MBA

Permanent URI for this community

http://172.16.1.132:4000/handle/123456789/36

Browse

Browsing MBA by Author "Abhilash L, Jalageri"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    A Study on Working Capital Management in Hal,Mcsrdc Division,Bangalore
    (2018-10-16T10:19:53Z) Abhilash L, Jalageri
    A well designed and implemented working capital management is expected to contribute positively to the creation of a firm‟s value. The purpose of this project is to examine the trends in working capital management (WCM) and its impact on the performance of HAL (MCSRDC DIVISION) during the last few years. This project aims at learning various facets of working capital management at HAL by studying the day to day activities at its MCSRDC division which mainly deals in aircraft projects. Working capital management involves not only managing the different components of the current assets, but also managing the current liabilities, or to be more precise, financing the current assets. A firm is required to maintain a balance between liquidity and profitability while conducting its day to day operations. Liquidity is a precondition to ensure that firms are able to meet its short-term obligations and its continued flow can be guaranteed from a profitable venture. The importance of cash as an indicator of continuing financial health should not be surprising in view of its crucial role within the business. This requires that business must be run both efficiently and profitably. In the process, an asset-liability mismatch may occur which may increase firm‟s profitability in the short run but at a risk of its insolvency. On the other hand, too much focus on liquidity will be at the expense of profitability. There are three main areas in working capital management and the project focuses on the following:  Receivables management  Cash management  Inventory management By using the financial statements of HAL, an analysis has been carried out to understand the trends that have been followed. The financial statements (mainly balance sheet along with profit & loss accounts) are used to work out various ratios which help us in better understanding the organisation‟s working capital management.