SEERAT

WORKING CAPITAL
MANAGEMENT
Presented By:
Sushil Kaur
20029039
Mcom 3rd Sem
Content:
1. Company Profile
2. Working Capital Management
3. Significance Of Working Capital Management
4. TYPES OF WORKING CAPITAL NEEDS
5. Objectives and Scope Of the Study
6. RESEARCH METHODOLOGY
7. Data Analysis and Interpretation
8. FINDINGS
9. Conclusion
Company Profile
“OCEANA TECH PVT LTD”
Plot No E-302 Vista Tower 2nd floor, Sector 75, SahibzadaAjit Singh
Nagar, Punjab 160055
HEADQUARTER5D,Lorien.Place East Tamaki Auckland, New Zealand
OFFICE ADDRESSPlot No E-302 Vista Tower 2nd floor, Sector 75,
Sahibzada Ajit Singh Nagar, Punjab 160055
Headquartered in Auckland, New Zealand, Oceana Tech was initiated by a team of
veterans who joined hands with a common mission of facing and victoriously
resolving software development industry's major challenge- offering
unparalleled solutions on time and within budget. Marked with fresh ideas, the
technology-based solutions offered help you set a milestone among
competitors.
Oceana Tech follows a business model that offer prospective clients with a
complete IT services platform catering to complex digital challenges a
company of any size might face. Whether it is digital marketing, web
development, system operations, SMS marketing or Email marketing, we
proffer you with all of these under one roof. Committed and steadfast towards
offering nothing less than the best to our clients, we work with them from the
beginning of the project till its completion.
Working Capital
Management
INTRODUCTION
The project take on “WORKING CAPITAL MANAGEMENT IN OCEANA TECH,
MOHALI”. It give explanation about that how the company manages its
working capital and also describe the various steps that are required in the
management of working capital in business. Cash is the lifeline of the
company and without cash a company can never survive. Understanding a
Company's cash flow health is necessary to making investment decisions
that how to invest cash in business operations. A good method to judge a
company's cash flow prospects is to look at its working capital
management. Working capital refers to the capital that is used for
conducting day-to-day operations or, more importantly, for financing the
conversion of raw materials into finished goods, which the company sells for
payment and to earn profit. The most important items of working capital
are inventory, accounts receivable, and accounts payable. Analysts look at
these items for measuring the company's efficiency and financial strength.
The working capital is an vital yardstick to measure the company's
operational and financial efficiency. Any company should have a right
amount of cash and lines of credit for operating its business operations at
all times. This project describes how the management of working capital
takes place at Oceana tech.
MEANING OF WORKING CAPITAL
“Working Capital is the Life-Blood and
Controlling Nerve Center of a business” The
working capital management precisely refers to
management of current assets. A firm's working
capital consists of its investment in current assets,
which include short-term assets such as: Cash and
bank balance, Inventories, Receivables (including
debtors and bills), Marketable securities. Working
capital is commonly defined as the difference
between current assets and current liabilities.
WORKING CAPITAL = CURRENT ASSETS-CURRENT
LIABILITIES
Significance Of Working
Capital Management
1.For one thing, the current assets of a typical

