WCM
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Working Capital Management of INDIAN RARE EARTHS LIMITED Project report Prepared & Presented by M. SWAPNA KUMARI & RAJESH KUMAR SAHU Department of Management Studies NATIONAL INSTITUTE OF SCIENCE & TECHNOLOGY (nist) BRAHMAPUR – 761 008, ODISHA Under the guidance of Dr. SISIRA KANTI MISHRA Associate Professor, NIST.
Transcript of WCM
Working Capital Management
ofINDIAN RARE EARTHS
LIMITED Project report Prepared & Presented by
M. SWAPNA KUMARI & RAJESH KUMAR SAHUDepartment of Management Studies
NATIONAL INSTITUTE OF SCIENCE & TECHNOLOGY (nist)BRAHMAPUR – 761 008, ODISHA
Under the guidance ofDr. SISIRA KANTI MISHRAAssociate Professor, NIST.
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Working Capital Management (WCM) A life-giving force for any economic unit
confined to short-term financing requirements of a firm
Evidence in financial literatures supporting its importance with suitable approach
Aim at having balanced, optimal proportions of the WCM components to achieve maximum profit and cash flow
Proof of a classical example of the risk-return nature of financial decision making.
Vital especially for manufacturing firms, thereby directly affecting the profitability and liquidity.
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A registered private limited company on 15th August 1950 with an authorized capital of RS. 1 corer only for the extraction of Rare Earths minerals since 1952.
UNITS : The mineral Division (MD) plants (MSSP) at Manavarlakurchi, Tamilnadu and at Chawara, Kerla, a Thorium plant at Trombay and The Orissa Sand Complex (OSCOM) at Matikhalo, Chatrapur, Odisha.
IREL at Chatrapur as OSCOM (Orissa Sand Complex) with total capital outlay of over Rs. 135 crores since 1976 with its commercial production in October 1986and now a PSU under Department of Atomic Energy of the Govt. of India.
Profile of INDIAN RARE EARTHS LIMITED
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AREAS OF OPERATION : Mining of beach sand minerals Separation of six heavy minerals : Ilmenite,
Rutile, Zircon, Monazite, Sillimanite and Garnet Exercisable operations includes :
a. value addition on zircon by chemical processing b. value addition on ilmenite by chemical processing c. chemical processing of monazite d. separation of individual re salts e. production of mantle garnet thorium nitrate
Profile of INDIAN RARE EARTHS LIMITED
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Objectives :To know the various aspects of the working capital
of WCM at OSCOM, Chatrapur, Odisha.To study the different practices of WCM of the
company.To know short-term solvency position of the
company.To identify problems, if any, with suggestion.
Scope of the Study :To know the current assets and current liability of
an organization.To get a clear picture about company's working
capital.
Methodology
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Research Design : Diagnostic type of research for description, classification & explanation of the topic.
Data Collection : 1. Official documents like files and records of depts., 2. Dept. Manuals, 3. Company Annual Reports & Publications4. Observation and discussion with department
officers
Tolls & Techniques : Use of financial tools with regard to working capital
Methodology
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Limitations : The study is limited to performance study
during four financial years from 2007-08 to 2012-13.
The data are taken from the Balance Sheet & other official documents of the Company, as per the necessity, some data are grouped and sub grouped.
The study is confined to OSCOM, Chatrapur.Due to absence of some primary data, the
project work is done mostly with the secondary data.
Methodology……contd.
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Working Capital……Data Analysis.
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Summerised Financial Ratios
Working Capital……Data Analysis.
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