A STUDY ON WORKING CAPITAL MANAGEMENT AT KSRTC

A STUDY ON WORKING CAPITAL MANAGEMENT AT KSRTCBY : GOWRAV MG 1JB12MBA31

CHAPTER 1INTRODUCTION

Introduction about project Working capital may be regarded as the life blood of the business. Its effective provision can do much to ensure the success of a business. its inefficient management can lead not only to loss of profit but also to the downfall of the business. A study of working capital is of major importance to the internal and external analysis because of tits close relationship with the current day to day operations of a business.

Objectives of the studyTo study and analyze the working capital management of the companyTo study the liquidity position of company To study the various sources of fund used for financing working capitalTo measure and the efficiency of working capital managementScope of the study The study on working capital is based on ratio analysis and comparative study. Further the scope of study is based on the last 5 years annual reports of KSRTC and factors like competitors analysis, industrial analysis were not considered while preparing this project.

Methodology adopted 1 research design: this study is based on analysis of detailed information that aims to combine relevant results for the research purpose with economy in procedure. Analytical study is used here2 research tools: ratio analysis and comparative study are used for the study of working capital management. This study is also done with the help of statistical technique, graphs , and charts.Data collection: secondary data is used to carry out.

LITERATURE REVIEW :A supply chain-oriented approach of working capital management by Erik Hofmann university of st.Gallen, Switzerland and Herbert kotzab, Copenhagen business school, Denmark Analysis of effects of working capital management on corporate profitability of Indian manufacturing firms arunkumar T.Radharamanan Working Capital IV management: An Exploratory Study Hernn Etiennot, Lorenzo A. Preve, and Virginia Sarria Allende Working capital management paper, university of phoenix FIN /320 corporate finance august 4th 2008 World Applied Sciences Journal 12 (7): 1093-1099, 2011 ISSN 1818-4952 IDOSI Publications, 2011 Corresponding Author: Mohammad Alipour, Islamic Azad University, Khalkhal Branch, Iran Working Capital Management and Corporate Profitability: Evidence from Iran

Working capital management of Cipla limited: an empirical study. Mr. Lalit Kumar joshi*; Mr. Sudipta ghosh** Lecturer, Department of commerce, The bhawanipore education society college, Kolkata. WORKING CAPITAL MANAGEMENT AND PROFITABILITY: A CASE OF ALBA COUNTY COMPANIES: Adina Elena annales universitatis apulensis series oeconomica, 12(1), 2010LIMITATIONS OF STUDY :The study becomes ineffective due to inflation in price levels.The study is based on secondary data.Time constraint.

CHAPTER 2 INDUSTRY AND COMPANY PROFILE

INTRODUCTION The evolution of transportation is just like evolution of humankind. It has gone through trials and tribulations as it has evolved through time. It has ebbed and flowed overcoming challenges to grow to ever increasing levels of complexity and efficiency. Many modes of transport have evolved and many more have gone extinct. The modes of our transportation have developed alongside the expansion of our human understanding and culture. The field can be divided into infrastructure, vehicles and operations.

COMPANY PROFILE

BACKGROUND AND INCEPTION The Karnataka state road transportation was established in august 1961, under the provision of road transport corporation act 1950 with the objective of providing adequate efficient, economic and properly co ordinate road transport services in this endeavor, the KSRTC has positioned itself with a name for reliability and safety.Three corporations viz BMTC, Bangalore from 15-08-1997, NWKSRTC, Hubli from 01-11-1997, NEKSRTC , Gulbarga from 01-10-2000 were carved out on a regional basis.

RESTRUCTURED STU OPERATION

VISION MISSION AND QUALITY POLICY

A) VISION To be the best service provider in the world, this is safe, reliable, courteous, economic, and environment friendly to commuters.B) MISSION To fulfill customers expectation in providing environment friendly and value based services. To have continuous improvement through use of innovative technology and lay stress on creativity. To lay stress on employee welfare and human resource development and to inculcate quality consciousness in our employee at all levels. To motivate the spirit of responsibility and openness of communication among our employees towards environment problems. To meet the safety, environment, and pollution control standards.C) QUALITY POLICY: To continually improve our services to achieve consistent quality of our products. To process with zero defects so as to meet the customer satisfaction in order to become a global leader. To adopt ISO 9001:2000 quality management system.

