A SYNOPSIS ON

“TO STUDY THE WORKING CAPITAL MANAGEMENT OF

AMBUJA CEMENT DEALER IN CHANDRAPUR”

Submitted for the partial fulfilment of the

requirement for the award of Degree in

Master of Business Administration

(Gondwana University Gadchiroli)

Submitted By
Mr. Dipak B. Rahangdale
M. B. A. (Final Year)
2023-2024

Under the Guidance of

Dr. Farukh Ahemad

Under the Guidance of

Sau. Leena Kishor Mamidwar Institute of

Management Studies & Research, Kosara,
Chandrapur
2023 - 2024
 Sau. Leena Kishor Mamidwar
Institute of Management Studies & Research, Kosara,
Chandrapur

CERTIFICATE

This is to certify that, Mr. Dipak B. Rahangdale is a

bonafied MBA (Final Year) Student of Sau. Leena Kishor Mamidwar
Institute of Management Studies & Research, Kosara, Chandrapur for
the session 2023 -2024 completed his synopsis entitiled “ To Study the
Working Capital Management of Ambuja Cement Dealer in
Chandrapur.” Under the guidance of Dr. Farukh Ahemad.

The Synopsis is being submitted to Gondwana University,

Gadchiroli in the partial fulfillment of the requirement for the Degree
of Master of Business Administration.

Date :
Place : Chandrapur
Dr. Farukh Ahemad
(PROJECT GUIDE)
Sau. Leena Kishor Mamidwar Institute of
Management Studies & Research,
Kosara, Chandrapur
 INDEX

Sr. No. Chapters Pg. No.

1. Introduction 3

2. Objective of Study 4

3. Importance and Scope of Study 5

4. Hypothesis 6

5. Research Methodology 7

6. Review of Literature 8

7. Possible Outcome 9

8. Bibliography 10
 INTRODUCTION

Working capital management is a vital issue in financial decision

making since it is a part of investment in current assets and current liabilities
which directly affect the liquidity and profitability of the company. Working
capital management involves planning and controlling current assets and current
liabilities in a manner that eliminates the risk of inability to meet short term
obligations on the one hand and avoid excessive investment in these assets on the
other hand (Eljelly 2004). Efficient management of working capital plays an
important role of overall corporate strategy in order to create shareholder value.
Working capital is regarded as the result of the time lag between the expenditure
for the purchase of raw material and the collection for the sale of the finished
good.

COMPANY PROFILE :- Ambuja Cement aspires to be the most competitive

and sustainable company in the cement manufacturing industry. Acting in a
sustainable manner is not only a business imperative but also provides the
company with a competitive advantage. We believe that a company is not
measured only through its profits; its True Value lies in what it gives back to the
people and the environment. The core of our sustainability philosophy is based on
shareholder benefit, safe operations, environment conservation and social well-
being. Ambuja Cements Ltd. is among the leading cement companies in India. It
is a member of the Adani Group - the largest and fastest-growing portfolio of
diversified sustainable businesses. Ambuja Cement is known for its hassle-free,
home-building solutions.

3.

11 5.
 OBJECTIVES OF THE STUDY

1) To study the working capital management of Ambuja Dealer in

Chandrapur. Using various financial ratio.

2) To analyse data related profitability of last few Year and

analysis the past and present financial performance of
Company.

LIMITATIONS OF THE STUDY

) The analysis is limited to only five years of data.

) The study is purely based on secondary data and primary data
ONLY for the study.
) The study gives only limited data for further study.
) Some Executives were over busy with their official work and
terefore they could not spare requisited time for me.


11 5.
 IMPORTANCE AND SCOPE OF STUDY

IMPORTANCE :- The need for working capital cannot be over emphasized.

Every business needs some amount of working capital. The need for working
capital arises due to the time gap between production and realization of cash from
sales. There is an operating cycle involved in sales and realization of cash. There
are time gaps in purchase of raw materials and production; production and sales;
and sales and realization of cash.

Thus, working capital is needed for the following purposes:

• For the purchase of raw materials, components and spares.

• To pay wages and salaries.
• To maintain the inventories of raw materials, work in progress, stores and spares
and finished stock.

