A study of working

capital management in
GV Film ltd., Chennai
By
Babu. D.
Under the esteemed Guidance of
Mr. G. HaranathM.Com., M.B.A., PhD
 Introduction
“The workingCapital management involves
the administration of current assets and current
liabilities of a firm. working capital is a continuing
function which involves controlling of every day
transaction and flow of financial resources
circulating in the business

Working capital is the excess of current assets

over current liabilities . __ J. S. Mill.

Types of working capital

1.Regular working capital
2. Variable working capital
 Industry Profile
Film Industry
The film industry consists of the technological and
commercial film making i.e. “film production
companies, film studios, Cinematography, film
production, screen writing, preproduction , film
festivals, distributions and actors.
 The birth of Film
 Sound Era
 Block buster and video tape.
 2000’s.
 Company Profile
GV Film limited burst into the Indian film market in the year
1989.the main objective of the company was production
and distribution for future films in various languages. This
is the first company in the movie business and having
shareholders through the length and breadth of India.

Promoted By
Mr. G. Venkateswaran.
 The company mission to produce films and TV
Serials in various languages.
 The company vision is to produce the films and
TV Serials in various languages and also to send
a good messages to people.
 Research Methodology
The data were collected from secondary
source.
The secondary were obtained from the published
annual reports of GV Films 2004-2007.

The collecting the data were analyzed by changes in

working capital, cash, inventory, liquidity ratio.
 Objectives

 To Study the various changes in working capital

of GV Film ltd.,

 To study the working capital management with

regards to cash management.

 To study the working capital management with

regards to inventory management
 To study the liquidity position of GV Films.
Limitations

 The study will be only provision are based

on the data collected from the published
annual reports during the year2004-2007.
 Findings
The net increase in working capital during the
year2004-2005 is 3043262
The net decrease in working capital during the
year 2005-2006 Rs. 688498223
The net increase in working capital during the
year2006-2007is Rs. 1228541849.
Cash and bank balance variation between 0.6
times in 2004-05,8.9times in 2005-2006and
39.98times in 2006-2007 .the company yearly
increasing in the bank balance.
The total investment in inventory has been
decreased in 2004-2007,itindicates poor
performance in inventory management.
 Suggestions
The cash ratio is of the company is satisfactory
through the period of under the study, because
in all the year cash ratio is the standard. Hence
it is suggested that to maintain the same level
cash management.
the net increase in working capital during the
year2004-2005, the net decrease in working
capital2005-06 and net increase in working
capital 2006-07. I suggest that the net working
capital to improve the 2007-08.
The total investment inventory has been
decreased from 2004-2007, it indicates poor
performance in inventory management. I
suggest that to improve inventory.
 Conclusion

After over all evaluation if the working capital

management at each and every aspect of the GV
Film limited, cash management is good
maintaining, inventory management is decreased
every year that was it indicates poor
performance, working capital management also
good performance.
Thank Q