • Sampling size of the targeted employees of Taj Hotels is small. but still there are some limitations. 9 . The present study is being conducted followed by Descriptive Research Design. 7. RESEARCH METHODOLOGY: The research design is a pattern or an outline of research project working.LIMITATIONS: Even though every effort will be taken to minimize the variation and present a factual picture with the help of statistical methods. The research vehicle for primary data collection is unstructured interview with the managers to get information regarding all variables for working capital management. those that provide basic guidelines for the details of the project. ratios etc.6. because non-reachable due to there busy schedule. Data Collection: Primary as well as secondary data is used for the project. relevant files & records of Taj Group of hotels. Secondary data is collected from Annual Report. Analysis of working capital performance is done with the help of percentages by showing graphs.

8. Introduction: Objective and scope of study: Methodology: (Details of methodology used in studying and collecting the data and issue will be described): Descriptive work: Descriptive work on the topic.• The study will be based on the balance sheet of the company and depends directly on balance sheet and annual reports of the company. Study report: Study report of other researcher will be observed and analyzed. this chapter will include analysis and interpretation of data tabulation and categorization. Chapter –V Chapter –IV Chapter –I Chapter –II Chapter –III Conclusion: Limitation Recommendation: Bibliography: Chapter –VI Chapter –VII Chapter –VIII Chapter –IX 10 . Chapterisation: Detailed/final project report will include the following chapters.

Appendix-1 Chapter –X (Questionnaire has been prepared for conducting study will be attached and others which has not mentioned in the above. will be included if required) 11 .

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