Summer training Project Report On

“Working Capital Management”

  At  
Modi Industries Ltd
(Modi Arc Electrodes Co.)
School of Management
Apeejay Institute of Technology G. Noida
2009-11
Submitted By:- Guided By:-
Rahul Kr. Tyagi Dr. A.K. Upadhyay
Roll No. M 2009069
 Introduction
• It describes about how the company manages
its working capital and the various steps that
are required in the management of working
capital.
• Working capital refers to the cash a business
requires for day-to-day operations or, more
specifically, for financing the conversion of raw
materials into finished goods, which the
company sells for payment.
 Types of W. C.

KINDS OF WORKING CAPITAL

ON THE BASIS OF ON THE BASIS OF

CONCEPT TIME

TEMPORARY/VARIA
GROSS WORKING NET WORKING PERMANENT/FIXED
BLE WORKING
CAPITAL CAPITAL WORKING CAPITAL
CAPITAL

REGULAR RESERVE SEASONAL SPECIAL

WORKING WORKING WORKING WORKING
CAPITAL CAPITAL CAPITAL CAPITAL
 Company Profile
MODI ARC ELECTRODES CO., a unit of Modi Industries
Ltd., has a turnover of 125 crores, was established in the
year 1962. Presently, a wide range of electrodes ranging
from general purpose mild steel to stainless steel, cast
iron to nonferrous, hard surfacing to low hydrogen are
manufactured on the most modern equipment. Like
as:-.Deep Penetration Electrodes ,Mild Steel Electrodes,
Low Hydrogen & Low Alloy steel electrodes, Stainless
Steel Electrodes, Hard-Facing Electrodes ,Cast Iron & Non-
Ferrous Electrodes.
 
 Company’s Products & client
Products:- Electrodes, Welding equipment and
Welding wires.

Client:- ONGC, Delhi Metro, Hindustan

Petroleum, Bharat Petroleum, BHEL, Jaypee
Group, L T , ESSAR, OM Metals, Godrej, Indian
Railways, NTPC, Indian Oil, JsW, Hmt, Relince
ind. Ltd., BGR Energy, Swaraj Mazda etc.
 Objectives of the study
• The main purpose of our study is to render a
better understanding of the concept “Working
Capital Management.
• To measure the financial soundness of the
company by analyzing various ratios.
• To suggest ways for better management and
control of working capital at the concern.
• To understand the planning and management
of working capital at MODI ARC ELECTRODES Ltd.
 Research Methodology
• This project requires a detailed understanding of
the concept – “Working Capital Management”.
Therefore, firstly we need to have a clear idea :-
what is working capital, how it is managed in
MODI ARC ELECTRODES .
• The management of W. C . involves managing
inventories, accounts receivable and payable and
cash. Therefore one also needs to have a sound
knowledge about cash management, inventory
management and receivables management.
 S UG G E S T I O N
• Company should decrease the operating
expenses to increase its operating profit.
• Maintain the amount of current sales level and
try to increase it.
• Try to best utilization of the available resources.
• Maximize the production capacity.
• Reduce the current assets and quick assets ratio
to maintain the standard ratio.
 Findings
• In ability of funds.
• Poor Infrastructure.
• Transportation should be flexible.
 CONCLUSION
• If these ratios are properly followed the
capital investment in the current assets is
above the standard ratio and the cash position
of the company would substantially improve.
• The Turnover Ratio give good sign of the
success but in the debtor’s turnover ratio
shows that company provided more credit
period of payment to its customer, which is
not beneficial for it.
• The Profitability Ratio all indicates good sign
but increase in the operating and financial
expenses of the company, which is not good
sign for the company future
 BIBLOGRAPHY
• M.Y.KHAN AND P.K. FINANCIAL MANAGEMENT
(Tata McGraw- Hill Publishing Company Limited,
NEW DELHI)
 L.K. NARANG AND S.P. JAIN FINANCIAL
MANAGEMENT(KALYANI PUBLISHERS, NEW
DELHI),2000.
• ANNUAL REPORTS OF THE Modi Arc
Electrodes.
• www.groupmkm.com