The Jammu and Kashmir Bank was incorporated on October 1, 1938.

Jammu & Kashmir Bank is the only Bank in the country with majority of ownership vested with a state government – the Government of Jammu & Kashmir. It is the sole banker to the Government of Jammu & Kashmir.

The Bank commenced business on July 4, 1939 and was considered the first of its nature and composition as a State owned bank in the country.

The bank had to face serious problems at the time of independence when out of its total of ten branches-branches of Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control (now Pakistan-administered Kashmir) along with cash and other assets.

Mushtaq Ahmed is the new Chairman & CEO of Jammu & Kashmir Bank.

Mission of J&K Bank:

The bank aspires to make Jammu & Kashmir the most prosperous state in the country, by helping create a new financial architecture for the J&K economy, at the center of which will be the J&K.

Vision of J&K Bank:

To provide the people of J&K international quality financial service and solutions and to be a super-specialist bank in the rest of the country.

Primary data: It was collected with the help of data available

in the organization and informal interviews with the company’s executives and managers.

Secondary data: This was obtained from the website, records and

reports of the company as balance sheet and various other reference books relating to project financing.

In this study sampling design technique was used.

It is the capital which is required to meet day to day expenses of a business.

WORKING CAPITAL

BASIS OF

CONCEPT

BASIS OF

TIME

Gross

Working

Capital

Net

Working

Capital

Permanent

/ Fixed

WC

Temporary

/ Variable

WC

Regular

WC

Reserve

WC

Special

WC

Seasonal

WC

• The amount of current assets required to meet a firm’s long-term minimum needs.

Amount

Permanent current assets

• The amount of current assets that varies with seasonal requirements.

AMOUNT

TIME

Temporary current assets

Permanent current assets

Nature of Business

Size of Business/Scale of Operations

Manufacturing Process

Seasonal Variations

Working Capital Cycle or Operating Cycle

Rate of Stock Turnover

Rate of growth of business.

WORKING CAPITAL CYCLE

CASH

RAW MATERIAL

DEBTORS(RECEIVABLES)

FINISHED GOODS

WORK IN PROGRESS

Importance of Cash:

When planning the short or long-term funding requirements of a business, it is more important to forecast the likely cash requirements than to project profitability etc.

Receivables ( Sundry Debtors ) result from CREDITSALES.

A concern is required to allow credit in order toexpand its sales volume.

Receivables contribute a significant portion of currentassets.

Further, there is a risk of BAD DEBTS also.

It is, therefore very necessary to have a proper controland management of receivables.

Creditors are a vital part of effective cashmanagement and should be managed carefully toenhance the cash position.

Purchasing initiates cash outflows and an over-zealous purchasing function can create liquidityproblems.

Managing inventory is a juggling act.

Excessive stocks can place a heavy burden on the cash resources of a business.

Insufficient stocks can result in lost sales, delays for customers etc.

Inventories Include Raw materials, WIP & Finished goods

MANAGING INVENTORIES EFFICIENTLY DEPENDS ON TWO QUESTIONS:• How much should be ordered?• When it should be ordered?

The first question “how much to order” relates to ECONOMIC ORDER QUANTITY and

The second question “when to order” arises because of uncertainty and relates to determining the RE-ORDER POINT

CASE

WORKING CAPITAL POSITION ANALYSIS IN SINTECH PRECISION PRODUCT LIMITED….

CURRENT ASSETS

YEAR 31.03.07 31.03.08 31.03.09

Inventories 180.26 291.13 653.95

Sundry Debtors 114.33 390.84 219.79

Cash and Bank 10.81 34.30 28.22

Other Current Assets 6.67 28.08 21.99

Loans & Advances 21.44 78.74 83.92

Total Current Assests 333.51 823.09 1008.67

Net working Capital ( CURRENT ASSETS – CURRENT LIABILITIES)

Less:-

CURRENT LIABILITY AND

PROBLEMS

Short term borrowing 94.54 336.70 315.76

Sundry creditors 159.49 256.33 305.99

Advanced received 25.30 18.16 59.88

provisions 21.56 59.05 64.05

Instalments of term loan 14.66 21.11 72.00

Other current liabilities 16.82 29.36 70.34

Total current liabilities 332.37 720.71 888.02

Data InterpretationIf we analyze the three years working capital position of the company, we find out that company has sufficient working capital to meets its short term liability, it is good indicator for the company

But in 2008, working capital is increased by 101.24 lacks which shows that a sufficient amount has been blocked in working capital which could be used for some other more beneficial purpose.

RATIOS ASSOCIATED WITH WCMStock Turnover Ratio (Times) COGS

AVERAGE STOCK

Stock Turnover Ratio (Days) Average Stock x 365

COGS

Receivables Turnover Ratio (Times)

Net Credit Sales

Average Accounts Receivable

Average Receivables Period (Days)

Averag A/C Receivable x 365

Net Credit Sales

Payables Turnover Ratio (Times)

Net Credit Purchases

Average Accounts Receivable

Average Payables Period (Days)

Averag A/C Receivable x 365

Net Credit Sales

Current Ratio Current Assets

Current Liabilities

Quick Ratio CA – Stock

Current Liabilities

Working Capital Turnover Ratio

Net Sales

Net Working Capital

JAMMU & KASHMIR Bank has played a major role in nurturing companies/parties/individuals and helping them to stand up in the market.

They take an overview of the project before forwarding it, which includes detailed study capital expenditure, phases of capital budgeting, facts of project analysis etc.

JAMMU & KASHMIR Bank has contributed most significantly for the growth of companies and promotion of entrepreneurs.

Constant review & up-gradation of systems & practices

More frequent visits to project sites.

Posting of experienced personnel for different segment of appraisal work.

To provide better value added service and benefits for the early repayment by which the customers are attracted in this competitive financial market.

JAMMU & KASHMIR Bank in its fruitful existence of 74 years has extended assistance to individuals/entrepreneurs/companies with the credit/ loan exposure of over 26193 CRORES the corporation, has undertaken an active role in providing working capital, term loans, curtail initial sickness for want of working capital and various other kinds of credit facilities.