manufacturing firm account for half of its total assets. For
a distribution company, they account for even more.
2. Working capital requires continuous day to day
supervision. Working capital has the effect on company's
risk, return and share prices.
There is an inevitable relationship between sales growth
and the level of current assets. The target sales level can
be achieved only if supported by adequate working
capital Inefficient working capital management may lead
to insolvency of the firm if it is not in a position to meet
its liabilities and commitments.
TYPES OF WORKING CAPITAL
NEEDS
1.Permanent working capital:
There is always a minimum level of working capital, which is
continuously required by a firm in order to maintain its activities. Every
firm must have a minimum of cash, stock and other current assets, this
minimum level of current assets, which must be maintained by any firm
all the times, is known as permanent working capital for that firm. This
amount of working capital is constantly and regularly required in the
same way as fixed assets are required. So, it may also be called fixed
working capital.
2.Temporary working capital:
Any amount over and above the permanent level of working capital is
temporary, fluctuating or variable working capital. The position of the
required working capital is needed to meet fluctuations in
demand consequent upon changes in production and sales as a result of
seasonal changes. The permanent level is constant while the temporary
working capital is fluctuating increasing and decreasing in
accordance with seasonal demands as shown in the figure. In the case
of an expanding firm, the permanent working capital line may not be
horizontal. This is because the demand for permanent current
assets might be increasing (or decreasing) to support a rising level of
activity. In that case line would be rising.
Objectives and Scope Of the
Study
OBJECTIVE OF STUDY :-
The objectives of this project were mainly to study the inventory, cash and receivable
at Oceana tech, but there are some more and they are –
1. The main purpose of our study is to render a better understanding of the
concept “Working Capital Management”. 2. To understand
the planning and management of working capital at Oceana tech. 3. To
measure the financial soundness of the company by analyzing various ratios.
SCOPE OF THE STUDY:-

This project is important to me in a significant way. It does have some
importance for the company too. These are as follows –
1.This project will be a learning device for the finance student.
2.This will show the liquidity position of the company and also how do they maintain a
particular liquidity position.
3.Through this project I would study the various ratios of the working capital
management.
4.The project will be a learning of planning and financing working capital.
RESEARCH
METHODOLOGY
A Research design is the set of methods and procedures used in collecting and analyzing measures of the
variables specified in the problem research so that the research problem is efficiently handled. The
sketch of how research should be conducted can be prepared using research design.
METHODS OF DATA COLLECTION:-

In preparing of this project the information collected from the following sources:-
Primary Data:
The Primary data has been collected from personal interaction and discussions with the finance manager
and the other staff members of the company, Oceana tech and current annual reports.
Secondary Data:
The major source of data for this project was collected through previous years annual reports, Profit and
Loss account, Balance Sheet, Websites, Records such as files, reports maintained by the company of
Five year period from 2014 to 2019 & some more information collected from internet and text sources.
Research Methodology
This project requires a detailed understanding of the concept –“Working Capital Management”.
Therefore, firstly we need to have a clear idea of what is working capital, how it is manage in
Oceana tech, what are the different ways in which the financing of working capital is done in
the company.
The management of working capital 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.
Data Analysis and
Interpretation
FINDINGS
1.Working Capital of the Oceana Tech Pvt. Ltd. Was increasing and
showing positive working capital per year.
2.The Oceana Tech Pvt. Ltd. Has not achieved standard ratio in term of
current ratio and quick ratio.
3.Inventory Turnover Ratio is very low in the year 2016-2017. In the year
2017-2018 it has increased by 6.33 times as compared to 2016-2017
and in last year 2018-2019 it has again increased by 3.21 times as
compared to 20117-2018.
4.Debtors turnover ratio is very high in the year of 2016-2017. But it
decreased in the year of 2017-2018 by 0.7 times as compared to
2016-2017 and in the last year it has again decreased by 1.18 times
as compared to 2017-2018.
5.Creditors Turnover ratio has increased in the year of 2016-2017 and
2017-2018. It is same in the last year 2018-2019 as compared to
2017-2018.
6Working capital turnover ratio is low in the year of 2017-2018. But it
increased in the last year by 0.37 times as compared to 2107-2018.
Conclusion
The study was conducted to analyze the working capital
management in Oceana Tech, Mohali. The financial
position of the company was analyzed and
interpreted. The analysis and interpretation of data
relating to working capital management of Oceana
Tech have concluded that company requires a safe
current ratio and quick ratio. The Company need to
invest in current assets. But the financial status of
the company is good. The working capital ratio of the
company increased in the last years. In the last year
inventory turnover ratio has also increased. It is good
sign for the company. Company is moving forward
with excellent management.

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WORKING CAPITAL

1.For one thing, the current assets of a typical

SCOPE OF THE STUDY:-

METHODS OF DATA COLLECTION:-

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