WORKING CAPITAL AT ZUARI CEMENT

ABSTRACT

The Indian cement Industry today is in the front rant of Indias cement based
industries with wide ranging capabilities in the complex field of technology. A
highly organized sector, the Indian cement Industry is estimated to be worth $5.2
billion, growing at bout 8 to 9 percent annually. It ranks very high in the third
world, in terms of technology, quality and range manufactured..
Cash is the lifeline of a company. If this lifeline deteriorates, the companys
ability to fund operations, reinvest and meet capital requirements and payments
also deteriorate. Understanding a companys cash flow health is essential for
making investment decisions. A good way to judge a companys cash flow
prospects is to look at its working capital management (WCM).
Working Capital Management is one of the key areas of financial decision
making. It is significant because, the management must see that an excessive
investment in current assets should protect the company from the problems of
stock-out. Current assets will also determine the liquidity position of the firm.
To study the existing working capital management system. To find the
liquidity position of the current assets and current liabilities of the company. To
examine feasibility of present system of managing working capital






INTRODUCTION OF FINANCE

Finance is the lifeblood of the organization, irrespective of its size and mission.
Management of finance in the organization has been changing at a rapid pace after the inception
of the computers in the field. in the modern phase the financial manager is not in a passive role
of a scorekeeper of accounting information and arranging funds, whenever diversified to do so.
rather, he is confronted with the various issues and decisions to ensure that the funds are raised
economically and canalized in the most effective manner.

The information of recent economic policies and fiscal policies has further eroded changes
in competitiveness of India n industry. some of the main measures like liberalization,
globalization, encouraging foreign direct investments and foreign institutional investments have
made the financial manager to have broader and foresighted outlook indicating the financial
implication like

What kind of plant and machinery should the firm buy?
How should it raise finance?
How much should it invest in inventories?
How should its credit policies be?
How much profit should it secure on sales keeping an eye on competitors?
Accounting is the language of business the important stage of accounting are passing
journal entries in the book; posting them into the ledger, balancing the accounts and preparing
the trial balance preparation of final statement of accounts. Final statement of accounts can also
be called as financial statements. The term final statements as used in accounting, refers to two
statements:

Profit and loss accounts (income statement) and balance sheet.
The purpose of preparing profit and loss account is to ascertain the net result of trading
activities carried on during a particular period, generally on a year. the profit and loss ascertain
by preparing the profit and loss account will have its own impact on owners equity. Balance
sheet is prepared with a view to know/show the financial position of the business unit on a given
date, generally the date of business year ending. in case of joint stock company, financial
statement include profit and loss account also accounting principles, concepts and conventions
are not only followed in making the journal entries and posting them into the ledger but also in
preparing the final statement of accounts.

The financial statements provide rich information about the operation results and the
financial position of a business enterprise. The financial statements are of much interest to a
number of groups of persons. Management requires them for the purpose of evaluation of
trading activities and decision-making. Apart from the management, there are certain other
interested persons such as shareholders, debenture holders, investors, bankers, govt. trade
creditors, journalists, legislators, researchers and the like.

Financial Statements
Accounting process starts with recording day-to-day business transaction in journal and
ends with the preparation of final/financial statements of accounts.
Financial statements are prepared for the purpose of presenting a periodical
review achieved during the period under review. They reflect a combination of recorded facts,
accounting principles and personal judgments.
American institute of accountant.





NEED FOR STUDY

In order to maintain revenue from operations every firm needed certain amount of current assets
for example cash is in require to pay for expenses or to meet obligation for service received etc. By a firm
identical plan inventories are required to provide the link between production and sales similarly accounts
receivables generate when goods are sold on credit.
Needless to maintain cash, bank, debtors, bills receivables, closing stock (including raw material
work-in progress finished goods) prepayments certain other deposits and invest which are temporary in
nature represents current assets of a firm.

SCOPE AND PERIOD OF THE STUDY

The scope of the study is defined below in term of concepts adopted and period under focus.
First the study management or working capital is confined only to the zuari cement limited.
Secondly, the binary concepts o working capital i.e. gross and net are used in measuring
profitability and liquidity respectively and also to arrive at various objectives of the study.






OBJECTIVES OF THE STUDY:

To study the liquidity position of the Zuari cement ltd
To study the working capital position of the company.
To study the changes in the networking capital during the study period.
To study the short-term financial position of the Zuari cement ltd by analyzing different ratios.
To analyze the financial position of the company using working capital.


LIMITATIONS OF THE STUDY

1) The information provided in the company balance sheet is only the data source available.
2) Some required secondary data which is not provided by company.
3) The information available in the balance sheet have taken from the published annual reports, so it
has only limitations.
4) Since financial matters are sensitive in nature the same could not be acquired easily.
5) There is only two months period two finish the project, due to lack of time in depth so financial
matters have not been touched.
6) More dependency on secondary.