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To start any business, First of all we need finance and the success of that business entirely depends on the proper management of day-to-day finance and the management of this short-term capital or finance of the business is called Working capital Management.

Working Capital is the money used to pay for the everyday trading activities carried out by the business - stationery needs, staff salaries and wages, rent, energy bills, payments for supplies and so on. I have tried to put my best effort to complete this task on the basis of skill that I have achieved during the last one year study in the institute. I have tried to put my maximum effort to get the accurate statistical data. However I would appreciate if any mistakes are brought to me by the reader.


The major objective of the study is to understand the working capital of ACC & to suggest measures to overcome the shortfalls if any.

The following are the main objective which has been undertaken in the present study:

To determine the amount of working capital requirement and to calculate various ratios relating to working capital.

To analyze the Indian Cement Industry.

To evaluate the financial performance of ACC limited using financial tools.

To suggest the steps to be taken to increase the efficiency in management of working capital.

Funds needed for short term needs for the purpose like raw materials, payment of wages and other day to day expenses are known as working capital. Decisions relating to working capital (Current assets-Current liabilities) and short term financing are known as working capital management. It involves the relationship between a firm's short-term assets and its short term liabilities. By definition, working capital management entails short-term definitions, generally relating to the next one year period.

The goal of Working Capital Management is to ensure that the firm is able to continue its operation and that it has sufficient cash flow to satisfy both maturing short term debt and upcoming operational expenses.

Working capital is primarily concerned with inventories management, Receivable management, cash management & Payable management. Methodology of the Study

Two types of data are collected, one is primary data and second one is secondary data. The primary data were collected from the Department of finance, ACC Ltd, Wadi. The secondary data were collected from the Annual Report of ACC & ACC website, etc. The study has got a wide & fast scope. It tries to find out the players in the industry & focuses on the upcoming trends. It also tries to show the financial performance of the major player of the industry i.e.; ACC Ltd

Limitatons Of The Study

There may be limitations to this study because the study duration (summer placement) is very short and it's not possible to observe every aspect of working capital management practices. The data collected were mostly secondary in nature.

Factors requiring consideration while estimating working capital

The average credit period expected to be allowed by suppliers.

Total costs incurred on material, wages.

The length of time for which raw material are to remain in stores before they are issued for production.

The length of the production cycle (or) work in process.

The length of sales cycle during which finished goods are to be kept waiting for sales.

The average period of credit allowed to customers

The amount of cash required to make advance payment

The importance of working capital management is effected in the fact that financial manages spend a great deal of time in managing current assets and current liabilities. Arranging short term financing, negotiating favorable credit terms, controlling the movement of cash, administering the accounts receivable, and monitoring the inventories consume a great deal of time of financial managers. The problem of working capital management is one of the "best" utilization of a scarce resource.

Thus the job of efficient working capital management is a formidable one, since it depends upon several variables such as character of the business, the lengths of the merchandising cycle, rapidity of turnover, scale of operations, volume and terms of purchase & sales and seasonal and other variations.

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