Review of literature working capital management project
This can be judged by comparing the amounts of working capital from one period to another. When a change in working capital is positive, the company is either selling off current assets or else raising its current liabilities.
Review of literature on working capital management project
Arabian industries projects llc arabian industries projects llc (aip), a subsidiary of arabian industries llc, is the projects division providing engineering, procurement, construction and commissioning services, to cater to clients in the oil & gas, petrochemicals, power, fertilizer, chemicals and refinery industries. In the year position of working capital is very good in 2009 because the bank balance in 2008 was only 143,351/- omr where as in 2009 it is increased to omr 1,892,372/-; ie.
In the year 2009 working capital decreased because of increased the expenses as manufacturing expenses and increase the price of raw material as increased in the inflation rate. The working capital position sets the various policies in the business with respect to general operations like purchasing, financing, expansion and dividend etc,The subsidiary objective of working capital management is to provide adequate support for the smooth functioning of the normal business operations of a company.
Working capital increased because of increment in the current assets is more than increase in the current liabilities. Comparably high working capital levels may indicate that too much money is tied up in the business.
Whereas, those companies that sell services and not goods, on a cash basis require least working capital because there is no requirement on their part to maintain heavy inventories. Urr nt e asse t inde ition of current is of current assets components enable one to examine in which components the working capital fund has locked.
On the other hand, in the case of purchase, if the credit is offered by suppliers of goods and services, a part of working capital requirement may be financed by them, but it is necessary to purchase on cash basis, the working capital requirement will be higher. Also, the conversion time is likely to be lower, resulting in further drop in the level of working capital.
Growth and expansion plans growth and expansion industries need more working capital than those that are static. All the above factors directly or indirectly affects in the debtors turnover ratio, current ratio and working capital ratio.
1 efficiency l turnover signifies that for an amount of sales, a relative amount of working capital is needed. 200,000 1,000,000 800,000 600,000 400,000 200,000 2004 2005 ations arabian industries llc, takes only very low working capital loan to fulfill the requirement of working capital, thus company saved a lot from paying interest, on working capital loan.
Not only does a lack of working capital render a company unable to build and grow, but it may also leave a company with too little cash to pay its short-term obligations. Study of the cash management of the company shows that company have a good control on cash management in the year 2009, where cash came from receivables and short term funds.
Table 6-8-changes in working s in working capital 2008 current asset - a bank balances / deposits trade debtors (net of provisions) inventory work in progress dues from related parties other receivables total current assets-a 145,2 45. Working capital is of variance of working capital years total current assets total current liabilities net working capital - (a-b) w-c variation –in % 2004 4,454,689 3,327,077 1,127,612 100% 2005 5,773,078 5,662,135 110,943 9.
Shashi k gupta - business management (2008) – kalyani publishers – ial statement – (annual report for 2009) company journals – arabian industries llc. Availability of ample funds as and when they are accomplishment of these two objectives, the management has consider the composition of current assets pool.
Quicker the operating cycle less amount of investment in working capital is needed and it improves profitability. Apart from the head office located at al khuwair house, various site, arabian industries llc, currently have a project coordination office, staff camp, fabrication shop, vehicle maintenance workshop and other related facilities in rusayl, sultanate of oman.
Project jv partner project value 2 name of project type of contract approximate value 3 name of project type of contract project value 4 project type of contract project value 5 name of project type of contract project value 6 name of project type of contract project value 7 name of project type of contract project value 8 name of project type of contract project value additional ar pipeline construction work main contractor us $ 1 2. Structuring a literature review introduction to the literature review main part conclusions a literature review is a piece of discursive prose, not a list describing or summarizing of literature after another.
The components of current ratio (current assets and current liabilities) can be used to derive working capital (difference between current assets and current liabilities). A stringent collection policy might not only deter away some credit customers, but also force the existing customers to be prompt in settling dues resulting in lower level of working capital.
Ture review must do these things:Be organized around and related directly to the thesis or research question you are developing synthesize results into a summary of what is and is not known identify areas of controversy in the literature formulate questions that need further uring a literature review it is often difficult to decide how to organize the huge amount of information you have collected. 1972)699_1980-1984financial and marketing managementpacific-power--r-bryce-dalleyeskom interim integrated results presentation 30 sept 2014szymczak_30825_1985-1989guam-power-authority-residential-servicepacific-power--r-bryce-dalley30825_1980-198431074_1985-1989more from sasikumar r nairskip carouselcarousel previouscarousel nextpartnership goodwillbreak even analysisresearch ethicsphotoorganisation study - introduction to the project report for mba iii semester - mg university- kottayam - keralaorganisation study - project report for mba iii semester - mg university- kottayam - up to vote on this titleusefulnot usefulmaster your semester with scribd & the new york timesspecial offer for students: only $4.