WORKING CAPITAL MANAGEMENT IN A STUDY ON WORKING CAPITAL MANAGEMENT IN COOPER BUSSMANN INDIA PRIVATE LIMITED PUDUCHERRY

PROFILE OF THE COMPANY BACKGROUND – COOPER INDUSTRIES Cooper Industries having their manufacturing excellence and market leading product. Initially started with a small iron foundry in Ohio, US, Cooper has grown world wide, diversified over 100 manufacturing bases spread over five continents. The two businesses segments namely electrical products and Tools & Hardware products are the best known brands in their industries. PRODUCTS   CBIL manufactures “Bussmann” brand products for local markets and exports them to UK for further distribution and customer services. Global Brand now locally available. Bussmann is now setting up new production lines for the export market of Europe and for world wide distribution.

MEANING OF WORKING CAPITAL Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses.

OBJECTIVES OF THE STUDY To find whether the company maintains minimum investment in inventory organized the profitability. 2. To know whether the company maintain a large size of inventory for efficient and smooth production and sales operations. 3. To know how the company maintains its credit policy. 4. To point out how well the company manage its cash. 5. To find whether there is proper match between current assets and current liabilities. 6. To know the ways and means of financing working capital

RESEARCH METHODOLOGY Research is a process in which the researcher wish to find out the end result for a given problem and thus the solution helps in future course of action. RESEARCH DESIGN The research design used in this project is Analytical in nature. TOOLS USED IN THE ANALYSIS 1. Ratios analysis 2. Comparative balance sheet 3. Trend analysis

FINDINGS OF THE STUDY Cash to current assets ratio has huge fluctuations during the period. Cash position in of the company has uneven trend. Uneven trend in networking. The company has its working capital ratio has been above the standard norms during the period 2000-01, 01-02, 02-03. Liquidity position of the company is satisfied. Current assets are not properly utilized by the concern towards the turnover. Working capital turnover ratio in the year 2003 better when compare to the previous year. The company has spent huge expenses.

SUGGESTIONS & RECOMMENDATIONS The cash position of the company has not been properly maintained. So the company has to make an effort to reduce the expenses and also cash to current assets ratio. Company can utilize their assets properly. Modernized equipments can purchase. From current ratio, overall ratio was above the accepted norms of 0.5. so the company has to reduce the overall ratio avoid the unnecessary cash kept in ideal. Company can properly maintain their debtors to sales turnover ratio. A Working capital ratio has been maintained below the norms.

CONCLUSION The project report is the apex of the master of business administration course conducted by the Pondicherry University. The study is conducted at Cooper Bussman India Private Limited, Setharapet with the title of a study on working capital management. This study was conducted mainly with help of secondary data obtained from the unit. The company should use the minimum investment in inventory to organized it profitability. Whether the company may invest large size of inventory to the concern. The efficient and production levels are decreased. So the concern should maintain the maximum investment in inventory. The company able to achieve the working capital management objectives in proper way.

LIMITATIONS OF THE STUDY An account of Shortage of time, money and energy this is confined only to Cooper Bussmann India Private Limited. Some data’s are not given because of confidential. Due to lack of practical knowledge, I am unable to research in an in depth manner.

SCOPE FOR FURTHER STUDY The scope of the present study on composes within its fold a theoretical frame work of working capital management. In general, analysis of working capital trends, relationship of working capital to sales, liquidity of working capital, analysis of management of components of working capital and the management of working capital finance in the select unit. The period covered by the study in five years from 2000 to 2004.