SCOPE :- The study is on Working Capital Management of Niva Bupa

Company.

Management of Working Capital refers to management of current asset, current

liability and relationship between them.

➢ The basic goal of working capital is to maintain the satisfactory level.

➢ A sound working capital policy ensures higher profitability and proper
liquidity of a firm.
➢ Business is usually done on credit; there is a time lag between the date of
sale and date of receipt of revenues, which can be as high as 90 days at
times.
➢ Considering all these, it is essential that a company has sufficient capital.
11 5.
 HYPOTHESIS

Null Hypothesis

1. There is no relation between Average Collection Period and Return on

Assets.
2. There is no relation between Average Payment Period and Return on Assets.

Alternate Hypothesis

1. There is significant relation between Average Collection Period and Return

on Assets.
2. There is significant relation between Average Payment Period and Return on
Assets.

6.
6
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research

problem and an approach in management research to achieve pre-defined
objectives. It comprises the procedures used for generating, collecting and
evaluation of data method. It helps a researcher to guide during the course of
research work and also to proceed to conduct the study as per the objectives

❖ PRIMARY DATA
The information is collected through the primary sources like:

1. Collecting data through Unstructured Interviews of the executive and

Discussion with (Team Leader) of the Finance department of company.

2. Getting information by observations e.g. in Business processes.

❖ SECONDARY DATA
The method of data collection used in the study is secondary data like ;

1. Secondary data are collected from records, annual reports of the company.

2. The major sources of data for this project were collected from the
proceeding websites, balance sheet and profit and loss account through
annual reports of five years.

7.
 REVIEW OF LITERATURE

HAMASALAKSHI & Mr. MANICKAM (2005) “A Cross Section Study of the

Measurement of Liquidity and Profitability” Researcher examined liquidity,
profitability and leverage position of thirty four software companies during the
period 1997-1998 to 2001- 2002 by using ratios, correlation and multiple
regression analysis. The study revealed favourable liquidity and working capital
position. They concluded that the companies rely on the internal financing and
overall profitability position of the software companies showed a moderately
increasing trend.

SUDHANSU MOHAN SAHOO & GOM KARNATH (2005) “Operating

Cycles, Working Capital Finance and Tandon Formula” the study analysed the
capital structure of the Indian corporate sector and the factors that determine the
debt-equity of the firms during the period 1980-81 to 2003-04. The study
concluded that the firm is significantly and positively to debt-equity ratio, asset
structure and profitability are the most significant factors deciding the capital
structure.

Cote, et.al, (1999) argued the management of receivables, inventory and

accounts payable have tremendous impact on cash flows, which in turn affect the
profitability of firms. Each of the Working capital items (i.e., cash, receivables
and inventories) helps in the management of firms in its own particular way.

Padachi (2006) found that high investment in inventories and receivables is

associated with lower profitability. He used return on total assets as a measure
of profitability for a sample of 58 small selected units In Automobile Industry in
Mauritius for the period 1998 -2003.

8.
 POSSIBLE OUTCOME

CONCLUSION : The study has been conducted on the working

capital system of Ambuja cement Company with the help of various
Ratios, Statement of Changes in Working Capital and Correlation.
Working Capital Management techniques are playing significant role
in assistant the management for design making. The Working Capital
contains the management of cash, management of receivables and
management of inventory.

9.
 BIBLIOGRAPHY

1) Ahamed Ayub, (2011). - A Comparative Study on Working Capital

Management of Selected Pharmaceutical Companies of India. International
Journal of Commerce, Business and Management (IJCBM).

2) Ghosh , S. K. – Working Capital of Management Efficiency : The Study

Of Cost and Works Accountants of India.

3) Niva Bupa Company (2023). Annual Financial Reports. 2018-2023.

REFERENCE WEBSITE : https://www.nivabupa.com/

• www.google.com • www.slideshare.com
• www.managementparadise.com • www.bundlefinance.com
• https://www.wikipedia.org

Signature of the Student Signature of the Guide

Mr. Dipak B. Rahangale Dr. Farukh Ahemad
MBA Final Year L.K.M.I.M.S.R Kosara,
2023-2024 Chandrapur

10.