“A STUDY ON WORKING CAPITAL MANAGEMENT IN

ZUARI CEMENT LTD., YERRAGUNTLA”

Project Synopsis submitted in partial fulfillment of the requirement for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR

By
Name: G.KARTHIK KUMAR

Reg. No. 17AK1E0035

Under the guidance of

Dr. S. RAMESH BABU, M.B.A., Ph.D.,

Professor & Project Guide
Department of MBA

DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
TIRUPATI-517520
MBA 2017-2019

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1.INTRODUCTION:

WORKING CAPITAL MANAGEMENT

Meaning of Working Capital:
Ordinarily, the term “working capital” stands for that part of the capital, which is
required for the financing of working or current needs of the company. Working capital is the
lifetime of every concern. Whether it is manufacturing or non-manufacturing one with out
adequate working capital, there can be no progress in the industry.
The working capital of the firm is not managed. The term describes a category of
management decisions affects specific types of current assets and current liabilities. In turn,
those decisions should be rooted in the overall Valuation of the firm.

DEFINITION:
According to Western and Brigham,”Working capital refers to a firm’s investment in
short term assets- cash, short term securities, accounts receivables and inventories”.
According to Hoagland, “working capital is descriptive of that capital which is not
fixed. But the more common use of the working capital is to consider it as the difference
between the book value of the current assets and the current liabilities.

2. INDUSTRY PROFILE

Introduction:
Cement is a key infrastructure industry. It has been decontrolled from price and
distribution on 1st march, 1989 and deli censed on 25 th July 1991. However, the performance of
the industry and prices of cement are monitored regularly. The constraints faced by the industry
are reviewed in the infrastructure Coordination Committee meetings held in the Cabinet
Secretariat under the Chairmanship of Secretary (Co-ordination). Its performance is also
reviewed by the Cabinet Committee on infrastructure.
Profile of Cement Industry:
The Indian Cement industry is the second largest cement producer in the world, with a
installed capacity Of 144 million tones. The industry has undergone rapid technological up
gradation a vibrant growth during the last two decades, and some of the plants can be compared in
every respect with the best operating plants in the world.

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HISTORY OF CEMENTS:

 Invention of cement of JOSEPH ASPARIN. Leeds builder in bricklayer.

 21st October, 1824 patented as Portland cement.
 1904 itish and American standards of Portland cement.
 1912 Indian cement company limited established factory at Portlander.
 1951 Indian standards.
 CEMENT MANUFACTURING PROCESS:
 The cement manufacturing process beings when limestone, the basic raw material
used to make cement, is transported by rail to the plant from the limestone quarry.
 The limestone is combined with clay, ground in a crusher and fed into the additive silos.
Sand, iron and bottom ash are then combined with the limestone and clay in a carefully
controlled mixture with which is ground into a fine power in a 200hp roller mill.

3. COMPANY PROFILE

Part of the prestigious Dr .K. K.Birla group, a Rs 4000crores conglomerate,

Zuari cement has with in a short time-span made its presence felt in the cement industry.
It has done so by making top quality cement.
Consistently, cement that has won the confidence and trust of millions in the
country. This commitment to quality has been it grows from a modest 0.5 million tone
capacity in 1995 to 2 million tones today. Zuari’s quality drive organates in it is state-of –
the art cement plant, situated at Yerraguntla, renowned for rich Narji limestone deposites ,
this plant is cement-manufacturer’s envy.

MERGER OF SRI VISHNU CEMENT LIMITED (SVCL) WITH ZUARI CEMENT

LIMITED (ACL):
The Board of Directors in its meeting held on 8th September 2006 approved the scheme of
amalgamation between ZCL and SVCL. Subsequently, your company has filed an application
under section 391 of Companies Act before Act before the Honorable high court of Andhra
Pradesh seeking dispensation of the meetings of the equity shareholders, preference shareholders,

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secured and unsecured creditors. The Hon’ble High Court vides its order dated 22 nd January 2007
dispensed with meetings of said shareholders and creditors.

4. Need For the Study

 For the purchases of Raw-Materials, components and pares.

 To pay Wages and Simplicity.
 To incurred day-to-day expenses and overhead costs such as Fuel, Power and Office
Expenses etc.
 To meet the selling costs as packing, advertising etc.
 To provide credit facilities to the customers.
 To maintain the inventories of Raw-Materials, Work-in-process, stores and spares and
Finished stock.
5. Scope of the Study
This study will evaluate the way in which the firm’s financial condition is being
maintained. This study will thus help the company in maintaining better financial performance
which is followed by a blend of findings and suggestions. Working capital management is very
important in business organization. Working capital is the blood of the organization.

6. Objectives of study:
 To study the performance of working capital management in Zuari cement Ltd.
 To study liquidity position of the Zuari cement Ltd.
 To find out changes of Working capital of the Zuari cement Ltd.
 To identify the various components of working capital of Zuari cement ltd.

7. Research methodology:

DATACOLLECTION:

The study depends on primary and secondary data from various sources.

Primary Data:

First hand information was collected from experts of finance department on the basis of
which actual position of the company is identified.

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Secondary Data

The secondary data that is required for the study is collected from the annul reports,
schedules, budgets and other statements provided by finance department of “Zuari cement
Limited

Research Design
Exploratory research design has been adopted in the present study. Exploratory research
design largely interprets the already available information; it makes use secondary data and lays
emphasis on analysis and interpretation of the existing and available information.
SOURCES DATA
The study is based on secondary data and discussions with the officials of the company.
The secondary data consists of the annual reports of zuari cement limited ranging for the last
5years.various other reports are collected from the companies magazines, Published books and
from websites.
Data Collection Tools
The analysis is purely based on the secondary date and discussion with the personnel’s
concerned. The secondary data has been collected from published annual reports of Zuari cement
ltd, relevant information has been collected from other publications.
General observation the data relating to the performance of Zuari Cements Limited drawn
from the different sources, have been carefully and meaning analyzed by using well-established
tactical tools and financial tools. The main objective of the report is to work as a trainee.

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