This unit is situated on badal road bathinda in the cotton belt of punjab .this unit was established in 1988

Vardhman Polytex Limited (VPL) (formerly known as Punjab Mohta Polytex

Leading Textile Group of Northern India

Chairman - Ashok Oswal

In simple words working capital means that which is issued to carry out the day to day operations of a business.

Every business needs funds for two purposes, for its establishment and to carry on its day to day operations.

Funds are also needed for short term purposes i.e. for the purchase of raw material, payment of wages and other day to day operations of business. These funds are known as working capital.

Gross Working Capital

It is simply called working capital refers to the firm’s investment in current assets so the total current assets of the firm are known as gross working capital

Net Working Capital

It represents the difference between current assets and current liabilities

Permanent Working Capital:

As the operating cycle is a continuous process so the need for working capital also arises continuously. . However there is always a minimum level of current assets.

Temporary Working Capital

The extra working capital needed to support the changing production and sales activities

understanding about the working capital management in the running business organization

To analyze the working capital management of the company.

To determine the operating cycle of the unit

To know the future need of working capital in the running organization

Collection of data from various department of VPL to analyze the working capital management of VPL.

For understanding the various reports

With the help of various techniques like

Ratio Analysis

Primary Data – The personal interview with senior officials and various members of finance and accounts department and also with other departments and collected the data.

Secondary Data – All the details necessary for the study was available within the company itself.

Due to seasonal availability of raw material is purchased in bulk during the months between March to Oct

Liquidity ratios of VPL are too high

The cost of raw material fluctuates depending upon the availability of crop in the particular season, so it effect the finished product price.

Now VPL has increased its share in the domestic market by reducing the exports.