Working capital management at Britannia Industries Ltd

Type :

Theses

Pages :

40 pages

Format :

.doc

Published date :

06/17/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Objective of the study
Meaning of working capital management
Importance of working capital management
Company profile: Britannia Industries
1. History of the company
Significance of accounting policy
Ways to prepare a good working capital management policy
Meaning of inventory management
1. Types of inventory management
Data analysis and interpretation
Conclusion
Bibliography

Abstract

Finance function is a core function in any organization. I financial management is that managerial activity which is concerned with planning and counseling of firm's financial resources. One such area of financial management is "working capital" and management of this is known as "working capital management". In practice, a firm has to employ short-term assets and short run sources of financing. The management of such assets, and short run sources of financing. The management of such assets, described as working capital management or current assets as working capital management is current assets management is one of the most important aspects of overall financial management. Technically the management is an integral part of the overall financial management. To that extent it is similar to the long-term decision making process because both entail an analysis of the effects of the risk and profitability.

The management is concerned with the problems that arise in attempting to manage current assets, the current liabilities and the interrelationship that exist between them. The term current assets refer to those assets, which in ordinary course of business can be, or will be turned into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm. CL are those liabilities which are intended at their inception to the paid inn ordinary course of business, within a year, out of CA's or earnings of the owner.

The goal of working capital management is to manage firm's current assets and current liabilities in such a way that a satisfactory level of working capital is maintained. This is so because if the firm cannot maintain a satisfactory level of working capital, it is likely to become insolvent.