2016-17
Permanent URI for this collection
Browse
Browsing 2016-17 by Subject "1NH15MBA07"
Now showing 1 - 1 of 1
Results Per Page
Sort Options
Item A STUDY ON EFFECTIVENESS OF WORKING CAPITAL MANAGEMENT WITH REFERENCE TO SKY ASSOCIATES(2017-08-16T10:08:52Z) AJITHRA, NThe Project has been undertaken at Sky Associates, Bangalore, for duration of sixteen weeks. Management of the working capital is an important aspect in all business organisations. The management of the current assets includes Inventory, Received, Debtors, Book debts, Short-term assets cash and bank balances. The management of fixed and current assets, however differs in three important ways. 1. In managing fixed assets time is a very important factor, consequently, discounting and compounding techniques play a significant role in capital budgeting and minor one in the management of current assets . 2. The large holding of current assets, especially cash, strengthens, the firm‘s liquidity position (reduces riskiness), but also reduces the overall profitability. Thus a risk returns trade-off is involved in holding current assets, 3. Level of fixed as well as current assets depends upon expected sales, but it is only current assets, which can be adjusted with sales fluctuations in the short run. Thus the firm has a greater degree of flexibility in managing current assets. Working Capital refers to the amount of capital which is readily available to an organization that is, working capital is the difference between resources in cash and readily convertible into cash (current assets) and organizational commitments for which cash will soon be required (current liabilities). Thus, working capital involves activities such as arranging the short-term finance, negotiating favorable credit terms, controlling the movement of cash, administrating accounts receivables and monitoring the investments also a great deal of time.