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A Project Report On WORKING CAPITAL MANAGEMENT Submitted for the partial fulfillment of the requirement for the award of the degree of Masters of Business Administration (MBA)

SUBMITTED TO SUBMITTED BY

Prof. Parag Pateria

Kritika Jain

(HOD) MBA

MBA 2nd Semester

Department of Management Raipur Institute of Technology, Chhatauna, Mandir Hasaud, Raipur (C.G) Website : www.rit.in E-mail : [email protected]

ACKNOWLEDGEMENT

I would like acknowledge my deep sense of gratitude to my esteemed guide Mr.AKSHAY SHAMBARIA(AGM) , ACL Bhatapara for his constant encouragement, valuable guidance and keen interest coupled with precise suggestions, which served a lot in successful completion of the work. My acknowledge would be incomplete if we fail to mention the continuous encouragement and moral support by Mr. Irenius Kerketta, Senior Manager (HRM), Mr. MANISH METHA of Ambuja Cement Limited, Bhatapara. Also, I would also express my gratitude to Prof., Internal Guide, Faculty of Management, Raipur Institute of Management and Technology, Raipur Finally, I avail this opportunity to express my sincere thanks to all the staff members of HRM, Ambuja Cement Limited and all the contractors and the contract labours who have helped me a lot for the successful completion of this project.

KRITIKA JAIN

DECLARATION

I, MISS.KRITIKA JAIN hereby declare that this report is the record of authentic work carried out by me during the academic year 2008-2010 in AMBUJA CEMENT LIMITED, VILLAGE- RAWAN, BHATAPARA, RAIPUR. CHHATTISGARH..

KRITIKA JAIN

ABSTRACT Finance departmentof any organisation play an mportant role to maintain the cash flow. Every company managing their working capital before running the business. The managerial accounting strategy focusing on maintaing efficient lavel of both componends of working capital as current asserts and current liabilities. Each company needs to types of capital fixed and working capital. With out working capital a company can not succesfully run. So adequade working capital is necessary for every organisation. It helps to maintain any bussiness concern very smoothly and maintain liquidity of the firm.

INDEX CHAPTER-1 INTRODUCTION

1

1.1 HISTORY OF AMBUJA CEMENT

2-9

1.2 COMPANY PROFILE

10-12

1.3 AMBUJA CEMENT LTD

13-14

1.4CEMENT:THE INDIAN SCENE

15

1.5 CEMENT INDUSTRY IN INDIA

15-18

1.6 HISTORY OF HOLCIM

19

1.7 EASTERN REGION

20-21

1.8 CEMENT INDUSTRY IN CHHASTTISGARH

21-22

1.9 PRODUCT PROFILE

23-32

CHAPTER-2 INTRODUCTION OF TOPIC

33

2.1 WORKING CAPITALMANAGEMENT

34

2.2 DEFINITION OF WCM

35

2.3 CURRENT ASSETS

35-36

2.4 CURENT LIABLITIES

37

2.5 TECHNIQUES OF FORECASTING

37

2.6 ESTIMATION OF C.A &C.L

38-39

2.7 FACTORS AFFECTING W.C

39-40

CHAPTER-3 DATA INTERPETATION AND ANALYSIS

41

3.1OPERATING CYCLE PERIOD

42

3.2 METHODOLOGY

42

3.3 INVENTORY PERIOD

43-46

3.4 ACCOUNT RECEIVABLE PERIOD

47-49

3.5 OPERATING CYCLE PERIOD

50-52

3.6 ACCOUNTS PAYABLE PERIOD

53-55

3.5 CASH CYCLE PERIOD

56-58

3.5 SUGGESTION

59-63

CHAPTER-4 CONCLUSION

64

CHAPTER-5 BIBLIOGRAPHY

65-66