A Study on Working Capital Management with Reference to BEML Mysore Complex at Mysore

Abstract

A fine planned and executed working capital management is predictable underwrite completely to the formation of a firm’s value. The tenacity of this project is to inspect the trends in working capital management (WCM) and its impression on the performance of BEML LTD. This project objects at learning various facets of working capital management at BEML. These projects also pulls a evaluation between BEML and other projecting players active in the organisation segment and tries to find out the reasons playing an active role behind the numerous status of BEML. Working capital management includes not only dealing the various components of the current assets, but also dealing the current liabilities, or in precise financing the current assets. A company is requisite to sustain a balance between liquidity and profitability while leading its day to day processes. The status of cash as an needle of on-going financial strength should not be astonishing in opinion of its critical role within the business. This matter shows that business must be lead both efficiently and profitably.. On the other hand, too much focus on liquidity will be at the expense of profitability. We can see major three verticals of working capital management following: Receivables management, Cash management and Inventory management using the financial statements of BEML, an analysis has been done by analysing trends applied and followed. The financial statements (balance sheet, profit & loss accounts) are used to analyse different ratios which help us in well understanding the company.