AWARDS & RECOGNITIONS UTIP- first px2 political commitment award -2011Volvo sustainable mobility award-20111st national FIEO telecom technology award -2011 by ministry of commerce and industry, govt. Of IndiaAward for excellence-2011 by ministry of urban development govt. Of India for best practice for inclusive developmentNational e-governance award-2009 for exemplary usage of ICT among PSUs by ministry personnel & administrative reforms, govt. Of IndiaRajiv Gandhi national quality award-2009 best large scale service industry in the countryIndia pride gold award -2010 infrastructure and transportationAward for excellence-2010 by ministry of urban development govt. Of India for best clean development mechanismAward for excellence-2009 by ministry of urban development govt. Of India for implementing automated electronic driving test systemAward for excellence-2008 by ministry of urban development govt. Of India for implementing electronic driving test systemChief ministers ratna award for best performing state PSUs- 2010Golden peacock innovative product/service award-2010Golden peacock eco-innovation award- 2010

PRODUCTS PROFILEFLYBUSAIRAVAT BLISSAIRAVAT SUPERIAAIRAVAT CLUB CLASSMERCEDES BENZRAJAHAMSAAIRAVATCORONA AMBAARI SLEEPER (A\C)NON A\C SLEEPERVAIBHAVSUVARNA SARIGE

FACILITIES AT KSRTC BUS STATIONS

All transport facilities under one roofModern high tech bus stations Drinking waterSearing arrangementsModern toiletsCanteen facilitiesReservation countersPre-paid taxiATM facilityPre-paid auto rickshawTwo wheelers and four wheelers Digital display and intelligent transport systemPublic addressing systemCommercial establishments and officesTourist information system

SWOT ANALYSIS :

STRENGTH:Providing efficient, adequate, safe, economical and properly co-ordinated transport services to travelling public. It has created infrastructure consisting of depots, bus strands, and developed extensive route network. It has various types of services to meet different nee of travelling public.It has achieved fuel efficiency and good safe record.It has also skilled and trained labor force to support the infrastructure and carter the needs of transport services. WEAKNESSOperations of services by private operations in the nationalized and main roads violating permit conditions causing loss to corporations.Secretly the illegal operations of buses are done by private parties.The cost of other charges has increased and cost of depreciation is reduced.

OPPORTUNITIES:Establishing new depots, bus stations at various places.Expanding the present network.Hire buses from private parties.Increase services as per need.Training drivers for safe driving.Introduction of modern environment friendly buses. THREATS:Private travelling agencies.Other means of transport like auto, cab, metro facilities.Secret and illegal operators of buses by private partiesFor long distance travel railways is preferred.

CHAPTER 3THEORETICAL BACKGROUND OF THE STUDY

WORKING CAPITAL MANAGEMENT Working capital management is the most important for each and every organization to run their business smoothly, a working capital which provides funds to the organization for its day-to-day operations; organization requires working capital regularly for production.Working capital management is concerned with the problem that arises in attempting to manage the current assets, the current liabilities and the inter relationship that exists between them.

NET WORKING CAPITAL = CURRENT ASSETS CURRENT LIABILITIES

CONCEPTS OF WORKING CAPITAL: Gross Working Capital Net Working Capital TYPES OF WORKING CAPITAL :Permanent Working Capital Temporary working capital

DETERMINANTS OF WORKING CAPITAL :

Nature and size of business Manufacturing cycle Seasonal variations Production policy Sales growth Business cycle Other factors

COMPONENTS OF WORKING CAPITAL

Cash Cash budgetInventories Receivables management

IMPORTANCE OF ADEQUATE WORKING CAPITAL Smooth functioning of businessGoodwillAbility to face crisisCredit worthinessRegular supply of raw materialsProductivity increasedLiquidity and solvency