1.

1 INTRODUCTION
Working capital is the firms holdings of current asset such as cast, receivables Inventory and securities. Every firm requires working capital for its day - to - day transactions such as purchasing raw material for meeting salaries, wages-rents, Advertising etc., But there is much disagreement among various financial authorities(financial managers, accountants, businessmen and accountants) as to the Exact meaning of the firm working capital. SreeAkkamambaTextiles Limited (SATL), locate at venkatarayapuram, Tanuku, and were established on 18 April, 1954. It is part of sugars concern promoted by Sri Mullapudiharischandra Prasad and associates. The promoters got equity support from financial intuitions like IDBI, SBI, ICICI, Andhra bank, state bank of India, state bank of Hyderabad and public deposits. The mill stretched around an area of 21 acres. It entered in to commercial production on sep. 1956. Its initial capacity is 73.64 lacks with a capacity of 800 spindles. The company SreeAkkamambaTextiles Limited is a broad managed company with limited directors on the board Sri Mullapudiharischandra Prasad is the chairman and managing director and sri. M.S.R.V.K.R RangaRao is the executive director. The other members of the board include representative of the various financial institutions and organizations that have equity share in the company and have provided loan assistance to the company. .

1.2 OBJECTIVES OF THE STUDY The study namely WORKING CAPITAL MANAGEMENT IN SREE

AKKAMAMBA TEXTILES LIMITED is carried out to examine the working capital management in the company. The specific objective are the following.

1. To examine the composition of current assets. 2. To examine the composition of current liabilities. 3. To identify the trend & current assets. 4. To find the trend in current liabilities. 5. To identify the short term solvencies position of the company. 6. To examine the changes in the working capital during the period of study. 7. To offer suggestions of best working capital management if required.

1.3 NEED FOR THE STUDY

The need for working capital is to run day to day activities. Working Capital is the life line of any business concern whether it is manufacturing or a non-manufacturing one, with adequate working capital, storage of raw materials, labour etc, resulting in partial utilization of available machinery.

An inadequate investment in Working capital results in lack of funds to meet its obligations and leads towards the business failure on the other hand excess of investment leads to idle resources, reduce profitability. The present study analyse how the company is managing its working capital.

1.4 METHODOLOGY OF THE STUDY The study namely WORKING CAPITAL MANAGEMENT IN SREE

AKKAMAMBA TEXTILES LIMITED is based on secondary data. The data relating to 5 financial years namely 2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010 are taken from the financial report of the company consist of the Balance sheet, trading account &profit &loss account. The collected data is analysed b y computing composition, trends, and ratios and statement of changes in working capital. The data is tabulated with analysis with appropriate techniques, Bar diagram are used for the better presentation of the result.

Secondary Data The secondary data is obtained from annual report financial statements ie. balance sheet and profit & loss accounts, reposts, journals, and other information journals of the organization and form the text books of financial management. Ratios A company may be profitable one but its liquidity position may be weak. Liquidity is must to avoid financial failure and ultimate to avoid the crisis of company failure. The three main ratios mentioned below are conservative test of a companys liquidity.

1. Liquidity ratios 2. Quick ratio or Acid test ratio 3. Current ratio

Trend Trend = Current year data --------------------Base year data x 100

Bar diagram A Bar graph is chart with lengths proportional to the values that they represent a bar graph are used for comparing two or more values. The bars can be horizontally or vertically oriented. Some times a stretched graphic is used instead of a solid bar.

1.5 LIMITATIONS OF THE STUDY The results of the study namely WORKING CAPITAL MANAGEMENT IN SREE AKKAMAMBA TEXTILES LIMITED are subjected to the following limitation.

1. The study entitled performance of nifty 50, to the following limitations: 2. The period of study is only 45 days. This period is too short to touch various aspects in the SREE AKKAMAMBA TEXTILES LIMITED. in Tanuku. 3.
4.

This aspect may restrict the results to some extent. There is no providing of true information.

1.6 PRESENTATION OF THE STUDY The study namely WORKING CAPITAL MANAGEMENTINSREE AKKAMAMBA TEXTILES LTD is presented in five chapters.

CHAPTER-I

Consists of Introduction, Need for Study, Objective of the Study, Methodology, Limitation and Presentation of the Study.

CHAPTER-II

Deals with profile of Textiles Industry and Textiles Limited

SreeAkkamamba

CHAPTER-III Capital Management CHAPTER-IV

Consists of Theoretical Frame Work on Working

Consists of Data Analysis and Interpretation

CHAPTER-V Consists of Findings and Suggestions.