A STUDY ON WORKING CAPITAL

MANAGENENT IN SR COLLECTION
DHANGADHI-2, KAILALI

A Project Work Proposal

Submitted By:
Mohit Budathoki
Symbol No.705540020
Regd No. 7-2-554-49-2015
Aishwarya Multiple Campus
Dhangadhi-5, Kailali

Submitted To
The Faculty of Management
Tribhuvan University
Kathmandu

In partial fulfillment of the requirement for the degree of Bachelor of Business

Studies
(BBS) Four year
Dhangadhi Kailali
Baishakh, 2076

1. Background of the study:

Working capital management (WCM) is defined as the management of short term liabilities
and short term assets. The process is used continuously to operate and generate cash flow to
meet the need for short term obligations and daily operational expenses.
Working capital management is part of the financing considerations that a finance Manager of
a corporation needs to determine, besides capital structure and capital budgeting (Ross,
Westerfield and Jordan, 2010). In view that each company emphasized on maximizing
profitability that can be generated from their business operation, many studies had been
conducted on the effect of capital structure and working capital management in determining
the profitability, which the result varies based on the study under taken. In this study, Working
capital management components and working capital management policy are analyzed on
their effect toward the firm's profitability.
Every business whether big, medium or small, needs finance to carry on its operations and to
achieve its target. Infact, finance is so indispensable today that its rightly said to be the
lifeblood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its
objectives. So this chapter deals with studying various aspects of working capital management
that is necessary to carry out the day-today operations the term working capital refer to that
part of firm's capital which is required for financing short term or current assets such as cash,
marketable securities, debtors and inventories funds invested in current assets keep revolving
fast and are being constantly converted in to cash and this cash flows out again in exchange for
other current assets. Hence it is known as revolving or circulating capital. On the whole,
Working capital management performs a key function and is of top priority for every finance
manager. All managers must, however, keep in mind that and their pursuit to liquidity, they
should not lose sight of there basic goal of profitability. They should be able to attain a
judicious mix of liquidity and profitability while managing their working capital.

2. Objective of the study

Every research is conducted for the certain purpose. Research is conducted to find out the
solution of problem or to enhance the knowledge or to develop new theory. This study is
mainly focus to analyze the working capital management of s.r collection. The main objective
of the field work is to analysis the working capital of the s.r collection and other objective are
as given below.

 To study the various component of working capital.

 To study the liquidity trend of S.R COLLECTION
 3. Important of the study
Paper management of working capital is very important for the success of an
enterprise. A study of working capital is of major importance to internal and
external analysis because of its close relationship to current day by day
operations of business. Working capital helps to operate the business smoothly
without any financial problem for making the payment of short-term liabilities.

4. Brief profile of the organization

S.R COLLECTION was established in 2069 BS, Ashwin. Under the Nepal government
law. It is located in dhangadhi -2 purano bhansar road. The name of owner is mamata jora. It
provide new design jeans cloths to the market. In short time the firm gets a good customer as
well as goodwill. The purpose of the firm is to provide new design or seasonable clothes to the
public in sufficient price. The starting capital of s.r collection is rupees five lakhs. It increases
the capital is rupees five lakhs to rupees twenty lakhs. It pays rent rupees twenty five thousand
per month. There are one worker. Its sales turnover is three lakhs in a month.

5.Scope of the study

 To set standards in service to coustomers
 To provide to our coustomer the best brands cloths

6. Research Methodology
What is research..?
Research is a systematic, controlled, empirical and critical investigation of hypothetical
propositions about the presumed relations among natural phenomena.

7.limitation of the study

 Lot of time consumed during survey.
 Due to time limited, detailed discussions were not possible.
 Study base on information data provide by the firm.
 This study only cover the sr collection expect of working capital.